NO. 8 SELECTION
The information about setting up any new business should remain limited to the concerned officers only. Many a times, in order to prove themselves more intelligent and important, the officers discuss about the plans of the company which breaches the confidentiality and the competitors may take benefit of the situation. That is why it is said that intelligent people are people of few words and prefer silence. Punctuality, commitment, morality and honesty are the founding pillars of any business, industry or employment. Taking the right decision at the right time helps us move forward otherwise, once an opportunity is lost, all we can do is regret. We should turn a deaf ear to public opinion and continue our march to progress without letting anything obstruct us. An intelligent man learns from his enemies whereas a fool refuses to learn even from his friends. We should always keep our plans and goals close to our chest. Rather than criticizing others we should derive benefits from their experiences. Such experiences are priceless and hide within themselves the mantras of success which can prove to be guidelines for generations to come. The experiences of the older generations and the creativity of the young get together to bring about progress and thus we should give due respect to the experiences rather than ignore them as happenings of the past. A few years back I had the good fortune of visiting Swami Satyanand’s aashram at Munger in Bihar. There I met a young man who was a Mechanical Engineering graduate and wished to set up a business of his own. He was of the opinion that to run a business well one needed to remain calm in mind and heart and have the ability of taking well thought of decisions. For this, he believed that Yoga was the best practice to follow and that was the reason he was there so that when he returned to set up his new business he could put to practice all that he was learning there. One sentence that was written in that aashram left a deep impact on me. It said that however small and ordinary a task be one should do it to the best of his ability, dedication and commitment so that we develop in ourselves the ability to always put our best foot forward. The basic requirements of any industry are capital, raw material and machines and ensuring their timely availability is the responsibility of the officers. When the industry employs 5 or 500 people, the officers should know how to make them work to their optimum potential. Instead of remaining seated in his office the officers should remain available at the work stations so that in case workers face any problem they can speak to him directly. It will be a major achievement on your part is you know all those who work under you by their names. Any industry should reach its 100 percent production capability within 2 years. The factory should produce at least 70 to 80 percent of its capability in the first year. We should work confidently but avoid over- confidence. With reference to modernization, we should keep seeking the guidance of the experts from time to time. We are saved from penalties and surcharges if keep making timely payment of the installments that we have to pay for the loan that we might have taken from a bank or a financial institution. For the welfare of the workers and labourers we should set up a gratuity trust. It also allows rebate in Income tax and besides this if, in case, the factory is forced to shut down due to adverse conditions because the gratuity is paid, the employees will not face undue difficulties and the financial liability on the company too will be less. The number of workers employed in an industry should not be more than required because lack of work adversely affects productivity and quality. The workers should remain in discipline and respect and obey their officers. While appointing any worker the Terms of Employment should clearly state that he can be transferred to any other industry owned by the company anywhere in the country otherwise, as per the government regulations, you cannot transfer him to a distance more than 8 kms. While finalizing the salaries of the officers and workers it should be kept in mind that about 35% of the gross pay is given to them in the form of other allowances like bonus, provident fund, gratuity etc. Normally there are 5 kinds of people in the top echelon of a company. First those who are determined to place their own people at higher posts. They do not talk much and quietly accomplish their goals. Second those who remain committed to the needs of the industry and think only of their personal growth. Third those who are least bothered about anything and only take care of the work at hand. Fourth, those who are the problem - solvers for the company and focus not on problems but on solutions. Fifth are those who are always ready to shoulder more responsibilities and work more for the company. In any industry, one who invests the capital is regarded as the Chairman. He appoints the Managing Director and the General Manager and they make the second and the third order in the hierarchy. The three of them, collectively, appoint officials and workers for the different departments. Normally, the qualities desirable in a Managing Director and General Manager are listed in brief –
Before appointing anybody for the post of Managing Director and General Manager, the Chairman should keep in mind that they are experienced and have enough knowledge about running an industry.
Their behavior, work style and personality should be impressive because on them depends the reputation of the company.
Before appointing persons in the higher cadre the family and financial background of the applicant should be considered. If he is very sound financially then it is quite possible that he has applied in your company only to gain some experience and is not in need of a job. We should appoint someone who needs a job as much as we need an employee.
He should have the capability of keeping the people working under him in discipline and committed to their jobs.
He should be able to share the vision and wok ethics of the company with the people under him in such a manner that they understand them very clearly and start working in that direction.
He should have the quality of listening to the opinion of even the junior - most employees with attention and not hesitate in taking a comprehensive decision.
It should be kept in mind that the Managing Director and the General Manager are the axes of a company and they should have a deep inclination towards their job and be mindful of the quality of the goods produced.
They should be self disciplined only then will they be able to monitor those working under them.
They should have the ability of taking correct decisions regarding the industry or business and then remain firm on them.
They should have the quality of empathizing with all officers and workers under them, be polite and considerate towards them and keep their team intact while dealing with their work related problems and giving them constructive solutions.
They should have a firm resolution about upgrading and modernizing the industry and business.
As far as possible they should protect their business from competition because this leads to fall in selling price and thereby loss.
They should be always ready for improvising and upgrading the machinery and techniques of the factory.
They should always have a positive outlook and treat the company’s tasks as their own. Once they keep working those under them will follow suit.
They should be far sighted and always prepared in advance to tackle any problem that may arise in future.
They should listen to the suggestions of the workers of the company and promptly implement them if found viable.
They should cultivate such cordial work atmosphere that all employees feel free to contact them and speak whatever is in their minds.
All the people posted in the top cadre posts should have a good knowledge of mathematics.
The people holding the top posts in the company should have complete knowledge about the various company related details which have to be mandatorily sent to the various government departments.
If because of any reason the workers of the company go on a strike then the matter should be resolved in a collaborative and legal manner.
This is a harsh truth that in order to run any business or industry coordination with several government offices has to be established. Convenience money has to be paid at several quarters in order to get our things done smoothly and without inviting government strictures. This is a normal thing but to get them done confidentially duties should be assumed by a responsible officer of the higher cadre.
The officer should never lose his cool when face with contempt and criticism. He should face all difficulties that befall the company bravely and find ways through all obstacles.
In any industry the number of employees depends upon the type of the industry and its production capacity. Not many people are required in small scale industries because in industries of this nature the owner himself has to take care of everything right from production to marketing. There are separate officers for the various departments like production, distribution, sales, quality control, human resource management etc. in medium scale and large scale industries so as to ensure their smooth operation. Now-a-days people holding higher posts are paid so well and are provided with so many facilities that it becomes impossible for small scale industries to be able to afford them. Only the medium scale and large scale units can afford them. While appointing people for the industry one should keep in mind their previous work experience – where had they been previously employed and why are they switching from there. One of my friends had to suffer badly in this regard. One of his competitors got one of his officers and a machine fitter employment in my friend’s factory. They started telling everything about his factory to their previous employer. Due to this all his trade secrets started reaching his competitor. One day, the fitter opened a nutbolt of a machine and placed it at a point such deep inside the machine that it soon broke down. It took about three months for the machine to be repaired and this caused my friend immense loss of capital and goodwill in the market. After some time both employees resigned and went back to their old employer. It had been a trick played by the competitor and although it seems very immoral and an unhealthy practice but to remain in the race one crosses all limits when faced with competition. Location is of prime importance when establishing any business or factory. For any business we should keep in mind that the collection point of raw material, availability of power and the market should not be very distant. This will reduce our production cost and increase our profits. Along with this also keep in mind that good schools, markets, recreation centers, health facilities etc. are also close by. Now-a-days officers do not want to live in remote areas. We should also take care that there is ample labour available around the factory otherwise it becomes very difficult to run the establishment.
NO. 9 ENTREPRENEURSHIP AND WOMEN POWER
Today women have started playing a very important role in the industrial world. Today they have become self-reliant and selfdependent and have transformed from a helpless and meek individual to a strong and enabled one. In the present competitive world, owing to the government policies it is very difficult to run an industry. We can both, either succeed or fail miserably. From our capital we should invest only so much in any industry or business that even if we fail and lose our investment it should not have a very deep negative impact on our lives. People who succeed in business provide employment opportunities in the world. They contribute to the nation’s economic growth. They believe hard labour to be their religion and live a contented life. If we expect maximum labour from our workers then we should implement bonus schemes and incentive providing measures in the production department. When the production is more than the target given by us, we should immediately provide an incentive amount so that they remain enthusiastic and keep working to produce to the best of their ability. Whatever the industry, maximum utilization of potential should be ensured. If we produce less than optimum, the permanent costs will form a large percentage of the investment and our expected profits will take a nose - dive. This is an important factor to be kept in mind in any industry. Simple, graceful and very dedicated, Mrs. Pushpa Berry, from Madhya Pradesh, has worked relentlessly with great determination and dedication for the welfare of needy women and her efforts are commendable and praiseworthy. In the field of cooperative sector, Mrs. Berry, produced Lizzat papads wherein she gave employment to 3500 women thereby making them self-reliant and providing them the push needed to become independent. Just like the Amul, from Gujarat. Lizzat Papads production unit too has carved a niche for itself in cooperative sector. To get so many women to work and to maintain an account of everything is a challenging task in itself. The net profit obtained by the cooperative is completely distributed among the member ladies in proportion to the work done by them. Till date the cooperative has distributed more than 80 crores to its members as bonus. The cooperative does not believe in extravagant spending of money and does not spend anything on advertizing. Mrs. Berry believes that worker should be the owner; labour should get its due credit. Removing unemployment and comprehensive utilization of human resources are the demand of the day in our country. Mechanization and modernization should be carried forward only to the extent that they bring about improvement in quality. One becomes truly successful only when his hard work is combined with honesty and self confidence. Today, before beginning any enterprise, the young generation has to study all its aspects in great depth. You cannot learn swimming by sitting on the banks. To swim you have to jump into the water. To the youth she says that our aim should be to work for the nation and the society. There are scores of needy people in the country and we must accept the challenge of providing them relief of sorts and only then can we ourselves live peacefully. Even if have wealth but no peace of mind then it is useless. She states that our two hands are enough to take us to our goals. We should not expect others to help us reach our goals. Lizzat Papad Griha Udyog is always ready to help people who wish to set up their own business and work for their own betterment and for this the cooperative also offers free technical support. There was a lady entrepreneur named Sunita, who had worked very hard to take her business of readymade garments to successful heights. She says that on its march towards success there are many ups and downs that befall our business but we should not get agitated instead overcome them with patience and smartness. She was an inspiration for all and was selected for the Best Woman Entrepreneur Award by the local Chamber of Commerce. On the designated date she arrived to receive the Award. The Auditorium was filled to its capacity. When her name was called and she got up to walk up the stage to receive it, her ankle turned and she fell on the stage itself. But she quickly got up on her feet and before anyone could laugh at her she reached the mike and said, “I am very thankful to the organizers who have selected me for the Award. Many a time people have asked me the secret of my success. In my falling down and getting back up on my feet lies the symbolic answer to this question. I have seen many ups and downs in my life but every time I have fallen on my march to success, I have gotten back up on my feet with greater determination and bigger will power to succeed in reaching my goal. This is the secret of my success. Life and difficulties walk side by side but we should face them bravely and never let them shake our resolve. There is never success without struggle.” Hearing her words, the audience gave her a thumping applause. She received her Award and left the stage after thanking everybody.
NO. 10 CAPITAL…
When the time is favourable to us, when we have more than enough capital, then we should invest the surplus amount in such government schemes or banks which will keep our money safe for us and we should be able to get it back easily when we need it. In case of any unprecedented loss in business, this money can be used to cover the loss and also ensure that our financial standing remains unmarred. When we take up any task in any field in our life, we only think of success. But we should always think about the probable failures also and ponder upon the possible causes behind then so that we are able to pre-plan about the ways in which to avoid them and ease our way to success. To work to achieve success is a step in a positive direction but to keep simultaneously removing the obstacles in its path is removing negativity. When the time is not right for us even our friends turn into strangers. Even those, whom we have helped in their bad times, turn away and refuse to help us when difficulties befall us. Those, whom we had lent money when they needed it, turn hostile when we ask them to help us out. At times like these only the good deeds that we had done save us. They act as our shield and our sword during adversity. An anxious and tense person digs his own grave. We should not worry ourselves sick when adversity comes knocking our door. We should, rather, focus on the solutions and work towards removing them. There is no difficulty in this world that cannot be removed. Our mothers breast-feed us to become valorous, fathers give us loving care and education gives us wisdom. We should be brave in face of difficulties and keep moving ahead with courage and patience without wasting any precious time. However tough the situation in life be, we should remain hopeful and patient. We must keep our faith in God that it may take some time but every problem does get solved. A businessman should always keep away from earning illegal money and only then will he be able to live a peaceful and happy life. As it is, this is already being done with complete dedication by our political leaders and top bureaucrats! Illegal money is the greatest bane in an industrialist’s life. Now the government has reduced the income tax to about 30%. Now hoarding money holds no relevance for businessmen or traders. If you pay your taxes honestly, then even after paying 30%, 70% is still left with you which enable you to get credit from any bank or financial institution and arrange for a bigger capital whenever needed. This money can be used to expand your business and earn more. Government should think about lowering the wealth tax. Rather than decreasing the revenue, it will lead to increased revenue collection by the government. In case we have entered into any dispute with any of the government departments then we should adopt a flexible attitude and find a middle path to get our work done. This saves time and we are saved from running door to door caught in an unnecessary legal conflict. Good and bad instances keep occurring in life. We should analyze each of them. This analysis will help us focus on all important aspects and use what is needed for our positive creativity. If we live with positive minded people, we too shall remain positive. Harishchand was regarded as a successful businessman of his town and his business was growing leaps and bounds. His wife was a very wise and astute lady. She would often advise her husband, “By Almighty’s blessings we are doing very well now but looking at your present earnings, I would like to advise you to keep a large part of your income somewhere safe. Times do not always remain the same and who knows when adversity befalls our business. When it happens, this money that you have saved will help you tide over.” Harishchand would smile and say, “Where is the rush? We will follow your advice and start saving after some time. Don’t worry. For now, eat, have fun and enjoy. Remain happy and let me be happy too.” In this way, time kept slipping away and Harishchand kept ignoring his wife’s counsel. A few years later, recession hit the market and businesses started failing. This affected Harishchand’s business too. His sales dropped, he could not realize the amount he had given on credit to various people in the market and even his friends did not return the money they owed him. Because of all these conditions Harishchand started suffering losses in his business because he failed to reinvest the required capital into his business. He was under a huge stress and worried and regretted not listening to his wife’s counsel. His health started suffering and one day, when his wife asked, he recounted the entire situation. In reply, she, very politely asked him the amount he needed to bring his business back on the tracks. Harishchand said, “I need 20 lakhs immediately. If I am able to lay my hands on this amount somehow, I then will be able to save my business even in these adverse conditions.” His wife smiled and said, “That is all! You have been worrying yourself sick over this small issue. I have been saving from the money you used to give me for household expenditure. I will bring it for you.” This made Harishchand realize his mistake. When time permitted he too should have kept some capital safe to tackle contingencies. Now his wife’s far-sightedness and astuteness had not only saved his face but also helped him save his business.
