Small Scale Business | Branding Packaging | Market Penetration

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Managing a Small Scale Business

Management is the art of making effective and efficient use of available resources (Human, Capital and Machinery/ Equipments) in pursuance of the objectives of the established business. While small scale business refers to any business with following characteristics:

Capital, but excluding the cost of land, not exceeding N750, 000

Staff strength not exceeding 50 persons and wholly, indigenous.

A manufacturing, processing or servicing industry, exceeding the units of

investment stated is relatively small compared to present size of plant and

the technology is fairly labor intensive. (Atijosan, 1998:7).

According to the World Bank (1990) a small scale business must meet thefollowing criteria:

  1. Small manufacturing firms that are relatively modern.
  2. Organized manufacturing firms such as those engaged in construction, repairs, transportation and trading.

iii.      Enterprises not organized in a modern manner.

Examples include traditional artisans, petty traders and transport owners in the informal sector.

Characteristically, a small business is one that is:

  1. a) Actively managed by its owners
  2. b) Highly personalized
  3. c) Largely local in its areas of operation
  4. d) Of relatively small size within the industry
  5. e) Largely dependent on internal sources of capital to finance it growth (Baumbuck 1983:4)

 

Small Scale Business

WHO IS AN ENTREPRENEUR?

Any person who coordinates other factors of production and bears the risk of uncertainties by investing his scarce resources in business ventures. In so doing, he also takes the managerial decisions of planning, staffing, organizing, directing and controlling the business enterprise.

ROLE OF SME

The contributions of small and medium scale business enterprises and entrepreneurs in any economy are numerous and highly integrated. These may include:

  1. Stimulation of indigenous entrepreneurship
  2. Transformation of traditional industry
  3. Creation of employment
  4. Income acquisition/ distribution
  5. Create opportunity for skill acquisition
  6. Serve as centre for skills and talents utilization

SCOPE OF SMALL SCALE BUSINESS

There are no sector of the economy restricted to the entrepreneur as concerns small scale business. It covers:

  • Trading
  • Manufacturing
  • Packaging
  • Import & export
  • Construction
  • Training e.t.c
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And other services providers.

Listed below are some specific areas by which any one may choose to invest

LIST OF COURSES (VOCATIONS) AVAILABLE

  1. Thinner Production
  2. Honey Production
  3. Cassava Starch Production
  4. Hair Cream
  5. Hair Oil
  6. Setting Lotion
  7. Sack Making
  8. Medicated Soap
  9. Laundry/ Bar Soap
  10. Liquid Soap
  11. Insecticide
  12. Bleach Production
  13. Candle Making
  14. White Wash Paint
  15. Palm Oil Small Scale Industry
  16. Disinfectant
  17. Soya Milk Production
  18. Biscuit Making
  19. Detergent
  20. Smoke Fish Production
  21. Kunu Drink & Preservation
  22. Zobo Drink Production
  23. Setting Lotion
  24. Shampoo
  25. Hair Darkener
  26. Wine Making
  27. Yoghurt
  28. Milk Production
  29. Baby Oil
  30. De- Greasing Agent
  31. Tie and Dye
  32. Body Lotion
  33. Air Freshener
  34. Hair Relaxer
  35. Bead Fashioning
  36. Perfume
  37. Toilet Cleanser
  38. Chalk Production
  39. Retarded Production
  40. Emulsion Paint
  41. Gloss Paint
  42. Texcoat Paint
  43. Glue Production
  44. Plantain Chips Making
  45. Custard Powder
  46. Body Jelly
  47. Poultry farming
  48. Herbal Tea Production
  49. Ink Production
  50. Agro Feeds Production
  51. Fish Farming
  52. Tea Production
  53. Deodorant
  54. Shoe Polish
  55. Balm Production
  56. Snail Farming
  57. Fruit Juice
  58. Sweets
  59. Recharge Card Production
  60. Herbal Soap Production
  61. Import & Export Trading
  62. Water Treatment Plant
  63. Edible Mushroom Production
  64. Confectionery
  65. Cassava Flour Production
  66. Pounded Yam Flour Production
  67. Piggery
  68. Designing & Packaging
  69. Ice Cream Making Business
  70. Forex Trading
  71. Internet Business
  72. Rental Services
  73. Private School Teaching
  74. Barbing/ Hair Salon
  75. Vegetable Planting & Sales
  76. Computer Business
  77. Laundry
  78. Cleaning/Pest Control
  79. Counseling / Consultancy
  80. Body Cream

FACTORS IN MANAGING SUCCESSFULLY SMALL SCALE BUSINESS

It is very dangerous for one to commit scarce resources into failed or unrealizable business. Before investing into proposed business venture the following factors must be in place:

  1. The potential entrepreneur must be physically and psychologically prepared
  2. Prepared your feasibility study
  3. Be familiar with the legal environment in which the enterprise will operate including possible restrictions.
  4. Have correct and realistic estimates of the entire costs.
  5. Know your facility requirements
  6. You must be trained in the field of interest
  7. Keep proper account of the business..
  8. Join relevant professional body e.g MAN, NACCIMA, NASSI, NID, IDM, COREN etc.
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PRE INVESTMENT REQUIREMENTS

  • Write out your mission statement of the business

❖      Plan properly

❖      Seek professional counseling

 POST INVESTMENT REQUIREMENTS

  1. Be sensitive to internal and external changes affecting the business.
  2. Respond quickly to those changes
  3. Obtain an accurate and useful operating and marketing information
  4. Effective, but humane use of human resources
  5. Effective handling of Government policies, Laws and regulations
  6. Handle social responsibilities
  7. Avoid capital intensive or depressing loans
  8. Be personally involved.
  9. Evaluate your decisions inputs and outputs.
  10. Make necessary review

BRANDING & PACKAGING

Branding entails giving a product or service a good and unique name or image for market penetration and acceptability mostly being very attractive.

Packaging takes over after a successful product or service branding. An act as well as art of wrapping, canning, arranging well and sealing of products. It is also a method of preservation.

FORMS OF PACKAGING

  1. Boxes (paper, wood, metal or pan)
  2. Tubs
  3. Bottles
  4. Jars
  5. Aerosols
  6. Bags
  7. Envelops
  8. Sachets
  9. Rolls
  10. Cartons e.t.c

PACKAGING SERVICES

Unlike packaging of products which is very popular, many people do not really understand an aspect of service packaging because of it invisibility. However it must be noted that ideas could be package that is intelligent composition of business letters, exceptional system or method of delivery of services. Building a strong brand requires careful planning and a great deal of long term investment. At the heart of a great deal of a successful brand is a great product or services packed by creatively designed and executed marketing. One of the most distinctive skill of professional marketers is their ability to create, maintain, enhance, and protect brands. Branding is a contemporary marketing priority.

UNDERSTANDING STRATEGIC BRAND MANAGEMENT PROCESS

This involves the design and implementation of marketing activities and programs to build measure and manage brands to maximize their values. Four main steps are involved:

  • Identifying and establishing brand positioning
  • Planning and implementation brand marketing
  • Measuring and interpreting brand performance
  • Growing and sustaining brand value.
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EXAMPLES OF BRAND NAMES

  • Bourn vita
  • Milo
  • Olvatin
  • G
  • Panasonic
  • Cowbell
  • Coca cola
  • Malta Guinness
  • Farouz
  • MTN
  • GLO
  • Bacgo
  • Limca
  • 7up
  • Uncle Bens
  • Mercedes Benz
  • Volkswagen
  • Volvo
  • Toyota
  • NISSAN e.t.c

HOW TO OBTAIN A BRAND NAME

You can obtain your product or service brand name by creating it; register it as a Trade Mark. To design a products brand two aspect is involved

  • Giving it a name
  • Designing a logo

The aspect of logo designing is done effectively with the use of computer either by a graphic artistic or very experienced computer operator. You can also meet monogramming companies to assist in creating a special and unique logo for you.

MARKET PENETRATION

Making your way into a cooperative market requires indebt knowledge of many factors. Today, companies are face with toughest competition than ever. Moving from a product and sales philosophy to a marketing philosophy, however, gives a company a better opportunity of out performing competition. And the chief cornerstone of a well conceived marketing orientation is strong customer relationships. After a well packaging products and services you must understand and apply the following concepts and strategies to be able to gain an effective access into market.

❖      Know the customer value, satisfaction and loyalty, and how you can deliver them.

❖      Know the lifetime value of customers

❖      Must attract and retain customers

❖      Cultivate strong customer relationship

❖      Deliver total quality

❖      Keep a dynamic and updated data base.

 

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