Month: January 2021

Categories
Strategy

BSE Signs MoU With Maharashtra Govt To Encourage SME Listing; Here’s How the Pact Will Benefit SMEs in Maharashtra

Online Business
Online Business

Mumbai, January 20: In a bid to create awareness about benefits of listing among small and medium enterprises (SMEs) in Maharashtra, leading stock exchange BSE has now joined hands with the state government. The BSE has signed a memorandum of understanding (MoU) with the government of Maharashtra on Tuesday, the exchange said in a statement. Under the pact, the BSE will provide intellectual and manpower support to create awareness about the benefits of listing among SMEs and will enable capacity building to such enterprises to fulfil listing requirements. Moreover, the BSE will provide training and capacity building support to District Industries Centre officials.

Here’s How the SMEs in Maharashtra Would Benefit:

  1. Under the MoU, the Maharashtra government will help in mobilizing the SME representatives and state and regional associations to encourage their SME members to attend capacity building programmes.
  2. In addition, the government will also reach out to industrial associations in the state for conducting joint seminars with BSE to create awareness among SMEs about benefits of listing.
  3. This MoU will help the micro, small and medium industries in the state to get registered in the capital market and raise capital from the public capital market.
  4. Subhash Desai, Minister for Industries & Mining in Maharashtra government said that BSE will also provide technical support to all the MSME industries in Maharashtra.
  5. The pact will further encourage more and more SMEs to list and raise equity capital on the exchange.

Ajay Thakur, Head-BSE SME and Startups said, “Through this collaborative effort, we will be able to reach out to various SME representatives and industry associations of the state and create greater awareness about the benefits of listings among SMEs of the state.

BSE had launched its SME platform in March, 2012. Till now,  331 companies got listed on the platform by raising Rs 3,381 crore and the market capitalization of these companies collectively stood at a little over Rs 21,566 crore. Out of 331 companies, 95 have migrated to main board.

Categories
Business motivation

5 Steps to start a Honey Business in India

honey business

With more and more people becoming health conscious, honey seems to have replaced sugar in most Indian households, restaurants, and cafes. And just like Winnie-the-Pooh, the Indian entrepreneurs are excited at the mere mention of its name and willing to dip a finger into the sweet honey business idea.

When Kolkata-based Aayush Sarda came with a startup ‘Sweetness of Ethics’ to aid the victims of cyclone Amphan to the source, package, and market the pure honey, no one expected its success. His enterprise is now selling 1,200 bottles every month.

The apiculture or honey bee farming business in India is a growing trend. It can either be done as a standalone commercial honey bee farm or can be easily integrated with crops to increase the yield to make some additional profits from the honey business.

If you are a beginner and have a desire to start your own business, honey bee farming can be a brilliant idea.  Here are some of the best tips that will help you to start your business:

  1. Start Early in the Season

Starting a honey business in India will bring profits only when it is started at the right time. To get the full nectar from the flowers, a beekeeper should begin his venture early in the season. Though apiculture can be started in any season, as honey bees are fond of warm weather, the spring season is ideal for honey business in India.

  1. Get your List Ready

Beekeeping requires a lot of things, so it is important to prepare a list. From Beekeeping equipment to Honeybee varieties, make a list of all the things that you might require to have a hassle-free process.

  1. Pick high-yielding Bees

Anyone who is thinking of starting a honey business wants good honey yield. It is always a great idea to research well on the type of bees and which one you should pick. For beginners, it is good to pick Apis Dorsata or the Apis Indica-the Indian Bee. These are the most common Honey Bee species in India and hence, perfect to start the honey business.

  1. Begin with Nucleus Colony

It is common to be a little unsure when starting a new business. Hence, it is better to start with a Nucleus Colony. Starting with a Nucleus Colony will provide a clearer picture about beekeeping and a better understanding of bees.

  1. Pay a visit to Bee Hives Every 7-10 Days

Beekeeping is different from regular farming. There are different issues that you will have to deal with. Issues like lack of flowers, pollution, crops, and radiation are killing bees. Hence, you must pay a visit once, every 6-7 days to keep tabs.

Beginners should keep things simple in the early stages. Do not expect a high yield of honey in the first year. Learning is a process! Continue practicing and acquiring knowledge based on your first attempt and apply it the second time.

However, not all are born with entrepreneurial skills like Aayush Sarda. But as we said you can gain knowledge from top industry experts. Join our Everything about Entrepreneurship course to know more. Click here https://www.badabusiness.com/?ref_code=ArticlesLeads

Categories
Startup

Founded by IIT alumni, this Indian Startup bagged Rs 130-crore deal with the Indian Army!

drones for indian army

The Indian army has signed a contract of $ 20 million with IdeaForge to procure high-altitude drones in undisclosed quantities. The SWITCH Unmanned Air Vehicles will be delivered over 12 months.

After IdeaForge emerged as the only vendor to successfully qualify the operational requirements for fast-track procurement, the Indian Army awarded the contract to this Indian startup for a high-altitude variant of its SWITCH Unmanned Air Vehicles- UAV.

The deal not only signifies the strategic shift in the acquirement process of the Indian Army, but has also cemented IdeaForge`s position as the largest manufacturer of Indian drones for defense and homeland security, and industrial applications.

What is SWITCH UAV?

A SWITCH UAV is a first-of-its-kind fixed-wing hybrid Unmanned Aerial Vehicle. It features higher safety, advanced flight time, and simple operation with additional fail-safe redundancies.

This innovative drone technology can be used for long-duration operations, security, long-endurance surveillance and security, photogrammetry, and inspection.

IdeaForge, the company that has bagged the Rs 130-crore deal has beaten the top Israeli and other Indian drone manufacturers.  It was founded by the four alumni of the Indian Institute of Technology (IIT Bombay)- Rahul Singh, Ankit Mehta, Vipul Joshi, and Ashish Bhat.

The Indian startup came into existence in 2007, at the Society for Innovation & Entrepreneurship (SINE). Initially, they started with building hand-cranked chargers, the enterprise soon shifted their focus towards building a hovercraft. This was the beginning of their venture into the drone manufacturing market.

Mumbai-based IdeaForge is a licensed manufacturer of Unmanned Air Vehicles (UAV) approved by the Ministry of Defence. The company currently offers seven UAVs that are used in a range of applications including traffic management, mapping, surveillance, security, and crowd management. Some of the drones manufactured by them are already in use by the armed forces.

“SWITCH UAV is the culmination of insights and knowledge the company has gained over years of experience in helping the Indian forces operationalize UAVs in their ranks”, said Founder and CEO of IdeaForge Ankit Mehta on the development of UAV.

“Our products are designed like a bird and tested like a tank. It is the only product that surpassed the stringent standards and product trials and surpassed expectations of the Indian Army”, he further added.

Refrence https://www.hindustantimes.com/cities/mumbai-news/iitbombays-firm-bags-deal-to-supply-drones-for-indian-army-101610652453456-amp.html?__twitter_impression=true

Categories
Technology

11 Types of Phishing Attacks that are too Clever to be Detected

phishing attack

11 Types of Phishing Attacks that are too Clever to be Detected

Cyber-attack has been around since the inception of the internet, with phishing attack topping the chart. A phishing attack is a type of cyber-attack which is used to steal the confidential information of the users such as credit card numbers, login credentials, and a lot more.

According to ‘Acronis Cyber Readiness Report 2020’, around 39% of global firms experienced a videoconferencing attack last year. India faced the highest rates of such attacks with 66% of companies reported to have encountered videoconferencing attacks.

We read about such incidents every day, and move on with our to-do list. However, when an award-winning Indian TV journalist Nidhi Razdan revealed recently that she was being duped into believing that she had been hired by Harvard University, the gravity of the phishing attack is realized.

Nidhi Razdan worked as a news anchor at one of the top news channels for 21 years. In June 2020, she announced that she was parting ways with the channel to take up a job as an associate journalism professor at Harvard.

However, after noticing numerous administrative anomalies in the hiring process, she contacted the University authorities. After hearing from the university she realized that she has been a victim of a sophisticated phishing attack.

In hacking`s lingo, Razdan`s case is a spear-phishing attack, which is a more potent version that is harder to detect.

A data report by Cybersecurity company Kaspersky`s in August 2020 revealed that the phishing attacks post-COVID were becoming more targeted. The small companies were more on the radar. These phishing attacks came in the form of emails from HR about the changes in the medical leave procedure, and employee dismissal.

What is a phishing attack?

Phishing is a type of online scam or a cyber-attack, where criminals impersonate legitimate organizations via electronic communication, text message, advertisement, or any other means of communication to steal personal information.

It usually involves a link that will appear to take you to the company`s website to fill in your information. The website is designed so cleverly that the information you fill in will go straight to the criminals.

If you are thinking about why this type of scam is called phishing then let us tell you the reason. The term ‘phishing’ is taken from the working fishing because the hackers are dangling a fake ‘lure’ (the genuine looking fake website) hoping users will fall for it.

Types of Phishing Attacks

Here is a list of 11 types of phishing techniques, you must know about:

Standard Email Phishing– This is the most common of all phishing attack techniques, and is an attempt to steal sensitive information through an email that appears to come from a legitimate organization.

Malware Phishing– This phishing attack uses the same technique, but encourages the user to click a link or download an attachment.

Spear Phishing– Spear phishing is a well-researched and highly-targeted attack. It is generally focused on business executives, public personas, and infamous personalities.

Smishing-Targeting the smartphone users Smishing is an SMS-enabled phishing attack. It often comes in the form of account notices, political messages, and prize notifications.

Search Engine Phishing– Fraudulent websites are designed to collect sensitive information from the victims. These websites can be found in the organic search results or as paid advertisements for popular search terms.

Vishing- Vishing technique involves a malicious caller prompting to be from a bank, tech support, or any government organization trying to extract the confidential details.

Pharming- Popularly known as DNS poisoning, pharming is a technique where a user is navigated to a spoofed page often to steal valuable information.

Clone Phishing– In this type of phishing attack, the criminal lures its victim by compromising a person`s email account by swapping a legitimate link, attachment, or other elements with a malicious one.

Malvertising– This type of phishing attack uses digital ad software to publish normal-looking ads. These ads contain malicious code embedded within them.

BEC (Business Email Compromise)- BEC involves a fake email id that appears to be from someone associated with the target company. The email requires urgent action like wiring money or purchasing gift cards.

Man-in-the-Middle Attack- This phishing technique involves a middle source that monitors the correspondence happening between the two unsuspecting parties. These attacks are generally carried out by creating phony public Wi-Fi networks at public places.

As digital technology is evolving, these attacks continue to find new ways to exploit vulnerabilities. Therefore, it is best to take precautions like using good protection for your operating system. Do not open the links and emails from random and unknown senders.

Also, change your passwords every month and avoid using the same password for different platforms. Never share your details with anyone. If you find you are the victim of a phishing scam, register your complaint with a cyber cell.

Being an entrepreneur is tough! To safeguard your business from cyber threats and other challenges click here :  https://www.badabusiness.com/?ref_code=ArticlesLeads

 

Categories
Startup

Start-Up Ideas: Here are 5 Businesses You Can Establish and Run Under Rs 20,000

Business Ideas| Representative Image (Photo Credits: Pixabay)
Business Ideas | Representative Image (Photo Credits: Pixabay)

As the start-up ecosystem in the country is blooming, more and more individuals are looking to establish and run a business of their own. They are quitting their secured and salaried jobs and venturing into a world of uncertainties yet extremely rewarding Start-Ups. The start-up mania is not only restricted to the larger places in the country, many highly talented and skilled people from tier – I and tier-II cities and even rural areas are planning to start their own business.  One of the most important criteria while making the decision about establishing a start-up is the availability of funds. How to Start a Coffee Stall Business Under Rs. 20000.

Many start-ups find it difficult to survive in their initial days owing to shortage of funds or irregularities in funding. Some of the people who want to start their own business also give up on their dreams owning to lack of adequate funds. However, there are certain businesses which can be started without much investment. Here are 5  start-up ideas to establish and run business under Rs 20,000

Bakery 

If you have a knack for baking delicious and mouth watering cakes, cookies, pancakes, chocolates among others, starting a bakery is the perfect idea. Home-made food items are especially bakery items are in huge demand. More and more people are avoiding ordering cakes from commercial bakeries and looking for home made alternatives. Opening a bakery is a perfect low cost idea for people looking to start business below Rs 20,000.

Ice-Cream Palour 

Another food related business idea which is low cost as well is to a ice-cream palour. You do not need an elaborate  or lavish set-up to start the business at least. One can place the order on credit with any supplier. The initial investment requires a good refrigerator and a little advertising about the launch of the shop and wait for the inflow of customers. February 2021 Shubh Muhurat Dates: Lay foundation for New Business venture on these auspicious dates.
Candle Making 

Different varieties of candles are very much in demand. They are used to give as gifts, mementos, saviours among others. Various scented candles are highly popular these days. A bit of creativity and artistry is all what you need to have to start this low cost and investment business.

Pottery Articles 

These are people are moving towards more eco-friendly products. The demand of pottery products is increasing. It is an extremely low cost business idea to start any time. All of new to have is some mud, a potter’s wheel and knowledge of pottery making.

Pet-Care Centre 

If you are found of pets and like to spend time with them, then you can start a pet care centre. If does not require much investment just a spacious arena and few facilities. It is extremely well paying as more and more pet owners look for well equipped and furnished set-up  for their beloved pets.

These are some business ideas which you can undertake to establish and run the business successfully without any hurdles and without worrying about the sources and regularity of funds.

Categories
Startup

Amazon Partners With Startup India and Others To Help Startups Reach Global Audiences; Here’s All You Need To Know About the Startup Accelerator Programme

Business Ideas

In a bid to help early-stage startups take their brands to global audiences, Amazon has partnered with Startup India, Sequoia Capital India and Fireside Ventures. The collaboration, announced on January 19, will launch an accelerator programme to help and guide the startups. As part of the Startup Accelerator, Amazon has constituted a mentorship board consisting of Amazon leaders from India and across the world, VCs and senior leaders from Startup India. The application process will be open for about three weeks, following which 10 startups would be chosen for the accelerator.

Here’s How the startups will benefit from the Startup Accelerator

  1. Amazon will provide the support for these startups to launch their products worldwide through its exports programme – Amazon Global Selling.
  2. These startups will then get an opportunity to showcase their business proposition to partner VC firms – Sequoia Capital India and Fireside Ventures and three of them will get a chance to win a total equity free grant of USD 50,000 from Amazon.
  3. Amazon will also host open virtual mentorship sessions focused on peer learning by inviting veteran entrepreneurs and members from its mentorship board for startups, to network and learn from their existing ecosystem.
  4. Abhijit Kamra, Director – Global Trade at Amazon India, said that the programme will feature a six-week 1:1 mentorship module for the shortlisted participants where they will get to interact with Amazon leaders from India and worldwide and get firsthand knowledge on building and scaling up exports business through e-commerce.

The Amazon Global Selling Propel (AGSP) programme has been designed to support early stage startups (raised funding in post seed to pre-series A stage, if funded) in the consumer products space to launch in international markets and create global brands from India through Amazon’s Global Selling programme.

Deepak Bagla, MD and CEO of Invest India, said that the adoption of technology and digital transformation has paved the way for India to be at the forefront of innovation, giving rise to some of the best startups in the world. He said there are many promising, emerging brands that have the capability to become big and go global. Bagla said that his is a timely initiative by Amazon which can prove to be a big stepping stone for startups to build their business and get access to global markets.

Launched in 2015 with about 100 exporters, Amazon Global Selling today enables more than 70,000 Indian exporters to sell ”Made in India” products through its 15 international websites and reach customers in countries such as the US, the UK, UAE, Canada, Mexico, Germany, Italy, France, Spain, Netherlands, Turkey, Brazil, Japan, Australia and Singapore.

Categories
Business motivation

February 2021 Shubh Muhurat Dates: Lay foundation for New Business venture on these auspicious dates

auspicious days February 2021

Whether you are planning to start a factory setup or a business startup, every aspiring entrepreneur, solopreneur and wantrepreneur want to be successful in a new project. A right beginning can make things easy and smooth, especially when you are starting a new business.

Starting a new business, opening an office or a shop on an auspicious date can bring fortunate luck, prosperity, success, and growth to the business owner.

In Hindu culture a Shubh Muhurat holds significance. A shubh Muhurat means an auspicious time that is based on the calculations and positions of the planet in the solar system. Based on these astrological calculations auspicious dates are decided.

Starting a new factory set-up or a business on a Shubh Muhurat date will keep the hurdles at bay, ensuring the success of your business. The month of February 2021 is predicted to be immensely auspicious for the shop-owners, entrepreneurs, and solopreneurs who want to lay the foundation of their new startup.

Here is a list of all the auspicious dates in February 2021 on which you can start your dream business startup:

14 February 2021– The 14th February this year is falling on Sunday and is considered to be auspicious. There are two Shubh Muhurat timings from 7.30 AM to 8.57 AM, and 10.22 AM to 06.27 PM.

18 February 2021– The 18th of February is Thursday and is a perfect day to do the inauguration of a shop or a factory setup. The auspicious timings begin from 10.06 AM to 11.41 AM, and 01.37 PM to 06.12 PM.

19 February 2021– The 19th of February is Friday and the shubh muhurat starts from 07.07 AM to 11.37 AM.

25 February 2021– Considered to be extremely auspicious, the 25th of February is Thursday. You can lay the foundation of your new business between 03.24 PM to 05.44 PM.

27 February 2021– 27th Feb is Saturday and if you are planning to open a shop, it is the perfect time to do it. Do the inauguration of your shop from 01.01 PM to 07.54 PM.

28 February 2021– The last day of the month is falling on Sunday and the best time to start your business is from 07.18 AM to 11.02 AM.

The above-mentioned dates in February are extremely auspicious according to astrology. So, plan the start of your venture around these auspicious dates and take your first step towards success, growth, and wealth.

 

Categories
MSME

Key Learning from 2020: How Indian MSMEs survived COVID 19 & Prepared to Kickstart 2021

key learning from 2020

The year 2020 was tough due to COVID 19 pandemic and like a nightmare for Indian brands & businesses and MSMEs. However, it has also proven to be a great learning curve. The global pandemic has redefined the business rules, forcing entrepreneurs to think out-of-the-box to find innovative ways to survive amidst challenging times.

According to a report published in Financial Express, ‘in 2020 about 38% of startups struggled with funds, and 30% of them had only 1-3 months of reserved working capital. Many businesses also reported around 80-90 % drop in their revenue’.

Though the Indian startup ecosystem emerged in the early 2000s, most businesses followed the traditional path to run their business operations in a straight, simple, and most convenient way.

According to the global innovation mapping and research company StartupBlink, ‘Indian startups ranked 23rd amongst 202 countries, based on their strength.

When the worst-ever global health emergency was also stuck in India, immediate measures were required to survive the lockdown. Though many Government Schemes were launched, Indian businesses and MSMEs also stepped up their game by mobilizing their operations online.

So how did they manage to survive during the challenging times? Check out the key learning’s from 2020 that helped the Indian MSMEs survive:

  1. Digital Innovation & Manage Cash Better

The reason why Indian startups are growing at a rapid pace is their flexibility to adapt to new changes and optimistic approach. During the pandemic, the most important learning that entrepreneurs or solopreneurs are willing to implement in 2021 is cash management and digital innovation.

Umar Akhar, Founder of Bengaluru-based Koskii also agrees. He says, “every entrepreneur must learn to increase their efficiency and manage cash better.

Also, digital innovation and the rise of online business operations is a promising trend, for which every business owner must be prepared.

  1. An Upward trend for Ecommerce

If there was one way through which most of the businesses survived during the pandemic, it was the power of digitalization.

With the imposed nationwide lockdown, the SMEs realize that for their business survival, they needed to adopt technology and constantly power themselves with digitalization.

The Chief Corporate Affairs Officer of Flipkart Group says the COVID 19 pandemic has helped MSMEs realize the potential of technology and e-commerce. Thanks to that, they have become modernized and upgraded.

  1. Cloud Adoption

Cloud adoption is the latest entrant that has given a new direction to SMBs. By upgrading themselves, the SMBs have increased their efficiency and productivity, since remote working allowed them to work in a secure environment.

2021 has come with great opportunities for SMBs to grow and expand with the power of technology, reimagined business models, and optimized business operations. Most of the MSMEs are willing to make the changes that are required for them to sustain.

However, it takes more than just the willingness to bring your business from the losses inflicted by the year 2020. Other key problem areas might require your attention. Resolve all the business-related challenges with our Problem Solving Courses.

Get more than 600 business templates that will give you exactly what you are looking for. Learn from the top industry experts that can help you change the business dynamics for the future. To know about our courses, click here: https://www.badabusiness.com/psc?ref_code=ArticlesLeads 

Categories
Business motivation

How to Start a Coffee Stall Business Under Rs. 20000

coffee stall

Mornings are incomplete without a coffee. And it is no secret that we Indians love our morning brews. Whether you have to rush for a morning meeting or manage your household chores, a hot cup of coffee gives a great start to our mornings.

According to a report published in Economic Times, India is now the world`s 10th fastest growing market for specialist coffee and tea retail chains. The industry is estimated to grow 6.9% a year to Rs 4,540 crore by 2023 in value sales’.

The industry has gained popularity, especially among young consumers. Specialist coffee shops attract youth, especially in large cities. So, if you are planning to open a coffee stall business in 20K, it would be a perfect time to do it.

Opening a coffee shop can be profitable and a self-rewarding business. So if you are a young entrepreneur who wants to become financially independent, open a coffee stall business.

Here is a step-by-step guide to help you come up with a brilliant coffee shop business plan:

  1. Choose a Coffee Stall Business Model

Having the right business model is paramount for any startup business. Hence, you will have to decide which type of business you would like to start. You will have to zero in on whether you want to come up with a small coffee stall or a café.

A small coffee stall business sells low-cost tea to the customers along with snacks. Depending on your investment capacity, you can decide whether you also want to provide seating arrangements to your customers. You can use disposable cups and provide snacks like omelets, toasts, and other snacks.

This is a low-cost coffee shop business idea and can be started with as low as Rs 20K.

  1. Franchise or Ownership

In urban as well as cities in rural areas, the demand for coffee has gained popularity. A lot of companies are now offering franchise business opportunities to new entrepreneurs, solopreneurs, and wantrepreneurs.

If you want to start a coffee and snack stall with a brand, then a franchise is the best option for you. Why? Because an already established brand will attract customers since the very first day.

However, if you want to start your own coffee stall business under Rs. 20,000, then starting your own business is more profitable for you.

  1. Select a Location

The next thing that you must do after deciding the business model, you will have to find an apt location for your coffee stall. The choice of location can be the deciding factor between success and failure.

  • Always select a place which is located in a busy market or shopping area. This will ensure you get high footfall throughout the day.
  • The location should also be easily accessible by the consumers. Your selected place must also possess great visibility too.
  • It is very important to understand your target audience. You can then choose your location accordingly.
  • The location should be affordable too. It is best to choose a place for your coffee stall business that is easily affordable. Also, check the lease fluctuation patterns of the past few years.

 

  1. Business Registration & License

Most of the coffee stall businesses in India run as proprietorship models. If you too are planning to follow the course, your PAN card is sufficient for that. You will also need a Trade License from the Local Municipal Authority.

  1. Go Online

With a nominal investment, you can sell your coffee online on the internet. If you do not have enough funds to advertise, you can use the power of social media platforms.

The online presence of your brand on popular networking platforms like Facebook and Instagram can help to build your brand`s reputation.

Opening a coffee stall business in India is one of the most popular business ideas. However, it also needs a great deal of market research and business planning. You can learn the dynamics of business, challenges you might face, and solutions in advance to make your business successful with our Problem-Solving Courses.

Want to start your own coffee stall business? Click here: https://www.badabusiness.com/psc?ref_code=ArticlesLeads

Categories
Marketing

What is Channel of Distribution? Here are 3 Factors Businesses Should Keep in Mind While Choosing Distribution Channels

Channel of Distributions for Business | Representative Image (Photo Credits: Pixabay)
Channel of Distributions for Business | Representative Image (Photo Credits: Pixabay)

No business can survive on its own. It needs a proper and robust network to carry on its business smoothly and ensure regular transportation of goods from the site of production to various market outlets. A business should carefully choose its channel of distribution so that its manufactured products reach the customers on time. This also ensure that the investment in the stocks and products is repaid quickly by materialising sales. 4 Top HR Trends & Priorities for 2021.

A distribution channel a network or  chain of middle men or intermediaries through which manufactured products passe until they reaches the final buyer or the end consumer. Distribution channels can include wholesalers, retailers, distributors, and even the Internet. It is part of a firm’s marketing strategy. There are two forms of  distribution channels -direct and indirect. Direct channels does not involve any middlemen and the product reaches to the customers directly from manufacturing site. In an indirect channel, product passes through various intermediaries to reach the final consumers. 8 Types of Working Capital & Everything you should know about them!

Here are factors that need to be considered while choosing a distribution channel –

Nature of the product 

The first and the foremost aspect while deciding the channel of distribution is the type and nature of the product. If the product is perishable in nature, which get spoiled easily and quickly, should mostly use direct channel of distribution so that the goods reach the customers fresh and well in time. However for durable and semi-durable products longer and indirect channels of distribution can be used.

Cost of Distribution Channel

Another important aspect to be considered for determining the channel of distribution is the cost involved. Mostly the direct channels are less expensive than the indirect ones and involves less time . Firm should examine various options available and choose the one which is most cost effective. Every middlemen involved leads to an additional increase in the overall price of the product.

Channel of Distributions Used by Competitors- 

Firms should also look at the channels of distributions being used by its various competitors. It gives firm a sense of expenditure related to distribution channels to the firm. The business could also take the first mover advantage. By regularly analysing the market scenarios, businesses can quickly change the channels to have an advantage over its competitors.

Firms should be careful while  choosing a channel of production and it is the only source through which its products reach the customers and sales materlise. Any distribution channel should be flexible enough to accommodate for opportunities and threats of the dynamic business environment.