Why Do You Need a Drug License?

Though drugs are primarily used for the betterment of health, they can often be misused. Irregular dosage, improper knowledge about proper application or intake, or addiction can lead to serious consequences. To prevent such occurrences, it is necessary for pharmacists and other medicinal retailers and wholesalers to possess a drug license. A drug license gives the person the right to sell and appropriately deal with medicines. Any individual or business that deals in drugs without a drug license is liable for imprisonment and/or fine payment.

According to the Drugs and Cosmetics Act of 1940, the government can check the quality of drugs sold in India. It also helps the government monitor the manufacture, sale, and distribution of drugs right from the beginning, where the raw material is sourced. The government also performs regular checks on medical stores and pharmacists who stock these medicines.

Different Types of Drug License

Just like there are different types of drugs, there are different types of drug licenses. Every pharmaceutical business in India must have the following drug licenses.

1. Manufacturing license

This license is given to a business that manufactures drugs of any kind, including homoeopathic and ayurvedic. 

2. Sale license

This drug license is issued to the individual or store selling the drugs. There are two types of sale licenses:

• Wholesale license

This license is issued to a drug wholesaler. They sell drugs to a drug retailer and usually sell drugs on a large scale.

• Retail license

This license is issued to a drug retailer. They buy drugs directly from the manufacturer or a wholesaler and sell directly to the customer. Retailers can sell to different types of customers like standalone customers, dispensaries, hospitals, medical colleges, research institutes, etc.

3. Loan license

This drug license is issued to a company that uses the manufacturing unit of another licensed drug manufacturer.

4. Import license

This drug license is issued to a dealer who imports drugs or the raw materials required for manufacturing the drugs.

5. Multi-drug license

This drug license is issued to a business that owns pharmaceutical units with the same name in multiple states.

Requirements for Obtaining a Drug License in India

You have to fulfil the following requirements to get a drug license for a medical store in India:

1. Pharmacist

A medical license is issued only to a registered pharmacist. The pharmacist should know the details of the retail business as well. For a wholesale business, a graduate with one year of experience or an undergraduate with four years of relevant experience can apply.

2. Premises

A retail medical store needs to have a minimum area of 10 square metres. In the case of a wholesale medical store, the minimum area requirement is 15 square metres.

3. Storage

The medical store or manufacturing unit must have proper storage facilities including cold storage and refrigerators. Medicines that do not need to be stored in a refrigerator also need to be stored safely without exposure to the sun.

4. Staff

As the staff of a medical store will be dealing with patients and sick people, it is important to hire people who have experience in such matters. A graduate with at least a year of experience or an undergraduate with at least four years of experience is preferred.

A business dealing in medicines needs to consider the different licenses they will need for operating their business. A medical license is region-specific, that is, a medical store license in state A is valid only for that state. The business cannot operate in state B. 

Before obtaining a drug license, you need to be aware of all the terms and conditions you need to follow while running your establishment. Failure to follow these rules can get your medical store license revoked or suspended.

Regulatory Authority for Issuing a Drug License

The Drugs and Cosmetics Act, 1940 has mentioned the various drug controlling authority that is responsible for the safe manufacturing, distribution, and sale of drugs in India. They are as follows:

1. State Drugs Standard Control Organisation (SDSCO)

This organisation issues licenses for the manufacture, distribution, and sales of drugs as regulated by the State.

2. Central Drugs Standard Control Organisation (CDSCO)

This organisation issues licenses for newly manufactured medicines and cosmetics and also for clinical trials. It also monitors the quality of imported drugs and coordinates with the SDSCO for seamless drug distribution and sales.

3. State Drug Controlling Authority and Central License Approving Authority

These two organisations work with each other to issue licenses for blood banks and other related products like vaccines, serums, etc.

4. AYUSH department

AYUSH issues licenses for dealers in ayurvedic, Unani, Siddha, and homoeopathic medicines and cosmetics.

How to Apply for a Drug License?

If you wish to apply for a drug license, you must approach the regulatory authority that is responsible for it. You must apply to the respective drug controlling authority depending on the type of drug license you want. Each authority is responsible for different licenses. 

You must follow these steps to obtain a drug license:

1. Visit the concerned authority

Once you have decided the type of pharmaceutical unit you are going to establish, visit the respective drug controlling authority for the drug license. This is an online process.

2. Fill out the application form

Fill out the details asked in the application form correctly. 

3. Upload relevant documents

Upload the documents and submit the application form with the fees. 

4. Expect a visit from the drug inspector

Within 15 days of submitting your application online, the Drug Licensing Authority will receive your application. A drug inspector will come and inspect your premises, storage facilities, and staff. They will also check your documents.

5. Grant

Once the drug inspector visits and verifies your setup, you will receive your medical store license from the concerned authority.

Documents Required for Obtaining Drug License

You will require the following documents while applying for a drug license:

1. Identity proof of proprietor/partner/co-founder/director, etc.
2. Address proof of applicant and other members
3. Educational qualification of the applicant
4. Declaration form
5. Constitution of the establishment, Memorandum of Association (MOA), Articles of Association (AOA), partnership deed, LLP agreement, etc.
6. Premises ownership or rental agreement. If rental property, NOC (No Objection Certificate) from the landowner.
7. Site plan of premises
8. Proof of storage space availability
9. Copy of Board resolution allowing you to obtain a drug license
10. Copy of fee challan
11. Affidavit from a registered pharmacist
12. Cover letter in which the name and designation of the applicant are mentioned
13. Affidavit of non-conviction of proprietor/partner/director under the Drugs and Cosmetics Act, 1940
14. For a retail medical outlet pharmacist
    • Qualification certificate
    • Registration certificate
    • Appointment letter
15. For a wholesale medical outlet pharmacist
    • Qualification certificate
    • Experience certificate
    • Appointment letter

List of Application Forms for Drug License Application

The Food Safety and Drug Administration (FSDA) Department of a state government issues and handles the rules and regulations related to drugs license. It receives and processes your application. The different application forms you need to fill out are:

Conclusion

Obtaining a drug license in India is a pretty straightforward process. You need to be clear about what kind of pharma unit you want to run. Once you have decided, all you have to do is fill out the application form and get your unit verified by the drug inspector. With all the relevant documents in place, you can get a drug license easily to proceed with your business.

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FMCG is the fourth largest industry in the Indian economy, with the urban segment accounting for around 55% of total revenue. However, rural India’s FMCG sector has grown faster than its urban competitors, owing to increased internet access, expanding awareness, rising income, and changing consumer preferences. It has been stated that FMCG products represent 50% of rural expenditure, which shows the fast growth in rural and semi-urban customers.

As a result, launching an FMCG products distributorship can be an interesting and profitable business venture. You can become a market supplier to retailers, FMCG distributors, and exporters or sell directly to customers.

What is FMCG Distribution?

Consumer goods with cheap prices have strong demand, known as FMCG. The best examples are household goods, clothing, and food. A retail store is where a consumer buys the items. FMCG retailers include stores like Big Bazaar, D-Mart, and local supermarkets.

When it comes to fast-moving consumer goods, a distributor serves as a gateway between producers and consumers. He is responsible for distributing their products within a specific geographic area for a specific FMCG products distributorship. You can become an FMCG distributor depending on what kind of store you choose.

Categories of FMCG products distributorship

• Processed Foods
• Beverages
• Dried Products
• Ready-to-Eat Meals
• Cosmetics
• Toiletries
• Medications available over-the-counter
• Candy
• Organic and fresh local foods
• Frozen foods
• Bakery Products
• Consumer electronics
• Office Equipment
• Cleaning Supplies

The distributor’s role in the FMCG channel

Distribution is buying products from suppliers and selling them to retailers or end-users. When a distributor and supplier agree on the distribution of products, this is known as a distributorship agreement.

The FMCG industry relies on distributors. An FMCG distributor typically has exclusive rights to distribute a particular line of products within a specific geographic area. He will be in charge of product dispersion, market coverage, and retail penetration.

In the FMCG platform, FMCG distributors perform the following functions

• He buys things in bulk from manufacturers and sells them in small quantities to retailers.
• He receives orders from institutions and shops and ensures that things are delivered quickly and satisfactorily.
• He monitors product inventory and manages outlet requirements through their inventory.
• He provides the necessary funding to enable the retail market to access credit.
• He grew the retail market and the number of products sold in stores by opening new stores.
• He is responsible for field-level marketing efforts such as in-store and H2H promotion.
• He assists in minimising and resolving client complaints.

Certain requirements to obtain FMCG products distributorship

There are certain fundamental requirements of the organisation from FMCG distributors, such as solid financial support, improved infrastructure and transportation capabilities, adequate workforce, improved knowledge of software applications, and a well-established reputation in the industry.

However, 3 key features will distinguish you as the company’s best FMCG distributor. This way, you can establish a long-term relationship with the organisation.

1. Business Skills 

The first requirement is business expertise. No one can keep you from advancing if you have strong business expertise in the FMCG industry.

Knowing your target market, retailers, and shortages in the market can help you better target your marketing efforts. However, if you wish to advance in your career, these are insufficient.

There is no such thing as a static person in today’s environment. Even if you only have 30% of the market, you still need to grow. You must align your level with the growth of those around you.

2. The quality of leadership 

You must show your strength and consider what qualities you require to be a successful leader. Finally, you must control your sales stream, regardless of whether people regard you as a leader or role model. It doesn’t matter if your employees appreciate you or respect you as a leader.

This reveals your leadership skill. This is a self-motivated action for your business.

3. Trader’s relationship 

Changing FMCG distributors will not affect retailers because they have no experience dealing with their existing distributors. Therefore, if the company switches distributors, retailers will be unaffected.

That’s why it won’t affect the business. Instead, improved market relations will lead to improved business relations.

A trade interaction is proportional to a company relationship. Therefore, take control of retailers and provide them with the greatest and most dedicated services to earn their loyalty and trust.

Different kinds of distributorship in the FMCG industry

There are five distinct types of FMCG products distributorship. Additionally, you may select any distributorship from these five categories based on your needs.

1. Traditional trade distributorship

This category includes all grocery, Kirana, and ordinary shops. These distributors provide service to these retail stores.

Therefore, ensure that you are familiar with the entire area and have a good position in the marketplace. Additionally, you must be active and make regular visits to the market.

Apart from financial constraints, these are the most basic requirements: godowns, infrastructure longevity, and transportation facilities.

2. Wholesale distributorship

Typically, commodity manufacturers were the most in-demand to purchase wholesale distributors. The wholesalers must be sufficiently strong because goods such as pulses, wheat flour, and other similar products are mostly marketed through wholesalers.

As a result, they are the primary cause for the existence of distinct distributors just for wholesale stores. They do not sell directly to the supermarket, Kirana, or general stores. Instead, these distributors provide their services exclusively to wholesalers.

3. Modern trade distributorship

Modern trade outlets include large marketplaces and retail establishments like big bazaars and reliance fresh. If you wish to join a modern trade distribution company, you should contact a company that specialises in modern trades.

Such distributors are available at any FMCG company, and those who deal primarily in premium items will give you the greatest prospects because modern trade is a major focus for them.

4. Institutional distributorship

Corporate entities, hotels, public sector entities, and railways fall under institutional categorisation. Furthermore, the numerous FMCG corporations distribute their products primarily to distributors rather than through wholesalers or retailers.

So, if your growth in the double-line sector is stronger, you may be eligible for this distribution. But, again, personal supervision is a plus for institutional distributors, as with current trade distributors.

5. Super stockist distributorship

FMCG firms use super stockists to reach out to rural areas. They give services to the small distributor in nearby communities, who distribute the goods to villages.

Thus, super stockists serve as the primary gateway for sub stockists. For such distributors, the fundamental requirement is that you should have a specific location.

Starting your independent FMCG products distributorship

The following are some considerations to make before beginning an FMCG distributorship firm.

a) Decide on your product 

FMCG consists of numerous products. Plan the Brand products you wish to distribute before starting your enterprise. You could specialise in a single product or sell a variety of products. 

Your choice may be influenced by a particular interest or a product you haven’t seen or used before. The product’s demand and future should be thoroughly researched.

Focus on things that are always in demand or necessary for daily life, such as cookies, wafers, dishwashing liquid and liquid soaps, ice cream, and other confectioneries.

b) Entrepreneurship plan 

A business strategy is the bedrock of any successful enterprise. Create a business plan that details your FMCG distribution business’s overall vision. It makes it easier to stay on track and manage your business. The form of distributorship you would be, and also your target customer, your management framework, along with marketing and supply chain strategies, should be included in your business model.

c) Registration & Licensing 

It is critical to register your business first. Obtaining a business license and registering it are the first steps to making your enterprise legitimate. Check your state’s requirements for registering your business. You should also specify if you require forming an operational agreement or another kind of founding document.

d) Location 

Another essential condition determining your distribution company’s success is its location. Your products and delivery type decide the volume of your storage space. Consider starting simple as your business establishes a reputation. Then, as your firm grows, you can expand into larger spaces, a distribution warehouse that can manage your inventory needs.

How to get started as an FMCG distributor?

Getting into the distribution business may be a profitable initiative that benefits out significantly in the long run. However, the best way to be an FMCG distributor depends on your interests, where you reside, and how much funds you have to spend. Despite this, you can take a few crucial steps to lay the foundation for a successful career in distribution. Here are 5 steps you can do before a company chooses you as a distributor

1. The ability to make financial investments in the organisation is the most crucial requirement. Distributors must be capable of spending that amount of funds as their business’s monthly turnover.
2. You need to have experience in the FMCG industry. Prior experience can assist in ensuring the continued success of a corporation. Relationship with local stores is critical for growing your organisation’s market exposure.
3. Whether delivered or not, all orders are collected the next day as service to retail outlets. An incomplete order can affect a business’s reputation and lead stores to stock products from competitors.
4. A FMCG distributor must be ready to give credit facilities; this benefits both the distributor and the turnover.
5. An inventory management system must be implemented by a FMCG distributor and warehousing and sales staff to receive orders from the marketplace, vehicles leased, and bills sent out to merchants.

Conclusion

There are numerous attractive distributorship opportunities in FMCG, suitable for organisations of all sizes. Although it’s a highly competitive industry in India right now, if you prepare well enough and begin as soon as possible, you can enjoy its benefit. If you have a solid business strategy, you can adopt any distribution technique you like. There are various lucrative distributorship opportunities in FMCG, with opportunities for businesses of all sizes. The industry remains one of the most competitive industries in India at present. If you plan wisely and get started early, you may get the benefits of your life.

FAQs on FMCG Products Distributorship

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Why should you use a POS system?

Retail POS billing software is becoming more and more advanced, allowing businesses to become more successful and cost-effective in their processes. With the great POS systems available, running a retail business has never been easier or more efficient. 

Small company owners are shifting their focus to developing relevant shopping experiences to convert regular clients into long-term customers for online purchasing. 

These systems use software and hardware to track a store’s sales and purchases bringing supermarket pos software to limelight. 

In addition, you may leverage your point-of-sale system to conduct an in-depth analysis of your shoppers’ activity.

What is a POS (Point of Sale) retail system?

The term “Point of Sale” refers to the space within a store where clients can make purchases. Typically, the word refers to systems that keep track of financial transactions. This may be an electronic cash record or a centralised computer system that records the data associated with the sale of goods and services.

A point-of-sale system (POS System) is a combination of hardware and software used to track a retail outlet’s financial activities. It is the most effective tool a store owner can use to manage and evaluate her business.

What are the essential features of retail POS software?

The POS systems have evolved, replacing the traditional cash registers with complex systems or software. With these features, a business has grown tremendously due to its ability to store its records organised and efficiently. However, after implementing the customised point of sale system, employees must be trained on the system’s operation and functionality.

1. High-security data encryption

Since cyber-attacks are a major concern now, the application develops POS systems that encrypt data, most notably payment details and ordering processes. As a result, data breaches are prevented, and customers are protected from fraud.

2. Remove the possibility of human error 

Manually inputting product and pricing information increases the chance of human error, especially when dealing with a high volume of transactions.

When you use a POS system, you’ll have the exact product SKU, consistent pricing, and the appropriate order quantity at any given time. In addition, data from all sales orders are stored in your POS system and may be retrieved if necessary.

3. Minimise your losses

A POS system is critical since it gives you appropriate financial information. You can track your cash drawer balance, daily and monthly earnings and expenditures. Your accounting department will have much easier access to data if your POS system is integrated into your accounting system.

Inaccurate inventory is a major challenge for many retailers. The implications might be pretty painful if you cannot get to the issue’s core.

It is necessary to keep proper records of your inventory. You can limit the risk of missing or stolen inventory by analysing how much you have and where it is.

4. Easy mobile apps or web-based programs

If you plan to use your POS on a mobile device, this is the ideal solution. If you have a mobile device and a card reader, you can use this app to perform transactions. Other options include services only accessible at your business location’s point of sale (POS) terminals.

5. Compatibility with accounting software

One of the essential features of a reliable POS software package is an interface with your accounting system, allowing you to plan your budget carefully.

Specific systems can be configured to automatically reorder items when your stock drops below a predetermined level. This service saves time when reordering items and ensures that you always have availability of your favourite products.

How to use POS systems to maximise sales?

Because the significant role of your POS is always to process sales, you should become familiar with the system’s sell screen. Every POS system is different, but in general, your POS will allow you to ring up sales by following the steps outlined below:

• Increase the number of items available.
• Make use of coupons, discounts
• Accept payments
• Include notes

What are the reasons for using POS software in your retail business?

Some of the most important aspects of a good POS system are listed here.

1. Sales data 

The sales data you receive from your POS system should be presented to you to make it easy to understand. It should be available daily, hourly, and real-time reports. Year-over-year comparisons and day-part comparisons should be possible. It should forecast sales patterns for you.

2. Streamlined inventory control 

There are better POS solutions with enhanced functionality. The modern Cloud-based POS system integrates several tools, ranging from planning and payroll to inventory tracking management.

A good POS will track inventory turnover, sales, and fill-in orders. Your POS system should notify you when it’s time to reorder. It should also keep track of markdowns and shrinking.

It can assist you in managing and tracking your stock, allowing you to make more effective sales and purchase decisions.

As a result of these measures, the potential for inventory and sales tracking inaccuracies can be eliminated.

3. Developing a strong relationship with your customers 

An improvement in the customer experience might result in a significant increase in your annual income.

Keeping customer data and transaction records enables you to personalise the customer experience, which is vital for customer retention. For example, whenever you plan advertising campaigns, this data allows you to focus only on those clients who are highly involved in your sale.

Businesses with strong client relationships can save their clients’ payment options in their POS system. This method simplifies transactions significantly.

4. Controlling the workforce 

It should also keep track of employee hours worked and sales performance. Additionally, it will assist you in rewarding essential selling skills activity.

As with monitoring employee hours, another benefit of your POS technology is the ability to create schedules for your employees. In addition, implementing the POS software may save your managers time because it can provide real-time data and perform activities efficiently and quickly.

5. Reporting 

POS makes it simple to keep an eye on sales, profit, and expenses, which can be hectic. Suppose the system can make custom reports for you. Each system will have a collection of predefined reports that you may run, but ensure that the plan allows you to customise your analysis because your retail store is distinctive. For example, look for a POS system that will deliver weekly reports without requiring you to run them. Another excellent feature is the ability to receive notifications.

It can help you track your sales, profit, and expenses, like the Cost of Sales (COGS), with ease by developing your customised POS. Cloud POS reporting allows you to access data from anywhere.

6. Centralised control 

A well-designed POS system can assist in resolving a variety of concerns, including new logistical challenges. We prefer command centres for the best POS systems since they can be integrated with various software applications.

POS systems allow you to spend more time on other activities such as assisting clients, creating better solutions for your businesses, or merchandise your sales floor because most of the system’s work is done for you.

7. Programs of loyalty 

Customers prefer retailers who offer a reward for loyalty over those who do not. Your POS systems can track this for you. Numerous studies demonstrate that customers who participate in a retailer’s loyalty programme spend more money.

8. Gift cards 

Today, the gift voucher is a popular item in retail. These cards must be well-managed and tracked by your POS system. Gift cards transactions continue to increase during the holiday season. A good POS system should have the ability to keep you up to date with federal regulations on gift cards.

How to organise a POS system?

The POS is an underappreciated part of business operations for many retailers and small enterprises. However, there are several essential aspects that businesses must make a concerted effort to succeed. However, your retail point of sale (POS) system is likely your most important operating tool.

There are several considerations for locating and setting up a POS system. First, a good solution requires good execution.

1. Conduct Research to Identify the Top Retail Software

2. Select the Appropriate Point-of-Sale System for Your Retail Store

3. Decide how your POS system will be set up.

4. How to Access and Use the Software

5. Developing a Product Information Database

6. Boost Your POS Workforce

7. Configure Your POS Payment Methods

Why use restaurant POS systems?

Hardware packages are often touchscreen displays, terminals, receipt printers, cash drawers, and barcode scanners for restaurants. In addition, restaurants, like retailers, can use a mobile POS system that includes an iPad, cash drawers, and a printer.

However, while these are basic packages, most service providers allow business owners to pick and choose the hardware they require, which helps reduce overall costs.

Restaurants benefit from cloud-based, mobile-enabled point-of-sale platforms because they enable faster innovation, reduced IT complexity and costs, outstanding customer interactions, and enhanced security.

Speciality packages, such as those for restaurants, come with unique features. For a restaurant, features such as the ability to track restaurant bills, split checks, and organise special pricing for specific events such as happy hour are examples of what can be performed.

POS operating systems are often several hundred dollars. Advanced bundles might cost thousands. You can save money by avoiding bundles and purchasing only the necessary components separately.

How do you make the most of your retail business’s POS system?

Retail shop operations necessitate numerous administrative, organisational, and marketing skills. These skills are necessary for the proper management of your store, from ensuring adequate inventory to producing monthly sales statistics. Before using a POS system, retailers should invest the time and resources necessary to get it up and running. It offers a reliable POS system that can help you run your business efficiently.

The best POS system for your retail business

• A good point-of-sale system enables small retailers to operate as efficiently as large brands. Using a complete point-of-sale system is the best way to boost your bottom line.
• myBillBook is the best POS billing software for small businesses.
• The diverse applications demonstrate the expertise in assisting multiple small scale businesses in growing their businesses.

• The POS designed by myBillBook can improve the customer experience, helping you make more informed and smart decisions, ultimately resulting in a successful and unmatched business experience.

• Contact myBillBook today for a free trial on multiple POS systems to choose the one that best meets your needs.

Frequently Asked Questions

What are some essential factors to consider when selecting a POS system?

Make sure your POS system is easy to set up and operate before buying it. You must be able to supervise the setup procedure immediately, and training personnel should take only very few minutes instead of several hours. In addition, the interface of a POS system should be simple to understand and easy to operate.

What are the most significant properties of restaurant POS software?

- Effortless Checkout with a Quick Interface
- Easy to Manage
- Simple to Use
- Inventory Management
- High-Quality Reporting
- Easy to Setup Menu
- Table Management and Bookings
- Complete and accurate Training

How many different types of point-of-sale machines are there?

There are different types of POS terminals, including an online point of sale, offline point of sale, cloud-based point of sale, web point of sale, mobile point of sale, tablet point of sale, desktop point of sale, ePOS, iPad point of sale, Android point of sale, on-premise point of sale, multichannel point of sale, omnichannel point of sale.

What features characterise a successful point-of-sale system?

Investigate the data analytics capabilities of the POS. Your system would provide thorough sales reports in an ideal world, including charts and graphs. Additionally, it should include an intuitive dashboard that displays real-time sales, cash flow, and inventory data.

Read more articles related to POS Billing Software

Retail POS Billing Software
Supermarket POS Software
Restaurant POS Software

The post How to Use POS Systems in Retail Business appeared first on MyBillBook.

A point of sale is a point where customers checkout with the items they have purchased. A point of sale (POS) system is the set of hardware and software that makes this transaction possible.

Every business has a different point of sale (POS) system according to its needs. For example, an online shop will have a completely computerised system while a supermarket will have a different system with multiple cash registers connected to a central computer.

There are quite a lot of other factors involved in the POS system as well. This article will discuss what point of sales systems are and how to choose the perfect system for your business.

How Does a POS System Work

A point of sale (POS) system helps a customer to complete the transaction successfully after a purchase. It also doubles up as an inventory management system. The steps involved in point of sale systems are:

1. A customer selects a product

The customer either physically brings a product to the checkout counter or clicks on the checkout button on their e-commerce site shopping cart.

2. The POS system calculates the prices

The different POS tools come together to scan and price the products. It also adds different taxes as per the applicability. It applies discounts and offers as well. Then it calculates the final amount for the purchase.

3. The customer pays for the purchase

The customer makes the payment using different methods such as credit cards, cash, cheques, or online payments. The POS systems, such as cash registers, credit card readers, receipt printers, etc., work in tandem with the billing software to accept the payment. Online stores do not need hardware. Their POS system consists of different software to process payments made using credit cards, online payment apps, or even cryptocurrencies.

4. The POS system completes the transaction

The software makes all the calculations and notifies if the customer is due to be paid. At a physical store, the customer gets the receipt. In online stores, the page moves on to a post-purchase page to collect the customer’s shipping information. A POS system requires a PIN or signature of a customer to process the payment. The POS system also updates the inventory at the backend accordingly.

Benefits of POS System

A point of sale system has many benefits including:

• It gives you control

Having a proper POS system can help you streamline your business. You have good control over all the daily transactions. A good POS system also helps you calculate your weekly and monthly transactions easily.

• It helps manage inventory

You can easily manage your inventory when a proper POS system is in place at your business. 

• It helps calculate profit and loss

As you can easily track transactions over a while and also maintain your inventory, you can calculate the profits and losses your business has incurred.

• It helps you plan ahead

A POS system helps you see trends during certain periods. For example, many people in India buy new bags and water bottles for their children around March and April. Studying these trends can help you finetune your sales processes for better profits.

• It increases efficiency

A good POS system makes it possible for you to access all bills and orders accurately. Hence, drawing up annual financial statements like balance sheets or profit and loss statements becomes very easy. In addition, tax calculations are also simplified with a POS system.

• It allows customisation

The biggest success for a business is when it can cater to a customer’s specific request. When you use a POS system for your business, you get an idea of what a customer likes based on their purchase history. You can recommend their favourite products, which will increase your clientele.

• It accepts universal payment

Payment processing is one of a point of sales system’s key functions. When a customer buys a product, the POS system gives them the option to pay for them with the following payment methods:

• Cash – This is deposited in the cash register
• Credit cards with magnetic strips – These payments are made when the customer swipes a credit card in the credit card machine.
• Cards with chips – Credit or debit cards with chips are used to make payments by tapping on near-field communication (NFC) device
• Online payments – These payments are made using mobile wallets like Google Pay. Chip card payments also are considered contactless payments.
• Gift cards – Physical or digital gift cards for redeeming at the time of purchase
• Transactions when the card is not present – The customer does these transactions without being physically present with their card. Online checkouts and orders over the phone are some examples of “card not present” transactions.

• It improves sales

A good POS system helps merge multiple systems and gives the customer a great shopping experience. For example, if a customer has stored some products in their online cart, the staff at a physical store can help them pick the items that are the same as or closest to those in the cart. You can throw in different incentives for the customer such as buying online and picking up in-store (to reduce shipping costs), free shipping for select locations, free home delivery for a certain radius, and so on.

• It increases your business

Once a good POS system is in place for your business, you can expand it easily according to your convenience. If you have a physical store, you can use the same system to set up a kiosk or even an online store. 

• It helps quick adaptation

A business is a constantly growing entity. At many points in time, you will need to make new changes. A POS system that supports your business will help you adapt to these new changes seamlessly. 

Parts of a POS System

A point of sale system is made up of different hardware and software components:

• Computers

Whether you have an online business, an offline one, both a small business, or a large one, computers are an integral part of your POS system. A computer simplifies your transactions and makes it easy for you to manage multiple transactions well. 

Many POS hardware come with their computers. However, you can buy a computer separately and connect it with the hardware as well. However, you must remember to use the POS computer only for the POS system.

After you have purchased the computer, the next step is to put in suitable software. MyBillBook’s POS is a one-stop software application for all your POS needs.

• Cloud computing

In recent times, most POS systems are linked directly to the cloud. The data can be accessed from anywhere on the Internet and is stored on remote servers.

Cloud-based POS systems are used to create seamless transactions for customers worldwide. Meanwhile, it also benefits business owners as it lets them access all the data no matter where they are. Cloud-based POS systems can be used from any device, including mobile phones and tablets.

• Other POS hardware

Depending on your business, you will need certain POS hardware to complete your POS system. POS hardware includes cash registers, barcode scanners, monitors, printers, credit card scanners, keyboards, etc. You can choose from a variety of hardware according to your budget. For example, you can choose whether you want a touchscreen monitor and a handheld scanner or a regular monitor with a keyboard.

Different Types of POS Systems

There are two main types of point of sales systems:

1. On-premise

These POS systems require the customer to be physically present while making a payment. The checkout counters at a supermarket are the best examples of on-premise POS systems.

2. Cloud-based

Cloud-based POS systems do not require the customer to be present while making a payment. These systems offer flexibility to the customer by giving them the option of contactless payment. Online e-commerce shops are the best examples of cloud-based POS systems.

Cloud-based POS systems are beneficial in a few more ways. They work well with most POS hardware, and they can be installed on any device, including a smartphone. They are also less expensive than on-premise POS systems. Most importantly, they offer you the flexibility of running a physical store and an online store simultaneously.

Apart from these main categories, there are other types of point of sale (POS) systems:

1. Retail POS

The retail POS software and hardware is used mainly by physical stores to sell products, manage inventory, and process payments. However, if you have an online store, you can easily extend this system to the online store as well. This system comes with a POS billing software as well as other software and hardware.

2. Mobile POS (mPOS)

An mPOS system is cloud-based and is very flexible. It can be used anywhere. Even physical stores can use mPOS for processing their transactions. It is a great option when you do not wish to spend too much money on a POS system or you need a system for a temporary set-up.

3. Multichannel POS

This cloud-based POS is very useful for multiple online channels. It consolidates all the purchases made from different channels and helps you keep track of them. For example, if you sell on Amazon and also through your website and other third-party e-commerce sites, this POS will help you track the transactions easily.

4. Open-source POS

This POS system uses open-source software to build a code particular to the business. You can customise it according to your needs. You will have to write code yourself or outsource it.

How to Choose the Correct POS System for Your Business?

The importance of POS system in retail is very high. A retail POS system can make or break your business depending on various factors. A good POS system can support you at every step while a bad one can cause innumerable difficulties.

The basic requirements for any POS system are:

• Process sales 
• Accept payments
• Include returns and exchanges
• Include discounts, credits redeeming, etc.
• Offer flexible payment, purchase, and delivery options
• Update inventory across all your stores in real-time
• Enable you to expand your business
• Good analytics
• Create accurate reports
• Allows access to customer order histories, loyalty programs, etc.
• Allow inclusion of new hardware seamlessly

Other than these core features, a good retail POS software should have:

• Integrated payment processing
• Inventory management across all channels
• Multiple store management
• Mobile checkout
• Apps
• Customer relationship management and support
• Different options for delivering orders
• Staff management

How to Identify If a POS System is Right for You?

Even if you manage to find a POS system that works for you well in the beginning stages, you need to look out for problems in the future. A restaurant POS software might seem suitable for a supermarket but after some time, it becomes too difficult to handle. A supermarket POS software is ultimately the best for a supermarket.

These are some of the problems you may face:

• Managing inventory is challenging

When you have a physical store as well as an online shop, it is necessary to include a POS system that will help you transition seamlessly between the two. It is the job of a good POS system to maintain the inventory and update it in real-time.

If your POS system is failing to update the inventory without manual intervention, it may be time for you to buy a new POS software.

• Customer dissatisfaction

If you have multiple stores, both physical and online, your POS must provide the same services to your customers at all places. If one store accepts credit cards and other doesn’t, or if a customer cannot redeem their gift cards at your online shop, they will be dissatisfied, and you may lose their patronage. 

If your POS system doesn’t allow you the flexibility of providing the same facilities across your stores, it is time to consider new software.

• Customisations are time-consuming and expensive

An open-source POS system allows you to customise the system according to your needs. For example, if you need to apply a discount on certain products before and during Diwali, your POS system must be able to reflect the changes easily.

However, if these customisations are difficult and require a lot of technical knowledge, they might not be useful to you. You must be able to do the customisations easily and they must be affordable as well.

• Managing your team becomes problematic

The staff of any retail outlet is its backbone. However, managing them is one of the most difficult tasks for a business owner. You must be able to assign them shifts and rotations according to their work. You also have to manage their attendance, salaries, leaves, and so on.

A POS system allows you to check the peaks and valleys of sales throughout a workday. This will allow you to assign staff to shifts appropriately. However, if your POS falls back on the statistics, it might be time to get a new POS system.

• The POS does not support certain forms of payment

Contactless payments are rapidly becoming the norm across the world. People are using cash and cards less than before and prefer to use contactless payment methods, especially after the Covid-19 outbreak. If your POS does not allow contactless payment, it might be time to change it.

• The POS cannot be used on other devices

Many people use their smartphones or tablets to make payments in recent times. All business owners must include the option of mobile payment at their checkout points.

However, if your POS is not compatible with smartphones and other devices, it becomes difficult for both you and your customers to process the transaction. You may have to get a POS system that supports other devices.

You can ask your friends and associates for recommendations for the best POS software. There are various review sites where you can check the reviews of each POS system as well. 

Even if a POS is good for one business, it does not mean it will be suitable for your business. You need to read case studies to decide how the POS will behave in certain circumstances.

Many POS providers offer a free trial period which you can use to decide whether the POS system works for you. Check whether you can upgrade or adjust it according to your needs. If a POS provider does not provide a free trial period, it might be a good idea to stay away.

Some providers insist on signing a contract so that you have to use their software for a certain period. This might become problematic if the POS doesn’t work for you. You can look for POS systems that do not have any contract period.

Conclusion

Whether you wish to open a physical store or an online shop or both, it is always good to have a proper POS system in place. It helps you keep track of your transactions and inventory without sweating over it. 

A POS system is your friend. It helps you expand your business, manage your staff, grow your clientele, and process transactions. Your retail presence is incomplete without a good POS system.

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Medical shops are an absolute necessity. Each person wants a medical shop near their homes and offices. Have you ever thought about how much income this field of business might generate? Pharmacies are always in business and hardly affected by economic turbulence. 

The healthcare and pharmaceutical industry has grown rapidly, bringing the need for more businesses. India ranks 3^rd in the world’s pharmaceutical production by volume. Global growth forecasters predict that the pharma industry in India will grow by a whopping 754% by 2060 

If you want to start a business that will bring in steady profits, starting a medical store is your best bet. This option is perfect for people with limited space and less capital.

However, starting a medical shop is just a step in the business. Running it is another ballgame. As you deal with sick people, you need to be responsible enough to give them the correct medication. A small error on your part might have big repercussions for the patients. Due to this, medical shop owners have to follow certain legal procedures and should have their documents in order.

Deciding the Type of Medical Store

Before proceeding with other formalities, you have to decide the type of medical shop you wish to own. There are different options available:

Hospital medical store

These shops are located inside a hospital complex and cater to the patients visiting the hospital.

Clinical medical store

These medical shops are present in hospitals and medical centres and aim at providing optimal quantities of drugs.

Standalone medical store

These medical shops are the most common ones and are often found in residential areas.

Franchise medical store

Franchise medical shops or chain pharmacies are usually present in malls or near hospitals, and they are a part of bigger pharma chains.

Township medical store

These medical shops are set up in a residential or commercial township, and they cater to the customers of the township.

Industrial medical store

These medical shops consist of the pharma industry and include pharmaceutical products’ research, production, marketing, etc..

Government premises medical store

These stores are set up in government-run hospitals and dispensaries and cater to the patients of those hospitals.

Consulting medical store

These stores are comparatively new, having started in 1990. They focus on the theoretical aspects of medicines rather than sales.

Regulatory medical store

They are also known as government medical shops and regulate safe drug use.

Homecare medical store

They are based at a patient’s home and are present to help critically ill homebound patients. They are also known as infusion pharmacies, as only injectable drugs are dispensed.

Mail order medical store and online medical store

They are newly emerging in India as many people are opting to order their prescribed medicines through online apps and websites.

Requirements for Starting a Medical Shop

Now that you have decided the type of medical shop you will start, here is a list of things you need to have in hand before you register for your shop:

Pharmacy licence

This is the primary and most important requirement. We will be discussing this point in detail later in this article, but here are the basics. The owner of a medical shop should be a qualified pharmacist; he needs to have a B. Pharm or M. Pharm degree. If the owner is not a pharmacist, he can employ a registered pharmacist.

Land registration

Next, proceed with land registration. The minimum requirement for a retail store is 10 square metres, and for a wholesale store, it is 15 square metres. You could also combine wholesale and retail in your medical shop.

If you rent a space, you need to have a rental agreement. If you are using your own land, you need to have the relevant ownership documents. If you are buying a shop, you need to have a sales deed. In any case, it would be better for you if you took legal aid to overcome any problems.

Medical shop registration

Every medical shop in India needs to be registered under the Indian Pharmacy Act 1948. Under this Act, you are required to submit all the necessary documents for the state government. If your application is complete and all the conditions are fulfilled, you will be registered under the Act.

While registering, you must also decide what type of company your store will be, whether a sole proprietorship or a partnership. In recent times, limited liability partnership (LLP) has been preferred by many people as it gives benefits to all partners. 

Business registration

Once you have decided the type of business you want to establish, you can register for it. The different types of companies are:

• Proprietorship
• Partnership
• One person company
• Private limited
• Limited liability partnership (LLP)

Establishment registration

Depending on the store’s location, you must get it registered with the local body (municipal corporation, municipality, etc.) and obtain their permission.

Tax registration

You must acquire a Goods and Service Tax (GST) registration if you plan to run any business in India. If your turnover exceeds INR 40 lakhs (or INR 20 lakhs for certain states), you must undergo this registration. You can check the limit for your state before proceeding.

Drug licence registration

This is one of the most important documents you need before starting a medical shop. Whether you plan to open a small store, a big one, a chain pharmacy, or one attached to a hospital, you need to have a drug licence. You can either obtain a retail drug licence (RDL) or a wholesale drug licence (WDL).

Licence Requirements for Starting a Medical Shop

You must obtain a drug licence to start a medical shop in India. Besides, you will need a pharmacy licence for selling medicines and a retail or wholesale medical shop licence. A retail drug licence is required if you have decided to open a general medical store, while a wholesale drug licence will allow you to sell drugs at wholesale rates.

You will also require a degree in Pharmacology (B. Pharm or M. Pharm) to obtain a pharmacy licence. However, if you do not have a degree, you may approach a pharmacist who can apply for the licence in return for payment.

All other staff you hire for the store should also be competent enough to sell medicines to customers. They can be

• A graduate who has one year of experience in selling drugs
• A registered pharmacist
• A person who has passed 10^th standard and has four years of experience in selling drugs

If you fulfil all the criteria mentioned above, you can get a pharmacy licence and a medical shop licence.

Applying for a Pharmacy Licence

A pharmacy licence is mandatory to start a medical shop in India. You can apply for a medical licence in India from the following organisations:

• Central Drugs Standard Control Organisation
• State Drugs Standard Control Organisation

You can fill out the application form along with a fee, and if you meet the eligibility criteria, you can obtain a pharmacy licence.

Documents Required for a Medical Shop Licence

Following is a list of documents that you will need for obtaining a medical shop licence:

• Application form (completely and correctly filled)
• Cover letter stating the intent of the applicant with signature
• Receipt for fees paid
• Declaration form filled by the applicant
• Plans and blueprint of the premises
• Proof of ownership of the premises, if it is rented
• Identity proof of the owners with passport-size photographs
• Proof of Constitution of Medical Store (Partnership deed, MOA, AOA, Incorporation Certificate, etc.)
• Proof of non-conviction of owners as per Drugs and Cosmetics Act 1940
• Affidavit of a registered pharmacist working full-time or a competent person
• Appointment letter of the pharmacist or the competent person, if they are employed

When you submit these documents, you can get your medical store license.

Additional Requirements for Obtaining a Drug Licence

Area specification

The shop area should be a minimum of 10 square metres for retail stores and 15 square metres for wholesale stores.

Storage facility

As several medicines need to be stored at low temperatures and most medications should not be exposed to heat, a medical shop must have a refrigerator and air conditioning for proper storage.

Technical staff

If there are any staff in your shop, there are certain rules you must follow:

• For wholesale stores, the staff must be registered pharmacists with one year of experience in drug sales or a person who has passed their 10^th standard and has at least four years of experience in drug sales.
• For retail shops, a registered pharmacist should be present when medicines are distributed during working hours.

Financing Your Medical Store

Finance plays a key part in starting any business. Starting a medical store is no different. However, it could be a huge task for someone with little capital.

The minimum requirement for a small medical shop would be around INR 15 to 20 lakhs. Once your business is settled, you can gradually expand the scale of your business.

There are two ways to source funds:

Owned funds

You can use your savings to start a medical shop on a small scale. This is a way of earning profits using a lesser capital. 

Owed funds

If you do not want to dip into your savings or you do not have enough funds, you can apply for a loan from banks and financial institutions, many of which offer loans on easy terms and at affordable interest rates.

Applying for a Loan to Start a Medical Shop

You will need the following documents for submitting a loan application for your medical store:

• Identity proof of the owner, partners, and directors, if any
• Proof of Indian citizenship and proof of residence
• Age proof (age must be between 25 to 66 years)
• Business registration proof
• Bank statements and Income Tax returns

Opening a Medical Shop in India and Running It Successfully

Starting a medical shop is just one step in your journey. If you want to reap profits from your medical store business, you must factor in a few points.

Location

Choosing a good location is integral to the success of your store. You must select a place that has enough population, but you must also check whether you have many competitors in the area. If there is a hospital or a clinic nearby, it could increase the footfall at your store.

Supplies

You can contact a pharma company or the local wholesaler for supplies. If you manage to get a direct supply from the company, it will increase your profit margins. However, if you have less capital or less space, it is better to approach a wholesaler.

Contacts

Building contacts within your fraternity can help your business tremendously. You can even form tie-ups with the nearest doctors so that they refer their patients to you.

Personnel

It is important to have skilled personnel to carry out sales at your store. However, there are some conditions that they need to fulfil before you can appoint them. Make sure you are completely sure of their experience before appointing them at your store.

Storage

Your medical store must have enough storage to stock medicines in proper conditions. If you can afford a refrigerator and air conditioner, you can significantly increase the number of medicines. Make sure you have well-maintained racks and cupboards to stock the supplies so that you can see them quickly.

Promotion

As with any business, a medical store needs promotion too. You can promote your medical store by distributing pamphlets in your area. You can offer discounts and free goodies to attract customers in the first few days. You can also add services like home delivery to increase your clientele.

Technology

Technology has made a significant change to every part of our lives, and running a medical store is no different. Technology can simplify tasks such as inventory, accounting, billing, etc. 

Prescription

This is an important part of running a medical store. Whether over-the-counter (OTC) or doctor prescribed, every medicine should be dispensed only with a proper prescription. It is mandatory for the owner or the salesperson to check the prescription properly or even consult the doctor before selling a medicine.

Starting an Online Medical Shop

People have started turning to online stores for their shopping needs. Online medical stores are new in the Indian market, but they are making significant progress. They are helpful for senior citizens and people who might find it difficult to visit a physical shop. They also offer good discounts in their prices.

Online medical shops do not have a set geographic location to serve their customers. However, in some cases, they can source lesser-known or hard-to-obtain medicines for their clients.

There are certain limitations while running an online medical shop. Sometimes, you have to refill drugs periodically without checking prescriptions. This may lead to issues for the patient.

To start an online medical store, you need to:

• Hire a qualified pharmacist
• Obtain Food and Drug Administration (FDA) and Food Safety and Standards Authority of India (FSSAI) licences
• Obtain licences from local bodies
• Tie up with local pharmacies
• Have an arrangement with courier companies
• Set up a proper website and app that allows the customers to order and pay smoothly
• Do digital marketing

Conclusion

The pharma industry is growing by leaps and bounds, and it makes sense to jump on the bandwagon. If you plan to start a medical store, you can go through proper legal and financial processes to make your dream come true. If you take the proper steps, your medical shop will prosper.

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The three types of industries are:

1. Primary industry
2. Secondary industry
3. Tertiary industry

Of course, there are quaternary and quinary sectors too, but we will stick to the three types of industries in this article.

A primary industry specialises in obtaining and purifying raw materials from the earth. These industries use natural resources such as trees, water, minerals, etc. Hence, they are dependent on the local produce. They are also involved in producing basic food items such as grains, vegetables, fruits, and fish. Some of the activities in a primary industry include farming, fishing, hunting, grazing, etc. Jobs in the primary industry are termed red-collar jobs.

A secondary industry gets the natural products from primary industries and processes them into usable and valuable products. The construction and manufacturing industries are two major secondary industries. For example, the textile industry uses cotton or wool to make clothing, the automobile industry uses steel, the paper industry uses wood, and so on. The workers in this sector are called blue-collar workers. Though secondary industries have always provided employment, the recent innovations in technology mean that more and more machines are taking the place of human labour.

A tertiary industry usually involves the production and exchange of services. This industry facilitates the movement of products produced by the secondary industries. Tertiary industries often provide services to consumers directly. Transportation, retail, hospitality, and communication are examples of tertiary industries. The workers in this industry are called white-collared workers. Many people are involved in this industry to ensure its smooth operation. Due to significant developments in this industry, the income levels of white-collar workers are typically high compared to other sectors.

This was the basic classification of the types of industries. Now, let us look at each of them in more detail.

Primary Industry

The primary industry is the most important industry of a country. It directly affects a country’s economy, and it is also directly dependent on a country’s natural wealth. The industry is involved with extracting natural resources and creating basic products that consumers or secondary industries can use. Therefore, the primary industry is heavily dependent on the raw materials and natural resources present around them such as vegetation, water, earth, minerals, oil, etc.

Agriculture, mining, forestry, oil and gas extraction, and fishing are the main primary industries. They cover a lot of processes, including grazing, damming, logging, hunting, trapping, farming, livestock management, and quarrying. 

In developing countries, primary industries are of much value compared to developed countries. For example, the primary industries in India are more crucial than in the USA. However, in some areas, whole regions have been built around a particular primary industry. For instance, some cities are developed around a mining industry. This is because the region solely depends on this industry for its survival and economy.

As we saw earlier, the workers in this sector are called red-collar workers. Farmers, miners, hunters, fishermen, etc., constitute this industry. 

Primary industries are further divided into two types:

1. Genetic industry

The genetic industry consists of all the processes that include developing raw materials by human effort. Agriculture, fisheries, livestock management, and forestry are genetic industries. The quality of such industries can be improved using scientific research and technology. They are a renewable source of raw materials and have the potential to provide employment.

2. Extractive industry

This type of primary industry consists of all the processes which involve extraction. Mining, quarrying, and oil extraction are extractive industries. The raw materials produced by this industry are limited, that is they cannot be renewed after the resource has been exhausted. For instance, a mine cannot generate coal once it is completely mined. Also, there is no way to improve the quality of the extract as they are naturally formed in the earth’s crust.

All over the world, primary industries are increasingly using technology for their processes. This results in unemployment for the red-collar workers. In some countries, where the population is high, this could lead to massive unemployment. 

Secondary industry

While the primary industries procure raw material directly from nature, secondary industries may be involved in three types of activities. They may – 1) obtain the raw materials from primary industries and convert them into usable goods, 2) obtain processed products from other secondary industries and process them further, or 3) make products used to produce consumer and non-consumer products. 

There are two main types of secondary industries – construction and manufacturing. Apart from these, industries that produce energy are also secondary industries. For example, the hydroelectric industry is a secondary industry as it primarily uses water as raw material to produce electricity.

Secondary industries often use machinery along with human labour to produce consumer goods with more precision and efficiency. Even in countries with lower populations, humans are employed for packaging, organising, inventory management, and so on.

Secondary industries are divided into two types:

1. Heavy industry

Heavy industry is often called large-scale industry as it requires a significant amount of capital investment in factories and machinery. These industries usually involve complex processes and require industrial organisation and high skilled labour. Therefore, the output of such industries also happens on a large scale. 

Some examples of heavy industries are steel and iron manufacturing, petroleum refinery, motor vehicle manufacturing, heavy machinery manufacturing, cement manufacturing, metal refinery, hydroelectric power generation, meat cleaning and packing, etc.

2. Light industry

The light industry is also known as the small-scale industry. It requires less investment in terms of factories, machinery, and labour. These types of industries typically require smaller quantities of raw material, less labour and smaller spaces and hence produce on a small scale. The workers involved in such industries may not be as skilled as those in heavy industries. 

Textile and clothing manufacturing, electronics and computer hardware manufacturing, plastic manufacturing, paper products manufacturing, food processing, craftworks, and gemstone cutting are some examples of light industries. 

Developed countries have a larger number of secondary industries. This is because their economy relies majorly on secondary industries rather than primary industries. Due to advanced technologies, even developing countries are catching up quickly in their production rates. 

Tertiary industry

A tertiary industry is typically involved in providing services. Hence, the tertiary industry is also called the service industry. These industries market a product and are involved in sales transactions with immediate consumers. They do not produce any goods themselves. Instead, they provide services that can improve society’s quality of living. These services include advice, care, safety, and access, among others.

Examples of the tertiary industry include banking, finance management, insurance, real estate, wholesale and retail, hospitality, transportation, communication services, legal services, repairing, tourism, entertainment, maintenance services, education, etc. In addition, other social services such as healthcare, security, police, defence, and administrative services are also included in tertiary industries.

The tertiary industry is classified into two categories:

1. Financial industry

These industries are involved in generating income. They mainly deal in money and precious items such as gold and gemstones. People using these services are often advised with ways to keep their money safe and also increase it. The financial companies share their experiences and motivate people to save more for a better life. Banking, insurance, financial services are a part of this category, but other services that take money for a specific service also can be classified here.

2. Non-financial industry

These typically include services that make no profit while rendering their services. Government-owned hospitals, police, administrative services, and public schools are the main examples of this category. Most of the services involved in this category are provided by the government and are ultimately funded by the taxpayer.

In the present economy, the tertiary industry generates the maximum revenue. Many of these industries provide tailor-made solutions to a consumer. They also continually improve or change based on customer feedback. This, in turn, enhances the quality of the customer’s life.

FAQs on types of industries

Which industry is the most important of all the three?

The primary industry is the most important for developing a country. The natural resources and the ability to farm them for use decide a country’s economy. However, once the basic start is given, all three types of industries are equally important.

What are the major differences between the primary and secondary industries?

The primary industry is involved in producing and extracting raw materials from nature. These products can be used directly(e.g., basic foods) or sent for further processing.

The secondary industry sources the products produced or retrieved by the primary industry and processes them to make consumer and non-consumer goods. Examples are the automobile industry using steel to make cars or the textile industry using cotton to make fabric.

How are all the three industries – primary, secondary, and tertiary industries interdependent?

The primary industry produces or extracts raw materials from nature. Agriculture, fishing, forestry, and mining come under the primary industry. The secondary industry uses these raw materials and makes consumer goods. The tertiary industry involves in transportation, retail, and marketing of the goods produced by both primary and secondary sectors.

Thus, all three industries are heavily interdependent and can operate seamlessly only if they work in tandem.

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Any business created by the agricultural sector directly or indirectly comes under the agro based industry. Hence, the agro based sector is very vital to the Indian economy. 

In this article, we’re going to look at what agro based industries are, what products come under them, the different types of agro based industries, their importance and finally, how one can start a business in the agro based sector. 

What is Agro Based Industries

Industries with their base and raw material from agricultural products are known as Agro based industries. Agro based industries process, cultivate, or manufacture products either for the intermediary or final markets. For example, the intermediary market could be making yarn out of cotton to make the final product of textile or cloth. The final product market could be milk from the cattle used for direct human consumption. 

The agro based industries range from fruits, vegetables and grains that are grown by the farmers in the field to secondary products of agriculture such as sugar that is made from sugar cane, vegetable or sunflower oil made from agricultural produce, leather that is made from cattle, the paper that is made from the trees and so on. 

Examples of Agro Based Industries in India

Since agricultural activities have seeped at the grassroots levels all over India, agro based industries are seen in every town, every city and state in different forms of businesses and industries. The wide array of agro based industries includes sugar, oil, textile, and leather. However, the most significant agro based sector is the food sector and the products manufactured via agricultural activities. 

Some of the prominent types of agro based industries in India are: 

Textile Industry 

The textile industry is the biggest agro based industry in India. Everything comes under the textile industry, from collecting the raw material for the textile to making yarns, dying the yarns, making the cloth, and eventually the final product, garments or other textile material. Because of the vast supply chain of this industry, it is one of the most significant contributors to the agro based industry.

Sugar Industry 

The use of sugar goes above and beyond just for food. Its by-products are used to produce chemicals and even for alcohol components. To say that the sugar industry is one of the highest contributors to the GDP is an understatement.

India is a large production house of sugarcane because of the favourable weather conditions. As a result, it is the second-largest producer and exporter of sugar globally. Because of this, the sugar industry is one of the significant contributors to the import-export sector of the country. 

Vegetable Oil Industry

India produces 5% of the world’s vegetable oil. It is also one of the largest consumers of edible oils globally. With the demand for vegetable oil just increasing over the years, India is one of the few countries that can match the demand and ensure the vegetable oil sector in India is doing well.  

Tea Industry 

India, specifically the northeast, has favourable conditions to grow tea. Because of this, India is a significant producer of tea and a very big exporter of tea. Growing and cultivating tea is a skill that a few local Indians have understood, giving us an edge over the rest of the world. The tea production ranges right from the everyday chai to green tea, jasmine tea and chamomile tea. This increases employment and diversification in the tea industry.

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Importance of Agro based industries in India 

• The agro based industries employ individuals and help carry forward the family business.
• They help increase and enhance the productivity of industrial production
• Allow the rural parts of India to shine and make an economy for themselves 
• Ensure the development of the rural parts of India through diversification 
• Diversify the industries apart from agriculture 
• Improve the standard of living for overall individuals throughout India 
• Increase our import-export production, making Indian products globally available 

Lately, the contribution from agriculture and the other sectors have reduced to lesser demand. 

Nonetheless, the Indian government is boosting the agro based industries in India. The government is introducing reforms and concessions in many agro based sectors to increase participation and ensure these industries are carried forward. This way we are not only enhancing the working population of the country but also ensuring that agriculture and agro based industries are a great contributor to the GDP and the Import-Export of the country. 

How to start a Agro Based Industries? 

While it is not extremely easy to start a business in this sector, nor is it difficult or impossible to start a business either. With the right amount of research, business knowledge and understanding of the market, you will get your business up and running. Some of the few things to keep in mind to start a business in the agro based industry are: 

• Market Research 

Understand what products are already available in the market, how the market is responding to those products. Are there any products missing from the market that you can fill a gap and what is the new factor you can include in your product? Always do a fair amount of market research before you decide to start a business or a product. 

• Business Plan 

You need a business plan once you have finished the market research and decided on the agro product. First, you need to figure out if you will be buying the land to conduct the business or renting it out. Next, where will you secure your raw materials, and who will your suppliers be? Apart from that, you also need to make a one year, 3-year and 5-year financial projection and understand when your business will profit. All of these components are part of the business plan. 

• Capital, Registration and Final arrangements 

The final step in the process is to find the sources of capital. Is it going to be a loan or are you looking for investors or from the family business? Once you have the money arranged, you can go into the final steps of registering the business, making business cards, a website and putting the word out. The final arrangements need to be done on a test run, having a few employees on board and ensuring everything else is in place, such as the legal requirements and law, are in place. You are then good to kick off your business. 

Of course, this is a very basic and nuanced way to start a business in the agro based industry, but it is a good kick-off to get the ball rolling. 

Conclusion 

The agro based industry in India is thriving and full of hope. With the increase in startups and vocal for local products, individuals can start a business in the agro based sector with support in some way or the other. Given the favourable weather conditions in India for agricultural purposes, we should make the most of it and create businesses that revolve around agro based industries for our growth and development. 

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Budget 2023 for MSMEs

Relief for MSMEs – Vivad se Vishwas I

To provide relief to MSMEs that have failed to execute contracts during the COVID period, the government has decided to return 95% of the forfeited amount related to bid or performance security. Accordingly, the MSMEs will receive the amount directly from the government or government undertakings. 

E-commerce for Micro Enterprises

It has been proposed that section 10 and section 122 of the CGST Act will be amended to enable unregistered suppliers and composition taxpayers to make intra-state supply of goods through ECommerce Operators (ECOs), subject to certain conditions. 

PM Matsya Sampada Yojana

To encourage fisheries, the budget has proposed a new sub-scheme with an investment of INR 6,000 crore. This will help fish vendors, fishermen, and micro & small enterprises involved in fisheries. It further improves value chain efficiencies and expands the market. 

Entity DigiLocker

The government will set up an Entity DigiLocker for MSMEs, charitable trusts, and large businesses. The DigiLocker allows them to store documents online securely and share them with various authorities, business entities, regulators, and banks, whenever necessary. 

Credit Guarantee for MSMEs

As proposed in the previous budget, the credit guarantee scheme for MSMEs will be revamped during this fiscal. The updated scheme will come into effect from 1st April 2023. The scheme infuses INR 9,000 crores in the corpus enabling an additional collateral-free credit of INR 2 lakh crores. The cost of credit is also reduced by about 1%. 

Presumptive Taxation for MSMEs 

MSMEs with turnover up to INR 2 crores can avail the benefit of presumptive taxation. The current budget proposes to provide enhanced limits of Rs.3 crore to MSMEs. To further support the timely receipt of payments, it allows the deduction for expenditure incurred on payments made to them only when payment is actually made. 

Budget 2023-24 for Start-Ups

• Agriculture Accelerator Fund

To encourage agristartups by young entrepreneurs in rural areas, an Agriculture accelerator fund has been proposed. It will encourage the development of innovative and affordable solutions to address the challenges faced by farmers and modern technologies to transform agricultural practices to increase productivity and profitability. 

• Extended Date of Incorporation

The date of incorporation for start-ups extended from 31st March 2023 to 31st March 2024 to provide income tax benefits. Further, carry forward of losses on change of shareholding has been extended from 7 years of incorporating the start up to 10 years. 

Revision of Customs Duty on Certain Goods

To promote exports, boost domestic manufacturing, enhance domestic value addition, and encourage green energy, the budget 2023-24 proposes the revision of indirect taxes as below. 

• The number of basic customs duty rates on certain goods has been reduced to 13 from 21. This will affect the custom duty, cess, and surcharge on toys, automobiles, bicycles, and naphtha, to mention a few. 
• Excise duty on compressed bio gas contained in blended compressed natural gas is exempted.
• Customs duty is exempted on import of capital goods and machinery used in the manufacture of lithium-ion cells for electric vehicle batteries.
• Customs duty on import of parts of mobile phones like camera lens has been reduced. 
• Customs duty on certain parts of open cells of TV panels decreased to 2.5%. 
• Customs duty on electric kitchen chimney increased from 7.5% to 15%
• Basic customs duty on denatured ethyl alcohol has been exempted.
• Basic customs duty on acid grade fluorspar has been reduced to 2.5% from 5%. And on  crude glycerin it has been reduced to 2.5% from 7%.
• Customs duty on key inputs for domestic manufacturing of shrimp feed has been reduced.

Budget 2022 Highlights: for SMEs and MSMEs

Budget 2022 For MSMEs – More Credit Availability, Focus on Skill Improvement

• MSMEs, UDYAM, e-Shram, NSS, ASEEM websites will be interlinked. They now cover live organic data providing G2C, B2C, and B2B services. 
• The services provided by the websites will be related to credit facilitation, skilling and recruitment with an aim to further formalise and enhance entrepreneurial opportunities for all.
• The Emergency Credit Line Guarantee Scheme (ECLGS) has provided additional credit to more than 130 lakh MSMEs to mitigate the adverse impact of the pandemic. 
• Considering some MSMEs, like hospitality and related services, that are yet to regain their pre-pandemic level of business, the ECG and ECLGS will be extended up to March 2023. Its cover will be expanded by INR 50,000 Cr to a total cover of INR 5 lakh Cr. The additional amount will be reserved exclusively for hospitality and related services sectors. 
• The Credit Guarantee Trust for MSMEs, the CGTMSME scheme, will be funded with the required amount to facilitate additional credit of INR 2 lakh Cr for MSMEs and to expand employment opportunities.
• The Racing and Accelerating MSME Performance, RAMP program, with an outlay of INR 6,000 Cr over 5 years will be rolled out to help the MSME sector to become more efficient, competitive and resilient. 
• Skill improvement programs in partnership with industry will be reoriented to promote continuous skilling avenues, sustainability and employability. The national skill qualification framework will be aligned with dynamic industry needs. 

Logistics and Infrastructure Development to Support SMBs and MSMEs

• PM Gati Shakthi Master Plan is a transformative approach for economic growth and development. It is driven by 7 engines
  • Roads
  • Railways
  • Airports
  • Ports
  • Mass transport
  • Waterways and 
  • Logistics infrastructure

Development projects of all these engines will be announced soon and the same will lead to huge employment and entrepreneur opportunities for all, especially for youth.

The scope of the master plan will also provide economic transformation, seamless multimodal transport and logistics efficiency. 

• Railways will develop new products and efficient logistics services for small and medium enterprises (SMEs) and small farmers. 
• Besides taking the lead in the integration of postal and railways networks to provide seamless solutions for the movement of parcels. 
• ‘One Station, One Product’ concept will be popularised to help local businesses and supply chains.
• In the next 3 years, 100 PM Gati Shakthi cargo terminals for multimodal logistics facilities will be developed.

Incentives for Start-ups

• Eligible start-ups established before 31st March 2022 had been provided with a tax incentive for 3 consecutive years out of the 10 years from incorporation. In view of the pandemic, the period of incorporation of the eligible start-ups is extended by one more year up to 31st March 2023 to provide such tax incentives. 

Incentives for Newly Established Manufacturing Companies

• To establish a globally competitive business environment for certain domestic companies, a concessional tax regime of 15% was introduced for newly established domestic manufacturing companies. The current budget extends the last date for commencement of manufacturing or production by one more year i.e., from 31st March 2023 to 31st March 2024.

Customs Duty Reduction for MSMEs, Electronics, Gems, and Chemicals

• For MSMSes
  • Customs duty on umbrellas has been increased to 20%, while the exemption to parts of umbrellas is being withdrawn
  • Duty exemption has been rationalised on agricultural tools manufactured in India
  • Duty exemption given to steel scrap has been extended for another year to provide relief to MSMEs secondary steel producers. 
  • Certain anti-dumping and CBD on stainless steel and coated steel flat products, bars of alloy steel has been revoked considering prevailing high prices of metals. 
  • To incentivise exports, exemptions are provided on items such as embellishment, trimmings, fasteners, buttons, zipper, lining material, specified leather, furniture fittings and packaging boxes, that may be needed by bonafide exporters of handicrafts, textiles, leather garments, leather footwear, and other goods. 

• Electronics: To facilitate domestic manufacturing of high growth electronic items like wearable devices, hearing devices, and electronic smart meters, customs duty concessions are given to parts of transformers of mobile chargers and camera lenses of mobile camera modules and certain other such items. 

• Gems and jewellery: Customs duty on cut and polished diamonds and gemstones is reduced to 5%. Simply sawn diamond would attract no customs duty. By June 2022 a simplified regulatory framework shall be implemented to facilitate the export of jewellery through online portals.

To dis-incentivise the import of undervalued imitation jewellery, the customs duty of at least INR 400 per kg is imposed on its import.

• Chemicals: Customs duty on certain critical chemicals like methanol, acetic acid, heavy pet stocks for petroleum refining are being reduced. On the other hand, customs duty on sodium cyanide has been raised as the chemics has adequate capacity in the domestic market.

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You could be perplexed as to what this business endeavour entails. Kirana shops are the lifeline of each Indian community and one of the few businesses where a fancy Master’s degree from a famous university is not required. Even though a Kirana store does not have a specific target audience, competition is generally severe due to its enormous market presence. 

What is a departmental store?

Kirana shops are department stores in Indian communities that act as a hub for residents to purchase food and other needs. Establishing a Kirana business is a simple process that requires no special skills or knowledge. Anyone with sufficient funds can start their own Kirana store and sell anything.

Additionally, because Kirana stores provide basic products for nearly every family, income creation is virtually guaranteed, despite the presence of local competition. A Kirana shop is a department store in India that doubles as a community store. Rice, wheat, veggies, spices, shampoos, and other everyday household items are available. The size of the company is decided by the capital invested; it might be a little shop selling daily rations or a mini-mart where customers select their own items.

How much investment is required to start a departmental store in India?

A department store with an average floor space of 2000 square feet earns a daily profit of approximately 3000 rupees, with a profit margin of around 7% on sales of around INR 40,000, according to data. This adds up to INR 60,000 to INR 90,000 in monthly profits over time. A firm like this requires an initial investment of 10 to 30 lakh rupees. Joining an established department store franchise in India costs approximately 20 lakhs for a 1000sq.ft basic shop, or even less than the previously mentioned 10 lakh investment if the firm is spaced under a 500sq.ft area coverage.

Steps involved to start a departmental store Kirana shop

A step-by-step approach to opening a successful Kirana store in India may be found here:

1. A well-thought-out company plan

No firm can thrive for an extended period of time without a well-thought-out business strategy. To properly price their products, one must first determine their target market and the average income in the area they serve. Additionally, you’ll need to determine how many employees you’ll require for shipping, packing, and other areas of your company.

2.  Locating the location

To begin your Kirana Company, you must first pick an appropriate site. One should select an ideal location that is both freely accessible to the general public and secure. Additionally, you should search for a location with little competition and great exposure for your business. This is a very important factor that you must consider.

3. Financial Investment Requirement

Consider the costs of commodities, employees, suppliers, and upkeep before making an investment decision. The financial requirements vary according to whether you want to open a small business or acquire a franchise.

4. Registration and licensing

Upon determining the size and scope of your business, you may proceed to complete the necessary legal papers. A Kirana shop requires the following registrations:

• Shops and Establishments Registration
• A license to sell food is necessary.
• Entity Registration.
• GST (Gross Domestic Product and Services Tax) (optional).

If the annual income of your Kirana business exceeds Rs. 20 lakhs, you must register for GST and obtain a GSTIN, or 15-digit unique identification identifier.

5. Inventories

Decide what products and brands you want to sell before you start managing your inventory. By visiting your neighbourhood department store, you may view the best-selling goods. You may purchase through a distributor or directly from the wholesaler, which may be more expensive. Additionally, you may keep track of your goods with online accounting software for businesses. This simplifies the process of integrating digital receipts and payments far more than it would be if done manually.

6. Choosing the Most Appropriate Vendor

After deciding on the things to offer, select the appropriate vendor based on specified criteria. You want a provider who can deliver high-quality products on schedule. Your inventory should ideally last 2-4 weeks. Additionally, you may appeal to a niche segment of consumers by selling seasonal goods in addition to in-demand items. Dairy and fast-moving consumer goods (FMCG) items such as soaps, detergents, and cosmetics offer large profit margins; however, caution is required with dairy products, and the first-in, first-out rule must be followed.

7. Do your homework for your competition.

Visit adjacent department shops or supermarkets to get a sense of the operations and management style. Make mental notes on the store’s layout and the brands that are most usually available. Look for fresh chances and ideas.

8. Additional services

People like being handled with respect, even more so if they intend to purchase at a certain store regularly. You may choose to examine how you may set yourself apart from neighbouring competitors, from home delivery services to a beautifully constructed shop. Investigate the activities of other Kirana locations in the vicinity, recognize a chance, and grasp it with both hands.

9. Additional services

People like being handled with respect, even more so if they intend to purchase at a certain store regularly. You may choose to examine how you may set yourself apart from neighbouring competitors, from home delivery services to a beautifully constructed shop. Investigate the activities of other Kirana locations in the vicinity, recognize a chance, and grasp it with both hands.

FAQs related to departmental store/ Kirana shop

1. Is Kirana’s business profitable?

Yes, the Kirana store business is profitable in the long term. Starting on a smaller market will give you a chance to experience market conditions and limit your chances of failure which will help you in identifying different ways to enhance your profit. 

2. How do Kirana stores operate?

• Inventories for Kirana stores are purchased on credit, sold later, and repaid to the distributor when profit margins are known. 

• Wholesalers and retailers purchase and sell commodities on a week-to-week credit basis, whereas huge conglomerates do not.

3. In India, how many Kirana stores are there?

According to different records and estimates, there are approximately 12 million Kirana shops in India. It is one of India’s most profitable enterprises.

4. What is the most effective method for starting an online Kirana store?

Due to the numerous steps involved in the beginning and operating an internet business, it is preferable to go digital rather than deal with eCommerce sites. You will be able to find free apps or departmental store software that enable you to take your business online. This will help in enabling the following tasks easily without much effort.

• Create a catalogue.
• WhatsApp may be used to transfer images and data.
• Notify customers of upcoming payments and reminders.
• Maintain daily records of your sales.
• Utilize a user-friendly user interface.
• You will love the convenience of the various language selections.

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A partnership deed is a legal document in a written format called the partnership deed format that contains an agreement between two persons who want to undertake business together and share the profit and losses when registering a business as a partnership firm.

You can also call it a partnership agreement. In this, two persons agree to share profits and losses in a defined manner to begin a new business and sign and stamp the document.

What is present in the Partnership Deed

The importance of partnership deeds comes into notice as it:

• Defines the terms and conditions of partnership among the partners
• Eliminates any possible litigation and disputes among the partners
• Offers guidelines for all future business activities 
• Helps streamline the needs among its partners regarding the different policies governing their partnership

Contents of the Partnership Deed

The contents of the partnership deed are placed in a partnership deed format as listed below:

1. Name of the partnership firm 
2. Period of partnership
3. Nature of business of the firm 
4. Capital contribution
5. Partner’s drawings from the company
6. Salary and commission
7. Profit/loss sharing
8. Accounts and audit
9. Loan of the partner
10. Obligations of the partners, including the duties
11. Start date, end date/demise date of the partner

Partnership Deed Registration Process

As per the Indian Partnership Act 1932, the partnership deed registration has no time limit meaning you can register a company on the date of its incorporation or any date after duly paying the fees and penalty (if any). 

The stepwise process for the registration is listed below.

Application to the Registrar of Firms in Form A

This provision is also available online. The application should include the following data according to the partnership deed format :

1. Name and address of all partners
2. Name of the partnership firm
3. Duration of the partnership
4. Location of business 
5. Date of partner’s joining
6. Duration of the partnership
7. Date of business commencement

Filing the Copy

The partners should sign the agreement, including a list of all the rules and regulations. Later they should register it with the registrar.

Payment

Make payment for stamp duties and other essential fees.

Incorporation Certificate Collection

Once the registrar approves the application and enters the company name into the records, the partners can collect the incorporation certificate and claim that their company is legally authorised. 

How do you write a partnership deed?

A partnership deed  includes the following information according to the partnership deed format:

1. Name and address of the firm and partners.
2. Nature of business carried out by the firm.
3. Date of commencement of business.
4. The Partnership Duration 
5. Capital contribution by each partner.
6. Profit sharing ratio among partners.

What are the benefits of a partnership deed?

A partnership deed can help with: 

1. The regulation of the partners’ liabilities, rights, and duties.
2. Misunderstandings avoidance between partners by outlining all terms and conditions in advance.

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