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Make a careful analysis of the product or service you are choosing, sometimes in short run, there is a shortage of a particular commodity in the market, you may even come to know you will get almost two weeks in advance to supply fresh stock. Does that mean you can jump into that business. First thing in such a condition is to analyse the situation. Keep in mind that shortages may occur due to a number of reasons and a good entrepreneur always examine the pros and cons before setting up a business. It may tempt you to think that perhaps you have found a good businesses idea. But do not be easily influenced by these temporary shortages. Carefully analyse the future demand-supply position of the product, say for the next 3 to 5 years. Only when you are certain that the shortage will remain there for considerable period of time and you would be able to generate enough profits in the very first or second year of operation and that you can produce quality item within an acceptable pricing, then only you should venture into such a business. 

There are many organizations which are in possession of information on business opportunities, you can contact these organisations to get an idea about product. 

1. District Industry Centres 
2. Technical Consultancy Organizations 
3. Centres for Entrepreneurship Development 
4. Small Industry Service Institutes 
5. Lead Bank 
6. Industrial Extensions Bureaus (These exist in several states) They are known by such names as iNDEXTb, Udyog Mitra, Udyog Sahayk and so on). 
7. National Industrial Development Corporation, New Delhi 
8. Khadi and Village Industries Commission, New Delhi 
9. Commissioner of Cottage Industries 
10. Entrepreneurship Development Institute of India, Ahmedabad 
11. National Institute of Entrepreneurship and Small Business Development, New Delhi 
12. National Institute of Small Industry Extension and Training, Hyderabad 
13. Small Industries Development Bank of India, Lucknow. 

This information could be in the form of: 

• Project profiles 
• Feasibility studies 
• Industry studies 
• Area development studies. 

Industry-Specific Agencies 

For a given industry, there are in organizations which undertake monitoring, research, market - development, export promotion or such other work. 

In a project conceptualisation stage while making a product choice following factors related to the product needs to be considered: 

• Easy availability of raw-material 
• Process Technology 
• Easy accessibility in the market 
• Incentive and support from Government 
• Product Line - Depth, Width 
• Market information
• Packaging 
• Branding 
• Warranties 
• After Sales Service 

Another point to keep in mind while deciding about products is to avoid the Products, which are likely to have a number of players in the market. Some such products in the recent past have been, plastic footwear, audio cassettes, disposable gloves and bulk drugs. In case the entrepreneur is looking for a product which has export potential, s(he) should consider the following additional questions : 

• What should be the contents of export-product portfolio ?   
• What are the special requirements for packaging if one has to export the products ?   
• What product adaptations are needed to be made for exporting a product to a specific country? Does it meet the product's quality specification of the country concerned?

The development of export-product portfolio can be done by considering 4 parameters viz.

• External demand conditions   
• Internal supply capability   
• Complexity of Marketing Tasks   
• Amount of investment required to penetrate the market   

Analysis can be conducted using this four dimensional model. The choice should be a product which scores a high rating on first two parameters and low rating on last two parameters. 

EXIM (Export Import Bank of India) Bank has also developed an excellent model to conduct the export-product portfolio analysis based on three parameters viz. 

• Supply Capability in product group  
• Domestic environment    
• Export market attractiveness   

This analysis gives rise to product groups with high potential or low potential. Some high potential areas are: 

• Leather Garments   
• Yarns and Thread    
• Apparel - Woven and Knitted   
• B & W TV Sets 
• Costume Jewellery    

With regard to special packaging requirements one has to be careful about laws of the country one is exporting to. Product adaptations for country's specific needs look into things like whether voltage supply is 220 V or 110 V for electric appliances and for automobiles whether left-hand drive or right-hand drive is appropriate. 

Products for Small Scale Unit 
In India products have been Reserved for exclusive manufacture in the SSI Sector for promoting this sector. Currently the investment limit for items to be manufactured in SSI is 1 crore. At present 812 items are reserved for manufacture in this sector. This Policy got a legal backing when the I (D&R) Act was amended in March, 1984 empowering the Government to reserve items under this Act. This Act also provided for the Constitution of an Advisory Committee headed by Secretary (SSI & ARI). 

Criteria For Reservation 
The overwhelming consideration for reservation of an item is its suitability and feasibility for being made in the small scale sector without compromising quality aspects.