Let’s Discuss Various Phases of Promotion in a Business Enterprise
“The overall structure of business promotion has been found to be almost same all over the world. Basically, four phases are involved in it.”
A business enterprise basically goes through four phases of business promotion. There may be some variations but the overall structure of business promotion has been found to be same all over the world.The first phase is marked by the discovery of an idea. A person visualizes that there are opportunities for a particular type of business and that it can be run advantageously.
The idea may be to take advantage of a new area of natural resources or to further develop other more profitable ventures in an existing line of business. The promoter develops this idea with the help of technological experts in that field. If they are certain that profitable avenues are available in that line of business, the idea is taken forward for more in-depth scrutiny.
In the second phase various factors relating to that business are studied from a realistic point of view. The promoters guess total demand for the product. There may be certain concerns already in that type of business, so different promoters naturally determine their share of demand.
After determining the prospective demand for goods the promoters think of arranging finances for the business enterprise. The likely sources of finance are discussed thoroughly and detailed plans are chalked out.
After making sure that the proposal is sensible and lucrative, the promoter proceeds to assemble the necessities. He persuades some new persons to join hands with him by becoming directors or founder members.
If he has invented something novel, he should get it registered in his name. He may also acquire some exclusive rights for that invention. Then, the promoter selects the factor site, decides about plant and machinery and contacts suppliers or raw material providers. The promoter also decides about the capital structure of the business.
The requirements of finances are estimated first. Then the sources from which the money is to come are determined. Various questions like the amount of capital to be issued, nature of loans, debentures, shares etc. are deliberated upon and a conclusion is reached upon.
It has been seen that commercial banks are helpful only in financing working capital requirements of the financial institutions for a longer period of time and not otherwise. Such kind of practicalities are also thought about and incorporated into plans.
Author - DeeKay
This article was created by DailyOjo staff. Report Spam/Abuse