PROMOTION STAGE
Promotion of a business simply refers to all those activities that are required to be undertaken to establish a new business unit for manufacturing or distribution of any product or provide any service to the people. It starts with conceiving an idea of business or discover an opportunity for doing a business, assess its feasibility and then take the necessary steps to launch the business unit. This involves ascertaining as to whether all the basic requirements such as land, building, raw material, machine, equipments etc. are available or not. If they are available one can assemble them, arrange the necessary funds and set up the business unit to give shape to the initial idea of establishing the business. The whole process is called business ‘promotion’ and the person who does it is called the ‘promoter’. Before knowing the various stages of promotion of a joint stock company let us discuss about the role and importance of promoters.
ROLE AND IMPORTANCE OF PROMOTER:
A promoter can be defined as a person or group of persons who conceive the idea of setting up a new business, assess its feasibility and take necessary steps to arrange the basic requirements and establish a business unit say, a Company and put into operation. Promoter plays a pivotal role in the promotion of a company. He conceives the idea of business enterprise, analyses its prospects, works out a tentative scheme of organisation, brings together the requisite men, material, machines and money and starts the enterprise.
STEPS INVOLVED IN THE PROMOTION OF THE COMPANY:
1.Discovery of a business idea
2. Investigation and Verification
3. AssemblinG
4. Financing the Proposition