Process of business promotion begins with conception of an idea of business opportunity.
Idea may come from non-availability of any product to satisfy the existing need of people.
During early 1940’s there was no “Walkman”.
This idea gave birth to the new product “Walkman”.
Once the idea has been conceived, then investigation is made to establish the soundness of the proposition.
If technology is available but the cost involved in making a “Walkman” would be so high that no customer could be able to purchase it.
Investigation on technical feasibility, commercial viability and profitability are presented in a report called “project report” or “feasibility report”.
Report helps in procuring licenses and arrange the necessary finance from financial institutions and other investors
The next step is assembling or making arrangements for all the necessary requirements.
It includes land, building, machinery, tools, capital, etc.
Decision is also to be made regarding size, location and layout etc.
Also make agreement with bankers to finance and take initial steps for the setting up of a Company.
Proportion of capital to be raised from owner’s fund, that borrowing from banks and others.
How and when to raise the share capital from the general public.
Agreements are made with merchant bankers, underwriters and stock brokers.
These are to assist the capital issue and so on.