Meaning and Definition of Promotion


The word promotion includes all those activities, which are completed from the creation of a business idea to its inception. In simple words, enforcement includes the actions taken to establish a business unit with the aim of discovering business opportunities and making profit from them. s. According to Mead (E. S. Mead), “Enforcement consists of four elements—discovery, investigation, aggregation and finance”. According to Guttenberg (C. W. Gerstenberg), “Enforcement refers to the pursuit of business opportunities, capital for profit, the organization of wealth and managerial art into a business unit.” According to Guthmann and Dougal, “Enforcement begins with the origin of the idea from which a business is developed and until that business is ready to begin its work as a running organization”. If done, the work of enforcement goes on.”

Promotion

According to H. E. Hoagland, “Enforcement is the process of forming a specific business enterprise. Enforcement is the sum of all those actions that take part in such creation.” Thus it is clear that enforcement is such a process in which the functions of setting up an enterprise, exploring opportunities, examining the environment, gathering resources, arranging finance, completing legal proceedings, etc. are involved in enforcement.

Meaning and Definition of Promoter


Promoter or Entrepreneur is the courageous person who lays the foundation of the company or business after seeing the profit opportunities in any new idea and after doing the necessary investigations, collects the business elements and gives a concrete shape to a definite plan.

According to Guthmann and Dougal, “A promoter is a person who integrates money and equipment into a running entity.”

C. W. According to Guttenberg (C. W. Gerstenberg), “A person who does work related to enforcement is called a promoter.”

It is thus clear that a person or entrepreneur or adventurer who performs various tasks related to promotion is called a promoter.

Characteristics of Promotion


The main features of enforcement can be explained as follows:

(1) Enforcement means the establishment of a particular business undertaking. Therefore, it is the primary and basic step in the formation of the enterprise.

(2) Promotion begins with the search for ideas or opportunities for the establishment of an undertaking.

(3) The person or group of persons in whom the idea related to enforcement is originated is called originator.

(4) Market survey, prospective consumers, trade fairs, government, development of other countries etc. can be helpful in the search for ideas related to the establishment of a business enterprise.

(5) Production, employment and income are generated as a result of promotion of any undertaking or industry.

(6) Under enforcement, the economic, social, geographical, political and international environment is thoroughly investigated by the adventurer or promoter.

(7) Under enforcement, arrangements are made to collect various resources like land, building, machinery, material, manpower, water etc. for the undertaking by obtaining various information.

(8) In operation, necessary finance is arranged keeping in view the need of the undertaking.

(9) Enforcement helps in rapid development of society and nation.

(10) In order to build a new venture under the enforcement, the adventurer has to complete many tasks keeping in mind various important factors. Such as searching for a business venture, investigating or investigating the business environment, gathering information and making adequate financial arrangements to collect the various resources required for the enterprise.

Functions of a Venture Promoter

What tasks a bold promoter has to accomplish, are to be established by him.

Depends on the nature of the business involved, the scientific management and the circumstances at which

Business is promoted. That is why the scope of work of courageous promoters is very wide. normal by

The following tasks are generally done-

(1) To consider the creation of the business and make efforts to complete it.

(2) To establish contact with experts for necessary advice.

(3) To determine the name, object of business or company.

(4) To determine the capital for the business and, if necessary, arrange for the underwriting of the capital.

(5) Negotiating for the purchase of business in the direction of the company formed to buy the current business and taking advice of experts in that regard.

(6) To make necessary arrangements for the registration of the business.

(7) To take action for the execution of preliminary contracts.

(8) To arrange for the banker of the business.

(9) To appoint auditor and legal advisor.

(10) To arrange for minimum subscription.

Stages of Promotion


For the establishment and start of any new business or unit, many actions have to be taken and various decisions have to be taken from the search for business opportunities to the start of production. All these activities of starting a business can be divided into the following steps from the point of view of convenience.

Stages of promotion

(I) Discovery of Business Ideas

To establish a business enterprise, first of all the entrepreneur should clarify the motives of the business. After this, the entrepreneur searches the business idea and checks its profitability and on the basis of this decides to establish the enterprise. In this the following are included.

(i) Why to start an enterprise- First of all, the entrepreneur has to decide why he wants to start the enterprise, for example, to get respect in the society, to earn more money to get self-satisfaction, to serve the society, An entrepreneur can start a business for reasons like making the country self-reliant, or to achieve innovation achievements.

(ii) Creative business idea – Creative idea is required to start any business venture. Ideas are the basis of business activities. An enterprise can be established only on the basis of team idea. There can be many types of creative business ideas, such as making the object more useful by improving the techniques in the present object, commercial use of scientific tests, improving the design and packing of the object to make it more attractive etc.

(iii) Checking the profitability of the idea- Business cannot be established on the basis of any idea, but we also have to check that how many opportunities are there to get profit in that idea. It is checked on the basis of initial production cost, marketing cost, government policy, break-even point, potential market etc.

(II) Evaluation of Start up Problems

After discovering a profitable business idea, but before making an overall plan of the business, the entrepreneur should also consider the risks, problems and rewards inherent in that business. The following aspects should be comprehensively considered by an entrepreneur

(1) Consideration of risks – An entrepreneur should analyze various risks before starting a business. Major among them are such as financial risk, professional risk, personal risk etc.

(2) Returns- The returns of a successful entrepreneur are both monetary and non-monetary. A successful entrepreneur not only gets maximum profit, but he also enjoys the energy and abilities put into his business. In addition to wealth, an entrepreneur’s rewards can be in the form of social contribution, professional satisfaction, community status and a sense of authority.

(III) Formulating the General Plan of Business

Entrepreneur starts business with certain objectives. He defines the goals of his business, but the amount of resources with the entrepreneur is also limited. Therefore, before starting the business, he prepares an overall plan, so that the goals of the business can be accomplished with maximum efficiency with minimum means. Entrepreneur has to plan in relation to many aspects of the business. The main parts of the overall business plan are as follows-

1. Product Planning- The following things should be kept in mind while planning in relation to the commodity-

(a) Attractive design, size and best quality of the item.

(b) Durability in the article, easy use method, easy availability of parts etc.

(c) Attractive name, brand, label and good packaging of the article.

(d) Planning for the production of parts, components and inter-assemblies of the commodity.

(e) Appropriate price – which is justified in the context of demand competition, consumer’s ability to pay, government policy etc.

2. Plant and product planning – After planning the design of the object and other related elements, the plan is prepared in relation to the plant and product process.

3. Cost planning- After the production plan is prepared, the initial estimates of production cost are prepared. Estimates of raw materials, labour, direct expenses, factory costs, office and sales costs, etc. The cost of manufacturing the item is determined by adding up the estimates of these various expenses. Determination of various methods of cost control is also necessary under cost planning. Considering the competition, what should be the cost of the commodity, what should be the scale of production, etc. Cost norms are set.

4. Financial Planning- The success of an industrial undertaking depends to a great extent on the efficient management of capital. Therefore, the entrepreneur has to make a special plan to decide the amount and nature of the required capital. Under this scheme, decisions are taken regarding the following things-

(a) Estimation of the amount of capital – Two types of capital are required for a new business – (a) fixed capital, and (b) working capital Fixed assets required, such as land, machine, plant, In the purchase of furniture etc. The fixed capital can be estimated only after knowing the requirements of all these. Entrepreneur has to arrange working capital for day-to-day requirements, such as buying raw materials, paying wages, paying overheads, etc.

(b) Determination of capital structure- It means to determine that what part of the total capital should be raised by issuing shares and by taking how much loan, there should be a suitable balance between the ownership capital and debt capital in the capital structure of the institution, because this ratio It has a direct impact on the financial soundness of the organization.

5. Organizational Planning – Under organizational planning, entrepreneurs take important decisions about the organizational structure of their organization. In this, the organization structure is prepared by considering the management structure of the organization i.e. the number of executive officers, position, position, authority, responsibility, interrelationship etc. What will be the remuneration of the employees, what will be the nature of appointment of sales representatives etc. It is necessary for organizational planning to consider.

6. Marketing planning- Marketing planning is only one part of the overall planning of the organization. It is very important to keep the production in sync with the sales. Decisions are taken in respect of the following aspects

(i) Price- Proper determination of the price of the commodity is necessary. Price must be competitive. In the calculation of prices, the basis of all selling expenses and cost of the item plus fair margin is taken.

(ii) Physical Distribution – Which chains will be used by an entrepreneur in the distribution of goods, what will be the commission of the intermediaries, what will be the terms of sale, etc.

(iii) Sales Promotion- Recruitment of skilled salespeople, advertising and other measures to increase sales are considered for successful sale of goods.

IV. Building the Organization Structure

After the completion of the general planning process in relation to the establishment of a new business, action is taken to organize the enterprise legally and prepare a working structure. The following are the main components of this process:

1. Selection of the organization of the undertaking- An undertaking can be established as a sole proprietorship, partnership, joint capital company or co-operative organization. Following action is taken to organize the undertaking as a company

(i) Preliminary action- This includes getting the articles and articles of the company prepared, deciding the initial directors and members, appointing the secretary and legal advisors, etc.

(ii) Proceedings of amalgamation – This includes getting the registration done by the Registrar of Companies. For registration, by giving an application to the Registrar of Companies of your state, many forms have to be submitted, such as a copy of the memorandum of the memorandum, a list of directors, information of the registered office of the company, copies of the main agreements, by the legal advisor. Statutory declaration of completion of all registration proceedings etc. After these actions the company is registered.

(iii) Certificate of commencement of business – Certificate of commencement of business is given by the registrar only when the company completes this process and issue a statement and submit a copy of it to the registrar, share allotment, statement All the proceedings for starting business like giving, legal advisor or secretary announcement etc. have been completed.

2. Arrangement of necessary resources – This phase is related to the implementation of the plan. Under this, the entrepreneur has to do the following:

(I) Acquiring land and building in an industrial settlement.

(ii) obtaining permission from the municipality, local panchayat in case of building construction.

(iii) To obtain iron, steel and cement at concessional rates from the Small Industries Service Institute.

(iv) To obtain and install machinery and machinery.

(v) To arrange raw material.

(vi) To get necessary facilities like electricity, water, communication etc.

(vii) To acquire and train employees and workers.

(viii) To get the services of technical experts.

V. Collecting of Finance

Organizing finances is an important task after the undertaking has been legally established and the necessary resources have been collected. In the absence of finance, the entrepreneur’s plan cannot be realized. Therefore, the entrepreneur has to collect finance from various sources and means. Finance sources can be divided into two categories – (i) proprietary capital sources and (ii) debt capital sources, private investment and capital of the entrepreneur in case of a proprietorship, capital employed by partners in partnership firm, company and co-operative institution. The capital invested by the shareholders is called ‘owned capital’. A public joint stock company issues a prospectus to the public for raising share capital. It enters into underwriting agreements with various investment bodies. The company collects ownership capital by allotting shares to the applicants. A business undertaking also has to obtain debt-capital. There are various sources of obtaining loan capital, such as obtaining loans from industrial finance corporations and commercial banks, state government, getting loans from friends and associates, accepting public deposits, etc.

VI. Commencement of Business

After the completion of all the proceedings of the establishment of the enterprise, the organization starts its business. First of all the organization prepares its production program and starts production activities according to it. In this, buying raw materials, recruiting laborers, getting technical services etc. are prominent. The organization’s office deals with correspondence related to various parties, such as distributors, agents, suppliers and other persons. The office receives various information from outside, maintains their records and organizes the information by preparing various cost, financial and statistical statements and reports. The sales department of the organization conducts necessary advertising and sales promotion campaigns.

An entrepreneur contacts various departments and agencies for running his industry. He contacts the State Finance Corporation to buy machines, equipment and other necessary papers. This corporation makes arrangement for purchase of machines from National Small Industries Corporation, New Delhi on rent payment method. To buy raw material, the entrepreneur contacts the State Small Industries Corporation and the State Industries Director’s Office. He establishes contact with the State Mechanical Advisory Councils for the purchase and sale of the State Small Industries Corporation and to solve the mechanical problems of his industry. There is a separate department in the nationalized commercial banks to assist small businessmen and in self-employment based activities. Entrepreneur can contact here regarding his problem.

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