Promotion of a small business begins when an entrepreneur conceives an idea of starting a new business enterprise. Such a promoter must have certain definite background. He must be technically well-versed and should possess perfect know edge about such an enterprise. If a person is suitably qualified in respect of running the business and implementing his ideas, the chances of his success are certainly enhanced. In some cases, a person may acquire knowledge by working in such areas and become a successful entrepreneur. He must posses full-knowledge about the product and government policies regarding small scale industrial units. It means he must know the products which have been kept aside by the government for small scale industrial units. A person with necessary background, eagerness and initiative of starting a small scale industrial unit can surely succeed in establishing such a unit.

Following steps are required to be taken by an entrepreneur in the process of establishing a small scale industrial unit:


Well-conceived ideas

In the beginning, the entrepreneur must have clear and well conceived ideas which are likely to pay good returns to the promoter of the business. His ideas may consist of process of manufacturing or methods of carrying on trade, new market, plan for collecting capital at less cost or any other thing which would ultimately lead to enough profits. The entrepreneur must enough care about the feasibility and practicability of his ideas.


Preliminary Investigation and thorough study

In the beginning, the ideas about starting an industrial unit may be vague. He must, however, try to give clear and definite shape to his well conceived ideas. It is likely that, inadvertently or unknowingly he may not be able to think about the other side of the business because of his over-enthusiam and excitement of his new ideas. As a result, there may be ultimately end of the unit leading to utter loss. In order to avoid such a precarious situation, he must undertake thorough investigation about all aspects of the venture so that he can execute his ideas successfully.

The practicability of the unit must be properly tested. It means, if he wishes to manufacture a particular product, its working model must be prepared. It should also be ascertained whether it works according to the expectations or not.


Market survey

The market survey must be carried out if one wants to sell one’s product whether it is old one or new one. The promoter of a business must judge in the very beginning the practicability of the product first on a small scale and find out the results about the demand, his product can fetch from the consumers in the market.


Possibility of prevailing competition

Promoter must take into consideration the possibilities of competition for his product in the market. He can avoid competition by securing patent rights. In several cases, promoters cannot avoid competition from substitute products.


Alternative Production Schedule

He should also consider alternative arrangements in case he is unable to keep up his production schedule.


Profit Motive

The ultimate aim of an entrepreneur is to sell the manufactured goods and earn profits.


Attracting Customers

He must find out various means of attracting prospective customers. In order to make his enterprise successful, he must find out correct solution to all possible problems which would adversely affect the sale of this product.


Clarity about the objective

When an entrepreneur wishes to start a particular industrial unit, he must select a particular branch of it. He must have a clear picture and objectives about his project. There are a number of products which can be manufactured in a small scale unit. The decision regarding manufacturing a product can be taken on the basis of technical knowledge and experience of the entrepreneur. There are a number of agencies from whom the entrepreneur can collect required information for setting up an industrial unit. Director of Industries and Small Industrial Service Institute in the state can properly guide such prospective entrepreneurs.