What are the first steps in promotion?

I think the essential and first step that should be taken is link exchange by request with an independant site and also signup with banner exchange programs. We cannot forget to submit the sites to Google, Yahoo, etc.

Promotion of what exactly? I doubt I'd ever do link exchange on my future business site. Or banner exchange for that matter.

I never submitted my sites to Google, or Yahoo either. The google bot finds them one way or another.

Be more specific.

Link xchange may work against you. If site you are linking to is offtopic or have low reputation or doesn't give a comparable pr back, you may lose something than earn.
Submitting to search engines only make sure you are indexed. Never pay for such a service. If there is a link to your site from an external source on an indexed page, probably you don't need to submit your site.
Consider submitting your site to reputable directories, although it might not be the most cost effective way, you usually know what you get.

I have never submitted any of my sites to a search engine. Due to link exchange, they have spidered my website. I think link exchange won't work against you if (1.) your website has good content so visitors don't want to leave; (2.) you link to sites within your category; (3.) just starting out, there is less to lose.