Launching a New Venture

This project details a comprehensive business plan for launching a new cafe venture, Chuck & Chick, in the United Kingdom. It covers market research, competitor analysis, resource allocation, financial planning, promotional strategies, and legal structure. The project includes a detailed 12-month budget and addresses key considerations for starting a lean business.

Launching a New Venture

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1) Background to your venture idea, including market research undertaken, support data and
statistics, competitor analysis and identifying the target market............................................1
2) Resources required for setting up the business, including human, financial and physical 3
3) Identifying skills and capabilities required for the business and how they will be acquired
for future operations...............................................................................................................4
4) Financial capital and considerations for starting up a lean business. The principles that will
be applied................................................................................................................................5
5) Promotional activities and pricing strategies.....................................................................6
6) Identity of an appropriate business promotional message/name /logo for the business....7
7) 12 month budget for the launch of the business.................................................................8
8) Appropriate legal structure for the business.....................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business is a speculation or enterprise under which something is risked in hope of
earning profit. Business venture refers to new business that is mainly formed with expectation as
well as plan to gain the profit. For develop a new business, there is a need to have the proper
skills and capabilities. This present report is based on new business i.e. Chuck & Chick that is
small cafe in United Kingdom. It provides the different kinds of fast food items and drinks such
as Chicken Burger, Melted cheese nachos, sausage rolls, coffee, bottle drinks, shakes etc. This
report will be discuss about the skills and capabilities needed for business and also for conduct
the future operations (Antolín-López and et. al., 2015). There will be study about necessary
resources which will help in set up a new business venture effectively. Pricing strategies and
promotional activities will be discuss here.
TASK
1) Background to your venture idea, including market research undertaken, support data and
statistics, competitor analysis and identifying the target market
Chuck & Chick is a new small size cafe in United Kingdom and it provides fast food
items as well as drinks to its consumers. This restaurant is also give home delivery, personalised
baking services at the place of customers. The main objective of this restaurant is to provide
better quality of food services with high taste.
Market research refers to an organised effort to collect the information regarding
customers or target market. It is an helpful or most necessary component in set up a new
business. Before set up a new business, Chuck & Chick conduct an investigation to know about
the current market trends, existing competitors, taste and preferences of consumers etc.
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On the basis of this graph, there are two platforms like online and offline. In this present
time period, there is a trend of online platforms that making inroads in all over the world. Food-
delivery market is mindset set of dramatic channel migration. The online delivery platforms
growth by 25% per year from year 2015 to 2018. Until 2020, it will be taper off 14.9% per year.
So, the growth opportunities for online food business is high (Burns, 2017).
Target market refers to group of consumers which like to purchase the services and
products. Chuck & Chick is small size cafe and it provide the food items on the basis of needs
and preferences of consumers in United Kingdom. The main target market of this company is
youngsters because they like fast food more and enjoy with it.
Competitive analysis- It refers to an assessment of weaknesses and strengths of current
as well as potential competitors. An analysis gives defensive and offensive strategic context to
determine the better opportunities and threats. For the competitive analysis, Chuck & Chick uses
the Porter's Five Force Model. It is a kind of framework that is mainly uses to analysing the
competition of business. On the other hand, it is analysis tool that uses mainly the five industry
forces in order to identify competition intensity in industry and profit level. With the help of this
model, Chuck & Chick can determine its current position in market of United Kingdom. The
Five Forces of this factor mention below:
Competitive rivalry- Under this, the competitive strategy with the effective competitors
will provide the competitive edge over other firms. In the fast food industry, competition is high
because there are several existing cafe in United Kingdom which provide unique services. So, for
compete with customers, it is necessary for Chuck & Chick to develop effective strategy and also
provide better quality of unique food items (Curley and Formica, 2013).
Bargaining power of Suppliers- Under this, bargaining power of the suppliers is high
because this Cafe is new at market with limited number of the suppliers. In addition to this, it is
necessary for manager of Chuck & Chick to develop the positive relationship with its suppliers
to purchase the better quality of materials to provide better food items.
Bargaining power of Customers- As Chuck & Chick is small size and new cafe in
market of United Kingdom, so the bargaining power of consumers is high. The products
provided through this cafe is better but still people may prefer existing Cafe.
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Threat of substitutes- The thereat of substitute of product is moderate because Chuck &
Chick Cafe provide its food items with unique design and taste. So, it is a main benefit for this
Cafe.
Threat of new entrants- This force identifies how easy to enter in a specific industry. In
the food industry, entry of the new entrant is high because there are some barriers regarding
entry. As comparison to the other business, it is cheap to set up Cafe. For this, an individual can
easily raise the fund as comparison to any other business (Fernhaber and Li, 2013).
2) Resources required for setting up the business, including human, financial and physical
For developing new business venture, it is necessary for an entrepreneur to develop a
plan and also allocate the resources in a proper manner. Resources are helpful in conducting the
business activities in a significant manner. There are some necessary resources given below
which will require to set up new business:
Tangible resources- These are the resources which can be seen and touch easily. In order to set
up a new business, these are the most helpful resources. There are some tangible resource
mention below:
Human resource- These plays a main role in conducting the business operations or
performing business activities in an effective manner. It is a responsibility of human resource
department in Chunk & Chick to hire the best people which help in making the business
successful. Like, Chuck& Chick is small cafe so there is a need to hire 8 to 10 employees.
Financial resource- This resource covering all the financial fund in company. There is a
need to Cafe to make a proper budget as well as financial planning for conducting business
operations in a proper manner. It is responsibility of financial manager to manage and allocate
the funds for different department so that they can perform their work (Hantman and Gimmon,
2014).
Physical resources- It consists land, machinery, equipments etc. There is a need of
having the proper physical resources to conducting the business functions in an effective. For
making the food items, Chuck& Chick will need the proper equipments.
Intangible resources- These are the resources which can not be touch and seen. In intangible
resources consist goodwill, patent, trademarks etc. In regards to Chuck & Chick cafe, it is
necessary to owner to take the patent for name of company so that no one can use in future.
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Tangible as well as intangible both resources are helpful in set up a new business venture
in a proper and systematic manner. With the help of this, Cafe can attain its set objectives and
work towards expanding its business at large market.
3) Identifying skills and capabilities required for the business and how they will be acquired for
future operations
Each and every business begin with an objective of the high success as well as monetary
advantages in firm. In order to set up a new business, it is necessary that an entrepreneur should
have the required skills as well as capabilities (Hmieleski, Cole and Baron, 2012). These will be
helpful in perform the business operation in future. In order to determining skills and
capabilities, Chuck & Chick cafe will use the VRIO analysis. It is an effective analytical
technique that is mainly used to evaluation of resources of firm. This mainly uses in analyse
internal capabilities as well as resources of firm. VRIO analysis mention below:
Valuable- Under this, resources add some value through enabling company to exploit
better opportunities or defend from threats. The resources are valuable if they help firm to
enhance perceived value of consumers. In addition to Chuck & Chick Cafe, valuable resources
are employees, food items, quality, hygiene etc.
Rarity- The resources which can only acquired through one or some organisations are
included rare. Valuable and rare resources provide the temporary competitive benefit.
Imitability- When an organisation sees that competing firm is having the success with
provided products then it will quickly work for imitating product in context to enter in market as
direct rivals.
Organisation- Resources do not confer any benefits for firm if in case it is not organized
for capture value from them. It is necessary for Chuck & Chick Cafe to maintain quality of its
food items to create value at market place. It will help in gain the competitive benefit for
business (Kariv, 2013).
There are some skills and capabilities for business mention below:
Skills- It refers to ability for carried out the task with identified results within given time period.
Leadership skill- It is an ability of a person to influence group of people. It is necessary
for the leader of Chuck & Chick Cafe to develop its skills in context to motivate the employees
towards attaining the goals.
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Communication skill- Under this, communication is a way to exchange ideas and
thoughts among two persons. It is necessary that management should communicate with its staff
members in a positive manner and also provide them comfortable working environment. In order
to develop this skill, it is a responsibility of manager to provide them proper training. Through
this, they will communicate with customers in polite manner.
Capabilities- It refers to ability or power to do something. It is measure of ability of entity to
attain set business objectives (Kuratko and Hornsby, 2017).
Knowledge management- It is necessary that manager should have the proper knowledge
about the business, legislations in order to conduct the operations in an effective manner. The
manager of Chuck & Chick Cafe should provide the proper guidance to employee about the
various field so that they can be perform in a better manner.
Customer engagement- It is necessary for the management of Chuck & Chick Cafe to
involve its employees in the process of decision making. Through this, they will be motivated
and focus towards attaining specific objectives. With the help of this employees will focus in
develop better relationship with consumers that assess in enhancing productivity.
These skills as well as capabilities are helpful in performing the business functions in a
proper manner. Under this, skills will be acquired to perform the future operations with the help
of training, orientation etc.
4) Financial capital and considerations for starting up a lean business. The principles that will be
applied
There are different financial considerations that are required to be emphasised by
business owner during a new venture launch i.e. chuck and chick cafe. Some of these are
specified below:
Minimise overhead: It is vital for the owner of Chuck and chick cafe to manage its costs
and expenses form the very beginning. To achieve this, manager of company needs to cut those
expanses which do not add value to the operations carried out company. For this, company can
stop spending in decorating their office, cafeteria etc.
Track and monitor spending: To reduce or minimize cost wastage, it is vital for an
entrepreneur to monitor and track every aspect where the firm has spend. Minimizing wastage
cost will results in enhanced profitability of company. For this, manager of cafe needs to record
every transaction in an organised way so that funds and expenses can be managed.
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Invest appropriately: Entrepreneur in Chuck and chick cafe needs to invest in business
after expecting the potential returns. If wrong investment will be carried out, this can results in
business failure also in hard situations. For example, investing in place where outlet will be
opened needs to be decided properly. If customers will not come there, then business will face
loss of revenues.
Maintain cash reserve: It is vital for business person to have some liquid assets and cash
reserves which can be used in emergency situation rather than relying on credit and loans. Liquid
assets can be gathered by purchasing more in economic downturns.
5) Promotional activities and pricing strategies
Promotion refers to any kind of marketing communication that is mainly used to
persuade or inform the target audience of relative merits of service, issue brand and product. The
main aim of promotion is to enhance awareness, generate sale, develop interest etc. It is a
responsibility of the marketing manager to develop the better promotional activities so that
customers can be attracted (Kuratko and et. al., 2017). In order to launching a new business
venture, there is a need to Chuck & Chick Cafe to use the better promotional techniques through
which it can inform the people in a proper manner. Different kinds of promotional activities
which Chuck & Chick Cafe can be used mention below:
Advertisement- For promotion of Cafe, advertisement is an economical way. It can be in
the paid or unpaid form. The can advertise its service or product in television, outdoor signage,
newspapers etc. On the other hand, this Cafe can give advertisement of its business on the
different social media sites for an instance Facebook, Instagram etc. It is an effective way to
informing and interacting with people because in this present time period, people are more
connected with it (Mullins, 2017).
Sales promotion- The promotion is incentive tool that is mainly drive up the short term
sales. It can be launched directed at the trade or customer. The main focus of advertisement is to
develop reason for the purchase. Different tools of sales promotion consists premiums, coupons
etc. The sales promotion tools are helpful in enhance sagging sales through attract consumers.
Among both the methods, Chuck & Chick Cafe ca use the online medium of
advertisement because it can attract the large number of customers and also aware them about
the new services as well as products in an effective manner.
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Pricing strategies refers to method that firms use to cost their service or product. It is a
tactic that company use to enhance sales and also enhance the profit level through selling
products for an appropriate costs. Under this, there are various kinds of pricing strategies
mention below:
Penetration Pricing Strategy- The organisation use this pricing strategy by set cost of its
products lower in hope of developing the better market share. The main objective of this strategy
to garner many consumers with the minimum cost and after them use the different marketing
strategies in context to sustain them towards the firm.
Temporary Discount Pricing- Under this, firms may use this strategy to maximise the
sales. This strategy consists seasonal price reduction, coupons, volume purchases etc.
Among both the methods, Chuck & Chick Cafe can use the penetration pricing strategy
because it is a small size cafe so it need to set the minimum cost of its services or food items for
developing the better market share (Robles, 2015).
6) Identity of an appropriate business promotional message/name /logo for the business
In order to establish new firm into market, business owners should frame an effective
plans and policies along with an influencing promotional message/name/logo so that the
maximum number of targeted customers can be attracted within shorter period of time. Thus, the
business owners of Chuck & Chick Cafe need to prepare promotional activities plan so as to
spread the new of their entrance into London market. It is briefly discussed as under:
Pre-launch: It is the stage at which business owners make all preparations regarding
entrance of their new firm “ Chuck & Chick Cafe” in the customer's mind before final launch.
For this, the business owners prepare an official website which contains all information about
their offerings along with their benefits provided to the targeted customers. It provides an
opportunity to the targeted customers to give their feedbacks and suggestions according to their
needs and requirements. It makes easy for Chuck & Chick Cafe to achieve huge sustainability
into market for longer period of time.
Launch: It is the stage when new venture finally enter into market through conducting
opening ceremony where number of media representatives participates to capture each moment
and activities presented by business owners about their new venture. Chuck & Chick Cafe have
a tag-line of “Speak with the taste” which reflects the purity and sweetness of their offerings. At
the launch date, the business owners can successfully communicate with the people along with
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the benefits Chuck & Chick Cafe provided to them. Having catchy tag-line grabs an attention of
people from different areas of market through advertising on TV, Newspapers, social media by
media representatives attended at launch event.
7) 12 month budget for the launch of the business
Budget refers to an estimation of expenditure and income for set time period. It is
estimation of expenses and revenue over specified time period. It is developed through company
to prevent any kinds of shortage in money in future (Salamzadeh, 2015). It is helpful in reducing
the wastage of money and proper use of the resources in significant manner. For launch of
business, Chuck & Chick Cafe prepared a 12 month budget that is given below:
Pre launch
cash budget
Cash Flow
budget
Particulars Jan Feb Mar Apr May June
Cash inflows
Marketing
Research
80000 20000 30000 20000 60000 40000
Resources:
Premises
Building
Equipment
Tools
Technology
Cost of HR
10000
0
80000 40000 110000 80000 80000
Total 18000 100000 700000 130000 140000 120000
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inflows 0
Cash
outflows
Specific
Products and
services:
Cost of rent
offices
Supply chain
cost
2000 25000 15000 20000 12000 15000
Entering
Market:
Obtaining
license
Certification
s
3000 3000 2000 3000 1500 5000
Total
outflows
23000 28000 17000 23000 13500 20000
Net cash
flow
15700
0
72000 683000 107000 126500 100000
Opening
balance
0 157000 135000 548000 441000 314500
closing 15700 135000 548000 441000 314500 214500
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balance 0
Particulars July August September October November December
Cash inflows
Marketing
Research
Resources:
Premises
Building
Equipment
Tools
Technology
Cost of HR
4200 1000 2000 800 1200 1500
Total inflows 4200 1000 2000 800 1200 1500
Cash outflows
Specific Products
and services:
Cost of rent offices
Supply chain cost
800 200 300 100 600 300
Entering Market:
Obtaining license
300 400 500 100 100 400
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Certifications
Total outflows 1100 600 800 200 700 700
Net cash flow 3100 400 1200 600 500 800
Opening balance 1300
0
16100 16500 17700 18300 18800
closing balance 1610
0
16500 17700 18300 18800 19600
Post launch cash
budget
Particulars Jan Feb Mar Apr May June
Cash inflows
Investment 8000
Credit sales 1200 2000 7500 3000 5000 6500
Total inflows 9200 2000 7500 3000 5000 6500
Cash outflows
Fixed : Equipment’s 2500 1200 1500 2500 1100 1500
Variable : Direct
material
350 300 250 150 100 500
Total outflows 2850 1500 1750 2650 1200 2000
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Net cash flow 6350 500 5750 350 3800 4500
Opening balance 0 6350 5850 11600 11950 15750
closing balance 6350 5850 11600 11950 15750 20250
Particulars July August Septembe
r
October Novembe
r
Decembe
r
Cash inflows
Investment
Credit sales 1200 3200 1500 8200 1250 3210
Total inflows 1200 3200 1500 8200 1250 3210
Cash outflows
Fixed :
Equipment’s
1200 600 500 500 1200 700
Variable : Direct
material
500 250 450 250 1300 500
Total outflows 1700 850 950 750 2500 1200
Net cash flow -500 2350 550 7450 -1250 2010
Opening balance 20250 19750 22100 22650 30100 28850
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closing balance 19750 22100 22650 30100 28850 30860
8) Appropriate legal structure for the business
Framework of an organisation recognized legally in specific jurisdiction in order to
conducting the commercial activities line corporation, partnership, sole- proprietorship etc. It is
necessary that firm should follow all legislations which are developed through government of
United Kingdom. The Chuck & Chick Cafe is launching the new business venture in London so
business person should have proper knowledge about the legislation and government rules. It is
essential for each business firm to select a proper structure to secure itself from any kind of legal
barriers. There are some legal structure mention below:
Sole proprietorship- It is someone that own unincorporated business through itself. It is
a kind of firm that owned as well as run through single person and there is not any legal
distinction among owner and business entity (Wales, Wiklund and McKelvie, 2015).
Partnership- It is a business structure in which two or more than the two people share
their responsibility and ownership in order to managing firm. It is legal business form among two
or more people which share profit and management.
Among both the legal structure, Sole Proprietorship will be adopt by Chuck & Chick
Cafe because owner can enjoy the sole control on profit of business. Under this, a single person
is liable for risk and profit. A single owner can take decisions easily without any kind of
interruptions.
CONCLUSION
It has been concluded from above mention report that for launching new business
venture, an entrepreneur should analyse its target market or conduct an investigation. It will help
in provide the benefit to know about the preferences or customers and existing competitors.
Human and financial resources are helpful in performing the business operations in a significant
manner. Porter's five forces model has been used to determine the competitive position in market
of United Kingdom. Under this, VRIO model has been studied in order to identify the
capabilities as well as skills which are required to conducting the future business operations in a
proper way.
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REFERENCES
Books & Journals
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ventures and established firms. Technovation. 41. pp.25-37.
Burns, P., 2017. New venture creation: a framework for entrepreneurial start-ups. Palgrave.
Curley, M. and Formica, P., 2013. The experimental nature of new venture creation. Springer.10.
pp.978-3.
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pp.316-334.
Hantman, S. and Gimmon, E., 2014. Dare to dream: new venture incubator for older adults.
Educational Gerontology. 40(10). pp.737-744.
Hmieleski, K. M., Cole, M. S. and Baron, R. A., 2012. Shared authentic leadership and new
venture performance. Journal of Management. 38(5). pp.1476-1499.
Kariv, D., 2013. Female entrepreneurship and the new venture creation: An international
overview. Routledge.
Kuratko, D. F. and Hornsby, J. S., 2017. New venture management: The entrepreneur’s
roadmap. Routledge.
Kuratko, D. F. and et. al., 2017. The paradox of new venture legitimation within an
entrepreneurial ecosystem. Small Business Economics. 49(1). pp.119-140.
Mullins, J., 2017. The new business road test: what entrepreneurs and investors should do
before launching a lean start-up. Pearson UK.
Robles, E., 2015. How to identify disruptive new businesses. Review of Business & Finance
Studies. 6(1). pp.121-130.
Salamzadeh, A., 2015. New venture creation: Controversial perspectives and theories. Economic
Analysis. 48(3-4). pp.101-109.
Wales, W., Wiklund, J. and McKelvie, A., 2015. What about new entry? Examining the
theorized role of new entry in the entrepreneurial orientation–performance relationship.
International Small Business Journal. 33(4). pp.351-373.
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