Entrepreneurship in Business

This project examines the business plan and financial status of a new electronic venture called 'Innovate at your Door' established by Aleona Ankrah in the UK market. The report analyzes market research, operational requirements, cost and pricing strategies, and financial forecasting, including a contingency plan for the venture.

ENTREPRENEURSHIP
IN
BUSINESS
EXECUTIVE SUMMARY

Entrepreneurship is a process in which an individual establish or run their own business
in order to serve society for gaining profit or social welfare. In this Aleona who has experienced
of 20 years now want to start her business. For which she decide to establish business in
Electronic sector or industry with the name of “Innovate at your Door” at market of United
Kingdom. The respective company offer innovative and creative electronic products which
makes life of their potential customers easy as well as standard. Products offer by respective
company are decorative lamps, fancy light, heater, routers, cables, Xerox machines, laser
printers, computer hardware, washing machines, street light and many more. So for staring
business in effective and appropriate manner Aleona conduct market evaluation and develop
business plan. Along with this she also conduct analysis of financial status so that she able to
prepare budget in effective and appropriate manner.

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
Background and experience of Owner...................................................................................4
New Venture and products launched by company.................................................................4
Market research......................................................................................................................5
Operational Requirements......................................................................................................6
Cost and pricing strategy........................................................................................................7
Financial Forecasting..............................................................................................................7
Contingency Plan/ Exit Strategy..........................................................................................10
TASK 2..........................................................................................................................................10
Covered in PPT.....................................................................................................................10
CONCLUSION .............................................................................................................................10
REFRENCES ................................................................................................................................11

INTRODUCTION
Entrepreneurship refers procedure in which an individual launch and run their new
business which can be big or small. An individual who launch a new venture is known as
entrepreneur. In this mainly a person start a new business operation which is unique and creative
in order to earn profit or serve society (Bridge and O’Neill, 2012). This report is based on a new
venture which is launched by Aleona Ankrah in electronic industry by name of “Innovation at
your Door” at United Kingdom market. The respective company is conducting its business in
electronic sector in which they are providing various range of products. Such as decorative lamp,
fancy light, heater, router, networking device, laser, printers, computer hardware, washing
machines and many more. Topics covered in this report are related to business plans and
financial status of company as well as owner. These both things are essential to run and
established a business operation in effective and appropriate manner.
TASK 1
Background and experience of Owner
Entrepreneurship is a procedure in which an individual conduct or start a new venture in
order to serve their potential customers. This report is also based on entrepreneurship which is
established by Aleona Ankrah who is an investor and design engineer. Aleona work as
Component Specialist at Rolls Royce for approx 20 years and she want to establish her own new
business. For this she wants to develop business plans as well as financial status so that she will
conduct next procedure accordingly and effectively. Aleona also conduct analysis and evaluation
of market so that she know about their potential customers which will further help her in
developing and designing products and services in effective and appropriate manner.
New Venture and products launched by company
When an individual plan to launch a new venture they must come up with new and
innovative idea so that they able to attract more and more customers in appropriate manner. For
which they have to conduct market analysis in order to understand need as well as demand of
customer and also know about their competitors (Burns and Dewhurst, 2016). In respect of this
report Aleona wants to establish a new venture with some innovative and idea. According to
which she is opening a new business operation in electronic sector at United Kingdom with the
name of Innovation at your Door. They are offering variety of services such as decorative lamp,

fancy light, heater, router, networking device, laser, printers, computer hardware, washing
machines and many more.
Market research
Outline of marketplace: It refers to a process in which an organization conducts research or
analysis in order to identify potential customers as well as market. In it they also identify how
long they will survive in appropriate and effective manner by earning profit and market shares
(Scarborough, 2016). This can be done through two main methods, which are given below:- Primary method- It refers to a technique in which data or information is collected first
handed and fresh. In this procedure an individual travel form one to another in order to
collect essential and appropriate data. This method is time taking as well as costly due to
which very less company adopt it in order to collect data. In respect of Innovation at your
Door, if they adopt this method they have to hire researcher who will travel and collect
data or information according to need and requirement. It can be done through personal
interview, group discussion and so on.
 Secondary method- It refers to type of method in which research use data which is
collect by someone else and that is passing through statistical process. It is cost effective
and quick process due to which mostly company adopt while developing strategies and
plans. It can be done through newspaper, internet, blogs, old file etc. (Trimi and
Berbegal, 2012). In respect of respective, if they adopt it they can conduct their market
analysis process in short time duration.
By analysis both the methods in appropriate and effective manner, for Innovation at your
Door, secondary method is more appropriate for collecting data.
Market segmentation: It refers to a method which is adopted by an organization in order
to divide potential customers market into a group or segment. That will be based on different
characteristics or like. In this Innovation at your Door mainly identify and develop group of
peoples or customers who are sharing same interest, need or location. Respective company
divides their customers mainly on demographic and psycho graphic segments. In demographic
they are mainly focus peoples on the basis of income i.e. middle, upper middle and higher. On
the basis of psycho- graphic respective company focus on those peoples who like electronic
decorative products.

Marking strategies and competitors: Marketing strategy which is adopted by
Innovation at your Door in order to gain competitive advancement is that before launching whole
products in London market, respective company will showcase their all products (Bridge and
O'Neill, 2012). By which they able to get reviews and feedback then accordingly they innovate
their product. After that respective company will launch products at appropriate and affordable
price so that they able to attract customers. They must also focus on promotional and advertising
activities to aware customers about the variety of products by which customers improve their
standard of living in effective manner. Respective company also face competition in market
because there are various big companies who are operating in same industry such as UK
Electronics Ltd., IBEX UK limited, GTK ltd., and many more.
Unique selling point: It refers to technique by which an organization able to conduct
work or plan things in appropriate manner in order to attain goal and objective. In respect of
Innovation at your Door, they develop and providing variety of electronic items. They also
design products according to customers demand which attract customers at high ratio. Along
with this they are also provide quality products to their customers at affordable price.
Operational Requirements
Tangible and intangible requirements: It refers to the resources which are required by
an organization in order to conduct work in appropriate and effective manner. It can be of two
forms tangible which can be see and feel by a person and another is intangible which can’t be
seen by a person he/ she only can feel it (Audretsch, 2012). In respect of Innovation at your Door
tangible requirements are labours, land, furnitures, machines, machinery parts and so on. Along
with this intangible requirement are software, networking system and financial resources.
Legal Requirements: Every company need to adopt legal requirement or rules and
regulation so that they conduct their work in effective and appropriate manner. In case of
Innovation at your Door they also need to follow various legal requirements, some major of them
are given below:- Patent Act: This act is developed by government of United Kingdom in year 1977 in
order to protect right of manufacturer of products. This is necessary for Innovation at
your Door to adopt this act because they are manufacturer of electronic item. They design
and develop products by themselves, so it is necessary for them to do patent of that

particular innovation or design by which no other company can copy their plan or
designs. Health and Safety Act: This act is develop by government of United Kingdom in year
1974. According to which company who is operating in manufacturing sector they must
provide health and safety security to their employees (Burns and Dewhurst, 2016). In
respect of Innovation at your Door, it is a manufacturer and seller of electronic products
so it is essential for them to provide security and safety to employees. By which they able
to conduct work in appropriate and effective manner.
 Insurance Act: This act is developed by United Kingdom government in 2015. In which
it is necessary for an organization to conduct insurance of employees of they are conduct
any manufacturing work. Respective company is doing manufacturing of electronic item
such as decorative lamps and fancy lights, so it is essential for Innovation at your Door to
provide insurance to their employees.
Cost and pricing strategy
Pricing strategy is adopt by a company in order to select appropriate cost or price for their
products and services so it can be affordable by customers. Along with this company must fix
price according to quality of products by which customers will feel that they are paying for
valuable product. There are various type of pricing strategy which can be adopt by an
organization such as premium pricing, pricing for market penetration, economy pricing,
skimming pricing, psychology pricing and bundle pricing. According to Innovation at your Door,
pricing strategy which they can use are psychology pricing and premium pricing. Psychology
pricing refers to a technique in which company decide their cost slight lower in comparison of
round number (Lerner and Malmendier, 2013). Such as 199 instead of 200, this is so because
customers are mainly focus on first digit of product price. Whereas premium pricing means when
a company set their products price superior then their competitors in order to attract more
customers and show them that their product are effective and appropriate. Along with this
respective company is providing quality electronics products by which customers feel that they
are paying for valuable products.
Financial Forecasting
Sales and costs forecast:

Cost Forecast
Particulars Amount
Material 125000
Research and development 1500
Machinery 200000
Hiring skilled employees 12000
Wages to workers 25000
Advertising 1200
Promotions 1600
Total cost 366300
Sales forecast
Particulars Quarter 1 Quarter 2 Quarter 3 Quarter 4
Units to be sold 2000 2200 2500 2800
Selling prices 15 15 15 15
Total sales 30000 33000 37500 42000
Affected by seasonal trends:
Innovation at your door is conducting its business at electronics market which is affected
by change in demand of customers as well as new technology. So it is necessary for respective
company manger to develop strategies and plans through which they can have future unforeseen
situation in effective and efficient manner (Scarborough, 2016). Along with this it is also
necessary for them to develop budget which they can use in unexpected situation to overcome it.
Demand of products at respective industry increase or decrease according to seasonal trends.
Overall business running costs:
Overall cost which is required by Innovation at your door is 366300 so that they able to
operate its business operation and function in effective and appropriate manner.
Cost Forecast
Particulars Amount

Material 125000
Research and development 1500
Machinery 200000
Hiring skilled employees 12000
Wages to workers 25000
Advertising 1200
Promotions 1600
Total cost 366300
Cash flow forecast:
Cash flow forecast
Particulars Amount
Receipts
Sales 142500
Loan taken 400000
Total A 542500
Payments
Material 125000
Research and development 1500
Machinery 200000
Hiring skilled employees 12000
Wages to workers 25000
Advertising 1200
Promotions 1600
Total B 366300
Closing balance (A-B) 176200
How much are you asking from investors?
For Launching Innovation at your Door Aleona required 360000 amount to ask for
investment so that she able to conduct operations and functions process in proper and effective
manner.

Contingency Plan/ Exit Strategy
Exit strategy refers to a contingency plan which is mainly executed by trader, investors,
business owner or venture capitalist. Its main reason is to liquidate position in a form of financial
assets or tangible assets of business (Bridge and O’Neill, 2012). This situation will occur when
an organization not able to meet need and demand of customers in proper manner. So according
to Innovation at your Door when they face decline situation then they have two options. That are
either they exit business form United Kingdom market or continue business by merging with
other company. For respective company most appropriate situation is that they must merge with
some big electronic company for sustain in marketplace in effective and appropriate manner.
TASK 2
Covered in PPT
CONCLUSION
From above discussed point it can be conclude as well as analysis that now a day there is
trend of establishing an Entrepreneurship through which owner able to earn profit as well as
generate employment opportunities for other. But for establishing an effective and appropriate
new venture an individual or entrepreneur have to develop various strategies related to business
plan, how to operate, capital, investors and many more. For this they also need to conduct market
analysis so that they able to identify its potential customers which help in developing products
and services accordingly in proper manner. Along with this it is also essential for a new venture
to come up with new as well as innovative idea which attracts more and more customers.

REFRENCES
Books and journals
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: Entrepreneurship and small
business. Macmillan International Higher Education.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Scarborough, N.M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
Trimi, S. and Berbegal-Mirabent, J., 2012. Business model innovation in
entrepreneurship. International Entrepreneurship and Management Journal. 8(4).
pp.449-465.
Onetti, A., and et.al., 2012. Internationalization, innovation and entrepreneurship: business
models for new technology-based firms. Journal of Management & Governance. 16(3).
pp.337-368.
Audretsch, D., 2012. Entrepreneurship research. Management Decision. 50(5). pp.755-764.
Schaper, M.T., Volery, T., and Gibson, B., 2014. Entrepreneurship and small business.
Lerner, J. and Malmendier, U., 2013. With a little help from my (random) friends: Success and
failure in post-business school entrepreneurship. The Review of Financial
Studies. 26(10). pp.2411-2452.
Online
U K Electronics. 2019. [Online]. Available through: <https://www.ukelectronics.co.uk/>.