Entrepreneurship in Business

This report discusses entrepreneurship in business, focusing on a new venture called Lush and Blush in the cosmetics industry. It covers the background and experience of the owner, new products launched, market research, operational requirements, cost and pricing strategy, financial forecasting, and contingency plan/exit strategy.

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 start business in cosmetics
industry with the name of Lush and Blush at United Kingdom marketplace. This company will
offer cosmetics products made with traditional method and natural ingredients, flowers as well as
plans. Along with this they also develop customize products according to need and demand of
customer. To conduct this in appropriate manner Aleona needs to conduct market analysis and
develop business plan and financial statements which is mentioned in this report.

Table of Content
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..............................................................................................................9
TASK 2...................................................................................................................................................9
CONCLUSION.....................................................................................................................................11
REFRENCES........................................................................................................................................12

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 and its name is Lush and Blush in London, United
Kingdom. This respective company will conduct its business in cosmetics industry by providing
beauty products which are made up of natural materials like flowers, plans and organic
ingredients. 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
Entreprenurship is a procedure in which an individual conduct or start a new venture in
order to serve their potential customers. Here main aim to start business is to earn profit and
expand business at international level or serve society in effective and appropriate manner. 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 her new business operation in cosmetic sector at United Kingdom with the
name of Lush and Blush. Respective company is mainly focusing on girls and women who love
to wear makeup. Specialty of respective company products is that they produce or manufacture
their products with traditional method by using flowers, plans and natural ingredients. Products
offer by Lush and Blush are naturals and skin friendly. Along with this they also manufacture
customize products according to skin type of their customers or clients. Moreover they are also
providing some rage of skin care products for boys. By serving these type of products and
services respective company planning to coming at marketplace.
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 which particular company
will survive for a long time 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 Lush and Blush 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 Lush and Blush 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 Lush and Blush
secondary method id more appropriate for data collection.

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 Lush and Blush mainly identify and develop group of peoples or
customers who are sharing same interest, need or location (Onetti and et.al., 2012). Respective
company divides their customers mainly on demographic and psychographic segments. In
demographic they are mainly focus peoples on the basis of income i.e. middle, upper middle and
higher as well as gender which is male and female. On the basis of psychographic Lush and
Blush focus on those peoples who love to do make up and want to look beautiful and stylish.
Marking strategies and competitors: Marketing strategy which is adopted by Lush and
Blush in order to gain competitive advancement is that before launching whole products in
London market, respective company will launch testers of all products. By which they able to get
reviews and feedback then accordingly they innovate their product. After that respective
company will launch products at minimum price from their competitors so that they able to
attract customers. They will must also focus on promotional and advertising activities to aware
customers about the products which are made up of nature material, flowers and plants. In
United Kingdom market Lush and Blush may face competition through various competitive
cosmetics companies such as MAC, benefit, Rimmel, Bobbi Brown, L’Oreal 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
Lush and Blush their unique selling point is that they develop cosmetics products according to
need and demand of customers. Along with this their manufacturing process is traditional and
they use natural ingredients, flower and plants. Moreover cost of these cosmetics products are
less that other products offer by competitors.
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 Lush and Blush
tangible requirements are like ingredients for manufacturing products, tools or machines used in
production process, packaging bags or box and many more. Along with this there are some

resources which are intangible but required to conduct process are smell of products and many
others.
Legal Requirements: Government of United Kingdom develop a law related to cosmetics
production i.e. CPER (Cosmetics Products Enforcement Regulation), which is developed in year
2013 (Schaper, Volery and Gibson, 2014). According to which they develop several guidelines
which every cosmetics company has to follow if they want to run their business in appropriate
and effective manner. Some of the major safety provision which are mentioned in this are-
 There should be proper labeling on products.
 Company must provide instruction how to use and dispose it proper manner.
 Presentation of products must include conformity with directive.
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 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 Lush and Blush,
pricing strategy which they can use is 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.
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
Quarte
r 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: Lush and Blush is cosmetic company which is affected by change
in demand of customers as well as trends. 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. Along with this it is also necessary for them to develop budget which they
can use in unexpected situation to overcome it.
Overall business running costs:
Overall cost which is required by Lush and Blush 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 Lush and Blush Aleona required 360000 amount to ask for investment so
that they able to conduct work and manufacturing 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 Lush and Blush to face contingency situation in order to avoid it they may merge with some
big cosmetics or retail company. By this they able to survive at the market place in effective and
proper manner.
TASK 2
The new business that is proposed to be launched would be launched under the name of
“Lush and Blush”. This business would be operating and functioning within the cosmetic sector
and providing a wide range of beauty care and make up products that helps people to glow and

beautify their skin. This idea has been launched as a result of the primary and secondary result
conducted upon the various kinds of sectors that are available as an option for entering within
corporate world. Post the evaluation and analysis of market, it was acknowledged that there is a
high demand for beauty products among people of all generations. This owes to the fact that
younger generations have to attend a large number of parties and events wherein they want to
showcase their glowing skin while the older generation in this regard, who have freckles and
dark circles intend to hide their ageing marks with the help of cosmetic items. Thus, it can be
said that the market for the cosmetic products is never low in terms of demand. This tends to act
as an opportunity for Lush and Blush to make use of the influential behavioral characteristics of
individuals to persuade them to make a purchase of the products sold by company. Further the
USP of this upcoming venture will be that the products made by this organization will be
produced by making use of traditional methods where the major resources or the ingredients
would be natural such as flowers, plants and herbs. This indicates that the items sold by this
venture would be totally skin friendly and natural which will not posses any kind of harm for any
skin type of individuals. The company also offers the choice of customization which is available
to clients for modifying the products as per their skin type.
Besides this, the market that has been selected by the entrepreneur to launch these
products is London, United Kingdom. London being the capital city of UK has access to
excellent infrastructural, manpower and other resources of the country and always supports the
growth of new and upcoming businesses which have a unique or creative idea. The products that
will be offered by Lush and Blush to public will be a blend of traditional and modern ideology as
the product type would be as per the needs and demands of modern era while the ingredients
which comprise the production of these items are natural. This has been strategically selected as
the entrepreneurial opportunity by the owner as this business will attract the attention of both the
kind of groups, one which prefers the modern cosmetic items and the other one which possess
immense liking for natural and organic ingredients.
The worldwide skincare, cosmetics and beauty sector is valued to be approximately
worth of $675 billion by the year 2020. Within United Kingdom, the cosmetics sector is found to
employ more than a million people and is valued at approximately £17 billion (Beauty, Skin Care
and Cosmetics Retail Trends and Statistics, 2019). Women belonging to the age group of 18-34

are the major purchaser segment for this industry. This reflects the scope for Lush and Blush to
launch its high quality and organic skin care products in market and succeed in gaining a high
stake in marketplace.
CONCLUSION
From above discussed point it can be conclude as well as analysis that now a day there is
trend of establishing an Entreprenurship 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
Beauty, Skin Care and Cosmetics Retail Trends and Statistics. 2019. [Online]. Available
Through:<https://www.thoughtshift.co.uk/beauty-skincare-and-cosmetics-retail-trends-
and-statistics/>.