Innovation, commercialization and funding for the businesses

Innovation and commercialisation
Executive summary
As it Initially it focuses on defining and understanding innovation as a whole in a broad sense. The
identification of the business case of innovation of the KFC is the initial process in formulating a strategic action
plan and development. Therefore, this report functions as the research and initial development of a strategic
intellectual property. .
List of tables
Introduction of Essence drink pg. 4
Sources of funding and types and reasons for itPg. 4-5
Estimated expenses of essence drink pg. 6
Risk of essence drink to method to solve itpg.7-8
Intellectual property pg. 9
Intellectual property protection methods and impact of itpg. 9-10
Conclusion Pg.11
Reference Pg.12
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INTRODUCTION
Now Starting a business can be difficult, but many people have successfully opened their own businesses year
after year. Successful people spend a lot of time raising capital, researching the market, and developing a
realistic business plan before launching their new venture. The resources you need to start a business can be
divided into five broad categories: financial, human, educational, emotional and physical resources. (Rob
Jones,2017 pg210-217)
Essence Drink is a UK-based company that has been selling healthy mango Lassi for the past two years. The
company grew rapidly in the first two years due to its distribution capability and innovative formula, but sales
fell as the company entered the third year. As a result, the company's founder intends to introduce some new
innovative drinks for his company. Before launching a new innovative product, the company should consider a
different type of innovation (Boons, et al., 2013, 45(2), pp. 1-8).
Finance resources the maximum importantelement in beginning a business enterprise is funding. Even
the maximum easyhomebusiness enterprise incurs a large number of start-up costs, inclusive
of registering a business enterprise name, acquiring a business enterprisetelephone line and printing business
enterprise cards. Financial reassertscan beacquired from severalreasserts, the very pleasant being from the
personalcash owed of the company`s founder. Alternatively, loans and lines of credit scoreratingmay be
granted from monetary institutions, buddies and relatives, non-public investors.(Chron 2019)
Accessing funding and resources to business
Funding is vital for a enterprise to get off the ground. It will permit your enterprise to develop and circulate with
inside the proper direction.
Sources of funding
In order to sure produced strong gave products, companies must found matched met in financial. Society
generally considers all types of the grants, examples, equity investments, mission grants, government grants,
loans and debt, crowdfunding , employed, etc. (Rob Jones,2017 pg210-217)
Reasons why accessing funding is required to an organisation
Corporations regularlywantto elevateoutside funding, or capital, for you toextend their corporations into new
markets or locations, to spend money on research & development, advertising or to fend off the competition.
Funding is vital for a enterprise to get off the ground. It will permit a enterprise to develop and passwith inside
theproper direction. (Rob Jones,2017 pg210-217)
Essence Drinks is a health drink company based in the United Kingdom. The company began two years ago
with only one health drink, mango Lassi. Because of its distribution capabilities and innovative formula, the
company has seen a significant increase in product sales (Rasmussen, 2010). As the company enters its third
year, its sales decrease dramatically because UK consumers prefer to drink various flavored Lassi. As a result,
UK consumers are drawn to these companies' health drinks, which come in a variety of flavors (Cooper, 2002,
5(5), pp. 375-377).
To address this issue, the company must provide healthy drinks in a variety of flavors. The health drink should
also be of high quality. Drinks with can be introduced by the company.
The company may introduce drinks with the following characteristics:
 Available in a variety of flavors
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 Tasty
 free of taurine and caffeine
 highly nutritional and natural.
When a company wants to introduce a health drink to the market, it may create a variety of risks. Starting a
new product can take a long time, which raises the price of the product. In the case of a commercial funnel, the
company must ensure that the consumer is properly informed about the product; otherwise, the consumer will
not be interested in purchasing the product. If the consumer becomes aware of the product, they will add it to
their shopping list and purchase it. The company must assess the product's worth.
When a company wants to introduce a product to the market, it must first assess its worth. Every business
wants to reduce the price of their product. To accomplish this, the company will eliminate all unnecessary
features of the product, lowering the product's cost and increasing profit. (Cooper, 2002, 5(5), pp. 375-377.).
Differenttypes offunding Sources for company
Retained earning: This is profitable by business rather than returning it to the owner and which may be used in
future.
Debt capital: Companies obtain debt financing privately through bank loans. They can also source new funds
by issuing debt to the public.
Equity capital: Companies can increasefinances from the general public in exchangefor a proportionate
ownershipstake with inside thecorporationwith inside theform of stocks issued to buyers who come to be
shareholders after buying the stocks.
Personal savings: The entrepreneur uses his own personal saving money into business and don’t owe anyone
else in the process. By this total control of business is with owner. But however If business fails, all the hard
work that the owner had put into your savings will be waste.
Bank overdraft: agreement with bank where a business spent more money than it has in account this is a
simple and flexible term but however the bank has the right to call in all the money owed at anytime
Crowdfunding: Where last number of individuals invest in a business venture using an online platform therefore
to avoid using bank. This may potentially expand the business by getting a many of investors. But this may
take time to gather required amount of money .
Venture capital: It’s a specialist investor who provides money for business purpose often to new businesses.
This may not only provide funding, but can offer expertise and mentorship to help develop the business. Even
could bepressured to surrender a massivechew of your commercial enterprisebecause of the full-sizequantity
of investment provided.
Family and friends: Could request friends, family or close associates to help fund your business. This could be
Faster funding process and flexible payment methods. But however conflict could be created among friends
and family.(Rob Jones,2017 pg210-217)
Method to secure funding
 Create a practical budget
 Be sensibleto your pitch
 Target the properinvestment option(Rob Jones,2017 pg210-217)
Essence drink can come up with an innovative idea to increase the company's sales. The company can
personalize the healthy drink and ship it to the customer's door. The company can also advertise the product
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through digital marketing. When a consumer can order and receive a product from the comfort of their own
home, they are more likely to purchase it. Essence Drink, based in the United Kingdom, will deliver health
drinks to customers' doors. (Boons, et al., 2013, 45(2), pp. 1-8).
If the company wants to launch a new product, it may launch drinks with various flavours. A health drink with a
variety of flavours may appeal to consumers who want to broaden their palate.
Advertising is one of the most effective product promotion tools. Any paid promotion or communication of a
product is defined as an advertisement. Mission, money, message, media, and measurement are the five
advertising decisions. Many consumers can be made aware of and drawn to a product through advertising.
There are various types of advertising, including direct marketing, print media, broadcast media, and the
internet. The company, Essence Drink, can use environmental testing to determine the efficacy of the new
product. The company should estimate a budget for the entire business before developing an innovative
business case. (Lee, et al., 2010, 39(2), pp. 290-300).
Estimated total company expenses
Type of spending Cost
Manufacturing cost $500
Raw material cost $400
Labour cost $450
Management
spending $300
Marketing spending $150
Total cost $180
0
The company’s projected total revenue
Product name Product price Products quantity Per product revenue
Mango Lassi $ 2 250 $500
Orange Lassi $ 2 200 $400
Pineapple Lassi $ 3 200 $600
Litchi Lassi $3.50 200 $700
Plain Lassi $ 1.50 400 $600
Total revenue $2800
The projected total profit of the company will be – (TR – TC) = ($2800 - $1800)=$1000 (Lee, et al., 2010,
39(2), pp. 290-300).
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