Factors to Consider for a Successful Business Venture

The provided document outlines essential considerations for establishing a successful business venture. It covers innovative ideas, practical feasibility, market analysis, customer analysis, resource allocation, and promotional channels such as sales promotion and social media networks. The references section lists relevant books and journals on entrepreneurship, academic articles, and research papers that support the key concepts discussed in the document.

Launching a New
Business Venture

Contents
INTRODUCTION.....................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1 Investigate and explain specific target market, competitive and market analysis...............................3
P2 Identify tangible and intangible resources that is required in order to launch a new business venture4
TASK 2.......................................................................................................................................................5
P3 Produce a Business Proposal..............................................................................................................5
P4 Skills and capabilities required to start new business venture............................................................6
TASK 3.......................................................................................................................................................6
P5 Different promotional activities to support the launch of new business venture.................................6
P6 Development of promotional activities plan for launching new business venture..............................7
TASK 4.......................................................................................................................................................7
P7 Produce detailed monthly cash budget for business............................................................................7
P8 Suggest an appropriate legal form for the venture............................................................................10
CONCLUSION........................................................................................................................................11
REFERENCES..............................................................................................................................................12

INTRODUCTION
Globalization is affecting small scale industries by providing them an opportunity to
grow and expand their business operation in other overseas market. Organization introduce
innovative products or services in the marketplace so as to gain high competitive advantage over
their rivals (Baum, Frese and Baron, 2014). PanFry Pizza is UK based new business venture that
main deals in providing pizza with customized sauces and toppings as per the likes and dislikes
of customers. The report include identification and allocation of resources, business plan,
different promotional channel, assessment of skills and capabilities of successful entrepreneur
are defined that help in launching new business venture. Along with this monthly cash flow
statement and appropriate legal structure have also been discussed in this report.
TASK 1
P1 Investigate and explain specific target market, competitive and market analysis
There are different factors that are available in the marketplace that effect business
activities and operations either in direct or indirect manner. It is primarily important for every
company to perform task in such a manner that leads to satisfy customer requirement effectively.
In today's world, Restaurant is the leading and fastest growing sector that mainly deals in
providing of different types of cuisine to target customer. Presently, it is the most demanding
sector among other i.e. the most profitable sector. There are many policies and regulation that
has been associated with food sector which management of PanFry Pizza has to undertake in
order to run their business operation smoothly. Huge level of competition exist in food industry
which enable company to formulate effective strategies and perform activities that gives them
high competitive advantage over other competitors. It is important for company to perform
various business activities that assist them to compete with external parties.
Identification of specific target market:
Before launching new venture in the market, the primary goal is to identify the target market i.e.
to whom company is going to mainly target for selling their product or services. There are many
restaurants available in the market that deals in providing similar kind of product. So the
main responsibility of PanFry Pizza to determine to whom they are going to target in the market.
There are different things that needs to be taken into account by entrepreneur before establishing
their new business venture. Nowadays pizza is very famous among but young and elder
generation. There are many restaurants available in UK who serves pizza with other food items
and there are few who only serve pizza only. In the modern era, where nothing is constant and so
does the taste and likes of customers are also changing. In order to be with such kind of situation
PanFry Pizza has decided to sell pizza with customized topping and sauces. The only sauce that
has been used on pizza base is tomato so in order to make it more innovative, the company has
decided to replace with other flavors of sauces like mint, sweet onion, chipotle southwest
etc. and also add customized topping on it. Their main purpose is to make people enjoy pizza as
per their requirement or likes (Douglas, 2013). The idea can be implemented in better way as
customers prefer to select those toppings as per health and liking. Also with this new features
customer develop new taste. So that target customer of PanFry Pizza is 20-40 year of people.
Competitive analysis:
It is primarily important for every company to do competitive analysis before launching their
product in the marketplace. It is always better to analyze what are the strength and weakness of

existing competitors firms so company can easily give them strong competition. Nowadays
scope of restaurant are continually increasing which means there is high competition level
prevails in food sector. Every other entrepreneur prefer to launch their business through this
sector only as it is the easiest way to enter into the market (Dutta, Li and Merenda, 2011).
Everybody loves to eat and demand of this sector will never go down. So it is essential for
company to perform activities that help in analyzing what is the current situation prevailing in
the market. There are different policies through which PanFry Pizza can analyses competitive
policy and formulate their strategies accordingly.
Market analysis:
The Company has come up with concept of customized sauces and topping over pizza base so to
make it yummy and healthy. Before launching final product in the market, company needs to
investigate market situation first. They need to research about what is the actual demand of pizza
or how many people are consuming pizza on average basis. After analyzing what are the views
of target customer pizza the company can frame policies and use various techniques in order to
accomplish them in an effective manner. It is primarily important for every company to figure
out what are the likes and dislikes of target customer. They also research about whether their
product will be acceptable in the market or not.
P2 Identify tangible and intangible resources that is required in order to launch a new business
venture
The company has come up with concept of customized sauces and topping over pizza
base so to make it yummy and healthy. Before launching final product in the market, company
needs to analyze market situation first. They need to research about what is the actual demand of
pizza or how many people are consuming pizza on average basis. After analyzing what are the
views of target customer pizza the company can frame policies and use various techniques in
order to accomplish them in an effective manner. It is primarily important for every company to
figure out what are the likes and dislikes of target customer. They also research about whether
their product will be acceptable in the market or not.
In order to start new business venture in an effective manner there is a huge requirement of
adequate resources that help company in achieving business objectives within stipulated time
frame. There are different options which company can provide growth to its business but it is
necessary that it must be utilized in a best and proper manner. Resources can be classified into
two categories one is tangible other is intangible.
Tangible resources: Such types of resources can be touched or seen like plant and machinery,
manpower, equipment’s, land etc. are included in the list of tangible resources. In addition to that
there is large requirement of financial resources as well which can be fulfilled through various
financial institution, individual donor etc. The main purpose while starting new business venture
is to utilize resources in a cost-effective and optimum manner. PanFry Pizza needs tangible
resources in the form of workforce, land, machinery etc.
Intangible resources: These resources cannot be seen or touched they play key role in attaining
business objectives in an effective manner. Some of the example of intangible resources are
trademark, patent, goodwill, working environment etc. All these resources possess an impact on
overall working and operation of business firm (Evers and O’Gorman, 2011). PanFry Pizza has
taken into account all these factors and tries to utilize economically. For example: During their
initial days, there are not many workers in the company. At that time, it is important to perform
activities in such a manner that leads to create good working environment which help in
motivating and encouraging workers to work incredibly hard. This result in attracting other

candidates in the company. In addition to that, it also assist in improving the image of the
company in the marketplace
TASK 2
P3 Produce a Business Proposal
It is not easy to start a new business venture as it requires proper planning regarding all
future activities in a systematic manner. The possibility of business idea can only be come true if
the entrepreneur is having adequate amount of funds in order to carry out their idea in an
effectual manner. Therefore, before starting new business venture it is important to frame
business proposal in which all activities related with idea is planned and formulated properly
(Ghimire and et. al., 2015). Business plan in setting code and conduct and increases the
possibility of attaining better results. There are various aspects that needs to be taken into
consideration while preparing business proposal such as marketing strategy, allocation of
resources etc. Business proposal for PanFry Pizza is discussed below:
Executive summary: Initially, the entrepreneur needs to figure out what is actually missing in
the society or what can be delivered in more innovative. Large number of ideas generated in the
mind of entrepreneur when they start to launch new business venture. However, all these ideas
cannot be transform into reality because only few of them are actually practically possible. Thus,
entrepreneur needs to select the most profitable idea that is feasible in terms of converting it into
reality. In order to overcome this situation, entrepreneur usually prepared executive summary of
their selected idea. This assist them in knowing what are the important respect that needs to be
taken into account while establishing new business venture. If bridges the gap between what
entrepreneur thinks and how to accomplish it.
Identify product and services: Customers are king of market. The main objective of every
company whether small or large is to fulfill customer requirement in an effective manner by
providing goods and services as per their actual needs and requirement. Basically at this stage,
entrepreneur think about goods and services that they are going to launch or introduce in the
market. There is some specific reason behind this idea. PanFry Pizza analyze the market and
their customers so as to determine what are the current likes and dislikes of customer. By doing
market analysis, the company got to know that some customer avoid pizza because of their
topping and sauces. Nowadays people are becoming more health conscious so taking the
advantage of this, the company needs to provide such provide that meet this criteria in an
effective manner. For example: The company has started serving pizza with customized sauces
and toppings. Every customer is having different taste and liking. By providing them such option
company can fulfill customer likes and dislikes in a constructive way.
Developing marketing strategies: It is one of the most important component in order to make
business grow and develop in the market. There are many strategies that needs to be taken into
account by entrepreneur for marketing their product or services. Some of the trendy marketing
sources includes online advertisement, social networking site, food blogger, food application etc.
PanFry can chose any among them in order to promote its product or services among customers
(Ke and et. al., 2015). They can also promote their product or services through TV advertisement
as well so as to seize the attention of older people. Being a new business, the company does not
have adequate amount of fund. Therefore, they are required to choose most effective promotional
tool that is less costly but highly effective such as social networking sites, food blogger,
television advertisement etc.
Set up financial plan: Finance can be considered as the life blood of any organization. The

entire operation and activities of business depend upon the availability of Finance. Adequate
amount of fund is required in order to carry out business operation in an effective and efficient
manner. There are various sources through which company can arrange sufficient fund that is
initially required to establish new business venture. It includes bank, creditors, angel investors
etc.
P4 Skills and capabilities required to start new business venture
There are various skills and capabilities that are required to launch a new business
venture. Some of them as discussed below:
Decision making skills: An entrepreneur should have effective decision making skills so that
they can make decision it quick manner. With the help of the skill, entrepreneur can exploit the
opportunity prevailing in the market in an effectual manner (Khan and et. al., 2015).
Financial management: Management of Finance is important for running business operation
successfully. In case of shortage of funds, activities cannot be carried out properly. So it is
primarily important to manage fund in appropriate manner.
Communication skills: Great communication skills help in building strong relationship with
employees. It is necessary to select to effective communication channel so that message can
transfer conveniently.
Strategic planning skills: It is in imperative skill that every company requires. With the help of
the skill, entrepreneur can formulate effective strategies that help them accomplishing business
objectives within the time frame.
Problem solving skills: There are various problems that takes place in every business. These
impact organizational working and culture. Therefore, it is essential for an entrepreneur to have
good problem solving skills which help them solving issues in an effective manner.
TASK 3
P5 Different promotional activities to support the launch of new business venture
There are different promotional channels that needs to be taken into account by company
in order to promote their product in the market and communicate its benefits among target
customer so that business objectives can be meet appropriately. It refers to the set of activities
that and mainly used by companies in order to advertise its brand value. For promoting business,
PanFry Pizza needs to conduct a marketing campaign in order to seize the attention of customer
and attract them towards their products. Some of the promotional activities that has been used by
company are discussed below:
Advertising: It is one of the most common and widely used method in order to improve the
brand value of company. It help in effectively reaching to large number of customer buy
communicating message to them through radio, television and newspaper.
Sales promotion: This promotional method is normally used by companies in order to stimulate
its sales in the market. The company offer certain percentage of discount on the MRP of the
product so as to attract the customers. It help the company in gaining high competitive advantage
over other rivals (Liao and et. al., 2016).
Personal Selling: The traditional way of promoting product or services in the market is through
personal selling. Sales manager of respective firm get in touch with customer or have face to face
interaction with customer where they brief about their product and make them tested by buyers.
For gaining customer loyalty and enhancing public relations, PanFry Pizza is using personal
selling method.
Online marketing channels:

Social media: In today's era, it is the most effective promotional channel to promote company's
product and services. This channel assist in increasing the sales figure of company in short span
of time.
Pop up advertisement: It is another popular way of promoting product in the market and put
great psychological impact on consumer mind set or thinking.
P6 Development of promotional activities plan for launching new business venture
Series of steps included in development of promotional activities plan which are
discussed below:
Product analysis: Organization must be aware of their products that they are going to offer in
market (Paradkar, Knight and Hansen, 2015). They need to critically analyze the product before
investing in it. For example: PanFry Pizza needs to identify current and forecast future growth
for their product before investing in it.
Market Analysis: It is important to determine the current market trend as it directly influence
profitability and sales of the company. The company needs to figure out current likes and
dislikes of customer regarding their product. Assessment of external and internal factor also
needs to be done.
Financial analysis: Before launching any business venture, it is important adequate amount of
finance so that all business activities and operation can be carried out smoothly. The company
needs to set budget for each and every activity so that it can be accomplished effectively.
Activities considered at the time of launching new business venture:
Strategic Positioning: While launching a new product in the market, company needs to analyze
its strategic position in the market and formulate plans and strategies accordingly. In order to
take effective decision, the company must analyze the strategic position of competitive firm is
well.
Web Presence: The Company needs to make their own website and also introduce online
delivery system that help in attracting large number of customer.
Digital PR and partnering: Some of the digital tools like social media, blogger pages are used by
business entity for increasing its market presence (Paudel, Xiao and Yan, 2012). It also help in
increasing the popularity of their products.
TASK 4
P7 Produce detailed monthly cash budget for business
Jan – may
Year 2017 Jan Feb Mar April May
Food Sales 37,820 38,147 40,103 42,060 43,038
Beverage Sales 18,650 13,650 14,349 15,049 15,399
GROSS SALES 56,470 51,797 54,453 57,109 58,437
Cost of Sales

Food 14,525 12,589 13,234 13,880 14,202
Beverage 6,515 3,412 3,587 3,762 3,850
TOTAL COST OF SALES 21,040 16,001 16,821 17,642 18,052
GROSS PROFIT 35,430 35,796 37,631 39,467 40,385
General and Administrative
Employee Salaries 14,118 12,949 13,613 14,277 14,609
Management Salaries 3,400 3,400 3,400 3,400 3,400
Employer Taxes/Benefits (15% Wages) 2,102 1,962 2,042 2,121 2,161
Workers Compensation (6% Wages) 1,051 981 1,021 1,061 1,081
Advertising 800 800 800 800 800
Bookkeeping 150 150 150 150 150
Credit Card Charges (1%) 565 518 545 571 584
Insurance 250 250 250 250 250
Legal and Professional Fees 100 100 100 100 100
Misc. Other 250 250 250 250 250
Office Supplies 175 175 175 175 175
Rent 3,200 3,200 3,200 3,200 3,200
Repair and Maintenance 300 300 300 300 300
Small Equipment 200 200 200 200 200
Telephone [phone]
Garbage 200 200 200 200 200
Utilities 1,200 1,200 1,200 1,200 1,200
Total Gen. and Admin. (Fixed) 28,210 26,785 27,595 28,405 28,810
NET PROFIT OR LOSS 7,220 9,011 10,036 11,062 11,575
SBA Loan 3,582 3,582 3,582 3,582 3,582
Cash Flow After Financing 3,638 5,429 6,454 7,480 7,993

Draw 4,000 4,000 4,000 4,000 4,000
Net Cash Flow (362) 1,429 2,454 3,480 3,993
Accumulated Cash Flow 1,066 3,521 7,000 10,993
Average Daily Sales / 22 days 2,567 2,354 2,475 2,596 2,656
June – Dec
June July Aug Sept Oct Nov Dec YTD 2013
43,527 44,016 44,505 43,038 41,570 35,213 37,658 4,90,694
15,574 15,749 15,924 15,399 14,874 12,600 13,475 1,80,694
59,101 59,765 60,429 58,437 56,445 47,812 51,132 6,71,388
-
14,364 14,525 14,687 14,202 13,718 11,620 12,427 1,63,973
3,894 3,937 3,981 3,850 3,719 3,150 3,369 47,026
18,257 18,463 18,668 18,052 17,437 14,770 15,796 2,10,999
-
40,844 41,303 41,762 40,385 39,008 33,042 35,337 4,60,389
- - - - - - - -
14,775 14,941 15,107 14,609 14,111 11,953 12,783 1,67,847
3,400 3,400 3,400 3,400 3,400 3,400 3,400 40,800
2,181 2,201 2,221 2,161 2,101 1,842 1,942 25,038
1,091 1,100 1,110 1,081 1,051 921 971 12,519
800 800 800 800 800 800 800 9,600
150 150 150 150 150 150 150 1,800
591 598 604 584 564 478 511 6,714

250 250 250 250 250 250 250 3,000
100 100 100 100 100 100 100 1,200
250 250 250 250 250 250 250 3,000
175 175 175 175 175 175 175 2,100
3,200 3,200 3,200 3,200 3,200 3,200 3,200 38,400
300 300 300 300 300 300 300 3,600
200 200 200 200 200 200 200 2,400
150 150 150 150 150 150 150 1,800
200 200 200 200 200 200 200 2,400
1,200 1,200 1,200 1,200 1,200 1,200 1,200 14,400
29,013 29,215 29,418 28,810 28,203 25,570 26,582 3,36,617
-
11,831 12,087 12,344 11,575 10,805 7,472 8,754 1,23,771
3,582 3,582 3,582 3,582 3582 3,582 3,582 42,984
8,249 8,505 8,762 7,993 7,223 3,890 5,172 80,787
4,000 4,000 4,000 4,000 4,000 4,000 4,000 48,000
4,249 4,505 4,762 3,993 3,223 (110) 1,172 32,787
15,242 19,747 24,509 28,501 31,725 31,615 32,787
2,686 2,717 2,747 2,656 2,566 2,173 2,324
Above mentioned budget illustrates expenses of business throughout the year.
P8 Suggest an appropriate legal form for the venture
For performing business operation and activities in a proper manner, a company must
have appropriate legal structure.
The most suitable legal structure for PanFry Pizza is Partnership.
Partnership: It is a partnership of 3 people who have invested their capital equally. It is a kind
of legal form of business all partners enjoys equal share in profit and loss. In fact they all are

responsible for carrying out business activities and equally working in the firm. PanFry Pizza is
running their business under Partnership Act 1932. It illustrates that each of their partner is
having equal liability towards bearing loss and shares equal responsibilities as well (Sebastiani,
Montagnini and Dalli, 2013).
The main reason behind choosing this legal form is new business venture cannot be handled
effectively by one single person. Moreover it requires huge capital which is almost impossible
for a single person to manage all funds on their own. But in case of partnership, all partners
equally invest money which help in carrying out business activities in an effective and efficient
manner. In addition to that, partners also pool resources and have equal share profit and loss.
CONCLUSION
From the above mentioned report it can be conclude that for establishing new business
venture in the market an entrepreneur must have innovative idea that must be practically feasible.
There are others factors that needs to take into account by entrepreneur like market analysis,
customer analysis, allocation of resources, availability of adequate etc. Availability of all these
factors results in executing new business venture in an effective and efficient manner. For
promoting their business venture, company can use various promotional channels such as sales
promotion, social media network etc. that help in attracting large number of customers.

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