Launching a new business venture INTRODUCTION

Launching a new business venture INTRODUCTION 1 TASK 11 P1 Investigation of new venture for identifying specific target market 1 P2 Specific tangible and intangible resources2 TASK 23 P3 Credible proposal to launch a new venture 3 P4 Skills and capabilities that are essential for launching a new venture and development at the same time 4 TASK 35 P5 Various promotional activities and channels that are essential for launching a new venture5 P6 Appropriate promotional activities for launch and pre – launch6 TASK

Launching a new
business venture

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Investigation of new venture for identifying specific target market......................................1
P2 Specific tangible and intangible resources.............................................................................2
TASK 2............................................................................................................................................3
P3 Credible proposal to launch a new venture............................................................................3
P4 Skills and capabilities that are essential for launching a new venture and development at
the same time...............................................................................................................................4
TASK 3............................................................................................................................................5
P5 Various promotional activities and channels that are essential for launching a new venture5
P6 Appropriate promotional activities for launch and pre – launch...........................................6
TASK 4............................................................................................................................................7
P7 Monthly cash budget..............................................................................................................7
P8 Suitable legal form for the venture to elucidate why it has been chosen...............................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
As per the changes in course of time, firms are getting emerge so as to implement
successfully in market areas. Due to globalisation, small firms get a chance to expand their
functional and operational areas to grow over marketplace. In UK, there are several small
business entities are being opened in order to provide innovative products to people at lower
rates. Beside this, technological advancement also supports in improving quality of work life; it
results attaining and retaining customers for long term period. While launching any new venture,
entrepreneurs are required to consider several factors like – planning, operating time, start up
capital and team size; through which all working activities will be performed in well being
manner (Datta, Mukherjee and Jessup, 2015). The present assignment is based upon Turn a
Table cafe which is established in local streets of London so as to provide fast food services to
people. On the other hand, the report will be describe identification of target market in which a
firm is going to be expand. Readers will also come to know about intangible and tangible
resources. A cash budget will be prepared for pre-launching of business.
TASK 1
P1 Investigation of new venture for identifying specific target market
The mentioned enterprise, Turn a Table cafe is a newly established venture in UK with an
aim to deliver effective and delicious fast food services to people. Its attractive and innovative
interior is enough able to attain and retain customers towards it. Inside the cafe people feel piece,
there is place where they can easily spend time with friends, release stress level and reading
novels with a sipping of coffee and other beverages. Before launching their business, Turn a
Table cafe recognise interest of local communities of Queens street and after that prepare action
plans. Fusilli pasta and cafe Mocha are the special offerings of the restaurant, additionally other
products of Tum a Table cafe are – breakfast pizza, avocado toast & Poached eggs, garlic bread,
oatmeals, pizza, burger, chocolate shots etc. There is also a gaming zone where individuals and
kids enjoy games if they want, but for this management takes extra charges.
Thus, it can be said that Turn a table cafe has come up with variety of new ideas and
innovations by making experiments in food recipes with a motive to deliver best fast food and
beverages to people. The unique nature of service helps the firm to attract more and more people
from target market and increase sales at the same time (Ghimire and et. al., 2015). Following are
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the elements which should be considered while launching any venture in target market, such are
stated as under: -
Identification of target market – Its a procedure through which entrepreneurs can assess
most profitable areas so as to launch their products and services at there. Basically, segmentation
of target markets are based upon several elements like – age, gender, interest, values, level of
education and income level of people. Sometimes, it is quite difficult for business owners to
evaluate all these aspects and provides products accordingly. Although, the target market of Turn
a table cafe and restaurant is focused on adults, kids, teenagers as well a families; and
accordingly there has seen set different different sections which people can avail as per their
comfort zone. Apart from this, the restaurant is also tend towards middle class people as they can
easily enjoy all food services at reasonable prices.
Competitive analysis – It is one of the indispensable factor which should be taken into
account by entrepreneurs on ore before introducing their new business. Competitive analysis
enables people recognise all those internal and external components which has a vast impact on
firm's sales and working activities (Ke and et. al., 2015). Turn a table cafe has many large
competitors which have great brand value, i.e. Cafe coffee day, Starbucks etc.; usually
customers' prefer to go those places which have strong market goodwill. Thus it is essential for
the mentioned restaurant to provide much qualitative and effective food items which are able to
attain wide range of customers.
P2 Specific tangible and intangible resources
Turn a Table cafe offers best varieties of coffee in local streets of London; Queen Street
is place where vast amount of people comes everyday. To make their firm more effective and
efficient, management uses high quality of food ingredients which are involved to make coffee.
The small business buys coffee beans from African countries. Apart from this, certain resources
also have to be needed for entire maintenance of operations in cited restaurant, such as - Tangible resources – It involves physical resources, i.e. equipments, plants, machineries,
furniture, vehicles, inventory and human resources that can be touched and feel.
(Tangible Vs. Intangible Resources, 2017) Turn a table cafe uses innovative machineries
which gives fast production; it results delivering process also be fast. Apart from this,
furniture of the restaurant is designed by considering space at premium; colour of the
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walls is light which makes them recede in appearance. Small square tables and fold tables
gives flexibility to the layout.
 Intangible resources – It consists lack of a physical form and all the legal factors include
in intangible assets. For instance – patients, copyrights, trademarks, logos of the
respective firm as well as relationship with target audiences. Therefore, it is essential for
entrepreneurs to identify such elements as they help organisations to face all challenges
by ensuring future growth and success. Turn a table cafe is highly emphasised on
generating value added products for customers in order to accomplish its desired
outcomes in a certain time period.
TASK 2
P3 Credible proposal to launch a new venture
Formulation of a proposal for new business venture helps it to get rid out from all flaws
or threats and aids to accomplish objectives in the best possible manner.
Proposal of a new business venture: -
Executive summary Turn a table cafe is a small business which is implement by an
individual with an aim to earn profits by delivering some kind of fast
food services to people. Basically, its a Complimentary firm because
there is no shop of beverage products in Queen street.
Company description Turn a table cafe provides various products and services, like – pastries,
coffee, sandwiches, deserts, cock, baked cookies, cakes, Chinese and
Italian food items as well. Although, the restaurant is new in market and
located in local street of London; it builds in 3000 sq. feet. The venture
is focused on simple and original food from local, seasonal ingredients,
they kept to use organic materials for whole interior, (wood. Plywood
and kraft paper) and natural color so as to exemplify the theme. As per
the name, table and chairs in the cafe can be easily folded and turned
out.
Marketing strategy In order to implement business in systematic way and ensure high
market, Turn a table cafe requires to adopt an effective marketing
strategy. In this manner, marketing mix should be consider by the
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management; it involves four elements, such as – product, price, place
and promotion(Ke and et. al., 2016). For example- firm can promote
itself through social media channels.
Start up expenses
and capitalisation
At last, to running a business smoothly entrepreneurs have to keep an
ample amount of capital that helps to starts a business effectively. It
involves different costs – operational costs, marketing costs etc. The
estimated budget of Turn a table cafe is £2,05,300 to £3,00,100.
P4 Skills and capabilities that are essential for launching a new venture and development at the
same time
Individuals who are willing to start their own business have some potentials and spirit as
this will help them to face all market challenges. These skills and strong knowledge level help
people to make imperative strategies and policies so as to accomplish organisational goals and
objectives in a certain time of span. Marketing and customer service – It is essential for entrepreneurs to have strong
marketing knowledge so as grab better future opportunities from target market. The
person have to know which kind of marketing strategies are acquired and implemented in
order to gain high competitive edge. In Turn a Table cafe, business owners uses different
marketing tools or tactics to attract more and more customers. Apart from this,
entrepreneurs also have to listen customers' complaints and trying to resolve them as soon
as possible so as to deliver effective customer services (Khan and et. al., 2015). Time management – Completion of all tasks and activities on or before their given time
period, is one of the great ability of entrepreneurs; it shows that the person knows how to
manage entire working processes. Time management abilities also assistive in improving
efficiencies of the firm as well as it will also deliver a defensible advantage by having a
strong understanding of external competitors. Financial management – Having adequate finance or capital is required for smoothly
conduction of a business organisation in a systematic manner. It enables to purchase new
machineries and further resources which are liable for generating qualitative products and
services. In order to determine different sources of finance, firms should keep good
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relations with stakeholders and investors who can give its enough capital to run business
activities smoothly. Communication skills – Free flow of communication is assistive for business entities as
employees can share all ideas or thoughts with their employees so as to determine best
market opportunities. Having good communication skills also helps in managing healthy
and positive working environment at workplace. Apart from this, effective interaction
with customers is also beneficial in recognising their needs and desires in the best
possible manner. Leading and motivation skills – Entrepreneurs have ability to influence employees as
they can complete all tasks and activities in a proper manner. It means, the persons
should be able to lead, motivate or inspire others it delivers firm's vision and mission. In
Turn a table cafe, business owners delegate roles and responsibilities to staff members as
their skills and capabilities (Koirala, and et. al., 2016). As a successful entrepreneur, the
is depended on others to get beyond very early stage in a business.
 Ethics – It is one of the most important skill of an entrepreneur; the requires to deal
people with respect, truthfulness, integrity and fairness. Thus to build a well satisfied,
happy and committed team if manager deal with his employees, customers and suppliers
in a shabby manner.
TASK 3
P5 Various promotional activities and channels that are essential for launching a new venture
Promoting a procedure which helps firm to deliver its messages to target audiences; it
enhances sales and profitability of the company. Effective and attractive promotion aids the cafe
to capture customers' towards its food items and retain them for long term period. In order to
promote itself in market, Turn and Table Cafe consider digital media channels because in this
modern aura everyone has a reach to internet. It helps the restaurant to arrive wide range of
buyers at global level. Apart from it cafe required to conduct an marketing campaign so on the
basis of which they target to large audiences and aware them regarding all the products and
services provided by them. Following are the main events of promotion and various channels
that has been used by turn and table cafe are describe below:- Advertising:- This mode is consider as most effective ways through which organisation
can aware customers regarding all the new products and services which help in enhancing
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the brand image of company (Kuratko and Hoskinson, 2016). Apart from it, they are
using different modes like newspapers, radio, television and various internal sources
through which they promote regarding all the new innovation they made in respect of
their services. Sales promotion:- This is one of the essential mode through which they promote
regarding the sale of new products and services and for this they using different medium
like roadshows, exhibition and fairs and this will help in gaining competitive advantages
over competitors. Direct marketing:- This is one of the important task under which through prospectus,
email and internet marketing through which they can directly reach to large number of
audiences. Apart from it direct marketing is consider as successful methods through
which they communicate to large number of audiences through public announcements
and other confirmations also (Liao and et. al., 2016).
 Personal selling:- It consist two way communication with customers and company.
Under this organisation fully believes to interlinked with audiences in order to sell all the
products and services directly to target audiences. Apart from it personal selling consider
as that component which is very expensive under which proper planning and marketing
strategy has been prepared to grab external opportunities and for establishing long term
customer relationship.
P6 Appropriate promotional activities for launch and pre – launch
Promotion consider as helpful measure for turn and table cafe that lead to increase in
popularity as well as enhance the brand image of organisation also. Further company require to
formulate better framework and planning in which promotional activities are conducted in order
to reach to large numbers of audiences and establish better relationship with them. Apart from it
there are different types of promotional activities which has been conducted at the time of
introducing any product in market which describe below:- Product analysis:- Under this stage company must have knowledge regarding the
products they are going to launch in market among target customers. Apart from it, they
require to observe all products services in which investment is needed. For example turn
and table cafe require to understand the future growth of their products and analyse the
way through which it beneficial for association (Pan and et. al., 2016).
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 Market analysis:- This can be done by studying both the macro and micro factors of
environment which affect the growth and profitability of firm. Apart from it company
require to scan all the major changes coming in market in respect of innovation made by
rivalry in respect of goods and services in which they are dealing. Apart from it market
size, structure, share, product line and number of rivalry in which they have to deal with
and find such techniques through which they take rational managerial decision making.
 Financial base:- If the organisation has solid finance base then it is easy for them to
achieve all the goals and objectives in effective manner. Those businesses which are
small require to prepare proper framework for budget in which they have to decide at
which activities they have to spend amount that enable them to earn profits in future.
Investors like angel bankers, financial institutions and creditors arrange funds for
business properly.
Components managing while launching products:- Strategic positioning:- when the product are officially launch in the market they require
to prepare strong strategic policies and tactics after considering rivalry strategies in the
market which allow them to take competitive advantages over competitors. Brand equity:- Turn and table cafe in order to expand their market at global level then
they need to used such mechanism through which they increase the goodwill and brand
value of company (Paradkar, Knight and Hansen, 2015).
 Web presence:- In order to reach to large number of audiences company required to
open their official page on website through which they promote and advertise the
products and services and also avail their goods online by making alliances with various
companies like flip-kart, eBay.
TASK 4
P7 Monthly cash budget
Jan – may
Year 2013 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
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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
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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
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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 3,582 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
The following cash budget states the working of start-up throughout the year.
Pre Launch cash budget
Post launch cash budget
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P8 Suitable legal form for the venture to elucidate why it has been chosen
It is consider as fundamental measure for every business organisation on the basis of
which legal structure of company has been made. Different venture that can start legally are
described below:-
Partnership:- It is an agreement under two or more than two partners come in business
in which all the terms and conditions related to profit loss sharing, capital contribution and
working hours are decided in contract known as partnership deed. Further turn and table cafe is
also partnership form of business in which almost 10 members come in business and start new
cafe. All the responsibility duties are mutually discuss among them and it is also described in
partnership contract also. Apart from it there are three types of association I.e. general
partnership, limited partnership and joint venture which consist of various roles and
responsibilities and all the partners are indulged in different business operations. Therefore it is
important for turn and table cafe to analyse all the external factors and components that affect
their partnership business in term of goodwill and market share.
Therefore, partnership is consider as best form of business in order to start a business
venture because any person does not have individual capacity in financial term in order to start
their own business. In partnership, partners pool their resources so as to provide fund for the
company's start up. On the other hand, sometimes partners split their profits, in case if payouts
are not sync in with each partners' contribution within the venture. Thus, partnership is the best
form to start a business venture because any individual does not have enough capital as they can
began their own business. In partnership, partners pool their resources so as to provide fund for
the company's start up. On the other hand, sometimes partners split their profits, in case if
payouts are not sync in with each partners' contribution within the venture.
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CONCLUSION
From the above discussion, it get analysed that small businesses plays a crucial in growth
and success of an economy. After globalisation, wide range of new ventures has been established
with an aim of earning high profit margins. The report has stated that entrepreneurs need to
determine all areas of market in which it will be performed, a competitive analysis also have to
be made so as to demonstrate other rivals of the firm which have great market value. Apart from
this, several types of tangible and intangible resources which should be also helpful in getting
high competitive edge to firms. A business proposal has been made which outlines business
goals and objectives and describes Turn a Table cafe's whole description. Various skills and
competencies are required, such as – communication skills, project management skills helps
entrepreneur to do all tasks and activities in the best possible manner.
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