Launching a New Venture

This document provides a detailed analysis of launching a new venture, focusing on a coffee shop named Espresso Coffee Shop near Hounslow Central Underground station. It covers topics such as target market analysis, competitive analysis, tangible and intangible resources, skills and capabilities required, promotional activities, and financial projections.

Launching a New
Venture

Table of Contents
Introduction......................................................................................................................................1
PART 1............................................................................................................................................1
P1. Examine new venture and also discover target market and undertake competitive analysis
................................................................................................................................................1
P2. Examine intangible as well as tangible resources which are necessary to be undertaken by
a new venture..........................................................................................................................2
P3. Construct a proposal for launching a new business venture............................................3
M1. Assess a series of methods and techniques for competitive analysis to rationalize how to
achieve competitive advantage...............................................................................................4
M2. Examine the strengths and weaknesses of the new venture and establish areas of risk. 5
PART 2............................................................................................................................................5
P4. Discuss the skills needed for starting a new venture and the way to attain those skills. .5
M3. Discover the variety of skills and capabilities necessary for the launch and significantly
measure how they might be acquired.....................................................................................6
P5. Examine promotional activities & channels for supporting launch and also rationalize the
choice......................................................................................................................................6
P6. Describe a appropriate promotional activity plan for pre and post launch phase............7
M4. Assess an suitable promotional activity plan for both launch and pre-launch................8
P7. Discuss a monthly cash budget for the time of pre launch of venture and the first 12 to 18
months after the launch..........................................................................................................8
P8. Recommend an suitable legal form for business along with essential justifications.....10
M5. Critically assess monthly cash budget presentating one off costs, ongoing costs and
anticipated income post- and pre-launch..............................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

Introduction
The launching a new venture is the process of converting an effective entrepreneurial
opportunity into an venture, it is one of the most essential activity that is carried out by an
individual. A new venture starts with an creative idea that is to be launched in the market
effectively for the purpose of earning profit and satisfying the needs of the community. There are
various steps involved in the process of starting new venture that needs to be considered by the
individual. This report highlights the detained analysis of launch of new venture which is a
Coffee shop named as Espresso Coffee shop near Hounslow Central Underground station.
Offering various types of coffee such as organic and seasonal coffee including excellent quality
of coffee beans around the globe. This report includes the analysis of the target market along
with the tangible and intangible resources needed to starting a business and various skills and
abilities required by the individual is also highlighted. In addition to this various promotional
activity for pre and post launch phase and required budget is also highlighted in this report.
various legal forms required for new business venture is also mentioned.
PART 1
P1. Examine new venture and also discover target market and undertake competitive analysis
“Espresso Coffee shop” is planned to be launched near Hounslow Central Underground
station, will be offering excellent quality of coffee such as organic and seasonal coffee and along
with the great quality of coffee beans around the globe. According to the preference depending
on the seasons the shop will be offering seasonal coffee to its customers keeping the demand and
needs of the customers at the priority list. In order to launch the shop effectively certain factors
and concepts needs to be considered as discussed below:
Target market: The target market chosen segment based on the lifestyle, taste and preference,
income and so on. In case of the chosen venture the target market will be coffee lovers,
millennial group and the group which prefers high quality coffee (Abualbasal and Badran, 2019).
Some of the feature of the target market as chosen base is highlighted below:
Psychographic factors: under this the target market segment is divided on the basis of
their purchasing behaviour, lifestyle as well as income level. The Espresso Coffee shop is
planning to target both middle and high income group.
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Behavioural factors: Under this the market segment is targeted on the basis of their
behaviour, their taste and preferences. As people prefers things according to the seasons so
Espresso coffee shop will be offering coffee according to the seasons.
Competitive analysis: The competitive analysis is an tool used to analysis the competition
available in a particular industry. In order to analyse the competition for the chosen venture the
Porter’s five force analysis is taken into consideration (Bauman and Lucy, 2019).
Porter’s five force analysis: It is one of the essential strategic tool used by the business
organisation used to analyse the competition in the industry, it involves mainly five forces which
helps in analysing the company’s competitive environment. In context to chosen venture the
analysis is highlighted below:
Competitive rivalry: It includes the level of competition present in the market. In case of
Espresso Coffee shop, the venture has to face lot of competition as the level of competition in the
coffee industry is relatively high because of the number of competitors available.
Threat of new entrants: If there are strong barriers on the entry of new firm then it will
create threat for them, in case of coffee industry it is easy for the new firm to enter into the
market. however the chosen venture will face high threat of new entrant because of less barrier in
the industry.
Bargaining power of Buyers: If the number of buyers are less then their bargaining power
will be more. In case of selected venture the bargaining power of the buyer will be high because
of the number of options available so they can easily shift form one brand to another.
Bargaining power of supplier: Under this if the numbers of suppliers are less than their
bargaining power will be high. There are large number of suppliers available from whom
company can buy necessary items.
Threats of substitute: In case of coffee industry the availability of substitute product are
more which will create threat for the venture, company needs to offer unique products in order to
deal with this (Busenit and Lichtenstein, 2019).
P2. Examine intangible as well as tangible resources which are necessary to be undertaken by a
new venture
There are various tangible and intangible resources available which are essentially needed
for the effective launch of new venture as highlighted below:
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Tangible Resources: Some of the essential tangible resources needed by the company are
mentioned below:
Financial resources: This allows in the availability of finance as without the essential
source of finance the venture can not be started.
Human resources: It includes the workforce required to carry out the activities and
operations. In Essence drink the initial requirement is of at least 4 person at the counter and
management, later the hiring will be done according to the growth and development of the
company.
Physical resources: The physical resource includes the raw material, furniture,
installation of machinery in order to carry out all the activities and operations effectively.
Tools and equipments: The essential tools required by the company includes such as
coffee machine, cups, straws and other electronic gadgets and so on
Intangible resources: There are various intangible resources that are required by the company
for the smooth functioning of the work, the intangible resources include brand image, goodwill,
value, patents, trademarks and the most important the customers satisfaction level. All are very
essential part for the growth and development of the company (Delanoë‐Gueguen and Fayolle,
2019). In addition to this safe and healthy work environment, surrounding also needs to be
considered effectively. these factors directly influence the functioning of business and effective
use of all these leads business towards growth and success.
P3. Construct a proposal for launching a new business venture
The effective launch of the business venture required the detailed analysis and design of
the proposal for the launch of the venture into the marketplace. in case of Espresso Coffee Shop
the proposal for this is highlighted below:
Executive summary: The espresso Coffee shop is the new business venture offering excellent
quality of coffee and beans also offering seasonal coffee to the customers. the venture will be
started near the Hounslow Central Underground station as the owner lives in Hounslow Central.
Company description: The espresso Coffee Shop will be started as a small venture offering
extreme quality of coffee according to the seasonal demand to the customers and also offering
excellent quality beans around the globe (Johne, 2018). The target segment of the company is
generally the millennial group and the rich group also the coffee lovers. The main purpose of the
company is to enhance their market size.
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Market analysis: It is very essential to evaluate and analyse the market before starting new
venture as there are various factor available in the market which can directly influence the
functioning of the business. In case of Espresso Coffee Shop, the Porters five force analysis is
taken into consideration in order to analyse the external environment of the company as well as
the SWOT will also be used to analyse the internal market (Kim, 2020).
SWOT analysis: It is one of the essential framework used to analyse the factors available inside
the business. In context to the company the swot analysis is highlighted below:
Strength Weakness
 Providing coffee according to the
season to the customers and
additional services provided by them
will be the strength of the company
 As a new venture not able to find the
required amount of fund can be the
weakness for them.
Opportunity Threat
 With their increasing growth
company can expand their business in
the new market.
 The increasing competition in the
market will create threat for the
company.
Financial projection: the effective financial projection will allow company to use the fund
effectively. it will also help in preparation of budget for the purpose of controlling their expenses
and revenue. This will help Espresso coffee shop to grow and plan their fund requirement
effectively.
Benchmarking: This will help company to evaluate and analyse their current performance and
take required action for the further growth, it will provide company a standard on the which they
have to work to enhance their performance (Kim and Park, 2018).
M1. Assess a series of methods and techniques for competitive analysis to rationalize how to
achieve competitive advantage.
In order to analyse the competitive analysis of the chosen venture the porters five force
analysis is taken into consideration, from this analysis it is analysed that the company will face
high level of competition but company can over come this through offering unique and
differentiated product different from their competitors, also this will help in attracting large
number of customers and gaining competitive advantage in market. Also company can operate in
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the market where there are strong barriers on the threat of new entrant this will help them to
reduce this force. Effective consideration of these forces and implementation of essential
strategy will help company to gain competitive advantage in the market.
M2. Examine the strengths and weaknesses of the new venture and establish areas of risk.
To analyse the internal factors of the company the swot analysis of the company is taken
into consideration, with the help of this analysis it is analysed that the strength of the company is
offering excellent quality of coffee including offering seasonal coffee to the customers which
will help them attract large number of customers and satisfying their needs according to the
seasonal demand (Kuratko and Morris, 2018). However the major risk the company can face is
the not availability of the fund, in order to overcome this company can use various sources of
finance such as venture capital or bank loan.
PART 2
P4. Discuss the skills needed for starting a new venture and the way to attain those skills
It is analyzed that there are various skills as well as qualities are specifically needed for a
new venture in market is given below:
Skills requirement:
Marketing skills: It is considered as one of the important skill which is needed in order to
develop a new venture and make it a success. It help in creating awareness and promoting the
new venture in an effective and appropriate manner (Leković and Berber, 2019). With the help
of this skill, an organization is able to attract large number of customers towards the brand. It is
important for espresso Coffee Shop to have a competent marketing staff so that an online
marketing campaign will be conducted in order to aware people about the new venture which
leads to increase in sales and profitability.
Time management skills: In order to implement each and every activity associated to the
new venture, time is considered as one of the important skills. It helped in optimum utilization of
time in order to conduct both pre and post marketing activities appropriately which leads to
attainment of objectives within given timeframe.
Capabilities:
Team development: It is important for leader to ensure that the whole working is
conducted within the teams as it is analyzed at working in team is more effective as compared to
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the individual working. It is important to have an effective team development skills so that every
activity is implemented properly and effectively. It also has been motivating team members to
put their full potential in order to attain objectives.
The above mentioned skills and capabilities which can be utilized in an optimal manner by
espresso Coffee Shop in order to attain objectives and gain success.
M3. Discover the variety of skills and capabilities necessary for the launch and significantly
measure how they might be acquired
The various skills required by an individual for the smooth launch of the new venture are
marketing skills and time management skills. The marketing skills will allow company to market
their brand and product and services in the market and make consumer aware of their brand this
will them to enhance their brand image and overall performance (Madhu, 2019). Similarly the
time management skills will help in managing and scheduling the work more effectively and
efficiently. The capabilities required for the launch of new venture is the team development, it
will allow to manage and control the team and motivate them towards achieving desired goals
and objectives.
P5. Examine promotional activities & channels for supporting launch and also rationalize the
choice
At the time of introducing new business it is important to conduct marketing activities and
promote the brand effectively. For this, espresso Coffee Shop will use different promotional
channels which are as follows:
Social media campaign: it is considered as one of the effective marketing channel that
help company to reach large number of customers within less time period. There are various
social media tools such as Facebook, Instagram and many more which is used by espresso
Coffee Shop in order to promote the brand Effectively and properly (McLaughlin, 2019).
Pricing strategy: it is important for an organization to set the price strategy of its offerings by
analyzing the price of its competitors and the spending level of its target market. The espresso
Coffee Shop make use of price penetration technique that is maintaining the price low for the
customer. It help in attracting large number of customers and increase customer base level as
well as profitability of organization.
Web based: It is a technique which can be used by marketing managers of an
organization and herein a direct interaction take place among the customer and company. The
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owner of espresso Coffee Shop will make use of this application in order to personally interact
with them and solve their queries. This impact positively on the mindset of customers and help in
maintaining them for longer time period.
From the above discussion, it is said that one of the most effective strategy for promoting
the brand for the chosen venture is social media application as it help in reaching large number
of customers within less time period and also consume less finance of the new start up (Montes
and Olleros, 2019).
P6. Describe a appropriate promotional activity plan for pre and post launch phase
It was analysis that marketing will play an essential role in the pre-launch and various
functions of organisation. It will help in successfully attracting the customers towards the
product of company. In context of Espresso, various activity related to it is discussed below:
Pre-launch- It will define that there are certain activities which are performed by the
entrepreneur in order to effectively launching their new venture which will require an effective
and clear planning and preparations. In context of Espresso Coffee shop, they will conduct
market survey for analyzing the impact of current scenario of COVIDE-19. For effectively
conducting the survey they will use online mode so that they can successfully maintain the social
distancing and do not directly interact with the respondents. They are prepare a questionnaire
which include five questions based on the taste and preferences of their customers. This will help
them to better understand the taste of their customers. This will also assist them in deciding their
future course of menu. Along with this it was also assist in creating the awareness of their
products to their target market by providing them importance in their business.
In context of Espresso coffee shop, they will also use various attractive advertisement and
social media tools which will help them in creating awareness about their products. They are use
Facebook and Instagram for launching their products and post an effective content which will
attract the attention of their customers (Morris, 2021). Other than this they will take help of
various food bloggers who have many followers will help in promoting the brand on their blog
channel. It was consider as a greater tool which will assist the business in creating awareness
about their brand between their target markets.
Launch- This phase will define the final launch of the brand in the target market of
business. After launching their business they will provide various attractive offers to their
customers which will help them to convince their buyers to purchase their coffee. In context of
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selected new venture, they will offer a 50% discount to their repeated customers which will help
them in resale’s and attract more and more customers towards their business. Other than this
good quality and taste of their coffee will assist them in increasing their sales and generate profit.
This will also help in create a positive word of mouth which is also another important
promotional tool for business (Nows, 2021).
Brand development- It is consider as an important activity in which the Espresso coffee
shop is make their full efforts towards growth of their brand image. This is because a good brand
image will help an organisation in achieving higher reputation and greater profitability. In
context of selected new venture they will use various tools which will assist them in creating an
effective and strong image of their products between their target audiences. Such as they will
take regular feedback from their customers which will help them in better understand the
preferences of their customers and they are able to develop effective strategy for further growth.
M4. Assess an suitable promotional activity plan for both launch and pre-launch.
In order to make consumers aware of the product and services as well as brand image the
company will use various promotional activity such as advertisement and social media
marketing, the increasing use of social media will help company to easily interact with the target
customers. in addition to this the Espresso Coffee shop will use the strategy of giving 50%
discount on the product at the time of launch in order to attract customers. and will take regular
feedback of the customers this will help company to build customer loyalty (Nyadu-Addo and
Mensah, 2018).
P7. Discuss a monthly cash budget for the time of pre launch of venture and the first 12 to 18
months after the launch
A cash budget is the analysis of the required cash inflow of the business organisation over
a particular time period. For a new venture the planning of the cash budget is very essential
process as to carry out all the activity and operations without any financial barrier. The company
needs be ensure that there is proper allocation and utilisation of financial resources by the
company so as to achieve desired goals and objectives. The necessary cost such as operating
cost, marketing cost, promotional cost needs to be incurred effectively. In case of the Espresso
Coffee shop the Cash budget for the pre launch and post launch of the company is mentioned
below:
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Pre launch budget:
Post launch cash budget:
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Pre la u n c h c a s h b u d g e t
Pa rti c u la rs Ja n u a ry F e b ru a ry Ma rc h A p ril Ma y Ju n e Ju ly A u g u s t S e p te m b e rO c tob e r Nov e m b e r D e c e m b e r
C a s h re c e ip ts
L oa n from b a n k 5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
In v e s tm e n t 5 5 0 0 0 0 0 0 0 0 0 0 0 0 0
C a s h s a le s 5 0 0 0 8 0 0 0 1 2 0 0 0 8 0 0 0 9 0 0 0 1 5 0 0 0 1 7 0 0 0 1 9 0 0 0 2 1 5 0 0 2 2 0 0 0 1 8 5 0 0 2 2 0 0 0
T ota l c a s h re c e ip ts 6 0 5 0 0 8 0 0 0 1 2 0 0 0 8 0 0 0 9 0 0 0 1 5 0 0 0 1 7 0 0 0 1 9 0 0 0 2 1 5 0 0 2 2 0 0 0 1 8 5 0 0 2 2 0 0 0
C a s h p a y m e n ts
F ix e d c os t
In te re s t on loa n 3 0 0 0 3 0 0 0 3 0 0 0 3 0 0 0 3 0 0 0 3 0 0 0 3 0 0 0 3 0 0 0 3 0 0 0 3 0 0 0 3 0 0 0 3 0 0 0
In s u ra n c e 1 5 0 0 0 0 1 5 0 0 0 0 0 1 5 0 0 0 0 0
R e n t 8 0 0 8 0 0 8 0 0 8 0 0 8 0 0 8 0 0 8 0 0 8 0 0 8 0 0 8 0 0 8 0 0 8 0 0
S a la ry to e m p loy e e s 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0
V a ria b le c os t
Ma te ria l c os t 1 8 0 0 8 0 0 4 5 0 9 0 0 5 0 0 6 5 0 7 0 0 6 1 0 8 5 2 5 4 0 8 0 0 4 5 0
L a b or c os t 2 0 0 8 0 7 4 8 0 9 0 8 5 7 8 5 0 5 5 6 5 8 0 9 0
A d v e rti s in g c os t 4 5 0 9 0 4 0 8 0 9 0 1 5 2 0 2 5 3 0 4 5 4 0 6 0
C os t of b orrowin g 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
T ota l c a s h p a y m e n t 1 7 9 5 0 4 9 7 0 4 5 6 4 5 0 6 0 6 1 8 0 4 7 5 0 4 7 9 8 4 6 8 5 6 4 3 7 4 6 5 0 4 9 2 0 4 6 0 0
Ne t c a s h s u rp lu s /d e fic ie t ( A-B ) 4 2 5 5 0 3 0 3 0 7 4 3 6 2 9 4 0 2 8 2 0 1 0 2 5 0 1 2 2 0 2 1 4 3 1 5 1 5 0 6 3 1 7 3 5 0 1 3 5 8 0 1 7 4 0 0

From the above cash budget analysis it is analysed that the inflow and outflow of the cash
is effectively which will help in the smooth launch of the new venture into the market
effectively, from the above cash budget analysis it is analysed that the situation is quite
appropriate for the launch of new venture into the market for the chosen venture (Roberts and
Lall, 2018).
P8. Recommend an suitable legal form for business along with essential justifications
There are different legal forms for business available which can be used by the business
organization in order to form an suitable legal entity, for the success and growth of the business
it is very essential for the business to chose appropriate legal form according to the nature of the
business. The various legal form of the business available are highlighted below:
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Sole proprietorship: The first form of legal entity is the sole proprietorship, this is the type
of entity that is owned and managed by the single individual, it is started with an innovative idea
and to convert their innovative idea into the real business entity. These are started with small
amount of capital, managed and controlled by the single entrepreneur. He is the only person
responsible for all the profit and risk occurred.
Partnership: Another type of the legal form that can be taken into consideration is the
partnership, it is the type of legal entity which is formed by the mutual agreement between two
or more partners. All the activities and responsibility under this are mutually divided and
managed as well as carried out according to the partnership deed. Even the profit and loss
occurred in the business is equally divided among the partners according to the partnership deed.
It is one of the most convenient legal form that can be formed if there is mutual trust among the
partners but any kind of misunderstanding among the partners will lead to the loss in the
company. So all the roles and responsibility needs to be carefully stated also the share of profit
and loss needs to be mentioned before starting this type of business entity (Sonbol, 2018).
Limited liability company: The another type of the legal entity is the limited liability
company, these type of company are started with limited amount of capital, these ,kind of
companies provides protection against the legal liabilities, the owner of the company is not
himself liable for the debts as they do not offer any personal collateral. These kind of companies
mostly involves limited liability.
From the above analysis, the sole trader is one of the most suitable legal form as it
involves less amount of capital to start the business, and the owner himself is responsible for
managing and controlling all the business activities and operation, as well as responsible for all
the profit and rewards incurred in the business. in addition to this the owner requires small
amount of investment for these kind of ventures even the competition level is low as they are
generally operated in the local community itself. The chosen business venture which is Espresso
coffee shop is also a Sole proprietorship business venture (Wright, 2019).
M5. Critically assess monthly cash budget presenting one off costs, ongoing costs and
anticipated income post- and pre-launch.
The analysis of monthly cash budget showing the budget estimate of pre launch and post
launch will help company to effectively plan their budget, the effectiveness of the inflow and
outflow of the cash will help company to effectively launch the venture, in addition to this the
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situation is also suitable as analysed from the inflow and outflow of the cash which will help in
the effective launch of the chosen venture (Yi, 2020).
Conclusion
From the above report it can be concluded that converting an innovative and creative idea
into an effective business venture helps an individual to grow and become successful, the launch
of new venture is one of the essential activity for an individual to grow in the competitive
environment. This report is divided into two parts the first part highlights the detailed analysis of
the steps that needs to be considered to launch a new venture such as the analysis of the market
using porters five force model, and the various tangible and intangible resources used. And the
second part highlights the skills and capabilities required and the promotional activity that can be
used to make consumers aware of the product and services during their pre launch and post
launch. In addition to this it is also analysed that it required large amount of budget to start the
venture through budget analysis and also requires the legal forms for starting the business.
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References
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Abualbasal, A.M. and Badran, R.E., 2019. STUDENTS'ATTITUDE TOWARDS
ENTREPRENEURSHIP AT PRINCESS SUMAYA UNIVERSITY FOR
TECHNOLOGY. Journal of Entrepreneurship Education, 22(1), pp.1-19.
Bauman, A. and Lucy, C., 2019. Enhancing entrepreneurial education: Developing competencies
for success. The International Journal of Management Education, p.100293.
Busenitz, L.W. and Lichtenstein, B.B., 2019. Faith in research: Forging new ground in
entrepreneurship. Academy of Management Perspectives, 33(3), pp.280-291.
Delanoë‐Gueguen, S. and Fayolle, A., 2019. Crossing the entrepreneurial Rubicon: A
longitudinal investigation. Journal of Small Business Management, 57(3), pp.1044-1065.
Johne, F.A., 2018. Industrial product innovation (Vol. 21). Routledge.
Kim, D., 2020. Internet and SMEs' internationalization: The role of platform and
website. Journal of International Management, 26(1), p.100690.
Kim, Y.K. and Park, S.T., 2018. Effects of Absorptive Capacity on Technology Innovation and
Commercialization Capacities and Management Performance. Journal of the Korea
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educators and researchers. Entrepreneurship Education and Pedagogy, 1(1), pp.42-60.
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Madhu, A., 2019. Ideation to Incubator Evolving Incubators. Splint International Journal of
Professionals, 6(3), pp.48-55.
McLaughlin, E., 2019. The Role of Emotional Intelligence and Self-Efficacy in Developing
Entrepreneurial Career Intentions. Journal of Higher Education Theory & Practice, 19(7).
Montes, J.O. and Olleros, F.X., 2019. Microfactories and the new economies of scale and
scope. Journal of Manufacturing Technology Management.
Morris, M.H., 2021. Poverty and entrepreneurship in developed economies. In World
Encyclopedia of Entrepreneurship. Edward Elgar Publishing.
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Nows, D., 2021. Supporting Rural Entrepreneurship with Legal Technology. New York
University Journal of Law & Business.
Nyadu-Addo, R. and Mensah, M.S.B., 2018. Entrepreneurship education in Ghana–the case of
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Roberts, P.W. and Lall, S.A., 2018. Observing acceleration: Uncovering the effects of
accelerators on impact-oriented entrepreneurs. Springer.
Sonbol, D., 2018. Women entrepreneurs in Saudi Arabia: Creative responses to gendered
opportunities. In The Palgrave Handbook of Creativity at Work (pp. 361-384). Palgrave
Macmillan, Cham.
Wright, M., 2019. Temporality and Collaboration in Entrepreneurial Ownership and
Finance. The Oxford Handbook of Entrepreneurship and Collaboration, p.17.
Yi, G., 2020. From green entrepreneurial intentions to green entrepreneurial behaviors: the role
of university entrepreneurial support and external institutional support. International
Entrepreneurship and Management Journal, pp.1-17.
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