Launching a New Venture: Coffee Shop Business Proposal

Launching a New
Venture

Table of Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1) Explain new business venture also identify target market and competitive analysis.........................3
P2) Tangible and intangible resources necessary for launching a new venture........................................5
P3) Develop a proposal for launching a new venture..............................................................................6
TASK 2.......................................................................................................................................................7
P4) Discuss skills and capabilities which are required for starting a new business..................................7
TASK 3.......................................................................................................................................................8
P5) Discuss different promotional activities & channels for supporting launch......................................8
P6) Develop necessary promotional activity plan for both pre launch and post launch...........................9
TASK 4.....................................................................................................................................................10
P7) Develop an itemized cash budget on monthly basis related to pre launch and 12 to 18 months
preceding of launch...............................................................................................................................10
P8) Suggest an appropriate legal form for business along with necessary justifications........................14
CONCLUSION.........................................................................................................................................16
REFERNCES............................................................................................................................................17

INTRODUCTION
In present time, individuals are more inclined towards starting their own venture. They
wish to do something of their own by making full utilization of own potential. Nowadays, there
is extensive competition is prevailing in the market place. So, it is important to undertake
detailed market research for starting a new venture. It is not easy to start as well as run a new
venture as it requires huge time, investment and skills to run business in smooth manner. It is
necessary to have an idea before starting a new venture. The idea needs to be different so that
new venture can sustain in market place for longer duration. In addition to this, there is
requirement to arrange necessary resources, funds so that new business can be operated in an
efficient manner (Cowden and Young, 2020). In the present report a new venture which is coffer
shop named as Beans café is going to start within UK. It will provide range herbal and organic
coffee as per the shift in requirement of customers in current time. The present report comprises
detailed overview of new venture along with target market. Here, different tangible and
intangible resources which are required to start and run a new venture have also been included in
report. Further, it covers a proposal related to pre launch and post launch activities. In addition to
this, different skills and competencies required for running a new business enterprise are also a
significant part of following report. It includes various promotional activities followed by a
proper promotional plan for pre launch and pots launch. Lastly, a suitable legal form for current
business venture has been also covered in the following report. Moreover, new business venture
is crucial and need to undertake to earn substantial profit margin in market place significantly.
TASK 1
P1) Explain new business venture also identify target market and competitive analysis
Beans coffee cafe is a new venture which is related with food and beverage industry and
going to launch organization within UK. It offers different varieties of coffee such as herbal,
organic as well as flavored coffee to customers. In addition to this, they take care about interiors
so that visitors get an over whelming experience. They have designed a library at coffee shop
where customers can also enjoy reading while enjoying coffee. There is separate section for
games also where customers can enjoy indoor games. In addition to this, beans coffee cafe also

arranges different kinds of programs such as poetry, signing and more. These activities are
helpful and play a crucial role in retaining customers for longer period of time.
Target market: It refers to the group of people to whom an organization wants to sale products
& services. Here, target market needs to select with due consideration after considering ample of
factors such as cost, profit, demand and more. In present scenario, beans coffee café targets to
youth segment (Hanson, 2017). Due to this, they have selected location near to educational
institutions so that more number of customers visits to cafe. It is stated that they are offering
range of services along with coffee for gaining attention of target customers.
Competitive analysis: There is extensive competition is present within food and beverage
industry. In UK, there are a lot of cafes which offer different varieties of coffee to consumers.
So, beans coffee café needs to face extensive competition so that they are required to prepare
appropriate strategies in order to stand in competition for longer period of time. In this, Porters
five forces model have been applied for detailed competitive analysis. Different elements of
model are mentioned below:
Competitive rivalry: In present scenario, competition among existing companies is really
higher. There are various are present in UK such as Costa café and more. Therefore, beans café
is required to provide unique services and experience to users (Hatten, 2018).
Bargaining power of buyers: In present scenario bargaining power of customers is
significantly high as there are a lot of other organizations present in market which also offer
similar services. In addition to this, customers are also price sensitive so they can easily switch
from towards other competitors where they get services relatively at lower price.
Bargaining power of suppliers: Here, bargaining power of supplier is lower due to
presence of other suppliers and vendors. In this, beans coffee café needs to maintain positive
relationship with vendors for purchasing raw material within predefined period of time.
Threat of substitute: In this, threats of substitute is moderate as beans coffee is providing
unique services which will help in gaining edge over competitors in market place. By making
further improvements in services they can easily get competitive edge in market.

Threat of new entrants: In present scenario, threat of new entrants is really higher due to
lower barrier in market place. Here, it is easy for new companies to enter in market place due to
lower customer loyalty, lower investment and other such factors.
P2) Tangible and intangible resources necessary for launching a new venture
It is stated that resources are required for starting and running each and every business.
Without resources, it is not possible to operate business successfully. There are a lot of tangible
and intangible resources are required for running an organization in an efficient manner. In this
regards, necessary resources are mentioned below:
Tangible resources:
It refers to those resources which can be seen and touched by individuals. These are
crucial for a business venture and play a crucial role in business success and growth. In context
of beans coffee, necessary tangible resources are given as under:
Equipment and tools: For starting a new business, it is important to have necessary tools
and equipments. In context of present scenario, there is requirement of coffee machined for
meeting with requirements of customers. So, business managers need to arrange necessary tools
for undertaking business activities in an efficient manner (Bessière, Stéphany and Wirtz, 2020).
Finance: It is required to perform different business functions. In organization, there are
a lot of expenses done in daily basis for ensuring smooth functioning of business. Funds are
required for starting a new venture. For this, there are various sources by which fund can be
taken such as venture capital, bank loans, equity and more.
Human resources: Here, employees are the most crucial resource of an organization who
perform different activities in an efficient manner. It is stated that managers prepare strategies
and employees work for effective implementation of those strategies. While undertaking a new
venture, it is important to hire qualified and potential work force.
Physical resources: For starting a business, there is requirement to have some physical
resources such as building, furniture, premises and more(Shirokova, Tsukanova and Morris,
2018). Without these resources, it is quiet difficult to undertake daily functions of company.

Intangible resources:
It refers to such resources which cannot be seen and touched by an individual person.
These are not visible still play a crucial role in success of organization. In present context, certain
intangible resources are given as under:
Trade name: It is considered as the image, logo, words and combination of all elements
which are prepared for a specific business purpose. A trade name allows a customer to identify
the quality of product. If, a trade mark is prepared appropriately then it helps in maintaining
positive association with customers.
Patent: It is a legal license which allows holder the right to make, use as well as sale the
invention. It is basically formulated for safeguarding and securing invention in an efficient
manner. While undertaking a new invention, it is important to get the necessary patent for future
betterment (Michael, 2018).
Domain name: It is related with the identification by which customers can connect with
company. By domain name, it is easy for customers to remember the company. Also, it is vital
for creating different & unique identify in market place.
P3) Develop a proposal for launching a new venture
Executive Summary: Beans coffee café is a new café within UK which aims to offer
quality coffee to target segment. They provide herbal, organic and flavored coffee for meeting
with requirements of potential customers.
Company Overview: Here, the company is a new venture which is going to start in food
and beverage sector. It offers ample of varieties of coffee such as herbal, organic and flavored
coffer to the customers within UK. It aims to attract more number of customers by offering some
additional services to users. The new venture has been started with the aim to earn substantial
profit margin for staying in market place for longer duration.
Market analysis: In current competitive market place, it is important for each and every
company to undertake detailed market analysis (Bernal and Liñán, 2018). It helps in terms of
gaining extensive market information which further help in preparing effective marketing
strategies and plans. For this purpose, SWOT analysis of new venture is given below: