Launching a New Venture

This report discusses the process of launching a new business venture called The Needy Shop. It covers topics such as target market, competitive analysis, internal analysis, resources, skills, and marketing strategy.

Launching a New Venture

Table of Contents
INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
Business Plan.....................................................................................................................................3
Competitive Analysis........................................................................................................................4
Internal Analysis of new business venture.........................................................................................5
Resources..........................................................................................................................................6
Skills and capabilities........................................................................................................................7
Marketing Strategy............................................................................................................................8
Cash Budget......................................................................................................................................9
Legal Requirements.........................................................................................................................10
CONCLUSION...................................................................................................................................11
REFERENCES....................................................................................................................................12

INTRODUCTION
A business venture is defined as an organization engaged with catering products and services in
order to earn profits. This report is based on the case study of establishing a business plan with
respect to opening a new business venture. A new business venture is called The Needy Shop. This
venture is involved in selling retail products online. Henceforth, the report will emphasize the target
market for the new business venture. Competitive analysis will also frame with respect to the new
business Associated strength and weaknesses with a new business venture will also demonstrate in
this report. Different resources will also specify for the new business venture. Furthermore, the
report will also demonstrate the skills required to launch a successful business venture. The report
will provide a brief overview in regard to the appropriate marketing strategies that will support the
growth of the new business venture call The Needy Shop. A comprehensive cash budget will also
address in this report. The report will also provide a brief overview with respect to the legal
requirements associated with the new business venture.
Business Plan
Target Market
The Needy Shop is an online retailer in the United Kingdom. The target market for the
business venture will be the retail market of the United Kingdom. The retail market has been
the major market sector as it caters to a wide range of target customer base. The product
range of the retail sector is well diversified which enables The Needy Shop to consist up of
all age and gender group people as its potential customers (Grosso, Castaldo, and Grewal,
2018). The business venture will cater to groceries and clothing ranges for all genders and
children also. Retailing is among the key businesses as the sector has emerged as the leading
market sector due to the high demands of retail products. Groceries will drivers The Needy
Shop to cater to the needs of all people related to top food. The business venture will also
deal with clothing lines irrespective of any gender and age group which will also enable the
business venture to the target fashion industry as well. The Needy Shop is selling its products
over the internet so the target market will also involve e-commerce trades. Online businesses
have played a significant role in transforming the entire business environment. With the
support of online retailing business, the venture will also cater well-established target market
of retail over internet and e-commerce web sites.

Competitive Analysis
The retail market is consisted of among the major competitive market sector due to the effective
demands and growth of the market. Its sector in the United Kingdom consisted up of a growth rate
of 10%. The contribution of the retail sector in the gross domestic products of the United Kingdom is
also consisted of up to 5% (Nandonde and Kuada, 2016). All such figures indicate the high growth
rate and demands of the retail products in the target market. High growth rates and demands also
resulted in aggressive competition in the retail sector of the United Kingdom. The retail market of
the United Kingdom is comprising of big corporate like Marks and Spencer, Asda, Wallmart, Tesco,
and also comprises small business houses. In order to sustain and grow in the market, The Needy
Shop will have to compete with all the big companies like Marks and Spencer and also with all retail
shops, clothing outlets in the United Kingdom. Asda Business venture consists of the leading
organization in the retail sector of the United Kingdom as the business venture achieves the highest
amount of sales turnover in the retail industry of the United Kingdom.
The Needy Shop will receive tough competition from all leading and dominating companies of the
United Kingdom operates in the retail market and also with small retail outlets. The business venture
will discount its products over the internet with the support of the website (Rushton and Daoust,
2019). The Needy Shop will engage to discount its products over the internet so the business venture
will also deal with the competition with other e-commerce entities. Other companies like Amazon
and other e-commerce companies will also give tough competition to The Needy Shop Business
venture. E-commerce in the United Kingdom has been the dominating aspect involved in the retail
sector. As the contribution of the e-commerce business in the overall retail outcomes is more than
25% as per the recent statistics. The growth rate of the e-commerce businesses in the retail market
is 10% which also indicates the effective dominance of the online retail businesses in the United
Kingdom. Apart from the big retail companies and e-commerce entities associated with retail sector
trade, The Needy Shop will also face competition from small retailers like shops, grocery stores,
clothing outlets, and other small departmental stores. All such small business entities will also
provide effective competition to the Needy Shop.
Competition for The Needy Shop will not cater to grocery items but also in clothing business
ventures that will face an immense amount of market competition. Clothing has been one of the
dominating pillars in fashion retail. The business venture will face tough competition from big brands
like Jockey, Armani, FENDI, and all other top brands involved in clothing. Many other small outlets
discount clothing products will also provide effective competition to the Needy Shop.
Internal Analysis of new business venture
Internal analysis of The Needy Shop will emphasize the strengths of the business venture and also
the weaknesses associate with the business venture.
Strengths of The Needy Shop
The Needy Shop is engaged with the following strengths that will support the organization in
getting success in the target market.

Diversified products
The product range of The Needy Shop is well diversified in nature. The business venture will
produce multiple choices in all its food and clothing products. The business venture will
provide access to all top brands in clothing and grocery products. The well-diversified
product range of the business venture will provide a complete shopping experience to all its
potential customers of business ventures (Kothari and Abbas, 2020). This can be defined as a
key strength of The Needy Shop through which the business venture will be able to meet up
all needs and requirements of potential customers. Furthermore, it will drive the business
venture in establishing an effective brand image of The Needy Shop.
Affordable cost
The objectives of the new business venture called The Needy Shop are to meet the needs of
customers related to groceries and clothing products at the affordable price structure. The
business venture will contain very low-profit margins to meet up its cost and standard
profitability percentage margins for further growth (Schroll and et.al., 2020). As the low-
profit percentage of The Needy Shop will enable the business venture to cater to the quality
groceries and clothing brands at the affordable price range to its customers. This also can be
added toward the key strengths of the business venture which will support the new business
venture in establishing a unique brand image in the target market apart from such a huge
market competition.
Strong supply chain management system
The Needy Shop has framed a strategic partnership with local dealers and all big brands. In
the retail market, it is crucial to have a strong supply chain management system in order to
ensure the proper availability of all products. The strong supply chain management system of
The Needy Shop is among the key strengths of the business venture. This will enable the
business venture to ensure the proper availability of all retail products. This will also provide
more choices to potential customers of The Needy Shop Business venture.
Weakness of The Needy Shop
Weaknesses associated with The Needy Shop can be summarised in the following manner.

Inexperience in operations
The Needy shop is the new business venture which will operate its business operations in the
retail sector. As the business venture is initiating its business operations so the management is
lacking with the experiences needed to operate business functions. As the retail sector
consisted of an effective growth rate which also attracts aggressive market competition
(Rubio, Villaseñor and Yague, 2016). In order to deal with such high market competition, it
is crucial for the Needy Shop to have a specific experience workforce. The inexperience of
the business venture will lead to plenty of issues for the business venture.
Limited resources
As the Needy Shop is the new business venture and the business venture is consisting up with
a limited amount of resources. Resources play a crucial role in operating business operations
effectively. Limited resources of the business venture are among the key weaknesses
involved in the business of business ventures.
Aggressive market competition
The retail sector consists of heavy growth which also drives to aggressive market
competition. Heavy market competition restricts the market share for new business ventures.
This is among the key weakness The Needy Ship is engaged within its business operations.
All the above internal analysis of The Needy Shop indicates the strengths and weaknesses of
the business venture.
Resources
Resources play a huge role in operation business operations. Resources of the Needy Ship are
segregated into tangible resources and intangible resources. Resources of The Needy Shop
can be summarised in the following manner.
Tangible Resources
Tangible resources are denoted by all such resources that can be physically experienced and
channelize by the business venture. The Needy Ship is the new business venture which also
indicates that the business venture has a limited amount of resources (Filimonau and Gherbin,
2017). The organization will require tangible resources like financial resources, human
resources, products, suppliers, infrastructure, information technology systems, and other

tangible resources such as the communication system. All such tangible resources will
support The Needy Shop in order to operate business operations. The business venture will be
able to meet up all needs and demands of the target customers with the support of all tangible
resources of the organization. Among all tangible resources, information technology, and
communication system will be the key tangible resources for the Needy Shop. As the
organization will engage in selling the products online so the effective system will support
the organization in dealing effectively with all potential customers of an organization.
Intangible Resources
Intangible resources are consisted up with all such resources which can’t be physically
verified and experience. Many of the resources that can be seen with the eyes but can be
experienced. Resources like goodwill, brand value, customer loyalty, and other intangible
resources. All such intangible resources cans are seen physically but all such ca be
experienced and feel (Clough and et.al., 2019). Intangible resources play a huge role in the
success of the organization. Customer loyalty, brand value, and goodwill play a huge role in
business ventures and all other corporate to achieve growth and success in the market.
All the above elements indicate the suitable resources needed for the Needy Shop to achieve
growth in the target market.
Skills and capabilities
In order to achieve growth and suitability business ventures needs to possess a skilled
workforce. The following methods to develop the skills will play a huge role in improving the
capabilities for the workforces associated with business ventures.
Training
Management of the Needy Shop can provide professional training to employees over
Information technology skills, communication skills, decision-making skills, and other
associated skills (Cowden and Tang, 2017). Training will professionally grow all such skills
in employees. This is an effective method to develop skills in employees.

Encourage employees
Management of the Needy shop also follows the method to encourage employees to grow
different skills like communications skill, decision-making skills, and other associated skills
(Kay and Schlömer-Laufen, 2016). This will improve the capabilities of employees with
respect to performing the associated duties in the organization. This is an effective method to
develop skills by encouraging employees to put efforts on their own. Management can
convey the advantages associated with improving such skills in order to encourage such
employees.
Both methods are effective techniques to grow skills in employees.
Marketing Strategy
Currently, various marketing strategies are available here which can support the Needy shop
venture in its initial stage. The top-level management of the needy shop has highly required
to employ various promotion activities for highly promoting its various products and services
in the market (Pantelic, Sakal and Zehetner, 2016). Currently, each business is trying to use
such marketing strategies in its business environment which can give them better return
within the market. That’s why the marketing team of a needy shop also needs to be too much
activity in its job role while pre-launch and post-launch. Some major and effective marketing
strategies have been discussed below which marketing team can employ in their different
promotional activities.
Paid advertising
This is one of the most common and productive marketing strategies. In this paid advertising,
the needy shop should run its different fancy and attractive advertisements on various
advertising platforms, like; TV, newspapers, radio, billboards, banners, and posters. These
platforms are really too helpful in terms of promoting products and services in the market in
pre-launch and post-launch. Firstly, the marketing team of a business venture should contact
a selected advertising business venture for making an attractive and informative ad. After the
ad making process, the marketing team should pay the decided amount or fund to that
promotional or advertisement platform where it wants to run its paid advertisement. This
marketing strategy will provide a great promotion facility to needy shop in both the time
period pre-launch and post-launch.

Social media marketing
In this dynamic and modern world, social media marketing strategy is playing a great role for
different companies and businesses. Basically, most businesses are taking huge advantages
from this marketing strategy, because this provides a low-cost advertisement facility. That’s
the marketing team of the needy shop includes this marketing strategy also in their various
promotional activities (Roggeveenand et.al., 2017). Currently, there are many social media
platforms existing, like; Facebook, Instagram, Twitter, in which these platforms have large
numbers of users. In this situation, when this business venture will run their advertisements
on these platforms, then it can easily promote its brand at a large scale in the initial stage. The
business venture is able to take advantage of this marketing strategy in both time periods pre-
launch and post-launch. That’s why the marketing team of the needy shop should employ this
marketing strategy for promoting its brand.
Sponsorship
There is a sponsorship marketing strategy that will also provide an effective brand promotion
facility to a business venture. In this marketing strategy, the marketing team of the business
venture needs to sponsor different events and programs in various market segments. The
reason is, an event or program always attended by many people, in which when these people
see the needy shop’s sponsored banner and poster at an event venue, and then they get known
about this brand. Currently, many businesses and companies choose this marketing strategy
in their promotional activities, because this strategy highly attracts lots of new people towards
the brand.
These all are some major marketing strategies that the marketing team of a needy shop can
use in its different promotional activities. In the business venture’s initial stage, marketing
management should employ these all strategies, because it is necessary for the needy shop to
inform and the aware large number of people about its brand. In promotional activities of
business ventures, the marketing team needs to choose especially digital marketing strategy,
because currently, digital marketing provides an effective return to different businesses.
Basically, social media marketing also a part of digital marketing. The business venture can
use these marketing strategies in both time periods pre-launch and post-launch.

Cash Budget
The cash budget mainly includes different expenses that management needs to do while
launching its new venture (Kasemsap, 2016). The existing management of needy shop should
prepare an effective budget plan which can appropriate financial support to this business
venture while its pre-launch and post-launch time period. A productive pre-launch cash
budget for the business venture has been attached below;
Area of expenses Amount (£)
Legal formalities £550
Promotion £1600
Salary and wages £1500
Raw material £3000
Transportation £750
Total £7400
This cash budget includes only those expenses which top-level management of needy shop
need to expend in pre-launch time period. The business venture needs to expend fund on
these activities in the post launch time period as well. There is another cash budget for at least
18 months’ post launch time period has been attached below;
Area of expenses Amount (£)
Legal formalities £250
Promotion £750
Salary and wages £950
Raw material £1500
Transportation £400
Total £3850
The management of business venture has highly required these both cash budget structures in
its business operations. These cash budget will help to needy shop in both pre-launch and
post-launch time periods.

Legal Requirements
A business or venture always needs to fulfil different legal requirements while launching its
products and services in the market (Mäkinen, and Kasanen, 2016). Some major requirements
have been discussed below which top-level management of needy shop has highly required to
fulfil while pre-launch and post-launch.
Registration
Each business owner within the United Kingdom need to register its business in such
governing bodies which specially manage business environment. These governing bodies
allot a legal licence to different ventures for legally starting their business operations in this
country. In this situation, owner of needy shop also needs to register own venture for getting
legal licence to lunch its business in the UK’s business environment.
Contract Law
This is another major legal requirement which existing management of needy shop need to
highly consider in daily operations. A business always needs to sign various contracts with
their different stakeholders, like; suppliers, investors, advertisement companies etc. This legal
term basically helps in solving different conflicts between management and stakeholders
(Steingold,2017). That’s why needy shop also has highly required to adhere this law in own
venture operations.
Employment Law
The needy shop need to employment law also while both time period pre-launch and post-
launch. The business venture is able to gain an effective workforce with the support of this
this law, because most employees or people always like to work in that workplace, where
existing management completely adhere employment law. That’s why needy should follow
this legal term as well in its business operations.

CONCLUSION
This report has summarised about target market for the new business ventures. Competitive
analysis has also concluded. Strengths like diversified products range, low cost and
weaknesses like inexperience has also summarised of the new business venture. Tangible and
intangible resources needed to run the business has also concluded. Methods like training and
self-encouragement has also concluded to grow skills. Marketing strategies like social media
marketing, holding has analysed in this report. A comprehensive cash budget has also
concluded based on the different needs of the new business venture. This report has also
summarised different legislative needs the new business venture needs to engage with in
process to operate business operations.

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