Entrepreneurship and Business Growth

This assignment explores the multifaceted aspects of entrepreneurship and its impact on business growth. It delves into key entrepreneurial skills, the role of effectuation processes in shaping ventures, and the relationship between product diversification and performance. The influence of wealth inequality on entrepreneurship and the challenges faced by new ventures in rapidly scaling are also examined. Furthermore, the assignment considers the contributions of universities to fostering technology-based startups and the significance of social networks in resource acquisition for these ventures.

Launching a new venture

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P 1 Discussing new venture of the organisation and identifying competitive analysis..........1
P2 Discussing tangible and intangible resources....................................................................3
Task 2...............................................................................................................................................4
P3 Producing credible proposal to launch venture.................................................................4
P4 Skills and abilities required to launch new venture...........................................................5
Task 3...............................................................................................................................................8
P5 Different promotional activities and channels for promoting new venture......................8
P6 Producing appropriate promotional activities plan...........................................................9
Task 4.............................................................................................................................................10
P7 Producing itemised monthly cash budget for pre-launch phase......................................10
P8 Appropriate legal form for organisation..........................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business provides goods and services to society for fulfilling their needs and
requirements. Present report deals with launching a new business venture in SME hotel sector
named as Adorable Hotel to cater the needs of middle class customers. The hotel would provide
cultural foods of UK and better services in the hotel at lowest possible prices to impart customer
satisfaction. The hotel will be located in Tavistock town of UK and target customers will be
middle class people. Report contains various tangible and intangible resources which are
required to fulfil daily needs. Moreover, skills and capabilities of entrepreneur are also
highlighted. Furthermore, cash budget is prepared and promotional activities plan for pre-launch
and post-launch is also listed. Thus, launching a business venture requires objectives and skills of
entrepreneur to achieve good profits.
Task 1
P 1 Discussing new venture of the organisation and identifying competitive analysis
New business venture
Business venture means that entrepreneur starts a new business with the aim to satisfy
customers and meeting their demands in the best possible way. This venture is good for the
entrepreneur who have required skills and talents to serve society and earn financial gains in
effective manner. This is quite important as when entrepreneur starts business several
opportunities are created and as such, society is benefited and in turn venture garners profits with
much ease. This is usually small organisation that is opened for meeting demands of customers.
The new venture to be started is Hotel business to be named as 'Adorable Hotel'. This business
will be SME (Small and Medium Enterprises) and employees will be around 50 only. The
organisation will cater the needs of all the citizens and as such, services offered will be at
affordable prices (Martin and Javalgi, 2016). This will enhance customer satisfaction and they
will be become loyal to the firm. This will help business to flourish and revenue could be
garnered in the best possible manner by providing better and quality services to customers in the
hotel.
Target market
The business will be established in Tavistock town in London. The venture going to start
in the region is mainly to focus upon various cultural foods of UK which will have greater
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variety of foods and services to customers and as such, they will have pleasant stay in the hotel.
The cultural foods such as fish and chip that is one of the popular food of UK. Moreover, break
fast flooded with mushrooms, fried egg and sausage and baked beans will be provided to guests.
Moreover, room and administration service by departments is also the part of new venture.
Target market will be Tavistock as passengers arrive most frequently and as such, business will
be able to flourish quite effectually (Baucus and Mitteness, 2016). Firm will be able to target all
adults passengers as they come with their friends and family. Thus, they can be targeted so that
customer base may be developed and as such, business may achieve success in effective manner.
Furthermore, hotel packages would be sold at affordable and lower prices so that customers may
be attracted towards buying the same. Thus, target market with reduced prices of the packages
and better administration and room services will initiate success of the new venture.
Analysis of competitors in the market
When new business is likely to be established, there should be complete analysis of
competitors. This is required in order to implement well-structured strategies to outreach them in
the best possible way. Furthermore, this help business to have analysis of rivals' strategies and as
such, new firm can make more structured strategies resulting in success of the business.
Adorable Hotel will cater the needs of customers and will provide them better services as
compared to rivals. The competitors in the market are The Duke of Tavistock and other one is
Tavistock House Hotel. These two hotels are quite successful ventures and are among the best
one in the locality. Furthermore, it is required that well-mannered strategies should be
implemented by the business. Duke of Tavistock is better hotel which provides services such as
breakfast and exotic rooms to passengers. The services provided by the hotel are the key points
which enhances satisfaction level of customers in the best possible manner. The hotel has free
Wi-Fi facility and has good lounge by which guests like to stay in it (Deligianni, Voudouris and
Lioukas, 2017). On the other hand, Tavistock House Hotel is privately owned SME and was built
by Duke of Bedford circa 1820. The hotel caters the needs of customers and provide them with
enduring services in effective manner. Thus, it implies that Adorable Hotel will have to maintain
its services quite effectually.
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P2 Discussing tangible and intangible resources
The tangible and intangible resources are required in the business so that tasks can be
accomplished in a better way. Starting wit tangible ones which means that the can be touched
such as fixed assets. Whereas, intangible resources consists of reputation, copyright which
cannot be seen and touched but there presence is important for the business to achieve goals with
much ease.
Resource Requirements for New Business venture
A) Tangible resources
Adorable Hotel requires resources so that it may accomplish success quite effectively.
This means that equipments, machineries, place are essentially required in the organisation.
Equipments such as smoke detectors, fire extinguishers, CCTV cameras will be required in the
hotel. It is needed so that safety would be provided to all customers and personnels in the
premises. Moreover, if any incident occurs in the hotel, then, fire extinguishers would be useful
in controlling the situation. Furthermore, kitchen equipments such as pasta machines which help
to cook pasta in the shortest possible time (Rao and Mulloth, 2017). Cookie droppers and
doughnut glazers are another useful modern equipments which will be required in the new
venture to install the same for reducing time and prepare food quite effectively. Modern kitchen
equipments consume low energy and as such, they are utmost required in the business. Apart
from equipments, machineries are equally required such as vacuum cleaner, box sweeper,
electric sweeper, polishing machine etc. These are needed in order to clean rooms and floors of
the hotel and these are required by house keeping department. Apart from this, place of the hotel
is required which will be purchased in Tavistock region. Thus, these tangible resources would
place great emphasis on firm's attaining objective. Thus, these are required for attaining success
of the venture.
B) Intangible resources
These resources cannot be touched and as such, there presence is felt by the level of
customer satisfaction, reputation of hotel and positive reviews by guests who had visited hotel.
The intangible resources such as goodwill, expertise on identifying consumers, skills of staff,
marketing skills, better service to customers (Mullins, 2017). The aspect of goodwill is nothing
but a reputation of business in the market and as such, it is important for the new venture to
establish good reputation by providing customers quality services in the best possible manner.
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Furthermore, Adorable Hotel is a new venture and thus, no goodwill is present. Business will
attain goodwill by imparting services at affordable prices to customers. On the other hand,
marketing skills are essentially required as when business is established, it is needed to promote
products and services to customers so that they may come to know and avail services.
Furthermore, staff skills are required as size of the hotel will be small and as such, employees are
integral part of the firm. Room service and administration department will provide good services
and customers will be enhanced by the same (Burton, Sørensen and Dobrev, 2016). The main
aim of Adorable Hotel is to provide quality services to guests in order to attain maximum
customer satisfaction and as such, in initial phase, prices will be charged less to attract them and
effective services will be provided to them.
Task 2
P3 Producing credible proposal to launch venture
Proposed New Venture
A) Name of the Venture:
The name of the Venture is Adorable Hotel
B) Proposed location:
The location of the hotel is proposed to be situated in Tavistock
C) Proposed nature of new Venture:
The nature of business is to provide hotel services to customers
D) Proposed Target Customers
The target customers will be middle class people and to cater their needs. In addition to
this marketing manager in an organisation have planned to target manager in an enterprise has
planned to target especially working people, those who don't have time to cook food.
E) Proposed Marketing and Sales Method and Budget
The marketing method to be used in the hotel would be internet marketing which will be
through posting advertisement on social media where people may come to know about the
business. Furthermore, sales method to be used which will focus on online booking of packages
and inculcating no intermediaries in the same.
F ) opportunity and market: Business owner have innovation skills which will help an enterprise
in gaining the competitive advantage in the market.
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G ) Basic facts on the financials – An entrepreneur gain funds from two sources these are debt
and equity. Among both the sources of raising capital , equity is considered to be the effective
source of raising funds , as it does not consist of any interest or charge. Business owner can also
obtain financial resource from bank on form of loans.
H ) Risk analysis-The risk associated with establishing the hotel business is security risk.
Increase in level or intensity of competition can have negative impact on the business
performance. Change in economic factors have direct impact on the financial stability of an
organisation.
Projected Profit and Loss during first three years
Projected Profit and Loss of
Adorable Hotel
Particulars 2018 2019 2020
Revenue 187960 199087 220050
Less: Cost of Goods Sold 121355 120555 130056
Gross profit 66605 78532 89994
Operating expenses
Accounting expenses 6500 6600 6700
Advertising expenses 8000 8200 8300
Bank charges 4500 4600 4700
Administration expenses 5000 5300 5500
Electricity expenditure 17000 17500 18000
Insurance 1000 1050 1100
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Licenses 700 720 740
Telephone expenditures 2000 2300 2400
Utilities expenses 5500 5550 5800
Website maintenance 2500 2600 2800
Total operating expenses 52700 54420 56040
EBT 13905 24112 33954
Less: Depreciation 2000 2000 2000
Operating profit 11905 22112 31954
Tax @ 15% 1785.75 3316.8 4793.1
Net income 10119.25 18795.2 27160.9
P4 Skills and abilities required to launch new venture
The skills and abilities required to launch new venture are as follows-
1. Entrepreneurial skills
Entrepreneurial skills are required in order to launch new venture. This implies that
entrepreneur should have aim and objectives before planning for starting business
(Entrepreneurial skills. 2018). Moreover, initiative to resolve problems should be there so that
investment may be done in correct venture and return may be generated from it. Furthermore,
entrepreneur should be able take risk and as such, he may be able to achieve success.
2. Analytical skills
These skills are required in entrepreneur so that problems may be resolved in the best
possible manner. This is the ability to analyse situation, conceptualise complex issues and then
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taking enhanced decisions with much ease. This main analytical skills involve critical thinking,
communicating with others and extract solution to the problems. Thus, analytical skills are
extremely important to launch venture.
3. Forecasting skills
Forecasting skills means that how an entrepreneur initiates estimation regarding success
of new venture. This means that entrepreneur should forecast over the revenue and expenditures
in the coming period. It is also called as accounting skills of entrepreneur. Financial growth and
prospectus is required to be assessed by him and as such, financial statements are essential part
to be assessed by the entrepreneur. Financial predictions regarding costs and revenue both are
needed by entrepreneur and are essential forecasting skills which make successful new venture
within short time span (Butticè, Colombo and Wright, 2017).
4. Capability to identify market threats
This skill is one of the important among other skills as new business would not be
successful without analysis of rivals present in the market. Competitors' strengths and
weaknesses are required to be analysed so that Adorable Hotel may be able to implement well-
mannered strategies in order to compete with them and as such, profits may be produced. Thus,
capability to identify strategies of rivals are essentially required by entrepreneur before launching
new venture.
5. Capability to Compete with other similar business in the market
Competition prevails in the market and as such, it is required by the entrepreneur that
strategies should be made in that way by which new venture may compete with other similar
businesses in the market quite effectually. This implies that entrepreneur should provide services
at affordable prices and gain customer base with much ease. Thus, this capability is required by
entrepreneur and as such, competition may be reduced up to high extent.
6. Capability to identify target customers
Target customers are required to be assessed by entrepreneur so that marketing and
promotional activities could be applied in the best possible manner (Zane and DeCarolis, 2016).
Furthermore, it is also required that preferences and demands of customers may be attained. This
implies that when preferences are evaluated, then accordingly services and products could be
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formulated in effective manner. Thus, entrepreneur should have this capability to identify target
customers which are middle class in this venture for achieving budgeted results.
7. Skills to deal with customer issues
Customers have various issues and as such, entrepreneur is required to assess the same.
Problem-solving skills is required in order to solve issues of customers in the best possible
manner. Moreover, it is needed that customer issues should be solved in effective manner by the
staff and as such, these skills help to launch venture and as a result, success can be achieved.
8. Capability to identify right marketing tool
There are various types of marketing tools such as digital media, social media and
traditional one. The entrepreneur has to select appropriate tool which suits the most to the firm.
This will help business to attain best marketing of hotel and as such, firm will flourish in the best
possible manner (Gurkov, 2016). Moreover, social media will be used by Adorable Hotel to lure
customers in effective way. This capability to identify right marketing tool is required to be
possessed by entrepreneur.
9. Skills to promote new venture in target market
This is another required skills which emphasises on effectively promoting new venture in
the target market. This implies that marketing and advertising plays crucial role in the business
so that it may be able to flourish. This is important as without promoting business in target
market, promotional activities cannot be accomplished and as such, entrepreneur is required to
have such ability to attain success.
Task 3
P5 Different promotional activities and channels for promoting new venture
The marketing of Adorable Hotel is required for achieving objectives. The marketing mix
is as follows-
Product
The product is something which is sold by company to customers. Adorable Hotel will
sell cultural foods of UK in Tavistock locality and services will be provided to have a pleasant
stay in the hotel. The goods and services should be imparted that satisfies needs of customers in
the best possible manner (Frederiksen and Brem, 2017).
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Price
The pricing method plays important role as customers will be attracted when low prices
are implemented by the business. Adorable Hotel would follow cost plus pricing which is one of
the common pricing method followed by firms. Prices should be implemented after assessing
market and as such, new venture may implement the same.
Place
The place is also important marketing mix as firm earns more profit when materials are
available at nearby locations and as such, transportation expenses can be reduced in the best
possible manner. Furthermore, Adorable Hotel would tend to purchase food items from nearby
suppliers so that least cost may be incurred and venture can be successful in the market.
Promotion
Promotion is necessary in order to lure customers towards hotel. This is one of the
essential requirement as without proper promotional tools, consumers may come to know about
products and services offered by the business and as such, promotion will be accomplished by
using social media for posting offers and discounts on products and services (Frid, Wyman and
Coffey, 2016).
People
People are considered to be the main element of marketing mix as customer needs and
preferences are assessed and eventually product is made. This help business to achieve customer
satisfaction. Adorable Hotel will provide cultural foods and quality services to guests arriving in
the hotel.
Process
Process in marketing mix means that how company initiated direct and indirect activities
and achieve necessary output. This further lays emphasises on value chain analysis of company.
It also includes technological processes as well. Adorable Hotel will integrate internet marketing
and physical marketing to achieve objectives of marketing quite effectually (Huang,
Henfridsson, Liu and Newell, 2017).
Physical evidence
It is the element of marketing mix which ensures that customers are provided physical
services to customers and that can be seen and touched. In relation to this, physical delivery of
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foods and services will be provided by Adorable Hotel which will enhance customer satisfaction
up to high extent.
It can be justified that promotion element of marketing mix could be used by hotel in
order to achieve goals. It requires promotion because it is start-up venture and as such, this tool
would help to garner customers quite effectually by promoting through social media.
P6 Producing appropriate promotional activities plan
Pre-launch
The pre-launch phase consists of several activities which creates awareness among
customers and are classified below-
 Branding plays crucial role and as such, it is required that Adorable Hotel should
understand target customers and competition prevailing in the market. This will help to
assist in pre-launch of hotel.
 Maintaining public relations is another pre-requirement by which hotel would be able to
have understanding of market and services may be provided to customers.
 Website should be maintained in effective manner and this help to gather information
about how customers are responding and attracting towards website and checking firm's
offerings.
 Social media is another effective tool which has direct impact on customers. Posting
video of work in progress of hotel is useful for hotel and is indirect way of promotion.
This is helpful for promoting enterprise in pre-launch phase

Post-launch
 The business has launched in the target market and as such, to attract more customers
firm should implement more offers to lure them.
 Social media marketing should be improved in a better way so that customers may seek
offers on social networking sites such as Facebook, Instagram and other sites.
 To seek how many visitors have visited the hotel's website and as such, bookings can be
managed with much ease (Coleman, 2016).
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 Content marketing should be implemented in order to resolve customers' problems in
effective way. By seeking issues of guests, problems should be solved and as such,
loyalty increases towards hotel.
 Moreover, initiate direct contact with guests on social media so that offers can be
provided and as such, marketing of activities would be successfully achieved after post-
launch. Free gifts , discounts , offers are required to be launched by the marketing manager in an
organisation. As this strategy will assist business entity in attracting more number of
customer
 Advertisement - It is considered to be as one of the major promotional activity and
it is conventional method of marketing. Hotel can give news in newspaper or magazines
about the new hotel. It can supply information about different products and services that
an enterprise intends to provide to its consumers.
Task 4
P7 Producing itemised monthly cash budget for pre-launch phase
Itemised
monthly
cash budget
Particulars Jan Feb Mar
Apri
l May June July Aug Sept Oct Nov Dec Total
Beginning
cash
balance 935 891 928 895 889 939 952 927 920 909 977 926 11088
Cash from
operations 125 218 141 156 211 161 155 187 167 246 132 185 2084
Total cash 1060 1109
106
9 1051 1100 1100
110
7 1114 1087 1155 1109 1111 13172
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Less:
Capital
expenses 113 123 113 106 102 94 114 126 133 126 119 123 1392
Interest 20 26 24 25 21 22 27 29 20 27 23 29 293
Dividends 2 4 3 5 0 2 1 2 3 2 4 5 33
Debt
retirement 50 31 40 32 48 39 46 41 34 30 40 42 473
Total
disburseme
nts 185 184 180 168 171 157 188 198 190 187 187 187 2182
Deficit
balance of
cash 875 925 889 883 929 943 919 916 897 968 922 924 10990
Add:
Short term
loans 6 3 6 6 10 9 8 4 7 9 4 5 77
Long-term
loans 10 0 0 0 0 0 0 0 5 0 0 0 15
Total 16 3 6 6 0 9 8 4 12 9 4 5 82
Cash
balance at
the end 891 928 895 889 929 952 927 920 909 977 926 929 11072
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The above depicted budgeting framework shows increasing trend in cash position of hotel
unit. Through financial evaluation it has assessed that owner of hotel unit will get positive
returns or margins in each month during the concerned period or time frame. During the period
of 12 months, ending cash balance of hotel unit inclined from £891 to £929 at the end of
December. Thus, it can be presented that plan pertaining to new venture or establishment is
viable in monetary terms.
P8 Appropriate legal form for organisation
There are different legal forms of organisation such as sole proprietorship, partnership,
company etc. Sole proprietorship company implies for the one where all the decisions taken and
implemented by the owner without the interference of others. Under such kind of firm, owner
gets and enjoys whole profit margin. On the other side, partnership firm partners share profit and
loss on the basis of predetermined ratio. Further, decisions are taken by the partners in such kind
of firm through mutual discussion. The new venture selected by the entrepreneur is sole
proprietorship company. This is appropriate form of business as it provides full right over the
profits and distribution is made with regards to profit on the shares subscribed by shareholders.
Moreover, this legal form consists of several formalities and as such, it would be appropriate for
the business to flourish in the market in the best possible manner. However, it business entity is
distinguished from the shareholders. It includes limited liability on the part of shares owned by
investors. Thus, hotel can be launched to cater the needs of customers quite effectually.
CONCLUSION
Hereby it can be concluded that launching a new venture is not an easy task. It requires
various skills of entrepreneur to lead business towards success and produce profits with much
ease. This is required so that company may flourish in the new market by satisfying customers in
the best possible manner. Furthermore, aim and objectives should be cleared about the new
venture so that business may succeed. The skills and abilities and capabilities of entrepreneur are
required in order to achieve tasks with much ease. This will help firm to achieve stated goals and
objectives in the best possible manner. Financial projections are required to be assessed by the
entrepreneur so that income and costs may be forecasted and controlled in effective manner.
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Online
Entrepreneurial skills. 2018 [Online] Available Through:
<https://www.mindtools.com/pages/article/newCDV_76.htm>
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