New Venture Management and Entrepreneurship

This assignment covers various topics related to new venture management and entrepreneurship, including opportunity recognition, entrepreneurial traits, micro-enterprise performance, and externally acquired knowledge development. It also discusses the role of affect in entrepreneurship and provides a practical guide to new venture creation and development. The assignment title is 'New Venture Management and Entrepreneurship', which accurately reflects the content covered. The meta title '[DOWNLOAD] New Venture Creation Strategies' effectively summarizes the key focus areas, while the meta description provides a concise overview of the content for search engine optimization (SEO) purposes.

Launching a New Venture

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 New venture and identification of specific target market......................................................1
P2 Tangible and Intangible resources by chosen organisation to launch new venture...............3
P3 Producing a credible proposal to launch a new business venture..........................................4
P4 Skills and Capabilities to launch new business venture.........................................................6
TASK 3............................................................................................................................................7
P5 Different promotional activities and channels to launch a new venture................................7
P6 Appropriate promotional activities plan to launch both launch and pre-launch....................8
P7 Monthly cash budget for pre-launch of new venture.............................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Before launching a business venture, it is important for a successful business person to go
beyond their business plan, know the market and understand actual needs of customer while
entering into a new industry or marketplace (Launching a new venture. 2018). It is essential for a
business person to take advantage of technology and various innovative measure to create a
unique idea or a blue print of their business process in order to turn their business idea into a
fruitful business venture. In context with this, in present case study Let's Cafe a new business
venture is looking forward to set their business in Italy, Europe. In this project, background of
present venture along with specify target market has been mentioned. In addition to this, certain
tangible and intangible resources required to launch new venture along with different channels of
promotional activities for both launch and pre-launch are described in descriptive way in this
report. Lastly, estimated monthly cash budget in relation to pre-launching of business venture
has been included in this project.
P1 New venture and identification of specific target market
It is important for a business person to take certain measures while taking their venture
into global market. It is worldwide movement in which it is essential for them to take necessary
steps towards financial trade, economic and communication integration. In this, business person
can take help of concept of globalisation to formulate their business plan while launching their
venture in international market.
Let's Cafe is a new business venture which is going to expand their area of functioning in
Italy, Europe. This cafe is not only attracting customers with their specialised delighted food but
also offer art lover a place. Let's Cafe display work of art which include wooden sculptures,
handmade jewellery and chalk mask. In addition to this, cafe provide separate sofa for pet lovers
on which they can spend their usual day with their pets. In order to attract large customer base in
affordable way, Let's Café will offer loyalty discounts to their regular customers. This will help
them to rapidly increase their sale in effective way. To formulate this process in systematic
manner mentioned below there is a small business plan to launch this venture into international
market of Italy:
To set strong base for Let's cafe in the market of Italy, it is essential for business owner of
cafe to create various new strategies while taking innovation into consideration. This will help
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them to acquire large customer base in short span of time (Barringer, 2015). It is important for
owners of cafe to keep an eye on their competitors and other cafe giants in order to examine their
strategies and policies. This will help them to make perfect blue print idea for their venture as to
launch that in international market of Italy. Launching of this venture approximately require total
allocation of 3,50,00 Euro to 4,50,000 Euro.
Objective:
To maximise their total sales revenue up to 20% in 3 months.
Mission: “A new experience every week”. Let's Cafe will keep their door open for 24/7 to
satisfy customers in best possible way.
There are numerous cafes who have already established their business in international
market in successful way. Therefore, in order to gain prosperity in effective time frame, it is
essential for owner of Let's Cafe to bring continuous modifications in their strategies with the
help of innovation in order to acquire large base of customer towards them (Douglas, 2017).
Marketing research
Owner of Let's Cafe is planning to launch their cafe in Calabria, Italy, Europe. This place
attracts travellers form all around the world. Location provide cheap resources and people can
enjoy by spending less. As this place is consumer centric owner of cafe can effectively increase
their profitability in international market by satisfying needs of consumer in best possible way.
There are some important criteria which is required for business owner of cafe to take care of:
Identifying specific target market:
It is a basic process which is important for every business person to take into their
consideration. In this, it is essential to identify a targeted area with the help which a business can
attain more successful advantages. Business owner by identifying effective target market can
maximise their rate of profitability and increase their efficiencies simultaneously. Owner of Let'
s Cafe have examined overall market and consumer condition in marketplace of Italy. They have
segmented groups according to demographical location and income base and then created a
strategy in which they have decided to target consumer of age group of 17 to 70. Let's cafe is
going to set their business venture in Italy, Europe. Owner of the cafe is looking forward to
launch their cafe in Calabria which attract many travellers around the world. This location will
benefit cafe to gain increase more consumer base. Calabria provide cheap resources and raw
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material which will help cafe run their operations in easy manner. This will benefit owner of
Let's Cafe to increase their revenue by investing less resources.
Competitive Analysis:
This is one of the most important factors that is essential for a business person to take
care as to perform their business functions in sustainable way (Burns, 2017). It is important to
examine overall positive and negative factors of their competitors present in a marketplace to
attain more advancements.
In this present scenario, Sant' Eustachio, Panella Bakery cafe, Sciascia caffe' and Faro-
Luminari del Caffe are some well-established leader in cafe structure of Italy. They offer
attractive benefits like, modifications in their menu as per according to consumer wish and
gaming zone. These cafes are one of the leading cafes currently running in Italy, and covers more
than 20% market. Let's cafe owner by evaluating this, take advantage of various innovative idea
and offer a unique structure in their cafe which include separate zone for pet and art lovers. In
addition to this, they provide low-sitting chairs for old people and provide educational events and
conferences in their cafe. This will benefit Let's Cafe to attract large number of consumers
towards them.
P2 Tangible and Intangible resources by chosen organisation to launch new venture
In order to launch their business venture in successful manner it is essential to formulate
a well effective and systematic business plan and gather efficient budget to launch new business
in proper way. To fulfil this objective, it is essential for an owner to find effective source of
funds as to regulate their business functions in smooth and formative way (McKelvie and
Brattström, 2018). This will aid business owners to acquire large amount of consumer base and
generate more profitability in their operations. Owner of Let's Cafe is planning to launch their
cafe in the international market of Italy, Europe.
Let's cafe will offer wide range of exquisite food products to their customers in addition
to this, they provide separate art and pet area to attract them in remarkable way. They offer 24/7-
hour services to this consumer in order to satisfy them in best effective way. In addition to this,
Let's Cafe have implemented a reward strategy in which there offer loyalty discount to regular
customers. This will benefit cafe to increase their overall consumer base and evaluate more ways
to increase their profitability in international market. It is important for owner of Let's Cafe to
modify their pricing strategy and provide effective range of affordable food and beverage items
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to their consumer in order to retain them for long time and increase sustainability of venture
simultaneously. There are some tangible and intangible resources described below in descriptive
manner:
Tangible Resources:
Tangible resources include those assets that can be physically touched. There are
numerous kinds of resources that will aid a business venture to achieve more advancement and
strengthen their proficiencies in global market. Tangible resources include various physical
factors such as, labour, land, machinery and tools. In this recent case scenario, owner of Let's
cafe is looking forward to expand their business in global market of Italy, Europe for this there is
a huge requirement for manpower so to manager their outlets in various location of Italy. They
require approximately 70 staff members for their outlet launching in Calabria, Italy. 10 for
marketing, 7 for finance, 15 for food production, beverage management, etc. 10 staff for
cleaning, etc. Research team of venture will be focused on gathering crafts for the café in order
to settle up designing of store which will be physical evident of café.
Estimated amount of 45,00 Euro is required to set their cafe in determined location. In
addition to this, cafe require 300 Euro on daily basis to purchase raw material for the preparation
of food and beverages in their cafe. In order to accomplish their goals in predetermined way it is
important for Let's Cafe owner to train their staff in best possible way and guide them towards
attainment for venture growth in efficient manner.
Intangible Resources:
Intangible resources include those elements that can't be touched and are not in physical
form. Some of the intangible resources are, goodwill, trademarks, patent, customer relationship,
etc. These resources will benefit a business venture to increase their overall rate of profitability
and take their business functions towards growth path. In relation with present case scenario,
Let's Cafe owner is required to gather intangible resources which include, trade names, consumer
list, patent mark, brand recognition and copyrights in order to protect their personal interests.
Both tangible and intangible resources will aid owner of Let's cafe to perform their
business operations in smooth and systematic way. These resources will simultaneously help
them to strengthen their overall market sustainability.
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P3 Producing a credible proposal to launch a new business venture
Business proposal aid an organisation to evaluate actual cost of their overall activities
in order to launch a new business venture. These types of business proposals are provided by
consultancies to aid owners in evaluating their actual requirement of funds and other
resources. Mentioned below there are business proposal of Let's cafe:
Executive Summary Let's Cafe has started with a unique and
innovative idea in which they supply all food
items and also offer art lover a place in order
to fulfil consumer needs in best way.
Company Description Let's Cafe is having large number outlets in
UK and are going to expand their area of
functioning in Italy, Europe. Cafe not only
provide exquisite food but also have separate
zone for art and pet lovers. Cafe display art
work of wooden sculptures, handmade
jewellery and chalk mask.
Market Analysis In order to attract large amount of consumer
attraction it is important for business owner to
formulate effective strategies (Baron, 2015).
After the proper analysation of Calabria, Italy
market owner have found that location attracts
large number of travellers from around the
world. In addition to this, location is having an
attractive infrastructure and offer cheap raw
materials. As this place influence travellers
there is a big competition in this market. Rules
and regulation in this region are flexible which
benefits cafe to run their business in effective
manner.
Benchmarking Let's Cafe measure benchmark by putting
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standards of work in systematic manner. This
will help them to evaluate their set
performances with actual accomplished
performance by doing a comparison.
Financial Projection In order to launch Let's Cafe estimated amount
of 3,50,00 to 4,50,00 is required. Owners have
invested 50:40 ratio. These funds will aid in
maintenance of effectiveness.
P4 Skills and Capabilities to launch new business venture
In order to launch a new business venture in formative and systematic way it is very
much important for a business owner to adopt innovative ideas in the process of strategies and
policies making. This will help them to perform their business operations in effective way. In
addition to this, it is necessary for them to acquire different type of skills and abilities to gain
more advantages against their competitors. There are some basic elements related to skills and
abilities that will benefit an individual to set their business in international market:
Leadership:
Leadership is an effective skill or an ability to encourage people towards betterment of
business venture. It is the basic responsibility of Let's Cafe leaders to possess formative
leadership in order to influence their staff to achieve business goals and objectives in effective
way (Read, 2016). By having a positive and optimistic approach, leadership of Let's Cafe can
encourage and motivate their staff to maximise their work efficiency so as to execute the
processes in the desired manner. Leaders in cafe by implementing laissez-faire leadership style
can delegate less important task to their subordinates and engage them effectively in decision-
making process. On the other hand, with leadership skill, Let's café will help in managing
coordination and cooperation among staff members.
Risk taking:
To run a business in a successful manner it is important for a business person or an
entrepreneur to posse risk taking skill. It is a fact that market environment is dynamic and
continuously changing so in order to gain more advancements it is essential for a business person
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to bear risk and find various opportunities to overcome them. In this present case scenario, let’s
cafe is recently looking forward to set their business venture in global market of Italy, it is not
certain that whether this launching is positive or negative. Therefore, it is important for business
owner to possess different abilities and skills to face any kind of future uncertainty.
Communication:
Communication is an effective tool in every business organisation in this modern world.
It is important for manager and owner of business ventures to formulate a smooth and healthy
form of communication bridge in their structure to maintain effective process of idea and thought
in their organisational culture. It is necessary for Let's Cafe owner to maintain a positive form of
formal communication with their consumer. It is important for cafe to train their staff members
to use friendly and polite tone of communication process. This will benefit them to satisfy their
customers with more comfortable manner. It will automatically result in maximisation of large
amount of consumer base towards cafe and increase their profitability simultaneously.
Delegation:
It is a systematic process in which delegation of certain roles and responsibilities are
allocated on the basis of skills and abilities. It is important for Let's cafe owner to delegate all
roles and responsibilities in their business structure as per according to staff members skills and
abilities (Santos, 2015). This will result in accomplishment of task in more effective and easier
manner. With the help of proper delegation, Cafe can reduce their work load and increase
efficiencies of members simultaneously.
All the above-mentioned variables will benefit owner of Let's cafe to increase their
performance level and improve their capabilities in order to become more consumer centric in
the global market of Italy. With the adoption of all these variables cafe can increase their brand
image in international market and maximise their proficiencies on same base. These skills and
abilities can be acquired by an individual by indulging themselves in regular activities as per
relating to these skills. On the other hand, skill of delegation can be achieved by assigning proper
and systematic roles and responsibilities to each and every individual in proper way. By
performing all these functions on regular basis leadership skill can be acquired in remarkable
manner.
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TASK 3
P5 Different promotional activities and channels to launch a new venture
It is important for a business venture to perform their marketing activities in formative
and systematic way to generated large amount of customer attraction. In context with Let's cafe,
it is essential for business owner to utilize various technical tools to make their promotions on
global index. This will help them to strengthen their brand image in international market. Owner
of cafe can promote their venture on various social sites and other promotional websites. In
addition to that, tag line developed by cafe can also effectively attract attention of large customer
base. There are some promotional activities and strategy related to price described below:
Mentioned below there are some promotional activities and pricing strategies described:
Web based showcasing: In this channel of promotion owners can directly deal with their
clients. They can take help of various web-based networking sites, messages and other official
sites. Owner of Let's cafe can take advantage of Facebook, blogging and twitter to promote their
business venture (Cosenz and Noto, 2018). This will help them to attract more consumer base
and strengthen their business position in global market simultaneously.
Publicizing: It is a paid form of promotional measure in which a business unit can
effectively promote their venture. In context with Let's Cafe, it is important for owners to
evaluate basic elements like media, cash, estimation and message. Owner will promote their
brand on radio and television channels, newspapers, magazines and various social media
platforms.
Different pricing strategies:
Market penetration: As per according to this strategy, attention of consumer is grabbed
by offering them various products and services in affordable range as compared to competitors.
This will aid cafe to maintain their product cost differentiated from their rivals.
Economy pricing:
Economy pricing: According to this strategy, business organisations offer low cost prices
range for different products and services to prices conscious consumers. In this, main motive of a
business unit is to decrease their production cost in order to maintain a balance in their product
cost price.
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P6 Appropriate promotional activities plan to launch both launch and pre-launch
Pre-launch Promotions: According to this section, it is necessary for business owners to
create their own official websites and post various attractive things and information’s to attract
attention of consumers on large scale. In context with, let’s cafe business venture there is unique
tag line to grab attention of consumer “All you need to feel better, is Let's Cafe”. Cafe also
promote their venture on different social media, television, radio, magazines and other
promotional websites in order to create awareness among people of Italy about launch of café
and its unique services. In this prelaunch promotion the firm will offer addition discount and
offer to some potential customers.
Launch Promotions: Activities is this are done after launching a business venture. In this
it is essential for business owner of Let's cafe take advantage of different promotional measure to
attract customers towards them in effective way (Kuratko and Hornsby, 2017). Owners can take
different platforms like social media, Facebook, blogging and at location of café where the firm
will be focused on offering quick discounts to first 100 visitors. This will help the business in
managing boost in sales and increasing interest of customers.
Brand development: It is important for business owners of Let's cafe to perform their
operations related to branding in efficient manner in order to increase their brand image in
internal market of Italy. By doing this, they can maximise their proficiencies and attain more
competitive advantages against their competitors. In context with Let' s cafe owner is using
attractive tag line “All you need to feel better, is Let's Cafe”. In addition to this, name of the cafe
benefits cafe owner to grab attention of large consumer base.
P7 Monthly cash budget for pre-launch of new venture
With the help of systematic and effective budget plan a business venture can find their
actual requirement related to fund and other monetary needs. Proper budget plan can provide
various type of benefits to a owner in relation to allocation of funds to each and every
departments. This will help perform their day-to-day business operations in smooth and
formative way. In context with present scenario, business owner of Let's cafe is required to take
necessary factors into their consideration some of that include, operating cost, basic liabilities
and overall resources in order to formulate a business plan. Budget plan of Let's Cafe has been
described below:
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Pre-launch cash budget
Cash Flow budget
Particulars Jan Feb Mar Apr May June
Cash inflows
Investment 8000
Credit sales 2000 3000 3000 4500 1500 3500
Total inflows 10000 3000 3000 4500 1500 3500
Cash outflows
Fixed: Equipment’s 2000 2500 1500 2000 1200 1500
Variable: Direct material 300 300 200 300 150 500
Total outflows 2300 2800 1700 2300 1350 2000
Net cash flow 7700 200 1300 2200 150 1500
Opening balance 0 7700 7900 9200 11400 11500
closing balance 7700 7900 9200 11400 11550 13000
Particulars July August
Septembe
r October November
Dece
mber
Cash inflows
Investment
Credit sales 4200 1000 2000 800 1200 1500
Total inflows 4200 1000 2000 800 1200 1500
Cash outflows
Fixed: Equipment’s 800 200 300 100 600 300
Variable: Direct
material 300 400 500 100 100 400
Total outflows 1100 600 800 200 700 700
Net cash flow 3100 400 1200 600 500 800
Opening balance 13000 16100 16500 17700 18300 18800
closing balance 16100 16500 17700 18300 18800 19600
Post launch cash budget
Particulars Jan Feb Mar Apr May June
Cash inflows
Investment 8000
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Credit sales 1200 2000 7500 3000 5000 6500
Total inflows 9200 2000 7500 3000 5000 6500
Cash outflows
Fixed: Equipment’s 2500 1200 1500 2500 1100 1500
Variable: Direct material 350 300 250 150 100 500
Total outflows 2850 1500 1750 2650 1200 2000
Net cash flow 6350 500 5750 350 3800 4500
Opening balance 0 6350 5850 11600 11950 15750
closing balance 6350 5850 11600 11950 15750 20250
Particulars July August September October November December
Cash inflows
Investment
Credit sales 1200 3200 1500 8200 1250 3210
Total inflows 1200 3200 1500 8200 1250 3210
Cash outflows
Fixed: Equipment’s 1200 600 500 500 1200 700
Variable: Direct
material 500 250 450 250 1300 500
Total outflows 1700 850 950 750 2500 1200
Net cash flow -500 2350 550 7450 -1250 2010
Opening balance 20250 19750 22100 22650 30100 28850
closing balance 19750 22100 22650 30100 28850 30860
Pre-launch budget of Let's cafe of in the years Jan, Feb, march, April, May and June is in
relation to total inflow is 10000, 3000, 3000, 4500, 1500, 3500. While on the other hand, cafe
post launch budget in context with its total inflow is 9200, 2000, 7500, 3000, 5000, 6500. It can
be evaluated from this data that cafe is increasing their overall base of cash inflow which lead
them towards their growth. Hence, it can be said that performance of café is going as per pre-
launch pan which denotes growth and success of café in Italy.
Appropriate legal form for venture:
There are different types of laws and regulations framed by government of all
geographical locations which is important for a business organisation to follow in order to run
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their operations in ethical manner. It will aid a business venture to formulate their internal and
external strategies according to governmental rules (Fisher, 2017). In this present case scenario,
Let's Cafe owner is looking forward to set their business venture in the international market of
Italy, Europe. In order to perform all their business activities in effective way it is important for
business owner to possess related knowledge of government laws relating to food quality, health
and safety, food preservation, licensing and age restrictions. There are certain types of ventures:
Sole Proprietorship: Business units working in the sector of sole proprietorship are run
by a sole individual person who is whole responsible to undertake risk and profit of overall
organisation. Business units in these structures have more flexible structure and possess simple
form of legal structure.
Partnership Firm: In a partnership firm, ownership is enjoyed by more than one
individual. In this type of structure there is an agreement between owner which is mainly known
as a partnership agreement. In this, shares of risk and profit shared by partners are mentioned in
systematic way. This will benefit them to perform their business functions in more cost-effective
manner.
According to above mentioned legal structure, business structure of sole proprietorship
can be more effective for Let's Cafe as it can benefit them to modify their strategies and policies
without wasting any single time in decision making process which is a time taking procedure.
Owner of Let's cafe is looking forward to set their venture in Calabria, Italy, Europe. Cafe is
going to deal in food and beverage industry. Estimated amount of fund which is going to require
to set outlet in this location is 45,00 with the total number of 70 staff members. With the
implementation of flexible communication process owner is looking to formulate effective flow
of communication in their cafe in order to satisfy needs of consumers in efficient way. The firm
will be incorporating to CSR practices and use of quality and fresh raw material for food
production.
CONCLUSION
As per the above concluded report, it has been concluded that to launch any business
venture in global, local or national market it is important for an owner to develop systematic
strategies and policies to operate their functions in effective way. They can fulfil their goals
objectives by possessing different skills and capabilities. In addition to this, with the help of
numerous promotional strategies business owners can attract large base of consumer base
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towards them. In this project, itemised monthly cash budget of pre and post launch of venture is
included in order to maintain total cash flow in business in effective manner. Lastly, by
gathering tangible and intangible resources in effective manner owners can achieve more
advancements in intentional marketplace.
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REFERENCES
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Kuratko, D. F. and Hornsby, J. S., 2017. New venture management: The entrepreneur’s
roadmap. Routledge
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discrimination. International entrepreneurship and management journal. 12(4). pp.963-
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McGee, J. E. and Peterson, M., 2017. The Long‐Term Impact of Entrepreneurial Self‐Efficacy
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Al Mamun, A. and Ekpe, I., 2016. Entrepreneurial traits and micro-enterprise performance: a
study among women micro-entrepreneurs in Malaysia. Development in Practice. 26(2).
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McKelvie, A., Wiklund, J. and Brattström, A., 2018. Externally acquired or internally generated?
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Cosenz, F. and Noto, G., 2018. A dynamic business modelling approach to design and
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Online
Launching a new venture. 2018. [Online]. Available through:
<https://www.exed.hbs.edu/programs/lnv/Pages/default.aspx>.
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