New Venture Creation and Entrepreneurship

The provided document is a report on new ventures and entrepreneurship. It highlights the crucial role that new ventures play in developing economies of countries, bringing innovative ideas and rapid changes to the market or business environment. The report emphasizes the importance of various skills, knowledge, and abilities required for entrepreneurs to launch and run successful businesses. It also touches upon international exposure through network relationships and shared authentic leadership in new venture performance.

Launching A New
Venture

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 A new venture identifying specific target markets and competitive analysis...................1
P2 Specific tangible and intangible resources that required for a new venture......................2
TASK 2............................................................................................................................................4
P3 Produce a credible proposal to launch a new venture.......................................................4
P4 Skills and capabilities required to launch a new venture..................................................5
TASK 3............................................................................................................................................6
P5 Different promotional activities and channels for launching new venture.......................6
P6 Develop an appropriate promotional activities plan for both launch and pre-launch.......7
TASK 4............................................................................................................................................8
P7 Monthly cash budget for the pre-launch phase.................................................................8
P8 An appropriate legal form for the venture.......................................................................11
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................13

INTRODUCTION
Starting a new venture is not an easy task because it requires several skills and abilities so
that individuals can handle a particular business in any situations. Entrepreneurs start up a new
firm with the aim of achieving set targets or objectives while operating business. They also
consider various problems which may have to face by them regarding cut throat competition,
market challenges and various issues within the firm (Baron, 2011). This report is based on Fresh
Bakery shop which is going to start in the city of London, UK. This firm produces various types
of foods and sell it in the market such as bread, cookies, pastries, cakes, sandwiches and pies etc.
Therefore; there is requires to analyse proper market conditions, customer’s expectation and
demands and social impacts. This assignment will discuss specific tangible and intangible
resources that necessary for launching venture. It will also produce proposal and assess several
skills or capabilities for new business. Various promotional activities and channels will be
undertake and develop a plan for both launch or pre-launch. It will produce a cash budget and
suggest a legal form.
TASK 1
P1 A new venture identifying specific target markets and competitive analysis
Fresh Bakery is a small shop that deals in various baked products and sells in the market
place. In the present scenario, many people are addicted to consume baked products such as
pastries, cakes, burgers and sandwiches and many more so they prefer to take these foods rather
than other. Therefore, this shop is going to open in the mid city of London so that number of
customers can be attracted towards firm for consuming various products or services in well
manner (Tang, 2011). Fresh Bakery is also providing Cookies, Ice cream, Cold drinks and
Chocolates etc. in the shop. There is define small plan for new venture such as;
An individual is going to start a new venture which is known as Fresh Bakery Shop that
will be open in the area of 2000 square foot at London Street. The Owner of this firm chose best
locations or area and hired suitable place on lease of 2 year so that business can be established in
more efficient manner. Individual has required some sufficient funds for opening effective firm
because it is necessary to run the business operations in better ways. Owner has arranged some
required funds for starting venture such as approx £ 3,50,684 to £3,52,684.
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Objectives:
 The main objective is to provide best quality of foods to customers.
 Increase reputation in the market place.
 Enhance growth and develop the business.
 Increase productivity and profitability.
 To become a best Bakery shop among competitors.
Mission: “To Provide best organic and fresh baked products to customers for satisfying
needs and wants and take care of their health and safety”.
The main aim of this firm that to provide effective and fresh food to consumers by
considering their health and safety as well (Bijker, 2012). Therefore, owner concentrate on
quality of food and services so that number of customers can be attracted towards shop.
Target market: This is necessary step which must be undertaken while making decision
regarding opening a new venture because businessman have to define the target market and
consider their particular need or wants towards products or services. this will support in reaching
at potential customers and meet desired expectations. It can be possible by segmenting the
market as per the consumer behaviours and undertakes some important components such as
income level, gender, region, religion, tastes and preferences, age, lifestyles and many others.
Fresh Bakery should find its target audiences by segmenting the markets in appropriate manner.
Competitive analysis: In this consider various competitors who also deals in same
products. There are number of competitors available in the market who are providing baked
products in the marketplace. For example, Peggy Porschen cake Ltd, Primrose Bakery and Cutter
& Squidge etc. these all are biggest competitors that have covered wide area of the market of
London. Therefore, Fresh Bakery has to make better strategies for selling its products such as
innovation and creations in the cake, pastries and also serves different varieties of cookies so that
customers will be influenced and ready to consume particular food in well manner (Burns, 2017).
It is necessary task that entrepreneurs have to analyse competitors so that appropriate plans or
strategies can be formulate in more efficient way.
P2 Specific tangible and intangible resources that required for a new venture
For launching a new venture, an entrepreneur make plan to arrange the appropriate
resources so that business can be established and develop in better way. Therefore, it is
compulsory to arrange the appropriate funds and financial facilities for operating business
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activities as well as functions. Fresh Bakery is dealing with varieties of foods such as Cookies,
Cakes, Chocolates, Pastries, Ice creams and Cold drinks in the market at reasonable price so that
customers can fulfil their demands and expectations in more effective manner (Caselli, 2018).
For start ups or opening new business, there are various resources required which will support in
running particular business as in this considered some food stuffs, material for making foods and
many others. Fresh Bakery Shop also needs various kinds of services such as tangible and
intangible that can be understood by followings:
Tangible Resource: In this undertakes those resources that have physically existence and
that can be seen such as plants, tools, equipments, and materials. Every organisations focus on
arranging entire necessary resources that can be useful for running the business. In this, the most
important resources are financial. When owner of Fresh Baker decide to launch there bakery they
realise that there is requirement of various tangible resources. Such as oven, refrigerator,
bakeware, proof boxes, mixers, chair and tables according to ambiance, land, decorative items
and many more. These resources help them in conducting there services and making products in
appropriate and effective manner.
Intangible Resources: This is another necessary factor which must be required for
establishing appropriate business in well manner. It consists several components such as patents,
goodwill, corporates, consumer relationship, culture and trademarks that play crucial role in
getting success within the firm in better ways. There are no any physically existence of
intangible assets as in this considered IP which included copyrights, trademarks, methodologies,
and any tags or symbols that are very beneficial in identifying and recognise the particular brand
as well as company (Negri, 2018). In other words, intangible resources is very helpful for every
organisation because it support in brand identifications, employees attributes, market reputations
and various activities regarding business. Intangible resources which is essential for launching
Fresh Bakery are goodwill which they develop at marketplace, patents, brand name and image,
copyrights of there method, trademarks, licenses for operation businesses functions and many
more. The Fresh Bakery shop focus on employees behaviours and attributes for treating every
customers in well manner so that they can satisfy their needs or wants. They will also remember
the firm whenever purchase any baked foods. Customers also will be loyal for long term towards
company.
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Therefore, it can be analysed that appropriate resources are required for operating any
business and perform various activities or functions in well manner. These resources also
compulsory for small and medium enterprise as they can attain best possible outcomes by
utilising tangible and intangible resources. Along with this they required funds and capital for
purchasing resources so that they launch bakery in proper manner. Budget which is prepare by
Fresh Baker is on monthly basis such as according to pre launch budget they required approx £
2300 in January, £ 2800 in February, £ 1700 in March and many more.
TASK 2
P3 Produce a credible proposal to launch a new venture
In this defined that to launch the new firm or start ups, there is required an adequate
plans. Owner consider this and produce an effective plans for the purpose of achieving set targets
or goals in an efficient way. Planning must be made in proper manner by ensuring that it will
bring effectiveness and various changes so that company can achieved its objectives and best
outcomes (Fernhaber, 2013). Planning is an essential for making better position of the firm and
decide the actions in effective way. It generally formulates by the proposal in which considered
all necessary plans and actions that have been taken place in the future. Proposal is very helpful
component that described about the whole details and meet company's missions or visions in
appropriate manner. In the Fresh Bakery Shop, there are required better plan that can be
understand by taking some specific details such as:
Executive Summary Fresh Bakery is dealing with number of baked and confectionery items
including burgers, sandwiches, cakes, pastries, and ice cream, cold
drinks and many more.
Company description An individual is starting a new business which is Fresh Bakery Shop
and they will provide several foods and beverages to the customers. It
will operates in the London Streets. It will considered 2000 squares feet
in the London city (Li, 2013). Person has taken this place on lease as
well as rent for running business in an appropriate way. Owner choose
this place for generating more revenues or higher profits in an efficient
manner.
Market Analysis To run an organisation, there should be effective planning and strategies
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which will support in expanding business at several places. Owner is
focusing on business expansion which can be possible by analysing the
market trends and conditions. In this undertake SWOT and PESTEL by
examining and studying of environment in an appropriate way. It will
also support in achieving of competitive advantages.
Financial projection For launching the new venture, there are needed of appropriate funds or
financial funds because without this resource, company cannot run.
Therefore, Fresh Bakery have to make adequate budget and make
decisions about the minimum capital for starting business functions and
operate various activities in an effective manner.
Benchmarking In this, owner consider benchmark by setting standards of the work in an
effective way. It will support in ensuring about the customers or
employees that they are performing every tasks according to set
benchmarking with comparing it.
P4 Skills and capabilities required to launch a new venture
In this defined that business can be starts and operates in well manner by utilising better
knowledge and skills in very effective way. Owner should have better skills, qualities and
knowledges which will support in achieving predetermine goals or objectives (Hmieleski, 2012).
Therefore, to start the Fresh Bakery shop, individuals must have proper ability and capabilities
for achieving set targets or objective as well. There are number of skills and abilities defined that
have acquired by the owner such as:
Risk taker: Owner must be ready for taking any kinds of risks while operating firms in
the market. Therefore, Fresh Bakery can be launched in very effective manner by an individual
because they are ready to face any critical situations as well as make proper actions plan in
different circumstances. It will be support in accomplishing set targets and get best possible
outcomes.
Leadership skills: this is another important skills which is required to enhance the
productivity and profitability. Leaders always support to its employees as they motivate as well
as stimulates them so that they can increase their work productivity and work hard to get success.
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Presentation of proposal: This is very necessary component as in this required
appropriate presentation of the work and plan on the front of people so that they will be able to
understand everything in more efficient way (Cole, and Baron, 2012). Therefore, the owner of
Fresh Bakery have to display their ideas, views and action planning for achieving competitive
advantages.
Optimistic and visionary: In this considered that individuals have required to be
confident and optimistic person regarding their business so that they can achieve predetermined
goals or objectives in defining time period (Kariv, 2013). It is necessary to be ready for accepting
any changes or challenges that may be includes risks or uncertainties whiles running an
organisation. Entrepreneurs always focus on achieve visions and targets in any critical
circumstances to develop the business.
TASK 3
P5 Different promotional activities and channels for launching new venture
In this concern with various tools or techniques for the purpose of promoting particular
business as well as products or services in an efficient manner. Every entrepreneur consider the
appropriate strategies and promotional tools for launching new business in the market place. May
of firms take support of marketing mix for formulating better strategies and actions plans in well
manner. There are some important tools of promotions that undertaken by the Fresh Bakery for
promoting their business such as:
Use of social media to promote business: In this included various social platform for the
purpose of creating awareness such as Facebook, Instagram, Emails, websites and LinkedIn,
Twitter, YouTube and many more for promoting particular business (Klotz, 2014). The Fresh
Bakery can use this mode for creating awareness among UK people regrading the new venture
by effective social media platform.
Articles and Blogging: It is another important method in modern world as there are
various companies who focused on using articles and blogging for providing necessary
information to the targeted audiences. In this, they describe about the products or services so that
customers will be aware regarding products and services. it can be beneficial for Fresh Bakery
shop.
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Mobile Billboards: This is another form of promotional tools as many of firms consider
the mobile billboards for providing accurate informations to the targeted audiences (Kuratko and
Hornsby, 2017). In this included several forms of symbols such as Stickers, Punch line and logo
for particular business. Fresh Bakery also can consider this for promoting the venture in an
efficient manner.
Personal promotions: Every business firms can be developed in well manner by
considering public relations as it is helpful component for small and medium enterprises as to
make better relationship among them so that long term benefits can be get by the organisation.
There are several promotional plans defines that can be helpful for Fresh Bakery in better
interaction with social people, group discussion and meetings, emails as well as social media
conversations etc.
Hence, it can be analysed that there are number of promotional tools available which
Fresh Bakery can undertake for the purpose of business promotion (Morris, 2015). The best
component of promotional tools is mobile billboards and social media that are very beneficial for
achieving set targets or goals in more impressive manner.
P6 Develop an appropriate promotional activities plan for both launch and pre-launch
In this consider that every firm required to make appropriate plan for the purpose of
promoting the new venture among competitors. It also must be included in the planning activity
for business as how it will promote its products and services in both as pre-launching and
launching of the new venture in the market place.
Pre-launch Promotions: in such process, company prepare a particular websites and any
pages for launching a new venture. In this included several techniques and promotional channels
for promoting products or services. Fresh Bakery has introduced its tag line that “Tasty food and
Healthy food” and also considered an effective logo for pre-launch of the business.
Launch promotion: In this process, company focus on attracting various customers and
number of people towards company as it also known as recalled of public (Read, 2016). Fresh
Bakery can undertake several modes of promotions to create more awareness among people such
as blogging, YouTube, and other advertisements for business promotions as well as
development.
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TASK 4
P7 Monthly cash budget for the pre-launch phase
There is defined an appropriate budget for launching a new venture as Fresh Bakery also
consider this and made a cash budget. Pre launch budget and post launch budget of Fresh Bakery
is given below:
Pre launch cash budget:-
(Amount is in £)
Pre launch cash budget
Cash Flow budget
Particulars Jan Feb Mar Apr May June July
Cash inflows
Investment 8000
Credit sales 2000 3000 3000 4500 1500 3500 4200
Total inflows 10000 3000 3000 4500 1500 3500 4200
Cash outflows
Fixed : Equipment’s 2000 2500 1500 2000 1200 1500 800
Variable : Direct material 300 300 200 300 150 500 300
Total outflows 2300 2800 1700 2300 1350 2000 1100
Net cash flow 7700 200 1300 2200 150 1500 3100
Opening balance 0 7700 7900 9200 11400 11500 13000
closing balance 7700 7900 9200 11400 11550 13000 16100
August September October November December Jan
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1000 2000 800 1200 1500 3600
1000 2000 800 1200 1500 3600
200 300 100 600 300 2000
400 500 100 100 400 300
600 800 200 700 700 2300
400 1200 600 500 800 1300
16100 16500 17700 18300 18800 19600
16500 17700 18300 18800 19600 20900
Feb Mar Apr May June July
3000 3000 4500 1500 3500 4200
3000 3000 4500 1500 3500 4200
2500 1500 2000 1200 1500 800
300 200 300 150 500 300
2800 1700 2300 1350 2000 1100
200 1300 2200 150 1500 3100
20900 21100 22400 24600 24750 16250
21100 22400 24600 24750 26250 19350
Post launch cash budget:-
(Amount is in £)
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Post launch cash budget
Particulars Jan Feb Mar Apr May June July
Cash inflows
Investment 8000
Credit sales 1200 2000 7500 3000 5000 6500 1200
Total inflows 9200 2000 7500 3000 5000 6500 1200
Cash outflows
Fixed : Equipment’s 2500 1200 1500 2500 1100 1500 1200
Variable : Direct material 350 300 250 150 100 500 500
Total outflows 2850 1500 1750 2650 1200 2000 1700
Net cash flow 6350 500 5750 350 3800 4500 -500
Opening balance 0 6350 5850 11600 11950 15750 20250
closing balance 6350 5850 11600 11950 15750 20250 19750
Augus
t September October November December Jan
3200 1500 8200 1250 3210 1200
3200 1500 8200 1250 3210 1200
600 500 500 1200 700 2000
250 450 250 1300 500 300
850 950 750 2500 1200 2300
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2350 550 7450 -1250 2010 -1100
19750 22100 22650 30100 28850 30860
22100 22650 30100 28850 30860 29760
Feb Mar Apr May June July
5000 2500 4500 1500 3500 4200
5000 2500 4500 1500 3500 4200
2500 1500 2000 1500 2000 200
300 200 250 360 250 500
2800 1700 2250 1860 2250 700
2200 800 2250 -360 1250 3500
32160 32360 33660 35860 36010 37510
34360 33160 35910 35500 37260 41010
P8 An appropriate legal form for the venture
It is defined that every organisation should be in proper manner, therefore company have
to determined an appropriate structure. It is an important part as every firm has to considered
their appropriate structure that have formulated by the UK government (Robb and Watson,
2012). They formed number of legal legislation and laws which must be followed by the
organisation. There are several forms of venture such as:
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 Sole Proprietorship: It is defined about the owner of the enterprise who starts and
operates business on their behalf. An individual is responsible for running and
maintaining the firm in more appropriate way. This is a common form of structure which
also inexpensive process that helpful in creating basic reports regarding the firm.
Individuals is responsible to manage the firm and bear loses or risks while running the
business in an effective way.
 Partnership firms: This is another way for launching a new venture as in this two or
more persons come up with appropriate and necessary resources including land, capital
and physical material for starting a new business (Simon and Shrader, 2012). They deals
in operating firms and decide to divide the profits by sharing among every partners. The
major weak point of partnership is that every individual will bear any losses or risks if
occurs during business operations.
 Public sector: In this defined that there are some public sectors firms which operates as
well as run by the government. It shares generally hold by public as in this included
various forms or types such as public and private limited which depends on nature of the
business. Therefore, these firms usually owned and operated by government as well as
private ownership which is depends on businesses. Their main purpose is to gain
financial profits and achieve competitive advantages in an effective manner.
Therefore, it can be find that the Fresh Bakery is going to open or launching which has
legal structure as per the government rules and legislations. Owner has considered partnership
form of the legal structure so that they can operate business in well manner. It will support in
bringing more effectiveness and efficiency because every partners are responsible to manage and
maintain the business operations in better ways. Fresh Bakery can create better positions in the
market place and achieve competitive advantages as well.
CONCLUSION
Form the above report, it has been concluded that new ventures play crucial role in
developing economies of country. It is an essential that bring more innovative ideas and rapid
changes in the market or business environment as well. Entrepreneurs required several resources
for operating the business such as tangible and intangible so that entire activities and functions
can be performed in well manner. For launching new firm and run it carefully, individual needs
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various skills and knowledges as well as abilities so that they can make proper decisions and
actions plans with the favour of organisation.
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