Launching a New Venture

This assignment report discusses the identification of target markets and competitive analysis, specific tangible and intangible resources required for a new venture, formulation of a credible proposal, skills and capabilities required to launch a new venture, determination of promotional activities and channels, and more for launching a new venture - Delish-on-the-go Restaurant.

Launching a New Venture

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Identification of specific target markets and competitive analysis...................................3
P2 Specific tangible and intangible resources that required for a new venture......................5
TASK 2............................................................................................................................................6
P3 Formulation of credible proposal to launch a new venture...............................................6
P4: Skills and capabilities required to launch a new venture.................................................7
TASK 3............................................................................................................................................8
P5 Determination of promotional activities and channels for launching new venture...........8
P6 Formulation of appropriate promotional activities plan for both launch and pre-launch. 9
TASK 4..........................................................................................................................................10
P7 Monthly cash budget for the pre and after launch phase.................................................10
P8: An appropriate legal form for the venture......................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
In competitive market, there are different types of ventures which are operating its
business functions to meet market needs and requirements in different way, it supports the
GDP of a nation due to which get maximum support from governmental in terms of filing
legal requirements. The thinking of starting a new venture in market comes in the mind of
entrepreneurs only when they have new and innovative ideas which can differentiate their
new venture from their existing rivals currently operated in market. It requires specific skills
and knowledge that entrepreneurs should attained in order to make new venture more
successful within shorter period of time. The present assignment report is based Delish-on-
the-go restaurant which is a going to start as a restaurant providing multiple range of food
dishes of different nations in London Market of UK. The project discusses the identification
of the target market and competitive analysis, types of resources utilised to start a new
venture, credit proposal, skills and capabilities of entrepreneurs to make venture more
successful, promotional activities and channels, cash budget for both pre and post launch
phase and an appropriate legal form for the venture.
TASK 1
P1 Identification of specific target markets and competitive analysis
Delish-on-the-go restaurant is a multi-cuisine restaurant which is going to launch in
London Market with an aim of earning huge profits as well as facilitating people of UK to
taste the food of different nations at one place. The special items included in their offering list
is chicken rice, tacos, Som Tam, Masala dosa etc. which can easily attracts maximum number
of customers within shorted time period. The idea of starting a restaurant came into mind of
entrepreneur when they have been observed that mostly people of UK especially in London
where large number tourists are visited every year prefer to visit restaurant for dinner,
breakfast etc. on daily basis. It will ensure entrepreneur to generate huge profits within
minimum time period. The decision of deciding London as location of restaurant made after
identifying that London is more popular for tourist destinations which attract maximum
number of people from different nations every year. This will definitely increases their sales
and sustainability in market within less time period (Baron and Tang, 2011).
The restaurant is launched in partnership due to which it has been following all rules
and regulations made by government for partnership firm. To establish a restaurant in
London, the entrepreneurs have purchased around 1700 square feet near London Eye on a

lease of 4 years with the purpose of continuing its operations without any obstructions. As it
is formed in partnership thus it is easy for entrepreneurs to manage funds as all partners
brings certain portion of capital as mentioned in partnerships deed along with the raising
capital from different sources such as bank, venture capital etc.
Objectives:
 To generate huge profits.
 To facilitate people of London to taste the dishes of different nations at one place.
 To achieve brand image and huge sustainability in market.
 To make changes in their offering list on regular basis.
Mission: The mission of Delish-on-the-go restaurant is “to serve maximum number of
customers to taste the food dishes of different nation at one place and increases their
satisfaction level to achieve their loyalty for longer period of time”.
Target Market: Before entering into market, the entrepreneurs has targeted particular
market whose needs and preferences are taken into consideration. The market is segmented
on three basis which includes Demographic, Geographic and Psychographic. It is important
for a venture to segment the market which makes easy for them to identify the people having
common needs and preferences due to which the decisions and plans can be implemented
accordingly to fulfill their requirements. It can be further discussed as under:
Demographic: Under this, the market is segmented on the basis of different variables
which include gender, age, income level, religion etc. This will help in understanding the
people having similar needs preferences. For example, Delish-on-the-go restaurant offers
dishes of different nations which can easily attracts youth as they are more likely to visit at
restaurant on regular basis (Burns, 2017).
Geographic: Under this, the population of London is divided on the basis of geographical
location. It helps in assessing the amount of people where the new venture can receive huge
demand of their products. For example, Delish-on-the-go restaurant has targeting London due
to having number of tourists who are preferring to taste dishes of their own nation.
Psychographic: Under this, the population of London is segmented on the basis of
lifestyle and buying behaviour. As generally middle and higher income level group prefer to

visits restaurant on regular basis due to having more purchasing power. Therefore, Delish-on-
the-go restaurant has targeting these groups to increase their sales and revenue.
Competitive analysis:
This is essential for a new venture to analyse its competitors first before deciding to
enter into market. According to the market research done by Delish-on-the-go restaurant, it
has been observed that there are large number of restaurants are already exist in London to
attract people which includes Led Bury, Bar 61 Restaurant etc. Such high competition forces
Delish-on-the-go restaurant to bring something new in their menu offerings that will help
them in differentiating their restaurant from such rivals in customers’ mind. Due to this, the
restaurant has offering quality food items of different nations at one place (Duggal and
Sassoon, 2015).
P2 Specific tangible and intangible resources that required for a new venture
There are numerous resources which are required to arrange and manage inside
stipulated timeframe to successfully build up the business activities of new venture. Such
resources are divided into two parts, for example, tangible and intangible. There is immense
significance of these resources during process of providing services to customers in powerful
way. Tangible resources are such which are available in physical frame, for example,
representatives, funds, land and equipments and so forth. On the other hand, intangible
resources are such which are critical to give benefits yet cannot be seen. Delish-on-the-go
restaurant is a restaurant which gives various dishes like Thai, Chinese, Spanish, Sea food
and much more. Additionally, they gives the services of Take-away which is most
appropriate as indicated by the circumstance which is available where they going to begin
business. It is the obligation of the partners of the restaurant is to viably apportion resources
and ideally use them in accomplishment of desired targets. The diverse sort of tangible and
intangible resources which are required is characterized underneath:
Tangible resources: This incorporates the depiction about such resources which are
available in physical frame and give their efforts in establishing restaurant in market within
shorter time period. Such unique kind of resources which are to begin the business of
restaurant in competitive market incorporates land and building, furniture, representatives,
funds etc. One of the critical tangible asset is finance which is required to have in sufficient
add up to get every single other asset. This will enhance the internal strength of restaurant
which helps in fascination of the huge number of clients. Availability of wide range of food

items can be made only if the restaurant has human capital and other resources for proper
utilisation (Fernhaber and Li, 2013).
Intangible resources: Intangible resources are such which are absent in physical frame
but rather having the huge commitment behind the accomplishment of the new venture. The
diverse perspectives which are considered under intangible resources incorporate trademarks,
culture, customer-employee relation etc. Additionally, in the activity of new business some
new thoughts and advancements are developed which are required to secure with the aides of
various intellectual property rights, for example, copyrights, trademarks and patent and so on.
It is considered as the intangible asset which keeps the development of restaurant which they
get the taste and quality of food. Branding is the essential element which incorporates
utilization of image or marl through which restaurant is effectively perceived by the
customers in market. It assists them in building their different identity in the market through
which they can achieve competitive edge and enhances the possibility of achievement of
success within shorter time period. There are expansive number of advantages which are
related with the intangible resources which are accumulated by the referred to restaurant like
identity in market, representatives participation, goodwill and so forth. Delish-on-the-go
restaurant is required to receive customer relationship approaches as it manufactures
successful bond with them. Accomplishment of the trust and reliability of customers
contribute in their retention for longer timeframe (Gerasymenko, De Clercq and Sapienza,
2015).
TASK 2
P3 Formulation of credible proposal to launch a new venture
An appropriate plan is must present with the entrepreneurs in order to make their new
venture more successful within shorter period of time. Achieving mission and objectives
requires an effective plan which is must required to be formulated by entrepreneurs with the
help of using their skills and market knowledge. Such plan can be made according to the
following structure which makes easy for entrepreneurs to make effective decisions for the
future growth of restaurant (Hmieleski, Cole and Baron, 2012).
Executive Summary A restaurant named as Delish-on-the-go restaurant is going to
launching in London Market with having number of food dishes
offerings popular in different nations with a clear objective of earn

huge profits and capture large market share of London market.
Company description Delish-on-the-go restaurant is started as restaurant in partnership in
London market in order to facilitate people of different nations to
taste their home country’s popular dishes at one place. The main
offerings in their menu list are chicken rice, tacos, Som Tam, Masala
Dosa etc.
Market Analysis Business environment brings more complexities towards business
through internal and external factors which can either make positive
or negative impact on their existence in market. Such factors include
employees and customer behaviour, demand of suppliers,
technological advancements, and fluctuation in political system etc.
For this, PESTLE and SWOT analysis is much effective to conduct in
order to analyses such factors and make easy for entrepreneurs to
make decisions related with the future growth of restaurant in market.
Financial projection Acquisitions of valuable resources such as land and building,
employees, cooking equipments etc. can be easy for new business if
they have enough financial resources. For this, entrepreneurs should
raise funds on their own as well as from financial institutions such as
Banks, Venture capital etc.
Benchmarking Launching a new venture requires proper plans to execute activities
which support them in an effective establishment in market. For this,
entrepreneurs must set benchmarks towards itself as well as their
employees which brings motivation among them to work hard and
give their maximum contribution in achievement of growth and
success within shorter period of time
P4: Skills and capabilities required to launch a new venture
Behind the accomplishment of every new business there isn't just the help of tangible
and intangible assets yet in addition the skills and capacities of entrepreneurs assume a vital
job to viably do the diverse activities of new business successfully. Such skills give the
chance to think diverse in risk circumstance from ordinary people and embrace appropriate
solutions for expulsion of such issues. Great skills in the entrepreneurs give the additional

edge to their identity which gets new and creative plans to achieve their pre-determined
objectives. Such unique kind of skills and capacities which are required to have by the
entrepreneurs is characterized underneath:
Ability to manage funds: Money is the vital perspective which is essential from the
initial stage to its execution. At the time of launching a new venture huge amount of funds
and assets are required and sources are restricted. In this way, the skills and abilities of
entrepreneurs in regards to viable management and allocation of funds brings maximum
return in near future (Kariv, 2013).
Ability to fund-raise: Funds are essential need to every last phase of business and it
isn't conceivable to begin the business through their very own investments. In such manner,
to achieve success entrepreneurs required to have persuading ability through which they can
raise assets from various sources effortlessly like banks, money related establishments,
speculators, private funders and so on.
Ability to identify strengths and weaknesses: To achieve success entrepreneurs need to
evaluate qualities and shortcomings which enhance their understanding about their future
decision making. It gives the open door is to utilize their strengths in desired areas to
overcome its weaknesses and brings out maximum possible results for restaurants in market.
Risk taker: At the time of launching a new business extensive number of difficulties
and risks are emerge which impacts the execution in negative way. Along these lines, to
achieve accomplishment in their business entrepreneurs is required to have the ability of risk
taking this keeps shellfish in troublesome circumstances and take compelling decisions.
Leadership skills: It is vital to have leadership skills by the entrepreneurs which inspire
alternate workers to give their best in association. This aides in arrangement of good groups
inside the association to achieve the objectives inside given timeframe (Read and et. al.,
2016).
TASK 3
P5 Determination of promotional activities and channels for launching new venture
There are numerous promotional alternatives and channel are accessible which can be
utilized by the Delish-on-the-go restaurant for promotion of their contributions in market.
Such extraordinary sort of options which they can utilize are characterized underneath:

Social media platform: There are numerous online platforms such as social media
which are accessible and can be utilized by the restaurant to publicize their diverse sort of
items and services in UK market. This will incorporates Facebook, Instagram, Twitter and so
forth. It is most essential since it serves to effortlessly reach towards their objective market
customers which are youth generation (Simon and Shrader, 2012).
Mobile Billboards: It is another viable promotional tool which can be utilized to grab
an attention of targeted people through giving the sufficient amount of information about the
offers of restaurants. It incorporates utilization of turns of phrase, stickers, logo and so forth.
It helps in making their own identity as compared with their rivals.
Personal promotions: This will incorporate the utilization of strategies, for example,
distribution of catalogues and brochures for promotion of their business between nearby
network. The significance of this strategy that it makes face-to-face communication with
targeted people which makes easy to recognise their actual needs and preferences. It
constructs successful bond with targeted people through which they can achieve their trust
and steadfastness.
P6 Formulation of appropriate promotional activities plan for both launch and pre-launch
It is essential for Delish-on-the-go restaurant is to structure distinctive promotional
activities for both pre launch and launch of restaurant. It is essential for them since high
rivalry is prevail in market and numerous huge restaurants having great clients base. Along
these lines, such launch occasions gives the open door is to make the enthusiasm of clients
towards opening of their new restaurant.
Pre-launch promotion: This will incorporates the procedure under which activities are
structured before the launching of restaurant. It incorporates preparation of websites through
which they can speak with their clients and give data about their items, services, and cost and
so on.
Launch: At this stage opening gathering are made where media representative and big
name is welcome to reach information of new restaurant in market. Through welcome of
media representatives the news is distributed on daily papers and broadcast on TV
additionally which makes their popularity among people. Such stupendous opening
gatherings furnish the chance to attaché with targeted people at extremely introductory stage
(Simon. and Shrader, 2012).

TASK 4
P7 Monthly cash budget for the pre and after launch phase
Cash budget is a statement showing cash inflow and outflow for a business over a
particular period of time. It is essential for entrepreneurs to prepare such kind of statement
which assist them whether the restaurant has enough cash to operate or should make
decisions regarding raising funds from other sources such as Banks etc. Therefore, here is the
cash budget of Delish-on-the-go restaurant before the launch of restaurant and after first 12-
18 months (Yu, Chen and Nguyen, 2014).
Cash budget of Delish-on-the-go restaurant before launch
Year 2015 Jan Feb Mar April May
Food Sales amount 42,152 42,563 43,526 43,568 44,124
Beverage Sales 19,751 12,451 12,456 13,452 14,528
GROSS SALES (Total) 61,903 55,014 55,982 57,020 58,652
COGS
Food 14,525 14,046 14,364 14,377 14,561
Beverage 6,515 3,113 3,114 3,363 3,632
GRAND TOTAL 21,040 17,159 17,478 17,740 18,193
GP 40,863 37,855 38,504 39,280 40,459
General and
Administrative
Workers Salaries 15,476 13,754 13,996 14,255 14,663

Management Salaries 3,400 3,400 3,400 3,400 3,400
Employer
Taxes/Benefits (15%
Wages) 2,265 2,058 2,087 2,119 2,168
Employees
Compensation (6%
Wages) 1,133 1,029 1,044 1,059 1,084
Advertisement 800 800 800 800
800
Bookkeeping 150 150 150 150 150
Credit Card Charges
(1%) 619 550 560 570 587
Insurance 250 250 250 250 250
Legal and Professional
Fees 100 100 100 100 100
Misc. Other 250 250 250 250 250
Office Supplies 175 175 175 175 175
Rent 3,200 3,200 3,200 3,200 3,200
Repair and
Maintenance 300 300 300 300 300
Small Equipment 200 200 200 200 200
Telephone [phone]
Garbage 200 200 200 200 200
Utilities 1,200 1,200 1,200 1,200 1,200

Total Gen. and Admin.
(Fixed) 29,867 27,766 28,062 28,378 28,876
NET PROFIT OR LOSS 10,996 10,089 10,443 10,901 11,583
SBA Loan 3,582 3,582 3,582 3,582 3,582
Cash Flow After
Financing 7,414 6,507 6,861 7,319 8,001
Draw 4,000 4,000 4,000 4,000 4,000
Net Cash Flow 3,414 2,507 2,861 3,319 4,001
Accumulated Cash
Flow 5,921 8,782 12,101 16,102
Average Daily Sales /
22 days 2,814 2,501 2,545 2,592 2,666
Cash budget after first 12-18 months
June July Aug Sept Oct Nov Dec
YTD
2013
44,325 44,658 45,210 45,325 46,251 46,325 47,125 5,35,152
15,574 15,487 16,421 16,251 17,452 17,245 17,845 1,88,913
59,899 60,145 61,631 61,576 63,703 63,570 64,970 7,24,065
-
14,627 14,737 14,919 14,957 15,263 15,287 15,551 1,77,215
3,894 3,872 4,105 4,063 4,363 4,311 4,461 48,806

18,521 18,609 19,025 19,020 19,626 19,599 20,013 2,26,021
-
41,379 41,536 42,606 42,556 44,077 43,972 44,958 4,98,045
- - - - - - - -
14,975 15,036 15,408 15,394 15,926 15,893 16,243 1,81,016
3,400 3,400 3,400 3,400 3,400 3,400 3,400 40,800
2,205 2,212 2,257 2,255 2,319 2,315 2,357 26,618
1,102 1,106 1,128 1,128 1,160 1,158 1,179 13,309
800 800 800 800 800 800 800 9,600
150 150 150 150 150 150 150 1,800
599 601 616 616 637 636 650 7,241
250 250 250 250 250 250 250 3,000
100 100 100 100 100 100 100 1,200
250 250 250 250 250 250 250 3,000
175 175 175 175 175 175 175 2,100
3,200 3,200 3,200 3,200 3,200 3,200 3,200 38,400
300 300 300 300 300 300 300 3,600
200 200 200 200 200 200 200 2,400
150 150 150 150 150 150 150 1,800
200 200 200 200 200 200 200 2,400
1,200 1,200 1,200 1,200 1,200 1,200 1,200 14,400

29,256 29,331 29,784 29,768 30,416 30,376 30,803 3,52,684
-
12,122 12,205 12,822 12,788 13,661 13,596 14,155 1,45,361
3,582 3,582 3,582 3,582 3,582 3,582 3,582 42,984
8,540 8,623 9,240 9,206 10,079 10,014 10,573 1,02,377
4,000 4,000 4,000 4,000 4,000 4,000 4,000 48,000
4,540 4,623 5,240 5,206 6,079 6,014 6,573 54,377
20,643 25,266 30,505 35,712 41,791 47,804 54,377
2,723 2,734 2,801 2,799 2,896 2,890 2,953
P8: An appropriate legal form for the venture
There are various forms of legal structure which has been followed by organisations on
the basis of their nature and size. Therefore, an entrepreneur has three options to launch a
new venture which includes sole proprietorship, partnership and companies. It can be further
understood as under:
Sole proprietorship: It is kind of business which is owned and monitored by single
person known as sole trader due to which all the rights and power to take decisions for the
betterment of firm are kept with itself only. Such sole trade is personally liable that means all
debts and losses can be recovered by selling personal assets as well. It is simplest form of
business due to having less rules and regulation followed by owner while incorporating.
Partnership firms: It is another effective form of business in which two or more person
meet together and decide to start business to achieve common objective by entering into
contractual agreement known as partnership deed. The liability of partners is limited that
means they are liable to pay debts of company upto the amount of capital subscribed by them
in business.

Company: It consists of private and public company which is owned by private individuals as
well as government. It follows strict rules and regulations formulated by government. For
example, private company are prohibited to allot shares directly to the general public.
In the present report, Delish-on-the-go restaurant is formed as restaurant in partnership
due to which it required entrepreneurs to follows all rules and regulations implemented by
government for the partnership business (Launching a new venture, 2018).
CONCLUSION
It has been concluded from the above project report that an entrepreneur can only decide
to launch a new venture of they have new and unique ideas in terms of offerings to public so
that existing rivals cannot be much affected their business operations. It is also required to
have sufficient amount of resources which can assist new business venture to execute its
functions more effectively. Such resources include tangible and intangible. It also required
for entrepreneurs to prepare an appropriate cash budget in order to assess their financial
capabilities which makes easy for them to make decisions regarding raising funds from
various sources such as Banks.

REFERENCES
Books and Journals
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Online
Launching a new venture 2018. [Online]. Available through:
<https://www.exed.hbs.edu/programs/lnv/Pages/default.aspx>.