Launching a New Venture: Identifying Target Markets and Resources

This document discusses the process of launching a new venture, including identifying target markets, conducting competitive analysis, and determining tangible and intangible resources required. It also covers the planning of a credible proposal and the skills and capabilities needed for a successful launch. Additionally, it explores promotional activities and channels for launching a new venture.

Launching a new
venture

TABLE OF CONTENT
Launching a new venture..........................................................................................................1
INTRODUCTION......................................................................................................................3
TASK 1......................................................................................................................................4
P1. New venture identifying particular target markets and undertaking competitive analysis
................................................................................................................................................4
P2. Particular tangible and intangible resources that required for a new venture:.................5
TASK 2......................................................................................................................................6
P3. Planning of credible proposal to launch a new venture...................................................6
P4 Skills and capabilities which are required to launch a new venture.................................7
TASK 3......................................................................................................................................8
P5 Identification of promotional activities and channels for launching a new venture.........8
P6 Design an appropriate plan for promotional activities for both pre-launching and after
launching................................................................................................................................9
TASK 4......................................................................................................................................9
P7 Produce itemized monthly cash budget for the pre launch and after launch phase..........9
P8 An appropriate legal from for the new venture Dream Delicious restaurant.................13
CONCLUSION........................................................................................................................13
REFERENCES.........................................................................................................................15

INTRODUCTION
There are several kind of new venture are start in front of entrepreneur thus help to
achieve profits as well as demand of potential clients in an effective manner. . The leader

must possess the quality of assessing the change in future hence making the strategy
accordingly. Another skill which is required is communication skills. This skill is very
important for new venture as it ensures the successful launch of the firm in initial time period.
This skill is beneficial when the idea of the business it communicated to the investors. In this
report food restaurant (Baron and Tang, 2011). This restaurant good services and delight
customers help firm’s mouth to mouth publicity which occurs no cost to the owners and build
positive image among people. In this report covers identification of new venture in specific
target market, planning of launching new product, tangible as well as intangible resources or
many more.
TASK 1
P1. New venture identifying particular target markets and undertaking competitive analysis
Dream delicious is a new multi cuisine restaurant launched at the location of central London.
The restaurant is started with an aim to provide world class services to its customer. Since the
organisation has started itself in food product it needs to get food license and other required
document for the same. London is a tourist destination place; keeping this in mind the
restaurant provides a high range of food product: Thai food, Chinese food, Italian food and
many more. In order to provide more service to provide its customer the restaurant also gives
home delivery facility. Since it is located in Central London it was decided to open the
restaurant for 4 hours so that the tourist could get the food anytime. The restaurant is formed
in the company form so that it could expand itself in the other region of U.K (Bijker and et.
al., 2012). Restaurant is made on a land of 1000 Sq. feet which has all facilities from Roof
top to garden area services to the cabin food serving. The Company acquired a loan of
£100000 to 120000.
Restaurant is opened to achieve certain objectives:-
1. To deliver quality food to customers tourist of London.
2. To fill the gap of demand and supply in the nigh.
3. To capture market share.
4. To earn profit and sharing it with its stakeholders.
5. To start restaurant in multiple locations.
Mission: “Delivering variety food to its customers with premium quality”.
 Target:
This business is aim to achieve and understand certain target markets. Moreover this the
business target to particular market and people. Below is the list of target:
1. Geographical segment: In geographical segmentation the area is divided into
multiple portions. On the basis of that one most suitable area is selected on the ground
of matching the area with the objectives. The central London is selected on the basis
of suitability that it is the most attracted and crowded place in the London. Since it is
placed in central location it will is an easily reachable place.

2. Demographic Segment: In demographic segmentation age, income and life style is
selected. The restaurant is aimed at giving services to middle and high income group.
The restaurant appeals to business class and give services according to that. The target
age group is between 20 to 55 who discovers and explore new things.
3. Behavioural Segment: Behaviouralsegment implies to the psycho of the people.
High quality conscious people are target by this venture. People who are open to new
thing and different pattern are aimed to attract.
 Competitive Analysis
There are various competitors in the market for the Dream delicious. These competitor has
already an established business in the market for a long time and enjoys a level of customer
trust (Burns, 2017). Since competitors are in the business for a long time they have
competitive edge in the operation part of restaurant. They have become efficient in the
restaurant functioning.
P2. Particular tangible and intangible resources that required for a new venture:
A business is run by various resources which need to manage in the way that gives the
optimum output in less input. These resources are divided into two parts:
Tangible Resources: Tangible resources are those which can be seen or touched. Tangible
source are also considered as the asset of the firm. These resources are known as financial
resource, Human resource, Materials and operations,and machinery. Among these resources
fund management is the most critical aspect. The success of any venture is measured by the
efficient management of its funds. The proper management is fund i.e. inflow and outflow of
cash is the most important aspect. All other resources of firm depend upon the financial
condition of the firm. The next important resource is human resource of the firm. Human
resource is an asset of the form which carried out all the activities of the organisation. The
successful of the business largely depends upon the quality of its human resource (Caselli and
Negri, 2018). Efficient the staff of the firm higher the success ratio of the firm. The proper
management of human resource is important to gain competitive edge over others. The next
resource is Material and machinery. Higher the quality of the raw material better would be
the final product.
Intangible resources: Intangible resources are those which cannot be touched or see. These
resources are felt by the experienced. These intangible resources are very crucial in the
service industry because services are considered to be intangible in nature. Since restaurant
business offer goods to its customer it also offers services as well. This business is a blend of
physical good and services. The most important intangible resources are Intellectual property
right, Skill inventory and process. Intellectual property stands for the legal right on the
manufacturing of certain good or on any process. In the service industry business houses
owns various patents and copyrights. In this food business the firm also enjoys licenses and a
copyright over its special dish. Another important resource is skills inventory. To run any
business successfully firms needs to have high skill inventory. The top management needs to
have leadership skills to run the business successfully. Leadership skill si required to give
overall direction to the firm as well as it also ensure the long term success of the firm. The

middle management needs to have managerial skills (Fernhaber and Li, 2013). Middle
management follows the instruction of top management these are the people who manage the
execution of work. Hence they need to be highly skilled on their managerial part. The last
level is low level management or what they are known as employees. These are the people
who execute the work. They needs to be technically sound to deliver the product as per the
company’s guideline.
TASK 2
P3. Planning of credible proposal to launch a new venture
To launch any new business it needs to have a proper planning of its operation. It is
also needed to an in-depth research of market and competition. It is a lengthy procedure and
takes around 1 to 2 months to complete this process. Given below the Proposal of the new
venture:
Executive
Summary
Dream delicious is company of central London. It works in food
business. The firms are new in market. It delivers fresh and quality
food to its customer.
Company
Description
The company owns 7 directors and each have contributed £1200 in the
business.The company offers various new dishes of different nation.
The company differentiate itself from its customer by focusing on
promoting new and innovative food offering to the people of London.
It also attracts tourist to come as it almost offer all type of food. The
marketing strategy of the firm is to focus on the mouth publicity. Firm
is 2 months old and created a high buzz in the market. The mission of
the company is to provide the quality foods to its customer. The vision
of the firm is to become market leader in the food industry in next 5
year in U.K. It has also a vision to open food chain restaurant in U.K.
Market analysis To start any business the firm need to have a good knowledge of market. This
comprise of analysis of MACRO factorsand MICRO factors of country. The
MACRO economic factors are Political, economic, legal and ethnological
factors. The firm first need to do analysis these factors. The economic factor
comprise of the GDP of the nation, per capita income and growth rate of the
nation in the world scenario (Hmieleski, Cole and Baron, 2012). The
political factor refers to the favourability of the government in the industry in
which business is entering. The legal aspect includes the registration of
company, licensing of the business operation, rules and regulation. The
technological aspect includes the latest technology in the world. The MICRO
economy factors are those factors which prevail within the firm. This
includes the company policies, stakeholders etc. In market analysis the firm
do research on the potential market, Growth of the industry, problem that
may be effectively addressed by the firm. In marketing it also analysis the
customer expectations and challenges. The marketing tools also include the
activities to promote the business.
Financial Analysis The financial analysis includes steps such as the method of obtaining
the funds. The source of obtaining funds. The management of funds
i.e. working capital management, inflow and outflow of the funds. It
also includes the activities of allocating the funds for various purposes.
Standard of the The firm needs to differentiate itself from the competitor. With

firm reference to this it needs to set some standard which is available with
the competitor. By setting this benchmark firm takes advantage over
others. This done through the innovation in the existing process or
methodology.
P4 Skills and capabilities which are required to launch a new venture
In an established business the firm enjoys the various benefits. When it comes to new venture
they do struggle with various aspects. Sometimes they even find of difficult to survive in a
competitive environment (Kariv, 2013). For a start-up it becomes very important to acquire
and utilize the few most important skills and capabilities. As stat-up faces competition from
the established business they needs to give full focus on these skills and capabilities:-
1. Leadership skills: Leadership skills are required to give overall path to the firm.
Leaders are responsible for the failure or success of any business. An efficient leader
can make a firm successful even in the diverse situation. Leadership skills require
how to lead the company by beating the competition. This requires conceptual skills
in the leader. The leader should be able to foresee the future. This skill becomes
important when employees are hired, because people hesitate with working with new
venture due the uncertainty of survival of the firm. Problem solving skill is another
important skill as it is helpful in overcoming all the issues which comes in running
business.
Risk management: A new venture success is always considered as risky. To run a new
venture successfully it is required to take risk on the basis of risk tolerance capacity of its
own (Klotz and et. al., 2014). It is always wise to take calculative risk so that the damage
could be minimized.
2. Fund management: For a new venture fund is the most critical aspect. In the initial
period when the firm is new the suppliers deny to provide the raw material on credit.
In this situation the firm needs a high amount of working capital to meet the daily
demand. So it is required to have a clear and crisp assessment of fund requirement for
initial 2 years. The best way is to make a projected trading account and balance sheet
of the for the initial 2 years. It is wise to hire an experienced person to manage the
fund requirement of the firm.
3. SWOT analysis: The meaning of SWOT is strength, weakness, opportunity and
threat. The firm operate in a competitive environment which is affected by the
industry change, Nation economy change and changes at the world level. Since it is
required that the firm must have the knowledge of its strength so that it could
capitalize the opportunity of the Macro environment. It also needs to be aware about
it weakness so that it could minimize it weakness. By identifying own weakness the
firm tries to reduce it with doing continuous improvement in it and converting it in
strength.

TASK 3
P5 Identification of promotional activities and channels for launching a new venture
There are various platforms available for promotional activities for launching a new
venture to communicate customers about the offering of Dream Delicious restaurant in
market. There are various methods of paid advertising use for the promotion before launching
to get benefits. These are following:-
 Social media:-
Social media includes the paid promotion on social sites like:- Facebook, Twitter,
LinkedIn ,Instagram etc. today’s world these sites are provide best platforms to reach target
customers and create curiosity among customer how are offering different from others? and
also connect numbers of people (Kuratko and Hornsby, 2017).
.
 Personal promotions:-
Dream Delicious restaurant also use the personal promotional activities like
distribution of pamphlets, catalogues and brochures to local area to reach their target
customers. This method benefits is to face to face interaction to people and also know
about people response about their activities and well communicate about their
offering.
 Broadcast advertising:-
This method can be use to reach a large numbers of customers through television,
radio and outdoors advertising but television advertising is quite expensive for the
owners of new venture so they can go for radio advertisement and outdoor
promotional activities like banners, flags, wraps and guerrilla marketing strategies to
inform target customers in creative and unique manner.
 Digital Media:-
Digital media includes the adverting through digital platform like internet,
Smartphone and other platform like Google chrome, kindle, website to reach to the
target customers.
 Print media:-
Print media includes the promotion through newspapers, magazines, fillers, brochures
etc. The owner of the Dream Delicious restaurant take the decision according to reach
target customers he wants to target niche market then can go for the promotion
through the fillers and local magazines and newspaper also according the advertising
budget (Read and et. al., 2016).
So an entrepreneur decides its promotional strategy to keep in mind mainly
two factors these are their reach to target customers and budget available for the
promotion activities. In today’s competitive world promotional activities play an
important role to attract customers towards offering of the company and generate
revenue in the business and all entrepreneur discover new ways for this. Now mostly

new ventures promote their offering by using guerrilla marketing strategy which
works cost effective manner and quiet innovative to grab attention of target customers
and defeat from the existing rivals at the marketplace.
P6 Design an appropriate plan for promotional activities for both pre-launching and after
launching
In the world of competition and dynamic changes all organization have to design and
developed their plan respect to promotional activities to not only to aware about firm’s
offering but also create curiosity about the offering. It will help firm to reach more and more
customer base and compete with existing rivals of the industry. Promotional and advertising
activities are as important for both existing and new venture (Morris, 2015). So the new
venture Dream Delicious restaurant owner will have to prepare its promotional strategy for
both pre launch and after launch. So they can take following steps these are:-
 Pre launch promotional activities:-
This can be involves various activities which depend upon basically target segment
and identify the ways to reach them. For the Dream Delicious restaurant promotional
activities owner can use multiple sources and then spends its funds on advertising for
this it can be develop restaurant website and define the offering and services provides
by the restaurant and how is it different from other restaurant through its specialty to
satisfy customer needs.
 After launching promotional activities:-
Pre- launching promotional activities create awareness among the people about the
offering of the firm (Robb and Watson, 2012). In this to attract customer owner and
management team can work on their pricing strategy to attract more and more
customers through deal with e –wallets, food sites, coupons, family offers ,discount
vouchers and intensive promotion through social sites and media.
TASK 4
P7 Produce itemized monthly cash budget for the pre launch and after launch phase
Cash budget provides information of the monthly cash inflows and outflows of the
company respect to different operations and also provides the estimate how to fund use and
manage so the daily operations of the company can’t affect to it because shortage and excess
of the fund is not good.
cash budget Dream Delicious restaurant pre launch.
Year 2015 Jan Feb Mar April May
Net Sales( food) 45000 47500 49000 50000 55000

Net Sales(Beverage) 15000 15,500 15000 20000 25000
GROSS SALES (Total) 60000 63000 64000 70000 80000
Cost of goods sold
Food 25000 26000 27000 30000 34000
Beverage 5000 5500 5000 5000 6000
GRAND TOTAL 30000 31500 32000 35000 40000
Gross profit 30000 31500 32000 35000 40000
Administrative Expenses
Workers Salary 10000 10000 12000 12000 15000
Management Salaries 3000 3000 3000 3000 3000
Employer
Taxes/Benefits (15%
Wages) 1500 1500 1800 1800 2250
Employees
Compensation (6%
Wages) 600 600 720 720 900
Advertisement 1000 1000 1000 1000 1000
Insurance 200 200 200 200 200
Legal fees 100 100 100 100 100
Misc. expenses 200 200 200 200 200
Rent 3,000 3000 3000 3000 3000
Repair and Maintenance 100 100 100 100 100
Small Equipment 200 200 200 200 200
Telephone exp. 100 100 100 100 100

Garbage 100 100 100 100 100
Utilities 1000 1000 1000 1000 1000
Total Administrative
expenses (Fixed) 21100 21100 23520 23520 27150
NET PROFIT 8900 10400 8480 11480 12850
Interest on loan 2000 2000 2000 2000 2000
Drawing 2000 2000 2000 2000 2000
Net Cash Flow 4000 4000 4000 4000 4000
Accumulated Cash Flow 4900 6400 4480 7480 8850
Average Daily Sales/28
days 2142.87 2250 2285.41 2500 2857.14
Cash budget Dream Delicious restaurant after launch.
Year 2018 June July Aug Sept Oct Nov Dec
Net Sales(FOOD) 60000 65000 70000 75000 80000 85000 90000
Net Sales(Beverage) 15000 15,500 15000 20000 25000 30000 35000
GROSS SALES (Total) 75000 80500 85000 95000 105000 115000 125000
Cost of goods sold
Food 29500 34750 37500 42500 46500 47500 47500
Beverage 5000 5500 5000 5000 6000 10000 15000
GRAND TOTAL 34500 40250 42500 47500 52500 57500 62500
Gross profit 34500 40250 42500 47500 52500 57500 62500

Administrative Expenses
Workers Salary 10000 10000 12000 12000 15000 15000 15000
Management Salaries 3000 3000 3000 3000 3000 3000 3000
Employer
Taxes/Benefits (15%
Wages) 1500 1500 1800 1800 2250 2250 2250
Employees
Compensation (6%
Wages) 600 600 720 720 900 900 900
Advertisement 1000 1000 1000 1000 1000 1000 1000
Insurance 200 200 200 200 200 200 200
Legal fees 100 100 100 100 100 100 100
Misc. expenses 200 200 200 200 200 200 200
Rent 3,000 3000 3000 3000 3000 3000 3000
Repair and Maintenance 100 100 100 100 100 100 100
Small Equipment 200 200 200 200 200 200 200
Telephone exp. 100 100 100 100 100 100 100
Garbage 100 100 100 100 100 100 100
Utilities 1000 1000 1000 1000 1000 1000 1000
Total Administrative
expenses (Fixed) 21100 21100 23520 23980 27150 27150 27150
NET PROFIT 13400 19150 18980 11480 25350 30350 35350
Interest on loan 2000 2000 2000 2000 2000 2000 2000
Drawing 2000 2000 2000 2000 2000 2000 2000
Net Cash Flow 4000 4000 4000 4000 4000 4000 4000

Accumulated Cash Flow 5400 11150 10980 3480 17350 22350 27350
Average Daily Sales/28
days 2678.57 2875 3035.71 3392.86 3750 4107.14 3214.28
P8 An appropriate legal from for the new venture Dream Delicious restaurant
There are many types of legal structure for the new venture depends upon the need and
requirement of a firm choose its structure. Here we describe the characteristic of the some
legal firm. These are as follows:-
 Sole proprietorship firm:-
In this business starts by a single person and known as owner of business. This type of
form is suitable for the business where funds requirement are low and owner ready to
bear all loss of business and control the business by himselves. Legal formality of this
kind of form is not so much complicated (Simon and Shrader, 2012)
.
 Partnership firms:-
This types of form involves start the business by two or more partners by an mutual
agreement to achieve particular objectives. There are various type of partnership deed
exist according interest of businessman. In this liability for loss and profit of partners
respect to their capital and predefined ratio.
 Company:-
According to company act, company is separate legal entity from their owner and it
can be register as public and private company respect to nature of the business. It
must have fulfill to all legal requirement as per the law and formation of company is
complicated respect to sole proprietorship and partnership.
For the Dream Delicious restaurant start their business as partnership firm so the
owner have available large number of resources to fulfill business needs and reduce the
burden of risk in terms of loss. The partners can manage the different situation by their
abilities and capabilities.
CONCLUSION
From the above report it is concluded new business needed lot strategic work to run
enterprises effectively. In restaurant business it is most required to get quality raw material
because poor quality may affect the health of the customer which will create legal

complication. Good machinery will produce large output with less input. At initial level
company can use cost effective methods of advertising and promotion like guerilla marketing
strategy which capture the large customer attention and make them curious about restaurant
launching and firm can also use different type of tagline and punch line to make them unique
form others and attract people to the new venture offering and also highlights the specialty of
the restaurant through catalogues, brochures, pamphlets etc.

REFERENCES
Books and Journals
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Hmieleski, K. M., Cole, M. S. and Baron, R.A., 2012. Shared authentic leadership and new
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Read, S. and et. al., 2016. Effectual entrepreneurship. Taylor & Francis.
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Simon, M. and Shrader, R. C., 2012. Entrepreneurial actions and optimistic overconfidence:
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Online
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