Entrepreneurship and Business Ventures

The provided report discusses entrepreneurship as an effective process used by entrepreneurs to launch new businesses. It explores different promotional activities, competitive strategies, and market targeting for increasing sales and market share. The report also touches on the importance of formulating a credible proposal and cash budget for launching a new venture into a new market successfully.

Launching a New Venture

Table of Contents

INTRODUCTION
Small businesses or ventures play an important role in contributing maximum support to
the growth and development of economy of a nation by creating lots of job opportunities and
payment of huge taxes to the government which in turn spend for _1544527720 (3)the welfare of
individual and society as a whole. An entrepreneur who has operated its own venture has clear
objective to earn huge profits which motivates them to expand its business operations to global
level. This will not only help them in capturing huge market share but also recognized as strong
brand image in market which in results achieving huge customer base. The present assignment is
based on the 8th Heaven which is engaged in providing wide range of cosmetic products such as
brushes, facial mask, curl lash, synthetic hairs, make-up kits etc. It is successfully operated in
UK due to which an entrepreneur decides to reach its venture to France where the demand of
cosmetic products is high. The project report includes the discussion of specific target market,
tangible and intangible resources, skills required to have present in an entrepreneur to make
venture more successful, promotional activities, cash budget and an appropriate legal form for
the venture.
TASK 1
P1
"8th Heaven" is a newly cosmetic company in UK which already achieved huge success
due to which an entrepreneur decided to further expand its business to France where the cosmetic
industry support maximum to the growth of an economy. There are multiple number of cosmetic
products are available at such firm which includes brushes, facial mask, curl lash, synthetic hairs,
make-up kits etc. As nowadays people are more conscious about their looks and tried to look
pretty which increases the demand of cosmetic products. This will motivate an entrepreneur to
engage in establishing a new cosmetic firm which brings them huge profits. After conducting
market research, it has been identified that France should be a preferable location in Europe for
expansion of business as large contribution towards economy of nations is coming from cosmetic
industries. Due to this, an entrepreneur decides to expand its "8th Heaven" in Paris city in France
due to having huge population compared to other cities. It increases their sustainability due to
huge demand of cosmetic products in France market (Bijker and et. al., 2012).

"8th Heaven" is formed as partnership in which entrepreneur join hands with their
colleagues to implement their new and innovative ideas into action to generate huge revenues.
To establish its firm in France market, they bought a land around 1600 square feet in Paris for a
lease of 6 years so as to continue its business with a hope of achieving huge success. To run its
business operations, the entrepreneurs communicate with different financial investors such as
banks, venture capital etc. and successfully arrange around 350000 to 400000 pound.
Objectives: They mutually establish SMART objectives which are given as under:
 Specific: The business target to hire three new clients to consult about growth of
business.
 Measurable: 60% of sales expected to achieve by selling quality and healthy cosmetic
products.
 Achievable: Target with be desired to achieve within 6 months of establishment.
 Relevancy: Adding more clients to support business to help in growing business.
 Time bound: Hiring should be done within two months
Target market
Before establishing or expansion of firm to particular nation or city, the entrepreneurs
make research in order to identify the people which are easily available to buy their products and
accordingly capture their needs and requirements while making suitable plans and strategies. The
population of France is segmented on the basis of three parts such as Demographic, Geographic
and Psychographic (Caselli and Negri, 2018). Demographic segmentation has been targeted due
to which Paris has been selected to establish new venture due to high number of population.
Geographic: It is based on the geographical location where the demand of offered
products is high. In Paris which is largest populated city of France has attained huge customer
base which are preferred to buy cosmetic products to look pretty and young. All kinds of
cosmetic products offered by "8th Heaven" are skin friendly due to which the chances of
achieving success in market are high.

Demographic: Under this, population is segmented on the basis of characteristics of
individuals such as gender, age, religion, income level etc. Both men and women are nowadays
using cosmetic products with the purpose of looking young and pretty but "8th Heaven" has
mainly focuses on the beauty of women (Duggal and Sassoon, 2015).
Psychographic: In this, population is divided on the basis of lifestyle of customers.
People having middle and higher income level mainly prefer to use cosmetic products due to
which the entrepreneurs targeted them as a target customer in new business.
Interpretation: It has been identified clearly from the above graph that the cosmetic
industry capture huge market share of France. It clearly supports the "8th Heaven" to expand its
business operations to France in order to achieve large share of France market where the
demands of cosmetic items are very high.
Competitive analysis:
In every market, competition is very high due to presence of huge number of competitors
engaged in similar sector. As "8th Heaven" is engaged in cosmetic industry which is decided to

focus on capturing needs and requirements of people of France where number of rivals are
available in the same market (Gerasymenko, De Clercq and Sapienza, 2015). "8th Heaven" is
located in Paris where number of cosmetic companies is already existed such as Estee Lauder,
ALKOS Group etc. which is engaged in same sector. Therefore, to compete with them in more
effective and efficient manner, an entrepreneur along with the taking help of its partners are
required to make an effective decisions and competitive strategies that help their business in
achieving spate identify than their rivals. It can be possible through launching new cosmetic
products for specific group of people which is not yet introduced by anyone.
P2
New venture can be established and operated at global level only if entrepreneurs have an
adequate amount of resources which can be raised or generated. It is an essential need of every
form of business ventures which motivates an entrepreneur to implement their new and
innovative ideas into an appropriate course of action in desired manner. Resources can be of two
types such as tangible and intangible. These resources have their own importance which is used
by the organization in the process. Tangible resources are those which are basically present in
physical form such as funds, employees land, machinery, food items etc. whereas, intangible
resources are those which are valued by an organization but they can not seen or feel by the
organization. Both are raised by different methods but equally important for an organisation to
achieve desired goals and objectives within limited time period. It can be further described as
under:
Tangible resources: It is such kind of resources which can be seen and touched. It
includes land and building, plants and machinery, human resources, products etc. To acquire all
such resources, funds is considered as an important resource which can be raised through various
sources such as financial institution like banks, venture capital, partners’ capital etc. Therefore,
to enter into France market the entrepreneurs of "8th Heaven" should ensure about availability of
financial resources which allows them to execute desired activities in an appropriate manner
(Kariv, 2013). It includes physical resources which needs space to store such as equipments and
tools, machinery etc. and human resources which includes employees who contributes their
efforts in achieving company's desired goals and objectives with the help of their specialised
skills and knowledge.

Intangible resources: It is another type of resources which cannot be seen or touched but
equally important for an organisation to acquire. It includes goodwill, customer relation,
trademarks etc. which can be acquired through operating business in more effective and efficient
manner. For example, producing skin friendly and quality cosmetic products by "8th Heaven"
enhances the customer’s loyalty which makes positive impact on the brand goodwill of company.
This will easily attracts the customers due to being loyal and reliable. Therefore, it is important
for "8th Heaven" to operate its business more smoothly and ethically so as to maximise the
satisfaction level of customers which motivates them to sustain in France market for longer
period of time.
TASK 2
P3
To establish venture in new market and achieve sustainability within shorter time period,
it is more important for an entrepreneur to make an appropriate plan which directs and guides
other team members to execute business operations in more effective and efficient manner so as
to achieve desirable result (Kuratko and Hornsby, 2017). Planning must be formulated after
analyzing the objectives of firm, competitive strategies of rivals, complexities of dynamic
environment etc. Moreover, an appropriate plan for "8th Heaven" has given as under in suitable
format:
Executive Summary "8th Heaven", a UK-based venture which is engaged in cosmetic
industry has decided to reach at global level. After achieving huge
success in UK market, an entrepreneur decided to enter into France
market by establishing its firm in Paris city which is most populated
city than other cities.
Company description "8th Heaven" is UK based company which is engaged in
manufacturing and selling wide range of cosmetic products such as
brushes, facial mask, curl lash, synthetic hairs, make-up kits etc. It is
decided to locate in Paris city where the women of all age groups will
be targeted with their cosmetic products due to receiving huge
demand from them. Nowadays along with female groups, male groups

are also more preferred to buy cosmetic products in order to look
good in their lifestyle. Thus, Launching new cosmetic product by "8th
Heaven" increases the chances of generating huge revenues in new
market.
Market Analysis Market environment consists of various complex factors which cause
uncertainty towards business firms to operate its activities more
smoothly. Such factors includes political and economical fluctuations,
technological changes etc. Which can affect the existence of "8th
Heaven". To analyse and deal with them, entrepreneurs should
conduct PESTLE and SWOT Analysis. This helps in analysing the
factors that may impact on business operations and formulating
appropriate strategies so that operations can be run effectively in
market of France.
Financial projection Funds are essential requirements without which the operations of
company suffer. Every activities related with successfully
establishment of firm requires huge amount of funds which can be
raised through having lots of financial options such as banks, venture
capital etc. It has estimated around around 350000 to 400000 pound
to establish firm into new market. The entrepreneurs of "8th Heaven"
should select such source where they can raise funds within minimum
rate of interest. For example, in comparison to others, Bank Loan is
more suitable one to choose due to charging low rate of interest on
provided loan amount. This help in reducing cost of business.
Benchmarking Forecasting the business environment directs the entrepreneur to set a
benchmark which needs to be achieved within fixed time period. It
brings motivation among team mates to maximise their efforts in
achieving pre-determined targets within limited time period so as to
achieve huge sustainability in new market. Benchmark has been set on
the basis of the rival's strategies and plans. For example, if the rival's
of "8th Heaven" charges lower prices on the similar products offered

by them, then the entrepreneurs set benchmark towards employees to
reduce cost of production so that they can afford to sell at lower prices
as compared with their rivals on the same product.
P4
The difference between an individual and a successful entrepreneur is based on skills and
knowledge that they possess or attained by their experiences and education. There are specific
skills and capabilities which is essential to have present in an individual to become a successful
entrepreneur so that its newly business venture gets huge success in new market within shorter
time period. Such skills and qualities are given as under:
Management skills: Operating business at global level requires management skills that
should be present in an entrepreneur as it assists them in managing limited resources in new
market by distributing it to different departments to execute different activities in profitable
manner. For example, allocation of funds to different business functions such as marketing,
production etc. according to their needs and requirements and managing activities of different
departments in business (Read and et. al., 2016).
Decision making skills: Employees are considered as a real asset of company which
must be utilized by company to achieve its desired goals and objectives. Due to having lots of
complexities of dynamic environment, it must required for an entrepreneur to allot roles and
responsibilities to team members according to their knowledge and capabilities that will bring
maximum possible result to company in terms of achieving huge sustainability. Effective
decision making skills helps an entrepreneur to make effective decisions when challenging
situations arise in business.
Leadership skills: Team members should have proper knowledge about company’s
objectives and visions so as to understand their roles and responsibilities and perform it
accordingly in desired manner. This can be possible only if entrepreneur have leadership
qualities that are capable to lead them from front by building trust and motivation among its team
mates through defining company’s actual goals and objectives (Robb and Watson, 2012).

Risk taking skills: Due to high rivalry and complexities of business environment, risk
factor always present which can affect the company in achieving their desired target within
predetermined time period. To achieve huge sustainability in new market within shorter time
period, an entrepreneur must have risk taking ability which allows them to grab competitive
market opportunities without thinking twice of facing losses.
Marketing skills: Marketing plays an essential role in the success of an organization as it
assist them to identify needs and demands of customers. By knowing it, company can modify
their products accordingly so that customers can satisfy their by using product in exchange of
money. Understanding the need of the customer increases the chances of getting high success
and profitability in the future. Apart from this, it is also important for them to make their
marketing planning activities according to the budget they have and trends which are running
around the target customers.
Communication Skill: It introduces as a main skill which should be have an entrepreneur. With
the help of this, skill, they can easily communicate all information to their employees. Proper
flow of communication will also help a new venture by increasing its sales ans also improving
better relation with them.
TASK 3
P5
Promotion is an essential part of an organization, apart from the quality of products and
services which brings for new venture more success and growth in new market as it help in
creating demand of products through influencing buying behavior of targeted people using
various promotional activities and channels which are described as under:
Social media platform: Nowadays, people are using more internet in order to updating
themselves about the company’s new products and services and make comparisons among them
according to their needs and requirements. Therefore, promoting products and services by "8th
Heaven" using online platform such as social media will easy for them to find its targeted
customers and influence their buying behavior accordingly through communicating and giving
answers to their queries (Simon and Shrader, 2012).

Mobile Billboards: It includes punch lines, logo, tag-line etc. which easily can grab an
attention of maximum number of customers. It consumes less time in creating awareness about
the entry of new venture into new market due to which it will become profitable for "8th
Heaven" to adopt in order to achieve huge customer strengths.
Personal promotions: It is another way of calling customers to buy their products and
services by distributing cards, pamphlets, brochures etc. personally to the people. Visiting
personally to the customers creates trust and reliability among them which in turn enhances their
interest and buying behavior to buy their products at once.
Sales promotions: Sales promotion refers to a activity which persuades customer to buy
the product in exchange of money so that they can satisfy their needs and demands accordingly.
There are many approaches which comes under sales promotion like discount vouchers in which
specific discount or coupon is provided to the customer so that they can buy the product. Other
way of attracting customers is one on one in which if customers buys one product then other
product will be given free. Main motto of using sales promotion is to enhance the brand
awareness in the market so that more potential customers would be attracted to them.
Instagram: It is also consider as an effective tool of promotion which should be followed by new
venture. This tool help an organization to promote their services and products in marketplace.
Thus, it will help them to maintain long term position in marketplace.
P6:
It is the prime responsibility of an entrepreneur to create interest among people of new
market towards their offerings. For this, they need to adopt effective marketing techniques before
and at the time of launching a new business in new market. Due to high rivalry in market, it is
essential for new venture to communicate with people about their offerings along with their
benefits (Yu,Chen and Nguyen,2014). Therefore, promotional activities should be done at the
time of:
Pre-launch: It is the initial stage of doing promotion as it is starting of attracting
customers in new market by preparing their websites which displays the information about the
company and its offerings along with pictures. It is done to achieve trust and reliability of
customers through providing reliable information about company. For instance, before launching

the product, social media platform must be use by the management or owner so that awareness of
the product and brand would be reach out to thousands of people. For people who is living near
by the office, templates would be distributed among them so that more knowledge regarding the
product would be inculcate in them. Main motto of both the techniques is to make the customers
aware about the product by providing information to them so that they can buy the product if it is
satisfying their needs and wants.
Launch: After pre-launching, an entrepreneur now finally launch its new venture into
new market through organizing opening part at which representatives of all medias will be
invited to ask their questions related to their business and further telecasting on TV, Newspapers,
social media etc. It is an effective way of interacting with customers which grab their interest to
buy their products at once.
Financial consideration to start a new business venture:
The financial consideration is very essential to consider at the period of launch of the new
business by the entrepreneurs and this consideration includes:
Minimise overhead: the entrepreneur of new venture is needed to limit the expenses in
the opening and it is achievable to reduce the unneeded expenses which has no favourable result
on the business venture.
Track and monitor spending: It is essential and significant for an entrepreneur to
handle the funds in accurate manner and to pay the amount of cost on useful things that will
cause advantage for the business venture in effectively.
TASK 4
P7:
Cash budget is an estimation of funds required to be invested by an entrepreneur in
execution of various business activities after analysing the actual funds they have at present. It
supports "8th Heaven" in execution of desired actions and plans in an effective and efficient
manner with optimum utilisation of financial resources. It minimises the wastage of funds which
makes positive impact on their profitability. Thus, it is important for an entrepreneur of "8th
Heaven" to prepare a suitable cash flow budget for both at the time of launch and after 12-18
months.

From the above given chart it has been concluded entrepreneurs of "8th Heaven" have
expected to made investment of 8000 pound out of which they invest approx. 1000 in purchasing fixed
assets such as plant and machinery. "8th Heaven" has decided to made sales of over 6200 on credit from
their customers. Overall from above cash flow statement, it has been expected that the liquidity position
of "8th Heaven" is good which drives them to exist in new market for longer period of time.
From the above given data, it has been concluded cash flow statement, "8th Heaven" has
finally invested 8000 pound out of which they spent 3700 pound in purchasing fixed assets and

850 pound in buying direct materials which is used to execute business activities. Overall the
liquidity position of "8th Heaven" is good which increases their sustainability in new market.
P8:
There are different types of venture which are operating its business function in different
way according to their size and purposes. Different kinds of ventures require to fulfil different
legal requirements to establish into new market and follow rules and regulations framed by
government for better functioning. Here are the some kinds of ventures:
Sole trader: It is simplest and easiest form of business which doesn’t require to follow so
much rules and regulations to sustain in market. It is a venture which is owned and controlled by
single person due to which the profit/loss of business is enjoying itself without distributing to
anyone. It requires low investment which is generally established to earn livelihood. It has a
major drawback that due to single owner, he/she is personally liable that means any debts of
company will be paid by selling their personal assets as well.
Company: Private and public are two companies which are different from each other in
terms of their objectives and functioning. Private organisation is owned by group of individuals
with a clear objective of earning huge profits. On the other hand, public organisation is owned
and controlled by governmental authorities by subscribing more than 51% in company. It has
main objective to provide quality products at an affordable prices so as to increase the buying
capabilities of all income group. Company is separate legal entity which means the owners are
not personally liable to repay company debts by selling their personal assets.
Partnership firms: To establish such firm, two or more individuals grouped together and
decided to start a new business to achieve mutual objectives. It is formed through a written
agreement known as partnership deed which contains terms and conditions agreed by all partners
(Launching a new venture, 2018).
In the present report, "8th Heaven" is formed under partnership in which a successful
entrepreneur join hands with their colleagues to start such venture and globalised it to enhance
their profitability. Due to number of partners, the ideas and suggestions are more which will
assist venture to grow more and faster. Large number of sources is also available for funding due

to having contact of partners due to which the business can easily continue its operations for
future without facing any interruptions due to shortage of funds.
CONCLUSION
From the above mentioned information it has been concluded entrepreneurship is an
effective process used by entrepreneur to launch a new business. For this different number of
promotional activities and competitive strategy have been used for increasing sales and market
share within given time duration. Specific market has been targeted first and accordingly
arranges both tangible as well as intangible resources to operate business functions more
effectively. It also required to formulate a credible proposal and an appropriate cash budget to
launch a new venture into new market more successfully. There are various promotional tools as
well such as social media, TV advertisements etc. which can support new venture in establishing
and sustaining in new market within shorter period of time.

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