Launching a New Venture

This document provides insights on launching a new venture, including target markets, competitive analysis, required resources, and promotional activities. It also discusses the skills needed to start a new venture and provides a detailed proposal with contingency planning.

Launching a New
Venture

Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
TASK 1............................................................................................................................................4
P1 Investigate and explain a new venture identifying specific target markets and undertaking
competitive analysis....................................................................................................................4
P2 Specific tangible & intangible resources for new venture.....................................................6
P3. A credible proposal to launch a new venture ......................................................................7
M1 Use a range of techniques for competitive analysis to achieve competitive edge................9
M2 SWOT Analysis of new venture...........................................................................................9
D1 Formulate a detailed proposal that demonstrate analysis of competitive market with
supporting contingency planning to minimise risk ....................................................................9
TASK2...........................................................................................................................................10
P4 Find out the skills that are required to start a new venture at the marketplace....................10
M3 Evaluate range of skills & capabilities needed for launch of new business venture..........11
D2 Discuss supporting costs & timescales that are required for acquiring or developing skills
as well as capabilities. ..............................................................................................................11
TASK 3..........................................................................................................................................11
P5 Various promotional activities that are used by an entrepreneur while launching new Cafe
...................................................................................................................................................11
P6 Form an appropriate promotional activities plan for both launch and pre-launch...............12
M4 Evaluate an appropriate promotional plan for both launch and pre launch........................13
D3 Critically evaluate different promotional activities to support justification.......................13
TASK 4..........................................................................................................................................14
P7 Formulate monthly cash budget for the venture..................................................................14
P8 Applicable legal form for the venture..................................................................................16
M5 Justify an itemized monthly cash budget showing one off costs, opening cost and
anticipated income post and pre launch....................................................................................16

D4 Create a pre and post launch monthly itemised cash budget based on financial resources 17
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20
Books and Journals ..................................................................................................................20

INTRODUCTION
Business plays a vital role in the economy. It is seen that there is a proper process of
launching own business. There are number of challenges that come in path of the business owner
and with his own ability the person is able to solve all the issues faced (Paul and Rosado-
Serrano, 2019). Furthermore, each and every entrepreneur requires abilities that will assist them
in identifying clients and achieving their goals in a timely manner. The report is based on new
coffee shop near Hounslow Central in London. The launches of a new market initiative, as well
as its focused product differentiation, are discussed in this study. In contrast, there is a demand
for tangible and intangible resources that can assist small businesses in establishing themselves
on the market. In addition, the project will address the various abilities and competencies of an
investor. The budget is also mentioned at the end of the report so that the structure of the
business can be properly executed by the entrepreneur.
MAIN BODY
TASK 1
P1 Investigate and explain a new venture identifying specific target markets and undertaking
competitive analysis.
A small coffee shop that would be named as Sophia’s Cafe will sell coffee, cookies,
brownie, and variety of shakes (Birley and Stockley, 2017). Along with that it provides the
option of customised coffee to its customers. They will make use of updated technology to
operate effectively.
Aim
 To provide high quality food to all the customers
Objectives
 To establish strong image in market
 To attract more and more number of customers
 To provide customised product and service to the customers in order to satisfy them
Target market
It is important to know about the target customers of the organisation. It is vital to note
that it helps to satisfy the needs and wants of target customers effectively. Sophia's cafés provide

both value and service to meet the needs of their customers. Young people are its target
demographic, as it has been determined that they prefer to drink coffee and spend time in cafes.
This target market assists the company in achieving its objectives and tasks in a timely manner.
Competitive analysis: It is critical for Sophia's cafe executives to evaluate their
competition and techniques, as well as assist in the development of a more successful plan that
incorporates one's coffee preferences and has a beneficial impact on sales and profit margins. It
helps to formulate policies that will help the company to gain competitive advantage.
Porter’s five forces analysis
There are five forces that help to know about the competition in the market. It is one of
the vital tools that help to gain edge over the competitor’s (Schmutzler, Andonova and Diaz-
Serrano, 2019). It helps to make strategies to work in future and gain advantage over all the
rivalry. The five forces are discussed below:
Threats of new entrants: As it is a profitable business and people like to have coffee and
bakery products. So it is important to formulate strong image in market so that new entrants are
unable to take away the customers. It is important to formulate good relations with the customers
so that they are loyal towards the company.
Competitive rivalry: Sophia's cafe is at threat because there are so many cafes in the UK that
offer identical products and services. Sophia's cafe managers must concentrate on providing
high-quality products and services while also maintaining positive relationships with customers
in order to keep them for longer periods of time.
Bargaining power of buyers: Customers' purchasing power is regarded as powerful as fresh
coffee at Sophia's cafes, and the resource is provided according to the customer's request (Waqar,
Jamil, and Fadzil, 2020). Furthermore, Sophia's cafe needs something unique that will attract
customers and increase sales accordingly. So in this regard they provide customised services to
all the customers.
Threats of substitutes: Sophia's Coffee offers a variety of coffee flavours that are only
available to customers, therefore replacement is unlikely. Managers must create creative
solutions that contribute to increased revenue and profitability in order to keep up with the
competition. But it is vital to note that the competitor’s may provide same products to the
customers.

Bargaining power of supplier: The suppliers are vital part of an organisation. As they
provide raw material to the business organisation. It's a modern café with a small selection of
vendors selling basic materials like coffee beans (Chu, and Yoon, 2021). This is a significant risk
for Sophia's café, thus it is critical for its management to establish positive connections with
suppliers in order to prevent raw material shortages.
With the help of Porter five forces the companies able to analyse the competition that is
present in the market and formulate strategies that will help them to beat the competition and
gain edge over the competitors.
P2 Specific tangible & intangible resources for new venture.
While starting a new venture there is requirement of various resources and it is important
for business organisation to know about the resources as gathering them helps to operate in an
effective manner. It is seen that there is requirement of both tangible as well as intangible
resources. In relation to Sophia's Cafe the requirement of resources is discussed below
Tangible resources are the resources that can be seen touch. These are the resources that
can be calculated in the physical form (Rambe, 2019). The resources that are required for
Sophia's Cafe are ice cream maker, microwave, fridge, cookware, coffee grinder machines and
other kitchen appliances that help to provide Quality Services to the customers.
Intangible resources mean the resources that cannot be touched but they can be felt. It is
vital to know that they are also important for the organisation and it is important to have good
knowledge about the intangible resources for example it includes copyright TM intellectual
property rights goodwill patent extra. In relation to Sophia's Cafe It is seen that they should have
a patent in their own name so that no one can cause any problem in future as well as the focus is
to develop Goodwill in the market as it helps product more customers and set a good image in
the market that helps to earn more profits.
Above is discussion related to the requirement of resources to carry out a new venture it is
suggested to the business organisation and its management to arrange all the resources and
operate effectively
P3. A credible proposal to launch a new venture
An effective proposal is always required before starting a business. It is important to have
creative and innovative plan that helps to attract the customers. Every business entity formulates

a business proposal and presents it so as to work effectively full stop the strategies that would be
adopted by Sofia’s cafe are discussed below:
Executive summary It is a small café that will be established near Hounslow Central
Underground station. The coffee shop will offer variety of food items
like sell coffee, cookies, brownie, and variety of shakes. The aim is to
provide quality services to its customers and capture the market.
Company description Sophia's Café is a small café in the United Kingdom that was bought
by four persons who distributed the profits and losses equally. The
location of the cafe is also rented
Vision
To take the lead in this field by providing innovative and reliable
service to consumers while also considering industry trends and
creative technology.
Mission
To become a popular place for young people, develop a brand identity
as a creative café serving a variety of coffee and food items.
Market analysis Analysing the market is critical for Sophia's Café managers because it
allows them to capture chances and limit the level of difficulties faced
by external variables (Mason and Harrison, 2017). PESTLE Analysis
is used for this function to gain awareness of uncontrollable variables
that have an impact on the company's operations and results.
Benchmarking The guidelines are set by the middle managers in order to keep track on
the team's efficiency. It aids the organisation in improving internal
performance and establishing plans and strategies that take into
account the strategies of its competitors. It would improve in meeting
customer needs and retaining customers for extended periods of time.
Financial projection Sophia's café is a smaller café that starts off with a total deposit
determined on evenly by the number of coffee proprietors. If owners
want to improve performance and meet the desired goals, they must
allow the finances to be used wisely (Fischer, 2021). There are various

sources that are available in the market and the task is to identify and
select the best among them to achieve the goals and objectives.

M1 Use a range of techniques for competitive analysis to achieve competitive edge
One of the effective methods to know about the competition in the market is Porter five
forces model. It is analysed that there is threat of new entrants in the market but if the
organisation will establish a brand image then they may compete (Shirokova, Morris and
Bogatyreva, 2017). In relation to the threat of substitute products the company should offer
quality goods and services to its customers and try to gain loyalty as that will help the cafe to
gain an advantage over the competitors. Along with that it is suggested to Sophia's Cafe that they
should maintain healthy relations with suppliers for that all raw materials are available when they
need and that will also have the company to operate effectively.
M2 SWOT Analysis of new venture.
Strength
There is availability of variety of food products
offered by the café. It will help the
organisation to earn profits.
Weakness
There are numbers of competitor’s that are
available in the market; it is a weakness for the
Café.
Opportunity
Establishing brand image by providing quality
goods and service will help the Café to operate
effectively. As well as expand their operations.
Threat
The pandemic that is faced by the world due to
COVID 19 is a threat for the café.
D1 Formulate a detailed proposal that demonstrate analysis of competitive market with
supporting contingency planning to minimise risk
From the above proposal the business is planning to provide quality service to its customers
and capture the market effectively. It is seen that there are number of competitor that are already
dealing in the same product and providing the same to customer (Stayton and Mangematin,
2019). There is risk that the business but in relation to the contingency plan the Sofia cafe can
start their operations online and by having presence on social media platforms the cafe will able
to serve more customers and make them aware about the cafe. By doing hard work the
organisation can work effectively as well as reduce the risk that is present in the market and earn
a brand position

TASK2
P4 Find out the skills that are required to start a new venture at the marketplace
It is important to have the skills and capabilities to start a new venture and work effectively.
It is observed that there are entrepreneurial capacities as well as the skills that help to start a
business and take it to Heights. It is seen that a person that has ability to conduct proper Research
and identify the problem of customers then change the idea and providing quality services to its
customers is not an easy task. Below is discussion related to the requirement of skills that helped
Sophia's business to become successful:
Risk taker: One of the important quality that is required in a person while being
entrepreneur in starting on business is taking risk. The person that is able to take risk and his
courage to start on venture eliminating or the uncertainty is as well as beating the competition
helps to operate the business effectively (Zapata-Ramos and Lugo, 2020).
Leadership: The person has to lead the whole business team as well as make them work
there is requirement of leadership skill. It is seen that to deal with all the people of the business
and motivate them to work and increase your productivity leadership skill helps to run the
business effectively.
Creativity: It is seen that a creative person is able to get good business ideas and change it
with the nature of environment to earn huge profit (Petrucci, 2019). It is seen that to beat the
competition and gain advantage over the competitors there is need of innovation and creative
mind and that helps to attain all the goals and objective of the business organisation.
Motivation: It's vital to recognise that these people are passionate about their work and are
constantly striving for success. It is the mind set of an entrepreneur to motivating and working in
the pot that they have chosen. They can always count on inspiration to help them get through a
tough situation.
Decisiveness: Another trait of successful entrepreneurs is their ability to make quick decisions
under pressure. They can appraise a situation and don't give in to pressure; instead, they are
patient and make wise decisions.
Communication skills: There is requirement of effective communication skills while
starting a business. The owner of the business has to talk in effective and efficient manner with
customers with the employees as well as other stakeholders to run the business effectively. It is
seen that the communication skills help them to become successful.

Flexibility: Entrepreneurs are regarded to be adaptable rather than rigid. They believe in
adapting to changing circumstances and are never committed to a single decision. They do, in
fact, change their minds depending on the circumstances. It's fair to say that one of the factors
that contribute to becoming a successful entrepreneur is flexibility.
According to the discussion above, it is necessary to have the ability to take risks and be
creative in order to establish a new and effective business in order to become a successful
entrepreneur. It's also looked at whether or not an entrepreneur is innovative and has a clear
vision. They are strong decision-makers, yet they are not rigid in their decisions; rather, they are
adaptable to changing circumstances.
M3 Evaluate range of skills & capabilities needed for launch of new business venture
A range of resources and expertise are necessary to establish a firm venture that requires
outstanding communication skills, problem-solving abilities, time management skills, dispute
resolution skills, and so on (Pollack, Barr and Hanson, 2017). It can be achieved by offering
appropriate training and development opportunities. It will also aid in the delivery of high-
quality service and the building of strong supplier relationships.
D2 Discuss supporting costs & timescales that are required for acquiring or developing skills as
well as capabilities.
It costs the company money and often takes resources to provide training and development
opportunities for employees to increase their knowledge and skills. It has been shown that a
minimum of 25-30 days of practise is required for effective skill development. It will assist an
organisation in ensuring that personnel deal with consumer complaints and meet deadlines.
TASK 3
P5 Various promotional activities that are used by an entrepreneur while launching new Cafe
Promotion is one of the vital activities and it helps in success of the business organisation. It
is seen that there are various promotional tools that are available with the business organisation.
Every business is expected to employ a variety of marketing methods in order to sell its products
in a competitive market. In this case, it means that the advertising manager is in charge of
popularising Sophia's cafe offerings in the industry. According to the cafe, the company has used

a variety of marketing techniques to popularise. So the tools used by Sophia’s Cafe are discussed
below:
Advertisement: One of the most famous works that is done in relation to promotion is called
advertisements. It helps to promote goods and services of the organisation (Corner, Singh, and
Pavlovich, 2017). The marketing director of Sophia's cafe can essentially use a variety of
advertising methods here like recreational ads, pamphlets, leaflets as it helps to encourage the
working of the cafe.
Sales promotion: The main goal of this sales strategy is to give customers in stores a more
reliable supply in a variety of methods. Sophia's Cafe Manager can quickly obtain this vital
information by providing enticing discounts, coupons, display ads, and loyalty benefits to its
consumers. They can also have a beneficial impact on customers by supplying fresh, high-quality
goods at reasonable costs. This helps to enhance the sales of the oragnisation and promote the
product and services.
Social media: This is a unique form of marketing strategy that has been in use for decades. One
of the most cost-efficient and efficient means of advertising has been mentioned: social
networking. The café manager at Sophia's café is likely to have taken advantage of this
advertising technique because it is both cost-effective and produces effective and useful
outcomes.
Based on the review of the above-mentioned promotional techniques, it can be stated that
Sophia's Cafe marketing director strongly feels that applying all of these techniques is cost-
effective. It's also possible that making use of Sophia's entire cafe will immediately get the
interest of potential buyers and will enhance the sales of the organisation as well as profitability
position of the company.
P6 Form an appropriate promotional activities plan for both launch and pre-launch
Marketing efforts are regarded to have a significant impact on a company's development and
success. These are the tasks that each firm conducts in order to raise awareness of its services
and goods and to promote the brand in a competitive market (Kuratko, Bloodgood and Hornsby,
2017). The sales director of Sophia's cafe is thought to be involved in a variety of marketing
operations both before and after the opening.
Launch promotion: It is seen that the product is launched in the market and customers have
used it. They like the product and have taken chance but it is seen that if the company do not do

promotion afterwards then their sales may get reduced. So the launch promotion that can be done
by Sophia’s cafe is discussed underneath
Sales promotion it is one of the direct promotion that an organisation can do by providing
pouches benefits rewards discounts to the customers and attract them towards the cafe. In
relation to Sophia's Cafe they are planning to provide loyalty points to the customers and that
will be redeem on their next visit.
Pre launch: It is important to create a good image of the product before launching it. It is
seen that it is a vital task for a company to inform about the goods and services that the company
is going to offer it helps to promote the brand and spread awareness in front of customers
(Davidsson and Gruenhagen, 2020). In relation to Sophia's Cafe the director of sales will take
care of the marketing activity and we'll do various activities to enhance the sales of the
organisation by promoting and doing pre launch promotion. The various activities that can be
done are as follows:
Advertisement: Advertising printed on pamphlets, bulletins, catalogues, and other print
media is included Sophia's café can readily access these forms of marketing, as well as
promoting them in the sector before ever releasing products.
Social Media: It is another important and vital way to promote the product before launching
it. In respect to the Sofia cafe social media networks such as Instagram, YouTube, Twitter
Facebook will help to spread awareness in mines of customers and promote the cafe. Social
media helps to provide knowledge in the market about the launch of the product.
M4 Evaluate an appropriate promotional plan for both launch and pre launch
It has been discovered that company ventures use various advertising methods and efforts
at all stages of their development, including pre-launch and post-launch. Prior to launching of a
market strategy, for the marketing of goods and services (RAWHOUSER, SUTTER and
MCDONOUGH, 2021). Personal selling is one of the best pre-launch social network strategies,
and Sophia's Café's marketing department's most logical methodology is to attract and retain a
large number of consumers.
D3 Critically evaluate different promotional activities to support justification
Each operation has a beneficial and bad impact on the company's development and performance .
Marketing tactics, too, have both positive and negative consequences that have a considerable
impact on total market success. The positive impact is that such strategies boost customer

visibility quickly and are cost-effective; however, the negative impact is that some type of bad
influence travels at the speed of light. It was observed that the primary functioning could be hurt
as a result of the terrible news, and that sales and market helpfulness may be reduced.
TASK 4
P7 Formulate monthly cash budget for the venture
Cash budget includes the cash receipts as well as payment that are done over a period of
time. It is important to monitor and know about the budget of cash as it helps to maintain
liquidity of the organisation. The cash budget for Sophia's Cafe is mentioned below:

P8 Applicable legal form for the venture
It is vital for the business organisation to know about the legal framework and follow all
the structure that helps them to operate effectively. In order to operate in the business
environment, every organisation must have a proper legal structure that combines its rules and
regulations with the laws and frameworks of the country in which it will operate. An
organisation can establish its identity as a legal entity using a variety of registration and legal
applicability methods. It is seen that there are various laws that are formulated by government
and are important to be followed by the business Ventures. All the business organisations should
follow the rules and regulations the acts that are important for their business. In relation to
Sophia's Cafe they are starting s company so it is important to register under Companies Act.
The advantages of registering under Companies Act or as follows:
Separate legal entity: Registering a company under the Companies Act helps them to start
the business as separate legal entity that shows the company is different from the owner and it is
an artificial person in the name of law.
Liability of owner: Founder members and other stakeholders will have no liability because
they are separate from the organisation and are not liable to the organisation on their personal
assets at the time of the company's liquidation evaluation (Turner and Endres, 2017).

Personal assets and liability: Registering as a business also allows an organisation to use
its assets and resources correctly for its own function, allowing it to easily engage within the
market while reducing liability and increasing assets for longer-term retention.
Long run: It is also advantageous to the organisation because it can survive long after the
founder has died. This is because the company is functioning at a higher level, where it can
easily function for a long period, and it has a corporate legal existence from its owners and
founders, making it easier for the company to survive even after the owner's death.
Above mentioned are the benefits of starting their business in the form of company. It is
seen that Sophia is conducted proper Research and then identify the business form that will help
her to operate in an effective and efficient manner and work smoothly
M5 Justify an itemized monthly cash budget showing one off costs, opening cost and anticipated
income post and pre launch.
To ensure that every operation or activity is conducted efficiently, every business organisation
should prepare a monthly budget that covers all expenses, including pre- and post-start
expenditures. It is feasible to deliver effective outcomes and benefits in an effective manner
capable of attracting a big number of clients by completing the expenditure for expanding
operations.

D4 Create a pre and post launch monthly itemised cash budget based on financial resources
Pre cash budget

CONCLUSION
From the above report it can be concluded that it is important to start a new business but
there is requirement of capacity of taking risk. New business venture of coffee shop is
established in UK. There is a condition related to the target market as well as competition that
the new venture will face. Along with there is discussion related to the intangible and tangible
resources that are required for starting the venture full stop it is important to you have a business
proposal and SWOT analysis that will help the business to operate student. It is seen that there is
requirement of skills that will help to operate in the business environment. In this report there is
discussion related to a contingency plan that will help to minimise the race. Promotion is one of
the vital functions of marketing and the business needs to identify pre-launch as well as while
launching the promotional activities that will attract more and more customers and help the
business to sustain. After that there is discussion related to finding shells and cash budget that
will help to know about the requirement of money in the business. In the end of the report there
is discussion related to the legal requirements that a business should know and the advantages of
opening the business in a legal form.

REFERENCES
Books and Journals
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Davidsson, P. and Gruenhagen, J.H., 2020. Fulfilling the process promise: A review and agenda
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Fischer, M., 2021. Fintech Business Models: Applied Canvas Method and Analysis of Venture
Capital Rounds. Walter de Gruyter GmbH & Co KG.
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perspective.
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relationships: A trust-based perspective. Journal of Business Venturing Insights, 7,
pp.15-20.
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venture creation: A case of small technology-oriented ventures in an emerging
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pp.13-28.
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Shirokova, G., Osiyevskyy, O., Morris, M.H. and Bogatyreva, K., 2017. Expertise, university
infrastructure and approaches to new venture creation: assessing students who start
businesses. Entrepreneurship & Regional Development, 29(9-10), pp.912-944.

Stayton, J. and Mangematin, V., 2019. Seed accelerators and the speed of new venture
creation. The Journal of Technology Transfer, 44(4), pp.1163-1187.
Turner, S. and Endres, A., 2017. Strategies for enhancing small business owners' success
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Waqar, A., Jamil, M. and Fadzil, A.F.M., 2020. Comprehensive Review Of Social
Entrepreneurship: Developing The Conceptual Framework For Describing The
Phenomenon Of Social New Venture Creation. Worldview, 30, p.46.
Zapata-Ramos, M.L. and Lugo, J.E., 2020. The New Venture Design Experience: How UPRM
Made Business and Engineering Students Collaborate in Entrepreneurial Projects by
Pairing Existing Courses. Advances in Engineering Education.