Entrepreneurship and New Venture Creation

This assignment delves into the world of entrepreneurship and new venture creation. It examines various aspects related to starting and growing a successful business, including understanding entrepreneurial roles, fostering innovation, leveraging network relationships, navigating financial considerations, and addressing gender disparities in entrepreneurship. The document emphasizes the importance of effective leadership, shared authenticity, and optimistic overconfidence in driving new venture performance. Additionally, it explores the impact of environmental dynamism and international exposure on new venture success.

Launching A New
Venture

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Investigate and explain a new venture, identifying specific target markets and undertaking
competitive analysis ..............................................................................................................3
P2 Tangible and intangible resources that would be required by an organisation for launching
a new venture..........................................................................................................................4
TASK 2............................................................................................................................................5
P3 A credible proposal to launch a new venture ...................................................................5
P4 Skills and capabilities required to launch a new venture and ways in which they are
acquired or developed.............................................................................................................6
TASK 3............................................................................................................................................8
P5 Different promotional activities and channels that will support launch of new venture...8
P6 Appropriate promotional activities plan for both launch and pre-launch of new venture 8
TASK 4..........................................................................................................................................10
P7 An itemised monthly cash budget for pre-launch phase of the venture and the first 12-18
months preceding launch of new venture.............................................................................10
CONCLUSION .............................................................................................................................12
REFRENCES.................................................................................................................................13

INTRODUCTION
Due to sustainability and changes within economy, entrepreneurs can easily open their
business in a competitive market place. But, to launch a new venture is a difficult task for
entrepreneurs because they must have knowledge and skills. These will be beneficial for them
while handling difficult tasks regarding revenue generation, growth of business, etc. and new
operational activities. An entrepreneur must implement creative ideas and set attainable targets to
launch a business systematically. Related to this,
a bakery shop is being launched in Germany located in Europe. This enterprise delivers a
variety of different food items such as pastries, cakes, savouries and more. Therefore, range of
resources required to launch, skills and capabilities required and ways in which they might
acquired or developed is discussed. This report also mentions appropriate promotional activities,
appropriate legal form and a compile budget for launch (Baron and Tang, 2011).
TASK 1
P1 Investigate and explain a new venture, identifying specific target markets and undertaking
competitive analysis
A Blake & Flake is a new bakery shop which is going to be opened in Germany, Europe.
This will provide customers with fresh bakery items such as burgers, cookies, patties, cakes, ice-
cream and many more. The place is strategically selected to be Germany as this place have a
large extent of elite persons who can afford to buy the products being sold by the bakery. Main
rationale behind opening this venture within a populated and competitive market is that bakery
can have access to a large number of rich persons. This implies that customers can be targeted
easily towards a variety of bakery items. This will also help in providing services and food to
customers according to their satisfaction and earn profit (Bijker and et. al., 2012). To attract
customers, this enterprise will have tables, corners, space for small functions and parties,
attractive interiors and many lucrative offers. This will ensure to retain customers for a long
time. Hence, related to this a plan of small venture is been discussed below.
To launch a new bakery, an entrepreneur requires a wide area of approx. 1800 sq. ft. This
area should be presented in a market place in which there are many rivals because it would be
beneficial in delivering items in a wide manner. Moreover, a business tycoon must get it hired
for at least two to three years on rent. In order to launch this venture in a appropriate manner,
entrepreneurs must have sufficient amount of funds and investment which is about £4,00,000 to
£4,50,000. Germany is an immensely developed market economy which provides opportunities
to businesses for tapping an advantage of its lavish lifestyle and high standard of living. By
gaining an access to this, Bake and Flake can gain strategic edge in market over its rivals and
ensure its sustainability for a long duration of time. Being an important member of European
Union and having a largest economy, Germany strives to be an excellent locations for starting
ventures. This economy is largely expected to have a production of $4.2 trillion in 2019 through
the measure of nominal Gross Domestic Product (GDP) (Germany, 2018 Index of Economic
Freedom, 2018).
Objectives: An owner consulting it with their partners set SMART objectives which is been
discussed below.
 Specific: Increase market share in order to achieve sustainability.
 Measurable: Achieve 75% market share.
 Achievable: This can be attained by providing a greater variety of food items.

 Relevancy: It increases presence of bakery in Germany market.
 Time bound: It can be attained within 9 months after launching its venture.
Mission: To give satisfaction to their customers by providing them healthy and nutritious food
items.
Area in which owner is launching a new venture is a competitive market place, so they
must require creative ideas and strategies in order to survive. Moreover, to attain targets and
objectives , there some important areas where must concentrate on are being mentioned below.
Identifying specific target market: This is one of the most important step which must be
taken into consideration during implementation of an appropriate plan. It refers to area which has
been targeted in which new enterprises can run smoothly and earn profits. With help of this
process, entrepreneurs can give high quality products and services according to requirements and
demands of customers. This will also give satisfaction to their customers in a desired manner.
Furthermore, by analysing specific target markets, will help owners to identify customers
behaviour related to their level of earning, taste, lifestyle, trend, status and many more factors
(Burns, 2017). In present context, owners of Bake and Flake have decided about expanding
therir business in Germany as people over there are quite rich and prefer leading a luxurious life.
Hence, managers have decided about shifting their focus of target to young and elite class people
who are willing to spend.
Geographic: Blake and Flake bakery has targeted Germany by giving a large number of
customers.
Demographic: From doing research it has been found that people of Europe are heath
conscious and preferred nutritious food. Henceforth, bakery is delivering healthy and nutritious
eatables to people.
Psycho-graphic: People who belong to higher income group prefer to purchase healthy
eatables neglecting their prices. Henceforth, this income group is being targeted by Blake and
Flake bakery.
Competitive Analysis: This factor also has an important role while launching a new
venture. It would be beneficial in determining factors which impacts the operations of business
in a positive and negative manner both. In addition to this, it involves methods and strategies that
are being used by rivals who are providing same food items within a same market place. Once
the competitors are determined, it will become easier for owners of Bake and Flake to study and
evaluate their strategies and accordingly set policies for themselves. For example, in case othewr
bakeries are selling their products at 10% profit, managers of Bake and Flake can reduce their
profit percent to 5% in their initial days. Also, they can provide attractive offers on a timely
basis for attracting more customers.
It helps owners to create better plans and strategies so that they can grab a higher market
share and have a competitive advantage. Main competitors of Blake & Flake in London Street
are The humming bird bakery, Primrose, Paul Baker, Cake Street and many more. Hence,
entrepreneur of the bakery must come with different and innovative ideas in order to survive in
competitive market and deliver satisfactory services to their customers (Caselli and Negri, 2018).
P2 Tangible and intangible resources that would be required by an organisation for launching a
new venture
In order to open a new outlet, an owner is required to create appropriate plans by
arranging resources which are needed to establish venture in an appropriate manner. For this

purpose, it is important for business person to have an appropriate amount of funds. It would be
helpful in running operations of business activities in a proper and systematic manner. Here, in
context to this Blake & Flake Bakery, this enterprise are required to provide high quality as
well as fresh eatables which are short cakes, Scones, ice-creams, Mince pie and many more food
items. In order to attract more and more customers, it will provide commodities at a less prices in
comparison with other bakeries. Moreover, in order to meet these desires, some tangible and
intangible resources are also required which are being discussed below.
Tangible Resources: These are resources which have a physical existence such as land
and buildings, machinery, inventory , plants and many more. Here in context to Blake & Flake
bakery, business person are required to arrange area for building, cold storage rooms,
microwave, land, capital and oven in order to cook (Fernhaber and Li, 2013).
 Physical Resources: To run a business Blake And Flake bakery, is making use of
physical resources such as machines, cold storage rooms, microwave ,etc. These are
ebing used by bakery in order to run their daily operations.
 Human Resources: This includes personnel which contributes in earning profit and
increasing sales of a bakery. Physical resources cannot be run properly without the efforts
of labours. Therefore, Blake and Fake must hire skilled and qualifies employees who can
deal with Germany people and provide them services according to their requirements.
 Financial Resources - They make proper budgeting and planning for business to make
decision. Finance manager of any company is the main body who provide money to other
department for better running of different activities. This is important to make for
organisation to use their financial resources in proper way in order to achieve goal and
objectives.
Intangible resources: This can be referred as resources which helps a company in longer
duration but do not have a physical existence. These includes different factors which are
trademarks, patents, goodwill, copyright, skilled employees, relationship of customers etc. Here,
in Blake & Flake Bakery, to protect their ideas from other rivals, owners are required to use
intangible resources which are trademarks, copyrights etc. This is also beneficial in protecting
own innovative and creative ideas in an efficient way. Moreover, they need to create a brand
image within a market place in order to be popularised, because it is a new venture in United
Kingdom.
Above mentioned tangible as well as intangible resources will be beneficial to Bakery to
attain its set objectives and targets and attracting customers (Hmieleski, Cole and Baron, 2012).
TASK 2
P3 A credible proposal to launch a new venture
A proposal of a business helps an enterprise to identify production costs and all the
activities which are required to launch a business enterprise in an appropriate manner. By this,
business person is able to make best and correct decisions which will help in smooth functioning
of a business. Usually credible proposal is developed by consultancies which is beneficial for
entrepreneurs. They provide details and information regarding activities of business, need of
finance, place and many other details by which they can collect funds which are required and
also attain goals of an enterprise. With context to this, a business proposal plan for Blake &
Flake Bakery is being given below.
Executive Summary Blake & Flake is a bakery which is expanding its business in
Germany so that it can grab a high market share within a market

place. It is providing customers food items, beverages, baked
products desserts such as Arctic roll, Gypsy tart, Eton mess,
cookies, Tapioca and many more.
Company description A business person has came up with a creative and fresh thought
of launching an outlet which is Blake & Flake bakery. This
enterprise will provide nutritious and healthy food items in
London Street of United Kingdom. This will have leave for shop
for two to three years along with rent of one year with area
approx 1800 sq. ft. Since, there are many competitors which
operates their business within a same market place therefore it
covers a large populated area, which will help them in generating
more profit for new launched venture.
Mission: To give satisfaction to their customers by providing
them healthy and nutritious food items.
Vision: To provide high quality of baked products according to
requirements of customers (Kariv, 2013).
Market Analysis In order to grab attention of more and more customers, it is
important for business person to develop proper plans as well as
strategies. This will help in smooth and profitable functioning of
a business as well as its operations. With this context,
entrepreneur is required to identify properly marketplace
conditions and its environment. Moreover, rankings of other
organisations must also be analysed. For determining all these
factors, PESTEL as well as SWOT analysis tools are being
recommended (Klotz and et. al., 2014).
Financial Projection Without having sufficient funds, a business person cannot launch
a new venture in a desired way. Hence, entrepreneurs of Blake &
Flake Bakery, are required to collect proper amount of money
and also develop a systematic budget. This will help them in
taking correct decision which are related to expenses incurred in
order to reduce wastage of money and resources. The financial
cost incurred for Blake & Flake is $500 to $ 700.
Bench marking Under this, a business person take into consideration
benchmarking, by setting a standard for work in a proper
manner. It will also assist in assuring about employees or
customers who are doing each and every activity as per the set
benchmarked along with doing comparison (Morris, 2015).
P4 Skills and capabilities required to launch a new venture and ways in which they are acquired
or developed
In order to open a new enterprise, an entrepreneur should come up with creative thoughts
as well as innovative ideas which can be converted into concepts of business. During this process
, an individual must have expert skills and potential and also implement them in an effective
manner. Moreover, this will also help in attaining targets which are set and mission in an

appropriate manner. There are some important skills and capabilities which an entrepreneur must
posses. Those have been discussed below.
 Risk Taker: A business person must be prepared to face difficulties and risks that impact
operations of business. Plans and strategies should be implemented in order to increase
revenue generation and profitability of an organisation. Blake & Flake bakery is opening
their outlet in an effective way through implementing policies and plans which could be
helpful for them so that they attain growth as well as objectives within a desired time
period (Kuratko and Hornsby, 2017). This skill can be developed by identifying and
dealing new challenges and opportunities in a market place and grabbing them in order to
earn profits.
 Leadership skills: This is an essential skill which is required by an employee of an
organisation. Since, many people are connected with single business, hence, different
situations can be arise daily. Therefore, business person are required to possess qualities
of leadership so they can make people work towards attaining goals and objectives of an
organisation. Here, in Blake & Flake, entrepreneur must have leadership skills in order to
motivate and encourage their team members in an manner which can increase level of
satisfaction of customers. Owner of bakery should monitor and manage personnel within
workplace and direct them to work with a motive of increasing brand name as well as
image in market. This skill can be acquired by taking training and development
programs.
 Delegation: It is a process of assigning duties and responsibilities to people in a
systematic manner. This is required in an organisation to reduce work load of employees.
Entrepreneurs should have a capacity to delegate their work to right person at correct
time. Here in Blake & Flake Bakery, business person have a lot of work to do and
perform various business operations on a daily basis. Therefore, it is necessary to have
faith in working capacity of their staff members and delegate a little work to them which
could be beneficial in completing the tasks within a specified time. Moreover, this will
also reduce owner's work as well as its efforts can be used in other useful activities or
purposes (Read, and et. al., 2016). This skill can be acquired by taking the help of
consulting with experienced and knowledgeable members through conducting a meeting
within an organisation.
 Communication skill: Conveying and transmitting knowledge and information with
other people in an effective way is termed as communication. Entrepreneur of Blake &
Flake Bakery, should be polite while communicating with their staff members in order to
create a healthy and friendly working environment. Besides, manager of this bakery
should have some sessions for training for their personnel and develop their skills of
communication effective. It would be beneficial for employees to communicate with
customers in an influencing and polite way which will also help in attracting new
customers to use products and services of bakery on a regular basis.
Above discussed capabilities are important in order to set a new outlet within a market
place. In context to Blake and Flake Bakery, business person must possess these mentioned skills
should also concentrate on enhancing their potential, so that they can attain their targets and
objectives (Robb and Watson, 2012).

TASK 3
P5 Different promotional activities and channels that will support launch of new venture
Each new venture is need to implement different tools and techniques for marketing in
order to do promotion of its services and products within a market place. In regards to this, it is
marketing manager responsibility to bring in fame services as well as products so that their can
increase their customers. Here, related to Blake and Flake there are various tools and techniques
for promotion which can be implemented by an enterprise in order to recognised their brand
name within London, UK . Different tools for promotion which can be utilised by this Bakery are
being discussed below.
 Advertisement: In order to do promotion of a new Bakery, advertisement can be taken
into consideration as an appropriate, effective as well as economical way for doing
promotion. Managers of Blake and Flake Bakery, can utilise various mode for
advertisements such as doing outdoor ads, distributing pamphlets or leaflets in order to do
promotion of their unique products and services.
 Social Media: This is one of the easiest and quickest way or method in order to do
promotion. Since there are many people who are connected to internet specially youths
on a regular basis. Social media is also treated as a quickest and easiest method for doing
promotion. Owner of Blake and Flake Bakery can make their own account on social
media sites and can also use it daily. This can be a most effective way of doing promotion
and it will also help them in attracting targeted customers (Simon and Shrader 2012).
 Sales promotion: Entrepreneurs of Blake and Flake Bakery, can implement this channel
for promotion because this involves attractive and influencing coupons, discounts, loyalty
incentive and referral programs. In context with this bakery, sale promotion will be
helpful in attracting customers so that they can utilise services at a minimum and
affordable prices, also utilise benefits of loyalty incentive. This is considered as most
appropriate method in order to attract the attention of youngsters and people belonging to
other generation who are money oriented.
Business person of Blake and Flake can utilise all the above discussed methods for doing
promotion as they have low expenses incurred. From all of the above, social media can be
considered as the most cheapest as well as effective method for brining in fame unique food
items as well as eatables of Bakery. Through the use of these activities for promotion, Bakery's
entrepreneurs can attract more and more customers which will result in increase in sales and
profits of the business. This will also lead to growth of the business (Launching a new venture,
2018).
P6 Appropriate promotional activities plan for both launch and pre-launch of new venture
Promotional activities plays an important role for expanding and growth of a business.
These activities are being utilised by an organisation in order to increase their brand name and
make their products and services popularised with a market place. In context to Blake and Flake
Bakery, marketing manager have utilised different activities for doing promotion during pre-
launch stage and after launching their Bakery at the market place. Various promotional activities
which are being utilised by this bakery are being discussed below.
Pre-launch Promotion: These activities defines those methods which are being utilised
by an organisation in order do their brand recognition and name before entering into market
place. Here, in context to Blake and Flake., its marketing manager is required to adopt
promotional activities that are affordable which will attract the targeted customers. Bakery,

should adopt social media and advertisement as their mode for doing promotion. These are being
elaborated below (Bijker and et. al., 2012).
 Advertisement: This involves promotion done by print media like pamphlet, leaflet,
catalogues and many more. These kinds of advertisement are cheapest and affordable for
Blake and Flake Bakery and also attract customers. Moreover it also give fame to
products and services within a market place before its launch.
 Social media: This is treated as most appropriate and effective method of doing
promotion before launching. Blake and Flake should create pages on social media sites
such as Twitter, Facebook, etc. because , media is easy and convenient to operate. Social
sites are popular between all the generation of London, UK since, they are operating it
on a daily routine. Through this method of promotion their will be brand awareness
among public.
Launch promotion: With the help of these activities, an organisation can sustain their
customers so that they can increase their sales of food items and commodities. In context to
Blake and Flake, its marketing manager have utilised sales promotion method in order to
increase new customers as well as sustain their old so that they can increase sales of Bakery
(Baron and Tang, 2011.).
 Sales Promotion: This involves different activities of promotion within an
organisation such as loyalty incentives, coupons, etc. In related to Blake and
Flake, its manager have method of loyalty incentive so that they can sustain their
customers within a market place. It will also be beneficial in attracting new
customers for bakery.
Financial consideration to start a new venture:
There are various kinds of financial consideration which are required to be concentrated
on by owner during the launch of its new venture Blake and Flake in Germany. It involves:
Minimise overhead: Entrepreneur of Blake and Flake must take initiatives to reduce its
expenses at the initial stage. This can be done by eliminating expenses which are not necessary
that do not have any results in establishment of an organisation.
Track and monitor spending: In this entrepreneur must monitor and track every
expenses so that they can reduce cost wastage and raise profits of business. This can be done by
keeping records of every transactions made which will be helpful in incurring expenses.
Invest appropriately: Entrepreneur of Blake and Flake should assure first about the
return which is received in future on investment and according to that take effective decision.
Blake & Flake use “all fresh and healthy cake available here” as a promotional message
for customers in order to encourage them to purchase products. Here, is the logo of business

TASK 4
P7 An itemised monthly cash budget for pre-launch phase of the venture and the first 12-18
months preceding launch of new venture
Cash budget is an estimation of inflows and outflows of cash related to activities of
business over a particular duration of time. This budget is useful for Blake and Flake bakery, in
order to analyse whether they have sufficient cash to operate its business operations or not. Cash
budget related to pre launch and post launch of Blake and Flake bakery is been given below.
Pre launch
cash
budget
Cash Flow
budget
Particulars Jan Feb Mar Apr May June
Cash
inflows
Investment 8000
Credit
sales 2000 3000 3000 4500 1500 3500
Total
inflows 10000 3000 3000 4500 1500 3500
Cash
outflows
Fixed :
Equipment
’s 2000 2500 1500 2000 1200 1500
Variable :
Direct
material 300 300 200 300 150 500
Total
outflows 2300 2800 1700 2300 1350 2000
Net cash
flow 7700 200 1300 2200 150 1500
Opening 0 7700 7900 9200 11400 11500

balance
closing
balance 7700 7900 9200 11400 11550 13000
Particulars July August
Septembe
r October
Novembe
r
Decembe
r
Cash inflows
Investment
Credit sales 4200 1000 2000 800 1200 1500
Total inflows 4200 1000 2000 800 1200 1500
Cash outflows
Fixed : Equipment’s 800 200 300 100 600 300
Variable : Direct
material 300 400 500 100 100 400
Total outflows 1100 600 800 200 700 700
Net cash flow 3100 400 1200 600 500 800
Opening balance 13000 16100 16500 17700 18300 18800
closing balance 16100 16500 17700 18300 18800 19600
Post launch cash
budget
Particulars Jan Feb Mar Apr May June
Cash inflows
Investment 8000
Credit sales 1200 2000 7500 3000 5000 6500
Total inflows 9200 2000 7500 3000 5000 6500
Cash outflows
Fixed : Equipment’s 2500 1200 1500 2500 1100 1500
Variable : Direct
material 350 300 250 150 100 500
Total outflows 2850 1500 1750 2650 1200 2000
Net cash flow 6350 500 5750 350 3800 4500
Opening balance 0 6350 5850 11600 11950 15750
closing balance 6350 5850 11600 11950 15750 20250
Particulars July August September October November December

Cash inflows
Investment
Credit sales 1200 3200 1500 8200 1250 3210
Total inflows 1200 3200 1500 8200 1250 3210
Cash outflows
Fixed : Equipment’s 1200 600 500 500 1200 700
Variable : Direct
material 500 250 450 250 1300 500
Total outflows 1700 850 950 750 2500 1200
Net cash flow -500 2350 550 7450 -1250 2010
Opening balance 20250 19750 22100 22650 30100 28850
closing balance 19750 22100 22650 30100 28850 30860
Legal structure of Blake and Flake bakery
There are different types of ventures which has been described below.
Sole Trader: This is simplest form of business venture that abides by regulations and
rules which are developed by government bodies in order to run its business operations
smoothly. Under this venture, a single individual operates and runs a business and takes all profit
and losses.
Company: This is an isolated legal entity which defines that the entrepreneur is not
liable personally to pay its debts and liabilities of an organisation by selling personal assets. This
involves two organisations which are public and private. Private is run by private person and
public is runned by government.
Partnership firms: In this two or more person are grouped together so that they can
attain a common targets and objectives by doing an agreement which can be called partnership
deed.
Blake and Flake bakery is a partnership company which runned and owned by different
partners who are agreeing to share their losses and profits in an agreed ratio. An owner who has
got a great success in UK market is trying to expand its business operations in markets of
Germany. For doing this they required sufficient amount of capital, skills and ideas in various
fields. Therefore, entrepreneur decided to provide shares of its bakery to their colleagues so that
they can provide maximum help.
CONCLUSION
From above mentioned report, it has been concluded that in order to launch a new
venture, it is needed for every entrepreneur to be aware about external market environment for a
longer run of a business. Under this report, launch of new venture has been discussed along with
target markets. Moreover, need for different skills as well as capabilities in order to launch a new
venture along with its importance are being discussed. This report also involves different kinds
of activities for promotion like sales promotion, advertisement and social media which are
important for business growth and also attracting new customers.

REFRENCES
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