Launching New Venture: A Strategic Plan

The provided document is a detailed report on starting a new venture, focusing on launching a Tutti and Fruity bakery in the London market. It outlines the necessary planning, resources, and skills required for success. The main role of promotional activities is highlighted as they help create customer bonds through effective communication channels. Various studies and references are provided to support the report's findings.

Launching a new
venture
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Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Evaluation of the target market and competitive analysis.................................................3
P2 Specific tangible and intangible resources that required for new venture........................6
TASK 2............................................................................................................................................7
P3 Formulation of proposal for launching a new venture......................................................7
P4 Skills and capabilities required to have to start own business..........................................7
TASK 3............................................................................................................................................8
P5 Different promotional activities and channels for launching new venture.......................8
P6 Formulation of promotional plan for pre and at the time of launch..................................9
TASK 4..........................................................................................................................................10
P7 Monthly cash budget for the pre and post launch phase.................................................10
P8 Legal forms of venture....................................................................................................13
CONCLUSION..............................................................................................................................14
REFRENCES.................................................................................................................................15
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INTRODUCTION
Starting off own business is refers as the process of converting their ideas into real actions
for the purpose of earning large number of profits through satisfaction of needs of particular
segment of society. An organisation is formed into three different ways depends upon the
entrepreneur which suits more to their business idea. There are large number of challenges are
faced by the entrepreneur in the process of starting own business which includes high
competition, lack of experiences, low availability of funds, huge amount of regulatory aspects
etc. In behind the success of new venture not only outside resources provide their contribution
but main role is played by the internal skills and capabilities of entrepreneur. The main skills
which are required to have to launch their new business include risk taking ability, fund raising
capacity, leadership skills etc. A bakery business is wanted to launch by the entrepreneur in
London, UK. It is named as Tutti and Fruity bakery where different kind of drinks are available
with cookies, pastries, Ice cream, cold drink and coffee (Baron, 2011).
In the present report explain about, target market of the bakery along with its competitive
analysis to ascertain the amount of competition which is present in market, various tangible and
intangible assets required to start own business, development of proposal which guides in the
process of launching of venture and skills need to have by the entrepreneur. Also, different
promotional channels and development of pre and post launch promotional plans and legal
structure of venture.
P1 Evaluation of the target market and competitive analysis
Tutti and Fruity is small bakery shop from which entrepreneur having the idea to enter into
bakery business from where provides innovative drinks which are tasty and healthy. Also,
wanted to provide different items such as biscuits, pastries, Ice cream, cold drink etc. It is
observed that fast food products are in demand in London between youth and they attracts
towards the bakery shops in large number. So, large number of opportunities is present in front
of Tutti and Fruity bakery to grab the attention of the youth from their different offerings of
drink and baked items which are very tasty and healthy too. From the analysis of the business of
the bakery shops in UK observed that large number of revenue is earned by them which are
located in prime location in London. So, having the plan about starting new bakery business in
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London city near any popular destination. The plan from acquirement of place to the budget is
defined as;
A bakery business wants to start by the individual with their two partners. The bakery is
named as Tutti and Fruity. All the three partners having the idea about the launching of new
bakery in London city. In this regard, they acquire 1500Sq ft. Location near popular tourist
destination London eye. They take the place on lease of 10 years. There is requirement of large
number of funds are required in the process of development of infrastructure of bakery shop for
attraction of customer and effective establishment of business in market. Some amount of money
is invested by all the three partners and extra amount is raised with the help of different internal
and external sources (Tang, 2011). The budget for starting the venture is assumed around £
315620 to 325660.
Objectives
 Build good name in bakery business
 Provide innovative drink and quality baked items which tasty and healthy
 Earning large number of profits through satisfaction of the requirements of customers
 To attain competitive advantage in market
Mission: The mission of Tutti and Fruity bakery is to provide best quality baked items and
drinks as per the taste and preference of customer.
Through providence of their actions by following their mission helps in accomplishment of
objectives effectively.
Target market: To attain success in the market, every entrepreneur is required to set their
market and customers as it makes the task easy regarding preparation of their products as per
their preferences. This will also helps in development of effective strategies, plans and offers
which are most suitable as per their chosen market. In the present report, Tutti and Fruity bakery
decided to provide main focus on children’s and youth who are loved to eat baked items and new
drinks. For, segmentation of their target market they use four different perspectives such as
psychographic, consumer behaviour, demographic and geographic etc. This will helps to analyse
the needs of their different customers as per characteristics which are present in market.
Competitive analysis: This analysis helps to ascertain the information about the competitors
who already have established bakery business in London. From the evaluation of market
observed that many competitors are present such as Peggy Porschen cake Ltd., Primrose Bakery
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and Cutter & Squidge etc. To sustain the in the market cited bakery organization is required to
make plans and strategies which helps to come out of the hard situations in effective and efficient
manner. To attain competitiveness in market need to do something unique by Cited bakery in
promotional activities this helps to influence the buying behaviour of customers. Another aspect
which helps to promote their products and boost their sales includes pricing of products.
Adoption of effective pricing policies helps to capture large market share (Bijker, 2012).
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P2 Specific tangible and intangible resources that required for new venture
In order to launching new venture, it is necessary to an entrepreneur to develop an
effective plan for arrange appropriate or effective resources so from this business can be develop
as well as situated in an systematic or proper manner. Under this, it is necessary for manager of
Tutti and Fruity Bakery for arrange appropriate financial facilities for operate business
operations or activities in proper way. This bakery is dealing with many varieties of drink and
food items like for an instance pastries, chocolates, cookies, ice- creams, cold- drinks, Coffee at
market place at minimum cost for attract large number of consumer. In order to open new
business, there are many different resources which are necessary to run as well as operate
specific business. Under this, there are some needs of different types of services like for an
instance tangible and intangible mention below as above:
Tangible Resource: Under this, it undertakes those resources which are physically
existence and also seen like for an instance materials, plants, equipments and tools. The main
focus of every business firm is to arrange and also manage all those resources which are useful in
run business at market place. Under this, most necessary resource is funds. Tutti and Fruity
bakery can situated as well as created through using various tangible resources which are
necessary and include machineries. Proper lands, baking products and many others. It is
necessary that firm should arrange all the necessary material which are required in producing the
bakery or good products. In context to this, tangible resources are necessary in start a Tutti and
Fruity Bakery shop at market place in an effective or systematic manner (Burns, 2017). 2,26,021
is the total cost of goods sold. This projected figure is of 1 year. 4200 sterling is value of fixed
assets. This business wouldn't invest much amount in fixed assets initially as their key strategy
would be to rent most of the resources.
Intangible Resources: It is an important factor which should be necessary in establishing
the proper business in significant manner. In addition to this, it included many elements like for
an instance corporates, culture, patents, reputation, trademarks and also customer relationship
which play a necessary role for getting success with company in an effective or significant
manner. Intangible assets are those which can not be seen as well as touch. There is no physical
existence of this intangible assets regarded as Intellectual property which involves
methodologies, trademarks, copyrights and also some symbols which are essential in remind and
also recognise specific brand of company. These resources are helpful in support attributes of
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staff members, brand identifications, reputation of firm at market place and different activities
related to the business. This bakery focus on fulfil requirements and needs of consumers by
offering them food items of better quality. With the help of this, consumers can be retaining
towards firm for long period of time.
Hence, it is analyses that proper resources are necessary in order to operate business as
well as perform different activities or operations in systematic way. All these resources are
necessary for small as well as large organisation to achieve organisational objectives with in
specific period of time (Caselli, 2018).
TASK 2
P3 Formulation of proposal for launching a new venture
The proposal of launching of new venture of Tutti and Fruity bakery is defined below:
Executive
summary
Tutti and Fruity bakery providing various new drinks and baked items such
as biscuits. They also deals in pastries, cold drink, coffee etc.
Company
description
Three partners started the bakery shop in London near London eye which
is named as Tutti and Fruity bakery. It is established on 1500 sq ft. Land
which taken on lease of 10 years.
Market analysis To attain sustainability in their operations required to analyse the market
effectively this provides assistance in preparation of effective plans and
strategies. PESTLE analysis helps in identification of the conditions which
present in business environment and their potential impact on their
business.
Financial
projection
Large number of funds is required from planning to the execution stage.
For development of effective infrastructure funds are needed timely
through implementation activities are performed effectively without any
hindrances. The budgeted amount is around £ 315620 to 325660
Benchmarking Clear goals and objectives are set which helps to provide proper direction
in performance of different functions.
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P4 Skills and capabilities required to have to start own business
It is observed that not only the resources and effective planning helps in accomplishment of
their objective about opening of new venture but also, huge contribution is provided by the
existing skills and attributes of the entrepreneur in the success of new business. So, different
types of skills which are needed to have by partners of cited bakery while starting their business
are defined below:
Risk taker: The entrepreneur is needed to have the ability about taking high risks in market.
Only such businesses are survive in the market which are effectively fought against the harsh
market conditions. So, to launch Tutti and Fruity bakery in effective manner partners are ready to
take risks which helps to earn profit of high numbers.
Leadership skills: The success is not achieved with the effort of single person but team
effort is required to accomplish their targets. In this regard, partners of cited bakery having
effective leadership skills which helps in motivation of the staff members is to provide their best
to attain optimum results.
Management of funds: Funds are the essential element which plays a crucial role in the
process of running of the daily functions of organisation. So, its effective management is
necessary for effective allocation of funds in different departments as per needs. It provides the
opportunity to the partners of cited bakery is to perform their diversified activities without any
hindrances (Negri, 2018).
TASK 3
P5 Different promotional activities and channels for launching new venture
Under this, there are different techniques as well as tools for promoting specific business
and also services in an effective or systematic manner. Every and each entrepreneur include
appropriate or relevant promotional techniques in order to launch new business in competitive
market. Regarding this, many organisations take support of the marketing mix for developing
new or better action plan and strategies in systemic manner. In addition to this, some of the
necessary tools of the promotion given below which need to be undertaken through Tutti and
Fruity bakery for promote business:
Articles and Blogging: It is a necessary method in this modern era. At market place there
are many different business firms which focus on using the blogging and articles for offering
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essential information to target audiences. Under this, it explains regards services or products in
order to aware people about services or goods. It is beneficial or effective for this bakery.
Personal promotions: Each and every organisations can developed in an effective
manner through including the public relations. This tool is helpful for small or large size firms in
order to make strong relationship between them to gain more profit. In regards to this, there are
many promotional tools which explains about communicate with the social group people,
meetings, social media, discussion and emails.
Use of social media to promote business: It consists different platform of social media
for developing awareness through Instagram, websites, Facebook, twitter and some of the other
specific business. In context to develop awareness between people of United Kingdom, Tutti and
Fruity bakery uses all these methods. Because the people of modern era are connected with all
these social media applications.
Mobile Billboards: It is an effective or significant promotional tools of several
organisation . It is helpful in offering accurate as well as relevant information and data to
targeted audiences. Under this, there are many types of symbols like for an instance punch line,
logo and stickers for specific business. In context to aware people about new products, this
bakery uses this tools in systematic or proper manner (Fernhaber, 2013).
Therefore, it has been examined that there are large number of promotional tools which
are available at market place and use through Tutti and Fruity bakery for promote products or
services of this organisation and also communicate with people. Among all of them, there more
usable promotional tool which this bakery use are social media as well as mobile billboards to
accomplish target with in particular period of time. It will be helpful in increasing sales and
profit level of company in competitive market.
P6 Formulation of promotional plan for pre and at the time of launch
Promotion is refers as the activity related to advertisement of the business and their offering
in the market to disseminate information in between the general public. This medium has large
number of importance to build connection with the customers and for their retention of longer
period of time. In the present report, Pre and at the time of launch promotional plan is framed
regarding Tutti and Fruity bakery which is defined below:
Pre launch: Here, partners of Cited bakery decided to connect with customers through of
digital platform. In this regard, they built their official website which contains total information
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about their product, services and address etc. This is easily accessed by the customers whenever
they need.
Launch time: At the time of launch of bakery in London thy decided to invite the celebrity
and media representative so, their programmes become grand and news is published at different
sources like newspaper, articles or telecasted on television.
TASK 4
P7 Monthly cash budget for the pre and post launch phase
Cash budget is a document which provides the information about the amount of cash
which is occur in the process of carrying their future actions in future period of time. In the
present report, cash budget is prepared for both pre and post launch of venture to improve the
understanding about the requirement of funds to effectively accomplish their activities without
any hindrances (Hmieleski, 2012).
Cash budget for pre-launch phase such as:
Year 2015 Jan Feb Mar April May
Food Sales amount 42,152 42,563 43,526 43,568 44,124
Beverage Sales 19,751 12,451 12,456 13,452 14,528
GROSS SALES (Total) 61,903 55,014 55,982 57,020 58,652
COGS
Food 14,525 14,046 14,364 14,377 14,561
Beverage 6,515 3,113 3,114 3,363 3,632
GRAND TOTAL 21,040 17,159 17,478 17,740 18,193
GP 40,863 37,855 38,504 39,280 40,459
General and
Administrative
Workers Salaries 15,476 13,754 13,996 14,255 14,663
Management Salaries 3,400 3,400 3,400 3,400 3,400
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Employer
Taxes/Benefits (15%
Wages) 2,265 2,058 2,087 2,119 2,168
Employees
Compensation (6%
Wages) 1,133 1,029 1,044 1,059 1,084
Advertisement 800 800 800 800
800
Bookkeeping 150 150 150 150 150
Credit Card Charges
(1%) 619 550 560 570 587
Insurance 250 250 250 250 250
Legal and Professional
Fees 100 100 100 100 100
Misc. Other 250 250 250 250 250
Office Supplies 175 175 175 175 175
Rent 3,200 3,200 3,200 3,200 3,200
Repair and
Maintenance 300 300 300 300 300
Small Equipment 200 200 200 200 200
Telephone [phone]
Garbage 200 200 200 200 200
Utilities 1,200 1,200 1,200 1,200 1,200
Total Gen. and Admin.
(Fixed) 29,867 27,766 28,062 28,378 28,876
NET PROFIT OR LOSS 10,996 10,089 10,443 10,901 11,583
SBA Loan 3,582 3,582 3,582 3,582 3,582
Cash Flow After
Financing 7,414 6,507 6,861 7,319 8,001
Draw 4,000 4,000 4,000 4,000 4,000
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Net Cash Flow 3,414 2,507 2,861 3,319 4,001
Accumulated Cash
Flow 5,921 8,782 12,101 16,102
Average Daily Sales /
22 days 2,814 2,501 2,545 2,592 2,666
June July Aug Sept Oct Nov Dec
YTD
2013
44,325 44,658 45,210 45,325 46,251 46,325 47,125 5,35,152
15,574 15,487 16,421 16,251 17,452 17,245 17,845 1,88,913
59,899 60,145 61,631 61,576 63,703 63,570 64,970 7,24,065
-
14,627 14,737 14,919 14,957 15,263 15,287 15,551 1,77,215
3,894 3,872 4,105 4,063 4,363 4,311 4,461 48,806
18,521 18,609 19,025 19,020 19,626 19,599 20,013 2,26,021
-
41,379 41,536 42,606 42,556 44,077 43,972 44,958 4,98,045
- - - - - - - -
14,975 15,036 15,408 15,394 15,926 15,893 16,243 1,81,016
3,400 3,400 3,400 3,400 3,400 3,400 3,400 40,800
2,205 2,212 2,257 2,255 2,319 2,315 2,357 26,618
1,102 1,106 1,128 1,128 1,160 1,158 1,179 13,309
800 800 800 800 800 800 800 9,600
150 150 150 150 150 150 150 1,800
599 601 616 616 637 636 650 7,241
250 250 250 250 250 250 250 3,000
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100 100 100 100 100 100 100 1,200
250 250 250 250 250 250 250 3,000
175 175 175 175 175 175 175 2,100
3,200 3,200 3,200 3,200 3,200 3,200 3,200 38,400
300 300 300 300 300 300 300 3,600
200 200 200 200 200 200 200 2,400
150 150 150 150 150 150 150 1,800
200 200 200 200 200 200 200 2,400
1,200 1,200 1,200 1,200 1,200 1,200 1,200 14,400
29,256 29,331 29,784 29,768 30,416 30,376 30,803 3,52,684
-
12,122 12,205 12,822 12,788 13,661 13,596 14,155 1,45,361
3,582 3,582 3,582 3,582 3,582 3,582 3,582 42,984
8,540 8,623 9,240 9,206 10,079 10,014 10,573 1,02,377
4,000 4,000 4,000 4,000 4,000 4,000 4,000 48,000
4,540 4,623 5,240 5,206 6,079 6,014 6,573 54,377
20,643 25,266 30,505 35,712 41,791 47,804 54,377
2,723 2,734 2,801 2,799 2,896 2,890 2,953
P8 Legal forms of venture
A business can start in three different forms which is depends upon their size and nature of
activities. It is responsibility upon the entrepreneur is to select the right legal form which suited
most their business activities. This will provides large number of support in the process of
gathering of different resource such as funds, human capital, infrastructure etc. Different types of
legal forms and their features are defined below:
Sole proprietorship: It a form of business which is open by the single person. The fewer
amounts of restrictions are imposed while doing the business activities in this form. The liability
of sole owner is unlimited and having the full responsibility and control over the business
functions.
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Company: It is wide in scope from above mentioned both terms. This will process of
formation organisation of public and private nature. Large number of requirements is needed to
fulfil to start company. The director of company has limited liability. Company is separate legal
entity which different from their owners.
Partnership: It such form of organisation which is established with the agreement
between the two more people for achievement of common objective. All the partners are equally
liable for the business activities to the limited extent of amount which they taken with
themselves within the organisation. All the profit and losses are equally distributed among the
partners according to predetermined ratio (Cole and Baron, 2012). Tutti and Fruity will be a
partnership firm which will be managed by three partners as the funds requirement is high. It can
be effectively fulfilled through adoption of this legal structure.
Sole proprietorship is not a good option because managing single handling of bakery
does not have much options of growth. Starting a company is very expensive and complicate
task. Tutti and Fruity bakery cannot consider this option for now because they aren't starting
chain of bakery. They will open single outlet and it market reach will be limited. Partnership is
the best option as it is easy to establish and manage.
CONCLUSION
It has been concluded from the above report that launching s new venture is not a easy task
many requirements are arise time to time which are need to fulfil to success. A Tutti and Fruity
bakery is wanted to launch in London market which is possible with effective planning,
resources and skills of partners. Huge amount of funds are required which are effectively
managed through preparation of cash budget. The main role is played by the promotional
activities which help to create the bond with customers through establishment of effective
communication channels.
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