Launching New Venture Assignment 2022

Launching a New Venture
Turning a vision into action
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Word Count: 3289

Table of Contents
Introduction:..................................................................................................................................3
Task 1: The range of resources required to launch a new venture...........................................3
1.1 New venture identifying specific target markets and undertaking competitive
analysis:......................................................................................................................................3
1.2 Tangible and intangible resources required for the launch of a new venture:..............4
1.3 Credible proposal to launch a new venture:.....................................................................5
Task 2: Skills and capabilities required, acquirement and development.................................7
2.1 Skills and capabilities required to launch a new venture:...............................................7
Task 3: Appropriate promotional activities to support the launch..........................................8
3.1 Different promotional activities and channels to support the launch:...........................8
3.2 Promotional activity plan for both launch and pre-launch:............................................9
Task 4: Appropriate legal form and a budget for launch........................................................10
4.1 Monthly cash budget for pre-launch and first 12-18 months preceding the launch:..10
4.2 Appropriate legal form for the venture:..........................................................................11
Conclusion:...................................................................................................................................12
Reference:.....................................................................................................................................12

Introduction:
In this era of modernization, the task of launching a new venture seems easy but in reality, the
task revolves around several complexities and a person who is launching a new venture should
know the technologies and tools used by organizations already running their business at national
and international levels. Globalization, a process of integration and interaction among various
groups of people, governments, and companies, is regarded as a form of capitalism that
integrates national and local economies into the unregulated market and global economy
(Barbero & et. al., 2012). Hence, helps small and medium enterprises to establish new businesses
in the market because of support from the government and easy access to loans. The organization
for this assignment is named Fashion and Trends which is planning to start a new business of
clothing at England market which deals in clothes for youngsters at a small level. Target market
and competitive analysis of the organization will be done along with the requirement of tangible-
intangible resources in business.
Task 1: The range of resources required to launch a new
venture.
1.1 New venture identifying specific target markets and
undertaking competitive analysis:
Those firms that are in their early stages of development and growth, maybe a product or a
business, to earn a profit is referred to as new ventures or entrepreneurial ventures. Fashion and
Trends is a small enterprise that manufactures clothing for boys and girls and is planning to start
a new venture of it for youngsters with an idea to bring creative and new trends clothes for target
customers. In the ongoing market of England, it will be a challenge for the company to survive in
the competitive market, but if they establish in the competitive market then people will be aware
of it very easily. Market research for survival and sustainability has been done and Fashion and
Trends are planning to start a business in England as it has a high economy which has been
confirmed through it. In course of time, there is a rapid change in taste, preferences, and trends
making the competitive market also change rapidly.
Identifying Target Market:

To decide objective market to achieve the end goal of creating bigger benefits, the
company needs to first identify its target market carefully as per need, want, and preferences.
Fashion and trends need to identify the group of customers within the available market which
aims to provide resources and marketing efforts and hence distinguish the particular target.
People having similar characteristics such as location, age, lifestyle, and income may fall under it
but Fashion and Trends have classified their target market on basis of the following segments:
Geographic: Geographic segment includes the people under the specific selected area
and Fashion and Trends has selected the UK which is one of the largest countries assisting in
increased sustainability and profitability of the firm.
Demographic: The division based on gender, religion, and age falls under the
demographic segment. Fashion and Trends have focused their target market on people of all
religions and any gender aged from 18 up to 25 years who are college-going students or
youngsters for providing goods.
Competitive Analysis:
There is a huge competition already existing in the clothing industry of the UK which
fashion and Trends need to be taken into mind and analyze properly and provide a variety of
products to their target market. The company’s core competitors like Plc, Marks, Spencer, and
Burberry are providing high-quality goods (Chrisman & et. al.,2012). It is their core
responsibility to provide unique and quality goods in the market which will help them to stand
out which will require knowing everything about the parties involved in the competition.
1.2 Tangible and intangible resources required for the
launch of a new venture:
Fashion and Trends being a new start-up company that sells and designs merchandise will be
growing, producing billions of dresses, suits, and other clothing and accessories that customers
buy. Hence, various resources will be needed for such huge production and business
sustainability and profitability.
Tangible Resources:

Resources needed by Fashion and Trends like cash, inventory, machinery, land, or
buildings that can be easily dissolved or liquidated and have a set value are known as tangible
resources. These resources help a company to understand its financial status when entered on
balance sheets and financial statements, hence, it is critical in accounting. These assets can be
seen, touched, and can be valued easily and are known as the main type of assets that companies
use to produce their product and service. There are 2 types of tangible resources: Current assets
(assets that will be used for not more than a year) and fixed assets (assets that will be used for
more than a year). Current assets of Fashion and Trends include marketable securities, cash,
inventory, etc., and equipment, building and computers are their fixed assets. The mentioned
fixed assets will be used by the company to earn revenue by producing money from selling their
clothing (Ciabuschi, Perna & Snehota, 2012).
Intangible Resources:
Long-term resources of Fashion and Trends have no physical evidence or substance like
intellectual assets, and as a result, it's difficult to assign a value to them because of the
uncertainty of future benefits and can be far more valuable than tangible assets. A new way of
reasoning and viewing company management and human capital is the transformation of these
assets into tangible outcomes. Trademark, brand, Knowledge, and patent include the intangible
assets or resources of Fashion and Trends that gives individual selling points and impact business
worth in a way that it wouldn't be used by any other company. It has other minor branches also:
Human: People such as executives, managers, workers, and staff required in business are
included in this sector.
Financial: Proper budgeting and planning for the business to make decisions fall under
it.
Physical: Machinery, building, and land resources of Fashion and Trends include in it.
1.3 Credible proposal to launch a new venture:
A credible proposal needs to be made specifying the actual target that can be achieved through
the new firm Fashion and Trends by the entrepreneur taking the help of other business partners
or venture capitalists. It should be made under the proper guidance of professionals and
specialists and can differ from one another and according to the size of the firm, to achieve

vision, mission, and objectives and communicate with employees of the firm. The credible
proposal of Fashion Trends are as follows:
Executive Summary Because of changing needs and demands of people, Fashion and
Trends are launching a new business in England to provide goods to
customers with current trends products.
Company Description It is a small and medium-sized company in England which deals in
producing and selling a wide range of products to their customers in
the clothing segment to fulfill people’s requirements due to high
demands and current trend needs.
Market Analysis The attractiveness and the dynamics of a special market within a
special industry, clothing in the case of Fashion and Trends is
known as Market Analysis and is very important for the firm to
establish a business in this competitive era. They have done their
research before establishing their venture in England market to
know the various factors influencing business such as political,
economic, and management support. They can use tools like SWOT
and PESTEL analysis to know about the market and industry
scenarios and competitors.
Financial Projection Appropriate cash flow should be made to identify actual cash
incurred for launching a new venture by the entrepreneur. In case of
fund shortage, loans can be taken from banks or partners’ capital. To
establish Fashion and Trends the cost incurred maybe $100-$150
and this financial projection should be handled by skilled,
knowledgeable, and experienced people as it is the biggest
department of the organization.
Benchmarking Comparing business processes and performance metrics to industry
bests and best practices from other companies helps the entrepreneur
to set benchmarks that can be achieved within a particular period. It
creates motivation within the company if Fashion and Trends decide
to communicate it to their people and express desired goals and
objectives that help in building Downloaded from desklib.com

confidence to perform work with efforts and dedication (Valdez &
Richardson, 2013).
Task 2: Skills and capabilities required, acquirement and
development.
2.1 Skills and capabilities required to launch a new
venture:
To carry out tasks in the firm to get growth and success in the market, various strategies are
needed to be implemented which can happen only if entrepreneurs have sufficient skills and
knowledge. The most important and required skills and knowledge for an entrepreneur to have
are as follows:
Skills:
An ability for carrying out tasks to determine outcomes within given energy and time is
known as skills and is divided into domain-specific and general skills (Faems & et. al., 2012).
Skills for Fashion and Trends to start a new venture is given below:
Decision-Making Skill: Judgements taken in the organization by entrepreneurs for
different plans and policies keeping the internal and external factors of the environment in mind
is known as decision making. Decision-making skills in Fashion and Trends should be made
very strong after performing complex tasks or handling critical situations.
Risk-Taking Ability or Skill: Due to the dynamic nature of the market, various risks are
to be taken calmly which may affect the performance and productivity of the company. Fashion
and Trends entrepreneurs should have risk-taking abilities that can be related to manpower,
production, competitors, productivity, profit, etc. after which proper analysis and decision should
be taken.
Management Skills: The way of planning, organizing, staffing, directing, and
controlling business falls under the management section and are managed through bits of help of
managing skill possessed by the entrepreneur in business. Entrepreneurs of Fashion and Trends
can easily assign roles and responsibilities to their working force to achieve goals and objectives
with help of management skills.

Leadership Skills: To lead members towards desired goals for the execution of work,
leadership skills carry an immense role that also provides training to improve the efficiency of
members of the organization. Entrepreneurs of Fashion and Trends possess such skills for better
communication, coordination, and guidance towards success.
Knowledge:
Familiarity, understanding, or awareness of something or someone including information,
facts, and descriptions acquired through education or experience by discovering, learning, or
perceiving i.e., a sum of skills, experiences, capabilities, and insight collectively created and
relied upon in business is the knowledge in business. Knowledge to be acquired by Fashion and
Trends for the successful running of the business are as follows:
Marketing and client administrations: Research and proper analysis should be done to
gain sufficient knowledge by the entrepreneurs for operating successfully in the competitive
market. Fashion and Trends should have proper knowledge about the taste, trends, needs, and
preferences of people and produce accordingly as they provide products to their set clients.
Time administration: The entrepreneurs of Fashion and Trends should ensure task
completion within proper time and achieve goals and objectives.
Project administration: Organizing necessary team members and specialized personnel
in reporting, facilitating, and analyzing projects under the guidance of the manager falls under
this section. Fashion and Trends need to have a proper idea of the project and appoint workers
accordingly.
The above-mentioned skills and knowledge can be easily acquired through attending seminars
and conferences and also by own guidance through online articles and help Fashion and Trends
achieve their goal and objectives.

Task 3: Appropriate promotional activities to support the
launch.
3.1 Different promotional activities and channels to
support the launch:
An activity or strategy used by every organization to ensure their product and brand reach all
over the place and attract the target market is known as promotion. Using various channels and
media in this modern world eases the work of interacting with customers and increases interest in
products or services. Fashion and Trends is a new merchandise firm that mainly focuses on the
youth of society, hence promotional activities are a good option for the organization to attract the
good gentry of society and increase the interest of customers in their products by detailing their
products and their specialties through various channels. Some of them are:
Offers customers an Exclusive Preview: Here, the organization arranges a grant
preview or pre-launch parties of their products and can make an exclusive offer to special and
loyal customers to make them feel special which Fashion and Trends can also apply in their
grand opening and help the client to know about upcoming products in the market and create
excitement to purchase those goods (Kariv, 2013).
Social Media: Social media is the best way to promote products or services in the current
world having 90% affiliation with the society and message content is easy to understand and is in
the form of fun and cartoons which will be very much beneficial for Fashion and Trends as their
target market is the youth and they are more attached to such media which has a high chance of
generating profits (Kessler & et. al., 2013).
Email Marketing: One of the easiest and best ways to come in contact with potential
customers with the product or service is email marketing. As customers more or less open their
emails daily for their needs, they come across the promotional emails of their desired products
and can easily interact with the affiliated company.
Host Events: It is rather a bit tough way compared to the other, but if yielded perfectly
carries outstanding results towards it. Here, fashion and Trends need to arrange physical events
to make physical interactions with customers in different locations.

Personal Promotions: The employees of Fashion and Trends need to visit customers and
provide clothing to wear on a trial basis in this process that will impact purchasing power and
interest of customers and also trust and loyalty towards the firm and its products.
3.2 Promotional activity plan for both launch and pre-
launch:
In addition to strategies after launch or during launch, Fashion and Trends also need to focus on
their pre-launch strategies so that they can get hold of their target market easily and influence.
Effective promotional activities plan to enter the competitive market in the United Kingdom
needs to be implemented by them (Klotz & et. al., 2014).
Pre-Launch:
A marketing technique that enables the target market to know about any upcoming
product or service teasing them is the pre-launch strategy which is supported by many affiliates
in which heavy promotion of the product is done before it is officially on sale. It creates interest
and curiosity about goods among people and is finally eager to buy that product. Fashion and
Trends can prepare an official website and advertise products and services with real pictures and
go through reviews of their past customers which assist the firm to achieve reliability and trust
(Kuratko & Hornsby, 2017).
Launch:
It is the phase after the product is shown to the customers and is officially available in the
market and the act of creating, promoting, and presenting is in the works. Fashion and Trends
conduct the opening ceremony of the new firm in the market regarding offers and benefits where
media capture every moment which is also their final stage of promotion that awareness in
people mind regarding new firm entering into the market.
Task 4: Appropriate legal form and a budget for launch.
4.1 Monthly cash budget for pre-launch and first 12-18
months preceding the launch:
An estimated budget related to the acquisition of funds from different sources according to needs
and requirements to establish Fashion and Trends in the United Kingdom market is their cash

budget. It helps prevent situations like shortage of funds, decreasing the situations of wastage of
funds and maximizing utilization of resources in an optimum manner and hence conduct
business operations more smoothly (Lim, Busenitz & Chidambaram, 2013). The cash flow
budget at the time of the launch of Fashion and Trends and after 12-18 months is given below:
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 balance 0 7700 7900 9200 11400 11500
Closing balance 7700 7900 9200 11400 11500 130000
Particulars July Aug Sept Oct Nov Dec
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
4.2 Appropriate legal form for the venture:
Out of several legal forms, the new venture may take legal forms such as a sole proprietorship, a
partnership, a limited liability company, or a corporation which will be determined by the scope
and nature of the new venture (Tate, 2017). The new venture “Fashion and Trends” that is going
to launch will have a comparatively limited scope of operation in its early stage of operation. It
will require a lot of resources but only a factory and proper management system will be cut out
for it. So, the venture is needed to be launched as a partnership. Besides, there are other benefits
to the partnership also, such as:
1. Amount of capital required will be low as divided.
2. Doesn’t have much legal complexity and may be formed easily.
3. Liabilities and responsibilities get divided, hence gets easier to run the corporate.
For such reasons and various other scopes, we have decided to launch the venture as a
partnership.
Conclusion:
The above report includes the entrepreneurs taking various steps from the idea making of the
venture to its launch and 12-18 months of conduction which is a very tedious and complex task.
Serving product gaps, analysis of market segment and fixing target market, deciding on
promotional activities, etc. are included elaborately in the report provided.
Reference:
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Chrisman, J. J., and et. al., 2012. Counseling assistance, entrepreneurship education, and new
venture performance. Journal of Entrepreneurship and Public Policy. 1(1). pp.63-83.

Ciabuschi, F., Perna, A. and Snehota, I., 2012. Assembling resources when forming a new
business. Journal of Business Research. 65(2). pp.220-229.
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entrepreneurship. Entrepreneurship theory and practice. 37(5). pp.1149-1175.
Faems, D., and et. al., 2012. The process of value realization in asymmetric new venture
development alliances: Governing the transition from exploration to exploitation. Journal of
engineering and technology management. 29(4). pp.508-527.
Kariv, D., 2013. Female entrepreneurship and the new venture creation: An international
overview. Routledge.
Kessler, A., and et. al., 2013 Predicting founding success and new venture survival: A
longitudinal nascent entrepreneurship approach. Journal of Enterprising Culture. 20(01). pp.25-
55.
Klotz, A. C., and et. al., 2014 New venture teams: A review of the literature and roadmap for
future research. Journal of management. 40(1). pp.226-255.
Kuratko, D. F. and Hornsby, J. S., 2017. New venture management: The entrepreneur’s roadmap.
Routledge.
Lim, J. Y. K., Busenitz, L. W. and Chidambaram, L., 2013. New venture teams and the quality
of business opportunities identified: Faultlines between subgroups of founders and investors.
Entrepreneurship Theory and Practice. 37(1). pp.47-67.
Tate, G. (2017). Entrepreneurship and SMEs in the UK. The Journal of Entrepreneurship, 19(2),
pp.191-207.