[DOCUMENT] Post Launch Cash Budget

The provided document is a detailed cash budget analysis for a post-launch period. It includes a table with specific dates from January to December, detailing cash inflows (investment, credit sales) and outflows (fixed equipment costs, variable direct material costs). The net cash flow is calculated for each month, and the opening and closing balance are tracked. This document provides valuable information for businesses or individuals looking to manage their finances effectively during a post-launch period.

Launching a New Venture

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Identification of specific target market and competitive analysis....................................1
P2: Specific tangible and intangible resources that required for a new venture....................4
TASK 2............................................................................................................................................5
P3 Formulation of credible proposal to launch a new venture...............................................5
P4: Skills and capabilities required to launch a new venture.................................................6
TASK 3............................................................................................................................................7
P5: Determination of promotional activities and channels for launching a new venture.......7
P6: Formulation of appropriate promotional activities plan for both launch and pre-launch 8
TASK 4..........................................................................................................................................10
P7: Monthly cash budget for the pre and after launch phase...............................................10
CONCLUSION....................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Every entrepreneur tried to be a successful at global level which builds an idea in their mind to start a new venture in particular nation
where their business achieve huge sustainability within shorter period of time and generate huge profitability. For this, it is essential to invest in
analysing the market needs and demands where an entrepreneur decide to launch their business. Due to having lots of competitors and
fluctuations in needs and preferences of people, it is necessary to first conduct market research so that an effective decisions and plans can be
made in advance to deal with such influencing factors. The present assignment is based on "Hardcorp Gym" which is new start-up going to
launch in Germany by an entrepreneur after getting huge successful in UK market. This newly venture is Gym providing various fitness
activities such as aerobics exercises such as swimming, Flexibility exercises such as yoga and muscle strengthening training such as lifting
weights etc. The project discusses the tangible and intangible resources, specific target market along with competitive analysis, credible proposal
and skills as well as capabilities required to launch a new venture more successfully.
TASK 1
P1: Identification of specific target market and competitive analysis
Venture idea:
"Hardcorp Gym" is newly launched venture which is going to establish in Germany with a hope of achieving huge market share and
profitability. The business is engaged in providing various fitness activities such as such as fileaerobics exercises such as dancing, Flexibility
exercises such as yoga and muscle strengthening training such as lifting weights etc. As due to having huge demands of gym in Germany after
UK, an entrepreneur decide to launch its newly gym in such nation with an objective of maintaining healthy lifestyle of every individuals
(Fitness industry in Europe, 2018). For this, Berlin city has been targeted to launch its new venture where the people are more looking towards
getting membership of Gym. Berlin is the highest populated city in Germany which increases the possibilities of achieving huge success and
profits within shorter period of time. Through analysing Germany market, it has been identified that maximum number of people especially
youths are more preferred to join gym in order to maintain their fitness level and avoid any harmful diseases
(Bijker and et. al., 2012). This will m fileotivate an entrepreneur to select Germany as most preferable nation to launch its new venture.
Entering into new market requires support from various members in order to market their products and services so that huge
sustainability can easily be achieved within limited time period. Therefore, an entrepreneur decide to take support from their colleagues who are
having good knowledge about using marketing techniques and launch its new venture in partnership form. It makes easy for an entrepreneur to
divide its roles and responsibilities with their partners due to which the desired activities can be implemented in more effective and efficient
manner. To establish "Hardcorp Gym", an entrepreneur purchases 1200 square feet in Berlin with a lease of 9 years with an expectation of
continuing its new business without facing any difficulties. The estimated cost that to be incurred in setting up a new venture is around 2200,000
to 5,00,000 dollar. Here is the area where an entrepreneur required to incurred cost.
Investment Tables:
Estimated Initial Investment
Name of Fee Low High
Initial Franchise Fee £32,000 £40,000
Travel and Living Expenses During Training £4,000 £7,000
3 Months' Rent £26,250 £367,500
Security Deposit for Lease £9,000 £225,000
Leasehold Improvements and Construction Costs (assuming no pool) £1,750,000 £2,800,000
Selectorized Equipment and Free Weights £125,000 £500,000
Cardiovascular Equipment £150,000 £500,000
Signage £35,000 £85,000
Initial Inventory, Other Equipment and Supplies £12,000 £56,000
Computer System and Gym Management System £20,000 £35,000
Advertising and Marketing £25,000 £170,000
Miscellaneous Opening Costs £10,000 £65,000
Additional Funds - 3 Months £20,000 £150,000
TOTAL ESTIMATED INITIAL INVESTMENT* £2,218,250 £5,000,500
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Objectives: Launching a new venture has some objective to achieve which is decided by the partners with mutual consent. It is effective if
prepared in SMART way which are given as under: Specific: Achieving huge market share of Berlin to generate huge profits. Measurable: Approx. 70% market share has been targeted to achieve. Achievable: Through providing various kinds of fitness exercises for all age groups. Relevancy: It strong the market presence in German market. Time bound: Within 1 year.
Target market: The decision of selecting particular nation for starting a new venture is very much based on the number of people the
business received for its products and services. It can be easily identified through analysing market needs which are fluctuated on frequent basis.
Therefore, before launching "Hardcorp Gym" an entrepreneur should segment population of Berlin on the basis of demographic, geographic and
psycho-graphic (Duggal and Sassoon, 2015).
Geographic: The newly venture always targeting those geographical locations where the demand of their products and services are more
due to achieving its desired goals and objectives. In Germany, As "Hardcorp Gym" is fitness centre which are more in demanded by people of
Berlin due to having huge amount of population as compared to other cities of Germany, an entrepreneur targeting Geographic segmentation.
Demographic: The population of Berlin is segmented on the basis of gender, age, religion etc. Fitness programs are mainly attracts
youths due to having their huge preferences in order to maintain their lifestyle more healthy. Therefore, an entrepreneur targets youth with their
newly business "Hardcorp Gym".
Psychographic: Nowadays the people includes fitness activities in their daily routine so as to remain fit. Increasing awareness regarding
maintaining their health by engaging in various gymming activities, it brings favourable result to "Hardcorp Gym". Therefore, both middle and
higher income level group are the targeted people to whom "Hardcorp Gym" rely on.
Competitive analysis:
The main difficulty to achieve huge sustainability in new market within shorter period of time is level of competition. "Hardcorp Gym" is
fitness centre which provides various gymming services due to which it may difficult for them to survive in Berlin market where lots of rivals
are already existed with good market image and standard amenities. McFit, Superfit, Rent-a trainer Berlin etc. are such businesses which are
engaged in providing similar services and attained strong brand image in market. Therefore, it is important to understand their competitive
strategies and marketing plans and accordingly make decisions in order to achieve competitive advantage in Berlin market (Fernhaber and Li,
2013).
P2: Specific tangible and intangible resources that required for a new venture
Various resources are needed by any organisation for using them in an effective manner while establishing a new venture. These
resources are segmented in tangible and intangible resources. "Hardcorp Gym" is a new venture which also needs such resources for performing
better in the market.
Tangible resources: These resources can be sensed and touched as these are present physically and contributes in the proper functioning
of firm in the market. The most essential resource is funds which are important for starting the new business of "Hardcorp Gym". Without proper
funds, "Hardcorp Gym" cannot buy the required machinery and inventory required for the production and other important processes. The human
resources are must for any organisation for contributing their efforts for the betterment of the organisation. "Hardcorp Gym" needs to hire skilled
and knowledgeable candidates for their various processes for getting effective and efficient results. Human resources are another important
resources which are necessary for utilising the physical resources such as funds, machines, etc. These resources are explained as under:
Human Resources: These resources are needed in the company as they will help in keeping the proper equipments at proper place and for
keeping the working place neat and clean. Skilled and capable human resources will be able to perform housekeeping activates in a proper
manner, due to which individuals which will be working out at gym will feel more satisfied because of hygiene and cleanliness.
Funds: Another resource is the funds. To manage a business in an profitable manner, sufficient amount of fund is required. With the help of
capital, new equipments can be purchased for gym that will helps in gaining wide attention of customers towards the facilities offered by gym.
Beside this, other required assets will also be purchased with the help of sufficient amount of funds.
Machines: These are another important resource for the business as these are the main source of income this business.
Intangible resources: These are defined as the assets which are not physically present in the company but are necessary for the proper
functioning of the firm. It includes producing quality products for building better relationship with the end users. It is very difficult to calculated
intangible resources on the basis of cash. Hardcorp Gym need work on their goodwill which is one of the most important factor in intangible
resources. They need to register their companies name at first in Companies house. Intangible resources will help them to take competitive
advantage in market. Through these, "Hardcorp Gym" can achieve competitive edge over the competitors. The explanation of intangible assets
such as goodwill technology are provided as under:
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Goodwill: It is also an important resource for the company as this will create a good image of the business in the market. Good will in market
will benefits the organisation in enhancing their brand reputation. Due to this, customer base of gym will expand in a considerable manner that
will results in generation of high revenues. This will help in the long term sustainability and growth of the business.
Technology: Another important intangible resource for the business is the technology such as the use of software for maintaining proper records
of customers, websites for providing information about the facilities of the business. If investment in technology will not carried out, then
comfortableness of customers will reduce. This is because issues while paying payment or mismanagement of records can be faced that can
create a negative reputation of gym.
TASK 2
P3 Formulation of credible proposal to launch a new venture
An entrepreneur must have a skills and capabilities to make an effective proposal which determines the actions that need to be taken in
order to achieve desired goals and objectives within pre-determined time period. It is prepared under the direction given by specialised experts so
as to utilise available resources in an optimum manner while achieving mission, vision and objectives of "Hardcorp Gym". It also brings
motivation among team mates to work hard and give their best efforts after clearly understanding roles and responsibilities they need to perform
(Kariv, 2013). Such proposal will be prepared in following way:
Executive Summary: "Hardcorp Gym" is going to establish in Berlin city of Germany by an entrepreneur in partnership form after
achieving huge success in UK market. The main objective of launching a new venture in new market is to capture huge market share and
achieve strong identity at global level. The decision of entering into Germany market came through the results after conducting results where the
large number of gym freaks prefers to join a gym and wants to maintain their lifestyle. This is a big opportunity for business owner of Hardcorp
Gym to earn high revenues and profitability by providing all the desired gym facilities and services to the health conscious peoples.
Company description: "Hardcorp Gym" is a fitness centre which provides multiple fitness and gymming services such as aerobics
exercises such as swimming, Flexibility exercises such as yoga and muscle strengthening training such as lifting weights etc. in order to support
people to maintain their healthy lifestyle. For this, Berlin is selected as primary location due to having huge customer base who are willing to get
such services to stay fit. As citizens of nation wants to leave a fit life and always prefers healthy lifestyle therefore, desired location will be
beneficial for the entrepreneur in establishing a new venture. As company is going to establish gym at prime location, large number of youth and
teenagers will prefer to come there due to which stable customer base will be acquired by Hardcorp Gym.
Market Analysis: Due to fluctuations in customers needs and preferences along with the competitors strategies, it is more important for
"Hardcorp Gym" to conduct market research through both primary and secondary sources. Such influencing factors can be analysed through
using PESTLE, Porter five forces, Porter Generic strategies etc. which enables an entrepreneur to make an effective plans and actions in
advance. As the political and economic condition of Germany are supportive for the entrepreneur then they can launch Hardcorp Gym in
German market. People in Germany earn disposable income due to which they are ready to spend it on mainlining their health and fitness. This
is a good opportunity for business owner of gym to sustain a good market share and high brand reputation.
Financial projection: Funds is an essential requirement which must be invested in such an effective manner that will help an
entrepreneurial to receive maximum return in near future. Therefore, the entrepreneur should identify the present cash reserves and make
decisions accordingly. For this, Entrepreneur can fulfil the shortage of funds through raising from partner's capital and banks etc. In
establishment of "Hardcorp Gym", around 32,00,000 pounds which is huge in figures. To arrange these funds, high investment form investors is
required. Remaining amount can be managed by taking loan form banks and other financial institutions.
Benchmarking: Preparation of an effective plans and programs for future execution of business activities brings motivation among team
mates of business to work with more enthusiasm and dedication. Setting up target with time deadline forces the staff to put more efforts in
achieving within minimum time period. In the context with "Hardcorp Gym", they can get huge profitability in German market only if they will
communicate the goals or objectives of firm to their staff member in clear manner through it they will perform on the activities and tasks in more
better manner which will be profitable for firm in establishing new venture at desired location.
P4: Skills and capabilities required to launch a new venture
Effective strategies requires an effective skills to prepare in order to achieve desired goals and objectives within pre-determined time
period. Therefore, an entrepreneur must required to acquire necessary skills and abilities which assist them in sustaining and growing their
business in new market within shorter time period. Such skills are briefly listed as under:
Management skills: There are different activities that need to be managed and controlled so as to achieve desired outcomes. This
requires an entrepreneur to attained management skills which can be acquired through participating in management programs, seminars etc. It
will helps an individual in delivering their best performance and achievement of goals & objective in an allotted time period. By this working
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potential of an individual will enhance considerably. For example, management of funds is essential in order to make salary payment to trainers
of "Hardcorp Gym" on time. Thus, it requires management skills (Robb and Watson, 2012).
Decision-making skills: There are various challenges which can affect the existence of "Hardcorp Gym" in new market due to having
several influencing factors in business environment. To deal with them in more effective and efficient manner, the business owner of "Hardcorp
Gym" must have an ability to make corrective decisions which can be acquired or improved through engaging in solving case studies or
performing in actual complex situations.
Risk taking ability: The business owner of "Hardcorp Gym" should make efforts in achieving competitive advantage through grabbing
opportunities by fulfilling the needs and requirements of customers which are changed over a period of time. This will be possible through
having risk taking ability which can be acquired through engaging in the activities where the rate of risk are high.
Leadership Skills: The owner of “Hardcorp Gym” must focus on leadership skill as it required the most while doing any kind of work. It
will help to motive and enhance the working capacity of all other employee's who are working under the manager of Hardcorp Gym. Leadership
skill will benefits an individual in strengthening theoir negotiation and communication skills so that a better character can be acquired. Effective
leadership skills promises high growth in career.
Problem Solving Skill: Every manager must have the ability to solve the problem of there customer. In context of Hardcorp Gym, they
must have separate department who will work for solving any kind of problem of their customers. By this all the employees will feel comfortable
in sharing their problems. Along with it, they will perform their best performance due to comfortableness at workplace. It will also help in taking
better decision at the time of pressure situation.
TASK 3
P5: Determination of promotional activities and channels for launching a new venture
Customers is considered as a lifeline of any business whose needs and preferences decide the sustainability and profitability of any
business venture established in market. Therefore, it is important for business owners of "Hardcorp Gym" to create awareness about their
existence into their market through using different promotional activities and channels. The interest and buying behaviour of customers easily
attracts towards the promotional programs conducted by business venture therefore nowadays it is essential to invest in adoption of such tools
and programs so as to achieve huge customer strength. Such promotional tools and activities are determined as under:
Social media platform: According to the Statista report (2018), there are approx. 37.3 million people of Germany who are active on
social media platform. Therefore, it is considered as an effective tool that must be adopted by the business owners to promote their new venture
"Hardcorp Gym" in German market so that the interest and buying behaviour of people can easily influences towards them. Social media
platform includes Facebook, Instagram etc. where the advertisements related with the functions and benefits of "Hardcorp Gym" can easily be
published. It consumes less time, efforts and funds due to which it is most preferable method to adopt (Roseno, Enkel and Mezger, 2013). With
the help of social media platforms time and money of firm will be saved which can be used by the entrepreneurs in performing other operations.
It will also helps the entrepreneurs in attracting a large number of customers which will also beneficial for enhancing the growth or sustainability
of firm in new market areas.
Mobile Billboards: It is also determined as another effective tool through which business owners of "Hardcorp Gym" can easily grab an
attention of maximum number of people towards their fitness services. Under such method, the business owners of "Hardcorp Gym" should
prepare punch lines, logos, sticker etc. in order to achieve recognition in German market with good image and identity. The entrepreneur has
created an effective punchline for introducing Gym in Germany nation like “BE More Do More” which will be beneficial for them in gaining
recognition of large pool of consumers which will indirectly supports to the firm in making brand image in the new marketplace.
Personal promotions: Such tools provides an opportunities to the business owners of "Hardcorp Gym" to make direct contact with the
customers through meeting them in personally for the purpose of influencing their buying behaviour toward the services their newly business
offers. It creates trust and loyalty of customers towards business which brings long term advantages to company. With the help of this tool,
entrepreneur will identify the needs and demands of citizens of nation through which services will be provided to them accordingly. When
customers will get expected services in cheaper rates then it automatically leads the firm in formulating brand image in front of their customers
Direct marketing: It is one of latest form of marketing the company where organisation can do marketing with the help of sending
letters, pamphlets, emails and even sending brochures to individual target clients. Here Hardcorp Gym can provide different discount offers
while adding the member through emails and all. As Germany is a developed nation therefore, Digital marketing will be prove as profitable for
the entrepreneurs with the help of it the business persons and citizens who having busy schedules will easily attracted towards the offerings of
firm which is beneficial for brand image of new venture.
Free Training season: Hardcorp can provide free training season to all new customers where they can provide knowledge how they can
use this machines and what can be done to improve the physical health. It will also proved as beneficial for the firm because when new
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customers will get quality services at reasonable prices then the company will easily achieve a strong customer base in the marketplace which
results in enhancing the brand image of firm.
"Hardcorp Gym" has followed both bundled and optional pricing strategies. With the use of bundles pricing strategies, the customers are
allowed to pay one rate whether it is weekly, monthly or yearly and it includes all facilities provided by the venture. On the other hand, optional
pricing facilitate customers to pay only for using limited facilities according to their needs and requirements. With the help of these pricing
strategies customers will automatically attracted towards services of organisation and their loyalty will also enhanced which is beneficial for the
firm in making a good brand image in the new market areas.
P6: Formulation of appropriate promotional activities plan for both launch and pre-launch
There are mainly two stages at which business owners of "Hardcorp Gym" need to put more efforts in grabbing an attention of maximum
number of customers of new market. Such stages includes pre-launch and launch. At both these stages, business owner need to prepare suitable
promotional activities plan so as to spread information about their entrance into new market with their best amenities and facilities.
Pre-launch: This is the first stage at which business owners of "Hardcorp Gym" prepare official websites on internet where the
information related with all services and trainers are displayed along with their details and locations. As lots of customers nowadays are using
internet to search something thus it maximises their opportunity to bring the information about their business to maximum number of people
(Yu,Chen and Nguyen, 2014).
Launch: It is the stage at which business owners finally launch its new business "Hardcorp Gym" through organising opening party
where the members of media are respectably invited to gather all information discussed at such event. It facilitate the members of "Hardcorp
Gym" to answer the questions asked by the media representatives which further telecast on TV or published on newspapers or social media
platform. It easily spread the information in German market about their entrance on particular time period. At such stage, the business owners
must display promotional messages or attractive logo which can easily capture an eye of huge number of customers.
Before and after the launch of the new product the business has to make use of several promotional activities which are explained as under:
Advertising: The new venture can make use of advertising as a promotional tool for the promotion of its business. It can be done with the help of
television, newspapers, magazines, radio so as to make the people aware about the new venture. Advertising done with these ways will help in
creating and developing the brand in the minds of the people.
Sales Promotion: Another way of promotion is to make it with the help of sales promotion. During the period of its new opening it can provide
the customers with several benefits such as free registration for one month, discounts for new joiners on the fees, etc. in order to create the
awareness of the venture in the minds of the people. This is another way which will help in developing the brand in the market.
Financial consideration to start a new venture:
There are some money related thought which should be centered around by a business person while propelling its new business
"Hardcorp Gym" in Germany. It incorporates:
Limit overhead: The business owners of "Hardcorp Gym" should attempt to constrain its costs at the the earlier stage. It very well may
be conceivable through removing the pointless costs which acquires no result to organization during its establishment. For instance, quit putting
resources to decorate offices, and over the best conveniences which expands costs of business (Launching a new venture, 2018).
Track and screen spending: It requires business owners of "Hardcorp Gym" to track and screen each spending so as to limit the wastage
of expense and gain maximum profitability to business. It very well may be done through keeping up records of every exchange made which
help in controlling spending.
Invest appropriately: The business owners of "Hardcorp Gym" should initially guarantee about profit got in future for their venture and
accordingly make suitable actions regarding investment. For instance, choice of obtaining of land for foundation of new business in well known
area such as Romania will conveys gainful result to organization.
Keep up money holds: A business person can depend on credit extensions and advances however it regularly better to have liquid assets.
For this, it must required for the business owners to maintain cash reserves. For instance, making significant buys during economic downturn
expands their liquid assets (Zaremba, Bode and Wagner, 2017).
TASK 4
P7: Monthly cash budget for the pre and after launch phase
Cash Budget is an estimated plan of cash receipts and disbursements during the certain period. It help an entrepreneur to identify their
actual amount of funds they have at present to invest so that the decisions regarding raising funds from different sources are made in order to
prevent the situation of shortage. It brings confidence among staff and team members of "Hardcorp Gym" to execute business functions in
desired way through utilising funds in an optimum manner. Therefore, it is beneficial to prepare cash-flow budget for both launch and after 12-
18 months of "Hardcorp Gym" in following way:
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Pre launch cash budget
Cover in appendix
Interpretation: From the above table it can be said that pre cash budget is prepared on the basis of Investment, credit sale, cash outflows
and inflows. This will help to pre plan regarding budget and where it need to be invested while conducting the business activity.
Post launch cash
budget
Cover in Appendix
Interpretation: The above table is related with post cash flow budget where all expenses are related with investment, fixed assets and
current assets. It will help to prepare the annual account at the end of financial year.
In the present market, a large number of ventures are operating their business activities with their own purpose depending upon their
nature and scope. It is essential for entrepreneurs to understand their legal structure in order to continue their operations in the market for longer
time period. Some of these ventures are discussed below:
Sole trader: It is the simplest type of venture in which limited number of rules and laws are created by the government for effectively
operating the various functions and activities of the business. In this venture, single person is the owner and operates the business themselves due
to which the total profit and margin remains with him/her. The owner is responsible for all the debts and liabilities of business.
Company: It is separate legal entity and the owner is not responsible for paying any debts and liabilities. It is of two types i.e. private and
public. Private company is owned by individuals who came into market for the purpose of earning maximum benefits. Public company is owned
by the government for improving the living standards of individuals without worrying about profit.
Partnership firms: In this, two or more persons came together with shared goals and objectives through an contractual agreement which
is called as partnership. Under the agreement, all terms and conditions associated with the business are mentioned along with the consequences
and directs the partners to perform their roles and responsibilities in an efficient manner.
Limited Liability company: This types of company are started to just to protect the liability of investors. It is one of the best way to
conduct the business activity. There are various benefit which are provided by government in this types of business. There are different sources
of raising funds like applying for bank loan, credit card, apply for loan from government agencies
Joint Venture: This types of business are started just to enhance the profit of an organisation. Here two or more than two organisation
come together for the purpose of ding business together.
In this report, "Hardcorp Gym" is a partnership firm which is controlled by more than one partner. An entrepreneur needs to have suitable
amount of funds, resources for expanding in other areas of world. For this, entrepreneur needs to provide company's share to other people for
offering maximum help in return.
CONCLUSION
It has been summarised from the above project report that entering into new market requires lots of an effective strategies and suitable
plans to formulate due to which an entrepreneur must required to acquire specific skills and capabilities to run business for longer period of time.
It also required to have sufficient amount of intangible and tangible resources so as to utilised them in execution of business functions in more
effective way. To operate business activities more effectively without any interruptions, it is important to prepare cash-flow budget showing cash
inflow and outflow of business.
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REFERENCES
Books and Journals
Bijker, W. E. and et. al., 2012. The social construction of technological systems: New directions in the sociology and history of technology. MIT
press.
Duggal, S. and Sassoon, D., 2015. Crowdfunding: Insights Into The Motives That Influence Entrepreneurs When Launching A Successful
Campaign.
Fernhaber, S. A. and Li, D., 2013. International exposure through network relationships: Implications for new venture internationalization.
Journal of Business Venturing. 28(2). pp.316-334.
Kariv, D., 2013. Female entrepreneurship and the new venture creation: An international overview. Routledge.
Robb, A. M. and Watson, J., 2012. Gender differences in firm performance: Evidence from new ventures in the United States. Journal of
Business Venturing. 27(5). pp.544-558.
Roseno, A., Enkel, E. and Mezger, F., 2013. Distinctive dynamic capabilities for new business creation: Sensing, seizing, scaling and separating.
International Journal of Technology Marketing 24. 8(2). pp.197-234.
Yu, X., Chen, Y. and Nguyen, B., 2014. Knowledge management, learning behavior from failure and new product development in new
technology ventures. Systems Research and Behavioral Science. 31(3). pp.405-423.
Zaremba, B. W., Bode, C. and Wagner, S. M., 2017. New venture partnering capability: an empirical investigation into how buying firms
effectively leverage the potential of innovative new ventures. Journal of supply chain management. 53(1). pp.41-64.
Online
Launching a new venture. 2018. [Online]. Available through: <https://www.exed.hbs.edu/programs/lnv/Pages/default.aspx>.
Number of social network users in Germany. 2018. [Online]. Available through: <https://www.statista.com/statistics/260716/number-of-social-
network-users-in-germany/>.
Fitness industry in Europe. 2018. [Online]. Available through: <https://www.statista.com/topics/3405/fitness-industry-in-europe/>.
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APPENDIX 1
Cash flow Budget of The Hardcorp Gym for the Year of 2018
Pre launch cash
budget
Cash Flow budget
Particulars Jan Feb Mar Apr May June July August September October November December
Cash inflows
Investment 8000
Credit sales 2000 3000
300
0
450
0 1500 3500
420
0 1000 2000 800 1200 1500
Total inflows
1000
0 3000
300
0
450
0 1500 3500 4200 1000 2000 800 1200 1500
Cash outflows
Fixed : Equipment’s 2000 2500
150
0
200
0 1200 1500 800 200 300 100 600 300
Variable : Direct
material 300 300 200 300 150 500 300 400 500 100 100 400
Total outflows 2300 2800
170
0
230
0 1350 2000
11
00 600 800 200 700 700
Net cash flow 7700 200
130
0
220
0 150 1500
31
00 400 1200 600 500 800
Opening balance 0 7700
790
0
920
0
1140
0
1150
0 ####
1610
0 16500 17700 18300 18800
closing balance 7700 7900
920
0
114
00
1155
0
1300
0
##
##
1650
0 17700 18300 18800 19600
Post launch cash
budget
Particulars Jan Feb Mar Apr May June July August September October November December
Cash inflows
Investment 8000
Credit sales 1200 2000
750
0
300
0 5000 6500
120
0 3200 1500 8200 1250 3210
Total inflows 9200 2000
750
0
300
0 5000 6500
12
00 3200 1500 8200 1250 3210
Cash outflows
Fixed : Equipment’s 2500 1200
150
0
250
0 1100 1500 1200 600 500 500 1200 700
Variable : Direct
material 350 300 250 150 100 500 500 250 450 250 1300 500
Total outflows 2850 1500
175
0
265
0 1200 2000
17
00 850 950 750 2500 1200
Net cash flow 6350 500
575
0 350 3800 4500
-
50
0 2350 550 7450 -1250 2010
Opening balance 0 6350
585
0
116
00
1195
0
1575
0 ####
1975
0 22100 22650 30100 28850
closing balance 6350 5850
116
00
119
50
1575
0
2025
0
##
##
2210
0 22650 30100 28850 30860
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10