Launching a New Venture

This project explores the process of launching a new venture, using the example of Eatable Planet, a restaurant in the United Kingdom. It covers various aspects like target market identification, competitive analysis, resource allocation, promotional strategies, cash budgeting, and legal structure selection. The project provides practical insights and valuable information for aspiring entrepreneurs.

LAUNCHING A NEW
VENTURE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 Identifying specific target market and undertaking competitive analysis.........................1
P2 Specific tangible and intangible resources that is required for launching a new business3
TASK 2............................................................................................................................................4
P3 Credible proposal while launching a new venture............................................................4
P4 Skills and capabilities needed for establishing new business...........................................5
TASK 3............................................................................................................................................7
P5 Different promotional activities which is important for launching a new venture...........7
P6 Suitable promotional activities before launch and pre-launch..........................................7
TASK 4............................................................................................................................................7
P7 Monthly cash budget.........................................................................................................7
P8 Appropriate legal form for venture so that it can be evaluated why it has been chosen.10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
In recent times, there are many companies that are tend to launch a new business in
market area. Now a day's entrepreneurs are ready to face challenges and they are implementing
their innovative and unique idea for establishing their new business (Launching a new venture,
2018). Eatable Planet wants to launch there new business in United Kingdom. Report will focus
on identifying specific targeted markets so that they can undertake competitive analysis. Other
than this, researcher will determining specific tangible and intangible resources which is
required in order to establish a new business. Apart from this, credible proposal for establishing a
new business is explained in this report. Along with this, skills and capabilities that are necessary
for the running business in a systematic manner is explained with the help of various
promotional activities that is required before planning for both launch and pre-launched process
is mentioned in this assignment. Lastly, suggestion of appropriate legal form for selected venture
is included in this report.
TASK 1
P1 Identifying specific target market and undertaking competitive analysis
Eatable Planet is a new business that wants to establish themselves in United Kingdom,
so that they can give appropriate services and facilities to its end customers. Before launching
their business company is concentrating on their interior as well as exterior designing so that
they can grab attention of maximum number of people towards their company (Baron and Tang,
2011). Restaurant is providing customers with various facilities like free Wi-Fi connection where
businessmen can sit and do their activities. Youngsters can hangout with their friends and spend
time together. Eatable Planet is located in Carnaby Street, London and they are famous for Eton
Mess which is a delicious dessert and it is a fabulous mixture of cream, strawberries and crushed
merangue. Therefore, it’s a classic British treat. Apart from this, they provide full English
Breakfast, Lunch and Dinner as well. So, it can be said that it is a full family restaurant.
Henceforth, Eatable Planet is a unique restaurant in terms of its interior and exterior
designing and it is pulling attention of maximum number of people. Further in their dishes
refereed enterprise are doing experiments and serving this to clients. Along with this, company is
considering all the factors that are present in the market area like taste and choices of customers
(Bijker and et. al., 2012). As a result it is helping business in increasing sales and revenues
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whatever they have decided in speculated period of time. Some of the factors that are required
for attaining goals and objectives are explained below:
Identifying specific target market: Every company establish themselves for gaining
maximum benefits, so they look out for area where they can launch their company for attaining
the same. Further their market segmentation can be done on the basis of three factors that are
explained below:
Demographic: This mainly focus on market segmentation on the basis of gender, age,
marital status, income level and many more. Thus, Eatable Planet is serving food items which is
loved by all age group.
Geographic: The area where company has established their business is a quite popular
place in London. Busy roads is helping Eatable Planet in attracting lot of people towards their
organisation.
Psycho-graphic: This category helps company in dividing area on the basis of socio-
economic class and income level. In this lifestyle of people are also considered. In context with
company they are providing food items at a reasonable rates which can be afforded by customers
of any status (Burns, 2017).
Competitive analysis: This helps an organisation in knowing the rival companies who
have established the same business in same area. From the gathered information it has been
evaluated that many restaurant have been opened in United Kingdom like The Led Bury, Liman
restaurant and many more. So, it can be said that all these companies have a large customer base
and they are helping them in generating a large number of revenues for the company. Further its
can be understood by porter's five forces analysis which are explained below:
Porter's five forces is considered as a tool that is used of analysing competition which is
present in market area. Further it can be classified by categorising into 5 points which is
mentioned below:
Threat of new entrants: Companies that will provide better services to its customers they
will gain higher outcomes in return. This will assist firms in attracting large number of customers
towards their organisation. In this present market scenarios, competition amongst companies are
increasing because of which already established enterprise are having a threat of new entrants.
Other than this, government policy and change in economic scale is some what plays a crucial
role in creating fear in the minds of companies of lacking behind.
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Threat of substitute: In London there are various restaurants who are providing services
and facilities to its customers and people are familiar with the taste and choices so customers
prefer going to these eating places. In context with Eatable Planet must provide excellent food
items so that they attract large number of customers as a result it will increase their sales and
revenues.
Bargaining power of customers: It can be described with the help of market outputs that
are provided to customers. Thus, it depends upon the number of customers company have with
them and how effective each consumer is? Customers can have a choice of choosing from where
they want to buy of purchase products. As Eatable Planet is new to the market area so they have
a small base of customers and to them company is giving effective services because of which
firm is holding a strong power at market area.
Bargaining power of suppliers: Company have choices in selecting their own suppliers
from where they want to purchase commodities. It depends upon suppliers how effective they are
giving to firms. For example: If a particular area have a large number of suppliers than company
can enjoy services according to the choices and preferences but if it is not done than suppliers
will hold the maximum benefits.
Industry rivalry: For most of the companies competitive is a biggest threat so new
venture must have adequate understanding of rival industry in order to become successful in the
market area.
Along with this, It has been analysed that, now a days youngsters are very foodie and
they love to eat delicious food. So, in this present report, their targeted segment is young people
because this helps them to expand their business at global level which aids to earn more money
and make competition at the market level. Along with this, it also attract more customers toward
their eatable restaurant and retain old customers for long period of time as they provide good
quality of food at affordable price.
P2 Specific tangible and intangible resources that is required for launching a new business
Eatable Planet is providing with the best food items to its clients from United Kingdom
and travellers from different areas as well. For making their products they are using high quality
of ingredients which are rich in essence and taste. These resources help company in operating
their business in an appropriate manner. Tangible resources basically includes, equipments,food
that are served, funds, employees etc., whereas Intangible resources are the services that are
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provided but cannot be seen for example: food item that are served to customers or guest is
included in intangible resources. Eatable Planet is a multi cruise restaurant that provides with
Chinese cuisine, Spanish, Thai, Continental etc., Further both the resources which company
should look out for are explained below:
Tangible resources: This includes materials that are in physical form and which can be
seen and they play crucial role in providing better services to consumers (Caselli and Negri,
2018). This involves land, where the restaurant is established, employees, food items, raw
material etc., Interior and exterior elements are also considered as it can have help company in
attracting a large number of customers towards them. Therefore, in context with Eatable Planet,
they are giving its clients with high quality of food which is assisting them in satisfying the
needs and demands of guest. Along with this, company is making food items by using latest
technologies for preparing food for example: company is using churning machineries for mixing
all the ingredients properly in order to make their famous dessert i.e. Eton Mess. Along with this,
the cost of tangible asset of churning machine is approximately £2210.50. on the other hand, in
tangible resources contain various things such as land for the company and human resources
whose main objective is to mange operational activities and helps them to make sustainability at
market place. Also, for this venture the cost of other tangible resources i.e., land and human
resource is approx £10k and £20k accordingly.
Intangible resources: Although these are not present physically but they are as important
as tangible resources and it includes culture, customer relation, trademark etc., Therefore, it
includes innovative ideas for expanding their business in a proper way. Along with this, it aid
companies in using appropriate tools and technologies which can be used for protecting
intellectual property rights, copyrights, trademark etc.. Further branding and promotional
activities are also done by using intangible resources a result it is helping them in pulling an
ample number of customers and travellers as well. This also includes skilled employees who can
perform their task in a skilled manner.
Henceforth, both tangible and intangible resources are very important if company wants
to run their business in a better manner. Thus, if food items that are served are of best quality and
taste than it will help Eatable Planet will gain trust and loyalty of customers for a longer period
of time (Fernhaber and Li, 2013).
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TASK 2
P3 Credible proposal while launching a new venture
Owner of the company, Eatable Planet, if they want to take their business in forward
direction they must formulate appropriate strategies and plan of action, as it will help them in
achieving their set targets and objectives in speculated period of time. Thus, for getting better
results it is essential that they make appropriate planning that can be further implement for
having effective outcomes. In context with Eatable Planet, they are undertaking various activities
that are explained below:
Executive Summary Eatable Planet is a new company that is established in United
Kingdom and they are providing with variety of dishes and food items
to its guests. Their Eton Mess is the most popular deserts for which
restaurant is famous for. Other than this, they are serving Full English
Breakfast, Lunch and Dinner as well.
Company description Restaurant will be situated in Carnaby Street, London. Area it covers
sis of 2500 square feet. Land was purchased two years back by the
owner and since than they were planning to launch a new venture.
This area was chosen because of the busy street as it will assist them
in increasing their sales and revenues by attracting large number of
people.
Market Analysis Market analysis is a very important concept and it is done before
establishing a new business as it provides with the information of
place from where company can gain maximum benefits and profit as
well. Along with this, it also assist company in expanding their
business in future. For this, company conducts SWOT and PESTLE
analysis is assisting them in doing so. In terms of Eatable Planet
market analysis is helping them in delivering food items in an
effective manner to its customers according to their choices and
preferences.
Financial projection Finance is a crucial factor that so, it is essential that company have
adequate amount of money which they can use in their business
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operations. In terms of Eatable Planet they have appropriate funds that
is helping them in conducting their business operations smoothly.
Restaurant's turn over which is determined is £2,05,300 to £3,00,100
for which they are asking investors in investing their money in their
business.
Benchmarking Setting bench mark is crucial as it provides company with an idea of
operating their business is that they can set a standard for themselves.
Therefore, it will help company in accomplishing their set targets and
objectives in speculated time frame. Eatable Planet is using bench
marking in for executing their plans in a better manner (Hmieleski,
Cole and Baron, 2012). Company is considering other renowned
companies as their benchmarks and they have set they will cross the
revenues around £2,05,500 in one year time.
P4 Skills and capabilities needed for establishing new business
A person who is starting his/her new business must have adequate skills and knowledge
about market area so that they can implement strategies and plan of action for gaining better
success. It will help them in enhancing their brand image in front of their customers as a result its
productivity will improve. For this, it is essential that entrepreneur grab all the opportunities that
are available in the market area. Therefore, a person having appropriate skills and knowledge
will give them a better chance of expanding their business in a better manner (Kariv, 2013) .
Thus, it help them in achieving their set goals and targets in particular time period. Some of the
factors are given below that is important to be considered for better business operations:
Marketing and consumers services: They are determined as an essential factor for as
they give services and facilities according to the needs and wants of customers. As a result it is
helping them in increasing their sales and profitability. Therefore, in terms of Eatable Planet, for
providing appropriate food items according to the choices and preferences of customers they are
taking feedbacks from consumers in order to now whether they need any changes in their menu
and serving pattern or not.
Time management: Producing good is not enough thus, it should be delivered to
customers in time. As in hospitality industry they it is essential that employees are trained
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properly. This will assist them in serving the food in a best possible manner, if the food is served
in an effective manner than customers will feel privilege and a connection is maintained. If food
are delivered in time than it will provide company with competitive advancement (Khan and et.
al., 2015).
Management of finance: Proper use of funds is very crucial as through this company can
implement money in a right manner and in specific way. Managers of Eatable Planet can monitor
the performance of every department so that they can evaluate whether money are being used for
right purpose or not. Company is taking sufficient amount of money from stakeholders and
investors and it is helping them in executing the task effectively.
Better communication: For executing plan in an appropriate manner it is essential that
company establishes a better communication amongst employees and subordinates. This will
assist them in maintaining transparency between workers and subordinates. Eatable Planet has
incorporated appropriate tools and technologies for interacting in a better way as a result it is
helping employees in performing the work in an effective manner. Further this communication
process help managers in motivating and encouraging its employees.
Project management: It is considered as an essential department that helps company in
having an overview about customers tastes and preferences. For collecting relevant information
company conducts surveys and take feedbacks from consumers so that they can evaluate what
changes they can make for increase their market shares and value (Klotz and et. al., 2014) .
Risk Factor: While launching a new venture risk factor is the biggest problem which
company can face. For sustaining a better position at market area it is essential that firm take risk
as it will help companies in getting into effective position.
Henceforth, Eatable Planet before, establishing their business they have determined all
these factors that are mentioned above and it is assisting them in achieving all its set targets and
goals in speculated time frame.
TASK 3
P5 Different promotional activities which is important for launching a new venture
In recent times, promotional activities has become much easier, as company can use
latest tools and technologies for promoting their respective actions. As it will assist managers in
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communicating with their customers effectively. Now a day's there are various kinds of tools are
present and these are explained below:
Marketing mix is considered as a tool that is used for creating a foundation model of
marketing. This mainly includes price, product, promotion and place which are explained below:
Price: It is a factor that must be considered by companies for increasing their sales and
revenues. In terms of Eatable Planet, should fix prices which customers can easily pay but they
must give best quality food items in return. This will act as a promotional activity as more people
will attract towards these companies.
Promotion: In recent times, firms have a adequate amount of tools and technologies for
importing their promotional activities. As a result it is helping companies in grabbing attention of
maximum number of people. Therefore, Eatable Planet is using effective marketing
communication techniques for interacting with consumers and it is done through advertisement,
direct sales and direct marketing.
Place: If company has established themselves in renowned or popular places it will
indirectly increase their sales and revenues. Eatable planet as less coverage channels but as their
foods is of best quality because of which firm is able to pulling attention of maximum number of
people.
Product: Eatable Planet is a restaurant so food items they are providing are of superior
quality. Their are using skilled employees who are helping companies in making food items tasty
and presentable.
P6 Suitable promotional activities before launch and pre-launch
To run business in an effective manner it is necessary that Eatable Planet used
appropriate promotional activities at the time of launching and pre-launching of new venture.
This will help company in increasing customer's base which will initially increase sales and
revenues. Therefore, different promotional activities provides with an opportunities of creating
interest amongst consumers so that they come and enjoy the meals and food items company
provide to guest (Kuratko and Hoskinson, 2016).
Pre-Launch promotions: In this, entire process of designing and how plan can be
executed is being conducted and it is done before establishing their companies. This give them
an overview about their rival competitors that are present in the market area. Development of
websites is regulated in this through which they are interact with their customers regarding food
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items they are providing to its consumers. In recent times, promotion of activities before
launching is a new trend and most of the companies create websites or launch certain
applications in order to develop curiosity amongst customers. As a result it will help company in
attracting a large number of customers towards their organisation.
Launch: This is a period in which company throw a huge party in their grand opening
where they invite eminent personality along with media representatives. This helps company in
making their event grand and popular amongst people. In context with Eatable Planet for their
benefit they telecast the entire coverage in televisions and other platforms of media platform.
Therefore, process help companies in feel connected with customers in a better manner. Thus,
different tools that company can use for promotional activities are explained below:
Social media platform: According to the current market scenario, most of the people are
active in social media and whatever happens in their life they share in this platform. Therefore, it
is considered as one of the effective base for promotional activities. It includes Facebook,
Instagram, Twitter etc., Eatable Planet is using all these sources according to their requirements.
As a result it is assit9ing companies in attracting a large number of customers and mostly
youngsters (Koirala and et. al., 2016).
Mobile billboards: In this technological world where people have no time for reading
newspapers and other things. As to get information what is happening in an around the world
they easily access mobile applications for the same. So, it is used as an effective promotional tool
and it grab attention of maximum number of people in a unique and innovative ways. For
example: companies are developing their own application which through which customers can
easily access what they want. Therefore, Eatable Planet is using catchy tag lines, logos, stickers
etc., so as to make themselves unique from others.
Personal promotions: This is done by distributing catalogues, brochures, pamphlets etc.,
and for this, company hires sales person who can shell out these to various people in different
locations. Therefore, this activity is processed by face to face interactions with consumers as this
leads to maintaining a better relationship between company and consumers.
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TASK 4
P7 Monthly cash budget
Cash budget is an important factor that every company should consider so as to make
their business popular as compared to other rival organisation who are working on the same
field. Cash budget helps them in gathering information about their past revenues they have
earned. Along with this it provides with the detail of amount they have spend in particular time
period. Thus, it can be said that cash budget gives knowledge about inflow and out flow that is
done over a period of time (Liao and et. al., 2016). Therefore, it is essential that company have a
seedeater department who can manage entire process effectively on a regular basis. In terms of
Eatable Planet they have created a cash budget before establishing their business and it is giving
details of around 12-18 months after its launching.
Cash budget of Dream Delicious restaurant before launch
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Cash Budget
Pre-launch
Months January February March
Receipts
Opening balance of cash 16800 13420 13450
Cash realised from debtors 22000 30000 25000
Total receipts 38800 43420 38450
Payments
Wages 3200 2500 4000
Creditors 15700 19000 17700
Fixed assets 4500 6000
Manufacturing expenses 1230 1570 1950
Selling expenses 750 900 480
Payment of dividends 10000
Total Payments 25380 24570 34130
Closing Balance 13420 13450 4320
Post Launch
Jan-June
Months January February March April May June
Receipts
Opening balance of
cash 20170 12420 4450 11350 13550 6950
Cash realised from
debtors 17400 20000 30000 25000 25000 30000
Total receipts 37570 32420 34450 36350 38550 36950
Payments
Wages 4200 4350 3000 2500 6000 4200
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Creditors 12500 17500 17700 18000 20000 12800
Fixed assets 6000 3200 2500 450
Manufacturing
expenses 1550 1970 1850 1750 2100 2200
Selling expenses 900 950 780 550 1000 890
Total Payments 25150 27970 23100 22800 31600 28790
Closing Balance 12420 4450 11350 13550 6950 16410
July-Dec
Months July August
Septembe
r October
Novemb
er
Decembe
r
Receipts
Opening balance of
cash 16410 20330 18600 13250 15900 16800
Cash realised from
debtors 25000 21220 23400 25000 30000 29000
Total receipts 41410 41550 42000 38250 45900 45800
Payments
Wages 5000 4500 3200 6000 6000 2200
Creditors 13500 15700 18200 14300 17800 20000
Fixed assets 5000 2500
Manufacturing
expenses 1670 2000 1850 1550 2200 1850
Selling expenses 910 750 500 480 600 550
Total Payments 21080 22950 28750 22330 29100 24600
Closing Balance 20330 18600 13250 15920 16800 21200
The above cash budget says about the working of start-up of this venture through the year.
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P8 Appropriate legal form for venture so that it can be evaluated why it has been chosen
There are several kinds of legal forms that are to performed by various organisation of
they want to establish their business effectively. Thus, it is important that a better organisational
structure is followed by company so that the can execute their plans in a better manner. Eatable
Planet is adopting strategies that will provide the with maximum benefits (Morris, 2015). This
provides new ventures with maximum benefits of understanding business in an effective
manner. Some of the kinds of business are explained below:
Sole proprietorship: In this, people who run their business by their own are considered
and they are known as sole owner. They holds unlimited liabilities of their business that
gradually provides them with full control over business operations. During initial years of
launching their business less amount of funds are requited and with the change in course of time
it modifies as the business grows.
Partnership firm: People with their own concern sign a treaty in which they bind
themselves in partnership so as to operate their business in a better manner. This is done between
two or more person and includes some kinds of objectives they are must be agreeable in both the
parities. Individual have less liabilities as compared to amount of capital they have. Profit and
loss are shared by both the individuals who are in partnership.
Company: It depends upon the formation of organisation whether in private an public as
it depends upon the nature of business which a particular firm is operating. For them, regulatory
bodies of various nations have imposed different kind of laws and regulation that are to be
followed by companies in order to run their business properly.
Therefore, mostly of the company are happy to work in partnership so that loss can be
shared between partners. As a result, it will reduce burden from single individual (Pan and et.
al., 2016).
CONCLUSION
From the above report it has been concluded that, for launching a new venture it is
required that a person has appropriate information about the market area as it will assist in
operating their business in a better manner. Along with this, it is essential that company have
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eligible employees who can perform for their companies in order to gain maximum benefits.
Company that is mentioned in this report have flexible structure of business operation which is
enabling company in changing according to the current market scenario.
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