New Venture Creation: Entrepreneurial Challenges and Strategies

The provided assignment is a comprehensive analysis of new venture creation, focusing on the challenges and strategies involved in starting a successful business. It delves into the importance of tangible and intangible resources, as well as the crucial role of entrepreneurs in driving innovation and growth. The document also touches upon leadership and team dynamics, highlighting their significance in new venture management. By exploring these key aspects, this assignment aims to provide students with a thorough understanding of the entrepreneurial mindset and its application in real-world business scenarios.

Launching A New
Venture

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 A new venture identifying specific target markets and undertaking competitive analysis....3
P2 Specific tangible and intangible resources.............................................................................4
TASK 2............................................................................................................................................5
P3 A credible proposal to launch a new venture.........................................................................5
P4 Skills and capabilities required to launch a new venture.......................................................6
TASK 3............................................................................................................................................7
P5 Different promotional activities and channels to support the launch...................................7
P6 Appropriate promotional activities plan for both launch and pre-launch..............................8
TASK 4............................................................................................................................................9
P7 Itemised monthly cash budget for the pre-launch phase........................................................9
P8 An appropriate legal form for the venture...........................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
Starting a new business venture among the increased market competition and rapid
change is fraught with various problems and challenges. While implementing or launching a new
business venture, an entrepreneur faces various menaces and issues related with growth, culture
and competition with larger organisation (Baron and Tang, 2011). The purpose of this report is to
investigate the resource range needed for launching a new enterprise, analysing the capabilities
and skills which is acquired to be developed. The researcher has developed the plan of forming a
new restaurants and coffee stop from a high business plan with better quality. In order to
develop, it will imply and justify numerous means of promotion along with legal budge and
form.
TASK 1
P1 A new venture identifying specific target markets and undertaking competitive analysis
Kaleidoscope coffee bar is set to provide their services to the working people and other
audiences a dream, a place to relief everyday stress of struggling life, be comfortable with
friends, read novel, spend some beautiful time etc. Understanding the increasing interest of
United Kingdom people within the organisation, enterprise has planned open a new cafe in the
Manchester streets (Bijker and et. al., 2012). This cafe offer their consumer the best brewed and
prepared coffee along with other services such as tea, pastries, bakery products etc.
Entrepreneur has started their new coffee cafe venture, named as Kaleidoscope. The
organisation will generate or operate coffee bar in 2300 square foot in the Manchester streets The
company owner has extended their hired the place on lease for 3 year with an option of
extending time. the funds which is determined is £ 3,50,684 to £3,52,684 in a new start-up
business.
Objectives: Here are one year operations objectives mentioned here:
 To be nominated for “best emerging Coffee Bar in UK” by the local state.
 Turn in benefits from the initial month activities. Manage approximate 65% of growth as margin.
Mission: The mission of organisation is to make best efforts in order to build the unique
positioning among clients along with creating the cafe a relaxing and comfortable place to
socialise and enjoy the best brewed coffee.
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Target market: For the purpose of reaching the focused group of consumer, this is
required to set a target market within the company that can help in reaching final outcome in
effective manner. Target market refer to the certain group or criteria of individuals that a
business venture or organisation is aiming at. There are various segments of market according
which the consumer are set. The major aims of Kaleidoscope is sophisticated teenagers adults,
family person etc. According to the income categories, Kaleidoscope has focused over the
middle class people to different other income categories. This cafe is also aiming over Medium
income and spender, healthy-ish professional and flexible to change people as this coffee cafe is
offering their own designed recipes and products to deliver new to consumer. Young students
and workers are also the demographic segment which have been targetted by Kaleidoscope set to
attain or reach more and more buyers and services user.
Competitive Analysis: The major competitor of Kaleidoscope is Starbucks which is
competing each and very small business of Coffee within the market of United Kingdom.
Starbucks is rendering a strong financial conditions which help in using a number one spot with
beverages and coffee retailer (Burns, 2017). Intangible Starbucks of strengths contains brand
virtue and great mind recall consumers which shows quality at affordable cost and excellence
through that they enjoy a dominant position in whole market. In order to compete this,
Kaleidoscope need to establish a better USP of organisation among the competitive market.
P2 Specific tangible and intangible resources
Kaleidoscope is best coffee tasting and restaurant portion in the local area of United
Kingdom. It can be met through opting ingredients of high quality along with strictly complying
the prepared guidelines. A resource refer to the source through which the benefits is being
manufactured. There are two types of resources that the company need to maintain i.e. tangible
and intangible resources. Here are mentioned some of those resources: Tangible Resources: Tangible resources can be consider as the essence which are
physically plant, equipments, raw material etc. All visible can utilise the direct monetary
resource measurement consisting the financial and material resources. In context of cafe
and restaurant, Kaleidoscope food & beverage, ambience, equipments of productions,
machinery etc. are the tangible resources which presents the major services of
organisation. This also consist of key two types of tangible resources i.e. retail stores and
manpower of Kaleidoscope. Manpower include trained chef and worker, better
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managerial skills and other formats of coffee house etc. Retail stores consist of the
expansion of company which is least now. Hence, these need to be managed to shape the
outcome of Cafe efficiently.
 Intangible Resources: A broad content range like patents, trademarks, consumer
relationship, corporate culture & image, technology, these resources in the production
process as well as enterprise operations which has a very indispensable role. An
intangible asset which are not physical in nature. Entire IP corporate consisting items like
copyrights, trademarks, patents, methodologies of business, along with recognition brand,
goodwill, serving activities, manner, attribute of worker etc. In Kaleidoscope, the
attribute of their employee toward consumer, their traits, aura, quality of services etc. are
the major elements which aid in achieving the final outcome.
Through this, enterprise can provide value to long term and short term goals and
objectives of Kaleidoscope through determining them clearly. Branding and successfully plan
implementation require to set proper design of whole layout which includes these elements of
Kaleidoscope, as a cafe, this helps in coherently setting their service and product value.
TASK 2
P3 A credible proposal to launch a new venture
A proposal or business plan can break or make the opportunities of creating new
consumer. Whether offering new services or products by new organisation or large enterprise,
proposal is quite straightforward helps in meeting the objectives and vision of the whole
enterprise in adequate or organised manner (Caselli and Negri, 2018). Thus, like other successful
enterprise, Kaleidoscope need to improve a proper plan for new venture that can aid them in
meeting outcome. Here is mentioned the business proposal plan which is mentioned as below:
Executive
summary
Kaleidoscope us a small cafe house that is offering best brewed coffee
service along with pastries and other bakery products.
Company
Description
Entrepreneur has started their new coffee cafe venture, named as
Kaleidoscope. The organisation will generate or operate coffee bar in 2300
square foot in the Manchester streets The company owner has extended
their hired the place on lease for 3 year with an option of extending time.
Market Analysis In order to expand their business, company is working very effectively and
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working over the proper analysis of market (Tangible Vs. Intangible
Resources, 2017). For the purpose of this and considering various elements
of market, enterprise can conduct effective SWOT and PESTEL evaluation
for understanding factors needed to be undertaken.
Marketing strategy The organisation is aiming over the enterprise expansion, but before that,
they will successfully form their business in the streets or market of
Manchester. For this purpose, they are using social media promotion and
other marketing strategies for expansion of business.
Financial
Projection
The financial deals are essential elements. For a new venture like
Kaleidoscope, the funds which is determined is £3,50,684 to £3,52,684.
Company will deal and manage entire deals with the certain amount.
HR Planning Human resource management need to plan their guidelines and other
practices such as setting policies and terms, recruiting employees etc. in
regard of achieving business objectives and operations management
efficiently.
Risk Assessment It is essential to manage and measure the probable risk in order to meet
proper establishment and managing business proposal. This risk can
consist of over-costing, resource limitation and other factors etc.
Benchmarks This is fundamental to compare business performance with benchmark in
industry. It support the consumer with an significance or indication of
whether consumer are performing in the standard of industry. It is the great
value deal for small business like Kaleidoscope as well as understand
where they are being the comparison in the industry.
P4 Skills and capabilities required to launch a new venture
In order to run a business in more significant and better manner, an entrepreneur should
have some certain capabilities and skills which can help in meeting success in their new venture
(Fernhaber and Li, 2013). Here are mentioned some regardless traits and qualities within the
organisation which can help in achieving objectives and targets. Kaleidoscope entrepreneur need
to acquire the under-mentioned place:
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 Project Management: Business venture comes in vital sizes who has the abilityioes to
maintain the whole project of Kaleidoscope in better manager along with managing the
operations and activities of business. Leadership Skills: Leadership skill help in stimulating and motivating the members of
staff in effective way. The success of organisation depend on the productivity and morals
of workplace. A good leadership skills should have in the entrepreneur for leading
business in right direction taking the risk for success. Presenting: Presentation is major aspects whether it is of product or service of proposal
of business or organisation itself (4 Essential Pre-Launch Steps for Startups, 2016).
Through this, entrepreneur of Kaleidoscope can present their views and make a unique
positioning in the competitive market.
 Optimistic and Visionary: Entrepreneur should have the ability to be optimistic in most
stressful situation as well as being visionary to see more far than an usual individual. In
order to meet the development and success within the industry, Kaleidoscope need to
develop these skills among them which can lead to success and achievement.
There are various ways through which the unlined skills and abilities can be acquired by
the entrepreneur of Kaleidoscope. Through selecting a different path and creative idea for
business, launching a new venture, delaying gratification and stick to the upcoming issues and
challenges, finance management etc. which can help in acquiring these above mentioned skills
and traits within them leading to success.
TASK 3
P5 Different promotional activities and channels to support the launch
Promotion is one of paramount elements needed to be undertaken while developing a
new business venture. The success of business relies not only on service and product quality but
also their effective promotional and marketing activities. Despite like large organisation, small
business or new ventures are unable to spend a huge amount over marketing and promotion, such
enterprises look for inexpensive and efficient promotional activities and channels. There are
various techniques and means which can help one in launching their business within the
organisation (Hmieleski, Cole and Baron, 2012). Kaleidoscope can undertaken these promotional
practices and mediums which is mentioned as below:
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 Personal Promotions: through various activities, an individual can advertise their
business by direct and indirect means. In order to use communication in adequate manner
in the new venture promotion, promote the business plans of Kaleidoscope whenever one
interact at social place, group meetings, discussion, email, social media conversation or
activities etc. An creative and appealing tag-line along with updates would be more
influencing. Mobile Billboard: Mobile promotion of business is effective and modern advertising
methods or can be consider as channels which consist of stickers, information or logo of
restaurant Kaleidoscope. This does not consumes money and one can use it on their own
vehicles. Promote Business through Social Media: YouTube, Twitter, Instagram, Facebook etc.
are the great and most effective ways to reach wide range of consumer along with
promoting business as broadcast (Simon and Shrader, 2012). This is not limited and has
the outage power which can attract the consumer to new restaurant.
 Blogging and New Articles: As people are preferring ads through using blogging or
articles nowadays, this can not be ignored when it comes to promoting a new business
venture. A well-written blog or article can support in building consumer and advertising
the project in best manner. Kaleidoscope can also make use of proper planned tools for
gaining public attraction toward their new business.
Kaleidoscope is working over the effective establishment of business in the streets of
United Kingdom for which they are working on the promotion plan. For the business of cafe and
restaurant, social media ads, fashion & food articles, mobile billboards linked along with
appealing tag-lines and information would be best and inexpensive methods that can help in
meeting the targetted consumer amount (Kariv, 2013). Also company can inform for sales
through the help of personal interaction with people.
P6 Appropriate promotional activities plan for both launch and pre-launch
Through managing a proper plan for new business, targetted consumer can be attained by
the respected organisation. But after determining marketing plan and promotional activities
within the enterprise, it is paramount for business to prepare proper plan for pre-launch and
launch promotional activities which can help in meeting the targetted objectives.
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 Pre-Launch Promotion: Company can build a pre-launching page or website before
launching the new venture of business (Robb and Watson, 2012). There are various
techniques and channels of promotion mix which can be used for the pre-launch
promotion of Kaleidoscope. As the organisation is starting a new venture, company need
to aware and inform people about the new services and products. Kaleidoscope can opt
the technique of Mobile Billboards, email strategies and advertising, blogging and article
writing for the purpose of rendering information. This is essential for them to create a
logo and name along with message. The company has framed “Eat, Drink and Fun” the
logo for pre-launch purpose. This is required for the enterprise to be more appealing
when it comes to creating tag-line. This is one of the essential process which help in
aware individual or target consumer about new venture.
 Launch Promotion: In order to launch, it is required to keep recalling the individuals
about the products or new venture. This can be achieved through updating social media
post and activities in effective manner. Mobile Billboards are still useful for this purpose
as well (Klotz and et. al., 2014). Also company can make use of advertising, blogging,
YouTube videos and many other media tools for the promotion purpose of Kaleidoscope.
Also in regard of launching promotion, brochure, poster, leaflet and other advertisements
activities can assist the cafe in promoting themselves. Enterprise can also organise events,
trade shows and other activities in regard of achieving business objectives and grabbing
consumer or potential buyer's attention effectively.
These are paramount procedure that can aid in recalling, branding and reconfiguring the
position of new venture among consumer. It can help in improving and emerging within the
competitive industry, though it is a helical process.
TASK 4
P7 Itemised monthly cash budget for the pre-launch phase
This is required to understand the budget of whole plan in order to accomplish entire
determined activities of business within fixed financial amount (Kuratko and Hornsby, 2017).
Here are mentioned the planned budget which is discussed as below:
Year 2013 Jan Feb Mar April
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Food Sales 4215 4256 4352 4356
Beverage Sales 1975 1245 1245 1345
GROSS SALES 6190 5501 5597 5701
Cost of Sales
Food 1452 1404 1436 1437
Beverage 651 311 311 336
TOTAL COST OF SALES 2103 1715 1747 1773
GROSS PROFIT 4087 3786 3850 3928
General and Administrative
Employee Salaries 1547 1375 1399 1425
Management Salaries 340 340 340 340
Employer Taxes/Benefits (15% Wages) 226 205 208 211
Workers Compensation (6% Wages) 113 102 104 105
Advertising 80 80 80 80
Bookkeeping 15 15 15 15
Credit Card Charges (1%) 61 55 56 57
Insurance 25 25 25 25
Legal and Professional Fees 10 10 10 10
Misc. Other 25 25 25 25
Office Supplies 17 17 17 17
Rent 320 320 320 320
Repair and Maintenance 30 30 30 30
Small Equipment 20 20 20 20
Telephone [phone]
Garbage 20 20 20 20
Utilities 120 120 120 120
Total Gen. and Admin. (Fixed) 2984 2774 2804 2835
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NET PROFIT OR LOSS 1103 1012 1046 1093
SBA Loan 358 358 358 358
Cash Flow After Financing 745 654 688 735
Draw 400 400 400 400
Net Cash Flow 345 254 288 335
June July Aug Sept Oct Nov Dec
4432 4465 4521 4532 4625 4632 4712
1557 1548 1642 1625 1745 1724 1784
5989 6013 6163 6157 6370 6356 6496
1462 1473 1491 1495 1526 1528 1555
389 387 410 406 436 431 446
1851 1860 1902 1902 1962 1959 2001
4138 3720 3803 3803 3924 3918 4002
- - - - - - -
1497 1503 1540 1539 1592 1589 1624
340 340 340 340 340 340 340
220 221 225 225 231 231 235
110 110 112 112 116 115 117
80 80 80 80 80 80 80
15 15 15 15 15 15 15
59 60 61 61 63 63 65
25 25 25 25 25 25 25
10 10 10 10 10 10 10
25 25 25 25 25 25 25
17 17 17 17 17 17 17
320 320 320 320 320 320 320
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30 30 30 30 30 30 30
20 20 20 20 20 20 20
15 15 15 15 15 15 15
20 20 20 20 20 20 20
120 120 120 120 120 120 120
2923 2931 2975 2974 3039 3035 3078
1215 789 828 829 885 883 924
358 358 358 358 358 358 358
857 431 470 471 527 525 566
400 400 400 400 400 400 400
457 31 70 71 127 125 166
This can be state from the above mentioned activities, that Kaleidoscope is investing
4215Euros in Jan. month which is getting approximate 3078Euros by the end of the year.
P8 An appropriate legal form for the venture
When the enterprise determine is formed, this is essential to select an appropriate
structure for the business. Government of United Kingdom has made this mandatory to fill the
legal entity form which can help in sponsoring the programs of UK. There are various categories
in which the legal structure of an enterprise can be formed. Kaleidoscope is a cafe venture
formed in the Manchester (Morris, 2015). Here are mentioned some of the categorises for the
multiple variations which are mentioned as below:
Types of Legal Forms
Sole Proprietorship: This refer to the individual owner for the enterprise or small
business who is responsible for the business activities and operation in effective manner. This is
inexpensive and simple procedure which operate and create the reports of owner. The major
drawback of this legal form is the owner individually is liable for the debts of business.
Partnership Firms: When two and more than two people own the business and handle
the operation along with financial benefits and losses. The major drawbacks of this form is
partner has to witness whole loss and debts. By themselves.
Public Sector: This is owned and functioned by public owner as the major shares of
enterprise hold by public (Read and et. al., 2016). It is of two kinds in which first is public
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limited company: major share operate by government of public and private limited company:
private owner open their enterprise share for public to gain financial assistance.
Kaleidoscope is adopting the solo legal structure of organisation for functioning by the
entrepreneur only. They might plan to go in partnership as they find the sponsor. The referred
entrepreneurial business venture is following the private venture along with adopting the sole
proprietorship form of business as entrepreneur is investing their business operations and
different activities in more significant manner. This is the best and more suitable method as
through this, organisation can attain their objectives along with manage their finance and other
business operational activities by themselves.
CONCLUSION
This above discussion summarise that starting a new business venture among the
increased market competition and rapid change is fraught with various problems and challenges.
Understanding the increasing interest of United Kingdom people within the organisation. There
are two types of resources that the company need to maintain i.e. tangible and intangible
resources. In order to run a business in more significant and better manner, an entrepreneur
should have some certain capabilities and skills which can help in meeting success in their new
venture. Promotion is one of paramount elements needed to be undertaken while developing a
new business venture.
13

REFERENCES
Books and journals
Baron, R. A. and Tang, J., 2011. The role of entrepreneurs in firm-level innovation: Joint effects
of positive affect, creativity, and environmental dynamism. Journal of Business
Venturing. 26(1). pp.49-60.
Bijker, W. E. and et. al., 2012. The social construction of technological systems: New directions
in the sociology and history of technology. MIT press.
Burns, P., 2017. New venture creation: a framework for entrepreneurial start-ups. Palgrave.
Caselli, S. and Negri, G., 2018. Private equity and venture capital in Europe: markets,
techniques, and deals. Academic Press.
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.
Hmieleski, K. M., Cole, M. S. and Baron, R.A., 2012. Shared authentic leadership and new
venture performance. Journal of Management. 38(5). pp.1476-1499.
Kariv, D., 2013. Female entrepreneurship and the new venture creation: An international
overview. Routledge.
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. Taylor & Francis.
Morris, M. H., 2015. Entrepreneurship as experience. John Wiley & Sons, Ltd.
Read, S. and et. al., 2016. Effectual entrepreneurship. Taylor & Francis.
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.
Simon, M. and Shrader, R. C., 2012. Entrepreneurial actions and optimistic overconfidence: The
role of motivated reasoning in new product introductions. Journal of Business
Venturing. 27(3). pp.291-309.
Online
4 Essential Pre-Launch Steps for Startups. 2016. [Online]. Available
through:<https://www.entrepreneur.com/article/278914>.
Tangible Vs. Intangible Resources. 2017. [Online]. Available
through:<https://bizfluent.com/info-8365100-tangible-vs-intangible-resources.html>.