Launching a New Venture

This project report explores the business plan for Tasty Foods, a new venture offering a wide range of food products in the UK market. It covers target market analysis, competitive analysis, required resources, skills, and promotional activities. The report also includes a cash budget and suggests an appropriate legal form for the venture.

Launching a New Venture
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Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Investigate and explain a new venture identifying specific target markets and undertaking
competitive analysis.....................................................................................................................3
P2 Determine specific tangible and intangible resources that would be required for the launch
of a new venture...........................................................................................................................5
P3 Produce a credible proposal to launch a new venture............................................................5
TASK 2............................................................................................................................................7
P4 Assess the skills and capabilities required to launch a new venture and how they are
acquired or developed..................................................................................................................7
TASK 3............................................................................................................................................8
P5 Explain different activities and promotional channels that will support the launch and
justify their choice.......................................................................................................................8
P6 Develop an appropriate promotional activity plan for both launch and pre-launch...............9
TASK 4..........................................................................................................................................10
P7 Produce an itemised monthly cash budget for the pre-launch phase of the venture and the
first 12–18 months preceding launch.........................................................................................10
P8 Suggest an appropriate legal form for the venture stating why it has been chosen..............12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Business ventures can be defined as an establishment made by an entrepreneur to perform
business operations of manufacturing, producing, procuring and offering a product or a service
with an objective of earning profit (Eisenmann, 2013). In this project report, an attempt has been
made to determine the business plan for Tasty Foods, a business venture for offering a wide
range of food products from different countries worldwide in the markets of United Kingdom.
The report deals with evaluation of target market and competitive analysis for the venture and
identifies the various resources which are required for launching the venture. The report also
aims to prepare a business proposal for investors and also identifies the skills required for
launching a business venture. In this project report, an attempt has been made to determine a
marketing and promotional strategy and plan for Tasty Foods and prepare a cash budget for pre-
launch and post-launch period of the business adventure. At last, the report aims to evaluate the
appropriate legal form or business structure with justification for the proposed business venture.
TASK 1
P1 Investigate and explain a new venture identifying specific target markets and undertaking
competitive analysis.
Tasty Food is a new venture which is proposed to be established in the markets of UK with
an objective of providing a wide range of food items and products from different parts of the
country to the people in UK. There has been a recent trend which has encouraged people to
consume famous and popular food products from different parts of the world. As per the
interpretation of the research and survey conducted by the proposers of this business venture for
determining customer demands and needs when it comes to food items, there exists a gap
between the expectations and changing desires of the consumer and what the market is currently
offering. The mission of the venture is “to provide a rich and diverse experience to the
consumers by bringing the best quality food products from different parts of the world”.
Target Market:
Target Market refers to the potential customers or consumers of a business product or
service. It is important for every business venture to determine and identify the target market for
its products or services which helps the business to devise the correct tools and strategy for
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marketing and attracting customers (Lynn, 2013). The target market for Tasty Food can be
understood with the help of two main dimensions of customer segmentation:
Geography: Geographic segmentation is based on the place and location of the established
business venture. The venture is proposed to be established in London, United Kingdom which is
one of the most popular tourist destination in the world. It makes all the tourists from different
countries the target or potential customers of the venture and also presents a huge opportunity for
growth and high revenue.
Demographics: It refers to features or characteristics of the population such as age, income,
gender, cultural background etcetera. People from all income groups are the potential customers
of the venture and usually teenagers and youth who are more likely to spend a lot of money and
visit such restaurants that offers food products from different nations and countries forms the
target market of the business venture.
Competitive Analysis:
London is one of the most developed market for food products and restaurants in the world
and there exists an immense competition in the industry which needs to be analysed before
establishing the venture (Fleisher and Bensoussan, 2015). There is a high number of business
firms and companies operating in the industry. Bargaining power of customers is also high due to
a number of alternatives and low cost of substitution. It puts the business in no position to obtain
charge high price from customers to increase its profitability. Companies such as The Ledbury
and Liman Restaurant have an established base of customers and enjoy a high revenue which can
be a threat for the proposed business venture. For minimisation of risk and ensuring the survival
and growth of the business, it is important for the business to have a contingency plan. To
counter the competition from the existing players in the industry, the venture will have to focus
on its strengths and minimise the weakness which could potentially hinder the growth of the
business. Tasty Foods has the objective of providing a wide range of food items from different
countries and nations all over the world which is the Unique Selling Proposition (USP) for the
business and is one of the biggest strength for the company. Mitigation of weakness such as low
budget during the initial period and intense competition can be effectively countered and dealt
with focusing on the strength and uniqueness of the venture and trying to create a market for the
same. Use of sales promotional tools and offers is also another strategy which will be adopted by
the business for minimisation of risk of competition in the industry.
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P2 Determine specific tangible and intangible resources that would be required for the launch of
a new venture.
Resources are primary for every business organisation to function and continue the smooth
and profitable execution of the operational activities (Greco, Cricelli and Grimaldi, 2013).
Adequate amount of various tangible and intangible resources are required to establish a new
venture and carry out its activities efficiently. Here is a brief description of the resources which
are required for launching the new business venture:
Tangible Resources:
Tangible resources are those resources which are physically present in the business
environment and can be seen. It includes financial resources, land, materials, human resource,
building etcetera. For launching the new business venture, adequate funds and financial
resources is the major requirement which helps in obtaining every other resource. Land and
building is imperative for the venture to be established. The performance of the business also
depends a fair extent on its location. Employees and a team of people for providing service to the
customers and executing the business operations is the most important resource for the business
venture. Human resource for any organisation is the most important resource which determines
the optimum utilisation of every other resource which the business has (Stone and Stone, 2013).
It is extremely important for the company to hire a set of individuals with matching skills and
competencies which could help it in providing a great quality of service to the customers.
Intangible Resources:
Intangible resources can be defined as the assets of a business organisation which are not
present physically but contribute in the effectiveness and efficiency of the operational and
financial performance of the business organisation. For the proposed business venture, intangible
assets which are required includes patents, license and registration, a good market image and
goodwill, healthy customer relations etcetera. Trademarks and patents help the company to have
a copyright on their idea and ensure that no other business venture can duplicate the same idea. It
is imperative for the business to create a healthy customer relationship which will help the
venture in attracting more customers and improving the rate of customer retention in the long
run.
P3 Produce a credible proposal to launch a new venture.
A proposal for the business venture mentioned above is as follows:
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Executive Summary
Market Analysis
Advertising & Sales
Schedule & Benchmarks
Cost & Pricing
Tasty Foods is a business venture which is proposed to be established in
the markets of UK with an objective of providing a wide range of food
items from different countries all over the world to the people. The
business venture has a mission “to provide a rich and diverse experience
to the consumers by bringing the best quality food products from
different parts of the world”.
London is one of the most popular tourist destination in the world and
there has been a trend of consuming food products from different
countries and nations which presents a huge opportunity for the business
idea proposed in the venture. There exists an immense competition in the
industry which can be effectively countered with the help of using sales
and promotional tools.
Extensive advertising and marketing will be required along the lines of
Unique Selling Proposition of the company which is offering a wide
range of food products from different countries under one roof.
Additional use of promotional tools will help the business in increasing
the sales and customer base for the venture.
Benchmark for the proposed venture can be translated into acquiring a
8% share of the food industry in the markets of United Kingdom with a
customer retention rate of 80% during the initial five years of the launch
of the venture. Annual growth rate anticipated for the initial 5 years of the
project is 10%.
The major components for the cost and initial investment includes
expenditure on acquiring tangible and intangible resources such as
premises of the venture, employees, various tools and machineries,
budget for marketing and use of promotional tools, fixed expenses for the
initial launch period etcetera. An initial investment of $10,000 is required
for launching the business venture.
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TASK 2
P4 Assess the skills and capabilities required to launch a new venture and how they are acquired
or developed.
Launching a new business venture requires the entrepreneur to have many skills and
capabilities which assists him in managing future operations of the business. Some of the skills
and capabilities required are being discusses as follows:
Management Skills: An entrepreneur must have knowledge about the principles of
management and how the process of managing and influencing behaviours of the employees
works. Launching a new business venture involves a management of the resources of the
organisation, operations of the organisation, employees, establishing coordination between
various departments and sub-departments and all such activities require a great deal of
managerial skills which helps the entrepreneur to run a new venture (Mujtaba, 2013).
Management skills can be acquired with the help of understanding the principles of management
and implementing them to test which principles work in the favour of the business and can be
used for future references. It is an art which can only be required through application and
assessment.
Solution-oriented: Being solution-oriented and having the ability to solve various problems
which are likely to arise during the course of establishing a new venture is utmost important skill
and capability which is required for opening a new business venture (Kaur and Bains, 2013).
Establishing a new business venture comes with a wide range of different problems and obstacles
and the entrepreneur needs to have the mindset for focusing on determining the solutions for
those problems instead of deliberating on the problem itself.
Communication & Networking: Communication skill refers to the ability to express
yourself in an effective manner. It is important for entrepreneurs to have communication and
networking skills for launching a new business venture (Bonnstetter, 2012). Networking is an
essential skill which helps in opening up new business opportunities and finding partnership
deals or potential investors. Effective networking helps a great deal in expanding the PR
horizons and sending the right message and information about the business venture on all fronts.
Organisational Skills: Launching a new business venture involves organisation of a lot of
activities such as acquiring the resources, arranging meetings and appointments with clients and
potential investors, drafting the legal documents and contracts etcetera which requires a great
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deal of organisational skills (Bujor and Avasilcai, 2016). Organisational skills can be developed
by referring to various online courses and effectively planning out each activity well in advance
to avoid any last-minute chaos and confusion.
TASK 3
P5 Explain different activities and promotional channels that will support the launch and justify
their choice.
Before launching a new venture into a new market, an extensive strategy needs to be
formulated by the entrepreneur for using various activities and channels to facilitate a reach and
awareness about the business venture and the products and services which are being offered.
Rapid development of technology and the influence of social media on the buying decisions of
the consumer has opened up a range of different channels and platforms which can be used by a
company to advertise and promote its business venture (Zeiser, 2015). The channels and
different activities which will be used for marketing the launch of business venture are as
follows:
Banners & Posters: Banners and posters can be used for spreading out the information
about the business venture and the products and services which are being offered to the
customers. With the help of delivering the right type of information on the banners and posters of
Tasty Foods, the managers will be able to promote the business venture at a large scale with a
low cost per customer (Khan and Arbi, 2020). These banners and posters will be placed in and
around the busy streets of London with an objective of reaching out to maximum people.
Social Media Marketing: Any marketing or promotional campaign is incomplete without
effective use of social media platforms and channels. Potential customers of the business venture
can be easily targeted with the help of using various social media channels such as Instagram,
Facebook, Twitter etcetera which helps in creating brand awareness (Tuten and Solomon, 2017).
These channels will be used to spread information about the various cuisines and food products
which are being offered to attract the customers.
Blogs & Articles: There are various blogs and articles on many websites and media houses
which covers trending topics such as ten best places to eat and best food dishes a person must try
etcetera. The audience of such articles and blogs fits perfectly into the target market for the
proposed business venture and hence using these articles and blogs to cover the information
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about this new business venture will help the managers to attract customers and promote the
business at a large scale.
P6 Develop an appropriate promotional activity plan for both launch and pre-launch.
A strategy is required to increase the effectiveness of the promotional tools being used by
the managers for the launch and the pre-launch period of the business venture. Entrepreneur of
Tasty Foods has prepared the following promotional activity plan for both the phases of launch
and pre-launch of his business venture:
Pre-launch: Pre-launch period of a business venture involves making all the necessary
arrangements for providing the launching of business venture a suitable and comfortable
atmosphere. In the pre-launch period of the business venture, advertising and promotional
strategy mainly focuses on creating a brand awareness and spreading out information about the
products and services which are proposed to be offered. For the pre-launch period, the
entrepreneur of Tasty Foods has decided to design the company website which provides every
information about the company and its food products with complete brochures and catalogues
which can be referred by the customer. It involves using attractive pictures and content and
creating a digital platform for interaction with the target customers of the business. During the
pre-launch period, it has been decided to use various social media platform in moderation with
the company website to target the potential customers and their feed with information about this
new business venture (Ashley and Tuten, 2015). Banners and posters will be placed in and
around the streets which can help the company to promote the business at a large scale. Pre-
launch period is primarily concerned with providing Tasty Foods an atmosphere where it can
grow and successfully execute its business operations.
Launch: For promotion of the business venture during the launch period, the entrepreneurs
have devised a strategy for an opening ceremony where various media houses and editors of
journals can cover the story of the business and the same can be used for print media and
brochures. Print media is an important platform for promotion during the launch (Moorman and
Day, 2016). Social media platforms will be used to spread out word about the initial discounts
and offers which are being run by the business so that more and more people get attracted and
become the customers. Articles and Blogs will be used to spread information and create
awareness about the launch of a new business venture which serves a wide range of food
products and dishes from different countries all over the world. Promotions during launch period
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is more about creating opportunities for business growth and a large customer base with help of
initial sales promotional tools.
TASK 4
P7 Produce an itemised monthly cash budget for the pre-launch phase of the venture and the first
12–18 months preceding launch.
Cash budget is prepared to determine the inflows and outflows for the period of launch and
pre-launch in establishing the business venture. It helps to determine the requirements of funds
and the sources from where the funds would be acquired. Preparation of cash budget also helps
in mapping out the various activities of the business venture and helps in avoiding any shortage
or lack of funds which could hinder the operations of the business. Financial resources and funds
can be considered as the backbone of operations of any business organisation. Hence, it is
necessary for an entrepreneur to produce a cash budget for launch and pre-launch period which
helps in ensuring continuation of smooth business operations and profitability. The pre-launch
and post-launch cash budget for Tasty Foods is as follows:
Pre-launch Cash Budget ($):
PARTICULARS JANUARY FEBRUARY MARCH APRIL MAY JUNE
Cash Inflows:
Investment: 10,000
Credit Sales: 1,200 1,500 1,000 2,000 2,800 3,500
Total Inflow: 11,200 1,500 1,600 2,000 2,800 3,500
Cash Outflows:
Fixed Assets 5,000 800 1100 1000 1700 2500
Direct Materials 3,000 200 300 400 600 600
Total Outflow: 8,000 1,000 1400 1400 2300 3100
Net cash flow: 3,200 500 200
Opening
Balance:
0 3,200 3700 3900 4500 5000
Closing
Balance:
3,200 3700 3900 4500 5000 5400
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PARTICULARS JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER
Cash Inflows:
Investment:
Credit Sales: 4,000 5,500 6,000 5,000 6,800 7,500
Total Inflow: 4000 5,500 6,000 5,000 6,800 7,500
Cash Outflows:
Fixed Assets 2,000 3800 4100 2000 4700 4500
Direct Materials 1,600 1200 1300 2400 1600 2600
Total Outflow: 3600 5,000 5400 4400 6300 7100
Net cash flow: 400 500 600 600 500 400
Opening
Balance:
5400 5800 6300 6900 7500 8000
Closing
Balance:
5800 6300 6900 7500 8000 8400
Post-launch Cash Budget ($):
PARTICULARS JANUARY FEBRUARY MARCH APRIL MAY JUNE
Cash Inflows:
Cash Sales: 4000 3000 4000 5000 3000 3300
Credit Sales: 2,200 3,500 1,000 2,000 2,800 3,500
Total Inflow: 6200 6,500 5,000 7,000 5,800 6,800
Cash Outflows:
Fixed Assets 1,000 1300 3100 4000 1700 2500
Direct Materials 4500 4000 3300 2300 2600 3300
Total Outflow: 5,500 5,300 6400 6300 4300 5800
Net cash flow: 700 1200 -1400 700 1,500 1,000
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Opening
Balance:
8,400 9,100 10,300 8,900 9,600 10,100
Closing
Balance:
9,100 10,300 8,900 9,600 10,100 11,100
PARTICULARS JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER
Cash Inflows:
Cash Sales: 3,000 4,500 3,300 3,800 4,200 4,700
Credit Sales: 4,000 3,500 3,000 3,000 4,800 2,500
Total Inflow: 7,000 8,000 6,300 6,800 9,000 7,200
Cash Outflows:
Fixed Assets 2,400 4,800 4,100 2,000 4,100 2,500
Direct Materials 1,600 1,200 1,300 3,400 3,600 3,600
Total Outflow: 4000 6,000 5400 5400 7700 6100
Net cash flow: 3,000 2,000 900 1,400 1,300 1,100
Opening
Balance:
11,100 14,100 16,100 17,000 18,400 19,700
Closing
Balance:
14,100 16,100 17,000 18,400 19,700 20,800
P8 Suggest an appropriate legal form for the venture stating why it has been chosen.
For the purpose of launching the business venture, the partnership form is considered to be
the most appropriate form of legal business structure. Partnership can be defined as the process
where two or more than two people come together to perform or execute some business activity
with an objective of sharing profits and losses which arises from the operations of the business.
The reason why partnership form is considered to be the most suitable form for the business
venture of offering food products from different countries all over the world is because
partnership doesn’t require many legal formalities and also holds a contractual capacity.
Partnership is a simple form of organisational structure which is very inexpensive to operate.
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Owners of a partnership firm are liable for the business losses and have unlimited liability which
gives more borrowing power to the partnership firms. It is easier for partnership firms to obtain
capital from different sources of finance. The business venture has a huge growth prospects
which makes it desirable for the managers to have enough provisions for additional capital.
Introducing personal capital in partnership firms is also an easy step which requires no legal
formalities (Crawford, 2016). In the time of crisis or when additional funds are required at short
notice, partners have the option to utilise their personal funds as well for running the business
smoothly. Partnership firm gives the business venture the option to change the legal structure in
case of change in business situations in future. Partnership firms also have limited external
regulance. All these factors makes partnership firm the most desirable form of legal structure for
the business venture.
CONCLUSION
It can be concluded from the above project report that while establishing or launching a new
business venture, it is important for the entrepreneurs to focus on their target market and
undertake a competitive analysis which helps in determining the strengths and weakness of the
proposed business idea. It can also be concluded that various tangible and intangible resources
are required to launch a new business venture and a proposal for investors is required to be made
by the entrepreneurs. Various type of skills and competencies such as management skills or
networking skills are required for launching a new business venture and it is important for the
entrepreneur to prepare a promotional and marketing plan which determines the activities and
platforms to be used for promoting the business venture in pre-launch and launch phases. It can
also be concluded that preparing a cash budget helps in avoiding shortages of fund and various
legal forms and structures are beneficial according to the nature and the type of business venture.
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REFERENCES
Books and Journals
Ashley, C. and Tuten, T., 2015. Creative strategies in social media marketing: An exploratory
study of branded social content and consumer engagement. Psychology &
Marketing. 32(1). pp.15-27.
Bonnstetter, B.J., 2012. New research: The skills that make an entrepreneur. Harvard Business
Review. 90(12). p.7.
Bujor, A. and Avasilcai, S., 2016. The creative entrepreneur: A framework of analysis. Procedia-
Social and Behavioral Sciences. 221. pp.21-28.
Crawford, T., 2016. Business and legal forms for illustrators. Simon and Schuster.
Eisenmann, T.R., 2013. Entrepreneurship: A working definition. Harvard Business Review, 10.
Fleisher, C.S. and Bensoussan, B.E., 2015. Business and competitive analysis: effective
application of new and classic methods. FT Press.
Greco, M., Cricelli, L. and Grimaldi, M., 2013. A strategic management framework of tangible
and intangible assets. European Management Journal. 31(1). pp.55-66.
Kaur, H. and Bains, A., 2013. Understanding the concept of entrepreneur competency. Journal of
Business Management & Social Sciences Research. 2(11). pp.31-33.
Khan, A.A. and Arbi, K., 2020. Impacts of Print Advertisement on Indian Society. Studies in
Indian Place Names. 40(64). pp.207-214.
Lynn Ph D, M., 2013. The target market misapprehension: Lessons from restaurant duplication
of purchase data.
Moorman, C. and Day, G.S., 2016. Organizing for marketing excellence. Journal of
Marketing. 80(6). pp.6-35.
Mujtaba, B.G., 2013. Managerial skills and practices for global leadership. ILEAD Academy.
Stone, R.J. and Stone, R.J., 2013. Managing human resources. Wiley.
Tuten, T.L. and Solomon, M.R., 2017. Social media marketing. Sage.
Zeiser, A., 2015. Transmedia Marketing: From film and TV to games and digital media. CRC
Press.
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