Launching New Ventures: A Guide

This assignment delves into the intricacies of launching new ventures. It examines various resources, including books like 'The Business Plan Workbook' and academic articles on new venture creation frameworks, funding options, and entrepreneurial intention. The focus is on understanding the crucial factors involved in successfully establishing a new business venture, encompassing planning, financing, and legal considerations.

LAUNCHING A NEW
VENTURE

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Investigation of new venture for identifying specific target market......................................1
P2 Specific tangible and intangible resources.............................................................................2
TASK 2............................................................................................................................................3
P3 Credible proposal to launch a new venture............................................................................3
P4 Skills and capabilities that are essential for launching a new venture and development at
the same time...............................................................................................................................5
TASK 3............................................................................................................................................6
P5 Different promotional activities and channels support launch of business............................6
P6 Promotional activities plan for both pre - launch and launch................................................7
TASK 4............................................................................................................................................8
P7 Monthly cash budget..............................................................................................................8
P8 Suitable legal form for the venture to elucidate why it has been chosen...............................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
In today's market scenario, as world is changing thus, most of the companies are
emerging and establishing themselves in new market area for obtaining maximum benefits.
Launching a new venture is not an easy task as entrepreneurs can face certain issues and
problems such as culture, growth, rival companies and products & services they are giving.
Therefore, these are the factors which should be consider by company if they want to sustain in
the market for a longer period of time (Barringer, 2015). Present report is based on evaluating
resources which are essential for launching a new venture. In addition to this, skills and
capabilities that are needed for establishing a new business is included in this assignment. Other
than this, appropriate promotional tools is explained which supports launch is mentioned in this
report. Lastly, an appropriate legal form and compile a budget for launching a new venture is
included in this assignment.
TASK 1
P1 Investigation of new venture for identifying specific target market
With the change in course of time an increase in number of cafe and restaurant in United
Kingdom can be seen and this is playing a crucial role in enhancing economy of the nation.
Thus, Aroma Food Delight Cafe and Restaurant want to establish their new venture in United
Kingdom so that they can be able to provide better services and facilities. The venue is sited at
Westfield Street in East London. Cafe and Restaurant is inspired by the theme of Ancient Rome
as they have extensively refurbished with antiques so as to provide deluxe environment and it
includes gold touches, banquette seating etc., where people can feel the essence of ancient Rome
and their delighted food (Klotz and et. al., 2014). Along with this, they can enjoy their coffee and
read novels as well. Before, launching their business company has identified choices and
preferences of Westfield Street so that cafe and restaurant can provide better services and
facilities.
Aroma Food Delight Cafe and Restaurant, has their seasonal menu and their speciality is
cooked meat with hay which is prepared by traditional Roman Technique. Other than this, they
have a unique wine list encompasses different choices around the globe and Rome specially.
Henceforth, Aroma Food Delight Cafe and Restaurant has come up with their innovative idea as
along with the food served they are providing space where people can read books related to
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glorious history of Rome. As a result, it will help them in grabbing attention of maximum
number of people and it will gradually increase their revenues and profits. In order to enjoy their
meal customers has to pay £15 for starters and for main course the starting will be from £25.
Thus, in order to become successful it is crucial that Aroma Food Delight Cafe and
Restaurant, look out for all the factors which can provide them benefits. Therefore, in relation to
this, there are some factors which are necessary to consider so that firm can attain their goals and
objectives in a speculated time frame and these are as follows:
Identifying specific target market: Every company establish their business in order to get
maximum benefits from the market where they have establish their business. Thus, in relation
with Aroma Food Delight Cafe and Restaurant, they have set their targeted customers as firm is
thinking of opening their business in busy street of Westfield in East London. Therefore, after
considering choices and preferences of adults, teenagers and family members company has set
their menu as per different criteria (Burns, 2017). Aroma Food Delight Cafe and Restaurant's
prime focus is on middle class family but their meal can be enjoyed by every section of society.
Competitive analysis: As time is changing and many new entrepreneurs are emerging
therefore, chances of competition is also arising. Now it has become one of the crucial factor
which company had to look after so as to give better outcomes to its customers in comparison
with rival firms. As there are many restaurants in United Kingdom who are selling exotic food to
its customers and sustain a better position in market area. Thus, it will be tough for Aroma Food
Delight Cafe and Restaurant to establish themselves. Furthermore, they can improve their USP
as compared to other rival firm. In relation with Aroma Food Delight Cafe and Restaurant, there
main competitor is Levi Roots Caribbean Smokehouse, London which is a Caribbean restaurant.
Therefore, in order to launch a new business it is crucial for company to have a proper
investigation about the area where they want to establish their business. As a result, it will assist
them in attracting a large number of customers by providing services and facilities according to
their choices and preferences.
P2 Specific tangible and intangible resources
Aroma Food Delight Cafe and Restaurant, is providing best food items of Rome, to its
targeted customers in United Kingdom (Allen, 2015). Thus, for making their dish they are using
fine ingredients imported straight from Rome in order to make their food more tastier. Mainly,
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there are two kinds of resources that are available to an organisation and these includes tangible
and intangible resources and these are explained below for better understanding:
Tangible resources: These are consider as physical resources such as machines, tools and
technologies which can be touched by an individual. In relations with Aroma Food Delight Cafe
and Restaurant, their land is their tangible resource as for this company has spent approximately
£1255698 other than this, amount which was needed for building restaurant along with interior
was around £503785.00. Therefore, for providing better services to its customers they are
providing effective training to its employees so that workers can give appropriate facilities in
relation with food and other services. Other than this, equipments that are required such as
freezers & Refrigerators, food preparation counters, mixers, food processors, ovens etc., will cost
around £55848.
Intangible resources: This includes elements which are other than tangible resources
such as registering and getting themselves patent, trademarks, maintaining a better relationship
with customers etc., therefore, these factors are important to be consider if firm wants to run their
business in a better manner without any complications. Henceforth, along with this, company
must look for providing best quality food and beverages so that they can become one of the
renowned restaurant in London, United Kingdom (Ross and Byrd, 2015). Company will hire
candidates who are capable of making foods items and are able to perform their activities even
in high pressure at workplace. Salary that will be provided to these employees will be according
to the skills and knowledge they acquire.
Henceforth, with the help of both tangible and intangible resource company can
overcome their flaws and issues which will thereafter assist Aroma Food Delight Cafe and
Restaurant in achieving their set goals and objectives in a limited period of time.
TASK 2
P3 Credible proposal to launch a new venture
In order to run a business in an effective manner it is crucial that company has proper
business proposal as it will help them in executing their plan in a better manner. For example: as
Aroma Food Delight Cafe and Restaurant, is launching their business so for them it is crucial
that they provide adequate information about food they are serving along with their prices. As a
result it will give customers a basic idea of food they want to provide. Therefore, Aroma Food
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Delight Cafe and Restaurant has prepared a proposal “ Launch of Aroma” under which they have
provided details about their restaurant and this is explained below for better understanding:
Executive
summary
Aroma Food Delight Cafe and Restaurant, during their initial years is
operating their business at small scale and offering best quality food and
beverages to its customers. Their prime dish which they are providing are
based on Roman theme.
Company
Description
Aroma Food Delight Cafe and Restaurant, is situated in Westfield Street,
East London and building is build in 2500 square feet. The place was
bought by the company 2 year back and now owner of the this land is
thinking of opening a new venture in order to increase their revenues.
Market Analysis Aroma Food Delight Cafe and Restaurant, before establishing their
business has identified and evaluated all the factors which can assist them
in enhancing their business operations. Moreover, company has done
SWOT and PESTLE analysis so as to have better understanding for
environment (Fatoki, 2014).
Marketing strategy In this current market scenario, different marketing strategies are available
which company can adopt in order to improve their business. Therefore,
Aroma Food Delight Cafe and Restaurant can incorporate marketing mix,
7Ps of marketing etc., so as to reach to maximum number of people in
quick time. In addition to this, firm can adopt different mediums and
platforms such as social media, web based internet etc.,
Financial
Projection
For any business it is require that company have adequate amount of
money as it will assist them in executing their plans in a better manner.
Therefore, estimated funds which was required by the organisation is
£503785.00 and for this, firms are consulting various stakeholders and
merchandise enterprise.
Benchmarks It is determine as a crucial factor as it helps organisation in making
comparison with other firms in order to know under which category
company is lacking behind. For example: rival firm is very good in
providing services as their employees share a better mutual understanding.
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Therefore, considering this, Aroma Food Delight Cafe and Restaurant can
improve skills and knowledge of their employees so as to give effective
services. Hence, benchmarking work as a set marking by achieving it
company can gain better position in market area.
P4 Skills and capabilities that are essential for launching a new venture and development at the
same time
Launching a new venture is not an easy task as it requires different kinds of skills and
knowledge in order to operate business effectively. In terms of an individual who is starting its
new venture must have adequate skills which will further assist in formulating effective
strategies and action plan. As a result, it will help them in improving brand image in front of
their customers. Therefore, below some of the skills and capabilities are mentioned which are
essential for launching a new venture:
Marketing and customers service: This is an important component, because if company
will not do any kind of marketing than there is now other possible way through which customer
can know about services and facilities respective firm is providing. Henceforth, in relation with
Aroma Food Delight Cafe and Restaurant, in order to know the choices and preferences they are
taking reviews and feedbacks from customers and food bloggers as well so as to know
drawbacks and what changes can be done for making food more appropriate.
Management of finance: Finance and funds is one of the integral part for an organisation
as it assist firm in executing their plan and operating their business in an effective way. In
relation with Aroma Food Delight Cafe and Restaurant, they must have separate departments
who can help them in managing their accounts and prepare budgets for them.
Time management: People who are establish their new ventures time management is the
crucial factor which they face (Kirkley, 2016). Thus, it is important that managers of Aroma
Food Delight Cafe and Restaurant, set a proper time management plan which other employees
can follow for executing their task effectively. As a result, it will assist them in executing their
activities on time and give competitive advancement to the firm in return.
Better communication: It is an important tool as it helps managers in interacting with
employees and other subordinates. Moreover, Aroma Food Delight Cafe and Restaurant should
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use effective communication tool so that superiors can transfer message in a better manner.
Other than this, manager can use this method for motivating its workers as a result it will
encourage them in performing their task more properly.
Project and risk management: In every business there is a chance of risk, for example: in
food and beverages sector changing trends can be one of the biggest risk thus, it becomes crucial
for companies in providing services and facilities according to the choices and preferences of
customers in order to remain in the market for a longer period of time. In addition to this, firm
should have capabilities of adopting changes and modifications if required so as to stand
themselves unique from other rival firms.
Henceforth, all the factors that are mentioned above must be consider by the firm in order
to get better outcomes and for attaining set goals and targets in a speculated time frame.
TASK 3
P5 Different promotional activities and channels support launch of business
Promotion is a part of marketing mix which is used by organization to create position and
image in market. It is necessary that people are informed about products and services which are
provided by firm. This is an effective tool which helps business person to persuade and remind
buyers to purchase items in according to their demands requirements. Personal selling,
advertising, sales promotion, publicity, etc. are various promotional techniques which are used
by firms in according to target audience (Gathungu, 2014). Aroma Food Delight Cafe and
Restaurant is new venture, so executive require to aware public about its existence in market. For
this, promotion is activity which help them to attract customers by informing them about food
products. Thus, business person is able to enhance brand position to enhance sales and revenue.
Different types of promotion tools:
Advertising: This is paid tool in which audio or visual marketing communication is
conducted by business person. It is effective technique which help them to persuade and
encourage people to make purchase action. For this, radio, television are used by firms to inform
consumers about existing and new products and services. Thus, this helps companies in creation
of good brand image in respect to rival firms. Along this, it also benefits executive to increase
customer base and market reach to improve sales.
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Sales promotion: It is another technique which helps executive to increase sales volume
and grab attention of large number of people. Different offers that are discount, coupon, gift,
voucher, rebate and many other tactics are used to encourage buyers to purchase items or service.
This aid business person to position firm superior than competitors by providing benefits to
customers. Thus, this helps them to enhance sales volume and profitability.
Personal selling: Personal selling is where businesses sell product after meeting face-to-
face with customer. The sellers promote the product through their attitude, appearance and
specialist product knowledge. There aim is to inform and encourage the customer to buy, or at
least trial the product. A customer can get advice on how to apply the product and can try
different products. Prices of the products are relatively high often sold using personal selling. A
good example of personal selling is also found in department stores on the perfumes and
cosmetics (Burton, Sørensen and Dobrev, 2016).
Online advertising: It is a form of electronic commerce which allows companies to
market and promote message to people about products and services. With technological
advancements, large number of individuals uses internet to search and gain information about
items. Email marketing, social media, mobile advertising, search engine, web banner are various
online tools which are used by executive. This help them to inform people about items and
services. Along this, executive is also able to maintain communication with customers for
sustaining them for longer time. Thus, it is effective technique for new venture to launch
products or services, thereby enhance sales volume by attracting large people.
Thus, business person of Aroma Food Delight Cafe and Restaurant uses advertising to
promote and aware public about food items. Television and radio are effective tool which help
them to inform people to attract them to visit store. Besides this, online advertisement that is
social media and company's website are used to aware consumers. This helps executive to
establish good market position and brand value in respect to competitors.
P6 Promotional activities plan for both pre - launch and launch
An entrepreneur require to make plan in respect to execution of activities in systematic
manner. New ventures that is Aroma Food Delight Cafe and Restaurant require to establish
appropriate position in market and mind of people. For this, business person need to make plan
in respect to promotional activities before and after launch (Agrawal, Catalini and Goldfarb,
2014). This help them to gain information about market to develop product and services in
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according to demands of people. Besides this, changes are also made if expected outcomes is not
incurred. Thus, entrepreneur require to conduct promotion activities both pre- launch and launch
which is stated below:
Pre- launch activities: Research target consumers: It is an effective task in which executive of Aroma Food
Delight Cafe and Restaurant conduct market survey to gain information about demand
and requirements of people. This helps them to formulate effective marketing strategy in
respect to product, price and promotion. Develop product messaging: This is another activity in which business person of Aroma
Food Delight Cafe and Restaurant create catchy tagline to persuade buyers. Besides this,
effective firm's website and promotion message stating features and other attributes of
food items (Barrow, Barrow and Brown, 2015). Thus, consumers are informed about
variety of food items to make their mind to visit store. Investigation of Financial resources: It is tasks in which executive of Aroma Food
Delight Cafe and Restaurant ascertain funds availability. They require to have resources
for conducting business activities in respect to needs of demands of people. Along this,
business person even need to have sufficient money for executing promotional tasks. It is
new venture, so they require set prices through which large number of customers are
attracted.
After launch activities:1. Brand development: This is effective process which is conducted by business person to
provide intangible aspects to its firm and offerings. Name, logo, URL are different brand
elements which are formulated by them to stand firm distinct from crowd. These are
components which helps executive of Aroma Food Delight Cafe and Restaurant to create
brand image. Thus, they are able to attract customers to purchase food items by
developing good reputation in market (Marion and et. al., 2015).
2. Web presence: It is another activities in which digital marketing and social media are
used by business person of Aroma Food Delight Cafe and Restaurant. This help them to
create position in online platform. Facebook, Twitter, google and Instagram are various
apps which are used to inform and build connection with people. These are effective tools
which aid executive to launch and aware consumers about existing and new food items.
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TASK 4
P7 Monthly cash budget
For an organisation budget plays a crucial role as it provide with a guidance such as in
what field company has to invest money or what kind of raw material are necessary for providing
effective services and facilities.
Year 2017 Jan Feb Mar April May Jun
Opening cash balance 0 -30852 -22015 -14108 36042 66856
Food Sales amount 0 42563 43526 43568 44124 44325
Beverage Sales 0 12451 15000 13452 14528 15574
GROSS SALES (Total) 0 55014 58526 57020 58652 59899
Cost of Goods Sold
Raw Food purchase 0 25000 28000 26000 25000 30000
Beverage purchase 0 3500 5000 3363 3632 5000
Total cost of goods sold 0 28500 33000 29363 28632 35000
Gross profit 0 26514 25526 27657 30020 24899
Cash Flow After Financing 10000 10000 10000 10000 10000 10000
Total cash inflow (A) 10000 5662 13511 23549 76062 101755
General and Administrative
Workers Salaries 15476 13754 13996 14255 14663 175
Management Salaries 3400 3400 3400 3400 3400 3200
Advertisement 800 800 800 800 800 300
Bookkeeping 150 150 150 150 150 200
Insurance 250 250 250 250 250 150
Legal and Professional Fees 100 100 100 100 100 200
Misc. Other 250 250 250 250 250 1200
Total Gen. and Admin. (Fixed) 20426 18704 18946 19205 19613 5425
NET PROFIT OR LOSS -20426 7810 6580 8452 10407 19474
Drawings 2000 3000 1600 2500 3500 3000
Total cash out flow (B) 42852 13894 13966 13253 12706 -11049
Net Cash Flow (A-B) -32852 -5232 1145 12796 66856 115804
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Year 2017 Jul Aug Sep Oct Nov Dec
Opening cash balance 115804 165175 210899 247977 278168 351241
Food Sales amount 44658 45210 45325 46251 66000 90000
Beverage Sales 15487 16421 16251 17452 35000 40000
GROSS SALES (Total) 60145 61631 61576 63703 101000 130000
Cost of Goods Sold
Raw Food purchase 35000 40000 38000 45000 70000 80000
Beverage purchase 6800 7000 18000 20000 30000 35000
Total cost of goods sold 41800 47000 56000 65000 100000 115000
Gross profit 18345 14631 5576 -1297 1000 15000
Cash Flow After Financing 10000 10000 10000 10000 10000 10000
Total cash inflow (A) 144149 189806 226475 256680 289168 376241
General and Administrative
Workers Salaries 14975 15036 15408 15394 15926 15893
Management Salaries 3400 3400 3400 3400 3400 3400
Advertisement 1102 1106 1128 1128 1160 1158
Bookkeeping 800 800 800 800 800 800
Insurance 150 150 150 150 150 150
Legal and Professional Fees 599 601 616 616 637 636
Misc. Other 250 250 250 250 250 250
Total Gen. and Admin. (Fixed) 21276 21343 21752 21738 22323 22287
NET PROFIT OR LOSS -2931 -6712 -16176 -23035 -21323 -7287
Drawings 8000 6000 3000 5000 8000 9000
Total cash out flow (B) 32207 34055 40928 49773 51646 38574
Net Cash Flow (A-B) 165175 210899 247977 278168 311241 398278
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P8 Suitable legal form for the venture to elucidate why it has been chosen
There are certain rules and regulations which are formulated by regulatory bodies so that
company can run its business without any complications. Therefore, whether it is small, medium
or large all companies had to follow legal obligations. Henceforth, Aroma Food Delight Cafe and
Restaurant, has incorporated these laws and furthermore considering for formulating their rules
and regulations as well (Albort-Morant and Oghazi, 2016). Thus, some of the basic laws are
mentioned below which are being by firm are given below:
Partnership: In this legal form, business is owned by two or more owners who shares
profit and losses according their investment ratio (Legal Aspects of Business, 2018). This legal
form divides the accountability among its partners like managing employees work, handling
barrier of work place, etc. It is considered as beneficial starting for the new ventures as it shares
responsibility of the owner in terms of arranging finance for executing business operations.
Along with this, at the time of bad phase of business that is loss partners are equally liable for its
losses.
Sole proprietorship: In Sole proprietorship business is handles and managed by single
individual. This legal form states that all major decisions and operations are controlled by the
owner without sharing any its responsibilities with any one. In this, sole proprietor alone bears
all losses and enjoys profits of the business. It is considered as non likely legal form for ventures
as its quite difficult for the single person to manage all activities at initial phase without any
support.
Corporation: Companies that comes under this are legally existed but are distinct from
their owners. They can individually buy, sell and enter into new contracts and corporation can be
categorised into two categories i.e. S Corporation: These have few owners instead of ample
number of companies and their personal liability is lower. C Corporation: This is determine as
the most common form of corporation and provides protection to the owners.
Therefore, for Aroma Food Delight Cafe and Restaurant, Partnership will be the suitable
legal form as it includes less legal procedures and two partners has to sign only a bond under
which all the rules and regulations are included. Pre-launching spending will be of around
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£689587 which will include the entire cost whether used in dealing a partnership or introducing
new equipments. Aroma Food Delight Cafe and Restaurant has now launched its business in
United Kingdom and customers can now enjoy their food and other services as well.
CONCLUSION
From the above report it has been concluded that, in order to launch a new venture an
individual must have appropriate skills like time management, appropriate knowledge of finance
etc., as a result it will assist an individual in operating its business in a better manner. Moreover,
knowing current market situation is also crucial as it provides detail about current trends that are
present in the market area. Furthermore, there are some of the rules and regulations which are to
be followed by companies for operating business in a better manner and this can differ from one
place to another.
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REFERENCES
Books and Journals
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entrepreneurs?.Journal of Business Research. 69(6). pp.2125-2129.
Allen, K. R., 2015.Launching new ventures: An entrepreneurial approach. Nelson Education.
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Barrow, C., Barrow, P. and Brown, R., 2015.The business plan workbook: A practical guide to
new venture creation and development. Kogan Page Publishers.
Burns, P. 2017.New venture creation: A framework for entrepreneurial start-ups. Palgrave.
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Fatoki, O., 2014. The financing options for new small and medium enterprises in South
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ventures: An ethnographic study within the new product development process.Journal
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Mathias, B. D., Williams, D. W. and Smith, A. R., 2015. Entrepreneurial inception: The role of
imprinting in entrepreneurial action.Journal of Business Venturing. 30(1). pp.11-28.
Ross, L. W. and Byrd, K. 2015. Business Plan Competitions: Start-Up'Idols' and Their Twenty-
First Century Launch Pads
Online
Legal Aspects of Business. 2018. [Online]. Available Through:
<https://www.lawteacher.net/free-law-essays/business-law/legal-aspects-of-a-
business.php>.
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