Starting a Venture in London

The assignment discusses the requirements for successfully opening a venture in London, including evaluating sources of funds and acquiring skilled employees. It also mentions the importance of possessing qualities necessary for the functioning of the business. The document provides information on various legal forms through which a venture can be started, such as sole proprietorship, company, and partnership.

LAUNCHING A NEW
VENTURE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Identifying the specific target markets and competitive analysis.........................................1
P2: Specific tangible and Intangible resources that are required in opening a new venture.......3
TASK 2............................................................................................................................................4
P3: Formulating a credible proposal to launch a new venture ...................................................4
P4: Capabilities and skills that are required in launching a new venture....................................6
TASK 3............................................................................................................................................6
P5: Determining the promotional channels and activities for launching a new venture.............6
P6: Formulation of appropriate promotional activity plan for both pre launch and after
launching the venture..................................................................................................................7
TASK 4 ...........................................................................................................................................8
P8: An appropriate legal form for the venture..........................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES:.............................................................................................................................12

INTRODUCTION
The modern market includes a lot of business opportunities that the entrepreneurs can
undertake so that they initiate their own business and make profits by providing efficient quality
products to the customers of the company and by satisfying their demands. For the achieving
success in the operations of the business, it is significant that the entrepreneurs possess a lot of
knowledge and skills that will assists them in understanding the market conditions and the
formulation of strategies in accordance with the market conditions. In starting a new venture the
proprietors face a lot issues and challenges that they have to manage effectively in order to
survive in the market. The challenges face by them include shortage of funds, competition, lack
of human resources, knowing tastes and preferences of customers, experience, and diversified
conditions of market. All these factors cause a bad impact in conducting the operations of the
business successfully and accomplishing the objectives within a pre-specified period of time.
'Food cravings restaurant' is a new venture which is going to launched in the markets of London
UK.
This project report will discuss about the identification of specific target market for the
business and undertaking analysis of competition in market, determination of the specific
intangible and tangible resources that would be needed for launching a new business, creating a
proposal that will be required for the launch of new business. Also, developing a promotional
plan that will required before and after the launch of business.( Kuratko, and Hornsby, 2017)
TASK 1
P1: Identifying the specific target markets and competitive analysis
Food cravings restaurant is a new venture which has decided to initiate its business in the
markets of London , United Kingdom with the menu which consists of various cuisines. There
are various types of dishes and cuisines which are adopted by the restaurant so as to attract a
large base of customers such as Italian, American, French , Indian, Thai, Chinese etc. Starting a
new venture in the Food industry is a good option as the most people like to have their dinner in
the restaurants which have increased the demands of restaurants. The place which is most
optimum and preferable to open their outlet is near London eye, which is remarked as most
popular tourists destination and al large number of tourists visit the place on daily basis. This
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place offers them a golden opportunity to acquire a large base of customers and will also enable
them in effectively survive in the market by offering their attractive services.
The Food cravings restaurant has been opened in partnership deed with a total of three
partners. According to their plan for the set up of restaurant, they require a land of 1800 square
feet in main area of London eye on a lease of at least 4 years so that they can efficiently make a
space in the market of their new venture. For this purpose all the partners have acquired a fund
from various sources such as their own capital and loans from bank which is around 450000 to
485000. ( Kuznetsov, and Sabel, 2011)
Objectives
 For gaining a broad market share.
 For providing genuine and good quality and quantity of food items.
 For making huge revenues and increasing the wealth of the shareholders.
 To create a popular brand image in the market and influencing customer's behaviour.
Mission: “ To provide fresh and genuine quality products and services which are also
healthy for the customers and satisfying their preferences through offering diversified cuisines.
Target market
Identifying the target market of the business is essential for the entrepreneurs of the
business in order to generate the revenues. If the business knows its customers, their tastes and
preferences and the trends of the targeted market then it will be easy for the business to provide
the products and services that will satisfy their needs. The target markets are divided on three
basis known as demographic , psycho-graphic and geographic basis which are discussed as
below:
Geographic: According to this market segmentation the customers are divided according
to the location. This assists the business in identification of the needs and preferences of the
customers according to the different locations and countries. This restaurant is opening their new
outlet in London eye where wide variety of customers visit who have different preferences
because they come from different countries.(Jervell, 2011)
Demographic: This market segmentation process divides the customers on the basis of
age, gender , education level, marital status, religion, income level etc. These factors improves
the understanding of the target market to whom the business wants to sell their products. For
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example, according to this division the entrepreneurs put more emphasis on the pricing strategy
as the youth are the most common customers of the business.
Psycho-graphic: in this classification the target market is divided on the basis of lifestyle
and personality preferences, socio-economic class. This segmentation puts more emphasis on the
middle class group of customers.(Leschke,2013)
Competitive analysis:
This analysis is crucial to be done by every organisation which is trying to enter a new
market. According to this analysis, the competitors that are existing in the market which are in
same industry are evaluated by the business. From the analysis done, it has been observed that
the so many new restaurants are entering into this industry such as Bar 61 restaurant, The led
bury, Food for friends etc. These restaurants have already acquired a large customers base in the
market and for acquiring the competitive advantage in the market the Food craving restaurant
need to focus on their different cuisine offering and food quality to steal the customers from
other restaurants.
P2: Specific tangible and Intangible resources that are required in opening a new venture
The business needs many resources which is utilised by them, that is to be obtained in a
pre specified period of time in order to initiate the operations of the business in an efficient
manner. These resources plays an important role in the functioning of the business and providing
services to the customers in an efficient manner. These resources are classified in two broad
categories namely tangible and intangible.( Hantman, and Gimmon, 2014) The tangible
resources of business include labour, machinery, funds , equipments, land , food items etc.
Whereas the intangible resources are those which are necessary in providing efficient services
but they are not visible. These resources are explained in brief as under:
Tangible resources: These are those resources of the company which are physical in
nature and assists in contribution of efforts in the functioning of the business in the market. The
various types of tangible resources which assists the business in efficient functioning includes
employees, food material, land and building, furniture, funds etc. There is requirement of Juicer,
Induction, Heater, crockery, etc. for establishing restaurant to conduct operations properly. This
involves cost of £ 350. One of the most crucial tangible assets is funds of the business which
helps it in acquiring other assets for the operations of business.( Mollick, 2014) These resources
improves the internal strength of the restaurants which in turn increases the customer base of the
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restaurant. Ensuring proper availability of various food items in the restaurant enables them in
providing various types of cuisines to the customers thereby increasing the satisfaction level and
demand of the customers.
Intangible resources: These are the resources which are not present physically in the
company but offers a great value to the firm who is about to make a entry in the market. The
various types of intangible assets which are included in the business are, patents, goodwill,
trademark, ambience, customer relation. When the new business are developed by the
entrepreneurs, they introduce new technologies and other important things into the restaurant
which are required to be protected from the competitors by creating their patents and applying
for trademarks on use of similar techniques by other business units. This is referred to as the
intangible assets which are introduced to protect the innovative techniques adopted by the
organisation in the preparation of food items and other things. The Food cravings restaurant
should maintain customer relationships with the customers of the company by use of customer
relationship approaches which helps the business in creating a special bonds with their regular
customers such that they do not switch to other restaurant. Being loyal and true to customers
helps the restaurant in retaining the customers for a longer duration which maintains the
sustainability of the company.( Mullins, 2017)
TASK 2
P3: Formulating a credible proposal to launch a new venture
For the purpose of starting a new venture in the market, the entrepreneurs require to
formulate a proper plan of action. The business owners knows that they also require to
implement a new plan of action in order to attain the objectives and targets of the company in a
better way. The planning should be done in a way that it helps in effective and unique change in
the organisation which leads in achieving the better outcomes also.( Fernhaber, and Li, 2013)
The right format in which the food cravings restaurant should present the details of undertaking
are as follows:
Executive summary Food cravings restaurant is a place which deals
in providing to the customers a wide variety of
foods such as pastries, sandwiches, burgers, ice
cream and various other items.
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Company description For Opening Food cravings restaurant the
entrepreneur have decided to provide foods
which is healthy and tasty. Food cravings
restaurant present the dishes to the customers
in a way that looks attractive and provide more
satisfaction to the customers. The entrepreneur
are also focusing on hygiene of the food and
the utensils they use in which they serve their
dishes.
Market analysis For the efficient operations of the business the
entrepreneur need to analyse and adopt
effective strategies for proper decision making.
The entrepreneur who are planning to expand
their business has to conduct a market analysis.
The market analysis techniques include
PESTLE, SWOT etc.
Financial Projection Finance is the lifeblood of any business entity.
For launching the Food cravings restaurant in
an efficient manner without any hindrances in
the operations, the entrepreneur needs to
procure necessary capital and funds. Generally
financing is the first and foremost step in
launching a new business.
Benchmarking This function assists the owners of the
restaurant in setting a benchmark for the
performance standards for the employees and
management of the business, so that their
performances can be compared with the set
benchmarks and corrective actions would be
taken if there are any variations.
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P4: Capabilities and skills that are required in launching a new venture
Any business is successful not only because it have a good quality of tangible and
intangible assets but also because the employees working in the organisation are skilful and have
capabilities because of which the restaurant is able to operate successfully in the market.(Plehn-
Dujowich, 2010) These skills of the managers and owners assists the business in tackling the
situations of risk faced by the companies. The various types of skills and capabilities which the
entrepreneurs should possess include:
Ability to raise Funds: Funds are required by the management of the company at every
stage of the operations. If the owners do not possess the capability to raise the funds then the
operations of the business will get hindered. The owners should have a pleasing personality and
convincing skills so that the funds can be raised from sources like banks, financial institutions,
private funders, investors etc.
Ability to manage funds: Owners of business should have the capability to manage the
funds of the business so that they can earn more profits. The owners should have knowledge
regarding the projects of the business and they should try to allocate the funds in those areas
which provides highest returns.(Taylor, and Shrader, 2012)
Ability in identifying weaknesses and strengths: In order to be a prosperous
entrepreneur, they should possess a capability to identify the strengths and weaknesses of the
business which helps them in determining the understanding about the future decision making.
It is important to identify these by the owners as they can utilise the strengths in achieving the
targets and overcome the weaknesses of the business.
Leadership skills: The owners should possess leadership skills for motivating the
employees that are working in the business to perform the best of their ability. These skills assist
the owners in creating good teams in the organisation which will work together to achieve the
targets of the company in given time period.(Dutta, and Merenda, 2011)
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TASK 3
P5: Determining the promotional channels and activities for launching a new venture
There are various promotional channels and options that are used by the business which
are being utilised by the Food craving restaurant in order to promote their business in the market.
These techniques of promotions are discussed in brief as under:
Mobile Billboards: This is an effective promotional tool which can be utilised by the
company for gathering the focus of the customers as this technique assists the business in
providing the information related to the products of the business in innovative ways which are
unique from others. The information provided using this tool include logo, stickers and punch
lines etc. This leads to the formation of unique identity.
Social media platform: There are various social media websites which is used by the
Food cravings restaurant in order to promote their restaurants. These days promoting through
social media covers a huge base of customers with a very less cost. The popular social media
platforms include Facebook, Twitter, Instagram etc.
Personal promotions: This type of promotion involve the promotion that is undertaken
on the personal basis such as distribution of brochures and catalogues in the local communities.
The main benefit of this type of method is that it provides personal interaction with the the
customers of the business and helps in collecting feedbacks from the customers and hence the
restaurant can know about the tastes and preferences of the customers.
P6: Formulation of appropriate promotional activity plan for both pre launch and after launching
the venture
This is crucial for Food craving restaurant to formulate proper plan for the promotions of
the business for both pre-launch and after launching the business to attract the customers in the
restaurant. These plans are important because the market in which they are entering already have
a lot of competitors so they need to perform proper promotions so that they can acquire
customers from those restaurants to their restaurants.
Pre-launch promotions: This is the promotion activity which is to be undertaken by the
company before the launching of the restaurant. This consists of the preparation of websites of
the restaurant and providing a brief of the restaurant and the types of cuisines they provide, what
are their prices etc.( Dimov, 2010)
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Launch: After the restaurant has decided to open the store, the owners should host a
opening ceremony where they should invite famous food bloggers , media representative and
celebrities to gain the attention of the customers towards the restaurant. The owners can also
provide different opening offers for the customers so that they come to try the restaurant. The
owners can also put the advertisement of opening of restaurant in newspapers and food
magazines to create a brand name among the market.
TASK 4
Cash budget for Food cravings restaurant which is prepared before its launching for a
period 12 months is prepared as follows:
Pre launch
cash budget (£)
Cash Flow
budget
Particulars Jan Feb Mar Apr May June
Cash inflows
Investment 8000
Credit sales 2000 3000 3000 4500 1500 3500
Total inflows 10000 3000 3000 4500 1500 3500
Cash outflows
Fixed :
Equipment’s 2000 2500 1500 2000 1200 1500
Variable :
Direct material 300 300 200 300 150 500
Total outflows 2300 2800 1700 2300 1350 2000
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Net cash flow 7700 200 1300 2200 150 1500
Opening
balance 0 7700 7900 9200 11400 11500
closing balance 7700 7900 9200 11400 11550 13000
Particulars July August September October
Novembe
r
Decembe
r
Cash inflows (£)
Investment
Credit sales 4200 1000 2000 800 1200 1500
Total inflows 4200 1000 2000 800 1200 1500
Cash outflows
Fixed : Equipment’s 800 200 300 100 600 300
Variable : Direct
material 300 400 500 100 100 400
Total outflows 1100 600 800 200 700 700
Net cash flow 3100 400 1200 600 500 800
Opening balance 13000 16100 16500 17700 18300 18800
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closing balance 16100 16500 17700 18300 18800 19600
Post launch cash
budget (£)
Particulars Jan Feb Mar Apr May June
Cash inflows
Investment 8000
Credit sales 1200 2000 7500 3000 5000 6500
Total inflows 9200 2000 7500 3000 5000 6500
Cash outflows
Fixed : Equipment’s 2500 1200 1500 2500 1100 1500
Variable : Direct
material 350 300 250 150 100 500
Total outflows 2850 1500 1750 2650 1200 2000
Net cash flow 6350 500 5750 350 3800 4500
Opening balance 0 6350 5850 11600 11950 15750
closing balance 6350 5850 11600 11950 15750 20250
Particulars July August
Septembe
r October
Novembe
r
Decembe
r
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Cash inflows (£)
Investment
Credit sales 1200 3200 1500 8200 1250 3210
Total inflows 1200 3200 1500 8200 1250 3210
Cash outflows
Fixed : Equipment’s 1200 600 500 500 1200 700
Variable : Direct
material 500 250 450 250 1300 500
Total outflows 1700 850 950 750 2500 1200
Net cash flow -500 2350 550 7450 -1250 2010
Opening balance 20250 19750 22100 22650 30100 28850
closing balance 19750 22100 22650 30100 28850 30860
P8: An appropriate legal form for the venture
There are various legal form under which the new venture can be started. Each of these
form have their own advantages and disadvantages. The legal structure of the business can be
created under three following ways which are discussed as under:
Sole Proprietorship: In this type of business the a single person undertakes all the
responsibilities of the business and he is the only one who introduce capital in the business and
also manages the entire business on his own. Under this method the proprietor has unlimited
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liability in case the business is liquidated and also if the business makes profit, he is the only
person who is entitled to take it.
Partnership firms: This type of business is similar to sole proprietor but the only
difference is that there is more then one person in this firm. In this form two or more people
come together start a business and and the capital are introduced by them equally or as decided
by them. The profit and loss sharing is done among all the partners as per the share of their
capital in the business. The liability of all the members is limited up to the amount that is
invested by them in the capital of the business.( BarNir, 2014)
Company: The companies are created in two forms which are private or public
according to the nature and size of the company. The company is entitled as a separate legal
entity from the owners of the company. The companies are formed under the companies act
which is formulated by the government of the country. There are many rules and regulations
which are need to be adhered before the starting of a company.
As per this report the Food cravings restaurant is partnership firm which is good choice
by the owners of business. According to which the profits of the business will be divided as per
the capital sharing in the firm and the losses will be limited up to the capital introduced by
partners in the company.
CONCLUSION
It has been concluded from the above project that to successfully open their venture in
London they properly need to evaluate the various sources of funds and acquire skilful
employees. Also the owners of the business should possess the qualities that is necessary for the
functioning of the business. The different sources from where the firm can raise funds include
investors , financial institutions, bank loans etc. This also do a discussion about the various legal
form through which a venture can be started such as sole proprietorship, company , partnership
etc.
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