Entrepreneurship and New Venture Creation

This assignment delves into the concepts of entrepreneurship and new venture creation. It analyzes the role of entrepreneurs in driving innovation, emphasizing the impact of positive affect, creativity, and environmental dynamism. The text also explores the social construction of technology, highlighting the significance of network relationships in international exposure for new ventures. Furthermore, it examines various aspects of new venture teams, leadership styles, and the influence of gender on firm performance.

LAUNCHING
A NEW VENTURE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 A new venture identifying specific target markets and undertaking competitive analysis....1
P2 Specific tangible and intangible resources.............................................................................2
TASK 2............................................................................................................................................3
P3 A credible proposal to launch a new venture.........................................................................3
P4 Skills and capabilities required to launch a new venture.......................................................5
TASK 3............................................................................................................................................6
P5 Different promotional activities and channels to support the launch....................................6
P6 Appropriate promotional activities plan for both launch and pre-launch..............................7
TASK 4............................................................................................................................................8
P7 Itemised monthly cash budget for the pre-launch phase........................................................8
P8 An appropriate legal form for the venture...........................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
In today's era, starting a new business venture is quite difficult task because there is a vast
and cut throat competition in market place and business environment is dynamic in nature and
when a new business project is to be launch then it has to face and fight various difficult
problems like culture, competition, growth by larger organisation. Main aim of preparing this
report is to search range of resources needed for introducing a new firm in market along with
analysis the capabilities and skills which is essential for starting a business project in industry
(Baron and Tang, 2011). A business plan is developed for a coffee shop with extraordinary
quality by researcher. For developing business plan, various promotion and legal budge and
form are applied. Kaleidoscope Coffee bar is venture that will going to be start in Manchester,
United Kingdom. Main products and services that are provided by firm is brewed coffee, pastries
and other bakery products.
TASK 1
P1 A new venture identifying specific target markets and undertaking competitive analysis
Kaleidoscope coffee shop is ready launched to provide their facilities to working and
non-working individuals by providing space for reading novel, spend quality time with family
and friends, as stress buster. By comprehending zest of people within associations, Kaleidoscope
coffee shop opened their venture in Manchester Streets. This coffee bar offers best brewed and
prepared coffee herewith teas, pastries and bakery products etc.
Person who started this coffee shop is operating their business operations in 2300 square
feet in Manchester Street. This company owner has expanded their place in the lease of 3 year
with option that at the time of lease ending venturer can increase duration of lease according to
need (Bijker and et. al., 2012). Required budget of starting coffee bar is £ 3,50,648 to £3,52,652.
Objectives: These are some aims and goals that firm is set for one year time period.
 Wants to be nominated for the award of “Best Coffee Bar” in United Kingdom by local
state.
 Generate benefits from initial month.
 Wants to manage approximate 62% growth rate from starting year.
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Mission: Company set its mission on making best efforts for developing strong
positioning strategies to fascinate larger pool of clients by introducing a cafe which would be a
place where people can socialise with their known person along with brewed coffee.
Target Market: Major objective of any business organisation is to reach their potential
customers who have necessary buying power and to hit this goal, owner of Kaleidoscope coffee
bar has to set a target market and should spread all required information in venture so that
workers get to know what they have to do in which time frame. Target market is a group of
people who could become client of company in minimum efforts and time. There are various
basics are present on which target market can be decided for example age, gender, youngsters,
college going, family dining etc. Target market that Kaleidoscope is set for their business is
teenagers and college going students along with family persons. As per concern of income
category, target market is set for middle class people of society who have variations in their
earnings and salaries (Burns, 2017).
Competitive Analysis: Before making a start in market, it is required from entrepreneur
that he/she should conduct a wide and most effectual competitive analysis so that range of
competition could get so that marketing strategy for handling rivalry could be framed. By
conducting a prominent competitive analysis, kaleidoscope coffee shop has find that Starbucks
and Costa coffee shops are large corporations that are main rivals for new venture and these two
associations are covering larger pool of customers and it is not impossible but is difficult to
compete them. When a good strategy is formulated and executed then new enterprise can defeat
their business rivals in shorter life period.
P2 Specific tangible and intangible resources
Kaleidoscope coffee bar is providing extraordinary services to its consumers in local
arena of United Kingdom. Better quality services could be provided by using high quality
ingredients by applying dish prepare guidelines that are depend upon health and safety measures
of clients. Resource is defined as some benefits that are attached with a source and company can
avail them for competing business enemies in market. There are two types of resources that firm
need to get for establishing business successfully and that are described as beneath:
Tangible Resources: This type of resources are those which can be seen and touch by
their physical presence. This section includes plants. Equipments, raw material, money etc. All
visible resources needs money to get engage in business. In respect to Kaleidoscope coffee shop,
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equipments that are used for production, ingredients, ambience, etc. are some example of
tangible resources. These type of resources can be put in corporation directly and results could be
measure easily (Caselli and Negri, 2018). This consists both fixed assets and current assets.
Land, machinery and building come in fixed assets while inventory is consider as current assets.
These also known as physical items which are utilise by organisation to generate large amount of
profits. These assets get special treatment for the purpose of accounting as these have useful life
more than one year.
Intangible Resources: This kind of sources are invisible and directly link with
manufacture function. For example; patents, trademarks, consumer relationship, organisational
culture, goodwill, brand image etc. These resource are having important role in accomplishing
business operations as they directs activities and actions of a venture. Entire intellectual
properties are subject matter to intangible resources and help management in securing their
unique ideas and business. These properties helps company in becoming brand and make
customers able in recognising coffee shop as their satisfaction. In case of kaleidoscope, attitude
and personality traits of employees and their behaviour in which they deal with clients and
qualities of services are most important components which serve their aid to corporation in
hitting their objectives.
By taking help of above elements, Kaleidoscope coffee bar can serve higher value items
and facilities to their clients for long term and short term basis. Resources are helpful in
determining objectives of company by telling information about strengths and weakness of
association. To develop appropriate branding and to implement plan successfully, a proper
design and layout should be prepared by considering all these elements of kaleidoscope which
make organisation able in serving best quality services and products.
TASK 2
P3 A credible proposal to launch a new venture
A proposal or plan for is a framework that breaks activities into short tasks for
accomplishing many actions at the same time to achieve all targets in limited period of time.
Main objective of developing these plans is to attract more consumers towards firm. This
proposal is fruitful in achieving all goals and objectives in organised manner and it does not
matter that organisations is new or survival or new items are served by existing and novel
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corporation (Fernhaber and Li, 2013). As other companies has developed their business plan,
Kaleidoscope need to build a proposal for their venture that can help them in attaining all
outcomes. A business proposal is mentioned as follows:
Executive summary Kaleidoscope coffee bar is a small venture that is serving brewed coffee
along with pastries and other bakery items.
Company Description Entrepreneur has opened a new coffee shop named as kaleidoscope.
Individual is operating this venture in 2300 square feet area in
Manchester streets in United Kingdom. Kaleidoscope coffee shop has
lease for three year contract and this duration can be increased after.
Market Analysis For making business expansion, enterprise is conducting very effectual
market analysis for studying range of competition. Main aim of running
this kind of analysis is to find out those components which are helpful
in conducting SWOT and PESTEL analysis in order to find out those
factors which need to be taken into consideration by owner of company
(Simon and Shrader, 2012).
Marketing strategy Present aim of Kaleidoscope coffee bar is to expand their business
operations but to hit this purpose, it is required from venture that it
should establish their footprints in streets and local market so that
mouth publicity could be gained and to gain attraction of various people
company is using social media, internet and other marketing strategies
in order to expand business operations in new marketplace.
Financial Projection Dealing efficiently with financial conditions in order to arrange funds
for budget to start business venture, Kaleidoscope need to deal and
manage entire amount of budget.
Benchmarks Enterprise need to make comparison between their performance and
industry benchmarks. This type of action enables a client to identify
better service operator in industry. Benchmarking is a prominent tool
for kaleidoscope coffee shop,a s this action provides mouth publicity
among market.
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Pricing strategy When firm manufacture and offer a new product to its customers then
set right price of product is very essential. Price is one of the major
factor which is use by individuals to take purchase decision.
Risk analysis Risk is one of the factor which is involved in every business project. A
business owner also remain uncertain about what is the rate of return he
will get. So it is very important for manager to formulate and
implement an effective strategy so company can generate more number
of profits.
HR strategy Manager of HR department play a big role in every project execute by
firms. Employees and their skills are require to complete the project and
it is very important for manager of HR department to formulate an
effective strategy so company can recruit the skilled candidates require
to execute the project.
P4 Skills and capabilities required to launch a new venture
To run a successful business enterprise, it is required from owner that some qualities,
skills and capabilities should possess by him/her in order to attain all targets in limited period of
time. This section presents some qualities and personality traits that must be exist in corporation
as they are necessary for hitting objectives in most successful manner. Here are some skills and
capabilities that must be avail by entrepreneur of Kaleidoscope coffee bar:-
SKILLS
Leadership Skills: A leader is a person who brings all his/her team together so that all
task is to be done at same time and this type of virtues decreases conflicts at workplace because
everybody is settle with activities allowed and workers know that what they have to do to
contribute in achievement of organisation goals. Chieftain always tries to motivate team
members so that manpower should work with self motivation and enthusiasm in order to hit
goals in shortest time duration without hampering quality of product and services (Hmieleski,
Cole and Baron, 2012). The skills of leadership could be developed through undertaking of more
projects so that ability of handling different tasks and situations is achieved. The ability of lead
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effectively can be further enhanced through developing situation awareness so that problems and
challenges can be anticipated.
Optimistic & Visionary: An entrepreneur should not have fear of failure as this action
impacts business operations in negative manner. So, it is required from entrepreneur that he/she
should be able in assessing and watching future opportunities and always be able in finding
something positive from opposite situations. This type of personality traits are helpful in bringing
success into corporation. The skill of optimism can be developed through utilising positive
affirmations. The ability to generate new ideas and thinking creatively are one of the crucial
approaches through which an entrepreneur can become more optimistic.
Problem solving skill: This skill focuses on dealing with a situation effectively so that its
negative consequences could be minimized. An entrepreneur possessed with this skill focuses on
minute details of the problem by using his critical thinking skills. This crucial entrepreneurial
skill can be developed through focusing on the problem rather than the solution. Listing out the
probable solutions and thinking laterally are additional approaches to enhance problem solving
capability of an individual.
CAPABILITIES
Project Management: Entrepreneur must be good manager of activities and also assign
task to employees according to their virtue and specialisation so that worker could work in
efficient manner. Management of project can be done by arranging all activities in appropriate
manner so that it could be arrange in systematic pattern and prioritisation of actions could
become easy. It is essential to regularly develop this capability of managing through eliminating
obstacles which are faced by an entrepreneur. Formation of workflow and project schedule can
be considered as a crucial ways to enhance project management capability.
Presenting: Presentation is a major tool in context of running a business enterprise.
Owner is a person who presents his/her business idea in front of many people for some reasons
like arrangement of adequate amount of money to convert business idea into reality. In respect to
Kaleidoscope company need to be good presentor so that it could present its products and
services in most effective manner in front of clients by using quite prominent promotional
strategies. Practice can be considered as a primary approach through which presentation skills
could be improved. It is very important for a presenter to adjust to the surroundings so that
information or message is communicated to target audience in the right manner.
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An unskilled person could not a successful business enterprise so it is essential that to run
a successful business project entrepreneur should attain some required sort of talents,
specialisations and traits so that efficiency could bring in task and activities accomplishments.
Need of possessing some type of qualities are management of financial resources, activities and
to reduce delaying in work along with deducting ideal time in business operations (Kariv, 2013).
TASK 3
P5 Different promotional activities and channels to support the launch
Promotion is a most important tool while starting a new business venture as this is a
strategy that is helpful in making business activities popularise in order to attract more and more
customers towards company. Success of enterprise does not rely not only upon quality of
products and services but also it depend upon promotion strategies too. Like big size
corporations small scale ventures could not spend much financial resources on framing and
executing promotional strategies. Due to this reason, small firms always looking for inexpensive
methods of promotion channels. There are some techniques of promotion that helps an
entrepreneur in order to run and start a successful business enterprise. Kaleidoscope can choose
any of strategy and mode from mentioned tactics:
Personal Promotion: There are many tools and techniques that a corporation can avail for
advertise their business venture in direct and direct manner. Promotion is a method of interacting
and establishing communication with desired customers so that potentiality could be developed
in them. Kaleidoscope can use of any method among social media, emails, online marketing,
group discussions etc. by which it can interact with its future customer for making new enterprise
successful in marketplace.
Mobile Billboard: This is a modern and economic tool of promotion that can be use by
small as well as big size corporation. This technique comprises stickers, symbols and logos of
Kaleidoscope coffee bar. Company can launch a mobile application that should take orders
online. Due to this action, Kaleidoscope coffee bar can also increase their sales volume so that
success could bring early in corporation (Klotz and et. al., 2014).
Social Media: In today's world, there are various numbers of social networking sites are
available that are being use by more than one billion and this is a prominent tool because this
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connects numerous number of people. As wide number of people can be reached by taking
assistance of this tool. If a fascinating advertisement is developed and placed on any social
networking site then a sufficient range of people could get.
Blogging & New Articles: Nowadays number of blog and article readers has been
increased and by taking assistance of this statement company can place their ads on various
blogs and articles that are visible on online. This is a good method of making connection with
many persons at the same time.
Kaleidoscope is working on establishing footprints in market strongly in Manchester area
of UK and to hit this objective association can use many tools and methods from above
mentioned techniques. Only selection of good promotional method and implication of this is able
in making a business venture successful. so. It is a requirements of Kaleidoscope coffee bar, that
owner of this should choose a most effective tool of promotion in order to popularise venture
(Kuratko and Hornsby, 2017).
P6 Appropriate promotional activities plan for both launch and pre-launch
By applying a proper plan and proposal corporation can convert targeted customers in
buyers in shorter time duration. Right after setting a marketing plan and promotional activities
within enterprise, so it is required from business owners that an adequate plan for pre-launch and
launch activities should be planned in meeting set targets and objectives:
Pre-launch Promotion: Corporation can develop a pre-launch page on website before
introducing venture in marketplace. There are various tools and techniques of promotion mix are
present that provide aid in popularising Kaleidoscope coffee shop. As this firm is a new venture
so entrepreneur should popularise products and services of association among more people in
order to attain growth rate of corporation along with maximised profit margin. There are some
tool available that can be used by venture in order to make consumers familiar with company
products and services and by checking benchmark, clients can approach Kaleidoscope coffee bar
for their need and want satisfaction. To popularise company, entrepreneur has to build some logo
and symbol in order to make attraction of company more prominent. For pre-launch promo,
company has developed a tag line which is “Eat, Drink and Fun”. It is required from enterprise
that it should be more appealing at the time of creation of advertisement. This is a fundamental
process which should be taken in order to target those customers who have buying power for
purchasing coffee from Kaleidoscope coffee shops.
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Launch Promotion: At the time of launch, company should recall their target customers
about products and services of coffee bar. This aim should be attained by updating advertisement
on social media sites and to make updates in blogs and articles of corporation. Mobile billboards
are still fruitful in launch promotion. Kaleidoscope company can also take advantages from
internet tool like blogging, videos, advertising for hitting purpose of promotion. Promotion at
launch time is known as a significant function, this is the stage in which entity can make large
number of customers aware about its products and can generate more profits. Various media and
communication tools are there which can be utilise by organisation to make its target customers
inform and influence them to buy the same.
These are good quality processes that can be availed in recalling, branding and
reconfiguring position of new venture among consumers. This cation aids in enhancing and
evolving company in competitive environment (Morris, 2015).
TASK 4
P7 Itemised monthly cash budget for the pre-launch phase
To accomplish all task and business operations in limited and set financial budget, it is
required from corporation that they understand budget for entire year. Planned budget is
discussed as below:
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Year 2018 Q1 Q2 Q3 Q4 YTD 2018
Food Sales 39,587 41,525 41,585 42,855 1,65,552
Beverage Sales 18,650 13,650 14,349 15,049 61,698
GROSS SALES 58,237 55,175 55,934 57,904 2,27,250
Cost of Sales
Food 14,725 14,158 14,352 14,852 58,087
Beverage 6,685 3,252 3,852 3,852 17,641
TOTAL COST OF SALES 21,410 17,410 18,204 18,704 75,728
-
GROSS PROFIT 36,827 37,765 37,730 39,200 1,51,522
General and Administrative
Employee Salaries 15,008 12,589 13,025 13,858 54,480
Management Salaries 3,400 3,400 3,400 3,400 13,600
Employer Taxes/Benefits (15% Wages) 2,209 1,919 1,971 2,071 8,170
Workers Compensation (6% Wages) 1,104 959 986 1,035 4,085
Advertising 800 800 800 800 3,200
Bookkeeping 180 150 150 150 630
Credit Card Charges (1%) 582 552 559 579 2,273
Insurance 250 250 250 250 1,000
Legal and Professional Fees 100 100 100 100 400
Misc. Other 250 250 250 250 1,000
Office Supplies 175 175 175 175 700
Rent 3,200 3,200 3,200 3,200 12,800
Repair and Maintenance 300 300 300 300 1,200
Small Equipment 200 200 200 200 800
Telephone [phone]
Garbage 200 200 200 200 800
Utilities 1,200 1,200 1,200 1,200 4,800
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Total Gen. and Admin. (Fixed) 29,309 26,394 26,916 27,918 1,10,537
#REF!
NET PROFIT OR LOSS 7,518 11,371 10,815 11,282 40,986
SBA Loan 3,582 3,582 3,582 3,582 14,328
Cash Flow After Financing 3,936 7,789 7,233 7,700 26,658
Draw 4,000 4,000 4,000 4,000 16,000
Net Cash Flow (64) 3,789 3,233 3,700 10,658
Accumulated Cash Flow 3,725 6,958 10,658
Average Daily Sales / 22 days 2,647 2,508 2,542 2,632
P8 An appropriate legal form for the venture
When idea of launching new business enterprise then a proper structure for this should
be identified by entrepreneur in order to accomplish all tasks and duties in limited time period.
Government of United Kingdom has made a rule because of which every new firm has to make
legal entry by following legal structure as this action further aids corporation in getting
sponsorship for business idea. There are multiple categories in which legal structure can be
formed. Kaleidoscope is a venture that is dealing in cafe and restaurant industry in Manchester.
Here are some legal categories for multiple ventures that are stated as below:
Types of Legal Forms
Sole Proprietorship: This is defined as when a business enterprise is started by a single
entity with limited risk and profit. In this type of venture owner of firm is responsible for bearing
risk and to avail all profits that is generating by owner of organisation. Example of sole
proprietorship are carpenter, shop owner etc. Main purpose of starting this type of ventures are
catering need of self and family members.
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Partnership Firms: When two or more persons start a business venture for sharing profit
and loss upon a certain rate of sharing then it is called as partnership firms. These are also called
as large corporations which are made for making huge profit by capturing larger market share. In
this type of firms, profit and loss along with risk factors are divided among all partners. Main
flaw of this sort of business is that partners are responsible for all risks and uncertainty (Read
and et. al., 2016).
Public Sector: This organisations are those whose shares are allotted in public by initial
public offering in stock market and public have their interest through investing some amount of
money by purchasing certain number of shares. This type of corporation is divided into two parts
which are addressed as below:
1. Limited Company: When wide number of shares are owned by government of
public.
2. Private Limited Company: When larger number of shares are owned by a private
company then it is defined as private limited company.
From above mentioned legal structures, Kaleidoscope coffee has chosen sole
proprietorship because this venture is started an individual person. Business owner has plan to
convert this sole proprietorship into partnership as soon as sponsor is found for investment.
Change of legal structure depends upon number of persons whom are running business
operations (Robb and Watson, 2012). If firm will go for partnership business then it has to share
its revenues with the partner and this will decrease the profitability of enterprise so sole
proprietorship is an effective legal structure for firm.
CONCLUSION
This report is summarised as launching of a new venture is not easy as it consist many
task like competitor analysis, selection of legal procedures etc. there are many problems that a
business owner has to fought while operating business operations in marketplace. This report is
also concluded a study of human interest in any coffee shops in United Kingdom. To operate
business operations successful, it is required from business owners that it should possess some
sort of qualities and skills which are essential for making business enterprise successful even
more successful than business rivals.
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REFERENCES
Books & 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>.
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