Launching a New Venture - skylight cafe Assignment

Launching A New
Venture

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 A new venture identifying specific target markets and competitive analysis........................3
P2 Specific tangible and intangible resources that required for a new venture..........................4
TASK 2............................................................................................................................................6
P3 Produce a credible proposal to launch a new venture............................................................6
P4 Skills and capabilities required to launch a new venture.......................................................6
TASK 3............................................................................................................................................6
P5 Different promotional activities and channels for launching new venture............................6
P6 Develop an appropriate promotional activities plan for both launch and pre-launch............6
TASK 4............................................................................................................................................6
P7 Monthly cash budget for the pre-launch phase......................................................................6
P8 An appropriate legal form for the venture.............................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................6

INTRODUCTION
Launching a new venture is a complex process that involve number of interrelated
activities to be performed by the entrepreneur. Entrepreneur is an individual that come with new
and fresh idea to start a business with an aim to earn high profits. As business environment is
dynamic in nature which keeps on changing therefore, it is necessary to carry out the work
process accordingly. The report is based on skylight cafe that is going to launch in London, UK.
They will offer different types of food items such as Chinese, Italian, continental in order to
satisfy the needs and wants of customers. The report will highlight various types of skill and
capabilities that is required to launch a new venture. Apart from it, distinct types of promotional
activities that is carried to support the new cafe that has been launched.
TASK 1
P1 A new venture identifying specific target markets and competitive analysis
In contemporary time, opening a restaurant or cafe is trending as it is profitable and suits
lifestyle of customers in the target market (Simon and Shrader, 2012). Skylight cafe is launched
keeping in view of this aspect. It offers number of varieties of food that include Chinese, non
vegetarian, Italian, continental as well as beverage items. It is launched in mid place of London
so that it can be easily accessed by the consumers. It will be located in the area of 2500 square
feet at Peter street at London, UK. It has been taken on lease for 3 years so that initial start of
cafe could take place and do not face problem related to place. Finance is also required as a
important resource in launching a new cafe. Owner have to arrange significant amount of fund
by taking loan of €4,36,896 from bank.
The main purpose and aim to start this venture are as follows:
 To present high quality products to consumers.
 To gain continuous growth and development.
 To earn significant amount of profits.
 To be among best cafe in London.
Mission: “ To deliver high quality food items to their consumers by satisfying their
desires in affordable price.”

Target market segment: This is a essential decision that must be taken by entrepreneur
regrading choosing the target market. It provide the framework to formulate decisions
accordingly so that needs and wants of target people gets satisfied in conducive manner. There
are number of basis on which single market can be segmented that include depending on type of
customers, income level, gender, preferences and many others. Skylight cafe is targeting the
young generation as they are foodie in nature. This is a part of plan that must be properly taken
up by entrepreneur as all further decision will be in accordance to it. Therefore, proper attention
must be delivered to it (Scarborough, 2016).
Competitive analysis: There are number of competitors that are already present in
market place. Therefore, before staring a new business it is essential to analyse the strategies of
rivalries and make plans or decisions considering it. Little wonder cafe, blight cafe, regency cafe
are the competitors that may give a huge competition for skylight cafe. Thus, it is incumbent to
analyse the policies and strategies of all the rivalries as they have already earned high market
share. Skylight have to work with some uniqueness and creativeness in order to stand apart from
others in market place.
P2 Specific tangible and intangible resources that required for a new venture
To start anything new and fresh there are number of resources which are needed to
operate it in successful way (Robb and Watson, 2012). Similarly, to launch a new venture
entrepreneur require different type of resources that could satisfy the objective for which it is
constituted. There are number of resources which are present in environment hence, decisions
have to be constructed to deploy it and use it in optimum manner. New venture of cafe require
resources in relation to food items, beverages as well as services of tangible and intangible nature
that are described below:
 Tangible resources: It refers to the material that can be felt, touched physically. It
include number of equipments, tools, plant and machinery and other items. Funds are
consider most crucial resource as other material can be purchased by giving sufficient
amount of funds. To start a new cafe the tangible resources that are required involve land,
furniture, initial capital, electronic items for baking food items, refrigerator, oven and
many others. Hence, proper decision must be taken to make arrangement of these
tangible resources effectively. Other tangible resources involve interior designs, items

used in furnishing, number of employees that will be appointed in cafe other staff
members of different departments (Read and et. al, 2016).
 Intangible resources: It is opposite of tangible resources as it cannot be touched
physically. Hence, it involve all types of resources which do not exist in tangible way like
patent rights, trademarks, corporate culture, building customer relation. All these play a
significant role in carrying out particular business organisation. Skylight cafe will have
its own identity, symbol, brand and other attributes that in involved in this type of
resources. It is important for opening a new venture to build prospective relationship with
their customers and employees so that final aims could be attained in set period of time
(Curley and Formica, 2013). It is essential at initial stage to attract more and more
customers towards them and deliver high quality services so that they could be retained
for longer period of time. Entrepreneur will going to full-fill number of legal formalities
that is required to start a new business which involve developing a brand name, getting it
patent so that no other individual can make use of it.
From the above discussion, it has been concluded that there are number of resources that
is required to carry out the series of activities in effective and efficient manner so that positive
outcomes could be realised.
TASK 2
P3 Produce a credible proposal to launch a new venture
Planning is a initial step that involve number of steps that has to be taken to carry out
activities in corrective style. This is a starting step in which entrepreneur make decision
regarding number of important process which include quantity of capital required, resources etc.
It provide the basic framework on which future steps are based on it. Launching a new venture
require formulating proposal so that all actions must be in accordance to it. It deliver the correct
path which need to be followed in order to accomplish ultimate intent and objectives of the
business organisation. Therefore, to start a skylight cafe it is required to frame a prospective plan
which consist of number of relevant data or information that is described below:

 Executive Summary: Skylight cafe is offering varied foods products of different nature
that involve Chinese, Italian, continental, vegetarian and Non- Vegetarian. Apart from it,
there are beverages which involve shakes, juices, soft drinks (Morris, 2015). Description of Venture: An entrepreneur develops an idea of establishing a new cafe in
market of London, UK. Individual have taken the land on lease of 2500 square feet. The
location which is chosen in mid of the city where customers can easily approach and they
will not find any difficulty. Cafe provides attention on supplying goods at best quality of
services to customer so they could be satisfied with the performance and become their
regular consumers. Analysing the Marketplace: Before launching a new business it is required to perform
market analysis so that proper knowledge is known about the present conditions that is
taking place so that effective decisions could be made. There are several techniques that
are available through which market analysis can be performed, it include SWOT,
PESTLE methods that assist the entrepreneur to know about various factors that are
available in external business environment which pose a direct impact on functioning of
business (Baron and Tang, 2011). Financial Decisions: Finance is a basic resource that have to be optimally utilised so that
final aim could be earned. Skylight require lots of funds to run their business
successfully, for this budgets are prepared that involve how capital have to be allocated in
different sections.
 Setting up of Standards: In this, benchmarks are set by entrepreneur hence, standards are
defined properly so that actual work process could be conducted according to it.
Deviations could be identified so that corrective actions must be formulated.
P4 Skills and capabilities required to launch a new venture
Every individual could not start a new venture, there are some requirements that must be
present in entrepreneur to launch a business (Kuratko and Hornsby, 2017). There are some skills,
features, characteristics, knowledge and qualities that must be present in individual to become a
successful entrepreneur. As individual that is focused upon opening of new cafe there are
number of capabilities that must be possessed in order to start new venture in efficient mode.
There are different types of capabilities and qualities are require to launch a new venture. It is

necessary to observe, analyse and evaluate various kinds of factors that impacts on process of
launching a fresh venture. The owner have to build several qualities and earn needed knowledge
about the concept on which new product is based. It should be necessary to understand about
success of desired idea or thought so that an appropriate outcome can be achieved. This can be
done through putting more effective as well as efficient efforts by Skylight cafe to launch a new
venture properly and attain desired growth of business. Some of skills and abilities are required
that are discussed below:
Presentation of proposal: - This can be described as to generate better self confidence
and gain require knowledge about the particular idea or concept. It will facilitate to present an
effective as well as efficient presentation amongst desired people so that they get impressed and
convince to consider the concept for implementation (Bijker and et. al, 2012). Skylight cafe have
to generate an appropriate skills to present proposal of new venture properly to gain desire result.
Optimistic and visionary: - This can be explained as to have an efficient employees who
are able to conduct an accurate method to achieve pre determined goals or objectives. It is
necessary for the Skylight cafe to recruit an effective staff member having an appropriate ability
to make desired visions or targets and set proper direction to put required efforts. This will helps
to attain desired outcomes and complete setted goals on needed period of time.
Must contain leadership skills: Leaders are consider building block of any business
organisation as they have to coordinate the activities of each and every individual so that final
purpose and objectives could be realised (Klotz and et. al, 2014).
Facing Risks: Risks are consider part and parcel of business life, thus it is necessary to b
prepared well in advance about the risks that may come across while carrying out operations and
transactions. Owner of Skylight Cafe have to make plans for their contingencies so that overall
growth do not get hinders.
TASK 3
P5 Different promotional activities and channels for launching new venture
It is necessary to carry put the promotional function in order to promote the product and
services of business in effective way so that more and more customer are attracted towards it.
There are several activities and strategies that is required to be formulated so that proper
promotion function can be performed (Burns, 2017). Owner of Skylight have made framed
several tools and techniques so that proper promotion function can be performed. Some of the

strategies are adopted by owner considering the requirement of modern time are described
below: Blogging and articles: It is consider modern method through promotion activity is
performed by posting relevant information in articles and blogs. As Cafe target young
generation, hence, this method is consider most suitable. Use of social media sites: Making use of social media sites that is most trending in
modern days. Instagram, Facebook, twitter are some of the ways through which
promotional activity can be carried out. Skylight can post information about their new
arrival on Instagram so that large portion of generation get information about this. Promotion through personal factor: this is a old method of promotion that can be
adopted by small and medium sized business organisation. Under this, the member of
business organisation himself visit to interact with people and render information about
the new openings (Caselli and Negri, 2018).
 Use of Mobile Billboards: In this type of method of promotion distinct type of symbols,
logos, punch lines that can be posted at various place in order to attract the interest of
customers towards it. This can also be adopted by new cafe.
From the above discussion, it has been observed that there are number of options that are
present with the venture. Owner have to examine all these alternatives including budget available
so that most appropriate option can be selected. Blogging, articles and promotion through social
media can be adopted. As the cafe is newly launched therefore, proper attention is required in
this regard so that target customers can be properly focused in order to work in accordance to set
objectives and purpose. Basically, promotions are concentrated to develop interest among
customers so that proper outcome could be realised. This is very much important to examine all
options correctly so that best and most effectual one could be adopted.
P6 Develop an appropriate promotional activities plan for both launch and pre-launch
Plans need to be drawn in corrective way so that all actions that is included in
developing appropriate promotional activities is carried out in effective and expeditious style.
Action plans have to be created at pre and post launch of promotional activities so that set

objectives can be accomplished in corrective manner (Fernhaber and Li, 2013). More description
are as follows: Pre- Launch promotion action: This is executes before carrying our promotional
function hence, decisions have to be taken in regards of analysing all options in
consideration of its benefits so that best method can be selected for the same. Skylight
cafe have formed tag line that says “Healthy Food Best food”. It is the responsibility of
owner to frame such strategies so that initial start must be effective in nature. Apart from
it, budgets are also defined well in advance so that all activities can be conducted
adhering it.
 During Launch time: In this phase, plans that has been set out before carrying out the
promotional activity is implemented in practical mode at this stage. In this customer are
focused upon properly and effectively in order to induce them to visit that place. As
discussed above Skylight have adopted Blogging and articles as well as social media sites
to promote their business. Here, proper attention is also given that complete budgets must
be allocated as according to the set plans (Hmieleski, Cole and Baron, 2012).
TASK 4
P7 Monthly cash budget for the pre-launch phase
Below is a cash budget that has been formulated to launch a new cafe in London city,UK:
Year 2015 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
Year 2015 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
P8 An appropriate legal form for the venture
There is some systematic structure that need to be followed by new venture so that
smooth functioning could take place (Kariv, 2013). UK government have drawn some norms and
policies that need to be taken into consideration while carrying the overall work process. They
have drafted number of legal rules and regulations that must be adhere by cafe Skylight. Non-
compliance of it will result in generation of several problems in front of them. Different types of
forms of venture are illustrated below: Sole Trader: In this, individual have their own business and take all decisions related to
it. He is responsible for carrying out all types of activities that is required to run the
business in successful manner. All small scale organisation is involved in this category. Public organisation: It is a government based organisation which is totally focused upon
serving quality services to people of society. It is operated and under control of
government and their basic aim do not involve earning high profits but to serve quality
services to people.
 Partnership Form: This is another method to carry out the business organisation, in
which two or more individuals come together to run the single business. It is governed by
partnership act that involve all guidelines that need to be followed while running it.
It has been observed that Skylight cafe have launched its cafe while considering all rules
and regulation that have been set by government so that business activities is perform in smooth
manner.

CONCLUSION
From the above report it has been concluded that ventures play a important role in the
society as it serves to satisfy the needs and wants of people. Individual that come up with new
and innovative idea to run business is known as entrepreneurs. The report have thrown light on
launching of a cafe in London city that offer number of varied food products to their customer. It
is necessary to utilise all resources that is necessary to start a new venture. There are number of
promotional activities that are also taken up to promote the existing business. All this is
considered by owner to achieve set objectives and aims in correct time period.
REFERENCES
Books and Journals
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