Starting a New Business Venture

This assignment delves into the crucial aspects of establishing a new business. It emphasizes the importance of thorough market research before venturing into any new project. The document outlines various requirements for starting a business and cites relevant books, journals, and online resources for further exploration.

Launching A New
Venture

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 A new venture identifying specific target markets and competitive analysis........................1
P2 Specific tangible and intangible resources that required for a new venture..........................2
TASK 2............................................................................................................................................3
P3 Produce a credible proposal to launch a new venture............................................................3
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............8
TASK 4............................................................................................................................................9
P7 Monthly cash budget for the pre-launch phase......................................................................9
P8 An appropriate legal form for the venture...........................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Launching a new business is considered as the most important task for an individual since
this process requires a specific strategy, skills and risk management capability. Thus, it is not an
easy task because at that time, an entrepreneur faces lots of challenges and issues to establish his
own venture in competitive market. This report is based on Cafe cappuccino which is a new
venture situated in London. This cafe provides different varieties of coffee flavour including
Frappé, cafe Americano, Latte, Iced coffee, Blonde white, bakery products, pastries, sandwiches
and hot breakfast at reasonable price (Baron, 2011). For them, it is required to analyse market
condition, customer’s demand or expectation, competitive organisations and social impacts on
new venture. This report is discussing about target market and competitive analysis for new
venture, uses of tangible and intangible resources plus requirement of creative ideas as well as
skills. It is also includes uses of different promotional tools for introducing its new services in
market, uses of monthly budget to manage income and expenses and at last, impact of legislation
or laws for a new venture.
TASK 1
P1 A new venture identifying specific target markets and competitive analysis
Cafe cappuccino is coffee store which providing their services to customers who is found
of coffee. Mostly youngsters are found of coffee to get relief from their struggling life, while
reading novel, main when someone want to spend time with their loved once or friends. Demand
of their coffee is increasing day by day so a new shop named as cafe cappuccino is introduced in
Manchester streets. Along with coffee they are serving some more products also like tea,
cookies, cake, pastries and many more. Innovative product which same venture bringing in
market is flavoured coffee.
Entrepreneur started a new coffee shop with their innovative product which is named as
Cafe Cappuccino store was opened in 23000square foot land at Manchester Street. For opening
store there is requirement of place so owner of same venture hire place on lease of 3 years if in
future their will be requirement of expanding time then they will (Tang, 2011). Funds it is blood
of business without this not company can sustain in market as well cannot generate revenue.
Thus, fund is determined for start-up a new business is £ 3,50,684 to £3,52,684.
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Objectives: one year operation objective of this is given below:-
 growth and development of business.
 Turn profit from the initial month activities.
 Want to be nominated as best Coffee shop in United Kingdom.
Mission: Cafe Cappuccino mission is to take place in market by the help of their unique
products they are serving. As well provide pleasant atmosphere to customers, quality product
which is different from others (Bijker, 2012). Mission is simply that where company want to be
in future and Cafe cappuccino want to become top coffee store of United Kingdom. This is
possible with their flavoured coffee they are serving.
Target Market: for establishing a business there is requirement to set target market first
to who they want to sell their products. There are several market segmentation and according to
that customers are targeted so Cafe Cappuccino is target every age people because everyone
want to drink coffee. Instead of this segmentation is done on the basis of age, income, gender,
taste and preferences. In general it can be said that target market are customers to who Cafe
cappuccino want to sell their products.
Competitive analysis: Starbucks is major competitor of cafe cappuccino and which is
giving competition to every small company of coffee in the United Kingdom. Starbucks is strong
organisation because they have good financial condition. For sustain in this competitive business
environment Cafe cappuccino have to establish their unique selling price through which they can
compete with other enterprises of same sector. New organisation have to face several situation as
well problems firstly they have to grab customers of existing market and then convert them into
their loyal. Firstly entrepreneur have to do competitor analyse and after that do planning and
make strategies for all the activities.
P2 Specific tangible and intangible resources that required for a new venture
For any new venture, any effective and efficient resources requires so that they can
manage and maintain the business operations. Cafe Cappuccino is one of the best and famous
coffee shop in the United Kingdom (Burns, 2017). This cafe is providing various kinds of
products regarding foods and varieties of coffees so that number of customers can be attracted
towards organisation. It is very easy to met opting ingredients as well as best quality of products
and services in an effective manner. Resources are very important things that necessary to
manufacture of particular products and service within an organisation. There are two types of
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resources that can consider for Cafe Cappuccino shop as they will support in maintaining for
example tangible and intangible resources. These are as followings such as;
Tangible Resources: In this defined that these resources generally consider various kinds
of essences such as physically plant, equipments, raw material etc. every organisation focus on
all visible that can utilise the direct monetary resources measurement as this consist financial as
well as material resources for running business organisation (Caselli, 2018). As per the new
venture of Cafe Cappuccino, it is a coffee shop that serving food and beverages in the market. In
this included tangible resources such as equipments, tools and techniques, machinery, land and
capital and many more to run the organisation in an appropriate manner. Tangible resources
always brings various benefits within the firm.
Intangible Resources: In this consider several intangible resources that necessary for
organisation as in this included patents, trademarks, consumer relationship, goodwill, corporate
culture and image or reputations and the business operations that play an important role. It is not
included in any physical form and IP also consider in intangible assets such as copyrights,
patents, methodologies and trademarks which are essential for analysing and identifying the
brand of particular company. These are very important components that helps in brand
recognition, reputation, attributes of employees, serving activities or functions etc. in the Cafe
Cappuccino is focus on the employees attributes regarding customers as how they are serving to
its consumers, their behaviours, traits, quality of products and services to satisfy their needs and
wants in an effective manner. It will support in achieving goals and objective of the company in
better ways.
Therefore, Resources are must be required for every kind firms as large or small that
provide the opportunities to achieve long term and short term goals or objectives by considering
them in an appropriate manner (Negri, 2018). For proper branding and effective plan, it must be
required to implement that plan and design the entire layout including all elements of an
organisation. It is very supportive in setting the value of particular products and services.
TASK 2
P3 Produce a credible proposal to launch a new venture
For launching a new venture, it must be compulsory to produce an appropriate plan for
achieving set goals or objectives in an effective manner. Plan should be made in proper way that
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can break as well as grab opportunities to build good organisation and achieve competitive
advantages. It will support in creating new potential customers. Proposal is essential that helps in
meeting with organisational mission, visions as well as objectives in an effective manner. In this
consider the products and services which are offering by enterprises so that more customers can
be achieved in an effective manner (Fernhaber, 2013). For any successful organisation, proposal
plan is required, same in Cafe Cappuccino shop where effective plans are needed for new
venture which can help them in attaining goals or objectives and meet the desired outcomes. It
can be understood by such business proposal plan which is as following:
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Executive Summary Cafe Cappuccino is small or new venture which provides varieties of
coffee flavours in the market. Apart from this, they provide pasties,
beverages and other bakery products.
Description about
company
Entrepreneur is going to launch a new venture which is Cappuccino shop
that serves different types of coffees, named as Cafe Cappuccino. This
firm has established in London, UK. It operates the area for new venture
that is 2300 square feet near Big Ban. Owner has hired that place on lease
or rent for running business (Hmieleski, 2012). This place is the best for
generating higher revenues or incomes in better manner.
Market Analysis For running the organisation, owner is trying to expand his business at
various places so he is focusing on market trends and analysis. In this,
marketers can take support from study or examining different
environmental factors by conducting SWOT and PESTLE so that
effective strategies can be made in business organisation and competitive
advantages can be achieved.
Market strategy The organisation has its aim to expand the business but for this, they
require for establishing successful enterprise in the market of London as
well as among competitors. It is necessary to adopt the best marketing
strategies for developing the business so Cafe Cappuccino is using social
media, internet and trade shows for promoting and expanding the
business at several places.
Financial projection It is the most important aspect for every successful organisation as it is
an essential element for them. In case of new venture of Cafe
Cappuccino, the fund has generated for operating the organisation as they
decided their capital limits to run the business (Cole, 2012). Company
has to manage its financial flows and capital for utilising it in an effective
manner.
Benchmarks It is considered as the fundamental and future performance that set by
organisation. It is helpful component that support consumer with
indicating that they are performing as per set standard of an organisation.
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It is the best method for Cafe Cappuccino to analyse about comparison of
an industry.
P4 Skills and capabilities required to launch a new venture
For running an organisation to achieve success in better manner, they should have proper
knowledge, skills and abilities which support in meeting desired outcomes of an organisation as
well as new venture (Baron, 2012). Here are various traits, skills and qualities in the firm which
must be required for achieving goals and objectives as well as attain set targets in an effective
manner. Entrepreneur of Cafe Cappuccino should acquires various skills and these are as
follows;
Project Management: Every business firms introduce in several forms as well as vital
sizes who are able to maintain as well as managing entire business and its operations in effective
ways. Cafe Cappuccino also concentrate on maintaining the entire business activities.
Leadership skills: This skill is very necessary for launching a new venture as in this
manager stimulate and motivate to the staff members regarding achieving goals or targets.
Organisation's success can be get through increasing productivity and morale of workplace.
Proper presentation: This is also necessary to launch the business in an appropriate
manner on front of people as well as attractive proposal of products and services or firm itself.
With the help of this, an entrepreneur can share their views, ideas and make unique or effective
position in the competitive worlds.
Optimistic and Visionary: Entrepreneurs must be optimistic and self confident with his
ideas and business that he will achieve its set targets in limited time period. They must be able to
face any kind of situations and risks while running ans organisation (Kariv, 2013). Entrepreneurs
also focus on achieving vision so that firm can survive in competitive environment. For Cafe
Cappuccino shop, they require to develop skills or abilities for running an organisation and get
succeed.
TASK 3
P5 Different promotional activities and channels for launching new venture
Promotion is one of the most important part of marketing mix which support in finding
best suitable way to promote particular products and services in an effective manner. For the
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development of new venture, it is necessary to adopt the best strategies for promoting the
business in the market place. Any successful organisation is not only based on effective goods
and services but also depends on appropriate promotions as well as marketing activities. Large
scale businesses generally do the same as they just focus on more advertisement and promoting
goods or services by adopting several promotional tools or techniques (Klotz, 2014). On the
other side, small-scale or new ventures spend little funds for promotional activities because of
avoiding extra expenses and they look for cheap or inexpensive promotional tools and channels
in the market place. There are numbers of techniques which helps in introducing as well as
launching new business among competitors. Cafe Cappuccino shop is required to undertakes
various promotional practices and channels for promotions as following:
Use of social media for business promotion: There are numbers of ways to promote
business by adopting the method of social media as in this included YouTube, Twitter,
Instagram, Facebook, LinkedIn, Emails and other websites for the purpose of promoting the
enterprise. These are modern tools and techniques which are necessary for new firms as they
helps in creating huge market awareness among competitors and attract more audiences towards
businesses.
Blogging and Articles: It is another important aspect and modern promotional technique
for creating market awareness. Many organisations believe in describing products and services
on blogs and article form so that numbers of customers can be attracted. This is an essential for
new ventures because well written article will be helpful in creating customers and advertising
the projects in an appropriate manner (Kuratko and Hornsby, 2017). Cafe Cappuccino can use
this tool for market awareness.
Mobile Billboards: This is also another important aspect for promoting business as it is
modern advertisement method and can be several channels or modes for providing more
information regarding business and its products. Cafe cappuccino shop can consider various
elements in mobile billboard such as Stickers, logo and tag line of this cafe.
Personal promotions: individual can advertise and use promotional tools for their
business as direct and indirect. In this consider appropriate communication tool for promoting
new venture, Cafe cappuccino can promote the plan with the helps of interaction at social place,
group meetings, discussions, email, social media conversation as well as activities etc. an
creative and effective punchline of the company can also helpful for achieving success.
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Therefore, Cafe Cappuccino shop is focusing on effective and positive establishment of
business in London. So they are planning to promote the business in the market place (Morris,
2015). For these kinds of businesses as restaurants and cafes, numbers of methods such as social
media ads, Fashion and food articles, mobile billboards linked with tag lines which will support
in meeting desired outcomes and achieve targets.
P6 Develop an appropriate promotional activities plan for both launch and pre-launch
Every firms wants to attracts numbers of customers towards organisation as they need to
make an appropriate plan so that potential targets can be achieved. Company can launch a new
venture by promoting it through marketing plans and promotional activities in the business
enterprises. This is a next phase where organisation prepare proper plan for launching the
business including pre-launch and launch promotion to achieve set goals or targets in effective
manner.
Pre-launch Promotion: in this, company prepare pre-launch page as well as website
while introducing new business venture as in this included several techniques and channels for
promoting products and services (Read, 2016). Promotional mix must be consider in this as
organisation requires to create awareness among people regarding particular goods and services
of the product. Here are various tools or techniques that involved in this such as mobile
billboards, email strategies, advertisements , blogs and articles and many more promotional tools
for providing information and make aware to targets customers. Cafe Cappuccino has generated
its punch line that is “Enjoy Coffee with different taste” and used logo for the purpose of pre-
launching of venture.
Launch promotion: It is concern with recall to persons towards products and service in
an effective manner. It is generally depends on the updates of social media, posts as well as
various activities which support in achieving goals or objectives. Mobile billboards also very
effective and helpful tool for this as well. On the other side, organisation use number of
promotional tools or techniques in Cafe Cappuccino such as advertising, blogging, YouTube,
LinkedIn and many more media or tools for promotions.
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TASK 4
P7 Monthly cash budget for the pre-launch phase
It is necessary to examine the budget of entire planning of new venture for the purpose of
accomplishing objectives and goals within a limited amount or capital (Robb, 2012). Here is
defined a cash budget which are mentioned below;
Year 2015 Jan Feb Mar April May
Food Sales amount 42,152 42,563 43,526 43,568 44,124
Beverage Sales 19,751 12,451 12,456 13,452 14,528
GROSS SALES (Total) 61,903 55,014 55,982 57,020 58,652
COGS
Food 14,525 14,046 14,364 14,377 14,561
Beverage 6,515 3,113 3,114 3,363 3,632
GRAND TOTAL 21,040 17,159 17,478 17,740 18,193
GP 40,863 37,855 38,504 39,280 40,459
General and
Administrative
Workers Salaries 15,476 13,754 13,996 14,255 14,663
Management Salaries 3,400 3,400 3,400 3,400 3,400
Employer
Taxes/Benefits (15%
Wages) 2,265 2,058 2,087 2,119 2,168
Employees
Compensation (6%
Wages) 1,133 1,029 1,044 1,059 1,084
Advertisement 800 800 800 800
800
Bookkeeping 150 150 150 150 150
Credit Card Charges 619 550 560 570 587
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(1%)
Insurance 250 250 250 250 250
Legal and Professional
Fees 100 100 100 100 100
Misc. Other 250 250 250 250 250
Office Supplies 175 175 175 175 175
Rent 3,200 3,200 3,200 3,200 3,200
Repair and
Maintenance 300 300 300 300 300
Small Equipment 200 200 200 200 200
Telephone [phone]
Garbage 200 200 200 200 200
Utilities 1,200 1,200 1,200 1,200 1,200
Total Gen. and Admin.
(Fixed) 29,867 27,766 28,062 28,378 28,876
NET PROFIT OR LOSS 10,996 10,089 10,443 10,901 11,583
SBA Loan 3,582 3,582 3,582 3,582 3,582
Cash Flow After
Financing 7,414 6,507 6,861 7,319 8,001
Draw 4,000 4,000 4,000 4,000 4,000
Net Cash Flow 3,414 2,507 2,861 3,319 4,001
Accumulated Cash
Flow 5,921 8,782 12,101 16,102
Average Daily Sales /
22 days 2,814 2,501 2,545 2,592 2,666
June July Aug Sept Oct Nov Dec YTD
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2013
44,325 44,658 45,210 45,325 46,251 46,325 47,125 5,35,152
15,574 15,487 16,421 16,251 17,452 17,245 17,845 1,88,913
59,899 60,145 61,631 61,576 63,703 63,570 64,970 7,24,065
-
14,627 14,737 14,919 14,957 15,263 15,287 15,551 1,77,215
3,894 3,872 4,105 4,063 4,363 4,311 4,461 48,806
18,521 18,609 19,025 19,020 19,626 19,599 20,013 2,26,021
-
41,379 41,536 42,606 42,556 44,077 43,972 44,958 4,98,045
- - - - - - - -
14,975 15,036 15,408 15,394 15,926 15,893 16,243 1,81,016
3,400 3,400 3,400 3,400 3,400 3,400 3,400 40,800
2,205 2,212 2,257 2,255 2,319 2,315 2,357 26,618
1,102 1,106 1,128 1,128 1,160 1,158 1,179 13,309
800 800 800 800 800 800 800 9,600
150 150 150 150 150 150 150 1,800
599 601 616 616 637 636 650 7,241
250 250 250 250 250 250 250 3,000
100 100 100 100 100 100 100 1,200
250 250 250 250 250 250 250 3,000
175 175 175 175 175 175 175 2,100
3,200 3,200 3,200 3,200 3,200 3,200 3,200 38,400
300 300 300 300 300 300 300 3,600
200 200 200 200 200 200 200 2,400
150 150 150 150 150 150 150 1,800
200 200 200 200 200 200 200 2,400
1,200 1,200 1,200 1,200 1,200 1,200 1,200 14,400
29,256 29,331 29,784 29,768 30,416 30,376 30,803 3,52,684
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-
12,122 12,205 12,822 12,788 13,661 13,596 14,155 1,45,361
3,582 3,582 3,582 3,582 3,582 3,582 3,582 42,984
8,540 8,623 9,240 9,206 10,079 10,014 10,573 1,02,377
4,000 4,000 4,000 4,000 4,000 4,000 4,000 48,000
4,540 4,623 5,240 5,206 6,079 6,014 6,573 54,377
20,643 25,266 30,505 35,712 41,791 47,804 54,377
2,723 2,734 2,801 2,799 2,896 2,890 2,953
P8 An appropriate legal form for the venture
When start a new venture, it is an essential for determining and deciding the business
structure as UK government has formulated several legal entities and legislation that must be
followed by every firm. Here are some legal forms of ventures such as;
Sole Proprietorship: It is generally concern with individual owner for the enterprises as
well as small businesses who is responsible for operating and managing business activities in an
appropriate manner (Watson, 2012). It is a simple and inexpensive procedure that support in
create a basic owners report. The drawbacks is that individual liable to manage the business.
Partnership firms: It is also a form in which two or more individual come to start a new
venture and handle the business operations by bringing resources such as financial and physical
resources. The drawback of partnership is that partners are responsible for losses and
uncertainties.
Public sector: This is generally functioned as well as owed by the government and shares
of businesses are hold by publicly (Simon and Shrader, 2012). It can be categories by two types
such as public and private limited where shares operated by government and private owner as per
the nature of business for the purpose of gaining financial assistance.
Therefore, Cafe Cappuccino has adopted the solo legal structure in which they are
operating their business activities and functions
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CONCLUSION
From the above assignment it has been concluded that new ventures contribute huge
amount in development of economy. As well it increase competition and bring rapid changes in
business environment. An enterprise have to maintain balance between two type of elements
which is tangible and intangible both. For running business in smooth way which assist in
generating profit there is requirement of proper skills and knowledge related to company
working. Their is requirement of lots of things for starting new business which is given above in
the project. So, main is that before establishing new venture proper market research must have to
be done.
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