Launching a New Venture

You are a self-proclaimed entrepreneur who has overcome many hurdles to be finally in a position to launch a new venture

Launching a New
Venture

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Investigate and explain a new venture identifying specific target markets and undertaking
competitive analysis....................................................................................................................1
P2 Determine specific tangible and intangible resources that would be required for the launch
of a new venture..........................................................................................................................2
P3 Produce a credible proposal to launch a new venture............................................................4
LO2..................................................................................................................................................5
P4 Assess the skills and capabilities required to launch a new venture and how they are
acquired or developed.................................................................................................................5
LO3..................................................................................................................................................6
P5 Explain different promotional activities and channels that will support the launch and
justify their choice.......................................................................................................................6
P6 Develop an appropriate promotional activity plan for both launch and pre-launch..............7
LO4..................................................................................................................................................8
P7 Produce an itemised monthly cash budget for the pre-launch phase of the venture and the
first 12–18 months preceding launch..........................................................................................8
P8 Suggest an appropriate legal form for the venture stating why it has been.........................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Launching a new venture are the business ideas which are needed to be introduced by an
entrepreneur. It is only possible in that respective situation where new innovative ideas and plans
can be developed through which new customers can be attracted. The main area which is needed
to be focused by management is related with market research which plays significant role in it, as
it will directly allow the business to identify about requirements of public at large. The present
report is based on “New Organic Food Products” which is a completely a new venture being
incorporated in the premisses of London.
In context of the file, several topics will be explained which will be related with project
such as different resources required at the time of launching new products. Skills and capabilities
will be determined which can allow to bring positive impact. There will also be the inclusion of
new tactics which can be effective for conducting promotion. In addition, budget will be
prepared.
LO1
P1 Investigate and explain a new venture identifying specific target markets and undertaking
competitive analysis.
Venture idea
“New Organic Food Products” is a newly formed venture which has started its business
within the premisses of London, UK. The major motive of venture is to provide various number
of products like Organic Ice-cream, Chocolates and many more. Company has been already
dealing in different part of UK, where they have received positive response (Santos, and et. al.,
2015). The liking from customers is allowing the company to start its business within London
where market can provide effective result. After having the huge success in the market for
organic product, it will be important to introduce some of the interesting product which is related
with chocolates and ice creams.
It will be crucial for entrepreneur, to collect all of the necessary information which can be
beneficial for them to launch a new product within the so that success can be obtained. Even
entrepreneur has decided to expand its business with the help of partnership form where his
friends have been already working since long time period. This will enhance the probability of
attaining the success by introducing the concept within the market. For the purpose of
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performing business activity, entrepreneur has bought new area which is around 2000 sq. ft in
London. The required amount of fund is almost 355000 – 357000. It can be easily done by
taking the help of partners, loan is also the option.
Objectives: Entrepreneur has agreed by having proper consent to develop are SMART
objective which has been discussed below: Specific: Try to capture the market in London for attaining the goals. Measurable: Focusing on market capture around 50%. Achievable: Different types of organic products can be offered (McKelvie, Wiklund and
Brattström, 2018). Relevancy: It has already developed its presence within other part of UK.
 Time Bound: Selected time period to attain the goals is around 10 months.
Target market:
The main area which is needed to be target in present scenario is the who is focusing on
the purchase of organic products as compared to other food products. Here, it will be necessary
for New Organic Food Product to conduct proper research which will help them to determine
about the future sale of a company. Here, people who have been staying within London has been
classified into three category i.e., Demographic, geographic and psycho-graphic. As per the
suitability of the market, entrepreneur has decided to target geographic segmentation where
higher number of people are living and who can purchase the product.
SWOT Analysis on Product
Strength Weaknesses
Organic product will allow to develop
awareness within the environment.
Here, higher prices of the product can create
lots of issues.
Opportunities Threats
Contribution can be easily given to change
dietary behaviours
Lack of controls on improving the application
of contract (McGee and Peterson, 2017).
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P2 Determine specific tangible and intangible resources that would be required for the launch of
a new venture.
Whenever any of the organisation launches any of the new product, then in that
respective situation, they are needed to to take the help of number of resources which can allow
the company to take effective decision. Here, resources are classified into two different parts and
they are tangible and intangible. In context of New Organic Food Product, they provides
different food products such as chocolates, Ice-creams and many more. Some of the resources
which can be essential are:
Tangible resources- This are the most important resources which can been seen as they
are physically present for the purpose of providing there benefits to the venture. There are
number of resources in it (Penrose, 2017). fox example: food items, furniture, employees and
many more. Below there are some of the important tangible resources mentioned which can be
effective in obtaining the result. Physical resources: This are the most important resources which can be effective for
New Organic Food Products. It can be one of those resources which can allow to operate
business functions properly. This types of resources are essential to have proper space for
the store from where business activities will be operated. This will allow to distribute
different types of food product in the market.
 Human resources: It includes the employees who has been performing the business
activity within the market for the purpose of accomplishing the goals. The support of
human resource can only allow to meet out the requirement of physical resources. While
talking about New Organic Food Products, there management is required to hire skilful
employees who can give opportunity to hire around 50% of the market. Technological Resources: It is also among one of the tangible resources which can be
effective in performing any of the work in required manner. It is essential for new venture
to take the help of different technology which can easily allow to attain the goals in
easiest way. In context of New Organic Food Product, it will be essential to use some of
the technology through which quantity of waste material can be reduced to prevent
environment (Read, and et. al., 2016). It will give better opportunity to do effective
marketing through which targets can be achieved within time period of 10 months.
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Intangible resources – This are those form of resources which can be effective for
business organisation. Although, it cannot be seen but management can easily feel about it. This
directly or indirectly allows to uplift the standard of the company. Some of the types of
intangible resources are:
 Customer lists and relationships: It is necessary for any of the organisation to
understand that developing the customer relationship plays the crucial role. In context of
New Organic Food Product, entrepreneur is needed to develop his/her relationship within
the market so that goodwill can be developed. It will help to develop its presence in the
market of London.
 Software: It is among one of software which is essential because it will allow to
determine about every single activity which is being conducted within the market. Even it
will give idea to New Organic Food Product that which segment of people they are
targeting the most through which effective results can be obtained (Cavusgil and Knight,
2015).
P3 Produce a credible proposal to launch a new venture.
In present scenario, it is essential for the entrepreneur to take a proper consent with there
business partner to determine about the actual expectation and targets which they are willing to
attain through New Organic Food Product. It is essential to understand that proper guidance and
suggestion should be taken for obtaining effective result. Below, there is the discussion of
credible proposal to launch a new venture.
Title: “New Organic Food Product”, launching the food services which are composed of
organic products.
Overcome from Problem: In present scenario, there are number of organisation which
has been providing its services where their food products are not as healthy as required. Organic
Food Product will allow to consume healthy food products which can be beneficial for health.
Once company will start to sell the organic food product within the market, they will be enable to
attract more number of customers who are health conscious. It will also allow the company to
distribute its product to those people who are not able to eat some of the product which are not
healthy for life but, with the help of New Organic Food Product this problem can be solved
easily.
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Final proposed new product/service: The new product will be Organic Chocolates and
Ice-creams. It has been found that still there are number of company in UK who has not
developed this respective concept in the market. If New Organic Food Product will be able to
introduce all of the work in a systematic manner. There are number of chocolates in the market
but they create problem for health conscious people. In case of New Organic Food product, they
will give extra benefit to the public as they will be able to consume the chocolates which will
even be healthier for the people.
Time Planning for Your New Product Services: It is necessary to understand that
proper planning should done by New Organic Food Product. Here, company will have to decide
different stages and for effective planning. It will give idea to complete the work on specific time
period (Douglas, 2017). As it is complete related with organic product so New Organic Food
Product will sell their chocolates product throughout the year whereas ice cream will be mainly
targeted in the time phase of summer months specially.
Pricing Planning: It is necessary to understand that Organic Food products are always of
high prices as of expenses which it includes. In the same manner, even New Organic Food
Product will distribute its product at high pricing system where product will be sold at high
prices as compared to other food industry. The main reason for New Organic Food Product to
sell their product at a higher price because the manufacturing cost within organic product
increases automatically which do not allow to sell the product at cheaper price so it will be
essential to sell the product at higher price for earning the profit.
Analysis of Competition: For the purpose of analysing the competition within the
market, it will be necessary to take the help of benchmarking. It is because comparison between
two rivalries can be done easily in it. If company like New Organic Food Product will be able to
do comparison, then they can easily try to identify that what are the main area where they are
required to work so that attaining the goal can become easier task.
LO2
P4 Assess the skills and capabilities required to launch a new venture and how they are acquired
or developed.
In any of the organisation, it will be essential to understand that skills and capabilities
always plays the crucial role for entrepreneur. At the time of starting venture, it is important for
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New Organic Food Product to have proper skills and talent so that result can be obtained (Hill,
2015). Some of the skills are:
Management skills: It is necessary for entrepreneur to understand that they must be able
to manage and control all of the activity. It is necessary because it will allow them to utilise all of
the resources in best possible manner. In context of New Organic Food Product, if there
entrepreneur will be able to manage all of the work then there will be higher possibilities that
resources will be utilised for attaining the goals.
Decision making skills: It will be crucial for the entrepreneur of New Organic Food
Product because making an effective decision plays the most important role. Effective decision
will allow the entrepreneur to take those decision through which employees can perform there
part of work easily. This types of skill can be improved if entrepreneur is able to deal with
complex situation.
Leadership skills: Any of the entrepreneur should have some of the leadership skill
because it directly or indirectly allow them to make there sub-ordinate to understand that how
they are needed to perform any of the task. Entrepreneur of New Organic Food Product can
easily acquire this types of skill with the help of effective communication, maintaining vision an
mission towards the objectives (Kuratko and Hornsby, 2017).
Risk taking ability: It is essential for New Organic Food Product to understand that they
are new within the market. If company is new within the market, they must be able to take some
of the risky decision through which success can be attained. This types of decisions can be taken
if company is able to deal with some of the complex situation.
Research Skill: It will be important for the entrepreneur of New Organic Food Product
that they must have the skill of research. It is because, there are number of situation where
changes are required within the business and in that particular situation, it is essential that
research plays the most significant role. This particular skills can be developed with the help of
online survey, journals and many more.
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LO3
P5 Explain different promotional activities and channels that will support the launch and justify
their choice.
In order to provide information among the customer, it will be necessary for New
Organic Food Product (NOFP) to promote their product within the market. Some of the ways of
promoting the products within market are discussed below: Social Media: It is the most popular form of business which can be used by NOFP. It
will allow them to find different customers from different age group who are interested
within the organic product (Barringer, 2015). This form of platform includes Facebook,
Instagram and many more. Mobile Billboards: Here, different punch lines, logos and many more required to be
prepared because it will directly attract the customers towards the company. It is an less
expenses form of promotion.
 Personal promotions: It is this form of promotion through which customers can be
attract to purchase the product of a company. Here, employees of NOFP will try to
promote product with the help of pamphlets, brochures and more. Here, trust among the
employees can be developed easily.
 Hosting Event: It is also among one of the popular form of doing promotion. Here,
NOFP can be beneficial from this types of promotion where they can directly make clear
about the product which they sales (Burns, 2017).
 Developing Relation: It is among the way though which promotion can done. Talking
about this form of business, it will be necessary for entrepreneur to develop relation by
themselves with different customers as a form of chain. It will direclty give idea to
achieve the target.
P6 Develop an appropriate promotional activity plan for both launch and pre-launch.
For an organisation it is very much important to use various kinds of promotional events
in order to reach at large no. of consumers potentially. In context of “New Organic Food
Products” that bring the series of organic products into marketplace (Barrow, Barrow and
Brown, 2015). In that regards it is very much potential to use various kinds of promotional tools
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before launching product and at time of launching it. Here are the promotional events at time of
launch and before launch:
Pre launch promotions:
For an organisation it is significant to use various kinds of promotional tools that relevant
to acknowledge about organisational product and services by building curiosity in mind of
people. In context of New organic food products they by using hoardings that shows their
organic products and its features so that consumers can easily take decisions related to purchase
in future. By using taglines such as “Eat clean and green” that helps consumers in their decision
making process so that optimum outcomes should be attained.
Launch promotions:
In launch promotional event consist of activities and tools that help to aware people about
organisational products and services. In launch promotion tools consists of attributes that are
differ from the pre launch events such as using using social media, Facebook, Instagram and
other that helps to track consumers needs and want in positive manner. In respective kind of
promotional tools organisation depicts about the way organisational products differ from their
fierce competitors so that consumers can take prompt decisions regarding purchasing products
and services.
Respective promotional events plays very important role in building brand loyalty in
mind of consumer as they know about that it is worth of their money (Fisher, and et. al., 2017).
In that regards building brand identity in marketplace is one of most significant but difficult task
for an organisation as there are large no. of fierce competitors already operated in the business
environment. Before launch new products and services into marketplace significantly
organisation need to evaluate micro and macro environmental factors so that important outputs
should be obtained by organisation. By using promotional events that are innovative and able to
capture people's eyes helps in gaining profitability and sustainability into marketplace.
LO4
P7 Produce an itemised monthly cash budget for the pre-launch phase of the venture and the first
12–18 months preceding launch.
Cash budget is explained as the process where estimations are required to be done about
the cash that can be invested within the business at the to incorporating the business. It is
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essential for New Organic Food Product because it will allow them to deal with emergency
situation where shortage of fund can be seen easily (Baron, 2015). It will also allow them to
utilise all of the resources properly through which target can be achieved easily. Below, Cash
budget has been prepared during the time period of 12 to 18 months:
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
Net cash flow 7700 200 1300 2200 150 1500
Opening
balance 0 7700 7900 9200 11400 11500
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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
closing balance 16100 16500 17700 18300 18800 19600
Post launch cash
budget
Particulars Jan Feb Mar Apr May June
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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
Cash inflows
Investment
Credit sales 1200 3200 1500 8200 1250 3210
Total inflows 1200 3200 1500 8200 1250 3210
Cash outflows
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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
Explanation of Outflow Of Cash: In both pre and post time period, it is essential to
understand that most of the expenses has been incurred at the time of purchasing the equipment.
The main requirement of purchasing equipment is to manufacture the product at regular
intervals. Even different form of material were purchased which were required for the
preparation of organic Ice-creams and Chocolates.
P8 Suggest an appropriate legal form for the venture stating why it has been
There are different form of ventures which can allow to conduct business activity. It is
the willingness of investor that in which form of business they are willing to invest for attaining
the goals of a company (Cosenz and Noto, 2018). It is essential to understand for entrepreneur of
New Organic Food Product that they must have knowledge regarding different legal structures.
Different types of venture are discussed below:
Sole trader: This types of venture is interesting for the one who perform business activity
without the involvement of other person. It is famous in itself because there limited percentage of
interference of government. Here, all of the profit and losses are to be handled by investor
themselves.
Corporations: These are those business organisation where business activities are
performed at a bigger stage for the purpose of earning profit. In any of the situation, investor has
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to not take any of the tension because limited is limited which doesn't create trouble for them.
Number of benefits are provided to this types of business but it is also essential to understand
that they must comply all of the rules and regulations of Companies Act 2006.
Partnership firms: It is the form of business which is needed to be operated by couple or
more then that number of people (Al Mamun and Ekpe, 2016). Here, deed is needed is required
between the partners where roles are distinguish among the partners. The major motive behind
starting this types of business is earning profit with support of all the partners.
It will be crucial for New Organic Food Product that they must take the help of
partnership to start their venture within the premisses of UK. It is because requirement of
following the laws and regulations will be in limited number which will not allow to create any
of the issues for business entity.
CONCLUSION
From the above report, it has been concluded that it is very much important for an
individual to acknowledge about consumers needs and wants before launching a new venture in
marketplace. For a entrepreneur it is very much potential to analyse the local, national and
international market before establishing business unit in a specified geographical location.
Before launching a new business venture organisation need to evaluate organisational policies
and strategies to operate business activities in effective manner. To fulfil organisational goals it
is very much potential to evaluate skills and capabilities in order to remain competitive in
marketplace. Promotional tools plays very much important role to acknowledge consumers about
organisational products and services in order to remain competitive in marketplace. By planning
and allocating budget organisation can be able to spend specified amount by prioritise activities
for gaining potential outcomes.
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REFERENCES
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Baron, R. A., 2015. Affect and Entrepreneurship. Wiley Encyclopedia of Management. pp.1-3.
Barringer, B. R., 2015. Entrepreneurship: Successfully launching new ventures. Pearson
Education India.
Barrow, C., Barrow, P. and Brown, R., 2015. The business plan workbook: A practical guide to
new venture creation and development. Kogan Page Publishers.
Burns, P., 2017. New venture creation: A framework for entrepreneurial start-ups. Palgrave.
Cavusgil, S. T. and Knight, G., 2015. The born global firm: An entrepreneurial and capabilities
perspective on early and rapid internationalization. Journal of International Business
Studies, 46(1). pp.3-16.
Cosenz, F. and Noto, G., 2018. A dynamic business modelling approach to design and
experiment new business venture strategies. Long Range Planning. 51(1). pp.127-140.
Douglas, E., 2017. Perceptions: Looking at the world through entrepreneurial lenses.
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Hill, I., 2015. Start-up: A Practice Based Guide for New Venture Creation. Macmillan
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roadmap. Routledge
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discrimination. International entrepreneurship and management journal. 12(4). pp.963-
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McGee, J. E. and Peterson, M., 2017. The Long‐Term Impact of Entrepreneurial Self‐Efficacy
and Entrepreneurial Orientation on Venture Performance. Journal of Small Business
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McKelvie, A., Wiklund, J. and Brattström, A., 2018. Externally acquired or internally generated?
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innovation. Entrepreneurship Theory and Practice. 42(1). pp.24-46.
Penrose, E. T., 2017. Foreign Investment and the Growth of the Firm 1. In International
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Read, S., and et. al., 2016. Effectual entrepreneurship. Routledge.
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Online
Launching a new venture. 2018. [Online]. Available through:
<https://www.exed.hbs.edu/programs/lnv/Pages/default.aspx>
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