Launching a New Venture: Investigating, Planning, and Promoting

This report focuses on launching a new venture for Locus Cafe in the UK market. It covers investigating target markets and conducting competitive analysis, determining tangible and intangible resources, producing a credible proposal, assessing skills and capabilities, explaining promotional activities and channels, developing a promotional activity plan, and producing a cash budget for the pre-launch phase and first 12-18 months. The report provides insights on how to investigate, plan, and promote a new venture.

Unit 28 Launching a
New Venture

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................2
P1 Investigate and explain a new venture identifying specific target markets and undertaking
competitive analysis...............................................................................................................2
P2 Determine specific tangible and intangible resources that would be required for the launch
of a new venture.....................................................................................................................3
P3 Produce a credible proposal to launch a new venture.......................................................4
TASK 2............................................................................................................................................5
P4 Assess the skills and capabilities required to launch a new venture and how they are
acquired or developed.............................................................................................................5
TASK 3............................................................................................................................................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
TASK 4............................................................................................................................................7
P7 Produce an itemised monthly cash budget for the pre-launch phase of the venture and the
first 12–18 months preceding launch.....................................................................................7
P8 Suggest an appropriate legal form for the venture stating why it has been chosen..........8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Launching a new venture in the market is found as a very difficult task for the entrepreneur
because it requires lots of abilities and proficiency in order to dealing with the uncertain
situations and problems. Hence, the entrepreneur is required to develop skills and capabilities so
that they can attain the target customers along with the goals and objectives of organization.
Entrepreneur also is the innovators show which look for the opportunity is by taking risk
(Cheng-yong, Tian-yu and Ling-xing 2022). The chosen organization for this report is Locus
Cafe which is all small cafe located in London, United Kingdom. Locus cafe is providing
different kind of coffee, shakes, bottle drinks and several bakery products at their cafe. This
report includes the launch of new venture and it's a targeted market. In addition to this, need also
tangible and intangible resources in a small business organization have been also analyzed as it
helped them in the better establishment. Various skills and abilities of entrepreneur is also going
to be discussed in this report for the purpose of better understanding its importance and how they
can be developed according to the need of business.
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TASK 1
P1 Investigate and explain a new venture identifying specific target markets and undertaking
competitive analysis.
Locus Cafe is found as a small cafe which is dealing with the coffee and several food items
including bakery products, special shakes and bottled drinks. Along with this, they are also
providing all these services at the doorstep of customers with the services of catering and
personalized baking as well. The management of Locus Cafe easel majorly focusing on
providing the higher quality of taste to their customers who also include the new and unique idea
of preparation style in order to grab the attention of customers in United Kingdom.
Target Market: Locus Cafe is a focusing on providing their products and services according to
the needs and requirements of customers. Mainly, the target customers of this cafe are the people
of youth generation. It has been founded at the cultural scenario of United Kingdom believe in
enjoying the life. Hence, the youth people of United Kingdom mostly prefer to go out with their
friends. By attracting them, the organization can attain its goals and objectives.
Competitive Analysis: It is found as the evaluation of marketing plan for the purpose of
identifying the unique feature of services and products (Dewitte, Billows and Lecocq 2018). It is
a possible by understanding the strategies of competitors along with the several new strategies
which the locus Cafe can adopt in order to overcome from the competitors and developing it
strength.
Porter's five forces analysis
In order to evaluating the level of competition of organization at marketplace, porter's five force
model is found as an effective tool. The management of Locus Cafe using this tool for the
purpose of analysing the present position of the firm. Below mentioned are the five important
elements of this model:
 Competitive Rivalry: The competitive Rivalry of Locus Cafe is a found as a high because
of availability of various popular Cafes is in United Kingdom. Many over these cafes are
offering their unique products in their own manner to their customers. For the purpose of
attaining the target market, the Locus Cafe is required to focus on their quality of services
which they are providing to their customers.
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 Bargaining power of buyers: getting in power over customers of Locus Cafe is found as
high because it is a small and new cafe in the market and the prices of a product may get
a different as per the demand of customers. It stated that the customers of Locus Cafe
may select any other existing cafe. In order to attaining that targeted customers, the
management of Locus Cafe to enhance the quality level of their products and offering.
 Bargaining power of supplier: It has been found at the bargaining power of suppliers is
also high because this Cafe is working in a new market with unlimited number of
supplier so who all the supply and go specific coffee beans. Hence, it is necessary for the
management to develop effective and positive relationship with their suppliers so that
they can purchase roll coffee beans from them (Eniola, A.A., 2018).
 Threats off substitutes: This factor of porter's five forces easy moderate because the
coffee provided by Locus Cafe easel unique for their customers and their competitors.
Due to the uniqueness in the flavors of coffee, substitute products will consume time in
managing.
 Threats of new entrants: It has been found as the threat of new and trend is low because
it is a very difficult task for a new company to create the brand image in this sector. It's
easy necessity for the food industry to do research and gain experience so in order to
establishing the products and services in an effective and efficient manner. In simple
words, it has been cleared that the head of new entrant is low for Locus Cafe.
P2 Determine specific tangible and intangible resources that would be required for the launch of
a new venture.
Each and every new business organisation is required to have tangible and intangible resources
while establishing the business in the market. The overall level of performance of a business
organisation can be enhanced only with the proper utilization of tangible and intangible
resources. In order to enhancing the productivity level of Locus Cafe. The respective Cafe is
utilizing its resources for the purpose of enhancing the level of productivity. The tangible and
intangible resources in the context of Locus Cafe are given below:
 Tangible resources: It is found as an essential aspect for a business organisation in which
the management adopter several better manners for the purpose of enhancing the level of
profitability and productivity as well (Kittur, Chatterjee and Upadhyay 2021). These types
of resources help the management of Locus Cafe in bringing improvement in the
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productivity level of Cafe in the market. Several of tangible resources include building, land,
outlets and many others. These resources are being used by the organisation in order to
serving their customers in a best appropriate manner. In addition to this, these resources also
help the organisation in attracting the customers and visitors towards the organisation which
also result in the improvement in profitability and productivity of organisation. It also serves
the best food service within their product line.
 Intangible resources: It is defined as other affective and essential resources which are being
used by the organisation for enhancing their profitability level in the market. It includes all
these resources which are not visible in nature but all these resources have a positive impact
on the operations of organisation. It plays an important role in attracting and influencing the
customers through the products and services offered by locus Cafe. These resources include
trademark, copyrights, patent and many more which helps the organisation in increasing the
level of profitability in the market (Laguía and et. al., 2019). It helps the management of
locus Cafe in developing attractive and specific image for the purpose of establishing the
strong customer base. These resources contribute in the overall success of organisation in
the competitive market. All of the above mentioned elements are used by the cafe for the
purpose of making specific brand in market which also results in influencing and attracting
the customers as well.
P3 Produce a credible proposal to launch a new venture.
Formal business plans are leads to the full proof planning of a new business venture.
Business plans please and important role in speaking to leaders and investors regarding the funds
of startup. Planning for the business plan of Locus Cafe, It is essential for management to
accomplish the proposal of business plan (Starinov, Tseveleva, and Pershina 2020). It is being
represented in the form of a speech or through a full slide show presentation.
 Management is required to prepare a introduction to their proposal. It should start by
thanking the host and then it should include the overview over new business venture along
with the business plan. It issued include the vision and mission of organization along with
the interesting details regarding the formation of company.
 Next it is required to cover the entire knowledge of the owner of Locus Cafe. It create
interest of listen the presentation and speech in the listeners.
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 Another step of proposal included presenting the products and services along with the
competitive advantages. Locus Cafe President I believe in production of their flavored
coffee and the other eatable items which they are offering to the customers.
 Next step of this proposal is to create marketing plan under which the company discuss
about their target customers. Locus Cafe focus on providing several food items to the youth
people as per their preferences.
 And the last step is to prepare the presentation of a financial plan. By arranging funds, the
organization has to focus on the maximization of profitability (Mayr and et. al., 2021). In the
context of Locus Cafe, the management is required to acquire huge funds in order to present
the food items in the market which also leads to the improvement in profitability and
productivity of organisation.
TASK 2
P4 Assess the skills and capabilities required to launch a new venture and how they are acquired
or developed.
Launching a new business venture is a challenging task for the entrepreneur as it include several
challenges. Hence, it is found as essential that the entrepreneur should have skills and abilities
which help them in launching a new business venture. Below mentioned are the several skills
and capabilities which are found as international for a new business venture:
 Business management skills: These skills of entrepreneur is required to run the business in
order to meeting all the goals. It helps in managing the entire task and operations of various
departments in an effective and efficient manner. There are various business management
skills which include delegating responsibility, making critical business decisions and
multitasking (Powers and et. al., 2020). The entrepreneur of Locus Cafe is also required to
develop business management skills as it will help them in performing all the task in a best
possible manner.
 Communication and active listening skills: Entrepreneur is it required to communicate in
an effective manner with a team members and clients. They are required to arrange meetings
on time so that they can explain the public regarding their new project and thinking. The
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entrepreneur of Locus Cafe can develop the communication and affective he listening skills
by communicating with the team members.
 Networking Skills: It the managing and building the relationship with the several people in
order to promote in the business. Effectively not working as skills work as opportunity for
the business organization as it is helpful in staying up to date with the industry trend and
perform function in the same manner. The entrepreneur of Locus Cafe can develop these
skills by working as a team in the business.
TASK 3
P5 Explain different promotional activities and channels that will support the launch and justify
their choice.
A new business venture is required to adopt the effective promotional activities in order to
reaching to the customers in the best possible manner. Below mentioned are the several
promotional activities and channels which are available for the Locus Cafe:
 Personal Selling: It is considered as though most effective and costly form of a promotion
activity because it included the face to face communication among the customers and the
business organization (Saengchai and Sutduean 2019). Majorly it focus on pushing the
product through distribution channels.
 Advertising: It easel found as impersonal mode of communication and salesmanship for
huge selling. It is also found as the important form of promotion as compared to the personal
Selling. In addition to this, it's cost is also less than the personal Selling.
 Sales promotion: Those marketing activities which are not included in advertising, publicity
and personal selling comes under sales promotion. It acts as a bridge among the personal
selling and advertising as it is an aggressive method of selling.
Above mentioned are the several promotional activities which an organization can select as per
their references. Locus Café is required to adopt the promotional activities of advertising.
Advertising is a cost and time effective activity which attract the customers towards the cafe. It
has been also found at the youth people of United Kingdom are using a various social media
platforms. Through promoting the food items are throughout the social media channels, the
Locus Cafe can improve the productivity and profitability of cafe by attracting the people
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towards it. Reasons behind the selecting the advertising promotional activity is that it is cost and
time effective promotional activity which influence the customers to buy the specific or
particular product and service. The Locus cafe is going to select various channels such as
Instagram, Facebook, Twitter and many more.
P6 Develop an appropriate promotional activity plan for both launch and pre-launch.
TASK 4
P7 Produce an itemised monthly cash budget for the pre-launch phase of the venture and the first
12–18 months preceding launch.
In the pre launch phase of organisation, the management require lots of capital to start the
business operations because the management have to plan for the various tangible and intangible
resources. Hence, the organisation has to arrange the funds from different sources such as loan
from bank or any other financial institution. In the pre launching phase, the Locus Cafes require
to purchase coffee machinery, oven for bakery products, land for cafe. Along with this, the Cafe
have to spend lots of amount on making their interior luxury which can attract the customers
towards the cafe (Salerno, J.T., 2019). Once the cafe start operating, it only require operating
cost which include salaries of staff members, costing of raw material products, packaging and
many more. These expenses or costing can be managed by the inflow and outflow of revenue or
cash. Hence, the cafe is not require to bring loan for any huge investment. Below mentioned is
the cash budget of Locus Cafe in the pre launch phase:
Amount
Land 1000000
Interior 500000
Coffee Machine 100000
Oven 150000
Advertising 300000
Total 2050000
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While starting the Locus Cafe, the management have to manage all the expenses in order to
manage the required expenses in the organisation. Above mentioned table is showing the
expenses on which the organisation have to do in the pre launch phase. After starting the
business operations, the costing of cafe will decrease as it is not required to do such huge
expenses. But the management of Cafe is required to do invest in the research and development
in order to know about the preferences of customers (Shokhnekh and et. al., 2019). For the
purpose of bringing some innovation, the organisation have to focus on the research of market.
Below mentioned table is showing the cash budget of Locus Cafe after the launch of 12 to 18
months:
Amount
Staff Salary 300000
Research and development 350000
Advertising 100000
Raw material 200000
Electricity 150000
Total 1100000
P8 Suggest an appropriate legal form for the venture stating why it has been chosen.
While starting a business organisation, it is required to select a legal form of organisation. Below
mentioned the several legal forms of Ventures:
 Sole proprietorship: It is a type of legal structure under which all the business operations
have been managed by a single individual. That single individual is responsible for all the
risk and capital invested in the business organisation. All the decision making power is in
the hand of the owner. There is no any legal difference among the owner and the business. It
is found as the most common legal form of business. The owner of sole proprietorship has
unlimited liability.
 General Partnership: It is defined as the legal structure under which two or more than two
people comes in an agreement to perform the business operations collectively (Shokhnekh
and et. al., 2020). And that agreement is known as partnership agreement of which you
include all the rules and profit and also sharing ratios among the partners. All the owners
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and partners of partnership business have unlimited personal liability because all the
partners are equally liable to pay the partnership obligations. Some of legal formalities are
required to be fulfilled before starting this business.
 Limited Liability Company: It easy hybrid form of cooperation, general partnership and sole
proprietorship. The owners of Limited Liability Company are known as members and the
members can be individual, corporations or any other. All the members of Limited Liability
Company are protected from personal liability for business debts and claims. While starting
this company the organization have to pay the filing fees.
Above mentioned are the several legal structures of a business organization. It is recommended
to Locus Cafe to adopt the legal structure of sole proprietorship because it is a small cafe and it
requires small amount of capital. Sole proprietorship can be easy and fairly cheaper to establish
in the market (Shu, Ren and Zheng 2018). Along with this, This legal structure also provides the
authority over the entire control and decision-making power to the business owner.
CONCLUSION
From the above report it has been concluded that starting a new venture is a difficult task
because of availability of a several challenges in it. The entrepreneur is required several skills
and abilities in order to overcome from these challenges. Along with this, a new venture is also
required to adopt promotional tools to promoting their business and taking the competitive
advantages as well. A business proposal is also required to present in the market before starting
the business. Pre launch activities help the business organisation in creating excitement and
interest of customers towards the business. Hence, the entrepreneur have to focus on both pre
launch and launch activities is it will help the organisation in generating higher revenue and
profits. Furthermore, it has been also analysed that several of tangibles and intangibles resources
are also required by the business in order to start the operations of business.
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REFERENCES
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Laguía and et. al., 2019. “Think entrepreneur-think male”: a task and relationship scale to
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Management Journal, 15(3), pp.749-772.
Mayr and et. al., 2021. Entrepreneur characteristics and differences in reasons for business
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Powers and et. al., 2020. “When I get older, I wanna be an entrepreneur”: the impact of disability
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Salerno, J.T., 2019. Are Ownership Rent and Pure Profit Separate Returns to the
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Starinov, G.P., Tseveleva, I.V. and Pershina, E.Y., 2020. Foresight system in the structure of
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)
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