Entrepreneurship and Venture Creation

This assignment delves into the complexities of entrepreneurship and new venture creation. It examines various theoretical perspectives, including the impact of entrepreneurial self-efficacy, audience diversity on legitimacy, and the role of the 'dark triad' personality traits. The assignment also considers practical aspects such as work-family conflict, opportunity recognition, and institutional factors shaping entrepreneurial activity.

Launching A New Venture

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Explain a new venture to identifying specific target markets and competitive analysis. 1
P2. Tangible and intangible resources that would be required to launch of a new venture.. .2
TASK 2............................................................................................................................................4
P3. Produce a credible proposal to launch a new venture. ....................................................4
P4. Assess the skills and capabilities required to launch a new venture................................5
TASK 3............................................................................................................................................6
P5. Different promotional activities and channels that will support the launch of the new
venture....................................................................................................................................6
P6. Promotional activities plan for both launch and pre-launch............................................7
TASK 4............................................................................................................................................7
P7. Produce a monthly cash budget for the pre-launch phase of the venture.........................7
P8. Suggest an appropriate legal form for the venture...........................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
An entrepreneur looks at the bright side of market trend that leads towards opportunities.
They identifies success possibilities where others only focuses on risks. They utilities
brainstorming to get an effective idea that can be used to launch a venture. It takes a long time to
open a firm because it needs strategic planning. This effective planning includes various phases
that have to execute in an appropriate manner. 'Brownie Delights Café' is a launching with a new
concept to offer a huge range of high quality eatery. It serves various kinds of brownie, coffee
and snacks items that satisfies customers needs and expectations. Hence, this assignment is based
on identifying target market and its competitive analysis. The assignment underpins tangible and
intangible resources along with credible proposal of new venture. It also comprises of skills,
capabilities, promotional activities, activities plan for both launch and pre-launch, monthly cash
budget and legal form of venture (Baron and Henry, 2011).
TASK 1
P1. Explain a new venture to identifying specific target markets and competitive analysis.
Background of idea - In present time, there is a huge competition in marketplace but on
the other side. An entrepreneur seeks opportunities as there are a very few firms which offers
high quality food items. 'Brownie Delights Café' is providing different kinds of brownie items
along with coffee and snacks. This cafe is situated in Old Spitalfields market which a most
crowded place. There are so many shops and malls are placed and that's why it is always full by
shoppers. There are numerous cafes but none of them is providing wide range of brownie
products. That's why this venture can gain profit because it can attract customers through
offering different kinds do eatery.
'Brownie Delights Café' is also offering a huge range of Italian, continental, Spanish and
French cuisine along with beverages. It is opened in a building with 2500 square feet area in Old
Spitalfields market, London, United Kingdom. Initially the owner needs to sign a lease
agreement for 3 years so that it can run a business without any problem. Therefore, entrepreneurs
needs to invest initial amount in the venture that is £2,53,000. But it needs to arrange funds from
bank that support it to conduct overall operations (Zhang and Li, 2010).
Target market – Target market analysis can be analyzed through diving customers in
specific segments so that firm can identify their buying behavior. Therefore, it conduct a research
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to recognize target market where it can sale its food items. This research depends on age,
income level, purchasing behavior of the people. Citizens have high income which positively
influences the business as they can purchase premium price products. It is targeting to huge
population including all age groups because everyone likes brownie and snacks according to
their choice and preferences. Thus, this is a plus point for 'Brownie Delights Café' that it
captures attraction of the people whether they are kids, youth or adults. This cafe is located at
most busiest place which help it to gain profit. As this place is always surrounded by people
that's why it can sale eatery to maximize the profit and revenue (Burns, 2017). The target
customers for BDC and for its famous coffee, includes the teenagers who are coffee shop lovers,
drip coffee drinkers, specialty coffee drinkers, and total bean buyers.
Competitive analysis – It is essential to analyze about the existing market. As there are
numerous cafe are serving to the people and they have reputation among customers. Already
present cafes such as Climpson's Coffee Bar, Indi-Go - Indian Street Food, etc. are providing
their variety of coffee and cuisine. So settled business ventures makes it difficult to launch
'Brownie Delights Café' successfully. It is hard to gain profitability and attain customer's
attention which can sale their products in an effective way. Therefore, entrepreneurs needs to
offer some customized and innovative products that can allure customers and support to raise
sales of cafe. In order to establish a new venture cafe needs to strong and weak strategies of their
competitors that can assist it to develop an effective planning. Through this, firm can innovate
products that can capture attention of their potential customers (Naktiyok and Karabey, 2010).
P2. Tangible and intangible resources that would be required to launch of a new venture.
There are some tangible and intangible resources are also required for a business. They
plays a vital role in an enterprise because it supports to carry out daily operations and activities
in an effective way. 'Brownie Delights Café' needs some resources that aid to assists in attain
objectives of the organisation. As these resource are considered as most essential requirement of
the venture. Hence, these resources are mentioned below -
Tangible resources - It refers to those assets which are present in a physical form.
Tangible resources includes fixed assets like machinery, buildings and land, and current assets,
such as inventory. In order to run a business in an appropriate manner 'Brownie Delights Café'
needs a building where it can carry out its routine operations can provide its services to
customers. The area which it takes on lease (25000 Sq. ft) is land that is known as fixed assets
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along with this, firm also needs machinery for baking and cooking stuff. Further, cafe also
requires furniture to adorn its interior that can give a pleasant ambiance to customers and it also
attract people to stay in cafe. On the other hand side, current assets refers to resources which will
be used while launching a venture such as cash and inventory. The cafe needs cash as capital
fund and inventory will help to operate its functions in an easy way.
Moreover, human resources are also consists of tangible resources. As these employees
are skilled to prepare cuisine in an efficient way that will be provided to customers. The venture
needs to hire skilled workforce including cooks and house keeping staff that helps to provide
best customer service that can satisfy their needs and requirement (Fisher anmd Kuratko, 2017).
Intangible resources – This kind of assets can be define through such things which are
not visible or present as physical object but have a significance in business operations. The
elements which cannot be touched or seen are known as intangible resources of business.
'Brownie Delights Café' needs to take a license to run a legal business according to prescribed
guideline of UK government. Cafe needs to file a patent and trademark for the firm so that they
can make its identity. This logo or trademark is essential for it because this establishes a brand
image of cafe among customers. The core purpose of intangible resources is to protect cafe with
legal legislation as its registered logo, symbol cannot be used by any other firm for business
activities. Therefore, it is necessary for it to register the firm that can support it to run a business
in an effective manner.
Tangible resources
Land £1,90, 000
Furniture £30000
Machinery and equipments £20000
Intangible resource
Trademarks for logo £5000
Total £245000
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Hence, tangible and intangible resources both are crucial for a business venture. Tangible
resources are required to support in operations and activities whereas intangible assets protects a
business brand image and confidentiality (Kuratko and Hornsby, 2017).
TASK 2
P3. Produce a credible proposal to launch a new venture.
Every business have an objective and goal and to attain this goal they needs a particular
planning which directs them towards the aim of the organization. They needs to take beneficial
decisions for the firm. In order to take an important decision they needs to prepare a specific plan
that is derived through various facts and figures. A business needs strategic planning to carry out
effective operations and activities. Therefore, 'Brownie Delights Café' is a new venture that
needs to prepare a attractive proposal that can achieve its ultimate goals in order to reach towards
success. The cafe emphasizes on plan that needs to consists of relevant information about
venture and plan is given below -
Executive summary - 'Brownie Delights Café' is a offering a huge variety of brownie,
coffee and snacks. It is also providing multi cuisine flours including Italian, French and Spanish.
This is only cafe which is providing a large variety of brownie products along with different
kind of coffee as well. Besides these the customers can step for their favorite food taste.
About venture – The cafe is going to launch to target every age group because everyone
loves food. Thus, it is going to be established in Old Spitalfields Markets which is the most be
crammed place in London. In this location, entrepreneur signed a 3 years lease agreement for
25000 square feet. The main purpose to launch a business in this market is that it has an easy
approach. People can easily reach towards the storefront because this site provides eye catching
experience to its customers (Salamzadeh, 2015).
Analyzing marketplace – It is crucial for 'Brownie Delights Café' to analyses present
market conditions. As its success depends on existing market trends and situations because there
are already numerous cafes are performing well. In this contemporary situations they can give a
tough competition to new ventures. So, firm needs to identify its strength and weaknesses before
launching a new venture. It can plan according to these conditions that can help to establish a
strong brand image in market. In order to do so, it can conduct a PESTEL and SWOT analysis
through which owner of firm can identify their strength and weaknesses of their venture.
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Financial decision – Funds plays a vital role for any organization because it is the major
source that helps to run business operations and activities in an appropriate way. 'Brownie
Delights Café' needs to invest capital amount for launching and it also needs a budget plan. As
this plan will support to gain success.
Standards – The entrepreneur needs to specify such benchmarks that leads to quality and
performance of venture. They establishes standards that needs to be followed to attain tasks with
accurate actions (Hmieleski and Lerner, 2013).
P4. Assess the skills and capabilities required to launch a new venture.
An entrepreneur should have some skills and capabilities that supports them to launch a
new venture. There are some skills which they gain from previous experience and some of them
can be acquired according to future requirement of business. There are some skills and
capabilities that needs to be possessed by the owner of 'Brownie Delights Café' and that are
mentioned below -
Leadership – Entrepreneur should have leadership style because it is essential to
motivate employees so that they can squeeze out best qualities form workers. These qualities can
be beneficial for 'Brownie Delights Café'. As it increases productivity and efficiency of the firm
because motivation encourages people to work in an effective manner (Curley and Formica,
2013).
Hiring employees – An owner of 'Brownie Delights Café' needs to be skilled to hire
efficient employees according to the requirement of venture. As they needs to recruit people to
perform daily activities such as cooking, table services, cleaning and hygiene. Thus, owner needs
to capable for interviewing a candidate that can fulfill the requirements of firm.
Problem solving – There are so many issues can occur whole running a business.
Therefore, a person should be able to find out number of solutions that can overcome problems.
As these problems may impact on performance of business and employees as well. That's why
they needs to be capable to handle issues that can affect performance of 'Brownie Delights Café'.
Manage staff and employees – 'Brownie Delights Café' is a small venture that has
approximately 9 employees and they are efficient in their work. But it is leaders responsibility to
manage staff in an effective way. They needs to manage their staff in an organized way so that
employees can accomplish their tasks within an specific time. For an example, a chef will only
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work in kitchen and server will assists to customers and so on. If they all have assigned tasks
then they can complete their task they can achieve organization goals and objectives within time.
Being organized – This skill can be acquired by observation and learning as an
entrepreneur should be well organized in order to reach out to the success. They can use
productivity tools that can help to accomplish their tasks within a specific time. Through
organized approach they can divide their priorities and finish their work accordingly. This will
help them to maximize efficiency and productivity 'Brownie Delights Café'. For an example,
before launching a new venture then they needs to be register their firm in the initial state then
they caters the information about potential customers other required information. This is all helps
to manage their work and enhance the productivity of the firm (Baron, 2010).
Raising funds – As there are several risks occur while developing a new venture one of
that is mange funds from various sources. For example, 'Brownie Delights Café has initial
investment capital but it needs to borrow money from banks and other sources. This is one of
most essential capabilities that have to be in an entrepreneur.
Risk taking - Entrepreneur should take risk with their products so that they can analyze
their strength. They should also promote these products in the market with a risk because there
is no security for success and failure. If their efforts will be successful then it will be good for
'Brownie Delights Café.
TASK 3
P5. Different promotional activities and channels that will support the launch of the new venture.
While opening a new venture there is a need to adopt aggressive promotional strategies.
As there are several kinds of promotional activities and channels that can be used by 'Brownie
Delights Café in order to enhance the visibility. Therefore, these are mentioned below -
Print media - It can be used to promote 'Brownie Delights Café through newspapers,
brochures and magazines etc. They can encourage customer in near by areas of Old Spitalfields
marketplace (Werbel and Danes, 2010).
Digital marketing – This is known as one of the cheapest marketing techniques as there
are several tools that can be utilize by 'Brownie Delights Café in order to reach towards
customers and these are mentioned below -
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Social media – The business owner can use their personal social media account as a
promotional tool. They can post information about 'Brownie Delights Café so that people can get
information about existence of 'Brownie Delights Café.
Mobile technology – They can also send text messages to their relatives and known
people so that they can also support in the opening of 'Brownie Delights Café. This can help to
them to promote business qualities and customized products.
Blogs – This attracts people through interesting content and it is essential for 'Brownie
Delights Café to engage customers in a well written blogs. As it can capture attention of people
and force them to enhance purchasing.
Billboards – It is often adopted by new ventures that used to promote firm with logos,
slogan, and pictures. As potential customers easily get attracted towards the firm and they
become curious about the brand. That's why it can be utilize by 'Brownie Delights Café so that it
can attain growth of business.
Hence, these are the promotional tools that can be used to increase sales of 'Brownie
Delights Café because this is the major goal of a venture. Through enhancing its sales it can
increase the profit and revenue of the firm for which it came in inception (Hayward and Forster,
2010).
P6. Promotional activities plan for both launch and pre-launch.
As there is a need of marketing for 'Brownie Delights Café' so that it can get successful.
It has a specific goals and objective that has to be attained in a specific time. Hence, it needs to
prepare a pre- launch and launch promotional plan that is given as below -
Pre – launch – In this launch 'Brownie Delights Café' needs to promote its venture
before opening a business physically. So they can promote business through using slogans, tag
line and 'coming soon' that represents a firm. It informs people that a new cafe is going to be
opened soon and it uses logo to attract them towards firm. This is beneficial because it makes
curious to potential customers and reflects in the sales of cafe (Cornelissen and Clarke, 2010).
Launching - After pre – launch activities 'Brownie Delights Café needs to adopt various
introducing strategies that shows that where a cafe is opened. An entrepreneur needs to promote
a firm by showing signage boards and banners. They informs people through text messages,
brochures and social media platforms about cafe's opening so that they can come to purchase the
brownie, coffee and snacks items (Valdez and Richardson, 2013).
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TASK 4
P7. Produce a monthly cash budget for the pre-launch phase of the venture.
'Brownie Delights Cafe needs to prepare a pre – launch cash budget that helps it to run
promotional activities in efficient manner. Therefore, it given as bellow -
Pre launch cash budget
Cash Flow budget
Particulars Jan Feb Mar Apr May June J
Cash inflows
Investment 8000
Opening balance 0 5700 2400 400 3800 2250
Total inflows 8000 3000 3000 4500 1500 3500
Cash outflows
Fixed : Equipment’s 2000 2700 600 4100 2300 1250
Variable : Direct material 300 300 200 300 150 500
Total outflows 5700 2400 400 3800 2250 750
Net cash flow 5700 2400 400 3800 2250 750
closing balance 5700 2400 400 3800 2250 750
Post launch cash budget
Particulars Jan Feb Mar Apr May June J
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
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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
This is a pre – launch budget of 'Brownie Delights Café that defines the budget required
to spend on promotional activities of the business. Hence, this is only expenses because there is
no source of income before launching a firm.
P8. Suggest an appropriate legal form for the venture.
An enterprise can be established with two major legal forms that shares same objective.
As the major aim of a business is to gain profit and enhance revenue for which they are running a
business. There are two main legal forms of a venture that can be adopt by 'Brownie Delights
Café and these are given below -
Sole traders – A person can start a business and they will take entire responsibility of the
firm. As they operate a business all alone that's why they are accountable for profit and loss of
'Brownie Delights Café. The core advantage of sole proprietorship is that they will gain profit of
the firm if it gets successful. On the other hand, drawback of firm is that if owner dies then there
family cannot take over the business because they do not have any knowledge about firm's
operations (Dimov,. 2010).
Partnership -It can be formed with two or more than people who shares a common goals
that is attain success. 'Brownie Delights Café can be start with two partners and it is beneficial
for both of them. As they shares liabilities for profit and loss that makes them responsible in their
relevant areas.
Liability Limitation - LLC limits the liability of a firm. If person demand cost as an
outcome of the business operations, then they can claim the assets only which are related to
Brownie Delights Cafe business and can not claim the personal assets.
Therefore If the owner of the cafe anticipate a condition whereby he may obtain a
liability, an LLC may be an appropriate legal form for Brownie Delights Cafe. For example, if
the cafe get a bad collection of coffee beans and if that leads to food poisoning, then the daily
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and regular affected customers can't take away your personal dominates through legal
proceedings.
CONCLUSION
From the above report it can be concluded that a business needs a proper planning for
launching. In order to open a new venture there is requirement to identify target market and
competition where it is going to be established. A business also needs some tangible and
intangible resources because these are most essential part of a firm. As tangible resource provide
growth and intangible resource protects firm's identity. There is also a need of a proposal that
includes an effective plan of the business along with promotional activities that requires of a cash
budget. It also needs a legal form of venture that needs to adopt buy the leaders of business.
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