Launching New Venture Assignment

LAUNCHING NEW VENTURE

Table of Contents
LAUNCHING NEW VENTURE....................................................................................................1
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 New venture...........................................................................................................................1
P2 Tangible and intangible resources that would be required for launch...................................3
TASK 2............................................................................................................................................4
P3 Produce a credible proposal to launch a new venture............................................................4
P4 Skills and capabilities required to launch a new venture.......................................................5
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............7
TASK 4............................................................................................................................................7
P7 Monthly cash budget for the pre-launch phase......................................................................7
P8 An appropriate legal form for the venture.............................................................................9
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................11

INTRODUCTION
Entrepreneur are those person who start up their own venture. They governs and run their
business which may be totally new in the market or a idea of the start up which is already
existing in the market. This depends on entrepreneur to what type of business and at what scale
they want to open. It can on small, medium or large scale. Starting up a new venture involve
great risk, challenges, difficulties, problems, issues, etc., which become hard for entrepreneur to
establish new business but it requires a dedicated entrepreneur which can overcome all risks and
challenges and move forward (Baron and Tang, 2011). This assignment will cover different
aspects of new ventures and their risks associated with it, different tangible and intangible
resources that are required by start up, assessment of skills and capabilities that are necessary for
launching a venture. It will also cover promotional activities and channels that will support the
launch with monthly cash budgets for pre launch phase of the venture. In addition to that, legal
form for the start up will also be enlightened in this report.
TASK 1
P1 New venture
As an entrepreneur I have started a new venture with name of “The Cafe” which has the
deadly combination of books with bakery items and edibles. This cafe is situated in London,
United Kingdom. I have opened this bakery shop with the aim to earn profits and provide best
bakery items and experience in the whole London. As cafe shops are the most loving places for
friends and family as they prefer these places to spend their valuable time. As I have introduced
variety of new things that are not present in other cafe shop (Bijker and et. al., 2012). I have
introduced wide ranges of books and novels from different writer and popular authors which are
very famous all round the world. I have created a separate portion for reading books where
people can enjoy their coffee and spend their time with their favourite authors. They can also
enjoy different flavours of cake and pastries with wide variety of shakes. I have introduced
different ranges and varieties of cakes, pastries, doughnuts, rolls, hot dogs, pizza, pasta,
macaronies, wafers, chips, coffee, shakes, drinks, etc. I have tried to make a one spot where
people can have anything they like.
I have majorly focused on the quality of raw materials used while making edible items as
they are the crucial part for satisfying and retaining customers. If the quality is best than
1

customers will prefer them over others. It was an innovative idea to introduce a book cafe which
was not established by anyone in the market. It is a new concept and customer may prefer and
like this.
My target customers are people of every age, they might be children, young, teenagers,
young, adults and old people. Everyone is heart fully welcomed at my book cafe. Before
establishing The Cafe, I have conducted several survey in which I have studied about different
markets and customers (Burns, 2017). This gave me with crucial information related to my book
cafe and I came to know that my innovative idea of book cafe was worth to establish as I have
gained positive responses from large number of customers. Following is the competitor analysis:
Competitor analysis is one of the great tool that an entrepreneur can use to identify
different factors and competition that can influence the start up. This have an important influence
and its a new start up and it requires more attention to the competitors which are already present
in the market. I have carried out different steps that are involved in competitor analysis,
following are those steps:
 Identification of current and future competitors in then market : This is the best way to
identify current and future competitors. In order to establish a successful venture, it is
necessary to know about competition and already existing rivals teams who are operating
their business in similar line. With this analysis, I will come to know about various rival
teams and can formulate strategies according to that.
 Performing SWOT: In order to identify company's strength, weakness, threat and
opportunities, marketers can implement SWOT Analysis which is an effective tool to
know about above mentioned factors. Strength and weakness are internal aspects of
company whereas threat and opportunities are external aspects of company. Every
business have their own strength, weakness, threat and opportunities and by identifying
those, company can plan their future business activities.
 Planning of strategies: By identifying all relevant factors and gathering all important
information, marketing team can develop suitable and best strategies out of those
information. In competitive world, it is necessary to build proper activities and plan that
can be implemented sop that my new venture can grow and survive in the market.
2

P2 Tangible and intangible resources that would be required for launch.
There are many goods and items that are required for the establishment of new venture. It
basically involves tangible and intangible resources that are crucial for company. With these
resources various business activities can be easily carried out by employees and is required to
produce different food items and other edible products. Tangible resources mainly includes
equipments, chairs, tables, books, etc. whereas intangible resources includes skills, knowledge,
talents, etc., related to product (Caselli and Negri, 2018). Tangible resources can be easily
purchased from the market as they are easily available. As an entrepreneur, I have to choose best
furniture and machineries that are needed for me to operate my activities. On the other hand,
intangible resources cannot be purchased as they are present in the candidates. It is necessary for
candidates to be well aware about the cafe and they should be capable enough to make delicious
bakery edibles which will attract customers towards them. They should also meet all quality
standards while making different edibles. As an entrepreneur, it is my duty to implement both
intangible and tangible resources because it helps in making profits and achieving goals and
objectives in proper manner. Both these resources are important for growth and success and are
the backbone of my company.
Tangible resources are main assets of company as they facilitate establishment of
company. Without them, no company can think of carrying out their business operations.
Tangible resources refer to physical assets that an organisation possess and can be categorized as
financial, physical and organisational resources.
 Financial resources: It includes funds and cash balances that help in implementing
business activities easily.
 Physical resources: It include current state of buildings, machinery, materials and
productive capacity.
Intangible resources mainly includes intellectual, technological resources, etc.
technological resources is mainly referred to the capability of my organisation to innovate and
the speed with which innovation occurs. Intellectual resources includes different elements such
as patents, copyrights, design rights, etc.
M1
BCG matrix is corporate planning and competitive analysis tool. In this model relative
market share and industry growth factors for evaluating potential of new venture brand portfolio
3

and suggest further investment strategies. It have four quadrants in which firm brand are
classified and these are dogs, cash cows, stars and question marks.
M2
 Strength – major strength of the Cafe is that it have attractive infrastructure which can
easily grab large number of customers from market easily.
 Weakness – business environment is competitive and The Cafe is small venture which
have less number of employees and funds. Due to this they can't spend huge amount on
advertising and promotion.
 Risk – This sector already have large number of companies so for Te Cafe surviving in
market is hard.
TASK 2
P3 Produce a credible proposal to launch a new venture
It is important for business to develop an effective proposal in order to launch a new
venture or start up in right manner. Entrepreneur have to undertake all these steps at the starting
of a new venture so that they can effectively and smoothly run their business and achieve all
their predetermined goals (Kuratko and Hornsby, 2017). Proper planning is done before
performing any activity as it is an essential requirement for an entrepreneur. This ensure
fulfilment of objectives and goals on time. It is necessary to develop a proposal so that
employees can carry out their work smoothly and in efficient manner. Below is the example of
detailed proposal:
Executive Summary The Cafe is an innovative idea which has introduces book and cafe
for the first time and also provides all bakery food items of highest
quality.
Company description The Cafe will establish in London. Owner has selected best place for
business which is present in the main market where they can reach to
large number of customers. This is based on the innovative idea of
entrepreneur which is new for the market as well as customers. So it
is a new point to attract customers towards them. With this idea, they
can maximise their profits and revenues.
4

Market Analysis It requires effective plans and strategies in order to increase goodwill
among competitors. It is a biggest opportunities for organisation for
expanding business at various places. Entrepreneur finds out different
places where they can expand their business. They also use different
tools and techniques like SWOT and PESTEL, that help them to
know about the market and other crucial factors that can influence
their company's profitability.
Financial projection In this, appropriate funds and financial requirements are found out
which will help business at the time of its establishment. It is crucial
part of business because without funds, entrepreneur cannot
implement a single task. So before introducing new venture,
entrepreneur should know all their financial options so that they can
easily and smoothly run their business.
Set standards or
benchmarking
In this plan, entrepreneur set their vision and standards where they
want to see their company in future. For this they plan their further
business activities and tasks and operate according to that. This will
help them in attaining set goals and objectives by providing proper
guidance and direction to the employees and satisfy customers by
fulfilling their desired needs or wants.
P4 Skills and capabilities required to launch a new venture
The Cafe is the book restaurant where people come for preferring coffee and reading
books in sound area. As a perception of entrepreneur, hey required to attract customers regarding
their unique services or facilities. Along with this, it is required for formulate entrepreneurial
skills for going business in more effective manner. There are certain experts which define
entrepreneur as a people who will take effective risk and uncertainty in their business operations.
For smoothly running of business such as The Cafe is attracting large number of customers
towards effective services or facilities in better manner (Fernhaber and Li, 2013). This includes
sales abilities, marketing skills and common people skill which is necessary skill to understand
5

that how business can smoothly run and growth the wealth effectively. The Cafe need following
abilities which has to be developed the entrepreneurship skills. Such are described as under: Manage capital – It is very important if businessman does not manage and handle
money, can not smoothly run business in better way. Along with this, it is necessary for
an entrepreneur is to set company budget as per their business capital. Increase funds – Once businessman understand how to manage capital. It will easy and
simple for get effective money which main motive is to expand THE CAFE branches.
Thus, it will be simple and easy for get money and how to usage it for increasing funds
and resources. Reduces stress – In this, an entrepreneur get confused and frustrated with various issues
or problems so he will struggle in the company. Thus, they need learn required
advantages how to minimize stress within work place (Hmieleski, Cole and Baron, 2012). Ensure regarding productivity – In this section, owner need make sure about business
productivity by department and specialization in The Cafe. It will enhancing their
productivity and profitability abut desired skills with the help of specialization. Empowerment of workforce – For improving and maintaining human resource in The
Cafe so this will assist in increasing and improving the workforce quality and
organization productivity effectively.
 Know your customers – It needs to be simple, clear, without customer, an organization
have no other business. For make sure regarding product and services so they required to
concentrate on desired buyers taste and preferences that includes requirements too.
M3
There is requirement of some skills and knowledge while establishing new venture.
Description of these are as follows:-
 Skills – Several skills are required in entrepreneur while launching new venture these are
Financial management, marketing, sales, customer services, leadership, networking,
problem solving and so on.
 Knowledge – There is requirement of proper knowledge about market including external
and internal factors.
6

TASK 3
P5 Different promotional activities and channels for launching new venture
In this consideration, there are different methods and techniques which are necessary for
promoting company goods and services in better manner. Each organization require to
undertaken all such launching a new venture and this will make appropriate goodwill within
large market place (Kariv, 2013). Along with this, there are different techniques and methods
which help in promoting business activities such as marketing mix will consist components so an
enterprise can develop effective strategies and policies in better manner. Most of the organization
will crate awareness among customers and also try to gaining attention of firm effectively. This
can be described certain promotional methods for promoting The Cafe such as: Using social media or online platform – It is the best appropriate method which assist in
reaching with target audience in effective way. The cafe require to promote their services
or products on online platform such as Instagram, Facebook, linked in, online banners,
Youtube, emails, twitter, etc. there are several customer who are interacting with desired
buyers so it is the best possible way for promoting business in accurate way. Articles and Blogs – It is another appropriate method and tool which assist in creating
awareness and giving accurate information to their customers.
 Mobile billboards – An organization can provide acculturate data and information about
new services or facilities. It is best suitable for The Cafe so they require to undertaken
such technologies and applications.
P6 Develop an appropriate promotional activities plan for both launch and pre-launch
While launching a new venture, there are requirement for developing appropriate
business plan through this customer will be aware about company services or products as a
promotional tool. Different planning activities such as:
Pre-launch promotion – In this, organization plan for make online advertisement,
official websites and web pages for specific business enterprise. Along with this, it is very useful
for method that will help in launching new business which support in creating awareness among
buyers.
Introduce product for promotion – It is the another phase which come after introducing
new venture so firm will try to spread awareness among customers which gaining attention of
7

people for achieving with desired goals and targets (Klotz and et. al., 2014). In addition to this,
The Cafe can determine different promotional tools and methods that includes social media,
blogging, YouTube and advertisements, inauguration, banners and events so customer can aware
about this multiple cafe where both service are available such as books plus cafe.
M4
For new venture which is named as “The Cafe” there is requirement of some promotional
tool so that they can gain better place in the market. Thus, for this new venture event will and
books exhibit will be the best promotional tool. Because through this customer will easily get
attracted. Moreover, in books exhibition if The Cafe place stalls of their food items then same
venture can display their food as well as books both. This will result in sales of both the products
in market area for existing and potential customers.
TASK 4
P7 Monthly cash budget for the pre-launch phase.
Following is a cash budget for launch and pre-launch of new business venture so The
Cafe can prepare effective budget including various aspects such as:
Year 2018 Jan Feb Mar April May
Food Sales amount 42000 41856 41796 45756 44785
Beverage Sales 18562 11481 11400 14625 14235
GROSS SALES (Total) 60562 53337 53196 60381 59020
COGS
Food 13896 13721 13626 13502 13102
Beverage 6526 3963 3150 3985 3522
GRAND TOTAL 17422 17684 16776 17487 16624
GP 43140 35653 36420 42894 42396
General and Administrative
Workers Salaries 15476 13856 13996 14685 15636
Management Salaries 6522 1500 12565 6522 6005
8

Employer Taxes/Benefits (15% Wages) 4000 1200 2000 2000 2000
Employees Compensation (6% Wages) 2000 900 1000 1000 6545
Advertisement 800 800 800 800 800
Bookkeeping 150 150 150 150 150
Credit Card Charges (1%) 130 130 130 130 130
Insurance 250 250 250 250 250
Legal and Professional Fees 150 150 150 150 150
Misc. Other 250 250 250 250 250
Office Supplies 400 400 400 400 400
Rent 462 462 462 462 462
Repair and Maintenance 300 300 300 300 300
Small Equipment 466 466 466 466 466
Telephone [phone]
Garbage 300 300 300 300 300
Utilities 1300 1300 1300 1300 1300
Total Gen. and Admin. (Fixed) 33086 22534 34639 29285 35264
NET PROFIT OR LOSS 10996 10089 10443 10901 11583
SBA Loan 3582 3582 3582 3582 3582
Cash Flow After Financing 7414 6507 6861 7319 8001
Draw 4000 4000 4000 4000 4000
Net Cash Flow 3414 2507 2861 3319 4001
Accumulated Cash Flow 5921 8782 12101 16102
Average Daily Sales / 22 days 2814 2501 2545 2592 2666
P8 An appropriate legal form for the venture
There legal form of venture can be define in various structures according to the
government of the United Kingdom. There are various laws and legislation formed by the
government that are regulated by the government. The legal structure can be define as follows -
9

Sole Proprietorship: The sole proprietor is an individual form of ownership where a one
person is liable to put the capital to start a business and they are also responsible for profit and
loss. There is no sharing of risks of the business the individual have to bare all the risk factors
alone due to lack of partnership. The company is also managed and maintain by the owner of
business in a better way. The business needs to get registered to begin otherwise the government
can impose the penalties. The sole proprietorship is owned by the small and brick and mortars
entrepreneurs like shops and small restaurants, etc (Morris, 2015).
Partnership firm – This is that firm where two or more person come together for
introducing new business venture and also operate their business. Along with this, they are carry
out various resources like land, building, resources and methods that help in making business
well organised in each manner. Partner share profit and loss amount in equal manner. The major
disadvantages of partnership is that each individual is responsible for bear losses at the time of
smoothly running of business.
Public company – Such organization are regulated and operated by government by
nation. In addition to this, public firm share are keep by a person or audience along with includes
private or public firm that ave various nature of businesses. Such firm owned and operated by
private ownership and authority is based on business organization.
Therefore, it can be analysed that The Cafe should undertakes legal partnership form that
is very useful for sharing effective profit or loss according to business regulations. It is important
for company is to determine form so this will help in carry out various ideas and thoughts,
resources and effectiveness at the time of running business(Read and et. al., 2016.).
M5
10

11

CONCLUSION
The above report is based on the launching a new ventures it comprises of several things
which made an impact on the business. The venture is launched with an object give that is to
earn profit by providing them satisfaction. It is important for a business to fulfil the needs and
demands of the customers. To give a impact on business the marketing should be use with
proper manner to earn the profit.
12

REFRENCES
Books and Journals
Baron, R. A. and Tang, J., 2011. The role of entrepreneurs in firm-level innovation: Joint effects
of positive affect, creativity, and environmental dynamism. Journal of Business
Venturing. 26(1). pp.49-60.
Bijker, W. E. and et. al., 2012. The social construction of technological systems: New directions
in the sociology and history of technology. MIT press.
Burns, P., 2017. New venture creation: a framework for entrepreneurial start-ups. Palgrave.
Caselli, S. and Negri, G., 2018. Private equity and venture capital in Europe: markets,
techniques, and deals. Academic Press.
Fernhaber, S. A. and Li, D., 2013. International exposure through network relationships:
Implications for new venture internationalization. Journal of Business Venturing. 28(2).
pp.316-334.
Hmieleski, K. M., Cole, M. S. and Baron, R.A., 2012. Shared authentic leadership and new
venture performance. Journal of Management. 38(5). pp.1476-1499.
Kariv, D., 2013. Female entrepreneurship and the new venture creation: An international
overview. Routledge.
Klotz, A.C. and et. al., 2014. New venture teams: A review of the literature and roadmap for
future research. Journal of Management. 40(1). pp.226-255.
Kuratko, D. F. and Hornsby, J. S., 2017. New Venture Management: The Entrepreneur's
Roadmap. Taylor & Francis.
Morris, M. H., 2015. Entrepreneurship as experience. John Wiley & Sons, Ltd.
Read, S. and et. al., 2016. Effectual entrepreneurship. Taylor & Francis.
Robb, A. M. and Watson, J., 2012. Gender differences in firm performance: Evidence from new
ventures in the United States. Journal of Business Venturing. 27(5). pp.544-558.
Simon, M. and Shrader, R. C., 2012. Entrepreneurial actions and optimistic overconfidence: The
role of motivated reasoning in new product introductions. Journal of Business
Venturing. 27(3). pp.291-309.
13

14