Strategies for Launching New Ventures

The assignment provided is related to the topic of launching new ventures and covers various aspects such as the different types of legal forms for starting a business, including sole proprietorship, limited company, partnership, merger, and acquisition. It also discusses the role of entrepreneurs in firm-level innovation, planning, execution, and the importance of promotion to make people aware about better features or quality of product.

LAUNCHING NEW
VENTURE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Identification of specific target markets and competitive analysis...................................1
P2 Specific tangible and intangible resources that required for a new venture......................2
TASK 2............................................................................................................................................3
P3 Formulation of credible proposal to launch a new venture...............................................3
P4 Skills and capabilities required to launch a new venture..................................................4
TASK 3............................................................................................................................................5
P5 Determination of promotional activities and channels for launching new venture...........5
P6 Formulation of appropriate promotional activities plan for both launch and pre-launch. 6
TASK 4............................................................................................................................................6
P7 Monthly cash budget for the pre and after launch phase...................................................6
P8 An appropriate legal form for the venture.........................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Launching a new venture refers to introduce or start-up business entity developed with
fresh and innovative idea to gain more profits. An organisation is required to face certain
challenges and opportunities that are necessary to be determined to take an appropriate actions to
get desired outcomes. It is necessary to prefer more desired concept of providing new product or
services to people which has wide scope of attaining success (Baron and Tang, 2011).
Companies starts a new venture to expand their business ans boost up their productivity as well
as profitability on regular basis. This report is based on Easy Eat restaurant that provides several
dishes like Italian, Chinese, Spanish etc. and going to launch new venture in Bristol, UK. This
assignment will include investigation and explanation of new venture by identifying specific
target market. It also involves description about several tangible or intangible resources along
with producing credible proposal to launch fresh venture.
TASK 1
P1 Identification of specific target markets and competitive analysis
The Easy Eat is a kind of restaurant that provides several food products and wine to
customers as per their taste and preferences. This restaurant has several food item such as
Chinese, Spanish, Italian, continental, Sea food and many more. They want to launch a new
venture in Bristol with their new concept of providing services through innovative recipes to
people as per requirements of people. They determine scope of their products at particular place
and then decide to open new entity there to fulfil expectations of clients living there (Bijker and
et. al., 2012). This firm has an idea to modify their few dishes according to taste of local people
surviving their which provide support to grab more market share easily with gaining better
profits.
To launch new venture of Easy Eat restaurant, they requires around 1650 square feet area
in Bristol in centre place that requires 4 years to conduct operational activities continuously in an
appropriate manner without any problem. They have arranged a sufficient amount of capital
which is needed to be invested approximately £ 320000 for introduce new concern to expand
business and earn more profits.
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Objectives:
 To grab more market share to earn better profits.
 To render goods or services to desired customers of that area which is out of reach.
 To maintain better good will in front of customers influence their behaviour.
Mission: To provide better quality food products easily to clients that are out of reach and fulfil
their requirements of buying taste or fresh food.
Target market: This can be described as an important which should be conducted by an
entrepreneur to know about actual scope of new product which ensure about success of the same
(Burns, 2017). It will help to understand present tends of market and behaviour of client that
facilitate to build more accurate strategy to achieve desired goals. Market segmentation should
be done as per certain factors like demographic, geographic and psycho-graphic.
Competitive analysis: This refers to observe and analyse thoroughly about strategies or
policies of present competitors in market in which Easy Eat restaurant is going to launch new
venture. It is well known that already existing firms has their own market share and huge client
base. They have compete with several competitive restaurants like Casamia, Bravas and Eat a
Pitta through focussing on quality and multiple alternative food items to establish a successful
venture.
P2 Specific tangible and intangible resources that required for a new venture
There are different types of resources which are carrying out various activities or tasks in
an organisation while starting new venture to properly attempt requirement of operations for
particular period of time. It is necessary to conduct several procedures continuously to attain
better profits. Easy Eat restaurant have to make sure about collection of different desired
resources which provide support to run in fresh start up of entity and successfully introduce to
earn more profits. The resources are basically classified into two elements that is tangible and
intangible that are important t run business properly (Caselli and Negri, 2018).
Tangible resources: This can be explained as to such resources that are physically
visible and able to touch. It includes food products and serving procedures in more creative
manner along with immediate service of providing food items as per order of client in correct
way.
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Intangible resources: The term intangible resources refers to those things which are not
physically visible and cannot be touched. It considers feelings, comfort peace, care service,
friendliness, aesthetics and so on.
Tangible resources Intangible resources
 Specialize chefs, managers, delivery
boys and waiters.
 High quality of ingredients.
 Websites and technology.
 Patents.
 Speed of service.
 Cleanliness of restaurants.
 Brand equity.
 Customer loyalty.
 Health awareness.
 Organic, family and local lifestyles.
 Technical expertise.
 Wholesome supplier relations.
 Sustainability.
TASK 2
P3 Formulation of credible proposal to launch a new venture
The launching a new venture have main motive to attain desired goals or objectives along
with improve profitability as well (Fernhaber and Li, 2013). It is be necessary to frame an
appropriate plan of action of to conduct every task in correct direction to gain desired outcomes
properly. Planning will help to determine future challenges and opportunities that facilitate to
take an appropriate actions to reduce risks and grab possible profits. It is also helpful to direct
overall efforts of whole staff members in correct way which are supportive to achieve desired
objectives properly. Hence, a plan of action to launch a new venture for Easy East restaurant is
given below:
Executive Summary: The Easy Eat restaurant is all about to produce more delicious and
tasty food times as per needs and demands of clients to fulfil their expectations along with
satisfaction as well. They render several products such as burgers, sandwiches, soft drinks,
pastries, pizza and so on (Hmieleski, Cole and Baron, 2012).
Company description: The Entrepreneur have to a creative idea or concept top provide
tasty food products to customers as per their desires at reasonable price and make them available
in streets of Bristol in United Kingdom. The main motive is to render better quality and delicious
food to customers which is easily affordable for them.
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Market Analysis: This includes the criteria of conducting survey to determine scope fir
their restaurant in particular area after analysing impact of different internal and external factors.
An entrepreneur is required to put efforts for carrying out PESTEL and SWOT analysis to
identify several opportunities and risks that facilitate to take an appropriate steps to expand
business successfully (Kariv, 2013).
Financial projection: The East Eat restaurant is required a sufficient amount of funds to
invest as it is considered as first step of starting up fresh business and run it in smooth manner. It
is necessary to put an accurate capital into business to conduct required procedures properly to
gain better outcomes.
Benchmarking: The competitor having higher profits share in market should be
considered as benchmark which helps to build more effective strategies which facilitate to gain
desired profitability. It will motivate employees to perform well and do hard work to match their
level to the bench of competitor which helps to improve brand image.
P4 Skills and capabilities required to launch a new venture
There are different types of skills and capabilities which are necessary to launch a new
venture in more appropriate manner to enhance business along with earning better profits. An
entrepreneur has their own several innovative and creative abilities through they can introduce
new concept in market by expanding business to boost up regular productivity as well as
profitability. Some of special abilities which are important top launch fresh venture is given
below:
Capability to manage funds: This can be described about an essential skills to manage
available amount of capital to carrying out different activities while launching fresh venture to
generate desired outcomes. It is necessary to carry off money in correct way along with
maintaining certain funds to tackle emergency situations properly (Klotz and et. al., 2014).
Addressing risk factors: The risks are required to be determined by an entrepreneur to
take an accurate actions to reduce their negative impacts on business. A creative and experienced
person have an effective quality to conduct analysis of identifying possibility of issues
previously which facilitate to take take desired steps to achieve better results.
Respond to change: This can be explained as to observe, analyse and evaluate several
modifications which are generally introduced in changing trends of market. It will provide
support to build an appropriate strategy for respond to certain changes properly.
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Leadership skills: An entrepreneur must leadership skills so that they can direct efforts
of employees in correct way to generate requires outcomes in proper manner. It includes to
motivate staff members to perform their tasks properly and convey tactics to achieve growth in
career. They should have an effective personality that influence sub- ordinates to follow
instructions in correct manner (Kuratko and Hornsby, 2017).
TASK 3
P5 Determination of promotional activities and channels for launching new venture
The promotional activities are part of marketing department through which product or
brand can be promoted in market. It is necessary to determine more effective as well as efficient
procedure of promotion to make people aware about better features or quality of product.
Launching a new venture of restaurant is required to provide information to customers about
fresh concept of business which is beneficial for them in an appropriate way. Some of
promotional activities that are beneficial for Easy Eat restaurant are given below:
Social media: This can be described as to utilise several social media platforms such as
Facebook, Twitter, YouTube, blogs. Podcasts, image captions and so on. These different
methods can be use by companies to conduct promotional activities more effective as well as
efficient manner to create better outputs.
Distributing fliers: The term distributing-fliers can be described as to prepare an
attractive and effective fliers and then distribute them to people living at a place to render
information about menu, serving style and venue properly. It is helpful to make people
convinced to purchase products and facilitate to gain more number of customers (Morris, 2015).
Advertisements: This can be explained to display an efficient advertisement through
several channels such as television, radio, newspapers, magazines etc. These are usually
conducted in correct manner to make people aware about quality of food items so that people get
encouraged to buy product to fulfil their desires.
Personal promotions: The term personal promotions refers to use several easy methods
to promote new venture in front of nearby living local people so that they will become aware for
several food products. It will provide support to generate better face- to- face interaction
between customers and restaurant successfully that facilitate to gain trust and loyalty of clients.
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P6 Formulation of appropriate promotional activities plan for both launch and pre-launch
There are different types of promotional activities which are carried out by various kinds
of business ventures to promote their products or brand in front of clients. It includes motive to
make people aware about better quality of food items and attract them towards them which
facilitate to gain more number of consumers and improves sales & profits of business
successfully. The Easy Eat is required to prepare an effective promotional activity for both
launch and pre-launch to face high competition of market.
Pre-launch promotion: This can be described as to conduct several promotional
activities before introducing new concepts in market (Read and et. al., 2016). It will includes to
prepare websites or pamphlets to provide information to people about new venture before
launching it in market.
Launch: The promotion at time of launching new venture includes host opening parties
where media representatives and some of famous individuals are incited to garb attraction of
more citizens to promote venture successfully.
TASK 4
P7 Monthly cash budget for the pre and after launch phase
The cash budget provide support to get an accurate information about various activities
along with amount which is going to spend on them separately. It includes the data or record
about various in flows and out flows of funds in given period of time (Robb and Watson, 2012).
This can be considered as helpful knowledge that provide support to manage capital to carrying
out different types of procedures in an appropriate manner. East Eat is required to be focus on
cash budget as it should be formulated in an effective as well as efficient manner. The cash
budget of Easy Eat for pre and after launch phase of first 12-18 months is given below:
Cash budget of Dream Delicious restaurant before launch
Year 2015 Jan Feb Mar April May
Food Sales amount 42,152 42,563 43,526 43,568 44,124
Beverage Sales 19,751 12,451 12,456 13,452 14,528
GROSS SALES (Total) 61,903 55,014 55,982 57,020 58,652
COGS
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Food 14,525 14,046 14,364 14,377 14,561
Beverage 6,515 3,113 3,114 3,363 3,632
GRAND TOTAL 21,040 17,159 17,478 17,740 18,193
GP 40,863 37,855 38,504 39,280 40,459
General and
Administrative
Workers Salaries 15,476 13,754 13,996 14,255 14,663
Management Salaries 3,400 3,400 3,400 3,400 3,400
Employer
Taxes/Benefits (15%
Wages) 2,265 2,058 2,087 2,119 2,168
Employees
Compensation (6%
Wages) 1,133 1,029 1,044 1,059 1,084
Advertisement 800 800 800 800
800
Bookkeeping 150 150 150 150 150
Credit Card Charges
(1%) 619 550 560 570 587
Insurance 250 250 250 250 250
Legal and Professional
Fees 100 100 100 100 100
Misc. Other 250 250 250 250 250
Office Supplies 175 175 175 175 175
Rent 3,200 3,200 3,200 3,200 3,200
Repair and
Maintenance 300 300 300 300 300
Small Equipment 200 200 200 200 200
Telephone [phone]
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Garbage 200 200 200 200 200
Utilities 1,200 1,200 1,200 1,200 1,200
Total Gen. and Admin.
(Fixed) 29,867 27,766 28,062 28,378 28,876
NET PROFIT OR LOSS 10,996 10,089 10,443 10,901 11,583
SBA Loan 3,582 3,582 3,582 3,582 3,582
Cash Flow After
Financing 7,414 6,507 6,861 7,319 8,001
Draw 4,000 4,000 4,000 4,000 4,000
Net Cash Flow 3,414 2,507 2,861 3,319 4,001
Accumulated Cash
Flow 5,921 8,782 12,101 16,102
Average Daily Sales /
22 days 2,814 2,501 2,545 2,592 2,666
Cash budget after first 12-18 months
June July Aug Sept Oct Nov Dec
YTD
2013
44,325 44,658 45,210 45,325 46,251 46,325 47,125 5,35,152
15,574 15,487 16,421 16,251 17,452 17,245 17,845 1,88,913
59,899 60,145 61,631 61,576 63,703 63,570 64,970 7,24,065
-
14,627 14,737 14,919 14,957 15,263 15,287 15,551 1,77,215
3,894 3,872 4,105 4,063 4,363 4,311 4,461 48,806
18,521 18,609 19,025 19,020 19,626 19,599 20,013 2,26,021
-
41,379 41,536 42,606 42,556 44,077 43,972 44,958 4,98,045
- - - - - - - -
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14,975 15,036 15,408 15,394 15,926 15,893 16,243 1,81,016
3,400 3,400 3,400 3,400 3,400 3,400 3,400 40,800
2,205 2,212 2,257 2,255 2,319 2,315 2,357 26,618
1,102 1,106 1,128 1,128 1,160 1,158 1,179 13,309
800 800 800 800 800 800 800 9,600
150 150 150 150 150 150 150 1,800
599 601 616 616 637 636 650 7,241
250 250 250 250 250 250 250 3,000
100 100 100 100 100 100 100 1,200
250 250 250 250 250 250 250 3,000
175 175 175 175 175 175 175 2,100
3,200 3,200 3,200 3,200 3,200 3,200 3,200 38,400
300 300 300 300 300 300 300 3,600
200 200 200 200 200 200 200 2,400
150 150 150 150 150 150 150 1,800
200 200 200 200 200 200 200 2,400
1,200 1,200 1,200 1,200 1,200 1,200 1,200 14,400
29,256 29,331 29,784 29,768 30,416 30,376 30,803 3,52,684
-
12,122 12,205 12,822 12,788 13,661 13,596 14,155 1,45,361
3,582 3,582 3,582 3,582 3,582 3,582 3,582 42,984
8,540 8,623 9,240 9,206 10,079 10,014 10,573 1,02,377
4,000 4,000 4,000 4,000 4,000 4,000 4,000 48,000
4,540 4,623 5,240 5,206 6,079 6,014 6,573 54,377
20,643 25,266 30,505 35,712 41,791 47,804 54,377
2,723 2,734 2,801 2,799 2,896 2,890 2,953
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P8 An appropriate legal form for the venture
There are different types of legal forms of through which new ventured can be introduced
in market to expand business successfully. It will provide support to organise business in proper
structure as per legal rules and make string company to run business-concern properly. To launch
anew venture, am entrepreneur can adopt any of suitable method such as sole proprietor, limited
company, partnership, merger and acquisition according to size and scope of business. Some of
these techniques are described below:
Sole-trader: This can be explained as a kind of business entity that is running by an
individual who is considered as sole owner of the same. In such types of firm, the owner have
unlimited liability for business but bear whole authority to control operational activities or
procedures as well. Sole proprietorship requires limited amount of capital to start new venture
with less needs of operations (Simon and Shrader, 2012).
Limited company: The term limited company refers to establish new business
organisation at particular geographical area to carrying out various kinds of operational activities
to create desired osteotomes. It includes to launch a venture as firm and organise at different
location to provide services to desired clients properly. This will require sufficient amount of
funds to manage regular procedures that are conducted to generate daily based outcomes in an
appropriate manner.
Partnership: This can be described as to establish a partnership with other organisation
that already has better profit share in that market in which new venture is going to be launched. It
will help to grab market share easily through maintaining partnership with existing company to
achieve success.
Merger and acquisition: The merger and acquisition can be considered as method of
launching new venture properly. When two firms will get merged and become fresh company
with new brand then it is called merger. Acquisition is done when a powerful company will
purchase the small firm and then fresh business will known by name of large business.
CONCLUSION
The above report had concluded that launching a new venture is all about to introduce
new business entity developed with fresh and innovative idea to gain more profits. It is important
to carrying out certain procedures continuously to attain better profits. Planning will help to
determine future challenges and opportunities that facilitate to take an appropriate actions to
10

reduce risks and grab possible profits. It was mentioned to conduct more effective as well as
efficient procedure of promotion to make people aware about better features or quality of
product. The different types of legal forms of launching new ventures is discussed in the given
file. It includes several suitable method such as sole proprietor, limited company, partnership,
merger and acquisition according to size and scope of business.
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