New Venture Creation Assessment - Desklib

The new venture creation assessment deals with the analysis and evaluation of a business idea which shows viability in the long run. This report will cover the various factors and relevant points regarding the product description, aims and objectives of the business and vision of the start-up. The business proposal plan conducts market analysis and examine competitiveness of the firm in the market. It also covers the aspects related with the ownership and management structure along with the requirements of resources for the project.

New Venture
Creation Assessment
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Executive Summary
The new venture creation assessment deals with the analysis and evaluation of a business idea
which shows viability in the long run. This report will cover the various factors and relevant
points regarding the product description, aims and objectives of the business and vision of the
start-up. The business proposal plan conducts market analysis and examine competitiveness of
the firm in the market. It also covers the aspects related with the ownership and management
structure along with the requirements of resources for the project.
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Table of Contents
Executive Summary ........................................................................................................................2
Introduction ....................................................................................................................................4
Main body .......................................................................................................................................4
Business description....................................................................................................................4
Opportunity analysis, research and marketing plan....................................................................5
Financial plan............................................................................................................................10
Management team, organization structure and operations.......................................................13
Conclusion ...................................................................................................................................14
References ....................................................................................................................................15
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Introduction
The creation of a new business venture is the process involving formation of detailed
plans and policies that is required in order to provide value to the consumers. The creation of a
new business venture considers the requirements of market and its viability depends upon
various decisions and factors which are taken into consideration. In this report, a business plan is
discussed in detail covering all the relevant factors and concepts regarding a business. This
includes the business overview, clarity, consistency, and originality of value proposition along
with the clear identification of target market segments. This assessment conducts detailed
examination of comprehensiveness of market and competitor analysis. In addition to this, the
report includes the identification of resources required and financial decisions. The report covers
various aspects and decisions regarding the new business venture including the management
approaches, decisions regarding business structure and skill analysis. It broadly discuss the ideas
and details regarding the ownership and role of co workers and staff members.
Main body
Business description
Name of the business and description of product
The business plan that is being developed is of a coffee cafe which would be named as
“The roasted beans” which will be situated in London. The place where cafe would operate is
going to be a rented well furnished space. The location of the cafe will be selected in a busy area
nearby offices and corporations to induce the customer base through delivering the top quality
coffee. The roasted beans cafe aims to cater to the needs and requirements of consumers through
fulfilment of their preferences (Kampelmann, Raufflet and Scialpi, 2021). The main product that
will be served to the consumers would be coffee and other beverages with varieties. The cafe
will provide cozy and vibrant ambience where people could catch up with their friends and
refresh after completing their long busy schedules.
Vision of the firm
The vision for a business plan is significant in deciding the level of appreciation a
business is likely to gain from the society. A business is obligated to fulfil social responsibilities
considering the cultural aspects and trends prevailing in the market (Hsu, Chuang, and Wang,
2021). The main objective and vision for this business plan is to serve and satisfy the wants of
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people by providing them quality beverages at reasonable prices. The roasted beans cafe aims to
attain the maximum engagement of youngsters and corporate colleagues through delivering
varieties with great taste. This place aims to provide audience with a premise where coffee lovers
would like to come for enjoying some quality time.
Mission and objectives
The aims and objectives of a business plan is very important in order to determine how
the business will operate and gain recognition in the long run. The creation of a business venture
should carefully and clearly evaluate the course of actions that needs to be executed in order to
fulfil determined missions and objectives (Higgins-Desbiolles and Wijesinghe, 2018). The main
motive of this business venture is to gain high market share through making the brand renowned
in the market. The business aims to attain the recognition and reputation in the market where
customers appreciate the quality offered by the cafe.
Unique selling proposition
This business venture would attempt to bring differentiation through delivering coffee
based beverages for which raw materials came directly form farms ensuring best quality and
taste. The cafe will make effective use of paper and steel straws to avoid usage of plastics and
promote environmental friendly practices (Albinali, 2021). This organisation aims to avoid the
involvement of intermediaries in their procurement process which ensures implementation of
low cost strategy. The direct acquirement of coffee beans through farms will reduce the cost and
would help in grabbing attention of maximum consumers through offering products at
reasonable prices.
Intellectual property details
This business venture will avail the requirements of patents regarding the cups and
packaging designs that the cafe will use in order to keep their products customised. Through
acquiring patents, it will prevent the imitation of designs and would bring standardisation in the
product of the new venture.
Opportunity analysis, research and marketing plan
STP of The Roasted Beans
It is a tool that focuses on creating market strategies for discovering the customers and
selecting the most valuable market segment for a business. In context to this, The Roasted beans
has been considered whose description is given below:
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Market Segmentation: It refers to the single market that can be divided into many smaller
segments. It helps to understand the needs of target customers and would be able to manufacture
products according to their consuming habits(Shah, Azhar and Bhutto, 2019).“The Roasted
Beans” has adopted demographic market segment which is described below:
 Demographic segments: This segment is divided on the basis of age, gender and classes
of people by which The Roasted Beans has well thought out for youngsters on ground of
age because they prefer much coffee as comparison to elders and help them in designing
products according to their taste habits.
Target Market
The Roasted Beans has targeted the youngsters of each classes of the people in the UK market
because the youngster or the corporate colleagues prefer more coffee to fresh up
themselves(Cao, Han, Zhao and Mu , 2022). So this would be helpful in gaining revenues as the
youth of the country visits more in the cafes on regular basis.
Market positioning
The Roasted Beans would use social media platform, websites, vast advertisement and
promotions to encourage their business or brand. This would also be useful in attracting the
customers towards their products because people are engaged in the usage of social networking
sites.
Market research
This is a process used by company to gather information about the targeted market to
understand the behaviour or interest of the customers towards the products or services. This will
help in designing better products and making marketing strategies to pull the customers
in(Nurillaevna, Zhabborovna and Sodikovich, 2020). The Roasted Beans would conduct the
research for their targeted market and will get the opinions and feedback from the customers.
This can be conducted through various methods that are depicted below:
 Qualitative market research: The purpose of this research is to understand the
psychology of an individual by their perception, attitudes, and needs towards the product.
This would help “The Roasted Beans” in identifying the likes or dislikes, expectations,
barriers that influence the customers purchase and competitors as well. This can be done
through focusing groups and depth interviews of an individual.
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 Quantitative market research: It is a technique used by an organisation to ask
question to the targeted audience by conducting surveys, polls or questionnaire. The
feedback of the buyers would help “The Roasted Beans” in making well decision for
designing their products and gain customer satisfaction.
Industry Analysis on basis of Porters Five forces model
This model has been developed by the Michael porter to help the business executive in
understanding the level of competition in the industry. It also helps the company in enhancing
the profit through various strategies and gain the competitive advantage by analysing the
external environment. These are the five forces that would use by The Roasted Beans to identify
the competition in the industry which are as under:
 Competition in the industry: It refers to the competitors present in the industry with
their number of equivalent products and services. When there are less competitors in the
market so the company have an opportunity to charge higher prices and gain profits. In
context to The Roasted Beans, it has many competitors in the industry like Starbucks,
Cafe Coffee Day, Dunkin Donuts etc.( Fan, Wei, Li, and Hong, 2020) that have loyal
customer. Therefore, it's may be difficult to deal with the existing rivals and convince
customer for switching to its products. So it has to get information about the rivals from
the customers, suppliers and employees as well and develop strategies to overcome this
trouble.
 Potential of new entrants into the industry: The power of the company can be
affected by the new entrant in the market. But, with reference to the The Roasted Beans
that is itself a new company and entering into the existing industry. So,it has to offer its
supplies at reasonable prices and various offers to gain the competitive advantage over
existing players.
 Power of supplier: It refers to the costs of inputs of goods and services that the suppliers
sell to the business concern. So in context to The Roasted Beans, the profit margin of the
company would also be impacted as the price at which the suppliers sell their products
will determine the price of the finished goods.
 Power of buyers: It refers to the power of negotiation for lower prices and better deal
by the customers. This may affects the company's competitive strategy as the buyer can
easily switch over to another product if not satisfies with the price of the products. In
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relation to The Roasted Beans, it can reduce the bargaining power of the customers by
providing them unique products of roasted beans.
 Threat of substitute products: The substitute products provide more opportunity to the
buyers on basis of quality and prices. In context to The Roasted Beans, this would
increase the high competition in the industry since the buyer always go foe quality ans
low priced products. So, it has to develop strategies of providing great quality and
reasonable products.
Marketing mix
The marketing mix refers to the analysis of basic components and elements which
decides the viability and progress of a business in long run. The four major components of
marketing mix are product, price, place and promotion.
Product
Product refers to the commodity with addition of value which is suppose to provide
utility to the consumers. The product decisions are most critical for the constructive performance
of a company in order to enhance growth and development of the organisation. The viability of a
product is majorly depends upon its demand and supply factors in the market (Pandit and et.al.,
2020). The decision regarding a product is taken after analysing numerous determinants which
affects the product. The product provided by the roasted beans would be coffee and related
beverages including a vast varieties. The enterprise will deal in offering wide range of coffee
products including cappuccino, espresso, latte, americano and other such varieties in different
flavours. The varieties of their product would include caramel coffee, hot chocolate, ice-cream
coffee, hazelnut coffee, nutella coffee and other palatable beverages. Through conducting
research and promoting innovation, the business plan would keep discovering and adding more
varieties in their product line. The main objective of this business venture is to occupy high
market share and make the brand popular. The viability of a product is majorly related to the
elements of packaging which bring standardisation to the product and makes the product look
customised in the market.
Price
Price is the factor which determine the level of customers that an organisation is likely to
attract in the course of business. The formulation of pricing strategies majorly depends upon the
costs incurred in the process of manufacturing and production. The price of a product is decided
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taking into consideration numerous aspects related to it (Ravihara, Danthanarayana and
Fernando, 2019). Sometimes large companies keep their prices high to maintain the prestige and
esteem of their brand in the market due to the factors of differentiation. While other times firms
decide their pricing policies through following technique of sales maximisation by offering
reduction in prices. The pricing factor is very crucial in the process of a new business venture
assessment. Consumers are tend to prefer products which provide maximum utility to them at
most reasonable price. Due to the emergence of various businesses, the availability of product is
high and the audience will select the product which is likely to provide great satisfaction while
spending lower on prices. The pricing strategies formulated for this business plan would consider
the element of sales maximisation and set the prices according to the value added in the product.
The prices of the coffee would be decided in a way that it is affordable to consumers with middle
and low income level. The main objective of this business is to build a base of loyal customers
where they appreciate the quality and prices of the beverages that are being offered.
Place
The decision of location and place where routine business operations are conducted is
very relevant and important to determine the accessibility of product or services to the potential
consumers. A business venture where major operations are executed should consider a location
which is within the area of consumer reach (Gunawan, 2020). Moreover the place should be
situated in a commercial location where it could grab attention of maximum individuals. The
roasted beans cafe would be situated in the area which is approachable to youngsters and
corporate colleagues. The locality of this venture is likely to grab attention of people attending
universities and offices which are nearby to the cafe. The convenient location of the roasted
beans cafe would facilitate the maximum engagement of individuals to access the products that
are being offered. Beside this, the cafe would focus on the interior designs and ambience where
people feel relaxed and could enjoy the vibe with warmth of coffee. The surroundings of the cafe
would play a major role in engagement of consumers. Youngsters prefers to visit cafes with
attractive backgrounds and interior designs where they could feel comfortable and cozy. Theme-
based cafes are getting very popular as sometimes youth only visit cafes to feel the vibe and to
catch up with their friends and colleagues. Therefore this cafe would ensure that the ambience is
beautiful and maintains good hygiene to comply with food standards.
Promotion
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After finalising decisions regarding product, price and place, the business plan is
incomplete without deciding effective techniques of promotion. The element of promotion is
very much crucial for determining the scope of expansion of a business venture. In order to
induce sales of a company, it is highly essential for the organisation to invest in the areas of
promotion through advertisements and commercials. The expenditure for the purpose of
promotion depends upon the size of an organisation (Langaro and Martins, 2020). Large
companies which are likely to generate high revenues invest heavy amounts on advertisements.
In context to the roasted beans, the organisation will mainly promote their business with the help
of social media marketing and through distribution of pamphlets. The organisation will create
accounts and website which would display all the relevant information regarding the location
and services offered by the cafe. The firm would also make strategies regarding discounting
policies and exciting offers to induce the purchases. The firm would establish constructive and
effective strategies like providing the best item of menu for free to their first customers. This will
helps in establishing goodwill of the firm and will increase the number of consumers.
Financial plan
This business venture will make statements mentioning the requirements of funds and
capital resources to carry the operational activities of the firm.
Sources of funding
A company needs finance to start a new business for which it can take financial assistance in the
form of loan from various sources like banks, government, equity capital and so on. In context to
this, The Roasted Bean has been considered that is a new coffee house and is being opened in
UK market for which funds would be raised that are describe below:
 Private Banks: The roasted bean can get loan and overdraft from the bank and repay it
on the basis of instalments with interest.
 Debt capital: This can also source new funds by issuing debt securities to the public
such as corporate bonds or debentures(LASO,2018). This would help The Roasted Beans
to get finance for its business.
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Contingency plan and growth aims
A contingency plan helps a company in preparing against the uncertain events which
could disrupt the course of a business entity. The main motive behind development of a
contingency plan is to save an organisation from unwanted happenings (Vallaster and et.al.,
2018). It helps in preventing the discontinuation of work due to any reason through effective
planning. The contingency plan for this business includes the following tasks:
 Backing up all the necessary data related to the firm's website and accounts
 Maintaining considerable amount of capital balance in case any emergency occur due to
issues regarding the premises and machineries
The firm aims to achieve remarkable growth and success in future through reaching out
to potential number of consumers. To ensure growth and development of the organisation, the
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firm would lay emphasis on application on business frameworks and strategic tools. The venture
will follow approaches like Swot analysis, pestle analysis and models like ansoff matrix to
determine its competitiveness in the market.
Break-even analysis
A break-even analysis is referred as a financial structure which determines the point
where business have earned equivalent to the amount of costs incurred in its start-up
(Annamalai, 2021). The break- even point in a business is attained when the market price of a
product becomes equal to its cost price.
Break-even point (in units) = Fixed Cost / (Selling price per unit – Variable Cost per Unit)
Fixed Cost = 132980
Variable Cost = 16580
Variable Cost per unit = 16580 / 6000 = 2.76
Selling Price Per unit = 300
Break-even point = 132980 / (300 – 2.76) =447.383 units
Management team, organization structure and operations
Ownership and management of the business
The development of a business plan conducts evaluation of various structures namely
sole proprietorship, partnership and company etc. The structure of an organisation depends on
the size of the business and number of employees required to carry the operational activities of
an organisation. The start-up of the roasted beans cafe is going to be a partnership venture where
profit would be equally divided among the respective partners (Rashid, 2020). The business
venture would cordially managed by the respective partners. Few workers would be hired to
facilitate the day to day routine activities of the business firm. The firm will hire efficient and
productive waiters for the purpose of serving coffee to the customers.
Skills, training and equipments required
The proper execution of this business venture would require the necessary skills and
abilities to handle the routine activities facilitating business. This start-up needs the acquisition
of potential workers who possess qualifications related to the hotel management course. The firm
will hire competent individuals with previous experience of producing beverages in renowned
cafes. This venture would hire full time and part time waiters to serve the customers properly.
Proper training would be conducted which will enable them to deal with the daily operations of
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the firm. The accounting procedures of the firm would be managed and handled by the
respective partners with the help of modern accounting software. The creation of this venture
would include the procurement of major assets and equipments including coffee making
machineries and grinders. Other equipments like microwave, refrigerators dishwashers, dustbins
etc. would be purchased and organised in the premises.
Conclusion
As per the view of the respective business proposal report, it has been concluded that this
business venture shows potential success in future. The start-up of the roasted beans is a viable
and sustainable business plan as the choices and preferences of consumers are highly inclined
towards the coffee based beverages. This business venture would attempt to bring innovation and
new creations in their business course after establishing its brand presence in the market. The
evaluation of this new venture creation concludes that the initiation process of a business
requires thorough analysis of numerous elements which influence the capital needs and revenue
generation. This business idea is likely to yield desirable outcomes with the attainment of high
profitability margins. The establishment of this partnership firm is capable of achieving growth
and development with effective formulation of business plans and strategies.
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References
Books and Journals
Albinali, A.B.H.A.A., 2021, September. The Effect of Viral Marketing Using Social Media on
Small and Medium Enterprise‘s Brand Awareness: Evidence From GCC Market.
In ECIE 2021 16th European Conference on Innovation and Entrepreneurship Vol 1 (p.
99). Academic Conferences limited.
Annamalai, S., 2021. A multivariate analysis and investigation on break even and productivity
measures using artificial intelligence: A post research work in textile process
industries. Materials Today: Proceedings, 46, pp.9613-9616.
Cao, S., Han, X., Zhao, Q., Xu, J. and Mu, R., 2022. Marketing Strategy of Distribution Network
of Power Supply Company. In Innovative Computing (pp. 109-116). Springer, Singapore.
Fan, G.F., Wei, X., Li, Y.T. and Hong, W.C., 2020. Forecasting electricity consumption using a
novel hybrid model. Sustainable Cities and Society, 61, p.102320.
Gunawan, D., 2020. The Role of Marketing Mix, Corporate Image and Brand Equity in Purchase
Decision of Daihatsu Ayla. Journal of Management and Business Environment
(JMBE), 2(1), pp.94-114.
Higgins-Desbiolles, F. and Wijesinghe, G., 2018. The critical capacities of restaurants as
facilitators for transformations to sustainability. Journal of Sustainable Tourism.
Hsu, R.S., Chuang, A. and Wang, A.C., 2021. Business founders' work design and new venture
development. Journal of Business Venturing, 36(1), p.106000.
Kampelmann, S., Raufflet, E. and Scialpi, G., 2021. Earth, wood, and coffee: empirical evidence
on value creation in the circular economy. In Environmental Sustainability and
Economy (pp. 197-217). Elsevier.
Langaro, D. and Martins, L.B., 2020. The Use of Augmented Reality in the Marketing Mix of
Physical Products: Current Practices and Future Implications. In Managerial Challenges
and Social Impacts of Virtual and Augmented Reality (pp. 55-75). IGI Global.
LASO, I., 2018. PUBLICCHAPTER5 OF FUNDING SOURCES. Entrepreneurial Finance: The
Art and Science of Growing Ventures, p.129.
Nurillaevna, T.Z., Zhabborovna, R.G. and Sodikovich, S.I., 2020. Marketing researches in
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Research (AJMR), 9(5), pp.360-364.
Pandit, P. and et.al., 2020. Sustainability in Fashion and Textile. Recycling from Waste in
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Rashid, M.M., 2020. Ownership structure and firm performance: the mediating role of board
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Ravihara, A.M.G., Danthanarayana, C.P. and Fernando, P.I.N., 2019. The Impact of e-Marketing
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Shah, S.A., Azhar, S.M. and Bhutto, N.A., 2019. Halal marketing: a marketing strategy
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Vallaster, C. and et.al., 2018. Responsible entrepreneurship: Outlining the
contingencies. International Journal of Entrepreneurial Behavior & Research.
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