New Venture Creation: Ta-Bi Bikes in London

This report discusses the planning and execution of a new venture, Ta-Bi Bikes, in the London market. It covers the marketing plan, management team, financial plan, and more.

NEW VENTURE
CREATION
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Executive Summary
Ventures are new businesses which entire the market and get in more varieties in the
market for the customers to select their products and services from. The following report is going
to discuss a new venture which is entering a new market and the planning which is required in
order to be able to make a place for themselves in the market. The new venture which has been
selected in the further report is Ta-Bi Bikes which is going to be operating in London. The
organization is going to not just provide the clients with rides from one location to another on
Bikes but also rent out Bikes which is authentic and the trust of the clients can be gained easily.
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................5
Marketing plan.............................................................................................................................5
Management team and company structure..................................................................................9
Financial plan ................................................................................................................................10
Sources of funding ....................................................................................................................10
Cash flow forecast for one year ................................................................................................10
Profit and loss statement ...........................................................................................................11
Balance sheet ............................................................................................................................12
Contingency plan.......................................................................................................................13
Break-Even analysis ..................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
Business name- The proposed name for this business idea is Ta-Bi Bikes in which Ta-Bi stands
for “Taxi Bikes” which showcases the services which are being provided by the company to the
customers for achieving high level of customer engagement.
Business description
The company tend to provide services like rental bikes to the customers so that customers can
rent a bike and make their travels to their desired location and in this the charging will be done
on different aspects like time duration for travelling or distance covered by the bike. With that
Ta-Bi Bikes also tend to provide services like bike taxies in which single customers will be
provided by bike drivers just like car taxies. Through which single customers can plan their
journey efficiently and can achieve fast transportation between places at low pricing while
avoiding the time consumption in traffic jams in this the pricing is based on distance covered by
the bike between places.
Opportunities for Ta-Bi Bikes- Company tend to provide its rental bike services to the
customers which they can order through the means of mobile application and company website.
This is an effective way through which company can also make its creative advertisements and
by which it can achieve high level of customer engagement at reduced pricing (Dabara and et.al.
2018). With that since organizational services are being provided to the customers in the form of
rental bike in which the pricing is based on two different aspects through which company can
achieve high profit margin and achieve efficient economic growth.
Description of services- Ta-Bi Bikes tend to provide services like rental bike to the customers
which they can order or book a ride through the mobile application. Apart from utilizing rental
bike services company also tend to provide services like bike taxies in which customers will be
having a taxi like service through which they can use for travelling between different places
(Paul, Das and Mathur, 2020). This has to be provided through mobile application and in which
customers are empowered to make their travel schedules so the high level of accuracy can be
achieved.
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Unique benefits- UK's streets are being filled with large amount of cars and because of which
individuals often have to face traffic jams, but as compared to facing traffic jams bikes are an
efficient way of transportation which can pass through tight spaces and also at the same time are
highly cost effective. Due to this benefit company tend achieve high level of customer
engagement because single travelling customers are often searching for an efficient way of
transportation at reduced cost than compared to conventional car taxies.
Intellectual property details- Ta-Bi Bikes is a new upcoming business idea and because of which
it has to be taken in the considerations of the legal legislation which include intellectual property
details like Copyright, Trademarks and Industry designs (Rollins and Peng, Camelot 2017). In
which the Copy right legal term tend to stop the unethical use of company data without the prior
information and because of which it will be having an complete control over its data provided to
the customers. Trademarks of Ta-Bi Bikes is the individual representation symbol through
which the customers are identify the company and its services. Whereas industrial design consist
of aesthetic aspects of an article which contains aspects like surface and shape of article, patterns
colours and line through which customers can segregate company and its services from other
market competition.
MAIN BODY
Marketing plan
Justification of the chosen market
Ta-Bi Bikes tend to provide its services like bike taxi and rental bike for making personal
transportation across different places. At the initial stage company tend to provide its serve in the
London areas through which it can analyse the effectiveness of the proposed business ideas and
can identify the ways through which the overall work productivity can be increased. London's
market is fill with some of the biggest rental services because of which company tend to operate
its services in oligopoly market place (MacArthur and et.al, 2020). Oligopoly is the market
structure in which small number of big organizational firms are having majority of the sales in
the industry and tend to establish similar pricing on its products are services so that it can
establish monopoly with the market sector through which competition can be eliminated and
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high premium pricing can be achieve by providing services to the customers. Oligopoly is the
market place which is having a wide variety of market competition and in which existing
business tend to develop its activities such that it is able to achieve an efficient competitive edge
and increase the chances of goal achievement by attracting wide range of customers (Lai, 2018).
Thus Ta-Bi Bikes has to analyse the market competition and then has to develop working
procedures in such a way that it is able to fulfil all the customer expectations and ensure that
customer's loyalty towards is increased by which chances of brand switching can be reduced.
This is an important for Ta-Bi Bikes that it analyse the working capability of the market
competition and their work procedures through which it can identify the differentiations and can
make efforts for fulfilling customer's requirements.
Businesses in the market have to make sure that they are having the right knowledge and
skills to be able to operate effectively in the market. The competition and growth which is
present in the market is high therefore it is very important to make sure that there are right
actions which are being taken and that would be highly influential for the overall development
and profit margins of the organization.
Market research
Ta-Bi bikes will have to make sure that they are understanding the clients of the
organization effectively so that there are going to be right decisions which can be taken by the
organization. Business will have to make a place for themselves in the market which is strong
and make the portfolio of the company stronger as well so that the company will be able to have
higher operations and performance for a long run (Davidsson, Recker and von Briel, 2020).
Company must be able to target the right customers and also take the feedbacks, time from time
so that if there are changes which are required will be able to take place effectively and the
company will be able to gain a higher stability in the market.
Industry analysis
 Strengths
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Making a base in the market of London is not going to be difficult for the organization
and the company will be able to have higher performance and operations as well. The portfolio
of the organization is going to be higher and profit margins are going to be stable as well.
 Weaknesses
The experience and knowledge which Ta-Bi Bikes is going to have of the market is going
to be limited which needs to be gained otherwise the organization will be not be able to gain the
loyalty and trust of the clients. There is also low availability of material and services for the
clients and a policies are going to be confusing as well which has to be understood and worked
upon by Ta-Bi Bikes (Metallo and et.al., 2021).
 Opportunities
There is a lot of market which Ta-Bi Bikes is going to have in the market which can be
used by the company in order to be able to operate effectively. Competitive advantage can be
gained easily so that there is going to be higher operations and branding of the organization.
 Threats
Competitors can come in this market easily which is going to be a great factor for the
overall performance of the organization and reduce the market share as well. There are going to
be financial issues which are going to rise and also the talent reattainment in the company that is
going to make the performance and satisfaction of clients be limited as well.
Segmentation
Ta-Bi Bikes will have to understand the clients and segment them so that the planning
and designing of the company is going to take place accordingly. There are four types of
segmentation which has to be considered which are demographic, psycho graphic, behavioural
and geographic segmentation which have to be considered (Pollack, Barr and Hanson, 2017).
The important factor of each market has to be understood by Ta-Bi Bikes so that there is going to
be higher operations and segment can take place effectively in the market.
Targeting
It is after segmentation the company will have to divide the segment further and then one
or two segments have to be selected so that there is going to be higher operations and functioning
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which is going to be present. Attractive factors have to be considered which is going to make the
organization be able to make a place for themselves in the market which is going to make the
organization have higher profitability.
Positioning
The company will have to place their products and services effectively in the market to
be able to make a strong base in the customer segment (Gawke, Gorgievski and Bakker, 2019).
The segments which have been decided by Ta-Bi Bikes will have to be well developed so that
the company will be able to gain profit margins and the organization will be able to get
competitive advantage as well.
Pricing strategy
There are a lot of pricing strategies which are present in the market which is going to
make business be able to operate and make a place for themselves in the market easily. Ta-Bi
Bikes is going to get in a lot of knowledge of pricing strategies into action which is that they
would begin with skimming pricing strategies in order to be able to operate effectively. It is
important to for Ta-Bi Bikes to invest a lot in the marketing aspect so that there is going to be
effective growth which is going to be present. It is later that once the business is going to be
stable in nature then the company will be using penetration factor so that there is going to be
higher growth that would be present (Kim, Lee and Kim, 2020). Company will have to make
sure that they have the right knowledge and importance in the market and there are going to be
limited competitors in the market as well because other businesses are providing cabs for the
clients but to be able to travel faster and for pleasure rides this is a very beneficial business to be
started in United Kingdom. It is due to traffic factor as well in London the company will be able
to find clients so that the growth of the business is going to be higher. Clients are going to be
provided with comfortable bikes which can be used for long trips as well and the organization is
going to let out bikes on rent as well which is going to be authentic so that the clients will be able
to trust the business easily.
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Management team and company structure
Ta-Bi Bikes will have to get an experienced ownership and management for the business
to be able to operate effectively in the market. Limited partnership is the type of ownership
which is going to be present in Ta-Bi Bikes which is because the idea generators are going to be
the owners in the beginning and if the business is going to be a success then the organization will
be able to expand themselves and sell their shares further more which would be highly beneficial
(Cardon, Post and Forster, 2017). Decision making and planning is going to be more effective
and make sure that there are right actions which are taking place in the organization. Liability is
going to be on selected people and the company operate fluently so that there are going to be
higher operations.
It is important to hire skills and experienced employees in the company or those
employees who can be trained in order to make sure that the company is having a stable growth
and improvement with time which is going to be a great factor. Role of the team members is
going to make sure that there is effective communication and understanding which is present so
that the goals and objectives of the organization are being matched effectively and that is going
to be a great factor for the overall development and improvement (Dai, Byun and Ding, 2019).
Team members can help in understanding and improving by giving their point of views and
knowledge so that there are right measures and methods which are being used for a better growth
of the organization.
Employees have to be well motivated and the culture has to be present in Ta-Bi Bikes so
that there is going to be a healthy environment which would be present for the overall
development of the company which is going to be highly beneficial. Employees needs and the
clients needs have to be well analysed and decisions have to be taken on those aspects which are
going to be a great factor for the overall performance of the company and the organization will
be able to make a place for themselves and branding is also going to be effective (Sklaveniti,
2017). Qualifications of the employees has to be strong so that there are going to be right
working and standards which Ta-Bi Bikes will be able to set for themselves in the market and the
organization will be able to find it easier to be able to expand themselves in the market. Ventures
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find it difficult to be able to make a place in market but Ta-Bi Bikes is not going to have this
issue and the organization will be able to make a strong place for themselves in the market which
is going to make the company have stability and higher profit margins as well to be able to
expand and invest in other aspects which is going to be good of the overall functioning.
Financial plan
As finance is the life line of any business, and it also plays a critical role in a new venture
called Ta-Bi bikes. To finance this business, owner needs fund, there are some sources through
which the owner can get money to run the business.
Sources of funding
Personal saving
This is one of the most common type of getting fund for any business, but it is totally
depends on the personal saving of the owner like how much money they have saved and how
much they can invest in their business.
Friend and family
This is another source of funding in which the owner can ask for money to their friends
and families(Kabakchieva, 2020). This is one of the easy way to get fund as it becomes easy for
the owner to convince them and they also trust the business owner.
Business loan
This is one of the simplest way to fund the business. As the owner can take a loan on the
name of the business but they have to pay a fixed rate of interest to the bank, besides this they
have to give collateral to the bank encase if the owner is not able to repay the loan, then the bank
will sell collateral and recover the loan amount.
Cash flow forecast for one year
Cash flow refers to the inflow and outflow of the money from the business. Inflow shows
how much money has the business received and outflow shows how much money has the
business spent(NGUYEN and et.al, 2020).
Particulars Quarter 1 Quarter 2 Quarter 3 Quarter 4
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Opening balance €50000 €65000 €80000 €30000
Cash inflow
Sales €10000 €25000 €55000 €28000
Collection from
credit sales
€5000 €2000 €15000 €10000
Total cash
inflow
€15000 €27000 €70000 €38000
Cash outflow
Rent €3000 €2500 €3500 €5000
Raw- material €8000 €6000 €6500 €2000
Salary & wages €3000 €3000 €3000 €3000
Taxes €1800 €1800 €1800 €1800
Miscellaneous €1000 €500 €900 €350
Total cash
outflow
€16800 €10800 €15700 €12150
Total cash flow €-1800 €16200 €54300 €25850
Closing balance €48200 €81200 €134300 €55850
Above cash flow shows that in quarter one company is facing loss somewhere but overall,
company is in profit and can earn good income from this business.
Profit and loss statement
P&l is a financial statement which states revenue, expenses and of the business. It is a
statement which all companies issues on quarterly and monthly basis.
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Particulars Amount (one year)
Income
Sales €200000
Other income €50000
Total income €250000
Fixed Expenses
Marketing €50000
Wages and salary €30000
Telephone €2000
Lighting €3000
Rent €12000
Travel €4000
miscellaneous €5000
Total Fixed expenses €106000
Net income €144000
From the profit and loss account it got to know that the company is in profit and can pay the
expenses from its income.
Balance sheet
Balance sheet is also known as a financial statement of the company which refers capital,
liabilities, current assets, fixed assets of the company(Rai, 2021). Every company publish
balance sheet at the end of the year.
Particulars Amount
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Current assets
Cash in hand €15000
Pre paid expenses €10000
Account receivable €3000
Inventories €40000
Other current assets €5000
Total current assets €73000
Fixed assets
Plant & Machinery €10000
Furniture €5000
Building €30000
Goodwill €50000
Tangible assets €10000
Total fixed assets €105000
Total assets €8350000
Capital €100000
Accounts payable €10000
Trade payable €50000
Short term borrowing €50000
Long term borrowings €20000
Deferred payment €15000
Total liabilities €245000
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Total €590000
From the balance sheet it is stimulated that the business is in profit for the respective year.
Contingency plan
This plan is know to be the backup plan which the management and the owner of the
company prepare when the things don't go as per their expectations. It is action plan which get
imposed by the management whenever the company faces loss or about to wind up. In such
situation, contingency plan plays survival role for the company. The main objective of preparing
this plan is to recognise the unknown risk which can harm the profitability of the business. The
another advantage of this plan is to take the advantage of upcoming opportunity so that the
business can gain immense profit from this plan. Ta-bi bikes has also prepared such plan even
though they are in profit but in case if the company faces loss then contingency plan can help the
business to overcome such losses.
Break-Even analysis
Break-Even analysis shows a path to the company that how many units they should sell
in a year so that they remain neutral(Tanco and et.al, 2019). Break-Even states a situation of no
loss, no profit. It is being considered as a margin of safety if the business is in break-even
situation it means it is in safe condition but need to put more efforts.
Formula of calculating Break-Even
Fixed cost/(sales- variable cost)
Particulars Amount
Total fixed cost €106000
Sale price per unit €2000
Variable cost per unit €1000
106000/(€2000-€1000)= 106 units
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It means to remain in safe condition, Ta-bi bikes has to sale 106 units in a year.
CONCLUSION
From the above evaluation in this report it can be concluded the companies tend to provide new
and rare products to the customers so that it can achieve high level of customer engagement.
Also with that through efficient utilization of technological advancements company can also
implement digital advertisement through which it can increase its reach to wide range of
customer at low pricing. With that company also tend to analyse the existing market environment
in which it tend to provide its services and can therefore make appropriate changes by which it
can achieve efficient competitive edge, resulting increment in customer count and organizational
sales.
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