New Venture Creation

This report discusses the process of creating a new venture, focusing on The Plunge Restaurant in Isle of Skye, Scotland. It includes a business description, unique benefits, marketing plan, financial plan, and details of the management team and company structure.

New Venture Creation

EXECUTIVE SUMMARY
The present report is based on New Ventures creation and the name of the business is The
Plunge Restaurant in the Isle of Skye, Scotland. The report includes description of the business,
unique benefits and various intellectual property which has been taken by the owner in initiating
with businesses. The marketing plan has been also mention in the discussion which tells about
the way it will be execute in the market. The financial plan and at last, details of the management
team and an appropriate company structure.

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION...........................................................................................................................1
MARKETING PLAN......................................................................................................................3
FINANCIAL PLAN.........................................................................................................................7
MANAGEMENT TEAM AND COMPANY STRUCTURE.......................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Business description
Business is one of the activity which helps in making people living and increasing there
profits by producing or selling of the products and services. The discussion includes the
hospitality sector in which broad category of the fields within which the service industry includes
event planning, theme parks, transportation. It includes hotels, restaurants and bars services to be
provided the customers. The discussion is based on a restaurant business in which preparing the
food and serves to the guest are the major objective (Zivdar, M. and et. al., 2017).
The Plunge Restaurant
A quality and relaxing rural country pub, run by some dually award winning owners in
the Isle of Skye, Scotland. The name of the restaurant is the The Plunge. The major objective of
initiating the restaurant in the Isle of Skye, Scotland is because the destination is very popular
and it is a first tourist place, choice of the people so that the new initiate of this restaurant will
gives the major impact towards the increasing in broader size of profits. The Plunge restaurant
will be specialised for its multinational cuisine offerings so that different areas of tourist will
attract towards the restaurant. Also, due to the natural beauty and lavishing environment of the
destination Isle of Skye, the idea of ambience will be quiet unique. It includes floral vision,
wooden sticks attraction, lightening sets, peaceful sounds that makes the tourist more attracted
towards it, different colours, linens and many other factors are included in the ambience so that it
will give the best attraction (Zhou, Zhao and Fan, 2019).
Opportunities which needs to keep into the consideration
The location: It is a responsibility of the owner to understand that the location must be quiet
specific so that it will automatically attain maximum profit. In relation with The Plunge
Restaurant, the location which has been decided is the Isle of Skye because of its lavishing
beauty and the most famous destination or tourist place (Williams and Shepherd, 2016).
Concept: The concept of the restaurant refers to the ways of creation and innovations so that the
restaurant will be likely to attract people. In relation with The Plunge Restaurant, concept is quiet
clear. The major theme is to connect the beauty of the destination towards the restaurant so that it
will be maximise profit and become famous in all over the world after a certain period of time.

Menu: offering a multi cuisine dishes.
Investing money: Fast casual business model needs more money investment and into the local
economies. There is a need to invest money in a right thing and firm. Direct equity helps in
investing to the stocks exchanges and there is a need to increase the investment in a right
direction because there is guarantee of the returns.
Description of the products and services
The description of the services and products includes all the tangible items which can be
put on attention, consumption, acquisition and services. The products and services includes all
the tangible and intangible services because it creates more good view of the consumer products
needs and services. The products and services that have been offered are included in the
simultaneous production and consumption. A good in an object, a device, a little standardization
and higher buyer helps the products and the services. The major products and services which
have been included in the restaurant are fire fountain grille. The menu has been consisting of the
juicy, thick steaks that are coated with a secret combination of flavourings and spices. The sticks
are quiet grilled with a perfection. The menu have been also consists of butter-roasted chicken
dishes, seasoned chicken dishes, fresh grill sea-foods, imaginative salads, soups, pork chops,
refreshing fountain drinks, flaming desserts and appetizers with berry barbecue sauces.
Unique benefits
Some unique benefits which have been occurred and it will needs to be remain into the
consideration when the restaurant will be initiate in the Isle of Skye.
Freshness: It is one of the major benefits given to the customers as well as to us. Freshness will
be occur due to the location. The growing fruits and vegetables are the major effective factors
that involved in the freshness.
Flavour: The taste and flavoured adopted by us will eventually be the most attractive and
effective ways to be taken into the consideration. Using wholesale vegetables and fruits are the
most effective component which well be taken into the consideration in flavours.
Marketing benefits: the restaurant which will be given in the attractive destination location is one
of the attractive factor and a unique benefit. Add terms like farm-fresh or locally grown to a
menu description and watch the items fly out of the kitchen. I’ve never heard a customer
complain about eating food from local farms or gardens. Using local foods can be a major selling
point for restaurants.

Protecting of the environment: Creating a new venture helps the reastairant to take care properly
of the environment. They planting and watering the plants and near by things daily. The most
important reason of this restaurant which helps in protecting the environment is a pollution free
process. There is no pollution and it can be suggested that free from all the heat and pollution
gives a prosperous and life long beauty.
Intellectual property details
The intellectual property refers to one of the category of the property which includes the
intangible creations of humans intellect. There are many types of intellectual property
copyrights, patents, trademarks and trade secrets that are includes into it and The Plunge
Restaurant even applied within it.
Copyrights: It helps to The Plunge Restaurant in copying the exclusive rights and in a limited
period of time. It helps the restaurant and it owner in reproduce of the work, preparation of the
derivative works and many others.
Patents: A patent is a granting of property rights to the patented process, design or invention for a
designated period in exchange for a comprehensive disclosure of the invention.
MARKETING PLAN
Marketing plan is report that mainly outlines marketing strategy for coming quarter, moth
or year. This mainly consists marketing of business and also advertising objectives. It is related
to explanation of current marketing position. The better marketing strategy is foundation of well
written and explained marketing plan so that the objectives can be attained (Acharya and
Chandra, 2019).
Chosen market
The chosen market for the new restaurant will be The Isle of Skye. This is connected to
the Scotland's northwest coast by bridge. This is the most beautiful destination place where large
number of the tourist visit. It will provide the different types of the dishes and beverages to
visitors. Through this, people in the large number will be visit and also this will enhance the
profitability of business in an effective and effectively manner.
Market research
It is process in identifying viability of new product or service by an investigation
conducted with the potential consumers directly. It is helpful for The Plunge Restaurant to search

the target market and also get the opinions and feedback of others from customers regarding
interest in service or product. The Plunge Restaurant will conduct the market research to know
about the existing food items. It will take the opinion of the different people regarding opening
of the new restaurant at The Isle of Skye (Burns, 2017). The opinions of people plays an
important role in starting the new venture at new location. The Plunge Restaurant will also
communicate with the tourists which visit the The Isle of Skye. The main focus of this restaurant
is to provide the different kinds of new or innovative dishes to the tourists so that they can be
more attractive towards it. The Plunge Restaurant will provide the better offers to tourists on the
most famous food and beverages.
Industry analysis
Industry analysis is business function that completed through the business owners and
some other people to assess existing business environment. It helps the business to understand
different economic pieces of marketplace and how they may used to gain competitive benefit.
For the industry analysis, Porters Five Forces is more effective. This is method for examining the
competition of business. This framework is effective for evaluating competitive positive of
company. The Porters five forces are mention below:
Intensity of industry rivalry- High number of the competitors are present in the
restaurant sector. In industry, these all players strive to be keep large share in market than the
competitors while maintaining profit flow and also supporting business for development.
Restaurant sector has high rivalry threat that makes complex to be maintain the high profitability
(Cai and et. al., 2017).
Threat of new entrants- Setting up the new restaurant needs moderate investment level,
making thus easier to enter the sector. The factor that impact on entry of new restaurant is
economy of scale that can established. It is necessary that new entrants should consider fixed
cost and also the operating cost. In regards to this, high fixed cost remains concern for new
entrants, manage operations and having minimum profitability in initial business stage.
Bargaining power of suppliers- Suppliers under this sector consists firms which give the
raw material to restaurants. Number of the suppliers in sector identify impact supplier which can
have buying decisions of purchaser firms. Suppliers have the low power as compares to regions
where there are suppliers in less number. Size of restaurant is identifying factor when this comes
to bargaining power of the suppliers (Davidsson and Gruenhagen, 2020).

Bargaining power of buyers- Besides new entrants, buyers bargaining power is
necessary factor. They hold power to influence pricing decision of firm. From this, restaurant
sector is impacted through choice of purchasers and also switching behaviour.
Threat of substitute goods/services- Restaurant sector has different entities, making this
easier for consumers to make choice while switching one restaurant to other. Low switching cost
is one of the main factor that makes this easier for consumer to shift from one brand to the other.
The bad experience of consumer is one of the main reason to switching the restaurant.
Chosen target market
Target market is group of the consumers within serviceable available market of business
at which aim of business its marketing resources as well as efforts. The target market is subset of
total market for service products. This mainly consists breaking down whole market into
different segments as well as planning marketing related strategies got each segment to enhance
market share (Davidsson, Recker and von Briel, 2020).
The chosen target market for The Plunge Restaurant will be tourists. Customers which
will be target by the restaurant of age group of 15 to 60 years. They prefer to visit the tourist
destination more.
Channels to reach at consumers
The marketing channel includes of company, activities and people required to transfer
ownership of products from production point to consumption. This is one of the most useful tool
fort the management and developing better marketing strategy. Producer can reach customers by
direct market like website but in this present time restaurant will use the digital marketing. It is
component of the marketing that mainly use online base and internet based technology for an
instance mobile phones, computers and the other digital media platforms to promote the services
and products. Promoting the products and services are helpful in aware the people regarding the
new restaurant. In the digital media, social media marketing is more effective. In this, restaurant
will develop the new page of Facebook and will provide all the information. Through this
channel, The Plunge Restaurant will interact with the people and provide them all information
regarding the food and beverages, cost, location and others (Kaffka, Singaram and Kraaijenbrink,
2020).
Consumer profile and behaviour

The consumer of The Plunge Restaurant will be tourists of different age group and
profiles. At The Isle of Skye, people of the different segment exist such as children, students,
business person and others. The students like the best interior and they like the fast foods. The
children have the impact on buying decision of parents. The restaurants identified as long ago
and stated shaping offering to the appeal to children. The Plunge Restaurant will provide the toys
to children so that they can enjoy while eating. Other than this, businessman focus on eat the
healthy food. They prefer to eat the healthy foot items and beverages like juices. In restaurant,
they require the WIFI because they do their work while eating.
Competition evaluation
The competition arise whenever the two different parties strive for common objective
which can not be shared. It is activity of striving to win or gain something through establishing
or defeating superiority over the others. It is one of the most useful tool for the management and
important to developing well planned marketing strategy.
The competitors of The Plunge Restaurant will be Isle of Mull Cheese, Ubiquitous Chip
and Foodstory Cafe.
Sales process
It is delicate business among requests and requirements of seller and buyer. Added to that
is cooperation and collaboration concerned to the financing. The selling process of The Plunge
Restaurant will be Internet media marketing. Internet is one of the better source of free
advertising. Taking the benefit of internet media technology expose the potential consumers. The
restaurant can ask consumers to fill short form with guest check that provides them chance to
win free meal. Once gained information, The Plunge Restaurant can keep the consumers posted
new promotions, menu updates, specials and the marketing endeavours through email.
Developing restaurant profiles on the social networking site is more effective for this kind of
marketing (Li and et. al., 2020).
Pricing strategy
The Plunge Restaurant, cost account is most important since profit of dishes can vary and
identify cost of different items included in the menu. The restaurant will take the benefit of its
better credit terms with suppliers and also update menu to take seasonality advantages. The
pricing strategy of The Plunge Restaurant will be Cost-Plus Pricing Strategy. In this kind of
pricing strategy, selling price is identified through adding particular markup to unit cost of

goods. It is most common menu pricing style which the restaurants mainly use. The owners of
restaurant accounts for all costs go into plate of the food consisting fixed cost like wages which
are paid to wait staff and cooks, utility bills and rent.

FINANCIAL PLAN
Sources of Funds
Funding means to providing the resource to finance an need which is usually in the form
of money. A business cannot work without money and the money require to make functions of
the company smoothly is known as business funds. Their are different sources of funds by which
we can invest . It includes credit. Capital, donations, grants , subsidies and taxes.
Two sources of funds:
 Bank loan Personal saving of owners
Bank loan: It is basically an amount borrowed from the bank for a definite period with
an agree repayment of loan. The repayment of amount will depend on the size and duration of
the loan and a given rate of interest.
Bank loan is the best suitable idea of raising funds for starting up THE PLUNGE,
RESTRAUNT.
Personal savings: It is one of the best idea of raising the funds as in personal saving if we
are saving money or having money in old 401(k) can be contributed to your start up cost which is
very beneficial for the businessman.
Funding means to providing the resource to finance an need which is usually in the form of
money. A business cannot work without money and the money require to make functions of the
company smoothly is known as business funds. Their are different sources of funds by which we
can invest . It includes credit. Capital, donations, grants , subsidies and taxes.
Two sources of funds:
 Bank loan Personal saving of owners
Bank loan: It is basically an amount borrowed from the bank for a definite period with
an agree repayment of loan. The repayment of amount will depend on the size and duration of
the loan and a given rate of interest.
Bank loan is the best suitable idea of raising funds for starting up THE PLUNGE,
RESTRAUNT.

Personal savings: It is one of the best idea of raising the funds as in personal saving if
we are saving money or having money in old 401(k) can be contributed to your start up cost
which is very beneficial for the businessman.
Personal saving is also a good idea of raising funds for starting up THE PLUNGE
RESTRAUNT.
Cash flow forecasting:
Cash receipts
Cash in hand 1500
Investment 5000
Estimated sales 35000
Loan 8000
Total cash receipts 49500
Cash payments
Fixed cost
Interest on loan 1500
Rent 3000
Insurance 1650
Salary of employees 10000
Variable cost
Electricity cost 600
Raw material cost 3500
Wages 1500
Total cash payables 21750
Cash flow 27750
Profit and loss statement
Profit and loss statement
sales 35000
Less: cost of sales 2500

Gross profit 32500
Less: operating cost
Fixed cost
Interest on loan 1500
Rent 3000
Insurance 1650
Salary of employees 10000
Variable cost
Electricity cost 600
Raw material cost 3500
Wages 1500
Net profit 10750

Balance sheet
Assets
current assets
Cash 1500
Investment 5000
Debtors 500
Fixed assets
Machinery 12500
Total assets 19500
Liabilities and equity
Current liabilities
Creditors 500
Long term liability
Loan 8000
Total liabilities 8500
Equity
Reserves 10750
Share capital 250
Total liabilities and equity 19500

Contingency Plan
It is the plan devised for an outcome other than its usual expected plan . It includes the
risk . These plans can also be called as B graded plans because it can work as an alternative
actions if things does not go as planned.
Need of contingency plan in restaurant
It is a process that prepares a food business to recover effectively when there is an
unplanned event. It is made up of three key components:
 being prepared
 responding to an event
 post event recovery
The plunge Restaurant has to make an contingency plan so that if any crisis occur it
should get recovered easily.
Growth Aim
Its growth aim is “To enhance the growth rate of The Plunge Restaurant by 5% within 1
year”.
Break Even
BEP calculations:
Variable expenses 5600
Fixed cost 16150
Sales 35000
Contribution sales-variable expenses
29400
PV ratio Contribution/sales*100
84 %
BEP in pounds Fixed cost/PV ratio
192 pounds

MANAGEMENT TEAM AND COMPANY STRUCTURE
Details of ownership and management of business
Effective restaurant management involves several changes including public relations,
staff and consumer services. In some instances, an owner can be serve as a manager as well.
Providing the customer services the business organisation will be effectively applied the golder
rule that “the customer is always right”. There is a need to properly examine all the feedbacks
and reviews of the business organisation and helps the consumers so the restaurant will achieve
success and maximise profits.
Advertising the restaurant there is a strong need to promote the restaurant and increase its
effectiveness. The advertising helps to connect with larger number of tourist.
Monitoring of the cash flow Cash flow is one of the amount of cash which helps in going out of
the business. The cash flow will going to be monitored daily, weekly and on an monthly basis.
Expanding business A daily business review allow the manager of the restaurant to build a
history of business. It helps in analysing sales trends, payroll costs, consumer counts and
forecasting the future sales (Sundermeier and et. al., 2020).
Role of team members and including skills
The major role of the team members have their daily responsibilities and duties that
depend on the work done. Based on analysis the roles of the ream members includes
Welcoming of the customers, completing the food preparation, serving food to the consumers
more effectively and efficiently, needs to take care if consumers can able to eat properly on not,
The process of bill payments, and clean dining areas are all the major roles which have been
included in the role of team members which needs to be taken into the consideration when
starting with the new skills.
Skills and qualification
Interpersonal skills – These are the skills of managers and guest which suggest that there is a
need to build the relationship.
Food service– There must be one of the skill to be presented while serving the food is the
quickness and quality of servants.
Teamwork– The collaboration of all the team members with respect and care.

Physical requirement- There is a need to attain team members, they must have some such type
of skills in which consumers can want some requirements including tables, heavy objectives,
chairs and so on.
Memorization: The team members of the restaurants are expected to learn the guest, if they
have any problem or not.
Organisation skills: The team members of the restaurants have multiple duties to manage
simultaneous throughout the shift.

REFERENCES
Books & Journals
Acharya, S. R. and Chandra, Y., 2019. Entrepreneurship Skills Acquisition through Education:
Impact of the Nurturance of Knowledge, Skills, and Attitude on New Venture Creation.
International Journal of Educational and Pedagogical Sciences. 13(2). pp.186-196.
Burns, P., 2017. New venture creation: a framework for entrepreneurial start-ups. Palgrave.
Cai, L. and et. al., 2017. Effectuation, exploratory learning and new venture performance:
evidence from China. Journal of Small Business Management. 55(3). pp.388-403.
Davidsson, P. and Gruenhagen, J. H., 2020. Fulfilling the process promise: A review and agenda
for new venture creation process research. Entrepreneurship Theory and Practice,
p.1042258720930991.
Davidsson, P., Recker, J. and von Briel, F., 2020. External enablement of new venture creation:
A framework. Academy of Management Perspectives. 34(3). pp.311-332.
Kaffka, G. A., Singaram, R. and Kraaijenbrink, J., 2020. New Venture Creation and the
Development of Entrepreneurial Cognition. In Academy of Management Proceedings
(Vol. 2020, No. 1, p. 20704). Briarcliff Manor, NY 10510: Academy of Management.
Li, Z. and et. al., 2020. Projectification and partnering: An amalgamated approach for new
venture creation in an entrepreneurial ecosystem. Emerging Markets Finance and
Trade. 56(13). pp.3134-3152.
Lurtz, K. and Kreutzer, K., 2017. Entrepreneurial orientation and social venture creation in
nonprofit organizations: The pivotal role of social risk taking and collaboration.
Nonprofit and Voluntary Sector Quarterly. 46(1). pp.92-115.
Salamzadeh, A. and Kirby, D. A., 2017. New venture creation: How start-ups grow?. AD-
minister. (30). pp.9-29.
Sundermeier and et. al., 2020. Hubristic Start‐up Founders–The Neglected Bright and Inevitable
Dark Manifestations of Hubristic Leadership in New Venture Creation Processes.
Journal of Management Studies. 57(5). pp.1037-1067.
von Briel, F., Davidsson, P. and Recker, J., 2018. Digital technologies as external enablers of
new venture creation in the IT hardware sector. Entrepreneurship Theory and Practice.
42(1). pp.47-69.
Williams, T. A. and Shepherd, D. A., 2016. Victim entrepreneurs doing well by doing good:
Venture creation and well-being in the aftermath of a resource shock. Journal of
Business Venturing. 31(4). pp.365-387.
Zhou, Y., Zhao, W. and Fan, X., 2019. Going on or going home? The impact of new venture
creation progress on work-to-family conflict: A mediated moderation model.
Management Decision. 58(6). pp.1210-1236.
Zivdar, M. and et. al., 2017. An explorative study of inputs for entrepreneurs’ decision-making to
create new venture in a high-tech context. The International Journal of
Entrepreneurship and Innovation. 18(4). pp.243-255.

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