Planning for Growth

This assignment explores the business activities involved in planning for a new business venture, including the types of business organizations, potential benefits, limitations, and risks. It also discusses the sources of finance for business enterprises, legal considerations, and market conditions that impact setting up a business. Additionally, it guides you in developing a mission, vision, aim, and objectives for your company.

PLANNING FOR GROWTH

INTRODUCTION
Business venture defined as entity that developed with intent of profiting financially.
There are many business entities considered as small business. Therefore, business venture
formed up with plan and expectation that aids to generate profit. In addition to this, venture
capital defined as financial plan that support in starting a business and its long term growth.
This assignment reflects the business activities of planning for a new business venture
and will be based on cosmetic venture that will be consisting of skin care and athletic apparel
utilizing multichannel of distribution.
TASK 1
Description on various type of business organisation and analysis of potential benefits, limitation
and risk.
Business organisation defined as how entities need to structure how structure aids to meet
their goals. Henceforth, entities are designed to focus on generating profitability or to improve
society (Brinckmann and et.al 2019). Additionally, businesses are started by individual to earn
income and generate profits. It offers the legal framework in which it is described about
structure, profit sharing and liability Henceforth, types of business structure are defined in
following manner are as-
Basis Sole
proprietorship
Partnership Limited liability
company
Corporation
Meaning It is common
business
structure. These
entities are owned
by one person and
individually they
work as to
perform daily
business
In this, two or
more individuals
share ownership
of single
businesses. Under
this, partners of
the entity must
have legal
agreement
This is defined as
a separate legal
entity. Therefore,
it comes under
the private firms
in which owner
are legally
responsible for
debts only to the
This is
considered as to
be unique,
separate and apart
from those who
owns it. Under
this, shareholder
elect BOD to
overlook polices
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responsibility for
running firm.
Hence, sole
proprietor owns
the whole control
and within the
parameters of
law. These
individuals have
unlimited liability
and are legally
responsible for all
debts against the
business. It is
common business
structure.
between them that
shows how
decision taken.
Furthermore, each
partner can help
with financing,
start up cost and
ongoing business
expenditure.
Additionally,
each individual is
liable for debts
and obligations.
extent of amount
of capital they
have invested. It
is common
business
structure.
and decision
(Fernando,
Jabbour and
Wah, 2019).
Henceforth,
corporation do
not dissolve even
if ownership is
transferred. It is
an entity that can
raise funds
through IPO. In
addition to it,
corporation are
monitored and
regulated by state,
national or local
government. It is
common business
structure.
Benefit Henceforth, one
of beneficial
aspect is that this
is easy to form
and owner can
enjoy the sole
control of
business profits.
In this business
partners does not
get taxed
separately. Thus,
it is very easy to
establish.
It provides
members the
protection from
liability.
This provides
limited liability
protection to its
owners.
Risk It poses the risk
of personal
liability. Hence,
there is no legal
There is presence
of risk in terms to
disagreements
and friction
Creditors do not
exactly offset by
the lower return
paid to
The financial
uncertainty faced
by investor who
holds securities in
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separation
between the
personal and
business assets.
among the
partners and
management.
shareholders. specific firm.
Limitation The one
limitation is that
owner will be
personal liable for
all kind of
business losses
and liabilities.
Thus, limitation
to this as are lack
of public
confidence,
limited resources
and unlimited
liability etc.
This does not
protect against the
wrongful or
fraudulent trading
when director
gives personal
guarantees.
There is high
presence of
mislead insider
trading.
Define analysis on source of finance for business enterprise.
Finance is the driving force of the enterprise. Henceforth, business requires funds to fulfil
their needs and run daily activities for generating profits. Thus, there are various options
available for business to select source of finance which is suitable for them. Therefore, there are
various source of finance and this defined in following manner are as-
 Equity financing- This is defined as exchanging a portion of ownership of business for
financial investment in the business. Therefore, these are of many types as-
 Home equity loans- It is a type of loan that borrows keep home as security. In this the
amount is identified by calculating total value of property.
 Personal investment- It proves to be investor and bankers that must have long term
commitment to project and individual is ready to take the risk. In order to start the
business, the entity will use personal saving so that entity can get start working.
 Bank loan- Financial institutions and credit union offers loan to companies. The loan is
granted in exchange of security (Howell, 2019). Therefore, the bank will charge interest
fee for borrowing bank and it is based as loan amount and time period.
Description on evaluation of legal consideration relevant to planning a business venture.
It will be starting the new business in market which requires for consideration of legal
aspects that help for manage the business operations and functions. It should be needed to
roadmap the business which provides both financial needs that can easily operate the new
business. Therefore, it has required to implement the legal concept in the business structure for
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maintain their policies and procedures.
The sole proprietors and other type of business ventures are responsible for the obligation
in the business (Hopkin, 2018). It should be considered the entity which will identify the earning
of enterprises will be taxed by the individually owners. There are some common legal
considerations applicable in the business planning.
 Paid taxes- The business will subject to the taxes relate the sales, income and
employment. It is an essential part of new business planning to maintain the legal policy
which ensures for deposits the employment and other type of income taxes at state levels.
The New business will require the accurate tax number that provide warranty and
resources find about the taxes when how to pay.
 Intellectual Property- it is considered the most valuable assets whether its trademarks to
protect the information of organization. If new venture fails to adequately protect to IP
that has increased risk of waiving to protect right in the future. In this way, it must
require to use employee confidentiality and applied an appropriate legal arrangement.
 Business Partner Agreement- It may ideal enterprise partner and joint venture when it
evolved new business rapidly. It might to prepare the written agreement because it help
for protecting the confliction between partners.
 Trademarks- It is important part of business planning to acquire the trademark for
maintain the protection. It has needed to register to the enforceable in the particular trade
mark protection (Richards and et.al., 2019). This type of trade market protection will
help for business to enhance their right for the owner which will be sold the desirable
product in global marketplace.
 Capitalization- It should be including equity and debt in the new business planning. The
Equity will increase by sale the enterprise ownership related the corporation stock and
membership interest. If the sole proprietors and other business venture are planning the
new business which requires increasing the capital through investors. In this way, it will
require maintaining all securities and follows the federal laws.
Define analysis on market condition that impact in setting up business
The market situation and condition analysis for the new business set up which requires
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identifying the competitors, challenges and targeting market etc. In this way, it can be used the
business analysis tool that help for identifying all the trends, needs and requirement of business.
The Strength and weakness are the most important part of new business that can change on the
basis of time. It is crucial to analyse the business condition so that all function can run smoothly.
The market condition impact on the new business venture because it has been changing the
trends and increasing the innovative technology that could change the market and also minimize
the demand of existing products (Mudambi and Zahra, 2018). New business venture aims to
establish the business in global world but it is very difficult for maintain the position due to lack
of communication. Therefore, it will change the business environment that affects the overall
economy of nation.
The New business planning are the important concept for market analysis where it can use
the internet services which easier for business venture to promote their product by using digital
concept. In marketplace, it has been found that the competition level is very high. In this way,
new business requires to offer something better than other. Before providing the service or
product, it must be maintained the position by themselves.
Porter’s Five Forces of organic herbal beauty product enterprises
Its analysis the organic herbal beauty new business ventures that operates wide range of
various products which are being used by peoples in global marketplace.
Threat of New Entrants- High
The organic herbal beauty product based new enterprises venture are attracting for
entrants that capture overall market share. In this way, it increases to drop of profitability of
existing beauty companies. It is gaining the high economic scale and distribution.
Threat of Substitutes- Low
It is mainly considered two substitutes of organic beauty product which are made homes
items by using natural ingredient such as oils, herbs etc. in this way, the cost of switching and
buyer to substitutes are lower.
Supplier Power- Low
There are large number of suppliers in the beauty industry and require manufactures of
herbal products. It become low differentiation of inputs. The presence of substitutes impact of
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actual input and cost is low. In this way, overall barraging power of supplier of herbal beauty
product business is lower.
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Competitive Rivalry- High
The competition level among the rivals in the new herbal business is high because there
are many other competitors use idea to increase demand in global marketplace. For Example-
there are limited number of spas and use own products. In this way, it is great5er the supply as
per demand.
Buyer power- High
For increasing the competition level and availability of herbal products have given the
higher power. It always influences the cost of beauty products which make difficult for new
business to maintain long term profitability in marketplace.
TASK 2
Develop mission, vision, aim and objective of the company.
We love your skin, is a start up business that specialise in hand made organic herbal beauty
products. Thus, speciality of this entity will be as to provide herbal therapy packs, eye packs that
remove dark circle, moisturizer that keep skin hydrated, herbal shampoo that keep hair glossy
and smooth (Shad and et.al 2019). All are made with herbal ingredient that aids to provide
natural benefits to the skin.
Therefore, herbal ingredients are in much more popularity these days. This helps the
customer with providing natural glow to the skin of customer. Henceforth, this business concept
will help to perform business functions properly. Better commodities and herbal ingredients aids
to provide new life to the customer. Better quality product aids to enhance the brand image of
product and entity as well.
Mission-
The mission of We love your skin is to create herbal ingredients that heals, smooth and
provide crystal shine to skin of customer.
Vision-
To ensure the complete satisfaction and well being to clients with use of high organic
ingredients, promoting innovation and social responsibilities.
Aim-
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Our Goal is to be recognised by trying to reach a compromise between one beauty and
well being.
Objectives-
 To provide natural products that aids to satisfy customer.
 To get achieve sales goal of 12000 during the first year of operation.
 To tie up these firms with well reputed showroom so that sale can be enhanced.
 To increase sales by 15% during the second year of operation.
Key to success is as-
 High quality product
 Skilled staff
 Product placement in key retail accounts.
 To provide customer better quality ingredients that aids to provide better skin.
Justify the need for business product.
We love your skin is a provider of herbal commodities that is inclusive of herbal
ingredients. It provides herbal therapy, eye packs that aids to remove dark circle and moisturizer
that helps to keep skin hydrated. This firm sells its product line to the herbal product firms that
sell baskets with herbal themes (Brinckmann and et.al 2019). Henceforth, the company will be
organized as a sole proprietorship. Therefore, start up expenses for the we love your skin is to
put focus production and extraction equipment. With the help of research, it has been identified
that customer are facing skin problems that why this new start up has taken step to provide
herbal care to customer. This firm will be situated in London. Thus, products will be offered in
unique way as there is no other rival who provide similar type of products.
Target market- In order to get famous, this cosmetic brand will target the adults and middle age
women. Therefore, between these age period women faces several number of hormonal
imbalanced that affects the skins. Thus, We love your skin use organic ingredient that can aids to
have more youthful skin.
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PESTLE ANALYSIS- It is strategic tool that assist to analyse the micro environment of the
enterprise. Therefore, these are outlined as-:
 Political- It plays crucial role to determine the factor that impact the entity of cosmetic. In
order to perform the business functions systematically, the entity needs to diversify the
systematic risk of political environment.
 Economic- The rate of inflation, savings and foreign exchange and economic define the
aggregate demand and supply of enterprise.
 Social- In the current era, there is lot of preferences to customers and this is changing
rapidly. Henceforth, entity needs to produce the organic products with help of forecasting
the demand of customers.
 Technological- The innovation is needed to be conducted in terms to enhancing the
business operation in wider aspect. With the use of technological the demand of the
product of customers can be full-filled.
 Environment- The environmental consideration impacting the working of the enterprise
in the huge aspect.
 Legal- The firm needs to carefully evaluate the legal implication before taking entry in
new markets.
Propose business structure and system that will deliver business aim and objectives.
We love your skin is a direct marketing company and this will run as sole proprietorship. It
is the firm which sells products through skilled sales force and beauty consultants. Therefore, the
firm believes in motivating consultants to expand sales team by rewarding and offering high
incentives. It will benefit in building a strong team.
Sales force- It comprises of team contractors known as independent beauty consultants.
Henceforth, consultant team consist of five consultants they will work together. Therefore,
succeeding promotion for building a successful team consisting of senior sales manager and
regional manager. Thus, the hire skilled professionals will be selected who can help customer in
providing proper assistance to customers with their beauty needs. To aware customer this entity
will take various initiatives with help of using better market research, creative marketing
programme and comprehensive distribution network to attract the wide range of customers. With
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the use of multi channel program it can be possible to reach out the potential customers within
market (Fernando, Jabbour and Wah, 2019). Therefore, quality personal product aids to gain
competitive advantage within the market.
Specify business products to meet the needs of market
The present report is based a start up company that is We love your skin and this firm deals
in commodities as herbal therapy packs, eye packs that remove dark circle, moisturizer that keep
skin hydrated, herbal shampoo that keep hair glossy and smooth. It is the firm that will help to
satisfy the customer needs by full filling their herbal requirements. Thus, the customer needs are
analysed that aids to full fill the needs of skin. Thus, herbal touch aids customer to provide
healthy and better skin. Therefore, the goal of this firm is to offer better quality products to
customer. Thus, entity needs to have use of some promotional offers so that it can attract the
customer and firm will able to gain competitive advantage in market. It helps to gain the
profitability and productivity.
Forecast
Business planning forecast based on target.
For creating a better competitive advantage the start up firm will look over adults, young
and middle age women who need really better care for their skin (Mudambi and Zahra, 2018). At
the initial stage this entity will provide sample to customer so that they can have use of it and
know about the beneficial aspect of commodities.
Identification of business responses
If the targets are not met as per the planning than corrective action will be taken to bring
more improvement within the commodities and this thing aids to create better and advanced
approach to customers. In terms to undertake the business response related with the product and
services the entity will undertake the feedback from customer and a depth survey so that lacking
areas can be identified properly.
TASK 3- Pitch
Pitch for funding of business proposal.
Thus, it will based on following things are as-
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 To target the audience so that firm can take initiates to promote better services to the
customers.
 Pay strict action to the aim and objective of the business.
 Make the budget so that all resource can be collected and proper action can be taken.
 In order to get the fund, the entity can arrange the fund from bank and other financial
institution.
Documentation to promote Pitch.
 To provide the business logo on the cover page so that customer can get attracted.
 The summary of products needs to be given so it can attract customers (Hopkin, 2018).
 It is crucial to build team so that investor can invest the business idea on business plan.
 At this stage problem must be identified so that proper business plan can be conducted.
 It is crucial to show the demo of product so that investor can understand the product and
services and use of it.
 The sales strategies must be clarified to them so that they can invest their business ideas
accordingly and better action can be taken towards it.
CONCLUSION
Hereby, it can be concluded the new start up firm requires better planning to aid growth
within the entity, Henceforth, firm needs to add number of commodities that can help to carry
out better and effective market approach.
Furthermore, report has covered the various activities as to type of business organisation, to
frame business aims and objectives of new start up business that will be based on cosmetic
products, target market, business product that aids to satisfy the needs of the customer.
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REFERENCES
Books and Journals
Brinckmann, J. and et.al 2019. Of those who plan: A meta-analysis of the relationship between
human capital and business planning. Long Range Planning. 52(2). pp.173-188.
Fernando, Y., Jabbour, C.J.C. and Wah, W.X., 2019. Pursuing green growth in technology firms
through the connections between environmental innovation and sustainable business
performance: does service capability matter?. Resources, Conservation and
Recycling. 141. pp.8-20.
Hopkin, P., 2018. Fundamentals of risk management: understanding, evaluating and
implementing effective risk management. Kogan Page Publishers.
Howell, A., 2019. Ethnic entrepreneurship, initial financing, and business performance in
China. Small Business Economics. 52(3). pp.697-712.
Mudambi, R. and Zahra, S.A., 2018. The Survival of International New Ventures.
In International Entrepreneurship(pp. 85-130). Palgrave Macmillan, Cham.
Richards, G. and et.al., 2019. Business intelligence effectiveness and corporate performance
management: an empirical analysis. Journal of Computer Information Systems. 59(2).
pp.188-196.
Shad, M.K. and et.al 2019. Integrating sustainability reporting into enterprise risk management
and its relationship with business performance: A conceptual framework. Journal of
cleaner production. 208. pp.415-425.
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