New Venture Creation and Entrepreneurship

This assignment provides a comprehensive overview of new venture creation and entrepreneurship, drawing from a range of research papers that discuss various aspects of entrepreneurial cognition, internationalization, crowdfunding, social networking, and more. The papers cover topics such as the impact of entrepreneurial cognition on business survival, sources of opportunities used by growth-minded owner managers, and the role of online social networks in start-up success. The assignment is ideal for students looking to gain a deeper understanding of entrepreneurship and new venture creation.

Launching a New Venture

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Identification of specific target markets and competitive analysis.......................................1
P2: Specific tangible and intangible resources that required for a new venture.........................3
TASK 2............................................................................................................................................4
P3: Formulation of credible proposal to launch a new venture..................................................4
P4: Skills and capabilities required to launch a new venture......................................................6
TASK 3............................................................................................................................................7
P5: Determination of promotional activities and channels for launching a new venture...........7
P6: Formulation of appropriate promotional activities plan for both launch and pre-launch.....7
TASK 4............................................................................................................................................8
P7: Monthly cash budget for the pre and after launch phase......................................................8
P8: An appropriate legal form for the venture..........................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
An individuals having sufficient knowledge and skills of running venture more
successfully can think and decide about starting new venture with the help of resources available
with them. The main objective of starting a new venture is to earn huge profits through selling
goods and services which are currently in market trend. An individual having risk taking ability
and decision making skills increases the chances of making new venture more successful which
makes them a good entrepreneur. The present assignment report is based on Delicious
Delictable, a name of new venture which is going to start in London Market in UK. The project
covers the identification of target market along with the competitive analysis. In addition with
this, different types of resources are also described under this report. The project also includes
the development of promotional plans which is essential to promote new venture. All other
aspects are also discussed under this report with the context of Delicious Delictable (Baucus and
Mitteness, 2016).
TASK 1
P1: Identification of specific target markets and competitive analysis
Delicious Delictable is a new restaurant which is started in Bermingham city of United
Kingdom due to having huge crowd. It has offered multiple number of dishes of different
countries with an objective of achieving huge customer strength across worldwide and earn huge
profits. The main dishes in their menu list is Thai’s Tom Yum Goong, Spanish’s Croquettes,
Chinese’s Kung Pao chicken and Chowmein , Indian’s fish curry and butter chicken. etc. It has
been carefully observed by the entrepreneur that the people of UK prefer to eat foreign dishes
due to which such foreign dishes are decided to offer by the restaurant. Through conducting
research, it ha been found that the main motive of customers to visit at restaurant is to taste
different varieties of food at one place (Bijker and et. al., 2012). In order to make decision
regarding establishing new venture in which city, Bermingham city is selected as it has been
identified that it is one of the popular city where large number of local people as well as tourist
are arrived every year. This, it increases the chances for Delicious Delictable to survive in
market within short period of time.
In order to make new venture more successful in first attempt, an entrepreneur decide ton
run restaurant in partnership so as to get enough knowledge and new ideas to bring restaurant
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ahead among the existing competitors. Delicious Delictable has acquired approx. 1600 square
feet near Bermingham on lease of 5 years with an aim of continuing business more successfully
for upcoming years. As a restaurant is run in partnership thus it becomes easy to egt adequate
amount of funds from different sources such as own capital and loans from financial institutions
which may around 400000 to 490000.
Objectives
 To generate huge income
 To maximise satisfaction level of customers coming from different nations
 To capture huge market share
 To become known in market within short period of time.
Target market
It is essentially required for an entrepreneur to identify the targeted customers which
decide the growth and success of Delicious Delictable. For this,it is important to conduct
research in order to find out the taste and preferences of customers along with the challenges that
may comes in the way of success of restaurant. Information gathered from research directs the
management to make an effective decisions and strategies to attract targeted customers through
adopting various promotional tools and techniques (Dos Santos, Patel and D'Souza, 2011). For
this, market has been segmented in different parts which are given as below:
Demographic: Under this, the market has been segmented on the basis of characteristics
of customers such as gender, caste, religion, income level etc. thus required to be considered and
analyse such aspects by the management in order to grab their attention. As it has been identified
from the research that mostly young people prefer to visit restaurant with their colleagues with
an aim of tasting foods of different nations at one place. Therefore. All the plans and strategies
shall required to be made to attract their interest and buying behaviour.
Geographic: Under this, the market has been segmented according to the locations or
places. In order to generate huge income, the management need to identity such location where
their restaurant can get maximum crowd. Due to this, Bermingham city has been finalised by the
management as large number of local people along with the visitors are visited at such city which
increases the chances of increasing sales figure of restaurant (Duggal and Sassoon, 2015).
Psychographic: Under this, the market has been segmented on the basis of lifestyle,
attitude of people etc. which affects the decision making of management. For example, people
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form medium and higher income group mainly prefer to visit at such places in order to taste
foreign dishes at one place. Thus, such income group are required to be targeted by enterprise in
order to achieve their loyalty.
Competitive analysis
As in Bermingham city, there are huge number of restaurants exist which may affect the
existence of Delicious Delictable. Therefore, it must required for management of Delicious
Delictable to make proper analyse of their rivals first and accordingly make competitive plans
and strategies that bring them ahead than their rivals. Delicious Delictable is operated it business
in Bermingham city where lots of competitors in same field are exist such as Adam’s restaurant,
Simpson, San Carlo restaurant etc. which brings lots of challenges and difficulties towards
Delicious Delictable to attract people of Bermingham. The only way that such restaurant could
compete with such rivals is through offering optimum quality food products at an effective prices
with healthy environment and seating arrangements. It will help them in attaining good image in
customer’s mind which help management to achieve their loyalty as well (Fernhaber and Li,
2013).
P2: Specific tangible and intangible resources that required for a new venture
Resources are a valuable asset which supports an organisation in running business more
smoothly. It can be of different types such as tangible and intangible resources which contributes
maximum to the growth and success of an organisation. An entrepreneur if have sufficient
resources then only they are able to think about starting a new venture otherwise it is much
difficult for them to run business effectively. Tangible resources includes such resources which
can be seen and touched such as Plant & Machinery, Land & Building, Employees, funds etc.
Whereas intangible resources are such resources which are not visible instead plays a valuable
role in supporting organisation to achieve growth and success. Delicious Delictable deals in
offering multiple number of dishes of different nations which requires huge amount of human
capital, funds and other resources. For this, the management of Delicious Delictable are required
to arrange and manage resource in order to operate business in more smoothly manner. For
example, recruiting experienced cooks who have knowledge of cooking multiple dishes of
different nations (Hird, 2012). Thus, resources are essential need of every enterprise which are
further discussed under the below:
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Tangible resources: It is such type of resources which are physically present in an
organisation such as Plant & Machinery, Land & Building, Human resources, funds, food items
etc. thus essential required to operate business in order to meet customer's needs and
requirements. Among various resources, it must required for new venture to have financial
resources in order to acquire other resources and execute business activities in an effective and
efficient manner. So, it is important for an entrepreneurs of Delicious Delictable to raise funds
from different sources such as financial institutions, banks, venture capital, peer-to-peer lending,
crowd funding etc. due to which they can financially stable in market. Along with financial
resources, human capital is also play an important role in doing all business activities such as
producing food items, marketing their products, well treatment to visited customers at their
restaurant etc. This will help restaurant to achieve huge customer strength (Hulbert, Gilmore and
Carson, 2013).
Intangible resources: It includes such resources which has no existence but instead of
that playing an important and vital role in growth of business. Such resources includes
trademarks, goodwill, customer relation etc. which can be acquired through operating business in
more effective and ethical manner. For example, offering quality and healthy food products help
in achieving loyalty of customers and establish better relation with them with an expectation of
making them regular customers. Through achieving loyalty of customers, Delicious Delictable
can easily achieve good reputation and goodwill in market which bring disadvantages to their
rivals. The management of Delicious Delictable ned to develop new ideas and concepts on
continuous basis with a motive of maximising the satisfaction level of targeted customers. It
must also required for entrepreneurs to secure their unique and new ideas that makes their
restaurant different from their rivals through using different tools such as copyrights, trademarks,
patent etc. This will help Delicious Delictable to make their own identity in market.
TASK 2
P3: Formulation of credible proposal to launch a new venture
To make new restaurant more successful, it should required to have adequate knowledge
about market and sufficient skills/abilities in order to formulate an effective plans and strategies
for future growth and success in competitive market (Jayawarna, Jones and Macpherson, 2011).
Market knowledge can be get through conducting research about market trends and customer's
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taste and preferences which directs the management to bring out new policies and concepts to
maximise the satisfaction level of targeted customers (Kariv, 2013). Such plan can be formulated
for the betterment of Delicious Delictable are given as below:
Executive Summary An entrepreneur having sufficient resources and new idea
decide to enter into market through starting a new
restaurant in Bermingham city. Offering wide range of
food items of different nations makes them different from
their rivals. The main aim and objective of running
restaurant is to earn huge profits and revenue.
Company description Delicious Delictable is a new restaurant which is going to
established in Bermingham city offering multiple number
of food products of different nations with an objective of
attracting customers throughout the world. Their main
offerings are Thai’s Tom Yum Goong, Spanish’s
Croquettes, Chinese’s Kung Pao chicken and Chowmein ,
Indian’s fish curry and butter chicken etc.
Market analysis Business environment is full of uncertainties due to
internal and external factors which brings lots of
challenges and difficulties towards Delicious Delictable to
establish in new market. For this purpose, it is essential
for management to deal with such influencing factors
through analysing them carefully. For this, PESTLE
Analysis shall required to be conducted along with SWOT
Analysis in order to determine their own strength and
capabilities as well. This will direct the management to
make an effective decisions and strategies in order to
bring profitable outcome in near future.
Financial protection The restaurant are more capable to deal with targeted
customers when it has attained sufficient resources such as
human capital, funds, plant & machinery etc. To acquire
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such resources, the management have adoption to raise
funds from different sources such as banks, venture
capital, crowd funding etc. As Delicious Delictable run in
partnership form thus it become easy to achieve adequate
resources as all the partners contribute equally to strong
the financial position of restaurant.
Benchmarking It is important for management to set goals or target
towards employees so that they can feel motivated and
contribute maximum efforts in bringing Delicious
Delictable ahead than their rivals in Bermingham market.
P4: Skills and capabilities required to launch a new venture
There are specific skills and capabilities required to have present in an entrepreneur so as
to make Delicious Delictable more successful in market within shorter period of time. Such skills
and abilities are listed below:
Management skills: It is crucial to manage all business activity in effective manner as if
any discrepancy are occurred then it may brings big disadvantage to business. Thus, it is
important for an entrepreneur to have management skills in order to manage all things in
profitable way. For example, allocation of resources to different activities such as production and
marketing activities is part of management skills (Klotz and et. al., 2014).
Decision making skills: Due to high competition in market, every decision should be
taken more carefully in order to bring their business ahead than their rivals. Thus, decision
making skills is also an important skills to have present in management which help new business
to compete in complex market environment.
Leadership skills: Contribution of employees is must if want to achieve growth and
success thus it is essential to have leadership skills in an entrepreneur in order to bring
motivation among employees so that they can bring new ideas and concepts in order to maximise
the satisfaction level of customers visited at their restaurant.
Risk taking ability: Business environment is full of uncertainties which brings lots of risk
which may affects the existence of Delicious Delictable. As risk also present while grabbing
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opportunities that brings Delicious Delictable ahead than their rivals. For this, an entrepreneurs
must be a risk taker in order to deal with influencing factors in more effective and efficient
manner.
TASK 3
P5: Determination of promotional activities and channels for launching a new venture
Promotion is must required to acquire knowledge by the customers about the new
restaurant established in market. For this, it is important for management of Delicious Delictable
to adopt various promotional tools and techniques in order to grab an attention of targeted
customers about the existence of new restaurant and their offerings in market. Such promotional
tools includes:
Social media platform: This is a platform where large number of people across
worldwide are available due to which it becomes easy for Delicious Delictable to grab their
attention through advertising their offerings and other services on such platforms which includes
Twitter, Instagram, Facebook etc. This will bring interest among customers that will motivate
them to visit at such restaurant at once whenever come to Bermingham (Marlow and McAdam,
2012.).
Mobile Billboards: Creating a unique and creative punchlines, logo etc. can easily grab
an attention of customers through out the world thus are more helpful and effective. Through
this, the customers can easily recognises their restaurant with their logo or symbol.
Personal promotions: In this promotional technique, the members of Delicious
Delictable personally meet to the targeted customers and influence their decision of visiting at
restaurant in favourable manner. It can be done through distributing pamphlets, Brochures,
catalogues etc. It takes time but once it came into customer's mind then it will be beneficial for
venture for longer period of time.
P6: Formulation of appropriate promotional activities plan for both launch and pre-launch
It is important for management of Delicious Delictable to make a suitable promotional
planning before launching and at the time of launch of new restaurant. As first impression in
market create permanent image in customer's mind thus it must essential to arrange launch
programs in more positive way (Morris, 2015).
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Pre-launch promotion: This is the primary stage before launching new venture in
market. At this stage, the business has focused on starting their own restaurant website in order
to provide details about the openings to media channels along with the time and venue.
Launch: This is the stage where the new venture firstly introduced in the market with the
required information related with them. At this occasion, all invited media are gathered to cover
every information about the restaurants along with their owners which grabs an attentions of
large number of customers along with their rivals. In this opening party, the owners or partners
of Delicious Delictable are answering the questions asked by the media in order to provide
sufficient information in detailed (Read and et. al., 2016).
TASK 4
P7: Monthly cash budget for the pre and after launch phase
Cash Budget is made to identify the cash requirements in order to execute all business
activities in an effective and efficient manner so as to achieve desire goals and objectives. Here
are the cash flow budget for Delicious Delictable for the launch of restaurant and an after 12-18
months (Robb and Watson, 2012).
Cash budget of Dream Delicious restaurant before launch
Year 2015 Jan Feb Mar April May
Food Sales amount 42,152 42,563 43,526 43,568 44,124
Beverage Sales 19,751 12,451 12,456 13,452 14,528
GROSS SALES (Total) 61,903 55,014 55,982 57,020 58,652
COGS
Food 14,525 14,046 14,364 14,377 14,561
Beverage 6,515 3,113 3,114 3,363 3,632
GRAND TOTAL 21,040 17,159 17,478 17,740 18,193
GP 40,863 37,855 38,504 39,280 40,459
General and
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Administrative
Workers Salaries 15,476 13,754 13,996 14,255 14,663
Management Salaries 3,400 3,400 3,400 3,400 3,400
Employer
Taxes/Benefits (15%
Wages) 2,265 2,058 2,087 2,119 2,168
Employees
Compensation (6%
Wages) 1,133 1,029 1,044 1,059 1,084
Advertisement 800 800 800 800
800
Bookkeeping 150 150 150 150 150
Credit Card Charges
(1%) 619 550 560 570 587
Insurance 250 250 250 250 250
Legal and Professional
Fees 100 100 100 100 100
Misc. Other 250 250 250 250 250
Office Supplies 175 175 175 175 175
Rent 3,200 3,200 3,200 3,200 3,200
Repair and
Maintenance 300 300 300 300 300
Small Equipment 200 200 200 200 200
Telephone [phone]
Garbage 200 200 200 200 200
Utilities 1,200 1,200 1,200 1,200 1,200
Total Gen. and Admin.
(Fixed) 29,867 27,766 28,062 28,378 28,876
NET PROFIT OR LOSS 10,996 10,089 10,443 10,901 11,583
SBA Loan 3,582 3,582 3,582 3,582 3,582
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Cash Flow After
Financing 7,414 6,507 6,861 7,319 8,001
Draw 4,000 4,000 4,000 4,000 4,000
Net Cash Flow 3,414 2,507 2,861 3,319 4,001
Accumulated Cash
Flow 5,921 8,782 12,101 16,102
Average Daily Sales /
22 days 2,814 2,501 2,545 2,592 2,666
Cash budget after first 12-18 months
June July Aug Sept Oct Nov Dec
YTD
2013
44,325 44,658 45,210 45,325 46,251 46,325 47,125 5,35,152
15,574 15,487 16,421 16,251 17,452 17,245 17,845 1,88,913
59,899 60,145 61,631 61,576 63,703 63,570 64,970 7,24,065
-
14,627 14,737 14,919 14,957 15,263 15,287 15,551 1,77,215
3,894 3,872 4,105 4,063 4,363 4,311 4,461 48,806
18,521 18,609 19,025 19,020 19,626 19,599 20,013 2,26,021
-
41,379 41,536 42,606 42,556 44,077 43,972 44,958 4,98,045
- - - - - - - -
14,975 15,036 15,408 15,394 15,926 15,893 16,243 1,81,016
3,400 3,400 3,400 3,400 3,400 3,400 3,400 40,800
2,205 2,212 2,257 2,255 2,319 2,315 2,357 26,618
1,102 1,106 1,128 1,128 1,160 1,158 1,179 13,309
800 800 800 800 800 800 800 9,600
150 150 150 150 150 150 150 1,800
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599 601 616 616 637 636 650 7,241
250 250 250 250 250 250 250 3,000
100 100 100 100 100 100 100 1,200
250 250 250 250 250 250 250 3,000
175 175 175 175 175 175 175 2,100
3,200 3,200 3,200 3,200 3,200 3,200 3,200 38,400
300 300 300 300 300 300 300 3,600
200 200 200 200 200 200 200 2,400
150 150 150 150 150 150 150 1,800
200 200 200 200 200 200 200 2,400
1,200 1,200 1,200 1,200 1,200 1,200 1,200 14,400
29,256 29,331 29,784 29,768 30,416 30,376 30,803 3,52,684
-
12,122 12,205 12,822 12,788 13,661 13,596 14,155 1,45,361
3,582 3,582 3,582 3,582 3,582 3,582 3,582 42,984
8,540 8,623 9,240 9,206 10,079 10,014 10,573 1,02,377
4,000 4,000 4,000 4,000 4,000 4,000 4,000 48,000
4,540 4,623 5,240 5,206 6,079 6,014 6,573 54,377
20,643 25,266 30,505 35,712 41,791 47,804 54,377
2,723 2,734 2,801 2,799 2,896 2,890 2,953
P8: An appropriate legal form for the venture
There are different types of organisation which need to be followed different legal
systems and structure in order to sustain in market for longer period of time. Due to this, an
entrepreneur first clearly decide which type of organisation they want to start after analysing all
legal structure and systems. Such type of organisation includes sole trader, partnership and
companies which are briefly discussed under below:
Sole trader: This is the business which owned and controlled by single owner without
facing any legal distinctions due to which it become easy for an entrepreneur to start such type of
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company. A single owner has attained unlimited liability towards the business which means
his/her personal assets are also be used while repaying debts of company. As a single owner, the
invested capital are less due to which company has operated its business at low scale. All the
profits and losses are bear by himself only (Song and Vinig, 2012.).
Partnership firms: In this, two or more partners come together to form a company with
an objective to earn profits. In this, the liability of partners is limited up-to the extent of unpaid
amount. It is formed with a contractual agreement called as partnership deed which contains al
terms and conditions regarding sharing profit &loss ratio, invested capital etc.
Company: It can be classified into two i.e. private and public which can be established
according to their nature of business activities. Private company follow more rules and
regulations as compared to public company. For example, private company doesn't allow to
invite public to subscribe their shares whereas public company does (Zafar, Yasin and Ijaz,
2012).
In the present assignment report, Delicious Delictable is formed in partnership with an
objective of achieving success within short period of time with the help of getting contribution
from partners. Due to high competition, it become tough for new venture to exist in new market
thus it required to get adequate support from more than one person due to which Delicious
Delictable has been formed in partnership. Due to this, the loss can be share equally among
partners which reduce burden on single person. Different new and innovative ideas obtained
from different partners helps in bringing new concept also increase the chances of sustaining in
market for longer period of time (Launching a new venture, 2018).
CONCLUSION
It has been concluded from the above project report that there are lots of challenges and
difficulties comes in the way of success of new venture which requires an effective skills and
knowledge in an entrepreneurs so that such challenges can be tackled in more effective ad
efficient way. Challenges may arises due to high competitions, insufficient resources,
inadequate support from employees, changing trends in market etc. which affects the existence
of new venture. For this, it is important to invest money on conducting research in order to find
out influencing factors and accordingly make a effective decisions and plans to deal with them so
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as to sustain in new market and earn huge profits. Adoption promotion tools is also taken into
account in order to spread information about new venture in market.
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REFERENCES
Books and Journals
Baucus, M. S. and Mitteness, C. R., 2016. Crowdfrauding: Avoiding Ponzi entrepreneurs when
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Bijker, W. E. and et. al., 2012. The social construction of technological systems: New directions
in the sociology and history of technology. MIT press.
Dos Santos, B. L., Patel, P. C. and D'Souza, R. R., 2011. Venture capital funding for information
technology businesses. Journal of the Association for Information Systems. 12(1). p.57.
Duggal, S. and Sassoon, D., 2015. Crowdfunding: Insights Into The Motives That Influence
Entrepreneurs When Launching A Successful Campaign.
Fernhaber, S. A. and Li, D., 2013. International exposure through network relationships:
Implications for new venture internationalization. Journal of Business Venturing. 28(2).
pp.316-334.
Hird, A. P., 2012. The impact of entrepreneurial cognition on the founding and survival of new
small businesses. Industry and Higher Education. 26(6). pp.453-460.
Hulbert, B., Gilmore, A. and Carson, D., 2013. Sources of opportunities used by growth minded
owner managers of small and medium sized enterprises. International Business Review.
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Jayawarna, D., Jones, O. and Macpherson, A., 2011. New business creation and regional
development: Enhancing resource acquisition in areas of social deprivation.
Entrepreneurship & Regional Development. 23(9-10). pp.735-761.
Kariv, D., 2013. Female entrepreneurship and the new venture creation: An international
overview. Routledge.
Klotz, A.C. and et. al., 2014. New venture teams: A review of the literature and roadmap for
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Marlow, S. and McAdam, M., 2012. Analyzing the influence of gender upon high‐technology
venturing within the context of business incubation. Entrepreneurship Theory and
Practice. 36(4). pp.655-676.
Morris, M. H., 2015. Entrepreneurship as experience. John Wiley & Sons, Ltd.
Read, S. and et. al., 2016. Effectual entrepreneurship. Taylor & Francis.
Robb, A. M. and Watson, J., 2012. Gender differences in firm performance: Evidence from new
ventures in the United States. Journal of Business Venturing. 27(5). pp.544-558.
Song, Y. and Vinig, T., 2012. Entrepreneur online social networks–structure, diversity and
impact on start-up survival. International Journal of Organisational Design and
Engineering 3. 2(2), pp.189-203.
Zafar, M. J., Yasin, G. and Ijaz, M., 2012. Social networking a source for developing
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Online
Launching a new venture 2018. [Online]. Available through:
<https://www.exed.hbs.edu/programs/lnv/Pages/default.aspx>.
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