Launching a New Venture: Between the Brew

This document discusses the process of launching a new venture called Between the Brew, a cafe in London. It covers topics such as identifying target markets, conducting competitive analysis, determining required resources, skills and capabilities, planning promotional activities, and creating a cash budget for the pre-launch phase and first 12-18 months.

Turning a vision into
action launching a new
venture

INTRODUCTION....................................................................................................................................3
TASK 1....................................................................................................................................................3
P1 Explain a new venture identifying specific target markets and undertaking competitive analysis 3
P2 Specific tangible and intangible resources that would required for launching new venture..........4
TASK 2....................................................................................................................................................5
P4 Skills and capabilities required for launching new venture............................................................5
TASK 3....................................................................................................................................................5
P5 Different promotional activities and channels that will support launching....................................5
P6 Develop appropriate promotional activity plan for both launch and pre-launch............................6
TASK 4....................................................................................................................................................6
P7 Cash budget for pre-launch phase of venture and first 12-18 month preceding launch.................6
P8 Appropriate legal form to venture stating why it has been chosen.................................................9
CONCLUSION......................................................................................................................................10
REFERENCES.......................................................................................................................................11

INTRODUCTION
In present scenario, individual want to launch their own business within any industry in which
they have interest. Before launching business individual do market research and after that identify
sector in which their business can survive for long term (Scarborough2016). Along with this,
launching new venture has wide impact on economy in positive manner as it results in providing
employment opportunities. Individual can launch their business at any place which can be domestic or
international and main motive behind this to satisfy needs and wants of customers in effective manner.
New venture for this assignment is Between the Brew which will going to be launched in
market of London. This report will, going to analyse target market, competition analysis as well as
chosen respective cafe. In addition to this, it will also highlight skills and capabilities that are needed
for conducting daily operations of cafe and how it will develop. Along with this, explanation as well
as justification related to promotional activities and budget of Between the Brew will also give.
TASK 1
P1 Explain a new venture identifying specific target markets and undertaking competitive analysis
Between the Brew is new venture which will going to launch their business in London, United
Kingdom. It offers organic coffee and some snacks items like burger, sandwiches, Pizza and so on.
Along with this, there are several services which help respective cafe in attracting large number of
customers such as little library for books lovers and also have open play area for indoor games which
help in entertaining adults and children both (Nagyet.al., 2012). It is small scale organisation which
have less than 300 personnel and in London there are several small business which are around 98% of
all business. Moreover, there are some elements which are evaluated and determined by Between the
Brew for achieving their objectives in effective manner explanation are as follows :-
Identifying particular target market – Target market refers to group of customers to whom
company will going to offer their products. Identifying target market will provide assistance to
company in determining group of customers who have same features like age, gender, income, taste,
preferences, location, lifestyle and many more (Kariv, 2013). Between the brew conduct target market
analysis before launching their business in London. Thus, target customers will be male and female
both, books lovers, middle and high income people, children and people up to 45 years. Along with
this, respective cafe also focus on business class people who want to conduct meeting in cafe.
Analysing of competition – Between the Brew conduct competitive analysis before launching
their venture in London through which they will be able to understand customers as well as identify

strength and weakness. Thus, in London there are several coffee cafe so for Between the Brew level of
competition will be high. So it is important for respective cafe to design strategy in such manner
which assist them in long term sustainability and run business in effective manner.
SWOT analysis of Company – Here SWOT stands for Strength, weakness, opportunity and
threats (Chrismanet.al., 2012). Explanation of in relation Between the Brew are as follows :-
Strength
 Knowledge – major strength for Between
the Brew is that they have proper
knowledge about market.
 Relationship selling – respective cafe get
to know their customers one by one.
Weakness
 Brand power – Between the Brew is small
company as not able to match
competitors. Respective cafe don’t have
national brand name.
Opportunity
 Training – Most of the stores don’t
provide training but as system become
more complex and training in greater
manner.
Threats
 Larger price oriented store – when they
advertise low price in newspaper
customers of Between the Brew think they
are not giving them good values.
P2 Specific tangible and intangible resources that would required for launching new venture
For launching new venture there is requirement of several tangible and intangible resources
explanation of these in relation of Between the brew are as follows :-
Tangible resources – These are the resources which have physical presence such as
machinery, land, buildings, chairs, table and many more. Between the Brew tangible resources help
them in attracting large number of customers (Hmieleski and Lerner, 2013). Explanation of tangible
resources are as follows :-
 Financial resources – It is most important part of company because through financial
resources Between the brew will able to conduct their operations in effective manner.
 Organisational resources – It is formal reporting structure of company and its formal
planning, controlling as well as coordinating systems.
 Physical resources – It include chair, table, staff, machines, other cooking equipments or
utensils, security system etc.
 Technological – It involves Trademarks, copyrights, patents and Trade Secrets.

 Human resources – It is tangible resources which is essential part of Between the Brew and
help company in achieving goals as well as objectives (Burns, 2017). Human resources
consider employees and customers both.
Intangible resources – These resources are don’t exist in physical forms as it includes
resources such as trademark, patents rights, copyrights, franchise rights, leasehold interests,
goodwill, pleasant environment and atmosphere, services offer by companies, quality of
products which they offer and many others.
P3 Produce a credible proposal to launch new venture
It is important to design business proposal while launching a new business explanation are as
follows :-
Executive summary – Between the Brew is going to establish in London, United Kingdom,
which offer organic coffee and variety of services. People now a days like organic product more in
comparison of these so this, organic coffee will assist Between the Brew in attracting large number of
customers.
Company description - Between the Brew is a new venture which is going to launch in
London, United Kingdom. It offer organic coffee, sandwich, burger, pizza and many more. There are
also numerous services which attractive their customers like they establish little library, they open
play area of indoor games for both children and adults.
Competition analysis – New venture Between the Brew conduct market analysis through
which they able to identify their target audience and market as well as they can plan strategies
according which help them in increasing profitability and customers base (Wells, 2013). Thus, owner
of Cafe will conduct SWOT analysis and PESTEL analysis to do market analysis in effective and
appropriate ways. Through SWOT company can analysis their inner strength and weaknesses and
identify its opportunities in new market and threats from its competitors. By PESTEL they analysis
and evaluate macro environments or external marketing environments of the respective company in
effective and efficient manner.
Price strategy – Between the Brew conducts evaluation and decides their pricing strategies for
launching business in London, United Kingdom. After analysing they select Premium pricing strategy
in which is most effective for new venture with unique products and services. In this they set price of
products and services higher than their customers.

TASK 2
P4 Skills and capabilities required for launching new venture
There is requirement of several skills as well as capabilities while launching new business for
running it in effective manner (Coleman and Kariv, 2014). In relation of Between the Brew
explanation of skills and capabilities required by owner are as follows :-
Skills
 Marketing skills – While launching new venture there is requirement of basic marketing skills
so they can attract customers effective manner. Thus, it is important for owner of Between the
Brew Cafe to have marketing skills because it help in formulating business ideas such as
segmentation of market, targeting customers, positioning products and services, brand
managements, evaluate consumer behaviour and so on.
 Public speaking skills – It is important for owner of new venture to have public speaking
skills because these will help them interacting with customers in proper manner and also assist
in fulfilling their needs and wants. Thus, it is essential for founder of Between the Brew to
acquire public speaking skills in effective manner.
 Risk assessment – It is important for owner of new venture to known how to manage risk
because it allow business to grow, while avoiding potential threats to business.
Capabilities
 Team building capabilities – For managing daily basis activities in effective manner it is
important for them to have team building skills because with the assistance of this they will
able conduct their activities in effective manner (Read and et.al., 2016).
 Capability to identify strength and weakness – As an business owner it is important to have
capabilities which help in identifying strength and weakness. So that, Between the Brew will
able to design their strategies in effective manner which result in success of company.
 Risk taking capabilities. It is important for person who is starting their business to take risk
because it result in growth of business. Without taking risk it become difficult for an
organisation to sustain within business environment for long duration.

TASK 3
P5 Different promotional activities and channels that will support launching
While launching new venture it is important to conduct promotional activities so that
customers will get attract to business (Curley and Formica, 2013). There are several channels and
activities of promotion which Between the brew can select some of them are as follows :-
 Social media contests – More than half of the population use social medial tools now a days
like face-book, twitter, Instagram and so on. Thus, social media will assist Between the Brew
in reaching as well as attracting large number of customers. Along with this it is cost and time
effective promotional channel.
 Websites promotions – It is nature of customers that before purchasing product they first visit
company website and check it. Thus, owner of Between the Brew have to design their website
in effective manner which include all important information related to cafe, product and
services.
 Newspaper and magazines – it is type of traditional marketing method and part of print
media. Most of the people still approach newspaper and magazines in morning which help
Between the Brew in approaching large number of people (Valdez and Richardson, 2013). But
it is expensive method of advertising for print media.
 Broadcast advertising – It is form of advertising which includes radio, television, broadcast
and so on. Broadcast advertising is still effective way which helps in reaching million of
people, especially when the super Bowl comes around (Hantman and Gimmon, 2014). It is
expensive and time consuming advertising strategy which is not suitable for Between the
Brew. But help in attracting large number of people at single time.
P6 Develop appropriate promotional activity plan for both launch and pre-launch
Marketing mix refers to set of actions or tactics which an organisation use for promoting its
brand or product within market area (Mullins, 2017). There are 7Ps of marketing which Between the
Brew use for promoting their brand as well as product within market area. 7Ps are product, price,
place, promotion, physical evidence, people and process. Explanation in relation of Between the Brew
are as follows :-
 Product – Main Product of Between the Brew is organic coffee along with this they are
offering eatable items like Burger, Sandwich, Pizza and so on. There are also numerous
services which attractive their customers like they establish little library, they open play area
of indoor games for both children and adults.

 Price – Between the Brew conducts evaluation and decides their pricing strategies for
launching business in London, United Kingdom. After analysing they select Premium pricing
strategy in which is most effective for new venture with unique products and services. In this
they set price of products and services higher than their customers.
 Place – Between the Brew is establishing their Cafe in London, United Kingdom. Because it
will be suitable place for attracting large number of customers.
 Promotion – There are several promotional tool and techniques which Between the Brew is
using such as social media, print media and many more.
 Physical evidence – Respective Cafe physical evidence is attractive as have little library, they
open play area of indoor games for both children and adults (Bridge and Hegarty, 2013).
 People – Between the Brew have approx. 300 employees which help in serving customers
within more effective manner. Along with this, they are fully skilled which assist in making
customers satisfy.
 Process – Employees of Between the Brew serve their customers who visit cafe in proper
manner.
TASK 4
P7 Cash budget for pre-launch phase of venture and first 12-18 month preceding launch
Pre launch cash budget
Cash Flow budget
Particulars Jan Feb Mar Apr May June July
Cash inflows
Investment 10000
Credit sales 3000 3000 3000 4500 1500 3500 4200
Total inflows 13000 3000 3000 4500 1500 3500 4200
Cash outflows
Fixed : Equipment’s 2000 2500 1500 2000 1200 1500 800
Variable : Direct material 500 300 400 300 150 500 300
Total outflows 2500 2800 1900 2300 1350 2000 1100
Net cash flow 10500 200 1100 2200 150 1500 3100

Opening balance 0 7700 7900 9200 11400 11500 13000
closing balance 7700 7900 9000 11400 11550 13000 16100
August
Septembe
r October
Novembe
r December Jan Feb
1000 2000 800 1200 1500 2600 3000
1000 2000 800 1200 1500 2600 3000
200 300 100 600 300 2000 2500
400 500 100 100 400 300 300
600 800 200 700 700 2300 2800
400 1200 600 500 800 300 200
16100 16500 17700 18300 18800 19600 20900
16500 17700 18300 18800 19600 19900 21100
Mar Apr May June July
3000 4500 1500 4500 7200
5000 4500 1500 3500 4200
1500 2000 1200 1500 800
200 300 150 500 300

1700 2300 1350 2000 1100
3300 2200 150 1500 3100
21100 22400 24600 24750 16250
24400 24600 24750 26250 19350
Post launch cash budget
Particulars Jan Feb Mar Apr May June July
Cash inflows
Investment 11000
Credit sales 1200 2000 8500 3000 5000 6500 1200
Total inflows 12200 2000 8500 3000 5000 6500 1200
Cash outflows
Fixed : Equipment’s 2500 1000 1500 2000 2100 1600 1300
Variable : Direct material 3500 300 250 100 100 500 100
Total outflows 6000 1300 1750 2100 2200 2100 1400
Net cash flow 6200 700 6750 900 2800 4400 -200
Opening balance 0 6350 5850 11600 11950 15750 20250
closing balance 6350 5650 12600 12500 14750 20150 20050
August September October November December Jan Feb Mar
3200 2500 8200 1250 3210 1200 5000 2500

3200 2500 8200 1250 3210 1200 5000 2500
600 600 500 3000 500 6000 2500 1500
150 450 450 1500 500 3000 300 200
750 1050 950 4500 1000 9000 2800 1700
2450 1450 7250 -3250 2210 -7800 2200 800
19750 22100 22650 30100 28850 30860 32160 32360
22200 23550 29900 26850 31060 23060 34360 33160
Apr May June July
4500 3500 3500 4200
4500 1500 3500 4200
2000 2500 3000 400
250 360 250 700
2250 2860 3250 1100
2250 -1360 250 3100
33660 35860 36010 37510
35910 34500 36260 40610
After going through above cash budget it has been determine that establishing new venture is
appropriate decision. Inflow as well as outflow of cash explains organisation situation as well as
liquidity. Thus, pre and post launch cash budget of both is compared and decision seems appropriate.

P8 Appropriate legal form to venture stating why it has been chosen
When individual want to launch their new business it is important for them to select
appropriate legal structure (Faems and et. al., 2012). It is also named as ownership of business or form
of business. There are several type of legal structure such as partnership, sole proprietorship, non-
profit, co-operatives and corporations. By owner of Between the Brew sole proprietorship has been
selected explanation are as follows :-
Sole Proprietorship: It is also named as sole trade as well as individual entrepreneurship. It is
a business or enterprise which is run or operates through one person. Moreover, both business entity
and owner are not different from each other. There are some strength, weakness, opportunity and
threats of sole proprietorship explanation are as follows :-
Strength Weakness
 Independence of the owner
 Applying creativity of owner
 Unlimited liability
 Lack of inputs
Opportunity Threats
 Easily established
 Minimal government regulation
 Only pay tax on generated income
 Can be closed any time
 Deprived of government provided benefits
CONCLUSION
After going through entire discussion it has been summarised that, launching new venture is
not much easy as it require conducting market research through which entrepreneur will get idea about
target audience and market both. Along with this, there are several resources both tangible and
intangible which are essential for launching business in effective manner. Launching new venture
needs skills and ability by owners for running business in effective manner. Moreover, there is
requirement of several promotional activities for launching new business in effective manner and also
for attracting customers. Cash budget shows the liquidity position of the business which is essential
for attracting more stakeholders. Without the stakeholder a venture have no existence.

REFERENCES
Books and Journals
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Kariv, D., 2013. Female entrepreneurship and the new venture creation: An international overview.
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performance. Journal of Entrepreneurship and Public Policy. 1(1). pp.63-83.
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Hmieleski, K. M. and Lerner, D. A., 2013. The dark triad: Narcissism, psychopathy, and
Machiavellianism as predictors of entrepreneurial entry (summary). Frontiers of
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Curley, M. and Formica, P., 2013. The experimental nature of new venture creation. Springer, 10,
pp.978-3.
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alliances: Governing the transition from exploration to exploitation. Journal of engineering
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Bridge, S. and Hegarty, C., 2013. Beyond the Business Plan: 10 Principles for New Venture
Explorers. Springer.
Mullins, J., 2017. The New Business Road Test: What entrepreneurs and investors should do before
launching a lean start-up. Pearson UK.
Read, S. And et.al., 2016. Effectual entrepreneurship. Routledge.
Coleman, S. and Kariv, D., 2014. ‘Deconstructing’entrepreneurial self-efficacy: a gendered
perspective on the impact of ESE and community entrepreneurial culture on the financial
strategies and performance of new firms. Venture Capital. 16(2). pp.157-181.
Wells, N., 2013. The risks of crowdfunding. Risk Management. 60(2). p.26.