Choosing the Best Business Legal Form for Lima London

The assignment aims to understand how to turn vision into action by choosing the best business legal form for Lima London. It highlights the importance of entrepreneurship in making a start-up or business innovative and successful. The report explores different types of legal forms, including partnership, sole proprietorship, limited company, and more, to determine which one is most suitable for launching a new venture in Manchester.

Turning a Vision into Action

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Identifying specific target markets and undertaking
competitive analysis for Lima London.....................................................................................1
P2. Tangible and intangible resources that would be required by Lima London for the launch
of their new venture...................................................................................................................2
TASK 2 ...........................................................................................................................................3
P3. Credible proposal to launch a new venture in Lima London................................................3
P4. Skills and capabilities required to launch a new venture of Lima London and how they are
acquired or developed. ...............................................................................................................4
TASK 3............................................................................................................................................5
P5. Different promotional activities and channels that will support the launch of the new
venture and justify their choice for Lima London......................................................................5
TASK 4............................................................................................................................................5
P7. An itemised monthly cash budget for the pre-launch phase of the venture and the first 12–
18 months preceding launch of Lima London ...........................................................................5
P8. Legal form for the venture, stating why it has been chosen for Lima London.....................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Entrepreneurship is an activity of starting a new business, developing, organizing and
managing the venture along with bearing any risks involved with a view of making profit. In the
initial phase, an entrepreneur develops a model which is followed by the availability of physical,
financial and human resources for shaping up an innovative idea or thought (Allee, 2012). This
assignment will discuss about several techniques for idea generation, new thoughts on
entrepreneurship, identification of opportunities, feasibility study of target market, organizational
practicability and trends in environment. Also, it discusses the analysis of competitors, skills or
responsibilities needed for business, promotional activities, pricing strategies, budget setting and
legal structures for the successful implementation of business plan and thereby, launches a new
venture for starting a small to medium enterprise in UK with an aim of profit and market share
earnings.
TASK 1
P1. Identifying specific target markets and undertaking competitive analysis for Lima London
Entrepreneur is the responsible person for success or failure of a business idea or service.
For successful implementation of the innovative thought of starting a new venture, they need to
undergo several feasibility studies including market research of the target market and collecting
competitive information to understand the market trends so that it can then strategically plan its
operations to minimise risks. Launching a new business or franchise in a rapid changing market
where there is increased competition is a challenge. Entrepreneur when selecting a SME business
should consider and conduct certain analysis like raising capital, determination of objectives,
selection and recruitment of qualified and skilled employees, etc.
Lima is a restaurant in London which serves Peruvian cuisine which blends unique
flavours and techniques with a combination of different cultures. It is a SME which already has
operations and flourished in the UK. Now, setting up the franchise of Lima in Manchester aims
at expansion of their business to gain brand value and market share (Bläsing and et.al., 2012). It
is providing a cuisine of different culture to make it reach to the world through spreading their
restaurant chain by establishing the brand and attracting customers.
People of UK are lavish and spend more money on new and innovative products or
services. The market also has the potential for food industry and as Lima London being a unique
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food joint in type of cuisine it provides the hurdle of competition won't trouble this
establishment. They need to take some steps for competitor analysis like defining Lima London's
market, creating list of direct competitors, analysing and summarising rival's products and
strategies, comparing and keeping the accuracy of competitive investigation.
Customers spending on each of the menu of Lima London
Cuisine Estimated expenditure on each of them
Desserts £10
Wines £30
Lunch £75
A La Carte £20
P2. Tangible and intangible resources that would be required by Lima London for the launch of
their new venture
Opening a new restaurant needs to consider several things. Starting a business requires
assets which may be tangible and intangible that is necessary for conducting its operations
successfully.
Location and concept- Lima London's idea of providing a Peruvian cuisine makes it
unique in the UK and is a fine dining restaurant which already has its operations in country.
Opening this brand in Manchester as per conducted researches will benefit firm due to increasing
demand of variety food by the youth and middle aged people.
Commercial workspace- According to the needs of Lima London, acquiring a vacant
space or property and even leasing can be done for setting up the restaurant. Designing and
renovating can be done as per the requirement (Chen and Mooney, 2011). The design and
ambient location of Lima London makes the customers feel relaxed and enjoy the food. Keeping
the customer's wants and needs while choosing the building location and its designing helps in
establishing a welcoming ambience for clients.
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Equipment and supplies- A new restaurant needs major appliances like refrigerators,
freezer, dishwasher, cookware, utensils, etc. They also need tables and chairs for dining areas,
large sinks, storage shelves, prep tables, etc. The supplies for meal preparation can be bought
from wholesalers and markets.
Permits and licenses- Lima London's entrepreneur should obtain several permits like
filing articles of incorporation and attaining tax identification number, health services, liquor
licenses, etc. to avoid the legal obligations. The chef should be experienced and must pass all
food safety courses.
Staff- The employees recruited to Lima London are skilled and experienced so that they
can render a pleasant experience to guests at the restaurant. Hiring should be for kitchen, floor,
wait staff and bartenders as they are the integral part of a restaurant and perfect individual should
be appointed for each position to deliver efficiency in work.
Advertisement- Advertising is necessary for new restaurants to put the name of Lima
London in the eyes and mind of general public. Traditional methods like newspaper and radio
ads can be supplemented by social media like Facebook, Instagram, twitter, etc. (Flood, 2010).
Maintaining a good website by including menu, ample information and attractive design can put
a much better impression on customers by attracting them to the brand.
Items Cost
Advertisement £50
Staff £90
Permits and licenses £100
Equipment and supplies £50
Commercial workspace £150
Location and concept £160
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TASK 2
P3. Credible proposal to launch a new venture in Lima London
For a new business start-up, Lima London needs to create a business plan by including
the information for a successful strategy development. It exposes a firm's strengths and
weaknesses as well as reveals ways to benefit from these capabilities and minimize the risks.
Customer- Starting Lima London in Manchester will provide the start up with numerous
customers mainly of young and middle aged as there are food lovers who always want to try
something different. The market for Peruvian cuisine and interest to this culture is present in the
city as there are people who love this particular preparation and will dive into the brand.
Management- Lima London's efficient management team works towards attainment of
expansion of business and maintains activities for growth and development. Starting business
includes managing operational functions, employees, decision making, etc. They need to look
into the financial planning and cost control methods to manage production processes and flow of
capital in organization.
Opportunities- Lima London being a unique cuisine has the possibility of attracting
customers who are potential and have interest to this particular preparation. The clients who are
ready to try this style of food is an opportunity for the firm. Also, being a variety, it can attain
more customers from UK where the people are ready to spend on new and fresh ideas.
Market research- Lima London needs to conduct several market feasibilities to gain
knowledge about the economy and market so that it can plan its strategies and develop action
plans according to the analysis.
Competition- As there are a number of restaurants and hotels in UK, Lima London will
have to face competitors who provide various varieties of foods. The rivals to this firm may be
companies like The Ledbury, Leon and The Alford Bistro.
P4. Skills and capabilities required to launch a new venture of Lima London and how they are
acquired or developed
Starting a new business is an important step by an entrepreneur and before that, there is a
need of considering several factors (Goodale and Milner, 2013). They must possess some skills
and responsibilities which are necessary to launch a new venture. They are:
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Being organized- Keeping a track of all the forms is needed for registering the business
like registration and sales tax forms. Time should be given to look into the locations of business,
keep track of potential employees and vendors, put an advertising plan and make sure of the
finance.
Ability to manage and raise money- Managing cash is important for business
management. Proper allocation of funds and budget are important to keep a balance of the
expenses and costs. To invest, there is a need of understanding the source from money or capital
can be obtained along with the way to convince client to make business good without risk.
Identify strengths and weaknesses- An entrepreneur needs to identify the capabilities of
their organization to make use of it for gaining advantage over rivals and to understand its
weaknesses to minimize risks.
Finance and accountancy- Lima London needs a good team for finance analysts and
accountants to keep the bookkeeping, accounting and investment in a proper way (What Skills
Are Needed to Start a Business, 2018). The accurate records and financial data helps the firm in
achieving good market growth and increase capital also to attract potential investors.
Leadership- Lima London must have efficient leaders to lead the team of employees and
make them motivated as well as inspired to get the work completed with efficiency and
effectiveness (Allee, 2012). Better leadership provides the business to function smoothly and
conduct the operations of management successfully.
Communication- Effective information and message exchanges between the employees
and top level executives in Lima London will ensure good working of the restaurant. It will assist
company in carrying out its business functions effectively as there is need for communication
among the workers and supervisors with managers for solving any issues or problems inside or
outside the organization.
TASK 3
P5. Different promotional activities and channels that will support the launch of the new venture
and justifying their choice for Lima London
There are many ways to promote a new product or service of a business. But choosing the
right activity and channel can help Lima London with best results (Wilby and et.al., 2010). Many
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marketing activities will focus on communicating to customers the features and benefits of the
company and its services. They are:
Social media contests- Giveaways, contests are very common marketing tool. These are
easy way of connecting with customers and bring more followers and fans for Lima London's
social media platforms. Facebook, Instagram and Twitter make the customers an exclusive
chance to be the first person to get their hands on Lima London's unique food cuisine.
Email marketing- Lima London can follow these kinds of promotional tools for reaching
to its customers through newsletters as it is the best and easy way to promote services offered by
company. It allows quick and simple sharing of news of new products, photos and information
with customers.
Facebook Ads- It is a huge market window which Lima London can use to promote its
services (Bläsing and et.al., 2012). It is an effective tool as the users of this platform are more
than 1.44 billion for around the world. This helps in targeting the audience shortly because of its
impressive data collection which permits businesses to target by age, gender, location, interest
and more.
Search Engine Optimization- It is a tool which will help Lima London's website to
appear on top of the page when someone searches for it online. It is by using chosen keywords
which are commonly used when anybody searches for its products or services and will boost
Lima London in page rankings to make someone click on the site.
TASK 4
P7. An itemised monthly cash budget for pre-launch phase of venture and the first 12–18
months preceding launch of Lima London
Cash Budget for new venture in Lima London Restaurant
Beginning balance £320.00
Add:
Estimate of collection of account receivables £750.00
Estimate cash sales £250.00
£1,320.00
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Less:
Estimate payment on account payable £800.00
Estimate cash expenses £150.00
Contractual payments £150.00
Quarterly dividend £50.00
£1,150.00
Estimated balance £170.00
The estimated cash budget of Lima London for the pre-launch phase was amounting to
£320.00 and an addition of the accounts receivables for that stage was £750.00 which was been
added to the fund as per the plan developed (Chen and Mooney, 2011). The monetary
programme plan for 12-18 months of Lima London is expected to have an estimated cash sales
of £250.00 after the launching of restaurant which all amounts to become £1,320.00. Out of it the
expenses incurred and deductions are reduced; the estimate payment on accounts payable
amounts to £800.00, estimate of cash expenses £150.00, contractual payments of £150.00 and
quarterly dividend £50.00. All these gains and expenses are calculated and accounted which lefts
the estimated balance of £170.00 for Lima London.
P8. Legal form for the venture stating why it has been chosen for Lima London
One of the major decisions that Lima London has to take regarding legal configuration
which will define its liabilities and rights of participants in the business's ownership, control,
personal liabilities, time period and financial structure. For a Small and Medium Enterprise the
best choice is to go for a partnership structure as it is simple and inexpensive to establish and
maintain. Lima London is a partnership based business organization where two or more people
shares the ownership of the restaurant. The law does not differentiate between owners and
business like in proprietorships (Flood, 2010). Partners of Lima London have a legal agreement
which sets decisions to be made, sharing of profits, disputes settlement, admission of future
partners and how partners can be bought out or steps for dissolving when needed (Forms of
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Business Ownership, 2018). If there is no defined process there will be greater problems and they
must decide on time frame and capital contribution of each to avoid splitting up of partnership.
Lima London also considers several types of partnerships like:
General partnership: Partners dividing responsibility of management, shares of profit or
loss according to the agreement. It is easy and not so much expensive to create and operate.
Limited partnership and partnership with limited liability: This form is not usually used
for operating short term projects or for investing in capital assets. It is more complex and formal
than general partnership (Goodale and Milner, 2013). It is more expensive to create and here
partners can raise cash without involving outside investors in business management.
Joint venture: This kind is for a specific time period or a project. If this is repeated by
partners it will be recognized as an ongoing partnership and will distribute accumulated assets
upon the dissolution of entity.
Lima London uses a partnership form of operations because of the following advantages:
 It is easy to establish but time should be invested in developing the agreement of
partnership.
 More than one owner makes the possibility of increased fund raising for the capital need
and investment.
 Profits generated from the business flows directly through partners and there is no other
medium in between.
 Partners with complementary skills get benefited from the business usually.
From all the above types of legal forms Lima London should be choosing Partnership as
this will be considered to be most appropriate and correct. There are many reasons for choice of
partnership for Lima London like there will be no single person to take all loss. There are more
easy steps for coming into agreement within partnership and many possibilities of sources of
funds are there. So it is suggested that partnership type of legal form must be chosen for
company to launch in Manchester.
CONCLUSION
From this report on turning vision into action of launching a new venture, it can be
concluded that entrepreneurship is an important factor needed to make a start-up or business
innovative and successful. It has been assessed that firm is required to attain sustainable business
practices and offering new products and services while considering societal concerns. It also
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helps in conducting marketing research which assists the organization to attain knowledge about
the economy, consumer patterns, and trends of change and competitor information.
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REFERENCES
Books and Journals
Allee, V., 2012. The knowledge evolution. Routledge.
Bläsing and et.al., 2012. Neurocognitive control in dance perception and performance. Acta
psychologica, 139(2), pp.300-308.
Chen, D.L. and Mooney, R.J., 2011, August. Learning to interpret natural language navigation
instructions from observations. In AAAI (Vol. 2, pp. 1-2).
Flood, R.L., 2010. The relationship of ‘systems thinking’to action research. Systemic Practice
and Action Research, 23(4), pp.269-284.
Goodale, M. and Milner, D., 2013. Sight unseen: An exploration of conscious and unconscious
vision. OUP Oxford.
Liedtka, J. and Ogilvie, T., 2011. Designing for growth. New York.
McNiff, J., 2013. Action research: Principles and practice. Routledge.
Nisbet, M.C., 2010. Knowledge into action. Doing news framing analysis: Empirical and
theoretical perspectives, 43.
Parrett, W.H. and Budge, K.M., 2012. Turning high-poverty schools into high-performing
schools. ASCD.
Quirke, B., 2017. Making the connections: using internal communication to turn strategy into
action. Routledge.
Westerman, G., Bonnet, D. and McAfee, A., 2014. Leading digital: Turning technology into
business transformation. Harvard Business Press.
Wilby and et.al., 2010. Evidence needed to manage freshwater ecosystems in a changing climate:
turning adaptation principles into practice. Science of the Total Environment, 408(19),
pp.4150-4164.
Online:
Forms of Business Ownership. 2018. [Online]. Accessed through:
<https://www.allbusiness.com/forms-of-business-ownership-674-1.html>.
What Skills Are Needed to Start a Business?. 2018. [Online]. Accessed through:
<http://smallbusiness.chron.com/skills-needed-start-business-22.html>.
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