Skills and Capabilities for Launching a New Venture

This article discusses the skills and capabilities required to launch a new venture, specifically focusing on starting a coffee shop. It covers the importance of financial knowledge, selecting proper utensils and packaging, improving pricing strategy, time management, communication, and networking.

Launching a new business venture

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
P1 Investigate a new venture classifying specific target markets as well as undertaking
competitive analysis...............................................................................................................3
P2 Determine tangible & intangible resources that are needed for launch of a new venture.5
P3 Produce credible proposal in order to launch a new venture............................................6
TASK 2............................................................................................................................................7
P4 Assess skills and capabilities required to launch a new venture and how they are needed7
TASK 3............................................................................................................................................8
P5 Explain various promotional activities that provide support to launch & justify their
choice......................................................................................................................................8
P6 Develop a proper promotional activity plan for both launch and pre-launch...................9
TASK 4............................................................................................................................................9
P7 Produce an itemised monthly cash budget for pre-launch phase of venture and the first 12–
18 months following launch...................................................................................................9
P8 Suggest a proper legal form for venture stating why it has been chosen..........................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
In present time, the individual person wants to start their own organisation in any sector. For
that, it is necessary to conduct appropriate research in order to assess suitable industry in which
their organisation survives for longer period of time. The new organisation is formed along with
the plan as well as expectation through which financial gain follow. The investigator focuses on
using time and resources in order to develop and marketing innovative services in order to start a
new business. In this report, the coffee shop as a new venture named as Beans coffee Cafe is
going to start in UK market. They provide herbal and organic coffee to its user in order to satisfy
them. In this report, there is an explanation regarding new venture assessing specific target
market and also focus on achieving competitive edge. In addition to this, they also provide
description regarding tangible or intangible resource that is helpful in produce credible proposal
in order to launch new business venture. It is necessary to analyses skill in order to start a new
business. Apart from this, there are different kinds of promotional activity which is used for
promoting the business. It is necessary to produce cash budget for pre-launch phase related to
venture and a legal form that is required for venture is discussed. Their main purpose is to satisfy
need and demands of user in order to increase sales margin in future period of time (André, Cho
and Laine, 2018). The business venture definition is a new business that is formed with a plan
and expectation that financial gain will follow. After the need is determined, an investor
or small-business person with the time and resources to develop and market the new service or
product can start a business venture.
TASK 1
P1 Investigate a new venture classifying specific target markets as well as undertaking
competitive analysis.
Beans coffee Cafe is a new venture of food as well as beverages sector that is going to
introduce their organisation in UK. They provide different type of coffee such as flavoured
coffee, organic and herbal coffee, hot chocolate and so on. There are different kind of services
which attract user in respect of cafe such as they establish or build little library for user who are
book lover, they are also kept different kind of novel and also they open different play area like
indoor games for its children and so on. In addition to this, Beans coffee Cafe also focus is on
organising some different kind of program that is connected to singing and poetry that is helpful

in retaining customer for a longer period of time. They also conduct research for identifying taste
and preferences of user that is necessary in retaining them for a longer time period (Watson,
Stuetzer and Zolin, 2017).
Target market Beans coffee cafe focuses on providing coffee according to need of user.
The management team of this cafe focuses on targeting youth as its user. In context of UK, the
culture of nation agrees in enjoying life, in context with this, the youth must be targeted for
accomplishing goals as well as objective in timely manner.
Competitive analysis it is determined as an assessment of marketing plan for assessing
uniqueness of goods and services and also focuses competitors in order to understand their
strategy which will be helpful in conducting different task in proper way (Aslam and Hasnu,
2016).
Porter five forces model is appropriate tool for every sector to assess competition level
for new business venture during particular phase of time period. In reference of Bean’s Coffee
cafe, they adopt this model for assessing current position in order to start their business first.
Therefore, this model is depending upon five factors these are given below:
Competitive rivalry of Beans Coffee Cafe is determined as high and there is different
popular Cafe in UK that provides unique coffee to its customers for satisfying them. Thus, it is
necessary for Beans Coffee cafe to provide superior quality coffee to its user for achieving target
market.
Bargaining power of buyer in context of cafe, bargaining power of user is high as it is
determined as a new cafe and as per demand of user, price of goods may vary. Therefore, the
goods offered by Beans Coffee cafe is determined as unique but still its user prefers to select
already prevailed cafe. The management team of Cafe should increase quality level for achieving
target customer.
Bargaining power of suppliers is determined as a high for this kind of cafe. Hence, it is
new in market and there is different kind of suppliers for specific coffee beans for serving. In
context of this, the management focuses on maintaining positive relationship along with supplier
for bye for purchase raw beans during the period of time (Villani, Linder and Grimaldi, 2018).
Threat of substitute herein, threat of substitute of goods is determined as a moderate as
Bean coffee is determined as a unique for user that helps in achieving competitive edge over

rivalries in the market. As per uniqueness in their flavour of coffee, the substitute goods will take
time in handling.
Threat of new entrants the threat of entrance of new firm is determined as a low as it is
tough for new entry to increase their brand name in this kind of sector. According to this, the
food sector needed research to establish their goods and services in new market. Therefore, the
threat of entry of new firm named as Beans coffee cafe is low.
P2 Determine tangible & intangible resources that are needed for launch of a new venture.
There are different kinds of tangible as well as intangible resources needed for launching a
new business venture named as Beans coffee. There are different types of tangible and intangible
resources required for start a coffee shop. The tangible resources include coffee machine,
finance, employees, and premises as well as so on (Burns, 2017). Intangible resources include
trademark, patents, domain name and many more that is going to be mentioned below:
Tangible resources:
Coffee machine: Coffee machine is determined as a tangible resource which is required
to make a coffee for its user. Therefore, for starting a new business venture which is related to
coffee so it is necessary to have coffee machine in order to provide herbal and organic coffee to
its user according to their need.
Finance is also need for starting a new business venture. Without finance, it is not
possible for individual person to start a new business during particular phase of time period.
Thus, it is analysed that finance is required for start a coffee shop that provide herbal & organic
coffee to its user (Stayton and Mangematin, 2019).
Employees are determined as other tangible resources which are needed for making
superior quality coffee for its user. Their main purpose is to attract large number of customer
towards services provided by firm.
Other Resources there are different kind of resources such as coffee, sugar, milk that is
needed for make a coffee for its customer in order to satisfy them. In addition to this, the new
business venture named as bean coffee provides herbal and organic coffee for satisfying its user.
Physical resources: For undertaking new business, there need to be presence of some
necessary physical resources such as building, premises, tools, raw material and other such
resources. These resources are required for performing the routine activities of business.

Human resources: In new business venture, there is requirement of employees for
performing different activities of business. It depends over size of business that how many
individuals will be required. At initial level, generally less number of employees are hired for
undertaking different activities of organization.
Essential tools & equipments: It is monitored that some tools, machineries are required
to install for starting as well as running business in an efficient manner. In present scenario, there
will be requirement of utensils, truck, electronic appliances, cooking equipment and more for
running business in successful manner.
Intangible resources:
Trade name: It offers capability to adopt name & character in relation with particular
good. Therefore, it include phrase, symbol, graphics that is needed to provide effective services
to its user in order to satisfy them. It is necessary to have trademark in order to build good brand
image and reputation of start-up in front of customer at marketplace.
Patent it provides the capability to individual person who discover something new and
start a new business for providing a better services to its user during particular phase of time
period. Thus, every start-up takes patent in order to offer better facilities to customer in order to
satisfy them.
Domain name is determined as an identification that is easily remember by customer
during particular phase of time period. It helps in attracting large number of user towards
services provided by firm.
There are various types of tangible as well as intangible resources required to make
superior quality coffee for its user that helps in retaining them for longer period of time.
P3 Produce credible proposal in order to launch a new venture.
The individual person can become a superior entrepreneur who possesses necessary skill and
competence to make appropriate decisions as well as plan for betterment related to new business
venture. For this process, it is necessary to organised survey & research regarding taste of user
that assist in maintaining better policy in order to attract large number of user and influence
buying behaviour of ample of user (Cosenz and Noto, 2018). Therefore, they formulate a
credible proposal in order to launch a new business venture that is going to be mentioned
below:

Executive summary the Beans Coffee cafe is determined as a new business that is
established with objective of providing superior quality coffee that attracts large number of user
around the world. It involved herbal and organic coffee, flavoured coffee, chocolate coffee and
many more.
Company description the entrepreneur decided to take entry into food and beverages sector
by starting new venture named as coffee shop in order to provide different types of variety
coffees to its user in UK. Their primary purpose is to capture larger share of market in UK and
increase higher profit in future period of time (Ratten, Ferreira and Fernandes, 2016).
Market analysis the environment of organisation is complex as well as contingent that
signifies internal & external element. It imposes positive and negative effect on operations of
company that needed to organise SWOT and PESTEL analysis for assessing such kind of
influencing factor that helps in taking appropriate decisions during the period of time. Before
entering in any new business, it is essential to first analyze the market. It provides detailed
information regarding needs and requirements of target customers so that company can meet
with their requirements in an efficient manner. Further, market analysis is also helpful in
preparing complete market campaign by which organization can promote its product
successfully. By this way, entity also gets to know about prevailing level of competition in
market place. The organisation will undertake a lot of models such as Porter’s five forces,
SWOT analysis and more which will help in gaining understanding about the market. With this,
company will be able to prepare appropriate marketing strategies for further betterment.
Financial protection resources are an important or significant factor that provides support
to new business in accomplishing growth & success in short period of time. Thus, it is necessary
for Beans Coffee Cafe to have sufficient fund in order to perform functions of business
organisation.
Benchmarking before launching activities of organisation, it is significant to set effective
benchmarks for employers for bringing motivation in order to fulfil commitment. This
benchmark assists in increasing satisfaction of user during particular phase of time period.

TASK 2
P4 Assess skills and capabilities required to launch a new venture and how they are needed
There are different kind of skills and capabilities required to start a new coffee shop that is
going to be mentioned below:
Ability to find proper accountant they offer timely financial advice to new business
venture for smooth running of business during particular phase of time period. Therefore, it is
necessary for new venture to have a knowledge regarding finance in order to maintain budget to
provide effective services to its user that help in increasing sales and profit margin in future
period of time.
Capability to select proper utensil, crockery as well as packaging it is necessary for
individual person to have a capability to select proper utensils in order to attract large number of
user during the period of time.
The ability to improve profitable pricing strategy it is necessary for individual person to
have a skill of improving profitable strategy related to price that help in increasing profit margin
in future period of time. In addition to this, there is different kind of skill needed to open a coffee
shop during particular phase of time period (Ilonen, Heinonen and Stenholm, 2018).
Time management it is necessary for entrepreneur to have ability to manage time that is
helpful in providing services to its user in timely manner. It is important to manage time for
providing timely delivery of coffee to its customer that helps in increasing their experience level
in future period of time.
Communication: Crisp as well as concise communication helps in attracting large number
of user towards services provided by firm. Effective communication helps in retain loyal or
trustworthy customer for a longer period of time.
Networking: it is necessary for individual person to expand their network for
communicating directly with its customer and convey right messages to them related to provide
effective services to them during particular phase of time period.
Thus, there are various types of skills and capabilities required to start a new coffee shop. It
is important to consider taste and preferences of user in order to provide services according to
their need during particular phase of time period.

TASK 3
P5 Explain various promotional activities that provide support to launch & justify their choice.
Promotions refer to the entire set of activities, which communicate the product, brand or
service to the user. The idea is to make people aware, attract and induce to buy the product, in
preference over others. Sales promotion is a part of the overall promotion effort. There are
different kinds of promotional activities that is adopted by new business venture in order to
promote their sales that is going to be mentioned below:
Advertisement is considered as a paid form of non-personal presentation of product and
services by identified sponsor. It is necessary for new business venture to advertise herbal and
organise coffee in order to increase awareness of user towards services provided by firm. And, it
is necessary to promote product in front of customer at marketplace for. Thus, the Beans Coffee
cafe focuses on providing herbal and organic coffee to its user which is preferable by user who is
conscious towards health during particular phase of time period. The advertisement is
determined as a promotional activity which is adopted by new business venture in order to
promote their services that helps in increasing sales in future period of time.
Sales promotion is the other promotional activity which is adopted by new venture in
order to promote their goods and their services in front of customer at marketplace. They also
focus on providing discount and combo offer to its user in order to attract then. And also they
display their herbal & organic coffee which is healthy for customer during particular phase of
time period (Matsheke and Dhurup, 2017).
Direct marketing is the other promotional activity which is adopted by new business
venture in order to provide superior quality coffee to its user. Their main focus is to interact
directly with its user for satisfying their needs during particular phase of time period.
Publicity is another promotional activity which is designed to improve positive attitude in
respect of organisation. Their main focus is to build a superior image and reputation of company
in front of customer at marketplace.
Therefore, there different kind of promotional activities that is adopted by organisation in
order to attract large number of customer and retain them for a longer period of time. It is also

helpful in collecting data and information regarding need and want of customer that help in
retaining them for a longer period of time.
P6 Develop a proper promotional activity plan for both launch and pre-launch.
Promotions refer to the entire set of activities, which communicate the product, brand or
service to the user. The idea is to make people aware, attract and induce to buy the product, in
preference over others. Sales promotion is a part of the overall promotion effort. Promotional
activity plan is also determined as a marketing plan that signifies written document which
involve different kind of strategy for promoting products and services of company include
vision, mission, and strategy for achieving goal and objective in timely manner. Thus, the
marketing plan is significant for chosen cafe for satisfying need and want of user. Thus,
marketing plan is prepared in related to Beans Coffee Cafe is given below:
Offering: there are various types of coffee like herbal and organic coffee, flavoured coffee
is provided to its user for satisfying them. They also provide discount and combo offer to them in
order to satisfy their need.
Mission the mission of company is to provide superior quality coffee to its user for
satisfying them.
Vision: the vision of company to achieve good position around the world.
The objective of organisation is to enhance profit margin and increase base of customer in
upcoming months.
Target market it is significant to analyse target market for company for marketing product
and services during the period of time. They adopt STP analysis which is given below:
Segmentation includes dividing marketing into different categories. The company
categorised market as per their age. Their primal aim is to segment overall marketing in small
parts according to their age.
Targeting the main purpose of Beans Coffee cafe is to target ample of user for organising
various activities in proper manner. The primary purpose of company is to target large number of
customers that assists in enhancing their experience level in future time period.
Positioning they also use different kind of promotional activities such as advertisement,
sales promotion for attracting ample of user while offering services.
There is a requirement of making an appropriate plan which is given below:

PARTICULAR
S
I II III IV V
Start-Up Capital 5400 11000 12450 13030 17140
Investment 4300 7800 5500 4465 8636
TOTAL 9700 18800 17950 17495 25776
MARKETING
OUTLAY
Marketing 6500 7800 6900 12700 13660
Publicity 8800 12100 9900 10500 12200
TOTAL 15300 19900 16800 23200 25860
Monitoring performance measure and indicator key performance indicator is important
to assess progressive method connected to marketing and accomplishing goal in pre-decided
period of time. Therefore, the cafe adopt KPI for assessing level of satisfaction of user while
providing services that assists in accomplishing profit in future time period.
TASK 4
P7 Produce an itemised monthly cash budget for pre-launch phase of venture and the first 12–18
months following launch.
A cash budget is an estimation of the cash flows of a business over a specific period of
time. This could be for a weekly, monthly, quarterly, or annual budget. This budget is used to
assess whether the entity has sufficient cash to continue operating over the given time frame. The
monthly cash budget prepared for pre-launching a new business is going to be mentioned
below:
Pre-
launch
budget

Activit
ies
Janua
ry
Febr
uary
Mar
ch April May
J
u
n
e
Jul
y
Aug
ust
Se
pte
mb
er
Oct
ober
Nov
emb
er
Dec
emb
er Total
Receip
ts:
Total
amoun
t of
loan 2000
200
0
180
0 1550
175
0
1
8
5
0
20
00
145
0
50
0
200
0
140
0
220
0 20500
Availa
ble
cash 1000 800
100
0 1050
120
0
7
0
0
89
0 760
95
0 600 550
100
0 10500
Total
receipt
s 3000
280
0
280
0 2600
295
0
2
5
5
0
28
90
221
0
14
50
260
0
195
0
320
0 31000
Payme
nts
Legal
charge
s 250 200 300 150 200
2
5
0
20
0 150
10
0 250 150 100 2300
Promo
tion
expens
es 500 300 350 250 350
4
0
0
45
0 200
25
0 350 300 150 3850
Rental
charge
s 300 300 300 300 300
3
0
0
30
0 300
30
0 300 300 300 3600

Equip
ment’s
purcha
se cost 1500 - - - - - - - - - - - 1500
Transp
ortatio
n cost 200 - - - - - - - - - - - 200
Other
charge
s 50 40 20 30 50
4
0 60 15 20 40 50 60 475
0
Total
payme
nts 2800 840 970 730 900
9
9
0
10
10 665
67
0 940 800 610 11925
Net
cash
availab
le 200
196
0
183
0 1870
205
0
1
5
6
0
18
80
154
5
78
0
166
0
115
0
259
0 19075
Post
laun
ch
bud
get
Acti
vitie
s January
Febr
uary
Ma
rch
A
pri
l
M
a
y
Ju
ne
J
ul
y
Au
gus
t
Sept
emb
er
Oc
tob
er
No
ve
mb
er
Dec
emb
er
To
tal
Sale
s
1500 155
0
16
00
15
00
1
8
20
00
1
4
10
00
120
0
14
00
15
60
250
0
19
06

5
0
0
0 0
Fun
ds
avail
able 200 300
50
0
25
0
3
5
0
15
0
6
0
0
50
0 450
21
0
30
0 350
41
60
Coll
ectio
n
from
debt
ors 500 600
80
0
50
0
3
5
0
12
0
1
8
0
32
0 140
16
0
25
0 210
41
30
0
Tota
l
recei
pts 2200
245
0
29
00
22
50
2
5
5
0
22
70
2
1
8
0
18
20
179
0
17
70
21
10
306
0
27
35
0
0
Pay
men
ts 0
Cost
of
raw
mate
rial 700 750
80
0
75
0
9
0
0
10
00
7
5
0
60
0 550
40
0
60
0
125
0
90
50
Wag
es 900 600
75
0
80
0
9
0
0
45
0
7
5
0
50
0 745
50
0
65
0 750
82
95
Pro
moti
100 120 15
0
10
0
9
0
80 8
5
50 60 90 10
0
50 10
75

onal
char
ges
Tele
pho
ne
char
ges 20 30 50 40
1
0 15
1
0 50 10 15 6 9
26
5
Rent
al
char
ges 300 300
30
0
30
0
3
0
0
30
0
3
0
0
30
0 300
30
0
30
0 300
36
00
Othe
r
cost 10 15 20 10 5 10
4
0 15 20 15 25 30
21
5
0
Tota
l
pay
men
ts 2030
181
5
20
70
20
00
2
2
0
5
18
55
1
9
3
5
15
15
168
5
13
20
16
81
238
9
22
50
0
Net
cash
avail
able 170 635
83
0
25
0
3
4
5
41
5
2
4
5
30
5 105
45
0
42
9 671
48
50
P8 Suggest a proper legal form for venture stating why it has been chosen.
There are various legal forms of organisation to run under is significant decision along with
implication for how organisation structures its assets as well as resources. There are various legal

forms of organisation prevailed to owner of entrepreneurial business (Mazzarol and Reboud,
2020). Thus, there are different forms of business organisation that focuses on increasing profit
margin of business organisation that is going to be mentioned below:
Sole proprietorship is the organisation that is managed by only one person. From a
perspective of law, the organisation as well as its owner is determined as same. Therefore, the
owner is determined as a responsible for their losses as well as debts and takes risk in order to
conduct different activities of business organisation in an appropriate manner.
Partnership in partnership, there are more than two partners jointly run their organisation.
They share profit & loss with one another in order to conduct different kind of activities in
proper manner.
Limited liability Company it is determined as a hybrid of corporation as well as
partnership. Herein, the owner is not accountable for debt of organisation.
Therefore, there are different legal forms of organisation, but Beans Coffee cafe is
determined as a sole proprietor business because herein, the individual person is the only
owner who starts a new business to provide herbal and organic coffee to its user in order to
satisfy their need (McGee and Peterson, 2019).
CONCLUSION
On the basis of above given report, it is assess that the new organisation is formed along
with the plan as well as expectation through which financial gain follow. The investigator
focuses on using time and resources in order to develop and marketing innovative services in
order to start a new business. This report, there is an explanation regarding new venture
assessing specific target market and also focus on achieving competitive edge. In addition to this,
they also provide description regarding tangible or intangible resource that is helpful in produce
credible proposal in order to launch new business venture. It is necessary to analyses skill in
order to start a new business. Apart from this, there are different kinds of promotional activity
which is used for promoting the business. It is necessary to produce cash budget for pre-launch
phase related to venture and a legal form that is required for venture is discussed.

REFERENCES
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