Launching a New Venture

This document discusses the process of launching a new venture, including identifying target markets, competitive analysis, required resources, skills and capabilities, and promotional activities. The case study focuses on The Food Dude, a food truck business in the UK.

Launching a New Venture

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Investigate and explain a new venture identifying specific target markets and undertaking
competitive analysis...............................................................................................................4
P2 Particular tangible & intangible resources which would needed for launching a new
venture....................................................................................................................................7
TASK 2............................................................................................................................................9
P4 Skills as well as capabilities needed in order to launch new venture................................9
TASK 3..........................................................................................................................................10
P5 Various promotional activities used byan entrepreneur while launching new Cafe at the
marketplace...........................................................................................................................10
P6 Develop an appropriate promotional activities plan for both launch and pre-launch.....10
TASK 4..........................................................................................................................................11
P7 Monthly cash budget for the pre-launch phase...............................................................11
P8 Applicable legal form for the venture.............................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Introducing a venture at marketplace is acknowledged as one of the most important in
every sector as it brings something new within the society. Launching a venture at marketplace
could be seen as the toughest thing as it makes it difficult for the individual to arrange required
fund for the same and execute all the things as per the planning. In order to do so in effective
manner individuals are required to excel over certain set of skills that ultimately provides them
support in grabbing attention of the customers and attain their predetermined goals and
objectives in rapid manner (Welsh and et. al ., 2014). In this project, The Food Dude, a food
truck has been chosen as the main company which going to introduce in UK. The respective food
truck would offer burgers, burritos, sandwiches, tacos, chips, rolls, pasta and many others. Along
with this, the menu of this food truck would include gluten free items too for the people who are
conscious about the health status. Also, The Food Dude would also take all sorts of safety
measures by considering scenario of Covid-19. It has been seen that due to Covid-19, people are
not able to go outside and enjoy their favorite as they are concerned about their safety. The Food
Dude would provide solution to the customers by offering them healthy, tasty and safe food
items in their own localize area.
The respective report would include detailed knowledge on the new venture and its target
market segmentation. Also, the information would include details on tangible as well as
intangible resources which contribute in the establishment of the business. In addition to this,
several skills and capabilities of the entrepreneurs would be discussed. Moreover, budget would
be developed on the overall functionality of entity with which entrepreneur can easily perform
their work in rightful manner.
TASK 1
P1 Investigate and explain a new venture identifying specific target markets and undertaking
competitive analysis
WHY CONDUCT
THIS ANALYSIS?
Write down the question you are trying to answer or the goal of this analysis.
The Food Dude Bell & Brisket You Doughnut Pizza Pilgrims
PROFIL
E
OVERVIE
W
The Food Dude is the
food truck business which
The respective
food truck offers
You Doughnut
basically offers
This food truck
is owned by two

would going to be open in
UK which would offer
food items such as tacos,
sandwiches, rolls, burgers
and many more fast food
items to its customers. All
the food preparing
process as well as
delivery would be
performed by taking
safety measures
associated with the
Covid-19. Along with
this, offerings of this food
truck would also include
gluten free items for the
health conscious
customers. The idea of
introducing food truck
would be highly
appreciated by the
individuals as it is
supporting people in
enjoying tasty food along
with the safety measure of
the Covid-19.
home cure salt
beef load into rye
bread with the
topping of
radish, beetroot,
khimchi and
honey gherkins.
high quality of
Doughnut t the
customers with
the handmade
bite sized
doughnuts
topped with
different sauces.
brothers who
have fitted a self
built Pizza oven
in the boot.
COMPETIT
IVE
ADVANTA
GE
What value
do you offer
customers?
Tasty food along with the
safety would be
determined as the main
value for the customers.
Home salted beef High quality of
Doughnut
Vast range of
Pizza
MARKE
TING
PROFIL
E
TARGET
MARKET
UK localise people Stable Street,
London
Stable Street,
London
Dean Street,
London
MARKETIN
G
Social media marketing Direct marketing Social media Direct marketing

STRATEGI
ES
PRODU
CT
PROFIL
E
PRODUCTS
&
SERVICES
Tacos, sandwiches, rolls,
burgers and many more
fast food items
decent salt beef
bagel
Doughnut, with
their handmade,
bite-sized
doughnuts,
Huge variety in
Pizzas
PRICING &
COSTS
Affordable prices Value pricing Affordable prices Premium pricing
DISTRIBUT
ION
CHANNELS
Direct Direct Direct Direct
SWOT
ANALY
SIS
Do this for your company and for your competitors. Your strengths should support your
opportunities and contribute to what you define as your competitive advantage.
STRENGTHS Innovation, high
quality food
item, safety
measures
High quality
beef, enrich taste
Variety of
doughnut
Deal in variety of
Pizzas
WEAKNESSES Marketing The product
portfolio of this
company is very
narrow
Focusing only on
one segment
Health conscious
people
OPPORTUNITIES Could expand its
scale of
operations
Widen product
portfolio
It can gain into
other segments
such as
sandwiches,
pizzas, burgers
etc.
Could to go for
other food items
and also
introduce gluten
free food items.
THREATS Competitors Lack of
manpower
Other entities
dealing into
doughnut.
Competition
P2 Particular tangible & intangible resources which would needed for launching a new venture
In order to launch a new venture it is very essential to have various tangible as well as
intangible resources which are going to be discussed as follows:
Tangible resources –It refers to the resources which can easily be touched and have
physical presence like land, building, machinery, table, chairs and many others (Podoynitsyna

and et. al ., 2013). In the present context of The Food Dude, tangible resources assist in order to
attract large number of people towards them. In reference to the tangible resources detail
explanation is below:
 Financial resources – It define as one of the most essential part of a business entity with
the help of which The Food Dude can easily perform all their business operations in a
systematic and well defined manner.
 Organisational resources –Another tangible resource includes the structure resources of
organisation with the help of which a whole functionality of the new venture will be
conducted effectively (Coleman, Dzansi and Rambe, 2015).
 Physical resources – It consist of all the physical resources such as table, chair,
machines, staff members, utensils, cooking equipment and many more (Klotz and et. al.,
2014).
 Human resources – Another most essential resources is human resource which becomes
one of the most important and essential part of a business venture. In the present context
of The Food Dude, these human resources plays very significant role in order to
accomplish their goals and objectives in an effective and appropriate manner (Fernhaber
and Li, 2013).
Intangible resources–Apart from tangible resources each and every resources comes to
intangible resources which usually does not comes under physical resources like patent,
trademarks, copyright, goodwill, brand value, working environment, surroundings, services,
product quality and many other elements which affect the overall performance of the company in
both positive and negative way (Kariv, 2013).
P3 Develop a credible proposal in order to launch a new venture
For every organization that are going to launch a new business venture, it is necessary for
them to design an effective and attractive business proposal which are going to be discussed
some elements mentioned below:-
Executive summary –The Food Dude is going to establish within the marketplace of
United Kingdom. The food truck is going to be offer high quality food products
to their customers. Individual at the present environment of COVID19, prefer high quality
food products at their door steps for which a food truck is going to be launch named as The Food
Dude. These food trucks provide high quality food items and consider all the safety measures

related to COVID19 and deliver food items in some specific locations (Lim, Busenitz and
Chidambaram, 2013).
Company description – The Food Dude is a new business venture launch at the
marketplace of London, UK. They offer high quality food to their customers in
the situation of COVID19 at their door steps by roaming in a particular
location. They produce all the food measures by considering the current
pandemic situation where it is essential to maintain hygiene level while
making food items (Scarborough, 2016).
Competition analysis –New business venture introduced with the name The Food Dude
where managers examine the whole market situation in advance and analysis their target
markets. Along with this, they plan all the marketing strategies so that they can easily produce
high quality products and services with the help of which they can raise their profit margins and
goodwill at the market. Therefore, managers of the food truck decide tl conduct SWOT as well
as Pestle analysis in order to examine both internal as well as external market situation.
Price strategy – In the present context of The Food Truck, managers of the food truck
conduct examination about the whole marketplace with the help of which they decide their price
in order to launch a new business venture at the marketplace of UK. Once the market will be
analysed in an effective manner, it has been decided by the owner that they adopt Premium
pricing strategy (Nagy and et. al., 2012).
TASK 2
P4 Skills as well as capabilities needed in order to launch new venture
It is very essential to have some skills and capabilities when they launch a new product in order
to effectively perform all the business operations in a smooth and well defined manner (Bridge
and Hegarty, 2013). In the present context of The Food Dude, some of the skills and capabilities
which are needed in the owner are going to be discussed as follows:
Skills
 Marketing skills – It is necessary to have marketing skills while introducing a new
business venture so they can attract large number of customers towards them. Therefore it
is necessary for the owner of The Food Dude that they must have marketing skills.

Reason behind this is that it assists in developing attractive business idea; examine the
behaviour of customers, positioning products as well as services and many more.
 Public speaking skills–Another essential skill is public speaking as it becomes essential
for the owner to interact with their customers related to their offerings so they can
examine their needs and wants (Hsiao, 2013). In the present context of The Food Dude, it
becomes necessary for the management team to have public speaking skills.
Capabilities
 Team developing capabilities – In order to manage regular basis functions in an
appropriate way it is very necessary to have effective team building skills as with the help
of this they can conduct each and every activity in an effective and appropriate manner.
 Risk taking capabilities. It is another essential capability which is required in a person
where they launch new business venture at the marketplace. It is said that because taking
risk at the competitive marketplace it becomes very crucial and difficult to maintain
sustainability at the competitive marketplace for long duration of time frame.
TASK 3
P5 Various promotional activities used byan entrepreneur while launching new Cafe at the
marketplace.
While introducing a new business venture it becomes essential for conducting the
promotional functionality so that users will be attracted towards the business entity (Kuratko and
Hornsby, 2017). It has also been said that there are different sort of channels in order to promote
The Food Dude which are going to be discussed as follows:
 Social media contests – It is said that almost each and every person in the present
environment use social media platforms which includes Facebook, Instagram, YouTube
and many more (Hmieleski, Cole and Baron, 2012). Therefore, social media help the
owner of The Food Dude in order to reach large number of customers towards them
which is cost as well as time effective in order to create awareness about the products and
services.
 Newspaper & magazines – Apart from digital platform, there are some traditional
approaches with the help of which business ventures can easily approach people towards
them. In reference to The Food Dude, it has been said that owner consider this approach

quite expensive and consumes lot of time in order to create awareness about the products
and services at the competitive marketplace.
It has been analysed that owner of The Food Dude, adopt social media platforms in order
to promote their products and services as it creates awareness within limited time period at large
scale. This will help them in order to conduct all the business functions in more appropriate and
effective manner (Burns, 2017).
P6 Develop an appropriate promotional activities plan for both launch and pre-launch
Promotion plays a key role in creating a word about the brand and its offerings within the
market place. Promotional activities are important for every organisation to establish a positive
image in front of the customers (Mullins, 2017). In this regard, promotional activities are
especially important for a new venture. The Food Dude will make use of pre launch and launch
promotional activities to effectively appeal to the public at large. These are discussed in a
detailed manner as follows:-
Pre-launch promotion: These can be defined as the activities that are conducted to promote the
venture and its activities before the launch. The pre launch promotional activities of The Food
Dude are described as follows:- Advertisement: This is one of the key activities that provide assistance to a venture in
establishing its distinct image in market place by making use of pamphlet, leaflet,
catalogue, e-brochures, etc. Advertising will allow The Food Dude to create awareness
among the public about the food truck business and its wide varieties of offerings for the
customers.
 Social media: This can be defined as the usage of internet driven technology by the
company in order to transmit information to a large base of audience in a very short span
of time. This will assist The Food Dude to attract the attention of people towards the
innovative concept of providing food on the go.
Launch promotion: These activities are carried out by an organisation at the time of launch of a
venture. The launch promotional activity of The Food Dude is described as follows:-
 Sales Promotion: This encompasses promotional activities such as provision of loyalty
benefits, discount, coupon, etc. The Food Dude will provide loyalty incentives and
discounts to its regular customers to elevate the sales in rapid course of time. This will

give a good start to the upcoming food truck business and enhance its profits by a fair
margin.
TASK 4
P7 Monthly cash budget for the pre-launch phase
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 November 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

Augus
t
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 (Chrisman and et. al ., 2012). Thus, pre and post launch cash budget of both
is compared and decision seems appropriate.

P8 Applicable legal form for the venture
When an individual person decides to introduce a new venture at the marketplace it becomes
essential to adopt effective and efficient legal structure. It has also been said that there are
different types of legal structure which includes sole proprietorship, partnership, co-operatives,
non-profit and corporations (Barringer, 2015). In the present context of The Food Dude, owner
of the business venture adopt sole proprietorship which are going to be discussed as follows :-
Sole Proprietorship: It is the sole proprietorship also known as individual
entrepreneurship or sole trader. This type of a business entity mainly run and operated by a
single person. It includes strength, opportunity, weakness as well as threat which are as follows:-
Strength Weakness
 Freedom of owner
 Innovative products and services
 No legal limitations.
 Unlimited liability
 Bearing all the loss by own
Opportunity Threats
 Can be established easily
 Limited government regulation
 Substitute of the products
 Can be closed at any time
CONCLUSION
On the basis of above specified report, it has been analysed that introduction of the new
venture is completely a new thing which requires huge planning. It has been later determined that
before introducing products and services individuals are initially requires to conduct industrial
analysis so that they can easily determine best strategy which would bring success to them
effectively. This can be effective done with the usage of porter’s five force analysis which aware
about the overall competitiveness within the industry in an appropriate manner. Along with this
it has been determined that marketing skills, public speaking skills, team developing capabilities,
risk taking capabilities are important skills that is required to be owned by the individuals so that
they can easily manage their business at marketplace and grab attention of the maximum number
of customers in rightful manner.

REFERENCES
Books and journals:
Barringer, B. R., 2015. Entrepreneurship: Successfully launching new ventures. Pearson
Education India.
Bridge, S. and Hegarty, C., 2013. Beyond the Business Plan: 10 Principles for New Venture
Explorers. Springer.
Burns, P., 2017. New venture creation: A framework for entrepreneurial start-ups. Palgrave.
Chrisman, J. J.,and et.al ., 2012. Counseling assistance, entrepreneurship education, and new
venture performance. Journal of Entrepreneurship and Public Policy. 1(1). pp.63-83.
Coleman, W.J., Dzansi, D.Y. and Rambe, P., 2015. Enhancing new venture creation success in
South Africa: A project management perspective.
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.
Hmieleski, K. M., Cole, M. S. and Baron, R. A., 2012. Shared authentic leadership and new
venture performance. Journal of Management. 38(5). pp.1476-1499.
Hsiao, A., 2013. Developing an entrepreneurial mindset in engineering students. Proceedings of
the Canadian Engineering Education Association (CEEA).
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
future research. Journal of management. 40(1). pp.226-255.
Kuratko, D. F. and Hornsby, J. S., 2017. New venture management: The entrepreneur’s
roadmap. Routledge.
Lim, J. Y. K., Busenitz, L. W. and Chidambaram, L., 2013. New venture teams and the quality
of business opportunities identified: Faultlines between subgroups of founders and
investors. Entrepreneurship Theory and Practice. 37(1). pp.47-67.
Mullins, J., 2017. The New Business Road Test: What entrepreneurs and investors should do
before launching a lean start-up. Pearson UK.
Nagy, B. G., and et.al ., 2012. The influence of entrepreneurs’ credentials and impression
management behaviors on perceptions of new venture legitimacy. Entrepreneurship
Theory and Practice. 36(5). pp.941-965.
Podoynitsyna, K., and et.al ., 2013. Improving new technology venture performance under direct
and indirect network externality conditions. Journal of Business Venturing. 28(2).
pp.195-210.
Scarborough, N. M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
Welsh, D. H., and et.al ., 2014. Japanese women entrepreneurs: implications for family firms.
Journal of Small Business Management. 52(2). pp.286-305.