Launching New Ventures: Entrepreneurial Approach

This assignment delves into the world of entrepreneurship, focusing on the strategies and approaches involved in launching successful new ventures. It provides a framework for understanding the entrepreneurial process, examining key concepts such as business planning, market analysis, and funding. The assignment also highlights various resources available to aspiring entrepreneurs, guiding them through the steps of starting and growing their own businesses.

Unit: 28 – Launching a
New Venture
(Turning a Vision into
Action)

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Launching a new venture.................................................................................................1
P2. Resources required for launching a new venture.............................................................3
TASK 2............................................................................................................................................5
P3. Proposal for launching a new venture..............................................................................5
P4. Skills and capabilities required........................................................................................6
TASK 3............................................................................................................................................7
P5. Different promotional activities and channels.................................................................7
P6. Promotional activities plan...............................................................................................8
TASK 4............................................................................................................................................9
P7. Monthly cash budget........................................................................................................9
P8. Legal form for the venture.............................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Turning vision into actions refers to launching of a new venture which is at the stage of
idea into actual operational business unit and turning them into competitive advantage.
Trailfinders, a tour operator in UK is selected for studying launching of a new venture i.e. Travel
Agency acting as an agent for various travel organisations for selling of their products. In this
report, target market for the new venture is identified and competitive analysis is undertaken as
well. Also, all resources; both tangible and intangible required by organisation for launching new
business are determined. Along with that, various skills and capabilities that are required for
launching new enterprise are assessed and the way it can be developed or acquired is identified.
An appropriate promotional plan along with various activities related to same and channels are
developed for both launch and pre-launch of business. Monthly cash budget for pre-launch phase
of venture is made as well with deciding an appropriate legal form of new business.
TASK 1
P1. Launching a new venture
A business venture refers to small business or enterprises, invested by one or more
individuals or groups with anticipation of gaining financial gains. New venture is established
based on higher demand and having a lower supply of a certain product or services in market
(Barringer, 2015). Development of new venture includes various activities or operations for
creating a business which can be competitive in market. Establishing new business enterprise
improves social as well as economic development or growth of society through generating jobs
or employment opportunities and filling gaps in market. As new enterprises are incorporated,
they help society through globalisation, innovation and job creation.
Trailfinders have established a new venture of Travel Agency in tour and travel sector.
Company will provide specialized tailor-made tours worldwide along with travel packages for
different destinations in the UK. Company would sell various tour packages of different tour
operators.
As tourists and travellers have become more aware of environmental and social impact of
their travels, they have begun to find ways for giving back to society or community visited.
Social enterprises in Travel Agency provides a better opportunity for ensuring that tourists have
a wider social values. They contribute in the economic development by allotting with resources
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and opportunities to locals for strengthening and developing their communities. Through
network of travellers, long term income is provided to communities for their sustainability.
Target Market segmentation:
Travel market is very much diverse and far too large to reach effectively. Travel Agency
uses market segmentation for better understanding the needs of customers. Following are some
segmentation used by company for identifying the specific target market: Geographic segmentation: Customers are targeted based on factors like places, cultures,
etc. New market is identified by Travel Agency for targeting more opportunities for
expanding their regions or platforms. Cultural preferences, economic status and climatic
changes are considered for targeting market and customers. Example: Destinations are
identified for developing travel opportunity like attractive landscapes, etc. Demographic segmentation: In this, market is segmented according to age, race,
religion, gender, income, etc. Company targets segments based on all income groups.
They have different packages for various income groups. Example: Luxury tour package
for high income individuals. They mainly target younger segment of age group in
between 24 to 35 years as they are more enthusiastic and always ready for new
adventures. They easily get involved in various travel activities.
 Behavioural segmentation: Market is divided into smaller groups based on certain
behaviours of customers such as attitude, loyalty, etc (Scarborough, 2016). Travel
Agency uses this segmentation for identifying certain behavioural aspects of their
customers for developing various packages. Company considers their needs and desires
for planning travel for them.
Competitive analysis:
Porter's five forces analysis is done by Travel Agency for improving their competitive
advantages and long term profitability through developing strategies and analysing influences of
competitive forces within Travel industry.
Travel Agency Porter's Five Forces Analysis: Threat of new entrants: Threat of new entrants in market would be higher on Travel
agency established by Trailfinders. Pressure on Travel Agency would increase as new
entrants in travel sector would bring innovation and new methods. They put pressure on
company through providing new value propositions and lower pricing strategy for
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customers. They have to manage these challenges and safeguard itself by building
effective barriers. Supplier’s bargaining power: Travel Agency buys their several products and services
from various suppliers such as accommodation, transport, flight, etc. Suppliers can
reduce their margins for earning in market. Dominating supplier can use their negotiating
power to extract more prices from firm. Bargaining power of suppliers would be higher
on new venture and can reduce the overall profitability of travel agency. Bargaining power of buyers: Buyers in travel industry are tourists and travellers, they
are often very demanding. They want the best travel packages in minimum prices which
exerts pressure on Travel Agency’s profitability in long run (Allen, 2015). Bargaining
power of buyers is high as there are many competitor firms existing in the market that are
providing similar services and they would seek discounts and offers. Threat of substitutes: Threat of substitutes in Travel Agency is high. When customer’s
needs are met in different ways by new products or services launched by their
competitors, then profitability of organisation suffers. Example: competitors of new
established Travel agency would come up with new destinations or travel packages that
would attract their customers.
 Existing firm’s rivalry: Rivalry among existing firms is higher for new venture. Prices
and overall profitability of business venture would decrease if there is intense rivalry
among existing firms in travel industry. Travel agency operates in very high competitive
environment. This would affect long term profitability of company. For sustaining in the
competitive market, they have to differentiate their products and services (Coviello and
Tanev, 2017). They can compete better through building scale for measuring their
performance.
P2. Resources required for launching a new venture
There are certain resources required for establishing a new travel agency for its
successful operations and business. Entrepreneur has to develop a realistic business plan before
launching a new venture.
Below given are resources that are needed for establishing a new travel agency:
 Tangible resources: These are the resources or assets that are physical or can be touched
or seen such as land, buildings, etc. There are many tangible resources required by Travel
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Agency for launching of new business which is needed for smooth functioning of
company. Travel agency has to determine their key attractions in specific destination.
This includes historic sites, tourist attractions, beaches, sporting activities, etc. It also
includes transport and accommodation facilities to visitors in terms of their price,
location, type, etc.
 Intangible resources: It includes resources that are not physical or can't be touched or
seen. For example: goodwill, reputation and image of business venture, safety and
security, preparedness of company to receive tourists, uniqueness in experiences,
reputation of tourist place regarding hospitality, quality of services, value for money, etc.
Destination's culture like lifestyle, hospitality and welcoming of tourists can be intangible
resources for Travel Agency (Resources for launching business, 2018). Financial resources: For successful and better establishment of Travel Agency, it is
required to have an appropriate and calculated capital or finance invested in organisation.
Financial resources are needed for proper functioning of all operations and required at
every stage. Financial resources include:
◦ Investment or capital: Capital investment is vital at the stage of launching a new
venture. It is needed for investing in various fixed assets for company such as land,
buildings, arranging facilities, etc.
◦ Finances to develop and market tourism: Finance is needed for developing business
and for various marketing and promotional activities.
◦ Public capital: In case if owner has fewer funds to invest in business, they can
borrow money from others or public through various mediums like loans, shares and
debentures.
 Human resource: They are people who make workforce for an organisation or business
ventures. Travel Agency's human resources include skills, qualifications and experiences
of their staffs. Minimum qualification is needed for staffs i.e. of graduation or post-
graduation. Required skills for tour operators or travel agents are better communication
skills, negotiation, etc. They must have a good experience in handling travellers or
tourists as well as performing different functions of travel agency.
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TASK 2
P3. Proposal for launching a new venture
Following steps are proposed for launching a new travel agency by Trailfinders: Idea Generation
◦ Identify goals: It is the first stage where an entrepreneur or organisation launches a
new enterprise and comes up with determining ideas in order to establish a business
venture (Saxton, Wesley and Saxton, 2016). Specific goals are identified and defined
by Trailfinders. Before launching a new venture for travel agency, it is vital for
identifying the targets. Trailfinders have to identify their goals or target of successful
implementation of business. Travel agency's main activities are been determined for
like whether it would provide domestic or international tours.
◦ Shorten Planning process: Organisation has to cut down planning process in shorter
perspective rather than longer one. Trailfinders has to reduce planning process period
for shorter period of their new travel agency for better measuring of plan’s efficiency.
◦ Mind metrics (preparation phase): It is a stage where important aspect to measures
are put in place for planning process. In financial terms, new venture established by
Trailfinders considers their measures or standards which allow smooth running of
travel agency. Measure or target profits are made for testing its performance. Idea Modification
◦ Testing phase: Introduced idea of new venture is tested with certain focus groups for
determining the needs to be adjusted in travel agency by Trailfinders. Issues are
identified by testing idea of venture in external environment for positive as well as
negative outcomes. Travel agency is been initially launched through online sources
like websites, for knowing its success factors and any issues that could arise.
◦ Review: New venture idea is assessed with its surroundings to identify positive and
negative strength of travel agency. Reviews are taken from focus groups regarding
travel agency launched by Trailfinders to make any corrections or adjustments.
Feedback and opinions are taken from clients or travellers for improving travel
agency's tour products or services.
◦ Decide on actions: Trailfinders chooses certain actions based on analysis of their new
venture for travel agency to know whether it would offer the best value. Appropriate
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action is selected for proper launching of new venture (McKelvie, Wiklund and
Brattström, 2018). Feedback and opinions taken from customers or peers are analysed
for determining solutions for issues that have been raised during testing process of
travel agency. This help to establish travel agency appropriately without any faults. Idea Execution
◦ Start-up phase: It helps the entrepreneur to communicate idea to public. Trailfinders
launches Travel Agency after analysing positive and negative aspects of venture in
the business environment. It is a stage of establishing idea in newspaper, renting an
office for administrating, etc. (Kuratko and Hornsby, 2017). Newly established travel
agency is been promoted for effective publicity, through various sources, like
brochures, newspapers, websites, social media, etc. for more customers.
◦ Implement strategies (ongoing phase): After launching of new venture, strategies
derived are implemented. Trailfinders implement their planned strategies and actions
in their new travel agency for successful operations. Travel agency have to regularly
take steps or planning for improving their performance, in order to increase customer
satisfaction.
P4. Skills and capabilities required
There are certain skills that are required by an entrepreneur for establishing and
managing new business venture. Following are some skills and capabilities that are needed for
launching a travel agency: Must have a vision: Entrepreneur for launching a new travel agency has to be visionary.
Planning a better tour requires an inspired and motivated mind. They must take time to
understand what their clients needed by proper market research. This can be achieved
through better focus and determination towards goals (Burns, 2017). They can acquire
this skill through having a focussed and determined mind. They have to be more
experienced in this field for having a clear vision for what they are doing. Communication skills: For successful establishment of travel agency, entrepreneurs must
have excellent communication skills and abilities to influence and inspire people.
Through this, they can give customers the best value for money and satisfy their needs.
Communication skills can be acquired through proper training and practice. For
improving this skill, can partake in various activities which would help to develop
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communication skills. Entrepreneur can attend various workshops or seminars in context
to have effective communication with others. Sales capability: For launching new travel agency by Trailfinders, entrepreneur or
employees must have their own set of unique skills for creating sales opportunities.
Confidence in own ability is required for sales capability. It can be developed through
exercising role plays for practising the sales techniques. For being a travel agent must
have to negotiate and influence other for selling tour products. This can be acquired
through having a better experience in field of marketing. They can read different books or
articles from various scholars in order to develop sales capabilities.
 Leadership: It is the key skill required by entrepreneur for establishing a new venture.
Having better leadership skill can motivate and stimulate employees or teams for getting
the best out of them. Its leader’s job for ensuring employees is efficient (Wales, Wiklund
and McKelvie, 2015). This skill can be developed through proper training or mentoring
and by getting involved in various activities.
TASK 3
P5. Different promotional activities and channels
There are certain promotional activities and channels for supporting launch of new
venture by Trailfinders. These are as follows:
Promotional activities: Personal selling: It is the most effective and important form of promotion of new
venture. It includes face to face, oral or direct communication of products or services and
business of Travel agency of Trailfinders. Entrepreneur can promote their venture
through oral or mouth communication (Barrow, Barrow and Brown, 2015). It can be used
for selling various tour packages to travellers or tourists who arrives at their office and
directly purchase from them. It is more efficient as proper details can be provided to their
customers. Advertising: It is the means of mass communication of venture products or services and
their business. It is a promotional activity using various means of communication like
television, newspaper, social media, etc. for spreading information about travel agency.
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Its an attractive medium for promoting travel agency's product and services. They can
draw more customers by giving them details of their main attractions or destinations. Publicity: It can be extremely valuable for business for building awareness and
credibility of new venture as well as their products or services towards customers or
public. Trailfinders uses mass media for publicity of their new travel agency. Direct mail: Company sends direct mails to their segmented or targeted potential
customers for creating awareness and acceptance of new venture (BarNir, 2014).
Trailfinders mails e-brochures to target the clients for their new travel agency. They can
also get feedback or opinion from clients through mails.
 Short term sales promotions: Organisation markets or promotes their business venture as
well as products or services using coupons and contests. Coupons are provided for giving
benefits of discounts to attract customers towards new ventures. Travel agency provide
customers with attractive offers like discounts, etc for attracting them towards their
different products and services.
Channels of Promotion: Print media: It includes promotion of new venture using print media like newspaper,
magazines, brochures, pamphlets, etc. Trailfinders uses this to promote their new travel
agency's tour packages and services through advertising using newspapers and brochures.
This can be used for promoting their business as well as products or services to a large
audience. Television: It is an effective medium for promoting business to mass audience.
Organisation uses television for communicating to larger groups. They use celebrity
endorsement in advertisement for their business venture (Promotional channels, 2017). Online: It is the most cost effective and efficient medium for attracting youths. This
includes various channels:
◦ Websites: Organisation develops websites for their new venture for promoting its
business and different tour packages. Trailfinders provides details or information
about their travel agency, services, destinations covered, packages and prices.
◦ Social media: In more relaxed environment, companies can promote their products
and services using social media such as Facebook, twitter, etc. It is the network that
connects with potential customers throughout the world and offers different
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perspectives to them (Cosenz and Noto, 2018). Trailfinders engage in social media
promotions for success and sustainability of their new venture.
◦ Blogs: Organisation maintains their blogs or even accepts from persons who are not
related to business. Trailfinders new travel agency's tour or travel experiences are
shared on blogs for having a better promotion of their business.
These promotional activities and channels are selected by Travel agency of Trailfinders
as they are the most effective ways of promoting and advertising business venture. These
channels are wide media for communicating with audiences or customers. These activities and
channels are efficient in attracting targeted segments of customers. They are cost effective and
time saving. Using online media can prove to be the best for influencing youth segment group of
customers.
P6. Promotional activities plan
Launch Pre-launch
 Research target consumer: While
launching a new venture, organization
should conduct research for targeting
customers for knowing their opinions
or suggestions through taking
feedback. It would take 2-3 months for
analyzing or research market.
 Develop product messaging:
Message of new ventures' product is
determined for highlighting valuable
features of their products or services.
It involve time of about 1 month.
 Plan launch promotion strategy: For
better chance of success, promotion
should be done effectively. Plan is
made for promoting the launch of new
travel agency by Trailfinders. It would
 Financial statement or budgeting
preparation: Budgets or financial
statements are calculated for
determining how much can be spent
by organization for various
promotional activities. Would take 1-2
months for preparing budgets.
 Establishing timeline: Timeline is set
for breaking down organizational
venture goals quarterly, monthly or
weekly. After that, promotional
activities are divided according to
timeline. Within 1 month.
 Identify target clients: Customers are
segmented or targeted for successful
promotional activities. It is identified
that for whom products or services are
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take time of 1-2 months.
 Plan post launch strategy: Strategies
are made regarding post launch for
engaging targeted customers or
audiences through social media (Hill,
2015). Post launch strategies are made
within 1 month.
focused. It would take 2-3 months.
 Deciding place for promotion:
Locations for promoting new ventures
are identified by Trailfinders. They
select where to promote their travel
agency through television, newspaper,
personal selling or social media. Place
for promotion is been decided in 2-3
weeks.
 Set goal: Goals or targets for
promotions are set either on the basis
of profit amount or on percentage
increase in revenue. Within 1 month.
 Listing specific responsibilities of
each department: Proper budget and
list is made by entrepreneur for
assigning various responsibilities
regarding promotional activities for
new ventures (Kuratko and Hornsby,
2017). Within 3-5 weeks.
TASK 4
P7. Monthly cash budget
Budget for pre-launch phase of new Travel Agency:
Expenses Amount (in £)
Legal 1000
Stationery 500
Promotional expenses 2500
Brochures 700
Insurance 1000
Licensing fee 1200
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Rent 500
Other 300
Total Expenses 7700
Assets Amount (in £)
Inventory 0
Cash 30000
Long term Assets (Land, building, furniture and facilities) 167000
Other Current Assets 0
Total Assets 197000
Total requirement 204700
Some of the more important underlying assumptions are:
 Enterprise assumes a strong economy, without major recession.
 Travel agency assume, of course, that there are no unforeseen changes in economic
policy to make our service immediately obsolete or unwanted.
Trailfinders has contributed in their new venture of Travel Agency of 167,000 (One
Hundred and Sixty Thousand pounds) in long term assets, such as purchasing land, furniture, and
other facilities like PCs, etc. Organisation also provided with £30,000 for cash expenses.
Business venture need to form a legal entity and have to register it with federal, state or local
government for its legal proceedings. Cost involved in incorporating and registering travel
agency would cost about £1,000. If insurance for new venture is been taken then it would cost
around £1,000. For taking license for its operations, its expenses would be of £1,200. Expenses
on its promotional activities would be of 2,500 and through brochures, it would cost £700. Rent
of the office building would be £500 and other expenses that would incur of £300. So, total
requirement of capital for launching a business venture would be of £204,700.
First 12-18 months:
It is estimated that for first 5 months of year prior to launch of new venture for
Trailfinders, there would be less or no sales at all as it is new to market and would take time to
build trust with customers. Travel agency is not concerned about maximizing profits on
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individual sale but to customer satisfaction. Doing so would increase profits in the long run by
reducing cost of different packages. It is believed to increase in sales of different products and
services of travel agency after 5 months of incorporating business. Its profitability would rise as
it would be tourism season and after season's end, again profit earning would decrease.
P8. Legal form for the venture
Types of legal form of business venture: Sole Proprietorship: It is a business started by an individual by themselves. Sole
proprietorship is easy and quick to do. It often offers tax benefits to owner but, sole
proprietor becomes personally liable for business liabilities (Burns, 2017). Partnership: It's a formal agreement between two or more parties or individuals or
organisations for managing and operating a business venture. Capitals or money is been
brought by partners in their agreed ratios. Profits and losses in business are shared among
partners on ratios of their capital or agreed ratio. All owners are liable for debts of
organisation.
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Illustration 1: Monthly sales estimate

 Limited company: This a form of business venture which is incorporated under laws and
liability of owner is limited by shares. A limited company can be private or public. Its
equity is divided into shares owned by shareholders (Wales, Wiklund and McKelvie,
2015).
Appropriate legal form for launching new Travel Agency:
Most appropriate legal for new venture of Trailfinders have chosen Limited company for
its incorporation. There are certain reasons for choosing Limited company structure for travel
agency, are as follows: Tax: Entrepreneur have to pay less personal tax, which is the main advantage for
selecting limited company for running business. As company is separate legal entity, all
incomes or profits earned by Travel agency have to pay tax from organisations account
(Barrow, Barrow and Brown, 2015). Funding: Limited company can sell their shares to investors for getting investment for
development or business operation requirements. More opportunities are available for
organisation to borrow money. Limited liability: Operating business as limited company means that owners or
entrepreneur have benefit of limited liability. They are not liable for any debts or
financial losses of business. Professional: Having a limited company can provide a more image of being professional.
Most of large companies only deal with limited company instead of partnership or sole
proprietorship (BarNir, 2014).
 Naming: Company name is protected by law, once it is registered. It prevents misuse of
company name by others, as no one can use same or similar name for their own or others
purposes (Cosenz and Noto, 2018).
CONCLUSION
In this report, all the required knowledge, skills and resources for launching a new
business venture is assessed. Organisation uses market segmentation for better understanding the
needs of customers. They target different segments of customers based on geographic,
demographic and behavioural aspects. There are certain resources required for establishing a new
business for its successful operations which include tangible, intangible, human and financial
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resources. An effective plan or proposal is needed by organisation before launching a new
venture. Specific skills and capabilities are needed by entrepreneur for launching an enterprise
like leadership, communication and selling capabilities. It has also been assessed that
promotional activities and channels are selected by organisation for effective promotion and
advertisement of business venture. These channels are wide media for communicating with
audiences or customers. Limited company is the most appropriate form for business venture as
owners or entrepreneur have benefit of limited liability and they are not liable for any debts or
financial losses of business.
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REFERENCES
Books and Journals
Allen, K.R., 2015. Launching new ventures: An entrepreneurial approach. Nelson Education.
BarNir, A., 2014. Pre-venture managerial experience and new venture innovation: An
opportunity costs perspective. Management Decision, 52(10), pp.1981-2001.
Barringer, B.R., 2015. Entrepreneurship: Successfully launching new ventures. Pearson
Education India.
Barrow, C., Barrow, P. and Brown, R., 2015. The business plan workbook: A practical guide to
new venture creation and development. Kogan Page Publishers.
Burns, P., 2017. New venture creation: A framework for entrepreneurial start-ups. Palgrave.
Cosenz, F. and Noto, G., 2018. A dynamic business modelling approach to design and
experiment new business venture strategies. Long Range Planning, 51(1), pp.127-140.
Coviello, N. and Tanev, S., 2017. Initiating a New Research Phase in the Field of International
Entrepreneurship: An Interview with Professor Nicole Coviello. Technology Innovation
Management Review, 7(5).
Hill, I., 2015. Start-up: A Practice Based Guide for New Venture Creation. Macmillan
International Higher Education.
Kuratko, D.F. and Hornsby, J.S., 2017. New venture management: The entrepreneur’s roadmap.
Routledge.
McKelvie, A., Wiklund, J. and Brattström, A., 2018. Externally acquired or internally generated?
Knowledge development and perceived environmental dynamism in new venture
innovation. Entrepreneurship Theory and Practice, 42(1), pp.24-46.
Saxton, T., Wesley, C.L. and Saxton, M.K., 2016. Venture advocate behaviors and the emerging
enterprise. Strategic Entrepreneurship Journal, 10(1), pp.107-125.
Scarborough, N.M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
Wales, W., Wiklund, J. and McKelvie, A., 2015. What about new entry? Examining the
theorized role of new entry in the entrepreneurial orientation–performance
relationship. International Small Business Journal, 33(4), pp.351-373.
Online
Resources for launching business. 2018. [Online] Available through:
<https://yourbusiness.azcentral.com/tangible-vs-intangible-resources-20874.html>.
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