Unit-28 Launching a new venture.

Unit-28
Launching a new venture

Table of Contents
INTRODUCTION.......................................................................................................................................3
LO1.............................................................................................................................................................3
P1 Investigate and explain a new venture identifying specific target market and undertaking
competitive advantage.............................................................................................................................3
P2 Tangible and intangible resources that would required for the launch of a new venture....................5
P3 produce a credible proposal to launch a new venture.........................................................................6
LO2.............................................................................................................................................................8
P4 Skills and capabilities required to launch a new venture and how they acquired and developed........8
LO3.............................................................................................................................................................9
P5 Different promotional activities and channels that support the launch...............................................9
P6 Develop an appropriate promotional activity plan for both launch and pre-launch..........................10
LO4...........................................................................................................................................................10
P7 Produce an itemized monthly cash budget for the pre-launch phase of venture and first 12-18
months preceding launch.......................................................................................................................10
P8 suggest an appropriate legal form for the venture.............................................................................14
CONCLUSION.........................................................................................................................................15
REFERENCES..........................................................................................................................................16

INTRODUCTION
A business enterprise which is based on something that contains risk and on the same
time with a hope of earning a profit. A new venture gives services related to shop online, transfer
money online, cargo, merchandise etc. on which risk is consider. It is formed with the aim of
gaining the financial benefits within a small period of time. In this a person can research a whole
market where they establish their business venture with their new products so that they know the
need of the market and then innovates their products and launch in a marketplace. This project is
related to new venture of “Titbit” that is a new enterprise of organic food and beverages and they
open a business in UK. It involves various aspects that helps in understanding the facts related to
starting a new venture. This report investigates the range of resources that is useful to launch a
new venture and show the required skills and capabilities that is required to develop an
enterprise. It also includes the promotional tools that are useful to new venture for stay in the

market. At last make a legal form and budget that helps in further activities to launch a new
business in a market place(Kuratko and Hornsby, 2017).
LO1
P1 Investigate and explain a new venture identifying specific target market and undertaking
competitive advantage
Venture idea
Titbit is the new venture that has opened their store in Germany, UK with their main
products like organic food and beverages that is fresh and healthy and does not contain any
added artificial color that harms the human body. In this they offer all types of vegan drinks and
foods that contain only fresh and nutritional value with full of vitamins and antioxidants. Firm
wants to open their business in Germany where they get the good response from the public side.
With the help of marketing research team venture examine the demand of the vegan foods and
beverages and due to this they decision related to enter in the market is strong with this idea. In
this research is an important part that helps in earning the higher profits with targeted the
customers and enhances the sales within a short period of time. It is a significant tool for an
entrepreneur to research the whole market where they establish their business unit so that they
get only success. They started their business in many ways by taking the loan from the outside
investors, make partnership deal with thief family and friends who experienced and have a lots of
knowledge about the market so that they get higher revenues(Kuratko and et. al., 2017).
To start a new venture owner of a business need 1300 square feet land in Germany on a
lease for 10 years with the aim of running a successful business without any hurdles with an
initial capital of 33,0,000 pounds. The firm chose to take loan from bank as they find it as a best
source of lending money(Adomako and et. al., 2018).
It is very essential to set the SMART objectives by the owner of the business so that it
helps in accomplishing all the activities and executing is an effective way. It can be framed
below.
 Specific - Their main target is Germany market to accomplish their goals they focus on
that market.

 Measurable – They mainly focuses on cover the 60% of market in Germany.
 Achievable - Recruit staff that have knowledge about the food products. They generally
deals the organic and healthy food & beverages.
 Relevancy - Makes a strong presence in the market of Germany.
 Time bound- The given time gap is around 12 months.
Target market
Target market is an significant term because whole business growth and success is
depend on this. in this company can fulfills the needs and wants and according to that they offers
a products and services and due to this they easily targeted the potential customers. With the
reference of Titbit owner can segment the market by using basic two terms that has shown
below(Muegge and Mezen, 2017).
 Geographic – It is the first term of segmenting the market for Titbit in which venture
can set the market where the demand is more. In this Germany is the place in UK where
they attract large number of customer base because there people are very health
conscious and due to which enterprise may offers a organic and healthy food and
beverage.
 Demographic – it is generally based on the age, caste, sex, religion etc. After the
research in the area Titbit examine that young people are more conscious about their
health and to maintain their lifestyle to prefer to choose organic, healthy and fresh food
and beverage. So they targeted the young i.e. youth of the Germany.
SWOT analysis
Strength Weakness
The main strength is that by the use of organic
goods and services it may spread awareness in
the whole marketplace(Salamzadeh, 2015).
it creates a problem relating to higher cost
because of vegan goods offerings.
Opportunities Threats
The major opportunity is the current people
who are very conscious about their health and
due to this venture have the opportunity to
Lack of research may lose the control in the
marketplace and it affects the new venture

expand their business. profits.
P2 Tangible and intangible resources that would required for the launch of a new venture
Resources are an important term for every organization to stay in the market or to earn a
profits and revenues for a long time period. There are two types of resources i.e. tangible and
intangible resources. In context of Titbit that sell their goods offerings such as organic foods and
beverages, for this required resources are explained below(McGee and Peterson, 2019).
Tangible resources
It refers to that resources that contains the physical presence for the business and plays an
important role in operating and sustaining the venture and it also gives benefits to the
organisation. It contains varieties of tangible resources and some are shown below(Anglin,
McKenny and Short, 2018).
 Human resources – These are the people who are working within the organization and
achieve the task so that venture get higher returns and profits within a specified time
period.
 Land & building- It refers to the building in which food store is opened and it is an
significant resources without land no food and beverage store is opened.
 Cash – It is the financial resources which are very essential because it fulfills all the
requirements of the venture. By using the cash all the activities and physical resources are
purchased that is used in operating the food venture.
Intangible resources
It defines those resources that has no physical presence in the nature but considers as an
important part of the firm. it is difficult to set the valuation of this type of resources. For Titbit
some of the intangible resources are as follows that is used within the venture(Bernardino and
Santos, 2015).
 Goodwill - it is an indefinite type of intangible resources because it stays with the
company whole life. If it is good it can enhances the market growth and if it is not good it
decreases the net income.

 System software - It refers to that intangible resources which is useful to examine the
market and give the suggestion to the Titbit to how to segmenting and positioning the
market. This helps in enhancing the market share and earns a higher profit in future
terms.
 Customer relationship list- It is very essential to maintain the string connection with the
customers to maintain the growth of business in a market place. This term is helpful for
the Titbit to strong their image in the market place that gives the effective results in near
future(Santos and et. al., 2015).
P3 produce a credible proposal to launch a new venture
It is very important to make a business proposal by the owners because it set the vision,
mission, description and various analyses that is considered during the time of operating and
launching a business. It also guides the employees to work effectively and efficiently and
according to the set plan and policies this gives the longer sustainability in the marketplace.
Below is the business proposal of Titbit(Ghezzi and et. al., 2015).
Executive summary Titbit is establishing their business in Germany
after analyzing that the UK market response
positive. Expanding and exploring their
business in other nation helps in earning higher
profits and revenues and this also increases
their international presence in the long run.
Company description Titbit is providing wide range of products
related to food and beverages in this they offers
organic range of foods and drinks to the
customers that helps in decreasing their obesity
problem and stay fit in their life.
Market analysis It is an analytical tool that is useful for the
Titbit to identify the customers and the market
need and wants. By using this driver venture
take the corrective actions that assist in meet

the customers demand and also fulfill the
entrepreneur expectations. To analyze the
market external and internal factor firm need to
choose various products like PESTLE, SWOT,
Porters five forces model etc. all this helps in
knowing the ability and capability of a market
and also understand the political and economic
condition of the country in which they operates
their business unit(Kowalik, Danik and Sikora,
2017).
Financial projection It is very essential to forecast the whole budget
that is considered in opening a venture in a
Germany. In this after analyzing the market
and the location they invest 3,30,000 pounds
by taking the loan from bank and by raising
funds from their family members.
Benchmarking It involves those actions and plans that is made
for Titbit and their employees. In this owner
can examine the market strategies, preference
and taste of consumers, stakeholders invest and
then update their actions, plans and policies
that gives longer survival.
LO2
P4 Skills and capabilities required to launch a new venture and how they acquired and developed
Starting and operating a new business venture it is beneficial that a person have
appropriate skills and knowledge. With reference of Titbit, owner has high level of skills and
capabilities to deal with the difficult situation and gain the competitive advantage in the leading

market. it includes some skills and capabilities that is develop by the owner of Titbit are
discussed below(Uy and et. al., 2017).
 Managerial skills- This type of skills is an essential because to manage and control all
the activities within the organization so that all the task can be done in an appropriate
manner. In Titbit If owner has high efficiency of employees to control and manage all the
business activities than they will earn higher profits and revenues.
 Communication skills – it is an important skills that a person carry while operating a
business unit. Effective communications helps in attracting and retain the customers,
negotiating amount with suppliers and also helps in maintain the public relation so that
they stay in the market for longer time with high profits and sales. For Titbit owner and
employees it is essential that they have a good skill of communication to deal with
investors, customers and maintains the public relations for a long term(Liu and Wang,
2018).
 Decision making skills – To start a new venture it is a significant tool that a owner have
a good decision making skills so that they make fast decisions at the time of critical
situation and a very effective way. if it does not have a good skill of decision making then
it cannot survive in the market.
 Research skills – it is important to research the market before launching the business or
after launching the venture. Because it helps in understanding the customer’s needs and
wants. In Titbit owner have a good skill of research due to this they research online and
offline way to understand the market and customers perception.
 Risk-taking skills – For an entrepreneur it is essential to take the risk because without
taking the risk they cannot earn high profits and sustainability. With reference of Titbit it
is important to the owner that they have a skill to taking the risk and deal with it. This
helps in enhances the market growth and revenues.
LO3
P5 Different promotional activities and channels that support the launch
Promotional activities are an effective tool to place the product in front of the customers
so that they get attracted and encouraged to buy it. By using this technique customers are aware

about the goods and services of the Titbit. For this company is require to use various promotional
tools activities that can be explained below(Younger and Fisher, 2020).
 Social media - In today’s world social media term is very trending and people spend
their most of the time on this tool. By using this tool Titbit can attract large number of
customer base and all age groups and who have interested to buy the organic food and
drinks that get purchase from there. In this they promote their business on Facebook,
Instagram, You-Tube and snap chat.
 Personal selling – It refers to a business that is used by the entrepreneur to sell their
products after meeting the face to face with large customer base. It is an effective tool for
new venture like Titbit to promote their business by using this personal selling because it
helps in understanding the individual behavior towards the company and the products.
 E-mail marketing – It is an effective tool in which company can influence large number
of audience towards their brands because there are many people who use their mails on a
regular basis. Titbit can follow this promotional tool to attracts and reach the large
customer base.
 Personal promotions- In this company can choose to promote their product by using
brochure, pamphlets. It is a traditional way of advertising the product but a very effective
way. So Titbit can chose this to attract the consumers towards the organic product range.
 Make official website- This is also an effective way to promote the new venture like
Titbit. In this owner can make their own website by using effective content and
innovative pictures that helps in attracting large customer’s base.
This entire promotional tool helps on attracting the large customer base and because of
this Titbit earn large amount of profits and market growth.
P6 Develop an appropriate promotional activity plan for both launch and pre-launch
To reach and cover a large customer base it is very beneficial to efficiently use the
promotional tool to position their products and services in an appropriate manner. In context of
Titbit there are various promotional tool that is used before and after launching(Yang, 2015).
 Pre-launch - it is that stage in which business owners and entrepreneurs start to make
communicate with their potential customers indirectly and directly. It is important to
communicate and aware the consumers about the products and services they offers in

their business. in this they choose online media and their official website to effectively
communicate with the people. For this they provide benefits related to the products
because of this customers get attracted.
 Launch – In the launching stage of the business venture the owner of the Titbit can
directly communicate with the customers by using various modes of promotional tools
such as television, social media, bulletin boards, personal awareness so that they directly
connect with customers and earns a high amount of profits and also helps in longer
sustainability in the market place.
LO4
P7 Produce an itemized monthly cash budget for the pre-launch phase of venture and first 12-18
months preceding launch
Cash budget is the plan to know the cash recipients and disbursements during the time
period. It includes two term cash outflow and cash inflow in which expenses, loans receipts and
payments and benefits. It is a written document that is helpful to forecast in the businesses. It is
prepared for 12 to 18 months of the period that can be shown below(Greene and Hopp, 2017).

P8 suggest an appropriate legal form for the venture
Before launching a new venture an entrepreneur decide and make a legal action realted to
the legal structure of the company that is mainly depend on the rules and regulations framed by

the government of the country. it create a huge impact on the operations and net income of the
company. some of the legal factors are explained below by the Titbit(Terjesen, 2016).
 Sole proprietorship- It refer to that type of business which is owned and controlled by
an individual person and it is considered as a small size of business unit. In this type of
business they contains less tome and follow less rules in the formation. For operating a
business on a small scale it is an appropriate term for the Titbit.
 Company - it is an legal entity that is formed by a group of people who engaged and
operates a one business or an enterprise. It is a large organization that contains high level
of risk with high level profits and revenues. If Titbit opens a business on a large scale
than they choose company structure it is also an best option.
 Partnership firm –It refers to an organization that contains two or more than two
members to run a business unit and earns a profits and bear a loss. In this every member
is responsible for the taking the decision which gives the positive outcomes. It is very
easy to start as compare to company and raise funds from many source like bank loan,
online investors, family and friends.
From the above information related to the legal structure of the venture, Titbit chooses
partnership because it is the best option after analyzing all the facts and figures. It is
beneficial to launch a business in Germany, UK. because of this their risk and profits can
be divided among the partners and they take effective decisions in the different field to
earn a maximum profits.
CONCLUSION
From the above research, it is to be summerised that for starting a new venture it is very
necessary to examine the needs and wants of the customers and maintains a goods relation with
them so that they helps in earning the profits and longer sustainability in the market place. in this
owner of the venture can analyze all the resources that affects the business enterprise and than
select the best and suitable one. To recognize the business in the market they choose various
promotional tools that helps in capturing the large market and also attracts the large customer
base. To stay in the market place venture needs different skills and capabilities that helps in

longer survival of the organisation. At last make a budget by using pre-launch phase this helps in
sustain in the market place with more financial resources.

REFERENCES
Books & Journal
Adomako, S. and et. al., 2018. Entrepreneurial alertness and new venture performance:
Facilitating roles of networking capability. International Small Business Journal. 36(5).
pp.453-472.
Anglin, A.H., McKenny, A.F. and Short, J.C., 2018. The impact of collective optimism on new
venture creation and growth: A social contagion perspective. Entrepreneurship Theory
and Practice. 42(3). pp.390-425.
Bernardino, S. and Santos, J.F., 2015. Antecedents of a new social venture in Portugal: The
influence of education and professional background. Tékhne. 13(2). pp.122-134.
Ghezzi, A. and et. al., 2015, April. A Comparative Study on the Impact of Business Model
Design & Lean Startup Approach versus Traditional Business Plan on Mobile Startups
Performance. In ICEIS (3) (pp. 196-203).
Greene, F.J. and Hopp, C., 2017. Are formal planners more likely to achieve new venture
viability? A counterfactual model and analysis. Strategic Entrepreneurship
Journal. 11(1). pp.36-60.
Kowalik, I., Danik, L. and Sikora, T., 2017. Entrepreneurial orientation elements in the Polish
international new ventures. Baltic Journal of Management.
Kuratko, D.F. and et. al., 2017. The paradox of new venture legitimation within an
entrepreneurial ecosystem. Small Business Economics. 49(1). pp.119-140.
Kuratko, D.F. and Hornsby, J.S., 2017. New venture management: The entrepreneur’s roadmap.
Taylor & Francis.
Liu, H. and Wang, Y., 2018. The value of crowdfunding: An explanation based on demand
uncertainty and comparison with venture capital. Emerging Markets Finance and Trade.
54(4). pp.783-791.
McGee, J.E. and Peterson, M., 2019. The long‐term impact of entrepreneurial self‐efficacy and
entrepreneurial orientation on venture performance. Journal of Small Business
Management. 57(3). pp.720-737.
Muegge, S.M. and Mezen, M., 2017. Business ecosystems and new venture business models: An
exploratory study of participation in the Lead to Win job-creation engine. International
Journal of Technology Management. 75(1-4). pp.157-192.
Salamzadeh, A., 2015. New venture creation: Controversial perspectives and theories. Economic
Analysis. 48(3-4). pp.101-109.
Santos, S.C. and et. al., 2015. Prototype models of opportunity recognition and the decision to
launch a new venture. International Journal of Entrepreneurial Behavior & Research.

Terjesen, S., 2016. The Right Stuff: A NASA Technology–Based New Venture and the Search
for Markets on Earth. Entrepreneurship Theory and Practice. 40(3). pp.713-726.
Uy, M.A. and et. al., 2017. Entrepreneurial passion heterogeneity and new venture team
performance trajectory. In Academy of Management Proceedings (Vol. 2017, No. 1, p.
11473). Briarcliff Manor, NY 10510: Academy of Management.
Yang, Y.S., 2015. The Policy Alternative of Launching Micro VC Fund in Korea Against an
Overwhelmed'Series A Crunch'Issues as to the Early Venture Investment at Startup
Stage. Asia-Pacific Journal of Business Venturing and Entrepreneurship. 10(4). pp.39-
47.
Younger, S. and Fisher, G., 2020. The exemplar enigma: New venture image formation in an
emergent organizational category. Journal of Business Venturing. 35(1).