Launching a New Venture

This document discusses the process of launching a new venture, focusing on target markets, competitive analysis, resources needed, proposal development, skills required, and advertising ideas. It provides insights into the market trends and customer preferences for a new bakery venture called Healthy Delights in the UK.

Unit 28
Launching a New Venture
Student Name;

Table of Contents
INTRODUCTION ...........................................................................................................................................3
P1: Investigate & explain a new venture identifying particular target markets and considering
competitive analysis...............................................................................................................................3
P2: Determine specific physical & nonphysical resources which is needed for the launch of a new
venture .................................................................................................................................................5
P3. Produce a credible proposal of the new product..............................................................................6
P4 Skills and Qualities required in order to ensure final proposal as a reality........................................7
P5 Ideas for advertising or marketing of new product...........................................................................9
P6 Advertising plan for the pre-launch and launch of the new product...............................................10
P7 Cash Budget for the launch of new venture....................................................................................10
P8 An appropriate legal structure for the venture...............................................................................13
CONCLUSION.............................................................................................................................................14
REFERENCES..............................................................................................................................................15

INTRODUCTION
Entrepreneurs is a person who establish business by taking financial risk with an aim to
earn profits. In addition to this, they are innovators who find opportunities in order to set up their
own business that is innovative at marketplace. In order to launch a new venture, it is important
for entrepreneur to analyze the market requirements and current trends so that it can take place
easily in market and earn profits as well (Auschra, 2019) . For gaining better understanding A
new venture is launched as “Healthy Delights” in UK. It offers sugar free and fresh bakery
products that is of good taste and quality as well. The report will cover various sources needed in
order to launch a new business venture. Along with this, skills and capabilities which is required
to successfully implement activities of new venture will be discuss. Moreover, different
advertising and promotional activities needed to promote new venture is describe. In the last,
itemized cash budget is develop and legal structure for ventures is going to cover in the report.
P1: Investigate & explain a new venture identifying particular target markets and
considering competitive analysis
Healthy Delights is new venture that has launched in UK that consist of hub of cafes and
restaurants as well. After analyzing the new market trends and customer requirements, it is
determine that there is increase in number of health consciousness customer who prefer to eat
healthy food. For this, the company is coming up with sugar free and fresh bakery items which is
of good quality and taste as well. The company also focuses on providing diverse items &
customized services by considering overall health measures (Biga-Diambeidou, 2019). For
implementing all activities, for distribution, for advertising and marketing, there is recruitment of
fifteen staff members along with training is provided to them so that they can meet with targets
in an effective manner.
Target market
The target market of “Healthy Delights” is mainly adults, youth & fitness freak people
who prefer to consume healthy and tasty food along with the nutritional value. The factors that is
analyzed by entrepreneur for its target market is given below:

Behavioral factor: This market is basically categorized on factors such as buying power,
consumption pattern & lifestyle of customer as well. It is important for entrepreneur to emphasis
on putting unique ingredients so that it an retain its customer to switch to another substitutes or
competitors as well.
Psychographic factor: Herein, the market is divided on factors such as value, opinions,
personality of people as well. The new venture is working on psychographic factors that is it
emphasis on middle and high income group people who prefer quality and consume wide variety
of bakery products.
Competitor analysis
It is significant for entrepreneur to analyses the level of competition prevailing at
marketplace so that an effective strategy is developed in order to remain in competition and
attain competitive advantage at marketplace (Del Bosco, Chierici and Mazzucchelli, 2019). For
this, porter's five force model is applied by entrepreneur that involve five competitive forces that
is given below in relation to new venture”Healthy Delights”.
Bargaining power of buyers: It is determine that in UK, there are various bakery shops
who offer quality items but “Healthy Delights” has come up with new features that is sugar free
and fresh products. This signifies that buying power of buyers is low that help entrepreneur in
gaining higher profits.
Bargaining power of supplier: The venture is new in United Kingdom market so
suppliers have opportunity to charge high amount which states high bargaining power of
suppliers. It is essential for company to develop good relationship with suppliers so that thy can
they can deliver raw material on time period.
Threat of new entrant: It is determine that due to globalization, there are many entrants
who establish new venture in market and therefore threat of new entrant is moderate.
Threat of substitution: In context of providing sugar free bakery items, the is threat is
low for entrepreneur that directly leads to attainment of competitive edge for Healthy Delights. It
is important for entrepreneur to make use of effective promotional techniques so that it can
create awareness and increase their sales and profit level in an appropriate manner.

Competitive rivalry: It is analyzed that there are various competitors in the food &
beverage sector that directly states that competition is high for “Healthy Delights”. In order to
decline such level of threats, it is essential for entrepreneur to develop good relationship with
customers and to satisfy their requirements so that they can retain in market for longer time
period (Domurath, 2020).
P2: Determine specific physical & nonphysical resources which is needed for the launch of
a new venture
Resources plays vital role in order to implement all the activities and functions associated
with new venture in an effective manner. Both the tangible and intangible resources assist in
growth and development and is discuss below:
Tangible resources: It is defined as resources that is required in business for
implementing day to day activities that consist use of cash, equipment and inventory as well. The
resources is discuss underneath:
Physical resources: It include installation of equipment or machinery, land, raw material
which assist in executing all the activities of new venture. In relation to Healthy Delights, it
provide training and development session to employees so that they can use all the resources in a
best and optimal manner.
Human resources: It consist of staff members such as chef, waiters, desk receptionist
which assist in carrying out all the activities and providing quality service to customers.
Financial resources: One of the most important resource needed to implement and plan
all activities for commencement of new venture (Kloepfer and Castrogiovanni, 2018).
Development of budget by owners of Healthy Delights assist in implementing all activities
related with new venture without any delays and interruption as well.
Intangible resources: It consist of reputation or goodwill of company that is developed
by providing quality and on time service to customers. In addition to this, it involve skills as well
as capabilities of staff members who perform all activities in proper manner.

From the above discussion, it is stated that for new venture, there is requirement of both
tangible and intangible resources as it help in proper implementation of activities and functions
of Healthy creations.
P3. Produce a credible proposal of the new product
For staring a new venture, it is important to develop a strong proposal that involves all
required information related with new venture. The steps of developing proposal is define below:
Executive summary Healthy Delights is a new venture that has been established in
UK. It provide sugar free and fresh bakery items in market of
good quality and taste as well.
Company description Healthy Delights is going to be open in United Kingdom and
its new concept is offering sugar free bakery products in
market (Kullik, 2018). The main motive is to offer healthy
products in market as it attract more number of people that has
positive impact on profit and revenue of entrepreneur.
Market analysis It is essential for owners of Healthy Delights to conduct market
analysis as it help in gaining an insight about customer
requirements, market trends and so on. In addition to this, it als
s assist in identifying level of competition prevailing at
marketplace. The tools used to analyze market are STP,
PESTLE analysis, competitor analysis and so on. The main
objective to study market is to find out potential customers and
rivals strategy that help in reducing level of risk in an effective
manner.
Financial projection It is significant for Healthy Delights to have proper amount of
funds in order to carrying out all activities timely and properly.
It is analyzed that there are different funding sources that can
be adopt for new venture is bank loans, crowdfunding,
financial institutions and many more. It is determine that
overall funds required for Healthy creations in € 30,000.
Benchmarking This tool is mainly adopt by an entity in order to compare

processes & performance of similar companies exist within the
market. The owners of Healthy delights is needed to compare
several things such as pricing strategy of competitors, adoption
of new technology, recent changes and so on. With the help of
this, it is analyses that company is able to fulfill requirements
of customers and retain them for longer-time period.
Gantt chart: It is defined as a tool for managing activities by considering the time factor that
help in execution of activities timely and attainment of positive results as well (McGee and
Peterson, 2019). The activities along with time period of new venture is given below:
P4 Skills and Qualities required in order to ensure final proposal as a reality
It is determine that there are different skills & qualities is needed foe successfully
establishing new product in the market. The required skills as well as capabilities is discussed
below:
Skills:
It is defined as an ability of an individual which help them to achieve a specific goals
within stipulated time period. Along with this, it is essential for staff members and a person to

have effective skills so that they can meet with their targets in an appropriate manner. The skills
needed discuss underneath:
Decision making skills: It is essential for entrepreneurs to have the skills to take decision
in more appropriate and effective manner. It is analyzed that an effective entrepreneur is one
who have the skill to deal with circumstances and take decision that is beneficial. In this
changing environment, there are various which is flexible and require to be change and for this
decision making skill is effective and proper as well.
Risk taking ability: Another skill that is required in every entrepreneur is risk taking
ability as it is determine that one of the main function on which every new business idea works is
risk. In addition to this, determination of risk plays vital role for every entrepreneur and to deal
with this is such an effective skill. The risk that is related with new venture as “Healthy bread
creation” is acceptance by customers in market (RJ, 2020). If the new product is not run in
market and it might be a failure and directly leads to wastage of time, money and other resources
as well.
Managerial ability: It consist of skills such as planning, controlling, organizing,
checking & controlling and many more. For launching new venture of providing fresh bakery
and sugar free product, it is significant to have skills to manage all activities as well as operations
in a proper manner. Along with this, it also includes delegation of authority and responsibility to
the employees or workers that is essential for launching new venture successfully.
Time management: It is consider as an essential skills which is needed for
implementation of activities in an appropriate manner. Along with this, it is important to manage
all activities as per the time so that all the targets is achieved in an effective manner. In order to
manage all activities of new venture, entrepreneur adopt Gantt chart that include all the activities
along with the time period.
Leadership skills: One of the most essential skills is leadership skills, which is required
in order to successfully launching new product in the market. Leaders guide and give instruction
to all the staff members so that all the responsibilities and activities that is required to be
implement is clear on their mind set (RJ, 2020). It is determine that adoption of an appropriate
leadership style assist an entrepreneur to gain an insight about behavior as well as attitude of

their workers which help in assigning activities as per their interest. Moreover, an effective
leadership help in motivating and influencing employees to work with full potential that leads to
attainment of objectives within given time period.
All such skills as well as abilities assist in implementing overall activities associated with
new launch of product in an effective manner. Along with this, it also aid in gaining success and
market retention of product as well. By providing training session to staff members, it is
analysed that skills & capabilities of staff members is enhanced that has positive influence on
productivity and profitability of company and new product as well.
P5 Ideas for advertising or marketing of new product
Marketing and advertising of new product play vital role in order to promote its features
and attributes in market in an effective manner. With the help of advertising and promotion
techniques, an entrepreneur can reach to large number of people within given time period. In
addition to this, there are various factors which is needed in order to planning for marketing of
product such as cost, time and so on. The strategies that is adopted by entrepreneur for marketing
or promotion of product is discuss below:
Online marketing: It is defined a an most effective manner to advertise a new product as
well as service in a best manner. For promoting healthy creation and its new offerings,
entrepreneur can adopt such type of advertising and promotion as well. It involve promotions on
Facebook, YouTube, Instagram and many more (Spee, Jenkins and Ekberg, 2018). It is
determine that using of such applications for promotion help in reaching large number of people
within short span of time and enhance sales and customer base level in an effective manner.
Pricing strategies: The entrepreneur can build an effective pricing strategy for the
healthy delights as it assist in attracting people towards brand. Along with this, it is important for
owners of healthy delights to analyze its rivals price so that an attractive price is set and gain
eyes of people prevailing at marketplace. One of the advantage of using such strategy helps in
attaining leading position in market. In addition to this, setting price lower to competitor might
decline the profit margins of new venture and is consider as a disadvantage of pricing strategy.
Publicity: It is determine that people believe in word of mouth which is associated with
new product and service as well. In order to promote new venture “Healthy Delights” an

entrepreneur can opt for family, friends, relatives who can promote new venture to other people
in an effective manner. It is determine that this strategy will not arise any cost to entrepreneur
which is an advantage of publicity strategy.
Web based showcasing: IN this, the owners directly deal or contact with clients by
making use of different applications, c hatbox and so on. The “Healthy Delights” can adopt
online applications for communicating with people and aware them about new product in a
proper manner. It assist in enhancing sales as well as profitability of Healthy Delights in a proper
and timely manner as well.
By analyzing the above marketing and promotion strategy for new venture “Healthy
Delights”, the effective and suitable strategy is adoption of online marketing. It help in reaching
more number of people and promote products that has positive influence on sales and profit
margins of company. In addition to this, it also assist in increasing number of customers due to
which entrepreneur can earn higher profits in an appropriate manner.
P6 Advertising plan for the pre-launch and launch of the new product
Pre-launch: According to this section, it is essential for managers of Healthy Delights to
develop website that consist of all the information and allows to interact with people. In addition
to this, it can build an attractive tagline as it assist in gaining eyes of people towards new
offering and will leads to improvement in sales and profit margins of company (Stayton and
Mangematin, 2019). Moreover, t can make use of social media application in order to promote
offerings and create awareness its unique sugar free bakery items in an effective manner.
Launch: Herein, all the activities take place after commencement of new venture
“Healthy Delights” in market. One of the strategy that can be use by entrepreneur is providing
discount of first 50 customers, it help in grabbing eyes of people towards new offering. In
addition to this, it can promote unique feature on digital platforms as it assist in reaching
maximum number of people within short span of time and enhance customer base level in an
effective manner. Further, the company can take reviews from its customers in order to make
improvements and satisfy requirements of customers as well. Moreover, conducting marketing
and advertising campaign also help “Healthy creations” for promoting brand and increase their
level of sales as well as profitability in an appropriate manner.

P7 Cash Budget for the launch of new venture
It is essential for the owners to develop an budget so that overall activities is
implemented in a systematic and smooth manner. Proper allocation of funds plays vital role as it
ensure availability of money for execution of all the functions and operations of new venture
“Healthy Delights” . The budget is mentioned below:
Pre - launch cash budget:
(Attached in Excel sheet)
Post-launch cash budget:
(Attached in Excel sheet)
By the analysis of above budget, it is stated that pre-launch budget of Healthy Delights
for the month January, February, March, April, May and June associated with total cash flow is
10000, 3000, 3000, 4500, 1500, 3500. if it is taking about post-launch budget in context to total
cash is 9200, 2000, 7500, 3000, 5000, 6500. Therefore, it is determine that there is raise in cash
inflow which leads to attainment of growth & development as well.
P8 An appropriate legal structure for the venture
There are different rules as well as regulations proposed by government and following
such rules aid in smooth ad systematic implementation of activities of new venture” Healthy
Delights”. There are various forms of venture that is described below:
Sole proprietorship: In this type of ventures, all the activities is run by a single person
only (Villani, Linder and Grimaldi, 2018). In addition to this, they are liable for the risk and
losses and take decision at their own. It is determine that legal structure of this venture is simple
and flexible as well.

Partnership: In this, the partnership is take place between two or more than two people
agreed on the terms and conditions mutually. It is determine that herein the profits is divided
equally or according to the partnership deed. It is significant for partners t
By analyzing the above forms of venture, it is stated that sole proprietorship business
structure is more appropriate and suitable for new venture as it help owner in taking rapid
decisions and profits is earned by single individual only.
SWOT analysis of sole proprietorship form of venture
Strength Weaknesses
 It is consider as a prominent and
effective manner of starting a new
business as it consist of less legal
formalities. Along with this, the loss
is bear and profit is earn by single
individual and sole proprietor does
not needed to open a separate bank
account.
 Lack of input and skills is consider as
one of the weakness of such form of
venture as it is analyzed that a person
cannot have the same skills as well as
abilities that is pout by number of
people that is in partnership or other
form of venture.
Opportunity Threats
 Sole proprietor have the possibility to
turn out its business into other form
of venture that is partnership a it help
in expanding business and attainment
of profits as well.
 One of the major threat associated
with sole proprietorship is all the loss
is bear by one person only that
sometimes leads to winding up of
company (Zheng, Ahsan, and
DeNoble, 2019).
CONCLUSION
From the above discussion, it is analyzed that it is essential for entrepreneurs to identify
market trends and customer needs before bringing any new product and service in market. There
are different skills needed for effective implementation of activities of new venture that is time

management, decision making, problem-solving and many more. It is determine that one of the
effective tool nowadays for promotion is social media application as it help in reaching large
number of people within short span of time.

REFERENCES
Books & Journal
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Domurath, A., and et. al., 2020. New venture adaptation in international markets: A goal
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