Unit 28 Launching a New Venture: Health on wheel

UNIT 28 LAUNCHING NEW
VENTURE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P.1 Explaining the new venture idea...........................................................................................1
P.2 Determining specific tangible and intangible resources of business plan............................6
Intangible resources.........................................................................................................................8
TASK 2............................................................................................................................................8
P3. Producing a credible proposal to launch a new venture.......................................................8
P.4 Assessing skills and capabilities required to launch a new venture....................................10
TASK 3..........................................................................................................................................11
P.5 Explaining different promotional activities and channels for the launch of the new venture
...................................................................................................................................................11
P.6 Developing an appropriate promotional activities plan for both launch and pre-launch of
the venture.................................................................................................................................12
TASK 4..........................................................................................................................................13
P.7 Producing an itemised monthly cash budget for the venture..............................................13
P8. Suggest an appropriate legal form for the venture, stating why it has been chosen for your
organization...............................................................................................................................16
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
The 21st century is a fast moving era. People of this age are very busy. They do not have
time for their health care too. Today people are demanding healthy food to remain themselves
healthy and fit. This report is presenting a business plan which is of organic food truck. Name of
this food truck is “Health on wheel”. Inside this report executive summary about business plan
will be presented. The report will also consist off competitive analysis, various pre and post
launch promotional activities, legal ventures for business plan. A forecasted budgeted cash flow
is also made for an estimate of the expenses.
TASK 1
P.1 Explaining the new venture idea
Executive summary
“Health on wheel” will be the reasonably priced 10 seats food truck which will offer the
organic food. Fruits, juice, vegetable salad, fruit salad, protein shakes, eggs, yogurt, dry fruits
curry, etc. are all on the menu. In this food truck, they will offer all the organic food for the
1
Illustration 1: FOOD TRUCK
(Source: FOOD TRUCK, 2018)

young, adult, men, women, old etc. food truck will be operated by (write your name along with
your partner here). The “Health on wheel” will put emphasis on organic ingredients.
Customers: “Health on wheel” aims to target distinct groups that believes that the
market can be segmented into five group. The segmentation will be done geographically. Target
will be different areas in city which includes Gym, Hostels, Hospitals, Old age homes, parks etc.
these are some basic areas where food truck will offer organic food.
Management: “Health on wheel” has assembled a strong management team. Three
friends have decided to launch new venture which is basically based on the organic food. Apart
from this, they will appoint one professionally trained driver, one senior chef along with two
assistants and three helpers who will serve food and manage the whole working. All three
friends will take the responsibility individually of different works inside the truck. For example,
one had excellent accounting skill with IT skills so he will manage the accounts' department
(Terjesen, Bosma and Stam, 2016). Apart from this second owner will manage the raw material
and stock and third will take care of other activities.
Competitive edge
“Health on wheel” s competitive edges are:
1. The proprietor's sound understanding about running and opening a food truck.
2. An attractive, unique contemporary food truck design.
3. An attractive international featured menu, changes in every six months.
4. Proper marketing campaign including in and outside the city.
Competitor Analysis
To identify the competitive analysis of “Health on wheel” simple and best technique
have been used that is SWOT analysis.
The SWOT consists of Strengths, Weaknesses, Opportunities, Threats. The SWOT of
“Health on wheel” are listed under along with their weighted impact on mission. The strengths
of my food truck will arise from its unique feature that is mobility and its organic foods. It offers
the organic food by itself that means it is a food truck which go to the customers and offers them
a healthy food. It also saves time of customers. The truck also carries some natural and artificial
things which help them to attract more customers.
SWOT analysis: Strengths
2

Ratings Strengths weight Weight
score
3 Varieties of healthy cuisine 5.00% 0.15
3 Inviting look 6.00% 0.18
4 Goodwill 7.00% 0.28
3 Quality of the service 8.00% 0.24
4 Nutritional value 13.00% 0.52
3 Met the requirements of Specials needs 5.00% 0.15
2 Artificial and natural equipment's 6.00% 0.18
50.00%
Weakness
The weakness of “Health on wheel” lies on its brand, because inside the city no one
knows it. The existing business which are currently running have already acquired market so it
will take time to sustain this food truck in market. Another weakness about this is that it will
offer the organic food which can be quite expensive than others.
Rating Weaknesses Weight Weight
score
3 Fresh establishment 18.00% 0.54
4 Limited fund 14.00% 0.56
4 Higher prices of the organic food 10.00% 0.4
3 Limited possibility of expansion 8.00% 0.24
50.00%
3

18.00%
14.00%
10.00%
8.00%
0.54
0.56
0.4
0.24
Fresh establishment
Limited fund
Higher prices of the organic
food
Limited possibility of ex-
pansion
Opportunities
“Health on wheel” is having various opportunities like, it is providing organic foods
with various geographic as well as demographic segments. There are very less restaurant and
food trucks which are offering pure organic food for health conscious people. The attractive food
truck design with artificial creation of nature will attract customers.
Ratings Opportunities Weight Weight
score.
3 Population of students 8.00% 0.24
4 Growth in health conscious people 16.00% 0.64
3 Pure organic truck 10.00% 0.3
3 Movable restaurant 8.00% 0.24
3 Necessary locations (gym, hostels, parks, yoga centers) 8.00% 0.24
4

50.00%
8.00%
16.00%
10.00%
8.00%
8.00%
0.24
0.64 0.3
0.24
0.24
Population of students
Growth in health conscious
people
Pure organic truck
Movable restaurant
Necessary locations (gym,
hostels, parks, yoga centers)
Threats
There are only few threats in way of success of the “Health on wheel” in US there are
very restraints who offers pure organic food (Lee and et.al, 2016). And talking about food trucks
there are no food trucks which offers organic food to customers. The main competitor for
“Health on wheel” are EVOS, Natural cafe, Organic to Go etc. they are restaurant which serves
organic food and some similar food products.
Ratings Threats Weight Weight
score
3 Other local restaurants 16.00% 0.48
3 Current economy 13.00% 0.3
5

2 High turnover 7.00% 0.14
4 EVOS/ natural cafe 14.00% 0.56
50.00%
16.00%
13.00%
7.00%
14.00%
0.48
0.3 0.14
0.56
P.2 Determining specific tangible and intangible resources of business plan
Before deciding to launch the business it is required to have various intangible and
tangible resources. There are lots of tangible and intangible resources which are required for
food truck are discussed under:
Tangible resources
These are those resources which are required by every business. Tangible means which
can be seen, touch (Kuratko and Hornsby,2017). Therefore, these are those resources which can
be seen and touched. The “Health on wheel” will require tangible resources are listed in the
table.
6
Other local restaurants
Current economy
High turnover
EVOS/ natural cafe

Tangible Resources Purpose
Physical resources
Vehicle
Utensils
Raw material
Chairs and Tents
Other resources
As it is a food truck so it will require truck for further working.
Venture is of organic food, so utensils for the purpose of cooking
can be needed.
There is a need of various raw materials for the food truck.
Some seats and chairs are also required and tent to save truck and
customer from the sun and rain.
There must be other resources which are required like petrol, tool
kit, first aid, etc.
(A) Manpower resources Driver Chefs
 Helpers
 Other managing staff
(B)Financial resources Cash
 Bank or financial
institutions
Professionally trained driver to drive truck.
One senior and one assistant chef is required for the cooking and
baking.
In order to overcome burden of chef and maintain hygiene the
helpers are required.
The other managing staff is also required for handling account
department, IT department. Etc.
____________________________________________________
Cash is required to open venture and for purchasing raw
materials and other required things for “Health on wheel”.
The other resources is Bank, if owner of the “Health on wheel”
wants to raise finance for further expansion.
Other resources Other resources will include resources which require for the
promotional activities.
Intangible resources
Intangible resources are those which cannot be seen but are essential for the business.
Here for food truck “Health on wheel” will require intellectual rights which mandatory for
7

business to have it. Intangible resources are very much important. The intangible resources are
mentioned in the table.
Intangible resources Purpose
Product quality Its purpose in the food truck is very much clear, because it is
offering organic products which must be of good quality.
Deliver reliability If the food truck will provide home delivering service it must be
reliable, fast and appropriate (Kuazaqui,2015).
Staff morale In starting no one is clear that for how long business is going to run
so it is very important for owner to maintain staff morale and must
also motivate them.
High quality
management skills
Owner should have high quality management skill for managing the
workings in food truck
Legal issues and
intellectual property
rights
As it is a sole proprietor business owned and run by owner itself do
not need much legal issues. It needs to have all intellectual property
like patents, trademarks etc. for food truck.
TASK 2
P3. Producing a credible proposal to launch a new venture
Concept
Today in this era people basically are running very busy life. To survive in this era,
people needs good health. “Health on wheel”, is a food truck which will offer organic food. It
will mainly target gym, hostels, hospitals, schools, universities parks, fitness centers.
Tag line
Eat your veggies, have less wedges.
Mission
8

The mission of “Health on wheel” is to provide healthy organic food with best product
quality, with the combination of interesting atmosphere with excellent tasty and healthy food.
We want fair profit and rewarding place for employees.
Vision
 Increase in sales by $350 k by 2020.
 Expansion in the entire city New York by 2020 and further expansion in entire country
US.
 Earn more profit by providing people with healthy food.
Marketing Plan
The marketing plan will consist of four P's of marketing mix which includes Product,
price, place, promotion.
Price
Price for the organic products and services will be moderate. It should be contingent that
could be highly affordable by every customer.
Product
Our food truck “Health on wheel” will offer the various organic products which is for
health conscious people. Organic product includes Protein shakes, different types of salads, fruit
juice, other organic foods.
Place
The target place for food truck will be gym, schools, universities, MNCs, parks, old age
homes, fitness centers, hostels, hospitals where people were found very conscious towards their
health.
Promotions
For promotion of “Health on wheel” s will be done by various pamphlets and word of
mouth. Apart from these newspapers, social media platform, advertisements in TV, Radio
stations also done for promotion of food truck.
STP
segmentation – it is very important tool to segment the market as it help the organisation to
achieve the desired goals and objectives.
Target – it is important to target the customers so that to increase sales .
Positioning – it is the most important tool which gives us complete clarity about the market.
9

Operational plan
location and facilities
The movable restaurant of food truck basically for the health conscious people. It will
provide the facility or organic food and services (Ghezzi and et.al., 2015). The 3 truck will start
from the Abbott Road at 8:30 am and will reach at gym, fitness centers, parks at sharp 9:30 am.
It will provide services till 8:30 pm. At 12 o'clock it will reach near MNC's, hostels, hospitals
where there is large demand for the organic food. The truck will provide the breakfast, lunch, as
well as dinner on to the fix time.
Daily operation and productions
It will be open 6 days for the breakfast lunch and dinner requiring multiple shifts. Owner
of truck will write schedule and in such way that will permit quality to increase or decrease
hourly labor accounting to sales volume in order to maintain labor cost control.
The operational check list will be handled by another partner in order to verify that every
working shift has been properly prepared and to insure that functional regulation are preceded,
during and after work shifts.
Time schedule
Monday 9:30 am to 8:30 pm
Tuesday 9:30 am to 8:30 pm
Wednesday 9:30 am to 8:30 pm
Thursday 9:30 am to 8:30 pm
Friday 9:30 am to 8:30 pm
Saturday 9:30 am to 8:30 pm
Note: Time for Sunday will be 9:30 am to 11:30 am at gym, parks and fitness centers.
P.4 Assessing skills and capabilities required to launch a new venture
Following are the skills which are required to launch a new business:
1. Resiliency: It is a skill which very entrepreneur must have at the time of launching
the business. It includes ups and downs which are the part of venture. Owner must be
enough resilient when the outlook is bleak (Cantos Díaz, 2016).
10

2. Focus: To get closer to the ultimate goal or to knowing focus of venture must be in
mind of entrepreneur for its venture (Brady and Devitt,2016). When the owner will
try to build the venture there will lots of distracting forces. Therefore, an entrepreneur
must have a strict focus towards its business.
3. Invest for long term: Every entrepreneur must need to stop, pause and plan on the
quarterly basis. They need to work for a long term so they can easily come to know
what the business needs.
4. Find and mange people: In a competitive environment it is very difficult to find
correct people for venture (Bloem and et.al., 2017). It requires lots of shortlisting and
skills oriented human resource staff for selection of good people. And to manage
people it is very important to have sound knowledge about internal environment of
venture.
5. Self-reliance: in the end entrepreneur must have to be resourceful enough to depend
on themselves.
6. Learn: a good and successful entrepreneur knows about himself that do not know
everything. Market is dynamic it must take learning from changing market.
7. Self-reflection: Permit downtime to reflect on past and plan for future.
TASK 3
P.5 Explaining different promotional activities and channels for the launch of the new venture
Different promotional activities and channels for the promotion of “Health on wheel” are
listed under -
Advertising
Advertising is promoting the venture by paying (Becker-Blease and Sohl, 2015). It is
paid form of marketing which is done by an identified sponsor. Advertising includes radio, mass
media, television and magazines etc. it also includes the online banner, adds to target the
individuals related with social media sites.
Public relations
In this promotional activity in which relation is to be created between goodwill of the
restaurants and target public (Bauer and Green Seas Venture, 2018). It is an unpaid activity
which Can be used by the organization
Personal selling
11

To develop relationship among target market for purpose of selling products and services
method of personal selling is used.
Sales promotion
Sales promotion includes various marketing activities to attract customers. Its main aim is
to boost the sales by various exciting offers like 10 % discount offer or combo offer, or by one
get one free etc.
Direct marketing
Direct marketing method includes the selling of goods and services directly rather to have
any retailer in between. Telemarketing, mailed brochures, or Catalogs and television home
shopping channels are some tools which is used for the direct marketing. Marketing with help of
email and phone will also use as a tool tools for direct marketing (Bala Subrahmanya, 2017).
Digital marketing
This is way of doing promotion with the help of digital platform like websites by search
engine optimization, social media marketing.
Word of mouth
It is technique of marketing which includes the marketing by speaking. It is done mainly
with the friends, relatives colleagues etc.
Therefore, for “Health on wheel”, the best promotional activities which should be
adopted are advertising, personal selling, direct marketing, and word of mouth. Owner will
choose these four promotional activities because they are cheap ways of promoting the food
truck (Ambat and et.al., 2017). As to earn the profit and increase sales it is very important to take
sources which is relatively cheaper than other.
P.6 Developing an appropriate promotional activities plan for both launch and pre-launch of the
venture
Following are the pre-launch promotional activity of the food truck
ACTIVITIES DESCRIPTION
Advertisements in the Newspapers Before launching food truck advertisements should be
done in various newspapers. So that people should
became aware about the “Health on wheel” food
truck.
12

Banners and pamphlets Banners with attractive design should be hanged on
various target places like gym, parks, fitness centers
etc.
Word of mouth Promotion should be done with the word of mouth
with relatives, neighbors, friends etc.
Following are activities to be planned for launch of “Health on wheel”
ACTIVITIES DESCRIPTION
Visit companies in your neighborhood In the city there resides various companies that are
surrounding are consisted of various potential
customers, especially during lunch hour. It is very
important for fresh start to target various
multinational companies and plan to visit them.
Respond to online reviews Daily observation on the official page of “Health on
wheel” will help to identify and understand the
customers' need and preferences (Alvarez‐Garrido
and Dushnitsky, 2016).
Offer coupons Various types of offer coupons must be given to
customer so that they can get attracted towards food
truck. Like discount offer, by 1 get 1 free etc.
Create a happy hour Once in a week “Health on wheel” must offer happy
hour so that customer gets attracted with exciting
offers and enjoy the healthy meal.
Ask question with customers Ask questions with customers in order to engage
them. It is very beneficial as one can take feedback
from customer to know their needs and preferences.
TASK 4
P.7 Producing an itemised monthly cash budget for the venture.
Forecasted cash flow for 18 months
13

forecast
cash flow
particula
rs
Init
ial
inv
est
me
nt
(in
£)
Jan
uar
y
(in
£)
Fe
bru
ary
(in
£)
Ma
rch
(in
£)
Ap
ril
(in
£)
Ma
y
(in
£)
Ju
ne
(in
£)
Jul
y
(in
£)
Au
gus
t
(in
£)
Sep
te
mb
er
(in
£)
Oct
obe
r
(in
£)
No
ve
mb
er
(in
£)
De
ce
mb
er
(in
£)
Jan
uar
y
(in
£)
Fe
bru
ary
(in
£)
Ma
rch
(in
£)
Ap
ril
(in
£)
Ma
y
(in
£)
Ju
ne
(in
£)
product
Foo
d
Foo
d
Foo
d
Foo
d
Foo
d
Foo
d
Foo
d
Foo
d
Foo
d
Foo
d
Foo
d
Foo
d
Foo
d
Foo
d
Foo
d
Foo
d
Foo
d
Foo
d
Total
number of
consumer
served
130
0
150
0
180
0
205
0
210
0
223
0
235
0
260
0
270
0
325
0
330
0
340
0
310
0
270
0
320
0
350
0
397
0
400
0
Average
selling
price 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5
Revenue
through
food
325
0
375
0
450
0
512
5
525
0
557
5
587
5
650
0
675
0
812
5
825
0
850
0
775
0
675
0
800
0
875
0
992
5
100
00
change in
% of sales
15.
38
%
20.
00
%
13.
89
%
2.4
4%
6.1
9%
5.3
8%
10.
64
%
3.8
5%
20.
37
%
1.5
4%
3.0
3%
-
8.8
2%
-
12.
90
%
18.
52
%
9.3
8%
13.
43
%
0.7
6%
product
Be
ver
age
Be
ver
age
Be
ver
age
Be
ver
age
Be
ver
age
Be
ver
age
Be
ver
age
Be
ver
age
Be
ver
age
Be
ver
age
Be
ver
age
Be
ver
age
Be
ver
age
Be
ver
age
Be
ver
age
Be
ver
age
Be
ver
age
Be
ver
age
14

Total
number of
consumer
served
150
0
155
0
160
0
168
0
170
0
175
0
180
0
188
0
199
0
202
0
190
0
196
0
300
0
302
0
330
0
375
0
380
0
400
0
Average
selling
price 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5
Revenue
through
Beverage
s
525
0
542
5
560
0
588
0
595
0
612
5
630
0
658
0
696
5
707
0
665
0
686
0
105
00
105
70
115
50
131
25
133
00
140
00
change in
% of sales
3.3
3%
3.2
3%
5.0
0%
1.1
9%
2.9
4%
2.8
6%
4.4
4%
5.8
5%
1.5
1%
-
5.9
4%
3.1
6%
53.
06
%
0.6
7%
9.2
7%
13.
64
%
1.3
3%
5.2
6%
total cash
inflows
850
0
917
5
101
00
110
05
112
00
117
00
121
75
130
80
137
15
151
95
149
00
153
60
182
50
173
20
195
50
218
75
232
25
240
00
operating
expenses
fixed
expenses
salary to
chef 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700
salary to
workers 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300 300
advertise
ments
expenses 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250
variable
expenses
raw 300 320 360 380 400 420 440 460 480 500 430 330 550 600 620 650 680 700
15

material
machinery 199 200 150 0 0 100 0 0 0 0 200 0 0 0 0 0 0 327
equipment 150 0 0 0 150 0 0 0 259 0 0 0 230 0 0 0 230 0
traveling
expenses 450 410 300 359 320 200 280 300 360 280 210 360 400 440 360 440 360 351
total cash
outflows
234
9
218
0
206
0
198
9
212
0
197
0
197
0
201
0
234
9
203
0
209
0
194
0
243
0
229
0
223
0
234
0
252
0
262
8
net cash
flow
615
1
699
5
804
0
901
6
908
0
973
0
102
05
110
70
113
66
131
65
128
10
134
20
158
20
150
30
173
20
195
35
207
05
213
72
capital
investmen
t
350
000
opening
balance
of cash
flow
350
000
350
000
356
151
363
146
371
186
380
202
389
282
399
012
409
217
420
287
431
653
444
818
457
628
471
048
486
868
501
898
519
218
538
753
559
458
closing
balance
of cash
flow
350
000
356
151
363
146
371
186
380
202
389
282
399
012
409
217
420
287
431
653
444
818
457
628
471
048
486
868
501
898
519
218
538
753
559
458
580
830
P8. Suggest an appropriate legal form for the venture, stating why it has been chosen for your
organization
There are four main legal form of the business venture
Form of venture Description
Sole proprietorship To organize a business, it is the easiest form of
venture. In this the business is owned by the
owner itself. Owner is liable for losses and
16

gains of company (Wolfe and et.al., 2014).
Partnership firm It is easy to form and run. In partnership, the
partners were liable to report their share for
profit and loss to their personal tax return. It is
a type of venture when two or more persons
combines together, become partners in order to
launch a business.
Corporation In this the shareholders are provided with the
stock in a new business. It is fully independent
business that is made up of multiple
shareholders.
Limited liability company It is a business which is blend with the sole
proprietorship and a corporation. In LLC there
are members who take care of daily business
operations.
Nonprofit organizations These are those organizations which do not
work for the profit earning. These are basically
intended to provide an education and a
charitable purpose.
Therefore, for the “Health on wheel”, the partnership venture is best because the 3
friends are launching business of food truck in the partnership. Three of them have contributed
equal amount of capital for the food truck and are liable in sharing of profit as well as loss.
CONCLUSION
From the present report it can be concluded that the businesses plan to launch an
organic food truck seems to be very successful startup. The present report has provided all
necessary information which is required for perfect business plan. The report has presented the
overall concept of business with legal bindings. report is consisted of forecasted budget which
helps in providing appropriate estimation of plan to launch a business.
17

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