Launching a New Venture: Sparx - Deep Tissue Massage Spa

This document provides an overview of the new venture Sparx, a deep tissue massage spa. It explains the concept of the venture, its target customers, and the competitive analysis. It also discusses the specific tangible and intangible resources required for the venture, as well as the skills and capabilities needed to launch it. Additionally, it explores different promotional activities and channels that can support the launch of the venture.

Unit 29

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1 Explanation of new venture....................................................................................................1
P2 Specific tangible and intangible resources ............................................................................2
P3 Produce a credible proposal to launch a new venture.............................................................3
Task 2...............................................................................................................................................5
P4 Assessment of skills and capabilities that require to launch new venture .............................5
Task 3...............................................................................................................................................5
P5 Different promotional activities and channel that support the launch ...................................5
P6 Appropriate promotional activity plan for launch and pre launch .........................................6
Task 4 ..............................................................................................................................................7
P7 Monthly cash budget for pre launch phases ..........................................................................7
P8 Appropriate form for venture stating .....................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Setting a new venture and organisation means to launch a new business in competitive
business environment which can help to face the deal with challenges and increases the
performance. Business plan and expectation of customers are basis for starting a venture that
increases insights between people and supports to run a business. This outlines as small business
which is formulated by management and owner by arranging capital and other resources which
are important to run business (Albort-Morant and Oghazi, 2016). For running business there is
need to analysis the market and manage the organisational performance in changing
environment. Deep tissue massage is new service in new venture that name is Sparx this is
newly launch organisation will help to make feel good to tired customers. In this, people can get
body massage which get feel them relax from their daily workings. This report covers different
topics such as new venture by identifying specific market, tangible and intangible resources,
credible proposal, skills and capabilities, promotional activities and legal form to launching the
budget.
Task 1
P1 Explanation of new venture
The venture idea – Sparx is the newly venture that is a Deep tissue massage spa will
help to attract the customers and increases the business performance. In today's world people are
working more and their body need a proper rest which is not possible for them in their daily life.
Due to which they feel much tired and sleepy all time. The idea behind this reason comes to
mind and decided to start a new Deep tissue massage with the name of Sparx will remove the
tiredness of people by getting this massage. This will help to attract and make happy to buyers
and their clients. In this, management has programme to keep professional therapist who are
experienced and will make feel good to clients. This is a social enterprise opportunity will
capture high market share and brand image by providing best services.
Typical customer – This means focus of organisation is considering demographic and
behavioural segmentation. In demographic, management of Sparx are focusing on age and
gender as this spa will be provided to male as well as female for them different therapist are
introduces. Moreover, in behavioural segmentation it focuses on needs and expectation of
customers that can help to make buying decision effectively.

Competitive analysis- This is defined as marketing strategy that uses by organisation for
getting the competition and managing the activities in challenging environment. This can help to
increase the performance. Porter's five forces model is uses by Sparx organisation for analysing
the competition that are as defined:
Competitive rivalry: This stating the competitor which are available in market and
affected the newly business. In context to Sparx, many salons, spa centres, and massage therapist
are having in UK market that can be threat for organisation. For this, management has to decide
low cost than other with best quality time that can help to take the competitive advantages.
Buyer's power: This means how easiest customers buy products by deciding prices. In
context to Sparx, customer have high power to cut the cost as they have other option to get
massage. So this can be threat for chosen organisation to sale their services in less cost.
Supplier's power: For selling the products and making higher profits suppliers are main
who provides raw material. In UK, there are many suppliers who are providing material at
different prices. This can be opportunity for Sparx to buy the raw material such as cream, scrub
and others from suppliers by reducing the prices which can help to make higher profits and helps
to take the competitive advantages (Baucus and Mitteness, 2016).
Threat of substitutes: This means availability of substitutional product which can
reduce the sale of products. In context to Sparx and Deep tissue massage substitutions are health
fitness centre, yoga classes and exercises centre are substitution that can be use by people to feel
relax and tired less.
Threat of new entry: This states entrance of new business in market which can affect
the existing business. In UK , there is less threat of new entry as any one can establsih their own
business whether small and large by arranging capital and resources which can help to operate
the business. This can be challenge for organisation and may affect the business.
P2 Specific tangible and intangible resources
Resources and capital are important terms for organisation which uses to run and operate
the business. It cannot be possible possible for organisation to run and manage their business
without arrangement of tangible and intangible resources. In Sparx organisation, management
are identifying tangible and intangible resources that are as defined:
Tangible resources

These are defined as physical items that can be looking by people and uses properly. In
organisation different tyeps of tangible resources are available that uses to run and manage the
activities in relation to organisation that are as defined:
Tangible Resources
Human resources – These resources are important for the purpose of establishing and
running the business properly. Manpower for business organisation is highly important that
understand what need to doe and how people can be satisfied so they are providing products and
services accordingly. In Sparx, human resources are important who provide services such as
deep tissue that make feel good and relax for the purpose of increasing business performance.
Social resources – This means symbolic items that can be uses as an object of
exchanging among people. This consider good and services, documents, money and good
relations with people that uses to increase the sale. In Sparx, management is required to focuses
on social resources that may help in selling the products and services in high range that increases
performance (Davis and Shaver, 2012).
Financial resources – These are also tangible resources, uses by organisation for
performing and completing the task effectively in changing environment. The important thing is
to manage and run the business by investing amounts. In Sparx, financial resources are uses to
invest the amounts in creating proper structure, designing and buying the equipments for running
the business.
Intangible resources
In organisation these are also important resources which helps to perform and maintain
the organisational activities in proper way. It can help to increase the sale and profitability of
business organisation by managing all task and delivering best quality of services. In context to
Sparx, managers focuses on intangible resources such as goodwill, franchise agreement,
trademark and copyright that uses to improve the brand image effectively.
P3 Produce a credible proposal to launch a new venture.
Business entrepreneur makes huge attempts in launching a venture. In this aspect, a
credible proposal is prepared (Ditizio and Smith, 2017). It is document that is devised by
organisation for offering particular service together with goods to leads at defined cost. It also
defines the actions which are to be taken for introducing a customer according to their needs. In
this aspect, credible proposal is as follows:

Executive summary: Sparx is a new message business that will be opening its premise at
London, UK. It will treat its clients through using touch for manipulating muscles as well as
other soft tissues of human body. Through touches, the therapist of venture will relieve pain and
stress, improve circulation, heal injuries, increase relaxations and assist in general wellness of
customers. The proposal is based on new message service that is Deep Tissue Massage that the
business will launch in the venture.
Problem that the service will resolve: Deep Tissue Massage is one of service that Sparx
will offer to its clients for solving their problems related to releasing chronic tension patterns
which are built in body. Now a days, an individual faces huge tension, pressure and pains in
body. Deep Tissue Massage is perfect service to met the problem as it will alleviate painful
situations together with improve wellness.
Final proposed service: Deep Tissue Massage is proposed service of Sparx that will be
effective for breaking up stuck muscle fibre along with scar tissue. It will be more helpful in
treating Sports injuries or other injuries, relieving chronic pain, increasing motion range and
remedying limited mobility (Birley and Stockley, 2017).
Financial projection: Deep Tissue Massage will be available for clients at price of £
35per person in which therapist salary, electricity charges and other necessities are involved. It
will be provided on the basis on 5 days a week for major injuries and 2 days in week for other
purposes (Dunkelberg and et.al, 2013).
Pricing plan for the product: Sparx is a new venture that will adopt pricing strategy of
penetrating policy. In this, the company will initially keep its prices low and as per success and
demand of service, further changes in prices will be made for Deep Tissue Massage.
Analysis competition and ways the idea is different: The competition in message
therapy industry. In UK, wide number of companies such as Equinox Fitness, Urban, Steiner
Leisure and many more that offers wide message services for customers. However, Sparx is the
different business as it will provide message services to people it will provide services as per
affordability of customers and will also offer other recreational facilities that will relieve pain
and stress of customers .

Task 2
P4 Assessment of skills and capabilities that require to launch new venture
For starting and launching a new venture organisation is required to perform different
activities by using their skills and capabilities that can help to increase the sale and performance.
If a person who is going to start their own business then it should have skills and capabilities that
uses to deliver the different types of products and services in challenging environment and
improve the profitability. In Sparx, employees who are providing and managing all clients at the
time of giving massage is required to have some skills and capabilities such as:
Critical thinking – This skills is required to think more what types of business should be
started and how it will get a success after launching. In Sparx, management and employees are
required to think critical about their business and deep tissue issue massage that will help to
make feel good by establishing a business.
Management skills – Management is important skills that uses by management for
manage their all activities and functions in certain period of time that can help to increase the
sales and profitability. The management and owner of Sparx is having management skills that
uses to manage spa activities, their clients and orders fort running properly (Dutta and Thornhill,
S., 2014.Huang, J. and et.al, 2017.Isele, E. and Rogoff, E. G., 2014Jiang, Y. and Tornikoski, E.
T., 2019.).
Communication capabilities- Communication is way that solves all queries and
problems which arises in organisation that is important for organisation for running business and
increases the performance. In Sparx, owner and employees is required to communicate properly
and provide them training programme so they can get expert and provides bets quality of
services.
Marketing skills and presentation capabilities – Marketing and presentation both are
crucial for organisation that can help to provide the information and encourages people to buy
the products and services. The managers of Sparx are focusing on marketing and presentation
that are important to run and manage the organisation in changing environment and encourages
people to buy the products and services effectively.

Task 3
P5 Different promotional activities and channel that support the launch
Promotional activities are those activities which are uses by organisation for the purpose
of increasing sales and profitability in different environment. This can help to promote the
products by using different sources that make a good person and organisation by selling the best
quality of products and services.
Concept of ‘Bootstrapping – This is a promotional activity that uses by organisation for
building up a company from ground up with nothing but personal saving. This also helps to
make uses of free of resources, skills, leasing and others that can help to increase the sales.
Social media – This is the form of improving promotion in dynamic environment that
can help to provide the information regarding a products and services. In Sparx, management
should make use of social media where it create web design of deep tissue massage will attracts
the customers more improve the number by increasing sales.
Online promotion – In digital marketing, this is another activities in relation to
promotion and channel that uses to promote the products. In this, managers are required to
update their information and discount offer on t5heir websites and web pages that are check out
by clients and they make decision to buy.
SEO – Now many organisations are promoting their products and services by using SEO
that is searching engine site which uses by organisation to show their products on high rank.
Sparx is newly established venture that can be use SEO for promoting their massages while
searching by organisation top massage spa. This can help to reach by potential customers and
manage the activities.
In store marketing – This is uses by Sparx for promoting their massage services by
giving the discount, combo and many other services that can help to attract the customers and
manage the organisational performance in changing environment. This also helps to improve
business performance and maintain high profitability.
P6 Appropriate promotional activity plan for launch and pre launch
For running and developing a business successfully there is need to focus on effectively
promotional activities which can attracts the customers and increases sales. If products and
services of organisation are properly promoted then management will get improve their business

performance. In Sparx, management is required to use promotional plans in relation to a business
pre launch and launch that are defined below:
Pre launch : This is the activity that needed to perform by management after making
plan of launching the business that can help to increase the sales and profitability by delivering
right products and services. The management of Sparx uses pre launch plan by creating an
designer web sites of deep tissue massage on which every details are mentioned with offers that
can help to understand easily by customers and thinks about taking decisions.
Launch : Once websites and structure has properly build up then launching plan is
prepared by management which make feel good to people. They decide the launching date and
update all information to potential customers that helps to make the right decision of buying the
products and services (Kuester, Homburgand Hess, 2012).
Financial consideration to launching plan
Launching pre launch and launch plans organisation is required to spend amounts and
money so they can perform all activities properly and manage the all activities properly. The
managers of Sparx are considering financial activitie such as:
Overhead: For operating and launching a business plan there is need to focus on overhead
are consider income and expenses of business organisation and helps to perform all functions. In
Sparx, management is required to focus on overheads such as opening, equipment, inviting
people, hiring candidates and others that are important and support to launching a new venture.
Task 4
P7 Monthly cash budget for pre launch phases
Cash budget is consider as estimation of cash flows for a business that needed in specific
period of time. This is important for organisation to prepare cash flow statement by considering
all income and expenses that can help to increase the profitability. This provide a full details of
expenses that are incurred in while running a business. This can help to maintain a good
performance and profitability by arranging capital and resources. In Sparx, management has
prepared a cash budget for pre launch stage that are:

Interpretation: From the above it has interpreted that Sparx is required money that
shown in budget for investing in fixed assets, raw material, structure and other expenses which
are important to manage the business and increases performance. This also generate revenues by
providing deep tissue massage services to their clients which make feel them relax and happy
more.
P8 Appropriate form for venture stating
Legal form are the important legislation and activities for all who is going to start a
business and planning to develop. According to this, different types of organisations are exist in
business environment that are important to follow the legal form for running their business. The
legal form of business are defined as:
Sole trader – This means business is started and managed by single person who have
power and responsibility to make decision for further activities. Profits and activities are handled
by such business who is the business owner.
Limited company and partnership – This is the form of business which is running by
two and more than two people at a agreed agreement for running their business and grow it
properly. Here in, profits and losses of partners are divided in defined ratio that support to
perform all activities (Kuratko and Hornsby, 2017).

Community Interest Companies – This legal form consider a company which is
introduced by UK's government for designing a social enterprises who wants to use their profits
for social purpose and make feel good to people (Lee and Lee, 2015).
Franchising – This means a business can be form in legal format that helps to run a
business properly by taking the franchise. This can help to manage and organise all activities of
their leading organisation and provide similar products and services. This can help to continue
and develop the business in changing environment and maintain good performance.
From the above Sparx is following sole trader legal form of their business whi9ch can
helps to run the business and increase the sale by delivering better quality of massage services.
This will help to attract the customers and manage the all activities effectively.
CONCLUSION
The report concludes that launching new venture requires huge efforts by a businessman.
New venture is completely new business that meets needs of customers through unique offerings.
Tangible resources that are required in launching new venture includes physical assets, funds and
human resources. The intangible resources are capabilities of employees, trademark, intellectual
property and copyrights. Key skills and capabilities which are necessary in launching new
venture are Financial planning skill, marketing skill, problem solving skills and cultural
awareness skill. To promote the venture, social media platforms and other channels are used in
venture.

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