University Project: B&Q New Venture Creation and Business Plan

This project report focuses on the new venture creation for B&Q, a leading UK home improvement retailer. It begins with an introduction to new venture creation, emphasizing its role in developing innovative products and ideas. The report then delves into the marketing plan, analyzing the retail industry, justifying the market, and outlining marketing strategies, including target markets, customer reach, consumer profiles, and competitive evaluations. A detailed financial plan follows, including start-up costs, cash flow projections, income statements, and break-even analysis. The report also covers the management team and company structure, detailing ownership, management responsibilities, and the roles of team members. The project analyzes the company's approach to marketing, including the creation of a new store in Edmonton, providing a customer-centric approach. The report provides insights into B&Q's financial performance and competitive landscape, as well as its strategies for sales processes and pricing. The report concludes with a summary of the key findings and insights related to the venture's potential for growth and success.

New Venture Creation

Table of Contents
Introduction................................................................................................................................3
Marketing Plan...........................................................................................................................4
Explanation and justification of the market...........................................................................4
Industry analysis.....................................................................................................................4
Marketing plan.......................................................................................................................5
Financial Plan.............................................................................................................................7
Start-up cost of new business.................................................................................................7
Cost which is paid only for one time.....................................................................................8
Cash flow projection for first 4 year of business...................................................................8
Income statement...................................................................................................................9
Break even analysis..............................................................................................................12
Management Team and Company structure............................................................................13
Details of ownership............................................................................................................13
Management of the business................................................................................................13
Role of team members.........................................................................................................14
Conclusion................................................................................................................................14
References................................................................................................................................16

Introduction
New venture creation is the part of the business which are helpful for developing new
and innovative products which actually provide a new and innovative idea that comes in the
mind of entrepreneur. This is basically related to the person who are ready to work and assign
the responsibilities for starting a new business with measuring goals and objective of the
business which has been set up. As to start your own business is not that easy for the owner
who has been looking for the factors which include target markets, consumer and facing the
risk of the new and old competitors (Anwar, Rehman and Shah, 2018). Entrepreneurships is
the creativity which are helpful for establishing the business growth, achievement,
management risk and earning different profits. It has been related to different sources and
make his own entity in the prospective of economic, professional, and social development
which are become the major reason to inflating global market.
This is basically related to different sector in the invention and make and effective
changes in the growth of innovation and market growth of the opportunity to make changes
in the different aspect of the business. The chosen company for this project is B&Q, this
company are serving since 1969 and make happy customer by serving better homes and
gardens. B&Q is one of the leading company of UK for improving home and garden of living
retailers. More than 300 stores and 4000 products range are helpful for the company to make
nationwide great advice to the different customer. They are the part of the company and make
unable a different sources within sources. It will be related to make customer need as per the
demand of the products and DIY changes in the company (Eshun Jr, 2018). This report cover
the different principle of creativity, innovation and entrepreneurship that may be convert for
the new process which are highly related to the company’s new product or services. Further it
will be helpful in understanding the need, wants and behaviour of the customer who are
highly related to customer potential and identify the deliver concept of customer segment. In
addition to that, financial forecasting are related to income statement, breakeven, cash flow
statement which are helpful in making financial performance. In last degree of the
competition are described which may improve the situation and helpful in analysing the part
to affect profitability. New venture is one of the essential task which has to be done by an
entrepreneur of the chosen business and tried to make effective growth in their new business
strategy.

Marketing Plan
Explanation and justification of the market
The chosen market area is retail industry as it will be applicable for the growth of the
company which are highly related to different store and growth of the company. Retail
industry specially related to housing innovation products and gardening process are helpful
for the company to work and analysis on the different sector and make them suitable
application and wider growth of the product in the time of globalisation process (Fath,
Whittaker and Fiedler, 2021). After facing the pandemic of covid-19 it is noticed that people
are working form their own home and for this now they take more significant step for the
innovation and improvement in their homes, so that it could be provided a real and kind
environment for the people of their house. Company try to provide more than 2000 different
product range in the starting of their new venture in Edmonton. Here, company tried to make
online sale and free home delivery option for their customer and those who want to visit and
make selection of their own choice of product by their own way.
In their new store they want to open a demo of the kitchen, bathroom and showroom
and where people can visit and choose their home renovation products as per their own
decision and choice. Here customer can get more ideas and ideology for the growth of the
products and services which they can use for their home and garden innovation. All of these
are helpful in understanding the need and demand of the customer and market analysis of this
industry (Griffin‐EL and Olabisi, 2018). The chosen market is very helpful for the growth of
the B&Q in future and they can further spend their company in global market as well. Further
their main focus is to make online transaction and digital working facilities all which are
helpful in understanding and growth of the company to assign different task and avability of
the company in market. The market analysis is further helpful in understanding about
industry.
Industry analysis
Home improving company are increasing and leading in UK market, coming right
after the grocery retailer, they are become the second most important company in DIY and
home improvement sectors. DIT sector of the companies are facing the major impact on the
Coronavirus (covid-19) and the lockdown, social restriction are working all over the world.
In the UK, it will make an impact on the growth and demand of the first leading growth rate
which are highly related to 48% but now the impact shown for closure. But the online shop

retail industry are high and make a spike at that time. As per the record, London had the
highest spend on the DIY products which are very high than other cities of UK. Which make
a large growth in this sector (Herron, 2020). Edmonton is the very much effective city of the
UK and able to produce high products and growth of DIY and home improvement sector and
growth of their products. So it is good industry and make an analysis for the growth of the
products. In UK only kingfisher, Plc is the one which work in this sector. So there are very
high competition and threat to new company which make more opportunities to customers.
Marketing plan
This is the report which outline the growth and essential of the company and make
marketing strategies for the coming year, month or days (Hopp and Greene, 2018). A
marketing plan is include a strategic approach of business marketing plan and having
effective advertisement and pricing goals. So with the help of marketing plan a company can
easily get and make attracted towards the market and make a systematic future market plan
that can be related to growth and achievement of future plan in market.
Chosen target market: The customer audience of the company are very broad as all
over in UK and make their growth in the achievement of success and failure of the company.
Their main targets market and audience are the one who are family oriented and middle or
high income earner. To the ones who are related to families renovation and those who are
living on rent or those who renting their homes (Jin and et.al., 2017). B&Q Company connect
different type of homes, people and market for the growth and essential form of the company.
Their main focus are those people of UK who are able to work and make believe that they
can improve their home design to make better life.
Customer reach: This is the potential number of customer of the business that can
reach out through the many marketing channel and campaigns. This is very important as to
work and analysis of the company to analysis their customer review and feedback is
important for the company. When B&Q are spreading effective improvement plan then it
would be related to different sources to reach out your customer (Kawai, Xheneti and
Kazumi, 2020). B&Q make more commercial profile to spread and reach to their customer
which are related to increase their network with the help of other old customers. With the
help of social media it will be helpful to promote the new venture within market of
Edmonton. Company are sharing effective content profile and able to make concise decision

on the basis of referral marketing they are investing in their customer and try to reach out
from very different prospective growth and essential market in the company.
Consumer profile and behaviour: Consumer profile and behaviour of the company
are highly related to the growth and achievement of the company in an organised manner.
This could be related to essential changes and make high profile customer and analysis their
behaviour in terms of their new venture innovation within society. Most of the customer are
loved their new techniques or that new idea to serve and make a realistic view for their
customer to decide what type of innovative furniture they want (Meglio, Destri and Capasso,
2017). Further company are providing a software which are related to make a 3D view of
their chosen design in their own homes and make them feel satisfied about the change
happened in their home. All of these are related to make sure about working on customer
behaviour and profile. Mainly high profile customer are the visitor in the company’s outlet
and make some high innovation demand in their home and garden culture.
Competition evaluation: There are different competitors who are working on the
different profile and make competitors evaluation which are helpful for B&Q to make high
Profile and make evaluation for the growth of screw fix, BYGGmax, Everest, Mitre10 and
many more companies who are supplying in the same industry and able to provide different
sector and growth of the company in different manner (Sklaveniti, 2017). The home depot is
one of the major competitor of the B&Q as they are providing exact same services with low
price as compare to others. They are operating in US and make international supply chain in
one of the main context in the company to provide relevant services.
Sales process: They are the one which are highly related to different sector and
growth of the sales process which are highly increase in the market. The sale process of the
company are highly effective as compare to the growth and achievement from market
(Nowell, 2017). There are different sources and applicability which are helpful for the
companies to make profitable approach in the market. With the help of promotion and social
media or online techniques company can easily increase their sales volume in the very first
quarter. With the help of sustainability approach market there are different changes and
growth are used for competing and working assignment which are highly related to the
essential changes in the company.
Pricing strategy: the pricing strategy are the essential part of the company as it will be
related to different way and sources of the company. Initial price of their products in the new

venture are low as compare to others. Which will be helpful for the growth of the project and
make profit growth within the company. Further it would be helpful for the customer to make
and sustain effective growth in the sales volume. There are more than 2K visitor can visit in
their new shop or venture to developed a new business and growth.
Financial Plan
Start-up cost of new business
Column 3
Estimated Cash
Item
Salary of Owner $5,500
All Other Salaries $10,000
Lease $4,000
Advertising $2,800
Delivery Expense $1,200
Supplies $1,600
Telephone, Message, Internet
Facility
$3,150
Other Values $400
Assurance $200
Taxes Including Employment
Insurance
$250
Interest $500
Maintenance $150
Legal and Other Proficient Fees $950
Diverse Cost $1,000

Cost which is paid only for one time
Cash Required to Start Business
Capital Costs:
Fixtures and Equipment $15,000
Decorating $5,000
Installation of Fixtures and
Equipment $3,000
Starting Inventory $10,000
Soft Costs:
Deposits with Utilities $2,000
Legal and Other
Professional Fees $1,500
Licences and Permits $1,500
Advertising and Promotion
for Opening $1,200
Accounts Payable $1,800
Cash $3,000
Miscellaneous $500
Total One-Time Cash
Requirements: (B) $44,500
TOTAL ESTIMATED
CASH REQUIRED TO
START BUSINESS: (A) +
(B)
76,200
Cash flow projection for first 4 year of business.
1st year 2nd year 3rd year 4th year
Cash Flow from Operations (during
month)
1. Cash Sales * $22,000.0
0 $24,200.00 $26,620.00 $29,282.00
2. Payments for Credit Sales **
$13,000.0
0 $14,300.00 $15,730.00 $17,303.00
3. Investment Income $4,500.00 $4,950.00 $5,445.00 $5,989.50
4. Other Cash Income $3,500.00 $3,850.00 $4,235.00 $4,658.50
A. TOTAL CASH ON HAND $43,000.0
0 $47,300.00 $52,030.00 $57,233.00
Less Expenses Paid (during month)
5. Inventory or New Material $14,000.0
0 $15,400.00 $16,940.00 $18,634.00
6. Owners’ Salaries $18,000.0
0 $19,800.00 $21,780.00 $23,958.00
7. Employees’ Wages and Salaries $20,000.0 $22,000.00 $24,200.00 $26,620.00

0
8. Supplies and Postage $3,500.00 $3,850.00 $4,235.00 $4,658.50
9. Advertising and Promotion $2,000.00 $2,200.00 $2,420.00 $2,662.00
10. Delivery Expense $1,000.00 $1,100.00 $1,210.00 $1,331.00
11. Travel $1,500.00 $1,650.00 $1,815.00 $1,996.50
12. Legal and Accounting Fees $800.00 $880.00 $968.00 $1,064.80
13. Vehicle Expense $0.00 $0.00 $0.00
14. Maintenance Expense $600.00 $660.00 $726.00 $798.60
15. Rent $3,500.00 $3,850.00 $4,235.00 $4,658.50
16. Utilities $600.00 $660.00 $726.00 $798.60
17. Telephone -$400.00 -$440.00 -$484.00 -$532.40
18. Taxes and Licences -$500.00 -$550.00 -$605.00 -$665.50
19. Interest Payments -$900.00 -$990.00 -$1,089.00 -$1,197.90
20. Insurance -$300.00 -$330.00 -$363.00 -$399.30
21. Other Cash Expenses -$800.00 -$880.00 -$968.00 -$1,064.80
B. TOTAL EXPENDITURES $62,600.0
0 $68,860.00 $75,746.00 $83,320.60
Capital
Purchase of Fixed Assets -
$21,000.0
0
-$23,100.00 -$25,410.00 -$27,951.00
Sale of Fixed Assets
C. CHANGE IN CASH FROM
PURCHASE OR SALE OF ASSETS
-
$21,000.0
0
-$23,100.00 -$25,410.00 -$27,951.00
Financing
Payment of Principal of Loan -$1,000.00 $1,000.00 $1,000.00 $1,000.00
Inflow of Cash from Bank Loan
Issuance of Equity Positions
Repurchase of Outstanding Equity
D. CHANGE IN CASH FROM
FINANCING -$1,000.00 $1,000.00 $1,000.00 $1,000.00
E. INCREASE (DECREASE) IN
CASH (E = A – B ± C ± D)
$83,600.0
0 $94,060.00 $103,366.0
0
$113,602.6
0
F. CASH AT BEGINNING OF
PERIOD $5,000.00 $88,600.00 $182,660.0
0
$286,026.0
0
G. CASH AT END OF PERIOD (G =
F ± E)
$88,600.0
0 $182,660.00 $286,026.0
0
$399,628.6
0
MEET MINIMUM CASH
BALANCE
Income statement
Year 1 Year 2 Year 3 Year 4

1. Gross Sales $70,000.0
0
$77,000.0
0
$84,700.0
0
$93,170.0
0
Products $20,000 $22,000 $24,200 $26,620
Services $35,000.0
0
$38,500.0
0
$42,350.0
0
$46,585.0
0
2. Less: Cash Discounts
A. NET SALES $70,000 $77,000 $84,700 $93,170
Cost of Goods Sold:
3. Beginning Inventory $0
4. Plus: Net Purchases $15,000 $16,500 $18,150 $19,965
5. Total Available for Sale
6. Less: Ending Inventory $0
B. COST OF GOODS SOLD $15,000 $16,500 $18,150 $19,965
C. GROSS MARGIN $55,000 $60,500 $66,550 $73,205
Less: Variable Expenses*
7. Owner’s Salary $18,000.0
0
$19,800.0
0
$21,780.0
0
$23,958.0
0
8. Employees’ Wages and
Salaries
$20,000.0
0
$22,000.0
0
$24,200.0
0
$26,620.0
0
9. Supplies and Postage $3,500.00 $3,850.00 $4,235.00 $4,658.50
10. Advertising and
Promotion $2,000.00 $2,200.00 $2,420.00 $2,662.00
11. Delivery Expense $1,000 $1,100.00 $1,210.00 $1,331.00
12. Bad Debt Expense -$4,000 -
$4,400.00
-
$4,840.00
-
$5,324.00
13. Travel $1,500 $1,650.00 $1,815.00 $1,996.50
14. Legal and Accounting
Fees $800.00 $880.00 $968.00 $1,064.80
15. Vehicle Expense $0 $0.00 $0.00 $0.00
16. Miscellaneous Expenses -$800.00 -$880.00 -$968.00 -
$1,064.80
D. TOTAL VARIABLE
EXPENSES $42,000 $46,200 $50,820 $55,902
Less: Fixed Expenses*
17. Rent $3,500.00 -
$5,000.00
-
$5,000.00
-
$5,000.00
18. Repairs & Maintenance $600.00 -$400.00 -$400.00 -$400.00
19. Utilities (Heat, Light,
Power) $600.00 -$600.00 -$600.00 -$600.00
20. Telephone -$400.00 -$400.00 -$400.00 -$400.00
21. Taxes and Licences -$500.00 -$500.00 -$500.00 -$500.00
22. Depreciation -$2,000 -$2,000 -$2,000 -$2,000
23. Interest -$900.00 -$900.00 -$900.00 -$900.00
24. Insurance -$300 -$300 -$300 -$300
25. Other Fixed Expenses -$1,500 -$1,500 -$1,500 -$1,500

E. TOTAL FIXED
EXPENSES -$900 -$11,600 -$11,600 -$11,600
F. TOTAL OPERATING
EXPENSES $42,000 $46,200 $50,820 $55,902
G. NET OPERATING
PROFIT (LOSS) $97,000 $106,700 $117,370 $129,107
H. INCOME TAXES
(estimated) -$2,000 -$2,200 -$2,420 -$2,662
I. NET PROFIT (LOSS)
AFTER INCOME TAX $95,000 $104,500 $114,950 $126,445
Balance sheet
ASSETS $1,824,110.41
Current Assets: $200,000.00
1. Cash $15,000.00
2. Accounts Receivable $500,000.00
3. Inventory $2,539,110.41
4. Other Current Assets
A. TOTAL CURRENT ASSETS $140,000.00
Fixed Assets: -$7,482.01
5. Land and Buildings $150,000.00
less depreciation -$8,016.44
6. Furniture and Fixtures $159,076.96
less depreciation -$8,501.54
7. Equipment $0.00
less depreciation $0.00
8. Trucks and Automobiles $0.00
less depreciation $0.00
9. Other Fixed Assets $425,076.96