Managing and Running a Small Business: Delivery Drone Venture Plan

This report presents a comprehensive business plan for a delivery drone venture, focusing on the development and delivery of products and services. It includes a detailed analysis of the target market, which consists of small and medium-sized businesses requiring efficient delivery solutions, particularly in the context of contactless delivery. The report outlines the tangible and intangible resources needed for the venture's launch, such as equipment, land, machinery, and intellectual property. It proposes a vision and mission, along with marketing strategies for pre and post-launch phases, including promotional activities and sales channels. Furthermore, it addresses the required skills and capabilities for success, such as sales, presentation, and generalist skills, and provides a pre-launch cash budget and the legal form of the venture. The plan emphasizes the importance of adapting to the current business environment, highlighting the competitive advantages of the delivery drone concept, and the venture's commitment to providing innovative solutions for its customers.

Managing and Running a
Small Business

Table of Contents
INTRODUCTION...........................................................................................................................3
Range of resources required to launch a new venture.....................................................................3
New venture along with target market and competitive analysis................................................3
Tangible and intangible resources that would be required for the launch of a new venture.......5
Proposal to launch a new venture................................................................................................6
Skills and capabilities required and how these might be acquired or developed............................9
Skills and capabilities required to launch a new venture and how they are acquired or
developed.....................................................................................................................................9
Promotional activities to support the launch.................................................................................10
Promotional activities and Channels.........................................................................................10
Promotional activity plan for both launch and pre-launch........................................................10
Legal form and budget for launch.................................................................................................12
Monthly cash budget for the pre-launch phase..........................................................................12
Legal form for the venture.........................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Developing a business plan is process through which vision of the entrepreneurs are
presented in practical ideas that can be implemented in reality. Creating and developing a
business plan involves several elements that are likely to affect the implementation of the
business. This report will involve creating a business plan considering new product and target
market for the new products along with competitors of the business. Later tangible and intangible
resources will also be included and discussed in this report in order to ensure successful launch
of new venture. In order to make sure that objectives of new businesses are achieved effectively
as efficiently as they have been planed it is important all the skills that are required for the
business are analysed in advance along with the ways of developing them. This report and plan
will also involve promotional activities for pre and post launch followed by a cash budget for
pre-launch phase.
Range of resources required to launch a new venture
New venture along with target market and competitive analysis
Starting a new venture in present business environment requires undertaking several
aspects of the business. In this increasing attention of people towards innovation and associated
creativity essential for success of the business has enhanced difficulty for the businesses. for new
ventures difficulty get enhanced when the businesses are required to and expected to survive in
highly competitive business environment (Cosenz and Noto, 2018). In which businesses are of
several types including local and operating at small scale and those who are operating at big level
are multinational businesses. The new venture being included in this plan is of developing and
delivering product and service for Delivery Drones. This venture idea is based in present
situation where most of the people when expect a delivery are expecting a contactless delivery
and drones for delivery is perfect solution for that. Delivery Drones however is not a complete
new concept but n present times can be of significant uses for the companies to use in order to
bring back their business to track.
Delivery Drones are autonomous devices that are operated like Drones and used for delivering
packages. The venture will prepare delivery drones and will equip drones with GPS in order to

make domestic and regular business deliveries around the business and in a limited geographical
area. Characteristics of this product includes-
 Solar charging batteries that will enable drones to charge on the go when they are in solar
light
 GPS, which will enable drones to identify the address and make delivery
 Suitable for small businesses delivering around their place of business
 Available at affordable prices
Target Market
Developing products mainly requires considering the customers and targeting market.
Target market for this venture is small and medium size organisation requiring to deliver their
products to the customers (Yin and Ritter, 2019). However the product designed and product of
the venture is for businesses and this is why venture will target businesses as its customers. The
reason for targeting them is that the product has been designed to cater their needs. However, the
business is new and funds available are limited and this is why firstly geographically it will limit
customer range to those in London. The reason behind this is London potentially offers more
customers than any other city. Success in London will be utilised for further expansion of the
business.
Competition Analysis
Concerned with competition in this venture, this can be considered that though the
product is not completely new and innovative but still this is first of its kind (Cai and et.al.,
2017). This means that venture will be the first to provide a product with such characteristics to
the businesses to solve their problem.
But this does not ensure that there is no competition this means that traditional and conventional
ways of delivering packages create competition for the product and this requires to pay specific
attention on the promotional and price aspects of the products.

Tangible and intangible resources that would be required for the launch of a new venture
Resources can be defined as something which aids and support in developing product and
enabling ventures to ensure it can be used by the user of the product. Developing ventures
requires several types of resources and number gets increased when product development is
undertaken by the venture. Resources have been divided in two types that are tangible and
intangible resources (Kamasak, 2017). Tangible resources are those that can be seen and
experienced whereas intangible resources do not have any physical shape but are important for
achieving desired ends.
Tangible and Intangible resources that will be required in this venture are as follows-
Tangible resources that will be required for the purpose of successfully accomplishing the
objectives and purpose of the ventures are-
 Equipment- Equipment that will be required for developing and creating drones.
 Land and Vehicles- Physical space for undertaking production as well as corporate
activities
 Machinery- With help of which drones will be developed
 Cash- Monetary requirements for the drones and corporate activities will be fulfilled by
this resource
 Inventory- This involves different types of inventory that is finished, semi-finished or
work-in progress and raw inventory
Intangible resources that lack a physical form and serves as a source of future income (Won and
Chelladurai, 2016). Intangible resources for this venture includes-
 Patent- This enables venture to protect its innovation and products from being copied by
other ventures
 Brand Name- The image of the brand which make it recognisable by others, however
firm does not presently have any specific brand name but once product comes into
market, venture will have its own identity

 Intellectual property and goodwill- This means intellectual capacity and power of those
working for the production of delivery drones and goodwill of the venture
This involves physical and material resources for the venture along with monetary and human
resources. Effective balance and utilization of all these resources will enable new venture to
achieve all the objectives.
Proposal to launch a new venture
The proposal for the new venture discussed various elements associated with creating and
launching new venture (Razmdoost, Alinaghian and Linder, 2020). This venture is based on
delivery drones as the product and proposal discussed about vision and mission for the product
and later discussed and communicates market, cost, product portfolio and different elements that
are most important to consider for success of the business.
Vision
To provide contactless delivery solutions for small and medium size organisations
Mission
To develop high quality delivery drones
Objectives
 To ensure profits for the venture in its first year
 To achieve 10% market in first year of the venture
Market Analysis
This is concerned with viability of the product in the market. Concerned with delivery drones,
this product is suitable according to current requirements of contactless delivery. This is one of
the important element of the delivery drones. The product is also low cost and along with this
GPS feature of the drone allows this to make home deliveries of the product. This suggests that

product is according to market requirements and possess high possibilities of success in the
market.
Venture Cost
The cost that is involved in this venture is associated with the development and creation
of the delivery drones. Other than this major cost is involved in promotions and corporate
activities of venture. However pre-launch cost of the venture involves major cost in development
of the product and advertisement of the product. After launch cost involves corporate and
operational expenses. But because venture is small business this is why its cost is limited.
Competition
Concerned with competition there is not much competition in this industry and associated with
the product. The reason is that this is something new and something like that is not being used at this
level. This provides competitive advantage to the venture.
Products and Services Portfolio
The product as discussed earlier is delivery drones that are designed considering small and
mediums businesses to assist them in contactless delivery. The products and its characteristics have
been discussed earlier in this report.
Environment impact of the product is also favourable as product will be based on solar energy
and this make it environment friendly.
Management and Operational Plans
The venture as is likely to start and this will target businesses of London for the purpose of
selling its product. This is why there is no requirement of logistics for the venture. Other than this
venture is in form of small business and this is why all its activities will be carried out with a team of
members having specialised knowledge in different areas of the organisation.
Marketing and Sales Channels

The marketing and sells channel for this venture will be directly approaching businesses those
who are required to make deliveries as plan of their business. Some of the businesses are food
delivery, courier deliveries etc.
Activities 30 Days 20 Days 10 Days 30 Days 15 Days After
completion
of pre-
launch
phase
Planning and
designing the
product along
with acquiring
resources
Developing
product
Analysing and
evaluating
viability for the
market
Planning for the
venture
Pre-launch phase
and promotional
efforts
Launch of the
product in
market

Skills and capabilities required and how these might be acquired or developed
Skills and capabilities required to launch a new venture and how they are acquired or developed
Skills and capabilities are those elements that add value in something and contribute in
achieving objectives concerned with product development. In order to ensure success of the
venture and achieve all the objectives of the organisation to achieve its vision it is important to
have some of the skills and capabilities (Johnson, 2017). Skills and capabilities become more
important when business is new because new businesses require dealing with several challenges
that is acquiring customers and clients and proving utility and quality of the products. This are
some of the challenges that are required to be dealt by new ventures and skills and capabilities
are only way through which these can be overcome.
Sales and presentation skill
This means that new ventures and people involved in new ventures require to possess
excellent sales and presentation skills through which they are able to convince people to buy
their product. This in case of this product and venture is very important when venture is planning
to approach its customers to sale its products.
This can be developed with courses and training programs available for this purpose and
lately can be developed by experience.
Hiring and Managing Employees
This means that new ventures need to ensure they make quality hiring which can later
contribute in achieving objectives of the business. This venture because is in form of small
business need to ensure that they make quality hiring and are able to manage employees.
Several academic and other courses are available to acquire this skill of the entrepreneurs.
Generalist Skills
This means that it is very important for new ventures to have generalist skills
(Moldoveanu and Narayandas, 2019). This means entrepreneur launching new venture should be
aware with all kinds of task and have general capabilities to complete them all.

In order to develop and acquire this skill many short term courses are available but when
it comes to generalist skills experience can be best teacher for that.
Promotional activities to support the launch
Promotional activities and Channels
Promotions plays important role in creating awareness about the availability of the
product and services in the market. This also has become one of the key elements for success of
the business and venture. This venture will also undertake promotional activities considering all
its benefits. Promotional channels are of two types that are traditional and modern. Traditional
channels of promotions include print advertisement and television promotions (Digiorgio, 2016).
Whereas modern channels include social networking marketing and digital marketing. For the
purpose of promotion of this venture both the channels will be used. This will ensure venture is
able to get all the benefits of different marketing channels. This also allows overcoming
weaknesses of one kind of marketing channel.
For the purpose of promotional activities print advertisements will be considered by the venture
along with billboard advertisement. This is aimed at increasing awareness about the availability
of the product even in general public which is however is not target customer of the venture.
Employing this activities of promotion will help company in creating intensive publicity which
will be beneficial for venture because of innovative and unique product being offered by the
venture.
In modern promotion activities SEO will be utilised in order to track those who are interested in
this product and communicating them and website will play key role in this (Hanif and
Rodrigues, 2018). This in present times is very effective way to identify and target right
customers and audience.
Promotional activity plan for both launch and pre-launch
Objective

Objective behind promotional activities is to increase awareness and visibility of the product to
most of the target customers and building a reputation and image that convince people to buy
product of the venture.
Promotional Mix
Promotional mix that will be utilised by venture is-
Advertising
To increase awareness in the public about the product Advertisement will be used for
promotion so that venture can communicate about its innovative and new product. This includes
newspaper advertisements for the products.
Personal Selling
This is important when company is targeting businesses as customers rather than
consumers and customers (Qian and et.al., 2019). Personal selling will include selling by
approaching the businesses to buy the delivery drones that have been developed by the venture.
Sales promotion
This means that in its starting venture will provide some kind of discounts to first few
customers to motivate people to buy products of the venture.
Direct Marketing
This means using technology for messaging to potential customers and directly
communicating with them in order to motivate and appeal them to make purchase.
Promotional Budget
This will mainly involve cost of promotions through advertisement. Other than this other
channels of marketing does not incur much cost.
Effectiveness of the Campaign

This means identifying and analysing results of the marketing efforts with the sale of the
product. However as the venture is completely new, it can easily analyse its pemotional cost with
that of profits and turnover through sale of the product.
Among these promotional activities pre-launch promotional activities will limit to
advertisement of the venture and product. This is because there is no sale involved in
advertisement and all other activities are based on sale of the product.
Legal form and budget for launch
Monthly cash budget for the pre-launch phase
Budget plays a important role in success and possibility of creating and launching
venture. Pre-launch phase in this venture plan is around 105 days that is around three and half
months and this pre-launch phase involves some of the major expenses that are concerned with
development of the product and creating it viable for the use in the market (Arslanian, 2016).
This requires cash and the cash budget for the pre-launch phase for the venture is as follows-
Mont
h 1
Mont
h 2
Mont
h 3
Mont
h 4
Receipts £ £ £ £
Cash
receipts 5000 7500 6000 2000
Total
Receipts 5000 7500 6000 2000
Payments
Equipment
s 3000 4500 2500 750
Operating
expenses 200 350 350 150
Salaries 1000 1000 1000 500
Rent 300 300 300 150