Entrepreneurship Report: Launching Mr. Happy's Cafe Venture

This report provides a comprehensive analysis of launching a new venture, specifically focusing on Mr. Happy's Cafe. It begins with an introduction to the global business environment and the importance of innovation for SMEs. The report then delves into the specifics of the venture, including identifying the target market and conducting a competitive analysis. It outlines the tangible and intangible resources needed, develops a credible business proposal including an executive summary, product and service identification, marketing strategies (Ansoff Matrix), and financial planning. The report also highlights the essential skills and capabilities required for launching and managing the cafe, such as financial management, decision-making, strategic business planning, marketing, customer relationship management, communication, and problem-solving skills. Finally, the report explores promotional activities and channels and concludes with an itemized cash budget and a discussion of the appropriate legal form for the venture, reinforcing the critical elements for successful business launch.

Launching a New Venture

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Explain a new venture identifying new target market and competitive analysis...................1
P2 Tangible and intangible resources required to launch a new venture....................................2
TASK 2............................................................................................................................................3
P3 Produce a credible proposal to launch a new venture............................................................3
P4 Skills and capabilities require to launch a new venture.........................................................4
TASK 3............................................................................................................................................5
P5 Different promotional activities and channels ......................................................................5
P6 Develop an appropriate promotional activities plan..............................................................5
TASK 4............................................................................................................................................7
P7 Itemised cash budget for the company...................................................................................7
P8 An appropriate legal form the venture stating......................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Globalisation provide opportunities to small scale industries in expanding their business
as well it gives major impact of SME (Douglas, 2013). For achieving competitive advantage
companies bring their new innovative and creative product and services in market. Technologies
are advancing day by day through which firm can improve quality of their product and
production is uniform with minimum use of resources and fund. This help in attraction customers
because by this process organisation can generate more and more revenue which is necessary to
survive in market. Given assignment is based on, Mr. Happy's Cafe it is chosen enterprise of
food sector. This is established for gaining high profit and sales. Instead of this, project explain
that owner of company have to implement several factor related to business environment while
starting new venture. It also through light on business plan with proper cash budget which is
necessary for growth and development of business.
TASK 1
P1 Explain a new venture identifying new target market and competitive analysis
When new company is coming in market they have to decide their target customers and
market so they can do production according to that. Mr. Happy Cafe is new start up dealing in
variety of food and beverages with good quality and affordable price. Moreover, to attract
customers respective firm have to analyse market trend as well need and wants of customers
because satisfied client assist in increasing market share.
Mr. Happy Cafe will be launched in 958 chaster road in London. This cafe will be target the lot
of customers in order to fulfil their wants and needs in an effective manner. This cafe is located
in famous area where, there are various customers who always wants to eat something different
so this cafe will provide high quality of food and beverages. Along with this there will be lot of
space like 80 around people can eat together without any issues or problems of food. Therefore,
it is necessary for cafe in order to increase profit or revenue in a effective manner. Apart from
this people can easily spend their money on food because food items are available at affordable
price in a good manner. The rent of this cafe will be also affordable for satisfying customers.
As per this employees will be hired on the Cafe's requirement and according to this 90-100
employee will be sufficient, so that they can easily take care customers in an attractive way.

Identification of specific target market:- in this process owner of cafe decide in which
areas they have to introduce their product and services so they can generate more and more
revenue. Target market should be divided according to segments age, gender, income, education
and many more (Wilson and Post, 2013). According to modern era and changing business
environment taste, preferences, need and wants of customers are different. For instance, person
whose income is not hight then he/she prefer products according to that. Whereas, who is earning
high amount of money they will purchase branded and luxurious product. Thus, while starting
new business company have to set their target and do production according to need and want of
customer of that particular region. For Mr. Happy's Cafe target market is 19 to 36 years age
group people because they can spend money on food items. Approaching to target customers is
easy for small scale enterprise because they are not targeting large number of customers in
particular time period. As well their will be less expenses on advertisement and promotion
techniques. Firms can set their target market by doing survey, interviews of people and face to
face interaction.
Competitive Analysis:- food industry is wide and having huge competition. Before
coming in market Mr. Happy”s Cafe have to do market analysis for knowing current status. As a
start up company have to carefully examine national and local both competitor then after that
pricing policies can be framed (Eberhart, 2012). Moreover, for collecting more information
about competitors owner of start-up can visit website of firm, go through google and also local
newspaper of that particular area. After gathering all such information and data company can do
operation in such manner that these will be beneficial for them as well identify that in which area
they need improvement.
Strategy of market analysis:- there are some strategies also for market analysis. These
can be considered by chosen organisation such as-
 identify leading competitors.
 Strength and weaknesses of challenger
 Businesses plan competitors and their strategy.
 Marketing structure and prospect.
 substitute goods.
 Target area and customers of competitors.

P2 Tangible and intangible resources required to launch a new venture
For launching Mr. Happy's Cafe they require both tangible and intangible resources.
Because without appropriate resources no firm can survive in market as well day to day activity
of business resources is required (Evers and O’Gorman, 2011). Main resources needed for new
venture is of two type which is explained below:-
 Tangible resources:- these are those resources which are visible and can be measured in
form of monetary terms. Tangible resources can be fixed and current these help enterprise
in gaining long term benefits. For example plant, machinery use for production, land,
stock, debtors, capital, cash in hand and cash at bank so on. All these having their values
in market and mention in balance sheet also.
This can be said that the rate of this cafe will be very good and also prepare by the customers
requirement because customer are the first priorities of any firm or business in an effective
manner. There will be several workers who responsible for customers requirements. This helps
the cafe in order to gain more and more profit in a competitive advantage in an appropriate way.
Therefore, affordable price will influence the lot of customers in an attractive way. So that
customers are able to get everything with lower price strategy. By this affecting pricing
customers will promote or aid this cafe with their friends or family in a effective manner.
The Estimated cost of the Mr. Happy Cafe will be € 2000.
 Intangible resources:- such resources are not visible but can be feel and provide security
to organisation. These are trademarks, copyright, brand value and image, patent, trade
secrets, contracts, company reputation in current market, networks and many more. For
small scale organisation these are important for their product differentiation and no other
can copy name of Mr. Happy's Cafe (Sebastiani, Montagnini and Dalli, 2013). Value of
such things is high they help in sustaining in market for long term as well in development
and growth also. Apart from this goodwill of organisation is also known as intangible
assets. These are not visible but play important role in profit maximisation as well assist
to remain in business environment.
Both resources are important for company at their places as well chosen cafe have to
maintain balance of these two. So they can generate more and more revenue and sustain in
market form long term.

TASK 2
P3 Produce a credible proposal to launch a new venture
While bringing new business in market company have to frame their plan, policies and
marketing strategies. Proper business plan help organisation to remain in market. Proposal for
new venture is given below:-
 Executive summary: it is initial stage of business plan which shows brief summary of
enterprise and their vision, mission, policies, organisational culture, values and many
more (Dutta, Li and Merenda, 2011). Mr. Happy's cafe vision is to serve quality food
items to customers with delicious taste and affordable to everyone. Most important is to
become popular in market.
 Identify products and services: after that second step is company have to identify that
which product and services require investment. So they can improve quality of goods and
services offering by them to fulfil need and wants of customers. Because satisfaction of
client is more important for remaining in market.
 Develop a marketing strategy: Ansoff Matrix is marketing strategy which is one of the
best and suitable for Mr. Happy's Cafe. As well it includes four elements like market
penetration, market development, product development and diversification. (Wood,
2011). Effectual marketing strategy assist firm in grabbing several future opportunities.
 Set up financial plan: last step of business proposal is to set up financial plan. Finance is
blood of organisation for which organisation have to create effective plan. This shows
that how much amount should to be spend on business activities and task. Financial
planning include budget of enterprise which show inflows and outflow of cash.
P4 Skills and capabilities require to launch a new venture
Launching a new business need some skills and capabilities for running company in
smooth way and effective manner. While starting new business management of firm must ensure
everything from providing products and services to customers till managing accounts of
enterprise (Baum, Frese and Baron, 2014). Below given are some skills and capabilities:-
 Financial management: as per above discussion finance is blood of business without
this no company can survive in market. It is important for running firm and in general

term finance is back bone of business organisation. Some administration fail because of
lack in resources and capital because with money they are not able to do payment of
suppliers and employees. Hence, supplies of raw material get decreased as the enterprise
have nil to sell whereas personnels tend to leave the organisation to discovery some other
employ possibility.
 Decision Making Skills: In company there are several decision which manager and
leader of company have to take. judgement can be related to anything and play major
role because it take organisation to its high and low both. For effective managing task and
activities of Mr. Happy's Cafe decision making should be appropriate and in favour of
firm. Decision making skills is required at every level and in each department of
enterprise.
 Strategic business planning skills: There are some of the certain plan which are being
formulated by every corporate company in order to accomplish certain aims and goals.
There are various skills which are being utilized for innovation and implementing
modifications by which business can conduct operations in better way. Hence, there are
skills of entrepreneur which are utilized or conducting the skill audit along with
formulation of business plan. along with this, there is need of strategic mind which can
provide help in advancing the level of performance of company. implementation of
efficient plans will take make a bridge for long term goals and objectives.
 Marketing and customer relationship skills: marketing play vital role in building
image of company if marketing activities manage in proper manner and should be
attractive that help in providing information about goods and services to customers. For
this process there is requirement of professional team in organisation. Because good
knowledge of marketing help organisation in satisfying customers which is important for
profit maximisation and remaining in market.
 communication skills: effective communication should be required in company for
transferring information to each staff member. This is important because of it employees
feel motivated. Instead of these for meeting day to day activity of business interaction
with more people is required and it must be with right words and in proper manner.
 problem solving skills: environment is full of competition and several problem, issues
because of its dynamic nature. These gives major impact on working of company and its

culture. So for starting new venture there is requirement of problem solving skills and
capabilities.
TASK 3
P5 Different promotional activities and channels
There are some promotional activities and channel which can be used by Mr. Happy's
Cafe for their promotion(Evers and O’Gorman, 2011). some of them is explained below:- Advertising – this done through various tools such as magazines, television, radio,
newspaper etc. but in modern era there are some new techniques also name as web
advertisement. Effectual and clear advertisement help in improving brand image and
value. Advertisement refers to such activities that are carrying out to promote a specific
product or service. These events are beneficial to make people aware about brand or new
innovation implemented to it by an organisation. It can be considered as audio or visual
conversation of any company with customers to provide information about their product. Sales promotion – Major motive of sales promotions is to excite sales and buying. It is a
potentiality of sales and goodness the company by supplying innovative and creative
goods so as to increase high competitive boundary. Mr. Happy's Cafe can conduct several
events and consorts for promoting their sales. Direct marketing – this is bes way of promoting product because in this direct interaction
with customers is going on. It can be in many ways internet, emails and may more for
reaching large number of customers at particular time. Now a day this type of marketing
is successful because people are using internet rapidly. Organisation which are using in
direct marketing tools do only one way communication with clients related to especial
publicity, good announcements and order confirmations.
 Personal selling – Door to door and one to one communication is best example of
personal selling. This is best way because in it feedback from customers are also taken
related to goods and services. It help in improving relation between company and their
customers because by personal selling client think that firm is focusing on then as well
want to fulfil their needs and wants.
Online marketing channels:-

 Social media channels – people are addict of using social media like Face book,
Instagram and many other. If company is using this as their promotional tool then they
can easily capture market. Instead of this it is not too much expensive process as well
attract customers easily.
 Pop – ups advertisements – these look attractive and gives great and psychological
impact on eyes of customers. Because flash message, pop-up advertisements are look
attractive through its colours and images inserted in them. Instead of this flash messages
comes and go in simple terms they blinks and gives major impact on sales of company.
P6 Develop an appropriate promotional activities plan
Their is requirement of promotional activities and advertisement for giving information
to people that there is new business started name as Mr. Happy's Cafe. When chosen firm is
bringing new food item in market at that time also they require appropriate promotional planing.
Below mention is description of several promotional activities and these can be utilised while
introducing new product in marketing:-
 Product analysis- it is necessary that each and every employ of company must know
about product which they are offering to target audience. Those goods which is their
speciality require careful analysing so if it require then they can provide information
about that product (Wilson and Post, 2013). For example- Mr. Happy's Cafe understand
their product and how it is beneficial for growth of business.
 Market analysis- business environment is dynamic in nature and chosen enterprise
must have to examine their internal and external both factors because they gives major
impact on profit maximisation and sale. They have to investigate size of market, variety
of products, target market and competitors to those they are dealing. Further more,
market analysing measure those component which can impact on decision making
ability of organisation.
 Financial base- if organisation have appropriate financial base then they can easily
achieve their goals and objectives (Sebastiani, Montagnini and Dalli, 2013). Small scale
enterprises must form a budget in which the sum of money that will expend on all
activities is clearly mentioned. With these bank loan, cash, credits, investors and many
more should be mention for gaining better performance of enterprise.
Elements of managing while launching a product:-

 Strategic positioning- After innovate some good and service, administration is needed to
examine their strategical place in primary market and then create plans and positions
according to that. It also determine or consider marketing strategy of competitor than
after that they form their own for getting competitive advantage.
 Brand development- this can be possible when Mr. Happy's Cafe produce products
unique and good in quality like low fat and organic food items. Through this they can
improve their market presence as well boost up brand also.
 Web presence- enterprise can make their web page also through which they can do
online delivery. Through this process business gain large number of customers. If page of
firm is colourful and full of images then it attract customers towards it.
 Digital PR and partnering- technologies are developing and helping companies in their
promotion. Market presence can be acquire through social media, bloggers sites and
digital tools (Paudel, Xiao and Yan, 2015). It help in boosting popularity of organisation
and also help in expanding business.
TASK 4
P7 Itemised cash budget for the company
Jan Feb Mar April May June July Aug Sep Oct Nov Dec
0
5000
10000
15000
20000
25000
30000
35000
6350 5850
11600 11950
15750
20250 19750 22100 22650
30100 28850 30860
Cash flow statement for 12 months

P8 An appropriate legal form the venture stating
For Mr. Happy's Cafe partnership is the legal form because there are more then one
person who invest capital for starting new business. Below given is its explanation: -
Partnership: new venture is partnership company because in this there are four partners
who invest capital (Paradkar, Knight and Hansen, 2015). In simple term it can be said that
partnership is legal form of business in which more than one people is sharing profit and losses.
Their sharing ratio is decided according to the amount invested by them. All of them are
responsible for day to day working of enterprise. Instead of this there are three type of
partnership: general, limited partnership and joint venture. Out of this Mr. Happy's Cafe is
formed in general partnership which says that every individual partner have equal role and
liability. Instead of this all of them are involved together for business operations and activities.
Hence, partnership is best way for starting new venture because no individual don't have
enough amount for investment purpose. Major benefit of such type of company is that no single
person is liable for anything loss also divided in ration of their amount invested (Pan and et. al.,
2016). Simply partnership is best legal form of business.
CONCLUSION
From the above assignment it has been concluded that small enterprises playing crucial
role in development and growth of economy. SME help in providing job opportunities to jobless
peoples. As well increase living standard of owner and their family member also. Before coming
in market firm have to identify target market in which they have to serve their goods and
services. Furthermore, company have to types of resources tangible and intangible which is
required for starting new business. In add-on, fiscal management, communication skills, problem
solving skills and many more are the primary ability which are needed to have an businessperson
as he or she can execute all project efficaciously.

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