Comprehensive Report: Launching a New Business Venture Strategy

This report provides a comprehensive overview of launching a new business venture, focusing on the key steps and considerations involved. It begins by explaining the process of investing in and conceptualizing a new venture, followed by an analysis of the tangible and intangible resources required, including financial, physical, and human resources. The report then presents a proposal for launching a business, including a business plan summary, and assesses the necessary skills and capabilities for entrepreneurs, such as leadership and project management. It also explores various promotional activities and channels, culminating in a promotional activity plan and a cash budget. Finally, it discusses the legal forms suitable for the venture, offering a complete guide to the initial stages of business establishment and operation.

Launching a New Venture

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P 1 Investing and explaining a new Venture..........................................................................4
P2 Determining tangible and intangible resources that would be required for the launch of a
new venture............................................................................................................................5
TASK 2............................................................................................................................................6
P 3 Proposal for launching a business....................................................................................6
P 4 Assessing the skills and capabilities required to launch a new venture...........................7
P5 Different promotional activities and channels..................................................................8
P6 Develop appropriate promotional activity plan...............................................................10
P7 Cash Budget....................................................................................................................11
P8 Legal form for the ventures.............................................................................................13
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Establishing new business venture can be both excitement and frightening. It is
considered to be as very complex and difficult task which requires proper planning. As
ineffective plans can create barriers in the successful establishment of an organisation. An
entrepreneur in order to establish and run business in successful manner required development of
several skills, knowledge and core competencies. It is very important for an entrepreneur to
develop the understanding about several provisions, laws and procedures before starting a
business. As this strategy will assist business owner in eliminating the barriers which might
occur in establishment of business. It will also help in ensuring success. Business owner is
required to fulfil all regulatory as well as statutory requirement when establishing new business
venture.
The purpose of present report is to develop the understanding about the procedure
involved in establishing a new business venture. It has focus on identifying the risk involved in
launching of new organisations. Study will also include the detail about the promotional
activities which can be adopted by new start up for gaining the market share and achieving good
position in the market.
TASK 1
P 1 Investing and explaining a new venture
An entrepreneur of new business venture is planning to launch new business first hotel
business in domestic market. After achieving the growth and success in local market, business
owner will make plans as well as formulate strategies for expanding the business operations in
international market. As this strategy will help business owner in gaining the experience which
will be beneficial in establishing leading position in an industry and gaining the competitive
advantage in the market. When making the plan for starting a new business venture, it is required
by an entrepreneur to conduct market research. As this tactic will help business owner in
identifying the target market and gaining knowledge or information about the level of
competition in an industry. Conducting market research is also important as it will help an
entrepreneur in identifying the suitable market for positioning their goods or services. In addition
to this, internet can be used as a tool for gathering information about the market situation and
competitors (Burns, 2017).

As business entrepreneur is planning to establish near Mall in London. This place has
been selected by business owner for opening a hotel, as there is large population visit mall every
weekend. So, this demographic strategy will assist business owner in targeting customers. Before
establishing a business, an entrepreneur is required to conduct competitor’s analysis, as this
strategy will assist an individual in identifying the plans or tactics adopted by its competitors for
attracting the customers. Competitor’s analysis will assist an entrepreneur in measuring the
intensity of competition. It will also assist manager in identifying the appropriate ways for
reducing the negative effect of competition on the customer’s services and other business
operations. It is required by an entrepreneur to develop understanding that an organisation might
have to face tough competition with internal companies in the market. An entrepreneur is
required to analyse markets or market segments served by their competitors etc. Secondary
sources of information are recommended as an excellent starting point .
An entrepreneur of Delta hotel is planning to target working men and women. This
decision has been taken on the basis of assumption that working men and women generally
prefer to buy readymade food items as they do not have time for cooking. This target customers
will help an organisation in achieving business objectives and increasing sales as well as
profitability. An entrepreneur has planned to position their products or services in niche market
in order to reduce the influence of competition.
The Delta hotel has to face stiff competition from following competitors: Park plaza
Hotel, Central hotel, Travel lodge etc. These are the giant companies who have captured big
market share and gained the customer loyalty (Thomas, 2016).
P2 Determining tangible and intangible resources that would be required for the launch of a new
venture.
There are several intangible and tangible business resources are required for starting the
new business venture. These resources are essential as it provides firm an opportunity to fulfil
the basic needs of business and add value to the company. Some tangible resources which are
required for launching of new business includes building, human resource, and finance,
machine, documents, equipment etc. Intangible resources include entrepreneur skills, knowledge
about business or product etc. Market is also considered as intangible resources which cannot be
purchased. It is required by an entrepreneur to utilise both tangible and intangible resources in an
efficient as well as effective manner. As this strategy will assist business entity in increasing the

profitability. It is need by business owner of the hotel to integrate resources into the business
process or system as this will assist firm in accomplishment of objectives. Tangible resources are
defined as the business assets which can be observed, touched and quantified. The amount of
tangible resources with an organisation indicates the borrowing capacity as well as status of firm
business operations. There are certain types of tangible resources which are required to be
arranged as well as allocated by business owner for starting up of new business venture as:
 Financial resources- It is considered as an important resource without which an
entrepreneur cannot be able to plan for starting or launching of new business venture.
These types of resources includes cash in hand, capital, debtors, creditors etc.
 Physical resources - These kinds of resources include infrastructure, production capacity,
material, machinery etc. Technology is considered to be effective as well as cost efficient
resource which helps firm in reducing the expenses and increasing working efficiency.
 Organisational or business resources: It includes an enterprise reporting structure. In
addition to this, formal planning, controlling, and coordinating systems are also
recognised as business resources (Down, 2010).
 Human resource – It is considered as another crucial resource which is required to
execute several operations and accomplishing business objectives. These type of resource
includes employees.
Intangible resources include reputation, trademarks, copyright, patents brand image of an
organisation. Goodwill of the company is considered to be the valuable assets on which the
success of firm is based. It is required by an Entrepreneur of Delta Hotel to concentrate on the
needs of customers and delivering them good quality as well as proper quantity of goods or
services. As this will assist an organisation in maintaining the reputation in the market. In
context of intangible assets, business owner is required to facilitate proper planning for
resources. As this strategy will assist firm in proper allocation of resources and aid business
entity in eliminating waste (Doppelt, 2017).
TASK 2
P 3 Proposal for launching a business
Business proposal is defined as a document which is sent by the business owner to the
investors or other stakeholders for seeking support for launching business in successful manner.
The business Proposal related to the starting up of new business venture includes the detail about

the aims, objectives, mission, vision business operations, employees, marketing strategy,
financial information, organisational strength etc. Business proposal can be designed for the
completing the project in successful manner, for getting the supplies of material, to be the vendor
of a certain product. An entrepreneur of Delta hotel has planned to create unsolicited business
proposal with the intention of attracting the investors and influencing them to make investment
(Cunningham, Sinclair and Schulte, 2014).
 Going beyond business plan – It is very much important for an entrepreneur to make
suitable plan before launching a business. Sufficient amount of time can be taken by an
entrepreneur before starting up of new business venture. The formulation of business plan
is the valuable and significant activity.
 Testing idea- It includes the analysis of measuring an effectiveness of ideas. Business
owner is required to develop understanding about the activities as well as operations
which are required to be executed for accomplishing objectives. In this, there is launching
of business activities in context of hotel, they should monitor or personally should taste
the products and they should give free treat to the people before launching their business
activities. Manager in an organisation should be appointed for taking the feedback from
clients.
 Development of understanding about market- Before launching business, it is essential to
gain information about the type of market. It is very much essential for an entrepreneur to
have information about the different important forces including the primal suppliers,
distributors, competitors and customers.
 Determining the future customer group- It is very much important for an entrepreneur to
develop the understanding about customers’ needs and demand. As this will assist
business owner in making suitable decisions related to the development of products or
services.
 Identifying the source of financial resources- An entrepreneur should take high initiative
in order to adequately capitalise the business and to have sources for capital growth. It
will help business owner in having adequate amount of the resources during the time of
financial crisis (Mason and Brown, 2013).

Summary of business plan : The plan is to launch Hotel business. An entrepreneur is planning to
establish business in centre location of the country in order to provide customer with an ease
access to the products or services offered by organisation. An entrepreneur of Delta hotel is
planning to target working men and women. This decision has been taken on the basis of
assumption that working men and women generally prefer to buy ready-made food items. The
resources required for launching business includes human resource, finance, technology,
machineries etc.
 Business Aim : Aim of the business is to earn high profit and revenue. In addition to this,
company intend to target one percent market share within two months.
◦ Financial summary : Bank loan will be used as a source for raising the funds for
establishing business. In addition to this, an organisation will earn profit as well as
revenue by selling ready made food items to customers.
◦ I want to run my own business in order to earn high profit.
P 4 Assessing the skills and capabilities required to launch a new venture
There are various skills and core competencies are required by an entrepreneur for
establishing new business venture in successful manner. Small business enterprise can be start
with few numbers of workforce, which indicates that the business owner has to facilitate much of
the operations as well as task. An entrepreneur has much responsibilities related to business.
Some abilities as well as core competencies which are required to be developed by business
owner are as follows:
Leadership skills- This is considered as very important abilities which are required to be
possessed by an entrepreneur. This quality assists business owner in guiding people and
motivating workers to work for benefit of company. It is required by business owner of Delta
Company that they should listen to the problems as well as suggestion provides by their
employees. As this strategy will assist them in developing as well as maintaining strong
relationship with workers. Leaders in Delta hotel need to develop leadership qualities in order to
motivate people to follow standards and improve their performance at workplace.
Project or business management skills- It includes the ability to efficiently manage projects.
These abilities are needed for establishing aims and objectives, managing people, operations or
resources in systematic manner. In context of establishing new business venture, project includes

developing websites, designing customer service policies or schemes etc. In context of Hotel
business, it is very much important for managers to have management skills in order to
administer various business activities as well as people at workplace.
Presentation skills- When implementing the new business ideas, at many phases, entrepreneur is
required to give presentations. This types of abilities are helpful in attracting employees,
investors, contractors etc. Presentation skills in context of hotel business is very much essential
in order to attract customers and influence them to visit hotel.
Knowledge about marketing techniques as well as products -When establishing the business
knowledge about the market as well as demand of the product is very much important in order to
ensure success. In context of Newly launch hotel business, marketing skills are very much
important in order to generate awareness about brand, products and services.
These type of skills and core competencies can be gained by attending lectures, seminars,
training events etc. It can also be developed by working as an employee with big organisations.
Knowledge about business can be gained by conducting survey, research, seeking advice from
experts etc. (Zortea-Johnston, Darroch and Matear, 2012).
TASK 3
P5 Different promotional activities and channels
There are various promotional activities that can help the Delta hotel in successfully
promote the brand and making people aware with the products and services that it is going to
offer. Promotion is considered as effective marketing approach that helps the entity in increasing
number of consumers in the firm and enhancing revenues of new entity (Bilton and Cummings,
2010). As hotel industry is facing huge competition, there are many big hotels such as Hilton,
Marriott etc. those which are running their operation s well and have earned good market
reputation. In such condition it has become essential for the Delta hotel that to take support of
effective promotional activity so that it can meet with the objective and can gain competitive
advantage as well (Clapham, 2015). Promotional activities and channels are as below described:
Advertisement
It is one of the major promotional activity and it is traditional method of marketing.
Delta hotel can give news in newspaper or magazines about the new hotel. It can give
information about various products and services that it will provide to its consumers. It can

advertise its firm through TV advertisement as well (Achrol and Kotler, 2014). By this way
information will be circulated to the mass audience.
Sales promotion
It is another promotional strategy in which Delta can promote its brand. In this entity can
provide free gift to the consumers, special discounts to the first consumers those who visit the
hotel with families. These are effective promotional ways that can attract people towards the
brand. It can be done through templates or brochure etc (Athey, Suckling and Rogers, 2012).
Social media promotional
It is another promotional activity in which company can promote its brand in social
networking sites. It can develop a website and can send details of the new brand with amazing
pictures to the consumers on their social networking sites. Interested people can look upon this
brand and they can forward to other friends and relatives. This is online promotional channels
that is cost effective for the organization (Bilton and Cummings, 2010). This can support the
entity in generating more revenues in the organization.
Telemarketing and email marketing
It is another promotional activity that can be done through telephonic medium. In this
entity can communicate to the consumers and can make them aware with excellent products and
services. Delta hotel can also communicate through email. Both these promotional activities are
effective and can support in circulating the message to the mass audience and influencing their
behaviour (Clapham, 2015).
All these promotional activities are effective enough for the Delta hotel because by this
way it would be able to promote its brand well and will be able to attract more consumers
towards the brand (Athey, Suckling and Rogers, 2012).
P6 Develop appropriate promotional activity plan
It is very important for the new venture that to develop appropriate promotional activity
plan that can help in gaining attention of mass audience in London.
 Pre-dispatch planning: It is very important for the company that to design effective plan
because there are many other big organizations those which are performing well in the
market (Bilton and Cummings, 2010).
 Delta hotel has to assess plan and conduct proper research before propelling it.
 It has take care of budget and available resources.

 It has to develop relationship with suppliers so that when new venture is being launched
then it can meet with the deaden of consumers (Clapham, 2015).
Assessment of products
Delta hotel has to take care of proper assessing before launching the venture into the
market. It has to ensure market requirements, competitor strategies and needs of consumers. This
will help the entity in gaining success and fulfilling its objective effectively (Achrol and Kotler,
2014).
Assessment of market
Once planning has been properly examined then entity has to assess market requirements.
It has to decided appropriate advertisement strategy that can be used by the Delta hotel in its
launching. Company has to look upon advantage and disadvantage of this strategy before
launching it into the market (Clapham, 2015).
Planning for launching
It is next phase and very crucial moment in which Delta hotel has to plan for launching
of new venture in the London. In this phase it has to take care of various aspects:
 It is very important for the organization that to look upon market competition in this
industry. Hotel industry is facing huge competition, there are Hilton and other big firms
that have strong control over the market (Bilton and Cummings, 2010). It has to conduct
research about needs of consumers so that it can successfully gain their attention and can
influence their mind.
 Develop effective objectives are another major consideration aspect. Delta hotel has to
develop clear goal and it needs to be communicated to the employees properly. So that no
complication arise during this launching of the venture (Clapham, 2015).
 Company has to create promoting system,. It has to take support of appropriate medium
through which it can reach to the mass audience in cost effective manner.
 Execution needs to be done after completing all the phases (Achrol and Kotler, 2014).
TASK 4
P7 Cash Budget
Delta hotel will have to spend some money in pre-launch phase and after launching
phase as well (Athey, Suckling and Rogers, 2012). By considering the expenditures and revenues
that can be generated cash budget is being prepared as below:

Pre-launching expenditures of Delta hotel
Start-up expenditures Cost
Registration cost 1500
Infrastructure development cost 5000
Publicity and promotion cost 2500
Total pre-launching cost 9000
Cash Budget
Month Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Cash
inflow 15000 17250 19837.5
22813.
125
2623
5.093
75
30170.
35781
25
3469
5.911
4843
75
3990
0.298
2070
312
4588
5.342
9380
859
5276
8.14
4378
7988
60683.
36603
56187
Total sales
revenues 0 15000 17250 19837.5
22813.
125
2623
5.093
75
30170.
35781
25
3469
5.911
4843
75
3990
0.298
2070
312
4588
5.342
9380
859
5276
8.14
4378
7988
60683.
36603
56187
Expenditur
es
Registratio
n cost
150
0 0 0 0 0 0 0 0 0 0 0 0
Infrastruct
ure
developme
nt cost
500
0 0 0 0 0 0 0 0 0 0 0 0
Publicity
and
promotion
250
0
0 0 0 0 0 0 0 0 0 0 0

cost
Staff
salary 0 6000 6600 7260 7986
8784.
6
9663.0
6
1062
9.366
1169
2.302
6
1286
1.532
86
1414
7.68
6146
15562.
45476
06
Rent
200
0 2200 2420 2662 2928.2
3221.
02
3543.1
22
3897.
4342
4287.
1776
2
4715.
8953
82
5187
.484
9202
5706.2
33412
22
Electricity
bill
100
0 1100 1210 1331 1464.1
1610.
51
1771.5
61
1948.
7171
2143.
5888
1
2357.
9476
91
2593
.742
4601
2853.1
16706
11
Total cash
outflow
120
00 9300 10230 11253
12378.
3
1361
6.13
14977.
743
1647
5.517
3
1812
3.069
03
1993
5.375
933
2192
8.91
3526
3
24121.
80487
893
Net cash
balance
120
00 5700 7020 8584.5
10434.
825
1261
8.963
75
15192.
61481
25
1822
0.394
1843
75
2177
7.229
1770
312
2594
9.967
0050
859
3083
9.23
0852
4988
36561.
56115
66886
Interpretation: As in the initial pre-launching period company will have to invest money for
getting licensing and registration of the firm. Total pre-launch expenses are 9000. When it comes
to monthly cash balance then in the first month of Jan hotel will be able to generate 12000 . In
Feb it would be 5700, in march it would get increased by 7020. Till the end of Dec company will
be able to generate revenue of 36561.56. It shows that planning of the organization is perfect and
by this way it would be able to generate expected profit (Athey, Suckling and Rogers, 2012).
P8 Legal form for the ventures
Entrepreneur has planned to launch a new business with the name of Delta hotel in
London. It is the country that is popular for the hospitality business. There are many big hotels
which are running their business successfully and earning high profit. It is very important for the