Entrepreneurship Report: Launching a New Venture - Delight Restaurant

This report details the launch of "Delight Restaurant," a new venture in London. It begins with an introduction emphasizing the importance of market analysis and competitive advantage in the current business landscape. Task 1 focuses on identifying the target market, which includes colleges, hostels, and office workers, and analyzing the competition, including existing restaurant chains. It also outlines the tangible and intangible resources needed, such as tables, chairs, and brand reputation. Task 2 involves developing a business proposal, including an executive summary, company description, market analysis (SWOT and PESTLE), and financial projections. It also assesses the skills and capabilities required, such as fund management, leadership, and presentation skills. The report discusses promotional activities, including pre- and post-launch strategies, in Task 3. Finally, Task 4 covers the preparation of a monthly cash budget and suggests an appropriate legal form for the venture. The report concludes with a summary of the key findings and recommendations for launching and operating the restaurant successfully.

Launching A New Venture

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Identify a new venture which focuses on target market and competitive analysis................3
P2 Determine a tangible and intangible resources for establishing a new venture.....................4
TASK 2 ...........................................................................................................................................5
P3 Develop a proposal to launch a new venture.........................................................................5
P4 Assess the skills and capabilities to start a new business venture........................................7
TASK 3............................................................................................................................................8
P5 Explain different promotional activities which was undertaken to establish an enterprise...8
P6 Create a promotional activities plan before launch and after launch.....................................9
TASK 4..........................................................................................................................................10
P7 Prepare an monthly cash budget for the pre-launch phase of the venture...........................10
P8 Suggest an appropriate legal form for the venture...............................................................12
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
In this modern era, number of entrepreneurs are coming with unique and innovative ideas
by grabbing market opportunities. Due to this, number of business are getting launched at
marketplace which resulted in changes and maximized competition in the society. It is a very
tough job because of the presence of huge competition in the market. An individual should
launch a new business after proper analysing the external environment so that it is beneficial for
the organisation (Scarborough, 2016).
This assignment is going to highlight a new venture which is set up by a talented and
knowledgable entrepreneur for earning livelihood. An entrepreneur want to open a small
association named as “Delight restaurant” in the mid-way of London.
In this report there is a discussion about the idea, how it will attract the larger number of
customer and earn competitive advantage. A starter have to develop a business plan, prepare a
budget and cash flow forecast for first year to start a new business. It highlight the resources
which was required to run a new undertaking. Along with this it also put light on the skills and
knowledge needed to establish a new venture.
TASK 1
P1 Identify a new venture which focuses on target market and competitive analysis.
An entrepreneur seek to open a new small business in the mid city of London . The
business or idea which has been undertaken in this report is a restaurant which should be open at
the place where is can find large number of individual such as colleges and working sector. For
running a food business it is necessary that the person and individual have the knowledge of
different food materials and its taste so that they can easily address the problems related to it and
deliver desired offering to consumers. For opening a new restaurant they take a place on the
lease for the period of 2-3 years. They takes the fund from any financial institution for carrying
out its activities. Currently they require the fund between £ 2533 and £ 3500. They should make
concern on their location of the restaurant because on that success of undertaking depends
(Kariv, 2013). The business want to offer all kinds of food to their client like Italian ,Mexican ,
Lebanese , Chinese and so on.
Target market : It a central focus on the basis of which other factors of the organisation
depends like distribution,price and promotion. An entrepreneur should take care of its target

because on that the business grow their market share. Business should target large number of
people on the basis of age , culture background ,income , family life and education etc. Business
should target specific group of customers in place of pleasing everyone. They should know who
is likely to buy the product at a market. Enterprise can target colleges,hostels , offices people
who want to buy high quality based product at reasonable rate..
Competition : Competition is good for the businesses because it motivates organisation
to continuously improve their services. But excess competition is very harmful for the business
because there is a big chances that it can occupy other companies client. The company is having
huge competition from the existing small restaurant like Alex partners ,le bistrot pierre , pho are
among the brands who can capture their share (Chrisman, McMullan and Ring,2012). They are
also having the threats from the nando's and wagamama's who are the larger chains expanding at
a more steady pace.
Porter's generic model : It describes how company generate competitive advantage in the
chosen market over its rival firm. It include three basic objective which organisation use to
achieve competitive advantage.
1. Cost
2. Differentiation
3. Focus
(a) Cost Focus
(b) Differentiation Focus
P2 Determine a tangible and intangible resources for establishing a new venture.
An entrepreneur wishes to start “Delight restaurant” at London. To start and successfully
run a undertaking there is a requirement of many types of resources. These can be in the form of
tangible and intangible.
Tangible resources : These are the necessary resources which is essential to bring the
business in existence. It includes all those things which individual can touch and understand.
Tangible resources include both fixed asset and the current assets such as inventory. An
entrepreneur have to gather various physical objects in order to run their restaurant business like
table, chair, place, bulbs light ,labour , billing machine . For starting a business individual
generally concentrated on the external things . Business persons put lot of money in such kind of
tangible substance because they believe more they spend money as they gain more profit. Due to

this business person always focus on the appearance of the belongings at their place like food
and interior. In today time restaurant get popular on the basis of is its ambiance and the visual
aspect of its product before taste. So if the person want to sustain for a longer period in the hotel
industry and food industry than they to take care of all these things.
Intangible resources : An entrepreneur have to put its focus on various intangible things
which create big effect on their market position. Intangible resources are well known as the
brand equity , reputation , customer loyalty , word of mouth and technical expertise. They are not
physically present but create a huge impact on the venture for example quality is a intangible
substance but can create a negative or positive impact on the organisation existence. (Hmieleski
and Lerner, 2013). An entrepreneur should focus on its services because it a first thing on the
basis there is a huge increment in their sales and profitability. But organisation people generally
put money and time on the tangible substance as they provide a larger return on the basis of its
concentration. Sometimes intangible things are placed before the tangible things on the ground of
services business able to create its reputation among various competitors.(BarNir,2014) . These
intangible things promote the business faster than any other promotional tool. Licensing is very
essential part of business in comparison to any other tangible things because it is very necessary
to start a successful undertaking. If an entrepreneur want to start a restaurant business than they
have to take all license regarding food product.
TASK 2
P3 Develop a proposal to launch a new venture.
Executive summary : An enterprise require to develop a innovative products which
attract large number of customers and satisfy their all demands and requirement. The restaurant
is offering Italian, Mexican, Lebanese, Chinese food according to the requirements of the
customer of their area.
Company description : An entrepreneur want to begin his small business which was
named “Delight restaurant”at the mid-way of London. For establishing this they appoint 2 -3
persons under him so that they can contribute in the working of restaurant. It target people are
adults who are going to colleges and offices because they are offering junk food.
Market analysis : Businesses perform market analysis to know the attractive and
changing factors of the particular market of the society. An restaurant should also undergone

with swot analysis of the market so that they can get informed about evolving opportunities and
threats because it directly related to business growth and success. Under this factor business also
do PESTLE analysis in order to understand the external environment.
Strength : Location and uniqueness in their product is the biggest strength of new venture.
Weakness : Have inadequate fund to appoint skilled employees.
Opportunities : There are many shopping complex near delight restaurant which attract large
number of customer.
Threats : The most popular threat in restaurant business is competition. There are various other
threats also present which affect undertaking like rise in the price of raw material and land rate.
Financial projection : Planning on the financial projection of the business is the
important part of undertaking. In simple words its a anticipation of future expenses and revenues.
An restaurant business have to develop a short and mid term financial projections. It includes
various things in the start up business like cash flow, income statement , break even analysis and
depreciation of small business (Curley and Formica, 2013).
Benchmarking : Benchmarking is the process of evaluating the performance of
organisation product and services with another business in the industry who are best. A
restaurant business should understand that they have to provide better services and product in
comparison to the rival firm of their industry. They wish to provide a product which is unique in
the market having different ingredients and taste.
Illustration 1: swot analysis,2012
Text 1: source : swot analysis, 2012

P4 Assess the skills and capabilities to start a new business venture.
An individual cannot start a business by having a resource and idea. Successful
implementation, skills and knowledge is an essential part through which various activities are
carried out in the business.
Capability to manage funds : An entrepreneur should know how to mange the funds
otherwise they have to face many problems. Fund is necessary but its utilisation should be
known by a businessman. If the person have abundance of fund but they don't know how to use
it in effective manner. In a restaurant business is very essential that fund is managed in the
various activities . They should know which raw material should be purchase to develop a better
product and save cost of an organisation (Valdez and Richardson, 2013). An entrepreneur should
contain the knowledge and skills of maintaining fund so that it will benefit the business by
incrementing the profit margin.
Leadership : It is very necessary that entrepreneur have the leadership skill. Otherwise
they are not able to motivate their staff for the best performance. The growth of the business
depend on the productivity and services of the man force. In the restaurant business entrepreneur
should contain the leadership skill because they has to encourage and guide their staff about their
working. Leading the individual does not mean that they control their behaviour, it is guiding
them so that they can express their suggestions and concern to them. If individual want to run a
successful business than they have to learn or develop a leadership skill. An entrepreneur should
know how to get work done through employees but not by dictating them. A person can become
a good leader by maintaining a good relations with their staff and analysing their problems.
Presentation : An individual or business person should concentrate on their presentation.
It is a basic matter on which customer get attracted to the organisation. An individual or
entrepreneur should concentrate on their skills and internal and external environment of the in
order to increase their sales and profit. (Jang and Danes, 2013) . There are many people in
society who can't speak and present them due to this factor various times they are consider
wrong. In a hotel industry presentation is must in the case of the appearance of hotel and the
food. They should know how to inform the customer about the product. In order to attract people
a platter should be presented in an appropriate way . The employees of restaurant and food
sector can develop a presentation skills by seeing others in same trade through personally visit or
by seeing online videos. In today time anything can be learned if you really want to learn it.

TASK 3
P5 Explain different promotional activities which was undertaken to establish an enterprise.
There are various promotional activities which business undertake to make it business
popular among customers.
Offline mode of advertisement : An individual can advertise their services or product
with the help of newspaper, radio, magazines so that people can know about the company's
product (Hantman and Gimmon, 2014). There are many people in the society who are not active
on social media like old age people and child for them this type of advertising is beneficial as
they remain informed about various factors of the society. Generally people get information
about the new restaurant through the radio and mouth publicity.
Brochures : It is a cost effective method to provide a variety of messages and
information regarding to launch a new restaurant as a business venture. They can distribute their
brochures at various places to inform the people. By using effective template it helps to attract
more and more customers. Also, by using low cost business can able to capture eyes of
consumers and influencing through providing offers on a food and beverages to attract
consumers. Basically, it helps in to promote a business, it is convenient as it can easily transfer
and movable from one place to another.
Mobile application : The restaurant can promote their business on the online websites
and apps like zomato , food panda where they can inform customer about their product. In today
time mobile is the popular medium through which individual get connected with each other. Due
to this restaurant get connected to large number of masses by the help of this type of food
application.
Social media marketing : There are many companies like burger king or hardy 's which
are very popular in the current generation because they are existing on the social media platform.
Instagram is the biggest platform through which food and beverages promote their product. The
society people love to post pictures and commented on the food images. (Robb and Watson,
2012). An entrepreneur should use this medium to promote their product as people love the food
pictures and get attracted to its offer.
Blogging : Blogging is the process through an individual or firm share their information
or perceptions regarding their products and services. A entrepreneur can do blogging of their
product before and after launching a product so that customer get informed about the restaurant

product and services. The individual can put their blog on the social media platform such as
twitter , Instagram and Facebook (MacMillan and Day, 2011). The main aim of blogging is
multiply the customers and create a good image. It is not essential that business owner personally
do blogging of the product they can or hire some professional food blogger to write about the
company product. Through the help of these kind of activities business can make strong presence
in the market. In today time educated people are attracted to the popular writing of any
professional blogger for the food. To target these types of customer business can use blogging. .
P6 Create a promotional activities plan before launch and after launch.
Individual working was not limited to generating idea and allocating funds, they have to
carry many activities in order to sustain and grow. An entrepreneur should perform promotion
activities before launching a business and after launching to attract customers. Promotion is the
continuous process which business have to perform in order to remain longer in the society.
Pre launch promotional plan : At the time of launching a project business promote
itself through creating banners and attractive tag line like coming soon at the premises of
restaurant. These kind of activities should be done in a proper way so that customer generate
curiosity in them related to our working (Bridge and Hegarty, 2013). They can distribute their
brochures in near by area and to the adults who prefer eating new type of food. They can
promote their arrangement through passing its information at various people through the use of
social sites.
Post launch promotional plan : After launching a business can promote it by offering a
low price product and good quality product so that customer visit the place . At the time of
provide a low cost product business owner should put concentration that it will not compromise
with the quality. They love their food when they find it at affordable price with good quality
services. An entrepreneur can organise lucky draw facility in their stores so that customer induce
to visit the place. It can be form of the complementary dish or the next time 30% off or less on
the total bill generated (Jervell, 2011).
An individual can also do promotion by furnishing a 20 -30% discount to the first 100
customers which induce customer to visit the premises in place of going to another place. All the
above promotion activities help business to retain and create new customers.

TASK 4
P7 Prepare an monthly cash budget for the pre-launch phase of the venture.
Cash budget is prepared to estimate the cash inflow and outflow of the enterprise for a
particular period of time. The company prepare budget to know whether they have enough cash
for operating their activities or not. An entrepreneur prepare the cash budget for his restaurant
business either by own or from external body (Baron and Tang, 2011). They prepare this to
estimate the firm's future cash position. It helps an individual to know cash receipt from different
sources and cash disbursement on the monthly basis for upcoming future.
Cash budget of Dream Delicious restaurant before launch
Cash
Flow
budget
Particular
s (2018) Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
Cash
inflows
Investment 6000
Credit
sales 2000 3000 3000 4500 1500 3500 4200 1000 2000 800 1200 1500
Total
inflows 8000 3000 3000 4500 1500 3500 4200 1000 2000 800 1200 1500
Cash
outflows
Fixed :
Equipment
’s 2000 2500 1500 2000 1200 1500 800 200 300 100 600 300
Variable :
Direct
material 300 300 200 300 150 500 300 400 500 100 100 400
Total 2300 2800 1700 2300 1350 2000 1100 600 800 200 700 700

outflows
Net cash
flow 5700 200 1300 2200 150 1500 3100 400 1200 600 500 800
Opening
balance 0 5700 5900 7200 9400 9550
1105
0
1415
0 14550
1575
0
1635
0
1685
0
closing
balance 5700 5900 7200 9400 9550
1105
0
1415
0
1455
0 15750
1635
0
1685
0
1765
0
Cash budget before 12-18 months
Particular
s(2017) Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
Cash
inflows
Investmen
t 8000
Credit
sales 1200 2000 7500 3000 5000 6500 1200 3200 1500 8200 1250 3210
Total
inflows 9200 2000 7500 3000 5000 6500 1200 3200 1500 8200 1250 3210
Cash
outflows
Fixed :
Equipment
’s 2500 1200 1500 2500 1100 1500 1200 600 500 500 1200 700
Variable :
Direct
material 350 300 250 150 100 500 500 250 450 250 1300 500
Total
outflows 2850 1500 1750 2650 1200 2000 1700 850 950 750 2500 1200

Net cash
flow 6350 500 5750 350 3800 4500 -500 2350 550 7450 -1250 2010
Opening
balance 0 6350 5850 11600 11950 15750
2025
0
1975
0 22100 22650 30100
2885
0
closing
balance 6350 5850 11600 11950 15750 20250
1975
0
2210
0 22650 30100 28850
3086
0
P8 Suggest an appropriate legal form for the venture.
There are various legal forms on the basis of which business carry out its working. Every
legal form have its rules and regulation formulated by the government which business have to
follow when they adopt any of them (Ciabuschi, Perna and Snehota, 2012). A firm chooses a
legal form in order to make important judgement of how a enterprise structure its resources and
assets. Usually people choose either sole proprietorship , partnership and limited liability on the
basis of their business needs and structure. A delight restaurant can choose any of this form in
their business but firstly they have to understand each types of entity properly with their merits
and demerits.
Sole proprietorship : In the sole proprietorship there is one owner who is responsible
for carrying out all activities of the business (Osiri, 2013). It is form which is simple and
inexpensive to develop in a business. In this, owner contain profit or loss whatever happens in
the business. The major drawback of this theory is that in this individual personally liable for
paying debts of the company.
Partnership : In partnership two or more person combines their resources and skills in
order to open and operate new venture. It very simple and inexpensive, which induce persons
tom adopt in their business. Profit or loss is shared in the business on the basis of their share of
ownership. The disadvantage of this method is that partners are personally liable for paying
debts.
Limited liability company : In this owner liability is limited for paying organisation
debt. Profit and loss is shared among the individual on the basis of their ownership. The major
Disadvantage of this method is that it is more expensive than sole proprietorship or partnership.

For the delight restaurant partnership business is best so that they can share risk factors
with other owners of the organisation. In the food business there is lot of uncertainty because of
the presence of large number of competitors(Xie and Lv,2016). It is beneficial for the business
that profit and risk are shared. For such of new ventures partnership firm is appropriate.
CONCLUSION
There is discussion about the various factors which entrepreneur have to consider while
starting a new business venture. Through the help of this project entrepreneur able to make the
plan and strategies for successfully launch a new venture. It highlights various promotional
activities which organisation can undertake before launch and after launch such as high quality
and discounts. An restaurant can take several promotional activities at a time in order to make
their product popular. An individual should have numerous skills and capabilities such as
presentation ,managing fund etc. to effectively run the food business. It also put light on the cash
budget which organisation require to carry out day to day activities and future needs.

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