Report: Launching BioChem - A New Venture in the UK Beauty Market

This report details the launch of 'BioChem,' a new venture focusing on organic beauty products in the UK market. It begins with an introduction to new ventures and market research, specifically targeting the UK market, and includes a competitive analysis. The report outlines the tangible and intangible resources required, such as physical, human, and technological resources, alongside customer relationships and software. A credible proposal for launching the venture is presented, covering product development, pricing, and competition analysis. The report also assesses the skills and capabilities needed, like managerial, decision-making, and leadership skills. It explores promotional activities such as social media, mobile billboards, personal promotions, event hosting, and relationship building, justifying their choices. Finally, the report includes a detailed monthly cash budget for the pre-launch and first 18 months, and suggests an appropriate legal form for the venture, concluding with a summary of the key findings and a list of references.

Launching a new venture

Table of Contents
INTRODUCTION......................................................................................................................3
TASK 1......................................................................................................................................3
P1 Investigate and explain a new venture identifying specific target markets and
undertaking competitive analysis...........................................................................................3
P2 Determine specific tangible and intangible resources that would be required for the
launch of a new venture.........................................................................................................4
P3 Produce a credible proposal to launch a new venture.......................................................5
TASK 2......................................................................................................................................6
P4 Assess the skills and capabilities required to launch a new venture and how they are
acquired or developed............................................................................................................6
TASK 3......................................................................................................................................7
P5 Explain different promotional activities and channels that will support the launch and
justify their choice..................................................................................................................7
P6 Develop an appropriate promotional activity plan for both launch and pre-launch.........8
TASK 4......................................................................................................................................9
P7 Produce an itemised monthly cash budget for the pre-launch phase of the venture and
the first 12–18 months preceding launch...............................................................................9
P8 Suggest an appropriate legal form for the venture stating why it has been....................12
CONCLUSION........................................................................................................................12
REFERENCES.........................................................................................................................13

INTRODUCTION
The business ideas which can be put so as to initiate a new business are termed as
starting a new venture. This can be made possible only when a new idea is emerged so that
can be developed in a proper manner and customers can be attracted. The management is
required to focus on research so as to determine market need and then introduce innovation in
a new product accordingly. As the market research is important so as to recognise market and
customer’s needs and gives path to product innovation. This report is based on a new venture
of ‘BioChem’, which a new venture of organic beauty products and the business is starting in
UK. Under this report various aspects is taken which are required to launch a new venture.
(Aragon-Mendoza, del Val, and Roig-Dobón, 2016)
TASK 1
P1 Investigate and explain a new venture identifying specific target markets and undertaking
competitive analysis
Venture idea:
BioChem is a new venture which is incorporated in London, UK and the main product
stream of the venture is chemical free bio natural sunscreens, facial creams and nigh creams
and many more. Company is going to start their business in various areas of UK and they are
having favourable response from public. With the help of market research the company
analysed that market demand of natural products are high so decision is taken for this
venture. After researching their product got success into the marketplace which leads them to
earn profit during their initial stage only. (Diakanastasi, Trachana and Karagiannaki, 2017)
It is vital for entrepreneur so as to gather relevant information which is advantageous
for the venture with the purpose to attain success. Entrepreneur has started partnership with
their friends which are having experience in the market so as to take help in business
expansion. With the help of the partners of existing market the company will have high
chances of market growth and success. The entrepreneur has occupied 200squre feet land in
London and the initial capital of 200000-300000 pounds. For the purpose of arranging funds
they took bank loan as their source of funds.
Objective: The entrepreneur is willing to develop SMART objectives which are
elaborated as under:

 Specific: The market of London is the main focus so as to attain their business
goals.
 Measurable: They are emphasised on focusing 50% market of London.
 Achievable: Their major product range is natural face creams, sunscreen and
night cream.
 Relevancy: They had developed their presence in so many areas of UK.
 Time bound: The given objective is to be achieved within a time gap of 12
moths.
Target market: The market is segmented on the basis of demographic, geographic and
behavioural segmentation, and they found the most suitable segment as geographic segment.
SWOT analysis of product:
Strength Opportunity
With the help of organic product, awareness
can be spread in the marketplace.
The current market is having opportunity to
expand business in natural product as
customers are prone to but such products.
Weakness Threat
Organic products are slightly costly in nature
so this can create a problem.
Lack of control may arise in the business
process.
P2 Determine specific tangible and intangible resources that would be required for the launch
of a new venture.
Resources of the new venture are classified into two categories which is tangible and
intangible. With the reference of BioChem they are selling natural products such as creams
and many more so the available resources are explained as under:
Tangible resources: Tangible resources are those resources which have a physical
presence within the business and they give benefits to the business. Some of the tangible
resources are explained as under:
 Physical resources: These are the resources which are most essential for BioChem
and help the business in their functions. With the help of these resources the
operation of distribution and sales becomes easy in the marketplace. (Matama, 2017)

 Human resources: This involves the employee and other workforce which are
working in the business so as to achieve business goal. The current objective of
covering 50% market of London by end of this year. So they are hiring candidates for
selling purpose. (Khan and et. al., 2018)
 Technological resources: These resources are technical support over the business by
which new technology can be adopted in the business due to which waste can be
minimised. In BioChem, they are required to use such technology due to which they
have least waste this will enhance their profitability.
Intangible resources: These are those resources which can’t be seen but they
have special identification within the business. These resources are helpful in
enhancing standard of the business. Some of the intangible resources f BioChem is
mentioned as below:
 Customer list and relationship: This is required from each and every
business to maintain proper relationship with their customer so as to have
growth in the business. As in context of BioChem, the business is required
to inhale goodwill within the market by obtaining huge customer base.
This will help them to get edge in the market and provide them
identification within marketplace. (Li, 2017)
 Software: Software are those resources which are helpful in identifying
market needs and with the help of this BioChem will be able to perform
market research due to which segmentation and product positioning can be
made better. (Chernova, Matveeva and Mikhalkina, 2018)
P3 Produce a credible proposal to launch a new venture.
In the context of BioChem the discussion of credible proposal plan is mentioned as
below:
Title: “BioChem” is launching beauty products which are 100% natural and free from
parabens.
Overcome from problem: As in current scenario the market is not having as much
sellers of natural products as per their needs. So once a company starts their business in this
sector they will be able to attract more customers. This enables the company to target those
customers who are prone to use natural products and to stay healthy.
Final proposed new product/service: There are huge numbers of companies which
are manufacturing beauty products but they may harm skin of individual. So BioChem is

introducing creams which ara parabens free and vegan so this will not harm anyone’s skin
and provide them soft and glowing skin.
Time Planning for Your New Product Services: For proper execution of plans,
various strategies are required to be implemented by the business. With the help of new
strategies effective planning can be progressed due to which this becomes easy for BioChem
to execute their plans in an effective manner.
Pricing Planning: It is considered that organic products are comparatively high in
prices. So as in context of BioChem, the company is having high pricing as in compare to
other companies as they are having high costing of their products so they are required to put
high prices to earn profits.
Analysis of Competition: In order to analyse market competition the company is
required to analyse the market and establish benchmarking so as to stay in the competition.
As in context of BioChem, the venture is comparing their performance with other companies
in the same industry so as to enhance their processes and their operations.
TASK 2
P4 Assess the skills and capabilities required to launch a new venture and how they are
acquired or developed.
The role of entrepreneur is to identify skills and capacities in themselves. So in the
process of starting of new venture it is required by BioChem to use their skills and
capabilities in an effective manner. Some of the skills are elaborated as under:
Managerial skills: It is necessary for the entrepreneur to manage and control all the
activities within a business. Further entrepreneurs are required to use their procured resources
in an efficient manner. In context of BioChem, if high efficiency is introduced in the venture
then all the operation can be managed in a sequential manner.
Decision making skills: These skills are associated with taking decisions which are
required by business in their crucial times. In context of BioChem, the company is supposed
to take such decisions which are for welfare of their employees and their business. These
skills can be improved if entrepreneur will be able to deal with composite problems.

Leadership skills: Leadership skills are required to be grown in entrepreneurs so as
to manage and monitor their sub ordinates and to properly delegate functions to each and
every person. In BioChem it is required by the entrepreneur so as to adapt some leadership
traits such as communication skills, coordination in their business so as to achieve their
mission and objectives.
Risk taking ability: As in context of BioChem they are new in the market so it is
required by them to take risks and such decision which may be risky for them such entering
in a new market which is not their target market but can provide them sales. By this they will
be having some complex situation in which they are supposed to survive for their longer
growth.
Research skills: It is required by BioChem so as to research the market and
understand market needs so that to launch their product in that market where they can capture
huge customers. With the help of online survey they may get to know about market change
and then implement those changes into their product so as to attract customers and position
themselves into the market.
TASK 3
P5 Explain different promotional activities and channels that will support the launch and
justify their choice.
In order to aware the customer about product od BioChem, the company is required to
use some promotional activities so as to position themselves within the marketplace. Some of
the methods used by them are explained as under:
 Social media: With the help of this mode, customers from different age group can be
attracted towards products of BioChem who are having interest in natural beauty
products. Facebook, Instagram and many more modes are included in this channel.
(Zolkifly, Yusof, and Baharom, 2017)
 Mobile billboards: Under this various logos and punch lines are required to be
prepared so as to attract customer towards the product which are offered by
companies. This is a cheap method so can be used by new ventures such as BioChem.
 Personal promotions: Under this form of promotion customer are reached directly
and promotion is executed with the help of pamphlets, brochures and other modes.

Here a personal seller or executive directly interacts with the customer so as to attract
them to buy their products.
 Hosting events: Under this method an event is hosted by the company under which
demonstration of their product is given and various offers are given to the public who
are present in that event. This will help BioChem in spreading awareness about their
product and to promote their product to the public at a large.
 Developing relations: Under this method feedback is taken from the customer about
their experience and any required alterations in the product. As BioChem is a new
venture so this method will help them to gain customer satisfaction and high goodwill
in the market within short span of time. (Singh, 2016)
P6 Develop an appropriate promotional activity plan for both launch and pre-launch.
In order to reach out to huge customer it is required to use efficient promotional tools
so as to position their product in considerable manner. In this context BioChem is launching
promotional events before and after launching:
Pre-launch promotions:
It is significant for the business to use various verities of promotional tools which can
build curiosity in the customer and attract them. In the context of BioChem, they are using
hoardings that represents the benefits of organic products and their features,, this will attract
the customer in a very decent manner and influence their buying decision in future. Tagline
used by the company is ‘Let’s bloom with Nature’, this assist the business in having new
customers by which optimum outputs can be attained by the business. (De Jong, 2016)
Launch promotions:
In launch promotions various tools and activities are taken by the business so as to
make aware the customers and to attract more and more customer towards their products. in
launch, promotional tools are different as compared to pre-launch as in launch promotions
various methods such as social media marketing can be utilised so as to trace customer’s
needs and demands and satisfy those needs in considerable manner. With the help of these
tools fierce competition can be survived by the venture. (Otubor and Christopher, 2017)
All the promotional events play significant role in creating brand loyalty in the market
as they will come to know that the product is value for the money or not. Due to existence of
large competitors, this is the most difficult task for the companies. Before launching, macro
and micro factors are required to be analysed so that to take out effective results and outputs.
With the help of these promotional events, sustainability can be achieved by the business and
goodwill can be enhanced in marketplace.

TASK 4
P7 Produce an itemised monthly cash budget for the pre-launch phase of the venture and the
first 12–18 months preceding launch.
Cash budget is the procedure where estimation of cash requirements is written and
forecasted in the business (Elmendorf and Sheiner, 2017). This helps the business in knowing
their actual cash position and to deal with some unforeseeable contingencies. Cash budget has
been prepared during the time period of 12 to 18 months:
Pre launch cash
budget
Cash Flow
budget
Particulars Jan Feb Mar Apr May June
Cash inflows
Investment 8000
Credit sales 2000 3000 3000 4500 1500 3500
Total inflows 10000 3000 3000 4500 1500 3500
Cash outflows
Fixed :
Equipment’s 2000 2500 1500 2000 1200 1500
Variable :
Direct material 300 300 200 300 150 500
Total outflows 2300 2800 1700 2300 1350 2000
Net cash flow 7700 200 1300 2200 150 1500
Opening
balance 0 7700 7900 9200 11400 11500
closing balance 7700 7900 9200 11400 11550 13000
Particulars July August September October
Novembe
r
Decembe
r

Cash inflows
Investment
Credit sales 4200 1000 2000 800 1200 1500
Total inflows 4200 1000 2000 800 1200 1500
Cash outflows
Fixed : Equipment’s 800 200 300 100 600 300
Variable : Direct
material 300 400 500 100 100 400
Total outflows 1100 600 800 200 700 700
Net cash flow 3100 400 1200 600 500 800
Opening balance 13000 16100 16500 17700 18300 18800
closing balance 16100 16500 17700 18300 18800 19600
Post launch cash
budget
Particulars Jan Feb Mar Apr May June
Cash inflows
Investment 8000
Credit sales 1200 2000 7500 3000 5000 6500
Total inflows 9200 2000 7500 3000 5000 6500
Cash outflows
Fixed : Equipment’s 2500 1200 1500 2500 1100 1500
Variable : Direct
material 350 300 250 150 100 500
Total outflows 2850 1500 1750 2650 1200 2000

Net cash flow 6350 500 5750 350 3800 4500
Opening balance 0 6350 5850 11600 11950 15750
closing balance 6350 5850 11600 11950 15750 20250
Particulars July August
Septembe
r October
Novembe
r
Decembe
r
Cash inflows
Investment
Credit sales 1200 3200 1500 8200 1250 3210
Total inflows 1200 3200 1500 8200 1250 3210
Cash outflows
Fixed : Equipment’s 1200 600 500 500 1200 700
Variable : Direct
material 500 250 450 250 1300 500
Total outflows 1700 850 950 750 2500 1200
Net cash flow -500 2350 550 7450 -1250 2010
Opening balance 20250 19750 22100 22650 30100 28850
closing balance 19750 22100 22650 30100 28850 30860
Explanation of Outflow Of Cash: It is seen that most of the cash outflow is at the time of
beginning of the venture and at the time of purchase of machinery. So the main cash outlay is
at the time of buying equipment and machineries for initiation of business. Machineries and
equipment are purchased so as to produce goods and products for sale purpose. Further
material are needed so as to produce creams which are the core product of BioChem.
(Baskaran and et. al., 2016)

P8 Suggest an appropriate legal form for the venture stating why it has been
There are different modes under which business can initiate their operations. This
depends on the investors that on which kind of business they are willing to invest so as to
earn profit and meeting business goals. The entrepreneur of BioChem is required to gather
knowledge about various forms of business legal forms which are explained as under:
Sole trader: Under this type of business all the decision regarding operations of business are
taken by a single person without discussing them with another. In this form government is
having very limited intervention so that this is the most famous and easy legal form. The risk
and rewards are shared by the owner only without any interventions. (Lin, Chen and Lin,
2018)
Corporations: These are those business entities which are working at a large scale with the
motive of earning profits. This type of legal form does have limited investment and liabilities
as well, so investor is not required to take headache about their money. Corporations are
required to comply companies’ law so as to stay updated with all the laws and regulations.
(Cheng, 2016)
Partnership firms: These are having more than one partner and they are bound with
the agreement under which all the terms and condition regarding profit and loss sharing and
other information are written. The main motive of this form is to share profits and losses with
other partner so as to minimise risk factors and have business sustainability.
So it can be concluded that BioChem should opt for partnership as their business
initiation in UK. As this form is having minimum legal requirements so this will be easier for
them to initiate their new venture into the marketplace. By this they will not face any
interruptions in their business and they will have high capital invested so as to operate their
functions.
CONCLUSION
From the above report it can be deduced that in order to start a new venture, needs of
the customers are required to be analysed in an appropriate manner so as to have distinct and
high brand image. The entrepreneur is required to analyse all the macro and micro factors of
the market so as to select the most appropriate promotional tools and the bets location for the
business. In order to stay in the competition skills and capacities are required to be evaluated,
this will provide special market edge to the business and high sustainability. With the help of
proper budget allocation the entire business requirement can be met efficiently which will
provide advantages to the business.