HND Business - Launching a New Venture Report, Semester 4

This report details the process of launching a new bakery venture named "Sweet & Spicy." It begins with an introduction highlighting the importance of entrepreneurship in today's economy, followed by an investigation into identifying the target market and conducting competitive analysis within the London market. The report then assesses the tangible and intangible resources required, including financial capital, equipment, and intellectual property. It includes a credible business proposal, outlining the company's description, market analysis (SWOT and PESTEL), financial projections, and benchmarking. The report also examines the skills and capabilities needed for entrepreneurs, such as risk-taking, leadership, and project management. Furthermore, it explores promotional activities, developing a plan for both pre-launch and launch phases, and includes a monthly cash budget for the pre-launch period. Finally, the report considers the appropriate legal form for the venture, offering a comprehensive overview of the planning and execution required for a successful new business launch.

Launching A New
Venture

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Investigation of new venture for identifying specific target market.................................1
P2 Specific tangible and intangible resources that required for a new venture......................3
TASK 2............................................................................................................................................3
P3 Credible proposal to launch a new venture.......................................................................3
P4 Skills and capabilities required to launch a new venture..................................................4
TASK 3............................................................................................................................................5
P5 Different promotional activities and channels for launching new venture.......................5
P6 Develop an appropriate promotional activities plan for both launch and pre-launch.......6
TASK 4............................................................................................................................................7
P7 Monthly cash budget for the pre-launch phase.................................................................7
P8 An appropriate legal form for the venture.........................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
As per changes in technology and stability of economy, it has become easy for
entrepreneurs to open their new businesses in a competitive area easily. But opening a new
venture is not an easy task for a person as it requires various skills and knowledges. It will help
them in handling operational activities and situations which occurred on the basis of growth,
culture, ethics and more in an easy way (Ghimire and et. al., 2015). Entrepreneurs are needed to
develop innovative ideas as well as set achievable target so that business can be launched in an
appropriate manner. In context with this, present report is based on a new bakery shop named by
Sweet & Spicy. Entrepreneur is going to start this business in the city of London, UK. This firm
will have produces a wide range of food items like savouries, pastries, biscuits and more. Thus,
proper analyse of market conditions, expectation of customers along with tangible and intangible
resources are discussing in this report.
TASK 1
P1 Investigation of new venture for identifying specific target market
Sweet & Spicy, is a new venture which is going to be launched soon in a populated area
of London. It will serve fresh bakery items like cakes, burgers, cookies, sandwiches, patties, ice-
creams and so on. The main motive behind opening this outlet in a competitive and highly
populated marketplace is that it becomes easy for attracting minds of people towards wide range
of fresh eatables. It will help in delivering services and facilities to them in a profitable manner.
In order to get attention of customers, this firm will have attractive interiors, table-corners, good
space for small parties and more (Liao and et. al., 2016). Therefore, in this regard a small plan
for new venture has been discussing below:-
In order to open a new outlet as named by Sweet & Spicy, entrepreneur needs an area of
space of 1500 sq.ft in London Street. This space must be available in such market area where
many competitors are present as it will help in selling commodities in a vast manner. In addition
to this, business tycoon hire this shop for three years on lease with one year advance. For
launching this business in a desired manner, owners have to arrange proper funds which is near
about £ 3,50,000 to £4,00,000.
Objectives:
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 The main objective of this bakery is to serve fresh and nutritive quality of eatables to
customers.
 Create good reputation in market place.
 Enhance brand image, productivity and profitability of business.
 Aims to occupy a large market share and give tough competition to established
Bakeries.
Mission: “To serve fresh, organic and nutritive baked food items to customers for
satisfying their desires in a healthy manner”.
The marketplace where entrepreneur is going to launch business has covered with many
competitors so, owners are needed to have new and innovative ideas. In addition to this, for
achieving goals and objectives, some major criteria where they need to be focused more on are
as follows:
Identifying specific target market: It is the most essential step on which entrepreneurs
are needed to be considered while making a proper plan. It defines the targeted area where new
outlets can be run in profitable manner (Pan and et. al., 2016). This would help business tycoons
in understanding needs and desires of people living in a particular area. Through this process,
they can serve their qualitative products as per demand of customers and satisfies needs of them
in an efficient way. In addition to this, by identifying particular target market, support owners in
analysing behaviour of customers also which includes income level, status, taste, lifestyles and
more.
Competitive analysis: This factor also holds its importance in opening a new venture. It
will help in analysing the factors which affect business in both positive and negative manner. It
includes strategies and policies used by competitors who are selling same commodities in similar
market area. It aid entrepreneurs to develop better strategies and plans in order to gain high
competition and gain large share in marketplace (Paradkar, Knight and Hansen, 2015). In
London Street, main competitors for new ventures are Primrose, Cake Street, PAUL Baker, The
Hummingbird Bakery and more. Therefore, owners of Sweet & Spicy Bakery need to make
creativity in business idea and provide better services to clients.
P2 Specific tangible and intangible resources that required for a new venture
In opening a new venture, an entrepreneur used to make a proper plan by arranging
resources which are required in establishing business in a proper way. For this desired purpose, it
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is necessary for owners to arrange proper funds (Tangible Vs. Intangible Resources. 2017). This
would help in operating business activities in a proper way. In Sweet & Spicy Bakery, this firm
wants to serve high qualitative and fresh food items such as ice-creams, shortcakes, Scones and
coffee, Mince pie and more eatables. In to attract more customers, it will serve these
commodities on affordable and less price as compared to other bakeries. In addition to fulfil
these requirements, some tangible and intangible resources are:-
Tangible Resource: It includes physical items like plants, machineries, tools,
equipments, and other physical materials. In establishing a bakery, owners need to arrange
proper building area, lands, cold storage rooms, refrigerators, microwave and oven for baking
items and most important capital.
Intangible Resources: This type of resources includes several components like patents,
goodwill, trademarks, culture and customer relationship etc. which have no physical existence. In
addition to this, for protecting own ideas as from other competitors, entrepreneurs are needed to
use IP such as copyrights, trademarks and more. It will help in securing own creative and
innovative thoughts in a more easy way.
TASK 2
P3 Credible proposal to launch a new venture
A business proposal aid a firm in determining cost of production and entire activities
need to launch a new venture in a perfect way. Through this, entrepreneurs can take effective
decisions regards to run business successfully (Pan and et. al., 2016). Generally, this type of
proposal is made by consultancies which help owners in giving all information related to
business activities, requirement of finance, place and more, through which they can arrange
necessary funds and achieve objectives of a company. In this regard, a business proposal has
been given below for Sweet & Spicy Bakery:-
Executive Summary Sweet & Spicy Bakery is currently dealing with baked products,
beverages and desserts like cookies, Arctic roll, Eton mess, Gypsy tart,
Tapioca and more.
Company description An entrepreneur is coming up with a new fresh and innovative idea to
open an outlet Sweet & Spicy Bakery. This shop will serve organic and
healthy eatables in London Street of UK. It will take a shop on leave for
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three years along with one year rent which is of 1500 sq.ft. Many
competitors are running their business in same marketplace as it covers
a large populated area so, it will help in generating more and more profit
for new ventures.
Market Analysis To gain attention of more customers, it is necessary for entrepreneurs to
make effective planning and strategies. It will help in running business
in a profitable manner (Liao and et. al., 2016). In this regard, owner is
need to properly analyse condition of marketplace as well as position of
other companies who are dealing in same sector. For this determination,
SWOT and PESTEL techniques are recommended.
Financial projection Without proper funds, a person cannot open an new outlet in desired
manner. Therefore, owners of Sweet & Spicy need to arrange adequate
amount of funds as well as formulate proper budget. It aid them in
making proper decision regarding expenditure so that wastage of money
can be reduced.
Benchmarking In this, owner consider benchmark by setting standards of the work in an
effective way. It will support in ensuring about the customers or
employees that they are performing every tasks according to set
benchmarking with comparing it.
P4 Skills and capabilities required to launch a new venture
For opening a new venture, it is required to bring innovative thoughts and creativity
through which ideas can be turned into business concept. In this process, a person needs to gain
high skills and abilities as well as utilise them in a proper way (Kuratko and Hoskinson, 2016).
It will support them in achieving set target and mission in a proper way. Some essential skills
and capabilities are given below which needs to be have in business tycoons are:
Risk taker: The business owner should be prepared in order to face any type of risk
which are affecting their business operations. There should be plans and policies formulated by
which firms can enhance their overall sales and profitability index. Sweet and spicy Bakery are
launching their product in most effectual manner by formulating plans and policies which are
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beneficial for them in order to achieve growth and achieve the targets in desired time frames.
Owner of this company have taken risk to launch store in a particular market where many
bakeries are already present. In order to grab attention of people, it offers a wide range of bakery
items on discounted offers.
Leadership skills: It is an important skills that needs to be a person have in organisation.
As many persons are associated with a single business, therefore, various types of situation can
be occurred on daily basis (Koirala and et. al., 2016). So, entrepreneurs are needed to gain high
leadership qualities through which they can engage all people with goals and objectives of a
company. Along with this, it will aid in motivating people at ventures and boost their morale up.
This will support them in increasing productivity and profitability of business in a high manner.
Through effective leadership qualities store managers of Sweet and Spicy Bakery influences
other workers to give best services to customers. They have adopted democratic style of
leadership and allow staff members to work in own manner to get high satisfied customers. This
would help in getting cooperation of workers in running bakery more efficiently.
Presentation of proposal: This is the most vital component as there is requirement of
effective presentation of the plans and procedures so that employees can carry out the working
according to set business goals and objectives. Therefore, business owner of Sweet and spicy
Bakery have to analyse the business ideas before implementing them in order to achieve growth
and success in their operations. In this regard, through effective presentation skills, managers of
this bakery can influence stakeholders to give support in opening their bakery. By getting
approval on proposal, owners of this bakery can influence investors to make investment as well.
Project management: Through this quality, a person can evaluate preference of
customers and their taste easily by conducting proper surveys in a particular area where new
venture wants to open business. In addition to this, for achieving target of business, they should
formulate effective strategies so that a project can be completed on time. For this process, having
managerial skills, managers of Sweet and Spicy Bakery can make proper management plan to
open store. This plan includes in what manner team-members have to conduct research to
analyse the need and demand of people regarding bakery items.
Marketing and customers service: In order to aware customers about new venture and its
products, an entrepreneur needs to use effective marketing techniques (Khan and et. al., 2015). It
help in promoting brands of company in a large market area and attract minds of people towards
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the same. Along with this, in outlets they should provide high customer service and complete
demands of them on time. In order to search need, preference and demand of potential
customers, managers of Sweet and Spicy Bakery have adopted effective marketing techniques. It
includes social networking sites like Facebook, Instagram and more, where staff members of this
bakery can make connection with potential customers. They can aware people types of products,
offers and special discounts on particular day. This would help in enhancing sale performance in
effective manner.
TASK 3
P5 Different promotional activities and channels for launching new venture
Marketing is an important activity of every type of organisation through which they can
promote products or services of them in higher manner. Marketers in a company use various
tools and techniques for creating awareness in people. It helps in attracting large number of
customers towards its products or services and convince them to buy the same. In context with
Sweet & Spicy, marketing department of this association use various sources of advertisement
like through distributing pamphlets in newspapers and by marketing on sites of social media, like
Facebook, Instagram, Twitter or by creating own websites. In addition to this, slogan of present
company also help in attracting minds of customers. Some promotional activities used by this
venture are:-
Direct marketing: In this section, entrepreneurs used to sell products or services directly
to customers by calling them through mails and websites (Ke and et. al., 2016). Therefore, by
selling commodities directly to people helps in gaining revert or feedback of them. Through this
process, they can make modification as per feedback of consumers.
Online marketing: In modern era, this technique is used by all organisations in
promoting brands. As this method is useful in creating awareness of products or services of a
company in a short period of interval. Along with this, through online marketing, customers can
get detail of every product in a proper manner which includes ingredients, price rates and more
as well as can place their orders easily.
Therefore, Sweet & Spicy Bakery use both methods to marketing its products in a large
area of marketing place. In addition to this, if any customer places order through calls or online
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technique then this outlet provide the same by offering free delivery services as well as in limited
period of time.
P6 Develop an appropriate promotional activities plan for both launch and pre-launch
While formulating a proper business plan, it is necessary for entrepreneurs to consider
that this should include effective tools and techniques used for promoting the brand in particular
marketplace (Ke and et. al., 2015). It will support them in marketing products or services in both
pre-launching and launching of the new venture.
Pre-launch Promotions: In this criteria, owners are used to make a particular website of
own company where they promote products or services of new venture. In this regard, Sweet &
Spicy, has made a tag line as “Eat Healthy and Stay Healthy” for promoting its brand name and
attract number of customers towards eatables. It marketing services on various application of
social sites also.
Launch promotion: This type of activity is done after launching a new venture in desired
manner in a marketplace. In this process, company focuses more on attracting a large number of
customers. They can undertake various modes of promotions for creating more awareness like
Facebook, Blogging, YouTube, Instagram and other.
TASK 4
P7 Monthly cash budget for the pre-launch phase
A proper budget plan helps a firm in determining requirement of funds needs for
operating business in an appropriate manner (Ghimire and et. al., 2015). Therefore, in this regard
a cash budget plan for opening a new venture as Sweet & Spicy is given below:-
Year 2018 Jun Aug Sept Oct Nov
Food Sales amount 42,152 42,563 43,526 43,568 44,124
Beverage Sales 19,751 12,451 12,456 13,452 14,528
GROSS SALES (Total) 61,903 55,014 55,982 57,020 58,652
COGS
Food 14,525 14,046 14,364 14,377 14,561
Beverage 6,515 3,113 3,114 3,363 3,632
GRAND TOTAL 21,040 17,159 17,478 17,740 18,193
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GP 40,863 37,855 38,504 39,280 40,459
General and
Administrative
Workers Salaries 15,476 13,754 13,996 14,255 14,663
Management Salaries 3,400 3,400 3,400 3,400 3,400
Employer
Taxes/Benefits (15%
Wages) 2,265 2,058 2,087 2,119 2,168
Employees
Compensation (6%
Wages) 1,133 1,029 1,044 1,059 1,084
Advertisement 800 800 800 800
800
Bookkeeping 150 150 150 150 150
Credit Card Charges
(1%) 619 550 560 570 587
Insurance 250 250 250 250 250
Legal and Professional
Fees 100 100 100 100 100
Misc. Other 250 250 250 250 250
Office Supplies 175 175 175 175 175
Rent 3,200 3,200 3,200 3,200 3,200
Repair and
Maintenance 300 300 300 300 300
Small Equipment 200 200 200 200 200
Telephone [phone]
Garbage 200 200 200 200 200
Utilities 1,200 1,200 1,200 1,200 1,200
Total Gen. and Admin. 29,867 27,766 28,062 28,378 28,876
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(Fixed)
NET PROFIT OR LOSS 10,996 10,089 10,443 10,901 11,583
SBA Loan 3,582 3,582 3,582 3,582 3,582
Cash Flow After
Financing 7,414 6,507 6,861 7,319 8,001
Draw 4,000 4,000 4,000 4,000 4,000
Net Cash Flow 3,414 2,507 2,861 3,319 4,001
Accumulated Cash
Flow 5,921 8,782 12,101 16,102
Average Daily Sales /
22 days 2,814 2,501 2,545 2,592 2,666
Dec Jan Feb Mar April May June
YTD
2019
44,325 44,658 45,210 45,325 46,251 46,325 47,125 5,35,152
15,574 15,487 16,421 16,251 17,452 17,245 17,845 1,88,913
59,899 60,145 61,631 61,576 63,703 63,570 64,970 7,24,065
-
14,627 14,737 14,919 14,957 15,263 15,287 15,551 1,77,215
3,894 3,872 4,105 4,063 4,363 4,311 4,461 48,806
18,521 18,609 19,025 19,020 19,626 19,599 20,013 2,26,021
-
41,379 41,536 42,606 42,556 44,077 43,972 44,958 4,98,045
- - - - - - - -
14,975 15,036 15,408 15,394 15,926 15,893 16,243 1,81,016
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