Detailed Report: Launching Bill's Reading Restaurant Venture

This report details the launch of Bill's Reading Restaurant, a new venture in London's Old Spitalfields market. It begins with identifying target markets, conducting competitive analysis, and outlining the restaurant's concept of offering a wide range of international cuisines. The report then examines tangible and intangible resources required, including property, equipment, trademarks, and brand building. It includes a credible proposal with an executive summary, market analysis, and financial decisions. The report assesses the skills needed for the venture, focusing on leadership, productiveness, and financial management. It explores promotional activities, including pre-launch and launch plans, and develops a monthly cash budget. Finally, it suggests an appropriate legal form for the venture, providing a comprehensive overview of the steps and considerations involved in launching a successful restaurant business.

Launching a New
Venture

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Identifying specific target markets and undertaking competitive analysis............................1
P2 Tangible and intangible resources that would be required for the launch of a new venture. 3
TASK 2............................................................................................................................................5
P3 Produce a credible proposal to launch a new venture............................................................5
P4 Assess the skills and capabilities required to launch a new venture......................................6
TASK 3............................................................................................................................................7
P5 Explain different promotional activities and channels that will support the launch..............7
P6 Develop an appropriate promotional activities plan for both launch and pre-launch............8
TASK 4............................................................................................................................................8
P7 Produce a monthly cash budget for the pre-launch phase of the venture..............................8
P8 Suggest an appropriate legal form for the venture...............................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
An entrepreneur seeks opportunities where they can grow and innovate things according
to the present market conditions. There are various firms that are providing same kinds of
products and services but an entrepreneur is an innovator who focuses on existing possibilities to
make their goods different from others to beat competition in marketplace. Bill's Reading
Restaurant is a cafe which offers a huge range of food items that can satisfy customer's needs.
Hence, this report consists of identifying target market and its competitive analysis. It also
comprises with tangible and intangible resources that is succeeded by credible proposal of new
venture. In addition, it also incorporates skills, capabilities of an entrepreneur which is required
to open a new venture. Further, it also consists of promotional activities for both launch and pre-
launch, monthly cash budget and legal form of venture (Baron and Henry, 2011).
TASK 1
P1 Identifying specific target markets and undertaking competitive analysis.
Background of Idea - Food is a basic need of human life but it is also considers as a
most recommended business industry that generates higher profit and income. Thus, this is the
most beneficial idea through which an entrepreneur can earn profit. Therefore, Bill's Reading
Restaurant is came in inception to not only earn money only but in order to earn profit, it needs
to provide a huge variety of food through which customers can attracts towards it. This is
inspired by the requirements and wishes of the people who are looking for different savors of
food. There are so many people who are fond of food and that's why they searches for new and
distinct taste.
It is providing a three meal course that consists of starters, main course and desserts. This
three meal plan also providing a variety of food such as Continental, Spanish, French, Mexican,
Indian, Japanese, and Italian. UK has diverse population and culture because people immigrate
there due to several reasons and looking for the taste which can satisfy their needs. Therefore,
they looks this restaurant has a wide range of cuisine that satisfies them. As these people wanted
to get food which belong to their culture. So, this is how an idea generated to launch a restaurant
for needy people to satisfy their requirements (Zhang and Li, 2010).
Bill's Reading Restaurant is a going to be opened in Old Spitalfields market, London.
This is the most crowded place in London because there are numerous supermarkets, small shops
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and boutiques are available. People can easily access this place and that's why restaurant is going
to introduce in this marketplace. The owner of restaurant has signed on a lease agreement for
three 3 years for a 4000 square feet space in a building. Entrepreneur signs a lease contract to
avoid issues regarding land and presence of restaurant that can impact on organizational
activities. There is a need to invest initial capital for £2,50,000 so that it can establish in an
appropriate manner. In order to run business, this is requisite for business to manage financial
funds appropriately (Burns, 2017).
Target market – In order to run a business in effectual manner, it is essential for an
entrepreneur to identify needs and requirements of marketplace. Therefore, Bill's Reading
Restaurant needs to analyze the requirement of target customers through research about current
situation of market. Thus, research can be conducted through segmentation in which they can
recognize the needs of target users. For example, restaurant is offering a huge variety of cuisine
according to catered information from people. There are so many people who likes Mexican and
Indian food bu that is less available in the market. On the other hand, Spanish, French and
Continental food, it is widely accessible throughout the UK which is why it has a fierce
competition in the marketplace in order to target people. It has some new recipes that can capture
the attention of people that they can get some new eatery. It is aiming to middle and higher
income level customers that are looking for the quality of food and they can pay premium price
for it (Naktiyok and Karabey, 2010).
Competitive analysis – Before an entrepreneur opens a restaurant, they needs to analyse
competition in the marketplace. There are various existing restaurants that can give a tough
competition to Bill's Reading Restaurant. The availability of Blixen, Thousand knives, Bleecker
Spitalfields is a threat for new business because these restaurant has a goodwill among their
customers. People do not step into other places while they are serving best quality and customer
are satisfied with food and services. There is an opportunity for owner of the restaurant that it
can penetrate market with different kind of international food whereas other are specialized in
only one kind of food. As this restaurant has a wide variety of menu planning that makes happy
to their guests who belong to diverse background. It will increase sales of business that is major
aim of business to gain profit and raise revenue. As much as restaurant will raise in sales, it will
also gain profitability and establishes a brand image in the marketplace through attracting its
customers with different food items and services (Fisher, Kuratko and Bloodgood, 2017).
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P2 Tangible and intangible resources that would be required for the launch of a new venture.
Resources can be termed to those required sources which advantage in production of
products and ease in functioning the business. There is a requirement of tangible and intangible
resources in Gourmet Delight' that are mentioned below -
TANGIBLE RESOURCES : These are physical asset which can be measured easily and
is used by the organization operations. While launching the Bill's Reading Restaurant, there is
a requirement of tangible assets. Assets like property, plant and equipments and these assets
includes:
 Land
 Equipments
 Machinery
 Furniture
 Inventory
 Securities like stocks, bonds ,and cash
There are two types of tangible assets which are necessary during the launch of Bill's
Reading Restaurant :
Current assets: Current assets are necessary that would be used while launching a new
venture like inventory, cash, marketable securities. These all item are requisite for initial year
and it can be sold with ease in order to generate cash in case of emergencies (Kuratko and
Hornsby, 2017).
Fixed assets: Non-current assets are refer to as fixed assets which are required during the
launch of new venture , and is used during business operation for more than a year which are to
be recorded on the balance sheet in the form of property, plant and equipment (PP&E). Fixed
assets refers to office furniture, buildings , machinery etc..
INTANGIBLE RESOURCES
Intangible resources are non physical assets which are used for a long period. These
resources refers to intellectual property of Bill's Reading Restaurants that are required to support
it in running a business. Hence, there are several intangible assets that are required by restaurant
and that are mentioned below -
 Trademarks: Trademark is useful as it protect the company logo which is the most
valuable assets as well as deters competitors from using the trademark. Additionally,
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provide the owner of trademark with remedies like to sue in the court, right to recover the
triple damages and so on. Bill's Reading Restaurant needs to patent its logo that must be
copied by other firms in order to protect restaurant's reputation in the marketplace.
 A company brand: Company brand name is useful because it generate positive attitude
in the mind of the target customers and differentiate it from the competitors. Along with
this, Bill's Reading Restaurant can easily launch new product at marketplace by
enhancing the ease of purchase as well as build the customer loyalty and enhance the
credibility.
Hence, tangible and intangible resources both plays an important role in an organization.
Bill's Reading Restaurant needs both of these assets to run a business with all legal rights.
TASK 2
P3 Produce a credible proposal to launch a new venture.
Every business determines an objective and goal that have to be achieved in an specific
time. In order to achieve this target, an organization have to prepare strategical planning that
assists an organisation to reach their goals. The entrepreneurs needs to take some decision that
are beneficial for the firm because their decision provides support to stay in the adverse
marketing environment. Through this, they can gain long term benefits for Bill's Reading
Restaurant. As this is a new venture, therefore, it needs to prepare a strategical proposal that
assists in reaching out predetermine goals of the organization. It consists of accurate information
that supports in achieving the objectives and goals (Curley and Formica, 2013).
Executive Summary – Bill's Reading Restaurant is a new venture which is offering a
three meal course menu with a wide range of international cuisine. It is targeting to the medium
and high income level group of people. It is providing a quality of food items with complete
hygiene with English service. This is offering a range of Continental, Spanish, French, Mexican,
Indian, Japanese and Italian.
About Venture – The owner of Bill's Reading Restaurant has a contract for 3 years to
occupy a 4000 Square feet land where it can run organizational activities and operations in an
effective way. The core purpose to launch a restaurant in Old Spitalfields Market is that it is
easily accessible by people that's why it can capture the attention of target customers in an
efficient way.
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Analyzing marketplace – It is essential for Bill's Reading Restaurant to monitor present
marketing condition because existing restaurants can impact on its business. Entrepreneur needs
to cater information about external market where it is going to be established. It also needs to
analyse its own strength and weaknesses that can give its sustainability in the marketplace. A
firm can analyse its condition through PESTEL and SWOT analysis that provides support in
developing a brand image in marketplace (Baron, 2010).
Financial decision – An organization requires funds to carry out its activities and
manage routine operations in an aligned manner. Bill's Reading Restaurant has invested
£2,50,000 and it needs to manage a bank loan that for 50%. This amount it required for other
necessary stuff according to planned budget (Werbel and Danes, 2010).
Standards – Bill's Reading Restaurant set a benchmark for its quality and performance
that needs to be followed by the organization so that it can attain its specific target to reach
towards success.
P4 Assess the skills and capabilities required to launch a new venture.
While starting new business or venture, first requirement is to have enough skills and
capabilities in an individual. Some of these are:
Leadership: Leadership is an important skill required to have in individuals while
starting new ventures. For example, Bill's Reading Restaurant Delights is a new venture which is
going to start on a small level. Hence, for successful opening, it is required that Bill's Reading
Restaurant have enough and capable leaders who have proper leadership qualities to lead
employees. Bill's Reading Restaurant itself have to manage employees working under them
because it is a small scale venture in which work load is high and workers are less. Therefore,
Bill's Reading Restaurant need capable leaders to lead employees towards success.
Productiveness: Now-a-days, so many ventures are starting but every business do not
have enough productivity to remain in market. Being productive for an organization means to
meet customer's demand in forms of their tastes and preferences. Bill's Reading Restaurant is
going to launch a new restaurant that can s perform well in terms of productivity. It requires set
of skills and capabilities so that organization can make itself highly productive in sense of
satisfying customers in every aspect (Hayward and et. al., 2010).
Effective Hiring: Hiring the right team is the crucial step in creating and growing a new
venture. Bill's Reading Restaurant is establishing on a small scale so the owner of the business
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that require to hire the right candidate for the job who have the ability to serve the customer food
in a proper way and make it in a appropriate way. They require a person who can support them in
performing multiple activities in the organization such as cooking, table services, cleaning and
take care of surroundings as they are not in the capacity to hire different individual for various
job.
Marketing skills : In a business, marketing is the most important part which attract the
customer. The owner of Bill's Reading Restaurant should have appropriate capabilities and skills
to operate all marketing function because it is a small venture. Thus, they needs to handle all the
activities in an effective way. They should know the answer of various questions like whom they
want to sell their services, by what medium they use in order to attract the customers, what
services are liked by the target client and many more things (Cornelissen and Clarke, 2010).
Raising fund : Bill's Reading Restaurant should know the source from which they are
able to get the fund required to carry out their activities. The organization may have the initial
fund to start a business but there are various things which are also performed in order to bring
business into existence. Fund can be taken from the banks or any financial institution . Bill's
Reading Restaurant restaurant owner should know the proper source to raise fund and to manage
it.
TASK 3
P5 Explain different promotional activities and channels that will support the launch.
While opening a new venture, there is a need to adopt right promotional platform that can
help to promote firm. There are various promotional tools that can be utilize to promote Bill's
Reading Restaurant in an effectual manner to capture the attention of target people. These
promotional channels are mentioned below -
Print media – It is the most convenient and traditional way to promote Bill's Reading
Restaurant. This venture can be promoted through advertisement in magazines, newspapers,
brochures that can help in reaching targeted people easily. Besides providing advertisements in
these sources, entrepreneur can also use business cards to inform their friends and relatives so
that they can convey this information to other people. Through its attractive designing of print
advertisements, it can allure customers in a drastic way (Valdez and Richardson, 2013).
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Social media and mobile technology – This is the cheapest way to promote a new
venture. Bill's Reading Restaurant is a new firm that needs to attract customer and people spends
their time on Facebook and Instagram social websites. Therefore, it is most appropriate platform
to promote restaurant on these websites so that people can reach towards their storefront.
On the other hand, mobile technology is also most accessible way to promote Bill's
Reading Restaurant because people are using their smartphones for everything that's why it can
be use as most effective technique for promotion. People are using Whatsapp to share any
information that makes it an effective promotional tool to spread out the information for the
launching of a new restaurant so that people can be aware about the opening of new restaurant
can reach their for purchasing.
Blogs can be useful to promote a business because an entrepreneur can also post their
blogs that provides information about the restaurant. While writing a blog, it should be focused
that a blog should have an attractive content that can engage readers and pull them towards the
restaurant (Dimov, 2010).
Hence, these are promotional channels that can attracts customers towards the restaurant
that enhances its sales and increase its revenue. This is the major aim of restaurant in order to
maximize its profitability.
P6 Develop an appropriate promotional activities plan for both launch and pre-launch
Bill's Reading Restaurant needs to promote the venture through marketing in order to get
successful opening. It needs to promote its business in an two phases i.e.s pre – launch and
launch that are mentioned below -
Pre – launch – It is used to launch a business before starting a storefront. Bill's Reading
Restaurant needs to promote its venture through signboards with coming soon and slogans that
can capture attention of the people. This will increase curiosity among targeted customers and
they will get reach to the store in the beginning of the restaurant that is beneficial for it.
Launch – After launching Bill's Reading Restaurant needs to promote its activities and
food items through signage boards and banners so that they can reach towards the restaurant in
order to increase the sales of restaurant (Baron and Henry, 2011).
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TASK 4
P7 Produce a monthly cash budget for the pre-launch phase of the venture.
Bill's Reading Restaurant needs to prepare a budget plan for promotional activities that
are given below -
Year 2015 Jan Feb Mar April May Jun
Opening cash balance 0 -30852 -22015 -14108 36042 66856
Food Sales amount 0 42563 43526 43568 44124 44325
Beverage Sales 0 12451 15000 13452 14528 15574
GROSS SALES (Total) 0 55014 58526 57020 58652 59899
Cost of Goods Sold
Raw Food purchase 0 25000 28000 26000 25000 30000
Beverage purchase 0 3500 5000 3363 3632 5000
Total cost of goods sold 0 28500 33000 29363 28632 35000
Gross profit 0 26514 25526 27657 30020 24899
Cash Flow After Financing 10000 10000 10000 10000 10000 10000
Total cash inflow (A) 10000 5662 13511 23549 76062 101755
General and Administrative
Workers Salaries 15476 13754 13996 14255 14663 175
Management Salaries 3400 3400 3400 3400 3400 3200
Advertisement 800 800 800 800 800 300
Bookkeeping 150 150 150 150 150 200
Insurance 250 250 250 250 250 150
Legal and Professional Fees 100 100 100 100 100 200
Misc. Other 250 250 250 250 250 1200
Total Gen. and Admin. (Fixed) 20426 18704 18946 19205 19613 5425
NET PROFIT OR LOSS -20426 7810 6580 8452 10407 19474
Drawings 2000 3000 1600 2500 3500 3000
Total cash out flow (B) 42852 13894 13966 13253 12706 -11049
Net Cash Flow (A-B) -32852 -5232 1145 12796 66856 115804
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Year 2015 Jul Aug Sep Oct Nov Dec
Opening cash balance 115804 165175 210899 247977 278168 351241
Food Sales amount 44658 45210 45325 46251 66000 90000
Beverage Sales 15487 16421 16251 17452 35000 40000
GROSS SALES (Total) 60145 61631 61576 63703 101000 130000
Cost of Goods Sold
Raw Food purchase 35000 40000 38000 45000 70000 80000
Beverage purchase 6800 7000 18000 20000 30000 35000
Total cost of goods sold 41800 47000 56000 65000 100000 115000
Gross profit 18345 14631 5576 -1297 1000 15000
Cash Flow After Financing 10000 10000 10000 10000 10000 10000
Total cash inflow (A) 144149 189806 226475 256680 289168 376241
General and Administrative
Workers Salaries 14975 15036 15408 15394 15926 15893
Management Salaries 3400 3400 3400 3400 3400 3400
Advertisement 1102 1106 1128 1128 1160 1158
Bookkeeping 800 800 800 800 800 800
Insurance 150 150 150 150 150 150
Legal and Professional Fees 599 601 616 616 637 636
Misc. Other 250 250 250 250 250 250
Total Gen. and Admin. (Fixed) 21276 21343 21752 21738 22323 22287
NET PROFIT OR LOSS -2931 -6712 -16176 -23035 -21323 -7287
Drawings 8000 6000 3000 5000 8000 9000
Total cash out flow (B) 32207 34055 40928 49773 51646 38574
Net Cash Flow (A-B) 165175 210899 247977 278168 311241 398278
P8 Suggest an appropriate legal form for the venture.
The legal form for venture is an most important decision along with the decision how the
company structure its resources. There are some of the legal forms of business which an owner
can operate. There are mainly two forms of business:
Advantages
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 Sole proprietorship: There is only one owner of the business who is responsible for all
kinds of risks and gains. If there is any profit or loss in the business then it is solely
related with owner of firm (Zhang and Li, 2010). Sole proprietorship business has both
the pros and cons too as are mentioned below:
Advantages: In sole proprietorship business, the owner has the full advantages like full control,
decision making power, no corporate tax payments, minimal legal cost etc.
Disadvantages:
 One of the major disadvantage of this business is that all responsibility lies on the
shoulders of the sole propriety itself, investor prefers to invest in such business.
Partnership is one of the legal form of venture where there are two or more than two
partners sharing there ownership; all the partners are equally liable for profit and losses and only
one doesn't have to bear the responsibility. Partnership firm too has its advantages and
disadvantages which are as follows:
Advantages: Two head is better than one. The key benefits of partnership is low start-up cost in
partnership business and have greater borrowing capacity, more capital is available for
the business, there is a limited external rules and responsibility and regulation (Burns,
2017).
Disadvantages:
 There can be more than two people to share the profit of the firm (Naktiyok and Karabey,
2010).
 Partnership can be dissolved if one of the partners dies and their family cannot interfere
in the business decision.
Hence, partnership firm is best as in partnership firm, all the partners share each and
every aspects like share of goodwill and risks, etc.
CONCLUSION
From the above report, it can be summarized that in order to launch a business, an
entrepreneur needs effective planning that can identify the target through analyzing competitive
market. In order to run a business activities in an effective way, there is a need of tangible and
intangible resources along with credible proposal. There is also a need of cash budget that
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regulates operations and activities. A business also has a legal form of venture to carry out
business activities in an effective way.
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