Entrepreneurship Report: Launching a New Restaurant Venture

This report outlines the comprehensive process of launching a new restaurant venture, Dream Delicious, in London. It begins with an introduction to the importance of communication and strategic planning for new ventures. Task 1 focuses on identifying target markets, specifically in Central London, and conducting a competitive analysis using Porter's Five Forces. It examines the restaurant's mission, target demographics, and geographical segmentation. Task 2 delves into the tangible and intangible resources required, emphasizing the importance of financial, human, and intellectual property. Task 3 details the planning of a credible proposal, including an executive summary, market analysis, and marketing strategies. Task 4 covers the creation of a monthly cash budget for both pre-launch and post-launch phases, alongside the selection of an appropriate legal form for the venture. The report concludes with a summary of key findings and recommendations for the successful launch and operation of the restaurant.

Launching a new
venture

TABLE OF CONTENT
Launching a new venture..........................................................................................................1
INTRODUCTION......................................................................................................................3
TASK 1......................................................................................................................................4
P1. New venture identifying particular target markets and undertaking competitive analysis
................................................................................................................................................4
P2. Particular tangible and intangible resources that required for a new venture:.................5
TASK 2......................................................................................................................................6
P3. Planning of credible proposal to launch a new venture...................................................6
P4 Skills and capabilities which are required to launch a new venture.................................7
TASK 3......................................................................................................................................8
P5 Identification of promotional activities and channels for launching a new venture.........8
P6 Design an appropriate plan for promotional activities for both pre-launching and after
launching................................................................................................................................9
TASK 4....................................................................................................................................10
P7 Produce itemized monthly cash budget for the pre launch and after launch phase........10
P8 An appropriate legal from for the new venture Dream Delicious restaurant.................13
CONCLUSION........................................................................................................................14
REFERENCES.........................................................................................................................15

INTRODUCTION
There are several kind of new venture are start in front of entrepreneur thus help to
achieve profits as well as demand of potential clients in an effective manner. The leader must
possess the quality of assessing the change in future hence making the strategy accordingly.
Another skill which is required is communication skills. This skill is very important for new
venture as it ensures the successful launch of the firm in initial time period. This skill is
beneficial when the idea of the business it communicated to the investors. In this report, food
restaurant (Baron and Tang, 2011). This restaurant good services and delight customers help
firm’s mouth to mouth publicity which occurs no cost to the owners and build positive image
among people. In this report covers identification of new venture in specific target market,
planning of launching new product, tangible as well as intangible resources or many more.
TASK 1
P1. New venture identifying particular target markets and undertaking competitive analysis
Dream Delicious is a new multi cuisine restaurant launched at the location of central
London. The restaurant is started with an aim to provide world class services to its customer.
Since the organisation has started itself in food product it needs to get food license and other
required document for the same. London is a tourist destination place; keeping this in mind
the restaurant provides a high range of food product: Thai food, Chinese food, Italian food
and many more. In order to provide more service to provide its customer the restaurant also
gives home delivery facility. Since it is located in Central London it was decided to open the
restaurant for 4 hours so that the tourist could get the food anytime. The restaurant is formed
in the company form so that it could expand itself in the other region of U.K (Bijker and et.
al., 2012). Restaurant is made on a land of 1000 Sq. feet which has all facilities from Roof
top to garden area services to the cabin food serving. The Company acquired a loan of
£100000 to 120000.
Restaurant is opened to achieve certain objectives:-
1. To deliver quality food to customers tourist of London.
2. To fill the gap of demand and supply in the nigh.
3. To capture market share.

4. To earn profit and sharing it with its stakeholders.
5. To start restaurant in multiple locations.
Mission: “Delivering variety food to its customers with premium quality”.
 Target:
This business is aim to achieve and understand certain target markets. Moreover this the
business target to particular market and people. Below is the list of target:
1. Geographical segment: In geographical segmentation the area is divided into
multiple portions. On the basis of that one most suitable area is selected on the ground
of matching the area with the objectives. The central London is selected on the basis
of suitability that it is the most attracted and crowded place in the London. Since it is
placed in central location it will is an easily reachable place.
2. Demographic Segment: In demographic segmentation age, income and life style is
selected. The restaurant is aimed at giving services to middle and high income group.
The restaurant appeals to business class and give services according to that. The target
age group is between 20 to 55 who discovers and explore new things.
3. Behavioural Segment: Behaviouralsegment implies to the psycho of the people.
High quality conscious people are target by this venture. People who are open to new
thing and different pattern are aimed to attract.
 Competitive Analysis
There are various competitors in the market for the Dream delicious. These
competitor has already an established business in the market for a long time and enjoys a
level of customer trust (Burns, 2017). Since competitors are in the business for a long time
they have competitive edge in the operation part of restaurant. They have become efficient in
the restaurant functioning. In order to understand, comptietive edge of organisation, Porter's
five forces is one of the most suitable technique that is discussed here:
Bargaining Power of Supplier: Bargaining power of suppliers is moderate as the
buyer can bargain over cost within the industry but if organisation is able to provide quality
there is no other option but deliver appropriate money in exchnage of better services.

Buyer's Bargianing Power: There is high bargaining power of buyers in UK food
industry as people have numerous opportunity and places to eat in London. Henceforth, this
is requisiste for Dream Delicisious to be unique and provide value-added services and food
quality to establish itself.
Competitive Rivarly: Competitive rivarly, on the other hand is in moderate condition
as there might be competition in market but cafes and restaurants who are providing mutliple
choices in food with better quality is not much.
Threat of subsituite: Subsititues threat is also moderate within industry as people
have the choice to get the products and services from somewhere else but the quality of food
would not be the same. Hencefoprth, organisation can gain better recognition through
delivering best quality and serbvices within organisation.
Threat of New Entrants: It is easier for an organisation to start a new venture or food
organisation in UK as this need aggregrate investment and less monetay amount to enter in
market. On the other hand, portaying oneself as unique organisation is more complex
respectively. Hence, this can be claimed that new entrance threat is high in the market.
Henceforth, this can proclaimed from mentioned analysis that Dream Delicious need
to provide value added products quality to retain within the market as the market is full of
competition. This is too complex to survive within the food industry which recommand the
organsiation that restaurant need proper strategies and plans before executing any affairs to
meet success.
P2. Particular tangible and intangible resources that required for a new venture:
A business is run by various resources which need to manage in the way that gives the
optimum output in less input. These resources are divided into two parts:
Tangible Resources: Tangible resources are those which can be seen or touched.
Tangible source are also considered as the asset of the firm. These resources are known as
financial resource, Human resource, Materials and operations,and machinery. Among these
resources fund management is the most critical aspect. The success of any venture is
measured by the efficient management of its funds. The proper management is fund i.e.
inflow and outflow of cash is the most important aspect. All other resources of firm depend
upon the financial condition of the firm. The next important resource is human resource of
the firm. Human resource is an asset of the form which carried out all the activities of the

organisation. The successful of the business largely depends upon the quality of its human
resource (Caselli and Negri, 2018). Efficient the staff of the firm higher the success ratio of
the firm. The proper management of human resource is important to gain competitive edge
over others. The next resource is Material and machinery. Higher the quality of the raw
material better would be the final product.
Intangible resources: Intangible resources are those which cannot be touched or see.
These resources are felt by the experienced. These intangible resources are very crucial in the
service industry because services are considered to be intangible in nature. Since restaurant
business offer goods to its customer it also offers services as well. This business is a blend of
physical good and services. The most important intangible resources are Intellectual property
right, Skill inventory and process. Intellectual property stands for the legal right on the
manufacturing of certain good or on any process. In the service industry business houses
owns various patents and copyrights. In this food business the firm also enjoys licenses and a
copyright over its special dish. Another important resource is skills inventory. To run any
business successfully firms needs to have high skill inventory. The top management needs to
have leadership skills to run the business successfully. Leadership skill si required to give
overall direction to the firm as well as it also ensure the long term success of the firm. The
middle management needs to have managerial skills (Fernhaber and Li, 2013). Middle
management follows the instruction of top management these are the people who manage the
execution of work. Hence they need to be highly skilled on their managerial part. The last
level is low level management or what they are known as employees. These are the people
who execute the work. They needs to be technically sound to deliver the product as per the
company’s guideline.
There is a risk while implementing tangible and intangible resourcse within an
organisation. The company manager need to determine the skills and knwoldgde of their
employees who are perform work in getting high income in better manner. They also focus
on tangible resources which support in developing new venture at the large market place.
TASK 2
P3. Planning of credible proposal to launch a new venture
To launch any new business it needs to have a proper planning of its operation. It is
also needed to an in-depth research of market and competition. It is a lengthy procedure and

takes around 1 to 2 months to complete this process. Given below the Proposal of the new
venture:
Executive
Summary
Dream delicious is company of central London. It works in food
business. The firms are new in market. It delivers fresh and quality
food to its customer.
Company
Description
The company owns 7 directors and each have contributed £1200 in the
business.The company offers various new dishes of different nation.
The company differentiate itself from its customer by focusing on
promoting new and innovative food offering to the people of London.
It also attracts tourist to come as it almost offer all type of food. The
marketing strategy of the firm is to focus on the mouth publicity. Firm
is 2 months old and created a high buzz in the market. The mission of
the company is to provide the quality foods to its customer. The vision
of the firm is to become market leader in the food industry in next 5
year in U.K. It has also a vision to open food chain restaurant in U.K.
Market analysis To start any business the firm need to have a good knowledge of
market. This comprise of analysis of MACRO factorsand MICRO
factors of country. The MACRO economic factors are Political,
economic, legal and ethnological factors. The firm first need to do
analysis these factors. The economic factor comprise of the GDP of the
nation, per capita income and growth rate of the nation in the world
scenario (Hmieleski, Cole and Baron, 2012). The political factor refers
to the favourability of the government in the industry in which
business is entering. The legal aspect includes the registration of
company, licensing of the business operation, rules and regulation. The
technological aspect includes the latest technology in the world. The
MICRO economy factors are those factors which prevail within the
firm. This includes the company policies, stakeholders etc. In market
analysis the firm do research on the potential market, Growth of the
industry, problem that may be effectively addressed by the firm. In
marketing it also analysis the customer expectations and challenges.
The marketing tools also include the activities to promote the business.
Financial Analysis The financial analysis includes steps such as the method of obtaining

the funds. The source of obtaining funds. The management of funds
i.e. working capital management, inflow and outflow of the funds. It
also includes the activities of allocating the funds for various purposes.
Standard of the
firm
The firm needs to differentiate itself from the competitor. With
reference to this it needs to set some standard which is available with
the competitor. By setting this benchmark firm takes advantage over
others. This done through the innovation in the existing process or
methodology.
P4 Skills and capabilities which are required to launch a new venture
In an established business the firm enjoys the various benefits. When it comes to new
venture they do struggle with various aspects. Sometimes they even find of difficult to
survive in a competitive environment (Kariv, 2013). For a start-up it becomes very important
to acquire and utilize the few most important skills and capabilities. As stat-up faces
competition from the established business they needs to give full focus on these skills and
capabilities:-
1. Leadership skills: Leadership skills are required to give overall path to the firm.
Leaders are responsible for the failure or success of any business. An efficient leader
can make a firm successful even in the diverse situation. Leadership skills require
how to lead the company by beating the competition. This requires conceptual skills
in the leader. The leader should be able to foresee the future. This skill becomes
important when employees are hired, because people hesitate with working with new
venture due the uncertainty of survival of the firm. Problem solving skill is another
important skill as it is helpful in overcoming all the issues which comes in running
business.
2. Risk management: A new venture success is always considered as risky. To run a
new venture successfully it is required to take risk on the basis of risk tolerance
capacity of its own (Klotz and et. al., 2014). It is always wise to take calculative risk
so that the damage could be minimized.
3. Fund management: For a new venture fund is the most critical aspect. In the initial
period when the firm is new the suppliers deny to provide the raw material on credit.
In this situation the firm needs a high amount of working capital to meet the daily

demand. So it is required to have a clear and crisp assessment of fund requirement for
initial 2 years. The best way is to make a projected trading account and balance sheet
of the for the initial 2 years. It is wise to hire an experienced person to manage the
fund requirement of the firm.
4. SWOT analysis: The meaning of SWOT is strength, weakness, opportunity and
threat. The firm operate in a competitive environment which is affected by the
industry change, Nation economy change and changes at the world level. Since it is
required that the firm must have the knowledge of its strength so that it could
capitalize the opportunity of the Macro environment. It also needs to be aware about
it weakness so that it could minimize it weakness. By identifying own weakness the
firm tries to reduce it with doing continuous improvement in it and converting it in
strength.
PDP Plan:
Skill Current level Development Method
to be used
Time frame
Leadership skill 7 To be passinate and
listen every member
of team
3 month
Risk management 8 Properly
identification of risk
and work on this
properly.
5 month
Fund management 5 Make better relation
with investors and
creditors
8 month
TASK 3
P5 Identification of promotional activities and channels for launching a new venture
There are various platforms available for promotional activities for launching a new
venture to communicate customers about the offering of Dream Delicious restaurant in

market. There are various methods of paid advertising use for the promotion before launching
to get benefits. These are following:-
 Social media:-
Social media includes the paid promotion on social sites like:- Facebook, Twitter, LinkedIn ,
Instagram etc. today’s world these sites are provide best platforms to reach target customers
and create curiosity among customer how are offering different from others? and also connect
numbers of people (Kuratko and Hornsby, 2017).
 Personal promotions:-
Dream Delicious restaurant also use the personal promotional activities like
distribution of pamphlets, catalogues and brochures to local area to reach their target
customers. This method benefits is to face to face interaction to people and also know
about people response about their activities and well communicate about their
offering.
 Broadcast advertising:-
This method can be use to reach a large numbers of customers through television,
radio and outdoors advertising but television advertising is quite expensive for the
owners of new venture so they can go for radio advertisement and outdoor
promotional activities like banners, flags, wraps and guerrilla marketing strategies to
inform target customers in creative and unique manner.
 Digital Media:-
Digital media includes the adverting through digital platform like internet,
Smartphone and other platform like Google chrome, kindle, website to reach to the
target customers.
 Print media:-
Print media includes the promotion through newspapers, magazines, fillers, brochures
etc. The owner of the Dream Delicious restaurant take the decision according to reach
target customers he wants to target niche market then can go for the promotion
through the fillers and local magazines and newspaper also according the advertising
budget (Read and et. al., 2016).

 Marketing – This can be considered as one of the effective technique which can be
used by the company for promoting Dream Delicious restaurant in their targt market.
Through this, they can reach each and every customers and thus helps in making tge
product more popular among the targeted customers. There are various techniques as
well which are included while doing marketing activities like advertising, personal
selling etc.
 Sales promotion: Manager of Dream Delicious restaurant can make use of this
promotional channel because this include attractive discounts, coupons, referral
programs and loyalty incentive. According to the Dream Delicious restaurant, sales
promotions attract the customers to use the services at low prices and utilise the
benefit of the loyalty incentives. It is considered as the most effective way to grab the
attention of the youth as well as people of other generation who are money oriented.
So an entrepreneur decides its promotional strategy to keep in mind mainly
two factors these are their reach to target customers and budget available for the
promotion activities. In today’s competitive world promotional activities play an
important role to attract customers towards offering of the company and generate
revenue in the business and all entrepreneur discover new ways for this. Now mostly
new ventures promote their offering by using guerrilla marketing strategy which
works cost effective manner and quiet innovative to grab attention of target customers
and defeat from the existing rivals at the marketplace.
P6 Design an appropriate plan for promotional activities for both pre-launching and after
launching
In the world of competition and dynamic changes all organization have to design and
developed their plan respect to promotional activities to not only to aware about firm’s
offering but also create curiosity about the offering. It will help firm to reach more and more
customer base and compete with existing rivals of the industry. Promotional and advertising
activities are as important for both existing and new venture (Morris, 2015). So the new
venture Dream Delicious restaurant owner will have to prepare its promotional strategy for
both pre launch and after launch. So they can take following steps these are:-
 Pre launch promotional activities:-

This can be involves various activities which depend upon basically target segment
and identify the ways to reach them. For the Dream Delicious restaurant promotional
activities owner can use multiple sources and then spends its funds on advertising for
this it can be develop restaurant website and define the offering and services provides
by the restaurant and how is it different from other restaurant through its specialty to
satisfy customer needs.
 After launching promotional activities:-
Pre- launching promotional activities create awareness among the people about the
offering of the firm (Robb and Watson, 2012). In this to attract customer owner and
management team can work on their pricing strategy to attract more and more
customers through deal with e –wallets, food sites, coupons, family offers ,discount
vouchers and intensive promotion through social sites and media.
Marketing Plan
Henceforth, here is presented a properly formualted marketing plan that can be
utilised by Dream Declicious in regard of achieving business objectives and mission of
organisation:
Steps Description
Overview of organisation Dream Declisious is small multicusion restaurant which has
planned to operate their business in London, UK. In regard of
meeting good market image this plan is demonstrated which
determines the mission and vision of organisation:
Mission: to provide better quality of products and services and
establish better recognition among competitors.
Vision: To emerge within the competitive marketplace
enhancing the brand recognition within next one year.
Situational Analalysis In order to emerge in market, this is fundamental for
organisation to evaluate environment analysis to consider
current market situation of company for which SWOT analysis