Detailed Report: Launching HomeCare Services as a New Business Venture

This report provides a comprehensive overview of launching HomeCare Services, a new business venture focused on repairing home appliances. The report begins with an introduction highlighting the challenges of launching a new business in a competitive market and emphasizes the need for a well-defined business plan. Task 1 focuses on identifying the target market, which includes working individuals in Liverpool and London, and conducting a competitive analysis. The report then details tangible and intangible resources required for the business, such as equipment and skilled manpower. Task 2 presents a credible business proposal, including an executive summary, market analysis, marketing strategies, and financial projections. It also outlines the skills and capabilities required by the entrepreneur, such as project management, leadership, presentation skills, and optimism. Task 3 explores promotional activities and channels for both pre-launch and launch phases, while Task 4 focuses on an itemized monthly cash budget for the pre-launch phase and the selection of an appropriate legal form for the venture. The report concludes by summarizing the key findings and recommendations for the successful launch of HomeCare Services.

LAUNCHING A NEW
BUSINESS VENTURE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 A new venture identifying specific target markets and undertaking competitive analysis....1
P2 Specific tangible and intangible resources.............................................................................2
TASK 2............................................................................................................................................3
P3 A 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 to support the launch....................................5
P6 Appropriate promotional activities plan for both launch and pre-launch..............................7
TASK 4............................................................................................................................................7
P7 Itemised monthly cash budget for the pre-launch phase........................................................7
P8 An appropriate legal form for the venture.............................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Due to cut throat competition in marketplace, launching a new business venture is a very
difficult task. Nature of business rivalry depends upon business environment which is dynamic in
nature. When a person starts a new venture in market then it has to face many issues that are
related with aspect of atmosphere (Baron and Tang, 2011). For example, culture, range of
competition, operations of big size organisations etc. Major purpose of constructing this report is
to recognise needed resources for starting a novel venture in industry. A business plan is made
for opening a venture for repairing of home appliances by providing services at home itself
named as HomeCare Services in Liverpool, London. This is a service provider company which
is started for repairing air conditioners, TVs, washing machines, inverters etc.
TASK 1
P1 A new venture identifying specific target markets and undertaking competitive analysis
HomeCare services is a company which is ready to operate its business operations in
Liverpool, London and main target customer of this corporation is working people who do not
have sufficient time to take care their home appliances on regular basis so individuals can hire a
person to take care of these electronic items on continuous basis. Main purpose of starting this
venture is less competition which is measured on raw basis.
Individual who started is business venture is having its office in 1000 square feet in
Liverpool and this place is hired on lease for 4 year period and it is a facility provides to business
owner that he/she can renew their lease period for extra three years. Estimated budget for starting
this type of business is £ 3,50,000 to £3,52,000.
Objective: Firm set some goals and aims for one year which are stated as beneath:
 Wants to get nominated for “Best Services provider” in United Kingdom.
 Profit Generation from very first month of starting.
 Aim of get and manage growth rate of 60%.
Mission: HomeCare set some missions on providing best quality services by making
strong positioning strategies and this action will further attract larger pool of customers towards
venture as this idea of business is saving more time of clients.
Target Market: Most important objective of starting any business is to get in touch with
numerous people who have sufficient buying potential by formulating adequate positioning
strategies. HomeCare has to set target market for running business operations in most effective
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manner along with to point out those personnel who could become clients of corporation.
Fruitfulness of targeting market is to hit set goals in limited time frame. Meaning of target
market is a group of individuals who could become customers of HomeCare company by putting
minimal efforts and resources. Target market is a selection of people from all segments of
marketplace. Market could be segmented on many basics like age, gender, family, friends,
working and non-working people etc. Target Market of HomeCare company is working people
who do not have sufficient time to maintain their white goods on continuous basis. According to
income, this service section is opened for all income persons who want to remove repairing cost
by maintaining appliances.
Competitive Analysis: Before starting a business in real world, it is essential for
entrepreneur that he/she should conduct a competitive analysis on wide and effective manner in
order to minimise range of business rivalry. Range of competition is low because 0of low service
providers who serve this type of services in UK. Main service providers are those who
manufactures white goods and gives a limited time warranty with products. For instance,
Whirlpool, LG etc. are serve their clients with warranty of maintenance of items for a certain
duration like 2 years etc. It is hard to defeat these large size corporations in market for
HomeCare company.
P2 Specific tangible and intangible resources
HomeCare Company is serving its customers with extraordinary quality services in arena
of Liverpool, London. Venture is providing better quality services by using latest and innovative
equipments which are able in handling critical situations in most effectual way. If effectiveness
is now considered than it could be result into electric shock and many other problem and this
action will portrait negative image of corporation in front of clients in industry. There are two
kind of resources that are used in order to provide services to customers. Elaboration of these
two kinds of sources are stated as follows:
Tangible Resources:- This kind of sources are those who have proper hardware which
can be seen, touch and manage by people. This is called as its physical presence of resource. This
segment comprises equipments, raw material, money etc. All appeared resources need money to
get invested in order to make purchases of these resources. In respect to HomeCare Company,
machines that are being used to repair appliances are defined as tangible resources and can be put
on direct basis in business operations.
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Intangible Resources:- This kind of sources are not visible but plays a vital role in
adequacy of operations. This section includes; time, goodwill, brand image, culture, business
environment, intellectual property rights etc. These resources are being used to provide
directions to business operations. Whole intellectual properties are associated with intangible
resources and helps in securing business ideas and uniqueness of corporation. This kind of
sources are helpful in making a normal company as a brand by adding some brand equity into
venture. Skills of manpower and time consumption is a subject matter of intangible resources.
By taking aid of above sources, HomeCare company can strengthens their values and
goodwill in industry. Resources are fruitful in providing information about strengths and
weaknesses and according to this corporation can set their main objective. To build adequate
branding strategies and to execute business plan successfully, HomeCare should use appropriate
design and layout by taken into consideration all necessary elements of venture.
TASK 2
P3 A credible proposal to launch a new venture
A plan is a set framework for activities that breaks long action into short tasks. Main
objective of constructing business plan is to complete all targets within coveted time frame with
maximum efficiency. When all activities are being completed in most effective manner and
clients are getting extraordinary services then this action helps in fascinating wider number of
customers and in creation of positive image in front of consumers. All organisations whether
new or old are suppose to develop a business plan as this is a direction of all activities that take
place in an association. As HomeCare is a new venture then it has to develop a proposal for their
business that will provide help in hitting all goals in limited duration. A sample of business
proposal for HomeCare is stated as below:
Executive summary HomeCare is a service provider company that is providing facilities of
maintaining home appliances on a reasonable rate and regular basis.
Company Description An entrepreneur started a venture named as HomeCare company.
Singe human being is op0erating this venture in 1000 square feet area
in Liverpool, London. Company is having more than 50 employees
that are able in operating most type of tools and techniques.
Market Analysis Market analysis is an important task in context of business expansion.
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Tools that can be used in this kind of study are STEEP analysis and
TOWS matrix. These are helpful in finalising strengths and
weaknesses of corporation by informing knowledge about market
opportunities and threats.
Marketing strategy Current objective of corporation is to expand their business operations
out of London but to state this aim, corporation has to set their
footprints in local street market and should a recognition in the eyes of
customers. Only after that venture can expand their business
effectively. To get attention of many people at the same time,
HomeCare can use internet, social media, online marketing as
promotional tools as these are cost effective publicity techniques for
new venture.
Financial Projection To become efficient in the field of service provider, a budget should be
prepared and follow with maximum efficiency. This type of action is
helpful in conducting smooth business activities.
Benchmarks In order to make comparison between present and past performance of
company, some benchmarks should be set and followed by
entrepreneur.
P4 Skills and capabilities required to launch a new venture
In order to run a business venture, it is essential for an entrepreneur that he/she must
posses some personality traits and qualities along with skills and capabilities. This portion
showcases some attributes and virtues that should be presented in corporation in order to attain
all objectives in most effective manner. Below are some specific personality traits that must be
possess by entrepreneur:
Project Management:- Owner of HomeCare company must be a good manager of
activities so that all task could get completed in certain time frame. In order to attain all aims and
objectives, it is required from business owner that he/she should allocate task to his/her team
members by making appropriate analysis on skills and talents of personnels (Bijker and et. al.,
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2012). Management of actions could be done when manpower should get those tasks which they
can perform best with self motivation and zeal.
Leadership Skills:- A chieftain is a person who brings all workforce together by taking
care their needs and wants those should be catered in order to accomplish all task in most
successful and effective manner. This type of skill is helpful in removing conflicts from culture
of organisation. Spearhead is required to inspire his/her followers by setting examples so that self
motivation could be generate in working place for attaining all targets in limited period of time.
This type of skill in entrepreneur brings enthusiasm and energy among staff members.
Presenting:- This is a virtue of showcasing a thing very attractively so that everyone
could get this in clearest manner. Owner of HomeCare should be a good presentor so that he/she
could present his/her business idea clearly to manpower so that they could accomplish their all
actions in limited time frame without hampering quality of activities. This type of skill is fruitful
in formulating appropriate strategies for directing business operations.
Optimistic & visionary:- A person who is going to launch and just launched its new
business venture in marketplace must not be afraid of failure as this fear makes him weak and
becomes reason of loss. When a owner of HomeCare company is optimistic then he/she will see
positivity in even opposite situations and will be able in converting negative conditions in
positive. On the other hand, entrepreneur is having virtue of setting adequate vision for business
that could bring all business operations in right direct which is useful in hitting all goals in
certain duration.
Operating a business venture is a quite difficult task and an unskilled and less talented
person could not run business activities in appropriate of feasible manner where all products and
services are being sale on break even point. In order to attain all targets in most successful
manner then it is essential for a person that some attributes should be possessed by him/her so
that all task could get accomplish in coveted time frame (Burns, 2017).
TASK 3
P5 Different promotional activities and channels to support the launch
To make a business venture successful in marketplace, adequate promotional tools and
techniques should be adopted by entrepreneur. In order to attract more people towards
corporation, it is required from entrepreneur that he should popularise all activities clearly in
front of staff members so that manpower could accomplish their duties adequately. Success of
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corporation is not rely upon quality of services but also an effective promotional strategy also
leaves impact on business operations. Need of application of publicity strategies is same in small
or large size corporations. Small scale corporations need to establish their venture strongly and
large scale associations need to maintain their market share in industry by employing beneficial
tactics. It is hard to apply expensive promotion techniques for little size ventures then they
always keep their eye on inexpensive promotional tools like internet, social media, online
marketing etc. These publicity tools are cost effective and quite useful in running a business
successfully. Following are some promotional tools are explained as further:
Personal Promotion – There are various tools and techniques present that can be availed
for advertise services of HomeCare company. Effectiveness of advertisements are having impact
upon business operations in both manner, negative or positive. In order to hit all task effectively
then promotional tool should be select appropriately (Caselli and Negri, 2018). HomeCare can
choose any method among social media, online marketing, emails, group discussions etc.
Mobile Billboards – This is a modern technique of popularising business venture which
could be use by small and large size corporations both. This methodology can be use
simultaneously while other promotion methods are running in business operations. This tool
includes stickers, symbols, logos etc. in context of HomeCare company. By taking assistance of
this action corporation can enhance their sales volume and build strong customer base.
Social Media – Today's world, there are many social networking sites that are being used
by millions of people. To get in touch with many persons at the same time then company can
post their ads on various social networks. This kind of promotion makes company popularise in
front of many persons and then corporation is to be able in developing stronger customer base.
Blogging & New Articles – Number of blog users has been increased along with
increment in articles readers. So this tool is helpful in fetching attention of many individuals that
are being online most of the time. This is a quite prominent tool in reaching with wider scale of
population.
HomeCare is conducting its business operation in most successful manner in Liverpool,
London of United Kingdom. To establishing footprints in industry, association has to take
advantages of prominent promotional tools and techniques. Promotional methods alone are
fruitful in making a business venture successful by popularising activities and good deed of
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organisation. HomeCare company's owner can choose any tools among all available options
(Fernhaber and Li, 2013).
P6 Appropriate promotional activities plan for both launch and pre-launch
By making application on a plan or proposal, firm can transform targeted customers into
potential or real buyers in shortest duration. Just after setting a marketing plan, it is essential
from entrepreneur that an adequate plan for pre and post launch activities should be made in
order to meet all targets in limited period of time (Hmieleski, Cole and Baron, 2012).
Pre-launch Promotion – business owner can develop a webpage on website before
launching business in marketplace so that total attention could get measured and this kind of
action is helpful in making right decisions upon launch or not-launch of venture. There are many
prominent tools of promotion mix that showcase help in publicise HomeCare in market of
London. As HomeCare is a new firm that has to take advantages of many promotional event
because business is in primary stage and to bring maturity and diversification into venture,
appropriate promotional tools could be applied by entrepreneur so that in introduction stage,
venture could become successful. Fascinating wider number of people is required in order to
maximise margins of profits along with minimising range of competition. Pre-launch event is
helpful in attaining a promising rate of growth by serving more than 50 clients at a time. Pre-
launch activities are most useful in getting attention of many human beings so that profit
generation should start from initial month of start. To promote business venture, association has
been set a tag line which is “Maintaining health of home appliances is a fun”. This punchline is
attracting wider population and has become a good advertisement for HomeCare company.
Launch Promotion – At the time of launch, entrepreneur should recall all target
customers which is sentenced at the time of pre-launch promotion. If more than 50% people
become potential buyer then this is a success of pre-launch event. Most useful tool for launch
promotion is mobile billboards. Other prominent tools are blogging, social networking,
advertising etc.
These are good quality procedures that can be availed in recalling, branding and
reconfiguring position of novel firm among customers. This cations helps in enlarging and
evolving corporation in competitive environment (Kariv, 2013).
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TASK 4
P7 Itemised monthly cash budget for the pre-launch phase
To conduct all activities and business actions in certain and decided financial budget, it is
essential from corporation that they comprehend budget for one year basis. A schemed budget is
explained as further:
Year 2018 Q1 Q2 Q3 Q4 YTD 2018
Food Sales 39,587 41,525 41,585 42,855 1,65,552
Beverage Sales 18,650 13,650 14,349 15,049 61,698
GROSS SALES 58,237 55,175 55,934 57,904 2,27,250
Cost of Sales
Food 14,725 14,158 14,352 14,852 58,087
Beverage 6,685 3,252 3,852 3,852 17,641
TOTAL COST OF SALES 21,410 17,410 18,204 18,704 75,728
-
GROSS PROFIT 36,827 37,765 37,730 39,200 1,51,522
General and Administrative
Employee Salaries 15,008 12,589 13,025 13,858 54,480
Management Salaries 3,400 3,400 3,400 3,400 13,600
Employer Taxes/Benefits (15% Wages) 2,209 1,919 1,971 2,071 8,170
Workers Compensation (6% Wages) 1,104 959 986 1,035 4,085
Advertising 800 800 800 800 3,200
Bookkeeping 180 150 150 150 630
Credit Card Charges (1%) 582 552 559 579 2,273
Insurance 250 250 250 250 1,000
Legal and Professional Fees 100 100 100 100 400
Misc. Other 250 250 250 250 1,000
Office Supplies 175 175 175 175 700
Rent 3,200 3,200 3,200 3,200 12,800
Repair and Maintenance 300 300 300 300 1,200
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Small Equipment 200 200 200 200 800
Telephone [phone]
Garbage 200 200 200 200 800
Utilities 1,200 1,200 1,200 1,200 4,800
Total Gen. and Admin. (Fixed) 29,309 26,394 26,916 27,918 1,10,537
#REF!
NET PROFIT OR LOSS 7,518 11,371 10,815 11,282 40,986
SBA Loan 3,582 3,582 3,582 3,582 14,328
Cash Flow After Financing 3,936 7,789 7,233 7,700 26,658
Draw 4,000 4,000 4,000 4,000 16,000
Net Cash Flow (64) 3,789 3,233 3,700 10,658
Accumulated Cash Flow 3,725 6,958 10,658
Average Daily Sales / 22 days 2,647 2,508 2,542 2,632
P8 An appropriate legal form for the venture
When idea of launching a business venture is generated then it is required from
entrepreneur that he should plan and make proper structure to ensure success of firm in
marketplace. This structure is helpful in attaining all goals in limited duration. Government of
United Kingdom has constructed some rules and regulations that must be followed by new
venture and should be considered at the time of idea generation. It is essential from business
entrepreneur that firm should be made legal entry in marketplace so that no further obligations
could raise (Klotz and et. al., 2014). There are various criteria in which legal structure can be
framed for association. HomeCare is a company that is conducting its operations in electronic
appliances industry in Liverpool, London. Here are some legal sections for various firms that are
explained further:
Types of Legal Forms
Sole Proprietorship:- When a business is started by a single human being then it is
defined as sole proprietorship. In this type of venture, all risk and profits must be bearable by
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owner of business in order to run firm in marketplace. For instance, sole proprietors are
carpenters, plumbers, owner of retain stores etc.
Partnership Firm:- When more than one person start a business corporation in market in
order to avail profits by serving products and services to wider population then it is called as
partnership firms. All profit and loss is shared by entire member of firm on some certain ratio
basis. Main purpose of these organisations are to get higher profits by capturing larger market
share in industry.
Public Sector:- This type of corporations are those which is capital is distributed in
market in the form of shares. It means people have their zest in company that is why it is stated
as public limited company. This type of organisations are divided into two segments which are
discussed as follows:
1. Limited Company – When larger number of shares are distributed in government then it
is defined as limited company.
2. Private Limited Company – When more than 40% shares are owned by a private
company the it is named as private limited company (Kuratko and Hornsby, 2017).
From all discussed legal structures, HomeCare Company has been chosen sole proprietorship
because this association is started by an individual person. Main objective of owner is to
transform this sole proprietorship into partnership firms by expanding business operations.
Variations in legal structures relies upon number of human beings that are running business
(Morris, 2015).
CONCLUSION
This report is summed up as launching a new business venture is quite hard while
watching range of competition in marketplace. There are various legal structures that must be
follow by association in order to remove hurdles and obstacles from business activities. A
business plan is a document that should be prepared by small size corporation also in order to
break all large size activities into short targets for hitting goals in most economic method. Along
with business proposal, an adequate budget should be plan for running business operations in
smoother manner. In order to make business successful, adequate promotional activities should
be made so that more and more persons should fascinate for serving services of corporation.
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