Entrepreneurial Project: Launching a New Coffee Shop Venture

This project details the launch of a new coffee shop venture, Sophia's Coffee, located near the Hounslow West underground station. It begins with an introduction to the business idea, outlining aims, objectives, and target markets, and then performs a competitor analysis using Porter's Five Forces model. The project identifies both physical and non-physical resources required for the launch, and produces a credible proposal, including executive summary, company description, financial projections, and benchmarking. It then assesses the necessary skills and capabilities for the entrepreneur, including management and leadership, and discusses how these can be acquired. The project also covers promotional activities and channels, including a marketing mix plan, and develops a pre and post-launch cash budget. Finally, it suggests an appropriate legal structure for the venture, providing justification for the choice. The project aims to provide a comprehensive guide for launching and managing the coffee shop venture.

Launching a New
Venture

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Investigate and explain a new venture identifying specific target markets and undertaking
competitive analysis...............................................................................................................3
P2. Determine specific physical and non-physical resources that would be require for the
launch of a new venture..........................................................................................................5
P3. Produce a credible proposal to launch the new venture...................................................6
TASK 2............................................................................................................................................8
P4. Access the skills and capabilities required to launch the new venture and how they are
acquired or developed.............................................................................................................8
TASK 3............................................................................................................................................9
P5. Explain different promotional activities and channels that will support the launch and
justify their choice..................................................................................................................9
P6. Develop an appropriate promotional activities plan for both launch and pre-launch....11
TASK 4..........................................................................................................................................12
P7. Produce an itemised monthly cash budget for the pre-launch phase of the venture and the
first 12-18 months preceding launch....................................................................................12
P8. Suggest an appropriate legal structure for the venture stating why it has been chosen. 14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
A venture is a project that is new and engages huge efforts as it is new and very difficult
as several risks and failure factors are involved in it. Entrepreneurs and business owners
innovates and develops by searching and furnishing new ideas opportunities for business.
Business ventures are introduced of separate legal structures such sole proprietorship,
partnership, joint venture and company. These ventures are unique from one another holding
separate competitive position and resources in market. The current project is developed for
launching a new venture in market a coffee shop near the Hounslow West underground station
(Aaboen and et. al., 2017).
In the report a business plan is developed for launching a coffee shop, where the idea is
first introduced, target market is identified and competitor analysis is conducted. Moving further
all tangible and intangible resources required are identified and a credible proposal is produced.
Once the proposal is developed and required skills and capabilities are identified along with
supporting promotional channels and activities are identified. A marketing mix plan is developed
for along with appropriate pre and post launch cash budgets and at the end legal structure is
adopted and justification is provided for it.
TASK 1
P1. Investigate and explain a new venture identifying specific target markets and undertaking
competitive analysis.
INTRODUCTION TO NEW BUSINESS IDEA:
The new business venture which is being established and for which the business plan is
developed is a coffee shop near underground station of Hounslow West. The coffee shop was a
dream of Sophia who use to work as full time supervisor at Dream Media Ltd. Now, Sophia have
quit the job and want to open her coffee shop in a locality which is the best location for a coffee
joint as people move for work form their and come back home tired. The name of the coffee
shop is on the owner's name “Sophia's Coffee”.
AIMS AND OBJECTIVES / FEATURES OF NEW PRODUCT OR SERVICE:
 To serve best and tasty coffee to customers travelling from or to work (Rippa and et. al.,
2019).

 Sophia's Coffee will be open for 24*7 for online platforms and the physical joint will be
open for 8 to 8 in a day from Monday to Friday.
 To survive in market and earn enough profits for paying off debts and expenses for the
initial one year.
 For developing enough customer base and earning profits 5% more than expenses and
debts.
SPECIFIC TARGET MARKET:
Sophia' Coffee is being opened near a underground station in Hounslow West where most
people are those who are moving and coming back from their work. Therefore, the main targeted
audience are those travellers. Also, Sophia's Coffee will be taking online orders as well which
open to a wider customer base and target market. So, ultimately middle class and upper class
people are the main targets including office going, travellers in trains and general public.
COMPETITOR ANALYSIS:
Competitors analysis is an activity which is performed for identifying and analysing the
exiting and new emerging rivals for business. This is performed for gaining an understanding
about the competitive position in marketplace and for knowing their competitive edge. In case of
Sophia's Coffee, porters five force model is utilised for the same (Abor, 2017).
 Threat of new entrant focus over new emerging ventures at the same time of Sophia's
Coffee or in future. This threat is high due to lack of barriers and very little finances
required which are easily acquirable form market.
 Threat of substitutes is referring to development of any other good which can fulfil
requirement of customers by rendering them same value. This threat has moderate impact
as there are huge population present who do prefer coffee for releasing stress.
 Bargaining power of customers is high as competition is high in the area where
Sophia's Coffee is opening up and in the industry as well. Consumers shifting cost is very
low which gives them power over the business and its decision-making.
 Bargaining power of suppliers is low as there are several suppliers available in the
market and it is not required for Sophia's Coffee to be dependent over one or two. The
suppliers do not hold any power over business decision-making and strategies (Spee,
Jenkins and Ekberg, 2018).

 Existing rivalry is huge as it is a very common business idea to be operating a coffee
joint in a area where number of travellers are huge. Sophia's Coffee is differentiating
itself by rendering 24*7 online services but it can be easily copied and existing
competitors can adopt it in a very low cost with better understanding of market than
Sophia's Coffee (Stayton and Mangematin, 2019).
P2. Determine specific physical and non-physical resources that would be require for the launch
of a new venture.
Resources are major in every business without them no entity can survive and earn
profits. Sophia's Coffee is a new venture idea which can only start running and operating in
market once it has all the basic and required resources for the launch and functioning. These
resource are categorised into physical and non-physical. Few important resources for Sophia's
Coffee are as follows:
TANGIBLE RESOURCES
 Physical assets- These are those requirements of business which will allow Sophia's
Coffee to render all the services and products which are necessary for smooth functioning
and operating. These resources are shop for opening up, machinery required for preparing
coffee and other desserts, crockery for serving coffee and food to customers and many
other essential belongings.
 Financial assets- This resource is clearly stated by it name that is money and finances.
One of the major resource as it is utilised from the very beginning of the new project
while gaining knowledge about market and searching ideas to day to day operations of
business and even if the venture is closing down due to any reason. Funds are required at
all levels and in stages of operations. Therefore, it is very necessary for Sophia's Coffee
to hold appropriate amount of fund for smooth and efficient operational capabilities
(Ahamat and Chong, 2020).
INTANGIBLE RESOURCES
 Strategy or business idea- It is the intangible resource which is developed at the very
beginning and renders support to the venture throughout its life span. The business
strategy gives direction to owners for moving in the right path for accomplishing
business objectives short and long term both. Without a foolproof strategy it is impossible
for business to work and achieve goals.

 Capabilities of staff- The workforce, personnels, employees, labour-force etc. are the
different names given to people who actually work with the strategies and apply them in
the real situations and scenarios while business operations are going on. Every employee
has some unique expertise and talents which they practice while performing in their
respective jobs and positions.
These are few tangible and intangible resources which are very basic and essential for
Sophia's Coffee owner Sophia has to arrange and develop before opening new venture in a
competitive market. It has to be acquired for implementing all plans in the prescribed manner
and to work effectively and efficiently.
P3. Produce a credible proposal to launch the new venture.
PROPOSAL FOR LAUNCHING A NEW PRODUCT
Basis Description
Executive
Summary
Sophia's Coffee is a new venture idea which Sophia want to execute and
for which essential research and market knowledge is required. The coffee
shop is being established in Hounslow West, where nearby there is a
underground station. The brand offers coffee of all types and tastes to
consumers with tasty desserts, cookies, donuts and refreshments. The
proposed plan is for developed consisting market research, financial
projections and other related details.
Company
Description/
Product
Description
The name of the firm is Sophia's Coffee which is being planned to open in
Hounslow West. A suburban town in London and identified as a major
metropolitan centre in London Plan located near airports and other public
transport regions. The coffee shop is to be opened near the underground of
Hounslow West with services being available through physical and online
platforms. Company servers coffee to customers according to their
preferences and also produce customized orders as well according to the
preferences and liking of people (Allen, 2019).
Financial
Projection
This segment of the plan states about the funds or money requirement for
the launch and effective running of the new venture. Initially for every
business to establish small or big money is needed. Sophia's Coffee also be

needing funds to be entering the market and establishing their presence.
These funds have to be arranged and procured from different sources
available to the entrepreneur. Sophia is planning to enter the industry on
small-scale basis therefore, first source of funds can be arranged through
personal savings or by taking help form close families and friends. Moving
on for future and for long term running Sophia's Coffee can raise funds
from banks by taking a business loan. These two methods of raising funds
are easy and safe (Cosenz and Noto, 2018).
Market and
Competition
Analysis
Competitors analysis conducted in the above section with the help of
Porter's Five Forces Model. The evaluation and analysis resulted that
Sophia's Coffee is dealing in highly competitive industry and marketplace.
Although its strategy is different form others but it can be easily copied and
implemented by other existing and new emerging firms. The barriers to
entry in the industry are low and financial barriers are also law resulting in
higher and regular enhancing competition for which Sophia's Coffee have
be prepared and attentive enough to mitigate the respective risks and to
manage the operations efficiently.
Benchmarking This is a process of determining all the values of other competition already
existing in the industry and contrasting them with their own values for
procuring the best suitable value form others and engaging them in their
practices. Benchmarking will help Sophia's Coffee to evaluate the
competitive value of their rivals and make similar best suitable value use in
their operations helping the business to grow with better understanding and
ideas to work.

GANTT CHART:
TASK 2
P4. Access the skills and capabilities required to launch the new venture and how they are
acquired or developed.
Skills and Capabilities of an entrepreneur sets the criteria for them to be successful in
developing their business and running it with success (Fisher and et. al., 2017). The skills of
business owners plays a significant role in launching the new business venture and how they are
being developed in future as well. The capabilities required by Sophia for launching her coffee
joint efficiently in the market are mentioned and elaborated below:
 Management- The business needs to be managed that is it required appropriate planning,
resource organisation, efficient control and keeping track by monitoring actions. All these
actions comes under management skills. Sophia has to be very potential manager in order
to launch her coffee shop. Resource needs to be organised, plans are required to be
developed for implementation at the time of launch and in future while working.

 Leadership- This is the next efficient skill which is essential for the business owner of a
new venture has to be developed. This is a ability to inspire others and making them work
with their utmost potentials. Sophia has to be a good leader and manage the employees,
guiding them and instructing them in the right directions. It is relevant that the owner has
to adopt appropriate leadership approach for keeping the people satisfied and
continuously creating vision for them to work.
 Decision-making- For a new business opening at a small-scale leaders and management
are same. They work with the specific objective of rendering their best for successful
launch of their new venture. This process also involves the ability of leaders to make
appropriate decisions for the venture which are sustainable and beneficial for the firm and
related stakeholders. Sophia's Coffee is owned and managed by Sophia, it is essential for
her to make decisions in the right manner which are rapid and most profitable for the firm
(Futterer, Schmidt and Heidenreich, 2018).
 Risk taking- As a new entering entity in the a highly competitive and aggressively
increasing industry there are several risks that are present in the internal and external
surroundings. These risky situations and their impacts has to faced and which requires the
owner to be risk taker rather than avoider. Sophia has to take risks and to be prepared
about their consequences in order to run the coffee shop and to maintain their presence
and position in market.
TASK 3
P5. Explain different promotional activities and channels that will support the launch and justify
their choice.
Marketing is an act of promoting and spreading word about the development of new
product, service or an entirely new firm in public and targeted population. Promotional and
marketing tasks are performed through several channels and sources which are suitable for the
business and its actions. Sophia's Coffee is suggested to make use of omni-channel marketing
OMNI-CHANNEL MARKETING:

(Source: Omnichannel Marketing Strategy,2019)
From the eight channels of marketing presented through Omni-channels favourable for Sophia's
Coffee are mentioned below and elaborated:
 Social Media- First platform of advertising and promoting which is fast and cheap is
social media. Today, everyone have access to internet and their accounts to social media
which makes this a potential marketing source. Sophia's Coffee will make use of
attractive graphic images and posters to spread word about their existence and attract
targeted audiences and other suitable population. Social platforms like, FaceBook,
Instagram, Twitter etc. are the most commonly used by businesses.
 Website- This is a personal internet platform which can be easily be formed with
appropriate specifications and features (Hale, 2018). Sophia's Coffee also be developing
their personal website rendering all required information to people about their vision,
mission, objectives, values, offerings, their unique selling segment, adding a section for
queries and customers issues and many other relevant features for keeping other informed
and satisfied.
 Print ads- This is a tool of marketing which is traditional but effective, Sophia's Coffee
can develop posters and print advertisements and promote through pamphlets by sticking
and handing them over to the public. These print ads should be attractive and eye
catching which leaves a attractive picture in minds of people and make them reach to the
coffee shop.
Illustration 1: Omnichannel Marketing Strategy,2019

 Digital Advertisement- Like print ads another easy method of marketing is digital
advertisement. These are also graphical images and videos that are developed by
advanced technologies and issued digitally like on television. Sophia's Coffee can use this
marketing channel as well but is little bit expensive and time consuming as compared to
other sources.
P6. Develop an appropriate promotional activities plan for both launch and pre-launch.
Marketing Mix
It refers to a set of determinants and tactics that an organisation can adopts for promoting
the brand and their goods and services in the marketplace. It involves 7 elements such as product,
price, place, promotion, people, process and physical evidence. In this Sophia plan and build a
promotional activities for their Sophia's Coffee shop that is a sole proprietor business so that
they enhance their profit margin and brand image. For this they will analyse the 7P's of
marketing that can be explained below.
 Product- It defines the products of the firm in which company deals that attracts the
customers. In case of Sophia's Coffee they offers the different varieties of coffee with
muffins, do-nuts, sandwiches, cakes and cookies all includes plant based species that is
healthy for the people. With coffee these meals are encouraged people to visit the shop
and this helps in earning the profits (Kloepfer and Castrogiovanni, 2018).
 Price- It is the major determinant for the marketing elements because it helps in
connecting with the customers in terms of the price and for people it easy to know the
amount of products. At the time of launching the 'Sophia's Coffee' Sophia can analyse
that competitive based pricing is the best pricing strategy because there are many other
competitors so to attracts the large base of customers at the starting point this is the best
way.
 Place- It refers to that in which a person can operates their business for earning profits.
In this Sophia can open their Sophia's Coffee shop at Hounslow West, that is nearby
underground station. It is open for middle class people so that they can get the best food
and coffee at the station.
 Promotion- For promoting the brand and products and services by the Sophia's Coffee
Omni channel it is best way it includes various aspects such as digital marketing, print
ads, social media etc. At pre-launch time Sophia's Coffee can adopts the print ads and

social media so that they can attract the large number of customers and at the time of
launching they can build their website and digital trends so that customers can share their
reviews this helps in enhancing the image and profits.
 People- As Sophia's Coffee is a small organisation that is why there is not more than 5
employees but all are experienced in their work as in this chef can make the best food and
coffee that attracts the people towards the shops and attenders who are well spoken and
provides the best service to them so that customers feel safe (Kullik and et. al., 2018) .
 Process- In this Sophia's Coffee can adopts the online and offline process for the
customers where people can mark the order online and the shop will deliver it to their
customers on the 10 km range.
 Physical evidence- In this element Sophia's Coffee shop and its interior attracts the
people towards the firm as the employees that are serving tier service with the shop helps
in encouraging people to visit and business may earn high profits.
TASK 4
P7. Produce an itemised monthly cash budget for the pre-launch phase of the venture and the
first 12-18 months preceding launch.
PRE-LAUNCH CASH BUDGET:
Pre launch cash budget
Cash Flow budget
Particulars Jan Feb Mar Apr May June
Cash Inflows
Investment 8000
Credit sales 2000 3000 3000 4500 1500 3500
Total Inflows 10000 3000 3000 4500 1500 3500
Cash outflows
Fixed : Equipment’s 2000 2500 1500 2000 1200 1500
Variable : Direct
material 300 300 200 300 150 500
Total Outflows 2300 2800 1700 2300 1350 2000