New Venture Creation Report: Coins 4 Convenience, UK Market

This report presents a comprehensive business plan for "Coins 4 Convenience," a new venture focused on providing coin exchange services in the UK market. The report details the company's goals, objectives, and unique selling proposition, emphasizing its lower prices and convenient services compared to competitors. It includes a thorough competitor analysis, market research, and an assessment of market attractiveness. The business strategy outlines a clear route to commercialization through partnerships and a penetration pricing strategy. The report also identifies potential risks, proposes management strategies, and provides a financial plan with projected revenues, expenses, and profitability, demonstrating the financial rewards and loan requirements for potential investors. The report concludes with a discussion of operational requirements and the credibility of the management team. References to relevant academic sources are also included.

New Venture Creation Report

Table of Contents
COURSEWORK 3: NEW VENTURE CREATION REPORT......................................................1
Description of products and services and its Unique selling position........................................1
Justifying its uniqueness through preliminary data search and competitor analysis..................1
Determining marketing attractiveness: e.g. market size and potential growth through
identification of potential customers, market trends ..................................................................2
Determining business strategy with a clear route to commercialisation e.g. technical
development, licensing of intellectual property, marketing implementing ................................2
Identifying potential risk and way to manage ............................................................................3
Justifying expenditure to run the event Equipment and running costs.......................................3
Describing key operational requirement, premises, IT and management systems, quality
requirements ...............................................................................................................................3
Demonstrating credibility of management team.........................................................................4
Demonstrating financial rewards and loan requirement for potential investors.........................4
Financial plan of Coins 4 convenience.......................................................................................5
Reference ........................................................................................................................................8

COURSEWORK 3: NEW VENTURE CREATION REPORT
Goals and objective of the business
The main goal of the “Coins 4 convenience” is to provide quality services to customers
at lower price. Its aim is to provide facility to clientele to convert their coins in usable cash.
This can help firm in grabbing attention and increase in sales of product and services of the
organization. In addition to this, “Coins 4 convenience” also gives coins exchange machine on
rent to parties who are interested in it such as supermarkets, retailers etc.
One of the foremost priorities of the Coins 4 convenience is to provide quality services
to its customer and to establish one of the successful organisation.
Objectives of Coins 4 convenience
 To create awnress among people related to coin exchange services.
 To offer high quality services to its customers at lower prices.
 To provide assistance to consumers seeking for coin exchange
Description of products and services and its unique selling position
Coins 4 convenience is determined to seek opportunities into UK’s coins exchange
market. The products and services which they offer to customers are coins’ exchange services.
They will provide machine which exchange coins to clients . This machine will count coins
which are poured by clients and issue a receipt which shows details of transaction. In
accordance to this, the firm also provides cash exchange machine on rent to the interested
parties that is supermarket and other major convenient stores in London (Ward, 2016). The
unique selling position of the organization is based on services which they deliver to customer.
Along with this, it offers coins’ exchange services, smoothly and cost effectively. The price
which it charges from the customer is lower than its competitor for attracting and retaining large
number of customers in the market. Services which are provided by “Coins 4 convenience”
enables its clients to easily convert their coins into easily usable cash.
Justifying its uniqueness through preliminary data search and challenger analysis
Competitor analysis is known as the assessment of the strengths and weaknesses of
current and potential challenger. There are few rival of “Coins 4 convenience” that are both
direct and indirect competitor. Some of its direct challenger are cash in your coins, cash 4 coins
and coins international among other etc. while indirect rival include all the business who sell
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commodities needing the use of coins for instance cigarettes and candies (McKeever, 2016). The
prices of direct competitors are unpleasant due to which they are unable to offer more
convenient coins exchange services. The force families to buy candies of those coins instead of
giving them exchange. The uniqueness of Coins 4 convenience is that it offers attractive and
convenient charges which grab attention of large number of families to consider accumulating
their coins to exchange then later. It is justified that Coins 4 convenience offers its services at
lower prices as compare to its competitor.
Determining marketing attractiveness: e.g. market size and potential growth through
identification of potential customers, market trends
At the time of starting a new business it is essential for the entrepreneur to first conduct
market research. This help in identifying different kind of issues and challenges which Coins 4
convenience can face at the time of establishing a new business (Finch, 2016). Market research
help the organisation in developing new strategy for the growth and development of its business.
Furthermore, in the UK most of the families have old Jams Jars filled with coins in their homes.
There are lack of convenient ways of exchanging the coins for easily usable notes whose result
is that coins have been disposed off in the homes. There is great demand for the coin’s exchange
services in the UK market. There is potential growth for the coins of convenience because its
potential customers are all shopper at supermarket and convenient stores who includes families,
students, single men and women. There can be growth in market because firm sale its products
and services at lower price as compare to its competitor.
Determining business strategy with a clear route to commercialisation e.g. technical
development, licensing of intellectual property, marketing implementing
Market entry strategy is for Coins 4 convenience includes forming partnerships with
other business for instance with supermarket and other convenience stores. This strategy is one
of the effective strategy for commercialisation. Partnership helps and benefits by leasing the
space for the exchange machine Kiosks. This entry strategy is effective as it includes the
installation of the four coins machines because at the entrance of the four machines (Drucker,
2017). The four machine will be installed at different place such as at shopping mall and other
commercial and at residential centres in London because it make easy to reach potential
customers. One of the most competitive strategies used by the company is a pricing strategy.
Here, Coins 4 convenience is using penetration pricing strategy in which it enters into market
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with lower prices as compared to its competitors. This idea helps businesses in increasing
awareness of products among customers related to their services.
Identifying potential risk and way to manage
There are some potential risks which may be faced by the Coins 4 convenience that is
strategic risk, compliance risk, financial risk etc. Due to strategic risk; strategy of business
become less effective and company need to struggle and face its competitor. (McCarthy, 2016).
This risk takes place due to technological changes or because of new and existing competitors
in the market. If firm not use new technology then it unable to reach large number of customers.
Further, compliance risks are those which are related to the new health and safety legislation.
Along with this; there are some other risks which are external and cannot be controlled by the
firm. These external risks which can be faced by the Coins 4 convenience are domestic,
international and political risk. One of the main risk faced by firm is lack of new technology due
to which it unable to reach large number of customers. Therefore, managing all the potential
risk firm can introduce new technology so that it can deliver products to customer on tome.
Justifying expenditure to run the event Equipment and running costs
Coins 4 convenience is required to promotes its product and services which it selling in
market. As social medial campaign and advertisement on the different social networking sites
which charge some cost to the firm (Westwood, 2016). Event need to organisated Further, firm
can easily control its unnecessary expenses by making budget as it leads to reduction of
irrelevant expenses which are not needed for the firm.
Key operaitonal requirment
Operational requirements are known as finding out the essential capabilities',
performance measures and the process of actions which affects the result. Firm must have IT
technology so that it can easily keep records of its regular customers. Further, “Coins 4
convenience should know the limitations of technology to users, maturity & associated risk
(McKenzie and Woodruff, 2016). This helps in making sure that all the requirements are
achievable and secure. Further,it is important for the firm to identify stakeholders who show
their interest in the system.
Demonstrating credibility of management team
A management plan is known as the written strategy in order to carry out business
successfully. There are few benefits of management plan which assist in guiding the way to
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accomplish goal and objectives on time. Along with this, it allows management to clearly look
out their position and the way of reporting to their seniors. At the Coins 4 convenience hired
highly skilled staff so that quality services can be delivered to customers on time.
There are some elements of management plan that are as follows:
 Ownership: One of the main role and responsibility of the owner is that it is accountable
for day to day business operations of the business finance. It makes all decision of
business and provide direction to the business. Further, It plays significant role in firm
operations and day to day functions.
 General Manager: There are some roles and responsibility of general manager that is to
hire and train new employees, so that they can work effectively (Drucker, 2017). Along
with this, he/she also needs to ensure that all the business functions and operations are
carried out in an appropriate and systematic manner.
 Lower level employees: Role of lower level employees is to deliver services and make
sure that their clients do not face any kind of issues at the time of taking services.
Furthermore, management team of Coins for convenience is highly skilled in respect of
providing services and products to customers. They work hard and with full responsibility so
that firm can make good position in market. All the roles and social control are divided
among employees according to their skills and knowledge; so that they do not face any kind
of problem at the time of delivering the services to clients.
Demonstrating financial rewards and loan requirement for potential investors
Potential investors are known as the direct loan provider who invest in company with
their own interest. Direct investor need to provide some interest such as profit sharing, company
share etc. Coins 4 convenience have not enough amount for the starting up business for this
purpose they can take financial support from capitalist (Gollenia, 2016). There are different
types of loan provider such as bankers, trust, leasing company etc. Different types of investors
have different interests (Financial planning. 2016). For instance, some of them focuses on debt
and others in equity. There are few requirements of money provider such as they need
guaranteed rate of return or share in equity holding. . There are different sources from which
“Coins 4 convenience” can take loan.
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Financial plan of Coins 4 convenience
Expenses
Febr
uary
Mar
ch April May June July
Aug
ust
Sept
emb
er
Octo
ber
Nov
emb
er
Dece
mbe
r
Jan
uary
Marketing
expenses 100 100 100 100 100 100 100 100 100 100 100 100
Administration
expenses 500 500 500 500 500 500 500 500 500 500 500 500
Finance cost 250 250 250 250 250 250 250 250 250 250 250 250
Insurance 200 200 200 200 200 200 200 200 200 200 200 200
Rent 150 150 150 150 150 150 150 150 150 150 150 150
Salary and wages
1000
0
1000
0 10000
1000
0
1000
0
1000
0
1000
0
1000
0
1000
0
1000
0
1000
0
1000
0
Depreciation 833 833 833 833 833 833 833 833 833 833 833 833
Preliminary
expenses written
off 1667 1667 1667 1667 1667 1667 1667 1667 1667 1667 1667 1667
Other operating
expenses 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
Sum of expenses
1470
0
1470
0 14700
1470
0
1470
0
1470
0
1470
0
1470
0
1470
0
1470
0
1470
0
1470
0
Net month profit -900 -426 247 583 5932 6399 6494 7005 7562
1569
4
1580
0
3104
9
Expense
percentage of
revenue
Febr
uary
Mar
ch April May June July
Aug
ust
Sept
emb
er
Octo
ber
Nov
emb
er
Dece
mbe
r
Jan
uary
5

Marketing
expenses
0.72
%
0.70
% 0.67%
0.65
%
0.48
%
0.47
%
0.47
%
0.46
%
0.45
%
0.33
%
0.33
%
0.22
%
Administration
expenses
3.62
%
3.50
%
3.35% 3.27
%
2.42
%
2.37
%
2.36
%
2.30
%
2.25
%
1.65
%
1.64
%
1.09
%
Finance cost 1.81
%
1.75
%
1.67% 1.64
%
1.21
%
1.18
%
1.18
%
1.15
%
1.12
%
0.82
%
0.82
%
0.55
%
Insurance 1.45
%
1.40
%
1.34% 1.31
%
0.97
%
0.95
%
0.94
%
0.92
%
0.90
%
0.66
%
0.66
%
0.44
%
Rent 1.09
%
1.05
%
1.00% 0.98
%
0.73
%
0.71
%
0.71
%
0.69
%
0.67
%
0.49
%
0.49
%
0.33
%
Salary and wages 72.4
6%
70.0
6%
66.90
%
65.4
3%
48.4
7%
47.3
9%
47.1
8%
46.0
7%
44.9
2%
32.9
0%
32.7
9%
21.8
6%
Depreciation 6.04
%
5.84
%
5.58% 5.45
%
4.04
%
3.95
%
3.93
%
3.84
%
3.74
%
2.74
%
2.73
%
1.82
%
Preliminary
expenses written
off
12.0
8%
11.6
8%
11.15
%
10.9
1%
8.08
%
7.90
%
7.86
%
7.68
%
7.49
%
5.48
%
5.46
%
3.64
%
Other operating
expenses
7.25
%
7.01
%
6.69% 6.54
%
4.85
%
4.74
%
4.72
%
4.61
%
4.49
%
3.29
%
3.28
%
2.19
%
Profit and loss statement of Coins 4 convenience
2016 2017
Revenue 255355 383032
Less: Cost of goods sold 96592 33765
Gross profit 158763 349267
Expenses
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Marketing expenses 1200 2026
Administration expenses 6000 10129
Finance cost 3000 5065
Insurance 2400 4052
Rent 1800 3039
Salary and wages 120000 138000
Depreciation 10000 16882
Other operating expenses 12000 57455
Sum of expenses 156400 236648
PBIT 2363 112619
Tax 0 22524
Net profit 2363 90095
2016 2017
Marketing expenses 0.53% 0.53%
Administration expenses 2.64% 2.64%
Finance cost 1.32% 1.32%
Insurance 1.06% 1.06%
Rent 0.79% 0.79%
Salary and wages 52.89% 15.00%
Depreciation 4.41% 4.41%
Other operating expenses 5.29% 5.29%
Reference
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Books and Journals
Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth,
profitability, and family leadership. Springer.
McKeever, M., 2016. How to write a business plan. Nolo.
Finch, B., 2016. How to write a business plan. Kogan Page Publishers.
Gollenia, L.A., 2016. Business transformation management methodology. Routledge.
Drucker, P., 2017. What Makes an Effective Executive (Harvard Business Review Classics).
Harvard Business Review Press.
Sadgrove, K., 2016. The complete guide to business risk management. Routledge.
Ferraro, G.P. and Briody, E.K., 2017. The cultural dimension of global business. Taylor &
Francis.
McKenzie, D. and Woodruff, C., 2016. Business practices in small firms in developing
countries. Management Science.
Online
Financial planning. 2016 [Online]. Available through:
<https://www.financialplanning.org.uk/wayfinder/what-financial-planning>. [Accessed
on 27
th
April 2017].
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