Report on Launching a Biodegradable Water Bottle Venture

This report details the launch of a new venture focused on producing biodegradable water bottles. It begins with an introduction outlining the venture's goals and the report's structure. The main body covers various aspects, including the new venture idea, market research using Porter's Five Forces, and identification of the target audience. It explores tangible and intangible resources, capital requirements, and human and social capital. The report then presents a new venture proposal, including a contingency plan and sources of finance such as bank loans and angel investors. It discusses the skills required for launching a new venture, such as leadership and risk-taking, and explores various promotional activities like advertising, social media, and supply chain optimization. The report also provides a detailed promotional plan, including pre-launch activities like sampling and trials, and discusses promotional techniques. A monthly cash budget and the legal form for the new venture are also included. The report concludes by summarizing the key findings and offering recommendations for the venture's success.

LAUNCHING A NEW
VENTURE

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
P1 New venture idea....................................................................................................................3
P2 Tangible and intangible resources..........................................................................................4
P3 New venture proposal.............................................................................................................6
P4 Skills required for launching new venture..............................................................................7
P5 Various promotional activities...............................................................................................8
P6 Promotional plan....................................................................................................................9
P7 Monthly cash budget............................................................................................................10
P8 Legal form for new venture..................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Launching the new venture is one of the daunting task but is one of the most imperative
step towards the career. Success and failure of the new venture basically depends on how
effectively and efficiently the venture markets its brand and products. The main aim of this
report is to launch a new venture producing biodegradable water bottles and devise a
promotional plan for advertising its brand message and product.
This Report gives a brief about new venture idea, tangible and intangible resources, new
venture proposal, skills required for launching new venture, various promotional activities,
promotional plan, monthly cash budget and legal form for new venture.
MAIN BODY
P1 New venture idea
The organization has decided to launch the new biodegradable water bottles. Nowadays,
people have become highly health conscious and thus have become highly aware against the use
of plastic. Thus, in this world of sustainability the business of biodegradable water bottle will
help to meet the needs of customers and will help to penetrate the market. The target audience
will be both male and female especially the youth and people between the age 30-45. Along with
this, the venture for its biodegradable water bottles will also target middle class people due to
affordable price of bottles. The main reason behind choosing this age factor is that they are
health conscious and thus spends their time in exercising and gym where they need lots and lots
of pure water to hydrate themselves.
Market research
There are generally two types of the market research primary and secondary. Primary
market research is the first hand information collected by the researchers. On the other hand,
secondary research is the one in which researcher collects the already available information
which has been gathered by someone else in past. In order to identify the potential customers,

secondary research will be used where data will be collected from various journals, books etc
(Kuratko and Hornsby, 2017).
Porter five forces
Threat of new entrants
The threat of new entrant in the plastic industry is generally high as it requires high
amount of capital expenditure. Thus, in this case this threat will be low for biodegradable water
bottles.
Power of suppliers
There is generally low number of suppliers in this industry and thus they have less
influence over the process of the products. This makes this threat low for the biodegradable
water bottles.
Power of customers
There are generally large numbers of customers in comparison to suppliers in this
industry thus they have high influence over the prices. This makes the threat high for these
bottles as customers might switch to other competitors.
Threat of substitutes
There are generally high number of substitute available of the plastic bottles where
competitors sell them at low prices to attract customers. Thus in this way, this threat will be high
for biodegradable water bottles due to presence of substitute products.
Rivalry among firms
The intensity of competition would be high for the new venture as it is new in the market.
Besides this, due to the strong presence of various competitors in this industry, this new venture
might face a heavy brunt.
M1

There are generally a range of methods as well as techniques which helps in analyzing
the competition. One and foremost is identifying the competitors and their strength and
weakness. Porter five force is one of the framework which help in assessing the intensity of
competition in market and thus helps in reducing variety of threats.
P2 Tangible and intangible resources
There are generally three types of the resources which will be required for te launch of
this new venture.
Tangible resources
These are typically the physical assets which are owned by the company. The major
physical assets which will be required for its launch are equipments, premises, vehicle, building
etc.
Intangible assets
These are basically the assets that does not have any physical presence and thus cannot be
touched or sensed. The major intangible assets which will required for launching new venture are
intellectual property like patents, copyrights, trade mark. These will be required for making the
brad successful and differentiable (Kirkley, 2016).
Capital requirements
Human capital
This consists of skills and knowledge possessed by the individuals. For making the
venture successful, humans that are employees will be required who are highly experienced.
Social
It is network of the relation which exists between the organizations for meeting its goals.
The major social capital which will be required for launching new ventures are the association
memberships, and institutions that will help in carrying out activities.
Financial capital

The major financial capital which will be required for launching the new venture are debt
equity and working capital. Venture will depend on various sources for the funds.
M2
The major strength of the new venture is that it offers the superior product that is
biodegradable water bottles which will meet the health conscious needs and wants of the
customers. On the other hand, major weakness of the new venture is that being new, it does not
have much good and recognizable brand reputation and thus the customer base is somewhat low.
The major areas of risks are the IT due to less trained employees and competition in market
(Burns, 2017).
P3 New venture proposal
Contingency plan
A contingency plan is basically the proactive strategy which addresses the various courses of the
actions as well as steps that management of organization needs to undertake in response of any
uncertain event which might happen in future. It is highly essential to have the contingency plan
and it protects the organizations from severe financial and human capital losses. This is simply a
backup plan in case the primary plan does not work. This new venture will have a contingency
plan in its new venture launch. If in the future due to some circumstances, company faces the
sever losses or become prone to debt then it will collaborate with the other ventures and will
build great relation with them. Besides this, if due to any natural disaster the employees get
suffered company will have a free insurance of the employees in advance to protect them and
their families (Géraudel, Gast and Gundolf, 2017).
Sources of finance
For starting the new venture, source of the finance is one of the most important aspect
without which no enterprise can survive. In order to successfully penetrate the market, new
venture will depend on multiple source of finance
Bank loans

This is one of the most essential as well as fundamental source of finance where banks
lend certain amount of money or goods and charges interest in exchange of it. New venture will
take bank loans from the trusted financial institutions and this will help in their expansion as well
as day to day activities.
Angel investors
Angel investors are predominately the individuals who mainly provide capital and fund for the
start-up businesses in exchange of the ownership equity. New venture will seek the support of
angel investors who are highly trusted and these will invests in their business (McKelvie,
Wiklund and Brattström, 2018).
Friends and family
This is the another source of finance upon which the new venture will rely on. This is
actually borrowing the funds from friends and family. The main advantage of borrowing from
relative is that it is interest-free or they charge a low rate of interest. Thus this will help the new
venture to manage their working capital at low expense.
Planning resources
Planning resources are some of the tangible and intangible resources on which the new
venture will rely on. Some of the tangible assets which will be required by the new venture
include equipments, instruments, machines, IT facilities, building etc. These tangible assets re
required by the new venture and will serve as collateral for taking the bank loans. Intangible
assets or resources on the other hand, which will be acquired by new venture are the intellectual
property like copyrights, patents etc. These assets will eventually provide the competitive
advantage and will protect the new ideas, brand and trademark of the new venture.
P4 Skills required for launching new venture
There are various skills as well as capabilities which will be required for launching this new
venture.
Leadership

This is one of the most important skill as well as ability which will be required for the
launching of this new venture. The leadership quality will basically help to motivate the
employees and thus improve their overall productivity. Thus leadership quality will be developed
through the attending the various seminars and events arranged by the large organizations and by
understanding the needs and wants of the employees (Berry, 2017)
Risk taking
This is the another quality which is highly essential while launching the new venture as
new venture are more prone to risks. Thus, risk taking is the ability where the individual should
have the sense that what amount of risk will be beneficial for the company. This risk taking
ability among the employees will be developed by providing them effective training and
development. This training will eventually help to make the employees aware about the various
risks and will help to learn that what risk they should take and to what degree.
M3
There are various skills as well as capabilities which are required for the launch of the
new venture like leadership, risk taking, team work, market knowledge etc. There are various
methods through which these can be acquired. For example- through proper training and
development, a sense of team work and leadership can be inculcated within them. Besides this,
for the market knowledge, well through market research is essential through which this skill can
be acquired (Liu and Wang, 2018).
P5 Various promotional activities
Advertising
This is one of the most important promotional activity which will help in launching the
new venture. Advertising is basically the communication of the brand message in order to sell
the product or service. People will be made aware about the new venture through advertising at
large platform.
Social media

This is the another extremely important yet essential promotional activity which will be
employed by the new venture for increasing its brand awareness and promoting its biodegradable
water bottles. New venture will make the use of various social media platforms such as
facebook, instagram, twitter where they will promote its new idea and this will help to increase
their overall customer base (Domurath and et.al.,2020).
Supply chain
In addition to the promotional activities, new venture will also improve its supply chain
for promoting its biodegradable water bottles. This is highly fundamental promotional channel
through which organizations ensure the efficient delivery of their products and services. New
venture will basically optimize its supply chain and extend it to penetrate the large market.
P6 Promotional plan
Pre-launch promotional activities
Before launching the product in market, it is highly essential to test the product before it
goes among people in order to measure its effectiveness as well as feasibility. Before launch of
the biodegradable water bottles, venture will undergoes two pre-launch activities.
Sample
In this, a sample of biodegradable water bottles will be given to the target customers in
order to test its efficiency. This sample will help the venture to know whether the product is
being liked by the customers or not (Del Bosco, Chierici and Mazzucchelli, 2019).
Trial
Within this stage, venture will basically show the trial of bottles at various places like
malls, cinema halls, shops etc. This trial will include showing the features of bottles to the
customers by testing in front of them like its quality etc.
Promotional technique
Social media

During the launch of the biodegradable water bottles, promotion is one of the most
important aspect. Thus, new venture will promote these water bottles at a large platform. One of
the method which will be used is the social media platform. Venture will advertise the product at
various sites like facebook, instagram etc. This online promotion will help them to attract the
customers to a large extent.
Virtual tour
Venture will also engage in providing a virtual tour of the product to customers. This will
actually be a simulation where a sequence of videos about the biodegradable water bottles will
be shown. These videos will make use of live television and will show the distinguishable
characteristics of the product.
Key promotional message
Our company offers the great quality biodegradable water bottles which are a perfect
blend of sustainability and excellence which are ethically tested to facilitate the health of
customers and contribute towards environment.
M4
The promotional plan basically includes the two phases pre-launch and launch. During
the pre-launch, various activities like sample, trial helps in measuring the feasibility and
effectiveness of product. Once the pre-launch is successful, in the launch phase new venture
undergoes various promotional activities for promoting company and products like social media.
P7 Monthly cash budget
Partic
ulars
Jan
uary
Febr
uary
Ma
rch April May June July
Augus
t
Septe
mber
Octob
er
Novem
ber
Decem
ber
Cash
inflow
s

Opening
cash
inflow 5000 6300 8682 11146 13691 16318 19026 21815 24684 27632 30659 33764
Sales
revenu
e
1000
0 10200
1040
4 10612 10824 11041 11262 11487 11717 11951 12190 12434
Other
income 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
Total
cash
inflow
s
1700
0
1850
0
210
86 23758 26516 29359 32288 35302 38401 41583 44849 48198
Cash
outflow
s
Materia
l 2500 1530
1560
.6
1591.8
12
1623.64
824
1656.12
1205
1689.24
3629
1723.02
8501
1757.48
9072
1792.63
8853
1828.49
163
1865.06
1463
Labour 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
Other
expens
es 2200 2288
238
0 2475 2574 2677 2784 2895 3011 3131 3257 3387
Adminis
tration
expens
es 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000
Total
cash
outflo
ws
1070
0 9818
994
0.12
10066
.5128
10197.
33707
10332.
75759
10472.
94547
10618.
07842
10768.
34098
10923.
92484
11085.
02906
11251.
86039

Cash
deficit
/
surpl
us or
closin
g cash
balan
ce 6300 8682
111
46 13691 16318 19026 21815 24684 27632 30659 33764 36946
M5
The monthly cash budget is designed keeping in view the overall overhead expenses. The
total cash flow in the following years have increased. The cash deficit is around 36946. The
monthly cash flow budget represents that the cash outflow is higher than cash inflow.
P8 Legal form for new venture
There are generally various kinds of the legal forms for business namely
Sole trader
A sole trader is basically the individual or enterprise which is mainly owned as well as
run by single person. There is no legal distinction between owner and business entity.
Limited company
This is actually a private company where the liability of the members is limited to the
amount they have invested within company. In this, the company is legally a distinct body and
owners are responsible for all the debts.
Partnership

Partnership is basically the form of business in which two or more than two parties agree
to collaborate through their mutual interests and thus works in association. In the partnership,
debts as well as profit are shared by the partners and they equally have the responsibility to
manage company (Fountain and Zimmerer, 2018).
Franchising
This is actually the legal form for the business expansion in which franchisor basically
pays the royalty for right to conduct the business under the franchisor name. In short, franchising
provides the license to franchisee for conducting business and allows using their proprietary
knowledge.
The most appropriate legal form for the venture which will be helpful in penetrating
market as well as increasing customer base is partnership. Partnership is the legal form in which
parties works together and thus shares all the profit and loss. The most important benefit of
starting venture in partnership is the tax benefit. There is generally no taxation at this level and
partnership firms does not pays the income tax instead there is single layer of the taxation.
Another benefit of partnership for the new venture is that all the profits as well as losses are bear
by the partners. It means that the looses and debt will not be the responsibility of single owner
and thus it will offer high flexibility to the new venture.
CONCLUSION
It has been summarized that it is highly essential to conduct competitive analysis through
which new venture are able to analyze the intensity of competition within market. For starting
the new business or venture, there are ranges of tangible and intangible resources as well as skills
which are needed for penetrating the market like leadership, risk-taking etc. Before launching the
venture and its product, pre-launch and launch phase are conducted. In pre-launch, ventures
assess their credibility and degree of awareness about their products within customers. In launch
phase, ventures finally promote its products at large platform and release the product in market.
Besides this, there are various legal forms which addresses that which type will be beneficial for
the new venture to start with as each one of them has their own advantage and disadvantage.

REFERENCES
Books & Journals
Berry, G.R., 2017. Feasibility Analysis for the New Venture Nonprofit Enterprise. New England
Journal of Entrepreneurship.20(2). p.4.
Burns, P., 2017. New venture creation: a framework for entrepreneurial start-ups. Palgrave.
Del Bosco, B., Chierici, R. and Mazzucchelli, A., 2019. Fostering entrepreneurship: An
innovative business model to link innovation and new venture creation. Review of
Managerial Science.13(3). pp.561-574.
Domurath, A and et.al.,2020. New venture adaptation in international markets: A goal
orientation theory perspective. Journal of World Business.55(1). p.101019.
Fountain, M.W. and Zimmerer, T.W., 2018. Launching Successful Ventures. SAGE Publications.
Géraudel, M., Gast, J. and Gundolf, K., 2017. New product and service launching in new
ventures: a multilevel approach to innovation antecedents. Economics of Innovation and
New Technology.26(4). pp.353-367.
Kirkley, W.W., 2016. Creating ventures: decision factors in new venture creation. Asia Pacific
Journal of Innovation and Entrepreneurship.
Kuratko, D.F. and Hornsby, J.S., 2017. New venture management: The entrepreneur’s roadmap.
Taylor & Francis.
Liu, H. and Wang, Y., 2018. The value of crowdfunding: An explanation based on demand
uncertainty and comparison with venture capital. Emerging Markets Finance and
Trade.54(4). pp.783-791.
McKelvie, A., Wiklund, J. and Brattström, A., 2018. Externally acquired or internally generated?
Knowledge development and perceived environmental dynamism in new venture
innovation. Entrepreneurship Theory and Practice.42(1). pp.24-46.