Planning a New Business Venture: Healthy Home Report

This report details the planning of a new business venture, specifically a home healthcare service named "Healthy Home." It begins with an introduction that outlines the business concept, target customers (patients discharged from hospitals, those with chronic conditions, and seniors), and the report's objectives. Task 1 analyzes different business organizations (sole trader, partnership, etc.), their benefits, limitations, and risks, concluding that a sole trader structure is most suitable. It also covers sources of finance and legal considerations such as contracts and insurance. Task 2 analyzes market conditions, identifying gaps in the market and defining the target market. Task 3 develops the mission, vision, aims, and objectives of the business, interprets external factors, specifies the business product, proposes business structures and systems, produces business planning forecasts, and identifies responses if targets are not met. Task 4 focuses on pitching for funding and presenting documentation to support the proposal. The report concludes with a summary of the key findings and a list of references.

Planning A New Business
Venture

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Analysis of potential benefits, limitations and risks associated with different types of
business organizations.................................................................................................................1
1.2 Sources of finance for different types of business organisations..........................................1
1.3 The legal considerations relevant to planning a business venture.......................................2
TASK 2............................................................................................................................................2
2.1 Analysis of market conditions that impact on setting up a new business venture................2
2.2 Analysis of gaps in the market for potential products...........................................................3
2.3 Analysis of target markets for a business venture................................................................3
TASK 3............................................................................................................................................3
3.1 Developing the mission, vision, aims and objectives of the business...................................3
3.2 Interpret external factors to justify need for your business product......................................4
3.3 Specifying the business product to meet needs.....................................................................5
3.4 Proposal of business structures and systems that will deliver business aims and objectives
.....................................................................................................................................................5
3.5 Producing business planning forecasts based on targets.......................................................6
3.6 Identifying business responses if targets not met..................................................................6
TASK 4............................................................................................................................................7
4.1 Pitch for funding for a business proposal..............................................................................7
4.2 Presenting documentation to support the pitch.....................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
A business venture can be a small business within an existing company or a fresh new
venture which is independent (Planning A New Business Venture. 2019). All these new ventures
are started to gain the market in future. The product and services launched by the new business
venture must be specific so that it can attract the customers. The new business venture is about
providing Home Heath care services which is named as Healthy Home. The targetted customers
of this business are patient who have discharged from the hospital, patients having chronic health
conditions, seniors and others who does not have so much time to come to clinic or hospital. In
this report, understanding of different types of business organizations and factors that determine
its market potential are discussed. Apart from that, business case and business proposal are also
explained with the context of new venture.
TASK 1
1.1 Analysis of potential benefits, limitations and risks associated with different types of
business organizations
There are many types of business organisations available to open a new business venture
such as sole trader, partnership, companies and unlimited and limited PLC. All these have
specific set of potential benefits, limitations and risks associated with it. Sole trader are the
business in which proprietary of the business belongs to an individual which helps in taking
quick decision. In this business all the decisions are made individually therefore there will be
limitation in the management of operations (Birley, S. and Stockley, S., 2017). The risk
associated with the business can be unlimited liability in which an individuals decision can create
such issue. Partnership is another option for starting a new venture. In this venture, the
ownership stands in the hands of two or more individuals. This results in the consultation in
decision making and thus reduces risks. While operating such organization there could be
conflict in making decisions. The associated risk with this venture is that in case of conflict there
could be loss of control over business. After analysing all the aspects, the organisation here taken
is sole trader because it has the power of taking self and quick decision.
1.2 Sources of finance for different types of business organisations.
Funds are the necessary asset for any of the new business venture. There are different
types of business organisation which are discussed above such as sole trader, partnership etc. The
1

sources of finance in these organisation are also different. In sole trader the collection of funds
can be done through personal finance, savings, profit etc. The entrepreneur can invest in new
venture through it's personal savings or taking subsidy or loan from the bank so that it can easily
operate to the successful running of it. In partnership, the funds are raised initially from
individuals and after that the share of profit becomes the availability of funds.
1.3 The legal considerations relevant to planning a business venture.
Every business venture requires some legal considerations so that it can help in the
successful running of business. The legal considerations of Healthy Home are as follows:
Contract:
This is the law in which a firm makes a contract with its client or customer in the sense of
the services offered by them (Brinckmann, J. and Kim, S. M., 2015). The customer and client are
gathered to make the contract in which all the specific conditions are mentioned in which law
will be effective. This is essential to provide reliable services to the customer.
Insurance
It is another type of contract in which customer is insured so that in case of any type of
casualty it can claim. In such type of business venture it is necessary to avail such facilities so
that customer can trust over the business. In case of any casualty, the company is liable to
compensate it.
TASK 2
2.1 Analysis of market conditions that impact on setting up a new business venture
To set the new business venture market conditions plays an important role in the
succession. In case of Healthy Home, the tendency of people who requires medical treatment at
home is increasing day by day (Burns, P., 2017). The person who have chronic disease requires
more attention by the doctor. This facility is provided by the company Healthy Home. People
does not have so much time and money so that they can afford to make stay the patient for more
time. The customers of company can also be the aged people who are increasing day by day in
UK. Therefore, Healthy Home can provide special attention to that type of patients. This facility
is helpful for the patients are not able to come regularly at hospitals. When this facility comes
into market, people will surely appreciate it. In UK, the rivals are also providing such type of
2

facility to the patients but Healthy Home will be on time, economic and provide quality of
services with highly professional and prescribed doctors.
2.2 Analysis of gaps in the market for potential products
Gap analysis is the assessment of identifying the difference so that requirements of the
customers are meeting or not. Although Healthy Home is setting up its new venture but still, the
company case face serious issue with the new products and services launched in the same field.
The rivals of company can use different technologies and advancement in trends so that they can
attract the customers of it. Another gap the company can feel is that requirements of customers
are not static (Coleman, W. J., Dzansi, D. Y. and Rambe, P., 2015). These requirements are
dynamic in nature, the requirements of customers are not specific, these can be changed as the
time changes. Therefore the changing requirement of customers can also affect the successful
running of this venture. To fill these gaps company has to keep an eye over the requirement of
customers and the strategies of rivals as that effective and high quality services can be offer to
customers.
2.3 Analysis of target markets for a business venture.
Each and every business venture requires the target market which are the end user of their
product and services. These end users are called the target customers. For Healthy Home, The
target customers are as follows:
Age:
In UK, the ageing population has good ratio. Due to this their care is also required. The
regular check-up and treatment of such patients is necessary. Healthy Home provides the
solution for such type of patients. Home assistance is provided to these patients so that they
should not visit to the hospital regularly.
Special Factors:
These are the special factors in which the patients having chronic disease can be included
(Ferreira, A. D. S .M., Loiola, E. and Gondim, S. M. G., 2017). The chronic patients are not able
to visit the hospital again and again. Therefore, Healthy home decided to provide their services
to the patients having chronic disease and who are not able to come to hospital.
3

TASK 3
3.1 Developing the mission, vision, aims and objectives of the business
Every organization before starting of a new business requires to develop its mission,
vision, aims and objectives. Mission, vision, objectives and aims of Healthy Home are as
follows:
Mission:
“To provide high quality medical care at home with highly specialized doctors in an
effective manner.” This is the mission statement of Healthy Home business in which they wants
to provide better services from their professional doctors.
Vision:
“To be the most trusted health care provider, availing needs and requirements of each
individual through the medical standards.” In this vision statement, the company wants to be the
most trusted health care provider so that they can provide medical assistance to their patients
with reliability.
Aim:
“To increase the range of services where ever the opportunities meet to fulfil the
demands of customers.” The aim of company is to increase the opportunities in their business so
that they can get more reliability on their shoulders.
Objectives:
The objective of the company is “to increase the sales of the company by 10% in the next
one year”. Company has the objective that people should have been aware about their health
which can help them to live happily.
3.2 Interpret external factors to justify need for your business product.
Following are the external factors which can impact on the working of business.
Political:
In this factor the political situation in the country is considered (Honig, B. and Hopp, C.,
2016). The stability of government in power plays an important role in the succession of a
running business. In case of Healthy Home, the government of UK is stable and will support this
type of new venture.
Economical:
4

In this factor, the economic condition of country depends. In case of Healthy home, the
purchasing power of individuals plays an important role in the succession of business. Having
good economic condition will provide customers for a new business.
Social:
This is the factor in which the personal aspects of customers are considered. These
aspects include age, gender etc. There are a lot of people in UK who are over 50 years of age,
therefore the chances of survival of Healthy Home is more in the market.
Technological:
The technology in medical care helps the patients to get their solution easily. The
patients can call or message the Healthy Home so that their doctors can come and enable to
provide proper treatment to the patient on time. All the procedures are done online which can
give assistance to the patients.
3.3 Specifying the business product to meet needs
To successfully meet the needs of business there should be specification of the business
which is done here as under:
Target Market:
The target market of Healthy Home is chronic patients and the aged person who are not
able to come at regular interval of time in the hospital (Jansen, W., 2017). There are good
number of aged patients in UK, therefore there is good chance of succession of business.
Purpose:
The purpose of Healthy Home is to provide effective measures to the customers by the
expertise team of professional doctors so that patients will not bear the pain to travel at hospital.
The doctors can visit their home to make them healthy.
Marketing:
It is also one of the main specification of a business. Marketing is necessary for the
business so that the customers can know about the business of company. This result in the
increment of business.
3.4 Proposal of business structures and systems that will deliver business aims and objectives
There are different structures and systems that will deliver business aims and objectives:
Organizational structure:
5

The organizational structure of Healthy Home is centralized in nature. As discussed
earlier that the company is sole trader therefore it has a centralized structure in which all the
decisions are made by the supreme leader. This helps the company to make quick decisions in
favour of it.
Communication and customer service:
This is another system in which communication plays an important role in delivering the
business aims and objectives (Karia, M., Bathula, H. and Abbott, M., 2015). Healthy Home
requires good communication skill so that they can effectively treat their employees according to
their problem. Customer service is an important task for the company because it is dealing in
hospitality service which requires satisfaction of customer.
3.5 Producing business planning forecasts based on targets.
A business requires forecasting and planning so that it can complete its targets and
objectives. The targets are based on behalf of business planning. Therefore business forecasting
is required to achieve those targets.
Financial forecast:
It is the forecasting in which funds required in future are considered (Kuratko, D. F. and
Hornsby, J. S., 2017). Since Healthy Home is collecting its funds through personal loans, savings
etc. Therefore in future when there will be requirement of funds, it can be collected through the
above listed sources so that targets can be achieved easily.
Sales forecasting:
It is a type of forecasting which a company is looking to achieve at the planning of
targets. This is the estimated range in which business wants to go through. In case of Healthy
Home, the sales in a year should be increased with 10%.
3.6 Identifying business responses if targets not met
Although every organization wants to achieve their target but in case of failure of target
to be achieved, there are some business responses which can be used by Healthy Home to sustain
themselves:
Use of contingency funds:
This is a type of fund which can be used by an organization in case of an emergency.
Healthy Home can also use this fund when all the preset targets will not achieved. That is why
6

this funds is retained. The company should collect these funds because of its importance in the
succession of a business.
More funding:
This is a type of funds in which Healthy Home can avail from its stakeholders and
individuals to fund the company (Long, D., Geng, L. and Shakeel, M., 2016). This type of
funding can be gathered with the help of shares and debentures. This will assist the company to
gather funds and run successfully.
TASK 4
4.1 Pitch for funding for a business proposal
In present persuasive case for Healthy Home, the chances of succession of business are
good because in UK the aged patients have a significant number. In case of other competitors
and rivals, the market occupied by them is quite big. By providing the services to the customers
which are specific in nature it would be easier for the company to sustain itself in this
competitive market (Prashantham, S., Dhanaraj, C. and Kumar, K., 2015). Although the market
does not have such competition because a few companies are there which are engaging
themselves in providing medical assistance at home. The profit in this business is excellent
because the patient which is not capable of coming to hospital can pay good for their betterment.
In future this business can grow itself in the other countries also which have huge market. The
countries like India and China which have a huge number of population can be the better place
for these types of services.
4.2 Presenting documentation to support the pitch.
Vision and Aims:
“To be the most trusted health care provider, availing needs and requirements of each
individual through the medical standards.” This is called the vision statement of company which
emphasises to win the faith of customers.
Needs and Target Market:
The needs of company is to provide better services to the patients because in hospitality
sector, customer satisfaction plays an important role in its succession. The target market of
company are the aged people and the chronic patients which are not able to come at hospital in
regular intervals of time.
7

Forecasts:
In future the company can gain the market share by 30% to 35% within 2 to 3 years of
time. This will specifies the success of company.
CONCLUSION
From this report, it can be concluded that to start a business, first work is to provide the
type of organization and than the collection of funds is important. After the collection of funds, it
is necessary of the company to determine the external factors which can affect the working of it.
Gap analysis and target markets also helps the company to overcome the issues and calculating
the risk which can come in business. The business case and systems also helps the company to
identify the specifications, business forecast, business response of it. In the end, the persuasive
case of company allows the investors to invest in the company.
8

REFERENCES
Books and Journals
Birley, S. and Stockley, S., 2017. Entrepreneurial teams and venture growth. The Blackwell
handbook of entrepreneurship. pp.287-307.
Brinckmann, J. and Kim, S. M., 2015. Why we plan: The impact of nascent entrepreneurs'
cognitive characteristics and human capital on business planning. Strategic
Entrepreneurship Journal. 9(2). pp.153-166.
Burns, P., 2017. New venture creation: A framework for entrepreneurial start-ups. Palgrave.
Coleman, W. J., Dzansi, D. Y. and Rambe, P., 2015. Enhancing new venture creation success in
South Africa: A project management perspective.
Ferreira, A. D. S .M., Loiola, E. and Gondim, S. M. G., 2017. Motivations, business planning,
and risk management: entrepreneurship among university students. RAI Revista de
Administração e Inovação. 14(2). pp.140-150.
Honig, B. and Hopp, C., 2016. New venture planning and lean start-up activities: A longitudinal
empirical study of entrepreneurial success, founder preferences and venture context.
In Models of start-up thinking and action: Theoretical, empirical and pedagogical
approaches (pp. 75-108). Emerald Group Publishing Limited.
Jansen, W., 2017. New business models for the knowledge economy. Routledge.
Karia, M., Bathula, H. and Abbott, M., 2015. An experiential learning approach to teaching
business planning: connecting students to the real world. In Exploring learning &
teaching in higher education (pp. 123-144). Springer, Berlin, Heidelberg.
Kuratko, D. F. and Hornsby, J. S., 2017. New venture management: The entrepreneur’s
roadmap. Routledge.
Long, D., Geng, L. and Shakeel, M., 2016. Antecedent factors of business planning in the new
venture emergence in China. Chinese Management Studies. 10(3). pp.510-526.
Prashantham, S., Dhanaraj, C. and Kumar, K., 2015. Ties that bind: Ethnic ties and new venture
internationalization. Long Range Planning. 48(5). pp.317-333.
Online
Planning A New Business Venture. 2019. [Online]. Available
through:<https://articles.bplans.com/business-ideas/7-steps-to-starting-your-own-
business/>.
9