Royal Fast Food: A Report on Launching a New Business Venture

This report analyzes the launch of a new venture, Royal Fast Food, a UK-based fast-food service. The report begins by identifying the target market, which includes children and young adults, and conducting a competitive analysis. It then details the tangible and intangible resources needed. The report presents a business proposal outlining the executive summary, product and service descriptions, marketing strategies, and financial plans. Furthermore, it identifies the essential skills and capabilities required for a successful launch, including financial management, leadership, communication, time management, and problem-solving. The report concludes by discussing promotional activities, such as advertising, publicity, sales promotions, direct marketing, and personal selling, to support the launch and pre-launch of the startup. It also includes an itemized cash budget and discusses the legal form of the venture.

Launching a new
venture

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Identifying specific target market and specify competitive analysis................................1
P2 Tangible and intangible resources required in organisation..............................................2
TASK 2............................................................................................................................................3
P3 Proposal to launch a new business venture.......................................................................3
P4 Skills and capabilities required for new ventures..............................................................4
TASK 3............................................................................................................................................5
P5 Promotional activities to support launch a new venture ..................................................5
P6 Promotional activities for launch and pre launch of start up for Royal Fast Food...........6
TASK 4............................................................................................................................................6
P7 Itemised cash budget for company...................................................................................6
P8 Legal form for the venture ...............................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
In this modern era, there are several small scale units are being established day by day
which provides high growth to the economic condition of the country as well. In addition,
globalisation makes easier the process of implementing SME in a nation. Along with this, such
new ventures are emphasizing on expanding their business by using effective tools and
techniques (Khan and et. al., 2015). Technological advancement assist small businesses improve
their functional areas and get high market growth. For completion of this assignment, Royal fast
food is the selected organisation; the firm provides food services to local people of UK. These
SMEs are affected by different factors, such as- skills, knowledge, resource allocation,
promotional strategies, financial capital, and pricing strategy of business. Therefore, before,
establishing a new business venture management must fulfil all legal requirements as well as
government laws in order to effectively perform in capital market.
TASK 1
P1 Identifying specific target market and specify competitive analysis
Entrepreneurship plays a very imperative role in growth and success of an economy; it
caters job opportunity to people which results improvements in their living standards. It also
consists with starting a new business venture by having an innovative or unique idea of concern.
In current business scenario, globalisation has opened the door of opportunities for various small
business units, as people are willing to invest their money in markets so as to gain high profits
and viability (Koirala and et. al., 2016). Royal fast foods is a new business start-up which
provides qualitative and value added fast food services to people. The unit is located in local
streets of UK and its prices are affordable among customers.
Identification of target market – While establish a new business ventures, management
is required to determine a specific target market to which it will be product. Almost the entire
urban population starts from kids and college going students, vegetarian and non vegetarians.
Thus, the target market of Royal fast food services is youngsters and children who loves fast
food. Determination of target market can help a small business to gain high competitive edge by
providing products and services to customers as per their needs and wants. It increases cost
efficiencies by focusing on marketing efforts on potential customers. Along with this, Royal fast
food service also prefer to select its target market as per customers' profile and their needs as
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well. Starting business in this area will support to increase the sales and profitability of the
enterprise.
Competitive analysis - after analysing a competitive market, managers are required to do
a competitive analysis so as to find out external rivals of the firm which can effect its market
position in future. In this over dynamic environment, everyone wants to expand their business
and for this they are trying to implement new and innovative techniques so as to gain high
competitive edge in the best possible manner (Kuratko and Hoskinson, 2016). While assessing a
market different aspects must be measured and taken into consideration, such are stated as under:
-
 Rivals of the firm
 Find out strength and weaknesses of competitors so as to develop an effective marketing
strategy.
 Analysis competitors' strategies and policies
 Management outlook and structure of target market
 Competitors' product
 Place of doing business.
In order to perform better in target market business organisations should identify these
aspects so as assess the current market situation and acquire strategies accordingly.
P2 Tangible and intangible resources required in organisation
Every business entity needs different sources and assets so as to perform better in market,
in which some of them are clearly show to others whereas some are less obvious. The prime
motive of these resources is to justify business decisions as well as ascertain the worth of the
unit. Resources allocation also allows organisations to receive high cutting edge. Tangible and
intangible are the two major resources of the company which are defined as under: -
Tangible resources – It represent an opportunity for firm through which it can earn high
profits, i.e. distribution of goods, manufacture of goods etc. Such resources or asset cannot sell to
customers, as they are utilised in business operations in order to produce its goods and services
(Liao and et. al., 2016). Along with this, small business entities also use these resources to obtain
credits for improving their cash flows; tangible asset also boost up market value of the firm.
Intangible resources – It involves trademarks, proprietary technology, patents, customers
relationship, corporate image and cultural etc. Although these assets not used in production
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process but have an indispensable role in growth and success of a firm. For example- strong
brand loyalty results to enhance the customer satisfaction level.
TASK 2
P3 Proposal to launch a new business venture
When a new venture has established in market, it provides various benefits to the
organisation by ensuring its success effectively. It is fundamental for business organisations to
plan their marketing activities so as to expand itself in market. Along with this, the firm plans a
new venture in so as to gain high market growth and viability from target market. In addition,
Royal fast food service starts its new venture in Chelsea which is one of the famous place in UK.
Chelsea is a sporting place, as many visitors come every day to visit it, thereby doing a business
is much beneficial for entrepreneurs. A fresh business venture by having new idea will provide
great opportunities to an organisation in order to attain an individual's goals and objectives (Pan
and et. al., 2016).
Proposal of a business venture: - Executive summary – The first stage of business proposal includes introduction of the
entrepreneurs; which describes organisational cultural, mission, vision, standards,
policies etc. The mission statement of Royal fast food service restaurant is to provide
qualitative food services to customers so as attain and retain them for long term period. Discuss products and services – Afterwards, management should discuss their own
products and services so as to achieve its unmet needs and desires. They are required to
adopt new techniques for making necessary improvements in product's quality. In this
stage, it also have to be determined that goods and services are able to satisfy customers'
need and wants in the best possible manner. Develop a marketing strategy – Describing target market of the firm and present its
strategies assists firm to attain their goals and objectives. It involves various testimonials
which defines pre-market testing and interviews so as to promote business in market
(Paradkar, Knight and Hansen, 2015).
 Set up financial plan – at, there is required to set financial capability of the firm; which
dictates how much amount or money it will spend on completion of working activities
and tasks. Setting up a financial plan also defines how to increase profit margins in a
minimum time period.
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P4 Skills and capabilities required for new ventures
Any start up business required effectual skills and competencies that can assists to run it
smoothly. After Brexit, UK government has decided to support small business in terms of
reducing interest rates; it gives chances to convert the ideas into reality. Below describe certain
skills and knowledge which have be considered while start up a new business venture, such as- Financial management – While starting a new venture business owner must know how
to calculate assets and resources. The person should have efficient knowledge to regulate
financial strategies by determining different aspects, such as- market size, budget, assets,
liabilities and investors so as to take better financial decisions (Paudel, Xiao and Yan,
2015). Leadership abilities – The entrepreneur must be a good leader, he or she have ability to
control and direct subordinates in a pervasive manner. Management has to know how to
use leadership approaches within business activities so as to receive better outcomes. In
order to develop an unique style of leadership, Royal Fast food service follows
democratic leadership style where employees decisions are also valued and their
suggestions are respected. Communication and negotiation – For effective implementation of new business start
up, entrepreneurs need to handle day to day business problems as well as negotiations
which are being occurred at workplace. A better communication between employees and
employees will support in making imperative business decisions so as to grab future
opportunities. Time and project management – Managerial department schedule all tasks and activities
with a specific time frame; it allows firm to get efficient approaches and planning
accordingly (Ghimire and et. al., 2015). On the other hand, coping project activities and
operations also reduces the chances of getting failure to Royal fast food services.
 Problem solving – Entrepreneurs or business owners should know how to resolve
business problems and barriers which are occurred while performing all working
activities and functions.
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TASK 3
P5 Promotional activities to support launch a new venture
Promoting a goods and services for a business is crucial to sale an item. Without any kind
of promotional activity a product will remain unknown and hence, a business will suffer. It may
even not able to recover cost of production. For the popularity of a brand it become necessary for
a small or large enterprises to take some promotional activities to launch a product or services. A
company named as Royal Fast Food Service, is initiating for exclusive customized new platter.
Thus, it should consider right group of potential customer, that determine a new product is
catchy for them or not. They can tell the people about the new item, that will influence the
people for purchasing. Promotional activities is an allocation of resources that aid to make a
product in demand. It need to communicate to the potential customers (Ke and et. al., 2015). To
communicate it has some channels, that are as follows:
Advertising: It is a non-personal promotional activity because it is not directly connected
with the potential customers. It is a paid form of any media communication such as magazines,
radio, newspaper, trade journals, TV, internet.
Publicity : It promotes a goodwill of a business through media coverage, events,
sponsorship campaign. Publicity leaves a positive image on customer's mind which increases
sales. For example, if company is going to establish a juice, it can sponsor a charitable program
and promote this juice in that event. This will build a goodwill of a company.
Sales promotion: It involves in- store demo, display of upcoming product, contest
prizes, price incentives like buy one get one free, flat 10% discount. It is sales promotion which
have tactics on the sale of a product.
Direct marketing : Direct marketing leads to straightforward reach to the customer,
which can include door- to -door promotion, and insist them to try a product by ordering (Khan
and et. al., 2015). It can be order through toll free number, coupon code or visiting a store,
through email, promotion on apps.
Personal selling : It can be define as face – to – face selling. When a customer visit to
restaurant, tell them about the new product so that they can order it and suggest it to others also.
These are the promotional activities that assist to promote a business.
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P6 Promotional activities for launch and pre launch of start up for Royal Fast Food
Inaugurating a new venture is quite exciting and enthusiastic. Whether it is a new product
or already an existing one. It is a dream to achieve an instant success with zeal and zest, but it is
not enough to begin. Royal Fast Food needs to prepare some strategy before a huge reveal.
A product should be analysed in which the company is investing, is this product will be
appreciated in market? Study about the market, that will aid to good return in investment. The
most important thing is budget, business should have appropriate finance not only for the
production but also to sustain in fluctuate market conditions (Koirala and et. al., 2016). On the
other hand, it also essential for the firm to engage and sponsor in local events; it results to
enhance their popularity before entering into a market.
There are defined various elements which must taken into account when pre-launch of a start up
business -
 Before pre-launching a product into market, small business ventures must ensure about
their strategic positioning. It means to acquire market changes very easily by formulation
of a strategy.
 Another element is brand development, managers should tries to evolve their own brand
by using innovative techniques and tools, i.e. social media promotion is the best way to
capture customers' eye. Royal fast food service is entered into market by having an idea
of serving organic and low calorie food items. Thus, it is try to improve its popularity in
terms of making people aware about health advantages (Kuratko and Hoskinson, 2016).
 Apart from this, Royal Fast food service should also emphasis on its improving its web
presence. In this relation, they can develop its own social media pages and websites
which elobrate all business detailed and products of the firm. In addition, online food
delivery is one of the best way increase market presence.
TASK 4
P7 Itemised cash budget for company
Jan – may
Year 2013 Jan Feb Mar April May
Food Sales 38,147 37,820 42,060 40,103 43,038
Beverage Sales 13,650 18,650 15,049 14,349 15,399
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GROSS SALES 51,797 56,470 57,109 54,453 58,437
Cost of Sales
Food 12,589 14,525 13,880 13,234 14,202
Beverage 3,412 6,515 3,762 3,587 3,850
TOTAL COST OF SALES 16,001 21,040 17,642 16,821 18,052
GROSS PROFIT 35,796 35,430 39,467 37,631 40,385
General and Administrative
Employee Salaries 12,949 14,118 14,277 13,613 14,609
Management Salaries 3,400 3,400 3,400 3,400 3,400
Employer Taxes/Benefits (15% Wages) 1,962 2,102 2,121 2,042 2,161
Workers Compensation (6% Wages) 981 1,051 1,061 1,021 1,081
Advertising 800 800 800 800 800
Bookkeeping 150 150 150 150 150
Credit Card Charges (1%) 518 565 571 545 584
Insurance 250 250 250 250 250
Legal and Professional Fees 100 100 100 100 100
Misc. Other 250 250 250 250 250
Office Supplies 175 175 175 175 175
Rent 3,200 3,200 3,200 3,200 3,200
Repair and Maintenance 300 300 300 300 300
Small Equipment 200 200 200 200 200
Telephone [phone]
Garbage 200 200 200 200 200
Utilities 1,200 1,200 1,200 1,200 1,200
Total Gen. and Admin. (Fixed) 26,785 28,210 28,405 27,595 28,810
NET PROFIT OR LOSS 9,011 7,220 11,062 10,036 11,575
SBA Loan 3,582 3,582 3,582 3,582 3,582
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Cash Flow After Financing 5,429 3,638 7,480 6,454 7,993
Draw 4,000 4,000 4,000 4,000 4,000
Net Cash Flow 1,429 (362) 3,480 2,454 3,993
Accumulated Cash Flow 1,066 7,000 3,521 10,993
Average Daily Sales / 22 days 2,354 2,567 2,596 2,475 2,656
June – Dec
June July Aug Sept Oct Nov Dec YTD 2013
41,570 35,213 43,038 37,658 44,505 44,016 43,527 4,90,694
14,874 12,600 15,399 13,475 15,924 15,749 15,574 1,80,694
56,445 47,812 58,437 51,132 60,429 59,765 59,101 6,71,388
-
13,718 11,620 14,202 12,427 14,687 14,525 14,364 1,63,973
3,719 3,150 3,850 3,369 3,981 3,937 3,894 47,026
17,437 14,770 18,052 15,796 18,668 18,463 18,257 2,10,999
-
39,008 33,042 40,385 35,337 41,762 41,303 40,844 4,60,389
- - - - - - - -
14,111 11,953 14,609 12,783 15,107 14,941 14,775 1,67,847
3,400 3,400 3,400 3,400 3,400 3,400 3,400 40,800
2,101 1,842 2,161 1,942 2,221 2,201 2,181 25,038
1,051 921 1,081 971 1,110 1,100 1,091 12,519
800 800 800 800 800 800 800 9,600
150 150 150 150 150 150 150 1,800
564 478 584 511 604 598 591 6,714
250 250 250 250 250 250 250 3,000
100 100 100 100 100 100 100 1,200
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250 250 250 250 250 250 250 3,000
175 175 175 175 175 175 175 2,100
3,200 3,200 3,200 3,200 3,200 3,200 3,200 38,400
300 300 300 300 300 300 300 3,600
200 200 200 200 200 200 200 2,400
150 150 150 150 150 150 150 1,800
200 200 200 200 200 200 200 2,400
1,200 1,200 1,200 1,200 1,200 1,200 1,200 14,400
28,203 25,570 28,810 26,582 29,418 29,215 29,013 3,36,617
-
10,805 7,472 11,575 8,754 12,344 12,087 11,831 1,23,771
3,582 3,582 3,582 3,582 3,582 3,582 3,582 42,984
7,223 3,890 7,993 5,172 8,762 8,505 8,249 80,787
4,000 4,000 4,000 4,000 4,000 4,000 4,000 48,000
3,223 (110) 3,993 1,172 4,762 4,505 4,249 32,787
31,725 31,615 28,501 32,787 24,509 19,747 15,242
2,566 2,173 2,656 2,747 2,717 2,686
The following cash budget states the working of start-up through the year.
P8 Legal form for the venture
British government has set certain laws and legislations for businesses those which are
established in UK. Herein, there are many type legal for of venture such as sole proprietorship,
partnership, corporation etc. For such purpose Royal fast food service is a sole proprietor
business that is run by an individual person; he or she is liable for overall working activities and
tasks of the firm. It is one of the simplest structure that usually involves one individual who
involves one who owns and operate enterprise. It is effective as a owner have free selection of
business operation in which a particular company wants to operate along with this it has easy
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commencement as it need not to fulfil any legal formalities. Apart from this they have full
control over their business and can take decision as in an appropriate manner whenever they
want to have it along with flexibility in it. Thus, it was the reason a respective organisation have
chosen sole proprietary for their business operation. In sole proprietary business, entrepreneurs
also takes overall decisions of the firm and solely handles all risks and losses. In cited fast food
outlet the owner has a strong financial base thus he or she covered all risks. To cope up with
these aspects, entrepreneurs assess all external factors and make a marketing strategy. On the
other hand, the owner of Royal fast food is also require to takes a licence so as to ensure legality
or ethicality of the business in target market. It is also fundamental for them to follow up
different laws which are defined as under: - Federal equal employment opportunity laws - This law prohibits discrimination which is
based upon religion, caste, race, sex as well as national origin (Liao and et. al., 2016).
The law includes equal pay to male and women and no discriminations will be made on
the basis of gender; it also preserved people who have major disabilities.
 Workers' compensation – It is essential for employers to buy an insurance policy that
compensates to workers as if when they become ill and get hurt at workplace. In order to
get more aware about workers' compensation law, employer of Royal fast food service
should go through department of labour law.
CONCLUSION
As per the above information it get analysed that small businesses plays a crucial role in
growth and success of an economy. While starting a new business management is required to
determine the target market of the firm so as to deliver same of products as per their needs and
wants. Small business entrepreneurs must evaluated certain factors which can affect their
business and then develop a marketing strategy for the same.
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