Business Plan: Shiro Nine Coffee Shop New Venture Report

This report comprehensively analyzes the launch of Shiro Nine, a new coffee shop venture in the UK. It begins with an introduction to the business and its objectives, followed by an investigation of the target market and a competitive analysis using Porter's Five Forces model. The report identifies tangible and intangible resources required for the venture, including employees, financial resources, and physical assets. It then develops a credible proposal, including an executive summary, company description, market analysis, and financial projections. The report assesses the skills and capabilities necessary for launching the venture, such as decision-making and risk-taking abilities, and discusses promotional activities and channels for both launch and pre-launch phases. A cash budget is prepared, and the appropriate legal form for the venture is advised. The report concludes by summarizing the key findings and recommendations for the successful launch and operation of Shiro Nine, emphasizing the importance of market research, resource management, and strategic planning. References to relevant literature are also included.

a New Venture

Table of Contents
INTRODUCTION................................................................................................................................4
TASK 1 ...............................................................................................................................................4
P1 Investigate & explain new venture identifying specific target markets & undertaking
competitive analysis.........................................................................................................................4
P2: Analyse specific tangible & intangible resources that would be require for the launch of a
new venture ....................................................................................................................................6
P3 Develop and produce credible proposal for new product ..........................................................7
TASK 2 ................................................................................................................................................8
P4 Assess skills and capabilities required to launch a new venture & how they can be developed
.........................................................................................................................................................8
TASK 3.................................................................................................................................................9
P5 Discuss different promotional activities & channels that unpin launch ....................................9
P6 Develop an promotional activities plan for both launch and pre-launch..................................10
TASK 4...............................................................................................................................................11
P7 Prepare a Cash Budget for the launch of venture.....................................................................11
P8 Advise appropriate legal form for venture stating & why it has been chosen..........................13
CONCLUSION..................................................................................................................................14
REFERENCES...................................................................................................................................15
Books & Journal:...........................................................................................................................15

INTRODUCTION
Business is evolving with changing period of time and it plays vital role within in market.
An entrepreneur always start business with new idea & process with motive of creating a change.
Innovation & inventions are the major component of business which are needed to be carried out
properly. Shiro nine, a coffee shop has been launched UK. The coffee shop serves with all varieties
of coffee and other bakery items such as breads, snacks etc. This report includes identifying of
specifying market, tangible and intangible resources, proposal for launching a venture, skills &
capabilities required, different promotional activities, monthly cash budget and legal form. To run a
new venture in appropriate way it is important to conduct a proper market research with appropriate
considerations (Kirkley, 2016). Launching a new venture is not a an easy task and requires high
level skills & knowledge.
TASK 1
P1 Investigate & explain new venture identifying specific target markets & undertaking competitive
analysis
Shiro Nine, has launched their venture as well as business & is being considered as best
place for entertainment, spending quality of time etc. The coffee shop has been able to provide
quality of service, focused on current customer requirements as well as demands and at affordable
prices. Coffee has been always a great substitute for tea and other drinks, due to this many people
are addicted to coffee. After a market analysis and research, the chosen venture has planned to
provide all types of coffee with different flavours, taste & demands propose by customers. Also, to
provide customers with total satisfaction, the venture is hiring skilled staff & employees who have
the capability of handling customers in difficult situations (Kamasak, 2017).
Target market
It is defined as category of market which which is being identified on the basis of their
characteristics such as income, lifestyle, regions, taste etc. In relevance with Shiro Nine, they have
been targeting all levels of customers that consume coffee on daily basis and like to visit outdoor
places. By targetting market, it is easier to identify the potential customer for business. This assist
new business in
So, the characteristics of target market are given below-
Psychological factor- This type of market includes views, personality, opinions of people.
In relation with chosen new venture, they carry out their operations/ business activities on the basis
of these elements in which it targets high, middle & lower income group of people. Moreover, it

provides with coffee's with different options of flavours, add ons ingredient.
Competitor analysis
It is process through which entrepreneurs are able to maintain and manage relationship with
those forces who work with competitors and rivals of same category of business. To understand
competitor analysis, Porter five force model has been discussed-
Bargaining power of buyer- In the location, there are many other coffee shops who target
same market but in comparison with selected firm, they differentiate them selves from other shops
as they provides ad ons options of flavours to their targeted customers. With adaption of their
unique concept they are able to acquire low bargaining power which also leads to higher profit &
revenue (Bellia, 2017).
Bargaining power of suppliers- The venture Shiro Nine is newest in market and region
due to which they have to make networks within the business as well as with vendors. Thus,
suppliers have high bargaining power & also it results in dominating nature of vendors. So, it is
essential for them choose the suitable vendors for business or resources. They are the sources who
help in delivering of output and products to the end users and market. The suppliers often demands
high bargaining power with aim of providing low quality of products and gaining more profit.
Threat of substitution- In context with chosen venture, the threat of substitution is high
which leads to bad situation for business as changing demands of customers are dynamic in nature.
Substitution refers to replacement of existing product from a new one. To deal with this situation, it
is necessary for firm to produce & implement effective strategies so that problems could be faced in
most efficient manner (Dao, 2018).
Threat of new entrance- In reference with Shiro Nine, degree and threat of new entrance is
moderate as with the rising of globalization many new ventures are being establishing within the
market. Thus, the chosen firm need to be more aware & active so that new established business and
their activities are examined properly. New entrance have high power when there is no government
legislations, less present of competitors.
Competition rivalry- In this form of business, the competition of rivalry is quite high as
due to the increasing number of customers demand of beverages. In context with Shiro Nine, it is
challenging situation for them which is needed to be handled with environment analysis. It is
necessary for them to analyse their competitors so that strategies will be used accordingly.
So, after analysing the stated paragraph it shows that identifying of specific target market is
necessary so that owner is able to understand market situations in most efficient way.

P2: Analyse specific tangible & intangible resources that would be require for the launch of a new
venture
In business, resources are the base without which it is not possible to carry out the activities
& other functions of business in proper manner. It is crucial to determine types of resources which
are tangible or intangible needed to achieve goals and objectives in most effective way. It is duty of
HR department to examine which resource is most important for business. It require strong network
connections to acquire both resources.
Tangible resources- These refers to those resources which can be touched, and are used on
daily basis. They are actual responsible for achieving final output of business. Machinery,
equipment, manpower, staff comes under this category.
Employees- They are being considered as most crucial resources as because they help in
delivering of projects, work on given deadline and time. In relation with Shiro Nine, they hires
skilled personnel and provide them with accurate training which develops their abilities to handle
customers (Dao, 2018).
Financial resources- Every business whether it is new or established requires money and
capital for running their activities & functions. To acquire these resources a budget is being
prepared by organisation to analyse the amount capital as well as cash flow statement. For this,
knowledgeable an experience people are to employed who are from accounts background. In
context with selected corporation, they need to pay more focus towards their finance & audit team.
Physical resources- In this, these comprises of assets, land, raw materials etc. are being
recognized as physical resource. Such type of resources also are essential for achieving objectives.
In relevance with selected firm, they need to use them in most efficient so that they can be also
adapted in future perspective (Sinkovics, 2018).
Intangible resources-
They refers to those which cannot be touched but felt and experienced such as goodwill,
value, comes under this category. Furthermore, abilities, skills are also being used as intangible
resources. In relevance with chosen organisation, they also use them with proper considerations.
P3 Develop and produce credible proposal for new product
When starting a new venture, it is essential to produce a effective plan a because without
planning it is not possible for any organisation to run their business without facing any problem and
achieve goals. In relevance with Shiro Nine, they also need to produce a plan so that all activities
and other important decisions are being clearly understood. It requires a deep analysis and

understanding of market/business then only the objectives could be achieved.
A plan includes vision, mission, objectives, etc. So, an effective proposal is being explained below-
Executive summary Shiro Nine, a new venture established in UK.
The firm provides coffee, snacks & other drinks
with varieties of options. The main motive of
launching of this new venture is to provide
customers with total satisfaction & with new
flavours of coffee.
Company description The coffee shop, named as Shiro Nine is being
launching in market of UK. It provide new
beverages to customers with as ons options. The
main objective is to acquire large market share
growth by providing end users with quality of
products and services(Fahad, 2020).
Market analysis
When launching new venture, it is essential to
examine as well as analyse the market so that
decisions are being made accordingly. To do
this, selected enterprise uses Porter Five force
models. Through competitor analysis it is easier
to use or implement strategies. Also, there many
other tools for market analysis which are SWOT,
Pestel, Porter Generic strategy, etc. It depends
upon the firm to choose most suitable
framework (Zaremba, 2017).
Financial projection This is also crucial for new venture as because it
help in analysing whether business have
adequate funds or capital for running the
operations and functions or not. So, in this
coffee shop total finance which is being required
is € 30,000.
Benchmarking It is defined as comparison of performance or
progress level with similar category of business
or industry. The chosen firm need various things
to analyse the comparison such as market
emerging trends, rivals, etc.
So, from above stated paragraph it has been seen that producing a plan is essential as it help
carrying out the further processes in well organised manner. Furthermore, planning is being done so
that resources & capital how they can be used during launching of new venture is examined and
which will also leads to making changes in proper way. Therefore, with appropriate plan decision
making can also be done in effective manner.

TASK 2
P4 Assess skills and capabilities required to launch a new venture & how they can be developed
In this competitive era, it is necessary to have a skills as well as capabilities so that venture
is launched in appropriate manner. Also, through this it is crucial to use them at the right time when
they are actually required. Thus, different types of skills and capabilities are explained below-
Skills-
It is defined as individual ability to achieve objectives and handle things in critical
situations. Therefore, employees need to have skills so that they are able to complete the given task
on deadline. Through these, they are also able to handle difficult challenge and task with proper
measures. The HR manager needed to have proper analysis of such skills so that it is easy to
examine the potential employee which assist in launching process.
Skills which are required are-
Decision making skills- In business, it is necessary for entrepreneur to make appropriate
decisions so that it become easy to achieve mission and vision of company. In market there are
various factors which are required to be examined which affects the decision making. This skill can
be developed by dealing with hypothetical situations & implementing development programme.
(Chowdhury, 2020).
Risk taking ability- It is also essential one which is needed as in business risk is associated
with it & important to take risks as well as handle them properly. It is necessary to manage risk so
that critical situations are to be handled effectively. Entrepreneur cannot avoid the risk, which
depicts that this ability is needed at every phase of business.
Managerial ability- This is being considered as is crucial as it involves organising,
planning, monitoring etc. which plays vital role. So, to launch new venture it is crucial for chosen
entity to effectively manage and handles all functions as well as operations so that everything being
carried out properly. With the help of this, it is easier to organise everything in proper manner so
that activities are done in correct way (Darmawan, 2020).
Time management- Them comes the time management skills in which task or work
assigned and how they could be achieved or completed on time is analysed. It is essential to manage
all activities so that problems or errors are being reduced. To manage time, selected corporation can
use Gantt Chart that will assist them in segmenting of tasks appropriately be focusing on all
elements. Through appropriate time management, it is also possible to reduce conflicts & issues
within the organisation.

So, after a brief analysis of above matter it has been analysed that the above stated skill as
well as capabilities will help new venture to launch their firm in most proper manner. Moreover,
they are to be used in such a way that decisions are being made properly. It is duty of manager to
make ensures that both are used at right place and at right time.
TASK 3
P5 Discuss different promotional activities & channels that unpin launch
In business sector, when new product or venture is being launched and to attract customers it
is essential to use promotion & advertising in proper manner. Through use of these both
approaches , venture can target or access larger market as well as customers for their product and
within a given period of time. Moreover, when these techniques are being used by entrepreneurs or
managers they focus on different factors such as cost, scope, time etc. There are various ways of
using promotional activities which are discussed below-
Online marketing- It refers to use of promoting of product or services by use of online
tools or platforms such as You tube, Facebook, Twitter, etc. These are being used by organisation so
as they help in accessing customers at larger scale and broader area. In relevance with chosen firm,
it is cost expensive method but provide positive results to business. To go through this option, a
proper analysis is to be done so that resources are used accordingly (Boyce, 2019).
Pricing strategies- Further comes the pricing strategy which can be used by entities to
attract more end users for their product in most effective way. This process requires a high level of
understanding of consumer behaviours because price are the major thing which have deep impact
on customer mind. In context with chosen firm, they will be using penetration pricing as in this
price is being set low with motive of gaining larger market share. It is most beneficial strategy for
venture as it is believed that pricing will be higher when promotion activities or period is over.
Publicity- It is also a most used method of promoting as in this promotion is being done
through use of word of mouth. The chosen corporation uses friends, family, relatives, etc. for
promoting venture and to promote new product. It assist in raising the sales of product that leads to
earning of higher profits/margins. It does not occur cost to the organization and is consider as
advantage of publicity strategy (Ahmad, 2016).
Web based showcasing- This a different way of promoting product and venture as in this e-
commerce websites, chat box window etc. are being used as they help contacting with clients or
customers directly. It is also useful as it help in understanding of customers properly towards brand
as well as their product. Through this, its easy for organisation to make necessary changes and

which will also results in analysing the trends in market. When going with this, it is crucial to have
a deeper understanding of product and activities which are being promoted so that questions asked
by clients are being answered specifically.
Thus, after examining of above matter it has been seen that promotional and advertisings
methods are to be used after analysing the market as well as competitors. Also, it leads to
implementing of making decisions in positive manner. They help in launching of new venture in
most efficient way.
P6 Develop an promotional activities plan for both launch and pre-launch
Planning is essential which is needed to be adopted by organisation as it will help in launch
as well as pre-launch. To do planning, a high level of expertise and knowledge is required so that it
is being done in proper way.
Pre-launch- This specifies that owners of business need to be active towards their new
venture & also they can develop a attracting website through they will be able to attract more
customers for their coffee shop. Moreover, they also need to prepare a tag-line for their coffee shop
so that it will have a positive impact on public and the brand will be recognized by everyone. Also,
Sophia can use social platforms such as Twitter, Instagram etc. for launching new venture as they
will help in accessing market in appropriate manner (Schell, 2020).
Launch- This is stage in which activities take place after the launch of venture or product.
In context with selected entity, Sophia need to focus on promoting of product as because then only
customers will be attracted towards business properly. Moreover, she can also use discount as well
as offers for first 50 customers and which will help in getting attention of people. New strategies &
tactics are to be used as it is necessary for growth and overall development of business. Also, after
launching process, feedbacks and reviews are to be taken firm end users so that important changes
could be made (Graver, 2019).
Brand development- When new product or venture is launched it is necessary to create a
brand awareness so that customers are aware about the presence of brand at wider scale. Also,
brand development could be achieved by providing end users quality products as well as services. It
is time consuming process but is crucial & required by organisation. This is because it has been
seen that customers purchase more from recognized or brand with goodwill. Thus, effective
decision making is to be done so that it will be easier to use promotional tools at market place.
Moreover, it is responsibility of manager to create and develop brand development so that
organisation is able to increase profit ratio at higher level.
Thus, after examining of above matter it is stated that plan for activities is to be done with

proper considerations so that problems or issues does not occur in near future. Furthermore, to
launch as well a pre-launch is needed to be carried out with proper measures.
TASK 4
P7 Prepare a Cash Budget for the launch of venture
A cash budget refers to plan of expected cash or expenses during the accounting period.
Both cash flow as well as cash inflows are being examined with proper measures as it help
businesses to analyse amount of capital used or not(Kirkley, 2016). In relation with chosen entity,
they need to prepare a cash budget as it will assist them in analysing of all expenses and income.
Moreover, it also gives brief knowledge about the financial position, help in examining of omission
of accounts or transactions etc. Shiro Nine, need to have knowledgeable accounting team which will
help them in preparing of a correct cash budget for launch of new venture.
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
Net cash flow 7700 200 1300 2200 150 1500
Opening balance 0 7700 7900 9200 11400 11500
closing balance 7700 7900 9200 11400 11550 13000
Particulars July August October November
Dece
mber

Cash inflows
Investment
Credit sales 4200 1000 2000 800 1200 1500
Total inflows 4200 1000 2000 800 1200 1500
Cash outflows
Fixed: Equipment’s 800 200 300 100 600 300
Variable: Direct
material 300 400 500 100 100 400
Total outflows 1100 600 800 200 700 700
Net cash flow 3100 400 1200 600 500 800
Opening balance 13000 16100 16500 17700 18300 18800
closing balance 16100 16500 17700 18300 18800 19600
Post launch cash budget
Particulars Jan Feb Mar Apr May June
Cash inflows
Investment 8000
Credit sales 1200 2000 7500 3000 5000 6500
Total inflows 9200 2000 7500 3000 5000 6500
Cash outflows
Fixed: Equipment’s 2500 1200 1500 2500 1100 1500
Variable: Direct
material 350 300 250 150 100 500
Total outflows 2850 1500 1750 2650 1200 2000
Net cash flow 6350 500 5750 350 3800 4500
Opening balance 0 6350 5850 11600 11950 15750
closing balance 6350 5850 11600 11950 15750 20250
Particulars July August Septembe October November Decembe

r r
Cash inflows
Investment
Credit sales 1200 3200 1500 8200 1250 3210
Total inflows 1200 3200 1500 8200 1250 3210
Cash outflows
Fixed: Equipment’s 1200 600 500 500 1200 700
Variable: Direct
material 500 250 450 250 1300 500
Total outflows 1700 850 950 750 2500 1200
Net cash flow -500 2350 550 7450 -1250 2010
Opening balance 20250 19750 22100 22650 30100 28850
closing balance 19750 22100 22650 30100 28850 30860
Thus, from analysing of above stated matter it is analysed that the budget amount required
for launching a new venture is € 30,000. The capital and all the related transactions is to be
recorded without any error as it error occurred during the accounting period will have great impact
on firm management. Developing and preparing a cash budget is necessary for proper management
of finance.
P8 Advise appropriate legal form for venture stating & why it has been chosen
In business sector, it is crucial to carry out all the activities under rules & regulations. There
are different types of legislations or say legal form which are made by government. In relevance
with selected firm, they need to follow all laws enacted by government such as licensing, safety &
security etc. So, there are various types of ventures which has been mentioned below-
Sole proprietorship- This is type of venture in which business is being carried out by
single person such as bakery owners, saloons, spa, clubs etc. In this, risk as well as profit is beard
by owner itself. This depicts that it is the simple, flexible legal form of structure (Kamasak, 2017).
Partnership- Then comes partnership in which more than one owners is involved & profit,
risk everything is being shared equally between the partners. This also generates establishment of