Launching a New Venture

Table of Contents

INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Identification of specific target markets and undertaking competitive analysis...................3
P2. Determination of tangible and intangible resources required for the launch of a new
venture.........................................................................................................................................5
TASK 2............................................................................................................................................6
P3. Credible proposal to launch a new venture...........................................................................6
P4. Skills and capabilities required to launch a new venture......................................................8
TASK 3............................................................................................................................................9
P5. Different promotional activities and channels that support the launch of the new venture..9
P6. Promotional activities plan for both launch and pre-launch of new venture......................10
TASK 4...........................................................................................................................................11
P7. Itemised monthly cash budget for the pre-launch phase of the new venture.....................11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
INTRODUCTION
Ventures are the subsidiary or business firms which are established by the entrepreneurs
with an aim of earning profit by providing their services and products. Entrepreneurs should
have the necessary skills and capabilities for managing the business ventures in effective manner.
The businesses needs to conduct market research for expanding their operations and activities for
earning more profit and revenue. The taken firm in this assignment report is Aghor foods which
is a venture established in UK and expanding their operations in Europe. This report will
determine the specific target markets and competitive analysis along with the tangible and
intangible resources which are required for the launch of a new venture. Further this report will
produce a credible proposal to launch a new venture along with the skills and capabilities
required. Also this report will explain the different promotional activities and channels that will
support the launch of the new venture along with the promotional activities plan for both launch
and pre-launch of new venture. In the end, this report will produce an itemised monthly cash
budget for the pre-launch phase of the venture and the first 12–18 months preceding launch of
new venture.

TASK 1
P1. Identification of specific target markets and undertaking competitive analysis
Aghor foods is a new business venture in the UK market who provides a wide range of
food products to the consumers in UK. This venture is established for providing a various
varieties of food products such as Thai, Spanish,Indian, Chinese etc. to the customers. The
selected location for this venture is London due to the huge number of customers who visit the
location. The restaurant can attract these customers from various nations n order to provide them
foods according to their cultural taste. The entrepreneurs of this venture has conducted market
research in order to determine the needs and preferences of these customers in order to provide
the food accordingly. So it can be said that the idea of this venture is quite good and has potential
to grow (Caselli and Negri, 2018).
An entrepreneur starts a business by partnering from their colleagues and family for
getting the required support in smoothly running the business. The ideas and suggestions from
the friends and family are beneficial for the venture in accomplishing the desired growth and
success. This venture has rented an area of around 1600 square feet near London Eye on lease of
6years with an objective of continuing business without facing any barriers and difficulties. As
this restaurant is in partnership due to which it can easily avail funds from their different sources
such as own capital, financial institutions which are around £340000 to 349560.
Objectives
 To provide the tasty food to the customers of different nation
 To enhance the profit and revenue of the venture by providing quality based food
products.
 To enhance the satisfaction level and loyalty of customers.
Mission:
The mission of Aghor foods is “to enhance the experience of customers by providing the
tasty and quality based food products to the customers of different nations”.
Target market
Customers are the major target of any business whose needs and requirements must be
fulfilled by the business in order to gain growth and success in the market. So it is necessary for
the entrepreneurs to determine the conditions and trends of market in order to formulate the plans
and strategies. The trends in the customers in terms of taste and preferences can impact the
business performance and success of the Aghor foods. The market is mainly segmented into 4
types which are Geographic, Demographic, Psycho-graphic and Behavioural.
Geographic: This segmentation is based on the place or location at where the new
business venture has been established. The place preferred by the entrepreneurs is based on the
crowd and number of people who can visit the restaurant. This location is determined by
analysing the situations which exist in locations. For instance: London is a famous place for the
travellers as a huge number of tourist visit the location. Due to this the London is chosen by the
entrepreneurs as chances of customer visiting the restaurant are high in this location which will
assist the firm in enhancing their growth and revenue (Cosenz and Noto, 2018).
Demographic: This segmentation is based on the religion, culture, gender, income level
etc. of customers which can impact the business operations and functions. Therefore,
entrepreneurs needs to analyse these factors properly and take the decisions accordingly for
attracting the customers towards the restaurant. For example, Teenagers and families shows more
interest in visiting such restaurant as they prefers the food from multiple nations.
 Psycho-graphic: This type of segmentation is based on the lifestyle and personality of
customers. For example, Customer having high amount of incomes wants to eat food of various
nations due to which the venture can attracts these people.
Behavioural: This type of segmentation is based on the behaviour, usage and decision
making pattern. For examples: The youth and children prefers to eat various varieties of food
products due to which there are high chances that these people can visit the restaurant.
Competitive analysis:
Starting a new venture is not an easy task due to the availability of competitors who are
operating their business from many years. Also the competition in food industry is high in UK
which is giving tough competition to this new venture. The entrepreneurs of the Aghor foods
needs to develop suitable and appropriate strategies in order to sustain in the market and to
achieve high growth and success. The London market is full of competitors such as The Led
Bury, Liman Restaurant etc. which can restrict the venture in gaining desired success. Aghor
foods needs to develop proper plans for getting an upper competitive edge in the market of UK.

P2. Determination of tangible and intangible resources required for the launch of a new venture
Resources are necessary for any organisation in order to run their business in proper
manner without any restriction. For starting a new business venture, sufficient amount of
resources are required with the help of which further activities can be carried out effectively.
Resources are classified into two types i.e. Tangible or Intangible resources. Tangible resources
are the resources which can be seen or touched and are physically present in the environment.
These resources includes the employees, funds, land & Building, Machinery etc. On the other
hand, Intangible resources are the resources which cannot be touched or seen but these plays a
essential role in the growth and success of the firm. Aghor foods is a multi cuisine restaurant
which needs employees, funds and various other resources for providing their food products to
the customers (Douglas, 2013). For example, for producing delicious and healthy dishes,
restaurant needs chef and other kitchen staff which can cook the foods according to the needs of
consumers and the firm also needs funds for paying the salary to chef. These both type of
resources are discussed below:
Tangible resources: These are the assets which are visible from the eyes and can be
touched or sensed. Such resources includes machines, devices, employees, land, building etc.
which plays major role in providing the products to the customers. The funds are the main
resources which are necessary for performing the various activities and operations of the
business. Also fund is necessary for acquiring other resources such as employees, land and
building etc. Therefore, it is important for entrepreneurs of Aghor foods to have enough amount
of money for hiring or renting the resources which are required for executing the business
activities. Employees are also necessary for providing the products to the consumers as they
contributes their maximum efforts in the organisation.
Intangible resources: These assets are not physically present in the business environment
but plays a important role in the growth and development of the business. These resources
includes trademarks, goodwill, customer relation etc. These can be acquired by the business
firms by performing their business activities in an ethical and effective manner. For example,
manufacturing quality and healthy food product is necessary for the satisfaction of customers
which will assist the firm in retaining them for a long period of time. The customers can be easily
attracted towards restaurant when having a good image and goodwill in market so the Aghor
foods also need to provide quality and delicious foods at an affordable prices to the customers for
increasing their goodwill. The firm also needs to copyright or patent their new business ideas so
that the ideas can;t be used by the competitors of the restaurant (Kuratko and Hornsby, 2017).

TASK 2
P3. Credible proposal to launch a new venture
The entrepreneurs needs to have the right mix of skills and capabilities in order to take
suitable and proper judgements and to make effective strategies. The entrepreneurs needs to
conduct the market research for determining the preferences and taste of the consumers for
implementing suitable policies in order to attract the customers and influence their buying power.
A credible business proposal for launching a new business venture is discussed below:
Executive Summary Aghor foods is establishing their new business
venture in London for providing their food
product to the people of various nations who
visit the London for their personal or
professional purpose. The firm will provide a
large number of food products to consumers in
UK.
Company description Aghor foods is a new business in UK who is
expanding their business operations in the
Europe or London. This business is providing a
huge range of food products such as Thai,
Spanish,Indian, Chinese etc. The objective of
this restaurant is to earn high profit and
revenue along with the market share in UK.
Market Analysis The market is dynamic in nature due to which
the Aghor foods can face problems in
establishing the market for new venture in
London. There are several external and internal
factors which can impact the business
performance which can be determined and
analysed with the help of SWOT and PESTLE
Analysis.
Financial projection An entrepreneur needs to prepare proper cash
flow statements for determining the amount of
cash company has in present time. The
shortage of funds can be fulfilled by raising
from different sources such as partners' capital,
bank loan etc. The entrepreneur of Aghor foods
has estimated an amount of around 350000 to
356800 for launching the venture in London.
Benchmarking For forecasting the business environment, an
entrepreneur needs to set the benchmark which
should be accomplished within a given time.
Through this, the team members gets motivated
and provides their maximum efforts for
accomplishing the pre-determined targets
within limited time period. The entrepreneurs
of the firm needs to clearly communicate the
 goals to the team members so that they can
achieve them in effective manner (Hmieleski,
Cole and Baron, 2012).

P4. Skills and capabilities required to launch a new venture

For launching a new venture it is very much necessary for a entrepreneur of Aghor foods
needs to have certain skills and capabilities. If the person is not having such skills than the new
business idea may not work as per the plans. The necessary skills required for the entrepreneur of
Aghor foods are discussed below:
 Marketing skills- It is considered has one of the most important skill which a
entrepreneur must have. This is because if the person knows each and every detail about
the market than action plans can be made according to the situation. Marketing skills
involve knowing the needs and demands of the customers. And fulfilling those demand so
that profit can be generated and sale can be increased. This skill can be developed or
acquired by getting the in depth knowledge about the market and also through experience
(Hulbert, Gilmore and Carson, 2013).
 Management skills- Another most important skill is management skills. The
entrepreneur must know how to manage various things at a time. So that the main motive
behind starting a new venture can be attained. This skill involve managing the resources,
funds, employees, and planning the future course of action after analysing the present and
past situations. If the entrepreneur is not having this skill than there will be
mismanagement and miscommunication. This skill can be acquired only when the
entrepreneur is dedicated towards the work and when the person have a clear vision
related to the future goals.
 Problem solving skills- The problems in starting the new venture must be handled in
the effective and efficient manner. The entrepreneur must be a good problem solver and
must be able to take risk in starting the new venture. As the market is uncertain and it
involves high amount of risk. So the entrepreneur must be able to take quick and right
decisions for the business. The problem solving skill can be developed or acquired by
taking appropriate and stable decisions for the business.
  Communication and negotiation skills- The entrepreneur must properly communicate
and negotiate with the suppliers and investors because they will help in performing the
activities of the business in a proper manner. The goals and objectives of the organisation
must be clearly communicated with the employees. So that they know what is expected
from them. Good communication and negotiation skill will help the entrepreneur in
guiding and leading people in the appropriate and desirable manner. This skill can be
acquired or developed by taking initiative in addressing the public gathering and by
communicating the goals of the business with the investors and shareholders.

TASK 3
P5. Different promotional activities and channels that support the launch of the new venture
There are various promotional channels that can support the new venture which are
discussed below:
Social media platform: In this, Aghor food industry can find their targeted customers
easily on social networking sites. Even the company can introduce about the food items it is
dealing with like Thai food, Spanish food, Chinese food to its potential customers. So, that food
lovers are aware about the new food industry. Social networking platforms includes Facebook,
instagram, twitter etc. through which food industry can attract it's targeted customers to have
lavish food offered by the company.
Personal promotions: It is another important tool used by the company for promoting
it's product at global level . It is a essential elements to attract customers towards it's product and
services offered by the Aghor company. In this, the seller of the company individuals visits the
customers and invites them to taste their product and services by the means of brochures,
catalogues, pamphlets etc. which directly or in directly creates impact on the customers
purchasing power and helps to know their interest level in food (Klotz and et. al., 2014).
Mobile billboards: It is also plays a vital role in pulling customers towards their product
and services offered by the Aghor company. In this company has to choose certain slogans or tag
lines so, that customers can easily recognize the product by its name, logo or the tag lines.
Banners and Ads: Banners and Ads on TV, radio, newspapers etc. plays a vital role in
promoting a companies product at a large scale. The Ads and banners can pull or push customers
according to it's relevant information delivered on the banner. Example: Mc Donald's can show
website link at the end, show different variety of product company is dealing in recent times,
show special offers rates and time durations etc. which creates relevant interactivity in the Ads
and is beneficial to the customers.
Email: It is a great tool for the company to access the potential and targeted audience.
Company can check the customers view about product by checking their status on mails like how
many customers opened and checked the mails, how many bounced, how many trashed them
without reading the mail, how many of them visited the websites after reading the mail etc. this
gives a rough idea about the interest of the customers.

P6. Promotional activities plan for both launch and pre-launch of new venture
An entrepreneur needs to develop and implement proper strategies and plans before
establishing new venture into new market. Through these strategies, an entrepreneur can
influence the interest and buying behaviour of targeted people in an positive manner for
attracting them towards the products provided by the company. Therefore, entrepreneur of Aghor
foods needs to prepare an effective promotional activities plan for spreading the awareness
regarding the food products provided in the European market. Promotional activities plan for
both launch and pre-launch of new venture are discussed below:
Pre-launch: This is the time before establishing a new business venture in which the
entrepreneur is focused on attracting the consumers by influencing their interest and buying
behaviour. Entrepreneurs of the Aghor foods needs to develop their own website in which they
can advertise their food products to the targeted people by using the attractive pictures and
content. Through this, the targetted people can read the reviews which are posted by the
customers of the restaurant regarding the products and services provided to them by the
company. Also the Aghor foods can achieve trust and reliability of their focused customers by
using the reviews posted on website (Kuratko, Hornsby and Hayton, 2015).
Launch: This is the final and crucial stage in which the business owners or entrepreneurs
of the Aghor foods organise the opening ceremony for the new venture in London market. In this
ceremony, people from the media companies arrives and captures every moment which then
posted to internet or newspapers in order to raise the awareness regarding the opening of a new
restaurant. Also the entrepreneurs of the Aghor foods can communicate with their customers
regarding the products provided by the firm. Through this, the people of London get the
opportunity to recognise the brand and its products.
TASK 4
P7. Itemised monthly cash budget for the pre-launch phase of the new venture
Cash Budget is the estimated amount of money which can be utilised in the business
activities in future time period. The pre-launch budget is the process of of acquiring the funds
from the various sources in order to fulfil the needs and requirements for establishing a new
venture in the London market. This budget is necessary to be prepared so that the conditions
associated with shortage of money can be prevented in the future time for running the business
operations in an effective and smooth manner (Roseno, Enkel and Mezger, 2013). Also the
problems if lack or wastage of money can be eliminated and the funds can be utilised in a proper
manner. So, it is important for the entrepreneur of Aghor foods to prepare their own Cash budget
statement while launching the venture and after the 12-18 months after launching the venture.
These launch and post launch cash budget is discussed below:
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

Novembe Decembe
Particulars July August September October r r
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

Septembe Novembe Decembe

Particulars July August r October 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

CONCLUSION
It has been concluded from the above discussed report that while launching a new
venture, entrepreneurs needs to focus on their target market and competitors which can be done
by competitive analysis. The tangible and intangible resources are required which must be
gathered or purchased by the entrepreneurs before launching the business venture. Also there are
several skills such as Marketing skills, Management skills, Communication and negotiation skills
etc. which are necessary in an entrepreneur in order to manage the firm and assist the firm in
gaining growth and success in the market. Also the firms can use the various promotional
channels in order to promote the products to the consumers in London. The entrepreneurs needs
to prepare cash budget for estimating the costs which can be used in the business operations or in
launching the new venture in London.
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Online
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