Unit 13 - Launching a New Business Venture Assignment

Task 1

P1 A new venture identifying specific target markets and undertaking competitive analysis

HomeCare services is a company which is ready to operate its business operations in Liverpool, London and main target customer of this corporation is working people who do not have sufficient time to take care their home appliances on regular basis so individuals can hire a person to take care of these electronic items on continuous basis. Main purpose of starting this venture is less competition which is measured on raw basis.

Individual who started is business venture is having its office in 1000 square feet in Liverpool and this place is hired on lease for 4 year period and it is a facility provides to business owner that he/she can renew their lease period for extra three years. Estimated budget for starting this type of business is £ 3,50,000 to £3,52,000.

Objective: Firm set some goals and aims for one year which are stated as beneath:

• Wants to get nominated for “Best Services provider” in United Kingdom.
• Profit Generation from very first month of starting.
• Aim of get and manage growth rate of 60%.

            Mission: HomeCare set some missions on providing best quality services by making strong positioning strategies and this action will further attract larger pool of customers towards venture  as this idea of business is saving more time of clients.

            Target Market: Most important objective of starting any business is to get in touch with numerous people who have sufficient buying potential by formulating adequate positioning strategies. HomeCare has to set target market for running business operations in most effective manner along with to point out those personnel who could become clients of corporation. Fruitfulness of targeting market is to hit set goals in limited time frame. Meaning of target market is a group of individuals who could become customers of HomeCare company by putting minimal efforts and resources. Target market is a selection of people from all segments of marketplace. Market could be segmented on many basics like age, gender, family, friends, working and non-working people etc. Target Market of HomeCare company is working people who do not have sufficient time to maintain their white goods on continuous basis. According to income, this service section is opened for all income persons who want to remove repairing cost by maintaining appliances.

            Competitive Analysis: Before starting a business in real world, it is essential for entrepreneur that he/she should conduct a competitive analysis on wide and effective manner in order to minimise range of business rivalry. Range of competition is low because 0of low service providers who serve this type of services in UK. Main service providers are those who manufactures white goods and gives a limited time warranty with products. For instance, Whirlpool, LG etc. are serve their clients with warranty of maintenance of items for a certain duration like 2 years etc. It is hard to defeat these large size corporations in market for HomeCare company.

P2 Specific tangible and intangible resources

HomeCare Company is serving its customers with extraordinary quality services in arena of Liverpool, London. Venture is providing better quality services by using latest and innovative equipments which are able in handling critical situations in most effectual way. If effectiveness is now considered than it could be result into electric shock and many other problem and this action will portrait negative image of corporation in front of clients in industry. There are two kind of resources that are used in order to provide services to customers. Elaboration of these two kinds of sources are stated as follows:

            Tangible Resources:- This kind of sources are those who have proper hardware which can be seen, touch and manage by people. This is called as its physical presence of resource. This segment comprises equipments, raw material, money etc. All appeared resources need money to get invested in order to make purchases of these resources. In respect to HomeCare Company, machines that are being used to repair appliances are defined as tangible resources and can be put on direct basis in business operations.

            Intangible Resources:- This kind of sources are not visible but plays a vital role in adequacy of operations. This section includes; time, goodwill, brand image, culture, business environment, intellectual property rights etc. These resources are being used to provide directions to business operations. Whole intellectual properties are associated with intangible resources and helps in securing business ideas and uniqueness of corporation. This kind of sources are helpful in making a normal company as a brand by adding some brand equity into venture. Skills of manpower and time consumption is a subject matter of intangible resources.

By taking aid of above sources, HomeCare company can strengthens their values and goodwill in industry. Resources are fruitful in providing information about strengths and weaknesses and according to this corporation can set their main objective. To build adequate branding strategies and to execute business plan successfully, HomeCare should use appropriate design and layout by taken into consideration all necessary elements of venture.

Task 2

P3 A credible proposal to launch a new venture

A plan is a set framework for activities that breaks long action into short tasks. Main objective of constructing business plan is to complete all targets within coveted time frame with maximum efficiency. When all activities are being completed in most effective manner and clients are getting extraordinary services then this action helps in fascinating wider number of customers and in creation of positive image in front of consumers. All organisations whether new or old are suppose to develop a business plan as this is a direction of all activities that take place in an association. As HomeCare is a new venture then it has to develop a proposal for their business that will provide help in hitting all goals in limited duration. A sample of business proposal for HomeCare is stated as below:

P4 Skills and capabilities required to launch a new venture

In order to run a business venture, it is essential for an entrepreneur that he/she must posses some personality traits and qualities along with skills and capabilities. This portion showcases some attributes and virtues that should be presented in corporation in order to attain all objectives in most effective manner. Below are some specific personality traits that must be possess by entrepreneur:

            Project Management:- Owner of HomeCare company must be a good manager of activities so that all task could get completed in certain time frame. In order to attain all aims and objectives, it is required from business owner that he/she should allocate task to his/her team members by making appropriate analysis on skills and talents of personnels (Bijker and et. al., 2012). Management of actions could be done when manpower should get those tasks which they can perform best with self motivation and zeal.

            Leadership Skills:- A chieftain is a person who brings all workforce together by taking care their needs and wants those should be catered in order to accomplish all task in most successful and effective manner. This type of skill is helpful in removing conflicts from culture of organisation. Spearhead is required to inspire his/her followers by setting examples so that self motivation could be generate in working place for attaining all targets in limited period of time. This type of skill in entrepreneur brings enthusiasm and energy among staff members.

            Presenting:- This is a virtue of showcasing a thing very attractively so that everyone could get this in clearest manner. Owner of HomeCare should be a good presentor so that he/she could present his/her business idea clearly to manpower so that they could accomplish their all actions in limited time frame without hampering quality of activities. This type of skill is fruitful in formulating appropriate strategies for directing business operations.

            Optimistic & visionary:- A person who is going to launch and just launched its new business venture in marketplace must not be afraid of failure as this fear makes him weak and becomes reason of loss. When a owner of HomeCare company is optimistic then he/she will see positivity in even opposite situations and will be able in converting negative conditions in positive. On the other hand, entrepreneur is having virtue of setting adequate vision for business that could bring all business operations in right direct which is useful in hitting all goals in certain duration.

Operating a business venture is a quite difficult task and an unskilled and less talented person could not run business activities in appropriate of feasible manner where all products and services are being sale on break even point. In order to attain all targets in most successful manner then it is essential for a person that some attributes should be possessed by him/her so that all task could get accomplish in coveted time frame (Burns, 2017).

Task 3

P5 Different promotional activities and channels to support the launch

To make a business venture successful in marketplace, adequate promotional tools and  techniques should be adopted by entrepreneur. In order to attract more people towards corporation, it is required from entrepreneur that he should popularise all activities clearly in front of staff members so that manpower could accomplish their duties adequately. Success of corporation is not rely upon quality of services but also an effective promotional strategy also leaves impact on business operations. Need of application of publicity strategies is same in small or large size corporations. Small scale corporations need to establish their venture strongly and large scale associations need to maintain their market share in industry by employing beneficial tactics. It is hard to apply expensive promotion techniques for little size ventures then they always keep their eye on inexpensive promotional tools like internet, social media, online marketing etc. These publicity tools are cost effective and quite useful in running a business successfully. Following are some promotional tools are explained as further:

            Personal Promotion - There are various tools and techniques present that can be availed for advertise services of HomeCare company. Effectiveness of advertisements are having impact upon business operations in both manner, negative or positive. In order to hit all task effectively then promotional tool should be select appropriately (Caselli and Negri, 2018). HomeCare can choose any method among social media, online marketing, emails, group discussions etc.

            Mobile Billboards - This is a modern technique of popularising business venture which could be use by small and large size corporations both. This methodology can be use simultaneously while other promotion methods are running in business operations. This tool includes stickers, symbols, logos etc. in context of HomeCare company. By taking assistance of this action corporation can enhance their sales volume and build strong customer base.

            Social Media - Today's world, there are many social networking sites that are being used by millions of people. To get in touch with many persons at the same time then company can post their ads on various social networks. This kind of promotion makes company popularise in front of many persons and then corporation is to be able in developing stronger customer base.

            Blogging & New Articles - Number of blog users has been increased along with increment in articles readers. So this tool is helpful in fetching attention of many individuals that are being online most of the time. This is a quite prominent tool in reaching with wider scale of population.

            HomeCare is conducting its business operation in most successful manner in Liverpool, London of United Kingdom. To establishing footprints in industry, association has to take advantages of prominent promotional tools and techniques. Promotional methods alone are fruitful in making a business venture successful by popularising activities and good deed of organisation. HomeCare company's owner can choose any tools among all available options (Fernhaber and Li, 2013).

P6 Appropriate promotional activities plan for both launch and pre-launch

By making application on a plan or proposal, firm can transform targeted customers into potential or real buyers in shortest duration. Just after setting a marketing plan, it is essential from entrepreneur that an adequate plan for pre and post launch activities should be made in order to meet all targets in limited period of time (Hmieleski, Cole and Baron, 2012).

            Pre-launch Promotion - business owner can develop a webpage on website before launching business in marketplace so that total attention could get measured and this kind of action is helpful in making right decisions upon launch or not-launch of venture. There are many prominent tools of promotion mix that showcase help in publicise HomeCare in market of London. As HomeCare is a new firm that has to take advantages of many promotional event because business is in primary stage and to bring maturity and diversification into venture, appropriate promotional tools could be applied by entrepreneur so that in introduction stage, venture could become successful. Fascinating wider number of people is required in order to maximise margins of profits along with minimising range of competition. Pre-launch event is helpful in attaining a promising rate of growth by serving more than 50 clients at a time. Pre-launch activities are most useful in getting attention of many human beings so that profit generation should start from initial month of start. To promote business venture, association has been set a tag line which is “Maintaining health of home appliances is a fun”. This punchline is attracting wider population and has become a good advertisement for HomeCare company.

            Launch Promotion - At the time of launch, entrepreneur should recall all target customers which is sentenced at the time of pre-launch promotion. If more than 50% people become potential buyer then this is a success of pre-launch event. Most useful tool for launch promotion is mobile billboards. Other prominent tools are blogging, social networking, advertising etc.

            These are good quality procedures that can be availed in recalling, branding and reconfiguring position of novel firm among customers. This cations helps in enlarging and evolving corporation in competitive environment (Kariv, 2013).

Task 4

P7 Itemised monthly cash budget for the pre-launch phase

To conduct all activities and business actions in certain and decided financial budget, it is essential from corporation that they comprehend budget for one year basis. A schemed budget is explained as further:  

P8 An appropriate legal form for the venture

When idea of launching a business venture is generated then it is required from entrepreneur that he should plan and make proper structure to ensure success of firm in marketplace. This structure is helpful in attaining all goals in limited duration. Government of United Kingdom has constructed some rules and regulations that must be followed by new venture and should be considered at the time of idea generation. It is essential from business entrepreneur that firm should be made legal entry in marketplace so that no further obligations could raise (Klotz and et. al., 2014). There are various criteria in which legal structure can be framed for association. HomeCare is a company that is conducting its operations in electronic appliances industry in Liverpool, London. Here are some legal sections for various firms that are explained further:

Types of Legal Forms

            Sole Proprietorship:- When a business is started by a single human being then it is defined as sole proprietorship. In this type of venture, all risk and profits must be bearable by owner of business in order to run firm in marketplace. For instance, sole proprietors are carpenters, plumbers, owner of retain stores etc.

            Partnership Firm:- When more than one person start a business corporation in market in order to avail profits by serving products and services to wider population then it is called as partnership firms. All profit and loss is shared by entire member of firm on some certain ratio basis. Main purpose of these organisations are to get higher profits by capturing larger market share in industry.

            Public Sector:- This type of corporations are those which is capital is distributed in market in the form of shares. It means people have their zest in company that is why it is stated as public limited company. This type of organisations are divided into two segments which are discussed as follows:

1. Limited Company - When larger number of shares are distributed in government then it is defined as limited company.
2. Private Limited Company - When more than 40% shares are owned by a private company the it is named as private limited company (Kuratko and Hornsby, 2017).

From all discussed legal structures, HomeCare Company has been chosen sole proprietorship because this association is started by an individual person. Main objective of owner is to transform this sole proprietorship into partnership firms by expanding business operations. Variations in legal structures relies upon number of human beings that are running business (Morris, 2015).

Conclusion

This report is summed up as launching a new business venture is quite hard while watching range of competition in marketplace. There are various legal structures that must be follow by association in order to remove hurdles and obstacles from business activities. A business plan is a document that should be prepared by small size corporation also in order to break all large size activities into short targets for hitting goals in most economic method. Along with business proposal, an adequate budget should be plan for running business operations in smoother manner. In order to make business successful, adequate promotional activities should be made so that more and more persons should fascinate for serving services of corporation.

References

• Baron, R. A. and Tang, J., 2011. The role of entrepreneurs in firm-level innovation: Joint effects of positive affect, creativity, and environmental dynamism. Journal of Business Venturing. 26(1). pp.49-60.
• Bijker, W. E. and et. al., 2012. The social construction of technological systems: New directions in the sociology and history of technology. MIT press.
• Burns, P., 2017. New venture creation: a framework for entrepreneurial start-ups. Palgrave.
• Caselli, S. and Negri, G., 2018. Private equity and venture capital in Europe: markets, techniques, and deals. Academic Press.
• Fernhaber, S. A. and Li, D., 2013. International exposure through network relationships: Implications for new venture internationalization. Journal of Business Venturing. 28(2). pp.316-334.
• Hmieleski, K. M., Cole, M. S. and Baron, R.A., 2012. Shared authentic leadership and new venture performance. Journal of Management. 38(5). pp.1476-1499.
• Kariv, D., 2013. Female entrepreneurship and the new venture creation: An international overview. Routledge.
• Klotz, A.C. and et. al., 2014. New venture teams: A review of the literature and roadmap for future research. Journal of Management. 40(1). pp.226-255.
• Kuratko, D. F. and Hornsby, J. S., 2017. New Venture Management: The Entrepreneur's Roadmap. Taylor & Francis.
• Morris, M. H., 2015. Entrepreneurship as experience. John Wiley & Sons, Ltd.
• Read, S. and et. al., 2016. Effectual entrepreneurship. Taylor & Francis.
• Robb, A. M. and Watson, J., 2012. Gender differences in firm performance: Evidence from new ventures in the United States. Journal of Business Venturing. 27(5). pp.544-558.
• Simon, M. and Shrader, R. C., 2012. Entrepreneurial actions and optimistic overconfidence: The role of motivated reasoning in new product introductions. Journal of Business Venturing. 27(3). pp.291-309

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