Unit 28: Launching a New Venture
Unit code F/508/0564
Unit level 5
Credit value 15
Introduction
This unit
provides students with a practical understanding of what is required to
successfully launch a new venture. It gives students an opportunity to work
within a small team to fully plan the launch of a specific new venture idea.
They will learn about and work through the stages of planning to launch the
venture culminating in a group presentation of a launch plan. This will include
an explanation of the idea, how it will attract customers and have competitive
advantage. Students will develop a promotional plan to get it started,
preparing a budget for launch and a cash flow forecast for the first 12–18 months
of operation for the chosen venture. Students will learn about the need for
resourcefulness when starting a new venture, and will be able to identify and
tap into personal networks which can offer a valuable source of knowledge,
resources, advice and opportunities.
Learning
Outcomes and Assessment Criteria
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Pass
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Merit
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Distinction
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LO1 Investigate the range of resources required to
launch a new venture
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P1
Investigate new venture identifying specific target markets and undertaking
competitive analysis.
P2 Determine
specific tangible and intangible resources that would be required for the
launch of a new venture.
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M1 Apply a
range of methods and techniques for competitive analysis to justify how to
achieve competitive advantage.
M2 Discuss
the strengths and weaknesses of the new venture and determine areas of risk.
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D1 Develop a detailed proposal that demonstrates
critical analysis and reflection of the competitive environment with
supporting contingency planning to minimise risk.
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P3 Produce a
credible proposal to launch a new venture.
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LO2 Assess the skills and capabilities required and
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D2 Critically discuss supporting costs and
timescales required for acquiring and/or developing the skills and
capabilities of a launch team.
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how these might be acquired or developed
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P4 Assess the
skills and
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M3 Explore
the range of
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capabilities
required to
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skills and capabilities
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launch a new
venture and
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required for
the launch
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how they are
acquired or
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and
critically assess how
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developed.
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they might be
acquired or
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developed
applying
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appropriate
methods.
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LO3 Explain and justify appropriate promotional
activities to support the launch
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P5 Explain
different promotional activities and channels that will support the launch
and justify their choice.
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M4 Evaluate
an appropriate promotional activities plan for both launch and pre-launch.
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D3 Critically evaluate the different promotional
activities to support justifications.
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P6 Develop an
appropriate promotional activities plan for both launch and pre-launch.
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Pass
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Merit
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Distinction
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LO4 Suggest an appropriate legal form and compile a
budget for launch
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D4 Create a pre- and post-launch monthly itemised
cash budget based on financial resources, including key budget categories and
sub-categories, with
contingency measures for anticipated outcomes.
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P7 Produce an
itemised monthly cash budget for the pre-launch phase of the venture and the
first 12–18 months preceding launch.
P8 Suggest an
appropriate legal form for the venture stating why it has been chosen.
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M5 Justify an
itemised monthly cash budget showing one off costs, ongoing costs and
anticipated income post- and pre-launch.
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Learning
Outcomes
By the end of
this unit a student will be able to:
- Investigate the
range of resources required to launch a new venture.
- Assess the
skills and capabilities required and how these might be acquired or developed.
- Explain and justify
appropriate promotional activities to support the launch.
- Suggest an
appropriate legal form and compile a budget for launch.
Essential
Content
LO1 Investigate
the range of resources that will be required to launch a new venture
Defining the
idea and the target customer:
- The venture
idea and how it represents a business/social enterprise opportunity. Analysis
of the small business environment to support the venture idea.
- The
characteristics of the target or ‘typical’ customer applying geographic,
demographic and behavioural segmentation.
- Use of
competitor and industry analysis techniques such as Porter’s Five Forces
analysis.
- Identification
of tangible and intangible features and benefits. Achieving competitive
advantage.
Understanding
and planning resources:
- The different
types of resources that are needed to start a new venture: tangible, intangible
and human.
- The three
categories of ‘capital’: human, social and financial.
- Identifying and
planning resources for a new venture, including tangible (premises, equipment,
IT facilities) and intangible (skills and capabilities).
LO2 Assess the
skills and capabilities required and how these might be acquired or developed
Understanding
and acquiring skills and capabilities:
- Identifying the
necessary skills and capabilities required
- The importance
of building credibility in a start-up venture, addressing risk factors and
responding to change.
- The concept of
‘Bootstrapping’: making use of free or low cost sources of resources and
skills, leasing and renting.
- Low cost/free
marketing and promotion. The principles of the ‘Lean Start-up’ method.
The importance
of networks:
- The importance
of networks to new ventures as a source of ‘social capital’ that can bring
access to knowledge, resources, advice and opportunities.
- Consideration
of both formal and informal networks.
- Assessing and
developing personal networks and ‘the strength of weak ties’.
LO3 Explain and
justify appropriate promotional activities to support the launch
- The marketing
mix:
- The marketing
mix in the context of a new venture/small business.
- The importance
of pricing strategy for a new venture and the likely response of competitors.
Business identity
and promotion:
- Developing an
identity and the key promotional messages for the business. Choosing a name and
registering a domain.
- Visual identity
and website creation with e-commerce capabilities (e.g. virtual shopping cart
and secure online payments).
- Cost-effective
promotional techniques, including use of social media and online promotion:
blogs, Twitter, podcasts, video clips, virtual tours and image captions.
- The pros and
cons of trademark registration.
LO4 Suggest an
appropriate legal form and compile a budget for launch
Budgeting:
- Compilation of
an initial budget for venture launch, including identification of pre-launch
costs and then a forecast of income and costs over the first 12–18 months of
trading.
- ‘What-if’/scenario
analysis on the budget’ Calculation of break-even point.
Legal forms of
business:
- The different
legal forms for a business, including sole-trader, limited company and
partnership.
- Legal form
options for a social enterprise, including Community Interest Companies (CiC).
- Franchising as
a start-up opportunity.
