Establishing an Interior Design Venture

Introduction

Business is regarded as a profession which can create value for its potential customers. It is regarded as the profession in which a significant amount of risk factors is associated. Starting a business is a very challenging task. The entrepreneurs need to do very hard work to start a business organisation. There are several factors which are involved with starting a new business venture. In this report, an interior design business organisation is discussed which will be established to provide full time designing services to the customers. In the first part of this report, the market potentials of a new business organisation are discussed. Every business organisation must perform some legal procedures which are analysed in the second part. Then a detailed plan for the new business venture is provided. Finally, the sources of funds for the new business venture are identified and analysed in this report.

The market conditions which can affect the market potential of a new business (P -1.1)

Establishing a new business is always a very challenging task. To establish a new business organisation, the entrepreneurs have to check out different vital elements which are related to that particular business organisation. At first, the market conditions related to the company must be analysed. It can be analysed by the PEST analysis which is mainly concerned with the external environmental factors of an organisation (Birkinshaw, 2012). According to the perspective of the United Kingdom, the external environment can significantly affect the activities of a new business venture. The political condition of the United Kingdom is relatively stable for establishing a new business. The government of the UK remains very flexible to help people to establish a new business organisation. But after the implementation of Brexit, some core issues will be changed relating to expanding business across Europe. The economic factors which mainly affect a business organisation are the inflation rate, interest rate, rate of unemployment and so on. A business's economic activities are directly affected by the economic considerations of a country. For example, according to 2018, the inflation rate of the United Kingdom was 2.48% which is suitable to establish a new business venture. Currently the unemployment rate in the UK is 3.5%. So, the overall economic condition of the UK's market is relatively good for establishing a business (Chandler and Hanks, 2012). The demographic factors such as age, population, taste, willingness to buy are the social factors which can influence the business activities. The entire business organisation must design their products and services based on the demand and taste of the customers. The buying habits of customers and their willingness to expense are also very important factors. Moreover, a new business should provide importance to the culture of the locality and it must need to consider in the time of designing a business. The total use of advanced technology to reduce wastage and providing high-quality service are the elements of technical factors. The availability of modern technologies can help a business organisation to increase its profitability and efficiency.

In every business, competition among different business organisations plays a very significant role. So before starting the business organisation, an entrepreneur has to analyse the competition of the market relating to his business. For competitor analysis, the industry data can help more than any other things. The managers of the new business organisation need to collect all the relative data of the competitor companies. In this purpose, Porter's generic competitive strategies can be followed. According to this theory, a company can start its business by either focusing on the cost of the product or product differentiation (Leake, 2011). So before starting the business, a proper competitive strategy must need to develop by the entrepreneurs. The market size can influence the level of production of a particular good or service. If the market size is big then the business organisation can produce lots of goods. It will help the company to reduce cost and increase sales revenue.

Identify the market needs and target market for the new business venture. (P-1.2)

To establish a business organisation, at first market needs must have to identify. At first, the PEST analysis can be performed to find out the influence of external environmental factors over the business. For example, the political and economic considerations of the United Kingdom are good for establishing a business. The rest external environmental factors have positive impact on new businesses. This analysis can be helpful to determine the target market of the organisation. The gap analysis can be used to determine market needs. The gap analysis states the performance gap between the actual performance and predetermined performance. By the gap analysis the present gap of products and services in the market can find out. This will help a new business to determine market needs. After determining the market needs, the business organisation can select its products or services which will be produced for the customers. The products must have the purpose of meeting the demands of the customers (White, 2015). The life cycle of the products must be long enough so that the customers can enjoy that product for a long period. Generally, the products developed by a new business are focused on the national market. But if the company can expand and increase their products demand, they can go to the international market. A new business organisation must need the scope of producing new products or developing existing products (Rypkema, 2012). They must follow the new trends of society because it can make them more popular among the customer's and help them to expand their business. The socio-economic conditions have a significant influence to set the right price of the products. The young entrepreneurs who are going to start a business venture should analyse the age, gender, occupation, and source of income of the customers. This information will help them to target a market which is capable to buy its products. Finally, geographical factors and personality indicators can play vital role in this fact.

Identify and justify a new business venture. (P-1.3)

In this report, a detail discussion will be provided based on a new interior designing venture named by Royal Interior. In the United Kingdom, the demand for interior design business is very high. Almost all the organisations even the households are looking for good interior designers to decorate their offices or home. In the modern age, this business is considered one of the most profitable services providing business. The Royal Interior will be a new business organisation which will provide interior designing services mainly in London. It will be established as a small proprietorship business. The market size for this business will be London based. But this company's business will be expanded to the other parts of the country if it can perform well. There are about 90 interior design companies in London which are actively doing their business. So, it will not be easy for a new interior design business like Royal Interior to start its business quite easily. Most of those companies are proprietorship business which is established and run by the supervision of a single interior designer (Blackwell, 2011). The main service of the Royal Interior will be provided to different corporate offices, business organisations, and households. This organisation will meet the demand of the customers by improving the interior design of their properties. The purpose of establishing this business will provide full time designing services, presenting that plan to the customers, researching about new services and finally install the new design to the customer's property. The demand for this business is huge in the national and international market. But the price of this type of service is high. In the beginning, the Royal Interior will charge a low price for their services to attract new customers. They will advertise their business on social media and provide different types of offers to promote their business. The Royal Interior will always follow the new trends which are followed by the customers to improve their service quality. The management of this business will have to be concerned about the changing requirements of this business

The potential barriers, limitations, and risks for the new business venture. (1M1)

The Royal Interior will be a service providing business organisation which will provide full-time interior designing services to its customers. This business organisation will provide a wide range of designing services to commercial and personal property. This business will get some potential benefits. It will be a small proprietorship business which is easy to start and operate. As a new start-up business organisation, the proprietorship will be the easiest form for the Royal Interior because for establishing a proprietorship business very little rules and regulations need to follow. The controlling process for this type of business is also easy. But this type of business has to face a high amount of risks. As it is a business organisation which is mostly dependent on the expertise of its employees and owner, so the risk factors can be minimised by the proper use of skills of its employees and owner. There may have potential limitations regarding this business. As a proprietorship business, it will have very limited options for growth (Finch, 2010). The proprietorship business is formed under the direct supervision of an entrepreneur. So, the expansion of this type of business is hard. It will get limited knowledge of its entrepreneur and some employees which may not be enough to operate this business well. Another problem may happen regarding the financing of this business. The main risk which will be faced by the Royal Interior Enterprise is the unlimited liability. It is one of the core characteristics of a proprietorship business. The business may face a huge financial crisis because only a few financial institutes are interested to finance in entrepreneurship business. Moreover, it has no legal foundation so it will not receive any legal help when necessary.

The legal and regulatory considerations for setting up a new business venture (P-2.1)

A business organisation needs to carry out the related rules and regulations. There are different legal and regulatory considerations which must have to be followed when establishing a new business venture. Those legal considerations are very helpful for the new business venture to overcome various barriers. At first, the health and safety requirements must be fulfilled by an organisation. Those health and safety requirements can help to improve the working condition within an organisation (Harrison and Mason, 2012). When the organisation follows all the safety legal considerations, the employees of that organisation feel safe and satisfied to work on that particular business organisation. The environment-related legal factors are very important for a new business venture. It must not do any work which may affect the surrounding environment of that particular business. Maintaining environment-related legal considerations are necessary to keep a good relationship with the stakeholders of the business. For the employees of a new business venture, employment-related issues must have to be followed by the organisation. No discrimination of gender should be presented in the organisation. The salary structure of the employees must be followed by the government's rules and regulation. In a new business venture, all the contracts between different parties should be held by following the contract act. When a business organisation follows the contract act to make contract then they can use those contracts to take legal actions. Every business organisation must have insurance contract. The insurance contract can protect the business as well as its employees from different types of uncertainty (Lynch, 2012). Data is a very important asset for any business organisation. The business-related secret information should be kept under control so that anyone cannot get excess to that information. In the UK, the data protection act of 2018 is followed by organisations. Finally, equality among the employees must need to be ensured. In an organisation, it is followed that all the employees are equal in the eye of law. So, in an organisation, all the employees must get the equal opportunity regarding the salary, promotion, pension and other benefits. In order to set up a new business in the UK, it is mandatory to follow the rules set by the government of the UK. The interior decoration company should have name and address to register the organisation. Register the company house under sole trader, limited companies, and partnership. Licensing and permit are necessary for the interior decoration firm, where there needs proper company licensing and prepare pay state and taxation to pay taxes to the government. At least one director and one stakeholder are required to set up the business in the UK where the interior decoration company Royal Interior can make the venture sustainably under all the rules and legislations. Setting up the corporation tax and looking for article to set up the business are also mandatory for the organisation to establish the business successfully. In the UK, there is Minimum Wage Act 2018, which is mandatory to develop the salary slip and creates good payment structure for the employees. The company Royal Interior must focus on developing the salary structure under the act of minimum wage so that every employee can get proper payment. In addition to this, the Equality Act 2010 is mandatory to be implemented in the workplace to manage diverse workforce and improve equal treatment of the staff and in this regard the non-discrimination policies are also there to control the staff and improve harmony and freedom in the interior design venture. Moreover, the organisation Royal Interior must also implement the general Data Protection Act 2018 in order to protect the data and information of the stakeholders so that it would be possible to run the business efficiently by engaging the staff members efficiently.

Justification of a legal form of business for the new venture (P-2.2)

Every business organisation has to follow different types of legal considerations in the purpose of operating the business activities smoothly. Business is considered as a legal profession when it is operated according to the rules and regulations of a country. The Royal Interior will be a service provider business organisation which will decorate the internal section of the properties. The legal structure of this business will be a proprietorship business. As a proprietorship business of the United Kingdom, it must have to follow some legal considerations of the United Kingdom. As a small proprietorship business, it will collect its capital from the private fund of the owner. If that capital may not sufficient for the business then it may borrow money from the relatives of the entrepreneur (Slack, Brandon-Jones and Johnston, 2015). There are different types of financial institutions like bank, insurance but all of those may not interested to provide loan to this business. But if the entrepreneur of the Royal Interior may make those institutes convinced, those organisations can provide short term loan for this business. For establishing a start-up business organisation, there are no mandatory rules and regulations. The Royal Interior will require a tax certificate. The registration of this type of business is not mandatory, but it is beneficial for the company Royal Interior to start up the venture with proper documentation as well as copyright which is mandatory so that any other firms under the interior decoration sector could not copy the design of Royal Interior in future. But as it is a business which will provide unique services to the customers, it will take a registered intellectual property like patent. There is legal documentation of the business in arranging fund for setting up the business and it further enhances the ethical practice of the organisation Royal Interior. Proper registration numbers is required to start up the venture legally and on the other hand, the UK government prefer to have proper documentation where the organisation must develop the documents related to corporate tax to run the business ethically. Some of the other law will be followed by this enterprise. To provide high-quality services regarding interior design, it will employ some engineers, interior designers, etc. So, the Employment Right Act, 1996 will be followed by this company to provide equality in the organisation Royal Interior which is effective to hire the staff members under proper rules and legislations (ResearchGate, 2019). The business operation of the Royal Interior will be followed by the Environmental Safety Act for both the internal and external environment of the business which further enhances the sustainable practice in the company to set up the business successfully. The internal environment of the organisation will be good enough to satisfy the employees. And the external environment factors must not be harmed by the activities of the business. As a service provider creative business, the design related information is very important for the organisation which will be controlled under the data protection act.

The mission, vision statement, and business objectives for the proposed business organisation (P-3.1)

The Royal Interior Enterprise will be a service provider business which will provide full-time design services to the customers. It will be a small start-up business enterprise. The growing demand for the interior designing business has made this service sector as one of the most profitable sectors. The commercial business organisations, personal properties, the small business enterprise like restaurants are the main customer for this type of business. The Royal Interior will be established in London where another 90 interior business organisations are doing business (Woorank.com, 2019). So, it will be very hard for them to continue the business functions in this extreme competition. The mission of the Royal Interior Enterprise will shape the interior of the customer's properties with creative and attractive design. As a new start-up service providing business organisation, it will focus on local customers. But the goal of the company is to provide world-class services to the customers. By the creative interior design, this company will try to be recognised in the whole United Kingdom. To achieve the mission of the company, it will recruit one interior designer who has an academic and professional skill. An architect will also be recruited to provide professional services to the customers. The target customer of this company will be corporate, commercial and residential properties. The vision of the company will become one of the top interiors designing business enterprises in the United Kingdom and create markets internationally. The business objectives for this company will meet the customer's demand for decorating their properties. The employees of this business firm will always try to invent a new design for the customers. It will provide services in a relatively shorter period and at a relatively low cost. Another important objective of this business will provide excellent customer services and become a profitable business organisation. all the employees will work here as a family and will try to achieve sustainable growth of this business. The Royal Interior will always work for dealing with change in customers demand and taste. All of the above objectives will directly help the organisation to achieve its mission and vision.

The skills, experiences and other resources needed to establish the new business venture. (P-3.2)

There are different types of skills and experiences which are needed for introducing and establishing a new business venture. Various types of business organisations need various types of skills. Those skills play a vital role in operating the business operation. In this report, the activities of a service provider business organisation, the Royal Interior Enterprise, is discussed. It will be a business organisation which will be established and operated in a very competitive industry. So, the owner and the employees must have some core skills and experiences to establish and operate the organisation. The Royal Interior will work on specific projects. It will take the designing work of a single corporate office or residence as a single project. So, the skill of project management will be a must needed skill for this company. The project management skill deals with the activities which are required to complete a whole project in the lowest possible cost and in an efficient way (Hobbs, 2016). Then the entrepreneur of the business organisation must have the skill of business planning. Good planning means a lot for any kinds of business. To become successful in achieving business goals, the entrepreneur must have the skill of business planning. Marketing is the skill of creating a good business relationship with customers by exchanging goods and services (Kotler et al., 2015). For any kind of business organisation, marketing related activities are important. In the context of the Royal Interior, the main way of marketing will be social media. This business enterprise will provide advertisements through different types of social media. Another important skill which is required for establishing and operating a business organisation is the accountancy and bookkeeping skill. The daily transactions of the business need to record according to the rules of accounting. The leadership skill is also important for operating a business. The entrepreneur or the owner of a business organisation need the skills of leadership. In the Royal Interior, few employees will be working. So, the owner or the entrepreneur of the organisation must have to possess the skill of leadership. Communication skill is also important. The managers of a business must have good communication skills in both oral and written form of communication. The good communication skill can help a business to collect the best resources and building up a good relationship with the business-related parties. The skill of delegation and organisation are also very important for a business (Bagraim, Jaga and Meyer, 2010). There are different types of resources which need to organise in a better way to get the most effective result. In the context of Royal Interior, the rate of sale will be dependent on the expertise of the employee's creativity. If they may work with expertise, the sales will surely be increased. The good customer relationship is a very important factor for any kind of business. To carry on a good customer relationship, the service quality must have to be improved. There are some other resources which are also playing very significant role. Human resources are one of the core resources for a business organisation. So fully committed and capable persons should be recruited for an organisation (Ivancevich and Konopaske, 2013). The financial support can help a business organisation to carry out its daily tasks. So, all the financial resources need to be kept under security. Every business organisation needs enough physical capacity which includes suitable premises and equipment. Information is another important resource for an organisation. For a creative service provider company like Royal Interior, all of their core secret information will have to protect from theft and illegal access. Finally, the proper monitoring of all the resources is very important for establishing and operating a business organisation.

Financial requirements needed for the new business venture. (P-3.3)

Every business organisation has to fulfil some financial requirements. As a start-up business organisation, the Royal Interior will have to prepare some budget reports for forecasting the future financial condition. The financial forecast can be assumed by using different types of financial reports but the budget is the most popular and widely used device for financial forecasting (Cooper, Gimeno-Gascon and Woo, 2010). By forecasting, a business organisation can predict its future cash inflow and outflow. By financial information, a business organisation can forecast its physical structures. The physical forecast can be possible by capital budgeting. It can help a business organisation to predict its long-term investment or investment in the fixed assets. The Royal Interior can forecast their physical or fixed asset related need by preparing capital budgets. The sales forecast is also very important for any kind of business organisation. By forecasting sales, a business organisation can determine its future revenue earning capacity. This information helps a business organisation to take the various business-related decision (Asch and Kaye, 2015). The sales forecast information can be used by the organisations to determine their break-even point of sales. As a business organisation, the Royal Interior can achieve short term and long-term goals by carrying out the financial requirements. To carry out short- and long-term goals the funds that a business need should be used carefully. So, fulfilling the financial requirements can help a business organisation to achieve those goals.

Business structure and systems needed to deliver the business objectives (P-3.4)

Every business organisation has operated to achieve some core objectives. To achieve the organisation's objectives, the business structure and related systems can play a very significant role. The business objectives are set by the organisation mostly based on the organisation's structure which is effective to run the firm efficiently and conduct the operations successfully. As a start-up business organisation, the structure of the Royal interior business will be small and simple. So, it set its business objective to provide services to only one city. The resources of a business organisation must have to be managed efficiently. There are many kinds of resources which are used in a business organisation. The organisation must manage those resources carefully (Haimann, Scott and Connor, 2012). So, a proper resource management system must be developed in the Royal Interior to make it enable to use all the resources to achieve its business objectives. The supply chain management focuses on the process by which the business organisation can effectively use its raw materials to produce final goods and transfer those goods to the final customers. One of the core objectives of Royal Interior will be providing high-quality services in the shortest possible time. By ensuring proper supply chain management it can be ensured. Finally, the technologies can help a business organisation to achieve its business objectives more efficiently. It is mandatory to develop appropriate business structure in order to run the interior decoration business and it further boosts the performance of the firm Royal Interior in near future to achieve the further objectives. The organisation will choose the horizontal structure with different departments so that every department can manage their operational activities and individual job role to contribute positively in the organisation for achieving future success. The major departments are such as production, control and design management, human resource management, finance, marketing and sales which are beneficial of the organisation to develop further structure. Under the production department, there are the employees who are efficient to develop the structure and provide high quality services and products to the customers. The production manager controls the whole team and monitors the progress of the infrastructure to serve the customers with highest quality of the products. The organisation then has design department where the designers are managed well under the managers and senior team members and there are creative team who are innovative to create absolutely unique design as per the customer’s requirements. There are also technical department, where the technical team, engineers and expert managers are working together to make the interior design system successful. In addition to this, the finance team is appropriately handled by the leader of Royal Interior, where the managers and senior members are efficient to control the budget, invest capital for the interior projects and develop proper financial planning in each financial year, so that the organisational profitability can be maintained efficiently. The marketing and sales department is playing a crucial role under the organisational structure, where the sales team manage the customers across the UK as well as the marketing team is working efficiently to promote the organisation successfully across the country. The organisation Royal Interior mainly focuses on setting up the business to serve the customers across the UK and it is important to hire strong marketing tam to analyse the market trend and acknowledge the needs and preferences of the customers as per new trend. The marketing strategic planning is hereby mandatory for the new business Royal Interior to attract the audiences and in this regard the marketing managers and staff members are trying to develop the promotional activities including the sales promotion, social media advertisement, and television and radio advertisement as well as creating the organisational website for successful promotion. Hereby, it is beneficial for the business to conduct the operations successfully in the UK by retaining the consumers for long run. Additionally, the sales team is also necessary in Royal Interior to manage the customers and handle their feedback to provide high quality interior decoration, infrastructure and services according to the needs and preferences of the customers. The human resource management team is also playing crucial role to manage all the staff recruited in the organisation and in this regard, the company Royal Interior would be able to retain the experienced staff and handle them properly by developing proper salary, performance related pay, managing health and safety of the workers and create values for them by developing good organisational culture. Hence, the organisational structure at Royal Interior is good to structures the whole system and break into different departments to run the activities in a systematic manner.

The strengths, weaknesses, and risks are inherent in the business plan (3M1)

There are different tools which can be used for identifying the strengths and weaknesses of a business organisation. The SWOT analysis is one of the most popular tools to identify the potential strengths and weakness of a business organisation (Williams, 2013). In the context of the Royal Interior which will provide full time designing services to the customers. The main strength of this business organisation will be the creative designing ideas. By the experienced employees, the Royal Interior will always try to provide creative designing services to the customers. This company will provide services at a lower cost than its competitors and it will be another strength of this business. The main weakness of this business will inherit from the procedures of collecting fund. As a proprietorship business organisation, the investor may less interest to invest in this type of business (Desai, 2015). Again, the market of this business is very competitive, so recruiting high-quality employees will also be another challenge for this business organisation. There may inherent different types of risk factors from the process of this business. So, all the risk factor must be registered and the business authority should plan to mitigate this risk. Use of contingency fund may reduce the risk factor of a business organisation. but at the early stage of the business, no contingency fund may available for a new business venture. So, it may produce significant risk factors to the business. The Royal Interior may face the risk of insolvency if they may not capture a good portion of the market. At the time of business expansion to the newmarket place, some socio-economic risk factors may arise. So, to mitigate all of those risk factors the business authority will have to develop potential plans and try to execute those plans properly.

The strategies to address the weaknesses and mitigate the risks in business plans (3D1)

Every type of business has some potential risk factors which can affect the growth of the business. In the context of the Royal Interior Enterprise, there may have some weaknesses. First of all, it will be a small proprietorship business, so it will face the uncertainty of unlimited liability (Reuvid, 2014). The business will face difficulties in raising capital at the beginning which is the major issue to start up the business in the market. Because there are only a few investors who can rely on start-up businesses and the major risk factor is to arrange the capital for better start up of the business Royal Interior. On the other hand, another risk factor is to retain the experienced staff and designers to provide the best quality services to the customers. Lack of recruitment and selection process is another major risk where the company Royal Interior may face issues to serve the customers efficiently without hiring the experienced staff members. Another risk is gaining market structure, where the organisation Royal Interior will face difficulties to retain the customers without proper marketing promotional activities and this is also another major risk for Royal Interior to set up the firm and conduct their operations in the market. Lack of management and poor infrastructural development are also major risks factors and weakness of the organisation that will have adverse impacts on Royal Interior to manage their operations in the UK market. So, to mitigate this weakness, a proper business plan will be made to show to the investors and will try to make them interested to invest in the business. The biggest risk factor which is related to this business organisation will be the extreme market competition. So, to prevent and reduce this risk factor, the Royal Interior must develop unique services for the customers. This business will try to build up a strong customer relationship to get competitive advantages over the competitors through arranging promotional activities and marketing tactics. Finally, the organisation must need to find out potential sources of capital to save it from future insolvency by taking loan and retaining the shareholders for this venture of Royal Interior in order to set the business efficiently. On the other hand, hiring the right team members, designer and technicians is the major strategy which will provide a scope to Royal Interior to retain the experienced staff of serving the consumers efficiently with high quality structure and creative interior design.

Different approaches to securing funding to a new business venture. (P-4.1)

There are different approaches which can be used for securing funds in a new business venture. A business organisation can finance its funds from different sources. The Royal Interior will be a proprietorship business which will collect its capital mostly from the owner's private savings. Personal saving is the most important source of fund for a proprietorship business. It is the fund which can be collected without any risk. It is the foundation of funding for a new business venture. Because in the beginning, no proprietorship business organisation can secure a loan from the outsiders. After the personal savings, personal loans can be another source of securing fund for a new business organisation. Venture capital is advantageous to create business network, easy to locate and improve trustworthiness and thus the organisation may focus on venture capital for setting up the business sustainably. For a new business organisation, the loan collection procedures may be difficult as no financial organisation can believe a new business organisation for potential risk factors. The regular business profit is another source of fund which can be secured regularly from the business enterprise. A business organisation can use its profit for funding rather than withdrawing it. The investors can invest in the new business venture to secure fund. For that, the entrepreneur must need to present his business idea properly to the investors to attract them to invest in the business. The business loan is good for the company to source capital and control the business activities ad also interest is tax deductable due to loan amount. On the other hand, there is also negative impact of taking business loan which is high interest rate to repay the loan amount. However, the organisation must be efficient to expand their business and retain the customers for making the business Royal Interior profitable so that it would be able to repay the loan amount. Share capital is a primary source of capital for limited liability organisations. Companies split their total capital into a small portion of share and sell those shares for securing funds. But it will not be the source of fund for a proprietorship business like the Royal Interior Enterprise. Crowd funding is a modern source of funding in which lots of people can contribute with a little amount to form a large capital for a new business venture. Crowd funding is appropriate for creating values for the business by developing proper marketing though there are negative sides of it such as negative brand values, poor expansion strategy and project risks. Private equity can be another source of funding for new businesses but it is relatively costlier than other sources as its cost is higher than others. The business organisation can be applied to the public for collecting loans. Finally, the business owner can sit in a meeting with the investors or fund providers to collect or securing their business fund.

The benefits and risks associated with different sources of funding for new business ventures. (P-4.2)

Each type of sources of fund has their own risks and benefits which are associated with those funds. In this report, an independent proprietorship business organisation named by the Royal Interior is discussed. This organisation may collect funds from the owner's private savings, personal or commercial loans and from the investors who are willing to invest new business organisations (Stately, 2006). The personal saving has some core advantages which cannot be found in other types of funding sources. In the case of personal savings, the borrowers don't need to pay any amount of interest. Again, there is no deadline for pay back the personal savings. So, the owner of a business can uses that fund without much risk. The main risk factors associated with using personal savings is the loss of capital if the business is not becoming profitable. The loan is one of the most vital sources of funding in new business. There are huge options which can be used for securing loans. When personal savings are not enough to establish and operate a business organisation loans can help a business to survive on its early stage. The main risk of securing the fund from the loan is the interest of loan which must be payable (Thescavenger.net, 2019). Again, the loan must have to repay to the owner of the funds even the business is facing loss. The investors are another core source of fund for a new business organisation. The investors can distribute the risk to many business organisations so that the amount of risk can be minimised. But the investors can make decisions over the business organisation which is the main risk factor of securing funds from investors.

Pitch for funding for a new business venture. (4D1)

The Royal Interior will be a small proprietorship business which will provide full time designing services to different types of commercial and residential properties. As a start-up proprietorship business, it will be difficult for me to finance in this project alone. For this, I will have to collect a loan from the local bank. In my pitch for funding, I will describe the uniqueness of my services which will be provided by me as part of the business. The total pitch will not take more than ten minutes so that my potential investor may not feel disturbed. I will tell the whole pitch as a story because it can attract my investor to invest in my business. The explanation about the exact products and services is very important to attract the investor (Barrow, 2010). So, I will prepare a good presentation script about the exact services that I will be going to provide my customers. Explanation about the target market area for the business and the way to capture those customers in this huge competitive market place will also be the part of the pitch. Finally, a detailed plan about the revenue earning process by delivering services to potential customers will also be described as a part of the pitch. For funding the business Royal Interior, it is necessary to develop unique selling proposition (USP) to attract the shareholders and investors in the business and in this regard, USP is the marketing tactics, through which the organisation can develop proper strategy to promote the organisational services in the market across the UK. The major USP of Royal Interior is the interior design which can attract the customers in near future. Additionally, the organisation is able to set proper price for their services by fruitful pricing strategy and in this regard, the premium pricings strategy is another USP for the business where the organisation would be able to provide high quality services at affordable price. This further attracts the investors to invest in the business for more profitability and enhancing sales volume. On the other hand, the human resource management is another USP of the brand where the managers and the leader is able to handle the team members by providing high salary and performance related pay as well as manage health and safety of the staff and provide them suitable working environment. In addition to this, the organisation is able to handle the shareholders where the major value of the firm would be able to develop by providing high return on investment to all the stakeholders engaged with the business including the designer, interior decorator, staff and technicians, managers, suppliers and distributions, government and customers. On the other hand, as per the financial projection, the organisation aims to set up the business in 6 months, where proper funding, human resources management and recruitment policies are effective for Royal Interior to start up the business successfully. On the other hand, the organisation targets to increase their sales volume by serving 100 customers in 1 year and expand the business by marketing promotional activities. The organisation tries to set up the business efficiently to generate revenue in order to meet the invested capital where they try to fulfil the break even quality and price. After 2 year, the organisation targets to increase their sales volume by 20% and profitability by 30% through retaining more customers across the UK and providing them high quality and creative interior decoration and design to strengthen their customers base and maximise profitability.

Conclusion

In summary, there are lots of activities associated with the establishment of a new business venture. In this report, the Royal Interior which will be a new interior designing business is discussed. The target market of this business and related market conditions is analysed to show the possibilities of sustainable growth of this business. It will be a proprietorship business, so the related legal factors of this business are also analysed in this report. The mission of this business will provide high-quality creative services to the customers. To achieve this mission which type of skills will be used by the business organisation are analysed. There may have different types of the risk factor which may be related to this business. The way to mitigate those risks is shown in this report. At last, the sources of securing funds for this business and related benefits and risks of collecting funds from those sources are also analysed in this report.

References

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