"Executive SummaryThis report is based on launching a digital agency, with the primary aim of tappinginto the SME market place. The agency will play into the budget segment of themarket, which is untapped. None of the mainstream advertising agencies are able tocapitalise on the marketing and market opportunity that is presented by the budgetmarket providers. The report capitalises on the idea and concepts associated withlaunching the project. Justification are presented, which are important. In the report,further analysis is presented, so as to providing a critical analysis, on the project. Afinancial feasibility and market feasibility has been provided which is essential toestablish the market presence and product focus. In the second part of the report, the discussion is based on the requirements for anew business. The discussion does highlight on the importance and significance inestablishing key advantages which are important derive a successful businesslaunch, and customer acquisition. The report further dwells on the technical andmanagement skills that are required by the start-up and the management skills thatare most important in deriving successful management and marketing competencieswithin the organisation. A business model, is proposed using the business modelcanvas© and that of Porter’s generic strategies. This is purely aimed at delivering aclear marketing strategy for the organisation. The final stages of the report, does provide for a risk assessment. Clear risks areidentified such as management failure, lack of understanding of management theory,and careful consideration of retail and product considerations are being proposed.1 | P a g e Table of contentContentsExecutive Summary ................................................................................................................................ 1Table of content ...................................................................................................................................... 2List of tables ........................................................................................................................................ 3List of figures....................................................................................................................................... 31.0 Introduction .................................................................................................................................. 42.0 Background to new venture ........................................................................................................ 42.1 New venture concept .............................................................................................................. 4The concept .................................................................................................................................... 5Justification ..................................................................................................................................... 52.2 Opportunity gap ....................................................................................................................... 62.3 Feasibility ................................................................................................................................ 6Financial feasibility ......................................................................................................................... 8Resource utilisation ........................................................................................................................ 93.0 Requirements for a new business start up ................................................................................ 103.1 Resources ............................................................................................................................. 103.2 Technology management ...................................................................................................... 103.3 Employee perspective ........................................................................................................... 113.4 Management skills ................................................................................................................ 114.0 Proposed business model ......................................................................................................... 124.1 Business model ..................................................................................................................... 124.2 Operations strategy ............................................................................................................... 144.3 The Business Model Canvas ................................................................................................ 145.0 Business Risk ............................................................................................................................ 165.1 SWOT ......................................................................................................................................... 165.2 Risk matrix .................................................................................................................................. 17Listing out the risks ....................................................................................................................... 176.0 Common mistakes .................................................................................................................... 18? Cash management – Spending too much or too little ........................................................... 18? Lack of comprehension in market ......................................................................................... 19? Wrong hiring decision ............................................................................................................ 19? Marketing strength ................................................................................................................ 19? Financial viability of the operations ....................................................................................... 20? Single person operation ........................................................................................................ 20? Not taking care of people and HR management ................................................................... 217.0 Conclusion ................................................................................................................................. 218.0 References ................................................................................................................................ 23 2 | P a g e List of tablesTable 1: Key statistics ................................................................................................ 8List of figuresFigure 1: Success of the Idea ..................................................................................... 7Figure 2: Preferred payment option by retailers/ SME owners ................................... 7Figure 3: Different Management Skills at different levels ......................................... 11Figure 4: Generic strategy ........................................................................................ 13Figure 5: Risk matrix ................................................................................................ 18 3 | P a g e 1.0 IntroductionThe first part of the report is based on understanding the impact of launching a newidea. A justification is provided, as to clarify the market opportunity and gap in themarket. Effective marketing and resource utilisation at the start up stage is identifiedto be the key advantage that is important to an organisation to thrive and succeed.The discussion does involve review of the financial commitment requirements andthe range of resources that are required successfully to establish the key marketrequirements. The second and third part of the project dwells on the aspects of launch. Adifferentiation strategy is proposed. The differentiation strategy along with the modelcanvas clearly provides the range of considerations that are to be made in effectivelydelivering a marketing and management structure to launch upon. A range of riskassessment techniques are used, where the discussion does highlight on thenumber of risk principles to be looked into prior to the launch and effectiveunderstanding of principles for the project to be considered. The consideration doesinvolve, a proposal by using risk matrix, and does provide for a considerable inputinto the project. 2.0 Background to new venture2.1 New venture concept4 | P a g e "