Entrepreneurship Development: Lean Start-Up Model for Organic Beauty Products

This report discusses the new business idea of introducing organic beauty products in the UK market. It focuses on the Lean Start-Up model and the customer value proposition. The business objectives include improving profit margin, generating sales revenue, building a strong customer base, and increasing market share.

Entrepreneurship
Development

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................................3
PART B.......................................................................................................................................................3
Introduction over Lean Start-Up..........................................................................................................3
Business Objectives.............................................................................................................................5
Customer Value Proposition Canvas..................................................................................................5
Detailed development plan................................................................................................................11
Recommendation for future development purpose........................................................................16
Summary..............................................................................................................................................17
Reflect on tutor feedbacks.................................................................................................................17
REFERENCES..............................................................................................................................................19

INTRODUCTION
Entrepreneurship development is the procedure of enhancing knowledge and the
skill set of the entrepreneurs. It gives high contribution in economic development by
establishing’s new businesses, raising jobs and plays significant role in promoting key
goals i.e. GDP, skills development as well as community development. This report will
discuss about new business idea based on this a new venture going to strat-up. In this
report will discuss over Lean Start-Up model.
PART B
Overview of Business Idea
The new business idea is to introduce “organic beauty products” in which
comprises 50 brands which manufactures non-synthetic organic beauty products. A new
venture going to establish it's business with this new idea. It targets UK market for
lauching it's new market segment. There is a reason to target UK market only such as
there are fewer organization which manufactures and sells organic beauty products.
New start-up business targets professional women’s like actresses and high
professionals because all have skin issues and have to apply daily make-up to keep
them beautiful. Currently most of the people avoid to use chemical cosmetics and prefer
to buy such products which keeps their skin healthy and glowing. With the new business
idea, New venture can easily establish it's business in the UK market. It is a investable
entrepreneurial opportunity for the new business venture because it can encourage
targeted customer's to buy it's new product segment.
Introduction over Lean Start-Up
It is a scientific approach of developing and managing a new start-up business
and provides desired goods in the customer’s hand quickly. It is an adjustment of
Business Canvas Model which is specially proposed for entrepreneurs. However, this
canvas model access on key problems, solutions, key metrics and competitive
advantage. This model is designed by Alexander Osterwalder and stated that this Lean
Canvas supports entrepreneur to develop actionable and focused business plan
(Contigiani and Levinthal, ., 2019). However, this model is quite beneficial for both scale

businesses i.e. small scale and large scale. It is perfect model that takes only few
months to develop infrastructure of model effectively. Lean Start-Up concentrates on
two start-up factors i.e. uncertainty and risk factor which often develops problem while
establishing new business or product. New business venture applies this model in it's
business to set beneficial angle of the new business idea. Elements are mentioned as
follows:
 Problem: According to this element, entrepreneurs must understand needs and
problems of users regarding product then establishes new venture because it will
be ensured them, they will meet existing needs of users. However, most of the
businesses have failed to put more efforts, financial resources and timeline to
develop wrong products. So, market research is the best option to fulfil existing
needs of customers.
 Solution: Once business enable to understand problem then this model supports
to find logical solution of identified problem. Thus, entrepreneur can write about
solution in the Lean Start-Up Canvas.
 Key Metrics: This element comprises wide range of products or services that
provides by new start-up venture. With this element new venture can focus over
one metric and develop on it. So, it is essential for the new venture to pick up
right metric because it reflects strength of business in front of stakeholders.
However, metrics can be considered research objectives.
 Unfair advantage: This element basically demonstrates the competitive
advantage. A new venture must identify that it is unfair advantage over existing
competitors or not.
 Unique Value Proposition: This element denotes company’s promises that they
committed to the targeted customers or users such as they will resolve their
issues
 Cost Structure: This element indicates cost that pays to other for bringing
products to the client i.e. suppliers cost, cost of maintenance etc.

With the different componenets of Lean strat-up model, new business business venture
has enabled to deal with uncertainty and risk factors while lauching new product
segment such as “organic beauty products”.
Business Objectives
To gain more profit and build strong brand image in the UK's market over the new
product segment, new business venture creates SMART Objectives.
 To improve profit margin of the up to 40% at the end year of 2023.
 To generate sales revenue of natural beauty products up to 70-80% between the
year of 2021 to 2023.
 To build strong and large customer base at the end year of 2023.
 With the end year of 2023 increases market share of new products around 40%.
 Augment the revenue is about 40% within the year of 2021.
 To meet customer’s objectives by offering high quality natural beauty products.
 To build brand equity of all-natural beauty products between the year of 2021 to
2022.
These are the key business objectives that will support new venture to gain competitive
advantage over others and establishes business successful with in timeframe.
Customer Value Proposition Canvas
It is a strategic tool that support to ensure that proposed product or service is positioned
as per the customer needs and expectation (Cotton and Dark, 2017). This canvas
model is introduced by Alexander Ostwalder in 2004 to provide understanding that how
product is proposed around users needs. This model is quite similar well-known
Business Canvas Model which is dependent on several components i.e. customer
profile, value Map and company’s value proposition. New business venture applies this
cusotmer value business model to fit it's business idea like Organic beauty products
accordingly cusotmer's need and expectations.

Customer profile:
It is one of the most important component of value proposition canvas wherein
determine major issues of customers and pains which they face after using product or
services. This component generally dependent on three factors i.e. gains, pains and
customer jobs. New business venture targets professional women’s like actresses and
high professionals because they require to use cosmetics regular basis and other
common women who requires such beauty product which keeps their skins healthy pre-
and post-application.
 Gains: Customer always seeks for such products as per their needs and
expectations. So, new start-up business must concentrate on customer’s
expectation which delights them after receiving expected products as well as
enhance likelihood of following a value proposition. Gains for targeted customers
are wide variety natural beauty product line so customers have wide choice for
buying purpose- brand recognition- online shopping facilities.
 Pains: Before introducing new product requires understanding pain of customer
in the form of negative experience, risk etc. which they have experienced after
using products or services (DIMITRESCU and et.al., 2018). There is a reason to
introduce this new product segment such as high level chemicals used in the
cosmetics that are one of the major pains of targeted cusotmers.
 Points- to remove the make-up skins become quite rough and visualized freckles.
 Customer Jobs; Customers always try to resolve issues of users which they
experienced due to the product or services in order to bring satisfaction in
individuals.
Customer profile generally develop accordingly targeted segment’s pain, gains and
jobs.
Value Map:
Product & Services: Lean Canvas Model

 Gain creator: According to this element, product or services are proposed in such
manner which creates customer’s gains and provides added value them. New
business venture offers various type facility in new product segment such as
reputable Brand- products are available in different brands- online home delivery
facilities- wide product line.
 Pain relivers: To give brief information about product or services benefits and
advantage which alleviates pains of customer. The proposed new product
segment offers high quality natural beauty products, less application of chemicals
which makes beauty product more organic.
 Product & services: Such product or service which develops gains and relieves
pain that directly creates value proposition for the customers.
Achieving fit between customer profile and value proposition
Once listing gain creator, pain relivers and product & services etc. then each
point can be ranked in efficient manner which creates values to the customers. A fit
section can be achieved when proposed product or services are offered as part of value
proposition identify the major pains and gains from the customer’s profile (Felin and
et.al., 2019). This customer value proposition canvas model is used for new venture to
evaluate that its new products segment will fulfil customer’s needs and expectations or
not. New venture targeted women as audience for its new product segment because
this segment wants such product and ready to pay extra to keep their skin healthy.
Lean business model Canvas
It is a method of introducing new product on the behalf of existing business or
introduce a new company. Generally, this structure is quite similar like business canvas
model but few sections have been changed in this model. It is illustrated a wide range of
planning and marketing strategies that supports to gain competitive advantage and
leads business success (Fernandes and et.al., 2018). This model focuses on the way of
timeline which impacts revenue stream of business. New venture applies this canvas
model to create single format of business.

Key Problems
 Customers
gets high
level of
chemicals in
cosmetics
products
after
spending
high cost.
 Cosmetic
beauty
products
release such
chemicals
which make
user’s skin
rough and
reduces
nourishments
on skin after
removing
make-up.
 Limited
brand
portfolio with
limited
product line
so, customer
unable to
Key Solutions
 To offer
chemical
free natural
beauty
products at
wide
variation in
prices.
 Proposed
new
product
segment
will keep
users skin
soft,
reduces
freckles
and
provides
even skin
tone.
 New
venture
posses
wide brand
portfolio
along with
wide
variety new
Unique Value
Proposition
 “UK’s
first new
natural
beauty
product
segmen
ts which
will
keep
your
skin
more
nourishi
ng and
freckles
free”.
 It is
quite
different
product
segmen
t as
compar
ed
others
becaus
e it is
chemica
Unfair Advantage
 Informatio
n
Technolog
y plan is
well-
designed
of new
venture
that cannot
be copied
by
competitor
s. The
reason
behind is
that it is
quite
expensive
so it is not
easy to
copy.
 License
has been
taken by
this
business
venture to
retail it’s
natural
Customer
Segments
Women’s are
the targeted
audience of
the New
venture who
always ready
to spend extra
cost to keep
their skin more
healthy and
nourishing.

influence
purchasing
behaviour of
users.
 Limited
availability of
natural
beauty
products in
different
brands.
Existing
Alternatives
 These
above-
mentioned
issues can
be resolved
in minimum
time by
offering
product
line.
 High
availability
of number
of brands
with large
natural
beauty
products
posses’ by
new
venture.
l free
and
suits for
all skin
types.
 New
venture
has
included
more
recogni
zable
brands
which
manufa
ctures
natural
beauty
product
s and
these
will sell
by new
busines
s
venture.
High-Level
Concepts
 Online
Video
beauty
products in
the
business
market. It
cannot
copy by
others
because it
is
governme
nt
authority.
Early Adopters
 This
venture
idea can
be
adopted
by such
custome
rs who
always
wants to
try
somethi
ng
instead
of
thinking
about
risk. The
main
charact
eristic of
ideal
custome
r is that
they
focus on
users’
problem
s and
try to
Key Metrics
 New
product
segment
manufactur
es from
natural
beauty
products
that is one
of the
major
characteris
tics which
Channels
 Digital
marketing
strategy
follows by
new
venture to
retail it’s
new
product
segment in
the UK’s
market
effectively.

natural
beauty
products to
the customer
on time.
alleviate
pains of
customers.
 New
ventures
offers
home
delivery
services
that act as
gain
creator for
the
customers.
tutorial
method
will use
by new
venture
to
advertis
e it’s
new
product
segmen
ts.
 Traditional
retailing
strategy
also
follows by
new
business
venture to
sell it’s
products in
the retail
sector to
those
customer
who do not
prefer to
buy
product
through
online
media.
provide
such
product
s or
services
which
brings
level of
satisfact
ion in
them
effective
ly.
Cost Structure
 Suppliers costs
 Customer acquisition costs
 Technicians cost
Revenue Streams
 There are various reputable
brands which sponsors new
product segment. Sponsors are
source of generating revenue.
 This product segment will helps
to gain high profit margin on each
one from customers.

Detailed development plan
Marketing plan
This marketing plan is organized to introduce new business idea i.e. “Launch
organic beauty product” in trageted market.
Objectives
 To gain profit margin of the up to 40% over the new product segment at the end
year of 2023.
 To build strong and large customer base at the end year of 2023.
Situational Analysis
SWOT analysis
 Strength: New venture has wide brand portfolio and proposed product segment is
the major part of customer value proposition.
 Weakness: New product segment is quite expensive as compared cosmetics but
this business venture has wide range products which posses’ different price
accordingly quantity.
 Opportunity: Increasing demand of natural beauty products in UK’s customers is
the major opportunity for the new venture.
 Threats: Brexit is the major threat for the all small-scale business but new
venture has less threat as compared others because it has natural beauty
product segment which will promote by UK’s government (Inomata and et.al.,
2020).
Strategy
4p’s marketing mix

 Product: New venture posses’ wide product portfolio that will attracts customers
for buying purpose.
 Price: Competitive and seasonable pricing strategy will follow by new business
venture to sell it’s new product segment.
 Place: UK is the place wherein new venture retail it’s product to the customers.
 Promotion: Traditional and digital marketing strategy will adapt by new business
venture to aware and motivates them to buy new product segment in efficient
manner (Keller, Daronco and Cortimiglia, 2017).
Implementation
Chief Executive Officer (CEO) of the new venture will practice all above-
mentioned strategies so that defined objectives can be achieved in productive manner.
Controlling and monitoring
360-degree feedback strategy will practice by CEO of new business venture to
control and monitor all business functions in efficient manner so that desirable
outcomes can be received within three years.
Operational plan
Operational plan is a single line format that provides briefing about team.
department etc. which contributes to fulfil proposed goals of the company in effective
manner. However, operational plan enlists day to day tasks which requires to run
business promptly. This plan is designed for the new business venture so that it can run
it’s business in effective manner.
 Objectives: Generate revenue is about 40% within the year of 2021.
 Activities: Free trial (as advertisement purpose) facilities provides by marketer of
new venture to the customer at the spot so that they come forward to visit firm.
CEO will take review from customers about products through online media that
will strong online presence of the new venture. Email marketing strategy is also

followed by new business venture that will support to build large customer base
through which it can effectively generate 40% revenue on it’s new product
segment.
 Quality Standards: IT technicians supports to maintain quality of customer
services. While CEO will take review from customer regularly basis about it’s
product and services which will maintain quality in effective manner (Mostafiz and
Goh, K., 2018).
 Desired Outcomes: To practise above mentioned activities will support new
business venture to gain desired outcomes within timeframe.
 Staffing and resource requirements: Human resources, new technology,
suppliers, internet etc. requires which will perform different roles in the
workplace.
 Implementation of timetables: Operational objective of the new busines venture
must be gained around 40% within a year.
 Monitoring process: CEO of new business venture will act as operation manager
who monitor individual’s performance at personal level so that desired objective
can be accomplished within timeframe.
The Technique Solution and Information Technology plan
Information technology plan is a strategic document that gives brief detail about
comprehensive technology-enabled business management. New business venture use
this IT plan to differentiate it’s services from others.
 Executive Summary: This plan has given brief information about information
technology which will use for the new business venture.
 Background information: The mission statement of the new business venture is
to offer best quality services either online or offline to the customer so that they
do not have to face any inconvenience.

 Current State of Technology: Currently e-commerce market has become
economic stimulant market because most of the customer like to buy product
through online media instead of traditional. UK’s people are highly updated for
the e-commerce market that is one of the major opportunities for the new
business venture. Most of the companies in UK offer online shopping services
but still people face communication issues, New venture has decided to offer
such telecommunications like e-mail marketing, customized scheduled delivery
services, telephone systems, Integrated library system etc. improve information
technology system (Obedgiu, 2017).
 Technology’s Goals and Objectives:
 To build strong and large customer base at the end year of 2023.
 With the end year of 2023 increases market share of new products around 40%.
 Timeline: To achieve proposed information technology’s objectives within three
years.
 Staff Training/Professional Development Strategy: Technical skill program will
organize by CEO of new venture for the IT people so that individuals learn
different technical skills and operates all emerging technologies. Professional
development plan will develop that will improve weak areas of staff due to this
overall performance of business can be affected.
 Budget: This IT plan will take around 400 euro to complete overall functions
effectively.
 Evaluation: To evaluate overall plan will take effective managerial practice i.e.
assessment by CEO of new business venture. New venture evaluates proposed
objective achievement probability and able to capture large market share on it’s
new product segment with the end year 2023 by offering high quality customer
services. High quality IT people develops new software applications for the
company and users wherein customer can check product availability accordingly
their needs and purchases them.

Human Resource and Organisation plan
Human resource planning is the departmental document which enlists that which
programmes are needed to be followed for the certain period by human resource in
HRM practice (York, 2018). The main goal of the plan is to gain it’s all proposed
objectives and mission by implementing HRM programmes. This plan is proposed for
the new business venture.
 Goals and Objectives
 To establish different business model for the new start-up business.
 To meet customer’s objectives by offering high quality natural beauty products.
 To build brand equity of all-natural beauty products between the year of 2021 to
2022.
 Strategy: Recruiting highly skilled and talented suppliers who helps to bring final
products at lower costs so that company can generate high profit margin on each
product effectively. HR applies brand’s equity model to maintain brand equity of
each natural beauty products in efficient manner so that economical benefits can
be received effectively.
 Implementation: CEO of new business venture implements all mentioned HR
strategies in efficient manner so that desired outcomes can be accomplished.
 Controlling and monitoring: To control and monitor HR plan uses performance
evaluation strategy by new business venture.
Financial plan
 Cost Structure: it can be defined as the various type of expenses and costs that
organization will be undertaken while running it’s business model. It also
supports to reduce price of product of services as much as possible. For
example, new business venture is going to proposed it’s new product segment
then it have to pay suppliers, IT people.

 Revenue Stream: It is a source of revenue that company generates in it’s
business. However, revenue stream is made up by service revenue and
transaction-based revenue. New business venture can generate revenue from
sponsorship and it’s high professional customer’s services for the new business
idea (Seggie, Soyer and Pauwels, 2017).
 Break Even Analysis: It is a neutral situation wherein no profit or no loss. With
this factor company can predict sales prices of new product segment. New
business venture pays suppliers that situation is known as break even analysis
over it's new business idea that is lauching new product segment (“organic
beauty products”).
 Cash Flow Analysis: It is a statement that demonstrates wherein cash is being
generated and where in cash is being spent.
 Sources of Finances: Bank loans and angle investors are the major source of
finance for the new business venture.
Recommendation for future development purpose
Marketing campaign is the best option for the new start-up business venture. The
reason behind is that it will bring high understanding in customer about proposed
product benefits and advantage that directly encourages them to buy them. With this
strategy, new business venture can easily give brief information about it’s new product
segment like organic beauty products such as it is chemical free product segment that
contains wide range of product line with wide product portfolio. Such information attracts
targeted audience to take trial and buy products once (Towbin and et.al., 2018). Overall,
new business venture can differentiate it’s product segment from others through
marketing campaign that will support to gain high competitive advantage from
competitors.
Summary
Angle Investors will invest huge amount in the new business venture. The reason
behind is that it is quite unique entrepreneurial idea ie.e lauching organic beauty product
that has wide scope in future as well. Another reason is that currently most of the

women are in pain due to high chemical products. These products are quite expensive
but contains high majority of harmful chemicals which directly harm people skins (Wood
and Jobber, 2016). New business venture has proposed natural beauty products that
will act as pain relivers for the customers. However, UK’s government have taken
initiatives to promote small scale business in the UK’s market in order to stimulate GDP
rate of country. This business idea is quite effective because it promotes natural product
segment that will give release beneficial impacts on customers health as well as
reduces environmental issues. So, angle investors will invest their funds in the new
business venture.
Reflect on tutor feedbacks
When I prepared this assignment accordingly file scenario, I learned lots of things
like to develop business idea, reason behind of the developing business idea,
significance of lean entrepreneurial opportunity. I also learned to develop value
proposition canvas which is used to evaluate that how business idea stands over
customer’s need and expectations. I also developed Business Model Canvas to give
overview of the new business venture like it’s key resources, channels, revenue stream,
cost structure, customers relationship etc. Thus, I gained lots of knowledge from this
assignment. when I completed my project then I submitted to my tutor. However, I got a
big feedback over the previously submitted work from the tutor side. Priorly, I was
thinking that I followed all guidance and instruction which already mentioned in the
project to complete assignment effectively. So, there was no change to get feedback.
But when I got and I read overall comments and reviewed my overall submitted work
then I got to know that there were various things which I did wrong like I did not focus on
business idea which was the major theme of overall assignment. It was one of the major
comments which was given by tutor with each statement that I did not mentioned my
business idea. I sated objectives for the business idea which were too generic
according to my tutor but when I reviewed then I also realized that I should have
developed SMART objectives (Lindh and Thorgren, 2016). I did not illustrate Business
Canvas Model but I wrote too much information about the model like what is this, how to
use without implement in proposed business idea. I gave recommendation for the future
development purpose without mention business idea. I also wrote summary of overall

assignment without highlight business idea. Such comments were given my tutor which
made me feel bit tensed. But when I read whole assignment which was previously
submitted then I felt that I could improve it by adding some information. Like I previously
link up my whole assignment with the proposed business idea then I remove theoretical
aspects of different models like Business canvas Model and Customer Value
Proposition model and link up with proposed business idea. Thus, I addressed all
comments in the original work which were given by tutor and resit the work as per
teacher guidance. When I resit work as per teacher comments then I felt too relaxed.
However, I have learnt from the feedback comments that I require to improve my
practical aspects instead of theoretical because descriptive analysis is not enough for
such assignment. In addition, I also have learnt that I should require to be specific for
the business idea then I can make understand to other people what I want to convey my
message through the project. in this assignment, I recorded overall information related
to new business idea but I did not mention what was the idea. But when I addressed
overall comments gradually then I realized that I could do previously but I did not pay
attention over my whole project. But this feedback process has supported me to
understand my weak areas which I require to improve like practical aspects, analytical
skills etc. So, if I will get such similar assignment in future then I will remind all
comments so that I will not commit similar mistakes which I did in this project.

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