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

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