Entrepreneurship Development: Manufacturing Sports Equipment

This report discusses the plan for manufacturing sports equipment, including the value proposition and business canvas model. It also includes a 3-year growth plan and financial projections.

Entrepreneurship
Development
Contents
INTRODUCTION................................................................................................................................3
MAIN BODY.......................................................................................................................................3
INTRODUCTION............................................................................................................................3

Canvas for customer value propositions..........................................................................................4
Canvas for lean business model.......................................................................................................5
C level specialist contribution..........................................................................................................7
Financial and financing plan............................................................................................................8
CONCLUSION....................................................................................................................................8
REFERENCES.....................................................................................................................................9
APPENDIX 1.....................................................................................................................................10
APPENDIX 2.....................................................................................................................................11
INTRODUCTION
Every business takes some idea before starting of any business. For carrying put any
business the entrepreneur takes an idea which he believes is unique or he can perform that business
with much interest and values. For survival it is very much necessary for the business to bring the
innovation into their products or services offered, in their systems, structures and so on. For the
development of an enterprise a proper development of idea is very much necessary. For reference
this report has taken an example of an idea of manufacturing the equipments for sports. The
organisation is concern with the establishment of a business which is concern with the
manufacturing of sports related equipments.

This report discusses about the plan which the company has with regard to the idea, it
includes the opportunities which the organisation has with itself. The report also develops the
business and finance plan wit regard to the business idea. The report also includes the value
proposition model and the business canvas model which help the business in framing its operational
layout.
MAIN BODY
INTRODUCTION
The business idea is to open a manufacturing unit for sports related equipments. The basic
purpose for the business is to manufacture or deliver the high quality of sports related equipments.
As the increase the trend and craze among the people for sports and fitness and also increase the
market share and value for the sports industries. The business has the plans for manufacturing the
high quality product (Akhter and Sumi, 2014). The strategy which is followed by the company
totally has put focus on its quality and not at its price offered. The company has planned to put the
high prices for their products. All these sports related equipments would be so authentic that they
can be used by the athletes also. The major target for the company will be the athletes and the
authentic sports academics which sponsors the sports equipments to their students. The company is
also planning to open the stores at some of the metro politician cities in which the customers can
visit and buy the products. Apart from this the organisation would be also opening its business at the
online platform so that the customers or the interested people can visit there and can buy the
products of they liked it. Every company or business has some plans with respect to their growth,
likewise this manufacturing company also has the following 3 years plan:
 Creating the business awareness and a good market about the company within three year. At
least the strong base should get establish by the organisation.
 Establishing or positioning of brand in the minds of targeted customers so that they get
aware about the brand existence and the values it got to offer to the people.
 There should be a 2% rise into the profits of the company. The organisation should make the
profits in an increasing speed of 2% at least and the future operational activities should also
get increased with the same increasing rate so that ample of products should get available in
the target targeted.
At the initial year the company had a profit of 2000 units (Ayoade and Agwu, 2016). From the
proper research the company has the ability to have increase in its profit by 10% per annum. The
calculations of revenue with the total sales for around 3 years are presented below:
Particulars 1st year 2nd year 3rd year
Units sold 2000 2200 ( 2000 + 10 % ) 2420 ( 2200 + 10 % )
Sales ( 30 Per unit ) 60000 66000 72600
Less: cost ( 10 per
unit )
20000 22000 24200
Profit: 40000 44000 48400
Profit margin:
Profit / sales * 100
40000 / 60000 *100 44000 / 66000 * 100 48400 / 72600 * 100

66.67 % 66.67 % 66.67 %
From the table presented above, the organisation would be earning a profit of 40000 in its
initial year. Having such profit in the initial or introduction year is quite an achievement for the
company. The profits for the company also gets increased into the further years with the profits
44000 and 48400 respectively in 2nd and 3rd year. It is already very much identified that the
organisation profit is increasing but with the same phase and speed. The organisation can increase
their volume for profits through increase into existing market or increase in the advertising or
promotional methods (Chang and Rieple, 2013).
Canvas for customer value propositions
This is a framework which was developed by the Alexandra Osterwadler. This framework
which ensures that the products or the services which are offered by the company should be around
the needs and demand of customers. The products i.e. sports equipments are provided by the
company's should be in relation to the needs and demands of the customers also. These products
must create values for the customers. Customers are the actual people who would deliver the profits
to any organisation. Organisation also knows that they only can earn profit from the satisfaction of
customer needs and wants. The organisation that's why focuses upon the needs and demand of the
customers and plan the product such that they satisfies the same. Various components are stick with
this model and some of them are as follows:
Product: Here the products are the sports equipments offered by the company. The basic strategy
which is followed by the company is providing the high quality products to the customers. The
company does not believe in setting the low prices for their products but they have the strategy for
charging the higher prices for their products as they are delivering the products of high quality. The
products includes basically the three components which are features, experience and benefits. The
features which are provided by the company's product are very much unique which has the benefits
for satisfaction and high quality. As the company is very much new into the industry it does not
have much experience with regard to its products (Doern and Goss, 2013). This manufacturing unit
for these products has done many research before the manufacturing of the same. They have tried
there best that they can manufactures the product with the good quality and unique speciality.
Customers: The customer component also has three aspects which are fear, needs and wants.
Needs are the basic needs which any human may require for its basic survival. Wants are the wishes
of an individual in which they wish about the thinks which they wish they could buy or have. The
customer would be very much satisfied after their purchase of the product. The quality which are
offered by the company is quite costly but they all are of nice quality. These products cannot get
afford by the people belonging to below average class group as their prices are every much high.
The experience and comfort which is provided by these sports equipment are very much different
and unique. The products that are offered by the company is very durable and would last long for
years. Products like these work as an asset for the purchaser as because of their high quality they
would last long.
The model for the above concept is shown into diagram below:

Canvas for lean business model
This model majorly focuses on making the actionable plan which is consists of approx one
page. In that plan the organisation can focused upon the actions and the strategies which it needs to
take place. This canvas puts its major focus upon the problems, actions, solutions and on the
competitive advantage which the company can gain. The model major focus is upon the start ups as
it can help into the reduction of risks and uncertainty. Now a day business does not believe in
creating a business plan instead they make the business plan. Making business plans are costly and
time consuming affair for any organisation that’s why the organisation more choose to prefer make
lean business model as it does not consume the time for company and is very much short and
simple. This framework uses the 9 block concept which also can get modified according to the
suitability and need of the organisation (Hayter, 2016). These blocks help the organisation in stating
the logical steps can be build up by the organisation. As the organisation is just a start up, it would
be very much beneficial for the company to use the framework. The major elements of the company
are as follows:
Key partners: It refers to the major partners who are associated with the organisation. These are
considering as a true leader for any organisation. These people can be the investors, stakeholders,
entrepreneur and the so on. The key partner also includes the external parties; these may include the
major suppliers, parties to which the company is in link and so on. These people set the policies for
the organisation. They also have forms the missions and visions for the company. All these key
partners take the opinions and the ideas so that they can form the good operations for the company.
The company has the capacity for performing more work and these key partners help in making the
company one of them.
Key activities: The key activities which are performed by the firm are the manufacturing of sports
related products. The organisation produces the quality products. There major focus is upon the
quality, how the organisation can provide the quality products to their targeted customers. The
company is totally keen towards the sports related activities as they manufacture the equipments for
every sports which is ever played in the world. The major objective of the organisation is to put the
major focus and lime light upon the concept of sports and encourage the sports in a person’s life
(Kagbu, 2018).
Key resources: The key resources which the organisation needs to use into their manufacturing or
production activity are raw materials used for manufacturing of sports equipments, the proper
updated machineries which process the input into output and the like. The company also need the

labours or the employees so that they can manufacture the products and helps the organisation into
the management. In the key resources the organisation needs the raw materials, human resource for
management purpose, capital for pursuing the organisational work and the required capital.
Value proposition: Value refers to the utility that an individual get from the purchase of a product.
The organisation product delivers the value to the purchaser. The products which are manufactured
by the company deliver the value to their customer. The major objective of the organisation is to
deliver a satisfying product through which the customer feel satisfied. The money which they have
paid for the product should be equivalent to the value or satisfaction they are getting from the
product (Lindh, 2017). If the company gets failed to deliver the required value to their customers
then the company might lose their customers which would be a great deal for any organisation.
Customer relationship: The organisation should try to maintain the relation with their customers.
They can perform it through organising the events for public, regularly making contact with their
customers like sending the festival messages, messages related to any discount or any offer,
dividing the customers in some category like gold customers, who often purchases the products
from the company, the silver category who purchased the product from the organisation not on
regular basis, and the bronzer customer who have newly opened an account in the company and
hardly has done around 4-5 transactions with the company.
Channels: The channels which are company can use are in number. The company can start with
targeting a small market and position its product into that market. Later the company with time can
expand its business by opening up the full furnished stores at the cities with most population. The
company can also use the online platform where they can put their products. The customers or the
purchaser can visit there and look for the products. The customers can also buy the products at
online platforms through performing the online transactions for the products. To position their
products through a strong medium the organisation also launches their brand at various social media
sites. From these sites the company educated and expresses itself about the motive and objectives
for their business and about the products they are selling. Through the social media the company
can reach out to more population and more number of populations would get attracted to the
company.
Customer segments: The customer segments refer to dividing the customers or the targeted market
according to the positioning of their product. The market gets segmented so that it is become easy
for the company in targeting the actual customers for the organisation. The organisation majorly
targets the customers who have some kind of affection with sports or have much interest in sports.
These people get ready to buy the products of such a high quality.
Cost structure: In this the structure which is related with the cost in the company is made. The cost
can be in relation to the manufacturing cost, operational cost, distribution costs, costs related to the
employees pays and so on (Makhitha and Dhurup, 2014). These cost structure helps the
organisation in having an estimate about how much cost they would be incurring into their activities
like operational, advertisements, promotions and etc.
Revenue streams: It is very much necessary for any organisation to earn profit for their growth and
survival. The growth for the company is done when it earns some revenue in the organisation. The
structures or the systems build up by the organisation should be such that it gives the regular profits
to the company. With regular and stable income only the company would be able to grow itself.
The canvas of business model is as follows:
Key partners
 Stakehold
er
 Entrepren
Key activities
 online
promotion
al
Value
proposition
 the value
given by
Customer
relationships
 customers
services
Customer
segment
 the
company

eurs
 employees
 investors
activities
 organising
of public
event
the
company’s
product
should be
very much
equivalent
to the
price paid
by the
customers.
which
includes
the post
purchase
services
and etc.
aims at the
people
who have
a very
keen
interest
into
sports.
Key resources
 Intellectua
l property,
licensing,
patients
and etc.
 Tangible
resources
like raw
materials,
machineri
es,
building
and etc.
Channels
 Offline
stores
 online
sites of
company
 Promotion
s at social
media
platforms
Cost structure
 Research about the market.
 Cost related with raw materials
 Cost in performing the advertisements
and promotional activities.
 Cost incurred in getting the machineries
and equipments.
 Pays to the employees
Revenue stream
 Revenue from the promotions at online
platform
 Increase in sales through online
shoppings.
C level specialist contribution.
The business thought is to open a production unit for sports related types of things. The
fundamental reason for the business is to make or convey the high caliber of sports related supplies.
As the expansion the pattern and furor among the individuals for sports and wellness and
furthermore increment the piece of the overall industry and incentive for the games businesses. The
business has the designs for assembling the great item. The system which is trailed by the
organization thoroughly has put center around its quality and not at its cost advertised. The

organization has intended to put the significant expenses for their items. Every one of these games
related supplies would be legitimate to such an extent that they can be utilized by the competitors
too. The significant objective for the organization will be the competitors and the genuine games
scholastics which supports the games supplies to their understudies. The organization is additionally
intending to open the stores at a portion of the metro government official urban areas in which the
clients can visit and purchase the items (Middleton, 2013). Aside from this the association would be
additionally starting its business at the online stage so the clients or the intrigued individuals can
visit there and can purchase the results of they enjoyed it.
The sole objective of the organisation is to provide the good quality sports equipments to their
customers. For the idea generation there are some procedures which are stated below:
Market research: The proper market research get conduced in which the researcher research about
the internal and external environmental factor.
Distinct business idea: After the proper market research the organisation should come up the
distinct idea for its business. The idea which has been taken by the company is very much unique
and different from others.
Idea screening: In this the idea which the organisation has come up gets screen. All the unwanted
ideas or unfeasible and non validate idea gets erase from the list or gets screen out.
Selection: In this the idea gets selected. The selected idea is very much feasible and can possibly
get implement through the right planning and execution.
Implementation and launching: At this step the idea which is been selected by the organisation
get implemented and launch into the market.
Financial and financing plan.
As the company is setting up a whole manufacturing unit, it might need a huge funds. The company
needs funds to perform its production activity. Before production activity, the company needs funds
for land, building, raw materials, machineries, employees, electricity and so on. For performing all
these activities the organisation needs funds. These funds can be raised through bank loans, angel
investors, trade creditors and etc. Among the above given options the organisation can select one
according to its suitability (Newbold and Erwin, 2014).
CONCLUSION
From the report discuss above, the introduction about the business idea has been mentioned.
The report also includes the business model canvas and lean business model. The report also
includes the finance and the related plan.
REFERENCES
Books and Journals
Akhter, R. and Sumi, F. R., 2014. Socio-cultural factors influencing entrepreneurial activities: A

study on Bangladesh.IOSR Journal of Business and Management. 16(9). pp.1-10.
Ayoade, E. O. and Agwu, P. E., 2016. Employment generation through entrepreneurial
development: The Nigerian experience.British Journal of Economics, Management & Trade.
11(3).pp.1-14.
Chang, J. and Rieple, A., 2013. Assessing students' entrepreneurial skills development in live
projects.Journal of Small Business and Enterprise Development.
Doern, R. and Goss, D., 2013. From barriers to barring: Why emotion matters for entrepreneurial
development.International Small Business Journal. 31(5). pp.496-519.
Hayter, C. S., 2016. Constraining entrepreneurial development: A knowledge-based view of social
networks among academic entrepreneurs.Research Policy. 45(2).pp.475-490.
Kagbu, J. H., 2018. Constraints to women farmers’ entrepreneurial development in Nasarawa State,
Nigeria.Journal of Agricultural Extension. 22(1). pp.44-54.
Lindh, I., 2017. Entrepreneurial development and the different aspects of reflection.The
International Journal of Management Education.15(1). pp.26-38.
Makhitha, K. M. and Dhurup, M., 2014. Reflections on the constraints in entrepreneurial
development among emerging survivalist and micro craft enterprises in Gauteng.Journal of
Contemporary Management. 11(1).pp.230-250.
Middleton, K. L. W., 2013. Becoming entrepreneurial: gaining legitimacy in the nascent
phase.International Journal of Entrepreneurial Behavior & Research.
Newbold Jr, K. F. and Erwin, T. D., 2014. The education of entrepreneurs: An instrument to
measure entrepreneurial development.Journal of Business and Entrepreneurship. 26(1).
pp.141-178.
Njoroge, C. W. and Gathungu, J. M., 2013. The effect of entrepreneurial education and training on
development of small and medium size enterprises in Githunguri District-Kenya.International
Journal of Education and research. 1(8). pp.1-22.
Santiago-Roman, J., 2013.Entrepreneurism in Puerto Rico: job creation and entrepreneurial
development. Northcentral University.
Secundo, G., Vecchio, P. D. and Passiante, G., 2015. Creating innovative entrepreneurial mindsets
as a lever for knowledge-based regional development..International Journal of Knowledge-
Based Development. 6(4). pp.276-298.
Tseng, C. C., 2013. Connecting self‐directed learning with entrepreneurial learning to
entrepreneurial performance.International Journal of Entrepreneurial Behavior & Research.
Yu, J.and and et. al., 2013. Industrial cluster, government agency and entrepreneurial
development.Chinese Management Studies.

APPENDIX 1
Primary & secondary market research:
Elements Details
Market size The market sixe for the company is quite huge
Market growth Growth in sports is very good
Customer preferences Customers would like the quality of the product
Segment size The segment is huge
Key partners Investors, stakeholders, employers, entrepreneurs and etc

APPENDIX 2
Cost structure: The cost structure for for first year is as follows:
Particulars Amount
Fixed cost
Rent (Per annum) 8000
Salaries 9000
Variable cost
Market research 1000
Advertisement, marketing and promotions 1000
Cost of material for equipments 1000
Total cost 20000
Revenue streams:
Particulars Amount
Sales through app store 30000
Revenues from website 20000
Income from online promotions 10000
Total sales 60000
Break even analysis:
Formula = Fixed cost / contribution per unit
= Total fixed cost for first year is 17000
Contribution per unit = Sales – variable cost / total selling units
= 60000 – 3000 / 2000
= 28.5
BEP = 17000 / 28.5
= 596.49 cups