Entrepreneurship Development: Lean Businesses, Objectives, Customer Value Proposition, Lean Business Model

This document provides an overview of entrepreneurship development, focusing on lean businesses, business objectives, customer value proposition, and lean business model. It also includes a detailed development plan, marketing plan, operational plan, technical solution, and information technology plan.

ENTREPRENEURSHIP
DEVELOPMENT
1

Contents
Introduction to lean businesses........................................................................................................1
Business objectives..........................................................................................................................1
Customer value proposition canvas.................................................................................................2
Lean business model Canvas...........................................................................................................4
Detailed Development Plan.............................................................................................................6
The Marketing plan......................................................................................................................6
The operational plan....................................................................................................................7
The technical solution and information technology plan............................................................8
The human resource and organisation plan.................................................................................8
Possible future developments or changes in direction.....................................................................9
Summary..........................................................................................................................................9
REFERENCES..............................................................................................................................11
Appendix 1.................................................................................................................................12
Appendix 2.................................................................................................................................12
Appendix 3.................................................................................................................................14
2

Introduction to lean businesses
Entrepreneurship is capability and readiness for developing, organizing as well as
running an organisation with uncertainties for earning revenue. In addition to this, best example
of entrepreneurship is starting new business. Moreover, entrepreneur is the one who have ability
as well as desire of establishing, administer and success within start-up with risk related to
generating revenue. In other words it can be said that, entrepreneur are simply risk takers and
they always try to come with something innovative in market which can be product, though and
idea. Motive of an entrepreneur behind bringing these is to gain long term sustainability, high
customer satisfaction as well as revenue generation (Hayter, 2016).
This report is based on new venture named as Gymizee which is diet food store. They
deal in several type of diet food including both veg and non-veg which is requirement of every
individual now a day's because people are getting more health conscious. This business will grab
attention of people in effective manner because most of the youngsters are focusing more on
consuming healthy food. In addition to this, respective report will going to elaborate business
idea and its objectives both. Furthermore, customer value proposition canvas as well as lean
business model both will going to be explain. Along with this, possible future development or
modification in relation of the same will discuss with ending summary in report.
Business objectives
Every business has some objectives which they want to achieve in required time period
within effective manner. In relation of Gymizee which is diet food store they have some
objectives related to profit, sales revenue as well as profit margin. Description of these is as
follows:-
 Profit – every organisation work for generating profit and for which they make efforts for
making customer satisfy because it will provide them assistance in gaining high
profitability. Along with this, for an organisation profit is lifeblood without this no
business can sustain in competitive environment for long term. A organisation earn profit
for business survival, its growth as well as expansion over specific time. In relation of
Gymizee diet food store, for first year profitability will remain break even that means no
profit no loss (Ayoade and Agwu, 2016).
 Sales revenue – This amount realized by an organisation from sales of goods and
services. Sales revenue use by an organisation for defining its business size as well as
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concept related to sales revenue is classified within two variation i.e., gross sales revenue
and net sales revenue. Moreover, sales revenue generally reported foe specific time
period such as month, quarter, and year by other non-standard internals can also utilise.
In relation of Gymizee diet food store, sales revenue of company will high and
production cost will low which result in no profit and no loss situation for business firm.
 Profit margin – It is ratio of an organisation profitability which is calculated by (sales
minus all expenses and divide it by revenue). Moreover, profit margin ratio compares
profit to sales and represent how will company handling there overall finances. Profit
margin of company always express through percentage. In relation of Gymizee diet food
store profit margin of company will remain 10%.
Customer value proposition canvas
In present business world, customer value proposition canvas can be considered as a model
that helps in providing assistance to an organisation that if the products and services which has
been offered by the company is specifically being positioned right on the place or not based on
the values and needs of consumers. If it is talked about customer value proposition canvas model
that this was developed by Alexander Osterwalder. The reason behind why he has developed this
model was to analyse that if it fits within market and product or not. Away with this, customer
value proposition canvas can be helpful in finding the requirements of refining existing products
along with the services that has been offered by an organisation (Lindh, 2017). It is also helpful
in in finding different ways through which new developed product can effectively be sold in the
market.In present context where the new diet food store is going to be launched which is named
as Gymizee consist of different value proposition and these are presented underneath:
4

Consumer Profile
 Customer gains: Specifically, expectations of the customer can be considered as gains in
present context, where they may expect or might get surprised after utilising the products
or services offered by an organisation like Gymizee (Ngcobo and Keswa, 2017).
 Customer jobs: Fulfilling needs and requirements of the customer is said to be a crucial
job for or their own where it has been analysed to that clients perform different range of
tasks in order to resolve the issues which has been faced by them or to satisfy them
through purchasing a dietary food product from a company like Gymizee.
 Customer pains: When a client does not fulfil his or her needs then it is considered to be
pain for the individual. It is the responsibility of Gymizee to identify the different panes
through analysing the market and then try to satisfy them on the same in order to pull out
favourable outcomes (Kruger and Steyn, 2019).
Value Proposition
 Products and services: This In present context, Gymizee which is the organisation
that is going to start offering dietary food products to the customers like energy bars,
leafy greens, cruciferous vegetables, boiled potatoes, whole eggs, and so on. It is must
for this organisation to consider all the needs and requirements of customers because
then only they can become able to attract individual’s attention towards their
offerings.
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 Gain Creators:This is considered to be another crucial element of value proposition
for Gymizee because this would help company in create games in relation with what
exactly the customers have desires for like at the time of purchasing.
 Pain relievers: This is also said to be another important part of value proposition for
an organisation like Gymizee as this could help in in understanding the crust that how
services along with products will be fulfilling the needs and requirements of
customers so that they can gain the best experience and can get satisfied.
This is said to be a crucial model which helps in developing the business model Canvas,
because it has been already found that taking into consideration of customer value proposition
Canvas will effectively lead an organisation like Gymizee to get proper or systematic
understanding of how customer satisfaction can be achieved in much effective and efficient
manner.
Lean business model Canvas
Alexander Osterwalder has also introduced business model Canvas in his book named as
business model ontology. This particular model consists of nine different elements which can
also be considered as building blocks for businesses. In present context, business model Canvas
is specifically used by an organisation when it comes to focus on every single element in a
systematic way (Margalit and Alfasi, 2016). In present context, Gymizee which is a brand new
dietary food product store that is going to be launched in the market can consider this model to
enhance insides in relation with customers that company is targeting and focus on the value
proposition that company already have. It will also lead Gymizee to understand the own business
model and will also deliver information competitive environment as well.
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All of the segments that are present in in business model Canvas are presented underneath:
 Key partners: Organic farmers, different gyms, investors, suppliers are said to be the
crucial key partners of Gymizee, who will be looking forward to carry out great returns
on whatever the investment that they have done on the company.
 Key activities: Serving customers with dietary food supplements, products and diet plans
related services will be e considered as the key activities that Gymizee will be performing
and including this managing social media accounts, negotiating with partners are said to
be some of the other activities that this organisation will be performing.
 Key resources: daily supply of different elements like whole eggs, cruciferous vegetables
and so on will be considered as some of the key resources that will be required by
Gymizee to consider in order to operate successfully.
 Value Proposition: Ample number of value propositions that has already been given by
Gymizee to the targeted customers like discounts are given to the individuals based on
their body mass and so on.
 Customer relation: Personal trainers, diet plans and so on will be provided to the
customers on minimum cost after conducting the analysis of the fees which has been paid
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by many of the individuals among different gym and sports clubs (Maxwell and et. al.,
2018).
 Market channel: There are various marketing channels that organisation i.e. Gymizee will
be using to promote their products and services and grab the attention of customers from
the targeted areas. Some of the channels like social media; billboards and so on will be
taken into consideration by the organisation.
 Market and customer segmentation: It is must for Gymizee to specifically select the
segmentation just before serving products and services to the customers because then
only they may become able to deliver the best and suitable services to the customers and
gain competitive advantages.
 Cost structure: In context with Gymizee, there are various cost that will incur while doing
operations like packaging of the food, purchasing raw materials to prepare dietary food
products and so on.
 Revenue stream and pricing model: This specifically stays and closed with delivery
services where (RM15/Delivery) will be considered and the particular model is the
penetrating pricing model will be utilised.
Detailed Development Plan
The Marketing plan
Marketing plan can be defined as a document that helps in delivering the information
about marketing strategy that is required to be followed by an organisation or which has already
been adopted by them for a particular month, quarter or yearly basis. In context with Gymizee,
this organisation will be conducting operations in United Kingdom where the particular
marketing plan that has been adopted by them is presented underneath:
Objectives – To improve sales by 15% in next three months considering social media
campaigns and other type of marketing channels.
Market size – This store named as Gymizee will be more focusing on online business
and it will be offering customers with dietary food products in the targeted area (Li and DaCosta,
2016).
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STP model – Segmentation, targeting and positioning are said to be the three different
elements of this particular model and in context with Gymizee, this particular model is presented
in a detailed manner underneath:
 Segmentation – The particular segment that has been taken into consideration by
Gymizee is the demographic segmentation, where the targeted audience is belonging to
the age group of 18 to 40.
 Targeting - Key customers of Gymizee are gym trainers, commercial sports clubs, normal
customers that are health conscious and so on.
 Positioning – The particular positioning method, which has been taken into consideration
is within market as they are using both physical store and social media tools for gaining
better placein the market.
The operational plan
Operational plan maps daily basis task or project which needed for running business in
effective manner.
Vision – Gymizee's vision is to enhance the overall profitability of the company and
become the leader in the market of dietary food products and services.
Mission – Gymizee's mission incorporate a few things which are notice beneath:-
• Serve to every single client similarly
• Work for advancing genuineness and equity unfailingly.
• Respect pride of every single customer.
• Most significant is to have acceptable relational abilities (Chipfupa and Wale, 2018).
Key to success - Various strategies that are specifically being utilised by Gymizee in
order to gain success from the competitive business environment it is presented underneath:
 Introduce item and administrations to clients by utilizing a few different ways of
showcasing.
 Hiring staff who are capable just as they can react in powerful way for dealing with task
in appropriate way.
 Offering great item and administrations.
 Building great connection inside workers and bosses just as including customers and
specialists.
9

The technical solution and information technology plan
Technical planning represents that organisation need to make sure the requirement and
differences of stakeholders and customers in terms of fulfilling their needs and satisfying them in
prominent way. Along with this for an organisation it is essential to put emphasis on significant
areas as it is the important part of company and its outcome is for the development and growth of
Gymizee. Along with this in simple form it is described that it is developed with the brief
technical plans in terms of fulfilling the Expectations and requirements of stakeholders as it
transfer things in prominent way in terms of achieving their goals and objectives (Esposito,
2018).
Besides this information technology plan is essential for Gymizee as respective company
also offer its services through online platform with the help of Technology in order to carry
forward its business operations by considering their targets and objectives. Furthermore,
Technology also offers significant tools to the entrepreneur as it is helpful in terms of guiding the
company to develop their new business considering the growth. The small business marketing
communication and Finance will be revolutionized with the help of proper advancement of
communication technology networking and computer considering the range of industries in order
to acquire competitive advantage off market area (Ataman and et. al., 2018).
The human resource and organisation plan
Gymizee is the small-scale business considering its growth strategy which is market
development and its objective is important for them regarding recruiting more employees and
trainers which is helpful for company regarding its expansion and business in an effective way in
terms of accomplishing its target (Kumar, 2017). Along with this human resource planning is an
essential activity for the company and it also tends to include workforce planning employee
development plan developing employees salary and benefits program regarding the hiring and
firing of employees. Human resource also includes planning for the various goals including:
 The workforce planning
 Developing learning plans for the employees
 Eliminate employee turnover and improve employee retention
 Better working environment and structure for employees
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Possible future developments or changes in direction
For the factor future development and growth and of matrix is adopted and it’s also known as
the market expansion grid. It is useful for the company in terms of developing their strategies
and planning about their future and upcoming changes (Kumar and Borbora, 2017). It also
provides prominent direction and guidance regarding the existing condition of market to
Gymizee in terms of its success and growth as currently Gymizee use market ppenetration
strategy and for the further development they need to focus on different strategy. Its few points
are mentioned as under:
 Market penetration: Company needs to focus on improving its sales regarding its present
services and products within the existing market. Currently Gymizee use market
ppenetration which is useful for them in offering its Services within UK in an effective
way.
 Product development: It put emphasis on launching new product within the existing
market place (Carvalho, 2017).
 Market development: As per the strategy company need to focus on entering its new
market with the help of its current products and services. Hence for the future
development of Gymizee they will use market development as it is helpful for the
effective and smooth expansion of business that result in future development and helps in
achieving competitive advantage in market.
 Diversification: In this organisation need to put emphasis on entering in the new market
by launching its new product. It is considered as very risky strategy for company as
there’s a chance of those customers does not like the new product which is offered by
company (Lowe and Feldman, 2017).
Therefore, in terms of Gymizee currently the use market penetration strategy as the focus on
improving their sales regarding the present product within the existing market area. But for the
future development Gymizee need to use market development strategy that helps them for its
better expansion in terms of taking entry in the new market with its current product and services.
Summary
For beginning a business there is necessity of fund since it incorporate a few exercises
and required different assets additionally for beginning business and directing exercises in better
way. In connection of Gymizee which is a dietary food store will be funding 10% by their own
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and rest of the amount will be invested by the investors and partners. Primary explanation for
choosing different effective financial tool is that they are more ideal as contrast with different
banks. In addition, they by and large put resources into business person beginning business rather
than the suitability of business. Moreover, point financial specialists center on giving help to new
companies while they are venturing out, of conceivable benefit which they get from business.
On the other hand, it is also summarised that there are investors who specifically offer
budgetary support for business person or new companies, mostly in return of possession value
inside business firms. Also, reserves which gave a stronger financial image to Gymizee where
just one time venture for giving help to business in supporting and directing exercises of
organization through their troublesome beginning phases.
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REFERENCES
Books and Journals
Hayter, C. S., 2016. Constraining entrepreneurial development: A knowledge-based view of
social networks among academic entrepreneurs. Research Policy. 45(2), pp.475-490.
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.
Lindh, I., 2017. Entrepreneurial development and the different aspects of reflection. The
International Journal of Management Education. 15(1), pp.26-38.
Kruger, S. and Steyn, A. A., 2019. Enhancing technology transfer through entrepreneurial
development: practices from innovation spaces. The Journal of Technology Transfer,
pp.1-35.
Margalit, T. and Alfasi, N., 2016. The undercurrents of entrepreneurial development:
Impressions from a globalizing city. Environment and Planning A: Economy and
Space. 48(10), pp.1967-1987.
Maxwell, O. A. and et. al., 2018. Entrepreneurship curriculum contents and entrepreneurial
development of university students in Nigeria. International Journal of
Entrepreneurship. 22(1), pp.1-9.
Li, Y. and DaCosta, M. N., 2016. The enterprise reforms and entrepreneurial development in
China. Journal of the Asia Pacific Economy. 21(2), pp.151-173.
Chipfupa, U. and Wale, E., 2018. Farmer typology formulation accounting for psychological
capital: Implications for on-farm entrepreneurial development. Development in
Practice, 28(5), pp.600-614.
Esposito, G. F., 2018. Development policies for lagging behind areas: an interpretative note in
the name of civil entrepreneurial development. The International Journal of Economic
Behavior-IJEB, 8(1), pp.33-45.
Kumar, K. N., 2017. Microfinance for entrepreneurial development: Study of women’s group
enterprise development in India. In Microfinance for Entrepreneurial
Development (pp. 53-71). Palgrave Macmillan, Cham.
Ataman, K. and et. al., 2018. Green Entrepreneurship: An Opportunity for Entrepreneurial
Development in Nigeria. Covenant Journal of Entrepreneurship (Special
Edition), 1(1).
Carvalho, L. C. ed., 2017. Handbook of Research on Entrepreneurial Development and
Innovation Within Smart Cities. IGI Global.
Lowe, N. J. and Feldman, M. P., 2017. Institutional life within an entrepreneurial
region. Geography Compass, 11(3), p.e12306.
Kumar, G. and Borbora, S., 2017. Institutional Environment Differences Across the Indian States
for Entrepreneurial Development. Review of Integrative Business and Economics
Research, 6(4), pp.50-69.
Ngcobo, S. and Keswa, S., 2017. Exploring graduates' governance perceptions of entrepreneurial
development opportunities in agriculture. Journal of Public Administration, 52(3),
pp.576-588.
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Appendix 1
Market size – Gymizee is said to be a small scale dietary food store which will be
operating in United Kingdom with three permanent and two temporary staff members.
Market growth – Market penetration strategy is said to be the crucial strategy which is
adopted by Gymizee, where the focus will be on improving sales of different dietary food
products within existing market area. in that they focus on enhancing sales of their present
products in existing market area.
Segment – Commercial gyms, health clubs and personal buyers are said to be the
segments on which Gymizee will be focusing upon, as these are said to be the crucial customers
for this organisation that would help in sustaining within the market for a longer period of time.
Competitors – In United Kingdom, people are already focusing on keeping themselves
healthy which has already created high competition for Gymizeelike vitamins and shakes and so
on that has already affected profit margins and productivity of the company.
Key partners – There are several key partners like Organic farmers, different gyms,
investors, suppliers and many more that has already helpedGymizee to sustain in the market for a
longer period of time.
Marketing channels – Billboards, Social Media and so on are said to be some of the
marketing channels that has been adopted by Gymizee in order to conduct all the promotional
activities in much effective and efficient manner.
Appendix 2
Fixed costs (In £) Variable costs (In £) Fixed costs (In £) Variable costs (In £)
1st year 2nd year
Online application development 3000 0
Salary to staff 15000 15000
Promotional cost 500 300
Licensing charges 400 250
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Insurance cost 1200 1200
Raw material (flowers) 35000 55000
Packaging cost 4500 6000
Labour charges 1000 1800
Other costs 500 700
Subtotal 20100 41000 16750 63500
Total 61100 80250 91650
Revenue stream for first three years
Number of flower orders per day Price per orderTotal revenue of weekTotal yearly
revenue (48 weeks)
1st year 200 8 11200 537600
2nd year 250 8 14000 672000
3rd year300 8 16800 806400
Assumptions:
 The number of flowers order per day has been assumed.
 Number of weeks in a year is also assumed.
 Sales price
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Appendix 3
BEP: Fixed cost/contribution per unit
Contribution per unit: Sales price-variable cost per unit
= 8-4
= 4
1st year: 20100/4
= 5025 Units
2nd year: 16750/4
= 4187.5 Units
3rd year: 16750/4
= 4187.5 Units
Cash flow analysis table
1st year 2nd year 3rd year
No. Sales 67200 84000 100800
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Selling price £8
Sales revenue 537600 672000 806400
Cash Budget for 3 years
Receipts (cash inflow)
Cash sales 537600 672000 806400
Investment
Payments (cash outflow)
Online application development 3000 0 0
Salary to staff 15000 15000 15000
Promotional cost 500 300 300
Licensing charges 400 250 250
Insurance cost 1200 1200 1200
Raw material (flowers) 35000 55000 65000
Packaging cost 4500 6000 6800
Labour charges 1000 1800 2200
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Other costs 500 700 900
Cash balance 476500 591750 714750
Opening balance 0 476500 1068250
Closing balance 476500 1068250 1783000
Balance Sheet
As at end of Year One
Current Assets
Cash $5,100
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Debtors $18,000
Stock $3,120
Total Current Assets $26,220.00
Non-current Assets
Computer $5,500
Store Fit Out $8,100
Office Equipment $15,000
Total Non-current Assets $28,600
Total Assets $54,820
Current Liabilities
Credit Card $5,500
Creditors $4,120
Total Current Liabilities $9,620
Non-current Liabilities
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Total Non-current Liabilities
Total Liabilities $9,620
Net Assets $45,200
Shareholders’ Equity
Owners’ Funds $40,000
Current Year Profit $5,200
Total Shareholders’ Equity $45,200
Month Pre-Start month 1 month 2 month 3 month 4 month 5
month 6 month 7 month 8 month 9 month 10 month 11
month 12 Total
INCOME
Cash Sales 1,500.00 1,672.50 1,864.84 2,079.29 2,318.41
2,585.03 2,882.31 3,213.77 3,583.36 3,995.44 4,454.92
4,967.24 35,117.11
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Credit Sales 750.00 836.25 932.42 1,039.65 1,159.21 1,292.52
1,441.15 1,606.89 1,791.68 1,997.72 2,227.46 2,483.62
17,558.56
Business Loans 10,000.00
10,000.00
Income from other sources 1,200.00 1,338.00 1,491.87 1,663.44
1,854.73 2,068.02 2,305.85 2,571.02 2,866.69 3,196.36
3,563.94 3,973.79 28,093.69
Opening balance 0.00
0.00
0.00
Total £13,450.00 £3,846.75 £4,289.13 £4,782.38 £5,332.35
£5,945.57 £6,629.31 £7,391.68 £8,241.72 £9,189.52 £10,246.32
£11,424.64 £90,769.36
Cash Purchases 1,100.00 1,226.50 1,367.55 1,524.82
1,700.17 1,895.69 2,113.69 2,356.77 2,627.80 2,929.99
3,266.94 3,642.64 25,752.55
21

Stock 350.00 390.25 435.13 485.17 540.96 603.17 672.54 749.88 836.12 932.27
1,039.48 1,159.02 8,193.99
Drawings 200.00 223.00 248.65 277.24 309.12 344.67 384.31 428.50 477.78 532.73
593.99 662.30 4,682.28
Wages/Sub Con. 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00 300.00
300.00 300.00 300.00 3,600.00
Rent 350.00 350.00 350.00 350.00 350.00 350.00 350.00 350.00 350.00 350.00 350.00
350.00 4,200.00
Miscellaneous 100.00 100.00 100.00 150.00 150.00 210.00 210.00 220.00 230.00 240.00
250.00 250.00 2,210.00
Tools & Equipment (Capital Items) 5,700.00
10,000.00 15,700.00
Total £8,100.00 £2,589.75 £2,801.32 £3,087.22 £3,350.25
£3,703.53 £14,030.54 £4,405.15 £4,821.69 £5,284.99 £5,800.41
£6,363.96 £64,338.83
22

Surplus/Deficit £0.00 £5,350.00 £1,257.00 £1,487.81 £1,695.15
£1,982.10 £2,242.04 -£7,401.23 £2,986.53 £3,420.03 £3,904.53
£4,445.90 £5,060.68 £26,430.54
Balance @ Start £0.00 £0.00 £5,350.00 £6,607.00 £8,094.81 £9,789.96
£11,772.05 £14,014.09 £6,612.86 £9,599.39 £13,019.42 £16,923.95
£21,369.85
Balance @ End £0.00 £5,350.00 £6,607.00 £8,094.81 £9,789.96
£11,772.05 £14,014.09 £6,612.86 £9,599.39 £13,019.42 £16,923.95
£21,369.85 £26,430.54
23