Entrepreneurship Development: Introducing a Multifunctional Vacuum Cleaner

This report covers major aspects of entrepreneurial development along with introducing a new product, canvas of customer value proposition and canvas model of lean business.

Entrepreneurship
Development

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Introduction.................................................................................................................................1
Customer value proposition canvas............................................................................................2
Lean business model canvas.......................................................................................................3
The c level specialist contribution...............................................................................................7
Financial and financing plan.......................................................................................................8
Summary.....................................................................................................................................9
CONCLUSION................................................................................................................................9
APPENDIX 1.................................................................................................................................11
APPENDIX 2.................................................................................................................................11

INTRODUCTION
Entrepreneurial development is defined as the procedure which is helping the business to
innovate new ideas and by this new business establishment can be made. For accomplishing
success this is highly important that new and emerging products are introduced in continuous
basis so that customers can be retained for longer duration of time (Uduji, Okolo-Obasi, and
Asongu, 2020). This is highly beneficial for developing business and facilitating long terms
goals and objectives as well. This report is based on introducing an innovative product
introduced by a venture which is a multifunctional vacuum cleaner. The vacuum cleaner is
providing easy and effective way to clean things within economical prices as well. This report is
covering major aspects of entrepreneurial development along with introducing a new product,
canvas of customer value proposition and canvas model of lean business. In addition to this
financial plan is also being inserted which is going to analyse investment decision taken within
the proposed project.
MAIN BODY
Introduction
A new business innovative idea for introducing multifunctional vacuum cleaner is being
exerted which is going to provide their vacuum cleaners in various areas of UK. The company is
going to launch a multifunction vacuum cleaner which can be used within household and
corporate aspects. The product is made up of advanced features which is available in economic
prices (Bencheva and Stoeva, 2019). The company is using effective manufacturing process
which is ensuring higher quality within products that enables to manage overall market
reputation in appropriate manner as well. The major objectives ascertained by the CEO of the
organisation are defined as under:
 To enable the business to establish within marketplace so that to earn higher profits and
sales.
 In order to attract higher customer range so that to maximise revenues in tremendous
manner.
 Intensify profits by 5% in every coming year so that to execute operational activities in
appropriate manner.

The sales estimation for first year is 1000 units in which for every year 5% increment is
being decided. The calculations for profits and sales are elaborated as under:
Particulars First year Second year Third year
Units sold 1000 1050 ( 1000 + 5 % ) 1103 ( 1050 + 5 % )
Sales ( 300 Per unit ) 300000 315000 330900
Less: cost ( 100 per
unit )
100000 105000 110300
Profit: 200000 210000 220600
Profit margin:
Profit / sales * 100
200000 / 300000 *100 210000 / 315000 * 100 220600 / 330900 * 100
66.67 % 66.67 % 66.67 %
The above table is showing that sales for three years will be 300000, 315000, 330900
respectively. Cost of these years will be 100000, 105000, 110300 receptively. The margin of
profit in these three years is increasing at the rate of 5% per year due to which 66.67% profit is
being earned by the company.
Customer value proposition canvas
Value proposition canvas: This is defined as the tool in which businesses are trying to
analyse linkage between key elements of product and other requirement of customer in prompt
manner. With the assistance of this a business can ensure that their product is able to fulfil
requirement of their potential customer in appropriate manner (Halberstadt and et. Al, 2020).
There are numerous elements existed within this model and these are elaborated as under:
 Product: There are three major aspects within this model which are benefits, features and
experience. There are various benefits that can be attained by customer by using
multifunctional vacuum cleaner such as time saving in cleaning, following easy steps of
cleaning the house of corporate offices. This may providing proper maintenance of
hygiene and saving energy in equitable manner. The product is including reusable bags
due to which higher affordability is being inserted within vacuum cleaners.
 Customers: There are three basic elements existed within value proposition canvas
model and the same are helpful in meeting needs, wants and fear of individual (Askerov,

P. F. and et. al, 2018). With the help of vacuum cleaners the company can meet
objectives of their target market in appropriate manner which is helpful in sustaining in
long run. The vacuum cleaners are highly affordable in nature and this is the reason that
chances for sustainability for the company is higher (Ahokangas, Boter, and Iivari, 2018).
Vacuum cleaners are containing reusable bags due to which life of a vacuum cleaner is
increasing. Besides this prices of vacuum cleaner is set to be low as this can be afforded
by every class of people. For the company manufacturing vacuum cleaners is forming the
model with the help of CEO which is as under:
Lean business model canvas
Business canvas model: This is defined as the tool of strategic management which can
be used by business in order to grab information regarding business concept in appropriate
manner. This is a document which is covering different information those are associated with
executing business functions. There are nine aspects which is required to be covered by the
business organisation (Arias and et. al, 2018). These key elements are defined as activities,
resources, customer relationship, channels, customer segment, cost structure, revenue and many
more. As the new vacuum cleaner, this is essential that they initiate to use canvas model. By

taking assistance of this model various stakeholders can be aligned to have their inclination in
attaining business objectives in appropriate manner. All these elements are elaborated as under:
 Key partners: For the major objective of operating activities are highly essential for the
business as this could lead in making higher relationship with key stakeholder and
partners. For a business internal and external parties are the linkage which are essential to
be carried out in order to provide higher efficacies. For the organisation vacuum cleaner
is the product which is going to attract higher customer and stakeholders so that to
manage business in significant manner (Kunsek and Djokic, 2018).
 Key activities: These are the sum of operations which is associated with various
activities which can be executed by organisational functions. As the company is
manufacturing vacuum cleaners which is associated with multi functionality so this could
provide higher business efficacies. These are providing varied activities such as
promotions, marketing and advertising. With the assistance of these the business may
align to attain goals and objectives in prominent manner.
 Key resources: For executing operational activities in primal manner this is essential for
the business that resources are arranged in sufficient manner. The major resources
required by the organisation which are funds, capital and various physical resources and
many more. By attaining all the resources manager of the business will be able to perform
all the business operation in sufficient manner.
 Value proposition: All those products and services those are managed by the
organisation and they are used in order to provide ultimate level of satisfaction. For the
organisation their value proposition is that the company is manufacturing vacuum cleaner
is that these are easy to handle and providing easy cleaning solution to customers. These
features of vacuum cleaners are going to help customer to deal with their needs and
demands in successful manner (Mwatsika, 2018).
 Customer relationship: For attaining sustainability and to survive in the market for
longer duration so that by this prominent relationship can be maintained with customers
as well. The company is highly engaged in managing appropriate relationship with
customer so that to involve innovation in their products. The generated environment by
the business may be helpful in providing higher goodwill and market prominence to the
organisation.

 Channels: Value proposition within an organisation is helpful in establishing in
providing right product and services to the customer in equitable manner. For the
organisation they are highly focused in providing their products to retail stores and to
enhance online presence as well. The CEO of the organisation is trying to inhale business
concept within the business so that to maximise interest of their clients. Besides this the
company is exhaling door to door selling so that to spread awareness of their products
within customers. The CEO of the organisation is including social media marketing so
that to provide awareness to their customer and make them engage in appropriate manner.
 Customer segments: This is defined as the segment of market which is being inclined by
the company so that to maximise selling of their product within marketplace and to
enhance their revenue as well (Mutalimov and et. al, 2020). The major target audience for
the company is male, female those are having busy lifestyle. The innovation of vacuum
cleaner will lead their target customers to get time effective solution for their needs and
demands.
 Cost structure: The costs which are included by the organisation in order to prepare
product is wholly associated with cost structure. All these costs are associated with rent,
material cost, salaries of employees and promotional expenses.
 Revenue streams: For executing business in effective manner this is imperative that all
those business operations are required to be maintained those are leading to generation of
revenue. The major revenue stream for the company is retail stores and online selling.
These sales are being generated by making advertisement promotion and using other
promotional tools as well.
The business canvas model for the organisation is elaborated as under:
Key partners
 Creditors
 Employee
s
 Suppliers
 Investors
 Customers
Key activities
 Selling
activities
 Promotion
al
activities
 Marketing
process
Value
proposition
 manufactu
ring of
affordable
and value
proposed
vacuum
Customer
relationships
 prominent
environme
nt of retail
stores.
 Providing
high end
Customer
segment
 men and
women
those are
having
busy
schedule.

 Advertise
ment
activities
cleaner.
 Giving
appropriat
e
experience
to
customer
by
providing
them
hassle free
solution of
cleaning
(Farias, C.
and et. al,
2019).
innovation
in
products
so that to
attract
number of
customers.
 Individua
l those are
looking
for
cleaning
solution
which is
helpful in
time
saving.
Key resources
 capital
 human
resources
 material
which is
required
to
manufactu
re body of
vacuum
cleaner.
Channels
 selling
vacuum
cleaner
through
retail
stores.
 Providing
online
presence
as well so
that to
give
convenien
ce to
people for
buying
vacuum
cleaner.
Cost structure
 Salaries
 Rent
 Advertisement, marketing and
Revenue stream
 Sales through retail stores
 online sales
 door to door selling

promotions
 Cost of material for manufacturing of
vacuum cleaner.
 Market research
The c level specialist contribution
The CEO of the organisation has propounded with an innovative business idea so that to
manufacture vacuum cleaner which is possessed with multi functionality and give ultimate
solution to needs and demands of customers. The business is having high chances of succession
as vacuum cleaner is having high innovation and along with this prominent technology is being
used by the business as well. The vacuum cleaner is light weight and quieter which is designed
for the people those are busy (Galvão, Marques and Ferreira, 2019) . The company is giving
three years manufacturing warranty over the vacuum cleaner which enhances its durability and
affordability. The vacuum cleaner is light weight along with this high technology is being is used
as well. The estimated cost for one vacuum is 100 pounds due to which in order to earn
prominent profit selling price is kept at 300 pounds.
There are numerous advantages of multifunction vacuum cleaner as this is helpful for
busy people to get assistance over cleaning activities. Besides this the vacuum cleaner is handy
and lightweight so can be used by each and every individual in effective manner. This vacuum
cleaner is going to provide higher assistance to people in order to give them advantages in their
cleaning process and minimising time in these processes as well. Durability of this vacuum
cleaner is high, besides this this is noise free and consuming lesser time as well. The vacuum
cleaner is having advanced technology due to which this can be used by people in easy manner.
Vacuum cleaner is laced with higher energy efficacy and due to the reason this is providing
monetary benefits to user as well. The major thing for vacuum cleaner is that it is high in
technology due to which this is satisfying various purposes of individual in direct or indirect
manner. All emerging features are being added in vacuum cleaner and this was possible due to
prominent efforts given by CEO. These are providing high edge benefits to users and business as
well. The process of innovative idea is being discussed as under:
 Conducting market research: In the first step CEO is going to organise campaign for
market research in which market opportunities are being organised in such a way that
market insights can be analysed in equitable manner. CEO of the organisation is

critically examining trends and latest technology in their vacuum cleaner so that to gran
attention of customer in direct manner (Petković and Đukić, 2018).
 Formulating different business ideas: After analysing market trends business idea is
the next step which is being framed by CEO of the organisation. The business idea is
being propounded as initiating business of manufacturing multifunctional vacuum
cleaner. Various concepts are being examined so that the best alternative can be selected
which is providing higher benefits in long run (Markina, Sharkova, and Barna, 2018) .
 Idea screening: Under this stage all the accumulated ideas are being screened in such a
way that effectively plans can be executed. CEO is evaluating ideas in a manner that they
can decide the best possible way to earn profits and lead the market in appropriate
manner.
 Selecting one unique idea: Within this stage CEO of the organisation has decided the
idea of manufacturing multifunctional vacuum cleaner which is the most advantageous
business idea for the organisation.
 Implementing the selected one and work accordingly: After implementing appropriate
concept CEO is trying to associate various concepts so that to build efficiency within
business in direct manner.
 Launching the idea in the market: This is defined as the last stage under which CEO of
the of organisation decision regarding new product development is being taken within
marketplace. Under this stage plans of launching are taking place in order to launch
vacuum cleaner in sufficient way. This will enable the business to manage overall ratio of
succession along with market prominence.
Financial and financing plan
From the appendix 2 this is being concluded that the company is required to inhale
various costs in order to attain success and enhance their market survival as well. Various costs
are there such as rent, staff salaries, market research and material cost and many more. Besides
this the company is focusing over different streams that are being used by them in order to
develop revenue. Some of these methods are retail shops, online promotions and social media
promotion as well. Sales for first year is 300000 pounds and cost is 100000. For the first year
profit is amounted to 200000. The BEP for the first year is 111.11 vacuum cleaners. As this is
clear that if the organisation is able to sell 111.11 units of vacuum cleaner in their first year if

business then they can recover whole variable cost and leads to earn profit as well. The cash flow
analysis is demonstrating that total income for whole year is 300000 and closing balance for first
year is 272000. CEO of the business can use various methods in order to launch their vacuum
cleaner in the market in proficient way. Besides this there are varied sources those can be used
by the business so that to assemble funds such as bank loan, equity capital and many more.
These funds are used by the business in order to manage salaries of their staffs and to organise
promotional events in appropriate manner so that to meet business objectives in direct manner.
Summary
The company is having high business opportunities to attract customer by providing them
innovative feature within newly launched vacuum cleaners. The major concept of the business is
to launch products in such a way that higher productivity and efficiency can be rendered in
prominent way (Vidović, 2018). For attracting investors the company is providing prominent
opportunities to their investors and along with they are giving assurance as well that they are
going to earn with this investment as well. By taking assistance of investors the company can
lead to earn higher revenues and market prominence as well this will help overall business to
earn tremendous profits as well. The major reason of making higher investment opportunities for
their investors and providing them ease to deal with the same in respective manner.
CONCLUSION
From the above report this can be deduced that entrepreneurial development is one of the
essential concept which cam be used by business in order to develop business ideas in sufficient
way. With the help of entrepreneurial development a business can deal with market prominence
in appropriate manner and unleash their idea in front of audience in prompt manner without
facing any difficulties. There are various models which can be used by business so that to attain
sufficiency with new development plan and they are canvas model. By taking assistance of these
models internal and external analysis can be performed in such a way that purpose of the
business can be met effectively. Appropriate financial planning is required which is helpful in
covering sources in which funds are being gathered and along with this revenue system and cost
structure is the aspect which leads the business to attain success in short period of time.

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APPENDIX 1
Primary and secondary market research: The key aspects are required to be used in
order to execute market research and with the help of following aspect market analysis can be
made:
Elements Details
Market size The market size of vacuum cleaner is very big the innovation
in it is very high.
Market growth Growth in the market of vacuum cleaner is very high because
people tends to use such products which are providing ease
in lifestyle.
Customer preferences Customers give preferences to emerging ideas as it attracts
them to improve their lifestyle.
Customer segments The targeted segment of the company is men and women
with busy lifestyle.
Segment size The size of segment of the company is large.
Competitors The major competitors for the company is Dyson and many
more.
Key partners The key partners of the organisation are suppliers, customers,
employees, investors etc.
Channels Retail shops, online media and digital media
APPENDIX 2
Cost structure: The cost structure for the venture of vacuum cleaner for first year is as
follows:
Particulars Amount
Fixed cost
Rent (Per annum) 20000

Salaries 10000
Variable cost
Market research 10000
Advertisement, marketing and promotions 10000
Cost of material for coffee and mugs 10000
Total cost 20000
Revenue streams:
Particulars Amount
Sales through coffee shops 30000
Revenues from food ordering applications 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 30000
Contribution per unit = Sales – variable cost / total selling units
= 300000 – 30000 / 1000
= 270
BEP = 30000 /270
= 111.11 vacuum cleaners
Cash flow analysis: The cash flow analysis for first year is as follows:
Particulars Amount
Opening cash balance Nil
Cash receipts from sales 300000
Total 300000
Cash payments:
Rent 9000

Salary 10000
Market research 2000
Advertisement, marketing and promotions 2000
Cost of material for coffee and mugs 5000
Total B 28000
Closing balance (Total A - B) 272000
Sources of funds: There are numerous sources which can be used by the business in
order to accumulate funds. CEO of the business is involved in gathering of funds so that to deal
with coming complexities in effective way. Some of them are enlightened as under:
 Bank loan: For establishing business in effective manner the company is managing their
key people so that they can take bank loan in easy manner. Besides this with the help of
bank loan the company can execute their various plans in predefined manner which are
being propounded by level c executives.
 Using personal capital: The C level executives of the company may use their own
capital so that to manage business functions in effective way. Return on capital is the
amount which can be used by the business so that to examine their returns within new
business ideas.
Usage of funds: There are different aspects in which the company can use their gathered
funds so that to meet requirement of business. Some of these areas are listed below:
Usage of funds
Rent
Salaries
Market research
Advertisement, marketing and
promotions
Cost of material for coffee and

mugs