Entrepreneurship Development CFO point of view

This report discusses the development of entrepreneurship from a CFO's point of view. It covers topics such as lean start-ups, value capture, and future developments. The report also provides insights into the business model and financial roadmap for success in the industry.

Entrepreneurship
Development CFO point
of view

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
Introduction to lean start up.....................................................................................................................3
Value capture Lean business model canvas.............................................................................................6
Development plan..................................................................................................................................10
Possible future developments................................................................................................................11
Summary...............................................................................................................................................11
CONCLUSION.............................................................................................................................................12
REFERENCES..............................................................................................................................................13
APPENDIX 1...............................................................................................................................................15

INTRODUCTION
Entrepreneurship development can be described as the process of identifying an idea,
studying how to grow it, and turning it into a business venture. An entrepreneur, who is an
individual who plans to take chances in order to create a business that can tackle societal
problems, plays a significant role in the process. Entrepreneurship development is the method of
coming up with a new business concept and launching a company based on it. It is important for
businesses to be able to put in new goods and services in order to succeed in the industry (Wang
and et.al, 2020). This is useful for building an enterprise that can help them achieve their lengthy
objectives. To understand concept of entrepreneurship development, a new business idea will be
discussed in this report, which is Eat a rainbow service that delivers vegetarian and vegan meal
boxes with organic ingredients to home making it easy to cook every day fresh and healthy
lunches and dinners. This paper has many parts, including a brief description to the new product,
as well as a consumer value proposition canvas and a lean business model canvas. It will also
take into account contributions made by C-level specialists. Furthermore, the future development
strategy and reasoning for investing in entrepreneurship opportunities are addressed.
MAIN BODY
Introduction to lean start up
The new business idea of Eat a rainbow it is a service that delivers vegetarian and vegan
meal boxes with organic ingredients to home making it easy to cook every day fresh and healthy
lunches and dinners. They offer a range of weekly recipes plans made by best chefs or a
professional nutritionist can book a consultation to build personal plan based on needs: lose
weight, gain weight, allergies, food intolerance. This app is helping to those people who want to
eat vegetarian food with good taste. This app is launching in London, United Kingdom where are
visiting different types of tourists who wants to taste vegetarian food. The main purpose of this
app offer a variety of vegetarian and vegan ready to cook meals. This app mainly target to
vegetarian and health conscious people (Horst and Murschetz, 2019). The slogan of the app is
"Health is the real wealth that will keep happy throughout your life”. As per the project's CFO,
prepare a report analysing the company priorities. The consumer value proposition canvas and
the minimum viable commodity are then accompanied by value generation. The article would
then have a meaning capture attached to it. In this regard, a financial roadmap for further growth

will be estimated and assessed in order to have a clearer perspective of the start-up sector.
Eventually, the proposal will be evaluated critically and a review will be presented.
Business objective: The CEO of the app has set the following goals for the next three years: •
efficiently develop a company within the industry, and also generate strong revenue.
• Attract a huge number of customers in order to produce a large amount of sales.
• A 2% increase in earnings per year, allowing high funds to be structured and operational
operations to be undertaken in the future.
The first year's sales are expected to be around 2000 units, with a growth of 10% a year expected
in subsequent years. The so here are the benefit and revenue calculations over the last three
years:
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 %
The revenues for the first three years were 60,000, 66,000, and 72,600, respectively, as seen in
the table above. Furthermore, the costs are $20,000, $22,000, and $24,000, respectively. Eat a
Rainbow's expected earnings in the first year would be about 40,000, 44,000 in the second year,
and 48,400 in the last. From the profit margin listed, it is almost comparable since the increase in
revenue is equivalent for the same time period. As a result, the net operating margin would be
about 66.67 percent (Fernandez-Guadaño, Lopez-Millan and Sarria-Pedroza, 2020).

Value creation: Any business organization's primary aim is to create profit. In this step, profit
is created by "adding value to both the market and the entrepreneur." As a result, creating
demand for customer’s aids in the selling of products and services, thus creating value for
lenders ensures future development and the supply of capital to fund ongoing development. A
viable product, on the other hand, can be launched to the market as a prototype and just enough
features to be used against early customers, which can then provide feedback for the
advancement of future recopies. There exist wide range of elements within this model and they
are specified below in context of Eat a Rainbow App. They are as:
To begin, the gain developers demonstrate how the products and services deliver price lists.
As an outcome, it explains how, among other things, strategic utility, societal changes, optimistic
feelings, and cost reduction, it may be the ideal strategy for delivering the outcomes and rewards
that customers demand and desire. As a result, the commodity is the most important component
of a profitable start-up business concept in order to have outstanding customer support. As a
result, consumers will have the opportunity comes to ordering their favorite vegetarian foods,
which they can do alone or with friends or relatives (Morales and et.al, 2021). Any customer
receives a recipe book with clear instructions for how to use the product in order to prevent any
unfavorable outcomes. Going to continue, one of the most amazing features of this meal is that it
can be healthy for everyone and can be ordered from their favorite restaurants, allowing them to
enjoy special events.

Value capture Lean business model canvas
The business model is the concept for creating, providing, and extracting value for an
enterprise using an initial network to link resources and process the organization's vendors. The
authors' theory is based on a coherent expression of statistics and other evidence that confirms a
consumer's value proposition in order to deliver that product and create a positive competitive
advantage. In this regard, the business model canvas tool was created, which has nine
dimensions and covers the three conceptual roots of the business model's context (Filser and
et.al, 2019). This includes value generation, which requires key stakeholders, key events, and
essential characteristics; value delivery, that involves networks, market partnerships, and
targeted customers; and value capture, which includes sales structure and cost structure. As a
result, when creating the business model canvas, it was important to consider a simple and
relevant definition. In order to state in depth all three variables across the three logical pillars of
the definition of the business model, the business model canvas is evidenced following,
constructed specifically for the Eat a Rainbow start-up business idea (Urbano, Aparicio and
Audretsch, 2019).
A business canvas model that is being developed for Digital Detox App is illustrated beneath:
Key partners
 Vegetable
farmers
 Food
education
academies
 Supplier
of kitchen
tool
 Delivery
company
Key activities
 Consultati
on
analysis
 Post
delivery
services
 Building
brand
marketing
 Formation
Value
proposition
 Online
consultati
on system
and
instant
analysis
on
requireme
nts and
Customer
relationships
 Loyalty
discount
 Monthly
subscripti
on
discount
 Pre and
post
support
Customer
segment
 People
who are
on
vegetarian
& vegan
diet
 People
who want
to change

 Dieticians
and
nutritionis
ts
 Advertisin
g agencies
 Suggestio
n
body need
of
customer.
 Instant
formation
of meals
plan
charts
through
profession
als.
 Innovation
and
motivation
to keep up
with
chosen
lifestyle
consultati
on
services,
continues
analysis of
customer
requireme
nt and
instant
service as
needed.

their
lifestyle
 People
with
special
requireme
nts (loose
weight,
allergies,
food
intoleranc
e)
 Busy
people
who wants
to save
time
- People
concerned
about food
wastage
Key resources
 Ingredient
s
 Food
consultant
s
 Location
 Mobile
app
 Websites
 Kitchen
staff
 Equipmen
t
Channels
 Online
blogs
 Eat a
rainbow
Mobile
App
 Online
website
 Delivery
systemadv
ertisement
campaign
Cost structure
 Location rentage cost
 Business taxes and fees
 Equipment
Revenue stream
 Income from online promotions
 Sales via app store and website
 Sales of products and services

 Training stuff courses
 Salaries
 Dieticians contracted costs
 Delivery costs
 Utilities
 Marketing
 Raw materials
 On page advertisement
These elements are specified beneath:
Key partners: It is critical for a company putting in an Eat a Rainbow App to build partnerships
or relationships with their main stakeholders in order to perform organizational activities. There
are a variety of internal and external parries that are considered corporate partners or partners.
Eat a Rainbow is a vegan food app that offers nutritious options. It would be helpful to spread in
and also execute all operations in a coordinated manner with their help (Ebrahimi, Ahmadi,
Gholampour and Alipour, 2019).
Key activities: They refer to a series of tasks and other procedures performed by a company.
Since Eat a Rainbow would introduce a new creative app to the marketplace, it is critical for
executives to recognize main tasks that must be completed. They include social media, internet
advertisements, and a variety of other elements. With their support, the company will be able to
achieve its priorities and targets for the app's introduction.
Key resources: It is critical for the successful implementation of routine operations that the
corporate enterprise be able to secure the necessary funding to operate its services. Eat a rainbow
App needs transportation, construction, and machinery, among other things. In addition, they
include human capital such as trends and labels, databases, and a variety of other things. After
acquiring all of these properties, the firm's managers will be able to carry out their activities to
the optimum consistency and in a coordinated manner.
Value preposition: Many of the goods or services that a company sells in order to satisfy the
expectations of its clients are considered major components that are responsible for generating

value for them. The value proposition factors for the Eat a Rainbow App are promoting real-life
socialization among individuals with positive results and increasing the number of vegan food
consumers throughout the day. When they can satisfy the needs of their users, they will be able
to entice more consumers to be using their app and develop it on a wider scale (Cooke and Xiao,
2021).
Customer relationship: Businesses must have stronger relationships with their clients in order
to survive and thrive in the industry. Eat a Rainbow App will build relationships with their
customers with the help of a creative Eat a Rainbow App model that can help them avoid
depression and help the company create a positive reputation in the industry.
Channels: A company's value proposition will be established by assisting them in providing
appropriate products to their clients. Eat a Rainbow App should place a strong emphasis on the
android market, where potential users can access the app. They must maintain that social media
marketing promotions are taken out and that appropriate choices are given on their platform to
facilitate them with having an app in order to attract the greatest number of users. This would
help them increase the number of people who buy their app. The CEO has chosen to use a
variety of different methods to spread the word regarding their Eat a Rainbow app. This can be
accomplished by using online networks such as Instagram, Facebook, and Twitter. This will
assist them in raising general consciousness of the creativity they are putting in (Cervelló-Royo
and et.al, 2020).
Customer segments: This refers to a consumer niche that a company is targeting in order to
increase software revenue. Users aged 18 and over, as well as those on a vegetarian or vegan
diet, are likely consumers of the Eat a Rainbow App. People who wish to improve their way of
life, as well as those with learning disabilities (lose weight, allergies, and food intolerance),
Users who are in a hurry and want to save time, as well as others who are worried about food
waste
Food Structure: All of the charges that a company incurs are considered part of the cost structure.
These expenses would be incurred by Eat a Rainbow as they create their proposal, as well as
their promotions, leasing, wages, infrastructure costs, and advertising, among other things.

Revenue Streams: It is essential for corporate organizations to produce large profits from which
funds can be collected to perform the activities in a structured manner in order to conduct
business in a structured manner. Selling of the meals through various online outlets such as the
play store, websites, and others are some of the ways Eat a Rainbow App can raise money
(Wahyudi and et.al, 2020).
Development plan
As the project's CFO (Chief Financial Officer), they must prepare a financial document to
examine and quantify the projections for the first three years of service, net sales, and benefit.
Benefit margin calculations and business model would be performed in this context. Following
that, a breakeven point will be determined and a cash flow comparison table will be thoroughly
examined. At last, a table of campaign costs and strategies would be analyzed.
A financial plan is a study that details an individual's or company's current financial
position, as well as lengthy financial targets and strategies for achieving them. A financial plan
can be created on your own or with the assistance of a licensed financial planner in either
situation. Currently, the financial plan's clarification of expenses in appendices 1 starts with the
estimates for the first three years of the company. These expectations are carefully measured in
order to determine if the start-up will be viable (Ndou, Mele and Del Vecchio, 2019).
Appendix 1 shows that in order to stay afloat in the industry, a company must recognise
various expenses. This covers staff wages, equipment costs, leasing, and a variety of other
factors. There are a variety of sales sources from which the Eat a Rainbow app will benefit.
There are purchases that exist with the help of an online store and a website in order to generate
money from meal sales. The total loss for the first year is predicted to be 20,000 dollars, with
revenue of about 60,000 dollars. For the first year, a profit of about 40,000 was made. On the
first year, the BEP is 596.49 units. If the company sells 596 meals in the first year, the costs will
be compensated, and all the risks of losses must be ignored. The cash flow review is expected to
show total revenue of 60,000 for the first year, as well as an ending balance of 40,000 for
revenue in the first year. There are a variety of funding options available to the CEO of Eat a
Rainbow app for the aim of provide vegetarian food on the market. Owners' personal money,
bank loans, and a variety of other outlets are among them. Market analysis, compensation, rent,

publicity, infrastructure costs, advertising, marketing, and other facets are all examples of
funding that a company will require from various sources.
Possible future developments
Any entrepreneur faces an overriding problem when it comes to making a profitable
product: deciding "when to change and when to persist." Anything addressed so far in this study
represents a lean start-up of a potentially profitable company that must demonstrate adequate
advancement to conclude that the initial plan was fundamentally right, resulting in a significant
shift in the food industry. Even so, owing to the theoretical approach that underpins the Lean
Startup, there is often a misunderstanding that it has "a fixed therapeutic recipe" for creating
pivotal or persistent judgments. The goal of pursuing a scientific approach to entrepreneurship
growth is to harness the most powerful component of additional creativity, and nothing destroys
artistic ability more than a foolish attempt to keep going (Capella-Peris and et.al, 2020).
In this scenario, the Eat a Rainbow app will be reviewed every year, based on the
worker's decision as well as both user ratings and feedbacks, including the potential to see fresh
ideas and be innovative when providing nutritious meals to customers. As a result of its
integration of the food industry and live events for interior and exterior workouts, this start-up
could be able to outperform the market.
Summary
The business opportunity related to the introduction of the Eat a Rainbow app is enticing,
and consumers would be willing to put money into it. This company's approach is creative and
original, which will entice a large number of consumers to use their services while also allowing
them to expand their market share (Webb, Khoury and Hitt, 2020). Investing in the Eat a
Rainbow app is a lean market opportunity because it is a novel idea to detoxify users who want
to eat vegetarian foods and like to eat different types of vegan recipe, and would differentiate to
provide different health conscious items to gym people. They would be able to achieve better
yields on their portfolios with the help of partners in order to make massive returns. The main
explanation for this is that by investing appropriately in this development, they will be able to
gain a comparative advantage in the competition thanks to their innovative model.

CONCLUSION
From the above, it can be inferred that entrepreneurship growth refers to the method of
creating an innovative business concept and establishing it in the marketplace. There are several
defining characteristics and structures that are developed by firms when implementing market
ideas. Worth concept and canvas styles are among them. They will recognize main facets of the
firm with the help of both different stakeholders. This necessitates the creation of adequate
strategic as well as economic decisions that have been addressed, including income stream, cost
structure, and several other factors.

REFERENCES
Books and Journal
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(JMME). 1(1). pp.1-26.
Fernandez-Guadaño, J., Lopez-Millan, M. and Sarria-Pedroza, J., 2020. Cooperative
entrepreneurship model for sustainable development. Sustainability. 12(13). p.5462.
Morales, A. and et.al, 2021. Hybrid forms of business: Understanding the development of
indigenous social entrepreneurship practices. Journal of Business Research. 124. pp.212-
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black box. Sustainability. 11(16). p.4503.
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Economics. 53(1). pp.21-49.
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APPENDIX 1
Cost structure: The cost structure for Digital Detox app 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

Cash flow analysis: The cash flow analysis for first year is as follows:
Particulars Amount
Opening cash balance Nil
Cash receipts from sales 60000
Total 60000
Cash payments:
Rent 8000
Salary 9000
Market research 1000
Advertisement, marketing and promotions 1000
Cost of material of equipment 1000
Total B 20000
Closing balance (Total A - B) 40000