Entrepreneurship Development (CFO)

This document discusses the role of the Chief Financial Officer (CFO) in entrepreneurship development, focusing on the importance of financial planning. It also provides insights on the customer value proposition and lean business model canvas. The document explores the concept of creating something new to meet customer demands and includes a business idea for providing PCR testing services. It discusses the financial requirements and information needed to make informed decisions. The subject is Entrepreneurship Development (CFO) and the document type is a study material.

Entrepreneurship
Development (CFO)

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................2
Customer Value Proposition Canvas...........................................................................................2
Lean Business Model Canvas......................................................................................................4
Role of CFO.................................................................................................................................6
Financial and Financing Plan.......................................................................................................8
Summary......................................................................................................................................9
REFERENCES..............................................................................................................................10
Appendix 1.................................................................................................................................11
Appendix 2.................................................................................................................................11

INTRODUCTION
Business plan includes different elements and aspects that are needed for successfully or
effective carry out practices of the plan. The process of entrepreneurship is related to creating
something new in order to meet with the demand and requirement of customers. Entrepreneur are
the daring individual just as they generally come in market with something creative that can be
thought, however or item (Figueroa-Domecq and et.al., 2020). Thought process behind this is to
pick up long haul maintainability, creating high income and causing client to fulfil. This is an
exceptional capacity that encourages a person to build up a business opportunity for some
neglected need. Business visionary can be clarified by surrendering illustration of beginning
another business. This report is bases on business idea of developing or providing PCR testing
machine. This testing machine is significant for helping people in resolving issues of travelling
due to COVID 19. Through this business idea travellers are able to test as well as travel in
different places. This report consist of business ides as well as includes different models related.
It consist of Value proposition model as well as lean business model canvas. In this report
financial requirements and information has been analysed in order to take correct decision.
In respect to business idea of giving PCR testing administrations by putting the PCR
machine in less expensive letting territory and creating test assortment focuses, gives occasions
to such business to determine this issue and make individuals ready to get their COVID-19
testing. benefit is just basic thing to make endurance of business conceivable on the lookout. No
organization can stay serious until it isn't creating benefits. Benefits isn't just important only for
the endurance of the organization, yet in addition with the end goal of development and
extension of the undertaking later on. organization will stay at make back the initial investment
point, so that there is no benefit and no misfortune circumstance. This will assist the organization
with taking on tasks easily and furthermore won't go under fronts of misfortunes. Sales revenues
will be high because of the explanation that there is popularity of minimal effort test units on the
lookout (Sikorska-Wolak, Zawadka and Krzyżanowska, 2020). Organization ought to receive
the procedure of ease creation so that organization actually benefit the circumstance of make
1

back the initial investment position, where there is no benefits and no misfortune for the
organization. Profit of present business idea of ease test packs of COVID-19, net revenue will
stay 10%. The objective of the project is developed by considering the view point of Chief
Financial officer (CFO). The Chief Financial officer is significant maintaining and recording
financial data in more significant and successful manner. It is important that Chief Financial
Officer is successfully and effectively conducting practices in order to earn appropriate amount
of profits along with this using resources in correct manner. Chief financial officer is significant
for developing plan which provides guidance and direction to all employees for using financial
resources in significant manner. The major role of Chief financial officer is to maintain financial
resources in correct manner, optimum utilization of resources, developing strategies and
motivating employees.
MAIN BODY
Customer Value Proposition Canvas
This can be describe as the tool which is significant for ensuring the all products and
services is correctly positioned which is as per the need and requirement of customers. This
model was planned by Alexander Osterwalder. The primary motivation behind this scholar to
build up this model was to guarantee that offering is very much fit on the lookout and industry
(Terán-Yépez and et.al., 2020). Moreover, this model is definite furthermore, client incentive
canvas is point by point connection in two pieces of Osterwalder's more extensive Business
Model canvas: client sections and offer. It is a strategy or technique that gives help to the
administration of the organization to build up a general comprehension of what is really the need
and needs of clients. Through this apparatus, it tends to be guaranteed that organization is
serving in agreement of distinguished necessities and needs of clients. In basic term it is
determined that Value proposition Canvas can use when there is necessity of refining existing
items and administrations offering just as contributions of something new created without any
preparation.
2

Value Proposition
 Products and services – This includes the product or services that is offered to customer
in order to create gain as well as relieve pain (Islam and et.al., 2020). This is significant
for underpinning the creation of value for customers as well as help in successfully value
proposition as per the requirements of customers. The major products of respective
company individual testing, group and business testing, holiday pack with result delivery.
 Gain creators – This includes different aspects that determine how products or services
create customer gain as well as how it provide more value or add value to customer. This
product is significant for isolation travel. Through PCR machine traveller can test and fly.
This is helpful for saving time of traveller is help in travel easily in COVID 19 situation.
 Pain relievers – This consist of how products and services of company alleviates
customer pains. Pain reliever helps in determining different aspects that is related to
alleviation of customer pain (Canestrino and et.al., 2020). This consist of less time loss,
pre planned expenses as well as health. All of these are crucial aspects that helps in
providing more value to customers.
Customer profile
 Gains – This consist of different benefits that customer expects and needs for the
products offering of company. Gain includes different element that would delight
customers and other things which lead to increase the chances of adopting value
proposition. The gains of PCR machine products include no cancelled holiday of
customers as well as no business delays in business meeting or tour.
 Pains – This includes all negative experiences, emotions as well as risk which is faced by
customers doing the process of getting job done. Pains in customer profile consist of
worry free travel for business and families.
3

 Customer jobs - It includes various functional, social and emotional task which customer
are trying to perform, problems which they are trying to solve and needs to wish to
satisfy the customers. PCR machine products includes medical support, transportation
support along with help in growth of economy.
Lean Business Model Canvas
Lean canvas business model is significant model which promises actionable and
entrepreneur focuses business plan (Harrison, Leitch and McAdam, 2020). This is effective and
useful for determining different factors or elements that could affect over business as well as
help in successfully performing business practices. This model is similar to business model of
canvas as it will assist in taking better decision for increasing overall performance and
capabilities of business. it consist of different elements which needs to be consider by
organisation in order to successfully provide new product to market area. This helps in better
decision making as well as accomplishing objectives.
 Key partners – This can be describe as the list of external people, suppliers, companies or
parties that is needed by company is order to successfully or effectively performing
business practices (Penco and et.al., 2020). It is essential for PCR machine company to
have correct and accurate key partners that can support in successful or effective
functioning of the business plan. The key partners for respective company includes Luton
Airport, Gatwick Airport, Victoria Coach station London, Coach station Birmingham,
Dover Port and Eurotunnel. These key partners play crucial role in successful
implementation or execution of the plan as well as assist in effectively or effectively
conducting required set of practices.
 Key activities – This includes the major activities which needs to perform by business in
order to successfully or effectively conducting required set of practices. There are various
activities with in business that should be correctly performed as it will have direct or
indirect influence on goal accomplishment. The major activities that needs to be
performed by PCR machine company includes sample collection in key point, transport,
processing, deliver results. Apart from this, other activity of business includes create
clusters of clients, deals as well as partnership. These key activities of respective
company will support in successfully performing required practices.
4

 Value proposition – This can be describe as the foundation of any business or products. it
is very important that respective company have strong and effective value proposition
that is able to provide high quality products and services to customers. This is the
fundamental concept which consists of exchange of values between business as well as
clients (Baporikar, 2020). Respective company value proposition includes ‘Your worry
free travel with cheap, reliable testing’. Through this organisation is able to provide better
PCR machine which is affordable as well as based on reliable testing. This will help in
providing information to client regarding Corona.
 Customers relationships – It is very important for company to develop strong and
effective relationship with customers as it assist in enhancing sales and profitability of
business. Customers are very valuable part of business that affect over growth and
development of business. Customer relationship includes different approaches or
techniques which are consider by organisation in order to interact with customers or
provide organisational services (Duarte Alonso, Kok and O’Brien, 2020). respective
company customers relationship includes providing information and awareness to
frequent traveller, business travellers and other people. Customer relationship is very
important in order to enhance overall sales and performance of business. Through strong
relationship respective company is able to enhance the loyalty of customers towards
business.
 Customer segments – This can be describe as the practice of business for dividing
customer base into small parts according to their needs and requirements. Customer
segmentation is very important as it helps company in successfully providing products or
services to customers along with increasing sales. Customer segments of PCR machine
include business professional traveller, holiday travellers as well as emergency traveller.
This is very important for company to divide large customer bases into small segments as
through this organisation is able to attract customers along with this increase sale of
business.
 Key resources – There are different resources and material required by company in order
to effectively and successfully conducts required business practices. It is essential for
organisation to determine key resources that is needed by company to perform business
activities as well as develop PCR machines significantly. Key resources which is needed
5

provide respective company services in correct and accurate manner includes PCR
machines, sample collection mobile facilitate and collection or PCR operation staff. This
is needed to correctly or accurately conduct required set of practices as well as attain
desired goals.
 Channels – This refers to the way through which company is providing its products and
services to customers (Lin and et.al., 2020). There are different channels through which
respective company can offer PCR services to customers in order to meet with the
requirement of customers. Channels which are consider by respective company includes
social media channel such as Facebook, Instgram and other websites in order to
communicate services and offerings to potential customers. Holiday booking company,
B2B channels as well as POI Airport, coach, station ports can be consider as effective
channels for providing services to customers as well as successfully meet with the
requirements of customers.
 Cost structure – It is essential for company to determine the cost structure that is needed
by company to effective carry out required set of practices. Cost structure will includes
information about the cost required by business to provide services to customers. Cost
structure of respective company includes cost needs for human resources and technology
processing in operation. It also includes cost of PCR machines and transport of samples
included (Mafukata, 2020). Respective company will need cost of targeted ads and joint
partnership marketing campaigns. All of these are necessary or essential cost which will
directly affect the functioning or performance of business.
 Revenue streams – Revenues is very essential part of business and its is important that
company is earning significant amount of revenues in order to attain desired goals and
objectives. The major revenue streams of business include cash, prepaid online electronic
payment, business pack with check or bank transfer. All of these effective sources of
revenues which is significant for providing support or assistance to company for earning
more and more profits.
Role of CFO
Chief financial officer is very crucial part of business as it play very important role for
successfully or effectively conducting business practices. Chief financial office of respective
company has to play various roles and responsibility to conduct organisational task in significant
6

manner. It is important that it is performing all roles in correct or accurate manner with the
motive of successfully developing or implementing business plan. The major role of CFO in
business plan of PCR machines is mention below in detail.
 Developing strategies – This is one of the main role of Chief financial officer is to
develop effective strategies that is help in providing successfully for effectively
conducting business plan. The primary function of the CFO is to be a planner to the CEO
(Saleem and SHALINILAWRENCE, 2020). The conventional meaning of
accomplishment for a CFO was announcing the numbers, dealing with the monetary
capacity, and being responsive to situations as they develop. In any case, in the present
relentless business climate, creating monetary reports and data is not, at this point
enough. In this business plan Chief financial officer is developing strategies by analysing
different factors and elements. Through this respective company is able to successfully
implement the business plan and attain desired goals.
 Leadership – The second part of the CFO inseparably with the first. That is one of a
pioneer actualizing the techniques of the organization. Chief financial officer play crucial
role of providing guidance and direction for successfully for effectively conducting
business plan activities. Thus, it is not at this point adequate for a CFO to sit back and
examine the exertion of others. The Chief financial officer of today’s modern time should
take responsibility for monetary after effects of both the association and senior
supervisory crew (Duening, Hisrich and Lechter, 2020). The CFO of today should be
liable for giving initiative to other senior supervisory crew individuals, including the
Chief financial officer. The CFO's job can some of the time drive them to settle on the
extreme decisions that others in the association don't or can't make. Sometimes, this can
mean the distinction among progress and disappointment. Through leadership role of
Chief financial officer all activities and practices of business plan can be timely and
successfully performed that will lead to significantly help in enhancing overall
performance of respective company.
 Leading team – The third part of the CFO is that of a group chief to different
representatives both inside and outside of the monetary capacity. Chief financial officer
of respective company have to perform the role of leading team along with providing
guidance and direction to correctly perform business objectives. Not exclusively will a
7

mentor call plays for a group, however they are additionally answerable for getting the
most noteworthy outcomes out of the ability in their group. A successful or aspiring
coach will deliver effective outcomes by finding the qualities of their colleagues and
acquiring a more elevated level of execution than the people may accomplish all alone.
The part of the Chief Financial Officer is to unite a different gathering of capable people
to accomplish predominant monetary execution. This role of Chief financial officer is
significant for correctly managing the team along with this boosting the moral of
employees for successfully conducting business practice.
 Managing third parties – It is important for organisation to manage third parties
correctly and significantly as this will help in taking better decision for business plan. It is
role of Chief financial officer to manage their parties as this helps in creating business
plan along with these attaining desired goals. The function of the CFO is that of a
representative to outsiders. Individuals outside of the organization look to senior
supervisory crew for motivation and trust in the organization's capacity to perform. In
pretty much every case the monetary suitability of the organization is vouched for by the
Chief financial officer (Redford, 2020). The CFO's job turns into that of the "face" of the
organization's supportability to clients, sellers and financiers. Frequently these outsiders
seek the CFO for the unvarnished truth with respect to the monetary practicality of the
organization to convey on it's image guarantee. This is consider as very important role of
Chief financial officer as it will lead to have direct impact on successfully developing
plan and implementing all task of business plan in significant manner.
Financial and Financing Plan
It is essential for organisation to determine and analyse the proper financial aspects as it
will lead to have direct impact over decision as well as help in successfully implementing
business idea. As per the financial information it has been determined that Fixed cost for 1 year
is 61100 and 2nd year is 80250. Through this it has been determined that overall fixed cost has
been increases in one year (Орлова-Курилова and et.al., 2020). As per the revenues streams for
the three years data total revenues of week as well as total yearly revenues has been analysed
and determined. Through this it has been determined that 1st year total yearly revenues is 537600
and for 2nd and 3rd year includes 672000 and 806400 respectively. BEP contribution for 1st year is
8

5025 Units, 2nd year includes 4187.5 units and 3rd year is 4187.5 Units. Closing balance for 1st
year is 476500, 2nd year is 1068250 and 3rd year is 1783000. Through balance sheet it has been
determined that total current asset is $26,220.00 and total shareholder’s equity is $45,200.
Summary
From the above report it has been determined that there are number of elements and aspects
that needs to be consider by organisation in order to develop new business. In relation to the
respective business idea of giving less expensive test packs, organization is intending to assume
the account of 3:2 proportion. This implies that 60% of asset will be masterminded from outside
sources, for example, point speculators and staying 40% is organized from individual sources or
investment funds. The fundamental motivation to secure assets from angle investors as this is
significant for the providing loan and it is lot simpler than those of different money lenders such
as through market or bank.
9

REFERENCES
Books and Journals
Figueroa-Domecq, C. and et.al., 2020. Gender, tourism & entrepreneurship: A critical
review. Annals of Tourism Research, 84, p.102980.
Sikorska-Wolak, I., Zawadka, J. and Krzyżanowska, K., 2020. The investment
attractiveness of regions as one of entrepreneurship development factors. Economic and
Regional Studies/Studia Ekonomiczne i Regionalne, 13(2), pp.170-183.
Terán-Yépez, E. and et.al., 2020. Sustainable entrepreneurship: Review of its evolution
and new trends. Journal of Cleaner Production, 252, p.119742.
Islam, M.A. and et.al., 2020. Diagnostic SWOT appraisal of the wicker handicraft
entrepreneurship development in Kashmir, India. Journal of Applied and Natural Science,
pp.193-201.
Canestrino, R. and et.al., 2020. Understanding social entrepreneurship: A cultural
perspective in business research. Journal of Business Research, 110, pp.132-143.
Harrison, R.T., Leitch, C.M. and McAdam, M., 2020. Woman’s entrepreneurship as a
gendered niche: the implications for regional development policy. Journal of Economic
Geography.
Penco, L. and et.al., 2020. Knowledge-based urban environments and entrepreneurship:
Inside EU cities. Cities, 96, p.102443.
Baporikar, N. ed., 2020. Handbook of Research on Entrepreneurship Development and
Opportunities in Circular Economy. IGI Global.
Duarte Alonso, A., Kok, S. and O’Brien, S., 2020. ‘Profit is not a dirty word’: Social
entrepreneurship and community development. Journal of Social Entrepreneurship, 11(2),
pp.111-133.
Lin, S. and et.al., 2020. Regional determinants of poverty alleviation through
entrepreneurship in China. Entrepreneurship & Regional Development, 32(1-2), pp.41-62.
Mafukata, M.A., 2020. Adoption of Microfinance in Entrepreneurship Development
Amongst Rural Women in Vhembe District. In African Perspectives on Reshaping Rural
Development (pp. 193-215). IGI Global.
Saleem, S. and SHALINILAWRENCE, M., 2020. Performance Evaluation of
Entrepreneurship Development Schemes of National Handicapped and Finance Development
Corporation. Available at SSRN 3545796.
Duening, T.N., Hisrich, R.A. and Lechter, M.A., 2020. Technology Entrepreneurship:
Taking Innovation to the Marketplace. Academic Press.
Redford, A., 2020. Property rights, entrepreneurship, and economic development. The
Review of Austrian Economics, 33(1), pp.139-161.
Орлова-Курилова, О.В. and et.al., 2020. Analysis of the State of Innovative
Entrepreneurship Development in Ukraine.
10

Appendix 1
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
11

Licensing charges 400 250
Insurance cost 1200 1200
Raw material 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 tests
orders per day
Price per order Total revenue of
week
Total yearly
revenue (48
weeks)
1st year 300 100 30000 1440000
2nd year 250 100 25000 1200000
3rd year 200 100 20000 960000
Assumptions:
 The number of tests order per day has been assumed.
 Number of weeks in a year is also assumed.
 Sales price
Appendix 3
BEP: Fixed cost/contribution per unit
Contribution per unit: Sales price-variable cost per unit
= 100-80
= 20
1st year: 20100/20
12

= 1005 Units
2nd year: 16750/20
= 83.75 Units
3rd year: 16750/20
= 837.5 Units
Cash flow analysis table
1st year 2nd year 3rd year
No. Sales 67200 84000 100800
Selling price £100
Sales revenue 6720000 8400000 100800
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
13

Insurance cost 1200 1200 1200
Raw material 35000 55000 65000
Packaging cost 4500 6000 6800
Labour charges 1000 1800 2200
Other costs 500 700 900
Cash balance 476500 591750 714750
Opening balance 0 476500 1068250
Closing balance 476500 1068250 1783000
14

Balance Sheet
As at end of Year One
Current Assets
Cash 5100
Debtors 18000
Stock 3120
Total Current Assets 26220
Non-current Assets
Computer 5500
Store Fit Out 8100
Office Equipment 15000
Total Non-current Assets 28600
Total Assets 54820
Current Liabilities
Credit Card 5500
Creditors 4120
Total Current
Liabilities
9620
Non-current Liabilities
Total Non-current Liabilities
Total Liabilities 9620
Net Assets 45200
Shareholders’ Equity
Owners’ Funds 40000
Current Year Profit 5200
Total Shareholders' 45200
15

Equity
16

Month
Pre
-
Sta
rt
mon
th 1
mo
nth
2
mo
nth
3
mo
nth
4
mo
nth
5
mo
nth
6
mo
nth
7
mo
nth
8
mo
nth
9
mo
nth
10
mon
th
11
mon
th
12
Tota
l
INCOME
Cash Sales
1,50
0.00
1,6
72.
50
1,86
4.84
2,07
9.29
2,3
18.
41
2,5
85.
03
2,88
2.31
3,2
13.
77
3,58
3.36
3,99
5.44
4,45
4.92
4,96
7.24
35,11
7.11
Credit Sales
750.
00
836
.25
932.
42
1,03
9.65
1,1
59.
21
1,2
92.
52
1,44
1.15
1,6
06.
89
1,79
1.68
1,99
7.72
2,22
7.46
2,48
3.62
17,55
8.56
Business Loans
10,0
00.0
0
10,00
0.00
Income from
other sources
1,20
0.00
1,3
38.
00
1,49
1.87
1,66
3.44
1,8
54.
73
2,0
68.
02
2,30
5.85
2,5
71.
02
2,86
6.69
3,19
6.36
3,56
3.94
3,97
3.79
28,09
3.69
Opening
balance 0.00 0.00
0.00
Total
£13,
450.
00
£3,
846
.75
£4,2
89.1
3
£4,7
82.3
8
£5,
332
.35
£5,
945
.57
£6,6
29.3
1
£7,
391
.68
£8,2
41.7
2
£9,1
89.5
2
£10,
246.
32
£11,
424.
64
£90,7
69.36
17

Cash Purchases
1,10
0.00
1,2
26.
50
1,36
7.55
1,52
4.82
1,7
00.
17
1,8
95.
69
2,11
3.69
2,3
56.
77
2,62
7.80
2,92
9.99
3,26
6.94
3,64
2.64
25,75
2.55
Stock
350.
00
390
.25
435.
13
485.
17
540
.96
603
.17
672.
54
749
.88
836.
12
932.
27
1,03
9.48
1,15
9.02
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)
5,70
0.00
10,0
00.0
0
15,70
0.00
Total
£8,1
00.0
0
£2,
589
.75
£2,8
01.3
2
£3,0
87.2
2
£3,
350
.25
£3,
703
.53
£14,
030.
54
£4,
405
.15
£4,8
21.6
9
£5,2
84.9
9
£5,8
00.4
1
£6,3
63.9
6
£64,3
38.83
Surplus/Deficit
£0.
00
£5,3
50.0
0
£1,
257
.00
£1,4
87.8
1
£1,6
95.1
5
£1,
982
.10
£2,
242
.04
-
£7,4
01.2
3
£2,
986
.53
£3,4
20.0
3
£3,9
04.5
3
£4,4
45.9
0
£5,0
60.6
8
£26,4
30.54
Balance @
Start
£0.
00
£0.0
0
£5,
350
.00
£6,6
07.0
0
£8,0
94.8
1
£9,
789
.96
£11
,77
2.0
£14,
014.
09
£6,
612
.86
£9,5
99.3
9
£13,
019.
42
£16,
923.
95
£21,
369.
85
18

5
Balance @
End
£0.
00
£5,3
50.0
0
£6,
607
.00
£8,0
94.8
1
£9,7
89.9
6
£11
,77
2.0
5
£14
,01
4.0
9
£6,6
12.8
6
£9,
599
.39
£13,
019.
42
£16,
923.
95
£21,
369.
85
£26,
430.
54
19