Entrepreneurship Development

Entrepreneurship
Development

Table of Contents
Introduction.................................................................................................................................................2
MAIN BODY.................................................................................................................................................2
Introduction.............................................................................................................................................2
Customer Value Proposition Canvas........................................................................................................3
Lean Business Model Canvas...................................................................................................................5
C level specialist contribution..................................................................................................................8
Financial and financing plan..................................................................................................................10
Summary...............................................................................................................................................11
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12
APPENDIX 1...............................................................................................................................................13
APPENDIX 2...............................................................................................................................................14

Introduction
The process of development of unique business idea as well as establishment of business in
accordance to that is referred to as entrepreneurship development. For attaining success within
the market, it is crucial for firms to ensure that they can bring in innovative products or services
(Ansoff and et.al., 2018). This is valuable for developing a business which will assist them to
attain their long term business goals. To understand concept of entrepreneurship development, a
new business idea will be discussed in this report, which is a Digital Detox App which will
enable individuals from detoxing themselves from their digital devices for certain interval of
time. This report comprises of distinct elements, they are brief introduction of new product along
with customer value proposition canvas and lean business model canvas. Furthermore, it will
also address contributions that are made by C level specialist. In addition to this, financial as well
as financial plan and rationale for making investments within entrepreneurial opportunities are
also discussed.
MAIN BODY
Introduction
The new business idea of Digital Detox App will restrict individuals to minimize usage of
screens of smart devices. People are addicted to smartphones, computers and tablets which is
being fueled by FOMO (fear of missing out). For some it is easy to give up their devices but
some may find it difficult as well as may lead to anxiety (Gamble, Peteraf and Thompson, 2014).
For this, new idea was proposed Digital Detox App which will aid them within reduction of
screen addiction for those individuals who cannot do that by themselves and require assistance
for the same. Digital Detox implies period of time during which people are refrained from
making use of electronic devices. The cost of new idea for firm will cost around 10 pounds and
selling price at which this will be provided to other individuals is 30 pounds as it will furnish
them with uniqueness. The objectives for this in upcoming three years that are being formulated
by CEO of app:
 Establishment of business within market effectively as well as generation of high sales.
 Captivate large numbers of consumers by which high revenue can be generated.
 Enhancement within profits by 2% each year by which high funds can be arranged by
which operational activities can be conducted in future.

The approximate sales for initial year is 2000 unit as well as it is estimated that in
upcoming years 10% per annum will be increased. The computations of profit along with sales
for three years have been illustrated below:
Particulars 1st year 2nd year 3rd year
Units sold 2000 2200 ( 2000 + 10 % ) 2420 ( 2200 + 10 % )
Sales ( 30 Per unit ) 60000 66000 72600
Less: cost ( 10 per
unit )
20000 22000 24200
Profit: 40000 44000 48400
Profit margin:
Profit / sales * 100
40000 / 60000 *100 44000 / 66000 * 100 48400 / 72600 * 100
66.67 % 66.67 % 66.67 %
The table illustrated above demonstrates sales for initial three years and it is 60,000,
66,000 and 72,600 correspondingly. Furthermore, cost associated with this is 20000, 22000 and
24200 respectively. The anticipated profits by Digital Detox App will be near about 40,000 in
initial year, for second year it will be 44,000 and 48,400 in third. From profit margin mentioned,
it is almost identical as enhancement within sales is similar for equal time frame. Thus, the
overall profit percentage margin will be near about 66.67%.
Customer Value Proposition Canvas.
The tool which is being utilized by firms for analyzing association among key elements of
products as well as necessities of customers is referred to as value proposition canvas. Through
its assistance, business entities have to ensure that application designed by them is able to
accomplish all the wants as well as requirements of their targeted clients (Gamble, Peteraf and
Thompson, 2014). There exist wide range of elements within this model and they are specified
below in context of Digital Detox App. They are as:

 Product: The three major components of this model are features, experience and benefit.
There exist various benefits of Digital Detox App as it provides distinct settings option
that enables to control internet usage, minimize users online presence, render them with
balanced device usage and will also lead them to decline within stress as well as
emphasize on communication with others (Ginter, Duncan and Swayne, 2018). It will
give individuals a warm experience and a time for themselves. Basically, within this
focus is laid on digital wellbeing of individuals, emphasize on lock tool and screen time
function. It will enable them to make sure that services or products provided to customers
are positioned in such a way that they are able to accomplish their needs.
 Customers: There exist three crucial elements with respect to this element as in this
aspect of value proposition canvas that involves fears, wants and needs. Through the
assistance of this application, Digital Detox can accomplish requirements of their
probable customers. It will aid individuals to get detox from their smart devices. But
there is a fear to customers as cost involved within is high and whether it will be able to
provide the enhanced features. It will enable them to emphasize on real-life social
communications without any kind of distractions (Hill, Jones and Schilling, 2014). This
enables people to eradicate negative impact on their mental health as well as physical
health as lots of pressure is created on eyes and mind when smart devices (phone,
computers or tablets) are used. In addition, there will be a gradual enhancement within
academic performance that will lead to have satisfaction.
The model for Digital Detox app that is being formulated by CEO is illustrated beneath:

Illustrat
ion 1 Customer Value Proposition Canvas
Lean Business Model Canvas
The strategic management tool which is utilized by organization for maintaining brief data
related with their business concept is referred to as business model canvas. This is a kind of
document that is liable for covering information associated with distinct items that are associated
with implementation of business activities. There exist nine distinct elements that are being
enclosed within this and are utilized by business entities (Hill, 2017). They imply resources, key
partners, value proposition, customer segment, channels, revenue stream, activities, cost structure
and customer relationship. As a Digital Detox App will be brought that is an innovative idea to
restrict people from making use of their smart devices. For this, it is essential for management of
firm to develop a canvas model through which they will able to analyse crucial aspects related
with app, major resources and other mandatory aspects. With the assistance of stakeholders like
suppliers, customers, creditors and investors they will be able to identify key elements associated
with application. These elements are specified beneath:
 Key partners: For the purpose of conducting operational tasks, it is essential for firm who
is bringing in Digital Detox App to develop connections or relations with their key
partners. There exist wide range of internal along with external parries that are regarded
as associates or partner of business (Hitt and Duane Ireland, 2017). For Digital Detox

App, they are agile digital solution, government business funding, IOS, Android and
Windows store. Furthermore, brainstorming can be done with respect to Standford Lab
for mental health innovation as well as vibrant, etc. Through their assistance, it will be
easy for bringing in as well as implementing all activities in organized way.
 Key activities: They imply set of activities and other operations that are carried out by a
firm. As Digital Detox will bring in a new innovative app within the market so it
becomes important for management to identify key activities that have to be carried out
(Lasserre, 2017). They involve social networks, online advertising and various other
aspects. Through their assistance organization will be able attain their goals and
objectives behind launch of app.
 Key resources: For execution of operational activities, this is crucial that business entity
is able to arrange adequate resources that are required operating their services. Some
resources that are needed by Digital Detox App are transport, building, equipments, etc..
Along with this, there are some intellectual resources that are required by them, they are
patterns and trademarks, database and many others. By acquisition of all these assets,
management of firm can render their operations as per desired standard and in a
systematic way (Morschett, Schramm-Klein and Zentes, 2015).
 Value proposition: All the services and products that are being sold by organization for
meeting expectation level of customers are regarded as major elements that are liable for
creating value for them. For Digital Detox App the value proposition elements are
encouraging real life socialization among people with affirmative outcomes and
minimization of usage of screens during the day. If they are able to meet requirements of
their customers then they will be able to captivate more people for making use of their
application and establish their application at larger scale. Customer relationship: For sustaining as well as surviving within the market it is crucial
for small and large firms to build up enhanced relationship with their customers
(Moutinho and Vargas-Sanchez, 2018). Digital Detox App can formulate relation with
their clients through the assistance of innovative concept of Detox application that will
aid individuals to stay away from stress and will lead firm to develop a good image
within the market.

 Channels: Value proposition for a firm can be developed by assistance of furnishing
adequate product to their customers. Digital Detox App needs to emphasize on app store
through which probable individuals can download the app. For reaching maximum
number of people they need to ensure that social media advert campaigns are carried out
and adequate options are provided in their website that will assist them to have app. This
will enable them to have enhanced sales of their application (Rothaermel, 2017). The
CEO has opted to make use of different mediums by which they can make people aware
about their Detox app. This can be done by making use of online platforms like
Instagram, Facebook and Twitter. This will aid them to create awareness in public related
with innovation they are bringing in.
 Customer segments: This denotes a market segment that is being targeted by firm for
enhancing sales of their application. The probable customers of Digital Detox App are
screen users who involve millennial, generation X (40-54), generation Z (19 and even
below that) and baby boomers who are in between 55 to 73.
 Cost structure: All the costs that are being experienced by firm are regarded as part of
the cost structure (Stead and Stead, 2014). These costs will occur for Digital Detox while
developing their application, its marketing, rent, salaries, cost of equipment,
advertisements and various other aspects.
 Revenue streams: For execution of business within a systematic way, it is crucial that
business entities generate huge revenues by which funds can be obtained for carrying out
operations (Ansoff and et.al., 2018). The streams by which Digital Detox App can
acquire relevant funds is sales of app by different online channels like play store, website
and many others.
A business canvas model that is being developed for Digital Detox App is illustrated beneath:
Key partners
 Governme
nt
business
funding
 Agile
Key activities
 Online
advertisin
g
 Social
Networks
Value
proposition
 It is built
to
minimise
screen
Customer
relationships
 Automate
d services
 Personal
support
Customer
segment
 Screen
users of
different
categories

digital
solution
(Windows
store,
Android,
IOS)
 Brainstor
m,
Standard
lab for
Mental
Health
Innovation
, Vibrant
usage
during
day.
 Inspire
real life
interaction
to solve
mental
health
problems.
 Self-
service
- Generation Z
(under 19 and
equal)
- Millennial
- Baby
Boomers (55-
73)
- Generation X
(40-54)
Key resources
 Intellectua
l
resources,
trademark,
patterns
and
database.
 Material
resources:
building,
transport
and
equipment
Channels
 App Store
 Website
 Social
media
advertise
ment
campaign
Cost structure
 Market research
 Rent
 Advertisements, promotions and
marketing
 Cost of equipments
 Salaries
Revenue stream
 Income from online promotions
 Sales via app store and website
C level specialist contribution.
The CEO has created an innovative business idea that is Digital Detox App that will sold
within the market place by Website and app store. There is high probability of success of
business as this concept is innovative, unique as well as makes people stay away from problems
which are being caused by continuous use of screens of gadgets (Gamble, Peteraf and
Thompson, 2014). Irrespective of devices which are being utilized by individuals they can

download it as per configuration of their systems. This will provide them an amplified way to
detox themselves for a peculiar time interval from their devices. It is easy to use and can be
easily understood. The idea behind Digital Detox app is requirement for digital detoxification as
people are addicted and FOMO (fear of missing out) is impacting quality of life (Gamble, Peteraf
and Thompson, 2014). This gave firms opportunity to firm for furnishing a platform for
detoxification services. The approximate cost associated with app is 10 pounds as well as selling
prices which have been decided is 30 pounds. The profit margin that is being kept by firm for
this peculiar application is 20 pounds. This implies that Digital Detox will lead organization to
have to relevant profit if idea works on.
There are certain benefits that will be rendered by new innovative detoxification
application. The major benefit that is being rendered by this is that it will minimize addiction to
screen as people can’t do it by themselves due to addition and need assistance for the same. By
forging digital devices for some time, it may be temporary but it will lead them to let go of stress
that occurs due to continuous connectivity (Ginter, Duncan and Swayne, 2018). Individuals can
choose time as per their requirements. All the features are added up by CEO by carrying out
market analysis as well as paying attention for bringing in innovation. For development of
innovative idea certain procedures are illustrated below:
 Conducting market research: CEO has carried out market research for identification of
distinct growth opportunities for the establishment of new businesses. CEO of Digital
Detox app has significantly evaluated latest technologies as well as trends which prevails
within marketplace for capturing consideration of their probable customers. Formulation of distinct business ideas: By evaluating recent technologies distinct
business ideas are being developed by CEO of Digital Detox app for establishment of
business within marketplace. Distinct concepts have been formulated for furnishing
alternatives as well as selection of best one. Idea screening: In this stage, ideas have been screened as well as most efficacious
concepts have been selected for persistence (Hill, Jones and Schilling, 2014). CEO has
assessed all ideas and developed business idea accordingly as well as screen some of
them by which innovative business can be established.

 Select one unique idea: At this instance, CEO of Digital Detox have opted for selection
of ides for launching detox app as this is one of the major required thing within the
market. This acts as most efficacious concept in comparison to alternatives they have. Implementation of selected one and work accordingly: When single creative concept
was chosen up by CEO then this is executed as well as work is determined as per
business can be successfully recognized within the marketplace (Hill, 2017).
 Launching the idea in the market: This denotes last stage that is being followed up by
CEO of Digital Detox app where decisions are made with respect to introduction of new
idea within market place. In this stage, distinct plans are developed by which business
can achieve their desired success.
Financial and financing plan.
From Appendix 2, this has been identified that firm will have to acknowledge different
costs with a purpose to sustain within the marketplace. This includes salaries of employees, cost
of equipment, rent and various other aspects. There exist heterogeneous streams from where
revenues can be generated by Digital Detox app. These are sales which occur through the
assistance of app store and website for making revenue generations by sales of app. Estimated
entire cost for initial year is 20,000 and sales for this identical year is approximately 60,000. The
profit attained for the first year is around 40,000. The BEP for the first year is 596.49 units. If the
organization will sale up to 596 app in first year then cost will be recovered through this and all
the probability associated with losses have to be disregarded. The cash flow analysis is liable for
showing complete income for first year that is 60,000 as well as closing balance for the sales for
initial year will be 40,000.
There exist distinct sources of funds that can be utilized by CEO of Digital Detox app for
the purpose to launch detox application within the market. These include usage of personal
capital of owners, loan from banks and various other sources (Hitt and Duane Ireland, 2017).
There exist wide range of funds that will be needed by firm from distinct resources which
includes market research, salaries, rent, advertisement, cost of equipments, promotions,
marketing and other aspects.

Summary
The business opportunity associated with launch of Digital detox app is captivative as well
as investors will make adequate investments within it. The concept of this business is innovative
and unique that will captivate huge number of customers towards services that will be rendered
by them along with this, it will enable them to have adequate growth within the marketplace
(Lasserre, 2017). By making investments in Digital Detox app, it is a lean business opportunity
as this is creative concept to detoxify people who make excessive use of screens of smart devices
that will make business innovative as compared to other app developers. With the assistance of
investors they will be able to attain higher returns on investments that are being made by them
for having high profits. The major reason behind this is that by making appropriate investment
within this opportunity it will allow them to attain competitive edge in marketplace due to their
unique concept.
Conclusion
From above it can be concluded that, entrepreneurship development denotes the process for
development of an innovative business idea as well as establishment of that within the market
place. While formulating business ideas there are distinct types of models as well as frameworks
that are being formulated by firm. They includes value proposition and canvas models. With the
assistance of both internal and external stakeholders, they can identify key aspects related with
firm. For this, it is important to develop appropriate financial along with financial plans that are
required which have been covered that involves revenue stream, cost structure and various other
aspects.

References
Books & Journals
Ansoff, H. I. and et.al., 2018. Implanting strategic management. Springer.
Gamble, J .E., Peteraf, M .A. and Thompson, A. A., 2014. Essentials of strategic management:
The quest for competitive advantage. McGraw-Hill Education
Gamble, J. E., Peteraf, M .A. and Thompson, A. A., 2014. Essentials of strategic management:
The quest for competitive advantage. McGraw-Hill Education.Macmillan International
Higher Education.
Ginter, P. M., Duncan, W. J. and Swayne, L. E., 2018. The strategic management of health care
organizations. John Wiley & Sons.
Hill, C. W., Jones, G .R. and Schilling, M. A., 2014. Strategic management: theory: an
integrated approach. Cengage Learning.
Hill, T., 2017. Manufacturing strategy: the strategic management of the manufacturing function.
Macmillan International Higher Education.
Hitt, M. and Duane Ireland, R., 2017. The intersection of entrepreneurship and strategic
management research. The Blackwell handbook of entrepreneurship, pp.45-63.
Lasserre, P., 2017. Global strategic management.
Morschett, D., Schramm-Klein, H. and Zentes, J., 2015. Strategic international management (pp.
978-3658078836). Springer.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI
Tourism Texts. Cabi.
Rothaermel, F. T., 2017. Strategic management. New York, NY: McGraw-Hill Education.
Stead, J. G. and Stead, W. E., 2014. Sustainable strategic management. Routledge.
Online
Business canvas model. 2019. [Online]. Available through:
<https://medium.com/seed-digital/how-to-business-model-canvas-explained-
ad3676b6fe4a>

APPENDIX 1
Primary & secondary market research: The key elements which are required for the
market research are illustrated below:
Elements Details
Market size The market size for detox app is very big with technological
enhancements.
Market growth Growth within detox app is very high
Customer preferences Customers give preferences to innovative ideas as it attracts
them to improve their experience.
Segment size The size of segment of the company is large.
Key partners The key partners of firm are Government business funding
Agile digital solution (Windows store, Android, IOS) and
brainstorm, Standard lab for Mental Health Innovation,
Vibrant.

APPENDIX 2
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