Entrepreneurship Development: Lean Start Up, Business Objectives, Customer Value Proposition

This report discusses the concept of lean start up, business objectives, and customer value proposition in entrepreneurship development. It also includes a detailed development plan and marketing strategy.

Entrepreneurship
Development
Table of Contents

INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
Introduction to lean start up...............................................................................................................3
Business Objectives...........................................................................................................................4
Customer value proposition...............................................................................................................4
Lean business model Canvas.............................................................................................................6
Detailed development plan................................................................................................................8
Recommendations...........................................................................................................................14
Summary.............................................................................................................................................14
REFERENCES....................................................................................................................................15

INTRODUCTION
Entrepreneurship is all about converting the idea into a successful business model.
This report is based on the entrepreneurship business model call as Nat’s Workshop. This
organisation engaged selling the handmade jewellery, paintings, home decorations and
clothing line. Company serves all the customer’s requirements in respect to craft and tutorial.
In this report precise introduction will be given in respect to lean start up. What are the
potential objectives behind the business operations of company will project in this report.
Customer value proposition model will also project in this report. Lean business model
canvas is also a part of this report. Furthermore, this report would also project various plans
like marketing, operational, technical solution and information technology, human resources
and organisation and also the financial plan in respect to new business venture. All are the
possible future development company can associated with will also project in this report. This
report would also provide an overview in respect to why should someone invest in the
business of company.
MAIN BODY
Introduction to lean start up
This project has projected the case study of Nat’s Workshop. The lean start up has
been involved in selling various art and craft products like handmade jewellery, paintings,
home decorations and clothing line. All these products are well designed with the support of
expert professionals and designers. The start up will sale all these products in a United
Kingdom and will try to cherish the high demand of different art and craft products in the
market of United Kingdom. The organisation will provide a unique opportunity to all the
crafter based in United Kingdom and all different parts of world to come and showcase the
potentials they possess to all customers (Adelekan and Tijani, 2017). The organisation will
create a chain between crafters and potential buyers all across the globe. The organisation
will take consignment and will charge its commissions on both sale and tutorials. This is a
profitable model of doing business as the organisation do not need to buy products from the
crafters in advance even the crafter will approach the organisation to showcase their products
directly to customers.

Business Objectives
The lean start up has a business objectives to achieve the heavy growth rate in the
craft market of United Kingdom even in the initial stages of the business. As per the recent
report it has projected that the United Kingdom craft market has reported a sales of £ 3 bn.
Company carry a huge potential to channelize this market share in the initial years of
business model. It is anticipating that the Nat’s Workshop will entertain profitability
approximately 15% in the first year of trade 20% in second year of trade and third year
expected to be 30% profitability. The organisation is expecting to entertain this growth rate as
a minimum growth rate in market. On the basis of the business model it is anticipated that on
the basis of the business model of company it can achieve this growth rate at a minimum rate.
Customer value proposition
Customer value proposition is a strategic tool to position the product offer by
company in market as per the customer needs and expectations. This canvas model was
introduced by Alexander Ostwald in the year 2004 to project the fact that how company must
position the product in market based on the needs and expectations of target customer group
(Atiase and et.al., 2018). This model works on different components like customer profile,
value Map and company’s value proposition. All these components allow the organisation to
get an effective success for the product in target market.
Customer profile:
Customer profile is among the important component part of value proposition canvas
where company determine major issues face by customers like gains and pains which they
face after using the product or services served by company. These components generally
dependent on three factors like gains, pains and customer jobs.
 Gains: Gain is an important component involve in customer value proposition. This
factor denote that what are the gains customer will get after using the product offer by
company. This is most probably depends upon the expectations and beliefs of
customers from the product offer by company. So, new start-up business must
concentrate on customer’s expectation while producing the products to delight them
from the use of such products of company.
 Pains: Pain is another component involve in model. This is denote as the previous
negative experience of customer after using the similar product in past. This is about
the negative aspect of the product or service company is delivering to customer group.

 Customer Jobs; what probably the customer job is involve the third component in
value proposition model.
Value Map:
 Gain creator: As per this element product or services offer by company must
proposed in such manner that it can create gain for customers in market.
 Pain relievers: Product of company must be proved as pain reliever for the potential
customers in market.
 Product and services: Such product or service which develops gains and relieves
pain that directly creates value proposition for the customers.
Achieving fit between customer profile and value proposition
Once all the above tasks are done like setting up gains for customers overcoming
pains and customer job profiling a product and service is offered to customer in market
(Greblikaitė, Rakštys and Caruso, 2017). This customer value proposition canvas model will
allow the new business venture to understand this product will deliver the best level of
satisfaction to target customer group in market or not. New venture targeted people around
the world who are art and craft lovers and take interest in such creations. The new venture
also target to artist across the globe to showcase what they possess.
Value Map New Venture
(NAT’s Work Shop) Customer Profile
Product & Services: Lean
Canvas Model
Fit All such customers that carry
a special interest in art and
craft products.
All the young crafters who
wish to explore the skills and
polishes their talent is also a
potential customer group for
the NAT’s Workshop.
Pain relievers: Allow all art
and craft lovers at one place
to meet all their needs. Allow
crafters to sale their products
Pains: Risk of time and
money.

easily to end customers in
market. All crafters to serve
tutorials over their art to
promote awareness towards
such art in market.
Gain creators: Company will
earn profits through selling
the art of such artist.
Company will also charge
commission in tutorial
business.
Gains- Customers will get to
meet all their needs in art and
craft subject at one place.
They will get products from
bets artist around the world at
reasonable prices.
Lean business model Canvas
Lean business model canvas is a projection of the new business model. This involve
factors like key problems company will address, key solutions company is looking to deliver
against such problems, unique value proposition of company, customer segmentation, key
metrics, channels and revenue streams like different dimensions associated with the new
business model.
Key Partners
 Crafte
rs
from
all
across
the
globe.
 Craft
suppli
ers.
 Whole
Key Activities
 In house
sale and
purchase.
 Website
maintenance
.
 Tutorial.
 Marketing
and
promotions.
Value
Proposition
 All
crafter
will meet
at one
place.
 They get
to learn
business
sense on
how to
Customer
relationship
 Company
will
establish
relationship
with the
support of
marketing
strategies.
 Direct
contact over
Customer
segmentation
 Craft
lovers of
all age,
gender
and age
group.
 Facilitate
s earning
more
than

sale
suppli
ers.
 Local
shools
.
 Social
media.
 Degita
l
media
partne
rs.
 Local;
counci
ls.
 Trader
s.
sale their
crafts.
 Learning
opportun
ity
respect
to new
skills
and
capabiliti
es.
 Become
a part of
craft
communi
ty.
 Make
contacts
calls.
 Text
messages.
 Website.
 Social
media
 Digital
mediums.
 Email
marketing.
 Discount
offers over
£50
purchase.
 Customer
support
page over
company’s
website.
£20,000.
 Women
age
group of
18 to 60
years of
age.
 Kids
who are
intereste
d in
learning
art and
craft.
Key Resources
 Crafters all
across the
globe.
 Financial
resources.
 Skilled
work force.
 Technology
oriented
resources.
 Social
media.
 Digital
Channels
 Social
media
 Digital
channels
 Local
council
news
 Word of
mouth.

platforms.
 Professional
s and
experts over
selling art.
Cost Structure
 Rent of premises.
 Equipment and decoration
 Marketing
 Salaries of employees
 Refreshment expenses.
 Other overhead cost.
Revenue Streams
 In house product sale.
 Online sales
 Tutorials fees
 Tutorial videos
Detailed development plan
Marketing plan
Objectives
 To establish a unique and strong brand image even at the initial years of business.
 To establish a strong customer portfolio in the next three financial years.
SWOT analysis
 Strength: Huge base of artist and crafter across the globe. Guidance of expert
professionals would help in selling the art. Company will also sale all its products and
services at the best affordable price range (Hazarika and Goswami, 2018). Diversity
in product portfolio will also provide massive strength to company.
 Weakness: Company has no experience in conducting these functions. Inflation inn
economy is also a weak point company needs to deal with. It also a huge challenge for
company to unite all artist across the globe for long time.
 Opportunity: Opportunity to create an effective market for the craft and artist around
the world. Opportunity to raise awareness for the craft products like paintings and
many others across the globe. Company has a big business opportunity that will
deliver healthy profitability to the NAT’s Workshop.

 Threats: Threats like COVID 19 pandemic, economic crisis and many other threats
are a part of the business start up. Company has a threat of facing loose of all the
investors’ part of the business.
Strategy
4p’s marketing mix
 Product: All different craft products like handmade jewellery, paintings, home
decorations and clothing line will be sold at the business venture. Company will also
engage in giving tutorials in relations to art and craft to all the upcoming artist.
 Price: All these services will be offered at the best affordable price structure.
Company is using competitive pricing technique to serve all these products at the best
price possible.
 Place: UK is the place wherein new venture has started its business.
 Promotion: Traditional and digital marketing strategy be used by company to
promote all its products and services.
Implementation
Company will execute all the strategies with the support of expert professionals.
Company has developed a team that will overlook all the strategies and planning.
Controlling and monitoring
360-degree feedback strategy will use by company to control the project. To monitor the
strategic implementation company will use tools like Google Analytics tool to witness the
response over all different strategies used by company.
Operational plan
Operational plan is a set of operations that business venture will needed to operate.
This is the different steps that require channelizing properly in order to achieve all different
business objectives (Hazarika, 2016). Following are the activities that need to be done as a
part of operation plain of company.
 Objectives: Objectives of operation plain is to set the proper control over company’s
operations.

 Activities: Company will contact with all the crafters across the globe to come to
United kingdom and create growth opportunities for themselves. Company will
manage contacts with all potential customers that can take interest in the craft.
Company will promote all the crafts at various social media and promotion channels.
Company will also approach customers that are interested in learning crafts like
paintings and many others.
 Quality Standards: Operation process also involves ensuring the optimum quality
standards. Quality standards allow the company to serve the best quality of craft
products to all potential customers all across the globe.
 Staffing and resource requirements: Human resources play a huge role for the
company in achieving all different business objectives. Proper staffing is also a part of
operation management. With the support of Human resource department company has
set norms to maintain proper staffing in company.
 Monitoring process: Company has also set monitoring process that will overlook the
entire operations of company. Company monitors with the support of team leaders
and department heads that overlook in detail all different operations of company.
The Technique Solution and Information Technology plan
Information technology plan is a strategic direction that provides comprehensive
technology-enabled business management (Jindal and Bhardwaj, 2016). Information
technology is an important resources company is associated with business that allows NAT’s
Workshop to establish complete control over various departments and operations part of
company.
 Executive Summary: Information technology plan will provide a brief summary
about the different information technology software’s company use in operating
business functions. Background information: The objectives of company are to create a work place
where both crafters and craft lovers can come along and fulfil their needs and
requirements. This plain would guide in respect to all different effective information
technology solutions company can interact.
 Technology’s Goals and Objectives:
 To install the best level of technology software’s and solutions.

 To ensure proper control over company’s operations with the best information
technology equipments.
 Timeline: To achieve all these objectives timeline of 6 months has been set.
 Staff Training/Professional Development Strategy: Technical training will provide
to all employee part of the organisation. Skill development training will help the
employees of company to handle all technological equipments.
 Budget: The IT Department has set a budget of £ 500000 Pound for this IT plan. .
 Evaluation: IT Department will overlook on entire planning related to information
technology plan. The department has set a task force of expert professionals that will
overlook over the technical solution and information technology plan in the precise
manner.
Human Resource and Organisation plan
Human resource planning is all about planning the human resource management in
such a manner that company get only skilled and efficient human resources at different
designated position role in company.
Goals and Objectives
 To recruit the best professional’s at all technical positions in the NAT’s Work Shop.
 To recruit the skilful employee at other positional role in company.
 To attract experienced professionals engaged selling craft.
Strategy: Company will channelize promotional campaign of company’s recruitment drive to
meet its need related to human resources at various designated position role in company.
Team will approach candidates with the support of websites like LinkedIn and other social
media applications like Twitter, Instagram and many other.
Implementation: Management at NAT’s Work Shop has formed a team that will implement
all these strategic formation.
Controlling and monitoring: Team will monitor and control the plan.
Financial plan
Cost Structure

Cost Structure differentiates cost into fixed cost and variable cost. Fixed costs are all
such cost that provides benefits to company for more than one year. Fixed cost remains
constant every year for the company (Kumar and Borbora, 2019). Variable cost is such cost
that does not remain fix. On the basis of utilisation these cost fluctuates.
Variable Cost
Cost GBP (£)
Maintenance cost 50000
Electricity 6000
Training and development 12000
Stationary 2000
Refreshment cost 6000
Other variable expenses 10000
Total 86000
Fixed Cost
Cost GBP (£)
Rent 6000
Furniture 60000
Salary 100000
Machinery 160000
Total 326000
Revenue Stream
Revenue streams are defined all such sources that will allow the NAT’s Work Shop to
generate revenues in business (Melwani, 2018). The organisation has been engaged selling
craft products like paintings, jewellery and different other products. Company will also
charge commissions on tutorials provide to customers.
Revenue Stream
Revenue GBP (£)
Sales 1500000
Commission 100000
Total 1600000

Break Even Analysis
Breakeven analysis is all about assessing the point that can allow the company to
earn such revenues which will bring the organisation on a certain point that will generate not
profit no loss situation (Mohapatra, Khadanga and Majhi, 2018). This is the amount that at
least company needed to recover in order to survive in the business.
Cash Flow Analysis
Cash flow statement is a summary of all cash form of income of company and all cash
form of expended company incurred in order to conduct business operations (Pelucha,
Kourilova and Kveton, 2017). Many times company needed to pay in cah form that becomes
a payment for cash flow statement and may income company receives in cash form that
becomes inflow for cash flow statement.
Cash Flow Statement ( £)
Income
Opening Balance 200000
Cash sales 800000
Expended
Electricity 6000
Rent 8000
Refreshment 2000
Overhead expended 24000
Sale tax 25000
Stationary purchase 10000
Closing cash balance 25000
Sources of Finances
NAT’s Work Shop carry different funding sources like bank, angle investors, private
financers and many other sources of finance (Pilkova and Holienka, 2017). All these sources

of finance allot loans and borrowings at various rate of interest. Company take the loan or
borrowing from such source that can provide the easy and best rate of interest to company.
Recommendations
Company must give emphasis over continuous marketing campaigns in order to get
engaged with all potential customers in the market. Marketing will allow company to create a
brand image in market. Company should more focus over social media marketing as all the
artist all across the globe are very much active over different social media platforms like
Instagram and many other (Siswanto, 2018). Company should establish a public relation team
that will make contacts with all crafters and customers in the market.
Summary
It can sum up that this idea of NAT’s Workshop is unique as the company is aiming
to get along with all the crafter across the globe and all the craft lovers. All such artist involve
in this project will get the great opportunity to not only showcase their abilities along with
they will get to sale their crafts in order to generate the profitability. Different plans like
operation plan, human resource plan and many other plans has discussed in this report so that
new business venture can achieve all its different business objectives.
REFERENCES
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