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

This document provides an introduction to the lean start up approach and discusses the business objectives, customer value proposition canvas, and lean business model in entrepreneurship development. It also includes a detailed development plan for a new venture of bamboo bottles, covering the marketing plan and operational plan. Subject: Entrepreneurship, Course Code: N/A, Course Name: N/A, College/University: N/A

Entrepreneurship
development

Contents
Contents...........................................................................................................................................2
INTRODUCTION TO THE LEAN START UP.............................................................................1
BUSINESS OBJECTIVES..............................................................................................................1
Profit............................................................................................................................................1
Sales revenues..............................................................................................................................1
Profit margin objectives for the first three years of operations...................................................2
CUSTOMER VALUE PROPOSITION CANVAS.........................................................................2
LEAN BUSINESS MODEL............................................................................................................4
THE DETAILED DEVELOPMENT PLAN...................................................................................6
The marketing plan......................................................................................................................6
The operational plan....................................................................................................................7
The technical solution and information technology plan............................................................7
The human resource and organisation plan.................................................................................8
POSIBLE FUTURE DEVELOPMENTS OR CHANGES IN DIRECTION..................................8
SUMMARY.....................................................................................................................................9
REFERENCES..............................................................................................................................10
APPENDIX....................................................................................................................................11

INTRODUCTION TO THE LEAN START UP
The business idea is an innovative concept which is formulated by paying attention
toward market opportunities. A new idea of bamboo bottles which are having a purifier in them
will be introduced in the market. It could be carried by the individuals wherever they move and
they can use tap water as drinking water if it will be used by them. It will purify the tap water
and make it drinkable. It has been planned that the new bottles will be introduced in UK first and
if the business will be able to attract large number of customers and meet the desired level of
sales then the bottles will be introduced in different countries for the purpose of attaining growth
(Akinbami and Aransiola, 2016). The target market for the new business concept will be middle
and upper-class customers as the bottles will be introduced in different variants such as normal
purifier and powered purifier. The bottles with normal purifier will be for customers from middle
class and another one will be sold to the upper-class customers. It has been planned that the
bottle will normal purifier will be sold for 150 pounds and the bottle with powered purifier will
be sold for 400 pounds.
BUSINESS OBJECTIVES
Profit
The main objective of the new bamboo bottle’s venture will be generating higher profits
in upcoming three years. It has been estimated by the senior managers that the business should
generate profit of around 20000 pounds for the first year so that the new business can sustain in
the market. If the desired profits will not be generated then it will be very difficult to survive in
the market.
Sales revenues
For all the business entities it is very important to make sure that they are able to generate
sufficient revenues so that the cost could be recovered. If the sales which is generated is not able
to recover the revenues then it will be very difficult to carry out future operations. The owner of
new Bamboo Bottle’s venture has estimated that in first year 200 units of normal purifier bottles
and 150 units of powered purifier bottle will be sold. According to this, the estimated sales for
the first year will be around 90000.
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Profit margin objectives for the first three years of operations
The profit margin objectives for first three years are as follows:
 It has been estimated by the owner of new venture that in first year profits of 20000
should be generated.
 The owner is willing to enhance the profits by 40% every year so that competitive
advantage for business could be acquired.
 The new venture is having the objective of making increment in revenues and profits
every year so that the goal of long-term sustainability and higher profitability could be
acquired (Arabi and Abdalla, 2020).
 The main objective of the business is to attract large number of customers so that the
profit margin for every year could be enhanced which may result in successfully
established business in London and other locations in United Kingdom.
CUSTOMER VALUE PROPOSITION CANVAS
Customer value proposition canvas could be defined as a tool that could be used for the
purpose of ensuring that the product or service which will be offered to the clients are positioned
around their needs and values. It shows the relationship between the value propositions and
customer segments. It is very important for all the entities to make sure that they have developed
it in systematic manner so that the needs and wants of all the customers could be met. As a new
business of bamboo bottles will be established in upcoming period so it will be very important
for the owners to make sure that they are able to develop this canvas (Baporikar, 2017). With the
help of it, they will be able to assure that they are meeting needs and values of targeted
audiences. An example of the model along with description of all its elements is as follows:
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Value propositions: These are the main elements which are focused by all the entities
for the purpose of providing value to all the items that are sold by them in the market. It is very
important for the businesses like new bamboo bottle venture to make sure that they are paying
attention towards identification of the as it can help to meet future goals and objectives. The key
elements of this part of the canvas are discussed below for the new bamboo bottle business:
 Gain creators: This factor is focused with they way in which the product or facility
create customer gain and add value to the client. The main factor which will gain
customers for the new business of bamboo bottle is the concept of it which is unique,
innovative and different from others.
 Product and services: This factor is focused with products and services that will be
offered by the enterprise to the targeted audiences. The items that will be sold to the
clients are bamboo bottles in different ranges so that the expectations regarding price
could be met. The bamboo bottles will be sold with normal as well as powered purifier
and prices of them will be different so that middle as well as upper class clients could be
covered by the enterprise (Halunko, Ivanyshchuk and Popovych, 2018).
 Pain relievers: This element of the model is focused with the description of the way in
which the new product or service will alleviate the pain of customers. The new business
venture of bamboo bottles will sale the bottles with inbuilt purifier which will reduce the
struggle of the people for looking pure water when they will be travelling to rural area.
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Apart from this, the customers who are travelling from one place to another will also not
have to spend more money to buy purified water on very high cost.
Customer profile: It is second main element of the model which outlines all the gains,
pains and jobs of clients. The description of all of them in context of new bamboo bottle business
is as follows:
 Gains: These are the benefits that are expected by the clients. Some of the benefits of
new bamboo bottles will be the purifier in it, could be taken anywhere because of low in
weight, worth the price etc.
 Customer jobs: These are the jobs that clients are trying to perform and the issues that
they are willing to resolve. The problems that will be resolved by the new bamboo bottles
are the struggle of people for pure water while travelling or visiting a place where there is
no bottled water available.
 Pains: These are the adverse impacts of the products that will be introduced in the
market. Some of the pains which may result while introducing bamboo bottles in the
market are higher cost, lack of communication between clients and entity etc.
LEAN BUSINESS MODEL
Lean business model is also known as business canvas model which is developed by the
organisations for the purpose of keeping detailed information about all the elements that may
contribute in the development of business. It is essential for all the businesses to develop it so
that effective decisions for future could be taken. As the new venture of bamboo bottle will be
launched in the market so it will be very important for the owners to formulate the lean business
model (Hazarika and Goswami, 2018). The business canvas model for the new venture is as
follows along with the discussion of all the elements of it:
Key partners
 Owner
 Raw
material
supplier
 Staff
members
Key activities
 Manufacturin
g bamboo
bottles
 Online as
well as
offline
promotions
Value
proposition
 The
travellers
who like
to travel
in rural
areas ad
Customer
relationship
 Latest
technolog
y
 Good
quality
Customer
segment
 Middle-
and
upper-
class
custome
rs
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 Investors
 Marketer
s
 Creditors
 Sharehol
ders
 Selling
bottles
adventur
ous
places
can use
the
bottles to
have
pure
water
 Unique
concept
 Individ
uals
who
like to
travel to
rural
areas of
adventu
rous
places
Key resources
 Human
capital
 Monetary
resources
 Bamboo to
manufacture
the bottle
 Plant
Distribution
channel
 Online
distributor
or retailers
like
Amazon
 Physical
stores
Cost structure
 Cost of the bamboo which will be bought
from suppliers for the purpose of
manufacturing the bottles
 Compensation to all the staff members
 Marketing cost
 Distribution cost
 Rent of ware houses
Revenue stream
 Selling bottles
 Receiving online orders
 Revenues generated from retailers
Key partners: All the external as well as internal parties involved in business are know
as key partners. The partners for the new venture of bamboo bottle will be raw material supplier,
owner, creditors, employees, marketers, investors, shareholders etc.
Key activities: All the main operations that are performed by an organisation are
considered as the part of this element. Some of the key activities of new bamboo bottle venture
will be manufacturing, selling and promotional activities (Iarmosh and Lototskaya, 2019).
Key resources: The main sources that are required for execution of all the key activities
are known as the part of this factor of lean model. The main resources that will be required by
the new venture of bamboo bottle will be plant, human capital, monetary resources, bamboo etc.
Value proposition: The factor that adds value to the new offerings are the value
propositions. For the new venture of bamboo bottle, it is that it could be carried by the travellers
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and other individuals when they visit a place where they are not able to get pure water. This
bottle will provide them pure water as it is having inbuilt water purifier.
Customer relationship: It is very important for all the entities to establish good relations
with the clients. For this purpose, the new venture of bamboo bottle is focusing upon unique
concept, latest technology and good quality.
Distribution channel: For a new business it is essential to make sure that it is able to
distribute all its items properly in the market. As the new venture of bamboo bottle will be
launched in the market so that owners have decided to distribute it through online website,
retailers and physical stores (Khayesi, Sserwanga and Kiconco, 2017).
Customer segment: The entities are required to make sure that they have selected the
right customer segment according to their products and services. The segment for the new
bamboo bottle business will be individuals from upper and middle class who like to travel to
such areas where they cannot get pure water.
Cost structure: The new venture of bamboo bottle may have to face different costs.
These are compensation to the staff, cost of raw material, rent, marketing, distribution cost etc.
Revenue stream: The new bamboo bottle venture can generate revenue from different
streams. These are sales, online sales and retailers (Rakićević, Jakšić and Jovanović, 2018).
THE DETAILED DEVELOPMENT PLAN
The marketing plan
Marketing plan is a detailed document which is formulated by an organisation for the
purpose of sharing detailed information of the product or service which will be introduced in the
market. As the new business of bamboo bottle will be introduced in the market so it will eb very
important for the enterprise to make sure that it is able to develop the marketing plan properly as
it may result in high awareness of all the individuals about the new bottles. It has been planned
by the organisation that it will be using online as well as offline promotional techniques. Social
media marketing will be used by it to reach maximum number of clients or the targeted
audiences. It will help to increase the possibility of higher sales. Apart from this, newspapers will
also be used for advertisement purpose which will also help the organisation to spread awareness
about the new bottles. It will help the new venture of bamboo bottles to establish itself
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successfully in the market and meet all its long-term goals and objectives such as higher sales
and profits for the first year and increase them in upcoming years (Sendouw, 2019).
The operational plan
It could be defined as a plan which is highly focused with accomplishment of all the
predetermined goals and objectives of the organisation. It provides a clear picture of the way in
which teams will be working collaboratively for attaining the targets. It creates a map for day to
day tasks so that all the desired goals could be achieved. An operational plan for the new
business of bamboo bottle is as follows:
Elements Details
Goal The main goal of the new venture of bamboo bottle is to establish itself
successfully so that growth in future could be acquired.
Strategy The strategy which is adopted by the entity is that it will use social media
marketing and advertisement to spread awareness about the new bottles.
Apart from this, latest technology will be used for manufacturing the bottles.
Actions The owners of new venture of bamboo bottle have decided that they will be
carrying out business with effective decision making. They have formulated
strategies like online marketing and the actions which will be taken by them
are market research and effective idea development (Shoma, 2019).
Resources
required
The main resources which will be required for carrying out all the operations
of new bamboo bottle venture will be funding, human capital, raw material
etc.
Outcomes If the operational plan will be executed properly then it will result in higher
profits of the entity and successfully established business.
The technical solution and information technology plan
The technical solution and information technology plan is the detailed analysis of latest
techniques which could be used by the organisations for the purpose carrying out business in
systematic manner. As the new venture of bamboo bottles will be introduced in the market with a
latest technology which is inbuilt purifiers in the bottles so it is very important for the entity to
formulate the IT plan. The technical solution which is designed by the organisation is related to
the purifiers because it is a new technology which will be used by the new venture for the
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purpose of finding solution for the problems of individuals who travel to a new place and are not
able to get purified water. This bottle is the technical solution for their problem because if they
will buy it then they will not have to struggle to find pure water at different places where they are
travelling. Apart from this, information technology will also be used for the purpose of
marketing so it will be very important for the new business to make sure that the employees
working with it are having proper knowledge of it or not (Smirnov, Sergej, and Eugeniy
Cheberko, 2017).
The human resource and organisation plan
The plan which is mainly formulated for the purpose of organisation of all the operations
and human resources is required to be developed by all the new businesses. With the help of it, it
will eb very easy to make sure that all the planned activities are performed in systematic manner.
As the new bamboo bottles will be introduced in the market by the new venture so it will be very
important for it to make sure that it is developing a plan. It has been planned by the owners that
they will be posting jobs on web portals as well as in news papers so that they can hire skilled
work force for contributing in development of business. Apart from this, they have also decided
that to organise all the staff members effective plans will be formulated. They will assign jobs to
all of them on the basis of their capabilities and qualities. It will help to reach the desired level of
success in future.
POSIBLE FUTURE DEVELOPMENTS OR CHANGES IN DIRECTION
Possible future developments are some of the specific actions which could be taken by
for making changes in the products. Some of the specific possible future developments of
changes in the direction for the new venture of bamboo bottles are making improvements in the
design, opening new retail stores in different locations of United Kingdom. It will help the
organisation to attain growth and meet all the long-term objectives. Another possible future
development for the bamboo bottle venture is opening a joint venture with an entity which is
established outside of UK. With the help of it, the business could be expanded in different
countries and it may also result in higher revenues and profits because with the help of it large
market share will be captured by the enterprise (THU HA and Hoa, 2018). While expanding
business in a new country or region it will be very important for the venture of bamboo bottle to
make sure that it is conducting a market research so that it can determine the mind set of targeted
8

audiences. It will be very important for making this development. If the market analysis will not
eb conducted then it may result in failure of operations.
SUMMARY
The above report concludes that entrepreneurship development is a process of analysing
the market situations and then formulating effective business idea so that a new venture could be
established. While developing a new business concept it will be very important for the
individuals to formulate specific future objectives that are required to be accomplished. There are
various key elements that should also be considered while establishing a business. These are lean
business model, value proposition model, different types of plans such as operation, marketing,
human resource, information technology etc. If these will not be focused by the new ventures
then it will be very difficult to formulate effective decisions for future. Apart from this, if the
new venture will not be able to develop various strategies then it may affect the successful
accomplishment of all the desired goals and objectives.
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REFERENCES
Books and Journals:
Akinbami, C. A. O. and Aransiola, J. O., 2016. Qualitative exploration of cultural practices
inhibiting rural women entrepreneurship development in selected communities in
Nigeria. Journal of Small Business & Entrepreneurship, 28(2), pp.151-167.
Arabi, N. G. and Abdalla, A. M., 2020. The role of ecosystem for entrepreneurship development
in Sudan. World Journal of Entrepreneurship, Management and Sustainable
Development.
Baporikar, N., 2017. Cluster Approach for Entrepreneurship Development in India. International
Journal of Asian Business and Information Management (IJABIM). 8(2). pp.46-61.
Halunko, V., Ivanyshchuk, A. and Popovych, T., 2018. Global experience of social
entrepreneurship development. Baltic Journal of Economic Studies. 4(1). pp.62-67.
Hazarika, B. and Goswami, K., 2018. Micro-entrepreneurship development in the handloom
industry: an empirical analysis among the tribal women in Assam. International Journal
of Rural Management. 14(1). pp.22-38.
Iarmosh, O. V. and Lototskaya, E. M., 2019. New opportunities for youth entrepreneurship
development and youth self-employment increase. Adaptive Management: Theory and
Practice. Series Economics, 6(12).
Khayesi, J. N., Sserwanga, A. and Kiconco, R., 2017. Culture as a facilitator and a barrier to
entrepreneurship development in Uganda. In Entrepreneurship in Africa (pp. 307-322).
Brill.
Rakićević, J., Jakšić, M. L. and Jovanović, M., 2018. Measuring the Potential for Technology
Entrepreneurship Development: Serbian Case. Management: Journal of Sustainable
Business & Management Solutions in Emerging Economies. 23(2).
Sendouw, R. H., 2019. Entrepreneurship Development Program in the Higher Education in
Indonesia.
Shoma, C. D., 2019. Gender is a Human Rights Issue: The Case of Women’s Entrepreneurship
Development in the Small and Medium Enterprise Sector of Bangladesh. Journal of
International Women's Studies. 20(7). pp.13-34.
Smirnov, Sergej, and Eugeniy Cheberko. "Current Stage of Entrepreneurship Development in
Russia From 2014 Up To 2017: Main Issues and Trends." In 6th International OFEL
Conference on Governance, Management and Entrepreneurship. New Business Models
and Institutional Entrepreneurs: Leading Disruptive Change. April 13th-14th, 2018,
Dubrovnik, Croatia, pp. 344-355. Zagreb: Governance Research and Development
Centre (CIRU), 2018.
THU HA, N. T. and Hoa, L. B., 2018. Evaluating entrepreneurship performance in Vietnam
through the global entrepreneurship development index approach. Journal of
Developmental Entrepreneurship. 23(01). p.1850006.
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APPENDIX
Primary and secondary research:
Market size: The market size of bottle business is very large but as the new bamboo bottle
business is new to the market therefore a small segment will be selected to launch its
products.
Market growth: The growth of bamboo bottle businesses is very high and it is estimated that nee
business will also attain growth in future.
Customer preferences: The main preference of customers is to get a bottle which is having
purifier and they can have purified water at every place where they visit or travel.
Segments: The market segment selected by the entity is small. T will be targeting individuals
form middle and upper class of clients from UK.
Segment size: The segment size is small as the business will be launched in a small city of UK at
initial level and will be expanded with the progress and growth of it.
Competitors: The main competitor of the new bamboo bottle business is MIRON Glass which is
the major player in the market.
Key partners: For the new business of bamboo bottles some of the key partners will be investors,
creditors, suppliers, owners etc.
Channel: For new online tailoring business these are online website, social media etc.
Cost structure:
Particulars 2020 2021 2022
Variable costs
Salaries to staff 10000 20000 22000
Advertisement 5000 8000 9800
Rent of warehouse 5000 8000 9000
Fixed costs
Plant 20000 20000 20000
Cost of material 30000 30000 30000
Total cost 70000 86000 90800
Revenue stream:
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Particulars 2020 2021 2022
Selling of bottles 25000 35000 40000
Online bookings 25000 23000 28000
Advances from clients 20000 21000 24000
Further developments 20000 35000 38000
Total revenues 90000 114000 130000
Break even analysis: It has been estimated that cost of bottles will be 150 and 400 for normal
and powered purifier respectively. In first year 200 units of normal bottles and 150 units of
powered purifier will be sold. So, the calculation of BEP is as follows:
BEP (In units) = Fixed cost / contribution per unit
First year
= 50000 / 200
= 250 units
BEP in Pound= Fixed cost / PV ratio
= 50000 / 77.78%
= 64284
Second year
BEP in units
= 50000 / 156
= 321 units
BEP in Pound
= 50000 / 68.42%
= 73078
Third year
BEP in units
= 50000 / 127
= 394 units
BEP in Pound
=50000 / 68.62%%
= 72865
Calculation of contribution:
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Formula = Sales – variable cost / total units
First year:
= 90000 – 20000 / 350
= 200
Second year:
= 114000 - 36000 / 500
= 156
Third year
= 130000- 40800 / 700
= 127
Calculation of PV ratio:
Contribution / sales *100
First year:
= (90000 - 20000) / 90000 * 100
= 70000 / 90000 * 100
= 77.78%
Second year
= (114000 – 36000) / 114000 * 100
= 78000 / 114000 * 100
= 68.42%
Third year
= (130000 – 40800) / 130000 * 100
= 89200 / 130000 * 100
= 68.62%
Cash flow analysis:
Particulars 2020 2021 2022
Receipts
Selling of bottles 25000 35000 40000
Online bookings 25000 23000 28000
Advances from clients 20000 21000 24000
Further developments 20000 35000 38000
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Total receipts 90000 114000 130000
Payments
Salaries to staff 10000 20000 22000
Advertisement 5000 8000 9800
Rent of warehouse 5000 8000 9000
Plant 20000 20000 20000
Cost of material 30000 30000 30000
Total payments 70000 86000 90800
Cash at the end 20000 28000 39200
Sources of finance Amount Usage of finance Amount
Selling of bottles 25000 Salaries to staff 10000
Online bookings 25000 Advertisement 5000
Advances from clients 20000 Rent of building 5000
Further developments 20000 Machines 20000
Cost of material 30000
Profits 20000
90000 90000
14