Lean Start Up Approach for Fit Food Creation

This report discusses the lean start up approach used by Fit Food Creation to launch new products quickly and at a cheaper rate. It covers the business objectives, customer value proposition, minimum viable product, and lean business model canvas. The report also explores future developments and the potential for market penetration, product development, market development, and diversification.

Entrepreneurship
Development

Table of Contents
INTRODUCTION...........................................................................................................................3
Business Objectives.....................................................................................................................3
Value Creation: Customer Value Proposition Canvas (Diagram) Minimum Viable
Product............................................................................................................................................4
Customer value preposition...............................................................................................4
Minimum value product.......................................................................................................5
Value Capture: ‘Lean’ Business Model Canvas.......................................................................6
Future Developments...................................................................................................................8
Summary........................................................................................................................................9
REFERENCES............................................................................................................................10
Appendix I.....................................................................................................................................11
Detailed Development Plan.......................................................................................................11
The COO Operational Plan..............................................................................................11

INTRODUCTION
A Lean Start Up can be defined as a method that is used in order to introduce a
new product on behalf of an already existing company or introduce a new product. The
method involves the development of products that consumers have demonstrated that
they desire. This leads to the market already existing whenever the product is launched.
A lean start up approach is important because it assists businesses to launch new
products that are actually needed by the customers, more quickly and comparatively at
a cheaper rate (Belitski and Desai, 2016). The C-level perspective taken for this report
is COO or a Chief Operating Officer, who is one of the highest ranking positions in an
organisation. The COO of an organization is responsible for carrying out different roles,
like, they report directly to the Chief Executive Officer or the CEO of the company and is
second in the chain of command. The respective report is based on Fit Food Creation, a
business that provides specific diet box meals. The box meals that are offered by the
company are customizable as per the needs of the customers. The business offers a
variety of services to the customers in order to retain them and gain a competitive
advantage in the market. The primary objective of the business is to generate profits by
satisfying the needs of the customers. The different channels opted by the business in
order to reach out to a greater number of customers include online advertisements,
social media, mobile app stores as well as distributing samples.
Business Objectives
The Chief Operating Officer is among the senior executives of the company who
ensures that all business operations are conducted in an effective manner (Curry,
Donker and Michel, 2016). One of the major responsibilities of the COO of an
organization is to develop objectives so that the employees are aware of their
responsibilities and have a clarity of the same. The COO of Fit Food Creation takes into
account certain factors before developing the business objectives for the company. For
instance, the target market is decided very carefully so that their needs are satisfied in
an effective manner. The objectives for the first three years of operation for relating to
profit, sales revenue and profit margin that are developed by the COO of the company
are described below -

Profit – One of the main motives of the respective business is to generate
profits. Along with this, the business also aims to satisfy the needs of the customers.
And in order to generate profits, the company will be required to have knowledge about
the latest trends in the market as well as the kind of products that are needed by the
customers.
Sales Revenue – Sales revenue can be defined as the amount of income that is
received by a business through the sale of its products (Ferreira, Fernandes and
Ratten, 2017). The Chief Operating Officer of the respective company, Fit Food
Creation aims to generate a greater overall sales revenue for the company by
understanding the needs as well as diet patterns of the customers.
Profit Margin – Profit margin can be referred to as a measure of profitability of
an organization. Fit Food Creation aims to enhance its profit margin by targetting
customers who are 18 years or above and are inclined towards a healthy lifestyle. They
will be offered low-carb and balanced meals.
Value Creation: Customer Value Proposition Canvas (Diagram)
Minimum Viable Product
Value creation is one of the strategy which refers to creating value to customer
which can help in higher sales of product or services.
Customer value preposition
Value proposition canvas is one of the tool which refers to get ensure about the
product or services are there on the place where customer values and their needs are
there. fitfoodcreation should use this tool to get the position of the company where it
lies in sense of their customer. Value proposition canvas is formed by two building
blocks, one is customer profile and another one is Company's value proposition.
Customer profile
Gains- Customer are getting their food according to their interest which helps in getting
adopting a value proposition.
Pain- Customer experiences some issues in taste which is not always there according
to their interest and also not healthy for longer period of time.
Customer jobs- Customers are trying to be health conscious to get active and healthy.

Value map
Gain creators- Customer can get the gain by getting different options in the food variety
with different taste which creates value for the customer which leads to profit for the
business unit.
Pain relievers- Healthier food can help in getting relief along with different taste can
give different experience to their customer (Alvarado, 2020).
Products and services- Catering service to different customer base which helps in
saving time of their customer which leads to get the prepared food directly to eat which
creates value to their customers.
Minimum value product
Minimum value product s a concept that is related to lean start-up and is
stressing in he learning impact from new product development (Opazo Breton, Britton
and Bogdanovica, 2020). It is a version of new product that also to collect maximum

validated learning about the target segment of customers with least efforts. It is based
on key premises behind the idea is that actual product that can be offered to customers
and their actual behaviour can be observed with regards to the new product that is to be
developed which includes the diet food range. The primary benefit of MVP is to gain a
understand of the customers interest without proper development of product. It assists
the business organisation in evaluating whether the product will succeed or not by
anticipating the success rate of their new product expansion. This is done by analysing
the customer reactions so that there can be evaluation of the business viability. The
work is done in versions so that there can be timely analysis of the customers feedback,
challenges that are associated with negative customer responses and further according
to that assumptions are validated to know about the requirements of products. Based on
this there can be incremental developments in the product and used in case of new
start-ups who are approaching a complete new market segment (Aghnia and Larso,
2018). The minimum viable product only posses the core features that are enough for
deploying the product as a subset of the future fully developed product so that there can
be avoiding of building of products that customer are not willi8ng to buy or posses any
type of preferences.
Value Capture: ‘Lean’ Business Model Canvas
Lean Business Model Canvas is referred to as a model that is used by
businesses and is mainly focussed on problems, key metric and solutions. The model is
separated into nine segments and outlines a plan for the company in order to achieve
its goals as well as objectives in an effective manner. The lean business model also
aims towards eliminate any kind of waste in the processes along with satisfying the
needs of the customers (Jana and et.al., 2019). There are many benefits of
implementing a Lean Business Model Canvas within the organization which include
more satisfied customers, a high rate of engagement among employees towards their
work etc. Apart from this, the respective model also affects the overall revenues of the
company and can be incorporated in both small as well as large businesses. The
respective model is implemented by the COO of Fit Food Creation in order to ensure
that business objectives are attained. Also, since the Lean Business Model Canvas is
associated with the essentials, thus only businesses using this function in a holistic

manner. This means that there is continuous growth for the business as well as the
employees of the company are also engaged. The respective model is explained below
in context to Fit Food Creation.
Customer Segments – The customer segments of the respective company are
individuals who want to maintain a balanced diet and usually workout. Apart from this,
the customer segment will also include people who have busy work schedules for their
companies.
Value Proposition – The Value Proposition offered by the business will include
high protein and low-carb diet (Lawal, Iyiola and Adegbuyi, 2018). Healthy cheat meals
will also be offered to the customers in order to retain them. The members will also
receive access to a platform so that they can track their progress.
Channels - The different channels that will be used by Fit Food Creation in
order to reach its customers will include leaflets, online advertisements, mobile app
stores, social media as well as distribution of samples of different companies.
Customer Relationship - Fit Food Creation will implement different measures
in order to build lasting relationships with its customers. And in order to do so, it will
offer an option of becoming members of the company. Apart from this, the COO of the
company has decided that personalized box meals will. Also be offered to the

customers based on their diet. Various social media platforms will be used in order to
stay in touch with the customers.
Revenue Streams – The major revenue streams for the company will include
online sales, cooperation with different organizations as well as offices as well as
week/month meal plans for different members.
Key Resources – The key resources as per the view point of the COO of the
company include trainers, dietician, the kitchen staff who will prepare the food and the
box suppliers.
Key Activities – Key activities for the respective company include developing a
marketing plan, taking online orders, taking the payments as well as dietician's help as
well as preparing training schedules.
Key Partners – The key partners for the company are gym trainers, dietician, the
delivery company, suppliers etc.
Cost Structure – The cost structure for the respective company will include the
salaries for the employees, marketing expenses, IT Support and Equipment.
Future Developments
The operational plan that has been described in the report has made it clear that
Fit Food Creation has a good image in the company (Macke and et.al., 2018).
Therefore, the future developments for the business can be identified and evaluated
with the help of Ansoff Matrix. The matrix will also help the company in expanding its
business operations in an effective way as well as attract a greater number of
customers.
Market Penetration – In this strategy, the respective business will try to increase
its overall sale in the existing market and selling existing products (Mahmoud, Abou-
Shouk and Fawzy, 2020). This will help the company in penetrating an existing market.
Product Development – In this strategy, the company will sell new products in
the existing market. This can include improved packaging, size as well as taste of the
products.
Market Development – The company will develop new products and sell the
same in the new market in order to attract a greater number of customers.

Diversification – Lastly, in this strategy, the company will start new operations in
an extremely new market in order to expand and diversify its operations.
Summary
If the respective start up, Fit Food Creation, never existed, the world will be the
worse off because the young people who are conscious about their diet and want to
lead a healthy lifestyle, would not be able to have any access to high quality, low-carb
and high-protein foods. Therefore, investors should invest in the start up so that it gets
an opportunity to grow and address the needs of the customers in an effective manner.
Also, there are not a lot of companies that offer such services to their customers.
Therefore, by investing in the start up, the investors will provide the business a chance
to serve its target customers and gain their trust as well as loyalty. Also, since the idea
is unique, the business will be able to gain a competitive advantage against its
competitors. As a result, the business will be able to run its operations in a smooth
manner and enhance overall profitability to a great extent.

REFERENCES
Books & Journals
Aghnia, M. C. and Larso, D., 2018. DEVELOPING NEW PRODUCT USING MINIMUM
VIABLE PRODUCT. Jurnal Aplikasi Manajemen. 16(2). pp.234-245.
Alvarado, A. H., 2020. Minimum depth of double cross product extensions. arXiv
preprint arXiv:2005.00860.
Belitski, M. and Desai, S., 2016. Creativity, entrepreneurship and economic
development: city-level evidence on creativity spillover of entrepreneurship. The
Journal of Technology Transfer. 41(6). pp.1354-1376.
Curry, J. A., Donker, H. and Michel, P., 2016. Social entrepreneurship and indigenous
people. Journal of Co-operative organization and management. 4(2). pp.108-
115.
Ferreira, J. J., Fernandes, C. I. and Ratten, V., 2017. Entrepreneurship, innovation and
competitiveness: what is the connection?. International Journal of Business and
Globalisation. 18(1). pp.73-95.
Jana, S. K. and et.al., 2019. Women entrepreneurship in backward region: A study in
Jhargram District of West Bengal. Asian Journal of Multidimensional Research
(AJMR). 8(3). pp.222-233.
Lawal, F. A., Iyiola, O. O. and Adegbuyi, O. A., 2018. Exploring alternative financing for
entrepreneurship development in Nigeria: Surmounting challenges. Journal of
Entrepreneurship Education. 21(1). pp.1-11.
Macke, J. and et.al., 2018. Where do we go from now? Research framework for social
entrepreneurship. Journal of Cleaner Production. 183. pp.677-685.
Mahmoud, M., Abou-Shouk, M. and Fawzy, N., 2020. Exploring the Factors Affecting
Entrepreneurship in Tourism Sector. International Journal of Hospitality &
Tourism Systems. 13(2).
Mieszajkina, E., 2016. Ecological entrepreneurship and sustainable development.
Problemy Ekorozwoju–Problems of Sustainable Development. 12(1). pp.163-
171.
Nowak, H., 2016. The role of the Polish higher education system in the development of
entrepreneurship. Entrepreneurial Business and Economics Review. 4(1).
pp.43-59.
Obschonka, M., 2016. Adolescent pathways to entrepreneurship. Child Development
Perspectives. 10(3). pp.196-201.
Opazo Breton, M., Britton, J. and Bogdanovica, I., 2020. Effect of UK plain tobacco
packaging and minimum pack size legislation on tobacco and nicotine product
switching behaviour. Addiction.
Qian, H. and Jung, H., 2017. Solving the knowledge filter puzzle: Absorptive capacity,
entrepreneurship and regional development. Small Business Economics. 48(1).
pp.99-114.
Ruškytė, D. and Navickas, V., 2017. Efficiency of teaching and learning methods for
development of learner entrepreneurship. Pedagogika. 126(2).

Appendix I
Detailed Development Plan
The COO Operational Plan
An operational plan can be defined as a detailed plan that clearly describes how
a team or department will contribute to the overall attaining of organizational goals and
objectives. It is an important component for the organization and maps the day to day
tasks that are required to run the business operations smoothly (Mieszajkina, 2016).
The COO of Fit Food Creation is responsible for developing an operational plan for the
business to ensure that the different activities run smoothly. The plan will outline in
detail, the actions that different teams or departments will be expected to carry out in
order to achieve both short-term as well as long-term goals. The reason why the
respective start up, Fit Food Creation will be viable and profitable is that the interest of
young individuals towards a healthy lifestyle is increasing rapidly. This will help the
respective company in reaching out and attracting a greater number of customers. Also,
this has created an opportunity for the company to launch its business. Young people
who belong to the age group of 18 years or above, are more conscious about their diet.
Thus, the respective start up will be profitable as it will serve a great number of
customers.
Vision – A vision statement of the company describes the current as well as
future objectives of an organization (Nowak, 2016). The statement allows the company
to work towards achieving the same. The company mainly wants to gain profits as well
as satisfy the needs of the customers in order to gain their trust. The company also
aims to gain a competitive advantage in the market by selling high quality products
based on the needs of the customers.
Mission – A mission statement describes what an organisation is and the reason
why it exists. Besides this, the mission statement also describes the primary customers
of the company and the products as well as services offered by it. The mission of the
respective business is to make it possible for its clients to order in advance. The primary
customers of the business are young people who are conscious about their health as

well as diet. Fit Food Creation aims to make the best quality meal boxes available to
the customers.
Key to Success
All companies aim towards becoming successful and generating large amounts
of profits. And there are different ways by which they can gain success within the
market (Obschonka, 2016). The key factors to success for the respective company that
are identified by the COO are explained below -
Personalisation - The company will offer the option of personalisation in their
app, wherein the customers will be able to create their own cheat meal.
New technology as well as features will be implemented in the app as well as
on on the website of the business as this will help in attracting new customers.
Maintaining good and lasting relationships with the customers is another key
factor that will contribute to the success of the company and help it in gaining a
competitive advantage in the market.
High quality products – All the meals prepared by the company will be of high
quality and the ingredients will be obtained from local producers. The diet box meals
that will be offered by the company will be high in protein and low in carbohydrates.
Services will also be offered through mobile app as well as online website so that
the company will have a high reach among customers.
Research and Identification
In this stage, the COO of the company will make sure that proper research is
undertaken (Qian and Jung, 2017). A budget is developed and it will be made sure that
the research is conducted within the same. By conducting proper research, the
business will be able to attract a greater number of customers and understand their
needs in an effective manner. The overall expense of the company will be set up by the
COO and along with this, primary and secondary research will be conducted in order to
analyse the market and latest trends. The survey which will be conducted, will help the
company in identifying the needs of the customers as well as the feedbacks which they
might have. In the next coming years, the company will be able to attain its goals and
objectives. All the queries of the customers will also be resolved in an appropriate
manner.

Budget and People
Budget is one of the major components for the company and can be defined as
an estimation of the revenue as well as expenses over a period of time. A budget
ensures that the company always has funds available in order to conduct its business
operations smoothly (Ruškytė and Navickas, 2017). The COO of Fit Food Creation will
develop the budget by taking into account the needs of all the departments in the
company. It is important to keep the budget at high priority because it will ensure that
the business has funds available for different activities. Key people for the company will
include the dietician, suppliers, gym trainers, investors etc. These people will ensure
that the business operations are conducted in an effective manner. Therefore, it is
important to involve these key people when developing the operational plan.
Financial plan of Fit Food Creation:
(A)Operating income Amount Total
Sales of diet food box quarter
1
100000
Sales in quarter 2 150000
Sales in quarter 3 175000
Normal food sales 50000
Total operating income 475000 475000
(B) Non operating income
Interest received 25000
Income from other sources 15000
Total non operating income 40000 40000
(A + B )Total income 515000
Expenses
(C)Operating expenses
Rent 5000

(A)Operating income Amount Total
Salary to food staff 150000
Expenses of managing stock 2500
Insurance 6000
Electricity 3000
Advertisements 4000
Shipping and delivery 2500
Maintenance& repair 3500
Interest charged 1000
Travel 2500
Total operating expenses 180000 180000
(D) Non operating expenses
Amortization 2200
Depreciation 2000
Settlement related with suits of
law
800 5000
(E) Total expenses 185000
Net income (A – E) 330000
Communication
In order to build a business that is successful as well as profitable, the respective
company will make sure that all the departments work in coordination with one another
(Mahmoud, Abou-Shouk and Fawzy, 2020). This will help it in reaching a common goal
and enhance overall performance. The key people within the business should
understand the importance of the operational plan as well as effective communication.

Ensuring regular and clear communication among the employees as well as with the
customers, will make sure that the goals and objectives are achieved.
Therefore, developing and implementing a strong operational plan will will allow
the COO of the company to manage the day to day operations effectively. Apart from
this, he will also be able to ensure an increase in the overall efficiency as well as attain
a competitive advantage in the market.