Entrepreneurship Development: Value Proposition, Lean Business Canvas, C Level Specialist

This document provides insights into entrepreneurship development, focusing on topics like value proposition canvas, lean business canvas, and the role of a C Level Specialist. It discusses customer engagement plan, CIO marketing strategy, and the financial and financing plan for a venture. It also explores the reasons why investors should invest in a venture.

Entrepreneurship
Development

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
VALUE PROPOSITION CANVAS...............................................................................................2
Customer Value Proposition Canvas...........................................................................................2
LEAN BUSINESS CANVAS.........................................................................................................4
Business canvas model................................................................................................................4
C LEVEL SPEICALIST..................................................................................................................6
Customer engagement plan and CIO marketing strategy............................................................6
FINANCIAL AND FINANCING PLAN........................................................................................7
Financing plan.............................................................................................................................7
SUMMARY.....................................................................................................................................8
Why should investors invest in venture.......................................................................................8
REFERENCES................................................................................................................................9
APPENDIX....................................................................................................................................10

INTRODUCTION
The online tailoring services provide an idea of tailoring and also provide an assistance to
the people to give their order online and then the firm would send their employees to their home
to take measurements (Lacoste, 2016). This create a monopoly and also provide an innovative
idea to provide a great ease of convenience among the large group of customers. This assure the
giant number of clients by providing good quality of cloth and generate maximum customer
satisfaction. The firm aims to gain positive reputation across the globe and also it would generate
greater profit because there are few customised tailors in UK. Also, its objective is to deliver best
and efficient services that helps in boosting the sales and profit of a company.
The major role of Chief Information Officer is to maintain information related to policies
and procedures that aims to satisfy all the applicable requirements. It is also engaged in
maintaining good relations with the investors and several investment policies so as to maintain
smooth operation of a business. The CIO is responsible for handling various investment
portfolios regarding the tailoring services and also decides that how much amount of funds
would be invested towards business. The CIO also hire an effective staff that have a good
experience and assign the role and responsibilities among the staff so that they could work with
greater efficiency and zeal. This increases the efficiency and productivity of an organisation and
also promote success within an organisation. As online tailoring services provide good quality
products and achieve a significant position across the globe.
From the appendix it has been analysed that in the first year of online tailoring services
the business earns a profit of pound 30,000 and makes total revenue of pound 100,000 which
would make the total profit margin that is equalised to pound 20,000 orders per year. The profit
in second year of online tailoring services could be 95,000 and its revenue is taken as pound
346000 and total profit margin for twelve months is 30000 orders per year. The profit for third
year in respective firm is regarded as pound 120,370 and its revenue is considered as pound
350,000 and total profit margin in case of third year is 54,000 orders per year (Eggert and et.al.,
2018). This report covers value proposition canvas that aims to satisfy the needs of clients in an
effective manner and also it includes lean business canvas and the role of chief marketing officer
in an organisation. this report also covers the overall financial and financial plan of a company. It
also includes the short summary that various investors invest in venture in an effective and
efficient manner.
1

VALUE PROPOSITION CANVAS
Customer Value Proposition Canvas
It is described as a process of marketing segment that focuses on specially targeted to the
group of customers (Biloshapka, Osiyevskyy, and Meyer, 2016). In other words, it is
considered as a milestone for providing effective goods and services by satisfying the
requirements of clients. One of the advantages of value proposition canvas is that it helps to
analyse actual requirements of customers and the factors that can help to meet them. Main
purpose of formulating customer value proposition canvas is to analyse the factors that may
create gains for business, the elements that may result in pains for business etc. It consists of
three elements that are presents as follows:
Figure 1 Customer Value proposition
Sources: value proposition, 2019
2

As the right side of customer value proposition is filled by ascertaining the requirements of
customers and their behaviour towards rendering the services. In the job section, it is done to
fulfil the criteria of customers by delivering excellent services as the concerned firm deals with
new and innovative technology. Here, pains consist of bad experience of clients or the risk that is
associated with a company. There are chances of using bad quality of clothes or not making
delivery in a proper time which create a negative impression of people towards the concerned
firm. In case of gain, Online marketing services tries to provide an advantage to the customers by
providing assurance of good quality of cloth and take their measurements at their home directly
so as to gain satisfaction of large group of individuals in an effective and efficient manner.
Clients have to just place an order online and everything is to be done by employees of company
as this adds value among the users.
The second part of Value proposition discusses the design of product or services that
aims to satisfy the requirements of customers. In case of product or services, the company
provide the facility of online services of tailor and provide the facility of home delivery so as to
provide greater sense of comfort to their customers. Also, they have option to choose material
and measurement is done at their homes and also discount coupon is provided to them. Gain
creators provide an easy access to their customer as they have to place order and then
measurement is done at their home by employees as it saves time and provide a greater
convenience to their customers. The third section consist of Pain killers help in evading the
inconvenience on part of customers by providing quality specifications at an affordable price.
The cost structure would depend on the quality of cloth that customer wants and also depend on
the size. The company is using various promotional websites such as social media marketing to
gain large number of awareness among the customers at different parts of the country.
Value Proposition Canvas presents a combination of various products or services so as to gain
maximum customer satisfaction as the Online tailoring creates a monopoly in UK which creates
a value among the group of customers and provides an effective solutions to their problems in an
efficient manner. Both the portion of value proposition is are interlinked to each other because
3

every part is closely related to each other such as: products or services provide jobs to their
clients, Pin reliver erases the pain of customer and third one that is gain creators provide an
assurance of gain. This aspect is regarded as most important as it help to fulfil the requirements
of customers at a global level.
LEAN BUSINESS CANVAS
Business canvas model
It is a type of model which is used by organisations for the purpose of categorising
different elements of business. Main purpose of it is to aware all the internal as well as external
stakeholders about the business idea and the key areas of business. With the help of it large
number of investors could be attracted by a new venture. It is very important for the management
to make sure that detailed information of business should be mentioned in it so that possibility of
acquiring funding could be enhanced (Afolabi, 2015). As a new business of intercultural idea
which is online tailoring services will be launched in the market therefore for the founders it is
essential to develop a business canvas model. It will help to provide detailed information of
business to the potential investors. There are nine different elements of it which are discussed
below in context of the new venture:
Key partners
 suppliers
 Owners
 Delivery
man
 creditors
 investors
Key activities
 Receiving
online orders
 Sending
employees to
customer’s
homes
 Delivering
orders
 Marketing
Value
proposition
 customer
with the
any age
can
where
clothes
and
order for
this
online
business
 All the
Customer
relationship
 cheap
prices
 Discount
coupons
 quality
products
in cheap
prices
Customer
segment
 suit for
all kind
of age
group
 fit to
the
body
 customi
zed
clothes
made
with
Key resources
 Funding
 Assets- land,
Distribution
channel
 online
4

building and
other
equipment
 raw material
 human
resource
clothes
will be
stitched
accordin
g to the
choices
of clients
website of
this
business
 advertise
ment on
social
media
hands
Cost structure
 Cost of the clothes will be according to
the material customers want. It will also
depend on the size and measurement
 Salaries to staff
 Rent
 Stitching machines
Revenue stream
 selling of cloths
 online booking
 advance charges
 more development and changes in the
cloths.
Key partners: These are the key individuals who will take part in the decision making of
the business. It is very important for all the organizations to make sure that opination of the key
people is focused so that growth of business could be assured. For the new online tailoring
business some of the key partners will be investors, creditors, suppliers, owners and delivery
men. Opinion of all of them matters for business as it will help to establish the new venture
successfully (Chidiebere, Iloanya and Udunze, 2014).
Key activities: For all the new businesses it is very important to decided the key business
activities which will be performed in upcoming period so that effective strategies for them could
be formed. Some of the key business activities for online tailoring business are allowing
customers to order online, sending tailors to their homes to take measurements, marketing the
business and delivering all the order to customer’s door step. In order to perform all of them it is
very important for the management to formulate effective strategies.
Key resources: For all the new business it is very important to determine the key resources
which will be required to carry out all the operations. Afterwards, all of them should be arranged
so that desired goals could be accomplished. Some of the key resources for new tailoring
business are funds, raw material, assets and human capital.
5

Value proposition: It is one of the main elements which should be focused by new
ventures. For online tailoring business it is stitching clothes according to requirements of clients
and providing services to all ages of customers.
Customer relationship: For all the new businesses it is very important to make sure that
good relationship with customers are established to retain them for long period. The key
elements which will be focused by online tailoring business are lower prices, discount and good
quality (Fortunato and Alter, 2015).
Distribution channels: In order to establish a new business successfully this element should
be focused by all the entities. For new online tailoring business these are online website, social
media etc.
Customer segment: The clients that are targeted by an organization to carry out business
are known as the part of customer segment. In order to establish a business successfully it is very
important for online tailoring business to select them appropriately. The customer segment for
the venture are individuals of all ages from middle and upper class.
Cost structure: For the purpose of performing all the operations successfully it is essential
for businesses to determine all the costs. Some of them which are related to online tailoring
business are cost of material, salaries to staff, rent and purchasing price of machines.
Revenue stream: It is the combination of different areas from where revenues could be
generated. Some of the revenues streams of online tailoring business are online bookings,
advances, selling of clothes etc.
In order to carry out operations of new online tailoring business it is very important for
the managers to pay attention towards all the above-mentioned points. By considering all of them
for the formulation of business strategies the online tailoring venture will be able to establish
itself successfully. As it is a new venture therefore it is essential for it to clarify all the key
elements of business to the investors to acquire funding (Gwija, Chuks and Iwu, 2014).
C LEVEL SPEICALIST
Customer engagement plan and CIO marketing strategy
One of the job role of Chief Information Officer is to responsible for handling all the
information related activities. It can facilitate smooth operation of a business (Teoh, and Chong,
2014). CIO reports the daily activities to the chief executive officer as it is responsible for
6

handling different operations of the entity and also prepare appropriate policies and it emphasise
to generate more sales and thus increase the profit margin of the company.
As a CIO of online tailoring services, the major thing is to set the clear vision and goal of a
company. The aim is to provide timely delivery of goods so as to gain maximum customer
satisfaction. The essentials traits in a leader includes calm and patience so as to handle every
problem in an understandable manner. It is mandatory to set a strict code of conduct so as follow
systematic working in an organisation. the concerned firm uses new and advanced technology so
as to provide effective and immediate solutions to their clients. The firm uses various social
media platforms such as Facebook, Instagram and so on to promote their products among the
large group of customers. It helps in creating brand awareness and to generate large number of
customers from different part of the country. The key resources that require huge sum of
investment includes raw materials, land and building and various other equipment’s and so on.
The distribution strategy used by the company is wholly online and its respective websites. The
most important aspect that is its cost structure. It includes the cost of clothes depending upon the
requirements of customers that they want. The cost also includes the size of cloth and
measurement charges and various other charges so as to gain greater access of customers across
the globe. It also consist of other streams that includes advance charges and other development
cost which is included in the overall cost structure of a company (Payne, Frow, and Eggert,
2017). The benefit provided by the company is that it is suited to all kinds of age group and
provide quality products at cheap prices so as to gain maximum customer satisfaction. The
various partners associated with this strategy consist of suppliers, owners, delivery men,
creditors and investors and many more that help in conducting smooth operation of a business. It
also focuses on optimum utilisation of resources as it reduces waste and saves time and cost
operations of a business. It also provides the unique solutions to their clients and also follow the
proper guidelines by proper code of conduct and therefore ensure success in a firm.
FINANCIAL AND FINANCING PLAN
Financing plan
From the appendix it has been determined that the new venture of online tailoring will be
able to generate profits of 30000 for the first year which is the main key factor of good
performance of it. In order to carry out business it is very important for the owners to attract
7

large number of investors. For this purpose, estimated sales and profits could be shown to them
which will facilitate them to form appropriate judgement. The appendices are showing that for
the first year BEP will be around 12500 which means the new business will be required to stitch
around 12500 clothes for the first year so that BEP could be achieved. In order to reach this,
point the organisation will be required to attain revenues of 62500 for the first year. There are
several costs which will take place in future (Teoh and Chong, 2014). These are rent, material,
salaries etc. In order to meet all of them the management will be required to generate appropriate
revenues so that they can pay all the costs appropriately.
From the appendix it has also determined that total revenues for the organisation will be
around 100000 for the first year which are sufficient to carry out future operations. The sources
of funds are online sales, orders, further developments etc. The estimated profit for the year
shows that there is high possibility of successful establishment of business which will help it to
sustain it appropriately (Kurowska-Pysz, 2016). On the other hand, unique business idea will
also facilitate the online tailoring business to attain growth and execute business successfully.
SUMMARY
Why should investors invest in venture
The new business concept of online tailoring business is unique it is lean business
opportunity which will provide higher returns to the stakeholders. On the other hand, the concept
of the idea is very new which will attract large number of customers therefore it should be
selected by the investors for the purpose of making investment. There are various sources from
where revenues could be generated. With the help of it, the owners will be able to provide higher
to the investors as the level of profitability will be very high. There are several other reasons for
making investment in the business. These are attracting business concept, well structure business
model, higher profits for the first year according to appendix. These are all the main aspects
which should be taken in to consideration by the investors while planning to invest in the
business.
8

REFERENCES
Books and Journals:
Afolabi, A., 2015. The effect of entrepreneurship on economy growth and development in
Nigeria. The Effect of Entrepreneurship on Economy Growth and Development in
Nigeria. 3(2). pp.1-17.
Chidiebere, O. N., Iloanya, K. and Udunze, U., 2014. Youth unemployment and entrepreneurship
development: Challenges and prospects in Nigeria. Kuwait Chapter of the Arabian
Journal of Business and Management Review. 4(4). p.20.
Fortunato, M.W. and Alter, T., 2015. Community entrepreneurship development: an
introduction. Community Development. 46(5). pp.444-455.
Gwija, S. A., Chuks, E. E. and Iwu, C. G., 2014. Challenges and prospects of youth
entrepreneurship development in a designated community in the Western Cape, South
Africa.
Kurowska-Pysz, J., 2016. Opportunities for cross-border entrepreneurship development in a
cluster model exemplified by the Polish–Czech border region. Sustainability. 8(3).
p.230.
Teoh, W. M. Y. and Chong, S. C., 2014. Towards strengthening the development of women
entrepreneurship in Malaysia. Gender in Management: An International Journal.
Payne, A., Frow, P. and Eggert, A., 2017. The customer value proposition: evolution,
development, and application in marketing. Journal of the Academy of Marketing
Science, 45(4), pp.467-489.
Eggert, A. and et.al., 2018. Conceptualizing and communicating value in business markets: From
value in exchange to value in use. Industrial Marketing Management, 69, pp.80-90.
Biloshapka, V., Osiyevskyy, O. and Meyer, M., 2016. The value matrix: a tool for assessing the
future of a business model. Strategy & Leadership.
Lacoste, S., 2016. Sustainable value co-creation in business networks. Industrial Marketing
Management, 52, pp.151-162.
Online
Value Proposition. 2019. [Online]. Available through:
<https://www.linneinnovation.com/en/en-blog/79-methods/114-value proposition.html?
highlight=WyJkZXZlbG9wbWVudCIsIm1ldGhvZHMiLCJkZXZlbG9wbWVudCBtZXRob2RzI
l0=>
9

APPENDIX
Primary and secondary research:
Market size: The market size of tailoring business is very large but as the new online
tailoring business is new to the market therefore a small segment will be selected to launch its
services.
Market growth: The growth of tailoring businesses is very high and it is estimated that new
tailoring business will also attain growth in future.
Customer preferences: The main preferences of customers is to get designer and trendy
clothes which will be fulfilled by new online tailoring business so that it can attain growth.
Segments: The market segment selected by the entity is small. Suit for all kind of age group
will be made by new online tailoring business. All the clothes will be customized and made with
hands.
Segment size: The segment size is small as the business will be launched in a small city at
initial level and will be expanded with the progress and growth of it.
Competitors: The main competitor of the new online tailoring business is Home and Dry
which is the major player in the market.
Key partners: For the new online tailoring business some of the key partners will be investors,
creditors, suppliers, owners and delivery men.
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 55000 52000
Advertisement 5000 28000 25830
Rent of building 5000 28000 21800
Fixed costs
Machines 20000 60000 58000
Cost of material 30000 80000 72000
Total cost 70000 251000 229630
Revenue stream:
10

Particulars 2020 2021 2022
Selling of clothes 35000 150000 152000
Online bookings 25000 95000 96000
Advances from clients 20000 51000 52000
Further developments 20000 50000 50000
Total revenues 100000 346000 350000
Break even analysis: It has been estimated that cost of one designer cost will be around 5
pounds and in first year 20000 clothes will be designed. So, the calculation of BEP is as
follows:
BEP (In units) = Fixed cost / contribution per unit
First year
= 50000 / 4
= 12500 units
BEP in Pound= Fixed cost / PV ratio
= 50000 / 80%
= 62500
Second year
BEP in units
= 140000 / 7.83
= 17880 units
BEP in Pound
=140000 / 67.92%
= 206125
Third year
BEP in units
= 130000 / 4.64
= 28017 units
BEP in Pound
=130000 / 71.53%%
= 181742
Calculation of contribution:
11

Formula = Sales – variable cost / total units
First year:
= 100000 – 20000 / 20000
= 4
Second year:
= 346000 - 111000 / 30000
= 7.83
Third year
= 350000 - 99630 / 54000
= 4.64
Calculation of PV ratio:
Contribution / sales *100
First year:
= (100000-20000) / 100000 * 100
= 80000 / 100000 * 100
= 80%
Second year
= (346000 – 111000) / 346000 * 100
= 235000 / 346000 * 100
= 67.92%
Third year
= (350000 – 99630) / 350000 * 100
= 250370 / 350000 * 100
= 71.53%
Cash flow analysis:
Particulars 2020 2021 2022
Receipts
Selling of clothes 35000 150000 152000
Online bookings 25000 95000 96000
Advances from clients 20000 51000 52000
Further developments 20000 50000 50000
12

Total receipts 100000 346000 35000
Payments
Salaries to staff 10000 55000 52000
Advertisement 5000 28000 25830
Rent of building 5000 28000 21800
Machines 20000 60000 58000
Cost of material 30000 80000 72000
Total payments 70000 251000 229630
Cash at the end 30000 95000 120370
Sources of finance Amount Usage of finance Amount
Selling of clothes 35000 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 30000
100000 100000
13