Entrepreneurship and Innovation Projects: Business Plan for Sport Shoe Customization
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This report focuses on entrepreneurship and innovation projects, specifically on developing a business plan for a new venture in sport shoe customization. It includes analysis of business ideas, production and marketing feasibility, financial techniques, and a detailed business plan.
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PROJECTS ENTREPRENEURSHIP AND INNOVATION
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Table of Contents INTRODUCTION...........................................................................................................................3 TASK 1............................................................................................................................................3 1.2 Own entrepreneurial skills and attributes.............................................................................3 1.3 Evaluate what makes a successful commercial or social entrepreneur.................................3 TASK 2 OF 3...................................................................................................................................4 3.1- Analysing business ideas......................................................................................................4 3.2- Evaluating production, and marketing feasibility of new business ideas.............................5 3.3.................................................................................................................................................6 4.1 Developing a business plan for a new venture.......................................................................9 4.2 Developing a control and monitoring mechanism for business plan...................................14 CONCLUSION..............................................................................................................................14 Reflective Essay.............................................................................................................................15 REFERENCES..............................................................................................................................16
INTRODUCTION Entrepreneurship is defined as an ability of individual person, which enable them to develop, effectively organize and run a venture enterprise in effective manner. This ability plays significant role in the context of organizational growth and success, that an entrepreneur, effort to establish and run in the world of business. While, innovation refer to strategic element that enable entrepreneurs able to reach desire outcomes in form of developing a new venture. The current assignment will be based on specific business idea such as sport shoe customization. The study will explain analysis of business ideas, production & marketing feasibility of three business ideas and business planning forecasts using financial techniques. Furthermore, the report will also specify development of a business plan based on chosen idea, control and monitoring mechanism for the same. TASK 1 1.2 Own entrepreneurial skills and attributes Entrepreneurship skills are the ability of an individual to take crucial decisions in tough situation and increase benefit for their organization. While being an entrepreneur refers to startingandbuildingtheownbusiness.Also,peoplewiththeskillsexpandwithlarge organizations as well. In my terms the entrepreneur skills are such Adaptability, to adapt the new changes and get to learn with those changes and adapt them as respectively in working culture (Bergerandet.al.,2021).Theabilitytolearnsomethingnewisimportantaspectfor understanding the basic requirements and process of business which leads to success. Work ethic is the another skills where I prefer working with willingness and provide hard work to each task to be performed. For running the business there are many challenges to be faced and willingness of work and hard work bring the best outcomes for facing those challenges. Communication skills also plays major role in for discussing the views, ideas and vision for business plans with individuals. For setting up the business the strategy is need to be powerful and unique to take business to high growth level. 1.3Evaluate what makes a successful commercial or social entrepreneur Commercial entrepreneurship focus on the break through and the new requirements, for this opportunity would be huge and growing size of the market and the industry may be structurally attractive. Whereas, the social entrepreneurship focus on serving the basic and long- standing needs in efficient way by the innovative approaches. In such case it would be a
recognized social need, demand , market failure is guaranteed more than the sufficient m,market size. Social entrepreneurs believes in the theory of change and related to organizational model in order to meet the needs in superior way (Chen, 2018). Their scope is broad as because e they can pursue ventures which is financially self-sustaining with the requirement of donor subsidiaries. Successful social entrepreneur not only has the good idea, but they have the practical knowledge of business and convert the ideas and views into the reality. They concern the market demand, researches, resource and restriction, finance and such opportunity in their respective community and country. While both commercial and social entrepreneurship are important for the society and it generates the social impact which is important for the society by various aspects. In some cases their goal are similar, commercial entrepreneurs are try to fulfil the requirements of the people such as offering the superior products and services. Further they follow-on passion and work for it as well as make the better life for people. A better commercial entrepreneur with good work ethicscanprovidethepositiveoutcomestothesociety.Withtheuseofinternetthe communication is more convenient, also it has embossed the global economy. They both are similar with their entrepreneurial process with focusing on opportunity and vision (Singh. and Gaur, 2018). Secondly, seeking outcomes are focused by both commercial and social which can be measured and quantified. Third, the common term is both belongs to same field which is entrepreneurship. FurthertherearethethreebusinessideasusedsuchasPantbasedmeat,SportShoe Customization and Disposable Paper Pee Bags. TASK 2 OF 3 3.1- Analysing business ideas. Business ideas 1- Plant based meat The current business idea is effective and useful because individual person in today's period, prefer to eat healthy, but still tend to stuck with the taste, which is possible for them to do so (Broad, 2020). They will purchase plant based meat, that is full or nutrition, and high protein, with good taste. Business ideas 2- Sport shoe customization The current concept is one of the best business ideas that in turn provide unpredictable benefits to stakeholders or investors. As individual person in the recent time prefer to purchase
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those products that are customized and expect to buy the same (Kute and Pido, 2022). They follow trends and influenced from social media influencers, who are able to drive their attention toward adopting, specific trend. Business idea 3- disposable paper pee bags This idea is suitable in the recent time, because number of people prefer to travel the world, especially women, who are facing to use toilet during this period. In that case, this idea is suitable for everyone, but especially female's (Luchese, Engel and Tessaro, 2021). According to this idea, individual person will keep a paper pee bag into their pocket and bag, easily and use when it is required, which help them to maintain their hygiene. 3.2- Evaluating production, and marketing feasibility of new business ideas. Business ideasProduction feasibilityMarketing feasibility Plant based meatIncaseofcurrentbusiness idea,itisessentialfor administrationtoconduct appropriateproductionand marketing feasibility, which in turn provide benefit to them in term of business ideas' success (Herandet.al.,2022).They willmovetomake arrangementofappropriate resources,andplanningfor themsame,suchassoya, beans wheat gluten, etc. Forpurposeofmarketing feasibility,porter'sandother models will apply in case of this business idea.
Sport shoe customizationTheproductionfeasibility includes stages of production and utilization of raw materials andotherresources.Itwill movemanagementaheadin formofconductingmarket research in systematic manner, byusingspecificstrategic conceptorapproach,and selectingamodeof transportation. Furthermore,inorderto conductmarketingfeasibility inthecontextofthisidea, industry competitiveness is the best techniques, which enable marketerandother stakeholderstoidentifythe extenttowhichcompetition levelinthespecificmarket (ManufacturingFeasibility Study,2022). It is essential for them to know more about the samethinginappropriate manner,intermofusinga strategic model such as porter five forces (Budiarty and et.al, 2022). Disposable paper pee bagsTheproductionfeasibilityin the context of current business idea is possible, as it drives the concentrationofentrepreneur towardusingfewresources such as paper bags, etc. Marketing feasibility term will drivetheirattentiontoward considering more factors, such asexistingorganizations marketingtactics,pricing strategiesandproduction procedures, that affect the way they will plan to take decision andproceedwithspecific business idea. 3.3 Financial techniques refer to the techniques which help to the organization to make prediction about business planning (Were, Greggio, Giambastiani, 2020)
For“shoe nicks”organization which is planning to draw a new business, it has decided to make new customized shoes. With this regard a projected budget is prepared as-for making the projected budget some aspects such as performance of market and industry are taken into consideration. Projected budget for the year----- componentsBudgeted amount(in euros) Sales per year1000000 Raw material150000 electricity15000 Daily wages50000 commission7000 Delivery charges12000 refreshments1000 Freight out6000 carriage30000 Packaging charges29000 Variable expenditures300000 Plant and machinery50000 Salary (15×12000)180000 rent150000 insurance5000 Phone services2000 Car lease payment50000 Financial cost23000 Fixed expenditures470000
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Total expenditures770000 Projected profit for the year230000 From the projected budget it can be forecasted that the business plan is quite feasible since the all components of the budget are showing their positive inclination. The entity would be making great profit in the very first year of the business. As it has articulated plan of going with cost leadership approach in the market so the total revenue is looking lower. The projected profit is expected to be around 230000 euros, which is not much bigger yet it is positive so the entity may earn bigger sum in the future. Estimated or projected cash flow statement for the organization- cash flow statement is the document which shows all the flows of cash in the organization either inflows or outflows (Smith, Driver and Matthews, 2018) For“shoe nicks”the projected cash flow statement is as below- Projected cash flow statement for “Shoe Nicks” PLC at the end of the year----- amounttotal Cash flow from operating activities Net income230000 Depreciation and amortization63000 Loss on sale of equipmentnil Change in current liability and current assets Increase in current assets-3000 Decrease in current liability28000 Net cash flow from operating activities-262000 Cash flows from investing activities Capital expenditures-23000 From sale of equipment21000
Net cash used for investing activities260000 Cash flows form financing activities Issuing debentures200000 Interest paid-177000 Net cash from financial activities23000 Net cash flows during the year100000 Cash at the beginning10000 Cash at the end of the year110000 The projected cash flow statement of shoe nicks is showing that there will be favourable position on cash for the entity in the year. The operating performance of the entity is looking satisfactory since it is showing good amount of cash inflows but there may be difficulties or risk due to unsatisfactory performance of investing and financing activities. The organization is striving to make entry in the market with intensive efforts and being a medium-sized entity having sort of issue of competition. Herespecificallyinvestingactivitiesareforecastedtoperformpoorlyforthe organization. Yet financing activities may show positive performance so on the basis of the projected cash flow statement it can be estimated that there is rigorous demand to pay attention on the factors of cash management. 4.1 Developing a business plan for a new venture. Overview- Sport shoe customization as a new business idea will obtain unexpected success in the market, recently, because individual person prefer to customize products, according to their needs and trends. In the recent time, they want to make a print on their shoes, of favourite sport
symbol and other unique features, that give them a new look. The overall process of chosen business idea implement under a name of specific organization and that is shoe nicks. Vision- The vision of Shoe Nicks is to gain competitive advantages in form of gaining customers attention and retaining potential buyers, with purchase of customize sport shoe. Mission The mission of Shoe Nicks is to generate revenue, increase profitability and build wide customer base, in the UK retail market. Business objectives. To generate revenue up to 60% within 2 years. To build wide consumer base up-to 50% within 3 years. To become a competitive shoe brand in 3 years. Description of product- For purpose of sustaining venture in the competitive business world, each and every organization had conducted a lot of efforts, which driven their attention toward trend analysis. Sport shoe customization is the leading trend which drive the attention of entrepreneur toward starting a new venture named Shoe Nick, through which they will take order from customer and identify their needs. It will drive their concentration toward using all the recyclable materials and laser print technology that aid to design a print on shoe according to buyers demands (Laser Engraving on Shoes and Boots,2022).Laser Engraving is the best technique that management will prefer to used to customize shoe. Production feasibility- The chosen business ideas is technically and practically feasible in form of production, that aid to enhance customer satisfaction and meet their requirements. Production feasibility includes a lot of details about production and customization of sport shoe, in the market that fulfil the need of target audience and contribute to enhance their satisfactory level. The idea implementation in practical manner is possible, because of resources accessible such as human resource, raw materials, transportation sources, location and technology such asLaser Engraving (Kalantari, Johnson and Perera, 2021). The process of shoe customization and then production, also specify the feasibility of manufacturing goods, which entail key stages and these are; Initial planning stage-
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The process of manufacturing and customizing sport shoe begin with the stage of planning, which will drive the attention of Shoe nicks toward, making an important discussion in the context of product that they will plan to produce (Marion and Fixson, 2021). Management will make discussion about how and what need to be considered as resources to manufacture customize sport shoe that gain the attention of potential customers. Product development phase- After developing plan to customize and produce sport shoe, administration will move toward further stage such as current one. According to which, they will start developing and customizing shoes that meet target audience needs. This phase, encompasses some essential activities like team formation and role as well as responsibilities division, that drive the attention of individual person toward success of new business idea. Product testing phase- After manufacturing and customizing sport shoes, entrepreneur will take further steps such as to test product that their production team manufacture, on the basis of customers needs. It will contribute to identify or analyse the effectiveness of item that meet individual need. For purpose of customize sport shoe testing, firm will take initiative to invite some people who will wear shoe and then provide their reviews regarding the same. It is valuable and useful for Shoe Nicks, thus it will provide them direction or guidance about what they will add in form of adding value. Commercialization- Planning,productionandtestingstagesenableentrepreneurtomovetoward implementation of final phase such as commercialization, which enable them to commercialize sport shoe that they will manufacture and customize according to buyers need. Marketing feasibility- PESTLE Analysis- Political factor- Political stability in the UK, may put positive impact on Shoe Nicks that will plan to establish new business in form of manufacturing customize sport shoe for customers. It may affect positively in form of increasing profitability and productivity. Economic factor-
Economic growth, employment rate and other economic factors may put positive impact on success of new business idea (Kim and et.al., 2021). As it may affect in form of increasing demand and supply of good, which may provide management pleasure of generating revenue, more than their expectation. Social factor- Change in the context of market trends, customer preferences, and buying behaviour may also affect positively in form of driving the attention of organization toward a trend that it already consider and proceed with that.It will plan to manufacture customize sport shoe. Technology factor- Technology advancement may put similar impact on Shoe Nicks like other external factors, in form of designing and creating the best laxer print on each pair of shoe. The process begin with consideration of target audience need and especial requirement. Legal factor- This factor may put adverse impact on Shoe Nicks new business idea in form of increasing work pressure on management about making some change according to new rule in regard to sustainability, and other functions of a venture. Environmental factor- This factor may affect positively as organization will plan to initiate sustainable practices in form of using recyclable resources or raw materials that will do not impact negatively upon any environmental factors such as land, water, air, etc. SWOT analysis- Strengths- Skilled and experienced workforce is one of the biggest organizational strengths, that enable firm to gain competitive benefits in the future when the idea is implement into practical manner (Benzaghta and et.al., 2021).Another strength that Shoe Nicks will use to reach desire outcome is good funding source, that will use further. Weaknesses- Lack of market analysis and research is the biggest weaknesses that Shoe Nicks may has, that may put negative impact on its venture success in the market. Another weakness that effect similar term is lack of online existence. Opportunities-
Advancement of technology and online shopping behaviour of customers, drive the attentionofentrepreneurtowardgainingfurtherbenefits.Itwillcontributetoincrease profitability and productivity, which is quite essential for Shoe Nicks to do so. Threats- Changes related to regulations, rules and policies may put direct impact on Shoe Nicks in form of decreasing operational effectiveness such as production of customize sport shop. This impact may affect only for short term period. Porter's five forces- Bargaining power of customers- The degree of this force is low, as customers may do not have any alternative products or resource of customize shoe, that impact buying decisions. It will put positive impact on success of new business idea, in form of increasing profitability. Bargaining power of suppliers- The extent of this force is low, because number of sustainable suppliers accessible in the world of business that tend to work with a progressive and productive company, whether it is existing or new. It will impact new business in positive manner in form of reaching to target market quickly. Threat of new entrance- The degree of this force is also low, because the requirement to enter into retail industry is not possible for any company to fulfil in appropriate manner. It will impact in positive manner upon Shoe Nicks, in form of building great brand image in the market. Threat of substitute products- The threat of substitute goods is also low, because the accessibility of customize sport shoes is less. It will drive the attention of company toward gaining customers attention in appropriate manner. Competition between existing companies- The competition level within retail industry is high, which may put negative impact on new business idea, when it will do not conduct strategic practices in form of satisfactory customize sport shoe production. It impacts negatively, but in short time period. STP- Segmentation-
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For purpose of segmenting market, Shoe Nicks will take approach to target people by using demographic, and behavioural segmentation strategies, which drive their attention toward segmenting individual on the basis of age, income, behaviour, interest, gender, etc. as all. Targetting- In order to target customers, management will initiate to use differentiation targetting strategy, which enable them to customize sport shoes for male and females, and their needs, that is different from each other (Cortez, Clarke and Freytag, 2021). Positioning- For positioning, they will take approach to develop the best slogan and digital marketing platforms that impact customers mind in positive term. It will aid to gain their attention toward placing order of customize sport shoes that meet individual need. 4P's of marketing mix- Product- In order to obtain desire outcomes and achieve key objectives of new business, it is essential for management to focus on using and planning for collecting recyclable raw materials. It will aid to build wide customers base in effective manner. Price- Cost leading pricing strategy is the best that Shoe Nicks will take approach to used to offer product to customer and retain them for longer. It will help to achieve key aim and objectives of company. Place- For purpose of retaining and acquiring new customers, management will take initiative to start their new venture in the UK, in form of selecting a specific location in mind of the state such as London, where extent of population is high. Promotion- In order to promote venture in the UK and across national boundary, organization will approach to use digital and traditional marketing channels such as social media, holdings, bill board, templates, etc. This will provide firm benefit in form of increasing profitability. Organizational feasibility- Under organization feasibility study, the structure, number of employees and their roles are included. Shoe Nicks and their stakeholders will take approach to use flat organizational
structure, and also take decision to hire 15 employees, who are able to meet customers need and identify the same. 4.2 Developing a control and monitoring mechanism for business plan. In order to control, employees performance related to new business plan, management will initiative to provide them directions and guidance. They will also effort to make important discussion with them on weekly basis, that effectively control their performance and drive the same thing toward success (Ngure, 2022). Furthermore, for purpose of monitoring business plan, they will analyse and identify the progress of work, which is essential for them to do so. It will give them direction about moving ahead toward success and growth in the competitive market, where different types and size of companies accessible. Monitoring and controlling practices will in turn provide key benefit to Shoe Nicks in term of increasing sales. CONCLUSION On the basis of above discussion, it has been concluded that organization achieved its strategic aims and objectives in appropriate manner by using the best and most effective resources. It reaches desire outcomes in form of using each stage of production process and considering factors, including internal and external. Furthermore, from above study, it has been identified that management monitored and controlled business plan success in term of using the best approaches such as KIP, training and development, etc. It also gives tough competition to other brands in form of customizing sport shoe, by following trend in the market. Reflective Essay While preparing this report I get to know about my strengths and weakness, as well as while discussing the entrepreneur skills I learn about their importance and what kind of skills are required. Also, I get to know that such skills are required and useful while setting up the business activities. Accordingly, I got to know that adaptability and ability to learn new things are major strengths which I applied to my daily habitual routine as well. Also, I paid attention to my communication skills which also plays the major role in communicating with different kind of people. I learnt proper communication brings confidence and it is easy to share the view and ideas with people in working culture. I analysed some weakness such as poor time management, decision-making, and lack of flexibility.
For poor time management I found out that my management of time was not proper asd in the working criteria, delaying in such activities, and not having the clear goals for what is to be done and it was decreasing the overall productivity. For converting them into my strength I started to make division of work and make habit of scheduling the work and improved on day to day basis top changer it from weakness. I analysed taking longer breaks in work consumes more time while more time is given to work rather than taking breaks. Also, the management of time makes habit of working fast an it is easy to achieve the goal or targets. With poor managemt the demotivation coms first but managing the time resolved the issues of stress and work load. In my other weakness of lack of flexibility I think making strong support to network and staying calm in the positive aspect of flexibility and for improvement of flexibility it is necessary to take part in new learning in order to get out of comfort zone. For my poor decision-making I learn that making the plans first is essential in decision-making and after that taking the command in hand for making useful decisions which brings the efficiency in better outcomes. Also, I learnt that in case of any issue it is better to take an advise from expert in such situations. Whereas for better part setting deadlines is important where te work will be effective and useful. I applied this in my poor decision-making which came up with the better result in my process.
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