Lean Start-up Method for Guided Virtual Tour Business: A Detailed Development Plan

This report discusses the business objectives, value creation, customer value proposition canvas, lean business model canvas, detailed development plan, and critical evaluation of plan for Guided Virtual Tour Business using Lean Start-up Method.

ENTREPRENEURSHIP
DEVELOPMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Business Objectives ....................................................................................................................3
Value Creation ............................................................................................................................4
Customer Value preposition Canvas............................................................................................4
Lean Business model canvas.......................................................................................................6
Detailed development Plan..........................................................................................................7
Critical evaluation of Plan ........................................................................................................10
SUMMARY...................................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
APPENDIX....................................................................................................................................13

INTRODUCTION
Lean Start up refers to the method that is used to introduce new product or
services in the market. The product or service is developed on the basis of customers
desires in the market. Isolation of people due to the impact of Covid-19 increased desire
of people to travel and explore the world. Guided virtual tour will help people to
experience new travel experiences from home innovatively. Lean start up methods
majorly focus on the interest of customers and information are analysed such as
customer churn, lifetime customer value and service popularity (Silva and et.al., 2020).
The business is generated to provide virtual tour services to the customer that will
create a new experience of exploring new places. The business will service with the use
of the latest technology,high range mechanization fundamentally for gaining customers
satisfaction.
Idea of Guided virtual tour is a profitable lean opportunity as the gap in the
market has increased that include difficulty for disabled people to visit tours due to poor
infrastructure and people are less likely to prefer travelling after impact of Covid-19. The
role of CEO is to provide effective plaining for the implementation o the business plan
keeping in view budget and customers interest. This report will discuss the business
objective of the organisation that will include profit, profit margin and sales revenue. It
will also discuss the value creation for the customers along with preparation of lean
business model canvas. The business development plan of the organization will also be
prepared that include marketing plan, Operational plan, Technology/Information plan,
Chief Human Resources Officer and Finance plan.
Business Objectives
Business objective of the organisation is to provide facility of tour from the home with
the use of effective artificial intelligence technology that will provide a good experience
of exploring the world (Felin and et.al., 2019).
 Profit: The objective of the organization is to gain profit from the online platform
that will provide service at effective cost. The object of profit will be achieved with
the goal of increasing the profit by effective use of resources. The three year
forecasted profit of the organization is mentioned in the table 1 of appendix.

 Profit Margin: the objective of profit margin can be achieved by reducing the
cost of the service. The profit margin is the calculation of wages of companies in
relation to its sales in terms of accounting and finance. The three year calculated
profit margin of the organization is mentioned in the appendix.
 Sales revenue: Sales revenue of the guided virtual tour can be achieved with
the objective of increase in the sale of service with the effective marketing
strategy. The company has a major goal to increase sales. It will lead to the
increase in the sales revenue of the company. Company will keep he 20%
revenue from the sales in the market. The net sales or revenue of Guided Virtual
Tour has been forecasted and calculated for 3 years to forecast the sales, the
calculations are mentioned under table 2 of the appendix.
Value Creation
It refers to the preparation of service that is useful to customers and sold in
market in order to increase. Providing valuable services to the customers in exchange
for more valuable. This concept can be used by the chief human resource management
of Guided Virtual tour (George and et.al., 2021). The value creation of company will be on
basis of new experience in terms of tour and exploring the world.
Customer Value preposition Canvas
It refers to a tool that helps the organization to analyse the needs and desire of
the customer related to the product or service provided by the company. It is prepared
oh the two building blocks that include customers profile and organisation's value
preposition. Customer profile of Guided virtual Tour include: Gain Creator: It includes a new way of experience and exploring the new places.
The company will generate income when the tourism industry are very low.
 Pain Relievers: The guided virtual tour will help the people to travel in the times
of crises where all the travelling services are restricted and destination that are
seems impossible are just one click away (Nariswari and Nugraha, 2020).
 Product and Services: It includes the goods and the services provided by
Guided Virtual Tour. It facilitates customers by providing virtual experience of
travelling from home as per the recent situation of covid -19 pandemic.

Minimum viable product
It refers to the most basic product or services that can be released in the market.
It the best approach for lean business planning. CEO of the organisation must introduce
the lowest practical service in the market and take feedback from customers in order to
develop the service in the most effective way. The minimum viable product can assist
the development team that helps the organization in taking the reviews, analysing them
and develop the service (Dyer, Singh and Hesterly, 2018). Guided Virtual tour will provide
service with minimum viable and feedback from customer will help in the development
of the services.
Purpose of minimum viable product
The development of the product with the customer's perspective is the most
effective product development and lead to the increase in the overall growth of the
company. The main purpose of creating minimum viable product is that it will help the
organization to discuss with customer in development instead of investing al the finance
in the final product. This approach lead to the decrease the risk of failure in the market
(Lahti, Wincent and Parida, 2018). It prevents the company from building or creating
Illustration 1: Customer Value Proposition Canvas

something that no one wants. It also helps the company in own understanding of
product or service offering.
Gain Creators
 A new way of experiencing tourism
 In a time when traditional tourism is suffering our platform will be a platform for
tour guides to produce revenue
 Full multimedia experience with
 Well-designed website
Products and Services
 Virtual guided tours for disabled and clinically vulnerable customers.
Pain Relievers
 A way of braking monotony for clinically vulnerable that must self-isolate
 Destinations that seemed impossible once are now one click away.
Lean Business model canvas
It refers to model of the business that focus on the problems, solutions, key
matrices and competitive advantages of company. The model is an adoption business
model canvas by Alexander Osterwalder. Lean business model canvas helps the
company to understand various aspect of the performance of the organization. It
provides an effective way to introduce the product or service in the market (Matturro and
et.al., 2021).
Key Partners It refers to the organizations that has been contributed in the development of the
business of the Guided virtual tours. The major key partners of the organisation
include tour guides IT developer and Samsung(360 cameras and VR equipment).
 Key activities The major role of the company is to provide service related to private guided
tours with the help of online platforms and digital equipments. Key Resources:Resources are need in order to offer services to the customers.
The major resource of the guided virtual tours include Human resources,

Website and Samsung 360 cameras. These resources are majorly helpful in
offering effective services in the market. Value Proposition: It refers to the value that is being provided to the customers.
The major value proposition of the organization is to decrease the gap between
the tour guides and customers. The website will build bridge and link both
parties. Customer Relation: It refers to the methods that lead to increase in the
interaction with the customers. The customer relation of guided virtual tours focus
on the feedback forms at the end of tour to develop the service, discount on
referring others to use the service and connecting with people through social
media.
 Channels: Various channels that connect the organization with the customers of
company include website, Instagram and Facebook.
Detailed development Plan
Marketing plan
It refers to preparing of strategy that promote the business service and increase
the sales of the service in the market. One of the most effective approach for marketing
plan for the Guided Virtual tour is the social media marketing. The target market of the
company is majorly youths and millennials that are majorly influenced by the social
media such as Instagram and Facebook. Advertising according to the taste and
preference of the target customers on the social media platforms will lead to the
increase in the sale of the service. Value proposition of company is to provide effective
service at effective cost (Shepherd and Gruber, 2021). The low prising service will also
help in increasing the customer engagement. Increase in the sales of service is the
major objective of the company. Increasing the customer engagement with the effective
use of social media will improve the image of company and it will also lead to the
increase the base and recognition of the organization.
The marketing approach can be prepare with the use of information related to the
customer persona. It will help the CEO of the company in better understanding of the
target market and preparing the effetive marketing planning in order to increase the
sales of the service in the market.

Operational plan
It refers to a practical document that is helpful in outlining the key activities,
functions and the targets of an organization. The Guided Virtual tour make the strategic
plan that should be supported by annual operational plan. In order to make the
operational plan the firm first will decide the level of its purpose and then set the goals
and objectives of the business. The Guided Virtual tour should plan the budgets as this
will help the firm to decide the other plans to achieve the target goals and success. The
company should make the strategic plan to fulfil the mission and the vision as it serves
as the framework for the lower- level planning (Elsayed Fayed, 2021).
The managers of the Guided Virtual tour should make the strategic plans that
means have to develop the long term strategies. This will prioritise improvement in the
productivity and the priofitability, achieving growth, improving customer services,
boosting the retur on the investment, etc. Strategic plan also requires multilevel
involvement so that the each and every level of the organization can be able to play a
significant role in planning.
Technology/Information plan
It refers to the process of planning of technocal evolution of a program that
includes the use or the new and advanced technology in order to achieve future goals of
the firm. A strategic technology plan assess the Guided Virtual tour cureent
technological strengths and the weaknesses and then also help the company to
establish a roadmap to aling technology with the business. This plan identifies the
automation and the integration of the factors that set the company apart. The
technology plan help the organization to identify and reduce the inefficiencies and
makes the work of the employees effective (Parmer, 2020). By introducing technology
plan the CEO of the firm can be able to make more thoughful and the strategic
decisions. This will also improves their ability to make the effective and revelant
decisions based on the information provided.
The technology plan can be prepared by providing clear and the brief description
of the digital output and that must consider the purpose, source data, funcitionalty, use
and the content and also its relationship to the research questions. It will help the
managers of the company to gather the relevant information of the current trends and

the changing preferences of the customers and also provides the useful and the
relevant data of the customers.
Chief Human Resources Officer plan
Human resource planning refers to the process of the systematic strategies that
are made in order to achieve the optimum use of the most valuable assests of the firm
that are the employees. In Guided Virtual tour the human resource plats an important
role as they develop better working practices by cordination with the members of the
firm. The chief human resource officer provides strategic leadership by spouting human
resource needs and plans to the shareholders, executive team,and also for the board of
directors. The HR officer of the Guided Virtual tour recruit, train and develop the staff
members and also motivates them to increase the productivity that will directly enhance
the profit percentage of the firm. The responsibilities of the HR officer also includes the
selection of the best and skilled canditates for the company so thin order to enhance the
growth and the development.
The human resouces officer facilitates proper cordination and the communication
among the team members that will lead the company towrds success and also improves
the effectiveness of the employees (Hsieh and Wu, 2019). This will also enhance the
productivity and the profitabilty and also provides the competivite advantage for the
business.
Financial plan
It refers to a step by step approach in order to meet the desired and the targeted
goals and the objectives of the business. A financial plan will act as a guide for the
organization as it identifies the income, expenses and the investments so that the firm
can be able to manage and make plans accordingly to achieve the target goals. The
CEO of the Guided Virtual tour can make the finance plan by analysisng and evaluating
the current financial status and also by preparing the budget that includes all the
revenues, expenditure, profits, losses, etc. The CEO should also develop and present
the financial planning recommendations and make the back up plans and strategies to
overcome the crisis situation.
It plays an importantant in the business as it direct impacts on the stakeholders
and also affects the fuctions and the activities of the company. The financial plan

includes the profit and loss statement and also the sale forcasting this will help the
organization to make better plans to attain the target goals and also increases the
productivity (Hosain, 2019). The Guided Virtual tour can be able to prepare the financial
plan as it is one of the vital aspect in the business in order to examine and analyse the
current financial postion. This will also helpful in building the trust of the stakeholders as
well as the customers.
Critical evaluation of Plan
The development plan includes all the planning and the strategies related to
marketing, operations, technology, information and also the finance that will lead the
Guided Virtual tour towards the success. In future the company made profits and also
achieves the growth and the desired goals as it can be able to make relevant decisions
in order to provide better services to the customers. It can be helpful in analysing the
changing trends, preferences and the demands of the consumers. It also assist the firm
to make the future developments that will provides the healthy competitive advantage
and also helpful in achieving the target objectives. In future the development of the
enterprise will be done by recruiting more skilled and talented employees so that it
contributes to the effective use of the resources and also increases the efficiency and
the profitability of the firm as well as the workers (Jurado, 2018).
It also ensures the better use of the new and advanced technology and also
provides the relevant information about the stake holders and the customers that
improves the growth and the development of the firm (Watson, McGowan and
Cunningham, 2018). It is also helpful in analysing the current situation of the market and
will also identifies the new and the existing competitors enters in the market. It
recognizes the plans and the strategies made by the competitors that will help the firm
to make the new plans accordingly to improve the growth of the business. All these
activities attract more and more customers, stakeholders, employees, etc. and leads the
organization towards success by increasing the profitability.

SUMMARY
From the above discussion it can be said that it is profitable as per the demand
and the changing preferences of the customers. After the covid- 19 pandemic situation
the preferences of the customers are changed and also they want to travel and explore
the world. It also beat the competitors in the market as it is one of the unique idea to
provide virtual tour experience to the customers. Idea of Guided virtual tour is a
profitable lean opportunity as the gap in the market has increased that include difficulty
for disabled people to visit tours due to poor infrastructure and people are less likely to
prefer travelling after impact of Covid-19. The investors and the stakeholders earns
more and effective returns from this Lean start- up as it ensures the high profits and the
returns on the investment. If the start- up never existed, the world would be worse off
because creativity holds new demands globally. The creativity and the emergence of
new ideas attract the people or the customers from the whole world. So, this new lean
start- up facilitates the customers in order to have great experience of travelling from
their home only and also they can be able to enjoy the tour just from a click. After the
impact of covid -19 the customer demands and the preferences are changed and they
prefer virtual tours instead of physical tours.
CONCLUSION
From the above report it can be concluded that the idea of the lean start up is
very profitable and efficient for the Guided Virtual Tour as it increases the productivity
and the growth of the firm. The main objective of the organization is to provide the
experience of the tour from home to the customers by using artificial intelligence.
However, it can also be concluded that the customer value preposition canvas and the
lean business model canvas help the organization to analyse the customer demand,
preferences, competition in the market, etc. It can also be concluded that the
development plan help the CEO of the company to make the new plans and the
strategies related to the marketing, operation, sales, technology, information, etc. This
will lead the enterprise towards success and can be able to achieve desired goals and
objectives.

REFERENCES
Books and journals
Silva, D.S., and et.al., 2020. Lean Startup, agile methodologies and customer development for
business model innovation: A systematic review and research agenda. International
Journal of Entrepreneurial Behavior & Research.
Felin, T., and et.al., 2019. Lean startup and the business model: Experimentation
revisited. Forthcoming in Long Range Planning (Open Access).
George, G., and et.al., 2021. Purpose in the for-profit firm: A review and framework for
management research. Journal of Management, p.01492063211006450.
Nariswari, T.N. and Nugraha, N.M., 2020. Profit Growth: Impact of Net Profit Margin, Gross
Profit Margin and Total Assests Turnover. International Journal of Finance & Banking
Studies (2147-4486). 9(4). pp.87-96.
Dyer, J.H., Singh, H. and Hesterly, W.S., 2018. The relational view revisited: A dynamic
perspective on value creation and value capture. Strategic Management Journal. 39(12).
pp.3140-3162.
Lahti, T., Wincent, J. and Parida, V., 2018. A definition and theoretical review of the circular
economy, value creation, and sustainable business models: where are we now and where
should research move in the future?. Sustainability. 10(8). p.2799.
Matturro, G., and et.al., 2021, October. Minimum Viable Product Creation and Validation in
Software Startups. In 2021 XLVII Latin American Computing Conference (CLEI) (pp. 1-
8). IEEE.
Shepherd, D.A. and Gruber, M., 2021. The lean startup framework: Closing the academic–
practitioner divide. Entrepreneurship Theory and Practice. 45(5). pp.967-998.
Elsayed Fayed, A., 2021. Artificial Intelligence for Marketing Plan: the Case for E-marketing
Companies.
Parmer, L., 2020. Reviving Rebekah's Operational Plan. Business Management Dynamics. 10(2).
p.12.
Hsieh, Y.J. and Wu, Y.J., 2019. Entrepreneurship through the platform strategy in the digital era:
Insights and research opportunities. Computers in Human Behavior. 95. pp.315-323.
Hosain, S., 2019. The role of information technology on strategic HRM: Transformation of
traditional mindset. Bizinfo (Blace). 10(1). pp.15-27.
Jurado, J.A., 2018. An empirical analysis of Universal Robina Corporation's financial plan.
Watson, K., McGowan, P. and Cunningham, J.A., 2018. An exploration of the Business Plan
Competition as a methodology for effective nascent entrepreneurial
learning. International Journal of Entrepreneurial Behavior & Research.

APPENDIX
Primary research
Questionnaire
The questionnaire will be given to the customers who prefer virtual travel on the basis of
the recent situation that is after pandemic and also with their consect the data will be
collected from 30 participants.
1. Do you prefer spending on virtual tour instead of physical tour options?
Option Response
Yes 25
No 5
Total 30
2. Does the preference of the virtual tour is increasing in recent time?
Option Response
Yes 23
No 7
Total 30
3. Do you opt virtual tour after the covid 19 pandemic situation?
Option Response
Yes 20
No 10
Total 30
Secondary Research
Figure 1
13

Figure 2

Figure 3
15

Profit and loss statement
Pro Forma Profit and Loss
Sales 20000 25000 25000
Direct cost of sales 1300 1400 1400
Total cost of sales 1300 1400 1400
Gross margin 18700 23600 23600
Expenses
Sales and Marketing
and other expenses
300 300 300
Utilities 200 200 200
Insurance 450 450 450
Rent 1500 1500 0

Total operating
expenses
2450 2450 950
Profit before interest
and taxes
16250 21150 22650
EBITDA 16250 21150 22650
Interest expense 600 605 610
Net Profit 15650 20545 22040
Cash Flow Statement
Pro Forma Cash Flow
Cash inflow
Cash from operations 12000 15000 15000
Cash sales 20000 25000 25000
Total cash inflow 32000 40000 40000
Cash outflow
Long term liabilities 1700 1700 1700
Other expenses 10000 11000 12000
Total cash outflow 11700 12700 13700
Net cash flow 20300 27300 26300
Sales Forcasting
Sales Year 1 Year 2 Year 3
Indoor activities 18000 23000 23000
17

Outdoor activities 2000 2000 2000
Total Sales 20000 25000 25000
Direct cost of sales Year 1 Year 2 Year 3
Indoor activities 1300 1400 1400
Outdoor activities 0 0 0
Subtotal direct cost of
sales
1300 1400 1400