Hair and Make-up at home-Part B formative assessment

This formative assessment explores the lean start-up, customer value proposition, lean business model canvas, and more in the context of a hair and make-up app called 'Styling on the Go'.

Hair and Make-up at
home-Part B formative
assessment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Introduction to the lean start-up..................................................................................................1
Customer value proposition canvas............................................................................................2
Lean business model canvas.......................................................................................................4
The c level specialist contribution...............................................................................................7
Financial and financing plan.......................................................................................................8
Summary.....................................................................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11
APPENDIX 1.................................................................................................................................12
APPENDIX 2.................................................................................................................................12

INTRODUCTION
Entrepreneurship development is something that is directly related to the collective
efforts and development which is processed by an entrepreneur as in order to attain all its
working within the timely basis. It is basically a process which is used to enhance the skills,
abilities, attributes, capabilities and knowledge by which it is easy to accomplish all the desired
products and services with more comfort and flexibility (Adhikari, 2018). An entrepreneurship
development is being used to increase the resultant efforts through which working performance
of an entrepreneur is improvised and advanced and in this achieving of goals and objectives
become easier. The following report is based on the “Styling on the Go” that is actually an app
which is used for calling hairdresser and make-up artist to home. The report consist of lean start-
up, objectives of business, customer value proposition, business canvas model, detailed
development plan and future possible developments.
MAIN BODY
Introduction to the lean start-up
A lean start-up defines the state of new business which is developed in order to gain more
profit and sales in advance level. It has been used to attain higher profit within the working
standards so that profitable ending is resulted-in better manner. “Styling on the Go” is a new
business which is established by CEO in London and they have developed the mobile application
as it allows the users to call the best artist for there make-up and hair dressing at their home or at
own place. It support of this application it is easy for the customers to take an appointments as
per their own suitability or convenience. The overall world is facing a pandemic situation due to
COVID-19 thus it is harder for all the individual to go salons for their hair and make-up
treatment (Apostolopoulos, 2018). Thus in support of this application the users has booked an
appointment as pay per click and get the fastest and most liable services at home as well. The
customers could also get the fastest as well as longest services of up-to 72 hours or either 3 days
as in advance. In this customers get supreme and premium beauty tips that is also be indulged
with the make—up artist and hair dresser. In addition to this CEO has developed certain
objectives for 3 year time period in future and that is as addressed below as:
 To attain higher sales and revenue as from the competitive marketplace.
 To grab attention of potential customers so that higher revenue is developed.
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 To increase the profit ratio by 5% within the upcoming time period and in this more
return on the investment is achieved.
The approximate profit in the initial year is of about 2000 units and it is estimates that in
future period of time the sales will be increases with 15% per year. The sales and profit
calculations of 3 years is described below as:
It has been shown from the above calculations that the sales as in upcoming years is
about 60000, 66000 and 726000 and its cost is about 20000, 22000 and 24200 respectively
(Atiase, 2018). The respective profit of first year is 40000, for second year 44000 and for third
year it is 48400 along with this the profit margin is remains the same which is 66.67% as similar
sales is achieved by the business.
Customer value proposition canvas
Value proposition canvas: It is a model that is used by “Styling on the Go” in terms of
tools and in this they get ensure that their offered product and services has positioned and
delivers better values to customers so that they get easily satisfied. In this it is more essential for
the business to fulfil the need and desire of customers and it has been done by making perfect
matching in between the market and product that is covered by the business. It is a model that
consist of different key elements and by considering these components company tries to fulfil the
demand of customers. It is actually be a representation that assist to measure customer profile
and value mapping. The value proposition canvas that is developed by the CEO of “Styling on
the Go” is as illustrate below as:
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 Product: It is a basis that has includes different components such as experience, benefits
and features. In this the “Styling on the Go” has provide customised services at home and
it is also be the fastest service that is availed in terms of booking. In addition to this the
company has provide quality services so that larger market is targeted and it is
irrespective of gender biased (Chowdhury, 2019). The “Styling on the Go” provide hair
dressing and make-up services and it is provided through the support of artist and
specialist of it. In this better values is transferred within the marketplace thus it is easy for
the business to achieve both short and long term goals as well as objectives. The business
persuade its working by offering better customer experience and that is based on its
suitability as well. It provides basic detailing and requirements that is sustained by the
business as it is directly related to the different methods through which more sales is
attained in flexible manner.
 Customers: It is a factor that defines customer profile and it is effectively judged by the
“Styling on the Go” as in this higher values, feed and want of potential customers are
addressed. In support of it “Styling on the Go” ensure that they have provide wider
variety of make-up and hair services with affordable prices. Thus more gain is attained as
they have provide easy convenience and comfort to the customers along with this quality
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services is promoted in sustained manner. In addition to this if customer wants to book a
services then it is required that they have use its mobile application (Galvão, 2018). The
vital fear for the business is that due to the pandemic condition more of the customer take
prior distance from hair and beauty treatment and in support of it working network is also
be quite ineffective.
Lean business model canvas
Business canvas model: It is a strategic management tool that is used by the lean start-up
as in order to develop better working model so that more success and growth is measured on
continuous basis. It is usually a visual formulation that is used to describe value proposition,
finances, infrastructure and customers approach so that both products and services are getting
enhanced. It has been used to briefly define different basic components that used to promote the
working standards and performance of the business. In this CEO of “Styling on the Go” has
covered nine elements and in support of it business entity is getting enlarged. It basically include
key partners, resources, value proposition, activities, customer segment, cost structure, channels,
resources and revenue streams. It is beneficial aspect for the management of business as it assist
to gain attention of stakeholders as like creditor, customer, investors and suppliers. It is as briefly
explained below as:
 Key partners: It is a basis that defines the effective purpose under which business has
controlled its operational activities with more perfection. It is the vital prospect for
“Styling on the Go” as they have make effective relationship with the key partners i.e.
internal and external parties (Gontareva, 2018). It actually include employee, investors,
supplier, creditor and many others as well. It emphasis the effective working so that all
the operations and functions are organised in constrained mode.
 Key activities: It defines the different set of activities that is performed and operated by
the business as in order to make effective utilisation of all the required resources.
“Styling on the Go” is a new launch business and in this they have to pay more attention
towards the increment of business activities so that they make sustain relation with
marketplace. The business has formed promotion, marketing, advertising, selling in order
to achieve goals in successful manner.
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 Key resources: It includes the different kind of resources that has been used by the
business as in order to make sufficient supply of its products and services in the market.
It consist of several entities as like collection of funds, human resource, availability of
resources, machinery, equipments, travelling sources etc. It is required to acquire these
resource in suitable amount so that working is processed with fluency along with this
management has perform all the operations in timely basis (Horne, 2020). It helps to
provide better care to the customers as it is directly based on the services that is provided
as per the requirement and demand.
 Value proposition: It order to provide and offer better values to the customers “Styling
on the Go” ensure that they have personalized the customers services and take their
recommendations by which adequate amount of alternation is induced to provide
supreme services to customers. The company also offer in-app chat through which it is
easy to access the requirement of customer then service is provided accordingly. In
addition the company also charge additional amount and it is directly based on the hourly
prices and it is taken as after the serve charged.
 Customer relationship: It is most essential prospect for the business and in this “Styling
on the Go” works over to offer interactive services so that better establishment is attained
and long term relation is maintained in efficient model. The online community aid to
review and rate the application thus better rating attract more of potential customers.
 Channels: It is a medium that is used to make direct promotion and in this “Styling on
the Go” ensure that they have deliver suitable information in the marketplace and in this
easy and clear understanding is developed. It is also being used to promote and create
market awareness by which potential customers attraction is attained in easiest way. Thus
CEO has developed own application by which increment in sales and profit is achieved in
sustained format.
 Customer segments: It is a segment that usually defines by the business and with this
they have maintain certain target and then perform all its function as surrounded to it. It is
induced with the purpose of selling and marketing its services (Horst, 2019). “Styling on
the Go” maintain focus on the youth as they have shown their concern about their beauty.
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 Cost structure: It is a structure that is based on the costing as in this “Styling on the Go”
has designed several costing of different beauty treatment and it is according to the
services and it time taking. “Styling on the Go” provide salary to its artist, overhead
applications and in development of technological infrastructure.
 Revenue streams: It is a stream that defines the revenue generation and in this “Styling
on the Go” follows the subscription model as they have launch its application in which
they get more revenue as per its customers subscription. In addition the company also get
more payment as pay per click along with this advertisement is also being the channel
from which more revenue is generated systematically.
The business canvas model of “Styling on the Go” is as explained below as:
Key partners
 Cosmetic
and
supply
companies
 Social
networkin
g
 Fashion
houses
Key activities
 Capturing
consumer
preference
s
 Marketing
of services
Value
proposition
For customers:
 Personaliz
ed
recommen
dations
 In-app
chat with
vendors
For vendors:
Add serve charge
based on fixed of
hourly price
Customer
Relationship
 Interactive
service
 Online
communit
y
 Review
and rating
 Social
media
Customer
Segment
Users: Those who
could not find
local vendors
Vendors: Local
service providers
those who are
looking to grow
their business
and Professional
experts who are
looking forward
to earn extra
money (Sarango-
Lalangui, 2018).
Channels
 Direct
 Create
awareness
Revenue streams
 Subscripti
on model
 Pay per
use
 Advertise
ments
Key resources Cost structure
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 Industry experts
 Online platform
 Robust mobile app
 Value Driven (Staff)
 Overhead for application
 Technology infrastructure
The c level specialist contribution
The CEO of “Styling on the Go” has developed creative and innovative idea through
which larger market share is attained within the stipulated period of instance. It is quite
understandable that both men and women regardless of its age has needed make-up and hair
dressing. It it not based on occasional or event basis but in normal life as well people keep them
up to date. Thus the application of “Styling on the Go” has provide an option to the customer to
select the service with respect to their convenience and comfort. In the pandemic attack of
COVID, salons didn't have permission to open so that it is the biggest opportunity to invest in
online application (Hossain, 2019). Thus “Styling on the Go” designed freelancing mobile
application and in support of they have call to the make-up artist and hair dressers. It is a
business that is constantly and having wider scope as well that has raise the standardised volume
of sales and profitability. The company also provide pay per click service so that quick service is
provided to the customers as per its booking appointments. In this it is also necessary that all the
team members has manages the equal contribution as while executing all the task so that
productive services is transmitted in efficient mode.
“Styling on the Go” provide sustained benefits to the business and customers as well and
it is processed if proper service is provided to the customers as per their suitability. The customer
has select all the services as per their convenience and then “Styling on the Go” has send special
team those have carry all the required equipments with them so that every treatment is processed
with more comfort. The company also take online booking of 3 days or 72 hours within which
complete beauty treatment is provided to the customers (Khan, 2018). The CEO has analyse the
market conditions and shown more interest towards adding more features by which innovatory
actions is taken. The “Styling on the Go” has followed certain procedure to make innovation in
the service and production that is as explained below as:
 Directing market research: In this CEO of “Styling on the Go” conduct market
investigation with this they have easily understand the requirement and necessity of
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marketplace. The CEO then critically evaluate the emerging trends and technological
advancement within the market as it helps to attain the attention of potential customers.
 Speculate various business ideas: It is a factor in which “Styling on the Go” has
formulate the different set of actions and ideas and it is done by CEO. In this after
analysing all the certain conditions business has select the best idea from which more
profit is developed.
 Screening of idea: It is a stage in which screening is performed under which effective
outcome is conceived with better perfection (Leonidou, 2018). In this CEO has analysed
all the redundancy that is developed from each idea and then select the most appropriate
idea.
 Selection of specific idea: In this stage CEO of “Styling on the Go” has select the most
suitable idea for business through which more revenue and profit is collected.
 Implement selected idea and work consequently: CEO select the idea and then
implement that into the workings and maintain focus to maintain continuous success
within competitive marketplace.
 Launch new idea market: It is the final stage in which CEO of “Styling on the Go” has
implies the idea in the business working along with this supportive strategies and
initiative is induced. It assist to make formulated outcome by which desirable ending is
perceived with more effectiveness.
Financial and financing plan
The financial planning is the most required aspect as it helps to complete the working in
successful manner. It basically reflect the different cost which is essential for business in order to
survive in the aggressive competition. As the company has required to pay rent of workplace,
salary to its artist, hair dresser and other staff, equipment and machinery cost, market research
and travelling cost as well. In addition to this there is different streams that is identified by the
company as from where more revenue is developed. In this “Styling on the Go” manage its sales
from its online application thus for this they have recognise balanced involvement of promotion
and revenue (Mitra, 2019). The cost estimation of first year is about 20000 and sales
approximation is about 60000, profit margin is 40000 and break even analysis is 596.49 per unit.
As in this if “Styling on the Go” has a customer sale of 596 unit that reflect that company has
easily cope over from losses. The cash flow analysis of the “Styling on the Go” reflects the total
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income which is about 60000 and the closing sales balance is 40000. In addition to this there is
different source of funds that is manages by CEO of “Styling on the Go” as while launching the
new business on digital platform. The company has take personal loan, capital investments and
for this they have manage rent, advertisement, promotion, marketing, material cost of make-up
etc.
Summary
The company has gained more opportunities as while launching the new business and in
this “Styling on the Go” has worked on to make attractive outcome. In this it is required that
ability of company to attract more investors is developed so that moderate level of return on the
investment is achieved in systematic mode (Morozova, 2019). The company has worked with
better uniqueness along with this try to facilitate growth and dependency of business so that
probability to attract more customers is getting enlarged. The investments within “Styling on the
Go” as a lean start-up requires to attain more opportunities by providing creative and fastest
service to its customers. It has been used to advance individuality and for that business has make
more improvisation in the business and with this potential customers are attracted in constrained
manner.
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CONCLUSION
It has been concluded from the above report that entrepreneurial development is a
procedure that is used to make balanced level of innovation and creation so that achievement of
target and objectives is developed. In this business has comes with new idea so that market
attention is easily grab and long term sustainability is maintained. In addition to this business
canvas model is used to make value proposition in which stakeholders aspect is analysed along
with this financial planning is measure with suitableness.
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REFERENCES
Books and Journals
Adhikari, R.P. And et. al., 2018. Applying a community entrepreneurship development
framework to rural regional development. Small Enterprise Research. 25(3). pp.257-
275.
Apostolopoulos, N. and et. al., 2018. Entrepreneurship and the sustainable development goals.
Emerald Publishing Limited.
Atiase, V.Y. And et. al., 2018. Developing entrepreneurship in Africa: investigating critical
resource challenges. Journal of Small Business and Enterprise Development.
Chowdhury, F. and et. al., 2019. Institutions and entrepreneurship quality. Entrepreneurship
Theory and Practice. 43(1). pp.51-81.
Galvão, A., Ferreira, J.J. and Marques, C., 2018. Entrepreneurship education and training as
facilitators of regional development. Journal of Small Business and Enterprise
Development.
Gontareva, I. And et. al., 2018. Features of the entrepreneurship development in digital economy.
TEM Journal. 7(4). p.813.
Horne, J. and et. al., 2020. Exploring entrepreneurship related to the sustainable development
goals-mapping new venture activities with semi-automated content analysis. Journal of
Cleaner Production. 242. p.118052.
Horst, S.O. and Murschetz, P.C., 2019. Strategic media entrepreneurship: Theory development
and problematization. Journal of Media Management and Entrepreneurship (JMME).
1(1). pp.1-26.
Hossain, S.F.A., 2019. Social networking and its role in media entrepreneurship: Evaluating the
use of mobile phones in the context of online shopping–A review. Journal of Media
Management and Entrepreneurship (JMME). 1(1). pp.73-86.
Khan, S.J.M. and Anuar, A.R., 2018. Access to finance: Exploring barriers to entrepreneurship
development in SMEs. In Global Entrepreneurship and New Venture Creation in the
Sharing Economy (pp. 92-111). IGI Global.
Leonidou, E. and et. al., 2018. An integrative framework of stakeholder engagement for
innovation management and entrepreneurship development. Journal of Business
Research.
Mitra, J., 2019. Entrepreneurship, innovation and regional development: an introduction.
Routledge.
Morozova, I.A. And et. al., 2019. Sustainable development of global entrepreneurship:
infrastructure and perspectives. International Entrepreneurship and Management
Journal. 15(2). pp.589-597.
Sarango-Lalangui, P. and et. al., 2018. The development of sustainable entrepreneurship research
field. Sustainability. 10(6). p.2005.
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APPENDIX 1
Primary and secondary market research: It basically reflects the key elements that is
used to conduct market research and its outcome is as define below as:
Elements Details
Market size The market size of “Styling on the Go” is much wider as they cover the
market from online services.
Market growth The market growth is much higher as people shows more concerned
about beauty.
Customer preferences The customer are easily attracted towards the make-up and hair dressing
services and in this more innovatory outcome is developed.
Customer segments “Styling on the Go” has segment larger market and cover both male and
female in their services.
Segment size The segment size of business is quite larger.
Competitors There are different brands that are most famous such as Diane James
hair and make-up, Olga Markuse wedding hair stylist and make-up
artist, etc.
Key partners Key partners of “Styling on the Go” are as customers, suppliers,
investors, employee and many others as well.
Channels “Styling on the Go” has worked at online platform and covers wider
market.
APPENDIX 2
Cost structure: “Styling on the Go” cost structure of first year is explained below as:
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Revenue streams:
Break even analysis:
Formula = Fixed cost / contribution per unit
= Total fixed cost for first year is 17000
Contribution per unit = Sales – variable cost / total selling units
= 60000 – 3000 / 2000
= 28.5
BEP = 17000 / 28.5
= 596.49 per make-up and hair dressing
Cash flow analysis: The cash flow analysis for first year is as follows:
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Sources of funds: The “Styling on the Go” has different sources of funds and in this
CEO and its management has worked on to make more success and profit in competitive
marketplace. It is as furthermore explained below as:
 Bank loan: It is a source in which “Styling on the Go” has take loan from bank and then
pay back it after paying certain amount of interest to the bank. In this effective planning
is developed by the C level executives of business by which more profit is attained in
easiest mode.
 Using personal capital: It is a source in which C level executive of “Styling on the Go”
has uses its personal capital in order to established the business in well manner. As in
return of it they will get adequate amount of return in satisfactory way.
Usage of funds: There is an urgent need of funds so as to make efficient amount of
resources through which easy access of services is maintained in systematic manner. There is
different usage of funds and it is described below as:
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