Lean Start Up venture

This report explores the concept of entrepreneurship and the lean start-up venture. It discusses business objectives, customer value proposition, and the lean business model canvas. The report also includes a detailed development plan, marketing plan, operational plan, technical solution, and information technology plan.

Lean Start Up venture

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Business Objective...........................................................................................................................1
Canvas model of Customer value proposition.................................................................................2
Lean business model canvas............................................................................................................4
Detailed development plan..............................................................................................................6
The marketing plan.....................................................................................................................6
The operational plan....................................................................................................................7
Technical solution and information technology plan..................................................................8
Human resource and organisational plan....................................................................................8
Possible future development.......................................................................................................9
SUMMARY.....................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
The term entrepreneurship is defined as the study for developing, organising and
managing an enterprise for generating profits from organisation operations and functions. The
main aim of an entrepreneur is to establish and start a new business for fulfilling customer needs
and wants by analysing market gaps. Apart from this, an entrepreneur start their business to
accomplish an opportunity that exists in market which aids an individual to take an initiative for
obtaining the position of entrepreneur (Ayoade and Agwu, 2016). Moreover, business person or
entrepreneur are the person who are able to take risk for facing the unpredictable challenges in
market. With engaging innovation aspect among business it is easy for individual to take risk
which helps to earn more amount of profits.
In the context of this report the idea for entrepreneurship is undertake of artificial
intelligence marketing stand. The perspective of this idea is to enter among technology market as
it is wider in scope. Along with this respective idea for business is to start and share discussion
about different number of methods which assist companies to promote their business through
utilising artificial methods. This report is written from perspective of AFI-marketing solutions
and it is a experiential organisation that offer service about marketing aspects. With analysing
the current situations of market. AFI-marketing solutions management is focused to minimise
the human involvement for designing digital aspect of business. Further, this report highlights on
business objectives and customer value proposition of an organisation. In the last, detailed
development plan will also included in this report.
MAIN BODY
Business Objective
Each organisation whether new or a start-up perform their business with motive of
accomplishing business objective. In the context of AFI-marketing solutions , some objectives
which are decided by management to gain success in market are mention as follow:
 Profit- The main purpose of each organisation is to earn profits by performing their
operations and functions in an organised manner (Balocco and et. al., 2019). Moreover,
profits are earned for surviving among market to accomplish more growth in business.
AFI-marketing solutions also decide profit as an objective in order to recognise the
break even point for artificial intelligence operational cost. In addition to this profit are
1

also known as the life-line for a business. This refers it is difficult for business to
manage work for long term due to lack of profits.
 High revenue from sales- This refer to the amount which is generated by the
organisation with the sale of services and products. Apart from this, revenue and sale
are two inter-related aspect which is used to understand the number of profits
difference (Chipfupa and Wale, 2018). Moreover, sales revenue objective leads to
analyse difference between gross profit and net profits. AFI-marketing solutions also
focused for accomplishing sales targets on the basis of month, quarter and year.
 Profit- The term profit margin is defined as the ratio for analysing organisational
profits with the method of implementing sale minus operation expenses. In order to
analyse sales income and margin. Profit margin ration is an effective method for
managing overall finance aspect of business. In context of AFI-marketing solutions
the profit objective help to analyse business profits from the field of artificial
intelligence.
Canvas model of Customer value proposition
Canvas model is explicated as a tool which provide assistance to the organisation for
ensuring the number of products and services are consecrated towards customer's. The canvas
model was developed by Alexander Osterwalder to ensure that organisation fit among product
and market. Along with this customer value proposition generate detail relation among two parts
of business. This two aspects are value proposition and Customer segment which leads
organisation to manage their work as per canvas model. In simple terms, value proposition model
is used for analysing the position of existing products. AFI-marketing solutions utilise customer
value-proposition model for offering all products according to individual requirements (Edison,
2015). Model which is implemented by respective organisation for managing idea of artificial
intelligence is mention as follow:
Value Proposition
 Service and products- In this section, offering which is delivered by organisation among
market is to provide the services related with artificial intelligence market. The most
important service of respective business is to earn better revenue or to enhance ROI for
improving company profits.
2

 Market creator- This method outline and explain services which is used for segmenting
and analysing the market in order to deliver all products according to customer's
requirements. It refers AFI-marketing solutions increase market area for business.
 Pain relievers- This explain about all products as well as services which alleviate about
company problems due to which it is complex for customer's to obtain better value from
operated services. AFI-marketing solutions also trained management to reduce the
problems and issue of other companies related with technology field.
Customer profile
 Customer line or job- It represent about the task which is required by the individuals for
performing their work in an organised manner (Esposito, 2018). This also refers that the
main motive of business is to satisfy about needs and wants to satisfy of individuals
properly.
 Customer gains- It is kindly just opposite of pain and the AFI-marketing solutions utilise
customer gain to explicate about aspects that increase value among company services to
promote organisation in the market.
 Customer pains- One of the major challenge which is analysed or identified by the
organisation relates with complexity among techniques and methods related with
marketing. This refers almost each company is managing their business at global level so
promotion of products and services is also done with use of artificial intelligence.
With the analysis of customer value proposition model it is easy to understand about systematic
understanding of essential needs related with customer. Along with this product and service also
match with individuals through perfect manner (Ghezzi and Cavallo, 2020). In the last, by
engaging value proposition canvas model this is easy to enhance profitability of business by
analysing all ideas which attract customers for completing their work in an organised manner.
3

Lean business model canvas
Business model was published in the earlier book of Alexander Osterwalder which is
business model ontology. Along with this business model outline nine different segments which
is building block for business and also define about business model canvas. Apart from this,
business model reflect systematic model that are used by organisation to perform their work in a
systematic manner (Honig and Hopp, 2016). Moreover, business model also reflects about
individual requirements that insight about customer's relation and the area in which business
serve better models for managing their work as per all segments. Value proposition also offer
different channel to the business in order to generate money for longer term budgets. In the last,
respective model used by organisation to develop a competitive-edge in market.
Key partners
 Business
developm
ent
manager.
 Software
engineer.
Key activities
 social media
accounts,
 negotiation and
customer
services
 artificial
intelligence
Value
proposition
 Techn
ology
develo
pment
 Artific
ial
Customer
relationships
 Customer
service,
 personal
relationsh
ip
Customer
segment
 Small
scale
compani
es.
 Digital
market
4

 Investor .  marketing of
products.
intelli
gence
 marke
ting
activit
ies
 social
media
organisa
tion.
Key resources
 web designer,
internet,
 computer
system
 strategic
development
Channels
 Selling
through
online
services.
 To
engage
professio
nal
services
Cost structure
 technology,
 artificial intelligence equipment cost
 research cost
Revenue stream
 transportation cost (RM15/delivery)
 sales (RM5 and above)
Different factors which is used in the business model canvas is mention as follow:
 Key partners- Different key partners of organisation perform their work with motive
of managing task by involving business development manager, investors and software
engineer for managing all activities in an effectively related with artificial intelligence
(Kruger and Steyn, 2019).
 Key activities- Artificial intelligence conduct different activities which is useful for
managing all task and perspective related with social media accounts, negotiation and
customer services, artificial intelligence and marketing of products.
 Key resources- In order to perform all operations properly it is essential for
organisation to arrange essential resources which leads to complete work with the help
of web designer, internet, computer system and strategy are major resources for
artificial intelligence.
5

 Value proposition- There are different activities is used by organisation and most of
them include better value which include technology development, artificial intelligence
and marketing activities for business.
 Customer relation- It is important for organisation to analyse and maintain better
relations with customer's as it leads to manage all task through developing value
perspective in business (Kumar and Borbora, 2017). Customer service, personal
relationship and social media also refers customer relation help organisation to develop
positive relation with consumers.
 Market channel- It refers to the marketing channel through which organisation deliver
its products within market. In context of the AFI-marketing solution effective market
channel leads manager to complete it work by social media and organisation.
 Market and customer segmentation- With serving service and products to the
customers this is easy for the organisation to perform their work by serving all products
properly. In context of AFI-marketing solutions market small scale companies are
utilised to perform all work properly. This is also identified that customer segmentation
helps to complete work according to wants and needs for business.
 Cost structure- It is important for organisation to select an appropriate cost structure as
it leads organisation to complete all work in an appropriate manner (Kumar, 2017).
Along with this technology, artificial intelligence and research cost is incurred to
complete work by proper research aspect within decided financial budget.
 Revenue and price model- This include delivery service which include price aspects
such as transportation cost (RM15/delivery), sales (RM5 and above) and in last
marketing activities (RM20 and above).
Detailed development plan
The marketing plan
The term marketing plan is defined as a report that outlines about marketing strategy for
the organisation. With upcoming month, quarter and year it is easy to advertise all business
perspective which helps in generating long term leads for business to reach towards target
market. Moreover, AFI-marketing solutions also conduct different operations to manage task of
UK properly. Marketing plan of organisation is as follow:
6

Objective- It is used for introducing about different stores among market that directly
enhance market share for business with 15% in market.
Market size- AFI-marketing solutions is a medium-sized organisation that operate
business in a small sector to manage company operations properly.
STP model- This is known as an effective method by which AFI-marketing solutions
promote all products effectively among market. Furthermore, social media tools also aids
organisation to gain an effective place in market.
The operational plan
Operational plan is defined as a detailed plan that promote a clear and transparent process
which demonstrate all methods related with business goals (Mansoori, 2017). It also refers
organisation distribute better efforts that leads to select an effective operational plan for
completing task of business properly. Some of the essential aspects related with operational plan
are mention as follow:
Vision- In context of AFI-marketing solutions organisation prefer to complete it work
according to perspective of marketing activities. The main vision of organisation is to improve
marketing activities which leads to complete all work by obsessing customer service in an
effective manner. Moreover, another vision for business is to generate sustainable practice to
complete work in an appropriate manner (Margalit and Alfasi, 2016).
Mission- Mission statements for AFI-marketing solutions is mention as below:
 To serve all customer's in an equal manner.
 To promote activities of business at a broader level.
 To respect all clients of organisation.
 To improve communication and research skill.
Key to success
There are different strategies related with business which helps to improve the
organisational position among market by completing all task in an appropriate manner. Method
to achieve success is mention as follow:
 Introducing services to all customer's specifically which is related with artificial
intelligence.
 To hire staff for generating better responses about handling all task in a proper manner.
 Offering services related with artificial intelligence such as digital marketing.
7

Technical solution and information technology plan
Technical planning refers to the business perspective that is used to ensure about need
and wants of customer's, investor and stakeholders that leads to complete all work in an effective
manner. Along with this, AFI-marketing solutions focus on all important perspective which is
used for improving growth of business. In context of detail documented plan management
accomplish needs and wants of customer's with use of technology field (Monds, 2015). Further,
software requirements implement techniques that enhance possibility for managing work
according to detailed areas.
Information technology is engaged among all functions and operations related with
selected organisation. Along with this the idea related artificial intelligence leads organisation to
perform all operations in an accurate manner by managing company task with the motive of
fulfilling technological requirements. In the context of AFI-marketing solutions , information
technology provide different tools of entrepreneur that assist and guide organisation to perform
work according to start-up stage. It is also used to accomplish growth by managing all work with
undertaking essential aspects for business. Communication, computer and networking are
important factors to manage and grow business in artificial intelligence aspect. It is also used to
take advantages with use of information technology in business.
Human resource and organisational plan
AFI-marketing solutions is operating business with motive of accomplishing more
growth in market. On the other side, the idea of artificial intelligence help individuals to manage
work with motive of managing task through use of technology perspective. This also refers that
it is essential to recruit skilled and capable employee's for organisation in order to manage work
with an effective strategy (Mullins, 2017). Workforce planning is an important aspect which is
included among business for recruiting potential candidates among business. In the last, with use
of workforce planning, employee's engagement plan also leads employee's to complete all task
with managing human resources.
 Personnel planning.
 To be trained with learning organisation.
 Minimising employee's turnover.
 To recruit trained and skilled employee's.
 Employee's perform their work at supportive place.
8

Possible future development
The term Ansoff matrix is defined as a product/market expansion which leads
organisation to plan and analyse aspects related with growth of business. This also provide
assistance to all persons for completing work with the direction that leads individuals to
complete all work by focusing towards company objectives and goals (Ngcobo and Keswa,
2017). AFI-marketing solutions utilise the methods for encouraging individuals to work as per
idea of artificial intelligence.
 Market penetration- This focus on the sales of business services among similar market.
In present AFI-marketing solutions use market penetration techniques to manage work as
per demand of UK market.
 Product development- The focus of organisation is to introduce new product in the
similar area of business.
 Market development- As per strategy of market development organisation focus on new
market which leads to deliver artificial intelligence services in an appropriate manner.
AFI-marketing solutions utilise market development strategy to accomplish
opportunities in market as a first mover advantage in order to enhance their market area
properly.
 Diversification- In the diversification strategy management focuses on entering among
all market which support to introduce new products into new market area. Further,
diversification strategy also increase the number of challenges because it leads
management to enter into new market.
In the context of the AFI-marketing solutions one of the most appropriate stage for business
relates with the market penetration strategy that focus to improve sales of company products in
the existing geographical area and customer base (Yang, Sun and Zhao, 2019). Moreover,
marketing with use of artificial intelligence aspects is a new concept so it create complexity for
business to manage their work as per organisational area. It refers information about local market
leads in completing all task with more efficiency and effectiveness.
SUMMARY
Entrepreneur start a new venture and business so there are various resources required that
include several activities such as finance, human-resources and operational department as there
are different resources required by business and start-up. It determines that by conducting and
9

collaborating among all resources it is easy to complete activities in an appropriate manner
which leads to establish or implement a successful venture. AFI-marketing solutions raise or
collect 40% of their funds with its own perspective. On the other side, the remaining 60% of
finance is obtained with demonstrating business plan to the angel-investor. One of the major
reason to generate investment perspective is to focus on possible perspective that leads in
establishing a business as per managing work according to start-up venture.
Angel-investor are also recognise as a seed investor and angel-funder it refers that the net
worth of individuals is too high. So they offer financial back-up plan for entrepreneurs and their
start-up. Along with this exchange among the ownership and its equity in business is also offered
in order to take guidance about company strategy. In addition to this, angel-funder required a
detailed plan about different stages related with organisation. Therefore, with undertaking funds
from the angel-investor this is easy for management to complete their task according to the goals
and objectives of business in a proper manner. It also define company also manage all it task
with the guidance of investor.
10

REFERENCES
Books and Journals
Ayoade, E. O. and Agwu, P. E., 2016. Employment generation through entrepreneurial
development: The Nigerian experience. British Journal of Economics, Management &
Trade. 11(3), pp.1-14.
Balocco, R and et. al., 2019. Lean business models change process in digital
entrepreneurship. Business Process Management Journal.
Chipfupa, U. and Wale, E., 2018. Farmer typology formulation accounting for psychological
capital: Implications for on-farm entrepreneurial development. Development in
Practice, 28(5), pp.600-614.
Edison, H., 2015, December. A conceptual framework of lean startup enabled internal corporate
venture. In International Conference on Product-Focused Software Process
Improvement (pp. 607-613). Springer, Cham.
Esposito, G. F., 2018. Development policies for lagging behind areas: an interpretative note in
the name of civil entrepreneurial development. The International Journal of Economic
Behavior-IJEB, 8(1), pp.33-45.
Ghezzi, A. and Cavallo, A., 2020. Agile business model innovation in digital entrepreneurship:
Lean startup approaches. Journal of business research, 110, pp.519-537.
Honig, B. and Hopp, C., 2016. New venture planning and lean start-up activities: A longitudinal
empirical study of entrepreneurial success, founder preferences and venture context. AC
Jerome A. Katz, Models of Start-up Thinking and Action: Theoretical, Empirical and
Pedagogical Approaches (Advances in Entrepreneurship, Firm Emergence and
Growth, 18, pp.75-108.
Kruger, S. and Steyn, A. A., 2019. Enhancing technology transfer through entrepreneurial
development: practices from innovation spaces. The Journal of Technology Transfer,
pp.1-35.
Kumar, G. and Borbora, S., 2017. Institutional Environment Differences Across the Indian States
for Entrepreneurial Development. Review of Integrative Business and Economics
Research, 6(4), pp.50-69.
Kumar, K. N., 2017. Microfinance for entrepreneurial development: Study of women’s group
enterprise development in India. In Microfinance for Entrepreneurial Development (pp.
53-71). Palgrave Macmillan, Cham.
Mansoori, Y., 2017. Enacting the lean startup methodology. International Journal of
Entrepreneurial Behavior & Research.
Margalit, T. and Alfasi, N., 2016. The undercurrents of entrepreneurial development:
Impressions from a globalizing city. Environment and Planning A: Economy and Space.
48(10), pp.1967-1987.
Monds, K.E., 2015. Information Economics: Exploring Lean Startup Methods and the
Entrepreneurship of Innovation. Southern Business & Economic Journal, 38(1).
Mullins, J., 2017. The new business road test: what entrepreneurs and investors should do before
launching a lean start-up. Pearson UK.
Ngcobo, S. and Keswa, S., 2017. Exploring graduates' governance perceptions of entrepreneurial
development opportunities in agriculture. Journal of Public Administration, 52(3),
pp.576-588.
11

Yang, X., Sun, S.L. and Zhao, X., 2019. Search and execution: examining the entrepreneurial
cognitions behind the lean startup model. Small Business Economics, 52(3), pp.667-679.
12

13

Balance Sheet
As at end of Year One
Current Assets
Cash $5,100
Debtors $18,000
Stock $3,120
Total Current Assets $26,220.00
Non-current Assets
14

Computer $5,500
Store Fit Out $8,100
Office Equipment $15,000
Total Non-current Assets $28,600
Total Assets $54,820
Current Liabilities
Credit Card $5,500
Creditors $4,120
Total Current
Liabilities
$9,620
Non-current Liabilities
Total Non-current Liabilities
Total Liabilities $9,620
Net Assets $45,200
Shareholders’ Equity
Owners’ Funds $40,000
Current Year Profit $5,200
Total Shareholders'
Equity
$45,200
15

Month
Pre
-
Sta
rt
mon
th 1
mo
nth
2
mo
nth
3
mo
nth
4
mo
nth
5
mo
nth
6
mo
nth
7
mo
nth
8
mo
nth
9
mo
nth
10
mon
th
11
mon
th
12
Tota
l
INCOME
Cash Sales
1,50
0.00
1,6
72.
50
1,86
4.84
2,07
9.29
2,3
18.
41
2,5
85.
03
2,88
2.31
3,2
13.
77
3,58
3.36
3,99
5.44
4,45
4.92
4,96
7.24
35,1
17.1
1
Credit Sales
750.
00
836
.25
932.
42
1,03
9.65
1,1
59.
21
1,2
92.
52
1,44
1.15
1,6
06.
89
1,79
1.68
1,99
7.72
2,22
7.46
2,48
3.62
17,5
58.5
6
Business Loans
10,0
00.0
0
10,0
00.0
0
Income from
other sources
1,20
0.00
1,3
38.
00
1,49
1.87
1,66
3.44
1,8
54.
73
2,0
68.
02
2,30
5.85
2,5
71.
02
2,86
6.69
3,19
6.36
3,56
3.94
3,97
3.79
28,0
93.6
9
Opening
balance 0.00 0.00
0.00
Total
£13,
450.
00
£3,
846
.75
£4,2
89.1
3
£4,7
82.3
8
£5,
332
.35
£5,
945
.57
£6,6
29.3
1
£7,
391
.68
£8,2
41.7
2
£9,1
89.5
2
£10,
246.
32
£11,
424.
64
£90,
769.
36
16

Cash Purchases
1,10
0.00
1,2
26.
50
1,36
7.55
1,52
4.82
1,7
00.
17
1,8
95.
69
2,11
3.69
2,3
56.
77
2,62
7.80
2,92
9.99
3,26
6.94
3,64
2.64
25,7
52.5
5
Stock
350.
00
390
.25
435.
13
485.
17
540
.96
603
.17
672.
54
749
.88
836.
12
932.
27
1,03
9.48
1,15
9.02
8,19
3.99
Drawings
200.
00
223
.00
248.
65
277.
24
309
.12
344
.67
384.
31
428
.50
477.
78
532.
73
593.
99
662.
30
4,68
2.28
Wages/Sub
Con.
300.
00
300
.00
300.
00
300.
00
300
.00
300
.00
300.
00
300
.00
300.
00
300.
00
300.
00
300.
00
3,60
0.00
Rent
350.
00
350
.00
350.
00
350.
00
350
.00
350
.00
350.
00
350
.00
350.
00
350.
00
350.
00
350.
00
4,20
0.00
Miscellaneous
100.
00
100
.00
100.
00
150.
00
150
.00
210
.00
210.
00
220
.00
230.
00
240.
00
250.
00
250.
00
2,21
0.00
Tools &
Equipment
(Capital Items)
5,70
0.00
10,0
00.0
0
15,7
00.0
0
Total
£8,1
00.0
0
£2,
589
.75
£2,8
01.3
2
£3,0
87.2
2
£3,
350
.25
£3,
703
.53
£14,
030.
54
£4,
405
.15
£4,8
21.6
9
£5,2
84.9
9
£5,8
00.4
1
£6,3
63.9
6
£64,
338.
83
Surplus/Deficit
£0.
00
£5,3
50.0
0
£1,
257
.00
£1,4
87.8
1
£1,6
95.1
5
£1,
982
.10
£2,
242
.04
-
£7,4
01.2
3
£2,
986
.53
£3,4
20.0
3
£3,9
04.5
3
£4,4
45.9
0
£5,0
60.6
8
£26,
430.
54
Balance @
Start
£0.
00
£0.0
0
£5,
350
.00
£6,6
07.0
0
£8,0
94.8
1
£9,
789
.96
£11
,77
2.0
£14,
014.
09
£6,
612
.86
£9,5
99.3
9
£13,
019.
42
£16,
923.
95
£21,
369.
85
17

5
Balance @
End
£0.
00
£5,3
50.0
0
£6,
607
.00
£8,0
94.8
1
£9,7
89.9
6
£11
,77
2.0
5
£14
,01
4.0
9
£6,6
12.8
6
£9,
599
.39
£13,
019.
42
£16,
923.
95
£21,
369.
85
£26,
430.
54
18