Lean Start Up Business Plan Components

This report provides an overview of the concept of lean start up and explains the components of a business plan, including business objectives, value creation, value capture, and more. A detailed development plan for a start-up called The Elder Club is also provided.

LEAN START UP
BUSINESS PLAN
COMPONENTS

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Business Objective...................................................................................................................3
2. Value creation of Customer Value Proposition Canvas and Minimum Viable Product..........4
4. Value Capture: Lean Business Model Canvas. .......................................................................6
5. Detailed development plan....................................................................................................10
6. Critical evaluation of plan and Future development possibilities..........................................12
SUMMARY...................................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
The term Entrepreneurship refers to the task which involves setting up a business
organization or various commercial enterprise with the primary objective of earning profits by
picking on various financial risks and uncertainties related to business. The primary objective of
commencing an entrepreneurship start-up is to satisfy the customer needs and demands with
establishment of a new business. Lean start up is a concept which is related with the construction
of new business ventures on the basis of the notion that the entrepreneurs should analyse,
perform enough experimentation, test and restate as and when they produce and develop new
products (Abd Rahman, Mohamad and Abdul Rahman, 2021). In this report, Lean start up as a
concept has been overviewed along with an explanation of the term business objective with
respect to sales revenues, profit and profit margins. A business Start-up named The Elder
Club is presented in the report which will form to be a social home for all the elderly people and
acts with the core objective of giving unique and distinguished conveniences like social clubs for
solitary retirees and elderly individuals to provide them with a friendly environment to live. The
two diverse business models of Value creation of Customer Value Proposition Canvas and Value
Capture for Lean Business Model Canvas are explained in the report with relation to the
enterprise The Elder Club. In the later part of the report a detailed business plan for the enterprise
along with the future development possibilities for the same are provided in the report below.
MAIN BODY
1. Business Objective.
A business objective is the end result that can be measured and evaluated which the
business organisation is intending to achieve. The objective to commence a business generally is
to earn profits for the business which is realised when the organisation is able to accomplish its
objectives. The business professionals in The Elder Club create the enterprise objectives with the
use of SMART goal method which stands for specific, measurable, achievable, relevant and
time-based. The business of The Elder Club has decided upon three major business objectives
which are: Profit: It is the most primary objective of many business organisations which can be
measured easily. This is attained when the organisation earns higher income in

comparison to its costs (Balachandra, 2019). This is the central objective The Elder Club
business enterprise as they aim for profit maximization along with providing with
maximum beneficial services to customers as a profit objective is aimed at. Sales revenue: It is the representation of the initial point for the business enterprises to
determine the organisation's net income earned. Sales revenue primarily refers to the
revenue which is earned by the business organisations with the sale of their goods and
services in the market. The sales revenue of The Elder Club objective help it to
establishing comparison between the gross profit and the net profits of the organisation.
The sales revenue targets are set by the business on weekly, monthly, half-yearly or
yearly basis and are measured for accomplishments by The Elder Club (Belhadi, Touriki,
and El Fezazi, 2018).
 Profit Margin: This refers to the actual amount which has remained after all the business
expenses are deducted from the income. It is a percentage measure of how profitable the
business and its operations are, how impressive the pricing of the business is and how
effectively the business is utilising all its raw materials and sources. The objective to
attain a particular profit margin of around 40%-60% each year will help The Elder Club
to analyse their profits and working efficiency and maintain profitability.
2. Value creation of Customer Value Proposition Canvas and Minimum Viable Product.
The value proposition canvas can be utilised when there occurs a requirement to redefine
an already established product or service which is being offered in the market or even in the
situations when a new product is being formulated and developed from the very scratch. The
canvas model has been provided by Dr. Alexander Osterwalder, so as to ensure that this model
woks as a perfect fit between the market and the product (Bertagnolli, 2018). The Value
Proposition Canvas is defined upon two base structures– customer profile and a company’s value
proposition. The business startup which is named as Senior Club help for healthy lifestyle plan
set up with a motive to get friendly zone for lonely people. So that they can overcome with their
shortcomings and they will find some entertainment, physical activities zones like yoga and
jogging track. After pandemic, it is hard to live alone so this start up really beneficial in terms of
financially and healthcare.

Customer Profile:- Gains: these are the benefits that are expected and needful to the customer's. It considers
the elements which would provide the customers with the delight and pleasure in return
of the product and are the things which will surely increase the likelihood of the
customer's adopting a particular value proposition (Blank and Dorf, 2020). Pains: These constitute the negative experiences, emotions and the risks which a
customer experiences in the entire activity of having the job accomplished.
 Customer Jobs: These are the functional, social and emotional tasks which the customers
try to execute, the difficulties they attempt to figure out and the needs that they want to
fulfil.
The customer profile should be generated for every single section of customer's, as each and
every segment of the customer has a particular ‘jobs to be done’, pains and gains.
Company’s Value Proposition:- Gain Creators: This explains the process of how a product or a service generates gains
for the customers and in what ways it offers extra additional value to the customer
(Zaheer and et.al., 2019).

 Pain relievers: This involves a description of precisely how the product or services
diminish the pain areas of the customer in relation to that product or service (Sreedharan
and Sunder, 2018).
 Products and services: These are the product or the services that generate gain or
diminish the pain and which sustain the creation value of the product for the consumers.
The perfect fit in terms of Company’s Value Proposition is attained when the products and
services which are offered by the business as a value proposition element which answers the
most essential pains and gains from the customer profile (Cao and Shi, 2021).
By examining the above model Senior club can decide that methodical knowledge of the
number one wishes and needs of the senior peoples are clean to interpret. Also the cost
proposition canvas version allows the start up to enhance its performance with a appropriate
evaluation of the extraordinary powerful thoughts that would help to fulfil the roles and
requirements of the people in an prepared way.
Minimum Viable Product: It is a development technique which involves producing a new
product or a commodity with very basic and primary features but those characteristics
established in the product are enough for drawing the attention of the customers in the market.
The end product however is released in the market only after the company has attained enough
feedbacks from the initial customer's of that product and has made all the necessary and effective
changes in the same so as for better results. The The Elder Club initially have decided upon two
small scale firms to assist them in solving their marketing related problems and then with
sufficient and effective feedbacks, launch their overall solution agency In the actual marketplace.
4. Value Capture: Lean Business Model Canvas.
The lean business model canvas is an adaptation of the business model canvas which was
created by Alex Osterwalder (Cosenz and Noto, 2018). It is primarily a business model canvas
which is a straightforward plan which skips all the unnecessary objects and gets on to the most
essential and primary elements which are necessary to be identified and assessed. The Lean
Canvas is a type of business model which is established to clearly interpret a startup business
idea into its primary and risky elements and assumptions. The Lean Canvas acts as a plan of
action plan which guides the entrepreneurs to navigate the way from initial idea and thought
process to the construction of a successful startup. The Lean Canvas is combined of nine
building blocks similar to the Business Model Canvas. The business of The Elder Club has

planned upon to utilise this model for improving their business efficiency and eliminate root
causes and issues in their operations.

Key partners
 old age
homes and
orphanages.
 Social
media
partners
Key activities
 social
clubs
Key
Proposition
 a place
for
elders
to
gather.
 Social
activitie
s and
club
gatherin
g.
Customer
relationship
 24*7 via
online and
offline
channels .
Customer
Segments
 Elderly
people
who wants
to enjoy
life and
socialize
through
social
clubbing.
Key Resources
 Books,
sports
equipment
and
socializin
g sports
Channels
 Digital
marketing
and
guillera
marketing
through
posters
Cost Structure
 fixed cost for development of a
vast social club. Variable costing for
membership discounts and
additional of new facilities.
Revenue Stream
 membership cards with differing tiers.
 Separate fees for more activities such as yoga
and other entertainment.

The factors which have been utilised in the canvas business model are as follows:
 Key partners – they are significant for any start up especially in case of Senior Club as
they required old age and orphanages homes. To vast their start up they need social media
partners who manages their own business website and make more people membership to
get their life enjoyable.
 Key activities: Since the business is aware of the problems the old age people have been
facing, it then should aim for finding the right solutions and offer them to the customers.
The most common things is social clubs which is more useful for old age homes.
 Unique Value Propositions: This determines how the business organisation is different
from the others which are there in the market. It also identifies the distinct value which
only the customers of this particular business will realise with the products or services
and no other customer will acquire this value. It basically lists the factors which make the
business of The Elder Club to stand out above the competition in the market.
 Unfair Advantage: This mainly constitutes the product, business or the service which
the business concern attains which no other organisation in the market has. This is
primarily the quality or service being provided by the business which is not available to
any other organisation at the marketplace (Jena, 2020). This is essential if The Elder Club
aims at utilising this canvas so as to attract the business investors and partners.
 Customer Segmentation: This is the initial building block for a business to establish.
This involves assessing the target customer of the business and understand what are the
various problems and issues that the business will have to solve in the future once it
identifies who are its customers for whom the organisation of the elder club will resolve
the questions for.
 Key resources : It essentially includes the established set of metrics which the business
organisation aims to utilise for the purpose of measuring the performance of old age
homes. People want to use every key source like social media which help them to explore
the old age homes.
 Market Channels: This implies the various means which the business will utilise to
reach its customer base in the market. It involves all the various marketing,
communication and different distribution channels that the organisation adopts from

various media sources (Kiran, 2019). The Elder Club will choose upon an effective
marketing channels to carry on with their operations and tasks.
 Cost Structure: It involves all the assorted costs which are required for the business to
be able to sell their products in the market. All the various expenses starting from the
initial research and developments, monthly payments of fees, salaries, physical store
costings and some more.
 Revenue Streams: The price and value of the products and services of the business are
decided by the enterprise along with the mode of payments that the business will accept
as it forms an essential part of the business offer. This can decide for the success or the
failure of the business enterprise.
5. Detailed development plan.
The marketing Plan: A marketing plan is an advertisement strategy which is
implemented by a business organisation for the purpose of selling the product or services of the
enterprise. This assists to ascertain the target market of the business, the most effective way to
reach them and the price point at which the products or services be sold in the market and with
what elements will the organization be measuring its efforts. The organisation of the elder club
has built upon various marketing operations through which it aims to manage all its customers
demands effectively (Konietzko and et.al., 2020).
Objective: To provide the unique and differentiated facilities such as social club for lonely
prisoners and elderly people so that they can get a friendly environment to live in.
Market size: The elder club is a start up business that operate in a small sector to manage
company operations properly.
STP model: This is known as an effective method by which the elder club promote all products
effectively among market. Furthermore, social media tools also aids organisation to gain an
effective place in market.
The operational Plan: An operation plan is an exclusively detail-oriented program which
distinctly explains ways in which the team or various different department give their contribution
so as to reach and attain the company objectives. It outlines the tasks and daily activities which
are a requisite for running the business effectively. The operational plan of the elder club
includes:

 The operational plan would primarily include making and designing the marketing
solution services and delivering those services as per the needs, requirements and
demands of the elderly people. (Marvel, M.R., and et.al., 2022).
 It will also involve building an effective relationship with partners along with assessing
and deciding upon the contribution that they have in the entire process of providing with
the club services.
Vision: To involve the society to reimagine ageing by empowering the seniors and their health
care providers to live their life to the fullest.
Mission: To innovate and provide services that satisfy the dynamic requirements of elderly
adults.
Technical solution and information technology Plan: This plan involves a document which
mentions in a detailed manner the extensive technology-enabled processes of business
management which an enterprise utilises so as to guide its business operations. It acts as an
assistance to the decisions that are made related to IT departments and it prioritizes the IT tasks
which are then enforced with the use of this plan as a framework. The elder club should utilise
the IT technologies available to it so that effective results and output could be achieved.
1. They will require to build a Core Technical Solution team so as any technical difficulties
could not affects the business services and the revenue to be generated from the business.
2. Key IT Systems should be placed upon so that the services provided are effective and
worthwhile to the service receiving authority and customers (Pakdil, Toktaş and Leonard,
K.M., 2018).
Human resource and organisational Plan: Human Resource Planning (HRP) is a process of
predicting the upcoming human resource necessities and requisites of the enterprise and
determine how the existent human resource availability of the business concern could be used so
as to fulfil these requirements (Peralta, Carrillo‐Hermosilla and Crecente, 2019). The human
resources team at the elder club should be effectively planning upon the individuals it aims to
employ in the business who will assist it in its idea of attaining growth. The activities included
are:
 Deciding organisational structure
 Hiring And Developing People and providing trainings to staff

Financial Plan: A financial plan represents the long-term financial objectives and formulates a
plan of action for attains those objectives. The plan formulated is basically an overview of the
present business financial situation as well as includes the future projections of the business for
growth and developments. The elder club has to develop a financial plan which will assist the
business in fulfilling its profit maximization needs along with economies of scale in the
operations. There are two available sources for financing of the elder club that are angel
investing and crowdfunding. This is 60% of total financing for this club business. The owner is
investing the other 40% in the business.
1. This would involve assessing and determining the Costing & Pricing for the services that
the business if providing the the customers and business organisations in the market
(Sahut, Iandoli and Teulon, F., 2021).
2. This financial planning would also take into consideration the factor of cash Management
and raising the necessary finances for the business so as to attain the required necessities
at the right time without any difficulty in the continuation of the services.
6. Critical evaluation of plan and Future development possibilities.
For evaluating the development possibilities for future the business organisation can
utilise the Ansoff matrix to assess the area in which The Elder Club can make future
developments. The elements of this matrix are:
 Market penetration: This element of Ansoff matrix provides enough attention to
increase the sales of the existing products in the existing marketplace. The organisation of
The Elder Club should exercise this to provide the services according to the demand of
the retired public in the UK market.
 Market Development: This element targets upon to sell the already established products
in new market areas. The business should move across in other global markets of UK for
providing their services so as to upgrade their market region appropriately (Silva and
et.al., 2020).
 Product Development: It aims for introducing new products in the already existing
markets. The Elder Club should aim to expand its services in different other society
regions so as to develop their services in the current markets that they deal in.
 Diversification: This concept is of entering the new marketplace with an altogether
newly formulated product. The business of The Elder Club should pick upon a new

market region along with new kind of services that may be helpful to the elderly and
retirees which they aim to provide in the market for the purpose of diversification.
SUMMARY
To establish a successful business or an entrepreneurship enterprise there are various
business models and factors which are necessary to be kept in consideration. These includes the
factors relating to human resource planning, marketing, finance, operations and much more. All
these combined together assist the business in building a strong setup for the organisation. The
various business models such as the Value creation of Customer Value Proposition Canvas and
the Lean Business Model Canvas are utilised efficiently to produce effective results by assessing
the market needs and demands in the market. With utilising all these concepts, The Elder Club
can accelerate their revenues with a considerable amount along with effective customer services
and satisfied customer reviews from all the elderly and pensioners. Also all these successful
implementations enable the business to assess and evaluate the different future development
opportunities that are available to the enterprise. The Elder Club has collected 40% of their
financial needs with the money brought in by the business owners and the rest amount of 60% is
to be arranged through crowdfunding and angel investors to assist the business start-up.
The angel investors and crowdfunding are the two sources which can assist The Elder
Club to assist their financial needs and requirements as for proving the services they aim for.
These sources assist to provide financial back up to the entrepreneurs to build their business
profitably in the future. In addition, the angel investor requires a detailed business plan on the
basis of which they can assess whether to provide for the funding’s or not. The funds through
crowdfunding are achieved by putting the idea and objective of The Elder Club to the public so
as to attract the general public for providing funds to the business. Also the management is
required to achieve the activities and targets of The Elder Club as per the facilities mentioned so
as to achieve the desired objectives along with earning enough profits for the business.

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