Entrepreneurship Development: Lean Start-Up and Business Objectives

This report discusses entrepreneurship development, focusing on the lean start-up approach and business objectives related to profit, sales revenue, and profit margin. It also explores the customer value proposition and the 'lean' business model canvas. Additionally, it discusses possible future developments and changes in direction for a mobile application-based business.

Entrepreneurship
Development

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Description of the lean Start-Up.................................................................................................1
Description of the Business Objectives related to Profit, sales revenue and profit margin for
the first three years of operation..................................................................................................2
Explanation of the Customer Value Proposition Canvas............................................................3
Explanation of the ‘Lean’ Business Model Canvas....................................................................4
Description of the possible future developments or changes in direction..................................7
Reason to provide finance to this Lean Start-Up........................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9
Appendix 1.....................................................................................................................................10
The Marketing Plan...................................................................................................................10
The Operational plan.................................................................................................................10
The technical Solution and Information Technology plan........................................................11
The Human Resources and Organisation Plan..........................................................................11
Appendix 2.....................................................................................................................................11
The Financial Plan.....................................................................................................................11
.......................................................................................................................................................12

INTRODUCTION
Entrepreneurial venture is a business starting by an individual or group of individuals to
fulfil unmeet needs of consumers in society. The person who started business is known as
entrepreneur. This person having prime liability of setting up business activities by taking risks
and identifying opportunities in market. It is a duty of an entrepreneur is to frame the goals and
objectives for further direction of staff members in right direction. Starting of new business is not
easy task. This requires lots of efforts and research. The different aspects on which needed to
focus includes market size, opportunities, risks, resources, regulations, competitors and
investment. Effective level of planning help an entrepreneur to understand needs and building
appropriate strategies (Aidis, 2017). This will definitely have positive impact from where
possible to attain desired level of success. There is also huge impact of external factors on
business activities. These are not in control of a organisational management so they always
needed to research about these to gain knowledge about conditions. This will provide an
opportunity to identify both opportunities and risks so able to take decisions accordingly for
ascertaining sustainability in business operations. The main aim of this report is also to analyse
different market determinants in development of successful working plan for a new business.
The current new business idea is about development of mobile application that will enable
consumers to draw a customised design which they want to be printed on their ordered t shirt.
The aspects covering in this report includes description of the lean Start-Up, description
of the Business Objectives related to Profit, sales revenue and profit margin for the first three
years of operation, explanation of the Customer Value Proposition Canvas, explanation of the
‘Lean’ Business Model Canvas, development of the detailed development plan, description of
the possible future developments or changes in direction and reason to provide finance to this
Lean Start-Up.
MAIN BODY
Description of the lean Start-Up
The main business idea is about development of mobile application that will enable its
users to draw a customised design which they want to be printed on their ordered t shirt. This
business idea is based on modern trend where people wants to wear t shirts on trendy and current
themes. There is huge scope of such business activities in clothing industry. This will provide an
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opportunity to build distinct image where people will easily get their own taste of t shirts at their
home. It is totally mobile application based business. Once the order will received from
consumer side, production is starting at workplace to prepare the same. There are no physical
stores at any place. All the consumers who want customised t-shirts has to place order over
mobile application (Ayoade and Agwu, 2016). T-shirt will be delivered within 3 to 4 working
days of ordering at the provided address of consumers. This idea determined after market
research where trend identified in market about customised t-shirts. So, the option of designing
prints over t-shirts will be effective in nature to attract different number of individuals from
diversified categories. This is very much in trend among youth who like to experiment with their
clothings and styles. The another category that get influenced from same is individuals belonging
from fashion industry. This will present as opportunity to design t-shirts on different themes and
showcasing same on different occasions accordingly. The another benefit associated with this
business is its overall nature of digitalised operations. Large number of people from young
generation present over digital platforms and simultaneously using different applications to
perform their day to day routine activities. This nature of friendliness help in attraction of youth
towards mobile application and usage of services to fulfil their desires regarding clothings. Also,
marketing over different social media platforms aid in spreading awareness about business
among youth in speedy manner. This will must having positive futuristic impact that aid in
increasing its number of users.
Description of the Business Objectives related to Profit, sales revenue and profit margin for the
first three years of operation
Development of business objectives is important to direct staff members (Ganiya, Yinusa
and Lawal, 2016). This will aid in clarifying points on which they have to focus or work for
ascertaining overall business objectives. Business objectives in relation to the current business
idea are presented below;
 To gain 20% of market share in initial period of 6 months working
 To establish profit margin of 20% within time period of 2 months from starting business
operations
 To gain profit of 1 million from working of 1 year
 T improve each quarter sales by 10%
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Explanation of the Customer Value Proposition Canvas
This model is basically used to understand that product has significant level of values or
not to satisfy the requirement of consumers. This provide an opportunity to gain information on
both i.e. product and customer profile. The main aim associated with this kind of analysis is to
ascertain viability of product in market. This has futuristic benefit where it provide an
opportunity to gain information about aspects or features which are further needed to add in
product to improve its value and making viable to stand in market alone.
In current case, application of Value Proposition Canvas is important because aid in
determining viability of mobile application in market along with detailed level information on
attached values with business idea and its customer profile (Kruger and Steyn, 2019). This has
dual amount of benefits. First, aid in matching values with consumer requirements. Secondly,
help in improving values at initial level to stand in market with high significant level of strength.
The successful application will definitely help in getting success in venture in future period of
time. The another benefit that can be gained from same is satisfaction of the consumer demands.
The detailed level description is provided below in relation to all the associated points of this
canvas with current business idea;
Value proposition
Products and services: The main product of business is customised t-shirts. The main
idea on which whole business will be based is development of mobile application that provides
an opportunity to consumers for further submitting own designs for printing over t-shirts. This
has beneficence in fulfilment of each others separate demands and desires (Kumar and Borbora,
2017).
Gain creators: There are many aspects associated with this business idea and model that
will work as gain creators. The first one is about customised t-shirts where consumers can submit
their own designs to print. This will work as trend changing in clothing industry where it creates
the interest of many segments in business offerings. The mains are youth and one who working
in fashion industry. The another aspect that will work as gain creator is overall digitalised
presence. Here, consumers can submit or draw their on designs over mobile application. Also,
this will get the delivery at provided address directly.
Pain relievers: The main aspects which are attached with current business idea as pain
relievers include customised t-shirts and digitalised operations. Both will be beneficial for
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consumers to save their time. Also, these will help them to be innovative with their presence or
utilise time to in performance of other important functions (Li and DaCosta, 2016).
Customer profile
Gains: The various amount of gains will be attained by consumers from the current
business idea and model. First, it providing an opportunity to get t-shirts according to their own
demand as per prevailing themes. This has beneficence in direction of saving time. Secondly, it
provide an opportunity to perform all actions in digitalised form from any place. This has
beneficence in form of convenience and time saving. It allows consumer to perform further
differentiated nature of actions that will help in gaining some other nature of benefit from
outsiders.
Pains: The number of pains associated with business model are very less. This will occur
in respect of the consumers who are not good in operating digital technologies. Secondly, the
pain will arise due to the technological issues because this might result in delaying performances
and ability of consumers to submit their designs of print (Lindh, 2017).
Customer Jobs: There are any aspects that can be fulfilled by consumers through the use
of these services such as building professional career, satisfying own demand and promoting
social cause in the benefit of society.
Explanation of the ‘Lean’ Business Model Canvas
It is effective model to determine the aspects which are needed to plan for continuing
successful nature of business activities. This will also provide an opportunity to build detailed
level plans in respect to the different contributors of a business. The benefit of this will be
ascertained as grabbing market opportunities and building strategies to reduce market risks. The
another benefit associated with same that aid in determining business model within structural
form. The different aspects in respect of which of planning will be done within this model
includes Key Partners, Key activities, Value Proposition, Customer relations, Market and
Customer segments, Key Resources, Channels, Cost Structure and Revenue Streams & Pricing
Model.
There is huge need of applying same on current business idea. This will aid in planning
of all above mentioned determinants. In future, this level of planning will definitely contribute in
gaining of success in market. The business model canvas and detailed level explanation of
determinants is provided below;
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Key Partners
 Supplier
s of raw
material
 Logistic
handlers
Key activities
 Option
of
customis
ed
designin
g
 Preparat
ion of t-
shirts
accordin
g to
orders
Value
Proposition
 Option of
submitting
own
designs to
print over
t-shirts
Customer
relations
 Providenc
e of good
level after
sales
service
 Customise
d t-shirts
as per
designs
provided
by
consumers
Market and
Customer
segments
 Youth
 Indivi
duals
having
profes
sional
career
in
fashio
n
industr
y
 All
others
who
has
interes
t in
availin
g
similar
kind
of
service
s
Key Resources
 Vans to
transport
delivera
bles
 Human
resource
to
handle
business
activitie
s
 Funds to
continue
business
operatio
Channels
 Social
media is
effective
to
communic
ate and
building
long term
relations
 Any other
digital
sources
that will
help to
associate
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ns with
individual
s digitally
Cost Structure
Cost will be occurred in three major
activities;
 Logistics
 Human resource
 Mobile application development
Revenue Streams & Pricing Model
The main revenue streams of business
includes;
 Delivering of t-shirts as per orders
 Downloading of application by
consumers
The pricing model that will help in getting of
the appropriate results is penetrating.
Key Partners: The main partners that will be helpful in setting business or continuing
regular business actions include raw material suppliers and logistic operators.
Key activities: The main activity on which whole business stands include providence of
customised t-shirts. Here, mobile will be developed with the option of drawing or submitting
own designs.
Value Proposition: There are two aspects that will be helpful in creating of value
includes customised t-shirts and online presence (Margalit and Alfasi, 2016).
Customer relations: The point of online delivery will be effective in nature of building
relation. Also, the whole business model is catchy to create good level relations with consumers.
Market and Customer segments: Recently, focus is only over t shirts. In respect to
same, youth and individuals having belonging with fashion industry will be targetted.
Key Resources: The main resources which are needed to have for continuing business
activities includes human resources, funds, infrastructure and mobile application developer.
Channels: The channels which are effective in direction of building communication
includes social media and many other digital platforms (NE and EC, 2017).
Cost Structure: The main aspects on which major cost will be incurred includes
logistics, mobile application development, infrastructure and human resource.
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Revenue Streams & Pricing Model: The main aspect which is helpful in earning of
major amount of profit includes delivery of customised t shirts. The another option that will
further aid in earning of profits include continuing number of increase in application users.
Description of the possible future developments or changes in direction
The possible number of changes that can be done in the current business model and idea
includes;
 Enhancement in number of offerings means improvement in number of clothing products
additional to t-shirts
 Opening of physical outlets to improve reach and attracting to those which are not good
in digital operations
 Using of diversified channels of marketing and promotion. The one which will be
effective in this direction is omni-channel.
 Regular updations in mobile application for removing bugs and providence of additional
features that will aid in attracting more range of diversified consumers.
 Use of better technology that will able to provide high level of financial security.
Reason to provide finance to this Lean Start-Up
There are many reason associated with current lean start up on the basis of which funds
will be provided to same. These includes;
 Trendy and unique business idea that will provide an opportunity establish business
operations within short period of time i.e. customised t-shirts as per their own drawn or
submitted designs (Rai, Prasad and Murthy, 2017).
 Low amount of competition in customised clothing business.
 Mobile application based business model that has high level of presence in current period
of time.
 Low amount of investment as no need to focus over outlets.
CONCLUSION
It has been concluded from the above report that there is huge importance of planning in
setting of the successful new business. In this regard, Value proposition canvas is important
because this will aid in ascertaining viability of business idea within market. This also has
importance in matching of the product values with consumer needs so further developments can
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be made in case values were not significant in fulfilling of demands. The model of BMC is also
effective in planning of different determinants related ton business. This will help in building
strategies and actions that are needed to perform for continues level of functions.
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REFERENCES
Books and Journals
Aidis, R., 2017. Do institutions matter for entrepreneurial development?. IZA World of Labor.
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.
Ganiya, O., Yinusa, M. A. and Lawal, E. E., 2016. Globalisation and Entrepreneurial
Development in Nigeria: The Challenges and The Opportunities. Bangladesh e-Journal
of Sociology. 13(2).
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.
Li, Y. and DaCosta, M. N., 2016. The enterprise reforms and entrepreneurial development in
China. Journal of the Asia Pacific Economy. 21(2). pp.151-173.
Lindh, I., 2017. Entrepreneurial development and the different aspects of reflection. The
International Journal of Management Education. 15(1). pp.26-38.
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.
NE, I. and EC, I., 2017. Computer Graphics Skills Required for Effective Entrepreneurial
Development. Rev. Eur. Stud.. 9. p.45.
Rai, R. S., Prasad, A. and Murthy, B. K., 2017. A review on intention models for predicting
entrepreneurial behavior. Journal of Entrepreneurship Education. 20(2). pp.1-9.
Stipanović, C., Rudan, E. and Zadel, Z., 2018, January. Possibilities of entrepreneurial
development in cultural tourism of croatian cities. In 24th Biennial International
Congress: Tourism and hospitality industry.
Teague, B., Gorton, M. D. and Liu, Y., 2020. Different pitches for different stages of
entrepreneurial development: the practice of pitching to business
angels. Entrepreneurship & Regional Development. 32(3-4). pp.334-352.
Zhou, W., 2018. Property rights, deregulation, and entrepreneurial development in a transition
economy. Management and Organization Review. 14(1). pp.73-103.
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Appendix 1
The Marketing Plan
To attain effective level of growth in new business, there is need for developing
marketing plan according to current situations and scenarios. Description in respect to both of
these is presented below;
There are large number of opportunities exist in clothing industry. The preferences of
consumers change rapidly. Currently, there is huge demand for wearing clothes on present
themes. This depicts the opportunity in customised clothing business. Also, the amount of
competition is low in same. The size of business under this direction of market in not wide but
significant in respect to the initial level of business operations. The segments that can be
attracted more towards such nature of business operations include youth who loves to experiment
and individuals working in fashion industry. The level of scope in both segments is wide to
establish effective level of profitable business operations (Stipanović, Rudan and Zadel, 2018).
Here, STP is using as the strategy to market operations;
Segmentation: There are four different segments such as demographic, psycho-graphic,
behavioural and geographic. The one which is using to segment is demographic. Here, focus is
provided over youth and professionals in fashion industry.
Targeting: As the business model is digital and also the targetted audience is youth so
social media platforms are in effective reaching towards them. Here, option of initial level
discounting and coupons is effective to attract their attention.
Positioning: This is the method includes about improvement of presence. The option of
SEO and promotional at different digital platforms is effective in nature of position high over
others.
The Operational plan
There are many aspects on which needed to focus before development of the operations
plan. This includes technologies, suppliers, resources, funds etc. There is need to research about
all so able to develop effective level of operational plan by further matching with own level
capacities. There is high level presence of technology in market. Large number of sources exist
from where funds can be raised (Teague, Gorton and Liu, 2020). While talking about suppliers
and resources then these also have significant level of presence. This depicts that all such aspects
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have effective level presence in market and can be used by business according to current level
capacities.
Mobile application is developed with the aid of effective technologies that able to provide
safety to their consumers in all respect. Also, having one production plant with significant
amount of staff members that required for initial level business operations and t-shirts production
as per orders. Here, logistics playing main role in delivering. In this regard, building contract
with private service provider to deliver t-shirts at consumers provided addresses.
The technical Solution and Information Technology plan
Mobile application is developing from private organisation on the contract of 2 years
service. So, any kind of issue will be resolved by them. Here, they also having the duty to secure
the transactions and data of consumers. Also, having contract with organisation to assist their
separate staff team about the workings of application so in future able to handle internally.
The Human Resources and Organisation Plan
Different number of teams exist to handle different business activities. Technical team
having the work related to gaining knowledge about application and resolving issues with the
contracted organisation. One team is working over orders that they received from application.
One team is working in production house to prepare the order on time. One team working over
delivering of same in support with contracted organisation.
The overall plan is about enhancing business value and creating good level of
partnerships with different parties. This has to be done in the manner that aid in securing future
level actions and building sound business operations (Zhou, 2018).
Appendix 2
The Financial Plan
This includes the description about the projected financial aspects associated with current
business;
Cost Structure
Particulars Amount (£)
Human resource 2000
Logistics 3000
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Mobile application development 5500
Total 10500
Revenue Streams
Mobile application downloading
Customised t-shirts
Sources of Finance
Loan from banks
Private loan
Own investment
Friends
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