Luggage Innovation and Business Plan

This assignment delves into the world of luggage innovation and its impact on the business landscape. It examines recent patent applications for innovative luggage designs and features, analyzes cultural dimensions influencing global luggage markets, and explores the role of effective business planning in the success of luggage ventures. Case studies and market trends are also discussed to provide a comprehensive understanding of this dynamic industry.

Running head: ENTREPRENEURSHIP REPORT
1 Cover
Entrepreneurship report
University Name
Student Name
Authors’ Note

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ENTREPRENEURSHIP REPORT
2 Executive Summary
Seasoned travellers already understand the significance of luggage. EzTravel Smart Suitcase
can be regarded as an ultimate product that can help travellers to avert all the trouble and
difficulties that are faced related to luggage. The current report elucidates in detail the
proposed business details that include description of the product, mission and vision
statements along with aims and objectives. In addition to this, the current section also
illustrates industry and market analysis of the proposed business along with the customers
that will be targeted. In addition to this, this study explains target customers and value
propositions of the proposed product/service of the business. Moving further this segment
explains in detail marketing strategy together with marketing mix that are developed for
marketing the product. Furthermore, this section also outlines the operational plan,
management team, resources, financial projections, associated risk factors along with the key
milestones.

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ENTREPRENEURSHIP REPORT
Table of Contents
4 Business Details......................................................................................................................3
4.1 Legal Form...........................................................................................................................3
4.2 Description of product/service.............................................................................................3
4.3 Mission & Vision Statements...............................................................................................4
4.4 Aims and Objectives............................................................................................................4
5. Industry and Market Analysis................................................................................................6
5.1 Industry size, growth and structure......................................................................................6
5.2 Industry and market trends...................................................................................................7
5.3 Market Research Findings (Primary Research Findings)....................................................8
5.4 Market segments and reasons for target market selection...................................................9
5.5 Buyer behaviour across segments......................................................................................10
5.6 Competitor analysis............................................................................................................10
5.7 Key Success Factors...........................................................................................................11
7. Marketing Strategy & Marketing Mix.................................................................................12
8.1 Key Operating Activities....................................................................................................13
8.2 Partnership/Scalability.......................................................................................................14
8.3 Business Controls...............................................................................................................14
8.4 IP Issues.............................................................................................................................15
8.5 Scalability...........................................................................................................................15
9. Management team and company structure...........................................................................15

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ENTREPRENEURSHIP REPORT
10. Resources...........................................................................................................................16
11. Financial Projections..........................................................................................................16
12. Financing Plan & Valuation...............................................................................................17
13. Risks Factors and Mediation (Strategic Options)..............................................................18
14. Key Milestones...................................................................................................................18
14.1 Graphic that details tasks that have the need to be accomplished up to date of launch...19
15. Exit Strategy.......................................................................................................................20

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ENTREPRENEURSHIP REPORT
4 Business Details
4.1 Legal Form
The legal form describes the practical laws that are applicable for doing business in Vietnam.
There are recent developments that are likely to affect businesses on the jurisdictions.
Vietnam has essentially concluded certain negotiations with the European Union on the Free
trade agreements that is the EU-Vietnam Free Trade Agreement. This is anticipated to be
ratified by the member stares of the EU during the year 2018. EVFTA includes the following:
-The complete elimination of particularly custom duties (that includes 99% of the entire tariff
duties) (Trung et al. 2015)
-Reduction of various non-tariff barriers
-Promotion of investment
-Several other matters associated to free trade.
The Vietnamese legal system was primarily modelled on fundamentally the French as well as
Soviet System till the period of late 1980s at the time when Vietnam assumed the policy of
Doi Moi (Trung et al. 2015). In particular, this transformed the entire economy of the nation
from a centrally planned economy to particularly a market oriented economy. However, the
government of the nation also heavily regulates business transactions in association to various
foreign currencies (majorly US dollars). In addition to this, under the investment laws of
Vietnam, there are certain incentives that are obtainable for specific geographic areas as well
as industries, as well as for high-tech along with technologically advanced enterprises. Again,
for a multiple-member limited liability company or else a non-publicly listed corporation, the

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ENTREPRENEURSHIP REPORT
management has the need to apply for particularly an Investment Registration Certificate,
Enterprise Registration Certificate (Trung et al. 2015).
4.2 Description of product/service
EzTravel Smart Suitcase can be referred to as a product that can aid travellers to avert
difficulties associated to luggage. There are certain prominent functions assimilated in this
product namely built in GPS chip that can help in tracking location at real time, built-in scale
to avert overweight, USB port for charging electrical devices and all things are connected to
the smart phone through a specific application.
Description of product features:
4.3 Mission & Vision Statements
Mission: “To offer technologically advanced designer smart suitcase at a revolutionary price,
while directing the way towards socially-conscious business”

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ENTREPRENEURSHIP REPORT
Vision: “To make EzTravel Smart Suitcase an important part of all trips so that travellers can
get pleasure from journey as well as the destination”.
4.4 Aims and Objectives
The primary aim of the proposed business is to enhance the travel experience by delivering
the most dependable, client-responsive, and inexpensive baggage delivery solution offered
globally for travellers.
The objectives of the company is therefore
- To deliver positive travel experiences- Travelling is essentially a stressful activity for
travellers. However, we, the travel bag makers can make their trip enjoyable. We can try hard
to surpass expectation by properly treating the luggage of the clients. The management of the
company intends to depend on their experience as well as expertise to proactively make
certain that all trips can be made easier.
-To earn long lasting loyalty of the consumers- The management of the company has the
goal of having more number of loyal clientele and that is the reason why the entire team of
the business is empowered to arrive at the right decisions for the clients of the company.
Thus, it can be hereby said that the management of the company shows appreciation for the
loyalty of the clients and the role client’s loyalty plays in the process of attainment of
success.
-To communicate proactively as well as honestly-The management of the company intends
to make every effort to anticipate, prevent as well as overcome issues that might perhaps
influence the travel experience of their client.
-To pursue excellence- The management has the objective of attaining excellence and
realising that there is always room for improvement in everything the company does.

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ENTREPRENEURSHIP REPORT
-To foster growth and develop learning experience- The business intends to foster growth
and success. In a bid to continue to attain growth, the business intends to embrace all kinds of
change as a natural procedure of forward progress.
-To present humble, honest attitude and have fun-The administrative team of the company
intends to make every effort for doing the right thing and taking accountability for all the
actions. The business management has the objective of treating the clients, peers, and partners
of business as well as our peers/rivals with utmost respect.
5. Industry and Market Analysis
5.1 Industry size, growth and structure
 Revenue generated from the "Bags & Accessories" segment in Vietnam amounts to
approximately US$69m during the year 2018.
 In this market, revenue is expected to reflect an annual rate of growth as per the
figure of CAGR 2018-2022 of approximately 24.4 % leading to a market volume of
around US$165m during the year 2022 (Anderson et al. 2014).
 In this case, user penetration is at around 6.6 % during 2018 and is anticipated to
strike the rate of 12.2 % during 2022.
 The mean revenue for every user (ARPU) presently amounts to nearly US$11.01
(Ferraro and Briody 2017).

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ENTREPRENEURSHIP REPORT
 However, from a worldwide comparison viewpoint it is revealed that majority of the
revenue is generated from China and that stands at approximately US$27,844m
during the year 2018.
Vietnam can be considered as the world’s fifth largest exporter of the products (suitcases,
backpacks, leather bags, hand bags) to the bag importers of the entire world during the year
2017 as per the statistics cited from the International Leather, Footwear and Handbag
Association (LEFASO). As per LEFASO, the nation Vietnam stands fifth among the ten
largest suitcase exporters, thereby contributing approximately 5.4% to past year’s worldwide
supply. This industry has also reportedly registered a consistent growth of around 10 to 15%
over the last five years as per LEFASO. During the year 2016, approximately 2.5 billion
suitcases as well as handbags were bought throughout the world at the overall cost of
approximately $300 billion (Anderson et al. 2014).
5.2 Industry and market trends
As rightly indicated by Anderson et al. (2014), it is imperative for entrepreneurs to undertake
industry analysis for the purpose of determining the probable obstacles that a new and
innovative business proposition might encounter. Therefore, the entrepreneur can predict the
potential profitability of a particular product founded on whether the overall cost of
penetrating the market is creditable and the proposed product can ensure its suitability and
consistency (Simón-Moya and Revuelto-Taboada 2016)
The five forces Porter’s model can be put to use for comprehending the competitive
advantage of the product in the industry

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ENTREPRENEURSHIP REPORT
Threat of new entrants: This specific market is said to be very new, therefore it might take
some time for new players to generate brand awareness. So, the new entrants in this specific
market would require huge investments in area of marketing and promotion. Nevertheless,
with the novel techniques of the proposed product, it might successfully secure attention of
the targeted clientele. Therefore, intensity of the threat can be considered to be ranging
between high to medium (Hollensen 2015)
Bargaining Power of suppliers: There are very small number of suppliers that have high
technology in the nation and this can direct towards import of new foreign materials.
Therefore, intensity of the threat can be considered to be high.
Bargaining Power of customers: In this case, bargaining power of customers can be
considered to be medium as there is lesser number of alternative products offering the same
advanced features
Threat of substitute products: There are essentially some GPS built in products that might
perhaps be utilized for the purpose of monitoring the luggage, however they are nor very
much user-friendly. Furthermore, EzTravel Smart Suitcase can be regarded as a combination
of different ultimate characteristics and features. Therefore, the threat of substitutes can be
considered to be very low.
Competitive Rivalry: The product cannot necessarily be easily duplicated by another maker
owing to the high level of technical aspects. Therefore, this threat can also be considered to
be very low (Schaper 2014)
5.3 Market Research Findings (Primary Research Findings)
The primary target group of the business are the business as well as leisure travellers who are
necessarily both male and female, having mean income over and above VND 10 millions and

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ENTREPRENEURSHIP REPORT
travel on a regular basis. After deducting the concept assertion, the learner carried out a
Buying Intention Survey that presents the feedback of around 100 respondents from
particularly travellers at various places that include Hanoi,International Noi Bai Airport as
well as Vietnam. This can help in understanding the manner potential consumers can react to
the product EzTravel smart suitcase. It can be observed that more than 80% of the male
respondents were very much inclined to the product since it associated to the technologically
advanced product. Hereby the learner succinctly presented the opportunity of 61% favourable
feedback and this satisfies the desirability, demands as well as justifiability of the proposed
product in the commercial market.
Graph: Graphical Presentation of the percentage of travellers that have inclination to
purchase ESS
(Source: By the authors)
5.4 Market segments and reasons for target market selection
Market Segment

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ENTREPRENEURSHIP REPORT
-Business travellers- Business travellers include both male as well as female of age group
(22 years to 60 years) travel on business trips
-Leisure Travellers-Leisure travellers include both male and female of all age groups
travelling to various places for vacations or social purposes
Reasons for target market selection
Reports suggest that there have been around 42 million luggage bags that went astray and that
resulted in a big difficulty for both business travellers as well as leisure travellers.
Acknowledging these identified problems, the learner proposes this integrated solution of
presenting the technologically advanced smart suitcase that contains ultimate features (Finch
2016). Both these categories or else classes of travellers therefore can acquire the benefits of
these smart suitcases and get rid of the troubles currently faced.
5.5 Buyer behaviour across segments
The behaviour of the buyers across targeted segments are affected by size of the luggage as
well as dimensions, weight of the luggage, feature and functionality of the luggage,
durability, price, brand and environmental friendliness. In order to understand the buying
behaviour of customers, it is also important to understand the entire luggage industry and the
factors that affect the same (McKeever 2016). The airline industry is also seen to have
considerable impact on the buying behaviour as majority of travellers essentially have the
need to adjust different aspects of their travel, including considerations when it comes to this
specific product that is luggage/travel bag.

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ENTREPRENEURSHIP REPORT
5.6 Competitor analysis
The competitors of the proposed business include Sai Gon Bag Company that is Vietnam
based bag manufacturer that has expertise in manufacturing bags such as laptop bags, women
hand bags, travelling bags as well as purses. This company essentially have a wide range of
products of different styles along with materials from which their customers can choose from.
Another firm operating in this segment include the Nguyen Thieu Co. Ltd. This company
produces back pack for soprts, travelling and many others. Essentially, Nguyen also designs
or prints logos as per the customer’s requirement. The present customers of the company are
HPI Corporation, Rensei Education Center and Vietnam Post among many others.
5.7 Key Success Factors
The combinations of significant factors that is required in a bid to accomplish one or more
favourable business goals (McKenzie 2017). The product is very flexible in creative design as
well as technical skills capability. There are very small tools attached to their luggage in

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ENTREPRENEURSHIP REPORT
order to secure and monitor their things. There are very preeminent functions that are
assimilated into this product. Essentially, the GPS chip attached to the suitcase permits the
travellers to monitor the luggage by means of the application. In the meantime, the high-tech
system of locking aids in preventing strangers from intruding on privacy of the luggage as it
can be unlocked or opened with password or fingerprint of the owner. The ESS model also
has incorporated scale that reflects the exact weight of the suitcase. This can help the user to
adjust the weight as per regulations of the airline. The battery of the model can also last toll
100 hours and the overall level of the battery can be identified using colour of the lighting
system of the LED. In this case, the green colour represents 100% and red colour represents
battery level below 20%. Again, the battery can also be put to use as a charger for other
electronic device. In addition to this, the ESS model will also be made available in three
different sizes namely carry on, medium as well as large (Giamanco et al. 2016).
6. Target Customers and Value Propositions
The value propositions refer to the features of the product that can make it attractive to the
customers. These technically advanced features of the product can help the target segment of
customers to avert their current problems by using the features of GPRS tracking, built in
scale, smart phone linking, smart applications, password locked security system and all these
at a reasonable price (Sheikh and Evangelista 2016).
7. Marketing Strategy & Marketing Mix
Marketing Strategy
Explain the “why”: The management intends to share the central question of “:why”. This
means that the people starting the business can let people know the idea behind their
business, the reason why they are here in the market, the purpose they intend to serve. The

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ENTREPRENEURSHIP REPORT
management of the firm can help people get engaged, understand the company and its
products (Bender et al. 2016). The marketing strategy of the firm also includes properly
describing the target audience, listing all the marketing goals and objectives of the
corporation, development of marketing communication strategies and establishing the
marketing budgets.

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ENTREPRENEURSHIP REPORT
Marketing Mix:
Product: EzTravel Smart Suitcase offers product that is technically advanced with broad
range of innovative features (for instance, tracking of location, built-in scale, charger,
password protected lock, smart App and many others) (Selvi 2017)
Price: The management of the firm EzTravel Smart Suitcase intends to offer the product at
prices starting from VND 3500000 to VND 5500000 for every model.
Place: The management of the firm intends to make the product available on different online
shops (for example, Lazada and Zalora among many others). In the near future, the
management of this company also intends to market the product in different department
stores (Selvi 2017)
Promotion: The promotional strategies include use of the e-commerce websites, social media
platforms, endorsement by celebrities, exhibitions/fairs.
8. Operational Plan
8.1 Key Operating Activities
-Development of the idea
-Understanding market trend
-Development of the technical specifics
-Identification of the technical necessities
-Marketing plan
-Budget plan

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ENTREPRENEURSHIP REPORT
-Elaborate plan of operations by the entire business team (manufacturing, sales, service,
finance)
-
8.2 Partnership/Scalability
The new business intends to be a partnership business between three parties with the name as
“Smart Group Sales”. The three partners will be in agreement to execute the business
operations as co-owners (Gardien 2017)
8.3 Business Controls
The business has the need to meet the supplementary investment conditions as well as
restrictions that include the following:
- Restrictions on particularly foreign ownership
-Limitations on certain business sector
-Particular forms of investment necessities
-Geographic limitations (Gardien 2017)
-Conditions and stipulations on particularly the qualifications of Vietnamese partners
-Additional conditions or stipulations related to particular business segments
Essentially, Vietnam acceded to the World Trade Organization (WTO) during the year 2007
and as a matter of accession; it made certain commitments in diverse service segments by
means of Schedule on Specific Commitments in Service. In case of Multiple-member limited
liability company (MLLC), the structure of the management as well as key positions held by
the MLLC are very much alike to the ones of a single-member company, barring the fact that

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ENTREPRENEURSHIP REPORT
it needs to have board of directors where every member is properly represented (Gardien
2017).
8.4 IP Issues
Rights have the need to be registered as well as enforced in Vietnam that is stipulated under
regional laws (Singh et al. 2016). At the time of doing business in the Vietnamese market, it
is important to take into consideration the following IP related factors:
IP rights in Vietnam are very much territorial in nature as well as registrations. It is
necessarily important to register the intellectual property rights (Thuy 2016). In this market,
all the intellectual property rights are administered by the National Office of Intellectual
Property. This authority is accountable for the development of IP stratagem in Vietnam as
well as publishing various suggestions for protection of various forms of intellectual property
(Thuy 2016).

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ENTREPRENEURSHIP REPORT
8.5 Scalability
Vietnam has high technical competency and is said to have good scalability. Essentially, a
scalable business can have company’s earnings increasing at faster pace as compared to that
of the contemporary cost base (McKeever 2016). In essence, it is the scalability that matters
for profitability and growth potential of the business since the factors bearing majority of the
cost aspects do not necessarily take in manufacturing. However, higher amount of investment
have the need to be obtained in a bid to run the business. In actual fact, there are ample
potential manufacturers that can help in making up the mind in doing business.

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ENTREPRENEURSHIP REPORT
9. Management team and company structure
The segment below presents a brief summary of the major accountabilities of the important
people:
Board of Directors: They are anticipated to oversee the entire strategic plans along with
advancements of the firm. Specific regions include soundness of functioning, financial
stability together with long term interests of the specific business.
President: Responsibilities include tactical decision making, assessment of diverse extension
benefits along with strategic alliance as well as effectual administration
Chief Executive Officer: The main accountability is mainly to fit between reserves of the
corporation and diverse peripheral aspects. Responsibilities mainly take in proper operation
of the strategic fit between company’s reserves and different peripheral aspects. However,
liabilities comprise of functioning of regular activities, technical as well as functional
dependability and financial stability.
Director of Finance: Responsibilities include monetary supervision, preservation of assets as
well as management of human resources
Director of Sales and Marketing: Responsibilities include sales development and execution of
marketing programs
Director of Information Technology: Accountabilities mainly comprise of entire effectiveness
of the technology, development of software and information control
10. Resources
The resources include the appropriate man power, machines and technical capacities and the
requisite finance obtained by both debt and equity. The financial resources can be obtained

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ENTREPRENEURSHIP REPORT
by means of both debt and equity. For this purpose, the business has the need to assure a
balanced portfolio for luring more number of financiers as they will assess the prospect of the
business and decide as to whether their investment will bring higher rate of return. Therefore,
the start up business would require the following resources for running the business:
Financial Resources- The most important component of the business can be said to be
funding (McKeever 2016)
Human Resources- The success of the business can be considered to be highly dependent on
the overall talent as well as strength of the members of the staff.
Educational Resources- The entrepreneur also needs to have thorough understanding as
regards the competition in the market, the industry in which the business will function,
system s of information, effective marketing aspects as well as knowledge of the product to
be offered.
Physical Resources- This includes suitable place of work, equipments, telephones, adequate
materials of marketing as well as adequate arrangement of information system (McKeever
2016).
Emotional Resources- The owners need to retain their sanity and at the same time stay
motivated as starting a new business can be considered to be a very demanding endeavour.
11. Financial Projections
Income Projections
The income projections highlight the working of business based on facts and figures that
highlight the efficiency of the business working. Also, the income projections can intertwined

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ENTREPRENEURSHIP REPORT
with the help of sales forecast for the 5 years ahead with cash flow activities and the balance
sheet and profit and loss schedule.
(1) Sales Forecast
(2) Cash flow forecast
(3) Depreciation Schedule
(4) Profit and Loss
Forecast
(5) Balance sheet
(1) SALES
FORECAST
Year 0 2018 2019 2020 2021 2022
Projected Sales
11820,0
0,000
23640,0
0,000
35460,0
0,000
47280,0
0,000
59100,0
0,000
(b) Cost of goods
1182,00,
000
2364,00
,000
3546,00,
000
4728,00,
000
5910,00,
000
Gross Profit
10638,0
0,000
21276,0
0,000
31914,0
0,000
42552,0
0,000
53190,0
0,000
(2) CASHFLOW
FORECAST
Preop
Year 0 1 2 3 4 5
CASH INFLOWS
Cash from Sales
11820,0
0,000
23640,0
0,000
35460,0
0,000
47280,0
0,000
59100,0
0,000
Capital Employed
200,00
,000
200,00,0
00
200,00,
000
200,00,0
00
200,00,0
00
200,00,0
00
Other cash inflows
TOTAL CASH
INFLOW
200,00
,000
12020,0
0,000
23840,0
0,000
35660,0
0,000
47480,0
0,000
59300,0
0,000
CASH OUTFLOWS
Payments for materials
1182,00,
000
2364,00
,000
3546,00,
000
4728,00,
000
5910,00,
000
operating expenses (
) 0

23
ENTREPRENEURSHIP REPORT
Advertisement
6000,00,
000
8000,00
,000
5000,00,
000
5000,00,
000
3000,00,
000
Depreciation
100,00,0
00
100,00,
000
100,00,0
00
100,00,0
00
100,00,0
00
Insurance
500,00,0
00
500,00,
000
500,00,0
00
500,00,0
00
500,00,0
00
Equipment
1800,00,
000
1000,00
,000
1000,00,
000
1000,00,
000
1000,00,
000
Rent 0
2000,00,
000
2000,00
,000
2000,00,
000
2000,00,
000
2000,00,
000
Research and
Development 0
1000,00,
000
1000,00
,000
1000,00,
000
1000,00,
000
1000,00,
000
Wages 0
1000,00,
000
1000,00
,000
1000,00,
000
1000,00,
000
1000,00,
000
Payback Loan 0
7500,00,
000
7500,00,
000
Total Expenditure 0
12400,0
0,000
13600,0
0,000
10600,0
0,000
18100,0
0,000
16100,0
0,000
Net Income Before tax
-
10762,0
0,000
-
1324,00
,000
12314,0
0,000
15452,0
0,000
28090,0
0,000
Income Tax Expenses 0 0 0
2462,80,
000
3090,40,
000
5618,00,
000
Net Income 0
-
10762,0
0,000
1324,00
,000
9851,20,
000
12361,6
0,000
22472,0
0,000
TOTAL CASH
OUTFLOWS 0
4458,00,
000
29564,0
0,000
49374,0
0,000
71832,0
0,000
94290,0
0,000
Cash flow summary
NET CASHFLOW
FOR PERIOD
200,00
,000
7562,00,
000
-
5724,00
,000
-
13714,0
0,000
-
24352,0
0,000
-
34990,0
0,000
OPENING CASH
BALANCE 0
200,00,0
00
7762,00
,000
2038,00,
000
-
11676,0
0,000
-
36028,0
0,000
CLOSING CASH
BALANCE
200,00
,000
7762,00,
000
2038,00
,000
-
11676,0
0,000
-
36028,0
0,000
-
71018,0
0,000
(4) PROFIT AND
LOSS FORECAST
Preop
Year 0 2018 2019 2020 2021 2022
Revenue 0
11820,0
0,000
23640,0
0,000
35460,0
0,000
47280,0
0,000
59100,0
0,000

24
ENTREPRENEURSHIP REPORT
Cost of sales 0
1182,00,
000
2364,00
,000
3546,00,
000
4728,00,
000
5910,00,
000
Gross profit 0
10638,0
0,000
21276,0
0,000
31914,0
0,000
42552,0
0,000
53190,0
0,000
Expenses/overheads
Advertisement
6000,00,
000
8000,00
,000
5000,00,
000
5000,00,
000
3000,00,
000
Depreciation
100,00,0
00
100,00,
000
100,00,0
00
100,00,0
00
100,00,0
00
Insurance
500,00,0
00
500,00,
000
500,00,0
00
500,00,0
00
500,00,0
00
Equipment
1800,00,
000
1000,00
,000
1000,00,
000
1000,00,
000
1000,00,
000
Rent
2000,00,
000
2000,00
,000
2000,00,
000
2000,00,
000
2000,00,
000
Research and
Development
1000,00,
000
1000,00
,000
1000,00,
000
1000,00,
000
1000,00,
000
Wages
1000,00,
000
1000,00
,000
1000,00,
000
1000,00,
000
1000,00,
000
Payback Loan 0 0 0
7500,00,
000
7500,00,
000
Total
expenses/overheads
12400,0
0,000
13600,0
0,000
10600,0
0,000
18100,0
0,000
16100,0
0,000
Profit before tax
-
1762,00,
000
7676,00
,000
21314,0
0,000
24452,0
0,000
37090,0
0,000
Tax @ 30%
-
528,60,0
00
2302,80
,000
6394,20,
000
7335,60,
000
11127,0
0,000
Profit after tax
-
1233,40,
000
5373,20
,000
14919,8
0,000
17116,4
0,000
25963,0
0,000
Transfer to reserves
-
1762,00,
000
7676,00
,000
21314,0
0,000
24452,0
0,000
37090,0
0,000
Balance Sheet
Assets 2018 2019 2020 2021 2022
Current Assets
Cash 11820000
00
23640000
00
354600
0000
472800
0000
591000
0000

25
ENTREPRENEURSHIP REPORT
Accounts receivable 11820000
00
23640000
00
354600
0000
472800
0000
591000
0000
Total current assets 23640000
00
47280000
00
709200
0000
945600
0000
118200
00000
Fixed (Long-Term) Assets
Equipment 18000000
0
10000000
0
100000
000
100000
000
100000
000
Less: Depreciation 10000000 10000000 100000
00
100000
00
100000
00
Total fixed assets 19000000
0
11000000
0
110000
000
110000
000
110000
000
Total Assets 25540000
00
48380000
00
720200
0000
956600
0000
119300
00000
Liabilities and Owner's Equity
Current Liabilities
Accounts payable 28853850
00
32817085
00
291802
4350
465433
1785
449062
9963
Accrued Rent 150000 150000 150000 150000 150000
Bank Charges Payable 100000 100000 100000 100000 100000
Income taxes payable -
52860000
23028000
0
639420
000
733560
000
111270
0000
Accrued salaries and wages 550000 605000 665500 732050 805255
General Expenses 65000 71500 78650 86515 95167
Lease Payment 150000 165000 181500 199650 219615
Total current liabilities 28335400
00
35130800
00
355862
0000
538916
0000
560470
0000
Owner's Equity
Owner's investment 20000000 20000000 200000
00
200000
00
200000
00
Net Profits
-
12334000
0
53732000
0
149198
0000
171164
0000
259630
0000
Reserve and Surplus
-
17620000
0
76760000
0
213140
0000
244520
0000
370900
0000
Total owner's equity
-
27954000
0
13249200
00
364338
0000
417684
0000
632530
0000
Total Liabilities and Owner's
Equity
25540000
00
48380000
00
720200
0000
956600
0000
119300
00000
{42}
Common Financial Ratios
Debt Ratio (Total Liabilities /
Total Assets) 1.11 0.73 0.49 0.56 0.47
Current Ratio (Current Assets /
Current Liabilities) 0.83 1.35 1.99 1.75 2.11
Working Capital (Current

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ENTREPRENEURSHIP REPORT
Assets - Current Liabilities) (4695,40,
000)
12149,20,
000
35333,8
0,000
40668,4
0,000
62153,0
0,000
Assets-to-Equity Ratio (Total
Assets / Owner's Equity) -9.14 3.65 1.98 2.29 1.89
Debt-to-Equity Ratio (Total
Liabilities / Owner's Equity) -10.14 2.65 0.98 1.29 0.89
The financial plan and forecast needs to be analysed and have checked that the company will
improve with its activities in the 5 year period.
12. Financing Plan & Valuation
The corporation can plan to acquire funds in different manners; nevertheless depending on an
financier can be considered to be the most familiar approach. Corporations have the need to
assure a balanced portfolio for the purpose of attracting financiers as they will assess the
same and decide about their investment (Babin and Zikmund 2015). Again, this business can
receive funds from investment corporation - (Vietnam Innovative Startup Accelerator) also
simply referred to as VIISA that is necessarily inclined in developing project associated to
high technology. In this case, the proposer and owner of the business can fund amounting to
VND 5 billion from external financier and for that purpose disburse interest at the rate of 3%.
13. Risks Factors and Mediation (Strategic Options)
Inability of financiers to deliver the entire investment amount or else a complete
withdrawal of investment
The business has the need to negotiate with the present financiers or look for another source
of investment. Essentially, the firm can depend on crowd funding on condition that it has the
need to assure its profitability that is generally the possibility of the business operation to
essentially the customers before acquiring the fund (Ren et al. 2015).

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ENTREPRENEURSHIP REPORT
Issues of illegal duplication
In the current scenario, the entrepreneur has the need to issue patent for the new
technologically advanced product (Nepal and Chotiyaputta 2016)
Issues in the process of manufacturing
Getting a substitute manufacturer can be an issue with mainly the primary manufacturers. In
this case the corporation needs to sketch out a price deal as the back up manufacturing firms
can essentially push the product’s price upward in times of emergency (Trinh 2016).
14. Key Milestones
Milestone Table
Tasks Date
Initial fund contribution January 2018
Establishment of legal entity January 2018
Initial content for localization February 2018
Vietnam launch February 2018

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ENTREPRENEURSHIP REPORT
14.1 Graphic that details tasks that have the need to be accomplished up to date of
launch
Illustration of the business
details
Exhaustive industry and
market research
Selection of target customers
Adoption of marketing
strategy
Adoption of operation plan
Selection of the managemnt
team and structure of business
Planning the resources of the
firm
Financial Projection, planning
and valuation
Analysis of risk factors
Establishment of key
milestones

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ENTREPRENEURSHIP REPORT
15. Exit Strategy
The co-owners of the firm can lessen or else eliminate their stake in the business by means of
liquidation, friendly selling or else by entering into merger or else acquisitions. In case of
mergers and acquisitions, these kinds of business transactions normally refer to merging with
a similar kind of corporation as well as larger company. This kind of exit is primarily chosen
by big corporations and can be adopted by start ups (McKeever 2016). However, the
management of the company discover that the firm has become insolvent, then they might
consider liquidating the firm and consider dividing the assets among shareholders as well as
creditors.

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ENTREPRENEURSHIP REPORT
16. References
Anderson, D.R., Sweeney, D.J., Williams, T.A., Camm, J.D. and Cochran, J.J.,
2014. Statistics for business & economics, revised. Cengage Learning.
Babin, B.J. and Zikmund, W.G., 2015. Exploring marketing research. Cengage Learning.
Bender, M., Childress, R.L., Kumhyr, D.B. and Spisak, M.J., International Business
Machines Corporation, 2016. Luggage contents recommendations and tracking. U.S. Patent
9,454,728.
Ferraro, G.P. and Briody, E.K., 2017. The cultural dimension of global business. Taylor &
Francis.
Finch, B., 2016. How to write a business plan. Kogan Page Publishers.
Gardien, K.E., 2017. Bag Checker: How hand luggage overload disrupts Transavia processes
& experience.
Giamanco, J.R., Campanelli, K. and Antonellis, V., 2016. Portable, mountable case for
wheeled luggage and rolling tool bags. U.S. Patent 9,381,932.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
McKeever, M., 2016. How to write a business plan. Nolo.
McKenzie, D., 2017. Identifying and spurring high-growth entrepreneurship: experimental
evidence from a business plan competition. American Economic Review, 107(8), pp.2278-
2307.
Nepal, S. and Chotiyaputta, V., 2016. Operation risk management: A case study of baggage
logistics technology at Munich Airport. Panyapiwat J, 8, pp.273-282.

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ENTREPRENEURSHIP REPORT
Ren, S., Collins, N. and Ying, Z., 2015. Business leadership in transitional economies of
China and Vietnam.
Schaper, M.T., Volery, T., Weber, P.C. and Gibson, B., 2014. Entrepreneurship and small
business.
Selvi, S., IT Luggage Ltd, 2017. Improvements in and relating to an article of luggage. U.S.
Patent Application 15/312,240.
Sheikh, E.Y. and Evangelista, A., HEYS INTERNATIONAL Ltd, 2016. Hybrid luggage bag.
U.S. Patent Application 14/795,112.
Simón-Moya, V. and Revuelto-Taboada, L., 2016. Revising the predictive capability of
business plan quality for new firm survival using qualitative comparative analysis. Journal of
Business Research, 69(4), pp.1351-1356.
Singh, A., Meshram, S., Gujar, T. and Wankhede, P.R., 2016, December. Baggage tracing
and handling system using RFID and IoT for airports. In Computing, Analytics and Security
Trends (CAST), International Conference on (pp. 466-470). IEEE.
Thuy, N.T., 2016. Geographical Indications and quality promotion of agricultural products in
Vietnam: an analysis of government roles.
Trinh, B., 2016. Measuring the effective rate of protection in Vietnam’s economy with
emphasis on the manufacturing industry: An input-output approach.
Trung, N.K., Linh, N.T.D. and Thi, D.B.V., 2015. New factor of environment franchise and
its influence on business performance of franchise outlets in food and beverage industry: case
of Vietnam. International Journal of Trade and Global Markets, 8(3), pp.223-236.

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17. Appendices