Venture Development Proposal: Airport Capsule Hotel

Venture development proposal:
Airport Capsule Hotel

Table of Contents
INTRODUCTION...........................................................................................................................1
PART B...........................................................................................................................................1
Introduction..................................................................................................................................1
Customer value proposition.........................................................................................................2
Lean Business model canvas.......................................................................................................4
Specialist contribution.................................................................................................................7
Financial and financial plan.........................................................................................................8
Summary....................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business planning can be defined as process of making plan before starting any new
business (Bursik, Jackson and Cyr, 2017). Lean start-up needs huge investment and without
having proper plan entrepreneur might can get to run business successfully in the market. Present
study is based on Capsule hotel. Entrepreneur is planning to open this hotel at Heathrow airport
where low cost and internal passengers both come. Business plan will explain the business
profile and will prepare canvas model of it. Furthermore, financial analyses will be done and
customer value proposition map will be prepared.
PART B
Introduction
Lean startups can be described as process of developing a business. It generally contains
such products that have shorten product development cycle. Most of the entrepreneurs work on
lean startup by using business hypotheses driven experimentation method (WYRED Consortium,
2018). The main concept of such kind of business is to invest in such projects that are able to
generate profit. Companies work on such kind of projects that are able to meet needs of
consumers so that market risk can be minimised.
Entrepreneur is planning to open Airport Capsule hotel which is going to be work on
busiest terminal of Heathrow Airport. The main idea in this business is that hotel will offer
accommodation services to all the passengers that come to airport. It will ensure offering
accessible boxes room to them alone with bathroom facilities. The price which will charged from
customers will be affordable hence all range of consumers can take interest in products and
services of this hotel (Kidambi, 2017). Capsule hotel will provide short term accommodation
facilities to the people those who are travelling through international connection flights and low
cost flights. As hotel is charging nominal cost from consumers hence people can get luxurious
facilities when flight is delay or late. They can get a comfortable place where they can take
proper rest and can enjoy their time easily. This hotel will be placed at Heathrow terminal 3 at
ground level (Rimm, 2016).
Entrepreneur is planning to generate more profit by investing capital in right direction.
As there are many hotels available but all they are very costly because many international
travellers come to the Heathrow Airport, they want luxurious services and they do not really take
care about cost. If they are getting satisfactory services, then they are ready to pay high cost for
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the same. But the concept of offering affordable launches and accommodations facilities to the
travellers will attract more consumers hence profitability of company can be raised in significant
manner in next three years (Cant, 2016).
Profit margin of company for next three years of operations
Particulars year 1 Year 2 year 3
Cash inflows
Opening cash inflow 300000 345000 396750
Sales revenue 150000 170000 185000
Other income 40000 50000 60000
Total cash inflows 490000 565000 641750
Cash outflows
Material 100000 70000 120000
Labour 150000 165000 180000
Other expenses 30000 32000 35000
Administration ex-
penses 65000 65000 65000
Total cash outflows 345000 332000 400000
cash balance 145000 233000 241750
Customer value proposition
Customer value proposition is the tool that describes the value which is being provided to
consumers by business. This is very important for Capsule hotel to ensure needs of consumers
and offer them products that can satisfy needs of buyers to great extent. Each company wants to
serve its consumers well, it always wants to meet expectation of buyers so that they feel happy
and retain in business for longer duration. If companies fail to serve them well then it may create
problem for firm only (Antunes, 2016). Capsule hotel is going to provide luxurious services to its
potential buyers hence company always ensures that target users always feel happy after
experiencing products of hotel. The main target customer of Capsule hotel are travellers those
who use low cost or international flights frequently.
Customer value proposition has two major elements: customer profile and value
proposition.
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