Entrepreneurship Development: A Business Plan for Custom Shoe Sales

This report explores the entrepreneurial development of a "Custom-made shoe sales" business idea by Feet Master, focusing on designing, manufacturing, and selling shoes for people with different foot sizes. It highlights business objectives for the first three years, including launching successfully, attracting customers, and enhancing profits by 2% annually. The report utilizes the Customer Value Proposition Canvas to analyze customer gains, pains, and jobs, and the Lean Business Model Canvas to visualize key partners, activities, value propositions, customer relationships, segments, resources, channels, cost structure, and revenue streams. A detailed development plan is outlined, along with a critical evaluation considering future developments and changes in customer needs. The report concludes by summarizing the reasons for a profitable, investable entrepreneurial opportunity and competitive bearing in the context of the business idea. Desklib offers more resources for students, including past papers and solved assignments.

Entrepreneurship
Development

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
BUSINESS OBJECTIVES..............................................................................................................1
VALUE CREATION: CUSTOMER VALUE PROPOSITION CANVAS....................................2
VALUE CAPTURE: ‘LEAN’ BUSINESS MODEL CANVAS.....................................................4
DETAILED DEVELOPMENT PLAN............................................................................................7
CRITICAL EVALUATION OF PLAN AND POSSIBLE FUTURE DEVELOPMENTS,
CHANGES IN CUSTOMER NEEDS, COMPETITORS MOVE WHICH NEEDS TO BE
ACCOUNTED.................................................................................................................................9
SUMMARY...................................................................................................................................10
REFERENCES..............................................................................................................................11
APPENDIX....................................................................................................................................12
Primary and secondary research................................................................................................12

INTRODUCTION
Entrepreneurs possesses certain kind of traits as well as competencies that are underlying
qualities of entrepreneurs leading to superior performance. Entrepreneurial development is
described to an activity to improve entrepreneurial skill set addition to knowledge through
effective structure training programme. It widens base of entrepreneurs that assist them for
establishing a new firm with unique business idea to attain goals and contribute in economic
development of a nation (Blancheton and Hlady-Rispal, 2021). Key purpose of entrepreneurial
development is to earn profits and meet demands of market. It helps entrepreneurs to have
understanding about sources of support, acquisition of essential management skills, formulating
product proposal and many more. When it is done successfully, it revolutionaries improvements
in living standards of society. For gaining insights about entrepreneurial development, selected
business idea is “Custom-made shoe sales” by Feet Master. The business idea aims to design,
manufacture and sell shoes for people wearing different numbers. Lean characteristics of the
business idea is that it enhances variations in shorter life cycle for customise shoe, understanding
of demand among people wearing shoe of different numbers, making process flow and pursuing
perfection.
The report highlights business objectives for first three years of practices, customer value
proposition canvas and lean business model canvas. It further includes detailed development
plan, evaluation of plan along with possible future developments. At last, it summarises reason
for profitable, investable entrepreneurial opportunity and competing bearing in context to the
business idea.
BUSINESS OBJECTIVES
A business idea of “Custom-made shoe sales” is formed by Feet Master. It is a new business
idea that is planning to establish in London, UK. The aim behind the business idea to meet
demand for shoes of people with different numbers. The purpose of the business is to design,
manufacture and sale shoes of superior quality according to preferences of target audiences and
protecting health of their feet (Hirano and Tobin,2018). It will offer various pre made styles that
are custom crafted for fitting the foot of people on the basis of measurement they provide.
Mentioned below are key objectives of custom-made shoe sales for upcoming three years of Feet
Master:
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 To launch the business idea successfully in market and achieve positive customer
response.
 To attract large number of people wearing different size of shoes and having huge
preferences for custom made shoes.
 To enhance profits by 2% each year so to generate funds for carrying out business
operations in future.
Estimated sales for Custom-made shoe sales of Feet Master is 2000 units. It is further
estimates that the company will enhance it by 10% each year. Calculations for predicted profit
and sales for the business idea for upcoming three years are underneath:
As per mentioned table, estimates sales for custom made shoe of Feet Master for
upcoming three years are 60000, 66000 and 726000 pounds respectively. Estimated profits for
the business idea for first year is pound 40000 second year is pound 44000 and pound 48400 for
third year. Percentage of profit margin of the business idea is nearby to 66.67%.
VALUE CREATION: CUSTOMER VALUE PROPOSITION CANVAS
Value proposition canvas is propounded by Dr Alexander Osterwalder as a model which
ensures offerings or business idea is positioned nearby to customers’ needs addition to values
(Hlady-Rispal and Blancheton, 2020). It shows fit among product and market. In a business for
example, Feet Master, use of Value proposition canvas is to analyse requirement of refining any
product. It is formed around two building blocks named as customer profile together with
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organisational value proposition. For business idea that is custom made shoe sales of Feet
Master, Value proposition canvas is underneath:
Customer profile:
 Gains: It refers to the benefits that are expected by customers or the aspects of business
idea that delights customers to make purchase decision (Jha, 2020). In other words, the
things which enhance likelihood to accept value proposition are gains. In context to
business idea of Custom-made shoe sales of Feet Master, gains are saving time to shop,
ease sharing kind of shoe to wear and wide choices of shoes for distinct size.
 Pains: These are negative emotions along risks which a customer can experience while
getting job done. For Custom-made shoe sales of Feet Master, pains are limited time for
shopping and restricted shoe of distinct feet sizes.
 Customer jobs: It comprises social, emotional along with functional tasks which
customers try for performing, issues to solve and requirements they wish for satisfaction.
In aspect to Custom-made shoe sales of Feet Master, customer jobs are to sharing
information related to requirement of shoe and making payments on prompt basis.
Value map:
 Gain creators: It defines how a product or offering of company can create gains as well
as ways it offers additional customer values. In reference to Custom-made shoe sales of
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Feet Master, gain creators are variant customised shoe choices, sustainable material and
online & offline services to deliver customise shoe.
 Pain relievers: It comprises description of ways the offering or business idea as well as
how it alleviates pains of target audience (Kenny, 2020). For Custom-made shoe sales of
Feet Master, pain relievers entail fast delivery and service, dedicated and reliable
customised shoe sale along with availability of variant customised shoe or footwear.
 Products and services: It creates gain together with relive pain. It also underpins value
creation for customers. Products and services of Feet Master for the business idea
includes customised shoes as per preferences of customers and consultation with clients.
VALUE CAPTURE: ‘LEAN’ BUSINESS MODEL CANVAS
Lean business model canvas is developed for creating quick visualisation of idea, sharing it
addition to getting a feedback. With the help of lean business model canvas, entrepreneur of
Custom-made shoe sales of Feet Master gets ideas out of mental space as well as write them
fastly. It permits organisational entrepreneurs to describe, design, invent, pivot together with
challenge business model (Ligtvoet, 2018). The elements of the lean business model canvas in
association to Custom-made shoe sales of Feet Master are as follows:
Key partners
 Suppliers
 Investors
 Customer
s
 Employe
es
Key activities
 Market
Research
 Designing
 Promoting
 Advertiseme
nt
 Selling
Value
proposition
 Establishi
ng suitable
price for
customise
d shoes.
 Providing
good
experience
to the
customers.
Customer
relationships
 Personali
sation
 Fast
service.
 Good
quality of
customise
d shoes.
Customer
segment
 All age
group.
 People
living in
London,
UK.
 People
wearing
different
number.
Key resources
 Financial
resources.
 Intellectual
Channels
 Online
advertise
ments.
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property
resources.
 Physical
resources.
 Referral
programs.
 Different
E-
commerc
e
websites.
Cost structure
 Rent.
 Salaries.
 Market research.
 Advertisement, marketing and
promotions.
 Cost of material for customise shoe.
Revenue stream
 Sales through shoe shops.
 Revenues from sales.
 Income from online promotions.
Key partners: For optimising operations addition to reducing risks, it is essential to build
effective relationships with key partners. It includes relationship which an enterprise devise with
others for work context. In a business, there are certain number of internal and external partners
that are seen as key partners. For business idea of Custom-made shoe sales of Feet Master, key
partners are suppliers, employees, investors and customers for executing all operations
systematically.
Key activities: It represents practices that a business is required for undertaking to
achieve success (Muthambi, 2020). One of activity of business idea that is Custom-made shoe
sales of Feet Master is to design, manufacture, promote and sell customised shoes for people
with different number. Along with this, key activities of the business idea include market
research, designing, promoting, advertisement and selling.
Value proposition: It is defined to collection of commodities and services that an
organisation offers for satisfying customer needs. It distinguishes the business or business idea
from its rivals. It provides values with the help of certain elements including newness,
customisation, cost reduction and many more. For Custom-made shoe sales of Feet Master, value
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proposition includes establishing suitable price for customised shoes and providing good
experience to the customers.
Customer relationships: It is kind of relationships which a business venture establish
with particular segment of customers. It is necessary for an enterprise to clarify kind of
relationship they prefer to establish. In context to custom-made shoe sales of Feet Master,
customer relationships are set as per personalisation, fast service and good quality of customised
shoes.
Customer segment: It is variant groups of people the entity has desires to reach as well
as serve. For building effective model, it is significant for entrepreneurs to identify customers
that it tries to serve. Customer segment of business idea that is Custom-made shoe sales of Feet
Master are population of all age group, living in London, UK and wearing different number of
shoes.
Key resources: It comprises of resources which are significant to devise customer values
(Muthambi, 2020). These are seen as major assets of enterprise as they help in sustaining and
support business and its idea. For Custom-made shoe sales of Feet Master, key resources are
human resources, intellectual property resources and physical resources.
Channels: To deliver value propositions to end customer, various channels are required
by an organisation. Effective channel guides to distribute or enable availability of organisational
offerings in cost effective manner. In aspect to business idea of Custom-made shoe sales of Feet
Master, channels are online advertisements, referral programs and different E-commerce
websites.
Cost structure: The element defines most significant monetary consequences at the time
of operating business model. Cost structure for Custom-made shoe sales of Feet Master includes
costs incurred from rent, salaries, market research, material cost for customise shoe and other
activities.
Revenue stream: It elaborates hoe a business idea makes or generates income from all
segments of target audience. For Custom-made shoe sales of Feet Master, there are certain
sources to earn money so to continue business operations. Key revenue streams for proposed
business idea are sales through shoe shops, revenues from sales and income from online
promotions.
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DETAILED DEVELOPMENT PLAN
Marketing Plan
Marketing plan refers to a document which layout the marketing effort within business
for upcoming period that is generally in a year. It also provide the marketing strategy, advertising
activity, promotional activity plan for certain period. Marketing plan includes some element
which includes product, price, promotion, place, person, process along with physical evidence.
Marketing plan refers to measure target market which can effectively increase benefit for the
organization. This can be factor for increasing growth and development of business. There are
targeted customer which includes majorly adults. They are in large number and are targeted for
marketing plan and can increase profitability for the organization.
This can also provide overall growth for the business organization. For this, there is use
of digital marketing tool which is one of the effective strategy for promotion of the organization
through online platform. There are huge number of customer present at the online platform who
can get attracted towards the promotion and organizational product. With the help of primary and
secondary sources, organization can also develop their marketing plan according to targeted
customer interest. Adult are highly active on social media where organization can promote their
product and can attract a large number of customer base for their business. This can be effective
and can provide use business to Feet Master.
The operational plan
Operational plan refers to a practical document without any activity along with target
with an organization that undertake within a time period generally in one year. In operational
plan, there is need to create a plan, department leader along with manager which can follow
some basic steps like plotting operational plan, setting goal, planning budget, creating
management system and making adjustment when necessary.
Plot the operational plan- In this, there is need to overview of purpose which can be
highly effective and helpful in planning the operational plan.
Set goals- In this, organization Feet Master needs to decide their goal which is to provide
source of superior quality to their target customer.
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Planning the budget- This is the one step in which Feet Master need to plan their budget
which can be effective and can include all the necessary operations to perform more effective
and help to manage the business operation within limit.
Creating management system- In this step, Feet Master need to create a system of
reporting which can be effective to include all the business operation. In this, system reporting
should be two way. Upper to lower and lower to upper management to operate business more
effectively.
Making adjustment when necessary- This is the crucial step for a new business
organization. In this, when any type of issue comes during operation then there is need to make
some adjustments which are necessary to do. This can be helpful in operating business more
precisely and delivers better outcome.
Technical solution along with information technology plan
In information technology, strategic plan refers to a document which includes detailed of
comprehensive technology enable business management process within business organization
that can be used for different operations. There is need to use the technology which can be cost-
effective and provide positive outcome for promoting and advertising business and business
product. Feet Master should also hire higher technical support or outsourcing their technical
support which can help to easily manage this business operation and provide better outcome for
managing business. Through using technology, Feet Master can promote their business through
online. This can help to increase customer base and enhance the organizational profit. Feet
Master should also focus on information technology plan that can enable them to a statically
share their information with their management and provide information to their customer
according to their need. This can help to attract them towards the organization and their products
(Owoseni, Hatsu and Tolani, 2021).
Human resources and Organization plan
In this development plan, there is need to manage human resources that are highly
necessary for proceeding all the business operation within Feet Master. Each and every staff
member are highly required to effectively process the business operation through managing
human resource. Feet Master is able to manage organizational plan more effectively. They can
proceed all the strategy and implement them effectively for enhancing their business operation.
Human resource should have high skill which can provide better relationship with their customer
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and can enable them to come again for their purchase. This can be helpful and attract large
number of customer and provide high benefit to the Feet Master. Human resource are the one
who have the ability to attract large number of customer by making better relationship with them.
This can help to deal with customer more precisely and influence them to purchase their product
from there organization. Communication plays an important role in managing better relationship
between organizational staff member and their customer. Through effective communication Feet
Master’s staff member should be able to make large number of valuable customer for their
business.
Financial plan
The startup is financially viable and profitable because there are large number of
customer base who are sensitive about their shoe wear. Feet Master have large number of
customer base who are attracted towards quality product that can make them feel confident and
valuable. Feet Master should provide such feeling to their customer with high impact. Due to
this, this startup is profitable and financially viable (Scranton, 2018).
CRITICAL EVALUATION OF PLAN AND POSSIBLE FUTURE
DEVELOPMENTS, CHANGES IN CUSTOMER NEEDS,
COMPETITORS MOVE WHICH NEEDS TO BE ACCOUNTED
It is necessary that there is continuous change in future development of foot wear
industry in which Feet Master should take care and focus on their future as chances of
development. In this, there is need to deliver quality product with better and effective services
that can be highly effective and allow Feet Master to make valuable customer base by making
loyal customer. Feet Master can take future business and take participate in future development
in footwear (Tulchinsky, 2019). Future development in footwear industry can change to promote
product. There is also need to take care of competitors move and should compete effectively that
there should not be any type of losing of customer base. There is also need to take care of
customer needs which can be changes with time. So, feat master need to get updated with the
changing customer need to get accounted for business. This can allow to stay in business and get
a possible future development for competing with competitive and earn more profit (Thanailaki,
2021).
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