QAB020X613A - Entrepreneurship: Lean Start-up Barbecue Truck

This report outlines a lean start-up business plan for a 'Barbecue Truck Treats' venture in the UK. It details the objectives for the first three years, focusing on affordability, customer satisfaction, and profitability. The report includes a Customer Value Proposition Canvas, analyzing customer gains, pains, and jobs, alongside value map components like gain creators and pain relievers. A Lean Business Model Canvas is presented, addressing problems, solutions, and key metrics. The plan also incorporates a detailed development strategy covering marketing, operations, and human resources, with break-even analysis and cost structure projections. The document, contributed by a student and available on Desklib, provides a comprehensive overview of establishing and scaling a lean start-up in the food industry.

Assessment

Contents
Contents...........................................................................................................................................2
INTRODUCTION TO LEAN START-UP.....................................................................................1
OBJECTIVES OF BUSINESS........................................................................................................1
VALUE CREATION: CUSTOMER VALUE PROPOSITION CANVAS MINIMUM VIABLE
PRODUCT.......................................................................................................................................2
Value Capture: ‘Lean’ Business Model Canvas..............................................................................4
Detailed Development Plan.............................................................................................................5
Future developments, competitor moves, changes in customer needs............................................8
CONCLUSION................................................................................................................................8
APPENDIX....................................................................................................................................11

INTRODUCTION TO LEAN START-UP
Lean Start-up is described to a methodology to establish a venture and products with
objective of shorten development cycles addition to rapidly discovering when proposed idea is
viable (Hwang and Shin, 2019). It is attained with the help of adopting combination of
hypothesis driven experimentation addition to iterative product releases. It majority focuses on
customer- related information like churn rate, product popularity and many more. Under this,
entrepreneurs identify problem and then develops a viable product that allows them to introduce
it to potential customers. Similarly, entrepreneurial development can be referred as enhancement
of knowledge and skills of entrepreneur through various classroom coaching and training. It aids
new ventures to achieve their goals, improve business and nation's economy effectively as well
as effectively. It focuses on encouraging innovative practices in order to evaluate growth
potential of an enterprise. For the assessment, a business idea is “Barbecue Truck Treats” that is
lean start up established for providing variant dishes on vehicle to wider population of UK. Lean
features of the business idea is that it understands demand of people for variant food and
beverages, emphasises on metrics and permit entrepreneur for developing products that are based
on desires of market.
The assessment highlights information about lean startup, business objectives for first
three operational years and Value Proposition Canvas Diagram. It also entails Lean Business
Model Canvas Diagram, detailed development plan and evaluation of plan on the basis of certain
factors. At last, it includes a summary demonstrating reasons for business profitable, value
creating lean and many more.
OBJECTIVES OF BUSINESS
Barbecue Truck Treats is a business idea established to provide variant dishes to wider
popular of different areas of UK. It aims to provide variant of dishes and beverages at pocket
friendly prices. Target customers may select from wider range of beverages and dishes with its
menu including most of cuisines that they think of. Purpose of such business idea is to offer
variant food and drink items with safer and healthier alternatives to street food. For first three
years of operations, objectives of Barbecue Truck Treats are underneath:
 To offer affordable dishes and beverages in the city at pocket friendly prices.
 To satisfy needs of wider audience for variant food items.
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 To establish networking with clients and customers.
 To make profits and increase sales volume each year.
Other than above mentioned objectives of Barbecue Truck Treats, there are certain financial
objectives set by the entrepreneur of lean startup. Estimates sales for Barbecue Truck Treats is
2000 units and the entrepreneur aims to enhance it each year by 10%. Anticipated profit and
sales for the lean start-up for first three operational years are presented below:
From the above table, it is analysed that estimated sales for Barbecue Truck Treats in first
three operational years are £ 60000, £ 66000 along with £ 726000 respectively. For first three
operational years, estimated profits for Barbecue Truck Treats are £ 40000, £ 44000 and £
48400.
VALUE CREATION: CUSTOMER VALUE PROPOSITION CANVAS
MINIMUM VIABLE PRODUCT
Value Proposition Canvas is termed as strategic business tool which helps in ensuring that a
product or service is positioned in accordance with customer value and needs (Lizarelli and Et.
Al., 2021). It assists in finding various factors that affect customer decisions and aids in realising
gains in value propositions. It is beneficial for organisation to improve operational efficiency of
business. For Barbecue Truck Treats, diagram and explanation of customer value proposition
canvas is as follows:
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Customer Profile:
 Gains- These are positive experience that customers have with them. It is existential as
well as free of extraordinary nature and includes things which make customers satisfied
or even happy (Mansoori, 2017). In context to Barbecue Truck Treats, gains with
customer have are saved time, peace of mind and control on intake of food. This
company is making efforts in pleasing their customers so as to gain large customer base
and create their identity in marketplace.
 Pains- These primarily includes negative experiences and frustrating outcomes shown by
customers when company fails to perform as their desire. In relevance to Barbecue
Trucks Treat, pain includes lack of dedication in catering and uncertainty towards food
sources. These negative experiences leas to bad image of business in front of public
results in losing of existing customer base.
 Customer Jobs- This refers to end-to-end process by which a consumer goes through in
case they want a specific good or service. This process starts when customer desires
about something and ends up when they are satisfied by object they get. In context to
Barbecue Trucks Treat, it includes ordering carious dishes, beverages etc. through online
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or physical stores, paying bills with cash or card and satisfaction of choosing sustainable
lifestyle.
Value Map
 Gain creators: It refers to gain received by company in terms of increase of its customers
through its products or services along with their benefits or what did they offered to its
customers. In context of Barbecue Truck Treats, gain creators are food trucks that offer
delicious food to its customers at different locations along with its home delivery services
to its customers at their doorsteps.
 Pain relievers: This comprises ways by which product or services of a company lowers
negativity or pain of its customer while providing them satisfaction (Blank and Euchner,
2018). For Barbecue Truck Treats, its home delivery services as well as its variety list of
tasty meals provide delicious satisfaction to its consumers. Its home delivery service
saves its customer from traffic, crowd etc. while providing them tasty foods at their
comfort zones.
 Product and services: This refers to creating value while creating gains as well as
relieving pains. Variety list of products and services of Barbecue Truck Treats which
includes organic food and beverages provides relief to its customer's pain as well as
creates gains for company. Ready to eat meals saves waiting time for its customers.
Value Capture: ‘Lean’ Business Model Canvas
The business model was created to present several terms of planning and marketing tools
for competitive and business success in the field of the marketplace as in result to it target
particular Li and successfully that combine both small and large management. It may not involve
any mistake to maintain it. As about the Lean Canvas model the start should evaluate by
considering problem and solution and their key metrics that are as follows -
 Problems - A problem box involves it as package various management fails because they
put the higher term of efforts, money and as well as time into developing wrong goods
and services (Gutierrez, 2021). As in result to it usually maintained the first segment of
their problem because it will help them in making sure that they are satisfying their
consumer demands and sustaining their management in the field of the marketplace for a
longer period.
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 Solution - A problem has been identified then the following division is to come up with a
mutual creatable resolution. As per it, the resolution box involves a minimum viable
product (MVP) framework. As it also helped the consumer and the management of the
business in dissolving consumer issues (Nicolò, 2021). It can be done effectively and
efficiently that helps management to sustain the field of the marketplace.
 Key partners - As most of the start-ups deal with unknown and untested products due to
which Barbecue Truck Treats illuminated search division of how most art of do not
require originally stakeholders at the time of their promotions.
Figure 1lean business model canvas, 2021
Detailed Development Plan
 Marketing Plan - The marketing process is an important part of a business plan for a
start-up. Entrepreneurs can look at potential income or income, profitability, or total costs
and expenses through a well - planned budget (BROSIA, 2021). The Barbecue Truck
Treats Lean Start - up budget planning process in this report is divided into two parts.
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This includes break-even analysis and the cost structure of the company. In a marketing
plan, costs are divided into fixed costs and variable costs, and in principle, fixed costs are
used as indirect costs. Fixed costs are incurred regardless of whether the establishment of
the company generates income or profits. Fixed cost headers are listed in the table.
Variable costs may be affected by business decisions that are based on the various
activities of the business. Variable costs change easily, for example, it will rely on how
much production the company needs to produce at any given time and how the company
sells and sells the product, and so on (Amolaro, 2021). The cost structure of Barbecue
Truck Treats is projected for three years and the calculations are shown in the Appendix.
 Operational Plan – It involves the break - even points that are termed to be the method
that is used to estimate how much a company needs to produce before it starts a business
or makes a profit. If sales are equal to cost then this point is called the break-even point.
The fixed cost of the company at the break-even point as by this business operations
works effectively and efficiently and it will be covered by the sales generated. After the
break-even point, the company begins to generate revenue or profit from revenue. The
break-even point and margin calculations are shown in the Appendix.
 Human Resources and Organisation Plan - As HR managers need to understand how
the strategic workforce planning process works to improve the strategic alliance between
employees and other resources. Strategic workforce planning is the simplest level to
make sure the sufficient staffing to achieve an organization's organizational goals by
attracting the right people with the right skills at the right time. To stay responsive it is
significant to ask where their company is and where they are leading in the market place
(Nikolić, 2021). Their organization's strategy can be slightly different that are based on
their current and future needs, but there is a clear framework that they have to follow to
make sure that they are on the right path.
Evaluate current HR capacity - The first step in the workforce planning phase is to evaluate the
existing workforce. Before deciding to hire new employees for a company it is important to
consider the talents that they already have in their business. They should make a list of the skills
of each employee in attendance.
Expected staffing requirements - To be able to predict future needs, that the management needs
to complete in place of HR. It is important to assess both the company's demands on
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knowledgeable employees and the availability of employees inside and outside the organization.
Supply and demand need to be monitored.
Demand forecasting - Forecasting is a termed in a way to assess potential talent needs in terms
of quantity (number of people required) and quality (level of expertise required to meet the
company's current and future needs).
Supply forecasting - The resources that are available to meet demand are determined by supply
forecasting (Sarnquist, and et.al., 2021). They know which workers are capable in the company
based on their previous qualification inventory to meet their current needs.
Supply and demand matching - The difficult part of the hiring phase or where the rest of the
HR preparation process works is to match supply and demand. They develop a strategy to
support the company's needs for qualified employees with market availability. It can be achieved
by training the present employees, hiring new employees, or a combination of both.
Develop a human resources strategy - After assessing the company’s recruitment needs by
analyzing current HR skills and forecasting supply and demand and maintaining their factors to
drive talent development and recruitment by HR Chief Human Resources executives. Human
resource growth is an integral part of planned human resource management.
Recruitment - During the hiring phase of the recruitment process, management starts to look for
candidates with the expertise the company needs. For this step, management can post job listings
on job boards and search for interested candidates on social media sites like LinkedIn, and
suggest current employees who know the right person for their company.
Selection – Once they found the right individuals with suitable abilities and skill assessments to
determine who will be able for their company (Skocdopole, 2021). With the right forecasts of
supply and demand, they won't have a hard time while hiring the right candidates for the right
job.
Hiring - Finally select the vacancies applicant and submit the offer.
Training and development - Get new hires on board after they hire them and maintain their
practices to manage the company's policies and events up to date. By motivating them to
continue to improve their skills to meet the changing needs of their business. They also check out
this on boarding schedule guide for more ideas on the on boarding process for their employees.
Employee remuneration and benefits administration – By maintaining employee satisfaction by
providing fair compensation and benefits packages and rewarding more employees it will be
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easy for them to sustain in the field of the market place for a longer period (Cosenz, and Bivona,
2021). In the long run, talented employees help organizations to save a lot of money and time.
Performance management - All employees should evaluate their performance regularly. To
identify their achievements and areas of change. Employees will be better if they are rewarded
for their efforts.
Reviews and Ratings – They can measure whether their resource management process strategy
will support their organization to achieve their goals in areas such as employee satisfaction,
retention, performance, and efficiency. If their plan is on right track but they have problems that
can always change then it will manage their company's needs.
Future developments, competitor moves, changes in customer needs
Evaluation – At the time of launching a new service or product, the product and business model
satisfy the consumer and make a statement (or hypothesis) that the company can achieve its
goals by developing that product. Hence, this is not effectively maintained by the business of the
management. They can operate their divisions but did not get any results to support their
sections. They also utilize several factors to spread awareness cheaply through Google ads,
Facebook, Twitter, blogs, etc., but they still don't get the desired outcome. As there are two
options such as Pivot or stick it out (Delias, and Nguyen, 2021). It is the opposite of the previous
axis and also increases the number of product functions effectively and efficiently.
The Lean Start - up method primarily recognizes that the problem the product is trying to
solve is not particularly relevant to the customer. On the other hand, they need to maintain it into
the work that outbreaks them and identify the problems they are willing to pay to solve. They
may need to adapt an existing product to the "work" of a particular customer or develop a
completely new product.
 Teenagers up to 17 years old
 Local university and school
CONCLUSION
From the above mentioned report, it has been concluded that the method of launching a new
product on behalf of an existing company as Barbecue Truck Treats is known as the Lean Start -
up Method. The start - up wanted to set up Barbecue Truck Treats, a club for a healthy lifestyle
for adults and children. It majority focuses on customer-related information like churn rate,
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product popularity, and many more. Under this, entrepreneurs identify the problem and then
develop a viable product that allows them to introduce it to potential customers. The lean start up
methodology approach was undisputable. The aim is to encourage entrepreneurs and innovators
to carry out hypothetical organized experiments and bring input from these experiments into a
rapid and innovative process that will be termed the "scientific approach to start up
development." It involves the Business Model Canvas, minimal viable products, customer
creation, and validation, and revolving were just a few of the methods and principles that were
worth implementing by Lean Start-up. The report suggests that by using a minimally viable
product as an MVP, the development team can get customer reviews as soon as possible and can
directly improve the product based on customer feedback. The report also provides a business
model canvas that highlights the problem and provides the appropriate solution. A unique value
proposition was also proposed in the report. Since the outside world trying to solve a product
problem has nothing to do with the customer and how to identify the main problem and
implement an efficient solution to the problem.
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REFERENCES
Books and Journals:
Hwang, S. and Shin, J., 2019. Using Lean Startup to Power Organizational Transformation:
Creating an internal division that implemented concepts from Lean Startup helped a
consumer electronics firm foster an entrepreneurial mindset among
employees.Research-Technology Management. 62(5)., pp.40-49.
Lizarelli, F. L. and Et. Al., 2021. Critical success factors and challenges for Lean Startup: a
systematic literature review.The TQM Journal.
Mansoori, Y., 2017. Enacting the lean startup methodology: The role of vicarious and
experiential learning processes. International Journal of Entrepreneurial Behavior &
Research.
Blank, S. and Euchner, J., 2018. The genesis and future of Lean Startup: An interview with Steve
Blank. Research-Technology Management.61(5). pp.15-21.
Gutierrez, A., 2021. Contain Gentrification Business Plan Alan Gutierrez, Solana Johnson,
Ammir Thomas Bright Minds, Fresh Ideas Think Tank Summer Internship, Powered by
FPP July 26, 2021.
Nicolò, D., 2021. Business plan nella fase di startup: idea imprenditoriale, modello di business e
identità aziendale. Business plan nella fase di startup, pp.1-232.
BROSIA, S., 2021. START-UP, stratégie & création de business-plan. BoD-Books on Demand.
Amolaro, M.B., 2021. Business plan brazulaca–innovative language school, polish course for
portuguese speakers (Doctoral dissertation).
Nikolić, M., 2021. Business plan of the sports and recreation center: bachelor thesis (Doctoral
dissertation, Univerza na Primorskem, Fakulteta za management).
Sarnquist, C.C., and et.al., 2021. The effect of combining business training, microfinance, and
support group participation on economic status and intimate partner violence in an
unplanned settlement of Nairobi, Kenya. Journal of interpersonal violence, 36(7-8),
pp.3903-3921.
Skocdopole, P., 2021. Financial Analysis as a Basis for Creation of the Financial Plan of the
Selected Business Entity–Case Study. In SHS Web of Conferences (Vol. 92). EDP
Sciences.
Cosenz, F. and Bivona, E., 2021. Fostering growth patterns of SMEs through business model
innovation. A tailored dynamic business modelling approach. Journal of Business
Research, 130, pp.658-669.
Delias, P. and Nguyen, G.T., 2021. Prototyping a business process improvement plan. An
evidence-based approach. Information Systems, p.101812.
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APPENDIX
Table 1 Profit Forecast
1 year 2 year 3 year
First year = £494,200 –
£379,000 = £115, 200
Second year = £658,800 –
£371,000 = £287,800
Third year = £817,000 –
£373,200 = £443,800
Table 2 Net Revenue or Sales forecast of Barbecue Truck Treats
First Year Second Year Third Year
Net Revenue = Gross
Revenue – Return – Discount
– Commission
Net revenue= £495,000 – 0 –
(4000menu x 20%) – 0
Net revenue = £495,000 –
£800 = £494,200
Net revenue = £660,000 – 0 –
(6000menu x 20%) – 0
Net revenue = 660,000 –
£1,200 = £658,800
Net revenue = £825,000 – 0 –
(10,000menu x 20%) – 0
Net revenue = £825,000 –
£8000 = £817,000
1st year Net revenue =
£494,200
2nd year Net revenue =
£658,800
3rd year Net revenue =
£817,000
Table 3 Profit Margin
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Table 4 Cash Flow Analysis
1st year 2nd year 3rd year
No. of sales per year 16,500service x 30 =
£495,000
22,000service x 30 =
£660,000
27,500service x 30 =
£825,000
Selling price £30 £30 £30
Net revenue £494,200 £658,800 £817,000
Cash inflow
Cash Sales £494,200 £658,800 £817,000
Investments £200,000
Cash outflow
C level salaries (£150,000) (£160,000) (£170,000)
Insurance (£10,000) (£10,000) (£10,000)
Rent (£24,000) (£24,000) (£24,000)
Marketing (£19,000) (£19,000) (£19,000)
Delivery (£6,000) (£6,000) (£6,000)
Employees (£70,000) (£72,000) (£74,000)
Food Suppliers (£55,000) (£56,000) (£57,000)
Equipment (£20,000) (£4,000) (£3,500)
Package (£6,000) (£5,500) (£5,700)
Cash balance £334,200 £302,300 £447,800
Opening balance £200,000 £534,200 £836,500
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Closing balance £534,200 £836,500 £1,284,300
Table 5 Cash Flow Analysis
Cost
Structure
1st year 2nd year 3rd year
Fixed cost Variable
cost
Fixed cost Variable
cost
Fixed cost Variable
cost
Salaries C
Level
£150,000 £160,000 £170,000
Insurance £10,000 £10,000 £10,000
Rent £24,000 £24,000 £24,000
Marketing £19,000 £19,000 £19,000
Delivery £6,000 £6,000 £6,000
Employees £70,000 £72,000 £74,000
Food
Suppliers
£55,000 £56,000 £57,000
Equipment £20,000 £4,000 £3,500
Packaging £5,000 £5,500 £5,700
Subtotal £59,000 £300,000 £59,000 £297,500 £59,000 £310,200
Total cost £379,000 £371,000 £373,200
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