Entrepreneurship: Lean Startup Business Plan for Taxi Scanner Ltd

This report outlines a lean business startup development plan for Taxi Scanner Ltd, a venture aiming to revolutionize commute planning in London by providing a platform to compare cab prices across different apps. The plan details key aspects such as the customer value proposition canvas, illustrating the company's focus on providing convenient, hassle-free cab booking services, and the 'Lean' Business Model Canvas, which covers key partners, activities, value propositions, customer relationships, segments, resources, cost structure, and revenue streams. The report also includes a CEO-level specialist contribution, a financial and financing plan projecting revenue growth and user acquisition over three years, and discusses the company's strategy for expansion into the European and Asian markets. The core focus is on leveraging innovation and entrepreneurship to establish a successful and sustainable business model.

Contents
INTRODUCTION...........................................................................................................................................2
CUSTOMER VALUE PROPOSITION CANVAS.................................................................................................5
‘LEAN’ BUSINESS MODEL CANVAS...............................................................................................................7
Key Partners............................................................................................................................................8
Key Activities...........................................................................................................................................8
Value Propositions...................................................................................................................................8
Customer Relationships...........................................................................................................................9
Customer Segments................................................................................................................................9
Key Resources..........................................................................................................................................9
Channels..................................................................................................................................................9
Cost Structure..........................................................................................................................................9
Revenue Streams...................................................................................................................................10
CEO LEVEL SPECIALIST CONTRIBUTION.................................................................................................10
Financial & Financing Plan.....................................................................................................................11
SUMMARY.................................................................................................................................................13
REFERENCES..............................................................................................................................................14

INTRODUCTION
Innovation and entrepreneurship go hand in hand when it comes to establishing a successful
venture. These two are essential and works as pillar for enterprises (Difference Between
Innovation and Entrepreneurship | Compare the Difference Between Similar Terms, 2020).
Innovation involves introducing novelties like new products, commodities, services and other
essential stuffs which help in making the lives easier for the society members (Greenwald, 2020).
Innovation is not simply an idea but ability to take it to market and capitalize it. Innovation also
helps exiting industries to keep on growing or renew it with better products, more efficient
process and enhanced business models.
Sometimes innovation and entrepreneurship are interchangeably used although they are distinct
from each other. It gets tricky to pinpoint the exact differences (Key Difference – Innovation vs
Entrepreneurship – The Entrepreneur Africa Magazine, 2020).
The idea of our Lean Business Start up Development of the new venture is “Taxi Scanner Ltd.”
which will run its operations in London city. Our business model is based on helping people plan
their commute when they want, where they want, and exactly how they want to do it.
The number of websites and apps offering comparative pricing for commuting consumers has
grown hand in hand with advances in technology, enabling a rapid response to enquiries that
were once calculated manually by teams of cab services. Taxi scanner, will provide an easy way
to compare prices across different cab apps when booking a taxi.
It will combine proprietary search technology with content sourced from a comprehensive
supplier base of cab services and online travel agents (OTAs) to create a technology platform
that allows users to find and compare commute options quickly and accurately.
Our prime target is to make it a global enterprise with a foothold in the European market.
Initially, our company will rely primarily on word-of-mouth marketing. We will pursue a

conservative expansion strategy that accepts slower growth in the early years, but also enable us
to maintain control and ownership while building a solid foundation for the firm’s unique
product offering. Once Taxi scanner has established itself in the European market, it will look to
expand into Asia.
In coming years, Taxi scanner will open an office in Singapore, which will serve as a sales and
marketing hub for the region. It will gradually become a full-fledged service office with
engineering and technology development capabilities. However, the initiative will not be without
its challenges.
By far and away our revenue will come mainly from commission - from people actually finding
a deal, booking it and then our provider paying Taxi scanner commission. We are very confident
of that – it will be a key metric for us because it will prove that we are actually useful and will tie
our revenue to our mission. After all, Taxi scanner idea is born from frustration about trying to
find cabs for commute.
In addition we will have a growing business to business (B2B) offering where we will make our
API’s available to other companies to use on their own sites. That will generate more and more
revenue each month (Greenberg, 2020).
Finally we will make some money from adverts on the site which helps lessen the impact from
people using us to browse only (5 Ways To Generate Income From Mobile Apps · TechMagz,
2020).
This report is written from the perspective of the CEO (Chief Executive Officer) of the company.
A CEO is the highest ranking officer of the company whose main motives include (but not
limited to) making major corporate decisions, managing the overall operations and resources of
the company and other things. A CEO is the communication bridge between the board of
directors and corporate operations (CEO - Understanding the Roles and Responsibilities of a
CEO, 2020). CEO is also the face of the company and is elected by the Board of Directors and
its shareholders. One fine example is Mark Zuckerberg, CEO of Facebook who is also a
household name today (Biography.com, 2020).

In the first year of our business the revenue should be at the rate of 15%. The estimated profit is
around 5.6 million GBP. This will further rise to £ 48 million and £ 216 million in the following
years. Estimated users for the first year are 50,000 people whereas this figure should
significantly rise to 400,000 and 1.6 million in the second and third year respectively. Sales
figure for first year is 500,000 and this will be around 4 million in the second year and 16 million
in the third year. Please find calculations under Business Plan Budget and Financials.
In the upcoming segment topics discussed are customer value proposition canvas, “Lean”
Business Model Canvas, CEO level specialist contribution, Financing and Financial Plan which
will give a detailed idea of the business plan for our company Taxi Scanner Ltd.
CUSTOMER VALUE PROPOSITION CANVAS
Value proposition should always be the primary factor of any business (How to really understand
your customer with the Value Proposition Canvas - Design a better business, 2020). It shows
PRODUCTCUSTOMER

how much an organization focuses on values which in return builds the goodwill in near future.
Focusing on providing better services to customer sharpens the way an organization runs. Putting
it in simple words, we are giving customers a reason to choose one service over another. The
Value Proposition Canvas can be explained as an aid which helps a business determine whether
the new product or services offered to a customer has intentions to benefit the customer. It shows
the relation of customer and the product launch. The interaction is of Value proposition map
(product or service) and Customer Profile Map (the customer). This method is highly helpful
when a new product or service is being brought for the first time (The Elements of a Value Map,
2020).
First of all the product is discussed in the given VPC which discusses about how it will gain
creators, about the product/ service and the pain killers we have thought of. Then we discuss
about the customer as in what he/she will be gaining from the service we are offering, what the
customer’s existing pains are and what will be our jobs to smoothen their existing issues.
Coming to details, jobs section is analyzed where we show what jobs are provided to satisfy the
customer needs. For our company’s job is straightforward, that is to provide easy cab booking in
all of London anytime, anywhere. Pains are the bad experiences which customers have faced in
the past, risk that has existed and the problems which need a solution. Pains for our customers
are unavailability of cabs during peak hours, bogus charges when it’s a serious situation and last
minute cancellation by cab drivers. High charges during bad weather are also an issue. Gains are
the benefits which will be exclusive to our customers. We will assure hassle free booking as we
will tie up with most of the cab service providers and this will ensure sufficient availability of
cabs in the given region.
The second part of the VPC discusses about the analysis and design of the service offered which
ensures to meet the needs of the customers. First of all we discuss how we create values for our
customers by providing cashless transaction, hassle free booking and no hidden charges.
Convenience of the customers is the prime objective. Gain creator section discusses these in
details. Coming to product/services offered, we assure the real time tracking of cabs with also an
option to book eco friendly cars and comfortable seats are available. Cars with better shock
absorbent and proper papers with experienced drivers will be provided. Pain killers discusses
about how the customer’s pain will be taken care of by working on the existing problems such as

switching over apps to find the required ride to destination. Since all the online cab service
providers will be under one roof, therefore the booking will be hassle free. Also the price and
features can be compared side by side.
VPC gives an unorthodox mixture of products or services that end up benefitting customers the
most by valuing them or by providing solution to their existing problems. Both parts of the VPC
are highly related to each other as Product and/or services give customer jobs; pain relievers
eases the existing pain of the customers and Gain creators assure gains.
‘LEAN’ BUSINESS MODEL CANVAS
BUSINESS MODEL CANVAS - TAXI SCANNER LTD.
KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITIONS CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS
1. Online cab service providers 1. App development
1. Offering Best Cab
booking Service
1. Personalization of offers based
on customers most visited places 1. Locals
2. Cab Drivers
2. Marketing &
Advertising 2. On time assistance 2. Student
3. Employees
3. Contacting local cab
drivers
3. Option to choose
among various Cab
services 3. University staff
4. University of Roehampton
(Students, Staff) 4. Smooth running of app 4. 24/7 availability
5. All time cab availability 5. On time tracking CHANNELS
KEY RESOURCES 1. Mobile App
1. Finance - Loans &
Investors
2. Collaboration with University for
advertising
2. Employees- Customer
care, independent cab
drivers, Accounts, etc.
3. Physical- Direct contact
between cab drivers and
users. Also Customer
service assistance
COST STRUCTURE REVENUE STREAMS
Fixed- Employees Salary, app
maintenance expenses, management,
accounting services.
Variable- less margin during
high demand for cabs in order
to fulfill no excess price
surcharge
YEARS Detailers Users Sales
Year 1 5,000 50,000 £ 500,000
Year 2 40,000 400,000 £ 4,000,000
Year 3 160,000 1,600,000 £ 16,000,000

The Business Model Canvas (BMC) is a strategic management kit to help telling what the
business idea or concept is about. Entrepreneurs at one time formulate a business plan to give
details about the working of their organization but in modern times the Business Model Canvas
is a more preferred framework. For example, the Angel investors of business consider BMC as
an essential tool to determine if the Business is feasible enough and whether it will last long.
BMC graphical core concept includes “key partners, key activities, value propositions, customer
relationships, customer segments, key resources, channels, cost structures and revenue streams.”
These key points depict and cover the full scope of the firm and how these points interact with
each other is also shown.
Key Partners
The most significant partner of our company will be online cab service providers. Convincing
them to work together under one roof will be a big challenge but it will be possible once they are
made to realize the positive outcomes of the deed. Apart from them, other key partners will
include independent cab drivers, employees working for us as well as the university campus.
Employees will provide assistance to customers and note down their grievances in the initial
days. Independent cab drivers will get the opportunity to get the coverage because of us which in
return will also increase their income. One external employee will be required for accounting and
university campus will be used for advertisement.
Key Activities
Key activities will include five steps. At first we will hire an IT guy to develop a smooth app for
us which can handle traffic of London users. This initial investment to run a smooth app will
leave a better impression on the customers. Testing will be done where we will cover just the
university space in the initial days and feedback will be taken. Then we will look into marketing
and advertising where we will order flyers and distribute them in university campus and around
for the advertisement of our company. Then we will contact handful of local drivers and discuss
with them the prospect and will also listen to their requirements. We will come to a common
need and make them tie up with our company. Then we will focus on smooth running of the app

so that it can handle traffic and also offer cabbies a chance to work at night and rest during days
with some bonus compensation.
Value Propositions
Taxi Scanner Ltd will provide best online cab service since it will not only be having all the cab
service providers under one roof but also independent cab drivers which will ensure there is cab
availability all the time. There will be on time assistance provided for any grievances and
problem will be resolved as soon as possible. Customers will also have the benefit of booking
cab in advance and they will be guaranteed of no last minute cancellation. Customers will also be
able to track the cabs and share details of their location with their loved ones.
Customer Relationships
Customer relationships will be determined by doing surveys with customers and also noticing
their travel pattern. Accordingly offers will be tailor made for respective customers and they will
also have an option to rate drivers based on the experience of their commute. Drivers will also
get the same feature. This way highly rated driver and customers will get more offers compared
to others.
Customer Segments
Initially the customer segments will include the university students and staffs during the trial
phase along with nearby locals. Slowly and steadily this will expand to nearby areas and will
cover entire London within few months.
Key Resources
Key resources will include Finance, Employees and Physical. Finances will include Loans from
Banks and investment from investors in the initial days. Employees will help us taking care of
the grievances of customers so that we take it into consideration and keep improving. An
external employee for Accounts will be needed. Apart from that the intellectual factor will be
considered where benefit and good service to customers will be our number one priority.
Channels
Channels have direct connection with customer relationships as it is the most important part of
the business to connect business to what society needs. Most important factor for channeling will
be the mobile app which will allow us to serve better. In future this will be expanded into

website on further consolidation of the company. Apart from that University campus will be used
for advertising which will be another form of channel (permission was already taken verbally.
Cost Structure
Cost structure will comprise of fixed and variable cost where fixed cost will include payment of
monthly salaries to employees, the management and the accountant. It will also take care of the
monthly maintenance expenses to keep the mobile app running. The variable cost is bit debatable
but it is decided to keep the margin less during peak hours or shortage of cabs so that customer
doesn’t feel the high price problem and cabbies can take some extra money.
Revenue Streams
A detailed view of revenue stream is already provided in business plan or the strategy which was
made for investment. All the distinct source of revenue comprises the revenue streams. Our
business is a consumer service business as it provides a better service than what is already being
offered in the market.
CEO LEVEL SPECIALIST CONTRIBUTION
CEO post is highly lucrative form of job but it is also one of the least known about. Mostly the
society thinks this post is held by someone which gives them extreme powers. CEO’s are
rumored sometimes to be working less and are incompetent. Contradictorily, CEO is someone
who meets the requirements of employees, consumers, money lenders, communities and the law.
A CEO has multiple roles and responsibilities but there are few rights which are exclusive to
CEO and CEO only. This includes setting vision and strategy, to set firm’s ethical, cultural and
moral standards, make and train the senior management of the company and to allocate the assets
of company according to predefined aims (CEO - Understanding the Roles and Responsibilities
of a CEO, 2020).
As a CEO of my company, I have very clear strategy and a set target. Our main aim is to attract
the people who have complaints of the existing online cab service providers. Our strategy is to
minimize their pain of switching over apps and give them everything under one roof. Also we
have a target of bringing in the local cab drivers too which is not registered with any other
competitive apps and this will help us have extra options so that there is cab available all the

time. Initially we will be covering the university campus and the nearby areas and drawbacks as
well as positive feedbacks will be taken by users via the app and noted down so that the service
becomes smooth and as flawless as possible in the coming months so that when we expand in
near future, people have better opinion about us. This is a unique solution to the problem and
should help us in today’s situation.
With the growing malpractices around the world, the role of CEO has come under hammer
nowadays. Emphasis on corporate ethical and moral practices and behaviors has increased. The
most significant traits of corporate leaders are to be polite, honest, fair and concerned about
uplifting the society. Main concern of the CEO should be being broadminded and thinking about
others welfare. CEOs that have the following qualities are more probable to follow ethical
practices and implement it too in their organization (How important is the role of CEO?, 2020). I
will try my level best as a CEO to stick to the given principles and also implement it in my
organization so that it also sets an example for my coworkers as well as employees. My
organization will keep welfare to the society as its main criteria.
Journey made by public transport accounts for 37% of the total commute whereas 36% choose to
commute via private transports (Reporter, 2020). The iconic black cab is still common to see. If
we focus on the 37% of the total commuting public we can easily lure them by providing
lucrative offers. We will also make sure that our app is easy to use so that young as well as old
people find it helpful. I will also keep a track of changing technologies and innovations and try to
inculcate it myself if it can help my users further.
Financial & Financing Plan
This portion depicts the estimated cash flow, revenue streams, cost structure, sources of finance
and uses of that finance in the first three years of my business. Gross profit estimated for the first
three years is 5.6 million GBP, 48 million GBP and 216 million GBP respectively.
Year 1 Year 2 Year 3
Detailers 5,000 40,000 160,000
Users 50,000 400,000 1,600,000

Sales 500,000 4 000,000 16 000,000
Average Price per
Sale 75 80 90
Revenue @ 15% 5,625,000 48,000,000 216,000,000
• Cost of
Revenue 0 0 0
Gross Profit 5,625,000 48,000,000 216,000,000
Expenses
• Sales &
Marketing 5,062,500 38,400,000 151,200,000 70%
• Customer
Service 1,687,500 9,600,000 21,600,000 10%
• Product
Development 562,500 2,400,000 10,800,000 5%
• Research 281,250 2,400,000 4,320,000 2%
Total Expenses 7 593,750 52,800,000 187,920,000
EBIT -1,968,750 -4,800,000 28,080,000 13%
EBIT is expected to be positive from the third year.

(Matters, 2020)
SUMMARY
This assignment discusses why Taxi Scanner Ltd is a profitable and ‘lean’ entrepreneurial
opportunity. It shows the importance of considering CVP and BMC for setting any business plan.
Apart from these two, the other topics discussed are CEO level specialist contribution, Financial
and Financing Plan. The proof provided in this study is enough to show the opportunities and
threats to be faced by this organization for investors to further study. Business would not only
start generating profit for the owners and stake holders but will also emphasis on the welfare of
the users. Me, as CEO has a proper view as to how I can lead this company to become one of the
most used apps and also to take care of all the grievances already being faced by the existing
customers of other rival apps. Safety is the number one priority. The management will also
include CFO, CIO and CMO for smooth running and allocation of duties. The main mantra of
successful entrepreneurs is to be ethically sound and this is what we will follow.