Little Angel's by Bobby: A Lean Start-up Business Plan Project

This project presents a comprehensive business plan for Little Angel's by Bobby, a lean start-up venture focused on providing a play area for children in shopping centers. The plan begins with an introduction to the lean start-up methodology and outlines the business objectives, which include achieving profitability, sales revenue targets, and specific profit margins. A customer value proposition canvas is employed to analyze customer needs and how Little Angel's will address them, while a lean business model canvas provides a concise overview of key partnerships, activities, resources, and revenue streams. The detailed development plan encompasses marketing strategies, including segmentation, targeting, and positioning, as well as an operational plan, technical solution, and financial projections. The financial plan includes cost structures, break-even analysis, profit and loss statements, and balance sheets. The plan concludes with a summary highlighting the reasons for investment in the lean start-up, emphasizing its potential for success in the market.

Entrepreneurial
Developments

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
BUSINESS OBJECTIVES .............................................................................................................3
CUSTOMER VALUE PROPOSITION CANVAS.........................................................................4
‘LEAN’ BUSINESS MODEL CANVAS........................................................................................6
DETAILED DEVELOPMENT PLAN............................................................................................8
The Marketing Plan.....................................................................................................................8
The Operational Plan...................................................................................................................9
The Technical Solution and Information Technology Plan......................................................10
The Human Resources and Organisation Plan..........................................................................10
The Financial Plan.....................................................................................................................11
POSSIBLE FUTURE DEVELOPMENTS OR CHANGES IN DIRECTION.............................11
SUMMARY: WHY SHOULD SOMEONE PROVIDE FINANCE TO THIS LEAN START-UP
........................................................................................................................................................12
REFERENCES..............................................................................................................................13
APPENDICES:-.............................................................................................................................15
APPENDIX 1- Primary and Secondary Market Research.............................................................15
APPENDIX 2- The Financial Plan ...............................................................................................15
Cost Structure:...........................................................................................................................15
The summary results of computations:.....................................................................................16
Cost structure and break even:..................................................................................................18
Profit and loss statement:..........................................................................................................18
Notes:........................................................................................................................................19
Balance sheet:............................................................................................................................19

INTRODUCTION
Lean business start-up is a method that is used by entrepreneurs and companies to find
and develop either a new company or offerings (Products and services) on behalf of existing
organisation (Hayter, 2016). The lean start-up business model is used for developing those goods
for which market already exist that is the consumers need such goods which are already in
demand and market is developed once the products is launched. On the contrary other business
models are focusing on product development and then hope and make efforts for developing the
market after the new offering is already being launched in the respective area or marketplace.
Lean start-up and business model also develops employment and differentiate itself from
traditional business styles as while hiring workforces those workers are hired who are adaptable,
flexible and who can work faster while learning and adapting new skills. On the other hand,
traditional business model are focused towards individuals who are skilled, hold long years of
experience and abilities.
The project is developed over a new lean start-up business named as Little Angel's by
Bobby a play house in shopping centres and mall where parents can drop their children while
shopping and can have their personal stuff done in peace. The project is inclusive of detailed
business plans for Little Angel's by Bobby. Business objectives will be defined according to
which value proposition plan and lean business model canvas is developed. Moreover,
marketing, financial, operational and human resource plan is developed. At last, a summary is
provided for justifying the reasons behind funding such lean start-ups (Carvalho, 2017).
MAIN BODY
BUSINESS OBJECTIVES
Objectives are known as end goal or targets, in relation to businesses these objectives are
developed in the very beginning at the planning stage for rendering the direction for running
business smoothly and efficiently in long term. Business objectives are developed by
management of organisations who are at directorial and managerial positions and have worked fr
establishing the business. Every business owner develop certain aims and motives to attain while
rendering goods and services to customers, fulfilling their needs and work for accomplishing all
pre-determined objectives. These business objectives are necessary to be achieved in prescribed
time period. The lean business start-up Little Angel's by Bobby has specific business objectives

in relation with Profits, Sales Revenue and Profit Margins for the first three years of
operations which are elaborated below:
 Profits- Every business of all sizes micro, small, medium and large have the foremost
objective of operating in marketplace is to earn profits. The profitability of company
depends upon customers shopping experience and satisfaction. Profits is essential for
business initially for repaying all debts and make expenditure and in long term is for
earning higher and higher profits for surviving in competitive market. The aim of Little
Angel's by Bobby in relation to profits is to stand at break even point in first year that is
not profit and no loss and balance the situation and earning higher profits every year form
the previous one (Szerb and et. al., 2020).
 Sales Revenue- The amount entity releases form the sale of goods and services is knows
as sales revenue which is used for defining the size of business. Both sales and revenue
are interchangeable words as they mean the same. The sales revenue units are divided
into two parts that is Gross Sales and Net sales. The company Little Angel's by Bobby is
aiming towards having break even profits in first year and according to which it is aiming
to gain higher revenue and reduce their costs in order to maintain the break even results.
 Profit Margins- This is ratio that is calculated for knowing the exact amount of money
earned by entity by subtracting all expenses from total profits units and dividing the result
by the total revenue digits. Profit margin ratios renders a comparative relationships
between sales and profits digits enable the management to known the balance that is
needed to be maintained for holding stable and flourishing business results. Therefore,
the aim of Little Angel's by Bobby is to have a profit margin of 15% to function smoothly
and efficiently (Malecki, 2018).
CUSTOMER VALUE PROPOSITION CANVAS
The customers value proposition canvas model is a approach adopted for ensuring that
the products and services that are being offered in the market are positioned properly around the
needs of people and most importantly targeted audiences. This model of value proposition
canvas is utilised in two situation wither when company wants to refine their offerings and the
second one is when a new offering is developed from scratch. Little Angel's by Bobby fits in the
second situation as there is no other similar offering company in the market. The service they
are offering is to keep check on kids while their parents go shop in the shopping centres. The

canvas has two segments Customer Profile and Value Proposition each has three elements.
The value proposition canvas for Little Angel's by Bobby is as follows:
Illustration 1: What is the Value Proposition Canvas, 2020
(Source: What is the Value Proposition Canvas, 2020)
Customer's Profile:
 Gains- The factor which creates value for customer's which makes them satisfied and
happy. The gain Little Angel's by Bobby is offering is peaceful time to parents for
shopping while their kids enjoy in the soft zone under observation of experts (Maxwell
and et. al., 2018).
 Pains- The pain is basically a fear that customers have for their children about their
safety and well-being while they are away.
 Customer Jobs- The consumers wish which they are trying to satisfy is to shop for them
and their family members and efficiently but smaller kids make it very hectic which is a
problem and needed to be solved.
Value Proposition:
 Gain Creators- The service offering of Little Angel's by Bobby renders consumers free
time and relaxed mind at the time of shopping by dropping children at a place where they
can enjoy and easily being watched by experts.

 Pain Reliever- The consumers specifically women gets really less time for themselves
between all their responsibilities towards family, job and their kids. Little Angel's by
Bobby provides them an service which will allows them to shop properly without being
in pressure and tension about their new born and small kids.
 Products and Services- The service is of providing a play zone for kids in shopping
centres and large shopping marts where kids can be dropped under watch of experts and
specialised professionals in taking care of babies and their needs (Roy and Mukherjee,
2017).
‘LEAN’ BUSINESS MODEL CANVAS
A lean business start-up is developing a new business or offering in the marketplace for
the customer's who's market is already developed and company do not need to make efforts for
making people understand what exactly the offering is and how it will satisfy the needs and
requirements of people. A business model canvas is a one page document which has several
element and allows firm or a business to deconstruct their plans into those specific areas or
elements highlighted in the canvas for more specific and detailed analysis picture. This canvas
model reduces the complexities of plans and make it easy for people to understand by just a one
page document holding all necessary and specific data and plans.
Key Partners:
 Engageme
nt with
stores in
shopping
centres for
promotion
s.
 Engageme
nt with
toys
suppliers.
 Suppliers
Key Activities:
 Taking
feedbacks
from
customers
specially
regular
clients and
building
long term
relationshi
ps.
 Analysing
Value
Proposition:
 Safe and
healthy
environme
nt for kids
enabling
in
personal
growth
and
keeping
Customer
Relationships:
 Long
lasting
and
healthy
relationshi
ps with
consumers
.
 Loyal
customer
base, kept
Customer
Segments:
 Housewiv
es and
working
mom's.
 Basically,
medium
and upper
middle
class
families of
society

of toy cars
and other
machinery
.
 Engages
in local
joint
ventures.
consumers
behaviour
s.
 Market
analysis
for
knowing
the
customers
perspectiv
es and
demand
graph
graph and
units.
them
happy.
 Favourabl
e and
special
service
offering
and
experience
(Chipfupa
and Wale,
2018).
satisfied
and
retained
through
effective
services,
offers and
special
gifts for
kids.
where
both
parents are
working
and get
less time
to shop.
Key Resources:
 Online
presence
on
separate
social
media
platforms.
 Physical
presence
in large
markets
and
shopping
centres.
Channels:
 Physical
stores in
shopping
mall and
large
shopping
spaces and
buildings.
 Online
applicatio
n for pre
booking
the time
for
dropping

kids at the
play zone.
Cost Structure:
 Staff/ Employee salaries and wages.
 Information technology.
 Regular expenses and Capital
expenditure.
Revenue Streams:
 Sales through physical stores and online
bookings.
 Home deliveries of gifts and soft toys
purchased through play zone.
 In house purchase made in the zone.
DETAILED DEVELOPMENT PLAN
The detailed and evaluative plan for a new lean start-up like Little Angel's by Bobby has
several elements as a new venture is being established in order to serve potential customers and
develop presence in marketplace. The plan has sub-sections or divided into parts focusing on
each and every segment of business development which are as follows in the section below
(Esposito, 2018).
The Marketing Plan
Marketing is the business activity which is related with establishing the company's
presence in market, informing about its offerings and many other promotional activities which
are performed according to detail plans and with respective budgets. The marketing plan will
outline the strategies for Little Angel's by Bobby for the upcoming year in relation to
advertisements and promotional actions the entity should and will be undertaking to accomplish
the goals. The operations of Little Angel's by Bobby is to be established in United Kingdom and
for which the plan is a follows:
 Marketing objective- The aim of Little Angel's by Bobby is to introduce their stores in
United Kingdom in the most famous shopping centres located in posh areas and city
centres.
 Market Size- The company belongs to small and medium sized range and appointing 45-
55 employees for their 3 initial stores in the United States. Segmentation, Targetting and Positioning- A model which has three elements known
as a strategic approach adopted by marketers in order to prioritising the customer base
and developing communication channels to reach to maximum number of potential

buyers. STP model is a common tool which is used by marketers for effective
development of marketing plans and communication with potential consumers of the
firm.
◦ Segmentation- This stage is for dividing the market into smaller groups and assist in
focusing over one potential group. The segmentation method used by Little Angel's
by Bobby is psycho-graphic method.
◦ Targetting- The targeted group by Little Angel's by Bobby is the middle and upper
class families of society who are having kids and shop often in shopping centres.
◦ Positioning- In order to position itself in marketplace Little Angel's by Bobby the
company is using social media and pamphlets to advertise their offerings (Santos,
Roomi and Liñán, 2016).
The Operational Plan
This is a more detailed and specific plan which focuses over the functions of each
department in the organisation and how every operations should work and contribute to ultimate
objectives. The operational plan is purpose oriented rendering clear picture to all the different
departments in entity and allocating responsibilities on daily basis as well as for long term in
order run each and every operations of the company efficiently and bring the best results.
 Vision- The vision statement is a document that holds the short and long term objectives
of company through it the organisation provides a guide to people about how they are
going to run the operations and the key factors which needs to keep in mind while
working and performing their responsibilities. The vision statement of Little Angel's by
Bobby states the wish of the owner to take the brand on the top make it the leading brand
in market offering such save, healthy and fun environment to their children while parents
finish their shopping peacefully (Amankwah-Amoah and Lu, 2019). Mission- The mission statement is short paragraph or sometime just a line that reflects
upon the ethics, culture and values of the entity. It is a concise statement which explains
the purpose of the organisation. The mission statement of Little Angel's by Bobby is
divided amongst few points which are as follows:
◦ Serving each and every need of customer's.
◦ Serving every customer equally.

◦ Effective, flexible and safe work environment for employees and related in site
members. Key Values- The the element of key values reflects upon the strengths and effective
resources of company through which it works to attain higher position in market, increase
their market share and attain competitive advantage (Centobelli, Cerchione and Esposito,
2019). The key values of Little Angel's by Bobby which provides it competitive edge are
as under:
◦ Aggressive and attractive marketing practices and plans.
◦ Newest and most attractive toys and gaming machines for kids.
◦ Hiring employees and workers for operations and several other activities of business
who are adaptable and flexible and can easily improve adjust in dynamic
environment and with separate kids.
The Technical Solution and Information Technology Plan
The technical solutions referring towards the plans and actions performed by organisation
for keeping all internal and external parties such as employees, stakeholders, customers,
investors etc. related to business satisfied and render them best experiences while building
relationship with the brand. The growth and success of a business organisation is dependent upon
the effectiveness of need satisfaction practices developed and performed. Little Angel's by
Bobby has to have effective and potential detailed plans for maintaining their efficiency and for
making sure that customer's are satisfied. Also, not just consumers but other related parties most
importantly employees, stakeholders and investors have to be kept happy and informed as well
(Tian, 2019).
Information technology is a major resource for Little Angel's by Bobby for two main
functions of company. One is to serve their consumers by all the new, safe, attractive and
enjoyable instruments and machines will be required and will be working through updated
software and technologies. Also, in marketing plans as well company will be needing IT systems
and digital devices for making most attractive and eye catching advertisements.
The Human Resources and Organisation Plan
Little Angel's by Bobby is a medium sized lean business start-up which is launching a
soft play zone for kids in shopping centres so that their parents can drop their children in Little
Angel's by Bobby and do all their shopping peacefully. The workforce of a organisation is acts as

its pillars and for which Little Angel's by Bobby have to effectively plan their human resource
and hire the best employees for taking care of kids and make sure that they are happy,
comfortable and enjoying in the surroundings provided to them in Little Angel's. Therefore,
workforce planning involves several elements such as employee development plans, talent
management, trainings and developments and many more which needs to be focused by the
business owners and human resource allocator of Little Angel's by Bobby (Theodoraki,
Messeghem and Rice, 2018).
The Financial Plan
(Covered in Appendix 2)
POSSIBLE FUTURE DEVELOPMENTS OR CHANGES IN DIRECTION
Future growth and development practices and actions are undertaken once company is
successful in attaining their goals and short term objectives. Ansoff Growth matrix is a tool
which is utilised for analysing and exploring all growth options for the company existing in
market for their future development and enlarging size of operations. It has four specific
strategies out of which Little Angel's by Bobby can adopt any one according to their business,
services and resources available. These strategies are elaborated underneath:
 Market Penetration- This option suggest Little Angel's by Bobby to increase sales by
inducing their marketing practice and promotional plans by staying in same market and
serving to similar customer base. Currently, Little Angel's by Bobby is working through
it and developing market for its offerings.
 Product Development- This growth option states that company should innovate and
invent and search new offerings for consumers by staying in similar market but satisfying
customers needs more efficiently (Cumming and et. al., 2017).
 Market Development- The market development strategy reflects its meaning by its
name as the option states that the firm should develop new markets by entering it through
their similar offerings. Little Angel's by Bobby should adopt this option for growth as it
allows the firm to increase their operational area and increase their market share along
with generate presence in international markets.
 Diversification- This strategy suggest that the company should move to new market and
with new offering. This is not most potential for Little Angel's by Bobby as company is

just establishing and have kept its foot in industry it need time to make its presence firm
and effective.
SUMMARY: WHY SHOULD SOMEONE PROVIDE FINANCE TO THIS
LEAN START-UP
Funds, money or finances whatever the name called it is a resource which every business
require micro, small, medium or larger. Money is a basic and most important resource which is
necessary at all stages of a business beginning form planning stage to keep the operation's and
functions going on. In case of Little Angel's by Bobby the company is of medium sized and
require money for setting up their operation's and render best services to people and keep them
satisfied. The company is planning to invest 30% funding from internal sources by personal
savings and family loans. Other 70% funding will be raised from external sources of finance
such as bank loans and venture capital investors (Goswami, Mitchell and Bhagavatula, 2018) .
Little Angel's by Bobby is a lean start-up which needs funds for establishing its
operation's and for running their business effectively. There are two specific reasons for the same
which are as follows:
 At first lean start-ups creates jobs for new talents and appoint adaptable people for the job
rather that hiring experienced people like other tradition business organisation.
 The support these small and medium sized lean business start-up provide to the economy
in which they are flourishing. These businesses allows economy to move further and lead
other economies in the world.