Extra Smart Door VPSS: Entrepreneurial Development Report

This report presents a comprehensive business plan for Extra Smart Door VPSS, a smart door locking system utilizing face recognition technology. The report begins with an introduction, outlining the business idea and its potential in the UK market, particularly in response to increasing security concerns. Section 2 focuses on opportunity formation, detailing the unique value proposition of the smart door, which includes enhanced security, ease of use, and remote access via a mobile app. The business canvas model, key activities, resources, partners, and competitors are also identified. The report includes a detailed cost structure, break-even analysis, and revenue streams. Section 3 delves into opportunity development, covering the marketing mix (product, place, price, promotion) and the STP strategy (segmentation, targeting, and positioning). Financial projections are provided to assess the business's viability. The report concludes with a summary of the key findings and recommendations for the venture's success.

ENTREPRENEURIAL
DEVELOPMENT

Table of Contents
SECTION 1: INTRODUCTION.....................................................................................................1
SECTION 2: OPPORTUNITY FORMATION...............................................................................1
SECTION 3: OPPORTUNITY DEVELOPMENT.........................................................................5
SECTION 4: CONCLUSION........................................................................................................10
REFERENCES..............................................................................................................................11

SECTION 1: INTRODUCTION
Entrepreneurial idea and development is one of the crucial mechanism for starting
business for supplying goods and services to customers in effective manner. Present report deals
with Extra Smart Door VPSS which will provide smart door locking system which will be
operated by person only with the help of face recognition of owner. The business idea would be
transformed in a better manner with sections of opportunity formation and opportunity
development. Unique value proposition along with various elements of business canvas model
will be enumerated. Moreover, marketing mix, 4 P's of innovation and STP strategy will be
discussed in report. Financial projection will be made to check the viability of business whether
it will produce desired level of income or not.
SECTION 2: OPPORTUNITY FORMATION
Business Idea
The entrepreneurial venture is started to provide quality goods and services to customers
in order to attain desired amount of profits within reasonable time period. The commercial and
market feasibility serve the purpose for effectively starting business in the market so that
adequate profits may be accomplished in a better manner. Extra Smart Door VPSS is the
business which will be started in the UK for providing smart device to customers house in
effective manner (Johnson, Cheng and Mainwaring, 2017). Security and safety is vital for people
and this will be make ensured by the business by providing with adequate locking doors. The
Extra Smart Door is type of smart device that can be attached to any type of doors which comes
with unique face recognition system utilised to open doors of house.
The uniqueness of this product is that safety and security that will be paired phone app
for helping store more than one-person face scan. Moreover, it can be started with much ease
with the help of app when owner of the house is not at home and when somebody visits house
for cleaning or maintenance of house to whom owner has enough trust and thus, door can be
opened in a better manner. Extra Smart Door which will be developed and provided to customers
will be beneficial for them as it will impart tight security and safety when people are out of town
and increasing criminality in London is an opportunity for the business in accomplishing goals in
effective manner (Nania, 2017 ). This will be fruitful for business as it will be able to provide
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quality smart door device at affordable cost so that desired sales may be achieved in a better
manner.
Unique Value proposition
The unique value proposition of Extra Smart Door is that it is the first world patented
intelligent door lock which will come with face recognition type of system. This will provide
double security as door will get locked in the absence of owner and can be opened only through
face scan stored of two persons (Min, 2018). In addition to this, business will provide another
specification of product that there will be a mobile app used to open door when owner is not at
home and as a result, unauthorised access will be stopped in a better manner.
Another value added to product is that it is easy to use as one time face recognition is to
be stored in system and it will use the same to open door for house mates and as a result, safety
and security will be prevail in order to stop criminalities increasing in London. Along with
higher safety in hand, Extra Smart Door will be available at affordable cost to people that will
easily attract customers for ensuring their home security. Mobile app feature is another useful
one when people are on holidays, any maintenance work if required can be used by the opening
door to particular authorised persons. This will not breach security and safety at home.
Moreover, it is easy to fit in short time period that is within 30 min to 1 hour. This
implies that business will be able to enhance customer satisfaction with the help of faster fitting
of smart door lock system in customers house for making them loyal towards brand. It will run
from solar energy panel and long life of solar battery will be made available in effective manner.
This means that firm would attain success in initial stage of business cycle by accomplishing
desiring profits in the best manner possible (Huatao and et.al., 2017).
Key Activities
The key activities will include production and manufacturing process which will be able
by taking raw materials from suppliers. The team segmentation will be made for achieving
desired productivity and employees will be enrolled with tasks to be performed.
Key Resources
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The key resources for the business will be staff, investors from whom money will flow
and suppliers from whom desired amount of raw materials will be purchased for making smart
doors.
Key Partners
Partners will be parties like investors, bank and suppliers. Bank will be approached after
successful launch of business and when actual need arises in effective manner.
Key Competitors
The competition is fierce in the field (Han, Kim and Jang, 2017). Main competitors
would be Amazon, Yale, Ring, Google and Apple which Hi-tech giants and smart door services
are provided.
Customer (Audience) Segments
It will provide customer with age 25-60 and families with children in effectual manner.
Mostly, men will the target customer market.
Customer Relationship
The business will provide with Yearly membership up to £50 to customers. Moreover,
Loyalty bonus after 3 years and 24/7 customer service will be offered. Another element for
enhancing relationship with customers is that Up to 5 free intervention for the first year will be
provided. IT engineers will be trained periodically for up keeping with advanced technology.
Cost Structure
Forecast for six months for Extra
Smart Door VPSS Amount (in £)
Fixed costs
Patent 5000
Rent 12000
Machines 3000
Software 5000
Supplies 5000
Staff training 1000
Wages 20000
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Insurance 500
Advertising 2500
Website 1000
Total Fixed costs 55000
Variable Costs
Utilities bills 2000
Materials 2500
Direct labour 10000
Repairs and maintenance 1000
Total Variable costs 15500
Total 70500
Adding VAT and unplanned
expenses 9500
Total final costs 80000
The partner will contribute each £25000 leading to have start-up capital of £100,000
which will be used for meeting expenses in the best manner possible.
Break Even Point
Considering, estimated product cost at £100, Selling price £200 and Profit per unit £100
(not considerCheng, S.Y.T. and et.al.,ing fitting price as a part of profit as it will be used for
meeting other expenses). The company must sell 800 units for six months and for one year must
sell 1600 units to make profit of zero.
Stream Revenue
Partners will contribute with £25000 which will add to £100,000 capital. If needed more
funds, bank loan will be approached for providing desired amount of funding. However, for first
year, loan will not be taken as enough capital will be contributed by people.
Formation of Idea
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The entrepreneurial venture will be started by Extra Smart Door VPSS which will serve
security to customers in their homes so that desired satisfaction may be imparted to them. It can
be said that with technological advancement and better avenues in the market, unique product
needs to be offered for enhancing their satisfaction (Cheng and et.al., 2017). In addition to this,
due to increase in criminalities in London, home security is required. This has led to formation of
idea and proces of this idea began to transform the same to business venture. Extra Smart Door
device will be provided by business which will enrich customers with increased safety of their
homes. Moreover, it opens the door with face recognition which will surely provide satisfaction
to consumers as unauthorised access will be blocked. This means that VPSS will be able to
succeed in the market as opportunity is grabbed by it.
SECTION 3: OPPORTUNITY DEVELOPMENT
The opportunity development is important focus of start-ups so that they may use such
opportunity and offer desirable goods to customers for increasing their satisfaction level in the
best manner possible. Moreover, focus on marketing strategy is required to be implemented as
project will be completed with a view of Market leader. Extra Smart Door is unique device
which will be suitable for preventing criminalities in effective way and unauthorised access will
be discouraged with ease. The approach will be useful for providing high security for houses in
London. The market has provided with opportunity to provide customers with high-tech smart
device (Scoggins and Koka, 2017).
Marketing Mix
Product-
The product which will be offered by VPSS is Extra Smart Door that will provide smart
locking system and can be used on any type of doors. It will open only by face recognition of
owner along with one more face which will be stored in device. In case, owner is not at home
and someone visits, door will get open with the mobile app that would be secured by owner.
Thus, device will be paired with mobile phone and as a result, security will be accomplished by
preventing criminalities in effective manner. It can be analysed that product will be useful for
customers as they can freely go on holidays without any difficulties. This means that satisfaction
level will be upscaled with ease.
Place-
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Place is another useful element where store will be located in London and operational
activities will be handled. The manufacturing will be done and customers will be offered with
quality goods. It means that Extra Smart Door would be helpful for company in attaining desired
satisfaction level of customers quite effectually. Moreover, it can be analysed that firm will be
able to provide satisfaction level to customers by providing high security and quality goods at
affordable cost (Johnson and Cheng, 2017).
Price-
It is another important element in attracting customers. VPSS will use penetrating pricing
strategy for providing goods in effectual manner. It will be beneficial for attracting customers as
prices will be lower in comparison to competitors. This is important for garnering good quantum
of customer base and after establishing place in the London market, gradual increase in prices
will be done for recovering profits. Seeking to this, firm will set £200 per unit of Extra Smart
door device and will attract customers with ease.
Promotion-
It also plays crucial role in creating awareness in the market for new offerings by
company. This will be helpful for company as people will be attracted to avail services. For up
scaling business with product launch, it is required for enhancing business with increased amount
of profits, business will take promotional channels with ease. VPSS will use social media
marketing by posting discounts on smart door device systems (Feng, Setoodeh and Haykin,
2017). Moreover, newspaper, TV advertisements and advertising in magazines are added to
promotional strategy. On the other hand, first 50 orders will be offered with discount of 40 %
which will maximise sales.
Segmenting, Targeting and Positioning
The STP strategy is crucial one for increasing sales of firm and attaining of target market
is also provided with the help of it. For maximizing revenue and supplying goods to target
audience, STP is significant one. The strategy is listed below-
Segmenting-
It is done by considering factors such as demographics, psychographic, geographic and
behaviours. In relation to this, VPSS will apply demographic and behavioural type of
segmentation for attaining segmentation which will be based on demographic profile of
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customers and reliability of security services. The segmented market will mainly be men
between 25-60 and as a result, segmentation will be done with ease.
Targeting-
The target market is based on customer taste, preferences, purchasing desire etc. VPSS
will target audience who frequently go out for holidays and who requires more security in
comparison to people do not go out (Jadallah and et.al., 2017). Moreover, families with children
will be targeted for making sales in effective manner. Thus, it can be said that target market of
these group of people will be approached by firm and desired amount of profits would be
accomplished in a better manner.
Positioning-
The positioning of the market will be based on the mechanism that people who frequently
visit outside and families having small children will be in need of more security at home. This
means that product would be positioned in a better manner and business will be able to attain
profits with ease.
4 P's of Innovation-
Process-
The process is required to be kept simple for providing easy buying of products in the
best manner possible. It can be assessed that firm will provide accessible services to customers
so that they may install it in effective manner. The customer will quote his order on shop, Extra
Smart Door will be placed and fitted onto the main door of customer's house. It will be fitted
within 30 min to 1 hour saving time of business and customers as well. Moreover, shoppers can
also avail free shipping service on their very first purchase.
Position-
Positioning will be imparted and changed in accordance to product launch in the firm. In
order to accomplish this, training sessions will be provided to customers in for accomplishing
stakeholders' requirement in the best manner possible. The success of entrepreneurial idea and
innovation is required to be kept in accordance to the opportunity prevailing in the market of
UK. This means that desired amount of services will be provided to company so that company
may be able to attain efficiency with ease (4 P's of innovation. 2018). Moreover, such innovatory
idea will be provided to firm so that customers may be able to attain profits in effective manner.
Paradigm-
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The paradigm for providing Extra Smart Door to business is that business may be able to
impart services in effective manner. Moreover, it can be analysed that promotional discounts will
be imparted to customers so that desired quantum of data base will be handled in effective
manner. Maximizing and adding to customer value will be enhanced which will provide
customers with Hi-tech smart door locking system for gaining profits. Moreover, it can be said
that firm may be able to provide superior quality goods in effective manner (Aich and et.al.,
2018).
Product-
Extra Smart Door device is useful for imparting security of houses in the best manner
possible. The face recognition system will be stored for two faces which will be beneficial for
owner of the house as unauthorised access will be blocked and criminalities happening in
London will be reduced up to a major extent. It can be said that firm will be able to provide
effective good as it can be paired with mobile app and can be accessible through app and as a
result, firm may be able to attain profits in effective manner.
It can be analysed that marketing strategy will provide VPSS to effectively attain desired
growth in the market of London so that business may be able to accomplish desired amount of
profits in the best manner possible. Moreover, STP will be used in accomplishing and assisting
stakeholders' experience and as such, VPSS would succeed in the starting year of operational
activities with ease. This means that opportunity development is made and business will achieve
desired amount of profits with ease in the market.
Risk Analysis-
The risk exists at the moment as with the rapid technological advancement, criminals
break with ease into security system and steal valuables. For mitigating risk, investment in
training of IT engineers will be made so that they may be updated with changes in trend
prevailing in the country. Moreover, it can be analysed that in case of run out battery or
impossibility to open the door by people (Khan and Siswick, 2017 ). It will be mitigated by firm,
investment will be made for providing durable and long-run buildings. Low quality of device has
to be considered so that it may not dissatisfy customers. It is required to mitigate risk in better
manner by properly forming atelier for manufacturing own device in effective manner.
Back-up plan-
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The back-up plan is considered that additional service will be offered to customer so that
they can access the same by making phone call 24/7 which will take them through a security
check question (Olayemi and et.al., 2017). By correctly answering question, door will be opened
directly with ease. Hence, smart and high technology system will benefit customers ensuring
their security and safety of homes.
Financial Projections
Forecasted Cash flow statement
Particulars Jan Feb Mar Apr May Jun
Cash
Inflows
Sales
revenue 70000 75000 80000 85000 90000 95000
Other
income 10000 12000 12500 13000 14000 13500
Total cash
inflows 80000 87000 92500 98000 104000 108500
Cash
Outflows
Patent 5000 5000 5000 5000 5000 5000
Rent 12000 12000 12000 12000 12000 12000
Machines 3000 3000 3000 3000 3000 3000
Software 5000 5000 5000 5000 5000 5000
Supplies 5000 5000 5000 5000 5000 5000
Staff
training 1000 1000 1000 1000 1000 1000
Wages 20000 20000 20000 20000 20000 20000
Insurance 500 500 500 500 500 500
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Advertising 2500 2500 2500 2500 2500 2500
Website 1000 1000 1000 1000 1000 1000
Utilities
bills 2000 2100 1900 1950 2000 2100
Materials 2500 2400 2500 2550 2450 2500
Direct
labour 10000 11000 11500 11000 10550 10700
Repairs and
maintenanc
e 1000 1000 1100 1200 900 1000
Total cash
outflows 70500 71500 72000 71700 70900 71300
Net cash
flow 9500 15500 20500 26300 33100 37200
Opening
Cash
balance 0 9500 25000 45500 71800 104900
Closing
Cash
balance 9500 25000 45500 71800 104900 142100
SECTION 4: CONCLUSION
Hereby it can be concluded that entrepreneurial idea of starting business venture should
be transformed into viable business in order to attain benefits out of it. Extra Smart Door VPSS
will be offer smart door device which can be installed at the main door of customer's house. The
opportunity prevails for the company in attaining profits as criminalities are increasing in
London. From the report, outcome generated is that business will be able to garner good share in
the market despite of competition. The uniqueness of product states that product will be desirable
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and affordable to customers as it is easy to use and also will have a long run of solar battery
leading to achieve satisfaction level of customers quite effectively. Thus, firm will succeed in the
market with ease.
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REFERENCES
Books and Journals
Aich, S., and et.al., Ford Global Technologies LLC, 2018. Smart device vehicle integration. U.S.
Patent 9,870,696.
Cheng, S.Y.T. and et.al., August Home Inc, 2017. Wireless access control system and methods
for intelligent door lock system. U.S. Patent 9,691,198.
Feng, S., Setoodeh, P. and Haykin, S., 2017. Smart home: Cognitive interactive people-centric
Internet of Things. IEEE Communications Magazine, 55(2), pp.34-39.
Han, D., Kim, H. and Jang, J., 2017, October. Blockchain based smart door lock system.
In Information and Communication Technology Convergence (ICTC), 2017 International
Conference on (pp. 1165-1167). IEEE.
Huatao, L.I.U and et.al., 2017 Honeywell International Inc .Access control system using smart
phone. U.S. Patent 9,557,719.
Jadallah, S., and et.al., Tyto Life LLC, 2017. Door lock assembly for a dwelling. U.S. Patent
9,702,168.
Johnson, J. and Cheng, S.Y.T., August Home Inc, 2017.Intelligent door lock system and
vibration/tapping sensing device to lock or unlock a door. U.S. Patent 9,695,616.
Johnson, J., Cheng, S.Y.T. and Mainwaring, K.N., August Home Inc, 2017. Intelligent door lock
system that minimizes inertia applied to components. U.S. Patent 9,574,372.
Khan, M. and Siswick, H., Jaguar Land Rover Ltd, 2017.Vehicle access system. U.S. Patent
9,563,990.
Min, Y., 2018. Electronic door lock management method and system. U.S. Patent Application
10/043,328.
Nania, A., Ford Global Technologies LLC, 2017. Power door system for a motor vehicle. U.S.
Patent 9,834,978.
Olayemi, O., and et.al., 2017. Security issues in smart homes and mobile health system: threat
analysis, possible countermeasures and lessons learned.
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