Business Development Plan 1

Business Development Plan

Institution

Name
 Business Development Plan 2

Business Development Plan

Introduction

The development of a new venture creates business competition in the market. It is an

appropriate approach through which multiple businesses get to survive during hard times.

However, it is believed that new ventures have led to competition lacking external influence by

several entrepreneurs. New venture development is an issue of keen interest in societies. New

ventures promote socio-economic events through job creations as well as filling market gaps. As

indicated by Kimball and Lussier (2020, p.45), three issues spur societies in the establishment of

new ventures. These incorporate job creation, globalization, and innovation.

Our new venture in the Lean Business Canvas provides an online platform through which

students interact and sell their wares. These days, technology drives the word. Businesswise,

firms venture into the use of technology to mollify millennial clients who form a massive

number in our societies. The university students use technology in their daily life ranging from

smartphones, laptops, among others, to connect. Besides, multiple online platforms such as

Amazon, e-bay, and others operate, thus providing bridging links between sellers and buyers.

Lean’ Business Model Canvas intends to create the Smart Cups which are re-usable. These shall

be used majorly for university students. Smart Cup-reusable will be accessible via Google store

to make it available to students via phones and laptops for the sales purposes.
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The report has been generated by the Chief finance officer (CFO) of XYZ Technologies.

Thus, it gives a good glimpse of all expectations, which are likely to be undertaken by the

management to make the new venture a success. In the first year of operation, it is projected that

the company would generate a profit of £ 2.6 million from the sales of the Smart Cup-reusable

via Google play with a cash flow of £1.4 million. The company would make £19 million in the

second year of operation. Essentially, the revenue is equivalent to the profit margin goal of

17,000 apps sold per annum. The profit of the third year revenue would hit £ 59 million as

calculated in the appendix

The report gives a full customer value proposition canvas, Lean Business Model Canvas,

and the contribution level of a specialized CFO. Again, it provides financial plans that shall

present a comprehensive business plan for the lean business star-up. The business will involve

software designers-particularly the engineering students who are versed in various programming

languages. The start-up offers better opportunities for talented students to showcase their talents

and gets monetary rewards in the form of remuneration.

Customer Value Proposition Canvas

As indicated by Mohsen et al. (2020.p.34), value proposition canvas is defined as a tool

that assists in ensuring that products and services are positioned around the needs and values of

customers. It is used whenever there is a need for refining existing products or services provided

by an organization. Value proposition canvas can be used when a firm has a new offering being

developed again. It is made up of two main blocks. These include the value proposition of a

company and the customers' profile. The customer profile contains gains, pains, and customer

jobs. Gains are defined as benefits that clients need and expect from the developed products.
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Gains incorporate things that are likely to delight the consumers, thus increasing their probability

of value proposition adoption. The benefits for our customers will be a suitable cups tailored

towards meeting their needs. The customers will be able to interact with one another as they sell

their items within the university. Students are saved from traveling far to meet with the sellers or

buyers of their products. Pains refer to negative emotions, risk, and experiences which customers

might undergo in the process of enabling appropriate jobs to be executed (Younger and Fisher

2020, p.56). Our customers' pain appears when they meet masquerading persons using the Smart

Cup-reusable as sellers or buyers. It is hard to control every person using downloading the app

after paying from the Google Store. Customer jobs refer to emotional, social, and functional

tasks customers attempt performing. It entails predicaments of customers solved as well as needs

satisfied. Smart Cup would solve the distance problems where most students have been traveling

outside the school to look for what they require. The app acts as a linkage between the students

to do business together. It is breaking the issue of distance.

The value map is composed of pain relievers, gain creators, products, and services. Gain

creators refer to how the product shall generate gains and provide value to the clients. The Smart

Cup-resusable app will provide value to our customers by bridging the gap between sellers and

buyers. The product spurs linkages. Pain relievers describe how products alleviate the pain of

customers. Smart Cup-reusable will save the students from moving from one place to another in

search of products. Students acquire needed items at the comfort of their smartphones or laptops.

Thus, there would be no more walking moving up and down, looking for necessities. Products

and services refer to things creating gains as well as relieving pains. Products and services

underpin value creation for most of the customers. Smart Cup-reusable is our new venture

product. The services which the product shall offer include payments, buying and selling, and
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social services within the university. The products services form the core issue in the daily of

students. Occasionally, with few online platforms existing for sales, students who are used to

acquiring their products efficiently through the use of technology have been facing challenges.

Smart Cup-reusable alleviates such problems. Thus, with the product, students shall get a variety

of items in one basket with the use of Smart Cup-resusable

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Figure 1. Value proposition Canvas

‘Lean’ Business Model Canvas

Business Model Canvas provides the right way in which the business model is created. It

is the model that is used in describing the company from the start-ups to already established

firms. Entrepreneurs go for BMC since it is easier to comprehend. The canvas places more

focus on customers, thus forces businesspersons to take into consideration the value proposition

of customers (Pearce and Pearce 2020, p.34). BMC indicates connections on how various

sections relate to one another. This is a section that is hard to ascertain by the use of traditional

business plans. The canvas makes it easier to communicate your idea to the shareholders. Each

part of the BMC attempts to answer questions that are essential for the takeoff business. The

following are some of the building blocks of a business model canvas:

Customer segment

Within this is the block, BMC outlines various parts of the customers who would be served by

the business. Mostly, customers do not exist, but most companies exist to give services to the

clients. Our new venture will serve two segments of customers. It will offer services to the

people needing the services of the buying products. Again, it serves the interests of sellers.

Sellers will advertise the products to create rapport with buyers.

Value proposition

Value proposition outlines values which the business will deliver to the market or every

customer segment. It gives an outline of the problems which can be solved for every customer
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segment. It provides needs which would be satisfied by the product as well as the reason why the

customers must stock the items sold. Our value proposition includes:

Price -Smart Cup-reusable is affordable to all targeted customers- students. The cups will be

downloaded from Google play at a reduced cost, which is pocket friendly for most of the clients.

Newness- Smart Cup-reusable newness to the market would make more clients try using the

product. The product is a convenience to use since it does not need a lot of training for one to

commence using it.

Risk reduction-The The product reduces the risk of a student being conned by online fraudsters.

In my occasions, trading online has been a challenge to buyers seeking products. Many people, at

times, masquerade to be a seller, but their motives are weird. Such persons have the intention of

defrauding buyers their hard-earned money. Smart Cup-reusable uses security features and

ensures that those registering and access cup are genuine students from the university.

High performance-The cup’s top performance will be seen in its capability of linking several

customers at a go. Thus, the performance of the app is unmatched with others in the market.

Channels

Channels describe ways in which products or services reach clients. Customers interventions

should be sought for to complete this section. The management ought to know how clients need

products to reach them. Our business venture would have a website where customers shall be

reached easily. Again, the sales force shall be employed to market the Smart Cup-reusable and
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social media platforms. The marketing team will conduct face to face meetings with various

students to promote the product

Customer relationship

Customer relationship defines how an organization is engaging the customers to deliver the

practical experience to them. The company should venture into communications that strengthen

the bond of customers not only in the preliminary marketing phases but similarly after

purchasing the product. Communication assists in improving customer retention and acquisition.

Firms which have a robust relationship with the clients increase their profitability hence revenue

as good customer relationship increase loyalty among the customers. Customer relationship is

essential since businesses need to be trusted by prospective customers. The reputation of the

brand has impacts on the trusts customers have in a product within the market, thus promoting

their willingness to purchase the product. The strategy for the customer relationship

management of our business is designed to assist the firm in generating profits. The CRM gets,

keeps, and grows the customer base. The company shall provide self-services to the customers as

Smart Cup-reusable available in the Google store would be downloaded and installed by them

without any aid of the staff (Kimball & Lussier 2020). Again, services are automated as long as

one has downloaded the product and consented to the terms and conditions of the cups. We shall

be serving particular groups with the products-students.

Revenue stream

It is a component of a business model that concentrates on how the entire business shall be

generating sales. Alternatively, it is the distinct income source which comes from either

recurrent revenue or service income. It forms part of the business strategy assisting in the
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planning and investments within an organization. Revenue stream depicts economic values in

which clients are willing to pay for the offered services or products. It impacts on the working of

a business model even though it is not a model. The revenue streams for our venture would

incorporate usage fees, advertising, subscription feed, and fees charged for cups.

Key resources

These refer to the products which are needed by an organization to produce the end product.

Mostly, essential resources rely on the form of business. The key things needed for by our

company to operate include finance, digital resources, and human resources, physical and

intellectual resources. Material resources will include items like equipment and a building for

office location. A starting capital shall be needed to meet various expenses, tools for project

management, and salaries. Human resources shall be required for scientific research and design

work.

Key activity

Marketing will be a critical activity in our business. The strategy for marketing involves

choosing the resources required in growing the company according to products and services an

organization offers. XYZ technology shall develop a plan of entering the market with its digital

cups meant to make buyers and sellers meet. Sellers will post their items on sale to attract

potential buyers. The background check shall be undertaken for verifications of the products

displayed.

Key partnership
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Our firm will start as a single entity. However, with time, the company will partner with other

businesses to assist in effective service delivery. The partnership associations form the primary

motives as to why firms need to spread their risks to others in attempt to provide the opportunity

for growth. Our new venture at the start would promote buyer-seller relationships before

expanding into other joint ventures.

Cost structure

The main costs for the company, in the beginning, would include salaries for the staff, lobbying,

and marketing. The company though CFO will balance every cost for easy calculation of break-

even point.

CFO Level Specialist contribution

Provided the transforming roles of a CFO in various business dimensions, these are vital

skills that are needed from a CFO to completely fulfill their duties. The daily financial focus is

still the primary duty of CFO, even though such a role is diminishing concerning business

demands (Pearce and Pearce 2020, p.36). For one to work effectively as a CFO, fundamental

skills on finances are requisite.

As the CFO of our new venture, I would use my leadership and communication skills. I

will provide wise counsel together with the voices of reasons. It will be my responsibility to lead

groups in wider transforming programs (Aier, Comprix, Gunlock and Lee 2005,p.126). A CFO

ought to have the capacity to translate comprehensive information into a concise, clear, and

accessible message. The company would employ top talented individuals to ensure that they give

leadership skills in ant financial functions.

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CFOs are required to have a robust comprehension of the organizational business model.

They are supposed to employ the knowledge of the business model in providing independent

perspectives. As the CFO, I will be in a position to challenge the operations of various teams in

the business. Thus, it assists in ensuring that the decisions made by the company about financial

matters are robust and binding critical issues required to be done. I will be able to navigate

through complex data as well as offer analytics and scenarios that are predictive to drive actions

and improve the profitability of the company.

I would make sure that the company adheres to all control measures. In an increasingly

global and unpredictable business environment having plethora burdens on regulations, it is the

task of a CFO to make sure that appropriate assessments, as well as mitigation risks, compliance

with various legal requirements, are attained. For that matter, I will be charged with managing

risks like a business executive on multiple initiatives, strategies alongside maintaining robust

internal control environments, and the process of financial reporting.

By assisting in business strategies and supporting plan executions enable smooth

operations of the company. As the CFO, I will play my role by ensuring that priorities are

provided to the issues which are urgent for the stable functioning of the company. I will sure that

profitable strategies are funded immediately to assist the company increase its revenue capacity.

My set financial skills will be applicable in building a predictive model, analyze trends in macro-

economic, and incorporate non-financial information to steer the company forward. My role

would be to design communication strategies as well as progress in providing more information

to investors and stakeholders regarding the financial viability of the company.

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My behavioral competency is primary to the role of business partnerships. A '' seat at the

table'' ought to be earned CFOs need to show visible leadership within the business operations.

Excellent communicators and influencers are deemed to make appropriate leadership in the

financial field. I am curious and that my attribute is the required skill, which shall boost my

operations in the company. I would be responsible for the economic challenges that an

organization undertakes.

Finance is embedded in the entire corporate operations. I will provide decisions in

supporting the main functions of the company, such as production, commercial, and marketing. I

will make my financial team dedicated to financial analysis and offer support to various essential

functions of the business. I will be capable of opening dialogue between operations and finance.

This needs to be fostered excellently by the use of data flow in business operations. Thus, it

would make business functions to be accountable with the aid of financial metrics in the

company. This will similarly permit the economic team to offer insightful commentaries by a

better comprehension of all business processes.

Key Partners Key Activities Value Customer Customer

Investors Designing proposition relationship segment

Students software Meeting demand Supportive Buyers

Buyers Social activities of buyers and Automated Sellers

Sellers sellers payment services

Key resource Channels
Cheaper products
Technology Face to face
Risk reduction
marketing
Newness
Social media
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Personal

relationships
Cost structure Revenue stream

Salaries Payment from subscriptions

Marketing and advertisement Advertisements

Lobbying Earnings from downloads

Financial and financial plan

The capital investment of the venture is £2.6million in total. This will incorporate £1.4

million used for cash flows. For the projected cash flows, the capital expenditures will include

computer equipment representing 20 percent of the current fixed cost of the venture.

Technology and software investment represents 50 percent of the existing assets. The break-

even point will be reached at £222,000. The general assumptions to be made for the financial

success of the venture would be on current and long-term interest rates to be maintained at 10

percent for all the first three years in operation. The tax rate shall be assumed to be 25.42 percent

for the three years of services. The projected profit and loss will take into consideration the costs

of technology employed, advertising, general administration, research and development, and

sales and marketing cost. At the start, sales and marketing will be allocated £200,000 as

advertising given £250,000 and other as outlined in the appendix. The company will run on total

assets of £1,488,000 for the first year, and the figure is expected to rise to £6,277,277 and

£33,453,018 for the third year, as shown in the appendix.

Summary

The paper gives an analysis of full customer value proposition canvas. It is a Lean

Business Model Canvas and the contribution level of a specialized CFO. Again, it provides
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financial plans that shall present a comprehensive business plan for the lean business star-up.

The business will involve software designers-particularly the engineering students who are

versed in various programming languages. The start-up offers better opportunities for talented

students to showcase their talents and gets monetary rewards in the form of remuneration. The

plan gives CFO level specialist contributions to the business. CFO is in charge of the financial

operations of the firm alongside other team members such as CMO, CEO, and CTO. The

financial projections that have been provided in the paper outlined what the expected in terms of

the financial progress of the company are.

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References

Aier, J.K., Comprix, J., Gunlock, M.T., and Lee, D., 2005. The financial expertise of CFOs and

accounting restatements. Accounting Horizons, 19(3), pp.123-135.

Kimball, D. C., & Lussier, R. N., 2020. Entrepreneurship Skills for New Ventures. Routledge.

Mohsen, K., Saeed, S., Raza, A., Omar, S., and Muffatto, M., 2020. Does using the latest

technologies impact new venture innovation? A contingency-based view of institutional

environments. Journal of Small Business Management, pp.1-35.

Pearce, D.D., and Pearce II, J.A., 2020. Distinguishing attributes of high-growth ventures.

Business Horizons, 63(1), pp.23-36.

Younger, S., & Fisher, G. 2020. The exemplar enigma: New venture image formation in a new

organizational category. Journal of Business Venturing, 35(1).

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Appendix A

Projected cash flows

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Pro forma cash flow

Break-Even Analysis Graph

General Assumptions in operations

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Appendix B