Entrepreneurship and Venture Capital

Management
JUNE 2023 EXAMINATION i i

QUESTION 1: Write a business plan (executive summary) of your own i

entrepreneurial idea also suggest and explain what kind of financing would
you prefer for the same and why? (10 Marks)

ANSWER 1: i

A business plan can be characterized as a document that explains our company's

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objectives and our strategies for achieving them. Every marketing plan comprises a
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first element that consists of management and advertising. An executive summary

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that summaries each stage of planning in a one- to two-page overview is also

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required.

Despite the fact that the executive summary summaries the enterprise, it is written
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and placed at the start of the business plan. The executive summary, however, must be
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iconstructed last. Developing the resume may become easier once the task has been
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completed and the business plan has been referenced. It is, after all, for a summary of
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the information in the application. Limit the executive summary to a few paragraphs
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to make it easier for readers to follow what it says.

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Let's draught a business strategy executive summary.

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The sections chosen for the business strategy must be listed in the executive
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summary. It's a more accurate approach to list the components of the strategy so that
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the reader can obtain a more thorough overview of what to anticipate.

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Mission:

 The commitment of our business is to offer our clients the greatest financial
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guidance. i

 People are being stolen from in the current world under the guise of i i i i i i i i i i i i i

investments, but our business will provide the greatest funding options for our i i i i i i i i i i i i

clients.
 Our company will manually make well-informed decisions.
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 People wanted to buy assets with their hard-earned money. i i i i i i i i i i

History and management of the company:

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 Our business might be classified into two categories, Bangalore.

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 It has only just begun, and our business is brand-new.

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 It's me, Mr. Rytham Rathi. I will manage that business.

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 I have more than 15 years of expertise in the finance industry.

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Goods and services:

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As said previously, we are forming a financing company so that we may advise

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customers on investing their money in unique possessions. We'll provide investing

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plans. We may offer precise investment ideas to help our customers, as crooks
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defraud investors every day.

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Market: i

 It is a market worth five billion dollars.

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 The market includes both long-term and transient customers.

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 The market is substantial and varied. The market wants qualified players to
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direct investors. Robbing people who are investing their hard-earned money
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might damage the reputation of the stock market. i i i i i i i

 The market has a sizable capacity for growth. Four percent of the Indian
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population invests in the stock market and mutual funds, according to the i i i i i i i i i i i i
 market analysis. There is a lot of room for expansion, and our employer has the
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best chance of doing so.

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Advantages of aggression: i i i i

 Our business employs competent financial analysts.

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 We have enjoyed the stock market for more than 15 years.

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 Our company's motto is "helping clients make huge profits."

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 We put our clients' needs ahead of our own.

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Economic forecasts: i

 We've determined through market research that we can advertise our financial
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plans for roughly $1 million during the first year.

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 We predict earning $1 core thirty lakhs in the second year.

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 We expect total revenues of two cores in the third year.

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 In the fourth year, we anticipate making about 2.5 Cores.

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Finance needs for startups:

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 Around 50 lakhs will be needed to start the company's operations.

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 Computer expenditures and office expenses are included in the fees and
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charges.
 Additionally, the second-year fees will be 50 lakhs. i i i i i i i

 Because operations will expand and the organization will need more staff to
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handle the operations, the total expenditure over the third year will likely be in
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the nearby of 70 lakhs.

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The purpose of drafting a government summary:

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Everyone will review the one portion of our business strategy if there is one. It is an
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official summary. The executive summary of our business plan gives readers a brief
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overview of the entire document. They must be encouraged to continue reading by

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describing what they can expect to learn. i i i i i i

Writing an executive summary requires that we take the purpose and goals into
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account. i

If our company is just getting started, the necessity for the plan of action (with the
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executive summary) will probably persuade traders or financial institutions to

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provide us with finance. Therefore, when writing a government summary, emphasise

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the financial goals of our business and the reasons that our company deserves
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funding.

Finance options for our startup: i i i i

The best option for our company's financial situation would be a bank loan. Banks are
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the main source of credit for new businesses. Additionally, the p=bank offers loans
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with a 10% interest rate, which is the lowest rate possible. Obtaining a bank loan to
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launch our business would be preferable.

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For our business plan, we have created an executive summary and specified the kind
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of finance we would desire.

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QUESTION 2: Explain in detail business canvas model for a business idea of i

your own. (10 Marks)

ANSWER 2: i

A plan outlining how a business expects to generate revenue might be referred to as a

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business version. It shows who our target audience is, how we add value for them, and
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i the pertinent financial details. We can define such elements on a single page using the
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i business model canvas. i i i i

The business model canvas is a strategic management tool that enables us to research
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and visualize our business concept or idea. It is a one-page paper with nine boxes on
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it, each of which represents a different fundamental aspect of a company.

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By offering a far more streamlined method to comprehend the several fundamental

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components of an organization, the company's version canvas outperforms the old

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and conventional company plans and procedures that run throughout distinct pages.
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The market or the client, which are external elements not under our control, are the
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emphasis of the business canvas's "example" section, while the "left" element is
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focused on internal variables that are frequently subject to our influence. The value
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propositions that reflect the value trade between our consumers and business are i i i i i i i i i i i i

located inside the middle. i i i i i

Do not worry if we are a startup company or an entrepreneur working solely and

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desire a team or group to test our ideas against. Before exposing it with a network or
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forum for like-minded entrepreneurs, we can still conduct our review.

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For our original business concept, let's describe a business canvas model.
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 Purchaser segments: The most important clients to whom we are passing i i i i i i i i i i i

along the cost are identified as the first building element of the company's
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canvas version. i

Since we provide financial services, we target all earners, whether they are
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employed by a company or run their own business. i i i i i i i i

People between the ages of 24 and 60 may be the target market since neither i i i i i i i i i i i i i i i

those under 24 nor those over 60 are particularly interested in investing.

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We aim to appeal to both men and women in our target customer group.
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The programs and products developed for each segment of the customer base
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(mutual funds, relationships, real estate, and so on) are mostly interchangeable.
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Financial plans can be used by both men and women because they can both use
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the same programs. i i

 Propositions of value: The second portion establishes the fee proposals for i i i i i i i i i i i

our business and our USP. What causes clients to choose our rivals over us?
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What of their issues are we most adept at resolving?

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We are a provider of financial services in this instance, as we already indicated.

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We want to charge our clients a fee. We do this by offering clients flexible

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financing options. Every person who earns money wants to increase it. In other
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words, he wants his earnings to work for him or her, but without greater
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knowledge, he is unable to accomplish his objectives. i i i i i i i

We shall, however, make good on their wish to have their money

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compounded. i i

Our unique selling proposition is that we offer premium financial products at

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prices that are far lower than those on the market.

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We are attempting to stop scammers from robbing traders.

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We want to resolve the buyers' financial concerns.

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 Channels: The following stage is when we invite ourselves to consider how i i i i i i i i i i i i

and through what channels we connect with our customers.

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In our situation, we would reach out to potential clients through digital

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channels like mobile, the web, cloud, etc. i i i i i i i i

Through online channels like websites, applications, social networking sites,

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and all kinds of social media apps, we want to communicate with our
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customers. i i

People no longer use old channels of contact, such as field sales

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representatives, shops, etc., since we constitute a provider corporate i i i i i i i i i

corporation and can thus choose current ones. i i i i i i i i

 Consumer interactions: After we have interacted with our clients, we must i i i i i i i i i i i

think about developing, fostering, and maintaining those relationships.

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This is how our company and its customers date:

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1. Through social media. i i

2. An emotional connection to a product.

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Customers are inspired and urged to keep connecting with a logo via social i i i i i i i i i i i i i

media platforms, especially in the financial sector. As was already said, our
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company will have a very efficient communication system.Additionally, a

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bond can be developed between certain financial strategies and customers.

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 These products' emotional appeal also contributes to other forms of brand
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loyalty.

 Sales channels: It’s time to choose how we are interested in capturing that
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value since we have acknowledged that there will be a real cost to our users.
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Our business may also be able to generate income from the following
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additional sources: i i i

1. Online earningsi i i i

2. Transactional approach
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3. Premium price i i i i

For our clients, we can also offer a subscription-based version.

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The best tactic we have is to generate income by offering financial plans for
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sale online, on our site, etc. i i i i i i i

We must understand how to implement a brand-new company idea when we have

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one. We can accelerate our work by using a one-page technique called the business
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model canvas. i

We used the corporate canvas model to discuss every area of our company.
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QUESTION 3: Legacy bakers want to expand their business, due to i

competition and much healthier options available in the market which is kind
of becoming a replacement to their products. Legacy bakers are finding it
difficult to take effective measures to sustain their business among
competitors.

{A} what kind of innovation they should select so that they can be one of the
most chosen brands of all others? (5 Marks)

ANSWER 3A: i

Businesspeople are aware that expanding overseas is the hardest thing to do. It i i i i i i i i i i i i i

demands for various resources, including human and material resources, and entails a
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number of difficulties.
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Starting a business is one thing, but growing it is quite another. To regain customers, I
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believe that legacy bakeries must be conscious of product innovation. Now let's talk
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about product innovation: i i i

It encompasses the development of novel products as well as improvements to

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already existing ones. This could be as simple as including an additional attribute to a

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current service or good or as complex as developing a completely new one. Whatever

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the method, the ultimate goal of this form of innovation is to make customers' lives
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easier by finding novel or unexpected solutions to problems.

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Product innovation is influenced by a variety of factors, including technology

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advancements, outmoded designs, changes in consumer preferences or needs, and i i i i i i i i i i

others. The process of product innovation begins with extensive research that
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identifies opportunities in each of these areas and how they might be applied to the
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product line of a business to better serve the client.

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Product innovation benefits both the customer and the company jointly in different
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ways. When successful, a contemporary supplier or product will more effectively

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meet the needs of the market, resulting in increased sales and revenue for the
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business. One of the most notable recent examples of product innovation is the
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iPhone, whose introduction to the market successfully changed how people engage
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with technology. Apple and other leading phone manufacturers have experienced
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significant success. Only sometimes is this kind of accomplishment a requirement of

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product innovation. However, growth-related costs increased, and new items can be
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expensive. Businesses face the risk that the market would reject the new iterations of
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their products. Some businesses may choose not to innovate as a result of this kind of
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risk, leading to stagnation.

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No matter what element of our organization we choose to create something new upon
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or the strategy we choose to implement, the method's most important component is

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going to involve a free exchange of original thought and creative problem-solving.

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We will need a strong innovation team with the ability to motivate and inspire the
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group members to think creatively and innovatively in order to successfully

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implement the innovation technique on a large scale. i i i i i i i

QUESTION 3B: Do you think they can expand their business by using the
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franchise model?

What will be your advice to them? (5Marks)

ANSWER 3B: i

We must assess all of the benefits of franchising before deciding whether we want to
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become involved with one. Is this to our advantage?

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Yes, Legacy bakers can grow their company by creating a franchise. Let's talk about
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its advantages:
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 Effective business strategize- If a company wants to grow but needs more i i i i i i i i i i i i

capital or money, the franchise variant is well suited for him. It will enable the
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business to expand its operations without spending any money. The company
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must endorse its name and reputation to someone in exchange for a periodic
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franchise fee and a cut of the revenues. i i i i i i i i

 Increased profits because a company's sales will rise as a result of the sale of its
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franchise version. Through franchising fees, the Legacy bakery is able to i i i i i i i i i i i

generate money. In addition, it may retain a portion of the money earned

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through its franchise systems from the people to whom it has granted
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franchises. i

 Much less stress- When Legacy Bakers advertise their business franchises, it
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will mean less stress because they simply have to offer the technical
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knowledge of the company. The franchise owners are required to finish the i i i i i i i i i i i i

remaining tasks and laborious work. Their firm may benefit from this. i i i i i i i i i i

 Less risk to capital- When a firm sells a franchise to an individual, that person
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arranges the financing, not the business. Although the franchise is profitable
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and they have to close it, no money from the firm is lost because the costs are
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borne by the buyer. Thus, it lessens the likelihood of losing money.

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 Growth occurs when a company sells franchises and people purchase them.
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For the success of the franchise, they will put in a lot of effort and help their
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friends. As anyone else could perform the laborious tasks, the real company
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 need only engage in little athletic activities and enjoy relaxing in the backseat.
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This might be a sustainable plan given the current circumstances of the

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bakeries in Legacy. i i

There are numerous benefits to using a franchise variant for Legacy Bakers'
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expansion and growth. However, it wants to make sure the franchise is profitable and
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operates effectively. It must keep an eye on all of its franchisees, as well as the
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franchisee's financial and revenue system. But to sum up, starting a franchisee
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business will be a smart move for Legacy Bakers.

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