Assignment on
New Venture Creation and Management
Submitted to:
Md. Rashedur Rahman
Associate professor
Department of Organization Strategy & Leadership
University of Dhaka
Submitted by:
Sadia Islam
ID: OSL-FM-14
Batch: 2nd
Department of Organization Strategy & Leadership
University of Dhaka
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Table of Contents
Executive summary ..................................................................................................4
Business idea .............................................................................................................5
Six themes of the 24 steps ........................................................................................6
Step 0: Getting Started ............................................................................................6
Who is your customer? ............................................................................................7
Step 1: market segmentation ...............................................................................7
Step 2: Select a Beachhead Market .....................................................................8
Step 3: Build an End User profile .......................................................................8
Step 4: Calculate the TAM size for the Beachhead Market .............................8
Step 5: Profile the Persona for the Beachhead Market.....................................8
Step 9: Identify Your Next 10 customers............................................................9
What Can You Do For Your Customer ...............................................................10
Step 6: Full Life Cycle Use Case ........................................................................10
Step 7: High- Level Product Specification .......................................................10
Step 8: Quantity the Value Proposition ............................................................11
Step 10: Define Your Core .................................................................................11
Step 11: Chart Your Competitive Position.......................................................11
How Does Your Customer Acquire Your Product .............................................12
Step 12: Determine the Customer’s Decision-Making Unit (DMU) ..............12
Step 13: Map the Process to Acquire a Paying Customer ..............................12
Step 18: Map the Sales Process to Acquire a Customer .................................13
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How Do You Make Money off Your Product......................................................13
Step 15: Design a Business Model .....................................................................13
Step 16: Set Your Pricing Framework..............................................................14
Step 17: Calculate the Lifetime Value (LTV) of an Acquired Customer ......14
Step 19: Calculate the Cost of Customer Acquisition (COCA) ......................14
How Do You Design & Build Your Product .......................................................15
Step 20: Identify Key Assumptions ...................................................................15
Step 21: Test Key Assumptions .........................................................................15
Step 22: Define the Minimum Viable Business Product (MVBP) ..................15
Step 23: Show That “The Dogs Will Eat the Dog Food” ................................15
How Do You Scale Your Business ........................................................................15
Step 14: Calculate the TAM Size for follow- on Markets ...............................15
Step 24: Develop a Product Plan .......................................................................16
Conclusion...............................................................................................................17
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Executive summary
There is no shortage of reasons to apply the ‘Disciplinary Entrepreneurship’ framework to various
innovation-driven processes in established or underdeveloped organizations or to meet the needs
of corporate, exploratory, and entrepreneurship. In this article, there are 24 steps to a successful
start-up. It has been analyzed all these 24 steps and develop a whole business plan. This discussion
will help us to increase knowledge and teach us how to do a successful business step by step.
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Business idea
The business idea is a subscription-based meal kit delivery system with customized diet plans.
Meal kit delivery is already a very attractive industry in other countries that had a global turnover
of 7.6 million last year and has 12% growth rate. With the increased health consciousness of
people and increasing the number of working parents, it is timely and durable as well. But in
Bangladesh, it is totally new. Most of the people don’t about the service. We try to add more
features to this meal kit delivery project which will add value also. And we will help to deliver
all these small and medium online cooking pages. Basically, a meal kit delivery system is a food
business model where sells pre-cooked foods, or half-cooked foods with the delivery system.
Again many people couldn’t follow the diet chart food. We will also provide the customized diet
chart food. In this system, we collaborate different types of Facebook cooking pages and make a
customized menu list.
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Six themes of the 24 steps
There are 24 steps to a successful startup. These 24 steps can be divided into six themes. These
themes are-
1. Who is your customer?
2. What can you do for your customer?
3. How does your customer acquire your product?
4. How do you make money off your product?
5. How do you design & build your product?
6. How do you scale your business?
These six themes are helped to set a start up’s. Generally these themes are guideline to the new
business.
Step 0: Getting Started
First of all, it is important to know the two things.
1. Do I want to start a company?
2. Do I have an idea or technology that I can do a Market Segmentation (Step 1)?
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These answers can be summarized into three major categories.
➢ Have an idea: I have to find an idea which can solve the human- centered problem. The
idea is subscription- based meal kit delivery system with customized diet plan which solve
some major problems.
➢ Have a Technology: Here, I came up with the internet- based idea which will collaborated
most of the online cooked pages. I will take this technology advantages to run my start-up
➢ Have a passion: Passion is the most important thing for any kind of business. Without this
idea or technology don’t have much value. The passion has so much advantages.
Who is your customer?
Step 1: market segmentation
The single necessary and sufficient condition for a business is paying customer. Market
segmentation is a marketing term that refers to the gathering of potential buyers into groups or
segments with common needs and their reactions to marketing behaviors are similar. To create a
market segmentation, brainstorming is must. Now I will choose 6-12 top opportunities and do
market research very primarily. I have to use customer- driven approach by meet the unmet needs
of consumers. As resources are less, so market segmentation is most important thing for start-up
businesses. For my business, the market segmentation will be most of students who live in hall or
mess, whose parents are working, who are seeking to diet food or customized food. These are the
main category for my start-up business. There are some significant topics to the specific end users.
➢ Is the target customer well-funded?
➢ Is the target customer readily accessible to your sales force?
➢ Does the target customer have a compelling reason to buy?
➢ Can you today, with the help of partners, deliver a whole product
➢ Is there entrenched competition that could block you?
➢ If you win this segment, can you leverage it to enter additional segments?
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Step 2: Select a Beachhead Market
From all of these 6-12 markets, I need to select one beachhead market and ignore others. Focusing
on one single market, it is easy to establish a strong market, use limits resources and make a
positive cash flow.
Three conditions define a beachhead market.
➢ Customers all buy similar products.
➢ Customers have a similar sales cycle and provide value in a similar way.
➢ Word of mouth
Step 3: Build an End User profile
The goal is to find an end user profile with similar characteristics and similar needs. This end user
profile shows the right path with the right focus. Our end user profile-
Gender Male (65%), Female (35%)
Age 20-35
Education Under graduation, post-graduation
income 10000- 40000 monthly
Type Student, bachelor, child of working parents.
Health-conscious people.
Step 4: Calculate the TAM size for the Beachhead Market
The full from of TAM is Total Addressable Market which refers the amount of annual revenue in
the beachhead market. There are two types of analysis such as- bottom up analysis and top down
analysis. Using these analysis, it can be determined how many end user really exist and how many
end users meet various characteristics.
TAM= the number of end users * the revenue per user
Step 5: Profile the Persona for the Beachhead Market
To make the profile of the persona for the beachhead market is really meaningful. A persona is the
best representative of the beachhead market. Using this persona’s profile everyone in the business
will understand consumer’s profile better and will keep the persona in their minds.
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The persona’s profile-
Name Ariful Islam
Age 22
Gender Male
Occupation Student
income 12000 (monthly)
Needs 1. Healthy and tasty foods
2. Diet foods
3. Sometimes customized foods
goals After graduation, he will do a corporate job and
take care of his whole family.
Passion Writing short stories, novels.
Hobbies Traveling, listening to songs, reading different
types of books.
Step 9: Identify Your Next 10 customers
The next 10 customers that similar to the end user-profiles and the persona’s profile. There are
some steps to identify the next 10 customers.
1. Those 10 customers who are interested in my product or service
2. Identify the customer’s needs and ideas that are similar to the persona, full life cycle use case,
TAM assumptions
3. Now, ask the customer once my products or service will available if he/ she buy it or not.
4. Related to each customer and get new data that can modify our business assumptions.
5. If there is no 10 customers, it is urgent to redesign the beachhead market.
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What Can You Do For Your Customer
Step 6: Full Life Cycle Use Case
The full life cycle use case defines how the product fits into the persona’s value chain. The persona
should know that our product meets their existing products. There are some important factors of
the full life cycle use case.
➢ How end-users will determine they need something different
➢ How they will find out our product
➢ How they will acquire our product
➢ How they will use our product
➢ How they will determine the value gained from our product
➢ How they will pay for our product
Step 7: High- Level Product Specification
High-level product specification is the visual representation of what oil product will be, how the
process will work, when it is finally developed.
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Step 8: Quantity the Value Proposition
This step is very important to the customers. What value gain from our product to the customer?
It is required to balance the value proposition with the persona’s priorities. A visual diagram is
needed, where the customer easily understands the value based on the persona’s top priority.
Step 10: Define Your Core
The core is the organization’s main or essential parts. The core can be network effect and customer
service, lowest cost, or user experience. Core and competitive advantages are not the same. The
core is something different that delivers advantages and benefits to the consumer. In my business,
the core is network effect and customer service.
Step 11: Chart Your Competitive Position
A competitive positioning chart defines deliver consumer’s most top two priorities rather than
competing with other companies or businesses. It is more important to fulfill customer’s unmet
needs and those needs are not being met till now.
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How Does Your Customer Acquire Your Product
Step 12: Determine the Customer’s Decision-Making Unit (DMU)
In this step, there are multiple roles to make the decision either they will buy the product or not.
Such as- champion, end-user and primary economic buyer. To determine the customer’s decision-
making unit, it is important to being inquiry mode rather than advocacy or sales mode. To
successfully sell the product, it needs to understand who takes the ultimate decision to buy and this
product or service meet the existing needs or not
Step 13: Map the Process to Acquire a Paying Customer
To map the process to acquire a paying customer, there are some factors-
➢ Understand the length of the sales cycle
➢ Build the foundation for the cost of customer acquisition calculation
➢ Identify hidden obstacles
➢ Be able to show the potential lenders or investors
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Step 18: Map the Sales Process to Acquire a Customer
It is similar to the previous process, but assigns the sales process to the customer. Mapping the
sales process to acquire paying customers help create effective models for business ideas and
understand cash flow.
How Do You Make Money off Your Product
Step 15: Design a Business Model
Focusing in this step, it can be effect on the profitability of our business. Customer, value creation
and capture, competition and distribution these are the main factors when designing a business
model. Here our business model-
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Step 16: Set Your Pricing Framework
In this step, the quantified value proposition and business model both are used to set a pricing
framework. Here costs are totally irrelevant to the pricing framework. Improving prices will have
a big impact on profits. Price can be changed anytime.
Step 17: Calculate the Lifetime Value (LTV) of an Acquired Customer
Customer lifetime value is a method of calculating the total revenue that a business can earn from
a single customer. Consider the value of the customer’s revenue and compare that number to the
expected lifetime of the company’s customer. It is important to calculate LTV over a five year
period.
Step 19: Calculate the Cost of Customer Acquisition (COCA)
To calculate the cost of acquiring customers, accumulate the total cost of sales and marketing
including salaries and other expenses related to the number of employees in a given period and
then divided it by the number of customers acquired during that period.
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How Do You Design & Build Your Product
Step 20: Identify Key Assumptions
This is the very first step to get into the real market. Till now, we have many hypothesis and
assumptions it will be tested in the next step. Before proceeding to the next step, we will determine
all the components. There are some assumptions-
➢ Customers priority the healthy foods
➢ Customers prefer the various items that are also tasty
➢ Customers prefer handmade cakes, various pickles, etc.
➢ Customers prefer fresh foods
Step 21: Test Key Assumptions
This step involves testing key assumptions and verifying or disproving them. This step is very
important and should not be skipped. When the project is available in the real world. This step will
be completed later.
Step 22: Define the Minimum Viable Business Product (MVBP)
This step represents a product that provides value to customers. Paying customers will use it to
start a feedback loop to help iterate better versions of the product.
Step 23: Show That “The Dogs Will Eat the Dog Food”
Here, we want to point out that real customers buy our products. By showing the actual value they
are getting it. It takes a good display and a good assembled world to achieve the goal- client
activation point.
How Do You Scale Your Business
Step 14: Calculate the TAM Size for follow- on Markets
This step is important because once it has completed a beachhead market, it needs to target more
to increase the commercial market. We will consider sales opportunities and other sales while
focusing on our core is innovation. Market attention is not the direct market we are targeting.
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Step 24: Develop a Product Plan
The main thing of the product plan is to develop new, innovative products. The product need to
better than the existing product and create superior value to the customer
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Conclusion
Using all these 24 steps one can easily turn the business idea into a successful startup. Disciplined
Entrepreneurship is the most important thing for any kind of start-up. Entrepreneurs can build great
enterprises based on these 24 steps. This method is the total guideline for the new businesses.
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