Question 1

How would you design your 4C components?

Answer:

The 4C components are derived from the 4Ps of marketing. The 4Cs are co-creation,
communities, customizable and choice. The era of generation C modernized it as connected,
creative, collaboration and contextual. The customer is central to all effective marketing activity.
The design for a zero waste vegan restaurant in a suitable place in Dhaka city according to 4C
components will be as follows. Co-creation will be the zero waste vegan restaurant, communities
will be marketing activities to promote the restaurant, customizable will be the price and value of
the product and service, lastly the choice will be a suitable place in Dhaka city.

Question 3

Mention the type of consumer service you will be offering through this business. Also, at which
stages of the family life cycle will the customers prioritize your service? Lastly, explain the
pricing strategy at the different life cycles of your business. Use proper justification.

Answer:

The consumer service offered with the zero waste vegan restaurant in a suitable place in Dhaka
city will a healthy lifestyle and environment safety will be the priority. Family life cycle
marketing is a method of selling to consumers based on the stages of their lives. Nest building
stage which is the 20 – early 30 year old and sole survivor aged 70-90 years old will prioritize
this service as they are more likely to be concerned about the environment and a healthy
lifestyle. A pricing strategy is a model or method used to establish the best price for a product or
service. At the introductory stage since it is a unique product price skimming can be used which
is deliberately setting a high price to maximize short term profits. Initial price set high to
establish a quality image to provide capital to offset development costs and to allow for future
price reductions to handle competition. At the growth stage consumer pricing can be used which
is combining penetration and competitive pricing to gain market share. Depends on the number
of potential competitors, size of total market, and distribution of that market. In maturity stage
demand oriented pricing follows a flexible strategy that bases pricing decisions on the level of
consumer demand. Sales growth declines. Customers are very price sensitive demand level for
the product. Lastly at decline stage loss leader pricing can be used as the pricing the product
below cost in an attempt to attract customers to other products. Product possesses little or no
attraction to customers. The idea is to have low prices bring customers to newer product lines.

Question 4

At which part of the business may you lose the title "entrepreneur"? How can you extend your
journey as an entrepreneur?

Answer:

A business may lose the title entrepreneur when it stops taking risk and stops growing for the
betterment and comes to a halt. Journey as an entrepreneur can be extended by doing franchising,
joint ventures, acquisitions and mergers. Franchising is a business agreement in which a
producer or exclusive distributor of a trademarked product or service grants individual retailers
exclusive local sales rights in exchange for royalties and adherence to uniform operating
procedures. The franchisor is the one who sells the franchise. The franchisee is the one who buys
a franchise. Joint ventures can also be done which is an independent organization formed by the
collaboration of two or more participating members. Acquisitions can also help to grow that is
the purchase of an entire company, or part of a company; the company no longer exists
independently. Leveraged buyout is also an option which refers to an entrepreneur uses borrowed
funds to purchase an existing venture for cash. Long-term debt financing is provided by banks,
venture capitalists, and insurance companies. Acquired firm’s assets serve as collateral.

Question 5

If you consider this business a start-up, where would you want to see this venture after five
years?
Answer

A zero waste vegan restaurant in a suitable place in Dhaka city as a start-up. I see it flourishing it
into many branches all over Bangladesh and also bringing out new products and services
constantly to keep on growing. Also, influence the people of Bangladesh in a healthy lifestyle.
After five years, it will have its own website, application, delivery service, zero waste vegan
grocery store, monthly subscription packages for customers and multiple restaurant outlets all
over Bangladesh.

Question 6

Explain how you can fund your business through bootstrap financing.

Answer:

Bootstrapping is the process of starting and running a business entirely from personal funds or
operational income. This type of funding helps the entrepreneur to have more leverage over his
or her company, but it can also put a burden on his or her finances. A method of constructing the
yield curve for such bonds is often referred to by the name. Bootstrap funding entails conserving
money in every way imaginable, such as frequent customer discounts, promotional discounts,
savings through bulk packaging, consignment financing, and use of discounts for volume and
obsolescence money. However, bootstrap financing takes three to six months to raise. Often
decreases a firm’s drive for sales and profits. Also, decrease the company’s flexibility, and may
cause disruption and problems in the venture leading to an increase in impulse to spend.

Question 7

Explain the different stages of your business development funding. How much money would you
fund, and from where would you source it for each stage? What would be your area of
expenditure for each stage?

Answer:
There are three different stages of your business development funding. These are early stage
financing, development financing and acquisition financing. Early stage financing refers to
financing for a new venture's first period of expansion as it transitions from launch to revenue.
Money is used to purchase inventory and to bridge the difference between cash flow and the
amount of money needed. Development financing is local governments' strategies to fund,
promote, and catalyze expansion by public and private investment in physical infrastructure,
redevelopment, and/or business and industry are referred to as development financing.
Acquisition financing is the money raised for the purpose of purchasing another company is
referred to as acquisition financing. Purchase finance enables users to fulfill their existing
acquisition goals by supplying instant funds that can be used to complete the deal. In early stage
financing, seed capital will be initial funded which is funds collected to start creating a venture
or innovative product concept. This money usually only covers the expenses of developing a
project. Startups may target venture capitalists for additional funding after obtaining seed
funding which will lead to start-up stage which is product development and initial marketing but
with no commercial sales yet, funding to actually get company operations started. Development
financing has second stage which is working capital for initial growth phase, but no clear
profitability or cash flow yet. Third stage is where major expansion for the company with rapid
sales growth, company is at breakeven or positive profit levels but is still private. Fourth stage is
bridge financing to prepare company for public offering. Acquisition financing has three stages.
Traditional acquisition is assuming ownership and control of another company. Leveraged
buyouts is management of a company acquires the company control by buying out the present
owners. Going private happens when some of the owners or managers of a company buying all
the outstanding stock, making the company privately held again. Investments range between
$10,000 to $500,000. Provides funding, especially in start-up (first-stage) financing. Initial
expenditure will be the company set up and marketing and to actually get the company started.
Later the expenditures will lead to day to day expenses and yearly expenditures when the
company is up and running.

Question 8
Illustrate the Build-measure-Learn feedback loop of your business for the first year. Refer to the
lean start-up book summary (The diagram of page 16).

Answer:

The Build-Measure-Learn mechanism is a feedback loop that is said to be one of the Lean
Startup methodology's main components. Its mission is to transform unknowns, expectations,
and risks into information or "sure things" that will ultimately lead organizations and businesses
forward. The Build-Measure-Learn feedback loop is a strategy for recognizing when you've
made a mistake until it's too late to transform regression into eventual success. Measure-Build-
Measure-Build-Measure-Measure- While it can seem simple, learning has proven to be a game-
changing strategy for companies that historically produced goods without soliciting feedback
from potential consumers. Companies would sometimes strike it rich, but many would end up
creating complex goods that no one desired. Build-Measure-Learn is an evolutionary, iterative
methodology that combines expectation with experience and certainty, improving on the "just do
it" strategy. Since the model is called "Build-Measure-Learn," if you follow the steps in that
order and start at the "Build" level, you will be disappointed. Instead, it's critical to begin with a
stage of preparation. The first step is to identify the hypothesis you want to test as well as the
knowledge you'll need to acquire. This is accomplished by formulating a hypothesis – a guess of
what will occur during the experiment. Next, determine what you'll need to calculate in order to
validate your theory, and how you'll go about collecting evidence. Data can be collected by
interviews, polls, website analytics, and advanced software systems, and the BADIR process can
assist you in structuring the research. The goal is to create a Minimum Viable Product (MVP).
(MVP) – Minimum Viable Product (MVP) – the smallest product that helps you to test your
theory. It may be a fully functional prototype, a simple commercial, or a landing page. It may be
a slideshow, a mock brochure, a sample datasets, a storyboard, or a video that demonstrates what
you have to sell. Whatever MVP you chose, it must demonstrate only enough core features to
pique the attention of early adopters – those who will most likely choose to purchase the product
as soon as it becomes available. Take a look at the findings you got in Step 2 and compare them
to the ones you got in Step 1. What happens in fact according to your hypothesis? Is there
enough traction in your concept to keep it going? Is there evidence that you'll be able to create a
long-term market around your product or service based on the data? By the time you get to this
point, you'll be able to make informed, data-driven business decisions about what to do next.
Then there are two options for moving forward: Never give up: Since your intuition was right,
you intend to continue with the same objectives. To continually develop and refine your idea,
you replay the feedback loop. Pivot: Even though the experiment disproved your hypothesis,
you've learned a lot about what doesn't work. You can restart the loop by resetting or correcting
your course, then using what you've learned to test new hypotheses and conduct different
experiments. During early cycles, Build-Measure-Learn often produces bad news. You may have
to pivot a few times before you can keep going. This is due to the fact that you're experimenting
early in the production process, before you have a full understanding of what consumers expect
and before the product has any value-adding functionality. Pivoting may be demoralizing, but
keep in mind that it's an essential part of the Build-Measure-Learn process. Any missed or
underwhelming MVP represents an opportunity to improve and develop, as well as a chance to
recommit to the feedback loop. The success of Build-Measure-Learn – and of building a
company in general – requires flexibility and the ability to persevere. This is where the "runway"
– the amount of funding you have available from investors – comes into play. If your runway is
limited, you can only have enough time to test a few ideas before running out of money. You'll
get a lot of time to pivot if the runway is longer.