Description
Detailed elucidation concerning business plan design for xinmade.com entrepreneurial master project.
Business Plan Design
For Xinmade.com
Entrepreneurial Master Project
Yuqi Yao
1. Executive Summary ................................................................................................................... 3
2. Service ....................................................................................................................................... 3
Values ........................................................................................................................................ 3
Value proposition ...................................................................................................................... 4
Future and benefit .................................................................................................................... 6
3. Market ........................................................................................................................................... 8
Market analysis ......................................................................................................................... 8
Industry analysis ...................................................................................................................... 11
Marketing strategy .................................................................................................................. 11
4. Business system & organization .................................................................................................. 13
Business system ...................................................................................................................... 13
Value configuration ................................................................................................................. 14
Alliances .................................................................................................................................. 16
Activities .................................................................................................................................. 16
5. Implementation plan ................................................................................................................... 19
Tasks ........................................................................................................................................ 19
Milestones ............................................................................................................................... 20
Gantt ....................................................................................................................................... 20
6. Risks ............................................................................................................................................. 21
Anticipated risks ...................................................................................................................... 21
Scenarios ................................................................................................................................. 21
SWOT ....................................................................................................................................... 22
7. Financial planning ....................................................................................................................... 23
Break even analysis ................................................................................................................. 23
Cash Flow analysis ................................................................................................................... 23
Capitalization ........................................................................................................................... 25
Startup expenses ..................................................................................................................... 26
8. Legal Issues .................................................................................................................................. 27
Appendix ......................................................................................................................................... 29
Reference ........................................................................................................................................ 33
1. Executive Summary
Xinmade.Com is a platform which based on the crowd sourcing and focused on the
product development system. The aim is to help the individual or personal user to
transfer the creative ideas to commercial goods, experiencing the creativity.
With many people of different roles of investor, customers and idea owner, a project
initiator publishes ideas on Xinmade.com. Then the good idea will be developed to a
new project after evaluation. Redesign and research will start along with the capital
support from investors during the develop process. The aim of online Shop on
xinemade.com is to finish the presales process after the product gets the minimum
order.
Students and young women will be our major customers thus most of promotion
should be focus on them. Our products must be full of passion, fashion and
outstanding elements. Also these points should be highlighted in our promotions in
order to attract our target customers who have particular lifestyle, personality and
other values.
2. Service
Values
Problems and needs & pain Statement
No matter you are a designer, engineer, student, office worker or house wife, you are
the expert of life and you know what our deep needs are. There is a big potential for
individuals to come out ideas to solve the problems they suffer in the common life.
These ideas from the crowds about Problem solving are human wisdom. If the ideas
are transferred to the real product and service to a group of customers, that would
be more valuable.
In fact, the customers always have the experience to come out smart ideas related to
product innovation share with their friends around, who may also believe the ideas
are great. But only few ideas will be attempted and very few of them were
successfully developed to real product. On contrast most ideas are only stopped in
their mind and given up finally.
Why the reality is happened like that? The reasons for individuals are:
1. Don't know how to develop their idea to product.
2. Lack technical to solve the detail problems.
3. There is no enough time continually working on the ideas.
4. Don't know how to market the idea and product.
5. Don’t know how to manage the project.
6. Lack the relevant resource, such as factory.
7. Lack the seed capital.
8. …
It’s hard for Individuals to own the all elements at the same time. If someone want to
continue develop their idea, it will take the individual several years and millions Kr.
Even you have own all the elements, it is not equal to the final success, because the
market is always changing. Most motivation for innovation is just to experience the
creativity process and enjoy achievement feeling. So it doesn’t make sense to take
that huge risk and sacrifice the normal life.
Value proposition
What’s Xinmade?
Xinmade.com is a platform to help the individual to transform their ideas to real
product until successful sales on market. All the benefit will be share with all the
participators.
What can we apply to our customers?
Xinmade.com can provide our customers what they need to become entrepreneurs.
We can be personal assistant for our customers in business or just give them a
platform, which is full of necessary resources, to run their own business. Regards to
the crowd sourcing concept, communities and co-creation can be raised on our
platform.
We also have the linked professional services. For example, we have marketing group
to make market analysis for our customers; design department can help our
customers to enhance their idea; our cooperation with law office can provide a safe
environment for customers’ ideas.
Furthermore, investors can be attracted into our website. With the help of us, idea
owners can keep in touch with the people who can provide funds to them, which is a
particularly important part of starting a business.
How does it work?
First Xinmade will have a website serviced the individual customers. Anyone who sign
up will have the right to submit personal idea. On the platform, the whole process
from submit idea to get the profit is designed as eight stages, see the flow map
below:
1. The idea initiators can publishe ideas on Xinmade.com. Following a simple guide,
they just need to answer question related their ideas. The initiator also can add
sketches, pictures, etc. to convince the peers and the experts in the subsequent stage
to understand well.
2. The peer-evaluation is that other participators give comments to the initiator
and improve the ideas. Good ideas are delivering to next stage; otherwise the idea
initiator can improve that idea and submit again.
3. The ideas selected from the last stage will be assessed by all relevant experts on
Xinmade.com. That assures each proposal is feasible to produce with acceptable cost.
Either the experts will give assessment back to the initiator. The initiator can
continue improve it and submit again.
4. Through the strict assessment, good ideas were set up as a new project. The
project manager will start to find the right designer and engineer to work on it until
the concept ready to produce. Meanwhile the seed invest will raised from the crowd
on Xinmade and Xinmade itself.
5. The concepts will be pre-sold by showing the rendering pictures or prototype
photographs. Once the presales order meets the minimum produce request, the
product will be produced.
6. The products are manufactured by the factories in China. The project
management team will manage the whole process.
7. Deliver the product to the buyers, and enlarge the sales volume through online
sales and other distribution channels.
8. Then revenue will be shared to the all the participants as the certain rate. Idea
owner and the investor will earn biggest part profit from the presales phase.
Xinmade also share the profit from the revenue.
Though the eight stages the ideas are successes on the market, Xinmade have the
responsible to continue selling the product on the market. If the idea owner like,
they can buy the share from Xinmade to setup a new company, all the resource still
available for the future.
Future and benefit
Feature
The services for the idea initiators during all the process are totally free. They don’t
need to invest any money, which meanwhile there will be no risk at all. The whole
Process saves individual personal time and energy, additional with our professional
help, idea holders will get more opportunity to make the idea become a success
project. After all the steps above, the idea initiators own the intellectual property
rights 100%, they earn the profit continually by share the intellectual property rights
in the future sales. They also have the chance to grow up to a real entrepreneur, own
and run the project independently.
Xinmade supply:
1. Opportunity to get the crowd’s development
2. Expert consulting help
3. Project management service
4. Paten protects
5. Seed invest and funding
6. Designer and Engineer support
7. Good manufactory company product the products
8. On line shop and stable distribution channel to sale the products
Benefit
Xinmade will take the principle from people to people as a mission to share the profit.
Until the presales is finished, Initiator and crowd investor will get 10% and 40% profit
and when it comes to the Automatically commercial sales process, they both will
have 5 % and 5% continue revenue.
Xinmade Collects and generates the innovation, which will rise the efficiency of the
human production. Many entrepreneurs will grow up through the practice and they
will help more people. That absolutely is the most valuable wealthy for the whole
social. It is hard to measure by money.
Xinmade is new product development system. It will take the sustainable product
development ideology as one important vision, to effect the crowd involved by
Xinmade’s thinking in innovate and design and production and consumption in a
sustainable way.
The companies can the partner with Xinmade, take the fresh innovation to
commodity or share the date base to solve the company problem. Xinmade provide
them a higher return way to solve some R&D problem with a very low cost.
Technology and market environment
Human daily life is changing because the internet is rapidly reconfiguring the social
system. It’s flexible for the individual to communicate and interact on the public fair
through Web 2.0. Cooperation and sharing can happen anywhere and anytime. For
example meeting, sharing documents, co-working. Millions individuals can join one
process at a short period, such as give comments or express their opinions directly.
Digital technical and various software cause the inexpert can do some professional
job, at least the tools give more freedom or help a lot for the people do some
common job.
E-business has developed maturity. For instance B2C and C2C, also O2O are
becoming more important of the business system in today and near future.
Crowd sourcing describes a new web-based business model that harnesses the
creative solutions of a distributed network of individuals through what amounts to
an open call for proposals. The traditional problem solving taken by few talent
experts or designers inside the area is instituted by the distributed, plural, and
collaborative. The crowds will be the major of generation problem solving and
innovation.
3. Market
Market analysis
Volumes
As a new business model, there is not enough date to calculate the sales volumes
directly for Xinmade.com. Based on the business model and former research, we can
make an assumption below:
The major part of the user will be the industrial design student in China. Until 2006,
there are around 250 universities program in China having industry design bachelor
(the number is still growing, and master is not included yet). The average amount
student in this program is 2 classes, each class include 30 students. That means from
2005, there are more than 15,000 students graduated each year.
250*2*30=15000
All the students from the graduate year to the next 4 years are customers of the
Xinmade. Through the relationship with university and SNS spread online, Xinmade
can cover only 10% of the group.
Just make an assumption that each member summit one idea each year, the number
of the idea collect will arrive at 15000*(1+4)*10%*1=7500
Finally only 1% of the ideas are practical and will be successfully developed which
equal to 75 new products can be developed. If the generally the price is 100KR, sales
volume of each new product is 10,000-100,000 unite, the whole revenue would be
SEK 75 Million- SEK750 Million.
As the average revenue is 15%, Xinmade will earn 9.75 M -97.5M each year.
The result is only depend on the students graduated from Industrial Design, there
must be some students from other programs have innovation requirement, such as
the engineers and entrepreneurship. Even housewife, unemployed, or retired people
can be the idea suppliers. As Xinmade will be spread in China, the potential sales
volume will be 2-3 times at least.
Survey
In order to define our target customers’ need in a specific way, we have done a
market survey in the Chuangyisheji community (http://www.duoyidu.com/). After
over 1000 designers answer our questionnaire, here we come out the resulte.
Group 1 (10%):
People in this group will be spectators at just beginning of Xinmade, because they
want to make sure that if the web site is really helpful and safety for their ideas, also
if the services is really free. If it is, they will be obviously come to Xinmade to be the
customers.
Group 2 (2%):
People in this group choose not to come to Xinmade, because they think we can get
enough found by personal way. Some people in this group are senior designers in big
company, in their opinion, just hand the ideas to their companies and let they to
decide is much more easier and save money.
Group 3 (88%):
People in this group all feel that Xinmade is awesome, because it just provides them
with what they want. After the website’s building up, they will come to sign up
without any hesitation. Nearly all the people in this group are young students and
green hands in office, which will be our target customers.
To get more information about the idea publish, people in group 3 helped us for a
further research.
Section 1 (78%):
group 1
group 2
section 1
section 2
group 3
Market Survey
People in this section would like to publish their ideas in Xinmade, they though that
raise up a discussion will be cool and bring more interesting things to the idea and
what’s more, they can be given a great chance to enhance.
Section 2 (22%)
People in this section would like to choose keep the ideas to their own. They just
want to connect investors on Xinmade by themselves. They thought that personal
services are more preferred than public services to them, because them can cover up
all the steps by themselves to build up an own project except funding.
For the question “Will you willing to buy the products you like on the Xinmade?” the
answer is 100% yes. That shows us a great customer’s demand.
Segments
From All these above, we can obviously figure out that young student green hands in
office will be our target customers. For some customers, get enough investment is
the first goal.
We should consider the customer need and the capability first. The students in
universities and the graduates within 4 years, whose age is around 22-30, have the
innovation passion, familiar to the internet environment, thus they are the main part
of the Social community member. They have stable living support, fixed space time of
1-2 hour per day. Moreover, they want to experience new things with the ambition of
success. The reality is that the 1-2 hours a day is nothing compare to the time they
need to run a project, also the certain salary is far from the enough funding,
furthermore they know something for sure but it still need a long term to accumulate
the knowledge for a whole picture of enterprising a project or a company. Even for
the people who learnt entrepreneurship, it’s still a hard work without enough time to
practice. So they are our core participator and the real customers because they do
need us.
Considering about the category Regions, Cities, the conclusion comes: the creative
product was more popular in big city of China since the sales volume is increasing
rapidly particularly in Shanghai, Beijing, Shenzhen and the capital cities of each
provinces in China. It show us a very promising and easy-entry market. So overview
the market will focus on the biggest city around the east seaside of China Shanghai.
Another reason is the transportation is cheap and convenient.
From the initial reason that rural people wanted to raise the income of their
community, they produce a line of handmade artworks with a traditional technique.
As time goes by, hand-making products become more and more popular, because
their special natural style attracts the people in big cities, provide them with fresh
feelings and relaxation.
Industry analysis
Competitor analysis
Crowd sourcing is a new buss model. Using crowd sourcing to help the individual to
develop their product innovation is a kind of innovation without many competitors.
In China, Xinmade will be the first one, no competitor yet. But this obviously is a
trend on the internet, more and more individuals or companies will aware that and
take advantage of crowd sourcing to solve more problem or get more success.
The first company which used crowd souring is Quirky, set up in 2009 NYC. Each
product with innovation idea need to be submitted by paying $10, after one week
peer voting, Quirky team will pick the best one to develop into a real product. The
idea owner will earn 10% of the profit. Other participators can share the revenue by
their influence. Current quriky have 180000 users, each year can generate 60 new
kinds of products and the income is above 7 Million SEK. Because Quirky focus on
USA, with the different market and language, the competition with Xinmade is not
such big in fact.
So far there is no direct competitor in China yet, but several crowd funding websites
are raised in China in the past few years. Such as Diannou, launched in July 2011,
focuses on individual dream, include design, film, art, Public service activities.
Another competitor is Called JUE, just launched in April of 2012, only focuses on
product which are more closed “nice”, less “function”. Both of the websites are using
crowd sourcing for foundering to help the individual idea initiators. The business
models they built do make sense for the individual, but it’s not enough for more the
individual successful transfer the idea to product on the market.
Entry barriers
There are less entry barriers for Xinmade.com in China, especially when the main
access is on the internet. The founders are Chinese and very familiar with the local
market. At the same time, innovation economy and it industries is really active in
China— developing with a high speed and a better environment. Also the Central
Government and local government encourage the product design and product
innovation.
Marketing strategy
Services & Product
Firstly, Xinmade.com can provide our customers what they need to become
entrepreneurs. We can be personal assistant for our customers in business or just
give them a platform, which is full of necessary resources, to run their own business.
Regards to the crowd sourcing concept, communities and co-creation can be raised
on our platform.
In addition, Xinmade.com will focus on the innovation product. The product should
be new innovated or unique functional or for special customers (niche Market).
At first years, Xinmade.com will focus on the simple product which is related to the
personal consumption good or electronic product in your home. 5year later develop
the product with some software improvement. That will have somehow complex.
Price
For the entrepreneurs-cultured services, it will be totally free. If the the innovation is
successfully transfer to a product, the idea initiator can earn 30% of profit from the
presales and 10% of profit from the commercial sales. However, when an idea entre
the practical process, Xinmade.com have to take the management cost, such as
platform management, expert assessment, project management, product design,
product engineering and product test. Xinmade.com will take the 20% of the revenue
from the creative products presales. after that , depended on commercial sales
general profit.
In other word, our service will have no price, because we just share the profit from a
successful project.
For the creative products, the presales price is only an experiment process, which is
only cover all the cost, so it’s minimum price. Because this is the first minimum
product, the price still a little bit higher, but if the product continues sales, the cost
and price will be lower, so the difference price will be return to the first group
customer.
Place
Local in Sweden: Sweden government encourages the innovation, so it’s benefit for
stat the innovation business here. At beginning the entrepreneur student and the
designer are the major idea spring.
Focus on China: China is a huge market; especially the E-business is very popular in
China. The consumer in China is a huge potential for Xinmade.com.
Promotion
1. Inside of Xinmade.com :
Improve the system to attract the customer publish idea and buy the product.
Define more game rule make the participator have more fun on Xinmade.com
2. Outside of Xinmade.com:
Use the SNS to publish some advertisement. Spread by friend to friend.
Work with some NGO who focus on the innovation development.
4. Business system & organization
Business system
The service flow is clear to reflect Xinmade business system, stage 1 and stage 2 is
happened on Xinmade, but the main activity operated by the individual users.
Xinmade can only take care the maintaining of the website. From stage 3 until stage 5,
this is the core value of Xinmade supplied to the customer, so this will be full control
led by the Xinmade itself. that not means all the experts are come from Xinmade,
part of the them is belong to Xinmade team, more than half of the human resource
can be employed by part time or open source when the project needed, all the
activity have to be full control by Xinmade team.
The first step will happen on our website, the idea holders should have some
agreements with us, such as the protection way for ideas and the right for other
people to comment ideas.
Step 2&3 are very similar. The evaluation and vote will be online, but the final
decision will be made by Xinmade.
Step 4 should be focus on the design group of Xinmade. From this step, investors will
join the project.
Step 5 also will be controlled by Xinmade, we will have a professional shopping
trolley system on our website.
Stage 6 manufacture and distribution will be finished by our partners. the reason
here is that these tow process are not the key competence and major service, it's
not xinmmade good at it. So find some good partner they will help Xinmade strong
the service chain, for both side is win-win cooperation.
The online shop will run on Xinmade website, because Xinmade have the resource
and customer ourselves, through the selling product also can advertise Xinmade in
the customers.
Under the flow map as a company the finance and market will cover by ourselives.
Value configuration
Depended on what kind of project we are accessing in, the cooperation may happen
with some concept developing companies. During the cooperation period, we insist
that:
• Factories must be our contract supplier.
• We pay for transportation form the other express company.
• The marketing steps have to be control by Xinmade.com
• The service after sales will owned by Xinmade.com
As a crowd sourcing based, all the roles relevant the business are directly
stakeholders and share the final profit. Stakeholders will not play only one role in the
whole project, so all the factors in Xinmade’s project build up a value constellation
but not a single value chain. Details are showed below:
Xinmade.com
This is the date base and management to the innovation projects.
Idea initiator
Any people have the good idea can be a idea initiator, who own the idea, will earn
the profit if the idea is develop to commercial product successfully.
Participator
The peer who can give any comments to the new idea during the developing process
is the participator. It’s possible for some of them to be the potential customer later.
The expert on Xinmade.com
They are the person to monitor the projects and give some profession suggestions.
Outsourcing expert
These people will give some necessary profession help. They also will share the finial
profit.
Investor
Who is the people to give the capital support at the beginning, they will share the
finial profit.
Factory
They are the partners with Xinmade.com based on the projects. They will share the
finial profit.
Distribution
This company is the channel to sales more products to the customers; they will share
the finial profit.
Transportation
This company is responsible to transfer the product to the finial customer; they will
share the finial profit.
Alliances
Our website has business relationships with other companies -- as a purchaser, as a
supplier, or as an equal business partner. These relationships vary in their quality and
intensity, from a loose, more or less coincidental relationship to a strategic alliance
that results in intensive cooperation and mutual dependency.
Design Community
Chuangyisheji community (http://www.duoyidu.com/), is our first cooperation
partner. The idea of Xinmade has been come up because of the discussion with the
design on this community. Since they know a lot about Xinmade, our first customers
will from this community. They can also help us to do more promotion.
Universities
Our company should have relationships with universities because the graduates will
provide us a steady support in R&D section. Also students are more likely to try
something new, which makes them probably become our customers and idea
suppliers.
Factories
Factories can be treated as our resources more than alliances. Close partnerships are
characterized by a degree of tight interdependence between the partners, so the
factories are typical for highly specialized products and services, or for large volumes.
In such situations, it is usually difficult for both of us to change partners at short
notice, to obtain large quantities of specialized components quickly from another
supplier, or to find a market for such components. The advantage is the security of a
firm relationship and the possibility of cutting down the cost.
Law office
Cooperation with law office is to help our customer keep their right as an idea’s
original owner. In additional, it will be more convenience when they have the need to
apply for patent or other legal means.
Activities
Investors attracting
Adequate funding is the first necessary factor that a new-staring up company urgent
needed. Consequently, most of our customers on our website are looking for ideal
investors. Thus investors attracting we be our first target and it will bring us more
customers indeed.
Project management
We can also provide our customers with professional management services. For
example, we have marketing group to make market analysis for our customers;
design department can help our customers to enhance their idea; our cooperation
with law office can provide a safe environment for customers’ ideas.
Personnel
In general, our management team can be divided into two major parts. One is the
website-work team while the other is the project team.
To make it more detailed, team structures can be showed blow:
(Start-up member are count out in the parenthesis.)
Website-work Team—
Network technical group (2): This group’s work is to build up the complete website
and keep its running.
Assistant group (5): The group which help the users to upload their idea and rise up
the vote. They can also teach the customers how to use the website system.
Online promotion group (3): E-business is different from the general business.
Promotion online is exactly a different part. Online promotion pays more attention
on how extensive the promotion is. This group helps more people know about the
new idea as well as our website.
Project Team—
Marketing group (5): This group should in charge of idea evaluation and marketing
search. In order to make right decision, they should keep clear about what the idea is
and what the market needs is.
Design group (5): Redesign the practical ideas is the main work of this group. To
achieve the goal they should keep work with the marketing group, because they
need to know what is the market really want.
Accounting group (2): When investors join into the project, the accounting group
should make sure how much invest we need and forecast how much we can get.
They also need to make agreement with the investors about the profits and risks
sharing.
Sales group (2): sales on line means the products should be deliver by the logistics
corporation. This group should make sure the customer’s order and pack off the
goods.
Organization
Xinmade will be one generating innovation company. Every employee here should be
creative and enjoy innovation. Sharing is necessary for the whole team. Your Sharing
and your effort directly related your payback.
Xinmade will build a competitive team by employ the expert in his industry. That
includes marketing people, project manager, and website designer and Engineer.
Other employee don’t belong the core competition, at the first year, Xinmade will
cooperate with partners or employ the part time employees. For example the lawyer
is needed for the contract and apply the intelligence protect right.
In order to make business system run smoothly, Xinmade have to abstract the talent
member to join the team, so Xinmade team will grow fast in the next 5 years. See the
feature below. In fact the platform will run as full business model form January of
2014. Before that the some work will be done by the founder team to down the cost.
The company will start up from Shanghai, but outside the center. The fee of rent
office will be lower, but all the resource is till convenient for Xinmade.
Legal requirements
There are several factors that an invention has to comply with in order to be
patentable. “These are that invention” (i) consists of subject matter that is
patentable. (ii) is new. (iii) involves an inventive step. (iv) complies with the internal
requirements of patentability” ( Bently & Sherman: 391).
Sometimes it is possible to protect designs by copyright law. This applies directly and
indirectly. Directly, design articles can be protected as artistic works, such as
engravings, sculptures, or works of ‘artistic craftsmanship’ (Bently & Sherman).
Although we have knowledge above, we still need the help form lawyer who
specialist in this area, furthermore to build a long-term relationship with the law
office to keep the security of the ideas on our website.
Inventory
Products’ sale in Xinmade depends on presale as well as respective project. So we
don't have an inventory. Cost of warehouse can be cut down in our business process.
Sales
Shopping trolley will be install in our website cause sales on line is the directly relate
to our profit. Any problem related to sale such as promotion, pricing practice and
after-sale service can be salve on our website.
All the things mentioned above can shoe a complete and new business model of
Xinmade. The website includes almost necessary functions for the user to share,
communicate, and co-work on the projects. Experienced experts (designer, engineers,
project manager act.) and the crowd register members are the key resources.
Xinmade get resource from the partners, such as Manufactories, investor, retailer,
lower office and universities, at the same time supply more opportunity with them.
5. Implementation plan
Tasks
The platform is the important service tools, so it must be built up and tested as soon
as possible. The interface of the website and user experience is very important which
need the professional web designers develop and maintain the website.
The first customers for Xinmade are really important, because we need them to
begin our first project, or we can’t start our platform’s function. Thus we have made
an cooperation with the Chuangyisheji community (http://www.duoyidu.com/).
Since our market survey has been done on this community, designers have already
known a lot about Xinmade and gotten really to register in our website.
We also need to find and fix the partner resource before the first project start:
1. Get the lawyer cooperation to protect the idea when we run the platform.
2. Manufactories and prototype factory should be connecting at the same time
before there are good idea happen.
3. Find the potential retailer like to sell the innovation product, get the agreement
on the future cooperation.
4. Find some good idea at least using one of them to test it, before form launch the
website.
Meet university in China to market Xinmade before it is launched. Attract more users
to farm on the platform. Through SNS spread Xinmade in China continually. This
group of user is Xinmade’s core resource, so the market will continually need.
Transfer the best idea collected on Xinmade to real product and to sell them on the
market. Test the whole system.
Get the VC invest for the expand Xinmade and run the full business model. At same
time improve the system and try to lead the system run in more automatically.
Milestones
1. Launch the website on October of 2012.
2. Start the first project on December of 2012
3. Achieve the 10,000 register on the Xinmade until April of 2013
4. Get the retailer start to sell the innovation product from June of 2013
5. Rise up the second round fund October of 2013
Gantt
6. Risks
Anticipated risks
Any enterprise with revenue must have risk. There are several factors that could
affect Xinmade get success. The most important risks are summarized here, at same
time Xinmade still prepare some countermeasure to minimize the risk:
1. There are some good ideas happen on the platform but the fund is not enough
for the first investing. This a special risk for Xinmade, because Xinmade take crowd
founding as one resource. In this case we can do some advertisement and
recommendation on Xinmade to guide the micro investment cumulate on few
project.
2. The product cannot be sold above the anticipation, because the product on
Xinmade is just innovated and fresh launched, so it is likely selling not well. But
xinmdae try to use presale instead producing fist. Also we can find more retailer as
partner to sales.
3. The product have quality problem after sales. Any project does has its risk. So
xinmdae will have a very strict check stander and system to grantee the quality and
security.
4. In the near future many products will sold on the platform at the same time, the
cash flow face risk. Xinmade will strictly make a feasible financial plan to control the
investments, at same time to prepare rise new fund before necessary.
Scenarios
As the assumption did in the previous the chapters, there would be a bright future
for Xinmade.com. If the amount of project on Xinmade can be finished as the plan,
we will have revenue from the end of 2013. After that the system will works more
automatically, that means no need increase the fix cost, the income will grow fast as
more users involved. Commercial benefit will form 9M -270M SEK. Until end of 2016
the VC can get 5-10 time revenue as investment.
If the some risk happen as we list above, the worst scenario is that we don’t realize
the income as our plan. But Xinmade will strictly control the investments and cost on
the projects, before we get the fixed order we don’t invest for produce product,
which means we can will have the cash in our hand, even some project is not that
good as prospect, we will cancel the cost on the project and reduce half of the fixed
cost. Only keep the website run smoothly, at same time the manage team will adjust
the business strategy and continue grow. The revenue will come half year or one year
later. But the market still good, so the revenue will not reduce too much.
SWOT
Strength
• Close to customers
• Close to factories (distribution channels)
• Financial security (Pre-Sale, No own capital risks), various resources. Product
development easy and fast.
Weakness
• Experience economic grow up. More and more people want to work for
themselves, have more choices. A growing Patent Portfolio.
• Growing Databases (User Data and resources)
Opportunity
• Manage the suppliers
• Manage different project
• Each product maybe for different customers
Threat
• Cheap products from big brands
• More new designer brands grow up
7. Financial planning
Break even analysis
For the creative products, the average price is 100 SEK and the average sales volume
per month is 20,000 unites.
Base the market assumption, after 6 month Xinmade will break even, the calculation
shows that in October of 2013, Xinmade.com can start earn money. After July of
2014 the revenue will rise rapidly.
Cash Flow analysis
If Xinmade.com get have the invest capital 3Million SEK, the cash flow as the below
graph in the first 2years.
Cost & Revenue
For each project, we much calculate out the basic cost and revenue first. Two
different stages in one project make the revenues totally distinguish with each other.
Basic Cost
R&D: 50,000 SEK
Manufacturing for presale: 100 SEK1,000100,000 SEK
Manufacturing for commercial sales: 40 SEK100,0004,000,000 SEK
R&D for each project needs at least one professional designer and other works by
the website assistance in order gather the comments from customers. Average cost is
50,000 SEK.
For the manufacturing, each project need 100 SEK, while for the most of factories in
China, the minimum product number for a project is 1,000. So the cost is 100,000
SEK. Manufacturing for commercial sales will cut down the single cost for the product
because of the larger number. The total cost will be 4,000,000.
Revenue
Presale: (50,000 + 100,000)50%50%75,000 SEK
Commercial sales: 4,000,00075%3,000,000 SEK
The rate of return will be sate at 50%, because the sales price will be change depend
on the cost. Then, the first profit have to share with the other stakeholders, Xinmade
can get only 50% of it. So the real income is 75,000 SEK.
When come to the stage of Commercial sale, rate of return will be 100%. Refer to the
share contract Xinmade can get 75% of the profit, which is 3,000,000 SEK.
Start-up Cost
Register Company: 100,000 SEK
Build the Website: 200,000 SEK
Start-up cost only count in 2012.
Fixed Cost (in 2012)
Web maintain: 100,000 SEK
Rent office and office consumption: 150,000 SEK
Salary: 552,000 SEK
Branding advertisement: 500,000 SEK
This fixed cost will be changed each year because of the number of employee
changed.
In the year 2012, we won have any income because even though the company has
already registered, we can’t start working on the project right away. At the same time
we won’t have any project cost. The start-up cost is our total cost.
However, in year 2013, the start-up process would be end and then come into the
practical stage—begin to work on projects. We plan to work on 20 projects in the
first year, only 4 of them could be successfully go to the commercial sale stage. The
cost should account in the presale cost for 20 project and 4 one for commercial
project, so as the revenue.
As time goes by, employee of Xinmade should be more, and the number of project
we work on will be increase. But basic cost and revenue is maintained. So here
comes out the cash flow table.
We start the company form October 2012, with start-up cost of 300,000. But projects,
which count in 37,500 SEK for each presale and 3,000,000 SEK for each commercial
sale, will be started in 2013.
Capitalization
If the invest is not get the 5M, or the company develop faster than the plan, more
invest have to be find. Then the best way is to loan from bank.
Startup expenses
Start-up register company
Salary
Project Need
Website developer
team
Consultancies costs
Brand
development
Brand design
Micro blog
Google adv
Website
advertisement
Activity advertisement
Consumption
internet and server
cost
Rent office
Consumption of office
The startup expenses is the composed by four part.
1. First, register a company in Sweden, and buy a domain. That is around 10000SEK.
2. Second, the Salary is the main cost in the business plan. That includes three type
cost. Project need salary is used for employ the necessary technique people for
develop the projects, which is around 576,000 SEK and 2,232,000 SEK in 2012.
Website develop team is to employ the web-designer to build the platform, also
include the database. That is cost 1 Million SEK. Consultancy help is necessary,
including Marketing manager and Patent lawyer and Contract lawyer. That needs
750,000SEK per year.
3. Third, the Brand development is necessary invest, but considering this is a long
period task, so this part budget is only 200,000SEK at the beginning.
4. The last part is the stable office consumption around 150,000 SEK first year.
Compared the break point that will be 22 months, the startup invest should be up
5Million SEK to keep the business to develop smoothly.
8. Legal Issues
A patent is protected by the invention of legal norms, which is an invention patent
examination and approval authority of the country
(http://www.SIPO.se/In-English/Patents/). After passing the examination according
to the law, the patent applicant’s exclusive invention right within the prescribed time
will be granted. The exclusive invention right means that no one else is allowed to
use the invention by manufacturing, selling or importing otherwise he or she have
the patent owner's permission (Christine MacLeod, 2002).
In China, State Intellectual Property Office of P.R.C (SIPO) is in charge of patents,
trademarks and industrial designs, at the same time grants patents. Patent applicants
should turn to us to file a national Chinese patent application. SIPO is also an
international authority, which means applicants can use SIPO if they want to pursue a
patent in other countries. After the idea holders get legal patent in China, they can
apply patent abroad through SIPO, legal and financial help will be given for the
application since China encourage people to apply patents in foreign counties.
When it comes to original works, they can be protected by a set of exclusive right
which is called copyright. Internet Copyright law –the Berne Convention was
published in 1886 which aims at providing protection for creative original work. It
designed to maintain the relationship between the right of copyright owners and the
relevant individuals or enterprises who want to use, public or make profits by
copying them and the whole society that are able to obtain novel and useful ideas or
information. Generally authors dedicated their lives for a piece of fantastic work,
they deserve effective legal laws to safeguard their rights and benefits and avoid
copyright being infringed. However, copyright law is not simply recognized as a tool
for protecting those ideas, it is a strong and firm armor to protect the expression or
product of the ideas being used by others.
Contrast with other two laws copyright and patent of intellectual property laws
which provide protection to tangible objects work and invention for individuals and
enterprises; trademark law is centering on establishing legal right to maintain
benefits for intangible sign which is used for claiming an identity within the
commercialized marketplace. It is not only to claim the ownership of one particular
symbol or indicator, the forms of trademark differ from varieties to varieties, for
instance it can cover from word to picture, from sound to any combination of them
to distinguish the differences among products and services by customers. A good
reputation trademark is a pivotal key to a company.
Defined in the Community Designs Regulation, targeted at protecting the outward
appearance of a product or a part of a product which results from the lines, contours,
colors, shape, texture, materials and its ornamentation (Bardehle,2010) There are
two typical features required: one is novel and another is individual character under
Article 5 and Article 6. The design law would only give protection to those no
identical designs have existed before in the public; moreover “informed users”
cannot find some similar designs easily gotten accessed to. Additionally, it merely
protects the in feature of appearance of a product rather than technical functions in
the product.
Appendix
Questionnaire
Name:
Education Level:
Gender:
Specialized field:
Work Experience: Age:
1. Will you register on Xinmade.com?
• Yes
• No
• Other _______________(Specific) No need to go on.
2. Will you publish your ideas on Xinmade.com?
• Yes
• No _______________(State reasons)
3. Are you willing to buy the products you like on the Xinmade.com?
• Yes
• No _______________(State reasons)
Tables
Share
Revenue
Management Cost-Salary
Total Cost
Cash Flow
Reference
1.http://www.internetworldstats.com/stats.htm
2.http://www.SIPO.se/In-English/Patents/Applying-for-a-patent/Swedish-patent-applic
ation/
3. Wikipedia;http://en.wikipedia.org/wiki/Copyright
4. Porter, M. E. (1996). What is strategy? Harvard Business Review, November–
December, 61-78.The value chain
5. Daren C. Brabham. (2009). "Crowdsourcing the Public Participation Process for
Planning Projects", Planning Theory, 8(3), pp. 242-262.
6. Barringer, B, R.,Ireland, R, D. 2010. Entrepreneurship: Successfully Launching
New Ventures. Global ed. 3rd ed. New Jersey: Pearson Education
7. Discounted cash flow:http://en.wikipedia.org/wiki/Discounted_cash_flow
8. Debt/asset ratio:http://en.wikipedia.org/wiki/Debt_to_assets_ratio
9. Kubr, T., Marchesi, H., Kienhuls, H. Starting Up: Achieving Success with
Professional Business Planning. Amsterdam: McKinsey & Company, Inc.
10. Nilsson, A. 2011. Business Plan_modules. [PowerPoint slide]Blekinge Institute of
Technology
11.http://www.sipo.gov.cn/
Business Plan Design
For Xinmade.com
Entrepreneurial Master Project
Yuqi Yao
This reflection cover presents a company named Xinmade.com, which is a platform
which based on the crowd sourcing and focused on the product development system.
The aim is to help the individual or personal user to transfer the creative ideas to
commercial goods, experiencing the creativity.
This paper describes the process at six headlines: Business Idea, Business concept,
Business plan first version, Business plan middle version and Conclusion.
Business Idea
Create an idea or product that you believe can be successful. This is easier said than
done. For truly, I feel that coming up with a viable product or idea is sometimes
harder than constructing a business plan, because the idea is the core and the base
to for you to grow up an business plan. Having a good business plan is important for
every entrepreneur, especially for the green hand like me.
But, there are many different ways to accomplish this task. Play a game, read a book,
paint a picture, play a sport, or just cook in the kitchen. I never want to force myself
to do something and then focus that energy into creating an idea/concept/product.
Just let them flow is the best way.
For the idea about Xinmade, my project partner and I expose ourselves to many
different environments that are outside of our comfortable zone. Get more engaged
with hobbies. We believe expertise will help get closer to a viable business idea and
actually it is come true.
We both like small thing with designs feelings and creative ideas. So when we search
on the internet, we will always go to a website which gathering many young
designers on it. We like to talk with the people who always have interesting ideas and
try to implement them.
The first time I thought that maybe we can raise up a business in this field was
happened when I saw many similar comments in the community. Under the
designer’s explanation and pictures of their ideas, there are always many people ask
“Where can I buy this?”, “How much it will be?” and “When can you make this idea
come true?” Because of all these, we know that creative products have their markets,
but without steady suppliers, the business chain can’t come out.
We both put our eye on this point that if there is someone can link the factory and
the designers together, many popular goods will come out. Taking this assumption,
we have a talk with designers about the idea. It found out that many designers like to
focus on their ideas exclusively, most of spare time in their lives are talking about
designs and ideas with friends, who most of the time are designers too. They may
have the dream to make their designs come to a real project but they don’t know the
right way to do it. On the one hand, if connect with big companies, it’s hard for them
to be pay attention; on the other hand, small companies have a very big limitation in
funding, and the chances are particular less.
After knowing this, we try to make connect with some free investors, the result we
get from them make us a little surprise because the investors said they can’t find
appropriate idea holders easily. It is true that there are many new and great ideas
come out every day, but the idea stealer’s action seems quicker and quick. The
investors have to spend more time to distinguish and make decisions – they never
want to take any illegal projects. In addition, in order to make their project safe,
investors will try to buy the idea from the beginning; however designers with
excellent talent will not sale their ideas out easily.
By thinking in two different ways, we got that it is the environment bring these
contradiction to the designers and investors because they don’t have enough chance
to get in touch with each other. And this situation also happens between the
designers and factories, customers and other suppliers. At this point, we are clearly
knew what we want to do – create a plant from which can connect all these people
with different roles together, let the information they want flow among them freely.
After these more and more projects will come out much more easily because
communication will help them to slave their own problems— they never worry about
money or originality, what they want are just the right people.
The idea of Xinmade.com has been born in such environment with our hope that
each idea-holder could have chance to become an entrepreneur and make their
great ideas come true.
Business concept
After think about how we can make the world a better place with designers’
invention or business idea I felt that business should revolutionize the way we live life,
even if it's just a small way. For example, if we are interested in cooking, maybe we
have a problem with the way an oven can dry out a chicken when cooking. Now that
we have identified a problem, brainstorm and think of as many solutions as possible.
It does not matter how crazy the solution is, just think about them and write them
down.
For our idea about Xinmade, we just consider the company or organization itself.
Think about the nature of the company and how to make it a typical profitable
company with services and products. We have decided on geographic location and
type of operation, be it manufacturing, wholesale, retail or a service provider. Make
short-term (two years) and long-term (ten years) goals. We both know that Xinmade
will be a long-term planning, so we also discuss this idea with some close friends and
teachers to get help from them.
By think about how they fit within the community, as well as what local, regional or
national needs of customers, we developed the services and products that the
business will offer. Thinking about how to develop a selling position is difficult,
because we both lack of related experience. Fortunately, books and teachers help us
a lot, as well as find some useful tips in different SNSs. When come to this
point—Business SNS in China, it is not a story that I can tell easily, because the core
of Social Networking is the culture of the society, so the Business SNS market in
China is also representing the culture and reality of business society in China. China is
still a developing country, which means the business environment, law system, credit
system, trust system and even morality system are still under construction.
However, Business SNS is the very basic part of our business concept, since our
business is practicable or not is rely on it. We have been seen the business SNS giants
are all peeking Chinese business market, but none of them has succeed, or not even
started. With all of these Chinese market failure stories of Google, eBay, MSN, Yahoo,
MySpace, etc. we are really hesitating.
Though, as the only local business focused SNS startup in China, we still see the lights
of our future, we even feel the success of taobao.com, along with the benefits it
brings to the society, the contribution are delivering to the E-business industry.
As a super adviser for lots of startups, a social network hub for mobile industry, an
enthusiastic friend, a passionate entrepreneur, a telecom, wireless and Internet
veteran, a SNS addict, we really see the power of relationship and believe in the
future of Business SNS in China.
Consider the current and future competition. List our situation with SWOT and
compare them to the competitions’ bring us some confidence. We set up our
business concept and begin the paper writing.
Business plan first version
The primary value of our business plan will be to create a written outline that
evaluates all aspects of the economic viability of our business venture including a
description and analysis of the business prospects. Although it may not ensure our
success, we believe that preparing and maintaining a business plan is important for
any business regardless of its size or nature. We maintain a correct assessment of the
changing economics of the business in order to make our plan can provide a useful
roadmap as well as a financing tool and perhaps the most important factor in
achieving that result and turning our plan into a management tool is regularly
reviewing the plan.
Making a plan that gets done let us feel a drawer in the first step, we can carry out
anything we need on the paper. It might help us with the investment, but the real
value in plans is the process of reviewing the plan and using it to generate better
management, constant course correction. So we look here at what was our sales
forecast for this platform. And now let's look at what the actual sales were and we'll
compare plan versus actual with the variance or plan versus actual
We have done a lot of survey in different communities in China, because we suppose
to build this company in our home country. But get any chance to find investors all
around world.
We read a lot of books to make up a great structure for the business. My partner
discusses all these part with me and then we write up the paper together.
Take a look at the example here. We planned to sell 1,000 creative products each
month, however after we make a virtual transaction online, we sold 2,300 products,
1,300 more than our plan. The reason is China is really a huge market, the average
sales volume for creative product in China is 3,000 per month. This kind of analysis
then leads us to better management. Take a look at what's going on in your business
and focus then with real human subjective management on the difference. Within
such a big number, our product as it turned out cost on average 50 SEK more than
what we thought we would price them. So we actually have more in sales than what
we planned even though we sold fewer.
These are just numbers unless we use them as a regular review, a way to turn a plan
into a planning process and make our business better. Plans can be a huge benefit in
our business. Developing a business plan can give us huge benefit. We talked about
getting the loan, getting the investment, or simply determining ourr own future, but
let's think now beyond the plan about the process because that can be so much
more important.
We start with the plan itself and we also can measure a plan as it sits there as a
development plan. How good is it in terms of how realistic is it, how specific is it, how
simple is it. These are important factors in a plan, but what really matters then is how
to follow up, how can we review the plan, how can we see plan versus actual, how
can we check with your team, with your managers, or just with yourself to make sure
that you're doing what you planned to do and then we shoulddeal with the doing
part.
Business plan middle version
After finish the first version, we both thought that our works is great and no longer
need to improve, but twice seminar change our mind, because they provide many
new ways for us to think about our business plan.
bootstrap financing
Freear, Sohl, and Wetzel (1995) defined bootstrap financing as “highly creative ways
of acquiring the use of resources without borrowing money or raising equity
financing from traditional sources”. The term structure of spot returns is recovered
from the bond yields by solving for them recursively.
At very first, we just know that we need a large amount of money for our company to
be the start- up fond, so we just try to find the professional investors and banks.
However, this seminar let us know that bootstrap financing is the cheapest way to
raise capital for business. It makes the business more valuable since no money was
borrowed and no equity positions of the company had to be given up. The business
owners never had to pay the interest since the money we get is generated forms our
own business.
Refer to all these above, we make some plan about how to fund our business.
1. Operate a Home-Based Business
Operating our business from home could save a fortune. First of all, we can eliminate
the costs of expensive commercial rent, commuting. Work in home is also more
comfortable. As well, business use of home expenses would be deductible for
income tax purposes. Since home is our base of operations, travel and automotive
expenses from home to clients would be deductible.
However, for Xinmade.com most of our work will be online, because it is a SNS base
E-business. So work in home will be the best way for us in first few years.
2. Use Our Customers' Money
This is the most important part in our Xinmade business system, we have a step
named presell in our project process. By raise up a presell process, we can test if the
product is poplar enough in our customers. Furthermore, it cut down our cost and
risk, make up a foundation for further commercial sales.
Selling memberships, subscriptions, gift certificates, and coupon books are just a few
ways of getting our clients to pay upfront. Obtaining advance deposits and retainers
from customers can help finance our business operations and reduce or eliminate
the need for bank financing.
3. Other Bootstrap Financing Methods
Aggressively control costs, barter, get extended terms from suppliers, establish strict
credit and collection policies and procedures, rent (or lease) instead of buying
equipment, buy used equipment instead of new, sell off excess inventory and
equipment, obtain free publicity instead of paying for advertising, and do whatever
else is necessary to generate cashflow and profits.
In these ways and many others not listed here, we may be able to start and grow our
business successfully with very limited capital. Thus, we will avoid having to obtain
expensive debt or equity financing.
Causation and effectuation processes
Sarasvathy, S., (2001), inevitability to entrepreneurial contingency, refer that when
begins with a given factors and focuses on selecting between effective ways to
prepare the whole project, it is a process of causation; when the we have to imagine
possible factors based on the given ingredients and utensils, select all the factoers,
and then prepare the project, it is a process of effectuation.
It is necessary to emphasize that effectuation processes are not posited here as
"better" or "more efficient" than causation processes in creating artifacts, such as
firms, markets, and economies. Under what circumstances which types of processes
provide particular advantages and disadvantages is an issue to be resolved through
future empirical studies.
After knowing this, we begin to think about our own project, because Xinmade can
provide our customers with services as well as the products. We need to push our
project in both Causation and effectuation processes in order to get the best place to
meet our customers’ satisfaction.
Our Xinmade.com is a platform for our customers to find what they need to become
an entrepreneur, so of course they need to make out a complete and practical
business design on the first step. Our customers can be designers who can recount
their ideas by themselves, but most of them are ordinary people who just have an
good idea and need us to help them with pictures or paperwork.
For the customers of designers, the idea part can be finished by themselves. What
we do is just like in a process of causation, our customers know what they want
clearly, we only have to satisfy their definite needs, such as funding, marketing and
design enhance. To make the business model complete is our primary work.
For the ordinary customers, we have our own design group in Xinmade.com. Working
on this kind of project is in a process of effectuation. Because our customers just
have nonrepresentational ideas. First of all we have to help them materialization the
idea into clear pictures, make the products can be understood and interested. After
this we will help they with other steps that they need to complete the project.
A great idea is really important for a project. But when turn an idea to a practical
business project, there are many changes we have to make on the idea itself, which
called commercialize. During this process, causation and effectuation model both are
both used. We have to keep the creative part from the original idea at the same time
the product should be practical, for example, it have to be made by a kind of
appropriate material with low cost; the manufacture craft should not be too complex;
the external appearance should be attractive. Certainly, it is hard to get a 100% good
in every point of these, so we have to go from both the creative side and practical
side. Then arrive in the middle point which can make an acceptable result in all parts,
only in this way can make out best product.
By twice emend of different concept, we finally finalize a manuscript.
Conclusion
After doing this project, I gained a lot of things.
First of all, I explored the foundations of business planning, Entrepreneurship,
Intellectual Property Commercialization and Open innovation& open source. All the
steps in the business plan writing help me strengthening understanding of these
knowledge, in addition, increasing my awareness of the values and attitudes that
influence it.
I also gained a lot of practical experience during the process, for example, I know
how to make a market analysis before, but I never do it. For this time, when really do
it hand in hand, I feel the knowledge form the book is not enough, there are still
many barriers in reality. So it is important not just to be aware of potential barriers
but to acknowledge them and to work with them. It is likely that barriers and
potential barriers will vary between individuals and between different situations and
it may not always be possible to change some of them, but failing to acknowledge
them and to own them is bound to limit the reflection processes within the
experience and diminish the potential for learning. Working to reduce the potential
barriers to learning is the responsibility of a excllent students and it is worth taking
time just to think about what my own barriers or possible barriers might be and what
I can do, or ask others to do to minimize them.
I would like to show my deepest gratitude to my supervisor, Dr. Ljungquist, Urban, a
respectable, responsible and resourceful scholar, who has provided me with valuable
guidance in every stage of the writing of this thesis.
Also I want to show my acknowledgement to Kristian Gustafsson, Eleonore Huang
Vogel and Mohammad H. Tavassoli. Without their enlightening instruction,
impressive kindness and patience, I could not have completed my thesis. their keen
and vigorous academic observation enlightens me not only in this thesis but also in
my future study.
I shall extend my thanks to Xuefeng Bai, my greatest partner, for all his kindness and
hard work. I would also like to thank all my teachers who have helped me to develop
the fundamental and essential academic competence. My sincere appreciation also
goes to the designers on Chuangyisheji communities.
Last but not least, I'd like to thank all my friends, especially my three lovely
roommates, for their encouragement and support.
Reference
1. Barringer, B, R.,Ireland, R, D. 2010. Entrepreneurship: Successfully Launching New
Ventures. Global ed. 3rd ed. New Jersey: Pearson Education
2. Howard Van Auken, 2005. Differences in the Usage of Bootstrap Financing
among Technology-Based versus Nontechnology-Based Firms. Journal of Small
Business Management 2005 43(1), pp. 93–10
3. Jonathan T. Eckhardt & Scott A. Shane, 2003. Opportunities and Entrepreneurship.
Journal of Management 2003 29(3) 333–349
4. SARAS D. SARASVATHY, 2001. CAUSATION AND EFFECTUATION: TOWARD A
THEORETICAL SHIFT FROM ECONOMIC INEVITABILITY TO ENTREPRENEURIAL
CONTINGENCY. Academy of Management Review 2001. Vol. 26. No. 2, 243-263
5. Simon C. Parker, 2011. Intrapreneurship or entrepreneurship? Journal of Business
Venturing 26 (2011) 19– 34
doc_671988509.pdf
Detailed elucidation concerning business plan design for xinmade.com entrepreneurial master project.
Business Plan Design
For Xinmade.com
Entrepreneurial Master Project
Yuqi Yao
1. Executive Summary ................................................................................................................... 3
2. Service ....................................................................................................................................... 3
Values ........................................................................................................................................ 3
Value proposition ...................................................................................................................... 4
Future and benefit .................................................................................................................... 6
3. Market ........................................................................................................................................... 8
Market analysis ......................................................................................................................... 8
Industry analysis ...................................................................................................................... 11
Marketing strategy .................................................................................................................. 11
4. Business system & organization .................................................................................................. 13
Business system ...................................................................................................................... 13
Value configuration ................................................................................................................. 14
Alliances .................................................................................................................................. 16
Activities .................................................................................................................................. 16
5. Implementation plan ................................................................................................................... 19
Tasks ........................................................................................................................................ 19
Milestones ............................................................................................................................... 20
Gantt ....................................................................................................................................... 20
6. Risks ............................................................................................................................................. 21
Anticipated risks ...................................................................................................................... 21
Scenarios ................................................................................................................................. 21
SWOT ....................................................................................................................................... 22
7. Financial planning ....................................................................................................................... 23
Break even analysis ................................................................................................................. 23
Cash Flow analysis ................................................................................................................... 23
Capitalization ........................................................................................................................... 25
Startup expenses ..................................................................................................................... 26
8. Legal Issues .................................................................................................................................. 27
Appendix ......................................................................................................................................... 29
Reference ........................................................................................................................................ 33
1. Executive Summary
Xinmade.Com is a platform which based on the crowd sourcing and focused on the
product development system. The aim is to help the individual or personal user to
transfer the creative ideas to commercial goods, experiencing the creativity.
With many people of different roles of investor, customers and idea owner, a project
initiator publishes ideas on Xinmade.com. Then the good idea will be developed to a
new project after evaluation. Redesign and research will start along with the capital
support from investors during the develop process. The aim of online Shop on
xinemade.com is to finish the presales process after the product gets the minimum
order.
Students and young women will be our major customers thus most of promotion
should be focus on them. Our products must be full of passion, fashion and
outstanding elements. Also these points should be highlighted in our promotions in
order to attract our target customers who have particular lifestyle, personality and
other values.
2. Service
Values
Problems and needs & pain Statement
No matter you are a designer, engineer, student, office worker or house wife, you are
the expert of life and you know what our deep needs are. There is a big potential for
individuals to come out ideas to solve the problems they suffer in the common life.
These ideas from the crowds about Problem solving are human wisdom. If the ideas
are transferred to the real product and service to a group of customers, that would
be more valuable.
In fact, the customers always have the experience to come out smart ideas related to
product innovation share with their friends around, who may also believe the ideas
are great. But only few ideas will be attempted and very few of them were
successfully developed to real product. On contrast most ideas are only stopped in
their mind and given up finally.
Why the reality is happened like that? The reasons for individuals are:
1. Don't know how to develop their idea to product.
2. Lack technical to solve the detail problems.
3. There is no enough time continually working on the ideas.
4. Don't know how to market the idea and product.
5. Don’t know how to manage the project.
6. Lack the relevant resource, such as factory.
7. Lack the seed capital.
8. …
It’s hard for Individuals to own the all elements at the same time. If someone want to
continue develop their idea, it will take the individual several years and millions Kr.
Even you have own all the elements, it is not equal to the final success, because the
market is always changing. Most motivation for innovation is just to experience the
creativity process and enjoy achievement feeling. So it doesn’t make sense to take
that huge risk and sacrifice the normal life.
Value proposition
What’s Xinmade?
Xinmade.com is a platform to help the individual to transform their ideas to real
product until successful sales on market. All the benefit will be share with all the
participators.
What can we apply to our customers?
Xinmade.com can provide our customers what they need to become entrepreneurs.
We can be personal assistant for our customers in business or just give them a
platform, which is full of necessary resources, to run their own business. Regards to
the crowd sourcing concept, communities and co-creation can be raised on our
platform.
We also have the linked professional services. For example, we have marketing group
to make market analysis for our customers; design department can help our
customers to enhance their idea; our cooperation with law office can provide a safe
environment for customers’ ideas.
Furthermore, investors can be attracted into our website. With the help of us, idea
owners can keep in touch with the people who can provide funds to them, which is a
particularly important part of starting a business.
How does it work?
First Xinmade will have a website serviced the individual customers. Anyone who sign
up will have the right to submit personal idea. On the platform, the whole process
from submit idea to get the profit is designed as eight stages, see the flow map
below:
1. The idea initiators can publishe ideas on Xinmade.com. Following a simple guide,
they just need to answer question related their ideas. The initiator also can add
sketches, pictures, etc. to convince the peers and the experts in the subsequent stage
to understand well.
2. The peer-evaluation is that other participators give comments to the initiator
and improve the ideas. Good ideas are delivering to next stage; otherwise the idea
initiator can improve that idea and submit again.
3. The ideas selected from the last stage will be assessed by all relevant experts on
Xinmade.com. That assures each proposal is feasible to produce with acceptable cost.
Either the experts will give assessment back to the initiator. The initiator can
continue improve it and submit again.
4. Through the strict assessment, good ideas were set up as a new project. The
project manager will start to find the right designer and engineer to work on it until
the concept ready to produce. Meanwhile the seed invest will raised from the crowd
on Xinmade and Xinmade itself.
5. The concepts will be pre-sold by showing the rendering pictures or prototype
photographs. Once the presales order meets the minimum produce request, the
product will be produced.
6. The products are manufactured by the factories in China. The project
management team will manage the whole process.
7. Deliver the product to the buyers, and enlarge the sales volume through online
sales and other distribution channels.
8. Then revenue will be shared to the all the participants as the certain rate. Idea
owner and the investor will earn biggest part profit from the presales phase.
Xinmade also share the profit from the revenue.
Though the eight stages the ideas are successes on the market, Xinmade have the
responsible to continue selling the product on the market. If the idea owner like,
they can buy the share from Xinmade to setup a new company, all the resource still
available for the future.
Future and benefit
Feature
The services for the idea initiators during all the process are totally free. They don’t
need to invest any money, which meanwhile there will be no risk at all. The whole
Process saves individual personal time and energy, additional with our professional
help, idea holders will get more opportunity to make the idea become a success
project. After all the steps above, the idea initiators own the intellectual property
rights 100%, they earn the profit continually by share the intellectual property rights
in the future sales. They also have the chance to grow up to a real entrepreneur, own
and run the project independently.
Xinmade supply:
1. Opportunity to get the crowd’s development
2. Expert consulting help
3. Project management service
4. Paten protects
5. Seed invest and funding
6. Designer and Engineer support
7. Good manufactory company product the products
8. On line shop and stable distribution channel to sale the products
Benefit
Xinmade will take the principle from people to people as a mission to share the profit.
Until the presales is finished, Initiator and crowd investor will get 10% and 40% profit
and when it comes to the Automatically commercial sales process, they both will
have 5 % and 5% continue revenue.
Xinmade Collects and generates the innovation, which will rise the efficiency of the
human production. Many entrepreneurs will grow up through the practice and they
will help more people. That absolutely is the most valuable wealthy for the whole
social. It is hard to measure by money.
Xinmade is new product development system. It will take the sustainable product
development ideology as one important vision, to effect the crowd involved by
Xinmade’s thinking in innovate and design and production and consumption in a
sustainable way.
The companies can the partner with Xinmade, take the fresh innovation to
commodity or share the date base to solve the company problem. Xinmade provide
them a higher return way to solve some R&D problem with a very low cost.
Technology and market environment
Human daily life is changing because the internet is rapidly reconfiguring the social
system. It’s flexible for the individual to communicate and interact on the public fair
through Web 2.0. Cooperation and sharing can happen anywhere and anytime. For
example meeting, sharing documents, co-working. Millions individuals can join one
process at a short period, such as give comments or express their opinions directly.
Digital technical and various software cause the inexpert can do some professional
job, at least the tools give more freedom or help a lot for the people do some
common job.
E-business has developed maturity. For instance B2C and C2C, also O2O are
becoming more important of the business system in today and near future.
Crowd sourcing describes a new web-based business model that harnesses the
creative solutions of a distributed network of individuals through what amounts to
an open call for proposals. The traditional problem solving taken by few talent
experts or designers inside the area is instituted by the distributed, plural, and
collaborative. The crowds will be the major of generation problem solving and
innovation.
3. Market
Market analysis
Volumes
As a new business model, there is not enough date to calculate the sales volumes
directly for Xinmade.com. Based on the business model and former research, we can
make an assumption below:
The major part of the user will be the industrial design student in China. Until 2006,
there are around 250 universities program in China having industry design bachelor
(the number is still growing, and master is not included yet). The average amount
student in this program is 2 classes, each class include 30 students. That means from
2005, there are more than 15,000 students graduated each year.
250*2*30=15000
All the students from the graduate year to the next 4 years are customers of the
Xinmade. Through the relationship with university and SNS spread online, Xinmade
can cover only 10% of the group.
Just make an assumption that each member summit one idea each year, the number
of the idea collect will arrive at 15000*(1+4)*10%*1=7500
Finally only 1% of the ideas are practical and will be successfully developed which
equal to 75 new products can be developed. If the generally the price is 100KR, sales
volume of each new product is 10,000-100,000 unite, the whole revenue would be
SEK 75 Million- SEK750 Million.
As the average revenue is 15%, Xinmade will earn 9.75 M -97.5M each year.
The result is only depend on the students graduated from Industrial Design, there
must be some students from other programs have innovation requirement, such as
the engineers and entrepreneurship. Even housewife, unemployed, or retired people
can be the idea suppliers. As Xinmade will be spread in China, the potential sales
volume will be 2-3 times at least.
Survey
In order to define our target customers’ need in a specific way, we have done a
market survey in the Chuangyisheji community (http://www.duoyidu.com/). After
over 1000 designers answer our questionnaire, here we come out the resulte.
Group 1 (10%):
People in this group will be spectators at just beginning of Xinmade, because they
want to make sure that if the web site is really helpful and safety for their ideas, also
if the services is really free. If it is, they will be obviously come to Xinmade to be the
customers.
Group 2 (2%):
People in this group choose not to come to Xinmade, because they think we can get
enough found by personal way. Some people in this group are senior designers in big
company, in their opinion, just hand the ideas to their companies and let they to
decide is much more easier and save money.
Group 3 (88%):
People in this group all feel that Xinmade is awesome, because it just provides them
with what they want. After the website’s building up, they will come to sign up
without any hesitation. Nearly all the people in this group are young students and
green hands in office, which will be our target customers.
To get more information about the idea publish, people in group 3 helped us for a
further research.
Section 1 (78%):
group 1
group 2
section 1
section 2
group 3
Market Survey
People in this section would like to publish their ideas in Xinmade, they though that
raise up a discussion will be cool and bring more interesting things to the idea and
what’s more, they can be given a great chance to enhance.
Section 2 (22%)
People in this section would like to choose keep the ideas to their own. They just
want to connect investors on Xinmade by themselves. They thought that personal
services are more preferred than public services to them, because them can cover up
all the steps by themselves to build up an own project except funding.
For the question “Will you willing to buy the products you like on the Xinmade?” the
answer is 100% yes. That shows us a great customer’s demand.
Segments
From All these above, we can obviously figure out that young student green hands in
office will be our target customers. For some customers, get enough investment is
the first goal.
We should consider the customer need and the capability first. The students in
universities and the graduates within 4 years, whose age is around 22-30, have the
innovation passion, familiar to the internet environment, thus they are the main part
of the Social community member. They have stable living support, fixed space time of
1-2 hour per day. Moreover, they want to experience new things with the ambition of
success. The reality is that the 1-2 hours a day is nothing compare to the time they
need to run a project, also the certain salary is far from the enough funding,
furthermore they know something for sure but it still need a long term to accumulate
the knowledge for a whole picture of enterprising a project or a company. Even for
the people who learnt entrepreneurship, it’s still a hard work without enough time to
practice. So they are our core participator and the real customers because they do
need us.
Considering about the category Regions, Cities, the conclusion comes: the creative
product was more popular in big city of China since the sales volume is increasing
rapidly particularly in Shanghai, Beijing, Shenzhen and the capital cities of each
provinces in China. It show us a very promising and easy-entry market. So overview
the market will focus on the biggest city around the east seaside of China Shanghai.
Another reason is the transportation is cheap and convenient.
From the initial reason that rural people wanted to raise the income of their
community, they produce a line of handmade artworks with a traditional technique.
As time goes by, hand-making products become more and more popular, because
their special natural style attracts the people in big cities, provide them with fresh
feelings and relaxation.
Industry analysis
Competitor analysis
Crowd sourcing is a new buss model. Using crowd sourcing to help the individual to
develop their product innovation is a kind of innovation without many competitors.
In China, Xinmade will be the first one, no competitor yet. But this obviously is a
trend on the internet, more and more individuals or companies will aware that and
take advantage of crowd sourcing to solve more problem or get more success.
The first company which used crowd souring is Quirky, set up in 2009 NYC. Each
product with innovation idea need to be submitted by paying $10, after one week
peer voting, Quirky team will pick the best one to develop into a real product. The
idea owner will earn 10% of the profit. Other participators can share the revenue by
their influence. Current quriky have 180000 users, each year can generate 60 new
kinds of products and the income is above 7 Million SEK. Because Quirky focus on
USA, with the different market and language, the competition with Xinmade is not
such big in fact.
So far there is no direct competitor in China yet, but several crowd funding websites
are raised in China in the past few years. Such as Diannou, launched in July 2011,
focuses on individual dream, include design, film, art, Public service activities.
Another competitor is Called JUE, just launched in April of 2012, only focuses on
product which are more closed “nice”, less “function”. Both of the websites are using
crowd sourcing for foundering to help the individual idea initiators. The business
models they built do make sense for the individual, but it’s not enough for more the
individual successful transfer the idea to product on the market.
Entry barriers
There are less entry barriers for Xinmade.com in China, especially when the main
access is on the internet. The founders are Chinese and very familiar with the local
market. At the same time, innovation economy and it industries is really active in
China— developing with a high speed and a better environment. Also the Central
Government and local government encourage the product design and product
innovation.
Marketing strategy
Services & Product
Firstly, Xinmade.com can provide our customers what they need to become
entrepreneurs. We can be personal assistant for our customers in business or just
give them a platform, which is full of necessary resources, to run their own business.
Regards to the crowd sourcing concept, communities and co-creation can be raised
on our platform.
In addition, Xinmade.com will focus on the innovation product. The product should
be new innovated or unique functional or for special customers (niche Market).
At first years, Xinmade.com will focus on the simple product which is related to the
personal consumption good or electronic product in your home. 5year later develop
the product with some software improvement. That will have somehow complex.
Price
For the entrepreneurs-cultured services, it will be totally free. If the the innovation is
successfully transfer to a product, the idea initiator can earn 30% of profit from the
presales and 10% of profit from the commercial sales. However, when an idea entre
the practical process, Xinmade.com have to take the management cost, such as
platform management, expert assessment, project management, product design,
product engineering and product test. Xinmade.com will take the 20% of the revenue
from the creative products presales. after that , depended on commercial sales
general profit.
In other word, our service will have no price, because we just share the profit from a
successful project.
For the creative products, the presales price is only an experiment process, which is
only cover all the cost, so it’s minimum price. Because this is the first minimum
product, the price still a little bit higher, but if the product continues sales, the cost
and price will be lower, so the difference price will be return to the first group
customer.
Place
Local in Sweden: Sweden government encourages the innovation, so it’s benefit for
stat the innovation business here. At beginning the entrepreneur student and the
designer are the major idea spring.
Focus on China: China is a huge market; especially the E-business is very popular in
China. The consumer in China is a huge potential for Xinmade.com.
Promotion
1. Inside of Xinmade.com :
Improve the system to attract the customer publish idea and buy the product.
Define more game rule make the participator have more fun on Xinmade.com
2. Outside of Xinmade.com:
Use the SNS to publish some advertisement. Spread by friend to friend.
Work with some NGO who focus on the innovation development.
4. Business system & organization
Business system
The service flow is clear to reflect Xinmade business system, stage 1 and stage 2 is
happened on Xinmade, but the main activity operated by the individual users.
Xinmade can only take care the maintaining of the website. From stage 3 until stage 5,
this is the core value of Xinmade supplied to the customer, so this will be full control
led by the Xinmade itself. that not means all the experts are come from Xinmade,
part of the them is belong to Xinmade team, more than half of the human resource
can be employed by part time or open source when the project needed, all the
activity have to be full control by Xinmade team.
The first step will happen on our website, the idea holders should have some
agreements with us, such as the protection way for ideas and the right for other
people to comment ideas.
Step 2&3 are very similar. The evaluation and vote will be online, but the final
decision will be made by Xinmade.
Step 4 should be focus on the design group of Xinmade. From this step, investors will
join the project.
Step 5 also will be controlled by Xinmade, we will have a professional shopping
trolley system on our website.
Stage 6 manufacture and distribution will be finished by our partners. the reason
here is that these tow process are not the key competence and major service, it's
not xinmmade good at it. So find some good partner they will help Xinmade strong
the service chain, for both side is win-win cooperation.
The online shop will run on Xinmade website, because Xinmade have the resource
and customer ourselves, through the selling product also can advertise Xinmade in
the customers.
Under the flow map as a company the finance and market will cover by ourselives.
Value configuration
Depended on what kind of project we are accessing in, the cooperation may happen
with some concept developing companies. During the cooperation period, we insist
that:
• Factories must be our contract supplier.
• We pay for transportation form the other express company.
• The marketing steps have to be control by Xinmade.com
• The service after sales will owned by Xinmade.com
As a crowd sourcing based, all the roles relevant the business are directly
stakeholders and share the final profit. Stakeholders will not play only one role in the
whole project, so all the factors in Xinmade’s project build up a value constellation
but not a single value chain. Details are showed below:
Xinmade.com
This is the date base and management to the innovation projects.
Idea initiator
Any people have the good idea can be a idea initiator, who own the idea, will earn
the profit if the idea is develop to commercial product successfully.
Participator
The peer who can give any comments to the new idea during the developing process
is the participator. It’s possible for some of them to be the potential customer later.
The expert on Xinmade.com
They are the person to monitor the projects and give some profession suggestions.
Outsourcing expert
These people will give some necessary profession help. They also will share the finial
profit.
Investor
Who is the people to give the capital support at the beginning, they will share the
finial profit.
Factory
They are the partners with Xinmade.com based on the projects. They will share the
finial profit.
Distribution
This company is the channel to sales more products to the customers; they will share
the finial profit.
Transportation
This company is responsible to transfer the product to the finial customer; they will
share the finial profit.
Alliances
Our website has business relationships with other companies -- as a purchaser, as a
supplier, or as an equal business partner. These relationships vary in their quality and
intensity, from a loose, more or less coincidental relationship to a strategic alliance
that results in intensive cooperation and mutual dependency.
Design Community
Chuangyisheji community (http://www.duoyidu.com/), is our first cooperation
partner. The idea of Xinmade has been come up because of the discussion with the
design on this community. Since they know a lot about Xinmade, our first customers
will from this community. They can also help us to do more promotion.
Universities
Our company should have relationships with universities because the graduates will
provide us a steady support in R&D section. Also students are more likely to try
something new, which makes them probably become our customers and idea
suppliers.
Factories
Factories can be treated as our resources more than alliances. Close partnerships are
characterized by a degree of tight interdependence between the partners, so the
factories are typical for highly specialized products and services, or for large volumes.
In such situations, it is usually difficult for both of us to change partners at short
notice, to obtain large quantities of specialized components quickly from another
supplier, or to find a market for such components. The advantage is the security of a
firm relationship and the possibility of cutting down the cost.
Law office
Cooperation with law office is to help our customer keep their right as an idea’s
original owner. In additional, it will be more convenience when they have the need to
apply for patent or other legal means.
Activities
Investors attracting
Adequate funding is the first necessary factor that a new-staring up company urgent
needed. Consequently, most of our customers on our website are looking for ideal
investors. Thus investors attracting we be our first target and it will bring us more
customers indeed.
Project management
We can also provide our customers with professional management services. For
example, we have marketing group to make market analysis for our customers;
design department can help our customers to enhance their idea; our cooperation
with law office can provide a safe environment for customers’ ideas.
Personnel
In general, our management team can be divided into two major parts. One is the
website-work team while the other is the project team.
To make it more detailed, team structures can be showed blow:
(Start-up member are count out in the parenthesis.)
Website-work Team—
Network technical group (2): This group’s work is to build up the complete website
and keep its running.
Assistant group (5): The group which help the users to upload their idea and rise up
the vote. They can also teach the customers how to use the website system.
Online promotion group (3): E-business is different from the general business.
Promotion online is exactly a different part. Online promotion pays more attention
on how extensive the promotion is. This group helps more people know about the
new idea as well as our website.
Project Team—
Marketing group (5): This group should in charge of idea evaluation and marketing
search. In order to make right decision, they should keep clear about what the idea is
and what the market needs is.
Design group (5): Redesign the practical ideas is the main work of this group. To
achieve the goal they should keep work with the marketing group, because they
need to know what is the market really want.
Accounting group (2): When investors join into the project, the accounting group
should make sure how much invest we need and forecast how much we can get.
They also need to make agreement with the investors about the profits and risks
sharing.
Sales group (2): sales on line means the products should be deliver by the logistics
corporation. This group should make sure the customer’s order and pack off the
goods.
Organization
Xinmade will be one generating innovation company. Every employee here should be
creative and enjoy innovation. Sharing is necessary for the whole team. Your Sharing
and your effort directly related your payback.
Xinmade will build a competitive team by employ the expert in his industry. That
includes marketing people, project manager, and website designer and Engineer.
Other employee don’t belong the core competition, at the first year, Xinmade will
cooperate with partners or employ the part time employees. For example the lawyer
is needed for the contract and apply the intelligence protect right.
In order to make business system run smoothly, Xinmade have to abstract the talent
member to join the team, so Xinmade team will grow fast in the next 5 years. See the
feature below. In fact the platform will run as full business model form January of
2014. Before that the some work will be done by the founder team to down the cost.
The company will start up from Shanghai, but outside the center. The fee of rent
office will be lower, but all the resource is till convenient for Xinmade.
Legal requirements
There are several factors that an invention has to comply with in order to be
patentable. “These are that invention” (i) consists of subject matter that is
patentable. (ii) is new. (iii) involves an inventive step. (iv) complies with the internal
requirements of patentability” ( Bently & Sherman: 391).
Sometimes it is possible to protect designs by copyright law. This applies directly and
indirectly. Directly, design articles can be protected as artistic works, such as
engravings, sculptures, or works of ‘artistic craftsmanship’ (Bently & Sherman).
Although we have knowledge above, we still need the help form lawyer who
specialist in this area, furthermore to build a long-term relationship with the law
office to keep the security of the ideas on our website.
Inventory
Products’ sale in Xinmade depends on presale as well as respective project. So we
don't have an inventory. Cost of warehouse can be cut down in our business process.
Sales
Shopping trolley will be install in our website cause sales on line is the directly relate
to our profit. Any problem related to sale such as promotion, pricing practice and
after-sale service can be salve on our website.
All the things mentioned above can shoe a complete and new business model of
Xinmade. The website includes almost necessary functions for the user to share,
communicate, and co-work on the projects. Experienced experts (designer, engineers,
project manager act.) and the crowd register members are the key resources.
Xinmade get resource from the partners, such as Manufactories, investor, retailer,
lower office and universities, at the same time supply more opportunity with them.
5. Implementation plan
Tasks
The platform is the important service tools, so it must be built up and tested as soon
as possible. The interface of the website and user experience is very important which
need the professional web designers develop and maintain the website.
The first customers for Xinmade are really important, because we need them to
begin our first project, or we can’t start our platform’s function. Thus we have made
an cooperation with the Chuangyisheji community (http://www.duoyidu.com/).
Since our market survey has been done on this community, designers have already
known a lot about Xinmade and gotten really to register in our website.
We also need to find and fix the partner resource before the first project start:
1. Get the lawyer cooperation to protect the idea when we run the platform.
2. Manufactories and prototype factory should be connecting at the same time
before there are good idea happen.
3. Find the potential retailer like to sell the innovation product, get the agreement
on the future cooperation.
4. Find some good idea at least using one of them to test it, before form launch the
website.
Meet university in China to market Xinmade before it is launched. Attract more users
to farm on the platform. Through SNS spread Xinmade in China continually. This
group of user is Xinmade’s core resource, so the market will continually need.
Transfer the best idea collected on Xinmade to real product and to sell them on the
market. Test the whole system.
Get the VC invest for the expand Xinmade and run the full business model. At same
time improve the system and try to lead the system run in more automatically.
Milestones
1. Launch the website on October of 2012.
2. Start the first project on December of 2012
3. Achieve the 10,000 register on the Xinmade until April of 2013
4. Get the retailer start to sell the innovation product from June of 2013
5. Rise up the second round fund October of 2013
Gantt
6. Risks
Anticipated risks
Any enterprise with revenue must have risk. There are several factors that could
affect Xinmade get success. The most important risks are summarized here, at same
time Xinmade still prepare some countermeasure to minimize the risk:
1. There are some good ideas happen on the platform but the fund is not enough
for the first investing. This a special risk for Xinmade, because Xinmade take crowd
founding as one resource. In this case we can do some advertisement and
recommendation on Xinmade to guide the micro investment cumulate on few
project.
2. The product cannot be sold above the anticipation, because the product on
Xinmade is just innovated and fresh launched, so it is likely selling not well. But
xinmdae try to use presale instead producing fist. Also we can find more retailer as
partner to sales.
3. The product have quality problem after sales. Any project does has its risk. So
xinmdae will have a very strict check stander and system to grantee the quality and
security.
4. In the near future many products will sold on the platform at the same time, the
cash flow face risk. Xinmade will strictly make a feasible financial plan to control the
investments, at same time to prepare rise new fund before necessary.
Scenarios
As the assumption did in the previous the chapters, there would be a bright future
for Xinmade.com. If the amount of project on Xinmade can be finished as the plan,
we will have revenue from the end of 2013. After that the system will works more
automatically, that means no need increase the fix cost, the income will grow fast as
more users involved. Commercial benefit will form 9M -270M SEK. Until end of 2016
the VC can get 5-10 time revenue as investment.
If the some risk happen as we list above, the worst scenario is that we don’t realize
the income as our plan. But Xinmade will strictly control the investments and cost on
the projects, before we get the fixed order we don’t invest for produce product,
which means we can will have the cash in our hand, even some project is not that
good as prospect, we will cancel the cost on the project and reduce half of the fixed
cost. Only keep the website run smoothly, at same time the manage team will adjust
the business strategy and continue grow. The revenue will come half year or one year
later. But the market still good, so the revenue will not reduce too much.
SWOT
Strength
• Close to customers
• Close to factories (distribution channels)
• Financial security (Pre-Sale, No own capital risks), various resources. Product
development easy and fast.
Weakness
• Experience economic grow up. More and more people want to work for
themselves, have more choices. A growing Patent Portfolio.
• Growing Databases (User Data and resources)
Opportunity
• Manage the suppliers
• Manage different project
• Each product maybe for different customers
Threat
• Cheap products from big brands
• More new designer brands grow up
7. Financial planning
Break even analysis
For the creative products, the average price is 100 SEK and the average sales volume
per month is 20,000 unites.
Base the market assumption, after 6 month Xinmade will break even, the calculation
shows that in October of 2013, Xinmade.com can start earn money. After July of
2014 the revenue will rise rapidly.
Cash Flow analysis
If Xinmade.com get have the invest capital 3Million SEK, the cash flow as the below
graph in the first 2years.
Cost & Revenue
For each project, we much calculate out the basic cost and revenue first. Two
different stages in one project make the revenues totally distinguish with each other.
Basic Cost
R&D: 50,000 SEK
Manufacturing for presale: 100 SEK1,000100,000 SEK
Manufacturing for commercial sales: 40 SEK100,0004,000,000 SEK
R&D for each project needs at least one professional designer and other works by
the website assistance in order gather the comments from customers. Average cost is
50,000 SEK.
For the manufacturing, each project need 100 SEK, while for the most of factories in
China, the minimum product number for a project is 1,000. So the cost is 100,000
SEK. Manufacturing for commercial sales will cut down the single cost for the product
because of the larger number. The total cost will be 4,000,000.
Revenue
Presale: (50,000 + 100,000)50%50%75,000 SEK
Commercial sales: 4,000,00075%3,000,000 SEK
The rate of return will be sate at 50%, because the sales price will be change depend
on the cost. Then, the first profit have to share with the other stakeholders, Xinmade
can get only 50% of it. So the real income is 75,000 SEK.
When come to the stage of Commercial sale, rate of return will be 100%. Refer to the
share contract Xinmade can get 75% of the profit, which is 3,000,000 SEK.
Start-up Cost
Register Company: 100,000 SEK
Build the Website: 200,000 SEK
Start-up cost only count in 2012.
Fixed Cost (in 2012)
Web maintain: 100,000 SEK
Rent office and office consumption: 150,000 SEK
Salary: 552,000 SEK
Branding advertisement: 500,000 SEK
This fixed cost will be changed each year because of the number of employee
changed.
In the year 2012, we won have any income because even though the company has
already registered, we can’t start working on the project right away. At the same time
we won’t have any project cost. The start-up cost is our total cost.
However, in year 2013, the start-up process would be end and then come into the
practical stage—begin to work on projects. We plan to work on 20 projects in the
first year, only 4 of them could be successfully go to the commercial sale stage. The
cost should account in the presale cost for 20 project and 4 one for commercial
project, so as the revenue.
As time goes by, employee of Xinmade should be more, and the number of project
we work on will be increase. But basic cost and revenue is maintained. So here
comes out the cash flow table.
We start the company form October 2012, with start-up cost of 300,000. But projects,
which count in 37,500 SEK for each presale and 3,000,000 SEK for each commercial
sale, will be started in 2013.
Capitalization
If the invest is not get the 5M, or the company develop faster than the plan, more
invest have to be find. Then the best way is to loan from bank.
Startup expenses
Start-up register company
Salary
Project Need
Website developer
team
Consultancies costs
Brand
development
Brand design
Micro blog
Google adv
Website
advertisement
Activity advertisement
Consumption
internet and server
cost
Rent office
Consumption of office
The startup expenses is the composed by four part.
1. First, register a company in Sweden, and buy a domain. That is around 10000SEK.
2. Second, the Salary is the main cost in the business plan. That includes three type
cost. Project need salary is used for employ the necessary technique people for
develop the projects, which is around 576,000 SEK and 2,232,000 SEK in 2012.
Website develop team is to employ the web-designer to build the platform, also
include the database. That is cost 1 Million SEK. Consultancy help is necessary,
including Marketing manager and Patent lawyer and Contract lawyer. That needs
750,000SEK per year.
3. Third, the Brand development is necessary invest, but considering this is a long
period task, so this part budget is only 200,000SEK at the beginning.
4. The last part is the stable office consumption around 150,000 SEK first year.
Compared the break point that will be 22 months, the startup invest should be up
5Million SEK to keep the business to develop smoothly.
8. Legal Issues
A patent is protected by the invention of legal norms, which is an invention patent
examination and approval authority of the country
(http://www.SIPO.se/In-English/Patents/). After passing the examination according
to the law, the patent applicant’s exclusive invention right within the prescribed time
will be granted. The exclusive invention right means that no one else is allowed to
use the invention by manufacturing, selling or importing otherwise he or she have
the patent owner's permission (Christine MacLeod, 2002).
In China, State Intellectual Property Office of P.R.C (SIPO) is in charge of patents,
trademarks and industrial designs, at the same time grants patents. Patent applicants
should turn to us to file a national Chinese patent application. SIPO is also an
international authority, which means applicants can use SIPO if they want to pursue a
patent in other countries. After the idea holders get legal patent in China, they can
apply patent abroad through SIPO, legal and financial help will be given for the
application since China encourage people to apply patents in foreign counties.
When it comes to original works, they can be protected by a set of exclusive right
which is called copyright. Internet Copyright law –the Berne Convention was
published in 1886 which aims at providing protection for creative original work. It
designed to maintain the relationship between the right of copyright owners and the
relevant individuals or enterprises who want to use, public or make profits by
copying them and the whole society that are able to obtain novel and useful ideas or
information. Generally authors dedicated their lives for a piece of fantastic work,
they deserve effective legal laws to safeguard their rights and benefits and avoid
copyright being infringed. However, copyright law is not simply recognized as a tool
for protecting those ideas, it is a strong and firm armor to protect the expression or
product of the ideas being used by others.
Contrast with other two laws copyright and patent of intellectual property laws
which provide protection to tangible objects work and invention for individuals and
enterprises; trademark law is centering on establishing legal right to maintain
benefits for intangible sign which is used for claiming an identity within the
commercialized marketplace. It is not only to claim the ownership of one particular
symbol or indicator, the forms of trademark differ from varieties to varieties, for
instance it can cover from word to picture, from sound to any combination of them
to distinguish the differences among products and services by customers. A good
reputation trademark is a pivotal key to a company.
Defined in the Community Designs Regulation, targeted at protecting the outward
appearance of a product or a part of a product which results from the lines, contours,
colors, shape, texture, materials and its ornamentation (Bardehle,2010) There are
two typical features required: one is novel and another is individual character under
Article 5 and Article 6. The design law would only give protection to those no
identical designs have existed before in the public; moreover “informed users”
cannot find some similar designs easily gotten accessed to. Additionally, it merely
protects the in feature of appearance of a product rather than technical functions in
the product.
Appendix
Questionnaire
Name:
Education Level:
Gender:
Specialized field:
Work Experience: Age:
1. Will you register on Xinmade.com?
• Yes
• No
• Other _______________(Specific) No need to go on.
2. Will you publish your ideas on Xinmade.com?
• Yes
• No _______________(State reasons)
3. Are you willing to buy the products you like on the Xinmade.com?
• Yes
• No _______________(State reasons)
Tables
Share
Revenue
Management Cost-Salary
Total Cost
Cash Flow
Reference
1.http://www.internetworldstats.com/stats.htm
2.http://www.SIPO.se/In-English/Patents/Applying-for-a-patent/Swedish-patent-applic
ation/
3. Wikipedia;http://en.wikipedia.org/wiki/Copyright
4. Porter, M. E. (1996). What is strategy? Harvard Business Review, November–
December, 61-78.The value chain
5. Daren C. Brabham. (2009). "Crowdsourcing the Public Participation Process for
Planning Projects", Planning Theory, 8(3), pp. 242-262.
6. Barringer, B, R.,Ireland, R, D. 2010. Entrepreneurship: Successfully Launching
New Ventures. Global ed. 3rd ed. New Jersey: Pearson Education
7. Discounted cash flow:http://en.wikipedia.org/wiki/Discounted_cash_flow
8. Debt/asset ratio:http://en.wikipedia.org/wiki/Debt_to_assets_ratio
9. Kubr, T., Marchesi, H., Kienhuls, H. Starting Up: Achieving Success with
Professional Business Planning. Amsterdam: McKinsey & Company, Inc.
10. Nilsson, A. 2011. Business Plan_modules. [PowerPoint slide]Blekinge Institute of
Technology
11.http://www.sipo.gov.cn/
Business Plan Design
For Xinmade.com
Entrepreneurial Master Project
Yuqi Yao
This reflection cover presents a company named Xinmade.com, which is a platform
which based on the crowd sourcing and focused on the product development system.
The aim is to help the individual or personal user to transfer the creative ideas to
commercial goods, experiencing the creativity.
This paper describes the process at six headlines: Business Idea, Business concept,
Business plan first version, Business plan middle version and Conclusion.
Business Idea
Create an idea or product that you believe can be successful. This is easier said than
done. For truly, I feel that coming up with a viable product or idea is sometimes
harder than constructing a business plan, because the idea is the core and the base
to for you to grow up an business plan. Having a good business plan is important for
every entrepreneur, especially for the green hand like me.
But, there are many different ways to accomplish this task. Play a game, read a book,
paint a picture, play a sport, or just cook in the kitchen. I never want to force myself
to do something and then focus that energy into creating an idea/concept/product.
Just let them flow is the best way.
For the idea about Xinmade, my project partner and I expose ourselves to many
different environments that are outside of our comfortable zone. Get more engaged
with hobbies. We believe expertise will help get closer to a viable business idea and
actually it is come true.
We both like small thing with designs feelings and creative ideas. So when we search
on the internet, we will always go to a website which gathering many young
designers on it. We like to talk with the people who always have interesting ideas and
try to implement them.
The first time I thought that maybe we can raise up a business in this field was
happened when I saw many similar comments in the community. Under the
designer’s explanation and pictures of their ideas, there are always many people ask
“Where can I buy this?”, “How much it will be?” and “When can you make this idea
come true?” Because of all these, we know that creative products have their markets,
but without steady suppliers, the business chain can’t come out.
We both put our eye on this point that if there is someone can link the factory and
the designers together, many popular goods will come out. Taking this assumption,
we have a talk with designers about the idea. It found out that many designers like to
focus on their ideas exclusively, most of spare time in their lives are talking about
designs and ideas with friends, who most of the time are designers too. They may
have the dream to make their designs come to a real project but they don’t know the
right way to do it. On the one hand, if connect with big companies, it’s hard for them
to be pay attention; on the other hand, small companies have a very big limitation in
funding, and the chances are particular less.
After knowing this, we try to make connect with some free investors, the result we
get from them make us a little surprise because the investors said they can’t find
appropriate idea holders easily. It is true that there are many new and great ideas
come out every day, but the idea stealer’s action seems quicker and quick. The
investors have to spend more time to distinguish and make decisions – they never
want to take any illegal projects. In addition, in order to make their project safe,
investors will try to buy the idea from the beginning; however designers with
excellent talent will not sale their ideas out easily.
By thinking in two different ways, we got that it is the environment bring these
contradiction to the designers and investors because they don’t have enough chance
to get in touch with each other. And this situation also happens between the
designers and factories, customers and other suppliers. At this point, we are clearly
knew what we want to do – create a plant from which can connect all these people
with different roles together, let the information they want flow among them freely.
After these more and more projects will come out much more easily because
communication will help them to slave their own problems— they never worry about
money or originality, what they want are just the right people.
The idea of Xinmade.com has been born in such environment with our hope that
each idea-holder could have chance to become an entrepreneur and make their
great ideas come true.
Business concept
After think about how we can make the world a better place with designers’
invention or business idea I felt that business should revolutionize the way we live life,
even if it's just a small way. For example, if we are interested in cooking, maybe we
have a problem with the way an oven can dry out a chicken when cooking. Now that
we have identified a problem, brainstorm and think of as many solutions as possible.
It does not matter how crazy the solution is, just think about them and write them
down.
For our idea about Xinmade, we just consider the company or organization itself.
Think about the nature of the company and how to make it a typical profitable
company with services and products. We have decided on geographic location and
type of operation, be it manufacturing, wholesale, retail or a service provider. Make
short-term (two years) and long-term (ten years) goals. We both know that Xinmade
will be a long-term planning, so we also discuss this idea with some close friends and
teachers to get help from them.
By think about how they fit within the community, as well as what local, regional or
national needs of customers, we developed the services and products that the
business will offer. Thinking about how to develop a selling position is difficult,
because we both lack of related experience. Fortunately, books and teachers help us
a lot, as well as find some useful tips in different SNSs. When come to this
point—Business SNS in China, it is not a story that I can tell easily, because the core
of Social Networking is the culture of the society, so the Business SNS market in
China is also representing the culture and reality of business society in China. China is
still a developing country, which means the business environment, law system, credit
system, trust system and even morality system are still under construction.
However, Business SNS is the very basic part of our business concept, since our
business is practicable or not is rely on it. We have been seen the business SNS giants
are all peeking Chinese business market, but none of them has succeed, or not even
started. With all of these Chinese market failure stories of Google, eBay, MSN, Yahoo,
MySpace, etc. we are really hesitating.
Though, as the only local business focused SNS startup in China, we still see the lights
of our future, we even feel the success of taobao.com, along with the benefits it
brings to the society, the contribution are delivering to the E-business industry.
As a super adviser for lots of startups, a social network hub for mobile industry, an
enthusiastic friend, a passionate entrepreneur, a telecom, wireless and Internet
veteran, a SNS addict, we really see the power of relationship and believe in the
future of Business SNS in China.
Consider the current and future competition. List our situation with SWOT and
compare them to the competitions’ bring us some confidence. We set up our
business concept and begin the paper writing.
Business plan first version
The primary value of our business plan will be to create a written outline that
evaluates all aspects of the economic viability of our business venture including a
description and analysis of the business prospects. Although it may not ensure our
success, we believe that preparing and maintaining a business plan is important for
any business regardless of its size or nature. We maintain a correct assessment of the
changing economics of the business in order to make our plan can provide a useful
roadmap as well as a financing tool and perhaps the most important factor in
achieving that result and turning our plan into a management tool is regularly
reviewing the plan.
Making a plan that gets done let us feel a drawer in the first step, we can carry out
anything we need on the paper. It might help us with the investment, but the real
value in plans is the process of reviewing the plan and using it to generate better
management, constant course correction. So we look here at what was our sales
forecast for this platform. And now let's look at what the actual sales were and we'll
compare plan versus actual with the variance or plan versus actual
We have done a lot of survey in different communities in China, because we suppose
to build this company in our home country. But get any chance to find investors all
around world.
We read a lot of books to make up a great structure for the business. My partner
discusses all these part with me and then we write up the paper together.
Take a look at the example here. We planned to sell 1,000 creative products each
month, however after we make a virtual transaction online, we sold 2,300 products,
1,300 more than our plan. The reason is China is really a huge market, the average
sales volume for creative product in China is 3,000 per month. This kind of analysis
then leads us to better management. Take a look at what's going on in your business
and focus then with real human subjective management on the difference. Within
such a big number, our product as it turned out cost on average 50 SEK more than
what we thought we would price them. So we actually have more in sales than what
we planned even though we sold fewer.
These are just numbers unless we use them as a regular review, a way to turn a plan
into a planning process and make our business better. Plans can be a huge benefit in
our business. Developing a business plan can give us huge benefit. We talked about
getting the loan, getting the investment, or simply determining ourr own future, but
let's think now beyond the plan about the process because that can be so much
more important.
We start with the plan itself and we also can measure a plan as it sits there as a
development plan. How good is it in terms of how realistic is it, how specific is it, how
simple is it. These are important factors in a plan, but what really matters then is how
to follow up, how can we review the plan, how can we see plan versus actual, how
can we check with your team, with your managers, or just with yourself to make sure
that you're doing what you planned to do and then we shoulddeal with the doing
part.
Business plan middle version
After finish the first version, we both thought that our works is great and no longer
need to improve, but twice seminar change our mind, because they provide many
new ways for us to think about our business plan.
bootstrap financing
Freear, Sohl, and Wetzel (1995) defined bootstrap financing as “highly creative ways
of acquiring the use of resources without borrowing money or raising equity
financing from traditional sources”. The term structure of spot returns is recovered
from the bond yields by solving for them recursively.
At very first, we just know that we need a large amount of money for our company to
be the start- up fond, so we just try to find the professional investors and banks.
However, this seminar let us know that bootstrap financing is the cheapest way to
raise capital for business. It makes the business more valuable since no money was
borrowed and no equity positions of the company had to be given up. The business
owners never had to pay the interest since the money we get is generated forms our
own business.
Refer to all these above, we make some plan about how to fund our business.
1. Operate a Home-Based Business
Operating our business from home could save a fortune. First of all, we can eliminate
the costs of expensive commercial rent, commuting. Work in home is also more
comfortable. As well, business use of home expenses would be deductible for
income tax purposes. Since home is our base of operations, travel and automotive
expenses from home to clients would be deductible.
However, for Xinmade.com most of our work will be online, because it is a SNS base
E-business. So work in home will be the best way for us in first few years.
2. Use Our Customers' Money
This is the most important part in our Xinmade business system, we have a step
named presell in our project process. By raise up a presell process, we can test if the
product is poplar enough in our customers. Furthermore, it cut down our cost and
risk, make up a foundation for further commercial sales.
Selling memberships, subscriptions, gift certificates, and coupon books are just a few
ways of getting our clients to pay upfront. Obtaining advance deposits and retainers
from customers can help finance our business operations and reduce or eliminate
the need for bank financing.
3. Other Bootstrap Financing Methods
Aggressively control costs, barter, get extended terms from suppliers, establish strict
credit and collection policies and procedures, rent (or lease) instead of buying
equipment, buy used equipment instead of new, sell off excess inventory and
equipment, obtain free publicity instead of paying for advertising, and do whatever
else is necessary to generate cashflow and profits.
In these ways and many others not listed here, we may be able to start and grow our
business successfully with very limited capital. Thus, we will avoid having to obtain
expensive debt or equity financing.
Causation and effectuation processes
Sarasvathy, S., (2001), inevitability to entrepreneurial contingency, refer that when
begins with a given factors and focuses on selecting between effective ways to
prepare the whole project, it is a process of causation; when the we have to imagine
possible factors based on the given ingredients and utensils, select all the factoers,
and then prepare the project, it is a process of effectuation.
It is necessary to emphasize that effectuation processes are not posited here as
"better" or "more efficient" than causation processes in creating artifacts, such as
firms, markets, and economies. Under what circumstances which types of processes
provide particular advantages and disadvantages is an issue to be resolved through
future empirical studies.
After knowing this, we begin to think about our own project, because Xinmade can
provide our customers with services as well as the products. We need to push our
project in both Causation and effectuation processes in order to get the best place to
meet our customers’ satisfaction.
Our Xinmade.com is a platform for our customers to find what they need to become
an entrepreneur, so of course they need to make out a complete and practical
business design on the first step. Our customers can be designers who can recount
their ideas by themselves, but most of them are ordinary people who just have an
good idea and need us to help them with pictures or paperwork.
For the customers of designers, the idea part can be finished by themselves. What
we do is just like in a process of causation, our customers know what they want
clearly, we only have to satisfy their definite needs, such as funding, marketing and
design enhance. To make the business model complete is our primary work.
For the ordinary customers, we have our own design group in Xinmade.com. Working
on this kind of project is in a process of effectuation. Because our customers just
have nonrepresentational ideas. First of all we have to help them materialization the
idea into clear pictures, make the products can be understood and interested. After
this we will help they with other steps that they need to complete the project.
A great idea is really important for a project. But when turn an idea to a practical
business project, there are many changes we have to make on the idea itself, which
called commercialize. During this process, causation and effectuation model both are
both used. We have to keep the creative part from the original idea at the same time
the product should be practical, for example, it have to be made by a kind of
appropriate material with low cost; the manufacture craft should not be too complex;
the external appearance should be attractive. Certainly, it is hard to get a 100% good
in every point of these, so we have to go from both the creative side and practical
side. Then arrive in the middle point which can make an acceptable result in all parts,
only in this way can make out best product.
By twice emend of different concept, we finally finalize a manuscript.
Conclusion
After doing this project, I gained a lot of things.
First of all, I explored the foundations of business planning, Entrepreneurship,
Intellectual Property Commercialization and Open innovation& open source. All the
steps in the business plan writing help me strengthening understanding of these
knowledge, in addition, increasing my awareness of the values and attitudes that
influence it.
I also gained a lot of practical experience during the process, for example, I know
how to make a market analysis before, but I never do it. For this time, when really do
it hand in hand, I feel the knowledge form the book is not enough, there are still
many barriers in reality. So it is important not just to be aware of potential barriers
but to acknowledge them and to work with them. It is likely that barriers and
potential barriers will vary between individuals and between different situations and
it may not always be possible to change some of them, but failing to acknowledge
them and to own them is bound to limit the reflection processes within the
experience and diminish the potential for learning. Working to reduce the potential
barriers to learning is the responsibility of a excllent students and it is worth taking
time just to think about what my own barriers or possible barriers might be and what
I can do, or ask others to do to minimize them.
I would like to show my deepest gratitude to my supervisor, Dr. Ljungquist, Urban, a
respectable, responsible and resourceful scholar, who has provided me with valuable
guidance in every stage of the writing of this thesis.
Also I want to show my acknowledgement to Kristian Gustafsson, Eleonore Huang
Vogel and Mohammad H. Tavassoli. Without their enlightening instruction,
impressive kindness and patience, I could not have completed my thesis. their keen
and vigorous academic observation enlightens me not only in this thesis but also in
my future study.
I shall extend my thanks to Xuefeng Bai, my greatest partner, for all his kindness and
hard work. I would also like to thank all my teachers who have helped me to develop
the fundamental and essential academic competence. My sincere appreciation also
goes to the designers on Chuangyisheji communities.
Last but not least, I'd like to thank all my friends, especially my three lovely
roommates, for their encouragement and support.
Reference
1. Barringer, B, R.,Ireland, R, D. 2010. Entrepreneurship: Successfully Launching New
Ventures. Global ed. 3rd ed. New Jersey: Pearson Education
2. Howard Van Auken, 2005. Differences in the Usage of Bootstrap Financing
among Technology-Based versus Nontechnology-Based Firms. Journal of Small
Business Management 2005 43(1), pp. 93–10
3. Jonathan T. Eckhardt & Scott A. Shane, 2003. Opportunities and Entrepreneurship.
Journal of Management 2003 29(3) 333–349
4. SARAS D. SARASVATHY, 2001. CAUSATION AND EFFECTUATION: TOWARD A
THEORETICAL SHIFT FROM ECONOMIC INEVITABILITY TO ENTREPRENEURIAL
CONTINGENCY. Academy of Management Review 2001. Vol. 26. No. 2, 243-263
5. Simon C. Parker, 2011. Intrapreneurship or entrepreneurship? Journal of Business
Venturing 26 (2011) 19– 34
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