Creating an Effectuated Business Plan

Creating an Effectuated

Business Plan

Supervisor: Prof. Dr. P.S. Zwart

Date: November 2012

University of Groningen Faculty of Economics and Business

ABSTRACT

This paper attempts to put the entrepreneur back into business planning. By making use of both causation and effectuation literature, a new roadmap for entrepreneurs is developed which can be used during the new venture creation process. Through multiple interviews and desk research, this roadmap guided the development of a new venture called Flavors of Spain. The effectuated business plan will guide the entrepreneur in her pursuit of starting a viable venture. However, future research should assess whether the use of this effectuated business plan actually leads to higher changes of successful start-up.

Key words: Entrepreneur, causation, effectuation, new venture creation process, case method.

Word count: 77 pages – 26.095 words.

TABLE OF CONTENT

2.4. EFFECTUATED BUSINESS PLAN ... 19

Executive Summary ... 21

Chapter 1: The Entrepreneur ... 21

Chapter 2: The Organization ... 25

Chapter 3: The Customer ... 28

Chapter 4: Financial Plan ... 30

Chapter 5: Strategic Plan ... 33

3. METHODOLOGY ... 37

4. FLAVORS OF SPAIN ... 39

Executive Summary ... 40

Chapter 1: The Entrepreneur ... 40

Chapter 2: The Organization ... 43

Chapter 3: The Customer ... 44

Chapter 4: Financial Plan ... 47

Chapter 5: Strategic Plan ... 54

5. CONCLUSION ... 58

REFERENCES ... 64

APPENDIX A ... 69

APPENDIX B ... 71

1. INTRODUCTION

The process of new venture creation is a well-researched context as ‘the creation of firms with innovative products and services has been identified as key driver for wealth creation and economic growth’ (Schwienbacher, 2007: 754). However, a fundamental shift is perceived in the way this process is taught (Sarasvathy, 2001). The new venture creation process educated in prestigious universities as Harvard, MIT and Stanford, is built on what Sarasvathy (2001) calls ‘causation theory’. With the assumptions of neoclassical economics underpinning this theoretical construct, most entrepreneurship researchers have assumed that individuals engage in rational goal-driven behaviors when pursuing entrepreneurial opportunities (Bird, 1988). Entrepreneurs in the new venture creation process follow a rational, analytic and cause-effect process which includes opportunity analysis (Wickham, 2006), goal setting (Shane and Delmar, 2004), resource acquisition (Kotha and George, 2012) and formal business planning (Timmons and Spinelli, 2004). According to this causation approach, the future is somewhat a continuation of the past; l'histoire se répète. ‘To the extent you can predict the future you can control your outcomes’ (Wiltbank, Read, Dew and Sarasvathy, 2009: 117). Following this predictive logic, new venture creation is a process of adapting facts and figures from the past. However, what happens when history does not repeat itself?

Effectuation sheds a different light on entrepreneurship and new venture creation (Read, Song and Smit, 2009). The effectuated approach recommends entrepreneurs to follow a means-oriented decision-making approach, instead of setting pre-determined goals as is explained under causation. Effectuation therefore includes a thorough assessment of the entrepreneur herself. ‘Common theoretical assumptions offer little guidance for understanding how entrepreneurs may bring value to otherwise worthless resources’ (Baker and Nelson, 2005: 329). Effectual reasoning emphasizes on the question of what can be done given possible means and imagined ends, which implies a process that rests on the logic of control (Gabrielsson and Politis, 2011). Sarasvathy (2001: 252) suggests a novel entrepreneurial logic construction; ‘to the extent that we can control the future, we do not need to predict’. In highly uncertain situations, as is the new venture creation process, ‘an emphasis on non-predictive control may present effective alternatives’ (Wiltbank, et al., 2009: 117). A gap in the effectuation approach, nonetheless, was found in the fact that nothing happens to the specific means or, in other words, ‘they are not put to work’ (Read et al., 2009: 585). While causation teaches how to assess resources with a focus on the firm by developing a business plan, effectuation starts with entrepreneurial means and obtaining partner commitments but leaves the new venture creation process open for discussion. Sarasvathy (2001: 249) states, ‘under what circumstances which types of processes provide particular advantages and disadvantages is an issue to be resolved through future empirical studies’. In addition, Chandler, DeTienne, McKelvie and Mumford (2011: 287) ask the question: ‘does the choice of causation or effectuation processes impact subsequent venture development?’ This paper attempts to answer this question by integrating both approaches into an effectuated business plan. This effectuated business plan will be of value for the entrepreneur (Chwolka and Raith, 2012), whilst also keeping external resource acquisition possibilities open (Scholtens, 1999). As Karlsson and Honig (2009: 27) state ‘a plan is necessary for the successful start-up of ventures’. The main research question in this paper will therefore be:

How can the effectuation approach be integrated with the business plan (causal) approach to reform the new venture creation process and assist in the entrepreneurs’ pursuit for a

successful start-up of their venture?

plan approaches. These three subjects will constitute the basis of the effectuated business plan which results in the following sub questions:

1) What is stated in literature about entrepreneurs in the new venture creation process? 2) What is stated about a business plan (causal) approach in literature?

3) What is stated about the effectuation approach in literature?

The second part of this paper will focus on the integration of the three main subjects, which will result in the construction of the effectuated business plan. Sub question four will be:

4) How can literature about entrepreneurs, business plan and effectuation approaches be combined into one framework (the effectuated business plan) to be used in the new venture creation process?

The conceptual model following this reasoning will be: FIGURE 1 Conceptual model

The effectuated business plan will be developed based on a literature review of the main subjects; entrepreneur, business plan and effectuation. With the theoretical lessons learned throughout the literature review, the execution of an actual practical effectuated business plan will form the second part of this paper. For this reason, a start-up venture called Flavors of Spain (later to be called FOS) is chosen as explanatory case. Inspired by holidays in Spain and a passion for cuisine, two Dutch entrepreneurs contemplated of bringing the concept of Spanish supermarkets (Mercado’s) to the Netherlands. Instead of copying the Mercado-concept, the entrepreneurs see more possible outcomes for their start-up, by combining several industries like retail, hospitality, catering, travelling, cooking and education. As this case is currently at the start-up stage, the effectuated business plan could be tested for its usefulness in the new venture creation process. The final sub question is:

Effectuation

Approach

Effectuated

Business Plan

Entrepreneur

Business Plan

5) How can the effectuated business plan be used in the new venture creation process of Flavors of Spain?

2. LITERATURE REVIEW

This chapter will construct the effectuated business plan based on a literature review of the main subjects in this paper which are important in the new venture creation process. This process needs to be clarified first. Several scholars (Bhave, 1994; Cartner, Gatner and Reynolds, 1996) have researched the process of new venture creation and used the article of Gartner (1985) as a starting point. He created a framework for describing new venture creation and integrates four major perspectives in entrepreneurship: individual(s), organization, environment, and process. He clarifies this choice by explaining the importance of ‘the characteristics of the individuals who start the venture, the organization which they create, the environment surrounding the new venture, and the process by which the new venture is started’ (Gartner, 1985: 696). This model emphasizes the importance of the entrepreneur and the need for some kind of roadmap which can be used for guidance during the new venture creation process. Following this line of thought, the first subject to be reviewed in this paper is the entrepreneur. Secondly, literature about business planning and the logic of prediction is investigated which is currently providing entrepreneurs with roadmaps. The third section explicates a different view on the process of new venture creation and is based on the logic of control. This view is called the effectuation process and changes the way in which roadmaps are used. The final section will use the literature reviews of the main subjects and integrate them in order to construct an effectuated business plan which, will provide entrepreneurs with a new roadmap to be used in the new venture creation process.

2.1. ENTREPRENEUR

entrepreneurship entails. It is because of the influence of the entrepreneur, or individual in Gartner’s (1985) description, that she is reviewed as a separate subject.

Shane (2003) is one of many scholars interested in entrepreneurship and he was the first to create ‘a general theory of entrepreneurship’. According to Shane (2009: 4), ‘entrepreneurship is an activity that involves the discovery, evaluation and exploitation of opportunities to introduce new goods and services, ways of organizing markets, processes, and raw materials through organizing efforts that previously had not existed’. Many factors affect the individuals’ perception on discovery, evaluation and exploitation of opportunities. Shane (2003) defines this as ‘the individual opportunity-nexus’ with which he implicates the effect of individual attributes on the decision to exploit an opportunity. Gartner (1985) explicated the importance of the individual in the new venture creation process and by making use of Shane’s (2003) ‘individual opportunity-nexus’ this individual will be analyzed.

FIGURE 2

The effect of individual attributes on the decision to exploit

(Source: Shane, 2003: 62)

The individual attributes shown in figure 2, may be similar for many individuals. Nevertheless, not every individual will decide to exploit an opportunity which is caused by the individuals’ perception of uncertainty. Entrepreneurial attributes will affect this perception, as previous research shows that the entrepreneurs’ experience, education, and ability to recognize and seize opportunities influence the entrepreneurs’ decision making process (Dew, Read, Sarasvathy and Wiltbank, 2009). Whether the individual decides to exploit an opportunity depends on non-psychological and psychological factors.

Non-psychological factors are fairly easy to describe, as these attributes include characteristics as age, education, and previous experience. The four psychological factors, on the other hand, need clarification. (1) Personality traits are ‘enduring, predictable

characteristics of individual behavior which explain a difference in actions when in similar situations’ (Koe Hwee Nga and Shamuganathan, 2010: 266). These traits include certain degrees of openness, extroversion, agreeableness, conscientiousness, risk-taking propensity, need for independence, confidence, intuition, and neuroticism (Shane, 2003; Koe Hwee Nga and Shamuganathan, 2010). (2) Individual motives to exploit an opportunity can be explained by push and pull factors. Some individuals have a high need for achievement which indicates that they would like to accomplish something themselves in order to perceive the thrill of the actual execution (Stewart and Roth, 2007). Other motives can be regarding the potential financial benefits, pride in the job or flexible lifestyle that entrepreneurship has to offer (Walker and Brown, 2004). These factors create entrepreneurial attractiveness for some individuals and create a pulling force towards entrepreneurship. Push factors, on the other hand, are externally driven forces resulting in an individual action. One of these forces is unemployment. In the current years of economic crisis, many jobs are terminated. While an unemployed individual previously loved the security and safety of a long-time-employment, he should now act and take risk in order to generate income. (3) Cognitive attributes help the individual assess the opportunities in the market. Groves et al. (2011: 439) state: ‘cognition is a primary source of entrepreneurial persistence and perseverance, problem solving, and absorption of market data toward successful decision making’. Findings indicate that ‘experienced, persistent, confident individuals, motivated mostly by non-financial outcomes, perceiving support from their social contacts and institutional environment, are likely to make the transition to a successful business’ (Zanakis, Renko and Bullough, 2012: 1). (4) The final psychological factor is core evaluation. The individual should assess whether he has confidence in the opportunity and his, previously explained, attributes to exploit this opportunity. Together the four psychological factors moderate the decision to exploit an opportunity. To assist entrepreneurs with the evaluation of these attributes, Driessen and Zwart (2006) developed the entrepreneurial scan.

FIGURE 3

The entrepreneurial competence model

(Source: Driessen and Zwart, 2006)

One should, however, keep in mind that this evaluation serves as indicator of what type of entrepreneur an individual is, which is not the same as personality testing. Personality testing has been done by other existing frameworks like the Big Five Factor Model and the Myers-Briggs Type Indicator. However, the use of these methods never resulted in a positive relation between personality traits and successful entrepreneurship (Chandler and Hanks, 1994; Driessen and Zwart, 2006; Ozcelik, Langton and Aldrich, 2008). This is caused by the desire of scholars to describe just one ‘entrepreneurial personality’. Present research shows that this is not observable as there are as many entrepreneurial types and personalities as individuals (Shane and Venkataranan, 2000; Stewart and Roth, 2007; Nicolau, Shane, Cherkas and Spector, 2009). The e-scan discards these limitations by integrating the company life cycle and thinking styles. With the integration of these constructs, the e-san serves as a suitable tool for total competence evaluation of individuals.

Even though, the e-scan is a suitable tool, a limitation is found in the self-reflecting component. Individuals are asked to conduct the e-scan themselves and thus evaluate upon their competencies. Some individuals include competencies which they do not possess which leads to overconfidence problems. ‘Overconfidence occurs when people overestimate the likelihood that their favored outcome will occur, which is the single most catastrophic judgment error one can make’ (Simon and Shrader, 2012: 2). On the other hand, signaling that your venture is going to create wealth (overconfidence) reduces inefficiencies caused by information asymmetry between the entrepreneur and capital providers (Dell’Era and Santos-Pintos, 2011). Furthermore, an entrepreneur in the new venture creation process should be confident with her competencies which includes the belief that the new venture is going to be a success. Without this confidence, an individual will never exploit an opportunity.

Conduct competitive analysis. Conduct market research. Develop a business plan. Acquire resources and stakeholders. Adapt to the environment as it changes over time. START: Identify an opportunity for a new: product, firm, or market. 2.2. BUSINESS PLAN

When an individual decides to exploit an opportunity, the rest of Gartner´s framework needs to be investigated: ‘the organization which they create, the environment surrounding the new venture, and the process by which the new venture is started’ (1985: 696). One approach to do this is by using the causation process. Causation theory describes a rational process of setting a pre-determined goal and evaluating what has happened in the past to create a business plan for the future (Wiltbank, et al., 2009). With this pre-determined venture goal in mind, the entrepreneur should conduct market research and competitive analysis to research the environment surrounding the new venture. Based on this information the business plan is developed and strategies for the future are determined. With this business plan, the process of new venture creation is started as the search for acquiring resources and stakeholders begins. This causation process is displayed in figure 4.

FIGURE 4 Causation process

(Source: Read et al., 2009)

Business planning is a well-researched process as ‘it is of prime interest to scholars to understand which approach to firm creation increases the chances of success’ (Gruber, 2007: 784). Business planning is defined as those efforts by firm founders to gather information about a business opportunity and to specify how that information will be used to create a new venture which exploits this opportunity (Delmar and Shane, 2003). It includes the processes of analyzing information, evaluating required tasks, identifying risks and strategy, projecting financial developments, and documenting these in a written plan (Castrogiovanni, 1996). While there is high interest of scholars in this field, research to date is inconclusive on the need for business planning in the new venture creation process.

interferes with the efforts of time constrained entrepreneurs to undertake more valuable firm-organizing actions. In addition, planning could provide entrepreneurs with the harmful illusion of control over information, such as that obtained from customers which could lead to decision-making errors in estimating factors like customer needs. Furthermore, planning activities involve costs which according to Bhidé (1999) should be avoided in the start-up phase of a venture.

While the scholars above are considered the anti-planning group, another group views business planning as an important activity for successful venture creation (Shane and Delmar, 2004; Gruber, 2007). The most important reason why entrepreneurs do write business plans is to gain legitimacy. With a legitimate business plan, the chance of a viable start-up is improved as entrepreneurial assumptions are proved by market research and competitive analysis. Pressures for legitimacy can be found in two sources, internal and external to the new venture. (1) Internal legitimacy describes the motivation of entrepreneurs which adds to the goal-setting theory (Shane and Delmar, 2004). This mental process describes human behavior with desires future states to be put down in writing to facilitate the achievement of three goals: (I) ‘facilitating faster decision making by identifying missing information without first requiring the commitment of resources; (II) providing tools for managing the supply and demand of resources which avoids time-consuming bottlenecks; and (III) planning identifies action steps to achieve broader goals in a timely manner’ (Delmar and Shane, 2003: 1181). Furthermore, written plans help entrepreneurs find the exact information needed for the venture to be a success. With this information, entrepreneurs can focus on the main tasks and activities to be done in the start-up phase. In addition, business plans confirm the rational choice between feasible and non-feasible venture options for the entrepreneur (Chwolka and Raith, 2012). Together with the individual attributes, a written business plan affects the decision to exploit an opportunity.

universities where many entrepreneurs are stimulated to write business plans as it ‘signals professionalism and indicates that the person(s) involved are serious’ (Honig and Karlsson, 2004: 33). With a legitimate business plan, external parties are more likely to supply resources as these ventures appear to be desirable, proper and appropriate.

Taken both planning and anti-planning groups into consideration; entrepreneurs need to be efficient planners and need to know exactly what to plan in new firm creation, rather than ‘just’ plan, to achieve superior outcomes. ‘Hence, the trade-off decision between various activities in the planning process seem to be of high importance’ (Gruber, 2007: 801). With this in mind the planning activities need to be structured for entrepreneurs in the new venture creation process.

As suggested by Gartner (1985), a simple roadmap would be helpful to individuals who need to analyze the organization, environment and process of new venture creation. Unfortunately, a coherent and simple structure for business planning is missing which is caused by its popularity in entrepreneurial teaching. Structures differ from 13 to 200 bullet points delineation of what an entrepreneur should cover (Honig and Karlsson, 2004). This paper analyzes two books, used in new venture and entrepreneurship courses given at an university. Both books present different business plan structures. Timmons and Spinelli (2004: 397) state: ‘the plan should carefully articulate the merits, requirements, risks, and potential rewards of the opportunity and how it will be seized’. It is important to notice that there are multiple roadmaps for entrepreneurs to choose from and that there will not be one ultimate roadmap to “Rome”. However, entrepreneurs should carefully consider which roadmap will be most suitable in their particular situation. Table 1 represents the structures explained in the books of Wickham (2006), and Timmons and Spinelli (2004).

TABLE 1

Structures of a business plan

Chapter: Wickham (2006) Timmons & Spinelli (2004)

1. Executive summary: Summary which entails the

most important points in the business plan as opportunity, market, strategy and costs. 2. Mission: The mission of the venture which

defines the business, what it is, why it differs and what it aims to achieve.

Industry and company: Description of the company, concept, industry, products or service and entry and growth strategy.

3. Market environment: Background, competitors, competitive conditions, competitive advantage of the venture, definition of product offerings, and definition of target markets.

4. Overview of key objectives: Financial objectives with profit targets and growth ambitions, and strategic objectives with market position.

Economics of business: Margins, profit

potential, costs, months to break-even and reach positive cash flows.

5. Financial forecast: Income, routine expenditure, capital expenditure and cash flow.

Financial plan: Income statements, balance sheets, cash flow analysis and breakeven calculations.

6. Activity: Product developments, sales drives, launches and advertising campaigns.

Design and development plan: Development status and tasks, difficulties and risks, product improvements, proprietary issues and costs for development.

7. People: Individuals behind the venture, skills and experience they bring to the business, evidence of achievements, personal profiles and CVs.

Management team: Organization, key

management personal, ownership, investors and other shareholders.

8. Manufacturing and operations plan: Operating

cycle, location, facilities and improvements, strategy, regulatory and legal issues. 9. Strategy: Product, pricing, distribution and

promotional strategies, and networking.

Marketing plan: Marketing strategy, pricing, sales tactics, service and warranty policies, advertising and promotion, distribution.

10. Proposed company offering: Desired financing,

offering, use of funds, investor’s return.

(Source: table adapted from Wickham, 2006: pp. 377-378; Timmons and Spinelli, 2004: pp. 403-420)

Expanding Cycle of Resources

Converging Cycle of Constraints

Co-creation of new firms, products, and markets. What can I do? Interact with people I know or meet. Obtain partner commitments. START: Assess means: Who I Am, What I know, Who I know. New means New goals 2.3. EFFECTUATION

Effectuation is said to fundamentally shift entrepreneurial decision making processes from causation, with the logic of prediction, to the logic of control. Sarasvathy, the initiator behind effectuation theory, wanted to ‘get behind the stories and understand how entrepreneurs reason about specific problems in transforming an idea into an enduring firm’ (2006: 2). The effectuated process shows another approach to deal with the creation of an organization, the environment surrounding this firm and the process of new venture creation (Gartner, 1985). Sarasvathy and Simon (2000: 5) asked the following question: ‘where do we find rationality when the environment does not independently influence outcomes, the future is truly unpredictable, and the decision-maker is unsure of his/her own preferences?’ Effectuation builds on the believes that the future is shaped by people and therefore rests on non-predictive logic, ‘to the extent that people can control the future, they do not need to predict it’ (Read et al., 2009: 2). Figure 5 displays the effectuation process.

FIGURE 5 Effectuation process

(Source: Read et al., 2009)

a selection of alternatives based on affordable loss, flexibility, and experimentation’ (Chandler et al., 2011: 375). The causation and effectuation approaches are build on different principles, these differences become evident in table 2.

TABLE 2

Differences between causal and effectual logic

Principles Causation process Effectuation process

View of the future Predictive. Control.

Basis for taking action Goal-oriented. Means-oriented (who I am, what

I know, who I know). Predisposition toward

risk and resources

Expected return, with a focus on upside potential.

Affordable loss, with a focus of limiting downside potential. Attitude toward

outsides

Competitive analysis, in order to enhance sustainable competitive advantages for own venture.

Partnerships, who together form the new market in which every committed stakeholder gains. Attitudes toward

unexpected contingencies

Avoiding, contingencies are seen as obstacles as the future should be predicted and planned for accurately.

Leveraging, as contingencies can be seen as continual

transformations and opportunities for novelty creation.

(Source: table adapted from Dew et al., 2009: 290)

successful start-up will diminish (Sarasvathy, 2001). The synergies made through partner commitments can result in co-creation of a market in which a group of stakeholders benefit together. The affordable loss principle also applies for these committed stakeholders. The fact that stakeholders will buy into the idea will sustain the enterprise as the market itself in an ‘aggregated taxonomy of sustainable sets of partnerships and commitments’ (Sarasvathy, 2001: 254). (4) The final principle of effectuation builds on this web of committed stakeholders as they together leverage new ventures and construct a new market environment which is now controlled by the network. The effectuated principles ‘tied together into a coherent logic demonstrates that this is indeed a convincing alternative to causal rationality’ (Sarasvathy, 2006: 5) in which multiple entrepreneurs could benefit from the new venture creation process. To sum up, ‘an entrepreneur who behaves effectually fabricates her own environments (however locally) and futures (however short term) through self-selected stakeholder commitments that are embodied in new organizational goals and new market segments’ (Dew, Read, Sarasvathy and Wiltbank, 2008: 55).

2.4. EFFECTUATED BUSINESS PLAN

McMullan and Hall, 2005: 778). By integrating these multiple theoretical approaches into one new model, the effectuated business plan, this paper will attempt to fill this gap. Figure 6 presents the lessons learned throughout the sections above and shows factors to be integrated in the effectuated business plan.

FIGURE 6

Results from literature reviews

The effectuation process will be used as guideline to explain the new interpretation of the framework of Gartner (1985). Furthermore, the effectuated principles, displayed in table 2,

will be used to reflect on this new venture creation process. This process will grow from explaining ‘the characteristics of the individuals who start the venture, the organization which they create, the environment surrounding the new venture, and the process by which the new venture is started’ (Gartner, 1985: 696) towards understanding the importance of interactions with people to co-create new firms, products and markets (Sarasvathy, 2001). The importance of a roadmap during this process cannot be overlooked. Without certain elements of the business plan approach, internal and external legitimacy will not be gained. However, a detailed business plan is discarded on the grounds of the affordable loss principle (Sarasvathy, 2004), limited resources in start-up stages (Bhidé, 1999; Karlsson and Honig, 2009; Chwolka and Raith, 2012) and usefulness for professional capital providers (Mason and Stark, 2004). Following this reasoning, the effectuated business plan will consist of an executive summary and chapters concerning the entrepreneur, the organization, the customer, the financial plan, and the strategic plan. The subsequent section will clarify the choices and synergies made in the development of the effectuated business plan. In addition, each chapter of this effectuated business plan revolves around multiple steps. These steps provide the individual with a roadmap to be used during the new venture creation process.

Executive Summary

An executive summary is included in the effectuated business plan as it provides an overview of the organization for people with a certain interest in the venture. Effectuation is centered on the interaction with people and in order to get the interest of these people a short introduction to the venture is valuable. However, this chapter can only be described after the completion of the effectuated business plan. This part therefore is not considered as a chapter but merely provides an introduction to the effectuated business plan of the new venture.

Chapter 1: The Entrepreneur

Step 1: Identity

The first step reflects on the identity of the entrepreneur, or ‘Who I am’. This mean is found in the effectuation process and demonstrates similarities with three quadrants of the e-scan; motivation, capabilities and characteristics. The first competence is motivation and the entrepreneur should describe her internal and/or external motivation. Questions are formed by considering factors presented in figure 3, quadrant 2.

 Are you internally driven to become an entrepreneur because of high needs for

autonomy, achievement and/or power?

 Or is the motivation driven by external factors as unemployment, certainty of clients,

interest in the subject or by acknowledging a gap in the market?

The second competence concerns the entrepreneurial capabilities in the early phase of the company life cycle. This paper reflects only on the new venture creation process and therefore the mature phase is left out of consideration. In quadrant 3 of figure 3, capabilities in the early phase include market orientation, creativity, and flexibility. Based on these factors the following questions should be answered:

 Why do you want to start a venture?

 Could you give examples from the past which represent your market orientation,

creativity, and flexibility during your professional life?

The third competence includes characteristics of the entrepreneur. In this section a combination is made between characteristics and thinking styles displayed in quadrant 4 of figure 3. Affinity with the following subjects should be displayed:

 Do you have affiliation with entrepreneurship?

 Do you consider yourself to be an efficacious entrepreneur?

 Are you an entrepreneur with endurance?

 Do you take risk as entrepreneur?

 Could you give examples from your professional life in which these characteristics

emerge?

 What kind of thinking style do you believe is best suiting you as entrepreneur; pioneer,

salesperson, manager or expert?

were necessary. However, one should only include relevant information. By completing step 1, the entrepreneur signals her competencies regarding motivation, capabilities and characteristics which explain why this entrepreneur exploits an opportunity and starts a venture.

Step 2: Knowledge

The second mean presented by Sarasvathy (2001) is ‘What I Know’. The link with the e-scan is found in the quadrant 1 of figure 3: knowledge. A description of knowledge and experience in the market, environment, people, production, and finances should be included according to Driessen and Zwart (2006). Sarasvathy (2001) however, differentiates between ‘What I Know’ and ‘Who I Know’. For this reason, people and finance will be dealt with in the subsequent step. Questions to clarify entrepreneurial knowledge include:

 Do you have prior knowledge or experience in the market in which the new venture is

going to operate?

 Do you have prior knowledge or experience with the environment?

 Do you have prior knowledge or experience with the product/service the new venture

is going to offer?

Again it is important to be concise and describe only relevant knowledge and prior experience for the new venture. Step 2 reveals the track record and know-how of the entrepreneur which demonstrate the human capital brought into the new venture.

Step 3: Own Resources

2007: 852). The entrepreneurial network should contain both strong and weak ties as research shows both interpersonal (social) and professional networks improve the access to additional resources (Granovetter, 1973; Uzzi, 1997; Zhang, Souitaris, Soh and Wong, 2008). Additional resources required include knowledge, finance or learning. Zhang et al., (2008: 594) argue that ‘human capital (what you know) influences social capital (who you know) and ultimately determines your network utilization (whom you choose)’. This is consistent with the effectuation approach. The entrepreneur should thus assess if her human and social capital will be sufficient to create a viable venture. As presented above, the requirements from a network can differ. Sarasvathy (2006c) suggests obtaining partner commitments by using the entrepreneurs’ network in order to evaluate the opportunity. The partners or stakeholders in this case commit to the idea which will lead to ‘achieving control of the environment and the future’ (Dew et al., 2008: 51). In this step, the entrepreneur should assess her additional resource requirements based on knowledge, finance, and learning and describe if partners are already committed to the opportunity. Questions to be answered include:

 Do you posses relevant competencies necessary for a successful start-up?

 With which parties did you speak prior to the effectuated business plan?

 Do you have committed stakeholders?

 In which sector; customers, suppliers, experts, other entrepreneurs, investors,

governmental parties, or any other relevant party in the new venture creation process?

The final element left from the e-scan is knowledge about finance. As stated above, the need for additional financial resources should be described as these could also be acquired within the network. However, a principle of effectuation changes the perception of finances: affordable loss. ‘An effectuator tries to estimate the downside and examines what she is willing to lose in order to start the venture’ (Sarasvathy, 2006b

providers still need to be induced. While many business plans are written for these external investors by making use of causation theory, it does not imply that the affordable loss principle could not be justified. It is a known fact that external financiers never invest in business opportunities which they believe will not be viable. Furthermore, the amount invested is based on the description of the opportunity and the competencies of the entrepreneur. External investors, therefore are never a hundred percent sure that their investment will be fully returned and take risk in financing a start-up. When considering an opportunity and entrepreneur as described in a business plan, these external capital providers consequently base their investment decision not only on what they expect in return, but also on what they could afford to lose. One could therefore state that the affordable loss principle also holds for professional capital providers which integrates both effectuation and causation principles. This part of the effectuated business plan will reflect on the entrepreneurs own financial resources which they could afford to lose and the desired external investment by considering the following questions:

 How much financial capital is provided by the entrepreneur?

 How much financing is desired?

 To which essentials in the start-up phase will these funds be devoted?

The third step consists of two elements, network and finances, which together describe the entrepreneurs own resources. The network can be used to provide additional knowledge, learning and financial resources. However, when these resources are not sufficient, professional capital providers should be induced through providing an effectuated business plan.

To conclude, the first chapter of the effectuated business plan concerns the entrepreneurs’ identity, knowledge, and network. This was already suggested by the definition of new venture creation by Gartner (1985) who state the characteristics of an individual to be important during this process.

Chapter 2: The Organization

After the decision to exploit an opportunity is made, the opportunity should be explained. Gartner (1985) explains this as importance of the organization to be created by the entrepreneur. In the new venture creation process the OECD1 distinguishes between two

stages; seed and start-up. In the seed stage the initial concept emerges including testing of the product while in the start-up stage the entrepreneur needs to acquire funds for the product development (Scholtens, 1999). The entrepreneur can thus be in two different stages during the new venture creation process.

Seed:

The seed stage suggests an opportunity with many possible outcomes for the venture. The effectuation approach is chosen as it allows for many ends to the entrepreneurial means. In order to develop the seed, the entrepreneur should follow the entrepreneurial process described in figure 5. The effectuated business plan at this stage serves as a brief description of the initial idea which the entrepreneur can use when interacting with people. This idea can be described by answering the following questions:

 Which entrepreneurial mean described in chapter 1 can be developed?

 Which ends do you envision for your new venture?

 And with whom can you interact in order to obtain partner commitments? Start-up:

In order to describe the organization in the effectuated business plan, Wickham (2006) is used. In his book the opportunity is described as ‘the chance to do something differently and better’ (Wickham, 2006: 223). This represents the potential of the new venture to serve customers better than other ventures do at present. A clear link can be made with Osterwalder and Pigneur (2010) who state the importance of value creation. In order to create steps, this paper explains the companies’ vision and mission at this chapter which concretize how the new venture is going to create value.

Step 4: Vision

‘The entrepreneurs’ vision is a picture of the new world they wish to create’ (Wickham, 2006: 321). The link with effectuation is presented by the fact that Wickham (2006) specifies a creation of a new world or market. As Sarasvathy (2001) intended, the patchwork quilt of committed stakeholders together create the market a new venture is placed in. The vision of a new venture should reflect the value to be created by this venture. This could be short-term or long-term oriented. In order to structure this process, questions from Wickham (2006: 232) can be used:

 What will be the source of the value to be created?

 Why will those involved be better off?

 What is the projected result of the venture in the future?

Step 5: Mission

A mission gives form to the proposed vision set above. According to Wickham (2006: 334) a mission statement should define ‘what the venture aims to achieve and which values it will uphold’. A mission statement should not be too long and should reflect on the additional value the venture is creating. Questions to be answered are based on Wickham’s mission statement:

- What do you want to achieve with the venture?

- And which values will you hold during the new venture creation process?

organization, the opportunity is made tangible which will enhance both internal and external legitimacy (Shane and Delmar, 2004).

Chapter 3: The Customer

The third perspective of Gartner (1985) concerns the environment in the new venture creation process. Under causation theory, the environment should be scanned by excessive market research and competitive analysis. Porter´s five forces model (1991) provides a commonly used description of five key forces determining the position of the new venture. These forces include: threats of new entrants; bargaining power of buyers; threats of substitute products or services; and bargaining power of suppliers (Porter, 1991: 101). While these forces are commonly used for market research and competitive analysis, the principles of effectuation change this significance. First, effectuation builds on the logic of control. The factors described above by Porter (1991) are neither under control nor easy to describe. Secondly, effectuation rests on the network of committed stakeholders and the fact that these parties together will co-create the market. In other words, the forces described by Porter (1991) are based on competition which is a principle of causation. Effectuation on the other hand focuses on leveraging contingencies and a description of the environment becomes less relevant. Nevertheless, there is one important force in the environment which should be dealt with in the effectuated business plan - the customer. As stated, this force is important for the survival of the venture and a clear image should therefore be presented. In addition, the customer is a factor under control as each venture could decide to create value for different customers. This chapter in the effectuated business plan is therefore based on principles of effectuation. Osterwalder and Pigneur (2010) amplify the importance explaining for whom the new venture is creating value. Their book on business model generation provided multiple questions to be answered in the subsequent steps.

Step 6: Customer Segments

The development of customer segments helps the entrepreneur to focus on customers whom they would like to serve. Once this decision is made, the venture can be designed around a strong understanding of specific customer needs. Based on this step the venture could determine which segments to supply and which to neglect. Osterwalder and Pigneur (2010: 21) set the following questions:

 For whom are you creating value?

Step 7: Value Propositions

Based on the customer segments presented above, specific value propositions should be determined. These propositions will make the customer switch from an existing venture to the new venture. This decision could be based on multiple demands as reductions in price; superior performance; innovation; customization; accessibility; brand or status; design; convenience and usability; and many more (Osterwalder and Pigneur, 2010: 23). There are multiple answers to the questions set below, as some value propositions will be innovative while other will add features to existing products or services. Nevertheless, value propositions are factors under control as each venture could decide on which customer segments to target. Questions to be answered include:

 What value do you deliver to the customer?

 Which customer problem are you helping to solve?

 Which customer needs are you satisfying?

Step 8: Channels

A new venture should be acquainted with how to reach each customer segment and how to deliver value to these customers. This is done through different channels. Osterwalder and Pigneur (2010) propose five different phases, however not all of them are relevant during the new venture creation process. When each channel is well-appointed, the value propositions will find the customer segments and the other way around. This leads to great customer experience and maximizes revenues (Osterwalder and Pigneur, 2010: 27). The entrepreneur should, therefore, answer the subsequent questions:

 How will you raise awareness for your venture?

 How do you help customers evaluate the value propositions?

 How do you allow customers to purchase products or services?

Step 9: Customer Relationships

When steps 6 to 8 are described, customer relationships should be acquired and retained. With repeated purchases, the venture faces less risk in cash flow problems which is the primary cause of bankruptcy in new ventures. In this step, the network of committed stakeholders will help with retention of customers. These parties will co-create new value propositions for the venture and adapt channels where appropriate. By making use of this network, contingencies will be leveraged and relationships within this network are sustained. Questions include:

 How are you going to maintain the customer relationship?

To sum up, the customer chapter in the effectuated business plan describes ‘the environment’ as proposed by Gartner (1985). Nevertheless, this environment is under control and is therefore directly linked to effectuation. The new venture chooses which customers to segment in groups and what kind of value they demand. By making use of the suggestions from the network, the new venture knows the customer and is able to maintain a customer’s relationships. Accordingly, the market surrounding this new venture is created. In the effectuated business plan, the environment is thus based upon both causation and effectuation theories.

Chapter 4: Financial Plan

‘The process by which a venture is started’ (Gartner, 1985: 696) is the final perspective in the new venture creation process. This process is already started in chapters 1 until 4. While these chapters build upon effectuation principles, the following chapters will be inspired by the causation approach. Without a thorough financial and strategic plan, internal and external legitimacy will not be gained (Shane and Delmar, 2004; Karlsson and Honig, 2004). In addition, these chapters will confirm the rational choice of entrepreneurs to exploit an opportunity and create a feasible venture (Chwolka and Raith, 2012). For this reason, elements from the business plan approach are integrated by making use of Wickham’s (2006) business plan structure.

The financial plan shows the creditworthiness of the start-up to partners and external investors. ‘Small and young firms often have difficulty signaling their creditworthiness’ (Scholtens, 1999: 137) which is why entrepreneurs have problems in attaining external financial resources. Sources of finance are to be found in two groups which are endogenous or exogenous to the new venture. (1) Endogenous sources are influenced by the entrepreneur of the new venture. These sources are individuals with a prior social relationship with the entrepreneur, the so-called family, friends and fools (FFFs) (Kotha and George, 2012). These endogenous sources are found in the entrepreneurs’ network and are therefore already dealt with in chapter 1-step 3 of the effectuated business plan. Some new ventures could cope with the financial resources available through the network while others need additional financing. These can be found through (2) exogenous financial sources which exist regardless of the entrepreneur and her firm. Banks, business angels and venture capitalists are found in this group. Venture capitalists are not accounted for in this paper because of the so-called equity gap. ‘Venture capitalists specialize in financing larger amounts and thus find business plans with relatively small, initial capital amounts unattractive’ (Schwienbacher, 2007: 755). Banks and business angels fill this void and are therefore the most important professional capital providers in this paper. According to many scholars (Scholtens, 1999; Gregory, Rutherford, Oswald and Gardiner, 2005) this group of investors requires a business plan, which shows track records, collateral, reputations and risks, to base their investment decision on. Track records, collateral and reputation of the entrepreneur are already reviewed in chapter 1 of the effectuated business plan. Evident is the need for entrepreneurs to provide a thorough financial analysis of the new venture which is why this chapter will be based on causation theory.

The detailed financial plan suggested by Timmons and Spinelli (2004) includes; income statements, balance sheets, cash flow analysis and breakeven calculations. These financial projections will be provided in the effectuated business plan. In addition, a net present value (NPV) calculation should be added. Through these calculations the entrepreneur can signal whether a project is worth investing in. A brief explanation of these steps is provided by a book on financial accounting from Needles and Powers (2007). Questions were based on a book on managerial accounting for business decisions from Proctor (2009).

Step 10: Income Statement

financial plan as it shows whether a venture will earn an acceptable income’ (Needles and Powers, 2007: 23). A developed income statement should thus explain revenue and expense streams projected for the new venture. Questions to be answered are:

 What will be the projected revenues earned and expenses incurred?

 And will you earn a profit?

Step 11: Cash Flow Analysis

The cash flow analysis provides an insight in the inflows and outflows of cash and is seen as the blood of the venture. ‘The point of this analysis is to plan how much you need before startup, for preliminary expenses, operating expenses, and reserves’ (Score, 2012: 25). As stated, many start-ups fail because of liquidity problems with their cash flows. The cash flow analysis is based on the projections made for each year in the income statement.

 How do you project the cash inflows and outflows during a year?

 And where do you base these projections on?

Step 12: Balance Sheet

The balance sheet will incorporate the income statement and cash flow analysis in an overview of the assets from the venture against the liabilities and equity (Needles and Powers, 2007). From this overview the viability of the venture becomes evident as the total assets should never be lower as the company’s equity. This equity represents the required amount of external investment.

 What will be the proportions of the assets, liabilities and equity in the venture?

Step 13: Breakeven Calculation

Breakeven calculations are made to predict the sales volume, at a given price, required to recover total costs (Score, 2012). In other words, predictions should be made on how many customers are willing to visit the new venture and how much these customers will spend. On the one hand, this prediction can be very difficult to make as the venture is not operating yet. However, customer predictions can be made during the new venture creation process through the use of the network. In addition, committed stakeholders may provide useful information from their ventures about spending behavior of customers. Based on these facts and figures, a breakeven calculation should be made.

 How much should the venture sell at what price to breakeven with the expenses

Step 14: Net Present Value

As explained, the NPV shows the creditworthiness of the new venture by showing whether this venture is worth investing in. The NPV is based upon the accumulating cash flow calculation of every year which is discounted with a rate in order to determine its present value (Proctor, 2009). Rates vary between industries and for startups higher rates are used as the younger the company, and the greater the uncertainty of its future earning power, the larger the discount rate should be. Typically used discount rates vary between 30% and 60% for a startup (Zwilling, 2009). However, when entrepreneurs have certainty of the future earnings through the commitment of stakeholders, a 10% discount rate should be calculated as well. If the NPV calculations show a positive outcome, external investors are more likely to invest in this new venture. When the NPV shows a negative result, the investment is normally not granted.

 Will the external investment be worthwhile from the investors point of view?

A financial plan is included in the effectuated business plan as it assists entrepreneurs in their decision to exploit an opportunity. When very high investments are projected while the income statement shows limitations, the entrepreneur will be informed in order to revise her business plan. This chapter thus helps in the process of new venture creation as was suggested by Gartner (1985). In addition, the financial plan creates external legitimacy for coercive and normative pressures.

Chapter 5: Strategic Plan

made by new firms’ (Audretsch, Lehmann and Warning, 2005: 1113). An important finding of this research explains that geographic characteristics determine the location choice of ventures. This is influenced by governmental policies which aim ‘to leverage the presence of local research universities, increase the availability of venture capital, encourage a culture of risk taking, and create strong local informational and business development networks’ (Feldman, 2001: 861). The purpose of governmental policies is consistent with effectuation principles in which a network of committed stakeholders (suppliers, academics, customers, experts, entrepreneurs, government, or any other person active in a network) leverage contingencies together. In the effectuated business plan, the location of the venture will therefore be added.

Step 15: Product

According to Wickham (2006: 378) a product strategy explains ‘the way in which the product/service will be differentiated from competitors (e.g. features, quality and price)’. In other words, this step should explain why the product or service would be attractive for customers. The description of the product/service is already initiated in the description of value propositions in step 6. However, additional information should be provided in this step. Questions to be answered include:

 What will the product be made of or which services will be provided and how?

 How will the product/service be different than competitors?

 Why would customers visit your venture?

Step 16: Pricing

Pricing is a difficult strategy to determine during new venture creation as it is unknown how much customers are willing to pay. However, based on margins in the industry or suggestions provided by the network, each product/service should get a price. In this step, pricing strategies as premiums or discounts should be explained if needed. The most important factor is to explain the means of establishing these pricing strategies (Wickham, 2006).

 Which margins will you use for the products/services offered to the customer?

 Why do you choose this strategy?

Step 17: Promotion

during the opening months may also be included. Furthermore, because of social media, multiple options could be considered for free publicity. Each consideration regarding the promotion of the new venture should be described.

 How will you inform (potential) customers and stakeholders about the new venture?

Step 18: Location

In this final step, the entrepreneur should describe the location and why she believes this location will be suitable for the venture. Many different reasons could be mentioned as: easily accessible for customers and/or suppliers; suitable for a spill-over effect; close to universities; regional specifications as demography or country; and so forth. It is important to state the considerations an entrepreneur has made during the process of acquiring this location.

 Where will the venture be located?

 Why does this location suit the venture?

In the effectuated business plan, the strategic plan is the final chapter which concludes the new venture creation process. As suggested by Gartner (1985) this plan explains the process of how the venture will be created.

Figure 7 shows the theoretical integration of the main subjects in this paper. Furthermore, it presents an overview of the steps to be made during the new venture creation process. An overview of the corresponding questions is given in appendix A. The effectuated business plan not only explains how an entrepreneur starts a new venture, but also makes outsiders understand why she does it. ‘Since business planning helps to substantiate the consequences of action, it is natural to place the decision to plan before the decision to initiate the start-up’ (Chwolka and Riath, 2012: 388). In the second part of this paper, the effectuated business plan will be developed by making use of an explanatory case called Flavors of Spain.

FIGURE 7

Contents of the effectuated business plan

Effectuated Business Plan

Chapter Steps

Executive Summary

1. The Entrepreneur Step 1: Identity

Step 2: Knowledge Step 3: Own Resources

2. The Organization Step 4: Vision

Step 5: Mission

3. The Customer Step 6: Customer Segments

Step 7: Value Propositions Step 8: Channels

Step 9: Customer Relations

4. Financial Plan Step 10: Income Statement

Step 11: Cash Flow Statements Step 12: Balance Sheets

Step 13: Breakeven Calculations Step 14: Net Present Value

5. Strategic Plan Step 15: Product

3. METHODOLOGY

During the process of developing this paper a multipurpose method was used. The first step was to determine the research context. The FOS case was suggested by the University of Groningen and based on several preliminary conversations with the entrepreneurs; the need for a different kind of business plan became apparent. Furthermore, the entrepreneurs also used the effectuated principle of committed stakeholders as they interacted with their network to develop the concept. While the entrepreneurs could be viewed as effectuated, they did urge for the development of a business plan to cover both external and internal legitimacy. Based on interviews with the entrepreneurs and supervision of Prof. Dr. Zwart, the research context was determined: integrating the business plan and effectuated approaches.

The second step was to evaluate the key concepts; the entrepreneur, business planning and effectuation approaches. The three main subjects of this paper were reviewed in order to find literature gaps on which the researcher could develop the effectuated business plan. The literature reviews done in this paper, are based on information provided in top or very good journals as indicated by the University of Groningen (2012). The articles stem from multiple research fields as Organization Studies; Human Relation Management and Organizational Behavior; Industrial Relations and Labor; Innovation and Technology Management; Management General; and Micro-economics, Industrial Organization and Game Theory. The majority of the articles, 27, stemmed from the field of Entrepreneurship and Small Business Management in which the researcher wants to obtain a Masters degree.

The third step was to develop the effectuated business plan for the explanatory case FOS. The researcher used different methods for developing this plan which are displayed in table 3.

TABLE 3

Methods used developing the Effectuated Business plan for FOS

Chapter Method

1. The Entrepreneur The entrepreneurs were described by the researcher of this paper. She created the profiles based on information provided through e-mail or during interviews with the entrepreneurs. A first draft of this profile was send back to the entrepreneurs on which they provided additional information through e-mail. The researcher used this information to fully develop entrepreneurial profiles of the entrepreneurs which was again verified by the entrepreneurs themselves. Five interviews with the entrepreneurs were used to create this chapter.

3. The Customer The customer was described during an interview with the entrepreneurs, two stakeholders and the researcher. Together they made concrete customers segments on which the venture should focus. The researcher made assumptions to fill in the rest of this chapter.

4. Financial Plan The financial plan was based on assumptions made by the researcher. These assumptions were based on desk research and information provided by connections in the researchers’ network. One interview was held with an owner of a restaurant similar to the FOS concept and another interview was conducted with a manager of a retail store in Spanish products. Financial templates from Score (2012) were used to provide the necessary elements in a financial plan. In addition, Wilson (2010, 2010b and 2010c) provided information on how the financial plan should be conducted for new ventures. By making use of ratios presented by the market a preliminary financial plan was made. This plan was send back to the entrepreneurs and the connections of the researcher. The entrepreneurs behind the FOS concept did not provide information for this chapter, because they treat this information as confidential.

5. Strategic Plan A strategic plan was made by the researcher. She determined strategies based on general information provided during interviews with the entrepreneurs and desk-research. Again a revision was made based on suggestions from the entrepreneurs and the network of the researcher.

As the table shows, the effectuated business plan of FOS was based on two streams of information.

Chapters 1 until 3 were developed by asking questions from appendix A. The initiators of the FOS concept were questioned during a total of nine interviews. These interviews were either conducted face-to-face or through Skype group meetings. During these interviews, extensive probing was used to enhance information flow from interviewees. The researcher took notes which could be seen as a limitation. ‘Self-reported, retrospective data are subject to conscious or unconscious errors associated with post hoc rationalization and recall bias’ (Mason and Stark, 2004: 234). In order to overcome this limitation, the notes were sent to the entrepreneurs after every interview to verify the contents. By doing this, some of this bias was reduced, which enhances the reliability of this paper. Nevertheless, many assumptions were made in the developed effectuated business plan which is why the connections of the researchers’ network were used.

4. FLAVORS OF SPAIN

Executive Summary

Flavors of Spain is a highly ambitious concept of which the country Spain acts as the ultimate inspiration. The feeling people get when walking alongside the Riviera or visiting Madrid is unique and FOS wants to capture this feeling and use it as a cornerstone for the total concept. A pilot store with multiple products, ranging from fish to meat, from wines to sherries, brought together with the possibility to dine, will give the customer the opportunity to picture themselves in Spain. The customer can smell, taste and feel the products, experiencing the Spanish hospitality. FOS will be able to bring together not only multiple products but also multiple concepts. The FOS concept is in accordance with the latest trend described as ‘Viva Espaňa’ by Schmeinck (2012) in the latest edition of Misset Horeca. Spanish flavored products conquer the Dutch market as more and more restaurants, Bazaars, and retail shops open, that have a Spanish twist. In addition, home cooking is a thriving trend as well, as many people put a high quality dish on the table with a little bit of help from a ‘friend’. Flavors of Spain will combine both trends.

The FOS store will entail a retail department of 200m2 in which customers can obtain exclusive delicacies from Spain, furthermore this store also entails an eccentric and unique restaurant of 100m2 in which the customer could wine and dine. Both sections will use a kitchen of 100m2 in which unique product combinations will be served. Customers are treated with quality and exclusive products, which they can either easily make themselves at home, or take out to eat with friends. By offering a broad assortment of products exclusively supplied to FOS, a total quality store is born. FOS will bring Spanish hospitality with an innovative twist to the Netherlands. How? We will explain our vision in this plan. In the subsequent chapter the entrepreneurs behind FOS take central stage.

Chapter 1: The Entrepreneur

Flavors of Spain is a concept based on a passion for Spanish food and wines. With a creative and by thinking ‘out-of-the-box’, we believe the FOS concept will be unique in the market. Before we induce you with our plan, we would like to introduce ourselves.

Step 1: Identity