1.The Business – The business Idea.
Jeff and Carmen have a business idea of creating a coffee shop concentrating primarily on selling seriously good quality coffee. They will sell food as a side to the coffee. Are plan to transform the established tea rooms into a coffee shop that sells good quality coffee. The shop will be located in the CBD, situated where it attracts good foot traffic volume and is situated on the commute paths for workers in the CBD. The shop will provide the best quality coffee in town.
2.The Market
Competitive advantage
This shop has a competitive advantage over others in the area because: location, it will be situates best to attract foot traffic and commute traffic. It will be the only shop in the CBD that sells very good coffee. Service will be good and fast attracting return customers.
A differentiation focus than others
Size and type of market segments.
There will be 2 main target markets:
Professional people. By professional people I mean mid aged people (20 to 50 years old) both male and female who work (and perhaps live) in the vicinity of the business. They will have office jobs, and they will have regular breaks through out the day. Part of their daily routine will be to purchase good coffee and food, especially at lunch time. They have disposable incomes, so they will be able to afford to purchase coffee products. These people will be the target market as they will have a desire for seriously good coffee. Opening hours will be planned to to get a possible before work coffee market, and a possible on the way home coffee market. Our plan to serve food as well will help with the attraction of customers for a lunch time coffee. This main market segment is estimated to be 58 000 pa in size.
The Business plan on Starbucks Coffee Market Customer
... at their locations.They should have online ordering of coffee so when business people need to go fast they can order online ... current and future growth.In the current high coffee market Starbucks has a good market share and are opening location across the ... Currently Starbucks global coffee market is very competitive, and must compete against the likes of restaurants, coffee shops, and street carts. ...
The other market which will be targeted in the foot traffic in the CBD. This is made up of “house wives”, tourists, students, shoppers, etc. The shop will have good seating and clean rest rooms to help attract this market. As well as good signage and location. This market is estimated to be 10 000 month in winter and 20 000 month in summer.
Marketing objectives and goals in the 1st year of operation.
Cost
To analyse cost of sales on a weekly basis in the 1st 3 months of operation and adjust costs accordingly without comprising quality or product service.
Quality
To develop and introduce a quality measurement system and improve the quality of product and service over the 1st year of operation.
Availability
To analyse customer peak and off peak periods after 6 months of operation and adjust hours or opening accordingly.
Flexibility
To analyse coffee making and customer service operations on a monthly basis in the 1st 3 months of operation and adjust operations for optimum flexibility without comprising quality.
In the 1st year of operation the business will use the marketing required to get the business known in the CBD and make it an attractive place for people to come for good quality coffee.
3.Product Range – Production range and goals for the 1st year of operation.
The shop will supply all the products that you customer may want. Main coffees (ie long black, espresso, cappuccino) both in full strength and decafe. That the customers will drink in the shop or take away. Tea, hot chocolate and fluffies. As well as the range of cold drinks, coke, juice, water, etc. You will also need food. Typical cafe food, a range sandwiches, hot food and muffins for lighter meals and a range of sweet slices for snacks. We will also sell the coffee beans we use to customers so they can drink your coffee at home. It is essential that us and our staff have a good knowledge of your product range that you can relay to customers when required.
The Essay on Cost Of Goods Sold
A figure of cost of goods sold reflecting the cost of the product or good that a company sells to generate revenue, appearing on the income statement, as an expense. Also, referred to as "cost of sales." It is essentially a cost of doing business, such as the amount paid to purchase raw materials in order to manufacture them into finished goods. For example, if a $10 widget costs $6 to make, then ...
Availability of the products going to be sold has been researched and they are all from an sustainable source. There will be many suppliers. A good supply of coffee beans has been established,this is from a good international firm who are well established currently supplying other similar shops in NZ. A coke representative has been approached and will be used for the cold drinks and they also supply a fridge to house the drinks in. The wholesaler Gilmours will be able to supply other consumables. If there happen to be any problems with supply from one of the suppliers there is flexibility as all of the products used have multiple suppliers.
Monthly accounts will be run with all the suppliers as buying on credit can be one of the cheapest forms of borrowing.
All the products supplied in the shop will be of high quality.
4.Location
The cafe is to be housed in an existing tea rooms. The existing tea rooms is run down and at the end of its cycle. The shop will be re decorated making it tidy and vibrant. The size of the existing tea rooms is sufficent. There will be enough room for a well laid out shop as well as a staff room, toilets, kitchen, stock room, office, etc. The location is excellent in terms of location for attracting the main markets. It is on a corner giving it good exposure, and is located in a busy part of town. It is also on the main through fare between the CBD and train, bus stops, and parking buildings making it idea for foot traffic. All the essential services required for the coffee shop are present at the location, ie power, water, gas, telephone, sewer and transport network routes, etc.
The existing tea rooms will be purchased. This has been considered in terms of financial considerations and deemed to be the best for this situation. A lawyer will be used for purchase of the property to ensure all legal issues associated with this purchase are done correctly. Ie title search, possible caveats, can owner sell?, met earthquake and hygiene standards.
The Essay on Canada Business Cost Lowest
The image of Canada is not as favorable internationally as it should be. Therefore, developing an appealing brand identity has become an important part of attracting international investment to Canada, since its image is more prone to misconception while US has a strong brand image that does not require much active promotion internationally. Thus, Canada needs the help of a branding strategy to ...
Purchase costs
The business owners are purchasing an existing tea rooms facility for $50 000. This includes the costs of real estate agent and solicitor fees. The location of the premises is close to the CBD and with such a prime location would be attractive to buyers in the future.
Occupancy costs
The business owners will be paying rates of $xxx per month and will be responsible for the maintenance and up keep of the property, both inside and out side. There are no other building maintenance fees or costs liable.
Capacity costs
The owners intend to fit out the premises to ensure maximum potential occupancy by the business with a seating capacity of 50 customers.
Utilisation
The business is planning on the floor space to be fully utilised for the café operations and there are no plans for subdivision of the property floor space for other use at this stage.
5.Sources of supply
(take this info from the case study)
6.Essential services
(take this info from the case study)
7. Finance
Calculations for the Financial feasibility of the business.
combined annual living expenses = $30 000
Gross income before tax required to leave them with $30 000 * 1.5 = $45 000 Money invested in assets = $100 000
rate of return on assets= 10%
Return annually from business = $100 000 * 10% = $10 000
income required from the business = $45 000 + $10 000 = $55 000 Avg net profit as % of sales for this business 25%
amount of sales necessary to generate income required
$55 000 / 25% = $220 000
The business will be financially viable if it can generate sales of $220 000 per year.
Start up costs budget.
One off start up costs associated with the set up of this business:
Purchase of site (establised tea rooms, cake shop) $ 50 000
Re decorating of shop $ 30 000
Advertising / marketing $ 15 000
coffee making equipment$ 25 000
forward order of stock$ 20 000
Lawyer fees (purchase of land)$ 1500
Uniforms$ 1500
Staff costs (recruiting)$ 1000
Entity costs$ 1500
Mics$ 4500
Total Start up budget costs $ 150 000
The Essay on Business Management Flower Shop
There are many different fields in the business world. Business Management is the largest field in the corporate world. It takes responsibility, skill and determination to form a successful business of any type. There are numerous areas within a business that need the skills of management. Control of expenses, payroll, time management, and to initially raise capital to start a business all are ...
Return on investment
A return of investment of $150 000 of 33.3% will be targeted in the 1st year of operation. This implies a net profit before tax of $49 950. (states $100 000 as the investment but they are now borrowing $50 000 and putting in $100 000 of their own, $150 000 in total)
8.Establishment Requirements.
(I) Legal and Regulatory compliance
There are a number of Legal and Regulatory compliance rules/laws that we will have to comply with. Café is in the hospitality industry, there is legislation around the serving of food, storage of food, and they will undertake audits to give the premises used a pass and a rating. The land you are using for the premise is the correct zone for the use intent ended. The business type is partnership. IRD have their own tax laws to do with partnerships, you need to be aware of what taxes you are liable for, also you will have to be GST registered and pay GST. There are also a range of other legislation that you must comply with when employing staff. Weather the staff are permanent, part time, casual or on a fixed term contract you will have to comply with:
Employment relations act 2000
Holidays act 1981
Human rights act 1993
Equal pay act 1972
Min wage act 1983
Wages protection act 1983
H & S employment act 1992
ACC insurance 1992
Parental leave and employment protection act 1987
Kiwi Saver
(II) Staffing needs
Other staff will be required to ensure the business is run effectively and to enable you to put you expertise into practice as the owners of the business. Be aware that you have to follow the rules of the Employment relations act
when employing staff.
Jeff – Decorating shop, stock ordering, Staff
Carmen – wages, PAYE, Tax, Insurance,
up to 4 waiting staff to be employed before start up.
(III) Technology Requirements
You will require a number of technology requirements to make smooth running of the business possible. You will require a computer for the business. It will have many uses for the business, from keeping track of business accounts, to designing a company web site and doing weekly staff wages. The computer will be fully utilised if it has internet access, Then things like internet banking and web sites can be used. You also may want to consider in having free web site access to customers which enables them to use their laptop at you coffee shop on your internet. Many business now promote them selves on the inter net through digital media such as face book or twitter. Having a internet capable computer will make this possible.
Business Plan for Toy Shop
They are used for decorations by adults and for education & play by children. Toys are also being used for entertainment and child development. Plastic toys, along with soft toys (mainly dolls) and board games, make up about 80% of the Indian market in value terms. The change that is discernible is the decline in Importance of board games (other than puzzles), which involve play by a group ...
There are many computer software programmes available to help in the running of the business. MYOB is one that will be used to do the business accounts through to doing the weekly wages and keeping an eye on stock levels. They are very powerful and useful tools. You will also require EFTPOS facilities (able to take credit cards), a till, or cash register that is capable of taking customers orders, tallying up the amount and giving change. You will require telephones for the business. You will also require cabinets for food and drink storage, as well as the coffee grinder/making equipment. More things will be identified when you are in the setting up phase of the business.
(VI)Advices and external services.
External services offered by many companies (ie IRD Starting up a business, Citizens advice bureau) will be used when required. Help may also be sought from your accountant, and lawyer when and where required.
9.Initial Risk Assessment
Demand – From studies carried out about demand for the product the following conclusions can be met. There is a large volume of foot traffic past the shop front daily 5000. If 2% of these people stop in the shop then a 100 customers a day can be expected at the shop. That is more than is required to keep the shop profitable. With the service level kept high at all times it is expected that there will be a lot of return customers pushing this number up higher in the months after opening.
Competition. There is no real direct competition in the CBD. There is some in direct competition from fast food outlets, bakery and petrol stations in the CBD who also serve coffee and food. They do not however serve fine quality coffee. There is no real direct competition in the central CBD.
Capability- This is going to be easy for this business as there is no real direct competition for fine coffee in the CBD. There are other establishments selling coffee in the CBD, but none selling fine coffee, this is how we plan to distinguish our product from the rest, seriously good quality coffee.
The Business plan on Coffee Shop
1.EXECUTIVE SUMMARY One Stop Cafe is taking advantage of the coffee shop rage that has been sweeping the country. Along with taking advantage of this trend, the cafe is also planning for the future. The Cafe is also marketing itself as a full service restaurant to maintain stability, in case the coffee trend begins to fizzle. One Stop Cafe is a theme coffee shop. It is provides customers with high ...
10.Priorities
The priority for the business in the 1st year of operation will to be come a well established and known coffee house to the people of the CBD who know it for always supplying a seriously good coffee. More specifically they are:
1. Finalise premises purchase (on approval of bankloan)
2. Commence fit out
3. Complete local council H&S registration requirements
4. Purchase initial start up stock
Question 2
Objectives of the presentation.
The objective of the presentation is to paint a picture of the business to the bank manager. To show him it is a good sustainable business idea and to get the bank manager to give the business a loan to enable the business to start up successfully.
Goals of the presentation.
We have listed the goals of our presentation below:
To show the bank manager that the business is sustainable (through the business proposal)
To get the bank manager to “buy in” on the idea and give the business a loan.
To make the presentation easy to follow to make the presentation well structured and free flowing..
To establish a good working relation ship with our suppliers.
To operate our business in an environmentally friendly way, Ie limit disposable cups.
Having the working capital available to ensure out cash flow is easy to manage through out the year.
To provide a place where customers can relax, drink coffee and enjoy.
To provide a place where there are clean rest rooms and good facilities for our customers.
Strategy of the presentation
Both Jeff and Carmen have a good knowledge of cafe operations, we both know what is required to make the cafe work well. This is our opportunity to set up a business for our selves. Our strategy to achieve our goals will rely a lot on what we have learnt about cafe operation over the years. Below is a basic strategy we will use to achieve our goals.
Obtain a site that is suitable for our planned cafe.
Redecorate the buildings to get the required atmosphere.
Get the necessary equipment for our shop to run smoothly.
Decide on a menu and pricing.
Hire staff to help with tasks.
Train staff into correct customers handling procedures and train them in the systems we will be using (ie ordering procedures).
Get staff uniform made so all staff are tidy and well presented.
Ensure that on opening day all staff are well trained, know the menu well, and know the systems well.
Ensure that once the shop is in operation we constantly go over the systems and lay out to ensure the shop remains a trendy and profitable business for years to come.
Presentation Structure
Introduction
We plan to open a coffee shop in the CBD to supply seriously good coffee. We have done research into this to see what potential markets we would have and the possible competition. Both are looking very favourable, there is a very high number of foot traffic passing our possible site daily and there is currently no coffee shops in the area selling high quality coffee at present. A lot more of this information, and information at more depth can be seen in our attached business proposal.
Present business proposal
We currently have $100 000 between us to start this business. We are seeking another $50 000 towards the establishment of this business. This will give us $150 000 in total to set up this business. We initially thought that out money would be sufficient to establish our business, but with the completion of the business proposal we were able to establish that we need more than we have to start up the business. We are approaching you, the Bank Manager to help us finance our business so we can turn this business in to reality.
Conclusion
We have done our home work around the establishment and running of this business and believe it will be both very profitable and successful business. We are confident in saying this from the facts we have found in completing our Business proposal and also the information and knowledge we both hold from working in the hospitality industry.
