Assignment Financial Plan of Cozy Coffee Shop

Cozy coffee shop
Financial Plan

Table of Contents
Introduction......................................................................................................................................2
Sales strategy...................................................................................................................................2
Sales forecast...................................................................................................................................3
Personnel plan..................................................................................................................................4
Financial plan...................................................................................................................................5
Projected Cash flow statement.....................................................................................................7
Projected profit and loss statement..............................................................................................9
Projected Break-even point........................................................................................................11
Projected Balance sheet.............................................................................................................13
References......................................................................................................................................16

Introduction
In this present paper, we will discuss the financial plan of a coffee shop, namely Cozy coffee
shop which is located in Hill head, Byres road at Glasgow. The paper also describes the sales
strategy, sales forecast, and personnel plan, projected cash flow, projected profit and loss
statement, projected break-even, and projected balance sheet.
It is an independent coffee shop which serves various items to the consumers such as coffee
drinks, pastry, and bakery. Various coffee shops are located in the same area, so the company
will be distinct its environment by playing live piano and relaxing ambience for the clients which
helps to provide a competitive advantage to the company (Nadiri et al., 2013). The piano will
play for five hours a day. The financial plan helps to take strategic decisions by forecast the
financial health and efficiency of business (Masari et al., 2014).
Sales strategy
The sales and marketing strategy of the company is to build a loyal customer base by focusing on
attracting customers by serving high quality of food products at affordable price. The online
advertisements are done through social media in order to promote the brand in the eyes of the
consumers. Discounts and offers are provided at festive seasons which helpto attract a large
number of consumers, and that directly impacts on the sales volume of the company (Arrondel et
al., 2014). In order to provide a high quality of service on time, the two employees are required
to serve in which one will take the order and another one will handle sales transactions. The
feedback of consumers will take in order to improve the quality in a customised manner. The
banners and fliers are also used to promote the brand.

Sales forecast
The cost of food is assumed at 30% for coffee beverages, 25% on soft drinks and 35% for retail
pastries and bakery. The sale forecast of three years is projected below:
Sales forecast
Sales Year1 Year2 Year3
Coffee beverage
GBP
340,000.00
GBP
374,000.00
GBP
411,400.00
Bakery
GBP
75,000.00
GBP
82,500.00
GBP
90,750.00
Soft drinks
GBP
50,000.00
GBP
55,000.00
GBP
60,500.00
Pastries , others
GBP
145,000.00
GBP
159,500.00
GBP
175,450.00
Total sales
GBP
610,000.00
GBP
671,000.00
GBP
738,100.00
Direct cost of
sales
Coffee beverage
GBP
102,000.00
GBP
112,200.00
GBP
123,420.00
Bakery
GBP
26,250.00
GBP
28,875.00
GBP
31,762.50
Soft drinks
GBP
12,500.00
GBP
13,750.00
GBP
15,125.00
Pastries , others
GBP
50,750.00
GBP
55,825.00
GBP
61,407.50
Total direct
costs
GBP
191,500.00
GBP
210,650.00
GBP
231,715.00