Business Plan for Coffee Enterprise in Vietnam

This business plan outlines the marketing strategies, financial feasibility, operational plan and action plan for launching a coffee business in Ho Chi Minh City, Vietnam. It includes assumptions, sources of capital, startup expenses, and break-even analysis.

Running head: BUSINESS PLAN FOR COFFEE ENTEPRRISE IN VIETNAM
Business Plan for Coffee Enterprise in Vietnam
Name of the Student
Name of the University
Author Note

BUSINESS PLAN FOR COFFEE ENTERPRISE IN VIETNAM
Table of Contents
Introduction......................................................................................................................................2
1. Marketing Strategies for Café Marco using the 8 P’s..............................................................2
2. Financial Feasibility.................................................................................................................5
Appendix........................................................................................................................................13
3. Operational Plan.....................................................................................................................18
2. Attainment of Financial Capital..........................................................................................19
5. Action Plan.............................................................................................................................20
References......................................................................................................................................22

BUSINESS PLAN FOR COFFEE ENTERPRISE IN VIETNAM
Introduction
The love for coffee is universal, with people of all ages and from all walks of life
showing love and fondness for this beverage in any and every way. The country of Vietnam in
Southeast Asia is no exception, with plenty of coffee lovers existing in this part of the world.
Vietnam is a country where coffee is consumed by working professionals and non-working
professionals alike, and there are several cafes and bistros in the cities and towns of Vietnam
where people are seen to go and spend their time, chatting for long hours over a delicious cup of
steaming hot brew (Fforde 2019). Opening a coffee shop in Vietnam is therefore a lucrative
prospective, given the love for coffee that prevails among every segment of the Vietnamese
population. A new coffee shop in a premier city in Vietnam will attract the attention and the
interest of coffee lovers, both young and old, and the business will be certain do well if it
implements the right strategies required for this purpose (Ahn et al. 2019). This assignment
prepares a business plan that may be followed for launching a coffee business – Café Marco in
Ho Chi Minh City in Vietnam. The business plan outlines the marketing strategies that will be
deployed including market positioning techniques, the target audience for the new business,
financial feasibility, operational plan and an action plan that will be put in place to ensure that
the business takes off in the new location in the desired manner.
1. Marketing Strategies for Café Marco using the 8 P’s
Product – The product that is going to be marketed as part of the launch of the business Café
Marco are new and exciting forms of coffee that includes different varieties of Southeast Asian
coffee derived from the beans that are grown in the coffee plantations in Vietnam and in

BUSINESS PLAN FOR COFFEE ENTERPRISE IN VIETNAM
Indonesia in addition to coffee from Brazil and coffee from the East African countries such as
Kenya. In addition to piping hot coffee, the business will also serve cold coffee with ice cream
and a number of delicious savories in the form of buns, sandwiches, coleslaws, burgers, pastries
and tarts that will be sure to cater to the taste buds of customers of every age.
Place – The place where the new café is going to be launched is in Ho Chi Minh City in
Vietnam. This is a city that is home to quite a large and diverse population and the coffee
business is sure to be able to locate its target audience when it sets up operations in a place as
cosmopolitan and as metropolitan as Ho Chi Minh City. Based on its initial success in Ho-Chi
Minh City, the management of Café Marco will later take a decision as to whether or not it
should expand operations to another city in the country (Hong 2016).
Price – In order to ensure that the new coffee and related products that are sold as part of the
Café Marco enterprise are a huge hit among the target audience, every effort will be made by the
business owners to keep the price of the new coffee as competitive and as reasonable as possible.
To begin with, a cup of coffee, be it Brazilian coffee or Indonesian coffee will not cost more than
$ 5. On the basis of how good the sales figures are in the initial stages of operation, a decision
will be taken by the management as to whether the price of the coffee should be increased or
kept as it is (Grogan 2018).
Promotion – Promotion for the new coffee enterprise in Vietnam, Café Marco is something that
is going to be carried out extensively via the use of social media. Social media platforms such as
Facebook, Twitter and Instagram will be used for creating awareness and popularity of the new
enterprise. Social media is widely used by people of every age group and by engaging in the
active use of social media for the promotion of Café Owner, the business owners will be certain
to reach out to several coffee lovers among the wide sections of the Vietnamese population in a

BUSINESS PLAN FOR COFFEE ENTERPRISE IN VIETNAM
very limited period of time. Additionally, leaflets and pamphlets that contain details about the
new business and the products on offer will be circulated at shopping malls and departmental
stores in Ho Chi Minh City (Grogan 2018).
People – The target audience for the new business Café Marco will comprise of people who are
in the age group of eighteen to sixty years. People who belong to this age group are known to
drink a lot of coffee in order to be able to study better or work better. People who belong to this
age group also have the income that is needed in order to be able to afford a coffee drink, and as
such has the purchasing power or capacity needed to buy the coffee that will be offered on sale
by Café Marco (Lee et al. 2019).
Process – The process that is going to be followed for the adequate marketing of Café Marco
and its products is going to be a relatively streamlined one. A website will be developed for the
new business and promotional strategies shall be conducted online and in stores and shopping
malls so that people are well aware of the new enterprise that is about to be launched in Ho Chi
Minh City and why they should endorse it. Every care will be taken on the part of the business
owners to package the coffee and savories in an aesthetically pleasing and environment friendly
so that customers take pleasure in consuming what Café Marco has to offer (Ahn et al. 2019).
Positioning – In order to make the new business stand out in the market, Café Marco will ensure
that the takeaway bags and containers that are provided for customers who order coffee and
savories on the go, are made of recycled paper, and as such as conducive for environmental
wellbeing. Café Marco will also be the first of its kind by being the only coffee shop in Ho Chi
Minh City that plays rock music and western classical music alternatively, for the entertainment
of its guests (Hong 2016).

BUSINESS PLAN FOR COFFEE ENTERPRISE IN VIETNAM
Physical Evidence – A logo will be developed for the new business Café Marco, will be
imprinted on the tables that are used at the venue where the coffee shop runs its operations and
which will also be printed on the bags and the containers that are used by customers who order
coffee and savories on the go. The logo will serve as evidence of the fact that the food is being
consumed at or has been brought from Café Marco and not from any other coffee shop or bistro
in Ho Chi Minh City (Fforde 2019).
2. Financial Feasibility
Assumptions
It can be seen from the given table that the follow assumptions regarding the business
will be required to be made:
1. Year-one revenue expectancy
<Product
1>
<Product
2>
<Product
3>
<Product
4>
Number of units sold annually 20,000 25,000 15,000 20,000
Average sales price per unit $50.00 $75.00 $100.00 $80.00
Annual revenue per product $1,000,000 $1,875,000 $1,500,000 $1,600,000
Total year 1 revenue $5,975,000
2. Year 1 cost of goods sold
<Product
1>
<Product
2>
<Product
3>
<Product
4>
Expected gross margin per product 10.00% 20.00% 30.00% 40.00%
Annual cost of goods sold per product $100,000 $375,000 $450,000 $640,000
Total year 1 cost of goods sold $1,565,000
3. Annual maintenance, repair, and
overhaul
Factor (%) on capital
equipment 19%
4. Number of years for straight-line
depreciation 5
5. Annual tax rate 30%

BUSINESS PLAN FOR COFFEE ENTERPRISE IN VIETNAM
6. If long-term debt is being used to
finance
operations, enter the total loan value.
110,
000
7. Account receivable and payable % 10%
Startup Capital and Investments
Sources of Capital
Owners' Investment (name & % ownership)
Your name & % ownership
$
150,00
0
Other Investor
100,00
0
Other Investor -
Other Investor -
Total Investment
$
250,00
0
Bank Loans
Bank 1
$
100,00
0
Bank 2 -
Bank 3 -
Bank 4 -
Total Bank Loans
$
100,00
0
Other Loans
Source 1
$
10,000

BUSINESS PLAN FOR COFFEE ENTERPRISE IN VIETNAM
Source 2 -
Total Other Loans
$
10,000
Startup Expenses
Startup Expenses
Buildings / Real Estate
Purchase
$
40,000
Construction 2,000
Remodeling 4,000
Other 20,000
Total Buildings and R / E
$
66,000
Leasehold Improvements
Item 1
$
2,000
Item 2 3,000
Item 3 7,000
Item 4 5,000
Total L / H Improvements
$
17,000
Capital Equipment List
Furniture
$
4,000
Equipment 5,000
Fixtures 15,000
Machinery 100,000
Other 20,000
Total Capital Equipment
$
144,000

BUSINESS PLAN FOR COFFEE ENTERPRISE IN VIETNAM
Location and Admin Expenses
Rental
$
10,000
Utility Deposits 20,000
Legal and Accounting Fees 3,000
Prepaid Insurance 3,000
Pre-opening Salaries 2,000
Other 2,000
Total Location and Admin Expenses
$
40,000
Opening Inventory
Category 1
$
1,000
Category 2 2,000
Category 3 2,000
Category 4 2,000
Category 5 -
Total Inventory
$
7,000
Advertising and Promotional Expenses
Advertising
$
2,000
Signage 2,000
Printing 3,000
Travel & Entertainment 5,000
Other / Additional categories 1,000
Total Adv and Promo expenses
$
13,000
Payroll and payroll taxes
Expense 1
$
20,000

BUSINESS PLAN FOR COFFEE ENTERPRISE IN VIETNAM
Expense 2 10,000
Total Payroll and payroll taxes
$
30,000
Summary Statement
Sources of Capital
Owners' and Other Investments
$
250,000
Bank Loans 100,000
Other Loans 10,000
Total Source of Funds
$
360,000
Startup Expenses
Bldgs / Real Estate
$
66,000
Leasehold Improvements 17,000
Capital Equipment 144,000
Location / Admin Expenses 40,000
Opening Inventory 7,000
Advertising / Promo Expenses 13,000
Other Expenses 30,000
Total Startup Expenses
$
317,000
From the given tables it can be seen that the total start up capital has come to $317000
which includes various expenses like leaseholds, capital equipment, opening inventory,
advertising expenses and buildings as well as real estate requirements.
Break even analysis

BUSINESS PLAN FOR COFFEE ENTERPRISE IN VIETNAM
Fixed Expenses
Fixed Expenses
Bldgs / Real Estate
$
66,000
Leasehold Improvements 17,000
Capital Equipment 144,000
Location / Admin Expenses 40,000
Opening Inventory 7,000
Advertising / Promo Expenses 13,000
Other Expenses 30,000
Total Fixed Expenses
$
317,000
Variable
Expenses
Inventory or Materials 30%
Direct labor (includes payroll taxes) 20%
Other expenses 10%
Other expenses 5%
Salaries (includes payroll taxes) 2%
Supplies 2%
Total Variable Expenses 69%
Breakeven Sales level = $319,202.50
Break even period
Year 1 Year 2 Year 3 Year 4 Year 5
Net income (loss)
-
$319,202.
50
$3,003,197
.22
$3,063,885
.24
$3,188,179
.51
$3,382,341.
50
$3,656,948.
52
Cumulative income
$2,683,994
.73
$5,747,879
.96
$8,936,059
.48
$12,318,400
.97
$15,975,349
.49
Positive Cash Flow? TRUE TRUE TRUE TRUE TRUE
Undiscounted break
even year 1 years
Actual break even
period 0.11 years
Hence, the Breakeven sales is 319202$ and the undiscounted Break even period is 1 year

BUSINESS PLAN FOR COFFEE ENTERPRISE IN VIETNAM
Income statement
Year-by-year profit and loss assumptions
Year 1 Year 2 Year 3 Year 4 Year 5
Annual cumulative price
(revenue) increase - 2.00% 4.00% 6.00% 8.00%
Annual cumulative inflation
(expense) increase - 2.00% 4.00% 6.00% 8.00%
Interest rate on
ending cash balance 0.50% 0.50% 0.50% 0.50% 0.50%
Year
1
Year
2
Year
3 Year 4 Year 5
Revenue
Gross revenue
$5,975
,000
$6,094
,500
$6,338
,280
$6,718,
577
$7,256,
063
Cost of goods sold
$1,565
,000
$1,596
,300
$1,660
,152
$1,759,
761
$1,900,
542
Gross margin
$4,410
,000
$4,498
,200
$4,678
,128
$4,958,
816
$5,355,
521
Other revenue
[source] $0 $0 $0 $0 $0
Interest income $0 $0 $0 $0 $0
Total revenue
$4,410
,000
$4,498
,200
$4,678
,128
$4,958,
816
$5,355,
521
Operating expenses
Sales and marketing
$13,00
0
$13,26
0
$13,79
0
$14,61
8
$15,78
7
Payroll and payroll
taxes
$30,00
0
$30,60
0
$31,82
4
$33,73
3
$36,43
2
Depreciation
$45,40
0
$46,30
8
$47,21
6
$48,12
4
$49,03
2
Maintenance, repair,
and overhaul
$27,36
0
$27,90
7
$28,45
4
$29,00
2
$29,54
9
Total operating
expenses
$115,7
60
$118,0
75
$121,2
85
$125,4
77
$130,8
00
Operating income
$4,294
,240
$4,380
,125
$4,556
,843
$4,833,
339
$5,224,
721
Interest expense on
long-term debt $3,958 $3,146 $2,301 $1,422 $509
Operating income before other items
$4,290
,282
$4,376
,979
$4,554
,542
$4,831,
916
$5,224,
212

BUSINESS PLAN FOR COFFEE ENTERPRISE IN VIETNAM
Loss (gain) on sale of
assets $0 $0 $0 $0 $0
Other unusual
expenses (income) $0 $0 $0 $0 $0
Earnings before taxes
$4,290
,282
$4,376
,979
$4,554
,542
$4,831,
916
$5,224,
212
Taxes on income 30%
$1,287
,085
$1,313
,094
$1,366
,363
$1,449,
575
$1,567,
264
Net income (loss)
$3,003
,197
$3,063
,885
$3,188
,180
$3,382,
341
$3,656,
949
Cumulative income
$3,003
,197
$6,067
,082
$9,255
,262
$12,63
7,603
$16,29
4,552
Therefore, from the given analysis, it can be rightfully understood that, the venture will
turn out to be a profitable event with considerable investments in the beginning but long lasting
returns in the long run.
Operational Plan

BUSINESS PLAN FOR COFFEE ENTERPRISE IN VIETNAM
Appendix
Balance sheet
Assets
Initial
balance Year 1 Year 2 Year 3 Year 4 Year 5
Cash and short-term
investments $43,000
$1,739,
534
$3,424,
385
$5,129,
294
$6,886,
423
$9,001
,382
Accounts receivable $597,500
$609,45
0
$633,82
8
$671,85
8
$725,60
6
$725,6
06
Total inventory
$1,792,500.0
0
$1,828,
350.00
$1,901,
484.00
$2,015,
573.04
$2,176,
818.88
$2,176
,819
Prepaid expenses 0 0 0 0 0 $0
Deferred income tax 0 0 0 0 0 $0
Other current assets 0 0 0 0 0 $0
Total current assets $2,433,000
$4,177,
334
$5,959,
697
$7,816,
725
$9,788,
849
$11,90
3,807
Buildings $66,000 $66,000 $66,000 $66,000 $66,000
$66,00
0
Land 0 0 0 0 0 0
Capital improvements
$
17,000 17,000 17,000 17,000 17,000 17,000
Machinery and equipment
$
144,000 144,000 144,000 144,000 144,000
144,00
0
Less: Accumulated
depreciation expense 0 45,400 91,708 138,924 187,048
236,08
0
Net property/equipment $227,000
$181,60
0
$135,29
2 $88,076 $39,952
($9,08
0)
Goodwill $0 $0 $0 $0 $0 $0
Deferred income tax 0 0 0 0 0 0
Long-term investments 0 0 0 0 0 0
Deposits 0 0 0 0 0 0
Other long-term assets 0 0 0 0 0 0
Total assets $2,660,000
$4,358,
934
$6,094,
989
$7,904,
801
$9,828,
801
$11,89
4,727
Liabilities
Initial
balance Year 1 Year 2 Year 3 Year 4 Year 5
Accounts payable $156,500
$159,63
0
$166,01
5
$175,97
6
$190,05
4
$190,0
54
Accrued expenses 0 0 0 0 0 0
Notes payable/short-term
debt 0 0 0 0 0 0
Capital leases 0 0 0 0 0 0
Other current liabilities

BUSINESS PLAN FOR COFFEE ENTERPRISE IN VIETNAM
Total current liabilities $156,500
$159,63
0
$166,01
5
$175,97
6
$190,05
4
$190,0
54
Long-term debt from loan
payment calculator 110,000 $89,691 $68,570 $46,603 $23,759 ($0)
Other long-term debt $0 $0 $0 $0 $0 $0
Total debt $266,500
$249,32
1
$234,58
5
$222,58
0
$213,81
3
$190,0
54
Other liabilities 0 0 0 0 0 0
Total liabilities $266,500
$249,32
1
$234,58
5
$222,58
0
$213,81
3
$190,0
54
Eq
uity
Initial
balance Year 1 Year 2 Year 3 Year 4 Year 5
Owner's equity (common)
$
250,000
$250,00
0
$250,00
0
$250,00
0
$250,00
0
$250,0
00
Paid-in capital 0 0 0 0 0 0
Preferred equity 0 0 0 0 0 0
Retained earnings 0 0 0 0 0 0
Total equity $250,000
$250,00
0
$250,00
0
$250,00
0
$250,00
0
$250,0
00
Total liabilities and
equity $516,500
$499,32
1
$484,58
5
$472,58
0
$463,81
3
$440,0
54
Cash flow
Year 1 Year 2 Year 3 Year 4 Year 5 Total
Operating activities
Net income
$3,003,19
7
$3,063,88
5
$3,188,18
0
$3,382,34
1
$3,656,94
9
$16,294,5
52
Depreciation $45,400 $46,308 $47,216 $48,124 $49,032 $236,080
Accounts receivable ($11,950) ($24,378) ($38,030) ($53,749) $0
($128,10
6)
Inventories ($35,850) ($73,134)
($114,08
9)
($161,24
6) $0
($384,31
9)
Accounts payable $3,130 $6,385 $9,961 $14,078 $0 $33,554
Amortization 0 0 $0 $0 $0 $0
Other liabilities 0 0 $0 $0 $0 $0
Other operating cash
flow items 0 0 $0 $0 $0 $0
Total operating
activities
$3,003,92
7
$3,019,06
6
$3,093,23
8
$3,229,54
9
$3,705,98
1
$16,051,7
61

BUSINESS PLAN FOR COFFEE ENTERPRISE IN VIETNAM
$0
Investing activities $0
Capital expenditures $0 $0 $0 $0 $0 $0
Acquisition of business 0 0 0 0 0 $0
Sale of fixed assets
($1,287,0
85)
($1,313,0
94)
($1,366,3
63)
($1,449,5
75)
($1,567,2
64)
($6,983,3
79)
Other investing cash
flow items 0 0 0 0 0 $0
Total investing
activities
($1,287,0
85)
($1,313,0
94)
($1,366,3
63)
($1,449,5
75)
($1,567,2
64)
($6,983,3
79)
Financing activities
Long-term
debt/financing ($20,309) ($21,121) ($21,966) ($22,845) ($23,759)
($110,00
0)
Preferred stock 0 0 0 0 0 0
Total cash dividends
paid 0 0 0 0 0 0
Common stock 0 0 0 0 0 0
Other financing cash
flow items 0 0 0 0 0 0
Total financing
activities ($20,309) ($21,121) ($21,966) ($22,845) ($23,759)
($110,00
0)
Cumulative cash flow
$1,696,53
4
$1,684,85
1
$1,704,90
9
$1,757,12
9
$2,114,95
8
$8,958,38
2
Beginning cash balance $43,000
$1,739,53
4
$3,424,38
5
$5,129,29
4
$6,886,42
3
Ending cash balance
$1,739,53
4
$3,424,38
5
$5,129,29
4
$6,886,42
3
$9,001,38
2
Loan Repayment Schedule
Annual interest rate 4.0%
Monthly rate 0.33%
Loan amount
110,00
0
Term of loan
(months) 60
Payment
($2,022.27
)
Month
Principal
balance
Principal
payment
Interes
t
Paymen
t
1 $110,000 ($1,662) ($36 ($2,0

BUSINESS PLAN FOR COFFEE ENTERPRISE IN VIETNAM
0) 22)
2 108,338 (1,668)
(355
)
($2,0
22)
3 106,670 (1,673)
(349
)
($2,0
22)
4 104,997 (1,679)
(344
)
($2,0
22)
5 103,319 (1,684)
(338
)
($2,0
22)
6 101,635 (1,690)
(333
)
($2,0
22)
7 99,945 (1,695)
(327
)
($2,0
22)
8 98,250 (1,701)
(322
)
($2,0
22)
9 96,549 (1,706)
(316
)
($2,0
22)
10 94,843 (1,712)
(310
)
($2,0
22)
11 93,131 (1,717)
(305
)
($2,0
22)
12 91,414 (1,723)
(299
)
($2,0
22)
13 89,691 (1,729)
(294
)
($2,0
22)
14 87,962 (1,734)
(288
)
($2,0
22)
15 86,228 (1,740)
(282
)
($2,0
22)
16 84,488 (1,746)
(277
)
($2,0
22)
17 82,742 (1,751)
(271
)
($2,0
22)
18 80,991 (1,757)
(265
)
($2,0
22)
19 79,234 (1,763)
(259
)
($2,0
22)
20 77,471 (1,769)
(254
)
($2,0
22)
21 75,702 (1,774)
(248
)
($2,0
22)
22 73,928 (1,780)
(242
)
($2,0
22)
23 72,148 (1,786)
(236
)
($2,0
22)
24 70,362 (1,792) (230 ($2,0

BUSINESS PLAN FOR COFFEE ENTERPRISE IN VIETNAM
) 22)
25 68,570 (1,798)
(224
)
($2,0
22)
26 66,772 (1,804)
(219
)
($2,0
22)
27 64,968 (1,810)
(213
)
($2,0
22)
28 63,159 (1,816)
(207
)
($2,0
22)
29 61,343 (1,821)
(201
)
($2,0
22)
30 59,522 (1,827)
(195
)
($2,0
22)
31 57,694 (1,833)
(189
)
($2,0
22)
32 55,861 (1,839)
(183
)
($2,0
22)
33 54,021 (1,845)
(177
)
($2,0
22)
34 52,176 (1,851)
(171
)
($2,0
22)
35 50,325 (1,858)
(165
)
($2,0
22)
36 48,467 (1,864)
(159
)
($2,0
22)
37 46,603 (1,870)
(153
)
($2,0
22)
38 44,734 (1,876)
(146
)
($2,0
22)
39 42,858 (1,882)
(140
)
($2,0
22)
40 40,976 (1,888)
(134
)
($2,0
22)
41 39,088 (1,894)
(128
)
($2,0
22)
42 37,194 (1,901)
(122
)
($2,0
22)
43 35,293 (1,907)
(116
)
($2,0
22)
44 33,386 (1,913)
(109
)
($2,0
22)
45 31,473 (1,919)
(103
)
($2,0
22)
46 29,554 (1,926) (97)
($2,0
22)
47 27,629 (1,932) (90) ($2,0

BUSINESS PLAN FOR COFFEE ENTERPRISE IN VIETNAM
22)
48 25,697 (1,938) (84)
($2,0
22)
49 23,759 (1,944) (78)
($2,0
22)
50 21,814 (1,951) (71)
($2,0
22)
51 19,863 (1,957) (65)
($2,0
22)
52 17,906 (1,964) (59)
($2,0
22)
53 15,942 (1,970) (52)
($2,0
22)
54 13,972 (1,977) (46)
($2,0
22)
55 11,996 (1,983) (39)
($2,0
22)
56 10,013 (1,989) (33)
($2,0
22)
57 8,023 (1,996) (26)
($2,0
22)
58 6,027 (2,003) (20)
($2,0
22)
59 4,025 (2,009) (13)
($2,0
22)
60 2,016 (2,016) (7)
($2,0
22)
3. Operational Plan
1. Attainment of Human Capital
In order to run its business in a lucrative manner and over an extensive period of time,
Café Marco will have to hire a staff of at least 10 to 15 members who will be responsible for
managing the place and for handling and looking into the needs and requirements of visitors,
while looking into takeaway orders at the same given time. The business will employ using
online recruitment techniques at least 15 dedicated staff members who have sufficient experience

BUSINESS PLAN FOR COFFEE ENTERPRISE IN VIETNAM
and who are also of age, and who are willing to work in a coffee shop for at least four to six
hours in the day (Mai et al. 2019).
2. Attainment of Financial Capital
The business has to procure the funding or the financial capital that is needed to give the
enterprise the kick start that is necessary. For this purpose, the business owners will invest fifty
percent of their own capital. The remaining fifty percent of the funds that are required for setting
up the enterprise in Ho Chi Minh City will be obtained by applying well in advance for financial
loans from reputed international banks and financial institutions that are in operation in Ho Chi
Minh City (Mai et al. 2016).
3. Risk Assessment
The venue where the coffee shop is going to be set up is an area that is going to be
examined for risks such as fire, damage and decay. A risk assessment team will be hired by the
business owners to carry out an investigation of the venue and inform accordingly whether it is
alright for setting up a business enterprise. At least three to four possible venues will be explored
in Ho Chi Minh City for this purpose, to make sure that when the business ultimately launched, it
is done so at a venue that is not only strategically situated but which is safe for visitors to spend
their time at. Fire extinguishers will be purchased and installed in specific locations of Café
Marco so that they can be utilized if an unfortunate occurrence like a fire outbreak or related
mishap is seen to take place (Mai et al. 2018).
4. Estimation of Project Life Span, Project Sustainability and Exit Strategy
An estimate will be arrived at by the business owners of Café Marco that will give
stakeholders a tentative idea about the shelf life of the business. To begin with, the business will

BUSINESS PLAN FOR COFFEE ENTERPRISE IN VIETNAM
aim for a shelf life of 5 years, given the love and demand for new forms of coffee in Vietnam.
The project, if it is able to raise sufficient revenue in the initial stages of its operation, will be
sustainable enough for long term growth and expansion. Efforts will also be made to carry out
operations in a manner that is environmentally conducive, using earth friendly equipment so that
the business does not invoke the ire of environmental conservationists in Vietnam. In the event
that the business fails to do well in the initial stages of the operation, the assets will be sold and
the liabilities shall be closed (Nevins and Pelusso 2018).
5. Action Plan
1. Attainment of Financial Capital – 6 Months
The first stage of the action plan for setting up Café Marco will involve the attainment of
financial capital. Loans will be applied for, and only after loans have been procured and other
funds including capital provided by the business owners have been duly invested will the next
stage of the action plan kick off (Nguyen and Sarker 2018).
2. Venue Selection – 2 Months
Once funds have been attained, a venue will be selected in Ho Chi Minh City that will serve as
the base for business operations. The assistance of premier real estate companies in Ho Chi Minh
City will be enlisted for this purpose.
Once the venue has been selected, a contract will be entered into with the owner of the
venue for leasing the venue for a certain period of time, that is, for a year or two, before the lease
is renewed (Ahn et al. 2019).
3. Engagement and Agreement with Suppliers and Distributors

BUSINESS PLAN FOR COFFEE ENTERPRISE IN VIETNAM
The next important stage of the action plan will involve getting in touch with suppliers and
distributors in Ho Chi Minh City, who will be responsible for supplying all the food ingredients
and the raw materials that will be required for the successful running of the business (Grogan
2018).
4. Attainment/Recruitment of Human Capital
The next stage will entail hiring business staff, including the chefs who will be responsible
for making the delicious savories and coffee that will make customers keeping wanting to visit
Café Marco again and again (Grogan 2018).
5. Online and In-Person Promotional Activities
The recruitment of staff for the business will be followed by promotional activities that are
carried out online as well as in person regarding the new business and its offerings. Social media
advertising and promotion will be engaged in and people will be appointed for distributing
leaflets and pamphlets about the new business at shopping malls and departmental stores in Ho
Chi Minh City (Hong 2016).
6. Inauguration of the New Business
Following three months of promotional activity, the new business will be launched through a
process of inauguration in Ho Chi Minh City, with premier delegates from the Ho Chi Minh City
administration being invited to carry out the inauguration procedure (Fforde 2019).

BUSINESS PLAN FOR COFFEE ENTERPRISE IN VIETNAM
References
Anh, N.H., Bokelmann, W., Thuan, N.T. and Van Minh, N., 2019. Smallholders’ Preferences for
Different Contract Farming Models: Empirical Evidence from Sustainable Certified Coffee
Production in Vietnam. Sustainability, 11(14), pp.1-26.
Fforde, A., 2019. From plan to market: The economic transition in Vietnam. Routledge.
Grogan, L., 2018. Labor market conditions and cultural change: evidence from Vietnam. Journal
of Human Capital, 12(1), pp.99-124.
Hong, T.T.K., 2016. Effects of Exchange Rate and World Prices on Export Price of Vietnamese
Coffee. International Journal of Economics and Financial Issues, 6(4), pp.1756-1759.
Lee, H., Dang, M.A. and Lee, G., 2019. A STUDY ON EVALUATING THE LOGISTICS
SERVICE QUALITY FOR VIETNAM COFFEE INDUSTRY. International Journal of Supply
Chain Management, 4(1), pp.8-19.
Mai Phuong, N., Vaast, P., Pagella, T., Nguyen, L. and Sinclair, F.L., 2019. Local knowledge on
the role of trees in coffee agroforestry systems of Northwest Vietnam. CIRAD
Mai, T.C., Shakur, S. and Cassells, S., 2016. Price Asymmetry of Coffee Beans: Evidence from
Vietnam (No. 1959-2017-2848).
Mai, T.C., Shakur, S. and Cassells, S., 2018. Testing vertical price transmission for Vietnam's
Robusta coffee. Australian Journal of Agricultural and Resource Economics, 62(4), pp.563-575.

BUSINESS PLAN FOR COFFEE ENTERPRISE IN VIETNAM
Nevins, J. and Peluso, N.L. eds., 2018. Taking Southeast Asia to market: Commodities, nature,
and people in the neoliberal age. Cornell University Press.
Nguyen, G.N. and Sarker, T., 2018. Sustainable coffee supply chain management: a case study in
Buon Me Thuot City, Daklak, Vietnam. International Journal of Corporate Social
Responsibility, 3(1), p.1