Business Plan for Coffee Shop - Sigma Cafe in Sydney

This report prepares a business plan that can be used to launch a brand new café known as Sigma Café in a certain suburb of Sydney. The report concludes with useful recommendations that ought to be taken into consideration for the successful implementation of this business plan.

BUSINESS PLAN
FOR COFFEE
SHOP
Name of the student
Name of the university
Author Note

EXECUTIVE SUMMARY
 Coffee is quite a popular beverage in the Australian
city of Sydney as a result of which there are many
coffee shops or cafes in operation over here.
 The average Australian is known to love coffee
quite a lot and is seen to hang out in cafes and
bistros that sell numerous varieties of coffee for
long hours in the day, chatting and engaging with
professional and personal acquaintances.
 This report prepares a business plan that can be
used to launch a brand new café known as Sigma
Café in a certain suburb of Sydney.
 The report concludes with useful recommendations
that ought to be taken into consideration for the
successful implementation of this business plan.

INTRODUCTION
 The love of coffee in the city of Sydney is quite well
known, with coffee being considered the most popular
and much loved beverage here.
 There are many bistros and coffee shops that the
youth as well as the middle aged and old aged people
in Sydney like to visit to relax, unwind and consume
hot and cold coffee of different varieties (Tucker,
2017).
 This report prepares a business plan for the launch of
a new venture known as Sigma Coffee in the suburbs
of Sydney.
 The report concludes with effective recommendations
that ought to be taken into consideration for the
successful launch and continuation of the Sigma
Coffee business in the city of Sydney.

ABOUT THE COFFEE
MARKET IN SYDNEY
 Coffee is one of the most favored of beverages in
the city of Sydney, as much as tea, if not more.
 People of all ages, be it people in their teens,
people who are working professionals or people
who are tired, all love to drink coffee and spend
time at cafes and bistros that serve interesting
and exotic varieties of coffee.
 The coffee market in Sydney is growing and
developing at a steady pace, with professionals
and non professionals buying and consuming
coffee in sufficient quantity, largely because it
coffee invigorates their senses and helps them to
be productive throughout the day (Tucker, 2017).

ABOUT SIGMA CAFÉ
 Sigma Coffee is a brand new coffee shop
venture in the city of Sydney in Australia that
aims to provide coffee lovers in the city with
the option to choose from different varieties
of Ethiopian, Brazilian and Ethiopian coffee.
 In addition to so many types of exotic coffee,
visitors at this coffee shop will also get to
choose from a wide array of savories, both
vegetarian and non vegetarian.
 The coffee shop is jointly owned by Mark and
Judy Spencer, a working couple in Sydney
whose dream it has always been to establish
a café in the city of Sydney.

BUSINESS RESOURCES
 The financial resources for this business
will be derived from loans that are
applied for by the business owners, as
well as a certain amount of personal
capital that both owners are willing to
invest, in the business (Blackwell,
2017).

BUSINESS AIMS AND
OBJECTIVES
 To become a leading café in the city of
Sydney within the first year of its
operation
 To cater to the interests and
requirements of coffee lovers of all ages
 To incur a profit margin of fifty percent
at least within the first six months of
operation (Burns & Dewhurst, 2016).

MICRO ENVIRONMENT
ANALYSIS – SWOT
 Strengths – Sigma Café is going to serve its
target audience in Sydney with different
types of exotic coffee to choose from, which
is bound to catch their interest and attention.
 Sigma Café is serviced by a loyal and
dedicated team of ten members who will
work night and day to make sure that the
coffee venture is a success.
 The Sigma Café will be situated in a strategic
part of Sydney where it can be accessed
easily by all segments of the city’s
population (Hopp & Greene, 2018).

SWOT ANALYSIS
 Weaknesses – Sigma Café will not have
substantive seating arrangements and will be
able to house only fifteen people within the
café premises at a time.
 It will thus not be in a position to
accommodate large sections of its target
audience.
 Sigma Café will not be able to run operations
for long hours in the day due to the fact that it
is serviced by only ten staff members.
 It will remain open only from three in the
afternoon to eight in the evening (Hopp &
Greene, 2018).

SWOT ANALYSIS
 Opportunities - The love for coffee among people
living in Sydney implies that the Sigma Café is
going to get plenty of opportunity to grow and
expand (Hopp et al., 2018).
 Threats - Since Sigma Café is a small business
and since it also provides its customers only with
exotic varieties of coffee like Brazilian coffee,
Indonesian coffee and Ethiopian coffee, it will not
be able to make its coffee available at too low a
price.
 It may lose out customers therefore to many of
the large scale cafes and bistros in Sydney that
sell coffee and savories for lower prices (Hopp et
al., 2018).

COMPETITIVE
POSITIONING
 On the basis of the theory of competitive
advantage, the owners of Sigma Café will make
sure that this new business stands out from
other coffee shops in the city of Sydney in a
number of different ways.
 Sigma Café is the only café in Sydney that will
play western instrumental music within the café
premises in its hours of operation, something
that is bound to soothe and relax visitors to the
café.
 Sigma Café will also make sure to serve
complimentary chocolates with the coffee drinks
that are expensively priced, pleasing customers
more in the process (McKeever, 2016).

MARKET SEGMENTATION
 Demographics – The Sigma Café will have a target
audience that is comprised of all coffee lovers in the city
of Sydney, be it young people, old people, middle aged
people, people who are working or people who are still in
their student years (McKenzie, 2015).
 Psychographics – The Sigma Café will cater to people
who are fond of drinking coffee and who are fond of
spending their free time or leisure at coffee shops,
chatting with their friends and associates and catching up
on things (McKenzie, 2015).
 Behavioral – Sigma Café will cater to a target audience
that is fond of being present physically in a coffee shop for
the consumption of this beverage rather than ordering for
it online through the use of an app (McKeever, 2016).

MARKETING MIX
 Product – The products that are being
marketed are the exotic varieties of coffee
beverages such as Ethiopian, Brazilian and
Indonesian coffee in addition to mouth
watering savories at the Sigma Café in
Sydney (Scarborough, 2016).
 Place – The Sigma Café will be opened in a
strategic part of the city of Sydney, preferably
in a Sydney suburb, where it will be far from
the madding crowd but where people from
main town Sydney can travel to and from
without any hassle (Scarborough, 2016).

MARKETING MIX
 Price – The Sigma Café will try to keep
its coffee drinks and savories very
competitively priced in order to capture
the interest and attention of its target
audience.
 It will keep a coffee drink priced at an
average of $ 20, which may be more
than what other cafes charge for a
single cup of coffee in Sydney, which
will still draw the interest of the target
audience given that it is exotic coffee
that the Sigma Café is offering
(McKeever, 2016).

MARKETING MIX
 Promotion – The Sigma Café will make
extensive use of social media platforms like
Twitter, Instagram as well as Facebook to
promote its new coffee venture.
 Leaflets and pamphlets about this new coffee
shop will also be circulated at shopping malls
and super markets in downtown Sydney.
 The Sigma Café will also be serviced by its very
own website that people can visit to know more
about the people behind this new venture, the
beverages and savories being offered here, the
prices at which these are being offered and the
location of the café (McKeever, 2016).

RECOMMENDATIONS/
CONCLUSION
 Sigma Café should take the following factors into
consideration in order to operate successfully in the
city of Sydney –
 It should procure the resources that it needs to set
up its business by approaching lenders and financial
institutions in the city that are of repute instead of
reaching out to small scale lenders. Only then can it
bank reliable source of funds over the long term that
will help it to run its business successfully (McKenzie,
2015).
 The Sigma Café should obtain feedback from its
within three months of the launch of its operations to
gain an idea of the areas in which services can be
improved in order to draw a wider clientele
(Blackwell, 2017).

REFERENCES
 Blackwell, E. (2017). How to prepare a business plan: your guide to
creating an excellent strategy, forecasting your finances and producing a
persuasive plan. Kogan Page Publishers.
 Burns, P., & Dewhurst, J. (Eds.). (2016). Small business and
entrepreneurship. Macmillan International Higher Education
 Hopp, C., & Greene, F. J. (2018). In pursuit of time: Business plan
sequencing, duration and intraentrainment effects on new venture
viability. Journal of Management Studies, 55(2), 320-351.
 Hopp, C., Greene, F. J., Honig, B., Karlsson, T., & Samuelsson, M. (2018).
Revisiting the influence of institutional forces on the written business
plan: a replication study. Management Review Quarterly, 68(4), 361-398.
 McKeever, M. (2016). How to write a business plan. Nolo.
 McKenzie, D. (2015). Identifying and spurring high-growth
entrepreneurship: experimental evidence from a business plan
competition. The World Bank.
 Scarborough, N. M. (2016). Essentials of entrepreneurship and small
business management. Pearson.
 Tucker, C. M. (2017). Coffee culture: Local experiences, global
connections. Routledge.