Business Plan for Coffee Connection

This business plan provides an overview of Coffee Connection, including market analysis, competitors analysis, marketing and pricing strategies, operations plan, and financial requirements.

Business Plan

Table of Contents
Table of Contents.............................................................................................................................2
Introduction......................................................................................................................................3
Overview of business plan...............................................................................................................3
Macro environmental overview.......................................................................................................3
Market analysis and industry analysis.............................................................................................4
Competitors analysis........................................................................................................................4
Marketing and pricing strategies......................................................................................................5
Operations plan................................................................................................................................6
Swot analysis...................................................................................................................................6
Financial requirements.....................................................................................................................7
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

Introduction
The entrepreneurs are required to be concerned about different fundamental of marketing in
order to make sure that they can successfully start a business and attract huge amount of
customers. There are a number of factors that are influencing on entrepreneur starting a business.
The following business plan is based upon an entrepreneurial operation called coffee connection
(Jukova, Ilina and Zotova, 2019). It is a great concept of cultural and social interaction where
people can socialise with each other without using their cell phones in the cafe. The following
report consist of a business plan, Macro environmental overview, industrial and competitive
analysis along with various factors such as marketing, pricing, swot analysis and financial
requirements to start the business.
Overview of business plan
Project will be launching in London and the idea of the shop is to make sure that the people
visiting are involved into cultural and social relationships rather than being indulged in their cell
phones. It is a great way to bring sustainability and peace in life of people. The time is provided
to customers so that they can relax and have some freshly brewed coffee interacting with their
friends and families. This project is started with the name of “the coffee connection” which will
be launched in next six months operating ideally.
Macro environmental overview
It is necessary for entrepreneur to consider the external business environment in which the
business will be operating. There are a number of problems or opportunities that can be created
in this environment for a business plan. When taking coffee connection into consideration it is
necessary to take care of these factors. PEST analysis is used in order to understand the external
factors affecting business plan:
Political factors: Political factor refers to the macro environmental factors that are depicting the
government rigidity in and of economy. Due to the prevalence of party system in United
Kingdom the chances to expand business under the same policies in UK is easy for coffee
connection. However the introduction of Brexit in United Kingdom have limited the scope of
expanding the business to Europe as there are a number of legal issues involved. This can be a
negative effect on Coffee connection of the political environment.

Economic factors: Economic factors refer to the inflation rate, development of economy,
exchange rate of currency and so on. Development of economy in United Kingdom is creating
great opportunities for coffee connection. However growing income factor have a negative
impact on consumer as the amount of money they spend each year is increasing and they are
likely to spend on high-quality product rather than spending on beverages like coffee.
Social factors: The social factor comprises of all the different social and cultural beliefs of
people in a country which is affecting their lifestyle as well (Galai, Hillel and Wiener, 2016).
The demand of people to experience new things and unique ways of consuming coffee is a great
opportunity for the business. However when people are choosing for healthy food and drinks
they would rather prefer a juice then coffee with high amount of caffeine in it. This is a negative
aspect of social factors for coffee connection.
Technological factors: These are the factors that explain that changing technology have great
impact on the business. When taking coffee connection into consideration it is necessary that
business is operating successfully with new technological advancement and taking leverage from
it. If the genetic engineering for food and beverage industry is not applied in the business it can
also create negative results for business.
Market analysis and industry analysis
In today’s century coffee culture is growing which is leading demand of more cafes
throughout the world. There are a number of leading companies in the industry which are serving
best services to the customers coming to them. Coffee connection requires to build connection
with huge businesses in order to market their services. It becomes necessary for business to
successfully work in industry. However hospitality industry requires huge amount of training for
employees working in it. This also leads coffee connection to make sure that they are
successfully training and developing their employees in order to make sure that the quality of
service they provide to their consumers are up to the mark.
Competitors analysis
There are a number of organisations running same business in United Kingdom. The
competition for coffee connection is huge in the market and it is necessary for them to identify
the strategies of leading companies in the market in order to serve best services to their
customers. Some of the important competitors of coffee connection are as follows:

The attendant: It is a coffee roaster company in London which is aiming to make sure that they
have successfully open a number of their outlets throughout England. They are targeting self-
sufficient and sustainability of organisation. The logo of their company is launching is the first
letter of their name which is signifying beginning, origin and also reflecting the ethics.
Climpson and sons: It is one of the famous East London Café which focuses on involving coffee
in London. The company is realistic and ideal working upon seriously increasing the range of
techniques they are using in order to extract the best flavors for their customers. The company
majorly focuses on quality as well as flavour of the products they are providing in market which
will help them to sustain for a longer period of time.
However when looking at coffee connection the company has a competitive advantage as
the products which are served lower in prices and also the quality of the products are good. They
can focus upon students, families, customers and also take advantage of separate food court for
the consumers who prefer to have healthy food while having coffee with them.
Marketing and pricing strategies
Marketing: There are a number of different ways which can be used by coffee connection in
order to successfully market their products (Tipu, 2019). However being a new entrepreneurial
set up it is required by company to manage their budget as well. In order to manage budget and
market their product companies using social media platforms for promotion. It is a great way
which will help the business to reach out to maximum number of consumers. Also the major
target of business is millennial and almost every millennial these days is active on different
social media platforms. Organisation can also successfully post pictures of happy consumers on
their social media platforms which will help in attracting more consumers.
Pricing: The organisation is successfully using value based pricing for all the products they are
selling in their cafe. Value based pricing is a method in which the prices for products and
services are derived from the satisfaction level which are gained by the customers while they are
experiencing the services or utilizing the products. Due to the huge competition present in
market and economic factors providing the products at a cheaper price will not help coffee
connection and will prove that the quality of products and services sold by them or not up to the
mark. Therefore it is required by organisation to make sure that they are using value based
pricing and the customer need to pay for the amount of satisfaction they are gaining from using
the products and services of coffee connection.

Operations plan
In order to successfully run a cafe there are a number of requirements in operation of the
plant. The first and major requirement will be the raw materials that are to be used by coffee
connection in order to produce coffee and food they will be provided in cafe. In order to acquire
raw materials transportation will also be required by organisation (Hopp and Greene, 2018). The
premises of coffee connection will have two different departments for serving coffee as well as
healthy food. I don’t with this there will be parking places allotted outside the café. There are a
number of different requirements for the kitchen where all the operations will be taking place. In
order to successfully set up the kitchen there are a number of appliances required along with
human resource that can successfully run all those appliances. When looking for suppliers of the
raw materials required by coffee connection, local producers are motivated to provide coffee
beans. Along with this the companies focusing on development of the society and using the
products from local producers will help them to contribute towards society as well. It is a great
way which will also help the organisation to successfully increase their brand value.
Swot analysis
Below mention is this what analysis of business plan:
Strengths: The major strength of coffee connection is unique idea that they have derived which
will enable people to connect socially with each other. In today’s world use of cell phone have
occupied minds of people and providing them with the place where they can relax and connect
with their friends and family is a measure strength that coffee connection can use in order to
promote themselves.
Weaknesses: There are a number of consumers who will not accept the idea of coffee connection
as they think using cell phones is a daily part of their life. Also there are a number of work that is
attached to using cell phone these days. Along with this huge requirement of capital for
marketing policies can also be a weakness for the organisation as it would be difficult for the
entrepreneur to arrange huge capital in the beginning.
Opportunities: Increasing crowd of Millennial in United Kingdom is a great opportunity for
coffee connection to successfully run their business. The cafe will majorly attract young people
who are looking to connect socially and it is a great opportunity which will help in increasing
customer base for the café (Gabler, Panagopoulos and Rapp, 2017). Along with this use of social

media platforms to market the product will also provide huge opportunity for coffee connect to
reach out to their customers and provide best services to them.
Threats: The competition for coffee connection in market is very high. It is a great threat for the
company. There are a number of huge chains of cafes that are international as well as local
running throughout United Kingdom (Katz, 2018). Setting up a business and facing competition
with these competitors can be a great threat for coffee connection.
Financial requirements
Huge financial requirements will be required in order to set up the business. The business
plan is aiming to successfully set up the cafe with a startup cost of €25,000. This cost will
include the cost of equipment’s which is €7000, furniture for €5000, premises on rent lease for
which will cost them €8000 along with opening stock for €5000. The cafe is expected to generate
€15,000 every month which will help in meeting all the operational cost along with fixed and
running cost. The breakeven point for business can be achieved after three months when all the
start-up cost invested in business is achieved bank and the cafe is generating permanent revenues
in order to meet its fixed and running cost successfully.
Conclusion
With the help of the above discussion it can be concluded that the viability of business
provided the competition in market for coffee is good. It is necessary to make sure that the plan
which is made can be successfully executed and profits can be generated from them. The
examination of various market sources and business environment has made it easy for the
entrepreneur to develop a business plan which can be beneficial in the coming period of time.
Along with this it is also necessary for the entrepreneur to make sure that all the opportunities are
kept in mind and the risk of businesses are managed as soon as they face it. Along with this the
entrepreneur also requires to successfully use the marketing policies in order to make sure that
they can grab attention of consumers towards the project along with forming strong and loyal
consumers for their business.

References
Books and Journals
Gabler, C.B., Panagopoulos, N. and Rapp, A., 2017. Developing an environmentally sustainable
business plan: An international B2B case study. Corporate Social Responsibility
and Environmental Management, 24(4), pp.261-272.
Hopp, C. and 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), pp.320-351.
Tipu, S.A.A., 2019. Business plan competitions in developed and emerging economies. Journal
of Entrepreneurship in Emerging Economies.
Galai, D., Hillel, L. and Wiener, D., 2016. How to create a successful business plan: for
entrepreneurs, scientists, managers and students. World Scientific.
Jukova, E.E., Ilina, I.Y. and Zotova, A.I., 2019. Planning a new business: typical mistakes of a
business plan in the service sector. Journal of Environmental Management &
Tourism, 10(3 (34)), pp.441-447.
Katz, J.A., 2018. The business plan: reports of its death have been greatly exaggerated. In Annals
of Entrepreneurship Education and Pedagogy–2018. Edward Elgar Publishing.