Business plan : Sky-view café

Running head: BUSINESS PLAN
Business Plan
Name of the Student:
Name of the University:
Author’s Note:

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Executive Summary
The assignment aims at creating a business plan for the newly startup company which will be
operating in the form of café cum restaurant. The business plan would be operating primarily in
the field of food and beverages section and would be operating primarily in the form of food and
beverages section in the Australian Region. The newly start-up business would be operating with
the name of Sky-view café that would be operating as a fast food retail chain selling a range of
fast foods and beverages to the consumers. The key customer base for the company including the
customer relationship carried out by the company. Market in which the company would be
operating and the various aspects of the market has been well recorded down in the analysis
section. From the view point of operations and technological support that the company would be
using for the better control of operational activity has been noted down. The financial analysis of
the company on the other hand has been drawn for a sum of three years whereby relevant
changes in the financials of the company has been taken into consideration.

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Table of Contents
Business Overview..........................................................................................................................3
Analysis...........................................................................................................................................3
Business Model Canvas...............................................................................................................3
Market..........................................................................................................................................4
Operations and Technology.........................................................................................................7
Human Resources........................................................................................................................8
Finance.........................................................................................................................................9
References......................................................................................................................................11

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Business Overview
One of the key business which every entrepreneur hopes to join is in the food and
beverage industry. The same has been well considered by us in our new start-up plan also
whereby we have planned for opening up a new café, which would be selling beverage like
Coffee and other fast food items. The planned business would be offering a range of beverages
and food products so that it can well cater the various business needs and various demands for
the product quantity demanded. Sky-view Café can well grow their business in a big scale as
business venture proposed is indeed rewarding for the entrepreneur, irrespective of the scale one
intends to well start in their business (Wagner 2019). The key market for such type of business is
typically seen on an expanded basis whereby the market demand for these products and services
are generally high making the business start-up a reward-able one. The different ranges of
beverages in the coffee section that the company would be offeri0ng will be in the range of
espresso, cappuccino, iced coffee, filtered coffee, Turkish coffee, coffee with whipped cream and
various other flavoured coffee. The demand for coffee and snacks has increased at a sustainable
rate which is driven by increased consumer spending, higher disposable income and positive
economic outlook (O’Donnell and Dahl-Popolizio 2018).
Analysis
Business Model Canvas
Key
Partners
 Banks
 Business
Partners
Key
Activities
Selling Fast
Food and
Beverages
Providing a
range of café
services.
The food and
beverages
section will be
Value
Propositi
on
High and
better
quality of
services.
Lower cost
of services
which
would be
provided by
Customer
Relationshi
ps
Emphasizing
and focusing on
the needs and
demands of the
customers.
Customer
loyalty and
retention by
providing great
Customer
Segments
Business
Corporates,
College Students,
Working
Professionals and
Couples would be
the key customer
segments that the
business would be
focusing on.

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wide in terms of
various coffee
and foods
sections
including
Chinese, Italian
and Continental.
the cafe.
Building a
brand image
of the
business.
foods at
competitive rate.
Key
Resources
Skilled and
Experienced
Staff capable of
handling various
business related
services would
be the key
resources.
Channels
Company developed
website.
Social Media
Interaction in
Facebook, Instagram
and Snap-chat for
Business Services.
Cost Structure
 The company is trying to reduce
its cost with the help of the key
assets that would be bringing
technological advancement
along with proper utilisation of
asset base. The key costs that the
company would be incurring will
be in the form of salaries, rent
and direct cost of materials.
Revenue Streams
 The revenue flowing to the cage would
be determined solely with the help of
sales that the company would be
making by selling a range of fast foods
and beverages. The estimated revenue
base for the first year is expected to be
around $250,000 and the same is
expected to well grow at a 10% of
market penetration rate (Kahn and
Baum 2020).
Market
The market analysis of the newly proposed business can be well designed with the help
of the trends that is seen in the industry and the growth that is in particular seen from the food
and beverage industry (Costa et al., 2017). The location of the business helps us well analyze the
demand and other market segmentation related information that might be crucial and has been
well analyzed in the given section below:
Size of the Market: The coffee business in the Australian Region has well grown to an
expandable levels and the same can be well seen from the growth that has been observed in the
coffee industry. Coffee addicts usually go out for having a cup of coffee and the same can be

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well analyzed with the help of the coffee business that is evolving in the market (Kremer,
Rizzuto and Case 2019).
Growth Rate of Industry: Revenue for the cafes and coffee shops have grown tremendously
and this has been particularly due to the supporting and vibrant coffee culture. The revenue
associated with revenue is expected to grow at a modest rate of 2.5% which was well observed in
the historical time frame of 2014-2019. It is important to note increasing competition and
increasing competitors in the café industry have further pushed down the profitability of the
industry considerably. Keeping the same into mind it is well estimated that the revenue for the
analyzed industry in particular is expected to well grow at a moderate rate over the next five
years as compared to previous growth rate of historical five-years (Landa, Lillehei and Wolter
2016). The industry revenue is underpinned and expected to well grow at an annualized rate of
1.7% over a trend of five years which is from 2020-2024. The key reason for the slow growth on
the other hand, can also be attributed to the low barriers to entry in this particular industry which
makes the industry or the café business to be competitive.
Expected Trend: The growth trend rate that is expected from the industry in the time period
analysed will be varying however on an average it is expected that the growth rate of revenue
will be around 1.7% and this has been well estimated by keeping the various business and
industry related factors as shown below:

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The growth trend rate that is expected from the coffee industry would be positive and the same
would be positively affecting the business activities and the operations which the new start-up
business aims at conducting.
Market Segmentation: The market segmentation for the Sky-view café can be broadly divided
into University Students, faculty, people working in the office that are located close to the café.
Our market research well shows that the working professionals, Students and couples would be
the key market upon which the new start-up will be emphasizing and focusing on. The demand
for gourmet and coffee products will be determined solely based on the various customers to
which the company can reach out by marketing its various range of services that it would be
catering. However, it is well estimated that students, teenagers and office worker would be
forming up the key customer base for the company.
Key Players in Market: Consumers nowadays prefer places that offer them with an associate
general quality, ambience and experience for the time they spent. Quality is much more
emphasised rather than quantity and the key market players operating in the industry have been
keenly focusing on the same. The key competitors operating in the Australian Region in
Melbourne is Brother Baba Budan, ACoffee, St. Ali Coffee Roasters, Bonnie, Dukes Coffee
Roasters, Seven Seeds Coffee Roasters and the League of Honest Coffee are some of the key
competitors that are operating in the Melbourne Region of Australia.

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Location of Business: The location of the business will be in the Melbourne Region and from
the view point of quantifying the customer base it is estimated that around 25,000 customers
would be visiting the café and they would be making up the total customer base for the company
(McCready and Molls 2018).
Operations and Technology
To cope up with the present competitive market condition and to rule the market, the
business house should take help of certain advance technological development. When it comes to
coffee business, customer’s satisfaction is one of the most important factor that needs to be
maintained. There are endless number of coffee shops and the shop owners really needs to
implement innovative strategies to stand out from the crowd and to attract more customers (Yu
2018). The POS terminal system in the shop should be facing the customers thus they can keep a
follow up regarding their inputs orders can even offers some tips may be on-screen tips, pre-set
tips and many more that would beneficial for the shop. Maintaining a Customer Relationship
Management (CRM) system would be extremely helpful and profitable for the business. CRM
system collects all required and valuable information of the customers and records the data for
future use. Cafes can have a record of their customers such as which customer spend the most,
what are customers preference and which items are mostly ordered by the customers. Coffee
shops should be flexible at providing numerous number of orders at a time and team should be
prepared to quickly-deliver the placed orders. A modern system Revel can be used by which
menu can be changed in real time. Revel can takes into account numerous number of modifiers
to make each order perfect. Various gift cards should be given to the loyal and regular customers
thus maintaining a healthy customer satisfaction.
Resources required for development of Coffee Shop: Each businessperson should have a clear
objective before starting any business. Essential concept and strategies are vital for every
business to start with excellence. The first thing that every entrepreneur should do is to align the
budget to the ambitious. The foremost thing is to select an area where the business activities
would be carried on. Rent is one of the significant factor that affects the cost of the company. As
coffee shop is a volume business, it is extremely important to make each investment because the
foundation for growth of the business depends on it. A two-group espresso machine can be
purchased that can easily make number of coffees required for a day. It is essential to recognize

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the strengths and seek supports from experts where there is need. Even though at the initial stage
there may be some additional financial expenses however, for proper planning and execution of
the all, the investment plans accounting professionals are needed. As this business is related to
food and beverages, core skills should be implemented into the business as in coffee industry
quality is the major factor that attracts customers. By purchasing high quality coffee beans will
not fulfil the requirement, adequate knowledge and skills is required for using the beans in an
efficient manner to produce a full-flavored coffee.
Human Resources
Ownership Structure: The ownership structure of a coffee shop is important, as it is the base of
the business and all instruction regarding what activities to be performed are directed by the
owners of the business. The legal policies, the funding options, and many more rules and
regulations to be keep in mind before starting a business. The ownership structure includes
partnership, sole proprietorships and limited liability companies. Brand name and recognition is
vital to attract pool of customers. Immediate visibility in the market can be acquired if the coffee
shop can take coffee franchises, it will attract the trust of the customers and even quality can be
maintained. Skilled labour should be hired those can easily operate the coffee machines and
equipment’s and can provide best services to the customers. Innovative marketing campaigns
and advertisement plans should be made beforehand to avoid any further complication relating to
marketing strategies in the business. To start a coffee business, it requires a lump sum investment
even the initial costs may include the cost of leasing a retail space. To make the business
successful and to achieve profitable results, the ownership structure has to be strong and
effective.
Management Role: The persons who invest money are not only the owners of the company who
takes all decisions of the company. Many other bodies play significant role in the development
process of the organization such as entrepreneur, manager, technical expert and many more. It is
the entrepreneur innovative ideas that will lead to profitability of the business. The entrepreneur
decides what how much to invest in business and which area is to be given priority so that
effective results can be achieved and growth of the business becomes possible. The managers are
the persons who execute the plan decided by the entrepreneur. The management prime
responsibility is to form an adequate decision making process that will be beneficial for the

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company. The performance of the all the departments are assess by the managers and report is to
be submitted to the top executives for valuation and verification. The technical experts takes care
of the manufacturing process and try to implement innovative ideas by which cost reduction can
be done. The experts utilizes the resources to the best possible way and produce productive
results that ultimately leads to high quality product due to which customer satisfaction is
achieved.
Finance
The projected revenue base that would be flowing to the company would be primarily in
the form of selling of foods and beverages that the company would be selling in the form of fast
food and beverages. The financial projection has been done for a sum of three years for the
company whereby relevant projection for the company will be done. The key cash inflows and
cash outflows that the company will be experiencing has well been written down. In order to
well asses down the viability or the profitability of the company, return generated on investment
done has been deployed for assessing the overall feasibility (Masciocchi 2019).
Revenue Analysis: The revenue in the first year of operations for the company is expected to be
around $250,000 and the same is expected to well grow at a rate of 1.5% which is the estimated
industry growth rate. The selling price per unit for the coffee would be around $4-$10 and the
same would be dependent on the flavour and variant of beverage desired by the consumer. The
other revenue base that the business expects to generate will be coming from the sales of fast
foods, which on a combined basis would be making to a total of $250,000 (Katz 2018).
Start-Up Cost: The start-up cost that the company would be incurring will be in the form of the
fixed cost and capital expenditure costs that they would be incurring and has been well
accounted. The total monthly start-up cost that the company would be incurring will be around
$91,450. On the other hand, the total amount invested in the start-up assets would be around
$400,000 which would be in the form of Equipment, Vehicles and Property. The operational cost
for the company would be around $91,450 and the same would be growing at the rate of 10% for
the company.
Financing: The initial amount of capital that would be required for the purpose of financing the
project would be around $600,000 and the same would be well financed with the help of equity
and debt financing for the company. The initial set of equity investment for the company will be

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around $500,000 and the same is expected to well grow at a 10% rate. On the other hand the debt
financing will be contributing the next amount of $100,000 for the company and the same would
be charged at the rate of 10% in the form of interest rate payable for the company.
Profitability and Return on Investment: The expected amount of profitability that is generated
from the business ink the first year is expected to be around $23,660 which is around 5% return
on the investment done. In the second year, it is expected that the numbers would be around
$23,924 which is around 5% return and in the third year the same will be around $22,323 which
states around 4% for the return generated on investment done.

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