business plan of Livets Krus cafe

BUSINESS PLAN

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Business plan...........................................................................................................................1
2. Name of the business..............................................................................................................2
3. A visual identity of business...................................................................................................2
4. Creating the value in order to promote as a business..............................................................2
TASK 2............................................................................................................................................3
Market research 1. The primary research for the business plan..................................................3
2. The secondary research for business plan...............................................................................3
3. What is quantitative research of business plan.......................................................................3
4. What is qualitative business research......................................................................................3
TASK 3............................................................................................................................................4
1. Dilemma facing by the business.............................................................................................4
TASK 4............................................................................................................................................5
1. Complying with Equality and Diversity law when selecting applicants.................................5
2. The right that the new employees have...................................................................................5
TASK 5............................................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business plan is very essential before starting new venture. It helps in providing all the
necessary information that has to be undertake in order to start a business. The present report is
based on a business plan of Livets Krus cafe. A business plan structure will be discussed which
involves a research methodology. The report will depict the ethical dilemmas that has been faced
by cafe. A budgeted cash flow of Livets Krus cafe will be prepared.
TASK 1
1. Business plan.
Starting a business is a tough task for a new entrepreneur, thus before starting a new
venture it is very essential to plan every aspect in order to start a new one. A new business plan
is being prepared to start a cafe called Livets Krus cafe.
 The industry in which the cafe will operate is hospitality industry. Cafe will be going to
serve different varieties of beverages along with starters.
 Location of Livets Krus cafe would be near University and in a local street of Manchester
city, U.K.
 The location is appropriate to attract the target customer which is the students in
university and the youth who come to the market (Zimmerer and Scarboroug, 2012).
The business model is explained as below:
 Key activities: The main activities of Livets Krus cafe is to provide the best quality food
and beverages to youngster as per their needs and preferences of taste.
 Cost structure: The sources of fund to start a business will be taking loans from a bank
and some with personal savings. Average budget in order to start a cafe is 20000 pounds.
 Customer segments: The main target customers would be the youth and students of
university, buy cafe will also target the customers who visit the local market.
The objective of the business would be increase the profitability of the Cafe and
established its identity in industry by providing quality and best food and beverages to customer
and satisfying their needs.
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2. Name of the business.
Livets Krus cafe
3. A visual identity of business.
4. Creating the value in order to promote as a business.
The concept of business plan will include providing fine dining concepts, plan unique
service style and a great menu of different varieties of beverages and starter or snacks.
Convenient location and excellent customer services will help in promoting and building a
steady customer base for the Livets Krus cafe. The new cafe is intended to attract the students
and youth by providing them great ambience and sitting place. The most important thing is order
to create a value for the business to provide the best and faster customer services. As the youth
and students are more impatient the order should be taken and delivered timely which will assist
in promoting and established customer loyalty (Levy, Weitz and Grewal, 2012). It is prominent
to understand that customer come more often if the service would be best and much faster than
others.
Other than the youngsters the cafe will also target the customers that visiting the near
marker area. The menu will be prepared in a way that will attract all types of customers. The
price of beverages and snacks should be reasonable in order to look at the perceptive of students
and youths. Along with this, business unit will also lay emphasis on treating personnel equally.
In other words, firm will not discriminate employees on the basis of race, age, gender etc.
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Further, business entity will also not involve in any unethical practices which in turn negatively
impact the interest or benefit of stakeholders such as personnel.
TASK 2
Market research 1. The primary research for the business plan.
Before starting up the cafe it is most important to do market research in order to analyse
the needs and preferences of customers which they are intended to look in a cafe to visit for. The
primary research will assist in direct studying the targeted customers. The owner of cafe can visit
to university, directly ask to students and youngster what they preferred in order to visit a cafe.
Primary research may also include doing a survey by taking interview, online polls , through e-
mails and online chat (Hair and et.al., 2012). Primary research is done as it is easy to gather
information about the customer’s requirement by directly contacting to them.
2. The secondary research for business plan.
The secondary research of market will involve gathering information that others have
gathered about customer and market trend. In order to gather information from secondary
research can be done by analysing the competitor’s operations, the trend that they are following.
Secondary research can also be done by gathering information from blogs and article on the
recent updates on trends of cafe and coffee shop. Secondary research is done as it will help in
saving a lot time, it will also give the information about trend that is being followed in industry.
3. What is quantitative research of business plan.
While evaluating and analysing the market, there two main types of research that helps in
collecting data pertaining to the concerned issue. Quantitative marker research is statistical data
analysis method. It represents the information in numbers base, as it uses the mathematical
analysis and data to highlight the important statistics about the business plan of new cafe and the
industry in which it operates (Babin and Zikmund, 2015). It uses the information that is gathered
by primary and secondary data. The quantitative research is based on mathematical graphs and
statistically valid, it will assist in making more useful prediction about business.
4. What is qualitative business research.
It is a methodology of market research which assist in focusing more on the customers
need and requirement, their preferences and views for the cafes. It includes the opinion of a
target customers about the business. The information gathered through the primary research will
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assist in analysing the qualitative research. Thematic analysis approach is very useful in
conducting the research on the basis of themes of the Cafe (Crouch and Housden, 2012).
Focusing on the market segmentation and done research on the basis of interviewing and one to
one discussion is important in providing the ability to explore multiple topics in depth. It helps in
analysing the responses of the customers in more convenient manner.
TASK 3
1. Dilemma facing by the business.
Promoting a new business by collaborating to a popular website will definitely help in
increasing the popularity of Livets Krus cafe. But, as per the business ethics it is in appropriate to
collaborate to such a company which is engaged in unethical behaviour. As the website is being
accused of discriminating and harassing its employees. Uniting business operations with such
company will reduced the interest of investors and employees, cafe will lose the trust of the
customers and market reputation will also be spoiled (Ulrich and Sarasin, 2012). It can be said
that, if Livets Krus cafe would hire the website for promotion it will increase the profitability.
However, the employees may get worried if cafe does collaboration with such a company
for making profit, it may also start harassing or bullying them. Merging with an unethical and
legally accused company will affect its stakeholders like investors, as they feel insecure to invest
their money in a cafe which is related to some legally accused company. Getting collaborated
with such company will result in demotivating the staffs and employees, they will be stressed in
their job which will directly affect their performance. If employees fail to provide the service to
customers, it would affect the brand image of Livets Krus. Thus, by taking into account all such
aspects it can be stated that business entity should not accept proposal given by the
advertisement agency.
Moreover, it can be seen that there are many unethical issues which has been faced by
many business in UK. Human right issues includes the discrimination, bullying and harassment
of employees on any basis (Wibbeke and McArthur, 2013). It can be said that there very limited
numbers of companies that offers ethical training to its employees on regular basis. Some
unethical practices like bribery, facilitation payments and corruption are also there. Hence, in the
context of company’s objective, pertaining to the maximization of shareholders value, employee
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satisfaction and motivation etc. proposal of advertisement agency will not prove to be fruitful for
the firm.
TASK 4
1. Complying with Equality and Diversity law when selecting applicants.
Livets Krus cafe is going to hire two new employees on Zero-hour contract. After being
well established Livets Krus cafe has to adhere certain practices that are legally required to be
followed by all companies in UK. The main law that has to be followed in cafe is Equality and
diversity, as cafe is going to hire two employees it should be ensured that there will no
discrimination while selecting applicants (Employees Rights 101 ,2018). All the candidates who
are applying must be treated equally and should be provided the same opportunities regardless of
any kind of discriminations based on their race, caste, country, gender etc.
Livets Krus cafe has to follow the selection procedure by complying both equality as well
as diverse in their recruiting procedure. The job description will be applicable to all applicants
and give equal opportunities to all. Diversity means discrimination on the basis of language and
country. As per the equality act 2010 and Diversity law, Livets Krus cafe needs to be fair in their
selection process, while hiring employees on zero contract basis. Their pay scale should be as per
the agreed contract and no discrimination should be dome on the basis age, disability, gender etc.
2. The right that the new employees have.
In UK, a law called Statuary law has been framed which laid down to be ensured that all
workers are being treated fairly in workplace (Richardson and Monro, 2012). As per Employee
Rights 101, the new employees in Livets Krus cafe have right to privacy, fair compensation and
freedom from any kind of discrimination. The right to privacy at the workplace applies to all
employee's personal possession. The employees have right to be paid minimum wages as per
described in the agreement. Further, they also have right to know all the information and
working activities of Livets Krus cafe.
TASK 5
1. Assets and liabilities of business
Particulars Amount (in £) Amount (in £)
Assets
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Current Assets
Cash at bank 23000
Debtors 2000
Fixed assets
Machinery 6000
Furniture & fixtures 4000
Total assets 35000
Liabilities & shareholders’
equity
Current liabilities
Creditors 3000
Bank overdraft 2000
Long-term debt 10000
Capital 20000
Total liabilities &
shareholders’ equity
35000
2. Describing Budgeted cash flow of Livets Krus cafe.
Particulars January February March April May June
Opening cash balance 2000 3975 7165 11233 15753 20750
Cash inflows
Revenue 13950 12600 13950 14648 15380 16149
other income 1000 1000 1000 1000 1000 1000
Total cash inflows 16950 17575 22115 26880 32133 37899
Cash outflows
Administration expenses 6000 6000 6000 6000 6000 6000
Variable expenses 4185 3150 3488 3662 3845 4037
Other expenses 2790 1260 1395 1464.75 1537.99 1614.89
Sum of cash outflows 12975 10410 10883 11127 11383 11652
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Cash deficit or surplus 3975 7165 11233 15753 20750 26247
CONCLUSION
By summing up the above report, it can be concluded that preparing a business plan is
prominent in order to start a new business. The above report has concluded a plan for a new
Livets Krus cafe. It also included a budgeted cash flow for the new business venture.
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REFERENCES
Books and Journals
Babin, B. J. and Zikmund, W. G., 2015. Exploring marketing research. Cengage Learning.
Crouch, S. and Housden, M., 2012. Marketing research for managers. Routledge.
Hair, J. F. and et.al., 2012. An assessment of the use of partial least squares structural equation
modeling in marketing research. Journal of the academy of marketing science. 40(3).
pp.414-433.
Levy, M., Weitz, B. A. and Grewal, D., 2012. Retailing management (Vol. 6). New York:
McGraw-Hill/Irwin.
Richardson, D. and Monro, S., 2012. Sexuality, equality and diversity. Macmillan International
Higher Education.
Ulrich, P. and Sarasin, C. eds., 2012. Facing public interest: The ethical challenge to business
policy and corporate communications (Vol. 8). Springer Science & Business Media.
Wibbeke, E. S. and McArthur, S., 2013. Global business leadership. Routledge.
Zimmerer, T. W. and Scarboroug, N. M., 2012. Essentials of entrepreneurship and small
business management. Prentice-Hall.
Online
Employees Rights 101 .2018 [Online] Avaliable
through:<https://employment.findlaw.com/employment-discrimination/employees-rights-
101.html>
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