Entrepreneurship - Business Plan to Start a Coffee Shop

Running head: ENTREPRENEURSHIP
Entrepreneurship
Name of the Student:
Name of the University:
Author Note

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Executive Summary
This study aims to design a business plan in the city of Auckland. The business plan will be
having a target market so that it can quickly gain customers. Here the business plan is to start
a coffee shop chain that will require an investment of 19.33 million New Zealand Dollars.
The net profit of the company is expected to be 3.72 million New Zealand Dollars.

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Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Innovation and competitive advantages.................................................................................3
Skills required........................................................................................................................4
Market and the competitors....................................................................................................5
Breakeven point and Cash Flow............................................................................................7
Steps involved and investment...............................................................................................8
Conclusion..................................................................................................................................8
Reference..................................................................................................................................10
Appendix..................................................................................................................................12

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Introduction
This study will discuss a new business plan. The business plan has the motive to start
a coffee shop that will provide coffee and other snacks to the customers. There will also be
several soft drinks and beverages to the customers of the shop. The main motive of the coffee
shop is to provide its services and the products at a low price but with high quality to compete
with the other coffee shop in the region. The coffee shop will provide beverages and
refreshments to the customers. There will be a different variation of coffee that will be
available to the customers. There will be various types of sweet products like cakes and
biscuits that will be made available in the coffee shop. The coffee shop will serve all kinds of
customers, including the office goers, students, older adults, and other people who come to
spend leisure time. So the coffee shop will be open from 6 AM to 10 PM on all days. The
goal of the coffee shop will be to provide excellent service to the customers and also maintain
a standard quality of the products that are offered to the customers.
Discussion
Innovation and competitive advantages
The goal of the coffee shop will be to provide quality service and excellent quality coffee and
other beverages to the customers. The coffee shop will be located in the middle of Auckland
city. The place will be such that it be convenient for both the office goers, students, and the
other who come for spending a reasonable time (McKeever, 2016). The place will be both
near to offices as well as the schools and colleges. These are the target customers of the
coffee shop. The design of the interior of the coffee shop will be made by a professional that
will help to make the place attractive to the customers (Hopp et al., 2018). The professionals
who will design the interior of the coffee shop will be called for meetings. The vendors that

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will provide the best suited design for the coffee shop will be given the project. Also, there
will be a price constraint attached to the selection of the professional who will design the
interior of the coffee shop. The professional who will provide the best design and quality at
the lowest price will be selected for the project (McKenzie & Sansone, 2019). The quality of
the interior cannot be compromised with. This is because the customers are first attracted to
the interior of the coffee shop. The taste of the coffee that will be provided at the coffee shop
has to be excellent, and a special team will be hired to make and taste the coffee.
The taste of the coffee shop has to be maintained consistently so that the customers
can recognize the coffee shop for its unique taste of coffee (Ekanem, 2017). The unique taste
of the coffee will serve as a competitive advantage for the coffee shop. Most of the coffee
shop in the area has a unique feeling of coffee. The ingredients of the coffee will be kept
confidential. Also, the process of making the coffee will also be kept secret (Grit, 2019). This
is because if the taste and the process of making the coffee are disclosed, then other shops
will duplicate it for their benefits. The feeling of the coffee and also the other coffee
beverages will be decided by the exceptional team (Dale, 2019). Also, for the first few days
of starting the business, customers will be given several different coffees to taste for free. The
customers will then be made to rate each of the beverages. This will help the special team to
get an idea of what taste of the coffee the customers like more. The coffees that will get the
highest rating from the customers will be produced more. The free tasters of the coffee will
also help the coffee shop to attract customers, and even the staff and the managers will be
able to build a good relation with them.
Skills required
The staff and the managers of the coffee shop will be given individual training
sessions so that they can perform their tasks better. Also, the team and the managers will be
required to have excellent communication skills and will be necessary to have unique

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behavior with the customers (Teasdale, Steiner & Roy, 2019). This will create a good
reputation in the coffee shop (Lam, 2018). The staff and the managers of the coffee shop will
be the center of attraction of the coffee shop as they will be the ones who will be
communicating with the customers. The staff and the bins of the coffee shop will also be
given specialized training on the behavior aspect. The name of the coffee shop will be
decided on the team that will be involved in the business. The logo of the coffee shop be
made attractive, and professionals will be hired to make the logo of the coffee shop. The logo
of the coffee shop must be attracted and should be designed based on the interior design of
the coffee shop. The logo of the coffee shop will help to build a future reputation for the
coffee shop.
Market and the competitors
The price of the coffee and the other drinks that will be provided at the coffee shop
will be kept low so that it will help to compete with the big coffee chains that are there in the
market (Barrow, Brown & Barrow, 2018). The coffee is something that if made with a unique
and beautiful taste, then it will help to compete with the big coffee chains like Starbucks. The
coffee in the big chains is made by the machines, but this coffee in this coffee shop will be
made by the staff and the cook. Some of the food products and soft drinks that will be
provided by the coffee shop will be bought from well recognized brands that have a good
reputation in the market (Porter, 2018). Also, the price of the coffee shop is to be kept low
because there is a fall in the global economy, and it has affected New Zealand too. So the
price has to be kept small so that the customers can afford them. This will also help to build a
reputation and even attract customers (Costa et al., 2017). The coffee price will be set at 2
New Zealand Dollar. The profit margin on each coffee will be 1.5 New Zealand dollars. This
profit will go to the production and maintenance of the coffee shop. The office goers and the
students will also be given special offers.

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The office goers will have to show their employee id cards to avail of these offers.
The costs of starting the coffee shop also have to be kept in check so that it can be covered
with the profits that are made. The cost of production of the coffee will also be kept low. The
coffee and the various products will be produced in bulk to reduce the costs. The first few
days of the coffee shop will help to analyze how many customers visit the coffee shop, and
the amount of coffee to be produced will also be calculated. The coffee shop will also help
the area to generate jobs. The staff will be given attractive salaries and also be provided with
incentives for their excellent performances (Gabler et al., 2017). There are also various
threats that the business of the coffee shop will face. These are that there are multiple big
chains of coffee shops that are already operating in the different office and school areas.
Some local restaurants also provide coffee during the morning and noontime (WYRED
Consortium, 2018). The morning and the evening of the days will be the peak time for the
coffee shop as this is the time when the office goers and the students visit the coffee shop for
refreshments. Also, the people who come for leisure time come to coffee shops generally in
the afternoon and in the evening time. A budget will be set for the building of the coffee shop
and also for the interior and exterior of the coffee shop.
The business of the coffee shop will be owned by a team that will be very interactive
with each other (Berbegal-Mirabent, Gil-Doménech & Alegre, 2016). An accountant will be
hired to do the accounts for the daily transactions of the coffee shop. The debts and the
liabilities of the coffee shop will be managed by the owners of the shop. The accountant will
also be responsible for calculating the tax that has to be paid by the coffee shop. There will be
various assets of the coffee shop like the building and the instruments that will be used to
make the coffee (Hopp & Greene, 2018). The person who will be making the coffee will be
responsible for wearing unique masks and other equipment to avoid germs and infections.
The hygiene of the coffee shop will be one of the most significant motives of the business.

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The health of the coffee shop will be maintained as per the rules specified by the law. A
unique software system will be bought by the owners of the coffee shop so that the day to day
transactions of the coffee shop can be maintained. The financial statements of the coffee shop
will be supported by the accountant. The profits will be divided among the owners of the
coffee shop. A law expert will also be hired to maintain the legality of the business that will
be done. Various marketing processes like hoarding, newspaper advertisements, and
pamphlets will be circulated to gain the attention of the office goers and the students.
The pamphlets will be circulated in and around the offices, the schools, and also the
colleges. There are more than 10,000 office goers and students in the area, including males
and females. The coffee shop will be made such that it will be able to compete with the big
coffee chains in the market. The unique taste and the low prices will be the main attraction of
the coffee shop. The office goers mostly depend on the coffee to get a head start on their
daily tasks. The price of the coffee shop will also depend on the cost of production of the
coffee. But the coffee shop will not compromise with the quality of the coffee that will be
used.
Breakeven point and Cash Flow
The coffee shop will have a high quality of coffee. This will also be a competitive
advantage for the coffee shop as most of the big chains that are already operating in the
market do compromise with the quality of the coffee to reduce the price of the coffee for the
customers. There will be different variations in the type of coffee that will be served to the
customers. There will be different types of coffee that will suit the various customers based
on their natives (McKenzie & Sansone, 2017). There will be coffee tastes that will be
adapted for the Americans, Asians, Italians, and the people of Auckland. There is a high
population of foreign people in the area. These external people have different tastes of coffee.
They will be served with the coffee tastes that are prevalent in their countries. There will also

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be unique chocolate dishes and smoothies for the children. The kids under the age of 15 will
be given special discount offers. The breakeven point is when the cost of the revenue will be
26,973,000,000. The cash flow of the coffee shop is expected to become positive within the
first year of operation of the shop.
Steps involved and investment
The first step for starting the coffee chain will be to get sufficient investment. Then a
budget will be prepared for the building and the decoration of the coffee shop. Staff and
managers will be hired and trained. For the investment into the coffee shop, the local
businesses that are already operating in the area will be approached. The promoter of the
company will be the head for all the decisions, and then all the tasks will be executed by the
team that is involved in starting the coffee shop chain. A brand logo and image has to be
created for further expansion of the business. The first milestone for the coffee shop will be
to earn a profit of 1 million New Zealand and open five such stores within the first year of
operating.
Conclusion
The study concludes that the coffee shop is a good idea for the business plan as the
area is populated with office goers and students. The students and the office goers are the
primary targets for the business. Also, there are different business personnel who visit the
coffee shop for various purposes, like meetings. Also, the offices sometimes hold meetings in
coffee shops so that the employees can make decisions. The different variations of the coffee
will also be made suitable based on the distinct taste of the people. The staff and the
managers will be hired based on their communication skills and also be given specialized
pieces of training. The training of the team will include three main aspects like behavior,
operation of the coffee shop, and even on the software that will be used to handle the

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transactions of the coffee shop. Also, the employees will be treated with tasty coffees and
food to encourage them to perform their best. The advertisements of the coffee shop will be
made for the various targets like the office goers and the students. Coffee is something that
people depend on to start their day and also for entertainment purposes.

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Reference
Barrow, C., Brown, R., & Barrow, P. (2018). The Business Plan Workbook: A Step-By-Step
Guide to Creating and Developing a Successful Business. Kogan Page Publishers.
Berbegal-Mirabent, J., Gil-Doménech, D., & Alegre, I. (2016). Improving business plan
development and entrepreneurial skills through a project-based activity. Journal of
Entrepreneurship Education, 19(2), 89.
Costa, J., Doherty, A., Wohlrab, A., Kooker, M., & Scott, T. (2017). CENTRAL HUDSON
BUSINESS PLAN.
Dale, B. (2019). One Shot Pub: A Business Plan.
Ekanem, I. (2017). Writing a business plan: a practical guide. Taylor & Francis.
Gabler, C. B., Panagopoulos, N., Vlachos, P. A., & Rapp, A. (2017). Developing an
environmentally sustainable business plan: An international B2B case
study. Corporate Social Responsibility and Environmental Management, 24(4), 261-
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Grit, R. (2019). Making a Business Plan. Routledge.
Hopp, C., & Greene, F. J. (2018). In pursuit of time: Business plan sequencing, duration and
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Hopp, C., Greene, F. J., Honig, B., Karlsson, T., & Samuelsson, M. (2018). Revisiting the
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study. Management Review Quarterly, 68(4), 361-398.

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Lam, K. (2018). Behavioral Integration LLC a Business Plan. California State University,
Long Beach.
McKeever, M. (2016). How to write a business plan. Nolo.
McKenzie, D., & Sansone, D. (2017). Man vs. machine in predicting successful
entrepreneurs: evidence from a business plan competition in Nigeria. The World
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McKenzie, D., & Sansone, D. (2019). Predicting entrepreneurial success is hard: Evidence
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Economics, 141, 102369.
Porter, L. (2018). Business Plan: The Coffee Project.
Teasdale, S., Steiner, A., & Roy, M. (2019). Wrestling with wicked problems? The value of
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WYRED Consortium. (2018). WYRED Association Business Plan. WP8_D8. 4. Version 2.1.
Grupo GRIAL.

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Appendix

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