Coffeista Coffee Business Plan and Cash Flow Analysis

The assignment provides a comprehensive business plan for Coffeista coffee, including market research, assets, liabilities, income, and expenses. The company starts its operation in London, UK, with the goal of earning profit by performing various activities. The cash flow analysis shows a cash deficit/surplus or closing cash balance of £20,500. Methods to solve cash flow problems include making a cash budget, reducing expenses using variance analysis, and creating a cash flow statement.

BUSINESS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1...........................................................................................................................................1
Summarising the business idea...................................................................................................1
TASK 2............................................................................................................................................3
Market research for Coffeista coffee...........................................................................................3
TASK 3............................................................................................................................................4
Solving the ethical dilemma faced by Coffeista coffee..............................................................4
TASK 4............................................................................................................................................4
Employing staff members on Zero- hour contract .....................................................................4
TASK 5............................................................................................................................................5
Assets , liabilities , incomes and expenses for Coffeista coffee..................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business is related to performing various activities relating to buying and selling to earn
profits. This study will include the business plan for the Coffee shop which will be starting its
operation in London, UK. Moreover, This assignment will include the market research which
will be conducted by organisation to identify the demands of customers. Furthermore, It will
include assets, liabilities, incomes and gains for the business. Also, This study will provide
understanding of compliance with equality and diversity law.
TASK 1
Summarising the business idea
Industry
The business will be involved in coffee industry which is gaining popularity in the UK
market due to growing demand of the customers to drink coffee in order to remove their
tiredness and fatigue (Bell, Bryman and Harley, 2018). Coffee industry is growing day by day
which shows that it will gain more market share than any other industry in the economy.
Location
The business will be situated in London, UK due to its growing demand at that place. The
coffee shop will be opened at a place in London where more people are attracted such as street
side shop or tourist destination place. Location of the coffee shop will help the business to gain
the attraction of customer so the place will be the central point of the London where more people
are attracted and have the high demand for coffee.
Target customer
The target customer for the coffee shop will be people from all age group which will
consist of men, women, kids etc. It is identified that the number of coffee sippers in UK are
increasing to remove the fatigue to get energy for spending the day well. The customers will be
attracted towards the coffee shop due to high demand of coffee at that place.
Business model
The business model for this coffee will be selected as revenue business model. This
model provide framework for various sources of revenue and the value of products and services
of the business (Sekaran and Bougie, 2016). Revenue business model helps the firm in
generating profits for business. This model helps the coffee shop in generating revenue by
identifying different sources of revenue according to the framework provided by this model.
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Name of business
The coffee shop name will be selected to attract customers towards the organisation. The
name of the coffee shop will be “Coffeista coffee” to provide clear idea to customers that the
business is providing coffee. The Coffeista coffee will attract customers towards the business as
it will provide different types of coffee according to the demands of customers.
Visual identity
The logo of the Coffeista coffee will be designed in a way to give the customers clear
idea about the products and services of the business and to attract them towards the brand. The
logo of the shop will contain the name and the picture of coffee to provide information about the
business. The logo of Coffeista coffee will help the business to increase the brand image and
assist in increasing their profitability in UK. The logo of the coffee shop will attract more
customers and will increase the market share of the Coffeista in London.
Values for Coffeista coffee
The values of the business will help the coffee shop in growing their brand image and
increasing their profitability. It will help the concern in attracting customers towards the
Coffeista. It will treat its workers equally without diversification on the basis of age, gender
religion etc. to comply with the laws of the equality and diversity. The organisation will also
have values to develop the society by contributing the share of profit towards charity and other
social work. Also, it will ensure that the coffee is not packed in polythene for home delivery to
reduce the problems of environment.
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TASK 2
Market research for Coffeista coffee
Primary research
It will consist of taking the first hand information about the taste and preference of
customers to satisfy their wants by providing the products and services according to their
demands. The primary research will include taking the survey through use of questionnaire
which will consist of open ended and close ended question to identify the demands of customers.
The primary research that will be conducted by Coffeista will undertake the survey by
questioning the target customers about their demands from the coffee shop and which type of
coffee they will prefer etc.
Secondary research
This research will be conducted by Coffeista coffee to identify the information about the
market trend and demand of customers by secondary sources that consist of taking information
from books, journals, and information contained on various social media sites (McQuarrie,
2015). This research will help Coffeista in identifying the taste and preference of customers by
secondary sources on the basis of which they will be able to provide products and services to
customers according to their requirements. This research will be conducted because it will help
coffee shop in identifying the growing trend of coffee in that place. For example, Coffee costa
has conducted the same research in order to identify the demands and taste and preference of
customers for coffee.
Quantitative research
It will be conducted by Coffeista coffee to identify the information relating to the trend
and market share of the coffee industry to know about the profitability and growth of business in
that area. Quantitative research will include the numerical figures of the market trend for the
business to identify the demand of coffee. This research will give the numerical data about the
market share acquired by the coffee business to identify the demand of coffee at that place.
Qualitative research
This research provide information about the thoughts and opinions of customers which
will help Coffeista in getting details about the customer's requirement to provide them different
kinds of coffee according to their need. Qualitative research help in gaining the non – numerical
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data and focus on gaining the opinions of customers about the particular products and services
offered by the business.
TASK 3
Solving the ethical dilemma faced by Coffeista coffee
The ethical dilemma which is faced by Coffeista coffee provide information that it has
given the opportunity to be promoted by the popular website but that company have various
accusation for treating its employees badly which has become a dilemma for coffee shop to
choose that opportunity or not. If Coffeista coffee adopt the opportunity of being promoted
through that website will give the negative impact on its workers and will also affect the brand
image of Coffeista that will reduce its profitability in the industry.
To resolve this ethical dilemma Coffeista coffee will not grab this opportunity as it will
increase its employees turnover which is not beneficial for the shop and will also reduce its
customers base due to negative impact on them. This ethical dilemma faced by Coffeista coffee
is against the values which were created by them for the promotion of business. According to
the values created by Coffeista coffee the business will treat its employees equally without any
discrimination on the basis of age, gender, religion etc. and to follow this values will not accept
the opportunity as it will demotivate the staff members of the business which is not good and
will also affect the brand image.
Coffeista coffee is against this harassment and discrimination which the other company is
doing with its employees and is against its moral value and thus it is beneficial for the
organisation to not to grab the opportunity of being promoted by that website. By not grabbing
this opportunity will motivate the staff members and they will work more effectively and
efficiently to attract the customers towards the Coffeista coffee that will increase its profitability.
For example, BBC has also faced the same ethical dilemma which reduced its brand
image and faced problems such as high employee turnover and also reduced its customer base
which reduced its profitability.
TASK 4
Employing staff members on Zero- hour contract
Zero – hour contract workers are hired on the basis of the agreement in which there is
obligation to complete the working hours that is there are no particular hours of working the
workers have the freedom to work according to their comfort (Kim and Min, 2015). Coffeista
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coffee will hire the two staff members on zero – hour contract basis where they will be working
according to the contract form and not for the particular hours of working.
Compliance with equality and diversity law
To comply with the laws and regulation relating to equality and diversity the Coffeista
coffee will provide equal opportunity to all the workers to show their knowledge and skills
which are required for the particular job role in the organisation (Muzellec, Ronteau and
Lambkin, 2015). The applicants will be given equal opportunity and will not be discriminated
on the basis of age, gender, religion etc. The applicants will be selected on the basis of their
knowledge and talent and not on the basis of any discrimination.
While selecting applicants it is required by the organisation to comply with the laws and
regulation as per equality and diversity to give every individual an equal change for being
selected. Also, the applicants will be asked question which are related to the particular job role
and will be asked accordingly. According to equality and diversity law the staff members must
be provided equal wages according to their job role and not the basis of any discrimination
relating to age, gender, religion etc.
Rights of new employees Hired on Zero hour contract
The staff members selected on the basis of zero – hour contract will have the following
rights to retain them in business.
 The workers hired on zero – hour contract have the right to get freedom of working hours
and they are not obliged for working for the specific hours (Zero hours contracts, 2016).
 They will have the right to get time – off for the emergencies in which the dependent is
involved.
 They will be entitled for leaves for pay to provide them ease for working.
 Also, the workers hired in Coffeista coffee will have right for flexible hours of working.
 The workers employed on Zero- hour contract are entitled for statutory employment
rights.
 They will be entitled for national minimum wage paid and also will be given rest break
to protect them from tiredness.
TASK 5
Assets , liabilities , incomes and expenses for Coffeista coffee
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Assets
 Coffee ingredients
 coffee equipment
 building
 table & chairs
Liabilities
 Creditors
 Loans
 Insurance
Assets for the company are the items which are easily convertible into cash and these
items are required for running the operation of the business. Liabilities are the obligations of the
company which is required to paid in future point of time. Incomes for the business consist of the
revenue generated by the firm by performing its various activities. Expenses for Coffeista coffee
include the expenses incurred by the business to perform its various activities and include
advertising expense, rent, interest, salaries etc.
Budget
Particulars January
Cash inflows
Opening cash inflow 20000
Sales revenue 10000
Other income 5000
Total cash inflows 35000
Cash outflows
Administration expenses 3000
Advertising expenses 3500
rent 3000
wages 5000
Total cash outflows 14500
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Cash deficit / surplus or closing cash balance 20500
Methods to solve cash flow problems
There are various method which helps in solving the cash flow problems that includes
making cash budget which helps the organisation in identifying future cash requirement for
performing various operations. Also, Coffeista coffee in order to solve the cash flow problem can
reduce its expenses by using variance analysis for identifying the deviation by comparing the
actual expenses with the budgeted to know about deviations (Cash Flow Problems and
Solutions, 2015). Also, cash flow problems can be solved by making cash flow statement which
helps in identifying the cash inflow and outflow for the period.
CONCLUSION
From the above business plan it has concluded that Business is related to performing
various activities to earn profit. The business has selected its name as 'Coffeista coffee” which
has started its operation in London, UK. Furthermore, It has provided with market research that
has been conducted by Coffeista coffee that has helped the organisation in identifying the
demand of coffee. Also, It has provided with assets, liabilities, incomes and gains for Coffeista
coffee that consisted of Coffee, equipment, building, account payable, loans, rent, wages,
incomes, sales etc.
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REFERENCES
Books and Journals
Bell, E., Bryman, A. and Harley, B., 2018. Business research methods. Oxford university press.
Kim, S.K. and Min, S., 2015. Business model innovation performance: When does adding a new
business model benefit an incumbent?. Strategic Entrepreneurship Journal. 9(1). pp.34-
57.
McQuarrie, E.F., 2015. The market research toolbox: a concise guide for beginners. Sage
Publications.
Muzellec, L., Ronteau, S. and Lambkin, M., 2015. Two-sided Internet platforms: A business
model lifecycle perspective. Industrial Marketing Management. 45. pp.139-150.
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
John Wiley & Sons.
ONLINE
Cash Flow Problems and Solutions. 2015. [Online]. Available through
<https://www.comcapfactoring.com/blog/cash-flow-problems-and-solutions/>.
Zero hours contracts. 2016. [Online]. Available through <http://www.acas.org.uk/index.aspx?
articleid=4468>.
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