Business Plan for Carpe Diem Sports Bar and Sheesha Lounge

This report is a business plan for Carpe Diem, a sports bar cum sheesha lounge that will be opened at Gold Coast, Australia. The report is being produced to attract potential investors who will provide seed fund necessary during the initial stages of growth. The report will also provide detail of the establishment type, management structure and marketing strategies to be implemented. Further discussions will be made to understand the threat from competitors by undertaking the competitor analysis. An overview of finances will be provided in form of financial analysis. Additional risks and obstacles that can be faced while running the establishment will also be discussed.

SOUTHERN CROSS UNIVERSITY
Student Name:
Student ID No.:
Unit Name: Entrepreneurship and Innovation
Unit Code: MNG00314
Tutor’s name:
Assignment No.: 2
Assignment Title: Assignment 2 – Business Plan Part B
Due date: 29 September 2017
Date submitted: 24 September 2017
Declaration:
I have read and understand the Rules Relating to Awards ( Rule 3 Section 18 – Academic
Misconduct Including Plagiarism ) as contained in the SCU Policy Library. I understand the
penalties that apply for plagiarism and agree to be bound by these rules. The work I am
submitting electronically is entirely my own work.
Signed:

Table of contents
1. Introduction 4
2. Venture description 4
3. Management 4
3.1 Legal structure 4
3.2 Operational management 5
4. Marketing 5
4.1 Target market 5
4.2 Communication strategy 6
5. Competitor analysis 6
5.1 Competitor rivalry 6
5.2 Threat of new entrants 7
6. Financial analysis 7
7. Key risks and challenges 7
Conclusion 8
References 8

Executive Summary
We welcome you to Carpe Diem, a Sports Bar with a Sheesha Lounge theme in the heart of Gold
Coast, Australia. With a hint of Arabian and western feel to the cafe, we would like to welcome
The Tourist as well as the local customer to experience something new. The purpose of this
report is to develop a rapport with investors in order to secure a seed funding that will help in
supporting the growth of the establishment. This funding will be also crucial during the initial
growth stage of the establishment. In order to lure a potential investor this report is presented as a
professional business plan which outlines the description of the venture, the structure of the
management, analysis of competitors and finances along with identification of the risks and
challenges that will be faced by the establishment.
The tourism Sector is growing at an unprecedented rate and the advent of globalisation has
provided the consumers with a choice. The location of the flagship is in Gold Coast which
experiences high volume of tourists round the year. With growing demand for something new to
add to the tourist attraction, this sports bar cum sheesha lounge has been conceptualised. The
establishment itself is quite unique from the traditional point of view and will act as host to a
large and multidimensional market. The name of the establishment is Carpe diem which means
to seize the moment. The customers will be able to relate with the name and also enjoy the
atmosphere. This report will help the investors to have an idea of the market that the
establishment plans to exploit along with the targeted market segments. The report will also try
providing an overview of the management structure that will run the establishment. Marketing
strategies for connecting with the targeted market will be analysed. To identify the viability of
the project, we will also provide a competitor analysis with special emphasis on the threat of new
entrants in the market. Financial analysis will help in understanding the segmentation of
finances.

1. Introduction
This report is a business plan for Carpe Diem, a sports bar cum sheesha lounge that will be
opened at Gold Coast, Australia. The report is being produced to attract potential investors who
will provide seed fund necessary during the initial stages of growth. The report will also provide
detail of the establishment type, management structure and marketing strategies to be
implemented. Further discussions will be made to understand the threat from competitors by
undertaking the competitor analysis. An overview of finances will be provided in form of
financial analysis. Additional risks and obstacles that can be faced while running the
establishment will also be discussed.
2. Venture description
Carpe Diem means to seize the moment. Carpe Diem is a Sports Bar with provisions of a sheesha
lounge which manifests Western as well as a rustic Middle Eastern-Arabian feel in it. This sports
bar cum lounge is very different from the traditional cafes present in Gold Coast. The visitors
will be experiencing a whole different environment in Carpe Diem (Read et al. 2016). Since the
cafe is partly a sports bar, there will be provision of beverages along with entertainment such as
snooker and darts which will be a brand new experience for the local customers. The guests will
be be able to choose from a wide variety of dishes ranging from Western to Middle Eastern. The
facility will also include a massive multimedia system compounded with an open layout and chic
decor which will be of great appeal to the masses. The establishment will also host sports and
celebrity events that will definitely act as a tourist attraction (Dees, 2017). The cafe is styled for
quick as well as casual dining. The multi-dimensional approach of the establishment is one of a
kind in Gold Coast and hence, it promises to be successful venture to invest in. The cafe will be
open to a wide market demographic which wants to experience something novel and interesting.
3. Management
3.1 Legal structure
During the initial stages, the Carpe Diem will run on a Cooperative structure. This structure has
been chosen because, the establishment will be formed by people having similar goals. Another
reason for choosing a cooperative structure is simple and enables collaborative operation as each
individual co-owner has a say in running the things. The benefits of a cooperative are that the
members will not be burdened with taxes as such establishments are not taxed on surplus. The
surplus is redistributed among the members. Organisations having similar legal structure also

receive discount their supplies. As the company grows and expands in the future, plans are to
reorganize as a Limited Liability Company (LLC) (Eisenberg, 2017). This is because in case of
cooperative structure the success of the business is dependent on the contribution of the co-
members and in case there is a lack of participation, the business may gradually go into decline.
The establishment will require Federal Business Licence so as the establishment can operate in
Broad Beach, Gold Coast Australia. There is also the need to obtain certificate of occupancy for
the property in which the establishment will be set up. Since, the establishment of plans on
selling alcoholic beverages to adult customers, a liquor licence is also mandatory (Haigh,
Kennedy and Walker, 2015).
3.2 Operational management
The initial management structure will be headed by one individual who has experience in
operating a bar and restaurant. The establishment will also hire people and train them to become
efficient and customer friendly (Kerzner and Kerzner, 2017). The staff members will be allowed
to participate in the success of the establishment as they would be directly responsible for
handling the customers and providing them with satisfactory services which will make the
customers visit Carpe Diem again. The profit generated by the establishment will be shared
among the owners. In future, if the store starts to expand, it will be necessary to hire a director of
operations who will act as an intermediate between the store management teams and the
supervisory teams (Bahmani-Firouzi and Azizipanah-Abarghooee, 2014). Over time, the need
for having supervisor and franchise manager will be felt. During the initial growth, these
requirements will be negligible. The management will identify the appropriate individuals for the
post of store managers.
4. Marketing
4.1 Target market
The primary target market for Carpe Diem is the sports enthusiasts. There will be no restriction
for people of different ages and backgrounds. Other than sports enthusiasts the cafe will target
the middle class office workers who are in look out for quick bites and some playful
entertainment (Aghdaie and Alimardani, 2015). Such people will indulge in food as well as
beverages and will perceive the availability to let their hair down as one of the strong attractions.
The cafe will also target individuals who are late nighters as well as those who party every
weekend. The Carpe Diem will be a suitable option for them as they can come to the

establishment for long hours or socialising, partying or simply dining (He, Lin and Wei, 2016).
The targeted demographics is of age 15 to 45, single male or female, affinity to sports and having
medium to high level of income. The psychographic targeted by Carpe Diem are tourists, foreign
or local, who are interested in sports and would like to try something interesting in context of
food and ambience. The targeted geographic are the urban population of Gold Coast. The
primary consumer motivation factors are the ambience and new outlook on cafes.
4.2 Communication strategy
Carpe Diem wishes to be host to a multidimensional market by serving local people who like
sports, foreign tourists, young night crowd as well as families for dining. The primary mission is
to provide an intriguing ambience and atmosphere supported by friendly as well as efficient staff.
In order to reach out to the target market, the cafe will focus on the pricing strategy as well as
promotional activity (Bradley, 2016). The food will be moderately priced. The average bill of
dining and drinking for average customers should not be more than $20. It is necessary to keep in
mind that the cafe will be having larger volumes of customers on event days. This means that the
bill is expected to rise beyond the given estimate. Promotional activities will include advertising,
interacting with people to build public relation and use of local media. Advertisements can be
done by putting up posters and giving the customers a tour of the cafe (North, and Kumta, 2018).
The cafe can be also promoted by accepting VIP parties. Best way to attract crowd will be to
organise a grand opening. The cafe can provide gift certificates and jersey’s as away to develop
public relationship. Invitations can be forwarded directly by mail. The cafe can be also
advertised on the local radio channels and newspapers. Local cable operators can be also utilised
for promoting the cafe. However, it is expected that most of the promotional activity will be
word of mouth.
5. Competitor analysis
5.1 Competitor rivalry
Carpe Diem, the sports bar cum sheesha lounge is in a geographic area that has a huge number of
cafes, dining places, bars and restaurants. The primary advantage that Carpe Diem has over the
others is the fact that this concept of sports cum sheesha lounge is unique in the marketplace. The
nearest alternative to Carpe Diem is at a minimum 50km away. The impact of first factor to be
measured is competitive rivalry. This factor is high because of the geographic location of the
cafe along with the targeted market group which is also targeted by direct or indirect rivals

(Phadermrod, Crowder and Wills, 2016). There is a threat from large multinational food and
beverage companies. However, if the promotional and public relation strategies are well thought
of, Carpe Diem can gain advantage. However it is necessary to plan these strategies keeping in
mind the budgetary constraints (Schneider, 2015). The next high rated factor is the bargaining
power of the customer which as expected is high because the consumer has a lot of options to
choose from and it will require dedicated efforts, good food, upbeat environment, friendly and
efficient customer service to attract the customers.
5.2 Threat of new entrants
Carpe Diem is trying to enter the food and beverage market and as a new entrant there are certain
threats that are needed to be addressed beforehand. Carpe Diem is seeking entry in a market
having high barriers and it is necessary for them to protect and sustain the market position by
consequently building entry barriers. The primary threats are product differentiation, economies
of scale, capital and financial requirements, cost of switching and government policies (Francis,
Humphreys and Aicken, 2017). Carpe Diem has a wide variety of products and services that it
will provide to the customers. This product differentiation will become entry barrier for new
market entrants. If Carpe Diem is able to minimise the cost of products with increase in volume,
the other rivals and the new entrants will not be able to keep up with it. The capital and financial
requirement is more or less a barrier for new entrants like Carpe Diem. If the consumers at Carpe
Diem perceive that it is costlier to switch to any new alternative, the consumers will not pursue
that path and this is a barrier to minimise threat from new entrants, Government can be
responsible for limiting entry of new entities into the market by controlling licensing and
accessibility (Jain, 2018).
6. Financial analysis
Budgeted Income
statement
Particulars Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total
Sales
$
3,20,000.00
$
3,42,400.00
$
3,66,368.00
$
3,92,013.76
$
14,20,781.76
Intrest income
$
52,000.00
$
55,640.00
$
59,534.80
$
63,702.24
$
2,30,877.04
Total income $ $ $ $ $

3,72,000.00 3,98,040.00 4,25,902.80 4,55,716.00 16,51,658.80
Expenses
Administrative
expenses
$
20,000.00
$
21,400.00
$
22,898.00
$
24,500.86
$
88,798.86
Offices Expenses
$
32,000.00
$
34,240.00
$
36,636.80
$
39,201.38
$
1,42,078.18
Supllies
$
24,000.00
$
25,680.00
$
27,477.60
$
29,401.03
$
1,06,558.63
Raw materials
$
15,000.00
$
16,050.00
$
17,173.50
$
18,375.65
$
66,599.15
Salary
$
7,500.00
$
8,025.00
$
8,586.75
$
9,187.82
$
33,299.57
Rent
$
8,200.00
$
8,774.00
$
9,388.18
$
10,045.35
$
36,407.53
Total Expenses
$
1,06,700.00
$
1,14,169.00
$
1,22,160.83
$
1,30,712.09
$
4,73,741.92
Profit
$
2,65,300.00
$
2,83,871.00
$
3,03,741.97
$
3,25,003.91
$
11,77,916.88
Budgeted Expenses
Administrative
expenses
$
20,000.00
$
21,400.00
$
22,898.00
$
24,500.86
$
88,798.86
Offices Expenses
$
32,000.00
$
34,240.00
$
36,636.80
$
39,201.38
$
1,42,078.18
Supllies
$
24,000.00
$
25,680.00
$
27,477.60
$
29,401.03
$
1,06,558.63
Raw materials
$
15,000.00
$
16,050.00
$
17,173.50
$
18,375.65
$
66,599.15
Salary $ $ $ $ $

7,500.00 8,025.00 8,586.75 9,187.82 33,299.57
Rent
$
8,200.00
$
8,774.00
$
9,388.18
$
10,045.35
$
36,407.53
Total Expenses
$
1,06,700.00
$
1,14,169.00
$
1,22,160.83
$
1,30,712.09
$
4,73,741.92
7. Key risks and challenges
Opening and running a sports bar is a very challenging issue and it is necessary to identify the
key mistakes that can happen. These are the potential risks and challenges of running Carpe
Diem. Inventory control, hiring, training and managing of staff members and inefficient
utilisation of resources are the areas of risks that require constant attention. Inventory control is
important as the profit making ability is directly dependent on the purchase or sale of inventory
items (Macaulay, 2018). Keeping a detailed log file may come handy to minimise confusion.
Staff hiring, training and management is another key area to focus upon. The staffs will be the
first line of interaction with the customers and it is necessary to correctly train these hired
individuals so that they can not only provide efficient service but can also build and sustain
public relations (Wu, Chen and Olson,, 2014). Staff management is important as they are
responsible for assisting the manager to identify areas of conflict or help in inventory
procurement and control
Conclusion
The current report has been formulated as a business plan for Carpe Diem. The concept of this
cafe cum sports bar cum sheesha lounge is unique and ambitious and requires significant
investment. The business plan is necessary to attract seed funding from potential investors. The
report comprises of description of the venture. The legal and management structure of the
organisation has been also discussed in detail. Targeted market segments and the marketing
strategies to be implemented have been also discussed. Since, the company is a new entrant, the
report provides an in depth competitor analysis along with financial analysis. Key risks and
challenges have been also identified.

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