Coffee at the Beginning Business Plan for Coffee Business

This business plan is for Coffee at the Beginning, a partnership coffee business that aims to grow its operations and achieve its target market. It provides various ranges of coffee such as hot and cold coffee with different flavors. The business has to adhere to various legal and statutory requirements and has adopted a predatory pricing strategy. The market research is done using the STP approach, and the target customers are between the age group of 18 to 30 years. The primary form of research is applied to boost the level of turnover of the organization.

Name: Coffee at the beginning.
Business Plan for: Coffee business.
(Please use this template in conjunction with the guide Prepare a business
plan)
Document Version:
Date:
Completed by:

Business plan contents
Executive Summary..................................................................................................................................... 6
1. Executive summary................................................................................................................................. 6
2. Business details...................................................................................................................................... 7
Company name:........................................................................................................................................ 7
Address:.................................................................................................................................................... 7
Telephone number:................................................................................................................................... 7
Legal status:.............................................................................................................................................. 7
The business will: (Provide a brief description of what your business will do)...........................................7
3. Key personnel.......................................................................................................................................... 8
Details of owner(s):................................................................................................................................... 8
Other key personnel (including shareholders):..........................................................................................8
Vision............................................................................................................................................................ 9
4. The business idea.................................................................................................................................... 9
Sum up your business idea:...................................................................................................................... 9
5. Business goals........................................................................................................................................ 9
What do you want to achieve in your first year of business? (for example, turnover of £100,000 or trading
at breakeven)............................................................................................................................................ 9
Where do you see your business in 3-5 years’ time?................................................................................9
6. What the business does........................................................................................................................ 10
7. What makes the business different......................................................................................................10
Your product/service is unique or different compared with the competition because: .............................10
8. Legal requirements ............................................................................................................................... 11
The legal and insurance requirements that apply in your business are:..................................................11
You will meet your legal and insurance requirements by:........................................................................11
Marketing.................................................................................................................................................... 12
9. Market research..................................................................................................................................... 12
Trends in your chosen market are:..........................................................................................................12
How you know this:................................................................................................................................. 12
10. Profiling customers............................................................................................................................. 12
The customer groups you will be selling to are:.......................................................................................12
Your customer research has shown what your customers want is:.........................................................12
How you know this:................................................................................................................................. 12

Number of customers you expect to win in each group and what they might pay:
................................................................................................................................................................ 12
11. Profiling competitors .......................................................................................................................... 13
How you can improve on their offer and/or price(s):................................................................................13
12. Managing market risks........................................................................................................................ 13
Write down the risks you have identified:................................................................................................13
How will you manage these risks so that they become less of a threat:..................................................14
13. Pricing.................................................................................................................................................. 14
How you can calculate your prices:.........................................................................................................14
How your prices compare with the competition:
................................................................................................................................................................ 14
Reasons for the difference between your price(s) and your competitors’ price(s):..................................14
14. Promotion and advertising................................................................................................................. 15
How and where will you promote your product/service?..........................................................................15
Running the business............................................................................................................................... 16
15. Staff....................................................................................................................................................... 16
16. Premises............................................................................................................................................... 16
17. Suppliers.............................................................................................................................................. 16
Your key suppliers and their credit terms................................................................................................16
18. Equipment............................................................................................................................................ 18
19. Managing operational risks................................................................................................................. 18
Finance ...................................................................................................................................................... 19
20. Start-up costs....................................................................................................................................... 19
Calculate how much money you need before you start trading
................................................................................................................................................................ 19
Personal survival budget
................................................................................................................................................................ 19
Estimated annual personal expenditure (this helps you work out the minimum amount you need to earn
from your business in the first year and how much money you might need to borrow to start the
business)................................................................................................................................................. 19
21. Profit and loss forecast....................................................................................................................... 21
22. Sourcing finance.................................................................................................................................. 22
Total borrowing requirement for the business.........................................................................................22
23. Managing financial risks .................................................................................................................... 22
The risks that you have identified for your financial forecast are:............................................................22
24 Cash flow forecast ............................................................................................................................. 23

Executive Summary
1. Executive summary
(We suggest you complete this section after you have completed the other sections of the Business
Plan).
This business plan is related to the business of coffee which is named as coffee at the
beginning . It is a partnership business which includes various key position and
several partners. There aim of business is to grow its operations in the upcoming year
and achieve its target market. The business has to adhere various legal and statutory
requirements which are framed by the government of the specific country. It also
encompasses various form of research to improve the level of customer reach. It
delivers wide variety of flavours. It enjoys the advantage over other competitors such
as differentiating in pricing and marketing strategies. It entails various costs and
financial statements such as cash flow and profit & loss of the enterprise.

2. Business details
Company name:
coffee at the beginning.
Address: Plaza del rey no.1
280009 Madrid, spain.
Telephone number:8500098886
Legal status: partnership

The business will: (Provide a brief description of what your business will do)
The business will deal in providing the services related to coffee. It provides various
ranges of coffee such as hot and cold coffee. It will deliver the different f;avours in
coffee which provides a wide range to the customers. It has flavours such as French
vanilla, caramel macchiato, Pumpkin spice, Mocha, Hazelnut.
3. Key personnel
Details of owner(s):
Name: John T.D. ally
Position/main responsibilities: chief executive officer (CEO)
Experience and knowledge of our industry: 10 years and specialised knowledge in
accounting and finance.
Previous employment: Costa coffee.
Key skills brought to the business: having a strong command on the decision making
power, communication and specialised ability in marketing.
Business experience and any training undertaken: Having experience of 6 years and
completed training of 2.5 years
Academic/professional qualifications: The professional qualification of masters in
adminisatration.

Most recent salary £ 1500
Other key personnel (including shareholders):
Name: Edward carlylee
Position/main responsibilities: Managing director .
Experience and knowledge of our industry: 7 years and developing strategies to
accomplish organisational objectives.
Previous employment: The roast.
Key skills brought to the business: Experience in developing plans which helps in
improving the revenue of the enterprise.
Business experience and any training undertaken:
Academic/professional qualifications: Masters in business administration ( specialised
in hospitality sector)
Most recent salary £ 1400

Vision
4. The business idea
The business idea is to deliver the coffee in different varieties such as hot and cold
coffee. It has various flavours and most distinct thing which make it unique from
its competitors. The strategy of pricing and ways to deliver the product to the
clients. The main objective of the organisation is to capture the large market
share. When an enterprise is capable to hold large market share, it will increase
the revenue of the enterprise.
5. Business goals
What do you want to achieve in your first year of business? (for example, turnover of
£100,000 or trading at break even)
In the first year of the business, it will able to cover at-least the variable cost incurred in the enterprise.
The turnover of the organisation will be € 200000 per annum. The profit margins whether gross or net
will be 30000 and 10000 respectively.

Where do you see your business in 3-5 years’ time?
 In the upcoming years, the coffee business will grow in terms of revenue and
will able to grow in terms of holding large market share. A grow rate of
approximately 20% and competitive advantage over other firms which exist in
the same industry. The goodwill of the firm will be enhanced by delivering the
best quality coffee and it is able to maintain the standards in terms of price,
packaging, product and place.

6. What the business does
Product/service Features Benefits
 
used in black
coffee and
complex flavour. It
has a softer taste
with lots of sugar,
berries and fruit.

fresh aroma and it
acts as a
antioxidant which
is beneficial for
skin and hair.
 
strong. It has bitter
flavour and it is
used in espresso
drinks and instant
coffee mixes.

energy and helps
in improving the
well being.
 
shots of espresso
and steamed milk.
It also contains
foam

of diabetes and
helps in burning
fat. It also reduce
cardiovascular
disorders.
  
  
  
  
7. What makes the business different
Your product/service is unique or different compared with the competition because:
 There are various features which makes the business different from other
competitors :
 pricing strategies : It has adopted a predatory pricing strategy. This pricing
technique states that prices are lower in the beginning than the other
competitors.
 Customer service : The main task of the business is to satisfy its target market.
The coffee must made according to the taste of the consumers which fulfils the
needs of the customers.
 Innovation and access to new technology : The new equipments and software
for taking orders are also used for coffee making.

8. Legal requirements
(including regulations and licences particular to your business)
The legal and insurance requirements that apply in your business are:
In every economy, there are various policies which are prepared by the government of
specific country. The legal requirements can be described as given below:
1. Quality certificate : There is a need to obtain the certificate of quality for
producing their products.
2. Partnership deed : As it is having a legal status of partnership. There is a need to
create the agreement which consists the names of the members, registered place and
object clause.
You will meet your legal and insurance requirements by:
1. There are various legal and insurance requirement which are to be followed
such as :
 obtaining patent : There is a requirement for obtaining the patent for the coffee
which helps in securing the recipe of the specific coffee.
 Insurance : There is a need to secure the fixed as well as non current assets
of the enterprise. There are various uncertainties which cannot be avoided by
the organisation. Therefore, it is crucial to secure the assets of the enterprise.

Marketing
9. Market research
The market research can be done by using STP approach :
 Segmentation : It includes fragmenting the markets on the basis of various
demographics such as age and gender.
 Targeting : It involves breaking the market into segments and design modified
marketing strategy, according to varied market segment.
 Positioning : It involves creating the impression of a specific brand in the minds
of target market. It includes distinguishing the one's brands from the other.
How you know this:
 Analysing: By analysing the internal and external structure of the organisation.
There are various ways of reviewing the different risk.
10. Profiling customers
The customer groups you will be selling to are:
1. The target customers which they are expecting to be its customers are the
persons who are between the age group of 18 to 30 years. This age group
highly consume the coffee and they are consuming for refreshing the mood
and enjoying the leisure time.
Your customer research has shown what your customers want is:
1. Low pricing : The customers should provide the products on low prices. The
minimum prices helps to increase the market share and earnings of the firm
should be increased.
2. High quality standards : the product delivered to the customers should be of
high quality. The high quality coffee, when consumed by the teenagers nad
adults helps in increasing the turnover of the organisation.
How you know this:
 The primary form of research is applied. It uses the opinions of the customers
and various stakeholders to boost the level of turnover of the organisation.

Number of customers you expect to win in each group and what they might pay:
Group Number of
customers
Price they might pay
per unit
1 5 £25
2 4 £20
3 6 £15
4 3 £30
5 7 £35
6 9 £22
11. Profiling competitors
Competitor name Strengths Weaknesses

Madrid.

large market share
of Madrid and enjoy
competitive
advantage.

improve the per unit
selling price.

manuel, LA
Palma

preferring this
brand over other
brands.

differentiation.

Madrid

gained positive
feedback from its
customers which
increases the
goodwill.

able to diversify its
operations.

house, Sopelna

workforce which
helps in delivering
the best services to
its customers.

and unplanned growth.
  

How you can improve on their offer and/or price(s):
 By regularly taking the feedback from the customers and modify the offer
available by the customers.
12. Managing market risks
Write down the risks you have identified:
1. There are various risks which are identified by the business can be described
as given below:
1. Credit risk : it is also known as default risk. When the enterprise lends some credit
to another parties, there are chances of default in the payments. It increases the debt
of the organisation.
2. Political risk : Every country is run by the government and the policies, rules and
regulations. The organisation has to follow all the policies framed by the government.
How will you manage these risks so that they become less of a threat:
1. For managing the risk of the business, it is necessary to keep check and
update the credit policies of the enterprise.
2. The enterprise should frame its policies in such a way that it should not be
impacted by the various macro factors of the environment.
13. Pricing
How you can calculate your prices:
 It can be estimated by determining the total cost of all the units purchased.
 An enterprise can apply formula to estimate the price : the total of cost price
and profit margin.

How your prices compare with the competition:
Product/service Your price(s) Range of competitor
prices (per unit)
1 £2.2 £3
2 £2.5 £2.5
3 £1 £1.5
4 £2 £2.5
5 £3 £3.5
6 £2 £2.2
Reasons for the difference between your price(s) and your competitors’ price(s):
 There is a difference between the competitor price and own price due to
various reasons :
1. The enterprise is charging low prices of coffee in relation to its competitors because
it is providing best quality services. The competitors prices are higher than the coffee
at beginning which is less preferable by the market.
14. Promotion and advertising
How and where will you promote your product/service?
 Inbound marketing : The coffee at beginning is using the pull marketing
strategy such as blogs, SEO, social media and various tactics to attract new
customers.
 Personal selling : The coffee at beginning uses personal selling to improve the
level of communication with customers.

Running the business
15. Staff
Role Total cost Necessary
experience
Specialist skills and/or
qualifications

role.
£500  
management
studies.
 £560  
quality
management.

specialist
£450  
bachelor degree
and have high
degree of
communication
abilities.
 £600  
advanced
leadership and
management skills
in team.
 £620  
analytical skills and
should know how
to use accounting
software.
16. Premises
Cost £
Premises required at start-up: £ 5200
Premises required in the future (if different): £7500
17. Suppliers
Your key suppliers and their credit terms
Supplier What you’ll buy from them Number of days’
credit
Mark ally Coffee machine. 90
Hawking Rassy Disposable cups and other
packaging material
80
Harry Cullen Blenders 59

Mark knight Water filtration system. 100
 
 
 
 

18. Equipment
Resource When How
funded
Cost £
per unit
£
Refrigerator system For the purpose of icing loan
from
bank
£500
Shelves For putting the cups and
aand mugs cupsan
Priv
ate
loan
£450
Ovens and toasters For offering complementary
dishes such as brownie.
priva
te
loan
£250
Containers, pumps for storing the coffee loan £200
Coffee equipment
cleaner

for blending coffee priva
te
loan
£400
   £
   £
   £
19. Managing operational risks
Risk Solution
Staff
 
occurs due to failure in
the process. There can be
mechanical failure,
workplace safety and
process quality. The
management can identify
the potential risk,
measuring frequency and
examine alternative
solution to correct the
same.

Suppliers
 
the interruption in the
services and rise in the
prices of raw materials,
services and project cost.

Finance
(The financial section of the template is intended for business planning purposes only. If financial tables are to be
used for any other purpose other than cash flow management, then we strongly recommend you consult an
accountant or tax advisor)
Please double click in the table below to access the embedded Microsoft Excel sheets to input your
figures, Microsoft Excel will automatically update the total for you. If you do not have access to
Microsoft Excel you can use the link below this table and save the file onto your PC. You can then use
Open Source Software such as Google Docs or OpenOffice to access the information by uploading the file
into this software. Please note that all tables can be customised and additional rows and categories can be
added.
20. Start-up costs
Calculate how much money you need before you start trading
Staff Salaries
£
500.00
Rent & Rates
£
215.00
Gas & Electricity
£
100.00
Insurances
£
700.00
Postage & Stationery
£
100.00
Repairs & Maintenance
£
25.00
Travelling & Motor Expenses
£
100.00
Loan Instalment
£
1,200.00
Telephone Expenses
£
51.00
Professional Fees
£
225.00
Advertising & Promotions
£
225.00
Miscellaneous Expenses
£
24.00
TOTAL £ 42045

* Total from here should be used in 22 Sourcing finance below
You can also download the start up costs table shown above in Microsoft Excel format.
Personal survival budget
Estimated annual personal expenditure (this helps you work out the minimum amount you
need to earn from your business in the first year and how much money you might need to borrow
to start the business)
Estimated expenditure £
Mortgage and/or rent 1500
Council tax 80
Utilities (gas, electricity, water etc) 70
Personal and property insurance 150
General housekeeping expenses (food etc) 100
Phone and internet 50
Car tax and insurance 20
Car running expenses 350
HP repayments 100
Hire charges 750
Subscriptions to journals, professional bodies, etc 10
Savings plans & pension contributions 25
Tax 30
National Insurance 10
0
Total personal expenditure 3245
Estimated personal income (after tax)
Income from family, partner (total) 3245

Other income (specify the source) 0
Total personal income 3245
Total survival income required from the business (after tax) 3245
Current income £ 3245
Current income £ 0

You can also download the personal survival budget table shown above in Microsoft Excel format.

21. Profit and loss forecast
Year 1
(£)
Year 2
(£)
Year 3
(£)
Total expected sales 65638 60000 65000
Less variable costs 20855 22250 25000
Gross profit (sales less variable costs) = 13645 14000 15250
Calculate your gross profit margin %
(gross profit divided by total sales x 100)
(A)
10.98% 13.75% 15%
Operating Expenses £
6,000.00
£
6,250.00
£
6,750.00
Staff Salaries £
2,580.00
£
2,750.00
£
3,150.00
Rent & Rates £
1,200.00
£
1,250.00
£
1,250.00
Gas & Electricity £
8,400.00
£
8,550.00
£
8,800.00
Insurances £
1,291.00
£
1,299.00
£
1,320.00
Postage & Stationery £
602.00
£
627.00
£
628.00
Repairs & Maintenance £
1,200.00
£
1,200.00
£
1,200.00
Travelling & Motor Expenses
£
14,400.0
0
£
14,400.0
0
£
14,400.0
0
Loan Instalment £
622.00
£
636.00
£
654.00
Telephone Expenses £
2,746.00
£
2,789.00
£
2,985.00
Professional Fees £
2,700.00
£
2,700.00
£
2,700.00
Advertising & Promotions £
304.00
£
319.00
£
326.00
Miscellaneous Expenses
£
42,045.0
0
£
80,625.0
0
£
1,57,782.
00
TOTAL EXPENSES £ £
2,738.00
£
7,291.00
£
15,775.0
0
Net Profit (Loss) Before Tax £
6,000.00
£
6,250.00
£
6,750.00
Total fixed costs 2738 7291 15775
Net profit (gross profit less fixed cost) 6000 6250 6750

Calculate your net profit margin (net profit
divided by total sales x 100) 9.14% 10.42% 10.38%
Calculate your breakeven Year 1
(£)
Year 2
(£)
Year 3
(£)
Total variable costs + total fixed costs (B) 23593 29541 40775
You can also download the profit and loss forecast table shown above in Microsoft Excel format.

22. Sourcing finance
Total borrowing requirement for the business
£
Start-up costs
2
0
0
0
0
Personal start-up contributions - 3245
Other start-up contributions - 0
Total required = 16755
= 0
23. Managing financial risks
(such as, sales are less than forecasted or start-up finance takes three months longer to obtain)
The risks that you have identified for your financial forecast are:
1. The creditors are continuously increasing which may improve the default risk of
the enterprise.
2. The investors are not able to plough funds in the organisation. Due to the
declining profits.
You can also download the sourcing finance table shown above in Microsoft Excel format.

24 Cash flow forecast
(Click on the tabs within the Microsoft Excel sheet to view the second 6 months and summary)

Forecast Actual Forecast Actual Forecast Actual Forecast Actual Forecast Actual Forecast Actual Forecast Actual Forecast Actual
INCOME
Cash from sales (incl. VAT) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash received from debtors 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Capital/loans received 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Other (please specify) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL £ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
EXPENDITURE
Wages to staff (incl. PAYE & NI) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Premises (rent, rates & utilities) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Telephone & Broadband 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Printing, post & stationery 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Advertising & promotion 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Bank charges 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Professional fees 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Insurances 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Bank/HP 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Equipment & vehicle leasing 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Payments relating to variable costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Capital Expenditure 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Other Payments 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
VAT 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Owner's wages/salary 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Owner's National Insurance 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Loan repayments (incl. interest) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Stock 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Consumables 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Other (please specify) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Other 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL £ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Income less expenditure 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Opening bank balance 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Closing bank balance 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
4 5 6 TOTALStart-up 0 1 2 3
You can also download the cash flow forecast table shown above in Microsoft Excel format (XLS, 64K).
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