This business plan outlines the financial planning, guerrilla marketing strategies, and location considerations for starting a successful coffee shop. It includes expert insights on how to attract customers and generate profits.
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Running Head:BUSINESS PLAN1 BUSINESS PLAN FOR A COFFEE SHOP NAME INSTITUTION DATE
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BUSINESS PLAN2 Local coffee addicts need an effective center of accessing cup of coffee away from daily stress. The location of the coffee bar is serene and cool since clients can read their book or meet a friend(Casadesus-Masanell & Ricart, 2010). There is growing demand for such places in the culture capitalized markets. A good business plan for this small business can help compliment customers services. It is a formal communication of business goals, objectives reasons and plans for reaching and surpassing the goals. Business plans sometimes target changes in branding, perception by customers, taxpayer and the community at large. Organisations going through a significant change or those planning a new venture need to come up with a business plan since it’s a way for investors to look at how their investment will bring back their investment return. These business plans could be either internally or externally focused. Externally focused plans aims goals that are critical to external parties such as financial stakeholders. Internally focused business plans focus more on intermediate goals required to reach the external goals, which covers the development of new service or products, reconstructing or refurbishing a business. Plans that determine and internally target goals and provide general guidance often meet their strategic plans. The business plan provides that this coffee center should be located in a walking distance from a different institution such as institutions. The financial business plan provides that the initial capital should range from $ 140, 000 to $170, 000. The extended options provide that $30, 000 will be obtained from commercial bank loans. Financial Business Plan The outline of the financial business plan for to he small coffee business involves an expectation of revenues growth based on performances trends(Hawkey 2017). Importantly, the financial plan provides that the net growth of the business should record reasonable sales
BUSINESS PLAN3 revenues that range from $500,000 to $700,000 in a period of three years. Highlights in the financial plan generate a different relationship of total sales of coffee with gross margin in a fiscal year. These highlights help in creating the better financial plan based on the potential growth of the business and current performances. The outline of the financial small business plan is developed based on organizational goals and objectives. Importantly, the coffee business is able to transform the potential market strategies into expenditures through cost estimation plan. The creation of revenue model helps in designing good assumption on setting the price of a cup of coffee and total sales per unit customer(Casadesus-Masanell & Ricart, 2010). The financial plan provides better forecasting methods of total sales of goods. Equally important, administrative expenses are accounted for in the financial statements to designs expectation on facilities such as recurring legal expenses, insurance, and rent. Procedures for developing personal costs are developed through a financial document while consulting customers' services. Additionally, the financial expenses of upgraded the coffee business system are accounted for in the business plan as renovation and expansion facilities. Guerrilla Marketing Strategy Marketing strategies consider different Guerrilla designs in exposing services and goods based on conventional characteristics. These features help in inspiring the business owners by capturing imagination to converts them into sales. Importantly, the Guerilla marketing designs some better understanding of the potential customers. In this case, the business owner needs to be creative in marketing strategies. This effort helps the owner to have a better assessment of the profit not a number of new customers(Cosh, Cumming, & Hughes, 2009). Fast decisions making are enhanced through leveraging free media on designing strategic partnership system. The
BUSINESS PLAN4 ability of the business owner to predict customer's behaviors enables the coffee business to have successful strategies to market its products. Equally important, there are different measures of the business success based on targeted customers and vision and missions goals. In most cases, Guerilla marketing helps in campaigning for similar cultural values, especially on the consumptions patterns. The designation of marketing strategies establishes excellent customer's services that help in establishing development plan of coffee business. There is an additional provision like Wi-fi services that attract more customers especially those seeking network connection. The marketing strategies in the coffee business provide quality coffee to the potential customers. The upsurges prices of the coffee establish convenience services where customers are served by dedicated staffs. Training models are encouraged in business to make new staff conversant with different serving machines(Cosh, Cumming, & Hughes, 2009). The Guerilla marketing strategies have designs some better environments where coffee shoppers can enjoy the tranquility of the coffee center. Additionally, these marketing strategies provide incentive programs where frequent customers are rewarded with good offers. This strategy is developed by providing discount cards to all visitors of the coffee shop. Appropriate Location of Coffee Business The position of the coffee business is influenced by the marketing ideas of evaluating the strategic place where there is the higher density of students. Probably, the best place to allocate the coffee business is Java Coffee House where people are free to enter an exit. It is essential to locate the specialty coffees to place where people are willing to pay for small snacks. Another factor that influences the purchase of a coffee product is the competitive situation of a place. Immediate areas of locating coffee shop have designs better parking lot as additional incentives
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BUSINESS PLAN5 in the competition with other businesses(Cosh, Cumming, & Hughes, 2009). The only solution for the first store would be placing the coffee shop in a strategic place. This would help reduce uncertainties in operations of the second store. Importantly, many customers would be motivated to purchase in the second store thus increasing marginal profits of the store. The main reason for allocating the store in a strategy is to solve the biggest challenge of distributing products. Importantly, the improvement plan would be seen in the supply chain, distribution networks, inventory, physical plant, an infrastructure, and the existing basement of the customers in the coffee business. The new business will have no support from any loan offering organization. Therefore, it will need a strategic place to have sufficient management funds. Strategic allocation of the second business would help attract customers through the offering of purchasing incentives like a discount(Hawkey 2017). Equally, the methods of improving the quality of the coffee would help in attracting more customers especially when the organization has an insufficient income of running it. With these services in the new allocation, it would help to increase sales revenue from $500,000 to $700,000. Plan of Securing Sources of Debt in the New Store The new store is planning to expand on the good production to involve products such as snacks, coffee, tea, and other beverage in the market(Hawkey 2017). This plan is speculated to cover the 2,000 square feet to help many of its clients have specious environments of resting after coffee or before. With these additional services, it will be easy for the business to generate more profit based on the organization goals of the small business plan. In the long last, it would be easy to secure loans and debts services acquired in the starting up the plan of the organization.
BUSINESS PLAN6 The operational goals of designing high-quality coffee would help in attracting more customers to purchase the coffee. This plan will be developed by increasing ingredient in the coffee while adhering to the policy of preparing beverage drink. In most cases, these services will provide the good layout of new store services, better menu listing, and marketing activities. As a result, there will be the higher marginal profits due effectiveness of the maximization plan for the sales of coffee in the new area(Hawkey 2017). With these financial incentives, it will be possible to repay debt acquired while starting the new coffee shop. Equally important, the consumption of the coffee is normally analyzed in the experience of new customers in the market system. In most cases, this new business normally acquires loan services to provide security to current operations of the business. As such, it would important to design alternative ways of generating income should the current business fall(Hawkey 2017). In this case, introducing new products alongside with coffee would help increase financial resource coverage. This would help attract customers who are tempted to buy snacks to equally purchase coffee. As a result, there will be increased profit to enable the process of paying debts.
BUSINESS PLAN7 References Casadesus-Masanell, R., & Ricart, J. E. (2010). From strategy to business models and onto tactics.Long range planning,43(2-3), 195-215. Cosh, A., Cumming, D., & Hughes, A. (2009). Outside entrepreneurial capital.The Economic Journal,119(540), 1494-1533. Hawkey, J. (2017).Exit Strategy Planning: Grooming your business for sale or succession. Routledge.