Business Plan for a Snack and Coffee Bar in Sydney

This business plan outlines the strategy for a snack and coffee bar in Sydney, targeting college students, business people, and the employed. The plan includes market research, financial projections, and risk management strategies.

Business plan
Name of student
Name of instructor
Name of institution
Date

Table of Contents
The Executive summary..........................................................................................................3
Business description.................................................................................................................4
Market segment........................................................................................................................5
Market niche and share...........................................................................................................6
Research and development......................................................................................................6
Operations segment..................................................................................................................7
Management support...............................................................................................................7
Financial segment.....................................................................................................................8
Pro forma balance sheet.......................................................................................................8
The income statement...........................................................................................................9
The cash flow statement.......................................................................................................9
Critical risk strategy................................................................................................................9
Harvest strategy.....................................................................................................................10
Milestones schedule................................................................................................................10
References...............................................................................................................................11

The Executive summary
The business venture is a snack and coffee bar in Sydney. The bar will employ chefs
with great experience in the coffee making industry to ensure total customer satisfaction. The
bar will serve the customers with coffee and snacks ordered from a wide selection available
in the menu. The bar will have a lounge with leather seats, screens and beautiful coffee tables
where the customers’ seat. The lounge will also offer free WIFI for the customers and
entertainment such as music and computer games. Additionally, the lounge will show
football all football matches from all the leagues to keep the customers entertained. The
coffee bar will install coffee making machines at strategic points to allow the customers to
make coffee while enjoying the various activities in the lounge. The beautiful lounge with
entertainment will attract more customers who buy coffee and snacks thus increasing revenue
(Juneja, 2018).
The coffee and snack bar will experience a wide market share in Sydney made up of
students, the working class, football fans and the business people. Sydney enjoys a wide
untapped business of people looking for high-class coffee bars that sell at affordable prices.
Therefore, the coffee and snack bar will have many customers since most coffee shops in the
town charge expensively. Furthermore, the business does coffee deliveries to events and
offices, which allows tapping a wide market share for the business. The deliveries will also
increase the sale units achieved in each period (Maloney, 2015). Likewise, the main selling
point of the business, which includes the high-end lounge with leather seats and
entertainment will attract many customers. The customers will come since most look for
places to relax while taking coffee. Furthermore, featuring major sporting events in the coffee
shop will attract many customers especially during the world cup.
The business requires 100,000 dollars to start and operate. The amounts will go
towards the payment of various expenses that ensure the success of the business start and

operations. The expenses include payment for operating licenses to the local government. The
other expense will go towards the recruitment and training of employees to work at the
business. Finally, the other expenses include the purchase of entertainment equipment such as
the televisions, coffee tables and leather seats for the lounge. Other expenses will go towards
the decoration of the lounge and the exterior appearance of the shop (Boag, 2018).
On the other hand, the financial projections show that the business will generate
income from the sale of coffee and snacks. The coffee and snack bar will generate an
approximate sales revenue of 800,000 dollars due to the high customer potential in Sydney
town. However, the coffee and snack bar will have expenses such as salaries, repairs and
income tax. The production expenses will amount to an approximate annual total of 200,000
dollars. The deduction of the expenses from the sales revenue will result in a gross profit of
600,000 dollars.
The coffee and snack bar will require the conduct of research into the various coffee
brands available in the market. The aim of the research will include the discovery of a special
taste of coffee to serve the customers (Grunig, 2013). The special brand and taste of coffee
will enable the business to compete with other business in the market. Furthermore, the
research will aim at developing the best ambience at the coffee shop to ensure customer
comfort and satisfaction.
Business description
The business deals in the sale of coffee and snacks to the customers. The customers
check the menus and inform the waiters about the choice of coffee and snack. The snacks
include pancakes, cupcakes, muffins and buns. The customers wait for a maximum of ten
minutes before receiving the order. Moreover, the does coffee and snacks delivery to
customers’ homes, offices and places of business (Dobes, 2016).

The coffee and snack industry has enjoyed success over the years since most
customers preferring to relax over a cup of coffee and snack. The customers include college
students, business people and employees. The various persons have enabled the growth and
development of the industry by increasing consumption (Gleeson, 2018). For example, the
students like taking coffee in the morning before classes while the employed persons take
coffee in the evening after work. The businesspersons also use the coffee places to discuss
deals and sign contracts.
The business has the potential of generating huge profits monthly by increasing the
customers who visit the place (Juneja, 2018). The potential of generating huge profits is
supported by the many coffee and snack customers available in Sydney. On the other hand,
the business has the goal of becoming the leading coffee business in the industry. The goal
will require beating the competition available in the market, which the business will easily do
with the affordable prices offered. The business will increase the sales units by charging low
prices for similar coffee and snacks services offered by competitors (Mandviwalla, 2015).
The business has achieved the milestone of serving the customers with unique coffee tastes
and snacks.
Moreover, the business has managed to capture qualified and experienced chefs who
make sweet coffee and snacks. On the other hand, the coffee and snack bar will provide
unique coffee made from the rare brands of coffee in the market. Moreover, the business has
experienced chefs who understand the unique tastes of snacks required by the customers.
Market segment
The business targets a market segment made up of college students, business people
and the employed. The groups make a wide market for the coffee and snacks business and
could result in the achievement of the projected sales (Dobes, 2016). Sydney promises the
many customers due the many colleges, businesses and companies available. The schools

increase the student customers while the businesses and companies increase the workers and
business people clientele. Therefore, the business has a great opportunity of making great
sales and earn the projected revenues (Olsen, 2018). The business will also have the ability to
beat the competition in the market by selling the coffee and snacks at affordable prices. The
low prices will attract students who make up a huge market share in the market.
Market niche and share
The business faces stiff competition from other local coffee shops and global brands
such as Starbucks. The other coffee sellers especially Starbucks poses competition to the
business due to the ability to sell coffee at low prices, which attracts customers (Suzanne de
Treville, 2016). However, the business has a marketing strategy that will enable market
penetration. The business will engage the low pricing strategy to enable market penetration.
The low and favourable prices charged for high-quality coffee and snacks will attract the
customers.
The business will also adopt a pricing policy that will ensure selling the coffee and
snacks at prices lower than the competitors (Perks, 2017). The business will continuously
collect market price information and set prices at a lower cost than other coffee sellers.
Additionally, the business will use social media advertising to inform the customers about the
products. The social media marketing will take place through the bar’s Facebook, Instagram
and Twitter pages.
Research and development
The business will engage coffee experts in the research for rare coffee brands both in
the local and global markets (Smet, 2018). The researchers will come up with the best brands
and tastes of coffee in the market to increase customer satisfaction. Furthermore, the business

will engage in research to develop a unique and different brand of coffee that competitors
cannot imitate.
Operations segment
The coffee and snack bar is located in the heart of Sydney. The location allows the
business to easily access highly qualified and trained experts to work in the coffee and snacks
sections (Weber Mark, 2012). Sydney has a wide pool of experts who come to the town to
look for jobs. However, the employees charge high wages due to the urban nature of the
town. The business does not feel the effects of the high wages since the employees will
produce high-quality output that increases the sales revenues. Moreover, the town also has a
good supply of inputs due to the availability of markets where customers bring produce. The
suppliers also feel comfortable supplying produce to Sydney thus allowing the business to
receive the required inputs.
Furthermore, the town has many potential customers due to the businesses, companies
and colleges available. Therefore, the business has the ability to acquire a wide market share
from the potential customers. On the other hand, the business has community support since
the products are legal and fit for human consumption. Additionally, the bar provides
employment opportunities for the community (Nigel Slack, 2013).
Management support
The business will employ various experts to work in the managerial ranks and
customer services delivery. The various key personnel will include the general manager who
has the responsibility of accounts auditing, procurement and recruitment of employees. The
general manager should have pursued a business course and have experience in
organisational management (Gleeson, 2018).

Furthermore, the bar will employ an operations supervisor who will conduct internal
operations audit and daily management. The operations supervisor should have a background
in operations management and auditing to enable proper management. The business also
requires waiters and chefs to serve the customers and prepare the coffee and snacks. The
chefs and waiters should have a background in food and beverage and adequate experience in
hospitality (Griffin, 2018).
The role of the entrepreneurs include providing capital for the business and
performing all the necessary actions to start the business (Gleeson, 2018). Additionally, the
entrepreneurs will perform employee sourcing activities to ensure the involvement of experts
in business commencement. The entrepreneurs also develop the operations blueprint for the
business to follow in the service delivery.
Financial segment
Pro forma balance sheet
Details 2018 2019 2020
Goodwill 400000 400000 400000
Furniture and fittings 164000 82000 0
Inventory 45000 51000 53000
Cash in hand 235000 306000 422000
TOTAL ASSETS 844000 839000 875000
Equity 438000 499000 606000
Loans payable 180000 93000 50
Accounts payables 226000 247000 268950
TOTAL LIABILITIES AND 844000 839000 875000

EQUITY
The income statement
Details 2018 2019 2020
Projected unit sales 160000 160000 160000
Average unit price 5 5 5
POTENTIAL
SALES
TURNOVER
800000 800000 800000
Unit production
costs
1.25 1.25 1.25
Cost of sales 200000 200000 200000
Gross profit 600000 600000 600000
Operation costs 250000 30000 20000
Net profits before
tax
350000 570000 580000
The cash flow statement
Details 2018 2019 2020
Beginning cash balance 9000 120000 4000
Cash inflows
Sales income 700000 600000 650000
Accounts receivables 10000 0 0
Total inflows 710000 720000 654000
Total cash outflows 590000 680000 600000
Operating cash balance 120000 40000 54000

Critical risk strategy
The business faces various risks that could hinder the successful operations. The
business faces the risk of inadequate capital to begin the operations and acquire assets (Cole-
Ingait, 2018). The risk is present since the lenders may fail to invest in the business or offer
fewer amounts than required. Therefore, the business will fail to achieve the total target
required to launch the business. On the other side, the business faces the risk of not meeting
the customer requirements. The risk could arise from the inability to identify the exact
customer tastes and preferences in the coffee and snack market. Therefore, the failure could
cause the risk of customer loss due to dissatisfaction. (Brockett, 2012).
Harvest strategy
The coffee and snack bar will employ an exit strategy that will focus towards the
increase of outlets and strengthening the brand name. The business will engage in marketing
to ensure a strong brand equity (Brockett, 2012). The brand equity will win market share and
beat the competition for the business without having to invest in marketing. Finally, the
business will open up many outlets in Australia to reach wider markets and increase the sales
revenues.
Milestones schedule
Milestone Period Responsibility
Collection of initial capital 3 months Owners, investors, lending entities
The launch of coffee and snack bar 1 month Owners and managers
Recruitment and training of employees 3 months General manager
Marketing campaign 6 months General manager
Opening of branches 12 months Owners
Harvesting 6 months Owners and investors

References
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14, 2018, from https:www.sailthru.com
Brockett, C. &. (2012). Enterprise Risk Management Through Strategic Allocation of
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http://www.jstor.org/stable/41350678
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from Chron: www.smallbusiness.chron.com
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Guide for Busy Public Sector Managers. Australia: ANU Press. Retrieved from
Management Study Guide: https://www.jstor.org/stable/j.ctt1rrd7jr.10.
Gleeson, A. (2018). Examples of Well-Known Business Models. Retrieved May 14, 2018,
from articles.bplans.co.uk
Griffin, D. (2018). Types of Employees Appraisal Systems. Retrieved from Chron:
smallbusiness.chron.com
Grunig, J. (2013). Excellence Theory. Retrieved from Excellence Theory Website:
http://excellencetheory.wordpress.com
Juneja, (2018). Management Study Guide. Retrieved from Management Study Guide
Website: https://www.managementstudyguide.com
Maloney, J. (2015). Entrepreneur. Retrieved from Entrepreneur Website:
https://www.entrepreneur.com
Mandviwalla, M. (2015). Fox School of Business. Retrieved from Fox School of Buisness
Website: http://www.community.mis.temple.edu

Nigel Slack, A. B.-J. (2013). Operations Management (7 ed.). Madrid, Spain: Pearson.
Retrieved from https://www.pdfdrive.net/operations-management-e19944602.html
Olsen, E. (2018). Strategic Implementation. Retrieved from On Strategy Website:
https://www.onstrategyhq.com
Perks, R. (2017). Quality Control Systems and Customer Satisfaction. Retrieved April 21,
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Smet, A. D. (2018). The Agile Manager. McKinsey Quarterly China. Retrieved from
http://www.mckinsey.com/insights/china
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