Corporate Accounting and Business Advisory

This document provides a detailed plan for a café and cream business, including a written pitch, visual pitch, backers reward, business opportunity, customer needs and target market, social impact, relevant megatrends, similar successful campaigns, opportunity testing plan, sales and marketing strategy, and more.

Running head: CORPORATE ACCOUNTING AND BUSINESS ADVISORY
Corporate Accounting and Business Advisory
Name of the Student;
Name of the University:
Author’s Note

1Corporate Accounting and Business Advisory
Table of Contents
1.0 Café and Cream Pitch Plan........................................................................................................2
1.1 Written Pitch..........................................................................................................................2
1.2 Visual Pitch............................................................................................................................2
1.3 Backers Reward.....................................................................................................................4
2.0 Business Opportunity............................................................................................................4
2.1 Customer needs and Target Market..................................................................................4
2.2 Social Impact.....................................................................................................................5
2.3 Relevant Megatrends.........................................................................................................6
2.4 Similar Successful Campaigns..........................................................................................6
2.5 Opportunity testing plan........................................................................................................6
3.0 Sales and Marketing Strategy...............................................................................................7
3.1 Fundamentals....................................................................................................................7
3.2 Social Media and Free Publicity.......................................................................................7
3.3 Measurement and Information..........................................................................................8
4.0 Operational strategy..............................................................................................................8
4.1 Operational Structure........................................................................................................8
4.2 Outsourcing.......................................................................................................................9
4.3 Operational Risks..............................................................................................................9
5.0 Financial Plan.......................................................................................................................9
5.1 Profit and loss Statement...................................................................................................9
Balance Sheet.............................................................................................................................10
5.2 Capital and Funding Requirement..................................................................................12
5.3 Valuation and Justification..............................................................................................12
6.0 Reference............................................................................................................................13

2Corporate Accounting and Business Advisory
1.0 Café and Cream Pitch Plan
1.1 Written Pitch
The business of Café and Cream would be aiming to provide the best café and bakery
experience to the customers by providing different variety of beverages, pastries and bakery
products. The business would be launched at the beginning of 2020 in Sydney Australia. The
demand for coffee as a morning beverage is quite high in the market and this is the min reason
that several café outlets are flourishing in the area. The outlet of Café and Cream would be
providing different bakery products and also a place where people can enjoy their coffee in
peace. The business would also be dedicated to making contribution to social cause which would
be involving funding for orphanage children’s education and a weekly treat to all the pastries and
bakery stuffs which the business would be providing (Entrepreneur., 2013). In order to operate
with such a social cause, the management of Café and Cream has decided to take small donations
from the customers. In addition to this, the business would also be opting for a crowdfunding
program for raising the required capital for the business. The café business would be having their
book collection in the store itself so that the customers are able to enjoy coffee with a book of
their interest. The café will be well decorated with appropriate books placed in shelfs along with
coffee cups as a design.
1.2 Visual Pitch

3Corporate Accounting and Business Advisory

4Corporate Accounting and Business Advisory
1.3 Backers Reward
The backers for the business would be individuals who contribute to the needs of the
company for setting up the business and also helping the café business to maintain its social
objective. The amount which is to be contributed by the customers depends on them but a
minimum amount of $ 5 is kept. Anything above $ 5 will always be welcomed by the business.
In order to promote more backings from the customers, the café business would be providing
special discounts, free delivery services and thank you notes from their generous contributions.
Furthermore, some of the regular customers would also be provided complimentary snacks
judging from the overall contribution which is made by the customer.
2.0 Business Opportunity
2.1 Customer needs and Target Market
In Australia, the growth of cafe business has been significantly high which is mainly due to
the vibrant coffee culture which is followed. The growth which the café businesses operating in
Australia has experienced is immense which shows that the market is quite favorable for this
type of a business (IBISWorld ., 2019). In addition to this, the revenue which is generated by a
café business is expected to increase significantly in future years and the rate of increase is
anticipated to be 2.5%.
Figure 1: (Types of Coffee consumed in Australia)
Source: (Mordorintelligence.com, 2019)
The above pie diagram shows the demand for different types of coffee products in the market
and it can also help a business to effectively describe the target market of the business. The pie
graph shows that the demand for cappuccino is significant high as it is considered to be a popular
drink among the college students and teenagers. Latte and Flat White is more preferred by office
workers and household customers. This shows that a variety of coffee products are offered and
also preferred in the country. Further, the people of Australia are addicted to coffee products
which is the main reason that majority of the café shops being established are able to survive and

5Corporate Accounting and Business Advisory
also thrive. It is also anticipated that there would be further growth in the industry and the
estimation of growth is presented in the graph below:
Figure 2: (Growth in Coffee Business in Australia)
Source: (Mordorintelligence.com, 2019)
The above chart also makes it clear that the Australian coffee market is highly favorable for
any new entrants as well as long as they are able to combat the competitive pressure in the
market. The business of Café and Cream should be able to establish itself in the market as per the
anticipation of the management of the business (Burns & Dewhurst, 2016). The management of
the company is also confident that the business would be able to generate revenues and also
achieve growth in the operations of the business.
The target market of the business would be the office workers who would be the primary
customers for the business as the owners anticipate the café would specialize in their latte and
expresso. However, the management plans to keep something from each customer so that the
business can generated revenue from different segments of customers. The business would also
be offering bakery products and cookie which are even be for parcel or home delivery. In this
manner that the management of the company anticipates that they would be able to enhance the
sales of the business and thereby earn more revenues (Blackburn, Hart & Wainwright, 2013).
The café and cream business would also be setting up an environment where the customers can
have their coffee in peace. The café and cream business is anticipated to flourish due to the
quality of products which is offered by the business.
2.2 Social Impact
The business of Café and Cream would also be focusing on contributing social impacts of the
economy in which the business would be operating. The management of the Café and Cream

6Corporate Accounting and Business Advisory
would be contributing to educational needs of orphans and also provide them with treats once in
a week where the business would be offering any pastries or chocolate products to the orphans.
The owners of the business believe that in order to develop the economy and also ensure a bright
future for the orphan children, education is very much important. The business would be
contributing for their school fees and also their books and examination fees so that the orphans
are able to get basic and proper education. In order to support this social cause, the owner have
decided to take contributions from the customers of the business (Turner & Endres, 2017). Any
donations whatsoever would be welcomed and it is to be noted that thee funds which are
collected would be used for a social cause only. The business aims to ensure that the children are
provided with basic education so that they are able to at least shape their future.
2.3 Relevant Megatrends
The emphasis on education is not uncommon in developing country as the children are
considered to be the future of the economy. Education provides such children with the necessary
tools which can help them to shape their own futures. It is therefore, imperative that the focus
should be on development of proper educational facilities in the country. As per a report from
UNESCO, the global education system faces a shortfall of $ 26 billion and this shortfall is in
terms of educational facilities which can be provided to the children. This shortfall can be easily
covered by businesses and only a margin contribution is required towards the same. In the mid of
2013 and 2016, fortune 500 companies spent around $ 2.6 billion towards education of the
deprived and proper development of educational systems (Finch, 2013). In a similar manner, the
Australia government has also realized the importance of education in the economy as a whole.
The business of Café and Cream aims to contribute to the needs of the orphans so that they
are not deprived from basic education needs and the same would also be covered under the
corporate social responsibilities which is followed by the business.
2.4 Similar Successful Campaigns
The importance of education is well known among the people of Australia and for some
reasons most of the business are target this aspect as a contribution to the corporate social
responsibility needs of the business. One instance which can be provided is to the business of
Rio Tinto which is engaged in the business of mining and exploration, contribute to the
education programs in Australia and UK. The company has provided literacy materials to
250,000 Australian families and also offered scholarships to students are very good in studies.
This can be viewed as an important contribution which is made by the business in such a sector.
In addition to this, the company has also provided different types of educational programs so that
the educational system for the children can be made more effective. Therefore, considering the
impact which the business of Rio Tinto had on the Australian economy, the management of Café
and Cream would be aiming to make a similar impact on the surrounding area. The management
of the company is of the opinion that the business would be able to accumulate appropriate funds
from the customers and thereby ensure that the campaign which the business is planning is a
success.
2.5 Opportunity testing plan
The testing of the campaign is also crucial as the same would allow us to get an idea
regarding the success of the social project which is undertaken by the business. The management
of the company anticipates that the business would be able to accumulate proper funds from the
operations of the business and therefore would be able to test the social plan which the

7Corporate Accounting and Business Advisory
management of the company intends to carry forward with the operations of the business (Igou
& Coe, 2016). The business can also test the plan by considering the social projects which are
taken by similar businesses for the welfare of the society. For example, McDonalds also request
customers to donate a certain amount for the welfare of the students and the policy which is
followed by the business is quite popular.
3.0 Sales and Marketing Strategy
3.1 Fundamentals
The business in order to formulate a proper sales and marketing strategy, needs to consider
the factors which affects the operational process of the business. The 4 Ps of marketing mix is
applied in order to better understand the position of the new business in the market.
 Price: The price which will be charged by the business for its products have a direct
effect on the overall demand which will be enjoyed by the business. The management of
the business needs to survey the prices which is charged by competitors for determining
the price which is to be charged by the business (Cordova, Dolci & Gianfrate, 2015). The
price of the coffee products is to be kept as low as possible so that the business is able to
attract more customers n thereby generate more revenue from operations of the business.
In addition to this, the business would also be offering discounts so that the sales of the
business can be enhanced more.
 Place: The place where the store is going to be opened is in Sydney and the business
would be focusing on establishing the shop near a residential area as the target market of
the business are office workers. The business needs to ensure that a proper location is
selected for opening the business as location of the shop also helps the business to attract
customers Further, the business would also be looking to create a suitable environment in
the store with proper amenities, good service and books which will help the business to
retain customers.
 Product: The products are the main factors which influences a business and it is the
products mainly which would be attracting the customers. The business of Café and
cream would be aiming to offer the best quality of beverages and snacks at a reasonable
process. The main advantage of the business would be the diversity and choices which
the business will be having in the products which would be available to the customers
(Ai, 2013). The business also intends to offer complimentary snack with beverages if
more than one cup is bought. Therefore, the policy of the business would be to ensure
that the quality is maintained for the products.
 Promotion: This is another important factor of marketing and it is essential as the same
spreads awareness among people regarding the products which are offered by the
business. The business of Café and Cream have the option to use any media for the
purpose of promoting the new café shop around the corner. The management is of the
opinion that the business needs to move for ward with printing media advertisement so
that office workers and households are aware of the shop and the products which are
offered by the shop.
3.2 Social Media and Free Publicity
The management of the business would also be using social media as a tool for spreading
information and also for promoting the operations of the business. Social media also provides the
business an opportunity to spread the social cause message to as many people as possible. In

8Corporate Accounting and Business Advisory
addition to this, the business intends to launch online order system six months after the business
has been successfully established. The business would then ask contributions from customer
even online so that the management can effectively execute their social plan and meet the
expectations of as many children as possible (Barlan-Espino, 2017). Further, the social media
can also be used to announce special offers, combos which the café will be offering thereby
boasting the sales for the business.
In order to effectively promote the products, the business would be offering free cup of
coffee for every customer who would be visiting the shop on its first day. This is also a form of
advertisement which would be boasting the sales and profits of the business.
3.3 Measurement and Information
The measurement of the success of the business would be measured from the numbers of
likes which the business would receive on social media. The advertisement campaign would be
considered to be successful if proper demand is noticed in the day to day sales of the business. In
addition to this, the business would also be considering the feedbacks which is received from the
customers. The information which are collected by the management would help in decision
making process regarding how the business will be proceeding in the operations of the business.
4.0 Operational strategy
4.1 Operational Structure
The nature of the business which is being set up will be a partnership form of business with
two partners at the top level of management and all the major decisions would be taken by the
partners or the owners of the business. The business would be establishing managers for looking
after different operations such as finance, operations, marketing. This would help the
management of the company to effectively manage and segregate the main activities of the
business which would promote efficiency in the operations of the business. The operational
structure of the business is shown below:

9Corporate Accounting and Business Advisory
Partners/Owners
Store Manager
Service Executive
Kitchen Staff members
Staff members and Cleaners
Marketing Executive Finance Executive
Figure 3: (Chart showing operational structure of the Business)
Source: (Created by Author)
The operational structure is formulated so that efficiency is maintained in the operations of
the business. The staff members would be expected to treat the customers in a pleasant manner
and should demonstrate a cheerful behavior in front of the customers of the business. The
operational structure of the business depends on the employees and staff members so that the
efficiency of the business can be enhanced. The operational structure shows that all the major
decisions are taken by the owners and implementing the decision which are taken by the
management of the company.
4.2 Outsourcing
The staff members of the business would be recruited from the Australian market and the
employee would be recruited on the basis of their experience in such a shop or similar kind of
work. The employees would be selected on the basis of their skills and how well they can handle
customers demand in case of excessive demand in the store. The outsourcing of the resources
would also be from the local markets for raw materials like coffee beans, sugar, breads and
cream. It is very important for the business to recruit skilled employees so that the efficiency of
the operations of the business. The outsourcing of human resources is an important step for
ensuring that the operational efficiency of the business is maintained.
4.3 Operational Risks
The operational risks of the business refer to the risks which is faced by the management of
the café in effectively managing the day to day operations of the business. The operational risks
of the business are effectively can be managed by setting up a proper internal control structure in
the operations of the business. One of the risks which is faced by the business is competitive
pressure which is faced by businesses in managing the operations of the business. High

10Corporate Accounting and Business Advisory
competition is likely in the market and therefore appropriate strategies need to be formulated so
that the business is able to combat the competition in the market (Levy, Reinecke & Manning,
2016). Another major risk which is faced by the business is retention of employees of the
business which is a major issue and the management of the company needs to formulate
appropriate strategies so that the operational process can be Stable.
5.0 Financial Plan
5.1 Profit and loss Statement
Projected Income statement for a period
Particulars 2020 2021 2022
Sales 900,000 1,200,000
1,440,00
0
Cost of sales 360,000 480,000 576,000
Gross profit 540,000 720,000 864,000
Expenses
Rent 36,000 36,000 36,000
Salaries/Wages 300,000 370,000 420,000
Utilities 15,000 24,000 30,000
Advertising and sales promotions 20,000 40,000 50,000
Others 6,000 14,000 14,000
Total expenses 377,000 484,000 550,000
Net profit before tax 163,000 236,000 314,000
Tax @ 30% (Income Tax) 48900 70800 94200
Net profit 114,100 165,200 219,800
The above table shows the estimated profit and loss statement for the business of Café
and Cream. The table shows the sales which is anticipated by the business in total considering
the sale of coffee products, bakery goods and other products. The sales of the business in 2020 is
projected to be $ 900,000 which would increase as the name of the business spreads out in
different regions. It is assumed that the costs of the business for raw materials will be 40% of the
estimated sale amount considering the costs of materials and labors. The tax rate for the business
is considered to be 30% as per the Australian tax rate.
Balance Sheet
Projected Balance Sheet
2020 2021 2022
Particulars Amount Amount
Amoun
t Amount Amount Amount
ASSETS
Cash in Hand
$
150,000.00
$
180,000.00
$
216,000.00
Security Deposit for
Premises
$
50,000.00
$
-
$
-

11Corporate Accounting and Business Advisory
Total Current Assets
$
200,000.00
$
180,000.00
$
216,000.00
Equipment
$
600,000.
00
$
750,00
0.00
$
900,000.0
0
Less : Accumulated
Depreciation
$
186,000.
00
$
414,000.00
$
265,00
0.00
$
485,000.00
$
300,000.0
0
$
600,000.00
Furnitures
$
500,000.
00
$
750,00
0.00
$
750,000.0
0
Less : Accumulated
Depreciation
$
80,000.0
0
$
420,000.00
$
240,00
0.00
$
510,000.00
$
300,000.0
0
$
450,000.00
Total Non-Current
Assets
$
834,000.00
$
995,000.00
$
1,050,000.0
0
TOTAL ASSETS
$
1,034,000.0
0
$
1,175,000.0
0
$
1,266,000.0
0
LIABILITIES:-
Accounts Payable
$
400,000.00
$
450,000.00
$
420,000.00
Other Payables
$
140,000.00
$
100,000.00
$
120,000.00
Unearned Sales
Revenue
$
40,000.00
$
50,000.00
$
-
Accrued Expenses:
Salary of Support
Staffs
$
20,000.0
0
$
15,000.
00
$
35,000.00
Wages of Labor
$
30,000.0
0
$
15,000.
00
$
25,000.00
Rent
$
10,000.0
0
$
60,000.00
$
20,000.
00
$
50,000.00
$
30,000.00
$
90,000.00
Total Current
Liabilities
$
640,000.00
$
650,000.00
$
630,000.00
Loan from Bank
$
200,000.00
$
120,000.00
$
120,000.00
Total Non-Current
Liabilities
$
200,000.00
$
120,000.00
$
120,000.00
TOTAL LIABILITIES
$
840,000.00
$
770,000.00
$
750,000.00
NET ASSETS $ $ $

12Corporate Accounting and Business Advisory
194,000.00 405,000.00 516,000.00
EQUITY:-
Owner's Capital
$
150,000.00
$
420,000.00
$
470,000.00
Add: Net Profit for the
Year
$
114,100.00
$
165,200.00
$
219,800.00
Add: Crowdfunding
$
29,900.00
$
19,800.00
$
26,200.00
Less: Drawings
$
100,000.00
$
200,000.00
$
200,000.00
TOTAL EQUITY
$
194,000.00
$
405,000.00
$
516,000.00
The above table shows the balance sheet of the business of Café and Cream which shows
that the main assets which the business would be utilizing are furniture and Equipment which
will be used by the business on a regular basis. The business would be expanding the size of
operations of the business so that the business is able to enhance the revenue and profits of the
business. The owner would be providing the maximum capital which would be required by the
business and a portion of the capital would also be acquired from crowdfunding sources which
would be used solely for the benefits of the orphan children. The business would also be taking
loans for create a proper capital structure in the business and also for taking advantage of
leverage effect.
5.2 Capital and Funding Requirement
In order to establish the café business and also operate in an effective manner, the
management of the company would be appropriate source of capital for the purpose of financing
the operations of the business. The owners would be contributing major portion of the capital for
initiation of the business. The owners of the business would be contributing an amount of $
150,000 combined for meeting the start-up costs of the business. In addition to this, the business
would also be taking loans from banks for $ 200,000. The capital structure of the business would
be made up of both owner’s capital and debt capital. This is done so that the business is able to
take advantage of leverage effect in the business and thereby take advantage of debt capital. The
business would also be using crowdfunding as a source for gathering funds for the social cause
of the business. The management of the business has decided to use Kickstarter site for raising
funds online. Further the management has decided to use direct approach as well which will
involve request the customers to pay a small portion for the welfare of the orphans. The business
estimates that the management would be able to raise an amount of $ 30,000 approximately in
the first year considering the success of McDonalds and other similar businesses.
5.3 Valuation and Justification
The management of Café and Cream has decided to use asset valuation method for
ascertaining the value of the business. This valuation method ignores goodwill in the
computation process and only considers the values for total assets and total liabilities for
computation. In respect of the business of Café and Cream, goodwill does not exist for the
business and therefore, this method is most appropriate for valuation of the business.

13Corporate Accounting and Business Advisory
This method of valuation deducts the figure of total liabilities of the business from the value
of total assets of the business. Therefore the computation of valuation of the company is shown
below:
Value of the Business=Total Assets−Total Liabilites
¿ $ 1 ,266 , 000−$ 750 , 000
¿ $ 516 , 000
The valuation for the business of Café and Cream for the third year is shown above to be $
516,000.
6.0 Reference
Ai, T. V. (2013). Business Plan for A European Style Coffee Shop In Ho Chi Minh City. Case:
ATC, 72.
Australia Coffee Market | Growth | Trends | Forecast. (2019). Mordorintelligence.com.
Retrieved 7 September 2019, from https://www.mordorintelligence.com/industry-
reports/australia-coffee-market
Barlan-Espino, A. G. (2017). Operational efficiency and customer satisfaction of restaurants:
Basis for business operational enhancement. Asia Pacific Journal of Multidisciplinary
Research, 5(1), 122-132.
Blackburn, R. A., Hart, M., & Wainwright, T. (2013). Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development, 20(1), 8-27.
Burns, P., & Dewhurst, J. (Eds.). (2016). Small business and entrepreneurship. Macmillan
International Higher Education.
Cafes and Coffee Shops – Australia Industry Report | IBISWorld . (2019). Ibisworld.com.au.
Retrieved 7 September 2019, from https://www.ibisworld.com.au/industry-trends/market-
research-reports/accommodation-food-services/cafes-coffee-shops.html

14Corporate Accounting and Business Advisory
Cordova, A., Dolci, J., & Gianfrate, G. (2015). The determinants of crowdfunding success:
evidence from technology projects. Procedia-Social and Behavioral Sciences, 181, 115-
124.
Entrepreneur. (2013). The Basics of Crowdfunding. [online] Available at:
https://www.entrepreneur.com/article/228125 [Accessed 7 Sep. 2019].
Finch, B. (2013). How to write a business plan (Vol. 35). Kogan Page Publishers.
Igou, A., & Coe, M. (2016). Vistabeans coffee shop data analytics teaching case. Journal of
Accounting Education, 36, 75-86.
Levy, D., Reinecke, J., & Manning, S. (2016). The political dynamics of sustainable coffee:
Contested value regimes and the transformation of sustainability. Journal of
Management Studies, 53(3), 364-401.
Turner, S., & Endres, A. (2017). Strategies for enhancing small business owners' success
rates. International Journal of Applied Management and Technology, 16(1), 3.