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Paper on Financial Plan of Cozy Coffee Shop

   

Added on  2019-09-19

14 Pages1543 Words304 Views
Cozy coffee shopFinancial Plan

Table of ContentsIntroduction......................................................................................................................................2Sales strategy...................................................................................................................................2Sales forecast...................................................................................................................................3Personnel plan..................................................................................................................................4Financial plan...................................................................................................................................5Projected Cash flow statement.....................................................................................................7Projected profit and loss statement..............................................................................................9Projected Break-even point........................................................................................................11Projected Balance sheet.............................................................................................................13References......................................................................................................................................16

IntroductionIn this present paper, we will discuss the financial plan of a coffee shop, namely Cozy coffee shop which is located in Hill head, Byres road at Glasgow. The paper also describes the sales strategy, sales forecast, and personnel plan, projected cash flow, projected profit and loss statement, projected break-even, and projected balance sheet. It is an independent coffee shop which serves various items to the consumers such as coffee drinks, pastry, and bakery. Various coffee shops are located in the same area, so the company will be distinct its environment by playing live piano and relaxing ambience for the clients whichhelps to provide a competitive advantage to the company (Nadiri et al., 2013). The piano will play for five hours a day. The financial plan helps to take strategic decisions by forecast the financial health and efficiency of business (Masari et al., 2014). Sales strategyThe sales and marketing strategy of the company is to build a loyal customer base by focusing onattracting customers by serving high quality of food products at affordable price. The online advertisements are done through social media in order to promote the brand in the eyes of the consumers. Discounts and offers are provided at festive seasons which helpto attract a large number of consumers, and that directly impacts on the sales volume of the company (Arrondel etal., 2014). In order to provide a high quality of service on time, the two employees are required to serve in which one will take the order and another one will handle sales transactions. The feedback of consumers will take in order to improve the quality in a customised manner. The banners and fliers are also used to promote the brand.

Sales forecastThe cost of food is assumed at 30% for coffee beverages, 25% on soft drinks and 35% for retail pastries and bakery. The sale forecast of three years is projected below:Sales forecastSalesYear1Year2Year3Coffee beverageGBP340,000.00GBP374,000.00GBP411,400.00BakeryGBP75,000.00GBP82,500.00GBP90,750.00Soft drinksGBP50,000.00GBP55,000.00GBP60,500.00Pastries , othersGBP145,000.00GBP159,500.00GBP175,450.00Total salesGBP610,000.00GBP671,000.00GBP738,100.00Direct cost of salesCoffee beverageGBP102,000.00GBP112,200.00GBP123,420.00BakeryGBP26,250.00GBP28,875.00GBP31,762.50Soft drinksGBP12,500.00GBP13,750.00GBP15,125.00Pastries , othersGBP50,750.00GBP55,825.00GBP61,407.50Total direct costsGBP191,500.00GBP210,650.00GBP231,715.00

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