Enterprise and Entrepreneurship: A Business Plan for The Docks Coffee House

This report discusses a business plan for The Docks Coffee House, including an overview of the company and its products, target customers, competitors, skills analysis, profit & loss and cash flow statements, sources of funds, cost structure, organization type and management information system, and the vision statement of the company.

Enterprise and
Entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Overview about the Company and its Products & Services ......................................................3
Target Customers .......................................................................................................................4
Competitors ................................................................................................................................5
Porter's Five Forces..........................................................................................................................5
..........................................................................................................................................................5
Skills Analysis ............................................................................................................................6
Profit & loss and Cash flow Statements ....................................................................................6
Sources of Funds.........................................................................................................................8
Cost Structure..............................................................................................................................8
Organization type and Management Information System .........................................................8
Vision Statement of the Company .............................................................................................9
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Enterprise is consider as a business which establish for profit but it is mostly associated
with the entrepreneurship ventures. Those individual who have entrepreneurial accomplishment
are mostly referred as an “ Enterprise”. Entrepreneurship is like a process which create and
launch a new business and company. For this report “The Docks Coffee House” company is
chosen which situated in United kingdom . This cafe offer a good quality food, coffee and other
beverages. The main motive of this report is to proposed a full business plan and will define the
idea of future business and give the explanation about the products and services. Apart from this,
company identify the target customers and also determine their competitors and after that this
conduct a skills analysis which help to identify the necessary skills which will be helpful in
business idea. Besides this, identify the source of funding and management information system
of the business.
MAIN BODY
Overview about the Company and its Products & Services
The Docks Coffee house is a well structured cafe in UK which established by Dishi and
Daniel Umfleet. This cafe serve best flavoured coffee which prepared by a good quality beans ,
good quality food items and other drinks. The Docks Coffee house cafe plan a open roof top
that is a very new and creative idea which cafe want to start and apart from this , Cafe also use
some innovative sources like robotic workers. In their open roof top cafe, company will use
robotic workers so with the help of robotic workers cafe serve their delicious food and tasty
coffee a very creative and effective way. So cafe is about to introduce robotic workers in their
new open roof top cafe (Burnett and Danson, 2017).
Cafe will use Intellectual Property Rights to protect their business idea from the other
marketer. Intellectual Property Rights is refers as a rights which given to a appropriate person
who create their own new creation or new idea of business so that business can protect their idea
and they have a right that no one can not use their idea without their permission. There are 4
categories of IPR like Trade secrets, patents, copyrights and trademarks. For this new business
plan purpose, cafe will use trademarks to protect their new innovative idea. Trademarks refers as
a word, symbol and phrases which differentiate the source of a goods and services of one
business to another.

Target Customers
For this new innovate business plan, cafe will use STP model which divided into three
steps that help to simplify the whole process of target market segmentation.
Illustration 1: STP Marketing Model, 2018
(Source: STP Marketing Model, 2018)
Segmentation
In this step, whole market divided in to various groups. The Docks Coffee house cafe
need to divide their target market. Cafe target their customers on the basis of age. Students,
office persons, middle age people are involved in cafe target customers and cafe segment their
market according to their target customers for their new innovative business plan (Fang, 2019)
(Firmansyah, 2018).
Targeting
Cafe target B2C business method which is stand as “ Business to Customers” because
company deal with the potential customers. Cafe will target those customers who lifestyle are
standard and main focus to live healthy life.
Positioning

In this step, it determine that how cafe will build their new innovative plan position in the
market so that those customers who want to spend a luxuries life they can efforts the cafe new
innovate products and services. Cafe will address local people of the UK who can take advantage
s of Cafe services at low cost (Pezzutto, et. al.,2018).
Competitors
To measure the competitive factors, cafe will use Porters five force model, with the help
of this model cafe easily evaluate the competition in the market.
Porter's Five Forces
Illustration 2: Porter's Five Forces, 2020
(Source : Porter's Five Forces, 2020)
Competition in the industry
The force of the competition is moderate on the Docks Coffee house cafe because this
cafe is well established in UK and launching a new business plan “open roof top” and also
provide robotic workers innovative facility. This is comes under very expensive business so only
few businesses and cafe provide this facility.
Threats of New Entries
The threat of new entries in the market force is low because Docks Coffee house cafe will
provide very innovative robotic workers facility with open roof top cafe so this could be a very

expensive investments very few businesses could think about it (Shah, Azhar and Bhutto, 2019)
(Squicciarini, 2017).
Bargain power of Buyers
The bargaining power of buyers forces are moderate because cafe mainly target those
costumers who live their live with full of joy and luxuries and also provide some package
facilities so that local and middle class people can take package according to their income.
Bargaining power of Suppliers
The bargain power is moderate because cafe deal not dependent on one suppliers ans cafe
deal with many suppliers who provide organic and hight quality raw material to prepare food.
Threat of substitutions
The of substitution is moderate because, Cafe will provide good quality of healthy food
which will prepare organic and herbal ingredients which help to maintain the health of their
customers and also provide a healthy atmosphere where customers can spend their quality time
with friends and books.
Skills Analysis
The Docks Coffee house cafe owner and employees are very skilled and they maintain
everything in a proper manner. They have skills like marketing skills, selling skills. Now cafe
start to work new business plan that is open roof top with robotic workers so cafe need a very
effective employees who have a good communication skills, critical problem solving skills and
good presentation skills so that they can build strong relationship with their customers so that
cafe fulfil the customers requirements and customers will satisfied and again visit in their cafe.
Profit & loss and Cash flow Statements
Break even analysis
BEP (In units) = Fixed cost / contribution per unit
First year
= 50000 / 4
= 12500 units
BEP in Pound= Fixed cost / PV ratio
= 50000 / 80%
= 62500
Second year

BEP in units
= 140000 / 7.83
= 17880 units
BEP in Pound
=140000 / 67.92%
= 206125
Calculation of contribution:
Formula = Sales – variable cost / total units
First year:
= 100000 – 20000 / 20000
= 4
Second year:
= 346000 - 111000 / 30000
= 7.83
Calculation of PV ratio:
Formula = Contribution / sales *100
First year:
= (100000-20000) / 100000 * 100
= 80000 / 100000 * 100
= 80%
Second year
= (346000 – 111000) / 346000 * 100
= 235000 / 346000 * 100
= 67.92%
Cash flow analysis:
Particulars 2020 2021
Receipts
Sales 35000 150000
Online bookings 25000 95000
Advances from clients 20000 51000
Further developments 20000 50000

Total receipts 100000 346000
Payments
Salaries to staff 10000 55000
Advertisement 5000 28000
Rent of building 5000 28000
Machines 20000 60000
Cost of material 30000 80000
Total payments 70000 251000
Cash at the end 30000 95000
Sources of Funds
Cafe is work on their new business plan that is open roof top cafe and also provide
robotic workers facility so cafe require huge fund to invest on it. Cafe will use some sources of
funds which discussed below -
Business Loan
Business loan really helpful for the companies and small enterprise which provide loan
with in short time period to support business. Cafe borrow some money and also pay it back after
some time with interest
Assets Finance
Assets finance is basically for those entrepreneurs who want to use some high valuable
equipments in their business so that they will earn more profit with their services. With the help
of assets finance, cafe will purchase high quality valuable machinery and equipments like
machines and robotic workers (Takata, 2016).
Cost Structure
Particulars 2020 2021
Variable costs
Salaries to staff 10000 55000
Advertisement 5000 28000
Rent of building 5000 28000
Fixed costs

Machines 20000 60000
Cost of material 30000 80000
Total cost 70000 251000
Revenue stream:
Particulars 2020 2021
Sales 35000 150000
Online orders 25000 95000
Advances from clients 20000 51000
Further developments 20000 50000
Total revenues 100000 346000
Organization type and Management Information System
This Cafe comes under the hospitality industry so Docks Coffee house cafe maintain all
the business activities and also take care of their customers health and safety. Use effective
management information system which help to manage and control the business activities. With
the help of management information system, cafe easily monitor all the activities which is related
to the sales management system , budgeting system and human resource management system of
the cafe (Venkataraman, 2019).
Vision Statement of the Company
The Docks Coffee house cafe main vision is that cafe mainly expand their market
globally where customers are like to visit interesting and creative place and enjoy food with
proper c;ear and hygienic facilities. Apart from this, Cafe want to establish their business
branches in many places so that cafe cover local people and generate more profit.
CONCLUSION
According to this report , it is concluded that to entrepreneurs are responsible to generate
a new ideas and take a high risk and implement their ideas to establish a whole business plan and
structure. In this report, a full business plan discussed and also analyse step by step all the
aspects of the business which is necessary to start a new business plan. This report identified the
target customers of the business and with the help of porters five force model, company identify
the competitive factors of the business and also determine that how company take competitive

advantages. This report also discussed and forecast about 2 years profit and loss and cash flow
account.

REFERENCES
Books and Journals
Burnett, K. A. and Danson, M., 2017. Enterprise and entrepreneurship on islands and remote
rural environments. The International Journal of Entrepreneurship and
Innovation, 18(1), pp.25-35.
Fang, Q., 2019. The marketing strategies of BHG Lifestyle market in Nanning, Guangxi. Asia
Pacific Journal of Religions and Cultures, 3(1), pp.1-20.
Firmansyah, D., 2018. Analysis of Language Skills in Primary School Children (Study
Development of Child Psychology of Language). PrimaryEdu-Journal of Primary
Education, 2(1), pp.35-44.
Pezzutto, S., et. al.,2018. Forecasting electricity market price for end users in EU28 until 2020—
Main factors of influence. Energies, 11(6), p.1460.
Shah, S. A., Azhar, S.M. and Bhutto, N.A., 2019. Halal marketing: a marketing strategy
perspective. Journal of Islamic Marketing.
Squicciarini, M., 2017. Entrepreneurship, innovation and enterprise dynamics. Small Business
Economics, 48(2), pp.273-278.
Takata, H., 2016. Effects of industry forces, market orientation, and marketing capabilities on
business performance: An empirical analysis of Japanese manufacturers from 2009 to
2011. Journal of Business Research, 69(12), pp.5611-5619.
Venkataraman, S., 2019. The distinctive domain of entrepreneurship research. In Seminal ideas
for the next twenty-five years of advances. Emerald Publishing Limited.