Entrepreneurship: Starting a Coffee Shop in London

This report explores the process of starting a coffee shop in London, including business details, market analysis, product description, sales and marketing strategy, and funding plans. It provides insights into the entrepreneurship dimension and offers a brief analysis of the market to increase productivity and efficiency. The report also covers financial funding and necessary financial aspects to gain a competitive advantage. The coffee shop, named Dream Cafe, aims to attract customers by serving world-famous coffees and tasty snacks.

Entrepreneurship

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Business details and location.......................................................................................................3
Analysis of market and industry..................................................................................................3
Product/service description..........................................................................................................4
USP and competitor analysis.......................................................................................................5
Operations plan............................................................................................................................5
Risk and contingency plans.........................................................................................................6
Sales and marketing strategy.......................................................................................................7
Finance and funding plans...........................................................................................................8
Management team to manage operations....................................................................................8
Appendices......................................................................................................................................9
Profit and loss and break even.....................................................................................................9
Sales forecast.............................................................................................................................10
General assumptions..................................................................................................................10
Balance sheet.............................................................................................................................11
Purchase order details................................................................................................................13
Product/service image................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Entrepreneurship is a major economy activity which is helpful in generating income for the
owner as well as for whole economy. In the recent times scope of entrepreneurship has increased
due to various opportunities which are provided by business at the marketplace (Abd Ghani, and
et. al., 2017). In this report dimension of entrepreneurship is explained with the context of a new
business plan in order to earn revenue from market. This report also contains a brief analysis of
market in order to increase productivity and efficiency of a particular newly established business.
In this report financial funding is also covered along with necessary financial related aspect in
order to gain competitive advantage at the marketplace. In this report establishment of a coffee
shop in the heart of London city is done in order to attract large number of customers from
marketplace. Name of the coffee shop is Dream cafe where all type of coffees will be served to
customers along with tasty snacks.
MAIN BODY
Business details and location
The Dream cafe will be established at main road in the heart of London city where major
customers come for hangout. Proposed location for business is Oxford Street which is one of
the major areas of London. The business will be established by taking one of the major shops on
rent at lowest possible cost in order to increase overall profit. The timings of the cafe will be
from 8:00 AM to 10:00 PM and on Sunday it will remain closed. Dream cafe will provide world
famous coffees to the customers from all across the globe in order to attract their attention. In
beginning, Dream cafe will offer attractive discount to customers in order to perform
advertisement and publicity of products (Bacon, 2019). The cafe will also provide sample
coffees to the customers for taste in order to attract their attention towards newly established
business. It is also essential to maintain quality of products and services, so the business will hire
a professional quality manager in order to maintain quality of products.
Analysis of market and industry
In order to increase profitability and efficiency of a newly established, it is essential to
analyse market and industry in a precise manner. In order to analyse the current market situation
PEST analysis is performed which is helpful in the development of business. The PEST analysis
for Dream cafe is given below:

 Political factors- The political factors play a major role in deciding current
situation in market as they include role of government. A business has to follow
various rules and regulations which are formulated by government in order to
survive at the marketplace. The Dream cafe will have a favourable market situation
according to the stability of political situation in United Kingdom. This will be help
the business to gain immense growth at the marketplace and it will also increase
revenue of Dream cafe.
 Economic factors- In the functioning of a business, economic factors play a major
role as they decide monetary aspects for a business. Various economic factors like
national income, gross domestic product and monetary policy formulated by
government has a major impact of decisions of a business (Brink, 2018). Dream
cafe has to consider all the major factors which are essential as an economic aspect
for the business in order to gain competitive advantage at the marketplace.
 Social factors- Social factors must be considered by Dream cafe in a precise
manner in order to attract large number people from the society. Different social
factors like living standard of society, culture and social ideology of society play a
major role in deciding the business functioning. It is important for Dream cafe to
analyse major social factors with the help of professional management in order to
satisfy customers from different parts of society.
 Technological factors- In today’s world the influence of information and
technology is there on every business in a precise manner. Most of the businesses
are changing the operations and techniques according to the change in business
with respect to information and technology. Dream cafe should perform all its
major operations and functions while considering information and technology as a
major factor.
Product/service description
It is essential for a newly established business to provide effective products and services to
customers in order to increase revenue and efficiency at the marketplace. Dream cafe will sell
coffee in the heart of London city with effective quality and efficiency. The cafe will provide
major imported coffees from all major countries on the lowest prices to customers. In Dream
cafe, the customers will also get effective snacks which will be delivered in a fresh manner in

order to increase the taste of products. The cafe will hire cooks from different parts of the world
in order to provide expert cooking services (Damayanti, C.S. and Rahad, 2021). Dream cafe also
has vending machines installed outside the shop in order to provide quick services to customers.
The Dream cafe will also have special coffees from major countries which produce coffees in a
precise manner.
USP and competitor analysis
In the market of UK there are large number of competitors which are highly effective and
growth for the café which are related to Cafe Nero, Art Southwark Café and Palm Vaults. All of
them are highly related to effective growth and achievement in the café industry and make most
of the valuable customer which are effective for the growth decision of the new Café. It is
essential to set a unique selling price in order to gain competitive advantage at the marketplace.
Dream cafe will formulate effective pricing strategy and develop USP in a unique way to draw
attention of several customers.
The competitors will have a great influence on dream cafe as all of them are highly expensive
and related to the growth and achievement in the future. But none of them provide effective way
and environmental benefits to their customer. Further in Dream cafe customer can come and sit
without paying anything extra charges which are helpful for gaining more customer attraction
and suitable for the liable changes in the company. the market competitor of the coffee roaster
are able to make them more strategic approaches and make sustainable development plan which
are helpful for the owner to sustain the market for longer period of time (Hopp, 2018). It would
be helpful for them to analysis the market growth and firm in the café and make effective
changes as per the need of the demand.
Operations plan
It is essential to formulate a precise operations plan in order to survive at the marketplace for
Dream cafe. In the era of stiff competition between different companies, it is essential for a
business to formulate effective plan with the help of professional strategic management in order
to gain competitive advantage at the marketplace. The operational plan for Dream Cafe is
mentioned below:
 Plan- This is the primary stage in operations plan which will include formulation of
a precise plan in order to achieve goals and objectives. Plan is essential to be

formulated in order to handle large number of workforce and different risks which
arise during the functioning of a business. Dream cafe should formulate a precious
professional plan in order to gain competitive advantage over different competitors.
 Execution- In operations plan, execution is considered as the secondary stage
which is related to implementation of formulated business plan. In the long run,
execution should be performed by professional management in order to gain
increase in revenue and productivity (Hopp, and et. al., 2018). It is recommended
for Dream cafe to focus on execution of whole plan in order to gain competitive
advantage at the marketplace.
 Assessment- It is essential for the business development to properly perform
assessment of the whole business plan. Dream cafe should perform necessary
evaluation of its formulated plan in order to gain competitive advantage. The
assessment will allow business to perform several modifications in next plan and
will also help in understanding different needs of customers.
Risk and contingency plans
In order to perform various operations related to a business it is essential to maintain risk
associated with various activities and functions. Dream cafe is a newly established business at
the marketplace, so the management has to perform effective risk analysis in order to minimise
risk. It is essential to minimise risk associated with the business in order to maximise revenue
and generate huge profit from the marketplace. In order to minimise risk for Dream cafe
following measures will be taken:
 Strategic management- In order to minimise risk associated with the business it is
essential to formulate effective strategy which is helpful for the business. With the
help of precise strategy in the business, effective plans will be formulated which
will play a crucial role in eliminating risk. Dream cafe will take of professional
strategic management in order to minimise risk that is associated with business.
 Market analysis- It is very much essential to perform a brief analysis of the whole
market in order to minimise risk associated with a business. Dream cafe will
develop a critical approach that will help in precise evaluation of whole market and
will facilitate business development (Janiksela, 2019). Most of the businesses in

current market perform market analysis in order to survive at the marketplace with
minimum risk.
 Safe and secure investment- Dream cafe will try maximum to secure best position
in order to survive at the marketplace with performing secure investment. It is
essential to perform safe and secure investments in order to minimise risk
associated with the business.
Sales and marketing strategy
In order to survive at marketplace it is essential for the Dream cafe to perform effective
analysis and choose an appropriate marketing strategy. In order to choose effective and
efficient business strategy it is essential for Dream cafe to perform marketing mix analysis
which is mentioned below:
 Place- It is essential for a business to choose appropriate geographical location for
selling the product at marketplace. Place play an important role in business
development as it is the major location where customers come to purchase product.
Dream cafe has chosen Oxford Street which is one the busiest market in order to
attract large number of customers.
 Price- In order to gain and attraction of several customers from the marketplace, it
is essential for the business to set appropriate price of products (Johnson, 2017).
Dream cafe will set effective price of coffees which are available at the shop in
order to attract large number of customers.
 Promotion- In the era of stiff competition between different businesses, it is
essential to do promotion by using different techniques. The Dream cafe will
perform effective promotion of its product at marketplace with help of
advertisements. Several posters on the street will be also placed with heavy
discount in order to attract large number of customers.
 Product- The business has to produce products of effective and precise quality in
order to increase satisfaction of customers. It is essential for business development
to select hygienic and healthy products which are helpful in increasing demand of
several products at the marketplace.

Finance and funding plans
It is essential for entrepreneurs to focus upon funding requirements in order to have smooth
functioning of cafe. As there is lack of personal financial resources, owners of dream cafe are
looking for external ways to get the money in order to start their cafe (Katz, 2018). These include
taking money from friends, business partners and acquaintances.
 Personal savings: this includes investment or equity which starts at home. It is the best
approach for financing all new business ventures. Entrepreneurs are not having any kind
of risk by using this source of funding.
 Friends and relatives: when there is lack of personal asset then there is opportunity for
taking money from friends and relatives in order to start the business. This is a kind of
loan taken from a close one or friend which has to be returned properly at right time. If
business succeeds then it is very good as entrepreneurs able to provide whole money back
to the friend. In other case if business faces losses then it is not able to provide the money
back to friend or relative who affects the bond with that friend or relatives
 Angel investors: there is opportunity with entrepreneurs to take money from Angel on
investors. Entrepreneurs are looking for business investment into partnership that is why
there is demand of managing documents associated with roles and responsibilities of
individual partners. Angel investors provide loans to small businesses. There is an
opportunity with dream cafe to take loan from this investment firm.
 Banks: This is the most efficient way for managing funds for the new business venture.
Loan can be taken from bank. Wendy’s cafe will start running then the interest rate with
the principle amount will be paid on regular basis. All the legal requirements including
documents of this small business have to be carefully read before taking loan.
Management team to manage operations
The new dream cafe is a business plan started by two brothers naming Jack and John. They
are the two owners of this new cafe. These people are having previous experience in food service
sector and their trained for managing experienced baristas. The management team is focusing
upon analysing physical requirements of cafe which includes equipment, inventory, retail space,
labour and supply needs (Meor Hamdan, 2019). For this type of business structure there is
requirement of custom facilities, specialist equipment and supply chains. The staff members

involved in this cafe will include three baristas and one manager. Owners and all staff members
will be provided their regular duties which will include taking orders, making tea or coffee,
dishwashing, restocking and taking care of washroom facilities. For increasing the level
employee loyalty, there is bonus programme provided for employees. This will increase the
motivational and encouragement level for them to manage the functioning. There is need of
having proper management and leadership as it will help in creating positive environment at
workplace (Mohammed, 2018). For a new cafe, it is very important to provide the best service
for customers. This can be initiated only when employees are motivated towards achieving their
regular targets. Proper monitoring and controlling over the activities of employees is managed.
Leaders are good mentors and provide guidance to subordinates for completing the operational
work in effective manner.
Appendices
Profit and loss and break even
2020 2021 2022 2023 2024 2025
Turnover (25 per unit) 189,711.00 199,196.55 209,156.38 219,614.20 230,594.91 242,124.65
Less cost of sales:
Material Cost (3 per unit) 42,597.00 43,874.91 45,191.16 46,546.89 47,943.30 49,381.60
Production Cost (2 per
unit) 15,231.00 15,687.93 16,158.57 16,643.32 17,142.62 17,656.90
Labor Cost (6 per unit) 50,758.00 52,280.74 53,849.16 55,464.64 57,128.58 58,842.43
108,586.00
Gross profit (14 per
unit) 81,125.00 87,352.97 93,957.49 100,959.34 108,380.41 116,243.72
Less Expenses:
Administrative expenses 13,751.00 14,026.02 14,306.54 14,592.67 14,884.52 15,182.22
Other operating
overheads 22,374.00 22,821.48 23,277.91 23,743.47 24,218.34 24,702.70
Interest 1,943.00 1,981.86 2,021.50 2,061.93 2,103.17 2,145.23
Total Overheads 38,068.00
Profit/(loss) for the
financial year 43,057.00 48,523.61 54,351.54 60,561.28 67,174.38 74,213.57

Break even 2,719 2,774 2,829 2,886 2,943 3,002
Sales forecast
General assumptions
The general assumptions related to the business are following:
 Business will get a sustainable growth in the year 2021 and will lead the
marketplace by the year 2025.
 Sales forecast will be essential for the development of business and statistics are
showing that business will get a lead in increase of sales level (Tipu, 2019).
 The break even analysis is also important for the coffee shop in the year 2023.
 In starting the coffee shop will be facilitated by different business aspects (Xu, 2020).

Balance sheet
2020 2021 2022 2023 2024 2025
Non Current assets
Intangible assets 5,793 5,967 6,146 6,330 6,520 6,716
Tangible assets 52,812 54,396 56,028 57,709 59,440 61,224
Investments 10,693 11,014 11,344 11,685 12,035 12,396
69,298 71,377 73,518 75,724 77,996 80,335
Current assets
Stocks 28,571 29,428 30,311 31,220 32,157 33,122
Trade debtors 26,367 27,158 27,973 28,812 29,676 30,567
Short term deposits 14,779 15,222 15,679 16,149 16,634 17,133
Cash at bank and in
hand 14,632 15,071 15,523 15,989 16,468 16,962
84,349 86,879 89,486 92,170 94,936 97,784
Current liabilities
Bank loans and
overdrafts 9,610 9,898 10,195 10,501 10,816 11,141
Trade creditors 19,493 20,078 20,680 21,301 21,940 22,598
Other Creditors 678 698 719 741 763 786
Income tax payable 3,585 3,693 3,803 3,917 4,035 4,156
Other creditors
including tax and
social security
4,562
4,699 4,840 4,985 5,135 5,289
37,928 39,066 40,238 41,445 42,688 43,969
working capital 46,421 47,814 49,248 50,725 52,247 53,815
Total assets less
current liabilities 115,719 119,191 122,766 126,449 130,243 134,150

Non Current
Liabilities
Bank loans and
overdrafts 16,506 17,001 17,511 18,037 18,578 19,135
Other Liabilities 7,304 7,523 7,749 7,981 8,221 8,467
23,810 24,524 25,260 26,018 26,798 27,602
Provisions for
liabilities 8,094 8,337 8,587 8,845 9,110 9,383
Net assets 83,815 86,329 88,919 91,587 94,335 97,165
Capital and reserves
Called up share
capital 39,436 40,619 41,838 43,093 44,386 45,717
Reserves 1322 1,362 1,403 1,445 1,488 1,533
Retained earnings 43,057 44,349 45,679 47,050 48,461 49,915
Total equity 83,815 86,329 88,919 91,587 94,335 97,165
Purchase order details

Product/service image

CONCLUSION
From the above discussion it can be concluded that entrepreneurship activity is very much
helpful in generating precise revenue for the business. It also plays a crucial role in enhancement
of business operations in a precise manner. This report mainly concludes that by performing a
professional analysis of market, business can increase its revenue and productivity at the
marketplace. It is essential for an entrepreneur to hire professional and skilled management in
order to gain competitive advantage over other businesses in the market. In the era of stiff
competition it is essential for a business to develop customer satisfaction and job satisfaction of
employees in order to survive at the marketplace.

REFERENCES
Books and Journals
Abd Ghani.M. and et. al., 2017. A Review on the Relationship Between Business Plan Learning
Outcomes and Business Plan Simulation in Entrepreneurial Education. Journal of Engineering
and Technology (JET), 8(2).
Bacon, K. and Tate, S., 2019. Preparing a Food Processing Business Plan.
Brink, K.D., 2018. The Friendly Ogre: A Business Plan (Doctoral dissertation, The College of
St. Scholastica).
Damayanti, C.S. and Rahadi, R.A., 2021. Business plan for property business featuring
sustainable high-performance micro-house concept in Indonesia. Journal of Asia
Entrepreneurship and Sustainability, 17(4), pp.49-74.
Hopp, C. and Greene, F.J., 2018. In pursuit of time: Business plan sequencing, duration and
intraentrainment effects on new venture viability. Journal of Management Studies, 55(2),
pp.320-351.
Hopp.C. and et. al., 2018. Revisiting the influence of institutional forces on the written business
plan: a replication study. Management Review Quarterly, 68(4), pp.361-398.
Janiksela, K.K., 2019. Business Plan for a Nature Based Preschool (Doctoral dissertation, The
College of St. Scholastica).
Johnson, J.E. and Garvin, W.S., 2017. Advanced practice nurses: Developing a business plan for
an independent ambulatory clinical practice. Nursing Economics, 35(3), p.126.
Katz, J.A., 2018. The business plan: reports of its death have been greatly exaggerated. In Annals
of Entrepreneurship Education and Pedagogy–2018. Edward Elgar Publishing.
Meor Hamdan, N.A., 2019. Fundamentals of Entrepreneurship ENT300 Business Plan Report
Business Name: PS Enterprise.
Mohammed, S., 2018. Developing a Business Plan. In Tomorrow's Agriculture (pp. 33-36).
Springer, Cham.
Tipu, S.A.A., 2019. Business plan competitions in developed and emerging economies: What do
we still need to know?. Journal of entrepreneurship in emerging economies.
Xu, X., 2020. Compose the Business Plan. In Introduction to Entrepreneurship (pp. 139-163).
Springer, Singapore.