Innovation and Entrepreneurship: A Business Plan for Coffee Corner

This report discusses a business plan for Coffee Corner, a new start-up cafe in London. It covers important elements such as industry profile, business model, point of differentiation, competitors analysis, marketing plan, sources of funds, etc. Innovation is highlighted as a key element of success. Challenges and prospective customers are also discussed.

Innovation and
entrepreneurship

Executive Summary
Every day there is a increment in entrepreneurship due to increase in SMEs in UK. It is
found that UK provides many benefits to small and medium sized organisations as they are
contributing in GDP growth. Due to this, every person is focusing on opening of their own small
start up so that they are able to earn higher revenues and profits. For that purpose, they need to
formulate a business plan. Business plan is refers to a document that is necessary for
entrepreneur in the process of starting a start up (Genadinik, 2019). It involves all core business
activities which are forecasting after analysing the market conditions. This is necessary for an
entrepreneur that they should make a business plan in an effective way as it decide the success
and growth of an organisation. For a start up, a business plan needs to consider all important
elements such as business idea, industry profile, model of business, challenges in business idea,
competitor analysis, marketing plan, sources of funds, etc. This report will be discussing all
important elements in detailed way so that an entrepreneur is able to achieve their goals and
objectives. One thing which needs to be considered by an entrepreneur is innovation as it is the
key element of success. This is necessary for an organisation that their business activities should
be innovative which attract customers. This will leads to increase in sales and revenues which
results in achievement of goals and objectives.

Table of Contents
Executive Summary.........................................................................................................................2
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
TASK ..............................................................................................................................................4
Start-Up Business Idea...........................................................................................................4
Industry Profile.......................................................................................................................5
The Business Model...............................................................................................................6
Point of differentiation...........................................................................................................7
Challenges to the Business Idea.............................................................................................7
Prospective Customers...........................................................................................................8
Brief Marketing Plan..............................................................................................................8
Competitor Analysis...............................................................................................................9
Sources of Funding...............................................................................................................10
Intellectual Property.............................................................................................................10
CONCLUSION .............................................................................................................................11
REFERNCES:................................................................................................................................12
Books and Journals:..............................................................................................................12
Online ..................................................................................................................................12

INTRODUCTION
Business plan is defined as the document in which an organisation is considering all the
core business activities, objectives, etc (How To Create A Business Plan, 2018). A business plan
guides a person that how they can run their business (Fauzi, 2021). This is necessary for a new
start up to formulate a business plan for achievement of their goals and objectives. Business plan
includes a start up business idea which should be innovative so that an entrepreneur is able to
take competitive advantage (Lounsbury and et. al., 2019). This report will be discussing a
business plan in which it covers all important elements such as industry profile, business model,
point of differentiation, competitors analysis, marketing plan, sources of funds, etc.
MAIN BODY
TASK
Start-Up Business Idea
In today's business environment, it is found that day by day the business of restaurants
and cafes are increasing (Farinha, Ferreira and Nunes, 2018). In London, approximate 6000
restaurant or cafes are running which has grown by 700% in last decade. That's why there is a
new start-up which is a cafe i.e. “Coffee Corner” which opened in London. This is the cafe
which have varieties of food and beverages. Their main products is their coffee which is
produced with natural cocoa seeds. They will prepare a coffee with their quality coffee seeds
which makes them different from other cafes. They are not just dealing in coffee but also deliver
various types of food and beverages such as bakery items that include brownies, sandwiches,
pasta, pizzas, etc. Their beverages include shakes and juices of fresh fruits. They decide their
menu on the basis of season. For example, they offer hot brownies in winter whereas in summer
they offer brownies with ice cream. According to the needs and wants of customers, they will
decide the extra dishes in addition to their basic menu. They will provide products through
offline as well as online order. They take order from online website also. Coffee Corner accept
payments online as well as offline. Their interior is based on the beauty of London. That means
their interior designing including all the paintings of most popular places of London. Due to their
interior, they are able to attract consumers in the cafes. The main objective of Coffee Corner is to
increase the number of customers by satisfying their needs and wants.

Industry Profile
It is identified that every year there is a regular increment in number of coffee outlets in
UK (Li, 2017). All restaurant are running their business very well as now the tendencies of
people are to eat from outside. The reason can be anything such as busy due to workload, for the
purpose of fun and enjoying meetings with friends, etc. Now people believe that cafe is the place
where they are able to communicate with each other. They have a perception that cafe provides
them a peace and reduce stress level (Geissdoerfer, Vladimirova and Evans, 2018). It is the place
where they meet with other people for fun purpose. The use of cafes are increasing as they
provide food and beverages at low prices as compared to hotels. They are able to enjoy the
parties similarly as in hotels. The graph which is mentioned below shows that every year the
number of cafes are increasing.
In London, there is a celebration that took place in April 2-5 which named is London
Coffee Festival. In this Festival, all cafes takes a part that includes coffee cocktails, latte art
workshops, live musics, etc. This helps cafes to promote their cafes in the market through this
Illustration 1: https://www.statista.com/statistics/978010/coffee-shop-numbers-
united-kingdom-uk/

festive, every day the business of cafe is increasing and that's why it is the reason to start a small
cafe so that a person makes them independent. Current demand of cafes are high but there is a
tough competition in which an entrepreneur need to formulate their business plan more
innovative so that they are able to achieve their target market.
The Business Model
Business model is defined as the plan of organisation which is necessary for generating
profits for Coffee Corner. There are many types of business plan are available in the market. It is
necessary for Coffee Corner that they should adopt one business model which is appropriate for
them (Menon and et. al., 2018). Some important business models are franchising, brick and
mortar, direct sales, advertising based, etc. In addition to this, there is a hybrid business mode;s
which is the combination of all business models such as brick and mortar with internet retailing.
This is crucial for Coffee Corner that they need to choose best business model which helps in
generating profits. There is a business cycle that include some important stages such as launch,
growth, shake-out, maturity, and decline stage. These stages needs to be effectively follow by
Coffee Corner so that they can achieve their goals and objectives.
 In the first stage, Coffee Corner launches their new products and services in the market.
Generally in launching stage, the sales are always low as very less people knows their
name (Bolis and et. al., 2021). In this stage, Coffee Corner needs to focus on marketing
tools and techniques as that they are able to increase their customer base.
 In the second stage which is growth in which company experiences a heavy or rapid sales
growth. Organisation is trying to achieve a break even point so that they are able to
generate profits.
 The third stage in which an organisation is continue in sales growth but at lower rate.
This can be occurred due to entrants of new competitors or market saturation.
 Now organisation faced that their sales start to decline. That's why their profits get
thinner. This is the stage in which an organisation generally expand their business so that
their cycle get continue and not end up at this stage.
 This is the final stage in which the business cycle of organisation is end up. Sales, cash
flow, profits, etc. are getting decline due to failure of their business.

Point of differentiation
In today's business environment, it is vital for an organisation that they should know the
importance of point of differentiation. Everyday the competition is rising and that's why Coffee
Corner needs to make the possible factors in their business practices that make their business
different from others (Sisodia and Reddy, 2017). It results in taking competitive advantage. Point
of differentiation are refers to the factors that establish differentiation. This is necessary for
Coffee Corner to develop point of differentiation so that they can take competitive advantages.
They will do this by taking innovative steps such as use of digital technologies. But it is
necessary for them that their innovative solutions should be cost effective then it will be
profitable. Their interiors designing plays a major role in the point of differentiation. Their
interiors is very innovative and attractive that attract consumers towards their products and
services. The quality of food and beverages of Coffee Corner also becomes the part of point of
differentiation. In today's market, it is identified that the tag line of company is very important to
be unique. So that's why Coffee Corner decides their tag line such as “Happiness in your cup”.
This tag line shows that a person should come at the place that provides happiness. These things
makes different Coffee Corner from other cafes.
Challenges to the Business Idea
It is necessary for an organisation that they should identify all the challenges in new start
up so that they are able to achieve their goals and objectives effectively. There are some
challenges that may be face by Coffee Corner in the market which are stated below: Competition is one of the main challenges that will be face by Coffee Corner as every
year the number of cafes are increasing. That means day by day competition is increasing
which needs to be overcome by organisation. Hiring of employees is another challenge in which Coffee Corner may face a problem of
recruiting employees. It is necessary for the success and growth of an organisation that
their employees should be talented and creative. They will be able to provide innovative
solutions to organisation. Execution of planning should be effective as the success and growth of Coffee Corner
depends on execution of business plan.
 Customer satisfaction is a challenge of Coffee Corner as every organisation has a dream
that they are able to satisfy their customers but it is not easy for them. Everyday the

demand of consumers is changes and that's why company faces a challenge of customer
satisfaction.
Prospective Customers
Every company wants to identify prospective customers who shows their interest in
purchasing of products and services. This is necessary for Coffee Corner to identify prospective
customers if they want to survive in the market (Ginaya and et. al., 2019). Their sales and
revenues are depending on the number of prospective customers. There are some important tips
which needs to be considered by Coffee Corner in order to increase the number of prospective
customers:
 Firstly, it is necessary for an organisation that they should identify the needs and wants of
customers and then produce their products. This will helps them to reduces the failure
chances.
 For identification of customers' needs and wants, it is suggested to the organisation that
they should take feedback from the customers in order to know their favourites. In
addition to this, company should also try to know the purchasing pattern of customers.
 Company should get familiar with customers and this can be done with the help of
following customers on social media. The use of social media is very helpful in order to
direct interact with the customers.
 Coffee Corner should offer discounts on their products so that they are able to invite their
prospectives customers.
Brief Marketing Plan
Marketing is the most important activity for organisation especially for new start up as
they need to promote their goods and services in the market for increasing the customer base
(Chernev, 2020). Coffee Corner need to formulate a marketing plan so that they are able to
promote their products in the market. It consider some important elements which are stated
below:
 The first element of marketing plan is marketing research in which an organisation need
to do a research in market so that they get to know the market trends. It is the backbone
of marketing plan. In this, Coffee Corner is identifying consumer buying habits.
 Target market which is very important for Coffee Corner as they have to identify their
target market. They can do this by using STP approach in which Coffee Corner consider

segmentation, targeting and positioning in their marketing plan. They are able to identify
their target market and make policies accordingly.
 Market strategy is very crucial for an organisation as it helps in achievement of sales
goals. It explain the way that how an organisation is achieving their goals and objectives.
 Budget is the most essential element which should be considered in their marketing plan.
It should be well prepared as marketing manager get guidance that where they have to
spend in which activity by how much amount.
Competitor Analysis
Competition is the main factors that affect on organisations' growth and success and for
that purpose, company should perform a competitors analysis. This can be possible through
using Porter's five forces model (Zhou, 2020). This model is very helpful for organisation as they
are able to identify and analyse the competition in market. It consists of five important forces
that are mentioned below:
 Bargaining power of suppliers: It is the first force in which the bargaining power of
suppliers judge. The bargaining power of suppliers is low. The reason behind this is large
number of suppliers are present in coffee industry so the bargaining power of suppliers
automatically gets decline.
 Bargaining power of buyers: The bargaining power of buyers is very high as there are
many cafes are available in the market which gives many choices to customers.
 Threat of new entrants: Due to the success rate of cafes, it is found that the threat of
new entrants is very high. The other reason is the market hurdles are low as compare to
other industry.
 Threat of substitutes: Every day the threat of substitutes are increasing in this industry
as customers have many choices. This is necessary for Coffee Corner that they should
make their products and services unique so that they are able to overcome with threat of
substitutes.
 Competitive rivalry: Every day the competitive rivalry is increasing which can be
clearly show in the statistics that how much number of cafes are increasing. This is
important for an organisation that their business practices should be competitive.

Sources of Funding
Funds are very important for any organisation as they use funds in order to start the
business activities (Gao and et. al., 2018). They use funds for the purpose of purchasing raw
materials, employees' salaries, rent of property, purchase of machineries, etc. This is necessary
for Coffee Corner that they need to identify and analyse the sources of funds so that they can
able to collect money in order to continue their business activities. Some important sources of
funds are mentioned below:
 Personal investment: It is very obvious that when a person start their own business then
the first investor should be himself/herself. It can be their property or cash.
 Venture capital: This is one of the most useful capital that can be raised by start ups for
the purpose of starting their business operations. Generally new start ups gets money
from this sources as it is easy to collect.
 Bank loans: It is the most widely used source of organisation that they can collect
amount from banking institutions. It is the most suitable and safe source from which an
organisation is able to collect money but they have to pay a fixed amount to this sources.
 Government grants and subsidies: There are many grants that provide by government
agencies to the organisation especially to the organisations which are come under small
and medium size enterprises. This is very safe source in which a people are taking
amount from government agencies.
Intellectual Property
Intellectual property is the right that get by the owner of creativity which used in the
organisation (Mansfield, 2019). This is necessary for a owner that they need to safeguard their
rights as there are many people who wants to infringe another's creativity. There are many types
of intellectual property rights which are mentioned below:
Copyrights
It is the form of protection that used by owner for protection infringement of writing, art,
musics, and other types of intellectual work. It safeguards the way of things expressed. This is
necessary for protecting exclusive rights of creator.
Patents
Patents is the another form of protection that is based on limited period. It can be used for
the purpose of protecting inventions which generally are non obvious, useful, new, article of

manufacture, etc. This right is granted by government to the inventor so that other people are not
able to infringe inventions.
Trademarks
It saves the recognizable design, sign or expression which are using for the purpose of
distinguishes of products with other products. This is very useful in order to differentiate the
products so that other organisation or person is not able to use that trademark for their personal
purpose. A person or organisation can takes legal action if any other organisation infringe or use
their sign without permission.
CONCLUSION
It can be concluded that a cafe needs to follow a business plan in an effective way so that
they are able to achieve their desired objective. Business plan is very important for organisations
as they are able to forecast demands of customers. This will leads to effective strategy and plan
that ensures the growth of organisation. There is a small cafe that formulate a business plan in
which they include all the important elements which are necessary for their success and growth.
Some important elements are start up idea, challenges of business, marketing plan, sources of
funding, competitor analysis, etc.

REFERNCES:
Books and Journals:
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Chernev, A., 2020. The marketing plan handbook. Cerebellum Press.
Farinha, L., Ferreira, J.J. and Nunes, S., 2018. Linking innovation and entrepreneurship to
economic growth. Competitiveness Review: An International Business Journal.
Fauzi, R.U.A., 2021. The Influence of Business Plan Competition and Loan Provision on
Nurturing the Spirit of Entrepreneurship Among Students. Advances in Economics,
Business and Management Research, 161, pp.188-192.
Gao, S., and et. al., 2018. Identifying competitors through comparative relation mining of online
reviews in the restaurant industry. International Journal of Hospitality Management, 71,
pp.19-32.
Geissdoerfer, M., Vladimirova, D. and Evans, S., 2018. Sustainable business model innovation:
A review. Journal of cleaner production, 198, pp.401-416.
Genadinik, A., 2019. Business plan template and example: how to write a business plan:
Business planning made simple. Alex Genadinik.
Ginaya, G., and et. al., 2019. Mixed-Strategies of Marketing in BBTF: Seller Persuasion
Towards Prospective Buyers. J. Mgt. Mkt. Review, 4(1), pp.08-18.
Li, G., 2017. Role of innovation and entrepreneurship education in improving employability of
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Technology Education, 13(12), pp.8149-8154.
Lounsbury, M., and et. al., 2019. Culture, innovation and entrepreneurship. Innovation, 21(1),
pp.1-12.
Mansfield, E., 2019. Intellectual property, technology and economic growth. In Intellectual
Property Rights in Science, Technology, and Economic Performance (pp. 17-30).
Routledge.
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point precision tuning. In SC18: International Conference for High Performance
Computing, Networking, Storage and Analysis (pp. 614-626). IEEE.
Sisodia, D.S. and Reddy, N.R., 2017, September. Sentiment analysis of prospective buyers of
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<https://www.forbes.com/sites/alejandrocremades/2018/07/24/how-to-create-a-
business-plan/?sh=f0f0e427391c>