Entrepreneurship Business Plan for Latino's Cafe in UK Market

This report covers the proposed business idea, details about customers, competitors, skill analysis, type of organization and the MIS used by the business, the P&L and cash flows of the business which may explain the future profitability of the organization.

ENTERPRISE AND
ENTREPRENEURSHIP

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Propose future business plan.......................................................................................................4
Customers....................................................................................................................................4
Competitors..................................................................................................................................5
Skills Analysis.............................................................................................................................5
Projected 2 year profit and loss statements and 2 years of cash flows of the business...............5
Projected 2 years’ cash flow forecasting-....................................................................................6
BEP-.............................................................................................................................................7
Suitable sources of funding for the business to grow the business opportunity..........................8
Plans of obtaining resources both tangible and intangible..........................................................8
Types of organization and the management information systems required for controlling the
business........................................................................................................................................9
Vision for your business idea......................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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EXECUTIVE SUMMARY
The report will cover the proposed business idea, details about customers, competitors, skill
analysis, type of organization and the MIS used by the business, the P&L and cash flows of the
business which may explain the future profitability of the organization.
2

INTRODUCTION
The main purpose of this report is to explain the features of the new business idea which is
introduced by an organization for capturing a significant market share in the industry. The new
idea is the business of coffee shop that will be introduced by Latino’s Cafe which is a unique
coffee shop which will be based in the market of UK by the business (Wadhwani and et.al.,
2020). The business will provide different snacks and beverages for the customers which will be
prepared by highly qualified chefs.
MAIN BODY
Propose future business plan
Latino’s Café will be an advanced coffee shop which will offer different types of beverages
which will be prepared by using high quality coffee which is resourced from different places of
the world (Audretsch and Moog, 2022). The coffee shop will provide an enhanced experience to
the customers in order to increase their interest towards trying the services offered by the
business. The organization will provide various additional services such as video games, live
sports and other different services. The organization will apply for intellectual property rights for
the business such as trademarks in order to protect the unique identity of the business.
Customers
This new idea will be B2C business which and the population of UK is the target market of the
organization, people from all ages and gender are considered by the coffee shop. These are the
potential customers of the business who actively look for new places to enjoy and gain a better
experience of spending time with their special people (Barrow, Barrow and Brown, 2018). The
USP of the organization is that it will offer specialised services to their customers which are
unique from their competitors in the market. The new business will promote their café through
different social media which may be helpful in increasing the awareness of the business among
the targeted customers.
Competitors
There are several competitors of the business which may have a significant market share in the
industry. Society Café, Laynes Espresso and Boo Boo Coffee are the major competitors of the
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business in the UK market. These businesses may have a crucial impact on the profitability if the
new business in the market. The customer might shift towards the products and services of the
organization due to the different options offered by the business to them in order to spend quality
time enjoying their coffee and snacks (Chowdhury, Audretsch and Belitski, 2019). The
organization may be able to gain competitive advantage in the industry with the help of their
marketing strategies and different approaches towards promoting the business.
Skills Analysis
The organization has unique skills in order to provide a better value to their customers by
offering them tasty and attractive food services. This skill of the business will be useful in
increasing its popularity in the market and increase the engagement of the customers towards the
coffee shop (Doern, Williams and Vorley, 2019). This business may require the expertise of
trained chefs in order to develop new and innovative dishes and coffee beverages in order to
provide better output in the industry. There may be various gaps which may be considered by the
new business by increasing the market share in the industry.
Projected 2 year profit and loss statements and 2 years of cash flows of the business
particulars Amount for the
year 2023
Amount for
the year 2024
To salary
To marketing expenditures
To rent
To depreciation
To loss on sale of assets
To bank charges
To miscellaneous charges
Total expenditures of the organisation
To tax management charges
To income from tax planning commission
To income from taxation consultancy
Total revenue for the year
3500
8500
8000
1250
6500
3000
1500
32250
52000
28000
19000
99000
4500
9000
8500
1500
7800
2600
2000
35900
66000
36000
26000
128000
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Net projected profit for the year 66750 92100
From the projected P&L account of the organization it can be concluded that the plan of
the business is suitable and may provide profitability to the organization in the future.
Projected 2 years’ cash flow forecasting-
2023 2024
Cash flows from operating activities for the
year
Net Income
Adjustments pertaining to operating activities-
Depreciation
Loss on sale of equipment
Changes in current assets and liabilities-
Increase in current assets
Decrease in current liabilities
Net cash provided by operating activities
Cash flows from investing activities
Capital expenditures of the organisation
Lease expenditures for the year
Amount generated from sale of equipment
Net cash used for investing activities
Cash flows from financing activities
Amount generated from issuing debentures
Dividends paid to stockholders
Net cash provided by financing activities
Net increase in cash during the year
66750
1250
6500
-5200
30000
99300
-
-3000
-
-3000
90000
-
90000
92100
1500
7800
-6000
35000
130400
-
-2500
-
-2500
-
-
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Cash at the beginning of the year
Cash at the end of the year
120000
309300
309300
439700
The projected cash flow statements for two consecutive years show that the business may have
good control over their cash flows and will be beneficial for increasing its sustainability in the
business environment (Ratten and Usmanij, 2021).
BEP-
BEP suggest the position of no profit or loss in the organization and he current business idea will
have a lower BEP as their statements of accounts shows that it may be profitable in from the first
year of commencement (Olanrewaju and et.al., 2020). The company may have stability in their
accounting management as its revenues may be managed appropriately.
Suitable sources of funding for the business to grow the business opportunity
There are several sources of funding for the organization which may be beneficial in order to
successfully carry out the business practices in the industry. Personal funds, angel investors,
friends and family are one of the potential sources for the organization to gain funding and
manage their business activities properly. The new business will use their personal funds in order
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to manage their expenses and organize their coffee shop properly (Kudryashova and Lazareva,
2020). Further when the business will look for expansion it will seek funding from the investors
in order to gain their capital and expertise for a successful existence in the market. The most
important non-financial resources for the business is support from key stakeholders, less risks,
skilled labour etc. which may help in improving the sustainability of business in the market.
Plans of obtaining resources both tangible and intangible
Latino’s Café will obtain their resources from trusted suppliers in the market in order to ensure
the quality of output produced by the business for the customers. The new business will buy
advanced equipment and machines for their café in order to provide a premium experience to
their customers at minimised prices (Liguori and Winkler, 2020). The intangible assets such as
patient will be bought by the new business in order to secure their unique recipes. This will be
reflected with the help of a budget which is as follows:
BUDGET
Particulars Amount
Patent fees 6000
Marketing charges 8500
Expenses for purchasing computer, furniture 5550
Salary 3500
Rent 8000
Market research expenses 10000
Expenditure for installing MIS 2500
Business commencement related some other charges 145000
Purchasing equipment 17000
Total cost 206050
Types of organization and the management information systems required for controlling the
business
The organization will be sole proprietorship where all the major decisions will be undertaken by
the owner. He will provide the employees with all the required resources and guidance in order
to increase the productivity of the business. The organization will use management information
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systems such as the corporate social responsibility which may help to understanding the buying
behaviour of customers and increase the opportunities of the company to achieve growth in the
industry (Lipset, 2018). This system may be helpful for the organization to target heir potential
customers appropriately and increase their interest towards the business practices. This will be a
useful tool to control the business and make effective changes in order to grow in the industry.
Vision for your business idea
The main purpose of the Latino’s Café is to provide an enhanced experience to the customers of
enjoying their coffee time. The business aims at increasing its market share in the business and
introduce new and attractive services for the customers (McKenzie and Sansone, 2019). The
organization will focus upon creating awareness about the brand in the industry in order to get
better response from the customers and increase their engagement towards the new idea. It will
consider expansion in newer market in the future on the basis of its popularity in the industry.
CONCLUSION
According to the above report it has been concluded that the business will be able to gain benefit
by properly analysing the significant areas such as customers, competitors, etc. for preparing
effective strategies. It will be useful for the café to gain a better image in the industry and
improve its growth opportunities in the market of UK. Innovative and unique services will be
provided by the business to attract customer towards their coffee shop and increase its
sustainability in the market.
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REFERENCES
Books and journals
Audretsch, D.B. and Moog, P., 2022. Democracy and entrepreneurship. Entrepreneurship
Theory and Practice. 46(2). pp.368-392.
Barrow, C., Barrow, P. and Brown, R., 2018. The Business Plan Workbook: A Step-By-Step
Guide to Creating and Developing a Successful Business. Kogan Page Publishers.
Chowdhury, F., Audretsch, D.B. and Belitski, M., 2019. Institutions and entrepreneurship
quality. Entrepreneurship Theory and Practice. 43(1). pp.51-81.
Doern, R., Williams, N. and Vorley, T., 2019. Special issue on entrepreneurship and crises:
business as usual? An introduction and review of the literature. Entrepreneurship &
Regional Development. 31(5-6). pp.400-412.
Kudryashova, Y. N., Lazareva, 2020. The organization of management accounting as a
mechanism to improve the efficiency of agricultural enterprises. In BIO Web of
Conferences (Vol. 17, p. 00028). EDP Sciences.
Liguori, E. and Winkler, C., 2020. From offline to online: Challenges and opportunities for
entrepreneurship education following the COVID-19 pandemic. Entrepreneurship
Education and Pedagogy. 3(4). pp.346-351.
Lipset, S.M., 2018. Values, education, and entrepreneurship. In Promise of development (pp. 39-
75). Routledge.
McKenzie, D. and Sansone, D., 2019. Predicting entrepreneurial success is hard: Evidence from
a business plan competition in Nigeria. Journal of Development Economics, 141.
p.102369.
Olanrewaju, A.S.T. and et.al., 2020. Social media and entrepreneurship research: A literature
review. International Journal of Information Management. 50. pp.90-110.
Ratten, V. and Usmanij, P., 2021. Entrepreneurship education: Time for a change in research
direction?. The International Journal of Management Education. 19(1). p.100367.
Wadhwani, R.D. and et.al., 2020. Context, time, and change: Historical approaches to
entrepreneurship research. Strategic Entrepreneurship Journal. 14(1). pp.3-19.
Sintha, L., 2020. Importance of Break-Even Analysis for the Micro, Small and Medium
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