Business Development and Value Creation - Business Plan

This business plan outlines the details of Own Style Cafe, a speciality coffee-house in Westminster, London. It includes market research, target market, marketing strategy, and financial summary. The cafe will offer high-quality products and a comfortable atmosphere, with a focus on organic and sustainable ingredients. The target market includes adults, college students, and working professionals. The marketing strategy includes a focus on digital and non-digital methods, with promotions and reward points for loyal customers.

Business Plan

EXECUTIVE SUMMARY
“Own Style Cafe” would be situated in Westminster, London, where people can get an
ideal and calm place to spend leisure time and it also provides augmented reality relaxation
place with a cup of coffee. Every day, millions of people across UK have become habitual for
drinking coffee from nearby coffee stores as well in their homes. People who would not have
ever thought of paying more than a few euros for a cup of coffee, now gladly pays much higher
amount for drinking nice coffee. The “Own Style Cafe” will be incorporated as a partnership
venture, with three partners and their personal liabilities will be subjected to respective
investments of their amounts. The aim will be to offer high quality products and comfortable
coffee-house with a warm and inviting atmosphere. Basically, choosing a suitable location is
essential for any form of business. Therefore, this venture would be established near a hamburger
shop to take the opportunity of first mover advantage.

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Overview of the Business/Industry........................................................................................1
Market Research.....................................................................................................................2
Target Market.........................................................................................................................3
Marketing Strategy.................................................................................................................4
Value Preposition...................................................................................................................6
Organisation and Management...............................................................................................6
Funding/Investment Requirements.........................................................................................7
Financial Summary.................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business plan refers to a detailed, genuine and instructive document that explains a
business idea or plan and the areas of its initiation and execution. “Own Style Cafe” will be
service cafe that will be opened near a burger shop in Westminster, London. This report will
include a detailed elaboration of business plan of Own Style Cafe. The report analyse the
execution and projection of business idea, examines its intrinsic and extrinsic factors that would
affect the business performance. Further, this report will cover the financial analysis for starting
the cafe, with a well-developed set of marketing strategies and SWOT analysis of the business
project. The report at the end would elaborate about the competition and competitiveness of the
market and target customers for the business.
MAIN BODY
Overview of the Business/Industry
According to an analysis by Pew Research, the popularity for coffee and tea in UK is
rising consistently across diversified demographics. It is reported that millions of people across
UK consumes coffee at-least twice a day. The business plan is developed considering the factors
that requires for socialising in comfortable and relaxed ways while maintaining standards and
provides luxurious and attractive ambience. A coffee shop business idea requires data analysis of
existing competitors, markets and pricing policies.
Westminster, London is a prime location where people are many but the coffee shops are
a few. The place is affluent with high density of students, young professionals and adults which
could be an ideal market for establishing “Own Style Cafe”. People in this area have high
purchasing power and have inclined preferences towards coffee beverages. While there are
currently two more coffee stores that are bit too away in consideration of the immediate need of
the customers and no such place offers augmented reality rooms where they could relax and
enjoy variety of coffees and flavoured teas.
The Own Style Cafe will prepare its marketing strategy to carter young people and adults
whose heart asks for quality products, great services and plenty of seating space inside as well as
outside the cafe. The aim of this cafe would be to provide a suitable and refreshing variety of
coffee and flavoured teas where people can enjoy coffee with their friends and family. The place
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will also be availed with Wi-Fi network so that officials and students stays connected to their
work and study activities.
Industry analysis
The overall industry of coffee and its manufacturing has been on the rise as it has become
a high level trend in the modern-era. The increase has trend has been a result due to the
introduction of innovate methods as well as offering of creative products within the market.
These creative and innovative aspects have helped the industry to rise and develop loyal
customer base that is focused on purchasing products of high quality with the element of creative
as well as innovation at reasonable price points.
Market Research
Questionnaires
Q.1 In your area which is more popular cup of coffee in the last 3 months?
a) Robusta
b) Cappuccino
c) Doppio
Q.2 Are you interested in tasting new and organic flavour of coffee?
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a) Yes
b) No
c) Occasionally
Q.3 Why do you go to cafes?
a) Only to have coffee
b) To enjoy the time
c) Catch up with friends
Q.4 Are you interested in having coffee with eco- friendly prices?
a) Yes
b) No
Interpretation:
From the above primary data analysis, it is interpreting that the respondents of west
minster, London. They are very occupied with their working and management techniques, but
still they loved to have coffee on their daily basis. To analyse the market, 20 respondents are
chosen randomly who are the residence of nearby to Own Style Cafe. As per the research, it is
analysed that out of 20 respondents, 10 are having Doppio coffee. On the other hand, most of the
people are interested in having new and organic coffee for the change of coffee. As per the
research, it further analysed that respondents are having coffee or visit cafes just to spend their
own time or to catch up with the friends. In last, it is interpreting that the people of London are
more attract when they have pocket friendly cost of coffee in their working or studying area with
environment friendly nature of Cafe. These first hand data is used to work with different
channels and offer variety of ranges in more suitable and potential ways to analyse the data and
attain maximum potential in the market and get success. In addition to this, the data also provide
crucial evidence of the purchasing behaviour of customs and how they intact with price point of
products as well. The data helped in evaluating and determining that customers have high level
of interest relative to innovates products such as products that are developed through the
utilization of organic raw material.
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Description about product or service and why it is needed
The own style cafe provides different kinds of coffees to their customers in order to relax
their mind and providing a new experience as well. They provide Espresso, Doppio, Ristretto,
long black and short machination and it involves different kinds of coffee beans which gives
their customers a long lasting effect for refreshing themselves. They also provide some snacks
along with it such as sandwich, French fries etc. that will also contribute in terms of finishing out
the small starvation condition as well. They also provide their products on online basis for which
customers only need to book their own choice of coffee and snack on their website and it will be
delivered at the door step of customers within a few minutes. In addition to this the organization
has a wide range of products that allow the business to ensure they are able to cater the needs of
their customers in an effective manner and provide high-level of satisfaction.
Within this changing environment, they have to provide this kind of small drink to their
customers so that they can relax their mind in order to spend their whole day in a well-mannered
way. Coffee not only refreshes the mind of customers but also act as energy drink for an
individual to work again with their full potential. When work pressure and college students have
to spend their relaxing time then they can come to this cafe where they can enjoy and experience
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new things while reading and talking with their dear ones and friends as well. That's why this
cafe is required in this current period of time. With this developing world, they have to provide
this kind of various drinks to their customers so that they can relax their mind and become
tension-free in order to spend their whole day in a well-mannered way. Coffee not only refreshes
the mind of customers but also act as energy drink for an individual to work again with their full
potential.
Target Market
It is very important for any company to target right customers and put their products at
such locations where their products could achieve maximum customer attention. Coffee not only
refreshes the mind of customers but also act as energy drink for an individual to work again with
their full potential. A market has many segments that a company could explore to determine its
target customers and place its products at the best place. Numerous factors like gender, age,
income status, behaviour and preferences of consumers, purchasing patterns and other such
factors could influence target market. The overall target market allows the business to determine
a suitable customers base that it can cater and ensuring high level of growth as well as success.
The STP of Own Style Cafe is designed to appeal to the unique wants and needs of a specific
group which is as follows: Segmenting: The products of the company may not be able to cover all the market area at
its initial boom, therefore it will focus on attaining customers of above 16 age group. This
age group needs extra caffeine and energy boost to continue through their work days. The
Collegiate students, working professionals and adults will be the target segment of Own
Style Coffee House.
 Targeting: The main target audience of Own Style Cafe will include adults, college
students, working class, stay at home parents, health conscious customers, eco-friendly
customers and many others.
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 Positioning: Own Style Cafe will be positioning its products where people could have
convenient location, indoor and outdoor seating, organic products, customer service, and
timely service.
Age Group
19 to 35 years
35 to 65 years
Preferences & Products
more inclined towards high caffeinated
products. Prefers cold beverages and ice cream
based products
authentic taste of coffee, with low caffeine and
sugar. Prefers hot beverages
Income Level
Medium
High
Preferences & Products
Quality products at reasonable prices. Product
offered is flavoured coffees and regular teas.
High quality priced products and services.
Inside and outside serving space along with
premium coffee and unique tastes.
Marketing Strategy
Marketing strategy involves making detailed plan or strategy to garner maximum number
of customers in the market by making them aware about the products and services of the Cafe.
In addition to this it allows a business to ensure it will be effective in the markets relative to its
products and services and provide high level of satisfaction to its customers in order to attain
business growth. For this purpose, the marketing mix can be utilised that consists of combination
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of product, place, price and promotion mix to make the cafe and its products effective to reach its
customers. The marking mix also allow the business to evaluate strategies that will help in
gaining competitive advantage within the market and help in gaining a higher level of market
share in a optimal way. The marketing mix of Own Style Cafe is given below: Product: The Own Style Cafe would show its passion towards coffee and offering the
top-notch quality products by using high quality beans and snacks to maintain taste and
flavours. The competitors uses low grade coffee beans, low grade espressos and
inefficient staff that reduces quality of product and lowers down customer satisfaction.
The cafe will be availed with advanced espresso technology and highly productive
equipments along with the highly trained professionals.
 Place: The Westminster, London area is not served by many cafeterias and nearby areas
does not have any cafes. The Cafe would be offering services in a professionally
designed, inviting, relaxing and spacious place within as well as outside the shop space.
The place will be nearby to the main located situation where a burger distributary is
situated and the place is full of office personal and students. The Own Style Cafe would
show its passion towards coffee and offering high quality products by value addition
through using best inputs.
 Price: This strategy of the market mix helps a business to evaluate the price of its
products and service relative to the offering of its competitions when developing
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products in order to enhance marketing operations. The cafe would use adequate pricing
strategy for regular coffee and speciality coffee. The pricing will be competitive with the
higher end of the market. The prices would be considerably be made by elaborating the
costs that people spend on fuels of vehicle to go to a far-side cafeteria. As per the taste
and quality of the product the prices would be medium-high for the cup of coffee. The
Westminster, London area is not served by many cafeterias and nearby areas does not
have any cafes. It will provide assistance to the business in ensuring that it is able to
capture the marketer in a better way and attain high level of growth as well as
profitability.
 Promotion: To minimise costs and connect to larger customer demographic,
advertisements with the help of digital and non-digital methods would be done. The
promotion would be very much attractive and alluring to the customers. The promotion
would be done through posters on the local campus billboards, social media, and online
methods. The state of art campaign that would be done on the website would attract the
customers and daily announcements on social media sites would be done on Facebook,
twitter and Instagram. The Own style cafe will be unique in using reward points to its
loyal customers to promote its business through its consumers. The utilization of digital
platforms in order to conduct promotional operations will help the business to not only
save cost but enhance its overall productivity as well.
Value Preposition
The Own Style Cafe would be speciality coffee-house, which would include precisely the
natural products. The coffee beans would be grown by the local farmers with the considerations
of not using pesticides or chemicals in the process of growing the coffee beans. The farmers
would be locals and the suppliers would also be from the nearby locations to keep the costs lower
than purchasing beans from outside locations. The coffee cups would be made in the Indian style
clay pottery that would be sustainable and re-useable.
The location of the coffee shop will be in Westminster, near a burger distributary and
near to Victoria Palace Theatre, and Superstore in a nearby location. The place will make it easy
for the people and customers who are driving through the city or simply sterling here and there.
This place is highly concentrated area on the busy main streams where people will definitely
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look for a place to relax and have a cup of coffee. The Own Style Cafe will definitely give a
satisfaction grantee. Customer service would be a priority and if someone does not like our
coffee or products that the cafe offers its a blame on the cafe-house.
All menu prices will be at an affordable price. The coffee house would do all the research
that is necessary for making surety on its quality of products and reasonable prices. The place
will be such where families and friends could come for having a cup of tea with reasonable
prices. It would consider that customers require convenient locations, eco-friendly organic
products, timely services and proper seating space within and outside the cafe area. The coffee
beans would be grown by the local farmers with the considerations of not using pesticides or
chemicals in the process of growing the coffee beans. The farmers would be locals and the
suppliers would also be from the nearby locations to keep the costs lower than purchasing beans
from outside locations.
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Organisation and Management
The “Own Style Cafe” would be a private corporation that would be registered in the
London. The business will be completely owned by its partners in their capital sharing ratio.
Organisation
The business organisation of “Own Style Cafe” would be based in approximately 1800
square feet in a modern, well maintained building in an excellent location. It will also have 450-
500 square feet of outdoor space for parking and 400 square feet of area for external court. The
organisation would have water, electricity, internet, phone and gas services installed in the
building. The previous tenant was a restaurateur, therefore the place is installed with kitchen and
wash-room facilities in a well-mannered place.
The company Would be installing equipment such as Commercial grade “Nuova Simon
Elli Aurelia Ii Digital 4 Group Machine” espresso machine and grinder. The company would also
look towards acquiring its equipment such as refrigerators, dish-washers, microwaves and
storage shelves by negotiating with the previous tenant and local vendor shops. The cafe would
precisely follow bonus and profit sharing schemes with its employees to increase their loyalty
towards the company. Through all these elements the business can ensure high level of success
as well as development which is crucial to attain growth within the market.
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Management
The partners of the company would be the co-managers of the whole business and at least
one of them will be present to manage the business at all the times during the open hours. The
business partners have the experience in their food service and management and are trained-well
experienced professionals. The business will be completely owned by its partners in their capital
sharing ratio.
The “Own Style Cafe” would be a privately registered corporation that would situated in
London. The business will be completely owned by its partners in their capital sharing ratio. The
Own Style Cafe would have three full time and five-eight-part time employees who would be
hired at prevailing industry's wages. The employees will be trained at a food service training
institute. The part time employees will be hired and deployed from the local post-secondary
institutions.
The owners and staff will perform regular duties related to taking orders, clearing tables,
making coffee or tea and snacks, dishwashing, restocking, maintaining wash-room facilities and
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other operations. The management will allow to introduce high level of efficiency within the
business and help the organization to ensure it is able to provide the optimal level of satisfaction
to its customers. In addition to this, the business will be able to improve as well as maintaining a
high level of standard which is crucial to survive in a competitive market.
Funding/Investment Requirements
Business financial system refers to a monetary statement that shows the amount of
investment required in the operations of a business. In order to successfully establish and operate
the Own Style Cafe, the expenses in business should be well calculated and analysed. The
evaluation is necessary as it helps in outlining the overall need of financial resource and how
they will be utilized in order to extract the maximum efficiency. In addition to this, the
evaluation allows the business to determine essential funds that are necessary for unforeseen
circumstance as well. The ascertained cost of the business would be approximately £140
thousand that would be funded using various sources of finance. The motive of this cafe is
achievement of 15%, after interests and taxes, to foster constantly stipulated gross-margins of
closely 50% or more. The ascertained cost of the Own Style Cafe business would be nearly £140
thousand which can be understood using this financial summary:
 Owner's Funds: For establishment of the Cafe business, the primary source of capital
procurement would be owners fund and personal savings (Isaiah, 2021). Each of the
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owners would be investing £40 thousand respectively to contribute and make £120
thousand in total.
 Funds from Other Sources: The remaining amount of total capital requirement i.e. £20
thousand would be obtaining through raising loans.
The capital employed in the business would be £50 thousand for the successful
establishment of the Own Style cafeteria and carry out its fixed costs for upcoming two months.
The £15 thousand would be needed for the purpose of licensing and adequate permissions to
carry out the business operations along with expenditure involved in promotional activities.
Further requirement would be of £10 thousand for the purpose of procurement of stationary and
raw materials and the insurance policies. The use of £45 thousand would be required to purchase
inventory and assess technology to make the area comfortable and suitable for the public. This
would include equipments and technology required to operate coffee making business. The office
workplace would require £5 thousand investment to install computers and billing counters. The
remaining fund of £15 thousand would be kept in reserves in case any emergency occurs.
Financial Summary
The ascertained cost of the Own Style Cafe business would be nearly £150 thousand
which can be understood using this financial summary:
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OPERATIONS FIANCIAL
REQUIREMENTS
Acquiring Land and Establishing Business £60 thousand
Licensing and MOA and AOA of the cafe £15 thousand
Acquiring Inventory and technology £45 thousand
Stationary and raw materials £10 thousand
Billing counter and Miscellaneous Expenses £5 thousand
Reserves and Surplus £15 thousand
TOTAL £150 Thousand
CONCLUSION
The demand and competition among cafeterias serving food and beverage has been
increasing day by day. Considering this fact, more and more cafeterias and restaurants are being
established to cater to the needs and wants of the customers. The people are always eager to taste
and experience different delicacies that are available in the market. Therefore, the owners of
start-up cafes will have to look forward towards choosing better opportunities and methods to
occupy larger consumer segment. The report also conclude that various aspects such as
utilization of innovative raw material help a business to ensuring high level of competitiveness
within the market. In addition to this, it was also concluded that various strategies such as price,
product, place and promotion need to be evaluated by a business in order to understand their
overall positioning within the markets which further helps in determining a target audience. It
has been observed from the report that the start-ups need to be developed with the help of
innovative and advanced marketing techniques to gain large market area. The report has stated
about the overall marketing strategies of the business idea and how the start-ups could promote
utilisation of funds and resources and to obtain greater heights in the market.
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