Project Management: Launching a Small Coffee Shop

This report provides a business case proposal for launching a small coffee shop, including the value proposition, project requirements, costs, major risks, and timescale.

Running head: PROJECT MANAGEMENT
Project Management
Name of Student
Name of University
Author Note

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Executive Summary
The report aims to draft a business case proposal related to launching of a small coffee shop. The
business case proposal provides the overview of the project that is proposed. It is assumed that
funding for this project will be granted for Australia Business Finance Centre. Australia Business
Finance centre is offering business grants and loans to the deserving student. The proposal has
been prepared to seek the funding for the same. The report gives an idea of the value proposition
and the requirements of the project. The business case includes the total cost, major risks and the
time required to complete the project.

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Table of Contents
1. Overview/Background of the project proposal.................................................................3
2. Key Analysis....................................................................................................................3
2.1. Value Proposition.....................................................................................................3
3. Project Requirements.......................................................................................................4
3.1. Identified Requirements............................................................................................4
3.2. Assumptions for the Project......................................................................................5
3.3. Project Constraints....................................................................................................5
4. Costs................................................................................................................................6
4.1. Overall Budget..........................................................................................................6
4.2. Tools for Cost Analysis............................................................................................8
5. Major Risks......................................................................................................................8
6. Timescale.......................................................................................................................10
Conclusion.........................................................................................................................12
Bibliography......................................................................................................................14

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1. Overview/Background of the project proposal
The purpose of this business proposal is to propose a project of launching of a Coffee
shop so that funding for the project can be approved from Australia Business Finance Centre. It
is expected that funding for the project can be availed for launching of the Coffee Shop Business.
The funding from Australia Business Finance Centre can be achieved only for a small scale
projects and therefore the project of launching of a coffee shop is chosen. The business case
proposal identifies the problem that will be solved with the implementation of a project through
funding from Australia Business Finance Centre. The proposal identifies the benefits associated
with the implementation of this project.
The analysis section of this business proposal identifies the requirements that are needed
to be completed in a project and describes the assumptions that has been considered for
designing a business proposal for a project associated with launching of small coffee shop. This
project is a small-scale project and has certain constraints as well. The proposal discusses the
major constraints of the project as well. The proposal provides an idea of the estimated cost of
launching a coffee shop. It is expected that the project of launching a coffee shop project can be
implemented with a budget of $40,000. The Coffee shop project is expected to generate revenue
right from the first year. The analysis part of the proposal further gives an idea of the time
required for implementation of the Coffee Shop project.
2. Key Analysis
This section of the report aims in identification of the major characteristic features and
the specifications of the project. The key analysis section analyses the need and importance of
implementing this project. The proposed project is expected to provide a positive outcome and is
therefore considered beneficial for the community. The analysis section will be identifying the
major assumptions and constraints of the project. The key analysis section will be identifying the
major risks associated with the project that are needed to be mitigated. The project completion
time is further indicated in this section of the research report. A realistic schedule is prepared so
that the chosen project is implemented within the set cost and the budget allocated for the
project.
2.1. Value Proposition

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Business Objective: The business objective of the project is to open a small coffee shop in the
outskirts of the city. The project is expected to work for the benefits of the community. The
objective of the project is to open a coffee shop within a budget of $40000.
Problem to be solved: The proposal identifies the major problems that can be solved by opening
a coffee shop. The coffee shop can act as a good business opportunity for the owner solving the
economic crisis.
Current Market: It is proposed that the coffee shop will be opened at the outskirts of the city
where it is most needed. The coffee shop project therefore is a good business opportunity and it
is expected that the project will be beneficial for the owner. A refreshing coffee shop joint has
the ability to attract customers of all age group.
Benefits: The project of opening a coffee shop involves launching of a coffee shop at the
outskirts of a city. The coffee shop is expected to benefit the community as it can act as a great
business opportunity for a number of people.
Expected Outputs: The launch of the coffee shop is expected to improve the financial stability
of the owner and is further expected to act as a business opportunity for unemployed people. The
funding for this project is expected to be achieved from the Australia Business Finance Centre,
as the project aims to benefit the community.
3. Project Requirements
This section of the proposal will discuss the various project requirements that is
associated with a project. Appropriate requirement analysis is necessary to plan and implement
the project that is designed to benefit the community.
3.1. Identified Requirements
A project plan for the coffee shop project is needed to be developed so that funding for
the same can be applied to Australia Business Finance Centre. The main requirements for
development and launch of coffee shop are as follows-
1. Identification of the basic requirements

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2. Development of Project Plan
3. Estimating the equipment that will be required such as tables and counters
4. Securing the Funds for the project
5. Securing a Lease for the coffee shop
6. Development of the market plan
3.2. Assumptions for the Project
The main assumptions that are considered for the project are as follows-
1. It is assumed that the funding for the project of opening a coffee shop will be achieved
from Australia Business Finance Centre.
2. It is assumed that a place for opening a coffee shop can be easily obtained in lease
3. It is assumed that the resources needed for the project will be readily available during
the project execution
4. It is assumed that the project can be easily completed within $40,000.
5. It is assumed that the project will work for the benefit of the community.
3.3. Project Constraints
The constraints related to the project are indicated below-
1. The project should not exceed a budget of $40,000.
2. The project need to generate revenue for the community.
3. The project can start only after achieving funding from Australia Business Finance
Centre.
4. The project is needed to be implemented in a limited resources, which is a major
constraint of the project.

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5. The project should not sort any other funding or donation other than Australia
Business Finance Centre.
6. The project is needed to generate revenue within 1 year.
The above discussed points indicate the major constraints associated with implementation
of the Coffee shop project. The section describes the needed project requirement that will ensure
successful completion of the Coffee Shop project.
4. Costs
One of the significant constraints in the project that has been proposed, is that the project
is needed to be implemented within a budget of $20,000 to $40,000. A project of coffee shop
launch is proposed which will be implemented within a budget of $40,000. The main cost and
the overall budget of the project is detailed in the table below.
4.1. Overall Budget
The overall budget of the project is detailed in the table that follows-
Task Name Duration Resource Names Cost
Coffee Shop Launch 83 days $39,420.00
Project Starts 0 days Project Manager $0.00
Project Initiation 17 days $6,560.00
Requirement Identification 3 days Project Manager, Resource
Manager $1,800.00
Meeting with Australia
Business Finance Centre 5 days Australia Business Finance
Centre, Project Manager $1,600.00
Inspecting the Area on which
the coffee shop is to be set up 7 days Functional Manager $2,520.00
Finalizing the place where the
coffee shop is to be set up 2 days Project Manager $640.00
Milestone 1: Finalising the
Place of Coffee Shop 0 days $0.00
Project Planning 20 days $13,800.00
Meeting the Landlord For
Lease 3 days Project Manager $960.00
Finalizing the contract price 2 days Land Lease [1],Project
Manager $5,640.00
Milestone 2: Signing the 0 days $0.00

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documents
Estimating the schedule and
the time required for the research 4 days Project Manager $1,280.00
Estimating the Budget 3 days Project Manager, Resource
Manager $1,800.00
Analysing the project
Constraints 3 days Functional Manager $1,080.00
Developing the Project Plan 2 days Project Manager $640.00
Health Department
Investigation 3 days Health Department $2,400.00
Milestone 3: Approval of the
Project Plan 0 days $0.00
Project Implementation 34 days $14,940.00
Cleaning the Place 2 days Cleaning Staffs, Labourers $640.00
Ordering the necessary
furniture 1 day Functional Manager, Project
Manager $680.00
Selection of the paint
contractor 2 days Cost of Paint [1],Labourers $2,320.00
Selecting the Equipment
Supplier 2 days Functional Manager,
Equipment Cost[1] $1,720.00
Setting up the working desk 7 days Labourers $1,120.00
Insuring the business 3 days Project Manager $960.00
Hiring the staffs 10 days Functional Manager $3,600.00
Distributing the employee
manual 5 days Functional Manager $1,800.00
Advertising through flyers 10 days Staffs ,cost of flyers
printing[1] $2,100.00
Milestone 4: Setting up of the
Coffee Shop 0 days $0.00
Coffee Shop Launch 3 days $960.00
checking if the coffee shop is
ready for launch 2 days Project Manager $640.00
Grand Opening 1 day Project Manager $320.00
Milestone 5: Coffee Shop
Launch 0 days $0.00
Project Closure 9 days $3,160.00
Documentation 2 days Functional Manager $720.00
Payment Completion 2 days Functional Manager $720.00
Resource Release 3 days Functional Manager $1,080.00
Client Sign Off 2 days Project Manager $640.00
Project Ends 0 days $0.00

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Table 1: Representing the Cost of the Proposed Project
4.2. Tools for Cost Analysis
There are certain cost estimation tools that are used to estimate the cost and the budget of
a project. The techniques of cost estimation that are mainly used in small scale projects include
analogous estimation, parametric estimation and expert judgement. In this project, the analogous
estimation technique is used. In this technique, the information from previous projects or similar
projects are considered in estimation of the project budget. This technique of cost estimation is
chosen for this project as it is less costly and less time consuming that the other methods of cost
estimation and analysis. The project is expected to give a positive ROI.
5. Major Risks
Launching of new coffee shop project with the funding from Australia Business Finance
Centre is associated with a number of risks. It is quite vital to address and manage the risks and
issues related to a project can result in failure of the project. This particular project although is a
small scale project, there are certain risks and uncertainties that are needed to be addressed.
Uncertainties in the project related to opening of a small scale coffee shop are needed to
be addressed. The major risks associated with the coffee shop project and the risk mitigation
approach of the identified risks are indicated in the table below-
Risk Description Probability Impact Mitigation
Approach
Budget Risk The project is
needed to be
completed
within a set
budget of
$40,000, which
gives rise to a
budget risk in
the project
High High A feasible and
realistic project
plan is required
to be developed
to ensure that
successful
project
execution within
the proposed

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budget
Problems with
Lease for the
Coffee Shop or
choosing a
financially
unsustainable
location
Since the budget
of the project is
quite limited, it
is not possible to
buy a new place
for a coffee shop
and therefore a
place is needed
to be taken on a
lease, which
gives rise to the
risk.
High Medium The risk of
choosing a
financially
unstable location
can be mitigated
by inspecting the
area on which
the coffee shop
is to be set. The
inspection
should involve,
analysis of the
financial gain
and customer
reach.
Building an
inefficient
espresso work
station due to
lack of
experience due
to lack of
experience due
to lack of
experience
The coffee shop
project need to
incorporate a
space of building
a barista that
will help in
carrying out the
high demand
work in an
efficient way.
Medium High In order to
mitigate the risk,
it is essential to
estimate the
resources that
will be needed to
manage the
coffee shop. The
working station
should be
developed
accordingly.
This will help in
mitigation of the
risks

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6. Timescale
The project will take at least 83 days to complete. The schedule estimate of the project is
indicated in the table that follows-
WBS Task Name Duration Start Finish
0 Coffee Shop Launch 83 days Mon 01-04-
19
Wed 24-07-
19
1 Project Starts 0 days Mon 01-04-19 Mon 01-04-19
2 Project Initiation 17 days Mon 01-04-
19 Tue 23-04-19
2.1 Requirement Identification 3 days Mon 01-04-19 Wed 03-04-19
2.2 Meeting with Australia Business
Finance Centre 5 days Thu 04-04-19 Wed 10-04-19
2.3 Inspecting the Area on which the coffee
shop is to be set up 7 days Thu 11-04-19 Fri 19-04-19
2.4 Finalizing the place where the coffee
shop is to be set up 2 days Mon 22-04-19 Tue 23-04-19
2.5 Milestone 1: Finalising the Place of
Coffee Shop 0 days Tue 23-04-19 Tue 23-04-19
3 Project Planning 20 days Wed 24-04-
19 Tue 21-05-19
3.1 Meeting the Landlord For Lease 3 days Wed 24-04-19 Fri 26-04-19
3.2 Finalizing the contract price 2 days Mon 29-04-19 Tue 30-04-19
3.3 Milestone 2: Signing the documents 0 days Tue 30-04-19 Tue 30-04-19
3.4 Estimating the schedule and the time
required for the research 4 days Wed 01-05-19 Mon 06-05-19
3.5 Estimating the Budget 3 days Tue 07-05-19 Thu 09-05-19
3.6 Analysing the project Constraints 3 days Fri 10-05-19 Tue 14-05-19
3.7 Developing the Project Plan 2 days Wed 15-05-19 Thu 16-05-19
3.8 Health Department Investigation 3 days Fri 17-05-19 Tue 21-05-19
3.9 Milestone 3: Approval of the Project
Plan 0 days Tue 21-05-19 Tue 21-05-19
4 Project Implementation 34 days Wed 22-05-
19
Mon 08-07-
19
4.1 Cleaning the Place 2 days Wed 22-05-19 Thu 23-05-19
4.2 Ordering the necessary furniture 1 day Fri 24-05-19 Fri 24-05-19
4.3 Selection of the paint contractor 2 days Mon 27-05-19 Tue 28-05-19
4.4 Selecting the Equipment Supplier 2 days Wed 29-05-19 Thu 30-05-19
4.5 Setting up the working desk 7 days Fri 31-05-19 Mon 10-06-19

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4.6 Insuring the business 3 days Mon 27-05-19 Wed 29-05-19
4.7 Hiring the staffs 10 days Tue 11-06-19 Mon 24-06-19
4.8 Distributing the employee manual 5 days Tue 25-06-19 Mon 01-07-19
4.9 Advertising through flyers 10 days Tue 25-06-19 Mon 08-07-19
4.10 Milestone 4: Setting up of the Coffee
Shop 0 days Mon 08-07-19 Mon 08-07-19
5 Coffee Shop Launch 3 days Tue 09-07-19 Thu 11-07-19
5.1 checking if the coffee shop is ready for
launch 2 days Tue 09-07-19 Wed 10-07-19
5.2 Grand Opening 1 day Thu 11-07-19 Thu 11-07-19
5.3 Milestone 5: Coffee Shop Launch 0 days Thu 11-07-19 Thu 11-07-19
6 Project Closure 9 days Fri 12-07-19 Wed 24-07-
19
6.1 Documentation 2 days Fri 12-07-19 Mon 15-07-19
6.2 Payment Completion 2 days Tue 16-07-19 Wed 17-07-19
6.3 Resource Release 3 days Thu 18-07-19 Mon 22-07-19
6.4 Client Sign Off 2 days Tue 23-07-19 Wed 24-07-19
6.5 Project Ends 0 days Wed 24-07-19 Wed 24-07-19
The activities in the project that is marked in red in the table above represents the major
milestone of a project. Successful achievement of the above marked milestone will indicate
successful execution of the project.
The schedule Gantt chart of coffee shop launch project is indicated in the figure that
follows-

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Figure 1: Representing the Gantt chart of the Coffee Shop Launch Project
Conclusion
The business proposal provides the details of the coffee shop launch project. The project
is proposed with an aim of securing fund from Australia Business Finance Centre. The project of

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opening a coffee shop meets all the criteria set by the Australia Business Finance Centre. The
project is expected to be implemented within a budget of $40,000 and no external funding is
anticipated for the project. The report discusses the key project requirements, project cost, major
risks linked to the project and its schedule implementation. The detailed project business case
will be drafted to Australia Business Finance Centre for application of project funding. It is
expected that the funding for this project will be achieved as the project follows all the criteria
set by Australia Business Finance Centre

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