Read & Drink (R&D) café is a unique place that offers coffee, pastries, and free books of famous authors. This business plan covers marketing, funding, SWOT analysis, financial analysis, and management details.
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BUSINESS PLAN OF THE READ & DRINK CAFÉ
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Read & Drink (R&D) café is considered as the place which fulfil the daily requirements of the coffee addicts, as it is the place which helps the customers in escaping their daily stress of the life and also a comfortable place at where they can meet with the friends and read a book at the same time. There is an increase demand of the place which is peaceful and where people can relax for some time for the purpose of releasing the stress of their daily life. It must be noted that, increasing demand of such culture inspire the entrepreneur to set up the café with such unique things. R & D will be established near the Bondi Beach, as it helps the business in creating the wide range of customer groups on repetitive basis. This café offers the best coffee in the area which is accompanied with the pastries and also the free books of famous authors. INTRODUCTION
R & D objectives related to the first year of operations are stated below: R&D wants to become the best café in the relevant area in comparison of the local cafes. Turn on the profits in the 1stmonth of the operations conducted by the business organization. Café aims to maintain the gross margin of 60%. Following are the key success attributes related to the café: Design of the café is of such nature as it attracts the customers, and helps the management in executing fast and efficient operations. Training is given to the employees of the café for the purpose of ensuring the best coffee preparation techniques. Strategies related to the marketing is prepared in such manner as it helps the café in creating strong base of the loyal customers, and also increase the sales of those products which have high margin. OBJECTIVES & KEYS TO SUCCESS
This café mainly aims to create the unique place which allowed the customers to get socialize with each other, as it provides relaxing environment to the customers in which they can enjoyed the best coffee and pastries in the town. This café help the customers to relieve their stress on daily basis, as it provides the peace of mind, convenient location, good customer service, and high quality products. MISSION
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Business Summary: R & D is the sole trader business which mainly offers coffee, different beverages and snacks to its customers in its 4500 Square feet café. As this café is established near the Bondi Beach, because this the place where business can attract loyal customers. Major investor of this business is Mr. Jack Rodrick, as Jack is responsible for each and every thing of the business. Amount for starting the business is estimated almost $40000. Mr, Jack operated this business as the sole trader and legally responsible for every activity of the business. Ownership of the business: This business is operated as sole trader by Mr. Jack Rodrick, and on the basis of sole trader business structure, it is clear that Mr. Jack is responsible to control and own the management of the business. ABOUT BUISNESS
Following is the summary of the business expenses: •Expenses of the legal natures mainly includes the amount related to the licenses and permits, and it also includes the totalling of the accounting services- $1500 •Expenses related to the marketing promotion expenses for the purpose of grand inauguration of the café- $4000. •Fees related to the consultancy, which is given to the XYZ consultancy for the purpose of getting the help in establishing the café- $5000 •Amount related to the insurance coverage in the form of total premium- $2000 •Expenses related to the pre-paid rent amount are $ 7000. •Some other miscellaneous expenses in this context include the $1500. EXPENSES RELATED TO THE BUSINESS
Following are the start-up assets related to business: •Amount of the capital of the business includes the $70000, and it also includes the cash reserves for the starting first two months of the operations. •Start-up inventory of this café includes the $15000. •Equipment’s related to the business costs almost $61000 BUSINESS ASSETS
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Funding related to this business is arranged from two different sources that are savings and investments of the owner and loans taken from the bank. Mr. Jack contributed almost 60% of the total funds used in terms of initiating the business. Other source of the business is the bank loan which is almost 30% of the total funds used in terms of initiating the business (Doug & Polly White). BUSINESS FUNDING
Café industry in the Australia shows the high growth in last 5 years, and reason behind this growth is the increasing culture of the coffee. Growth related to the revenue in this industry is expected to be annualized at 5.1% from last five years. This market is boosted because of number of reasons such as positive attitude of the customers, increase in the customer’s income, etc. All these things encouraged the customers to visit the café. Revenue related to this industry is amplified by almost 2.7% in year of 2017-18 which means almost $8.3 million (IBIS, 2018). MARKETING
There are number of competitors of R & D café, and some of these are stated below: •Local cafes •McDonalds •Star bucks •Gloria cafe COMPETITORS
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Target Market:The main target customers of this business are stated below: •Students and faculties who required peace for studying and working. •Office employees. •Teenagers who wants to get socialize. MARKET ANALYSIS
Following are the strengths, Weakness, opportunities, and threats related to the R&D café: SWOT ANALYSIS StrengthsWeakness Café offers different variety of the coffee and other beverages which is accompanied with delicious pastries. Environment of this café is relaxing and peaceful. Café offers good services to its customers at reasonable This business includes high risk, as there are number of competitors in the business. There are number barriers in the operations of this business.
OpportunitiesThreats This café provides the employment to the local people of the Australia. This café also offers some other types of services such as catering in the birthday parties, weddings, and other events. Diversity in the market, which means there are different types of customers which can be targeted by the café. This concept of book store is unique, as it helps the Large number of competitors are there, and all these competitors already captured large portion of the market, because of which it becomes difficult for the café to capture the market and survive. Local coffee shops are also the big threat for the café. New entrants of the market. SWOT ANALYSIS
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4P’s Strategy MARKETING PLAN ProductsPrice Brewed coffee, Express coffee, Other beverages, Pastries, and Muffins. R&D offers competitive price, and diverse pricing such as small, medium, and large cup. Quality is the premium approach PlacePromotion Place is chose in terms of strategic approach, that is near the beach. Sales promotion techniques, cookie box, etc.
Following are the management details of the business: •Mr. Jack as the owner of the business. •Mr. Sam Thompson as the manager of the café. •Ms. Lily and Ms. Anaya as the senior chefs of the café •Business plan to hire almost 5 employees as servers PROPOSED MANAGEMENT DETAILS
Financial plan of this cafe is depend on these assumptions: •Improvement of the cash flow is the prime focus of the café •Assurance of constant growth •Management also make efforts to increase the receivables quality (Suttle, 2018). FINANCIAL ANALYSIS
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After considering the above facts, it is clear that this business proposal cover each and every thing such as marketing, place, price, products, funding, etc. CONCLUSION
ATO, Sole trader, < https://www.ato.gov.au/Business/Starting-your-own-business/Before-you-get-started/Choosing-your-business-str ucture/sole-trader />. Dooug & Polly White, 10 Ways to Fund Your Small Business,https://www.entrepreneur.com/article/270556. Belcher, SWOT Analysis for a Coffee Café,http://smallbusiness.chron.com/swot-analysis-coffee-cafe-15644.html . Foust, J. The Four P’s of Marketing.http://www.scpress.org/13eBulletin/foust_JAN.pdf IBIS World, (2018). Cafes and Coffee Shops - Australia Market Research Report.https:// www.ibisworld.com.au/industry-trends/market-research-reports/accommodation-food-services/cafes-coffee-shop s.html . Suttle, (2018). Types of Organizational Structure in Management. Retrieved on 2ndJune 2018 from: http://smallbusiness.chron.com/types-organizational-structure-management-2790.html. Ward, S. (2017). Target Marketing Can Be the Key to Increasing Sales. Available at: https://www.thebalancesmb.com/target-marketing-2948355. Accessed on 7thJune 2018. REFERENCES