Sunday Rockers Cafe: A Business Plan for a Startup Coffee and Bakery House

Sunday Rockers Cafe is a startup coffee and bakery house in New South Wales. This business plan covers their mission, products and services, marketing plan, and operational activities. The cafe aims to create a loyal customer base with high-quality products at a competitive price. Their target segment is medium to higher income group, local populations, and tourists. The marketing plan includes benchmarking, social media and other advertising, pricing, distribution, and promotion. The cafe is registered under the Partnership Act of New South Wales and is required to comply with the Workplace Health and Safety Act and the Competition and Consumer Act.

RUNNING HEAD: Entrepreneurship 0
Sunday Rockers cafe
Entrepreneurship
(Student Name)
9/15/2018

Entrepreneurship 1
Table of Contents
Introduction......................................................................................................................................2
Background of the Company...........................................................................................................2
Mission.........................................................................................................................................2
Company History.........................................................................................................................2
Business Goal...............................................................................................................................2
Products and services offerings.......................................................................................................3
Marketing of the Cafe......................................................................................................................3
Market Research..........................................................................................................................3
Market Analysis...........................................................................................................................3
Marketing Plan.............................................................................................................................5
Primary Target market.................................................................................................................5
Marketing Strategy.......................................................................................................................5
Pricing..........................................................................................................................................5
Distribution..................................................................................................................................6
Promotion.....................................................................................................................................6
Evaluation of Market...................................................................................................................6

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Operational Activity of the Cafe......................................................................................................6
Legal and License requirement....................................................................................................6
Management Team and Organizational Structure.......................................................................6
Professional Adviser....................................................................................................................7
Insurance and Security Issues......................................................................................................7
Business Premises........................................................................................................................7
Equipment required......................................................................................................................7
Production process.......................................................................................................................8
Critical risks.................................................................................................................................8
Conclusion.......................................................................................................................................8
Reference.........................................................................................................................................9
Appendix........................................................................................................................................10
Financial Plan.............................................................................................................................10

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Introduction
Sunday rocker Cafe (SRC) is a startup coffee and bakery House located in New South
Wales. SRC will try to create a loyal customer base with the high quality of products at a
competitive price. Target segment of SRC would be medium to higher income group, local
populations and tourists (Schaper, Volery, Weber & Gibson, 2014).
Background of the Company
The Idea of the opening of the coffee house is to fulfill the demands of the consumers,
which is increasing day by day, ensuring that quality standards are fulfilled and citizens can get a
high-quality product at best price and can contribute to the Australians economy. Coffee is one
of the basic ingredients of Australian, whatever may be the scenario or occasion people love to
drink coffee.
Mission
SRC will be focused on good quality of coffee, espresso and pastry products at a modest
price to meet the customer expectation and attract more local natives and tourists.
Success Keys
 The high quality of products
 Competitive pricing

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Company History
SRC is incorporated in the state of New South Wales. It is owned and possessed by its two
partners. Mr. Dale has an expertise in finance and administration & Mr. John has an expertise in
sales and marketing.SRC proposes to run two full-time baristas and four-part time pastry to
manage customer service and daily operations for smooth running.
Goals of Business
The goals of the cafe are to earn considerable revenue and to generate healthy business and
operational environment, where both the customers and employees are cured with self-worth and
respect. The goals are divided into the short-term and long-term.
Short-term goals are:
 Contact or coordinate with advertising consultant for two months to help in analyzing and
capitalizing, the customers buying trends.
 Spend months learning the main rivalry and brainstorm on the products cafe serve and
they do not, that will help to highlight the unique points about the products of café.
 The next goal is customer service goal in which free coupons or discounts offer will be
provided to the customers who take time to respond.
Long-term goals are:
 Increase rush to the café site by minimum forty five percent by the end of the recent
fiscal year.

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 Building the image of café within the public through public outreach developments is the
main long-term goal of business.
 Become chosen as the “Best New Innovative Coffee” by the native restaurant guide.
 Sustain 50 percent gross margin.
Products and services offerings
SRC proposed a different variety of products such as coffee and espresso, which belong
from superior Columbian grown imported coffee beans. SRC would be catering all the needs of
the customers and each coffee would be made unique and would see for smallest details.
SRC will be an espresso-based coffee house such as:
 Cappuccino
Cappuccino offers a luxurious texture with strong espresso flavor. It will be provided with
more skills and concentration. The major thing in cappuccino is frothing the foam to silky
excellence as the milk steams, which SRB take excessive attention to attain.
(Source: Coffee On Point, 2018)

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 White Chocolate Mocha
There is no better way to, experience the profligate white chocolate rather than in this
delicious beverage. The white chocolate mocha will be present in a creamy taste with elegant
taste.
(Source: Copy Me That, 2018)
 Caramel Macchiato
This includes rich vanilla flavored syrup, milk that is freshly steamed with a icing of velvety
ironic foam with a finish of buttery caramel drizzle. Most of the people are passionate about the
signature beverage. We will try to present a better experience.

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(Source: Swanky Recipes, 2018)
 Vanilla Latte
Vanilla latte is one of the delicious parts of espresso. It will present with creamy steamed
milk and classic vanillas syrup, which make the latte more delicious.
(Source: Culinaryginger, 2018)

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Marketing of the Cafe
Market Research
There are certain sources, which were used to prepare business plan such as statistics of
Australian Bureau, Small Business Advisory Network of NSW, meetings with several business
enterprise centers and business brokers in New South Wales, through brief surveys (Burns, Bush
& Sinha, 2014).
Market Analysis
 Industry analysis – Australian coffee Industry is experiencing a strong growth over the
past five years 2019-2020, as Australians remain addicted to coffee. Australia is among
the few countries wherein prompt consumption of coffee is very high. Moreover, the
coffee lovers are extremely attracted in the roots and tastes of the products. Consumers
are keen to know the foundation of coffee beans and the interest of the customer is
utilized in the tactical plans of most of the companies. Revenue of Industry is estimate to
increase by an annualized 2.7% over the five years through 2019-20, to reach $5.0
billion. It embraces estimated growth of 4.2% in 2015-16. Growth will be determined by
trends towards health consciousness, finest eating, and decent consumerism. The
presence of a small coffee business, which is owned by individuals, will continue to mark
their existence. Growing demand of coffee will support development in both business and
its culture (Knox, 2016).
 Competition – Small coffee business owners are estimated to overlook the industry over
next few years. Big chains will find difficulties in establishing themselves due to high
competition at competitive price points. Small business is able to give a better ambiance

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and high quality which even is making it more difficult for big chains. With the high
demand for coffee, business will focus on increasing the profits by cutting down on
wages and bringing different offers which attract consumers more. Few competitors are
as follows: -Kraft Heinz, Starbucks, Nestle, Coffee Beanery, Coffee Republic, Dunkin'
Donut, Luigi Lavazza (Leigh & Triggs, 2016).
 Seasonality – In Australia, it is estimated that individuals are consuming an average of 9
cups of their brew of choice a week. The consumption of hot coffee is dropping by 12%
during the summer month and picking back up in autumn and winter (Connell, Page &
Meyer, 2015).
 Potential strategic alliance – SRB mainly focus on the efforts on searching a small
number of strategic alliances and offering complimentary coffee, snakes and catering
services to local businesses for their grand opening and special events. Furthermore,
offering coffee, food to the local car dealership to give away to customers taking cars for
a test drive (Ricco & Hultberg, 2018).
By this business will have the perceptibility and reasonable products and services, which are
critical to seizing the share of the market.
 SWOT analysis – This tool helps business to recognize the external and internal factors,
which affect business in growth or failure. First two factors Strength and weakness in
SWOT analysis are internal factors, which includes (experience, resource availability –
financial resource). Opportunities and threats are the external factors for business
(Brooks, Heffner & Henderson, 2014). These factors cannot be controlled which includes
(political regulations, economic trends, market trends).

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#Strength – For the SRC, would be Location of the business, convenient for service class,
Opening hours, Quality products and services.
#Weakness – For the SRC, would be Stock (not enough storage space), new brand
goodwill, Visibility in starting days.
#Opportunities – For the SRC, buying the power of the service class individuals, Mouth
publicity, Philanthropic work, Social media presence, offers which we are offering,
Pricing of products.
#Threats – For the SRC, Law & regulating authority, Established Competitors in the
market. An inconsistency in managing things at early stages.
Marketing Plan
Proper business planning will be done by the CEO, in which there will be the preparation
of the detailed business plan, which covers all parts of activity in the cafe. Proper
planning will be done to provide proper training to for two days to the staff (Chernev,
2015).
Primary Target market
SRC focuses on meeting the demands of local residents and tourist.
 Local residents – SRC wants to establish a huge market of local residents which will help
to create a big network and it will provide the consistency to the business. Focused age
group would be 25-35 years as they are young and energetic and most of them are service
classed so it helps them to cool off in the café with coffee and can have business deals in
café also.

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 Tourists – SRC will be focusing on Tourists as well as in season it will boost the sales by
20-30% which will give more visibility of products and services. The brand name would
be recognized in front of other individuals coming from different part of world
(Scarborough, 2016).
Marketing Strategy
The retail coffee industry has recently experienced rapid growth across the world. SRC wants
to create a large and loyal customer base, which will help the business to grow and involves local
residents, which will give strength in getting a competitive advantage. In addition, SRC will be
attracting tourists traffic which will boost business by 25-30% of the revenues.
 Benchmarking – It covers, establishing the business in such a manner that it will lead to
the example and can create or fulfill the requirements and to some extent exceeding the
expectations.
 Social Media and other advertising- Choosing correct medium of marketing helps the
business to make it more cost effective and doing the tie-up with different websites helps
to boost the sales, for example, Food panda, uber eats, Zomato etc. It gives the visibility
and creates a connection between the business and direct consumers. Customers can
utilize the product and services and if any changes are required feedback could be taken
and analysis can be done (Jaworski, 2018).
Pricing
It is one of the critical aspects for any Coffeehouse to be at success growth. Therefore,
our pricing will be strategic and when peak hours would not be there, more offers would be

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introduced to increase the sales. Different combination of snacks plus coffee would be there to
make the offers more lucrative (Wensley, 2016).
Distribution
Distribution is all about reaching the customers in some or another manner, which creates
visibility and builds brand goodwill. Tie up with different distributors, sellers that can boost our
sales. For example, Self-home delivery of products or Tie up with Food panda, Zomato, Uber
eats and so on (Chang & Chen, 2015).
Promotion
Different strategies would be adopted such as “Happy hours” – wherein low sale in
particular hours this offer would be applicable. “Ladies night” for every Wednesday. Loyalty
discount would be provided to the regular customer their phone numbers will be kept in records,
new offers would be provided to them, and extra discounts would be there for them. Free WIFI
for all customers will boost the sales as they would be spending more time in Coffeehouse and
more sales would be there (Baig & Rashid, 2016).
Evaluation of Market
To evaluate the strategy of marketing, it will be measured on every eight-month basis by
examining data of sale to check the performance of the cafe (Greene, 2018).
Operational Activity of the Cafe
Legal and License requirement
 Business name and legal structure

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The Sunday Rockers Café is the partnership company. The structure of the company has
already been registered and established with two partners:
Mr. Dale (50% partnership)
Mr. John (50% partnership)
 Operating laws and license
The cafe is required to register under the acts, which are explained below:
# Workplace health and safety Act, 2011 (Cth) – The café require to make the environment
healthy for employees and for the customers (Chan-Mok, J. O., Caponecchia, C., & Winder,
2014).
# Partnership Act, 1892 (NSW) – The company is registered under the partnership act of New
South Wales (Winship, 2015).
# Competition and Consumer Act, 2010 (Cth) – The café require making the healthy competition
under the act and taking care of the consumer as well (Taylor & McNamara, 2014).
Management Team and Organizational Structure
In the coffee shop, Mr. Dale and Mr. John are the CEOs; Mr. Ronald is the Chief Operating
Officer and one Chief Technology Officer.
 Mr. Dale is expertise in finance therefore, he would capable to establish strategic plans,
forecast the future and govern or manage the budget.

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 Mr. John is expertise in sale and marketing thus, he owns the marketing strategy, which
also includes sales strategy.
 Mr. Ronald handles multipart operating details of the company. The COO takes care that
the cafe can deliver the service gradually.
 Chief Technology officer plays a vital role in Sunday Rockers Coffee shop. CTO need to
prepare the coffee that can mark it better.
 At the end coffee shop need eight waiters to ensure that one waiter is always assign to
those customer who are in need, three-house keeper, one accountant that handles the
account details of the cafe.
Professional Adviser
The cafe needs a professional adviser to run the business more smoothly such as:
 Charted Accountant (CA) - One CA is required to handle the tax-related compliances.
 Lawyer – Not more than one lawyer is needed to handle the legal aspect of the café.
 Insurance Broker – The café require one broker to handle the installment of insurance-
related work.
 Bank Account – There is a requirement to open the current account for the day-to-day
transaction, therefore require coordinating with bank manager in the bank.
Insurance and Security Issues
The cafe needs to secure the business because of uncertainty there will be a requirement
for the insurance of the cafe, which covers the insurance of premises, public liability,
professional indemnity, workers compensation. There is also the need to take certain precautions

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for the business property, equipment, and online security for the website, which covers back up
of data regularly and stored off-site.
Business Premises
The Sunday Rockers Cafe has secured a one-year lease of the vacant that is 2,000 square
feet. The properties formerly occupied by a hair salon. It is situated in a marketable area which is
near from the university campus and covers the busy town commercial area.
Equipment required
The equipment required for the cafes are:
 Espresso machine
 Coffeemaker
 Coffee grinder
 Foodservice equipment such as, toasters, dishwasher, blender, microwave, refrigerator
 Counter area equipment such as a countertop, sink, ice machine
 Hardware for storage such as bins, utensil, shelves and food case
 Equipment of stores such as cash register, ventilation signage, security
 Office equipment such as PC, fax or printer, telephone, fittings and fixtures, and file
cabinets
 Chair and tables

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Production process
The espresso based milk prepare with the ingredient of skimmed or soymilk. The coffee
will be concept on “Gun Shot” of espresso. Each of these coffee beverages is based on a ‘shot’ of
espresso, which is equipped in the machine of espresso by forcing heated water through the
ground coffee at high pressure. Such espresso shots are combined with the ingredient of steamed
milk and/or other additives like cocoa, caramel, to prepare the espresso-based beverages.
Critical risks
There are many risks associated with SRC coffee House as a huge investment is there so
choosing the right equipment, right employees at right time can mitigate the risk factor.
Few risk factors, which cannot be ignored, are as follows: -
 Choosing a correct location - The Café owner, need to choose the location of SRC very
carefully by analyzing the market and demand of the customers so that business can reach
Breakeven point at earliest and profits can be maximized.
 Creating an ineffective layout for customers – Planning each detail to the core such as
from where the customers will enter, wait and dine. Ambiance should be clean and tidy.
 Choosing correct equipment – Choosing the correct equipment, which is cost-effective
and utilizes them accordingly so that unnecessary capital is not utilized under this head
and profits can be maximized.
 Building an inefficient espresso workstation – We need to make sure that we are
designing the correct layout of machines so that if peak hours is where the owner is able
to fulfill each demand quickly.

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Conclusion
Business is one of the most innovative deals by which an individual can show the
creativity. The opening of café is not easy as it involves cost and infrastructure, the individual
need to sure that, what they want to deliver and constantly try to invent the method, which the
individual would be following. It gives a chance to create some new, which is always
appreciated. The main motive if the cafe is to provide a high quality of product and service at
competitive prices which gives value to the customer and will be creating a loyal customer base
which in turns help in stabilizing the business and contribute towards the economy.

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Reference
Baig, F. N., & Rashid, A. G. (2016). Baker Street. Emerald Emerging Markets Case
Studies, 6(1), 1-22.
Brooks, G., Heffner, A., & Henderson, D. (2014). A SWOT analysis of competitive knowledge
from social media for a small start-up business. The Review of Business Information
Systems, 18(1), 23.
Burns, A. C., Bush, R. F., & Sinha, N. (2014). Marketing research (Vol. 7). Harlow: Pearson.
Chang, W. L., & Chen, S. T. (2015). The impact of World Café on entrepreneurial strategic
planning capability. Journal of Business Research, 68(6), 1283-1290.
Chan-Mok, J. O., Caponecchia, C., & Winder, C. (2014). The concept of workplace bullying:
Implications from Australian workplace health and safety law. Psychiatry, Psychology
and Law, 21(3), 442-456.
Chernev, A. (2015). The marketing plan handbook. Chicago: Cerebellum Press.
Coffee On Point. (2018). Best Cappuccino Makers Of 2018. Retrieved from:
https://www.coffeeonpoint.com/best-cappuccino-makers/
Connell, J., Page, S. J., & Meyer, D. (2015). Visitor attractions and events: Responding to
seasonality. Tourism Management, 46, 283-298.
Copy Me That. (2018). Iced White Chocolate Mocha. Retrieved from:
https://www.copymethat.com/r/3RihFXl/iced-white-chocolate-mocha-starbucks-cop/

Entrepreneurship 19
CulinaryGinger. (2018). Earl Grey Orange Vanilla Latte. Retrieved from:
https://culinaryginger.com/earl-grey-orange-vanilla-latte/
Greene, D. L. (2018). Why CAFE worked. In The Theory and Practice of Command and Control
in Environmental Policy, 7(4), (pp. 93-111).
Jaworski, B. J. (2018). Commentary: advancing marketing strategy in the marketing discipline
and beyond. Journal of Marketing Management, 34(1-2), 63-70.
Knox, A. (2016). Coffee nation: an analysis of jobs in Australia's café industry. Asia Pacific
Journal of Human Resources, 54(3), 369-387.
Leigh, A., & Triggs, A. (2016). Markets, monopolies and moguls: The relationship between
inequality and competition. Australian Economic Review, 49(4), 389-412.
Ricco, M. E., & Hultberg, P. (2018). The dilemma down under. The CASE Journal, 14(3), 323-
339.
Scarborough, N. M. (2016). Essentials of entrepreneurship and small business management.
London: Pearson.
Schaper, M,.Volery,T,.Weber,P,. & Gibson, B,.(2014) Entrepreneurship and Small Business 4th
ed. Cornwall: Wiley
Swanky Recipes. (2018). Caramel Macchi. Retrieved from:
http://www.swankyrecipes.com/caramel-macchiato.html
Taylor, D., & McNamara, N. (2014). The Australian consumer law after the first three years-is it
a success?. Curtin Law and Taxation Review, 1(1), 96-132.

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Wensley, R. (2016). The basics of marketing strategy. In The marketing book. New York:
Routledge.
Winship, P. (2015). Drafting General Partnership Laws on the Aggregate or Entity
Theory. SMUL Rev., 68, 629.

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Appendix
Financial Plan
A) Key Assumption
Income sources Sell of food items
Sell of beverages
Number of employees 5 employees
(salary of each emeployee is $
300.)
Projected invetsment in equipment and
material $ 1000
Projected R&D cost $ 800
Deprecitaion allowed for Machinery and equipment @ 10% (SLM)

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Expected rent and rates charges $ 550
Creditor days expected and debtor day
allowed Creditors tunrover days = 58 days
Debtors tunrover days = 10 days
start up Expenses calculations Rent Deposit
$
550
Furniture & Fixtures
$
1,500
Equipment
$
1,000
Buildout/ Renovations
$
800
Decorating, Painting and
Remodeling
$
800

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Installation of Fixtures &
Equipment
$
200
Starting Inventory
$
2,200
Legal and Other Professional Fees
$
1,000
License and Permits
$
300
Advertising and Promotion
$
800
Consulting
$
300
$
9,450

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B) Detailed P&L
Month Apr 18 Apr 19 Apr 20
Income
Sales
Sale of Products
$
50,000.00
$
62,500.00
$
78,125.00
Income (e.g. Commission earned, franchise
fees etc.)
$
500.00
$
15,000.00
$
5,000.00
Other Expense
$
500.00
$
500.00
$
700.00
Total Sales
$
51,000.00
$
78,000.00
$
83,825.00
Less Discounts/Commissions
Sales Discounts
$
2,500.00
$
3,125.00
$
3,906.25

Entrepreneurship 25
Sales Commissions
$
1,250.00
$
1,562.50
$
1,953.13
Total Discounts/ Commissions
$
3,750.00
$
4,687.50
$
5,859.38
Total Net Income
$
47,250.00
$
73,312.50
$
77,965.63
Cost of Sales
Opening Stock $ -
$
2,000.00
$
1,750.00
Inventory Purchased
$
20,000.00
$
25,000.00
$
31,250.00
$
20,000.00
$
27,000.00
$
33,000.00
Less Closing Stock
$
2,000.00
$
1,750.00
$
1,980.00
Total Cost of Sales $ $ $

Entrepreneurship 26
18,000.00 25,250.00 31,020.00
Gross Profit
$
29,250.00
$
48,062.50
$
46,945.63
Expenses
Administrative & General
Charges Of Bank
$
500.00
$
500.00
$
500.00
Credit card commission
$
1,000.00
$
1,000.00
$
1,000.00
Consultant fees
$
1,500.00
$
1,500.00
$
1,500.00
Office Expenses
$
800.00
$
800.00
$
800.00
Business insurance
$
900.00
$
900.00
$
900.00

Entrepreneurship 27
Etc.
$
800.00
$
800.00
$
800.00
Total General & Administrative
$
5,500.00
$
5,500.00
$
5,500.00
Marketing & Promotional
Advertising
$
1,000.00
$
1,100.00
$
1,210.00
Promotion - General
$
1,500.00
$
1,650.00
$
1,815.00
Promotion - Other
$
800.00
$
880.00
$
968.00
Etc.
$
700.00
$
770.00
$
847.00
Total Marketing & Promotional
$
4,000.00
$
4,400.00
$
4,840.00

Entrepreneurship 28
Operating Expenses
Newspapers & magazines
$
2,500.00
$
2,500.00
$
2,500.00
Parking/Taxis/Tolls
$
1,000.00
$
1,000.00
$
1,000.00
Laundry/dry cleaning
$
800.00
$
800.00
$
800.00
Cleaning & cleaning products
$
785.00
$
785.00
$
785.00
Sundry supplies
$
415.00
$
415.00
$
415.00
Equipment hire
$
250.00
$
250.00
$
250.00
Etc. $ - $ - $ -
Total Operating Expenses $ $ $

Entrepreneurship 29
5,750.00 5,750.00 5,750.00
Motor Vehicle Expenses
Fuel
$
500.00
$
501.00
$
502.00
Vehicle service costs
$
760.00
$
761.52
$
763.04
Tyres & other replacement costs
$
200.00
$
200.00
$
200.00
Insurance
$
100.00
$
100.00
$
100.00
Registrations $ - $ - $ -
Total Motor Vehicle Expenses
$
1,560.00
$
1,562.52
$
1,565.04
Website Expenses
Domain name registration $ $ $

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2,000.00 2,000.00 2,000.00
Hosting expenses
$
250.00
$
250.00
$
250.00
etc $ - $ - $ -
Total Website Expenses
$
2,250.00
$
2,250.00
$
2,250.00
Employment Expenses
Permanent $ - $ - $ -
Salaries/Wages
$
1,000.00
$
1,250.00
$
1,562.50
PAYE
$
1,000.00
$
1,250.00
$
1,562.50
Superannuation
$
200.00
$
250.00
$
312.50
Other - Employee Benefits $ $ $

Entrepreneurship 31
200.00 250.00 312.50
Recruitment costs
$
150.00
$
15.00
$
15.00
Total Perm. Employment Expenses
$
2,550.00
$
3,015.00
$
3,765.00
Casual
Salaries/Wages
$
5,000.00
$
5,000.00
$
5,000.00
Recruitment costs
$
5,000.00
$
5,000.00
$
5,000.00
Total Casual Employment Expenses
$
10,000.00
$
10,000.00
$
10,000.00
Workcover Insurance $ - $ - $ -
Total Employment Expenses
$
12,550.00
$
13,015.00
$
13,765.00

Entrepreneurship 32
Occupancy Costs
Electricity/Gas
$
250.00
$
312.50
$
390.63
Telephones
$
50.00
$
50.00
$
50.00
Property Insurance
$
15.00
$
15.00
$
15.00
Rates
$
10.00
$
10.00
$
10.00
Rent
$
150.00
$
150.00
$
150.00
Repair & maintenance
$
60.00
$
60.00
$
60.00
Waste removal
$
25.00
$
25.00
$
25.00
Water $ $ $

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25.00 25.00 25.00
Etc. $ - $ - $ -
Total Occupancy Costs
$
585.00
$
647.50
$
725.63
Other Expenses
Machineries
$
5,000.00
$
5,000.00
$
5,000.00
Vehicles
$
200.00
$
200.00
$
200.00
Equipment
$
5,000.00
$
5,000.00
$
5,000.00
Total Other Expenses
$
10,200.00
$
10,200.00
$
10,200.00
Total Expenses
$
28,385.00
$
29,312.50
$
30,580.63

Entrepreneurship 34
Net Profit / (Loss)
$
865.00
$
18,750.00
$
16,365.00
Total Year to Date Net Profit / (Loss)
$
865.00
$
19,615.00
$
35,980.00
C) Summary of Profit and Loss A/C
Profit & Loss
Statement
Month Apr 18 Apr 19 Apr 20
Income
Total Sales 51,000 78,000 83,825
Less Total Disc/Comm 3,750 4,688 5,859
Total Net Income 47,250 73,313 77,966
Less Total Cost of Gooods 18,000 25,250 31,020

Entrepreneurship 35
Sold
Gross Profit 29,250 48,063 46,946
Expenses
Administrative & General 5,500 5,500 5,500
Promotional & Marketing 4,000 4,400 4,840
Operating Expenses 5,750 5,750 5,750
Expenses of Motor Vehicle 1,560 1,563 1,565
Website Expenses 2,250 2,250 2,250
Total Employment
Expenses 12,550 13,015 13,765
Occupancy Costs 585 648 726
Other Expenses 10,200 10,200 10,200
Total Expenses 28,385 29,313 30,581

Entrepreneurship 36
Monthly Net Profit /
(Loss) 865 18,750 16,365
Total Year to Date Net Profit / (Loss) 865 19,615 35,980
Profit and Loss Ratios
Gross Margin
(Gross Profit / Net Income)
0.61904
8
0.65558
4
0.60213
2
Net Margin
(Net Profit / Net Income)
0.01830
7
0.25575
4 0.2099
Mark Up
((Net Income Less Cost of Goods Sold) / (Cost of
Goods Sold)) x 100 1.625
1.90346
5
1.51339
9
Break Even
( Expenses/((1-(Cost of Goods Sold/ Net Income))
45852.6
9
44712.0
4
50787.2
1

Entrepreneurship 37
D) Balance Sheet
Balance Sheet
Month Apr 18 Apr 19 Apr 20
Assets
Current Assets
Cash in hand
$1,00,000.0
0
$5,000.0
0
$25,000.
00
Debtors $3,000.00
$4,000.0
0
$8,000.0
0
Prepaid Expenses
General
Prepaid
expenses $2,000.00
$2,000.0
0
$2,000.0
0
Rates of
Product $1,000.00
$1,000.0
0
$1,000.0
0

Entrepreneurship 38
cover of work $250.00 $250.00 $250.00
Insurance $5,000.00
$5,000.0
0
$5,000.0
0
Total Prepaid
expenses
$
8,250.00
$
8,250.00
$
8,250.00
Inventory
Coffee Raw
material
$2,000.0
0
$1,750.0
0
Total
Inventory
$
18,000.00
$
25,250.0
0
$
31,020.0
0
Short term Investments
$
50.00
$
500.00
$
1,000.00
Other current assets
$
-
$
1,500.00
$
2,500.00
Total Current Assets $ $ $

Entrepreneurship 39
1,29,300.00
44,500.0
0
75,770.0
0
Fixed Assets
Desktop or Laptops $5,000.00
$5,000.0
0
$5,000.0
0
Store Requirement $1,000.00
$1,000.0
0
$1,000.0
0
Equipment related to office $1,500.00
$1,500.0
0
$1,500.0
0
Leasehold $1,500.00
$1,500.0
0
$1,500.0
0
Buildings & improvements $3,000.00
$3,000.0
0
$3,000.0
0
Fixture and Furniture $1,100.00
$1,100.0
0
$1,100.0
0
Total Fixed Assets $ $ $

Entrepreneurship 40
5,600.00 5,600.00 5,600.00
Total Assets
$
1,34,900.00
$
50,100.0
0
$
81,370.0
0
Liabilities
Current Liabilities
Bank Overdraft
$
-
$
9,000.00
$
9,000.00
Debt of Credit card
$
5,000.00
$
8,000.00
$
12,000.0
0
Creditors
$
3,000.00
$
12,000.0
0
$
9,000.00
GST of Cafe collected
$
-
$
500.00
$
5,000.00

Entrepreneurship 41
Superannuation
$
-
$
150.00
$
800.00
PAYG Witholding Payable
$
-
$
200.00
$
600.00
Workcover Insurance Payable
$
-
$
400.00
$
400.00
Current portion of long term
debt
$
10,000.00
$
10,000.0
0
$
10,000.0
0
Etc.
Total Current Liabilities
$
18,000.00
$
40,250.0
0
$
46,800.0
0
Long-Term
Liabilities
A loan of
Motor
$ $ $

Entrepreneurship 42
Vehicle 1,000.00 500.00 300.00
Finance
Equipment
$
800.00
$
1,500.00
$
1,000.00
Long term Loans
$
200.00
$
500.00
$
800.00
Total Long Term Liabilities
$
2,000.00
$
2,500.00
$
2,100.00
Total Liabilities
$
20,000.00
$
42,750.0
0
$
48,900.0
0
Net Assets
$
1,14,900.00
$
7,350.00
$
32,470.0
0
Shareholders Funds ( Equity)
Owners
Funds
$
1,00,000.00
-$
12,765.0
-$
5,510.00

Entrepreneurship 43
0
Retained
Earnings
$
14,035.00
$
500.00
$
2,000.00
Current Year Profit
$
865.00
$
19,615.0
0
$
35,980.0
0
Total Shareholders
Funds (Equity)
$
1,14,900.00
$
7,350.00
$
32,470.0
0
Balance Sheet Ratios
Current Ratio (Current Assets / Current Liabilities)
7.18333333
3
1.105590
062
1.61901
7094
Quick Ratio ( Current Assets less inventory) / (Current
Liabilities less bank overdraft) 6 1 1
Working Capital Funds
(Current Assets Less Current Liabilities) 1,11,300 4,250 28,970

Entrepreneurship 44
Leverage Ratio (Total Liabilities / Total Assets)
0.14825796
9
0.853293
413
0.60095
8584
Debt to Equity Ratio
(Total Liabilities / Total Shareholders Funds)
0.17406440
4
5.816326
531
1.50600
5544
E) Cash Flow
Cash Flow Statement
Cashflows from Operations
Cash receipts from customers
(enter positive a Cash Sales $ 210,000 $ 220,500 $ 231,525 $ 243,101 $ 255,256 $ 268,019 $ 281,420 $ 295,491 $ 310,266 $ 325,779 $ 342,068 $ 359,171
Cash collected f $ 150,000 $ 157,500 $ 165,375 $ 173,644 $ 182,326 $ 191,442 $ 201,014 $ 211,065 $ 221,618 $ 232,699 $ 244,334 $ 256,551
Funding from Creditors $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Stock purchased, $ 150,000 $ 157,500 $ 165,375 $ 173,644 $ 182,326 $ 191,442 $ 201,014 $ 211,065 $ 221,618 $ 232,699 $ 244,334 $ 256,551
Cash paid for $ 100,000 $ 105,000 $ 110,250 $ 115,763 $ 121,551 $ 127,628 $ 134,010 $ 140,710 $ 147,746 $ 155,133 $ 162,889 $ 171,034
(enter negative Total Expenses $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Inventory (stock $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Funding to Debtors
Sales made not y $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Net Cash Flow from Operations $ 610,000 $ 640,500 $ 672,525 $ 706,151 $ 741,459 $ 778,532 $ 817,458 $ 858,331 $ 901,248 $ 946,310 $ 993,626 $ 1,043,307
Investing Activities $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Cash receipts from $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
(enter positive a Sale of property $ - $ - $ - $ - $ 50,000 $ - $ - $ - $ 80,000 $ - $ - $ -
Matured Investme$ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000