Business Plan and Analysis for The Heavens Coffee Studio

This business plan and analysis report is for The Heavens Coffee Studio, a micro coffee shop in Leicester Square, West End, London, UK. The report includes market and competitive analysis, SWOT and PESTLE analysis, growth strategy, financial plan, and more. The company offers a variety of hot and cold drinks and foods, with a focus on protein coffee. The owner has invested $40,000 and needs $20,000 more to purchase equipment. The report recommends market development strategy for growth.

Business Plan
“The heavens coffee studio”

1. Executive summary
Business plan is an initiative of human being to convert in actuality. It is a written
material that states the aims and objectives of the firm in detail and evaluate how it design to
fulfil the goal. The main cause or aim of plan of business identify, exposit and evaluate the
possibilities of the business. In below report, the new initiative business is based on the micro
size that belongs to caffeine sector and analyse the market position or environment, SWOT,
PESTLE to point out the elements that is presented in the micro environment. They analysed the
opportunity and research for maximize the growth of the firm. The name of the business is “The
heavens coffee studio” that is started by the Jackson. It is related to the beverages sector that
offers in coffee, cappuccino, americano, special protein coffee and so on. It has several
competitors such as Costa coffee, AMT coffee and so on. All of the analysis or evaluation are
expressed below:

Contents
1. Executive summary......................................................................................................................1
2. Company overview......................................................................................................................1
2.1 legal structure:........................................................................................................................1
2.2 business descriptive:..............................................................................................................1
2.3 Aims and objectives:..............................................................................................................1
3. Products and service offering: ....................................................................................................2
3.1 Products and service type that they offer...............................................................................2
3.2 USP of the company..............................................................................................................2
4. Market and competitive analysis.................................................................................................2
4.1 market size.............................................................................................................................2
4.2 Segmentation of the market...................................................................................................2
4.3 Analysis of SWOT and PESTLE...........................................................................................3
4.4 competitor analysis................................................................................................................4
5. Business strategy..........................................................................................................................5
5.1 marketing mix........................................................................................................................5
5.2 Growth strategy......................................................................................................................6
6. Operating plan..............................................................................................................................6
6.1 Physical location....................................................................................................................6
6.2 Physical resources required....................................................................................................6
6.3 Supplier / direct materials required........................................................................................6
6.4 Break-even analysis...............................................................................................................6
7. Financial Plan...............................................................................................................................7
7.1 Projected income statement...................................................................................................7
7.2 Projected balance sheet..........................................................................................................8
7.3 Projected cash flow statement................................................................................................9
7.4 Ratio analysis.........................................................................................................................9
8. RECOMMENDATIONS...........................................................................................................10
8.1 CONCLUSION....................................................................................................................10
8.2 Risk analysis........................................................................................................................10
8.3 Recommendations................................................................................................................10
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REFERENCES..............................................................................................................................11
APPENDIX....................................................................................................................................13
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2. Company overview
2.1 legal structure:
This firm contains sole trader. They do not have distinct legal identity from the business.
The company has to take the permission from the government of the UK to initiate the business
and get certified registration from them (Carlson and Koch, 2018). They have to take license of
food hygiene. They compliances with all the food safety standards of the beverages industry.
2.2 business descriptive:
Jackson is the owner of the “The heavens coffee studio” (The coffee that boost the
energy). It is a coffee shop that will be established in Leicester Square, West End, London, UK.
It provides the protein coffee, latte, cappuccino, flat white, mocha, expresso and son. They also
furnished the few ice blended goods offered by the heavens coffee studio such as mocha cream
frosting, coffee cream and so on.
Vision:
It focuses on creating the brand image and becoming the most liked brand of the coffee that have
great taste and providing the satisfaction to the costumer because for this organization the coffee
is everting and the universe orbits around it (Colwell, 2019).
Mission: It’s mission is to furnish the universe with authentic and protein coffee flavours. It
presents clearly their passion and love for good coffee.
2.3 Aims and objectives:
 To furnish the comfortable and friendly atmosphere where the consumer can get quality
food, entertainment and services at optimum cost.
 Enhance the market share of the commodities. Maintain and create the relationship along with the consumer.
Funding requirements:
The owner has invested the $40000 capital in the business. They need $20000 more
capital to purchase the new equipment such as coffee maker, Espresso machine, storage
hardware and so on. The owner would take arrange the fund from bank loan (Eklund and Minor,
2021).
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3. Products and service offering:
3.1 Products and service type that they offer
The heavens coffee studio offers the divided their products in various categories such as
hot and cold drinks and foods. In hot drinks they involve the mocha, espresso, latte, cappuccino,
ristretto and so on. In their cold drinks they include cold vanilla or caramel, brew with milk,
freddo. They also furnish the ices teas, fruit coolers, frappe and so on.
3.2 USP of the company
The heavens coffee studio is the perfect aggregation and balance of fragile Arabica and
good quality strong Robusta beans. They roast them for 18 minutes at least to maintain their
hearty flavour, smooth taste and rich aroma.
4. Market and competitive analysis
4.1 market size
The size of the coffee industry is increasing in UK from the past few years. The
consumers have changes the tastes and their preferences of drinking instant coffee towards the
speciality and artisanal coffees (Andrew Friedman and Samantha Miles 2006). It has been
observed from the data of the British coffee association that people consumed 95 million coffee
cups on regular basis in 2018. It has been found that one third of the consumer in the British
country drank 2-6 coffee cups in the coffee shop on weekly basis.
4.2 Segmentation of the market
Market strategy: It refers to the overall game plan of the organization for reaching expected
costumers and changing them into consumer of their commodities or goods (Zeb and Imran,
2019). It contains the value proposition of the organization, data on target consumer
demographics, key brand messaging and all the other high level sources. Segmentation: The heavens coffee studio will target the people and provide the
satisfaction of their needs. The owner has segmented the business on the basis of age
income and mainly focus on teenagers, adults and college students and so on. Targeting: The organization used the selective strategy for the targeting that are
geographically distinct. This strategy helps to the corporation in catering the needs of
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persons and letting them introduce with their new products and services as well. They
will target the people of age group of 18-45 and who have the salary above 240000.
 Positioning: They has done the positioning themselves on the base of their products
where they give the surety about the quality of the coffee cup that remains the long
lasting impression on the human beings or consumers.
4.3 Analysis of SWOT and PESTLE
SWOT analysis: It refers to the structure that helps in assess and understand the forces on the
base of internally and externally that may prepare the opportunities and the risks for the business
enterprise (Estes, 2009).
 Strengths: The strength of this business plan focuses on the key features of their business
that furnish it competitive advantage in the scenario of the market.
1. The heavens coffee studio can be lead the best coffee chain brands that would be based of
out of UK because of their quality and special protein coffee.
 Weakness: It contains the certain aspects of their company that can be improve their
position in the future. These specific weaknesses can be expressed as attributes that the
firm is lacking or in that their rivals are better.
1. It is present in local country or state as compared to their rivals.
 Opportunities: it involves the areas of betterment to enhance their firm. A brand
opportunity can rely in expansion of the geographic, improvement of the product and
good communication. The opportunities of the heavens coffee studio are defined below:
1. The company can merge or open their franchise across the country that helps to
earn more profit.
 Threats: It refers to the factors that can affect their business in negative way. Some
elements such as enhanced the activity of the competitors, converting the policies of the
government, alternate commodities and so on. They can be threats.1. The economic cycle such as the recession or inflation can slow down the growth of the
business and decreases the margin of the profit.
PESTLE analysis: It refers to the strategic structure that is commonly utilized to compute the
company environment in which an enterprise operates (Griffin, 2015). It was extended to involve
all the factors of environmental and legally as well.
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 Political: The firm of coffee is highly based on the trade of international because the
universe's biggest or highest coffee manufacturer are situated in Asia, Africa and South
America. The relationship of trade among the nations that manufacture and consumer the
coffee play a huge role in determining the end and final cost tag of the beverage that
impacts on the sales.
 Economic factor: There is ordinary benefit that is “customers have growing earnings” it
means the customer have more monetary term to expend every year.
 Social: The heavens coffee studio should manage or maintain the social sources or
elements carefully ( Hove and Regeer, 2021). The heavens coffee studio should have
made sure that the products of manufacturing meet the needed demands due to the
present scenario the human beings are getting more awake about health care and issues.
 Technological: It is the most affected elements for the heavens coffee studio that impact
positive. Furnishing data or information and good communication is appropriate
technology to influence the costumer according to market base (Rahman and Rahmah,
2018). The heavens coffee studio should have utilized the Day force workforce
technology of management to design the staff schedule to supply the sufficient and
timely payment of the workers.
 Environmental: The heavens coffee studio has taken the decision to be a part of
preventing the environment. It has determined that it will recycle the similar quantity of
the similar cups utilized by their consumer yearly to control or stop squandering of
millions of cups in dumping ground (Zeng and et al., 2019).
 Legal factors: The heavens coffee studio should follow the law that mentioned to treat
the workers or labours humanely and specific basic working situation require to be
accomplished to law.
4.4 competitor analysis
 Internal rivalry: In this beverages industry, there are various rival so the firm can
influence or attract the consumer by providing them products at discounted value.
 Supplier power: If they have number of supplier, then the cost is high rather than less
supplier.
 Buyer power: If there is large number of rivals then their power is high and the heavens
coffee studio has high competition such as costa coffee, AMT coffee.
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 Threat of substitute: The heavens coffee studio has large number of rivalry brands so
they have availability of varieties of option so consumer can easily transfer towards
another brand.
 Threat of new entrants: Company has to finance high resources of financial in manner
of the retail market so the micro coffee shop or cafe can enter easily in this industry with
less capital.
5. Business strategy
5.1 marketing mix
 Product: The heavens coffee studio offers the cappuccino, Americano, special protein
coffee, mocha cream frostino, coffee cream and so on (McKeever, 2018).
 Price: It should be reasonable. So the Jackson or owner of the enterprise has fixed or
decided the price of their products very wisely and by considering the rival's
commodities.
 Place: This firm will provide their goods and services in crowded area like shopping
mall, famous market and so on.
 Promotion: The heavens coffee studio uses the promotion tool such as word of mouth,
television, hoardings and ad in newspaper.
 People: The organization will reward their staffs by increasing their salaries for increase
their efficiency.
 Process: They will need to some steps that workers must take while handling the orders
such as online platform for delivery.
 Physical evidence: It will focus on maintaining or creating the inviting scenario to entice
consumers to enter the stores. It involve best seating, high quality furniture and attractive
décor.
5.2 Growth strategy
There are 4 strategy of Ansoff growth strategy that helps to the organization. “the
heavens coffee studio” will use the market development strategy that helps to recognizes and
establishes new segment of the market for their current items or products. It targets the new
consumers in new sections.
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6. Operating plan
6.1 Physical location
The location has been chosen by the heavens coffee studio is Liecester Square, West End,
London, UK.
6.2 Physical resources required
They needed the number of resources such as coffee maker, Espresso machine, storage
hardware and so on.
6.3 Supplier / direct materials required
They got the coffee beans from Latin America, milk purchased from fresh ways and
they purchased the direct material such as cups and other items from local shops in UK.
6.4 Break-even analysis
It consists the financial computation of any firm that analysed the cost of new enterprise.
BEP(sales) = Fixed cost /P/V ratio
= 36000/ 12.60%
= 285714
calculation of P/V ratio
(sales- variable cost)/revenue*100
= (70715/224404)*100
= 12.60%
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it shows that cost of the business for making the product is more than the revenue.
7. Financial Plan
7.1 Projected income statement
As per the above presented income statement, it shows all the expenses and incomes that can be
incur during the year and the profit will be 18,499.
7.2 Projected balance sheet
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It shows the all the assets and liabilities that presented the financial position of the heavens
coffee studio.
7.3 Projected cash flow statement
It presents the actual net cash inflow or out flow from their expenditures and incomes. In this
projected cash flow statement the company will gain the cash as profit.
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7.4 Ratio analysis
Current ratio: current assets / current liabilities
= 102,048/ 6065
= 16.82
Quick ratio: Current assets- inventory / current liabilities
= (102,048- 21815)/6065
= 80234/6065
= 13.22
Profitability ratio
Gross profit: Gross profit/revenue*100
= 60%
Net profit: net profit/revenue*100
= 3%
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8. RECOMMENDATIONS
8.1 CONCLUSION
As per the above report, it can be concluded that the business idea of starting the coffee
shop can be successful if they follow and analyse SWOT and PESTLE, market and competitive
research. They can easily get the attention from the customers.
8.2 Risk analysis
They have to evaluate the risk regarding location, their ambience, management and customer
service.
8.3 Recommendations
 The owner has to find out the alternative earlier.
 They must have to collect all the resources prior which they required.
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REFERENCES
Andrew L. Friedman and Samantha Miles 2006. Stakeholders : Theory and Practice.
Carlson, E. and Koch, J., 2018. Building a successful social venture: A guide for social
entrepreneurs. Berrett-Koehler Publishers.
Colwell, K. (2019) Starting a business quickstart guide: the simplified beginner’s guide to
launching a successful small business, turning your vision into reality, and achieving
your entrepreneurial dream. Albany: ClydeBank Media LLC
Eklund, J.C. and Minor, M. J. (2021) ‘Keep your eye on the ball or on the field? Exploring the
performance implications of executive strategic attention’, Academy of Management
Journal, 64(6), pp. 1685–1713.
Estes, J. (2009) Smart Green: How to Implement Sustainable Business Practices in Any Industry
- and Make Money. Hoboken: Wiley.
Griffin, M.P. (2015) how to write a business plan: a step-by-step guide to creating a plan that
gets results. 5th edn. New York: American Management Association.
Hove, N.V. and Regeer, H. (2021) ‘Integrated business planning: a new narrative for an old
process’, Foresight: The International Journal of Applied Forecasting, 63, pp. 46–52.
Jablonski, A. (2017) Business models : strategies, impacts and challenges. New York: Nova
Science Publishers, Inc
Matthews, B. (2018) Five P’s to a wow business: an easy-to-understand, easy-to-implement,
practical guide to business success. Shippensburg: Sound Wisdom
McKeever, M.P. (2018) How to write a business plan. 14th edn. Berkeley: NOLO
Rahman, J.F. and Rahmah, D.M., 2018. Identification of business processes and strategies in
Kadatuan Koffie using SWOT analysis. Industria: Jurnal Teknologi Dan Manajemen
Agroindustri, 7(3). pp.161-169.
Zeb, A. and Imran, M., 2019. Carotenoids, pigments, phenolic composition and antioxidant
activity of Oxalis corniculata leaves. Food Bioscience, 32. p.100472.
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Zeng and et al., 2019. Phytoextraction potential of Pteris vittata L. co-planted with woody
species for As, Cd, Pb and Zn in contaminated soil. Science of the total
Environment, 650. pp.594-603.
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APPENDIX
1.
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3.
4.
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5.
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