Business Development Plan: Beam Coffee Cafe in Crouch End, London

This report presents a comprehensive business plan for Beam Coffee, a new cafe concept located in Crouch End, London. It begins by outlining the business concept, focusing on a cafe that caters to health-conscious individuals with herbal coffee and healthy breakfast options. The report then delves ...Read More

Entrepreneurship and
business development
1

Table of Contents
Introduction .....................................................................................................................................3
Main Body.......................................................................................................................................3
New Business concepts..........................................................................................................3
Industry Analysis (Porter's five forces)..................................................................................4
Market Analysis (STP)...........................................................................................................5
Marketing Mix........................................................................................................................7
Organisational Analysis (SWOT)...........................................................................................8
Financial feasibilities..............................................................................................................8
Value Chain............................................................................................................................9
Business Model Canvas .......................................................................................................11
Potentials risk and Mitigation plan ......................................................................................13
Conclusion.....................................................................................................................................15
References......................................................................................................................................16
Books & Journals.................................................................................................................16
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Introduction
A business plan is one of the important tool for the entrepreneurs as this helps them to
make a strong focus on very specific steps to make the new business idea. This plan is also
helpful for gaining short-term and long-term goals objective for the new company. The main
reason for doing effective business plan is helpful for raising money, make sound decisions,
identified the potentials weaknesses and to communicate the idea with their specific shareholders
(Alareeni, Hamdan and Elgedawy, 2021). This report includes the idea for established a new
business with effective internal and external marketing strategies. The main concept of the
business is opening a new cafe coffee shop, in the heart of Crouch End, London. The name of the
new cafe is “Beam Coffee” (ALOURHZAL and HATTABOU, 2021). This report includes the
detailed concepts of business idea, industry, market, organisational, financial analysis. In last
with the help of business model and risk mitigation plan, a valid and reliable business plan is
executed in this report.
Main Body
New Business concepts
In many ways, a cafe is the start-up's for the growth of new venture in UK market. After
facing the impact of Covid-19, many business owners are change their ways to operate business
in an effective approaches. Due to the lock-down restrictions in the market, many of the new
entrepreneur are start for understanding the behaviour for choosing takeaways and make a
delivery services in the market (Anabaraonye and et.al., 2021). The concepts of having a new
cafe start-ups in the Crouch End, London is the good way to start the business in an effective
way. Beam Coffee is able to understand the demand of their customers. Also, they try to
innovate the herbal coffee in cafe for attracting more market segment.
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The main target market of the cafe is the young people who are diet conscious. In
addition to this, men, women, children, college students and old age people are the targeted
customers of the cafe. Those customers who rise the demand of herbal coffee, varieties of juices,
great breakfast food, hot and soft drinks are most welcome in the cafe (Attri and Bairagi, 2021).
Beam Coffee provided the exploring and friendly nature with an effective atmosphere with free
parking and Wi-Fi facilities. The scale of the new cafe business is small and needed to start cafe
in small scale. The main shareholders of the cafe are their valuable customers, owner, food
suppliers, management team and staff (Cafes & Coffee Shops in the UK - Market Size 2010–
2028, 2021). The concepts of the new cafe is applicable for the long term benefits and beneficial
for aligning the challenge occur during their exhibition is faced by the management team in an
effective manner (Blundel and et.al., 2021).
Industry Analysis (Porter's five forces)
Industry analysis refers to the market identification that is crucial in nature as it is applied
in the different market conditions. The need to work and make significant growth in analysing
the challenge and forecasting the demand and supply of the market to get effective financial
returns. There are more than 18000 coffee selling outlets in UK which has been serving over the
2 Billion coffees to the UK customers (Cafes & Coffee Shops in the UK - Market Size 2010–
2028, 2021). Most of the cafes are focused on the specialised products, theme, different products
and atmosphere within the market. With the help of analysing market in industry, it is considered
that choosing number of branded coffee chains in UK market and applied for the use of market
in an effective manner (Cervantes-Guzmán, 2021). For analysing the industry in market the
Beam Cafe needs to review with porter's five forces. The five stages are explained below:
4
Il
lustration 1: Porter's five forces of Coffee
industry, 2021

 Competitive rivalry or competition: There are extreme competition in the cafe and food
industry. There are different and large number of cafes in UK market which are serving
to customer and earn the billion of profits. The major competitors are Starbucks, cafe
coffee day and Peet's coffee. All of these are related to show the strong competitive
forces which show that Bean Coffee needed to make a strong image in UK market
(Cooke and Xiao, 2021).
 Bargaining power of buyers or customers: There are high dependencies of the coffee
chains for their customers. The preferences of the customers may changes on the basis of
shopping behaviour, brand loyalty, essential success and growth in the market. It is
analyse that Bean Coffee have the very strong power of their customers and mainly they
depend on the word of mouth.
 Bargaining power of suppliers: In the cafe business, there is volatile raw material costs
which is very high as compare to the other raw materials. Most of the cafe businesses are
able to work with high demand market with high prices for the differentiated products
(Cooney, 2021). So it can be analysed that the power of suppliers are very low, as it will
be depends on the producer's help and sell a commodity in the market.
 Threat of substitutes or substitution: Competition in the cafe coffees businesses is very
high as there are different. Different substitutes are soda, juices, water, beer, soft drinks
and many more varieties. Consumption of the other products may decline the demand of
coffee. Furthermore, most of the customer spend their money on the consumption of ice
cream, cigarettes and sweets or food products (Crecente and et.al., 2021). So, it is
analysed that Beam Coffee facing the high power of substitute in market.
 Threat of new entrants or new entry: In the market, it is very easy to open up the new
and small coffee cafe and install the start-up's with an easy access. New coffee shops are
facing the disadvantages in the market due to the cost set by big players in market like
CCS, Starbucks and many more (Dana, 2021). It is concluded that, Beam Coffee face the
moderate force due to the increased speed of expansion for major players (Porter's five
forces of Coffee industry, 2021).
Market Analysis (STP)
Market analysis is helpful for three distinct customer segment in an effective manner. For
make a evaluation of market segment, STP model is used. This model is the acronym of
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segmentation, targeting and positioning is the components which used by the industry for
marketing analysis (Doh, Jauhiainen and Boohene, 2021). This model is helpful for using
appropriate challenges about marketing and customer segments (The segmentation, targeting,
positioning (STP) marketing model, 2021). STP is used to analyse market and work on the major
opportunities for the growth and identification for the new and applied on customers or products
management. The three elements of the model is explained below:
 Segmentation approaches: This includes the different segment and approaches that may
be used for having subdivided into similar characteristics. On the basis of geographic,
London, UK is the main concerned area for Beam Coffee. People of the age group from
15-50 years people are targeted by the cafe. On the other hand, young, college students,
professional workers are the main targetted by the cafe (Faghih and et.al., 2021). In last,
the middle and upper class people are identified and focused for the future growth. This is
helpful for the cafe entrepreneur to manage systematic profile for analysing the situation
in different manner and analyse systematic growth in management process.
 Targeting approaches: It may take the lots of efforts to target a segment effectively in
market. This targeted customers are the one that are related to make a size and potentials
growth. The main target of the cafe owner is the one who loves herbal coffee and healthy
breakfast food on daily basis (Gu and Liu, 2021). In addition to that those who covered
under the middle and higher income profile as it they are able to purchase food and
beverages from the cafe. This is very important for the businesses that it will be effective
6
Illustration 2: The segmentation, targeting, positioning
(STP) marketing model, 2021.

for the growth and make systematic changes in an effective manner. It will be helpful for
the development in the appropriate process for managing data in significant manner.
 Positioning approaches: In this step, there are mainly use adaptive positioning cases in
an effective manner. This is helpful for setting their position and make a healthy
awareness in the different manner. This will happen when it will occupy the need and
make mind for understanding the position and make effective goods and services in
allowing differentiated products from one to another person. With the help of this model
enhancing the position and make a competitive platform for the growth in addressing
positions (Irawan and Valentina, 2021).
With the help of STP analysis, Beam Coffee is able to understand the nature of their
market, and understand the need and preference of their customers. It will be helpful for the
company to work in an appropriate ways and achieve the sustainable activities for attracting
more and more customers.
Marketing Mix
Applying the marketing mix concepts, give a strong marketing section for implementing
the idea of business plan. There are wide range of marketing strategies used by the other cafes,
so for the Beam Coffee shop it is necessary to conduct 4 P's of marketing in an effective manner.
 Products: Herbal coffees, high quality latte, cappuccino with different varieties of
breakfast food are providing to their customer in the respective coffee shop.
 Price: Coffee shop uses the price skimming strategy to introduce their products in the
market and gradually lowering the value to gain the competitors area in the UK business
market.
 Promotion: For promotion different digital marketing strategies and social media
platform are highly used for promoting their coffee products in market. Furthermore,
different discounts and performance abilities are introduced within the market to gain
effective size of market.
 Place: The respective coffee shop is open their food outlet in Crouch End, London for
gaining and attracting more customer segments.
Organisational Analysis (SWOT)
This is analyse with an effective process for generating the growth, personnel and
operational activities to complete the target and get an effective work environment (Jardim,
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Bártolo and Pinho, 2021). With the help of organisational analysis, it is considered that
organisational analysis make benefit for the company to achieve appropriate management
process by determining the growth and weakness to eliminates the issues affect in new business
(SWOT Analysis Example for a Coffee Shop, 2021). This may be include with strength,
weakness, opportunities and threat. Some of them are related to:
 Strength: The main key for understanding the performance value and make systematic
changes are related to make a significant growth in the performance management.
Further, the quality of the coffee, service management, staff politeness and different
factors are become the strength of the Beam Coffee (Kumar and et.al., 2021).
 Weakness: The issue which must be arise while establishing coffee cafe is that the owner
needs to invest on the employee's training, start-up's investment and maintain the
business premises in an appropriate ways. Perhaps, as the owner of the cafe have not such
experience in this field so it will be related to make a systematic challenge for getting a
concern.
 Opportunities: This will be helpful for generating different platform and come across as
per the need of the cafe industry. They are helpful for generating a customer relationship
culture, innovate the culture, build the stronger relationship for the management process
in cafe (Moore, Dau and Mingo, 2021). All of these are helpful for generating the
opportunity in market and make a significant aspects in analysing market segments.
 Threat: The major threat for the cafe is able to analyse the limited profit levels, increase
the suppliers cost and make a more aggressive challenges in determining the competitors
behaviour. All is essential and helpful for analysing the challenge and overcome the
threat of the cafe in market place (Ogundana and et.al., 2021).
Financial feasibilities
The main focus for developing a business plan is helpful for analysing the situation in an
effective manner with the help of financial feasibilities. This process take the access on make a
systematic feasibilities with the help of start-up's cost, cash flow management and operating
expenses. The financial feasibilities of the cafe is helpful for generating the idea and make
systematic return on their investment (Özsungur, 2021). With the help of financial feasibilities,
the growth and progress of Beam Coffee, is shown in the market growth and achieve the
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appropriate segments. It is considered as an effective portfolio that generate the profit that are
affected through company expenses and revenues.
Value Chain
Value chain is referred to the buyers progress and growth to manage the data in an
effective manner and able to provide the growth in the Cafe's products and services. For the
growth of the business, it is important to create their customer in the form of effective
satisfactory performance and make a profit on different analysis (Parente and et.al., 2021). Value
chain is used to analyse business activities and consists multiple stages related to the product life
cycle. One of the main reason for working on value chain method for choosing appropriate
models for different business activities that are associated to converting different business inputs.
Mainly two type of business activities are used which are helpful for cafes, that are associated
with Primary and Support activities (WHAT IS A VALUE CHAIN ANALYSIS? 3 STEPS, 2021).
Primary activities: This is related to manage inputs, converting and achieve outputs for
delivering the outputs for the use of customers. This includes the inbound, operations, outbound,
marketing and services in effective manner.
9
Illustration 3: WHAT IS A VALUE CHAIN ANALYSIS? 3 STEPS,
2021

 Investment activities: This includes the process that make activities on the basis of
investment decisions. This is related to the major activities of portfolio and manager
analytics. The need to make the investment decisions are helpful for completing
significant change and manage different platform in an appropriate manner.
 Operations: It is related to applied sources and ensuring the investment in line
management and achieve the targets with set and forth with different clients, traders and
related to best execution prices. This process help the cafe for converting the raw material
into the finalised products and services in appropriate manner (Pérez Paredes and
Torralba Flores, 2021).
 Marketing and sales: This is associated with the company and achieve effective
customers for making group of markets. The company is needed to make an effective
marketing mix and use competitive strategies that should be helpful for the cafe.
 Service department: After completing the needs of customer, there are different
scenarios which are helpful for considering the best products to their valuable customers.
In Beam Coffee, employees are able to get helpful process for providing their customers
home delivery options or takeaway for gaining the attractive market.
Support activities: These activities are related to most important source of
differentiation and getting advantages in the market. This includes the factors like information
system, R&D, general management departments (Ratten, 2021).
 Attractive infrastructure: This is helpful for make an attractive infrastructure that is
helpful for using different functions and activities in an effective manner. It is considered
that the owner of company choose financing for cafes, related to venture, legal structure
and work management. In the Beam Coffee cafe, the major activities are related to
company's overhead and management process for managing financing and planning
process.
 HRM department: The HR department is used to make recruit, retain and development
of the people to manage approaches in the organisational perspective. The need to make
beneficial activities in cafe for gaining more competitive advantages for the growth of
their employees.
 Procurement: Main activities are related to sourcing of appropriate raw material,
components and different services that are provided by the cafe (Rasyid and Bowen,
10

2021). This department is helpful for use appropriate sources to get raw materials and
manage the appropriate activities by gaining best practices and development in financial
activities. There are different challenges which can be used by the Beam Coffee for
managing their budget and achieve that in an effective manner.
Business Model Canvas
The use of business model canvas is able to analyse systematic changes for understand
the need for business plan. It is analyse for developing different understanding for gain and make
strategies to understand the growth business in the market approaches (Salim and Anis, 2021).
Key Partners:
1. Herbal
Coffee
supplier
2. Coffee
bloggers
3. Delivery
company
Key Activities:
1. Shipping
2. Coffee
sourcing
3. Provide
different
type of
food
services.
Value
Proposition:
1. Try to
meet the
need of
the
customers
in an
effective
manners.
2. Menu
based
products
with
appropriat
e
challenges
.
3. Provide
best
quality
service to
their
Customer
Relationships:
This can be
achieved by
friendly
conversation, up-
close and
personal
atmosphere.
Customer
Segments:
 Young
customers
 College
students
 Office
going
people
Key Resources:
 New
coffee
machines
 New
Furniture
 New
cutlery
Channels
The best way to
reach customers
is through the use
of social media.
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customers.
Cost Structure:
 Includes amount of investment
 renovation cost
 Rebranding cost
 Lease of vans
 Staff salaries
 Other expenses
Revenue Streams:
 Selling with higher amount
 Revenue received through the percentage
of orders received.
 Data harvesting.
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Potentials risk and Mitigation plan
The two main approaches are helpful for the company to work and gain risk analysis that
may be related to qualitative and quantitative risk approaches. Quantitative risk approach is tends
to make more subjective approach and try to measure the both specific risk during the project life
cycle.
With the help of qualitative risk analysis, the overall impact is identified and schedule is
hit by the cafe in UK market (Soleymani and et.al., 2021). With the help of risk assessment
matrix, the method is analyse and communicate the outstanding performance to their
stakeholders.
On the other hand, quantitative risk analysis is helpful for analysing the effect of risk in
the terms of cost, scope, resources and schedule delays. Here, Iayman's model are used for
analysing the situation and make a numerical values for the extant risk on the basis of
13
Illustration 4: What’s the Difference Between Qualitative and Quantitative Risk
Analysis?, 2021

quantifiable data (Zhao, Khan and Khatib, 2021). It will be related to work and make systematic
changes for analysing quantifiable data and cause a delay in measuring quantity and accuracy of
the risk analysis factors. It will be helpful for analysing the quantity, clear up the uncertainties
and set achievable action plan for the future growth and goals.
Risk Mitigation plan Pre action score (Out of
10, where 10 is high risk
and 1 is low)
Post action score
(Out of 10,
where 10 is high
risk and 1 is low)
Use herbal
coffees
Make more herbal products
like coffee, sandwiches and
more for attracting
customers
8 3
Use different Varieties of products in 5 1
14
Illustration 5: What’s the Difference Between Qualitative and
Quantitative Risk Analysis?, 2021

products Cafe's template, digital
media and more are used
for attracting vast number
of customers.
Use digital
technologies
This may complete on the
basis of using appropriate
platform and manage the
data in significant manner.
7 2
Conclusion
From the above business plan it is analysed that the coffee cafe industry is a very
attractive and influence in the market. For the growth of the companies there are different
platform for the already established market such as Starbucks. This is helpful for analysing the
present scenario of the company and make an access in different platform and manage
adaptability in significant manner. With the help of different market, industry, value chain and
risk management plan, the new cafe is able to analyse their marketing needs. However, this make
a significant growth and gain the market segment for the cafe industry.
15

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