Blue Star Cafe Business Plan: BIZ301 Organisational Creativity Project

This business plan, created for the BIZ301 course, details the establishment of Blue Star Cafe, a venture in the cafe industry. The plan includes an executive summary, table of contents, and a comprehensive discussion covering market gap analysis, value proposition, marketing and channel strategies, competitive positioning, and financial modeling. It explores market opportunities within the fast-food sector, particularly the growing demand for coffee and related products. The value proposition focuses on product diversification, quality, and online ordering with free delivery. A business canvas model is used to illustrate key partnerships, activities, value propositions, customer relationships, segments, resources, channels, cost structure, and revenue streams. The marketing strategy incorporates print, television, and social media to create brand awareness. Competitive strategies emphasize quality, reasonable pricing, and an extensive product range. The financial modeling includes initial capital, financing, sales, and cost of goods sold projections, along with a break-even analysis. The plan aims to establish a strong market presence and pave the way for future business expansion.

Running head: BUSINESS PLAN
Business Plan
Name of the Student:
Name of the University:
Author’s Note:

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Executive Summary
The main purpose of this assessment is to formulate a venture planning process which
can be sustained for a long term period. The company which is being considered will be
operating in café industry and would be providing different varieties of snacks and drinks
along with the normal beverage offers. The name of the company would be Blue Star Café
and the tagline for the business would be café, snacks and more. The business intends to set
up its own delivery system which would be delivering café and other products within a
particular range. The online orders would be handled through an application which would be
launched by the company and orders can also be placed through website. The analysis would
be showing different trends which are present in the market and also financial viability of the
plan which is formulated by the business.

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Table of Contents
Introduction....................................................................................................................3
Discussion......................................................................................................................4
Analysis on possible market gap/opportunity............................................................4
Value proposition of the innovative product or service.............................................4
Marketing and channel strategy approach..................................................................7
Competitive strategy and positioning.........................................................................8
Financial Modelling.......................................................................................................8
Breakeven Analysis..................................................................................................10
Conclusion....................................................................................................................10
Reference......................................................................................................................11

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Introduction
The main purpose of the assessment is to formulate a business plan showing
establishment of Blue star café which would be serving different types of beverages and also
drinks like shakes, soft drinks and snacks like pizza and burgers. The business would be set
up near a commercial area so that the business can serve office workers as well as domestic
households. The analysis would be showing market gap and opportunities which can be
utilized for enhancing the operations of the business (Jones & Penaluna, 2013). The business
plan would be containing a marketing plan for the café business. The analysis would be
showing a critical analysis of the value which is created by the business and the same would
be demonstrated in the form of business model canvas. This is done to properly promote the
product which is offered by the business. It also discusses the financial analysis as how the
company will able to perform its various activities in the market.
Discussion
Analysis on possible market gap/opportunity
The Fast food service market in Australia is undergoing a growth phase and has
significantly contributed to the revenue which is generated by the economy. The fast food
industry is continuously expanding and different types of fast food along with beverages are
quite in demand. It is therefore the reason that most of the start-up businesses are looking or
new concept so that competitive advantage can be acquired in the operations of the business
(Burns & Dewhurst, 2016). In addition to this, the consumption of coffee and its products are
also quite high in the country. The growth in the consumption of coffee products have
increased over the years and the same is expected to further increase in future and therefore
there is a clear opportunity in the market. This shows that the business of Blue Star café has
an opportunity to establish a business in the market with long run perspective. The business

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also has the opportunity to expand the operations of the business and create a brand name for
itself in the market. As per the growth rate of the fast food industry, it is forecasted to reach
USD 80.7 billion by 2024 (Foodstandards.gov.au. 2019). This reflects significant
opportunities which are present to different upcoming businesses to expand their operations
(Blackburn, Hart & Wainwright, 2013). The business also aims to adopt an innovative
strategy so that more demand is created in the market and the business is able to create a
competitive advantage in the market and become popular in the market.
Value proposition of the innovative product or service
The market of café business is quite competitive and therefore new enterprises needs
to come in with strategies so that the business can survive in the market. In a similar manner,
the business of Blue Star café needs to formulate a strategy to combat the competition and at
the same time attract more customers so that a steady flow of revenue can be expected. The
value proposition analysis is important as this would help the business to understand the
nature of the operations and ensure that the business is able to create a competitive advantage
Osterwalder et al., 2014). The business intends to diversify the products which are being
offered and focus on maintaining standard of quality which is very important as it helps in
differentiating a product (Guţă, 2014). The business would be offering all varieties of coffee
products which are popular in the country and in addition to this, the business would be
providing pizzas, burgers, hotdogs and cakes of different sorts to the customers. The menu
would be attracting the customers considering the different options which the customers
have.
One of the main strategies for the business to differentiate the operations of the
business from other competitors is to launch applications which would give the customers
option to order products from home or office. The delivery costs would be free for the initial

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periods which would further attract more customers to the business and build a brand name in
the market (Massa & Tucci, 2013). The business is basically providing dine in option as well
as home delivery which is appropriate as this would give the business access to different
group of customers and the business can expand their operations once the business is
established in the market (Payne, Frow & Eggert, 2017). In this manner, the business would
be creating value for the customers and also stay unique in terms of its competitors. In order
to properly show value proposition for the company, a business canvas model is presented
below:
Key partners:
 Other social
media
platforms
 Skilled
employees
 Marketers
 Suppliers
Key activities:
 Marketing of
the products
or services
 Offers
different
varieties of
products of
coffee and
different types
of snacks
 Provide
delivery
services to the
customers
 Handle the
application
and receive
feedbacks
from the
customers so
that the
Value
proposition:
 The
busines
s is able
to
create a
demand
while
using
the
online
media
and
cover a
wide
range of
area so
that
maximu
m
demand
Customer
relationship
:
It is required
to satisfy the
business
clients
regarding
their
marketing
and also
require to
satisfy the
clients by
providing
them
customers
feedbacks
Customer
segment:
All
the
business
customers
’ needs to
be provide
best
quality of
products
and also
ensure
that the
business
would be
looking to
expand
the
operations
of the

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services can
be improved
further.
can be
created.
business.
Key resources:
 Skilled
employees
 Online
platforms
 Access to the
market
Channels :
Through
online
platforms
and direct
selling
Cost structure :
Most expensive key resources are accessing
the online platform and maintaining the same
and skilled labor along with systems. In
addition to this, the management also needs
to ,keep an eye on the prices of raw material
of the buiness
Revenue schemes:
The marketing schemes and
features available on the
application for marketing and also
the online medium, would help the
management to enhance the sales
and at the same time also expand
the revenue of the business.
Marketing and channel strategy approach
The marketing strategy for the business is important as this would help the
management to set up the shop in the market. The marketing strategy would aim to ensure
that the business is able to attract the attention of all the customers and create a demand in the
market S(loughter et al., 2016). The management of the company needs to formulate a proper
budget so that proper funds are allocated to the marketing activities which are essential for
the success of the business. The business is planning to use print media and television media
for spreading information regarding the company. The management of Blue Star Company
would be using social media so that the customers are aware of the application which is being

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launched by the café and the benefits of the same would also be specified to the customers. In
addition to this, the management of the company also plans to offer some insights regarding
the food items which are being offered to the customers can be made more interested in their
products.
In order to properly formulate a proper marketing plan, the management of the
company needs to identify the market trends and ensure the business is able to enhance the
profitability of the company. The marketing plan needs to be such that it supports the nature
of operations of the business.
Competitive strategy and positioning
The business needs to seriously consider the competition in the market and
accordingly formulate strategies so that the business is able face competition in the market
appropriately. The competitive strategy would also depend on the targeted market which the
business selects. The management aims to target the office workers and domestic households
and this is the reason that the company has opted to choose a commercial area for setting up
the operations (Tanev, Rasmussen & Hansen, 2016). The online application is also launched
by the business to ensure that domestic households can order its products and the business is
able to cover wide range of area for enhancing the profits of the business.
The competitive strategy for the business would be to focus on quality of products and
ensure that the same is available at a reasonable price. The range of products would also
create a demand in the market and ensure that the customers are interested in the operations
of the business. Further, the online application would allow the management to reach out to
more and more customers and initially the business would not be charging any delivery fees
which would help in creating a favourable name in the market (Kuratko, 2015). The
management of the company anticipates that this would help in creating a niche environment

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for the shop and also pave the way for expansion of the business in future. The initial strategy
for the business would be surviving in the market and ensure that proper strategies are
implemented in the operations of the business.
Financial Modelling
The financial analysis has been well done for the new venture with the help of
financial projections that has been well done for the sum of three for the company. The key
statements that have been well drawn for the company is the income statement, cash flows
statement, balance sheet, sales breakdown and breakeven analysis that has been well done for
the new venture planned out. The initial starting capital with which the company would be
well initiating their business would be in the form of $1 million and the same would be well
borrowed with the help of both equity and debt finance by the company (Chang, 2016).. Key
assets would also be purchased by the company and these would be primarily in the form of
equipment’s, machinery and vehicles.
Financing
It is well estimated that around $575,000 would be contributed by equity and the rest
of $325,000 would be well contributed with the help of debt financing by the company. The
equity finance is well expected to increase as the business operations increase for the
company. The equity financing would be well increased by the company at the rate of 10% in
order to cater the financing needs that would be well required by the company. On the other
hand, borrowed debt would be repaid by the company in the sum of three years so that the
financial risk of the company is well reduced.
Financial Analysis

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Sales & COGS: The sales for the company would be around $475,000 and it is expected to
well increase for the company given at the market penetration rate for the company. The
COGS for the company at the same time would be around 45% of the total sales that will be
made by the company for this three years of trend period that has been analysed.
Market Penetration: The rate at which the business operations of the company would be
increasing will be at a rate of market penetration which would be marking the growth of the
company that is at a rate of 10% on a per annum basis.
Operational Expenses: The key set of operational expenses that the company well expects
to incur would be in the field of salaries, rent, marketing expense, registration, preliminary,
lease payments and others. The operational expenses for the company in the first year would
be totalled to around $167,325 and the rise in these expenses would be well rising at the rate
of 5% which would be well done in order to account for inflation and rising cost.
Breakeven Analysis
The breakeven analysis has been well carried in order to well find out the number of
units that needs to be sold from each of the sections that the company aims to well cater. The
three key section in which the operations of the company is well distributed in the form of
Snacks, Bakery and Beverages. Now an approximate price range for the various goods
offered has been considered while calculating the number of units that needs to be well sold
by the company for the purpose of well covering its fixed costs. The sales price for each of
the sections has been done so that the numbers of units sold could be determined.
Breakeven Analysis
Particulars
S
nacks
B
akery
Be
verages
Fixed Costs (Total Fixed Costs*Revenue % Generated)
8
3,663
5
0,198
33
,465
Revenue Per Unit
$
0.50
$
1.00
$0
.75
Variable Cost Per Unit (Total Revenue Percentage* $ $ $0

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COGS) 0.23 0.45 .34
Units Sold
4
75000
1
42500
12
6667
Breakeven Analysis: Fixed Cost/(Price-Variable
Cost) (In Units)
3
04227
9
1268
81
127
On a conclusive note the financial projections done for the new venture looks
promising where it is well estimated that the company would be generating a sound return on
the capital invested.
Conclusion
The above discussion shows that the management of Blue star café should commence
its operations immediately as the financial forecasting is showing favourable results. This
shows that the business has lot of potential for achieving future growth. The above discussion
shows marketing trends which are favourable for a café business. The above discussion also
shows value proposition for the company and how the business plans to create value for the
customers. The analysis further shows marketing plan which the business is planning to
follow for ensuring that the business is able to create market demand. The analysis further
shows that the business has an innovative approach for combating the competition in the
market and this can also create a competitive advantage for the business. The discussion
finally shows financial forecast for the company. Therefore, on the basis of analysis of the
financial estimates and the market trends, the management of the company needs to
undertake the operations immediately so that the business is make use of the opportunity in
the market.

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Reference
Blackburn, R. A., Hart, M., & Wainwright, T. (2013). Small business performance: business,
strategy and owner‐manager characteristics. Journal of small business and enterprise
development.
Burns, P., & Dewhurst, J. (Eds.). (2016). Small business and entrepreneurship. Macmillan
International Higher Education.
Chang, M. (2016). Entrepreneurship your business plan. IEEE Engineering Management
Review, 44(1), 21-23.
Foodstandards.gov.au. (2019). [online] Available at:
https://www.foodstandards.gov.au/foodsafety/standards/Documents/Mobile%20food
%20businesses.pdf [Accessed 18 Oct. 2019].
Guţă, A.J., (2014). The role and importance of the business plan in starting and running a
business opportunity. Annals of the University of Petroşani. Economics , 14, pp.119-
126.
Jones, C., & Penaluna, A. (2013). Moving beyond the business plan in enterprise
education. Education+ Training, 55(8-9), 804-814.
Kuratko, D. F. (2015). Business plan. Wiley Encyclopedia of Management, 1-4.
Massa, L. & Tucci, C.L., (2013). Business model innovation. The Oxford handbook of
innovation management, 20(18), pp.420-441.
Osterwalder, A., Pigneur, Y., Bernarda, G., & Smith, A. (2014). Value proposition design:
How to create products and services customers want. John Wiley & Sons.

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Payne, A., Frow, P., & Eggert, A. (2017). The customer value proposition: evolution,
development, and application in marketing. Journal of the Academy of Marketing
Science, 45(4), 467-489.
Sloughter, J. M., Isakson, J., Mak, Y. P., Schleicher, A. K., Louie, H., Shields, K., & Salmon,
M. (2016, October). Designing a sustainable business plan for an off-grid energy
kiosk in Chalokwa, Zambia. In 2016 IEEE Global Humanitarian Technology
Conference (GHTC) (pp. 401-405). IEEE.
Tanev, S., Rasmussen, E. S., & Hansen, K. R. (2016). Business plan basics for engineers.
In Start-Up Creation (pp. 21-37). Woodhead Publishing.

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