Detailed Business Plan: Cafe Coffee Sweet Coffee Shop in London

This assignment presents a detailed business plan for a coffee shop, 'Cafe Coffee Sweet,' proposed to be launched in London. The plan encompasses an executive summary, introduction, and a comprehensive overview of the business, including its mission, vision, and objectives. It outlines the business structure as a sole proprietorship, detailing funding sources such as owner's capital and loans, along with initial fund implementations and projected financial statements for the first year. The plan also explores the products offered, the target market, and the competitive landscape of the coffee industry in England. Furthermore, it delves into marketing, competitive, and personnel strategies, alongside sales and cost analyses, providing insights into proposed sales figures, cost breakdowns, and profit projections. The financial requirements for the business are also presented, alongside methods for raising funds, making this a comprehensive guide for launching a coffee shop business.

Entrepreneurship

Executive summary:
In this assignment I am discussing about a business plan regarding the opening of a business
of coffee shop in London. The B plan is the live sample or presentation of the business we
wanted to do. The various attributes of the plan will be discussed in this assignment i.e.
including summary of the business, products being offered and profit analysis will also be
done on the basis of the cost and revenue estimations used in the assignment. Various sources
for gathering the expected figures have been used to be studied here.

1.Introduction of the Business:
We will be running a coffee shop, named as ‘Cafe Coffee Sweet’, in the city of London in
England. This shop will be offering coffee and related products. The main target of the
business will be the people of all ages as coffee is being loved by all. The business will be
starting from the city of London and soon will be expanding our business in other cities of the
England. This is the significant chance for the organisation to take the business more higher.

Initially we will be targeting 70-100 customers per day and gradually increasing day by
day. The coffee is the daily basic need of people going for evening walks, employees and
workers coming back from work in the evening and students in the colleges and universities.
We will be offering some snacks along with the coffee, so that customers can enjoy the
coffee with complementary items. By the help of some complementary services ‘Cafe Coffee
Sweet’ can attract huge buyers (Council, 2018). As coffee is not the only thing they like and
also, it will not be much of revenue generating alone.
The location chosen being the city of London just because most of the people live in this
city and it is one of the luxuries cities of the world.
2. Mission, vision and objectives of the business:
Mission: We are committed to provide the best quality of coffee products along with related
products and provide the maximum satisfaction to the customers.
Vision: Our vision is to perform each and every task associated with the completion of the
mission of the organization (Jia, 2016).
Objectives:
 Our objective is to provide variety of Coffee flavours with high quality of the product
to our customers.
 ‘Cafe Coffee Sweet’ also aim is to maintained the customer satisfaction in the long
term manner.
3. Business overview:
Form of the business:The business will be the sole proprietorship owned by me only.
However, for the smooth management of the business, I will be appointing a manager that
can be managing my business operations. My business operations will be production of
coffee and tea and other beverages like juice etc (Kim, Li Lu and Yu, 2016). I will be
providing snacks and cakes etc., to the customers.

The various sources of finance are being shown in the following table:
Modes of funds Amount
Owners capital £10,000
Long term loans £35,000
Short term loans £15,000
The above are the proposed sources of funds that can be the part of my financial structure.
This can be the most important factor to raise proper and timely finance so that business can
be started on time.
Initial fund implementations:The other important thing is the proper implementation of
the funds so raised. So we need to identify the key starting areas where we need to spend
our funds. There will be lots of funds implementations initially and most of them are
listed as following:
Budget £
Revenues 30,000
Latte 20,000
Domestic Blend 15,000
Cappuccino 35,000
Flavoured coffe 48,000
Total Revenue 148,000
Expenses
Labor 45000
Utilities 9000
Cleaning supplies 1400
Furniture Equipements 6000
Marketing costs 1000
Coffee cups, Napkins and other essential utilities 50,000
Total Expense 112400
Net revenue 35600
So as per the above data, the expenses for starting the business will be around £12,000. So,
these can be financed through the above stated sources of funds i.e. owner’s capital and bank
loans and short term loans from friends and family.
This will formulates the balance sheet of the business for first year as following:
Particulars Amount

Assets:
Fixed assets
Stock
Cash in hand
Cash at bank
£20,000
£15,000
£5,000
£20,000
Total
Liabilities:
Capital
Long term loans
Short term loans
Total
£60,000
£10,000
£35,000
£15,000
£60,000

Products offered:We will be offering the following products at our store. These may include
not only coffee but some snacks and other beverages too. This is so because customers will
not be visiting our store just for coffee, but they would also like some snacks along with it.
 Coffee
 Tea
 Sandwiches
 Baked breads
 Cakes
 Pastries
 Beverages
In other facilities will be included the halls like family halls for the families coming for
celebrating family functions like birthdays and marriage anniversaries.
Business locations: In London there are different locations that can be obtained by the ‘Cafe
Coffee Sweet’ such as colleges, hotels, schools, nearby airports etc. So we can choose any
one those locations. The proposed locations can be the Big Ben market.
4. Market for the business:
The market of the business of coffee has grown since few years. The growth of the market is
totally concerned with the needs of the customers. The customers now days demands quality
time spending locations where they can relax from their stress.
Segmentation of the market:It refers to segregation of the customer groups on the basis of
nature and age. The customers of the business can be the students and office people who daily
go for colleges and offices (McKeever, 2016).
Following is the proposed number of customers that can visit our shop for the first year:
Customer Group Number of customers
Students
Office employees
Teenagers
Families
Others
Total
15,000
10,000
7,000
2,000
5,000
39,000
Analysis of the industry for the business:
The English coffee market has grown up by 7% in 2017. So the coffee industry in England
has great potential for the business like we want to run over there. the market has been
expanded very much and the sales of coffee and related products has been enhanced now
days.
Customers buying coffee:

The most of the customers visiting the café would be the students and office employees. This
has been projected in the above table too. So the main focus of our business will be to
provide the light snacks to the office employees with coffee as they will be looking for short
meal while being busy in their work (McKeever, 2016).
5. Strategies:
For the smooth running of the business, we need some strategies for various operations of the
business. The main operations and strategies being needed for them have been discussed here in
this assignment as following.
Competitive strategies: This can be the foremost strategy we need and i.e. is competitive strategy.
Under this strategy, we need such type of policies which can provide edge to our business over the
competitors. We can however utilize the following strategies to overcome the competition.

providing product at discount and offers can be given. We can have tie up with some of the nearby
offices. “Cafe Coffee Sweet” having some special features and services that makes the business
unique and differ from the other cafe's. Some of the USP of the business are quality, 24*7 home
delivery services and customer service, weekends discounts and offers on feative seasons. All such
services are the unique package of the ‘Cafe Coffee Sweet’.
Marketing strategies:
a. Advertisement: Advertising is using as a marketing tool of the company that helps to
convey a message to the end consumers. Promotional items such as brochures,
business cards, press kits, websites, facebook, these kinds of medium are belongs.
 Hoardings:Through hoardings, we can list up the main information of opening of a
new café store nearby (McKeever, 2016).
 Newspaper ads: This is the source which can cover longer and wider area and can
attract far away customers too.
 Internet: The other best way of doing advertisment is posting a 5-10 posts of the
products or services in order to generate the customer lead and growth. We can have the
posts over Facebook and Instagram etc. This will be covering wider customer base
over the internet.
b. Distribution: Under the distribution section, we discuss here how we can distribute
our products to the potential customers:
 Firstly we will be serving the walk in customers to our café.
 Secondly we will be contracting the nearby school or college hostels for
students and also the offices for employees.
Personnel strategies: Here we are discussing that how much employees and
workers we require for our business operations. The actual number of employees required
may vary that of proposed here (McKeever, 2016).
Personnel Number
Manager/Cashier 1
Employees 2
Waiters 3
Cleaners 2
Others 1

6. Sales and costs analysis:
This section is discussing the proposed sales business can have during the first year and what
could be the costs of the business for it (McKeever, 2016).
Proposed sales:
Sales Amount
Coffee and Tea £200,000
Pastries £80,000
Cakes £60,000
Cup cakes £50,000
Others £70,000
Total £460,000
Proposed costs:
Costs Amount
Raw material £230,000
Machinery £30,000
Salaries and wages:
 Manager
 Employees
 Waiters
 Cleaners
 Others
£25,000
£30,000 (2 employees)
£20,000 (2 waiters)
£18,000 (2 Cleaners)
£10,000
Café maintenance £10,000
Others £5,000
Total £378,000

Profit analysis:
Sales-Costs= £460,000-£378,000 = £82,000
As we are in the first year of business, so the costs of advertisement, fixed costs are high and
sales are being lower (McKeever, 2016). That is the main reason of low revenues. In the
coming years, these revenues can be enhanced too. That can be done by reducing the costs of
advertisement and fixed costs.
7. Financial requirements:
In order to open up the new start-up “Café Coffee Sweet” in London they need some funds
and financial requirements in order to full fill the business requirements.
Expenses Cost £
Machinery and Equipment £ 10,000
Delivery Vehicles £ 8000
Rent £ 5000
Promotion expenses £ 1500
Total £ 24, 500
In order to estimate the funds which will be required in the business in order to gain the
business objectives. Financial requirements is the most essential resource for the business which
has to be more proper accordingly. For example : Machinery and Equipment and Kitchen
appliances will be cost of £ 10,000 because in machinery “Café Coffee Sweet” need proper kitchen
appliances for example Coffee wave, proper coffee machine, cheese shakers. All such small items
will be included in the machinery equipment. On the other side Delivery vehicles also required to
deliver the Coffee or some other snacks to the customer place in which “Café Coffee Sweet”
require some bikes, cars which will be cost around £ 8000.
8 Raising the funds
Friends & personal Borrowing : To raise funds for the new business is quite challenging
for the owner. “Café Coffee Sweet” can take funds from family friends. This is the most easiest
source to raise funds for starting a new business (Burns and Dewhurst, eds., 2016). Such liabilities
can help instantly for a situation.
Angel Investors : Angel investors are the another most effective source to arrange the
funds. Angel investors are virtually situated from which client can take fund from anywhere. These
liability source required a good concept of business and also take some share of profit of the
business.
Financial Institutions : Most common and highly used source to raise funds that are banks
who provide funds as much client wants on the behalf some security or assets. “Café Coffee Sweet”
can also take this way which is also very secure and safe from others. If “Café Coffee Sweet” will
be taking loan from bank of £ 82000 for 30 years. In order to return back the amount “Café Coffee
Sweet” should need to pay some fix amount with interest rate at monthly basis.
9. Products of the business
Product or services are the main components of each businesses. These are the main source
of income of the business which must be attracted and satisfactory. In terms of food&beverages
customer never compromise with the quality. In order to fulfill their needs and wants “Café Coffee