Business Plan for Sigma Coffee Shop: A Startup Venture in Sydney, NSW

This report outlines a business plan for Sigma Coffee Shop, a new café venture in Sydney, Australia. It details the coffee market in Sydney, Sigma Coffee's aims, objectives, and resources, including financial strategies involving loans and personal capital. A SWOT analysis identifies strengths like exotic coffee offerings and a strategic location, weaknesses such as limited seating and operating hours, opportunities within Sydney's coffee-loving culture, and threats from larger, lower-priced competitors. The plan emphasizes competitive positioning through unique offerings like instrumental music and complimentary chocolates. It also covers market segmentation (demographics, psychographics, and behavioral aspects), the marketing mix (product, place, price, and promotion using social media and a dedicated website), and recommendations for successful operation, including securing reliable funding and obtaining customer feedback. Desklib provides access to this and many other business plans.

Running head: BUSINESS PLAN FOR SIGMA COFFEE SHOP
Business Plan for Sigma Coffee Shop
Name of the Student
Name of the University
Author Note

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Executive Summary
Coffee is quite a popular beverage in the Australian city of Sydney as a result of which there
are many coffee shops or cafes in operation over here. The average Australian is known to
love coffee quite a lot and is seen to hang out in cafes and bistros that sell numerous varieties
of coffee for long hours in the day, chatting and engaging with professional and personal
acquaintances. This report prepares a business plan that can be used to launch a brand new
café known as Sigma Café in a certain suburb of Sydney. The report concludes with useful
recommendations that ought to be taken into consideration for the successful implementation
of this business plan.

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Table of Contents
Introduction................................................................................................................................4
1. About the Coffee Market in Sydney...................................................................................4
2. About Sigma Coffee...........................................................................................................4
3. Business Resources.............................................................................................................5
4. Business Aims and Objectives............................................................................................5
5. Marketing Plan for Sigma Coffee Shop..............................................................................5
5.1. Micro Environment Analysis......................................................................................5
5.1.1. SWOT Analysis.......................................................................................................5
6. Competitive Positioning.....................................................................................................6
7. Market Segmentation..........................................................................................................7
8. Marketing Mix....................................................................................................................7
9. Recommendations/Conclusion...........................................................................................8
References..................................................................................................................................9

4BUSINESS PLAN FOR SIGMA COFFEE SHOP
Introduction
The love of coffee in the city of Sydney is quite well known, with coffee being
considered the most popular and much loved beverage here. There are many bistros and
coffee shops that the youth as well as the middle aged and old aged people in Sydney like to
visit to relax, unwind and consume hot and cold coffee of different varieties (Tucker, 2017).
This report prepares a business plan for the launch of a new venture known as Sigma Coffee
in the suburbs of Sydney. The report concludes with effective recommendations that ought to
be taken into consideration for the successful launch and continuation of the Sigma Coffee
business in the city of Sydney.
1. About the Coffee Market in Sydney
Coffee is one of the most favored of beverages in the city of Sydney, as much as tea, if
not more. People of all ages, be it people in their teens, people who are working professionals
or people who are tired, all love to drink coffee and spend time at cafes and bistros that serve
interesting and exotic varieties of coffee. The coffee market in Sydney is growing and
developing at a steady pace, with professionals and non professionals buying and consuming
coffee in sufficient quantity, largely because it coffee invigorates their senses and helps them
to be productive throughout the day (Tucker, 2017).
2. About Sigma Coffee
Sigma Coffee is a brand new coffee shop venture in the city of Sydney in Australia that
aims to provide coffee lovers in the city with the option to choose from different varieties of
Ethiopian, Brazilian and Ethiopian coffee. In addition to so many types of exotic coffee,
visitors at this coffee shop will also get to choose from a wide array of savories, both
vegetarian and non vegetarian. The coffee shop is jointly owned by Mark and Judy Spencer, a

5BUSINESS PLAN FOR SIGMA COFFEE SHOP
working couple in Sydney whose dream it has always been to establish a café in the city of
Sydney.
3. Business Resources
The financial resources for this business will be derived from loans that are applied for by the
business owners, as well as a certain amount of personal capital that both owners are willing
to invest, in the business (Blackwell, 2017).
4. Business Aims and Objectives
 To become a leading café in the city of Sydney within the first year of its operation
 To cater to the interests and requirements of coffee lovers of all ages
 To incur a profit margin of fifty percent at least within the first six months of
operation (Burns & Dewhurst, 2016).
5. Marketing Plan for Sigma Coffee Shop
5.1. Micro Environment Analysis
5.1.1. SWOT Analysis
Strengths – Sigma Café is going to serve its target audience in Sydney with different types of
exotic coffee to choose from, which is bound to catch their interest and attention. Sigma Café
is serviced by a loyal and dedicated team of ten members who will work night and day to
make sure that the coffee venture is a success. The Sigma Café will be situated in a strategic
part of Sydney where it can be accessed easily by all segments of the city’s population (Hopp
& Greene, 2018).

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Weaknesses – Sigma Café will not have substantive seating arrangements and will be able to
house only fifteen people within the café premises at a time. It will thus not be in a position to
accommodate large sections of its target audience. Sigma Café will not be able to run
operations for long hours in the day due to the fact that it is serviced by only ten staff
members. It will remain open only from three in the afternoon to eight in the evening (Hopp
& Greene, 2018).
Opportunities – The love for coffee among people living in Sydney implies that the Sigma
Café is going to get plenty of opportunity to grow and expand (Hopp et al., 2018).
Threats – Since Sigma Café is a small business and since it also provides its customers only
with exotic varieties of coffee like Brazilian coffee, Indonesian coffee and Ethiopian coffee,
it will not be able to make its coffee available at too low a price. It may lose out customers
therefore to many of the large scale cafes and bistros in Sydney that sell coffee and savories
for lower prices (Hopp et al., 2018).
6. Competitive Positioning
On the basis of the theory of competitive advantage, the owners of Sigma Café will
make sure that this new business stands out from other coffee shops in the city of Sydney in a
number of different ways. Sigma Café is the only café in Sydney that will play western
instrumental music within the café premises in its hours of operation, something that is bound
to soothe and relax visitors to the café. Sigma Café will also make sure to serve
complimentary chocolates with the coffee drinks that are expensively priced, pleasing
customers more in the process (McKeever, 2016).

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7. Market Segmentation
Demographics – The Sigma Café will have a target audience that is comprised of all coffee
lovers in the city of Sydney, be it young people, old people, middle aged people, people who
are working or people who are still in their student years (McKenzie, 2015).
Psychographics – The Sigma Café will cater to people who are fond of drinking coffee and
who are fond of spending their free time or leisure at coffee shops, chatting with their friends
and associates and catching up on things (McKenzie, 2015).
Behavioral – Sigma Café will cater to a target audience that is fond of being present
physically in a coffee shop for the consumption of this beverage rather than ordering for it
online through the use of an app (McKeever, 2016).
8. Marketing Mix
Product – The products that are being marketed are the exotic varieties of coffee beverages
such as Ethiopian, Brazilian and Indonesian coffee in addition to mouth watering savories at
the Sigma Café in Sydney (Scarborough, 2016).
Place – The Sigma Café will be opened in a strategic part of the city of Sydney, preferably in
a Sydney suburb, where it will be far from the madding crowd but where people from main
town Sydney can travel to and from without any hassle (Scarborough, 2016).
Price – The Sigma Café will try to keep its coffee drinks and savories very competitively
priced in order to capture the interest and attention of its target audience. It will keep a coffee
drink priced at an average of $ 20, which may be more than what other cafes charge for a
single cup of coffee in Sydney, which will still draw the interest of the target audience given
that it is exotic coffee that the Sigma Café is offering (McKeever, 2016).

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Promotion – The Sigma Café will make extensive use of social media platforms like Twitter,
Instagram as well as Facebook to promote its new coffee venture. Leaflets and pamphlets
about this new coffee shop will also be circulated at shopping malls and super markets in
downtown Sydney. The Sigma Café will also be serviced by its very own website that people
can visit to know more about the people behind this new venture, the beverages and savories
being offered here, the prices at which these are being offered and the location of the café
(McKeever, 2016).
9. Recommendations/Conclusion
Sigma Café should take the following factors into consideration in order to operate
successfully in the city of Sydney –
 It should procure the resources that it needs to set up its business by approaching
lenders and financial institutions in the city that are of repute instead of reaching out
to small scale lenders. Only then can it bank reliable source of funds over the long
term that will help it to run its business successfully (McKenzie, 2015).
 The Sigma Café should obtain feedback from its within three months of the launch of
its operations to gain an idea of the areas in which services can be improved in order
to draw a wider clientele (Blackwell, 2017).

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References
Blackwell, E. (2017). How to prepare a business plan: your guide to creating an excellent
strategy, forecasting your finances and producing a persuasive plan. Kogan Page
Publishers.
Burns, P., & Dewhurst, J. (Eds.). (2016). Small business and entrepreneurship. Macmillan
International Higher Education
Hopp, C., & Greene, F. J. (2018). In pursuit of time: Business plan sequencing, duration and
intraentrainment effects on new venture viability. Journal of Management
Studies, 55(2), 320-351.
Hopp, C., Greene, F. J., Honig, B., Karlsson, T., & Samuelsson, M. (2018). Revisiting the
influence of institutional forces on the written business plan: a replication
study. Management Review Quarterly, 68(4), 361-398.
McKeever, M. (2016). How to write a business plan. Nolo.
McKenzie, D. (2015). Identifying and spurring high-growth entrepreneurship: experimental
evidence from a business plan competition. The World Bank.
Scarborough, N. M. (2016). Essentials of entrepreneurship and small business management.
Pearson.
Tucker, C. M. (2017). Coffee culture: Local experiences, global connections. Routledge.