Business Plan: Cafepod's Herbal Coffee and Financial Analysis

This report provides a comprehensive business plan for Cafepod, a craft coffee business, focusing on the introduction of herbal coffee. It details the company's vision, mission, and objectives, alongside a thorough examination of its business strategy, legal status, operations, marketing, and financial aspects. The report includes a critical analysis of the interconnectedness of these components and their impact on the product launch. Projected financial statements for three years are presented, offering insights into sales, expenses, and profitability. Furthermore, the report addresses potential investment opportunities, challenges faced by the business, associated risks, and employs SWOT and PESTLE analyses to evaluate the internal and external environments. The analysis supports the projected performance and viability of the business plan, offering recommendations for successful implementation.

Enterprise

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Business Details......................................................................................................................4
Business Strategy:..................................................................................................................5
Legal Status:...........................................................................................................................5
Operations:.............................................................................................................................5
Marketing:..............................................................................................................................5
Finance:..................................................................................................................................6
Critical Analysis:....................................................................................................................6
Projected Financial Statements...............................................................................................7
Investment Potential:..............................................................................................................9
Issues Faced By Business:....................................................................................................10
Risk Associated With Business:...........................................................................................10
SWOT analysis:....................................................................................................................11
Pestle Analysis:....................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................13

INTRODUCTION
Enterprise is a term used to describe a venture or project undertaken for gain. It is another
word for a company or for profit business. Business Plan defines as the process of developing a
idea related with provisions of products and services to create value for the individuals. In this
report, Cafepod will be taken into consideration as it is introducing the herbal coffee in the
market. Business plan will be produced by considering business strategy, legal status, marketing,
operations and finance. In addition to this, the main components of the business and how they
interrelate will be critically analysed (Al-Gindy and et.al., 2022). Apart from this, the bakery
shop will demonstrate the effective small business planning and provide befitting reasoning and
evidence in order to support the projected performance and viability of business plan. A critically
evaluation will be done on the potential issues which may impact on the success of business
enterprise.
MAIN BODY
Business Details
Cafepod is a small medium enterprise and is an independent craft coffee business which
was established in 2011. its objective is to provide good quality coffee to adventurous coffee
drinkers as they can enjoy at home also. The company is introducing its new product that is
herbal coffee. Among individual this is highly emerging trend which is very effective and
Cafepod can increase the market share and profitability.
Vision:
The vision of the Cafepod Craft Coffee Co. is to establish the core values, operate
ethically and increase the customer satisfaction by providing good quality coffee (Boschmans
and Pissareva, 2018). Its aim is to gain the customer engagement and by fulfilling their
requirements in order to attain the appreciation. By providing the finest services and new product
herbal coffee in the market can build its brand image.
Mission and Objectives:
The objective of the company is to obtain the significant level of development and
growth by satisfying the customers at optimum level. The mission of the company is to serve the
consumer best quality of coffee and introduction of its new product that is herbal coffee.

Business Strategy:
It is a clear set of action, goals and plans which outlines how a business will compete in
markets with various products. Cafepod craft Coffee Co. in order to attract the customers it uses
various business strategies which helps the company to increase the market share, profitability
and builds brand image in the market.
Offer Wi-Fi At Cafe: In order to attract new customers and existing the company
provides free Wi-Fi facility at the cafe (Cardoni and et.al., 2018). Which attract them as now a
days new generation prefer to go to places and enjoy where there is free Wi-Fi facility. To people
these are considered as a mental benefits who drive or walk by coffee shop.
Special Discount: It is one of the effective business strategy used by the Cafepod to
attract and make sale of its new product that is herbal coffee. It offers attractive discounts on the
purchase of additional new product. If the once the customers get the taste of new herbal coffee
then the company can increase its sale of herbal coffee.
Legal Status:
The Cafepod Craft Coffee Co. is a private limited company which is an independent craft
coffee business and was started in 2011.
Operations:
It was founded by two entrepreneurs Brent Hadfield and Peter Grainger. It has its
operations in London, UK with 11-50 employees working with them (Eller and et.al., 2020).
Marketing:
While introducing a new product in the market that is herbal coffee. It is very important
for the company to do marketing of its products in order to make the sales and increase the
profitability.
Social Media: The company will make the effective use of social media in order to do
marketing of its new product in the market. Whose purpose is to promote their product and
market its brand effectively and efficiently. The company has already account on social media
such as Facebook, Instagram, Twitter etc. Where they post pictures and videos in an attractive in
order to influence them to buy the products. It is important to promote its new product that is
herbal coffee where they can give details and importance to large number of people at the same
time.

SEO Website Marketing: The Cafepod co. will make an effective use by investing funds
in maintaining constructive SEO presence on the search engines such as bing and google. It is
very helpful in the marketing of new product that is herbal coffee in the market. It will help the
company in combining its marketing as when the individual will search for the coffee shop in
London its name will show in the top of the options (Galvão, Marques and Ferreira, 2020).
Which is very important for the company to use the SEO website marketing. As the today's
generation makes the good use of the technology and websites and google the consumers search
various things to explore and have fun with it.
Word Of Mouth And Referrals: It will increase the awareness among the public by
spreading the word among family, friends and other acquaintances. It is very effective but not the
proper technique and helps the company in promoting the brand and new product in the market
effectively and appropriately. It will promote its brand and product to their visitors in order to
refer their brand to family and friends which will help the company in increasing customer base.
It helps to build the reputation and brand image among the public and consumers as the company
provides good quality coffee products and now introducing its new product that is herbal coffee
among its consumers.
Finance:
It is one of the important part for the company to introduce its new product in the market
because it is the means of turning vision, mission, plans and objectives into reality. Without the
effective strategic financial planning the business will not able to attain its objectives or goals
successfully in the long run (Hassan And et.al., 2018). The Cafepod Company is seeking to
utilise its cash $50,000 to introduce its new product that is herbal coffee in the market. The
breakdown of cost is stated below:
 Cost of Raw Material such as herbs - $30,000.
 cost of Labour in making herbal coffee - $20,000.
Critical Analysis:
By the help all these business strategies, operations, legal status, marketing and finance
the company can easily launch its new product that is herbal coffee in the market effectively and
efficiently. Which is an important part for the business and all these are inter related with each
other for effective working of the organisation. By the help of all these business plan the

Cafepod can able to launch product without the it is quite difficult and company can face many
issues in launching new product herbal coffee at the large scale.
Projected Financial Statements
PROFIT & LOSS FORECAST FOR THREE YEARS
Particulars January February March
Apri
l May June
Sales \ Income 3000 3700 4350 4400 5678 5982
Less Materials Cost 550 575 575 425 600 625
Less Direct Wages 800 850 875 900 925 1125
GROSS PROFIT 1650 2275 2900 3075 4153 4232
Operating Expenses
Staff Salaries 500 500 500 500 500 500
Rent & Rates 215 215 215 215 215 215
Gas & Electricity 100 100 100 100 100 100
Insurances 700 700 700 700 700 700
Postage & Stationery 100 101 101 100 110 102
Repairs & Maintenance 25 23 25 14 25 26
Travelling & Motor
Expenses 100 100 100 100 100 100
Loan Installment 1200 1200 1200 1200 1200 1200
Telephone Expenses 51 52 51 52 53 52
Professional Fees 225 226 224 225 226 214
Advertising & Promotions 225 225 225 225 225 225
Miscellaneous Expenses 24 26 25 26 25 21
TOTAL EXPENSES £ 3465 3468 3466 3457 3479 3455

Net Profit (Loss) Before Tax -1815 -1193 -566 -382 674 777
Particulars
Jul
y
Augu
st
Septemb
er
Octob
er
Novemb
er
Decemb
er
Sales \ Income
621
0 6598 6425 6526 5784 6985
Less Materials Cost 615 675 625 635 635 675
Less Direct Wages
125
0 1300 1450 1770 1100 1300
GROSS PROFIT
434
5 4623 4350 4121 4049 5010
Operating Expenses
Staff Salaries 500 500 500 500 500 500
Rent & Rates 215 215 215 215 215 215
Gas & Electricity 100 100 100 100 100 100
Insurances 700 700 700 700 700 700
Postage & Stationery 103 101 111 121 120 121
Repairs & Maintenance 42 62 12 62 41 245
Travelling & Motor
Expenses 100 100 100 100 100 100
Loan Installment
120
0 1200 1200 1200 1200 1200
Telephone Expenses 55 50 51 52 51 52
Professional Fees 236 214 252 262 241 201
Advertising &
Promotions 225 225 225 225 225 225
Miscellaneous Expenses 21 24 29 28 27 28
TOTAL EXPENSES £
349
7 3491 3495 3565 3520 3687
Net Profit (Loss) Before
Tax 848 1132 855 556 529 1323
Total of Years:
Particulars Total of year 1
Year
2 Year 3
Sales \ Income 65638 60000 65000
Less Materials Cost 7210 8250 9750
Less Direct Wages 13645 14000 15250

GROSS PROFIT 44783 87916 173557
Operating Expenses
Staff Salaries 6000 6250 6750
Rent & Rates 2580 2750 3150
Gas & Electricity 1200 1250 1250
Insurances 8400 8550 8800
Postage & Stationery 1291 1299 1320
Repairs & Maintenance 602 627 628
Travelling & Motor
Expenses 1200 1200 1200
Loan Installment 14400 14400 14400
Telephone Expenses 622 636 654
Professional Fees 2746 2789 2985
Advertising & Promotions 2700 2700 2700
Miscellaneous Expenses 304 319 326
TOTAL EXPENSES £ 42045 80625 157782
Net Profit (Loss) Before Tax 2738 7291 15775
Sales Forecast for Year 1 ( Figures in Pound)
January 3000
February 3700
March 4350
April 4400
May 5678
June 5982
July 6210
August 6598
Septemb
er 6425
October 6526
Novembe
r 5784
Decembe
r 6985
Note: Projected Cash flow statement in excel.
Investment Potential:
In order to launch the new herbal coffee product in the market the company need $50,000
investment for selling and making of product. The company thinks it should get the return of its

investment in next 6 months to 1 year. So that they can make the best use of their investment and
earn the maximum profit effectively and efficiently (Kolb, 2020).
Issues Faced By Business:
There are various issues which are faced by business in order to launch its new variety of
product that is herbal coffee in the market effectively. Some of them are as follows:
Technology: The Cafepod faces the issue of technology in making its new herbal coffee
product. In installing the new technology such as new machines which are very costly and not
easily available in the market. The company can solve while remaining flexible it need to
develop a long term technology strategy.
Maintaining Reputation: The company can face the issue to maintain the reputation of
the company in the market appropriately. If the public or consumer don't like the taste of new
herbal coffee than they can raise the voice so much more loudly and publicly than ever before.
Risk Associated With Business:
It helps the Cafepod craft Coffee Co. in preparing against the events which is uncertain as
it can result in disturbing the operations of the entire business (Kriz and Welch, 2018). The main
objectives of the business plan is to get well prepared in the advanced and from the unwanted
happenings carry out the safety measures. It is important for the company in order to avoid the
uncertainty and risk in advance and launch its product effectively and efficiently. There are
various types of risks which is associated with business such as.
Operational Risk: It can happen externally, internally or involve a combination of all
these factors. It can be in the form of unexpected events such as could be fire or natural disaster
which can even destroy the physical business. Whether a process failure or people these risks can
adversely impact on business in terms of time, reputation and money.
Fluctuation in Prices: In context to Cafepod Craft Coffee Co. business the fluctuation in
prices for its product seasonally or non seasonally. It can be in the form of prices of raw material,
cost of labour, electricity etc. As these prices fluctuates any time and can affect the business and
especially the new product that is herbal coffee.
Tough Competition: With continuous increasing the demand of natural, hygiene and
health conscious products. The competition becomes more and more tough in the market. It is
the risk for the company to stay competitive from its competitors in the market regarding the sale

and price effectively (Law, 2019). It is important for the company to make its herbal coffee
innovatively in the market.
Limited growth opportunities: The company can faces the limited growth opportunities
as some of the customers are not willing to pay the premium prices of its herbal coffee products.
It is basic risk that the company Cafepod Craft Coffee can face. As the consumer has very wide
range of options available in the market and somehow they can witch to other options easily.
SWOT analysis:
It is the framework used in order to analyse the factors of business environment internally
that affect the particular industry and the company to work on its strength, weakness, opportunity
or threats.
Strengths:
 Good Quality Product At Affordable Price: It is the great strength for the company as
they provide good quality products to its existing and new customers in the market at an
affordable prices which helps the company to increase its sales and profit (Lethbridge and
Alghamdi, 2019).
Weaknesses:
 Less market Share: It is major weakness for the Cafepod Company as it is a small
medium enterprise and it has the less market share in comparison to its competitors or
other big coffee cafes.
Opportunities:
 Introduce New Herbal Coffee: The company Cafepod finds the great opportunity to
introduce its new product that is herbal coffee in the market. It is because the demand for
healthy and natural products has increased rapidly in the market by which the company
can increase the sales and profitability effectively and efficiently.
Threats:
 Competition: The Cafepod company can face the threat of huge competition as there are
many big companies are well established in the market. Many companies in this
industries sell their product at low prices and already have huge market share which can
affect the Cafepod Co. and its new herbal coffee product.

Pestle Analysis:
It is a framework in order to analyse the factors of business environment externally affect
a particular industry and it helps the company in evaluating the various consideration which a
business has to focus upon (Molina and et.al., 2021). The Cafepod Craft Coffee Co. pestle
analysis has been discussed below:
Political Factors: The factor is associated with government interruptions and regulations
that can affect the operations of the business in an indirect or direct manner. In context to
Cafepod Company, the trade barriers, heavy tax duties and tariffs which may impact on the
decision making in order to introduce herbal coffee in the market effectively.
Economic Factors: The growth in economy opens the opportunity for the company to
increase its revenue and expand its market. In order to introduce new product herbal coffee in the
market the disposable income level of customer and inflation rates are the relevant economic
factors which are need to considered by the company.
Social factors: This factor is related to the preference of the consumers and demographic
trends that determines the operations and decisions of the company in many ways. As the
consumer preference changes rapidly and people are becoming more health conscious which is
likely to increase the demand for herbal coffee and decrease the consumption of unhealthy coffee
which include a lot of caffeine in them (Reascos Paredes and Carvalho, 2019).
Technological Factors: These factors are associated with changes in techniques and
technical advancements which influences the company in order to get the production done for the
company. In context to Cafepod Craft Coffee Co., the technology is highly needed to make the
coffee and making of its new product that is herbal coffee. In order to increase the market share
and profitability the company also uses digital technology for marketing of its products
effectively and appropriately
Legal Factors: The legal factors are associated with legal requirements and compliance
to avoid any trouble in future. In context to Cafepod coffee co., it is necessary to work under
legal framework which are set by the judicial bodies and government of the country.
Furthermore to this, protecting intellectual property rights is the other legal factor which
influence the business enterprise.
Environmental Factors: It is the big responsibility for the company in order to provide
goods and services that are sustainable in one or another way (Silva and et.al., 2020). In context

to Cafepod Craft Coffee Company, they decided to save the environment by the help of recycling
of waste materials and serve the products in a natural or biodegradable way rather than make the
use of plastics products which are harmful for the environment also.
CONCLUSION
From the above report it has been concluded that enterprise is an another term used for a
company or for profit business. For the individuals the Business Plan defines as the process of
developing a idea related with provisions of products and services to create value. In the report,
the new business plan has been made for Cafepod Craft Coffee Co. that is introduction of its
product Herbal Coffee in the market effectively and efficiently (Westrup, 2019). In addition to
this, the justification has been given which is supported by both theoretical and contextual
sources of business strategy, operations, legal status, marketing and finance. Critically analysis
has been done of these main components of the business and how they interrelate. Apart from
this, the effective planning for business has been demonstrated through the presentation of a
viable business idea and supported by financial analysis such as capital investment, expenditure,
cash flow forecast demonstrating break-even, costing, projected sales and a profits over a three
year period. Further more to this, the risk and issues associated with business and investment
potential has been clearly considered of the business plan and external and internal factors has
been considered through SWOT or Pestle.