Coffee Pls Business Plan: An Entrepreneurial Development Report

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ENTREPRENEURSHIP DEVELOPMENT
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Executive summary
The entire study has focused on the business plan of Coffee Pls so that it can earn profit from the
competitive market. The products that will be offered to the customers have been mentioned and
the mission has been set. The mission is to lead the market with their specialised coffee. The
reason of selecting this entrepreneurial idea is that coffee consumption of UK people is high and
as a result, the idea related to opening of coffee shop will be the profitable concept. SWOT
analysis and marketing mix have been conducted for understanding the market position. Budget
has been forecasted for operating business successfully.
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Table of Contents
Introduction......................................................................................................................................4
Section 1: Introduction....................................................................................................................4
Section 2: Opportunity formation....................................................................................................5
Section 3: Opportunity development...............................................................................................6
Section 4: Conclusion....................................................................................................................18
Conclusion.....................................................................................................................................19
Reference list.................................................................................................................................20
Appendix 1: Timeline....................................................................................................................22
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Introduction
A project or company that an entrepreneur originates to validate and effectively develop a
climbable model of business is known as a start-up venture or an entrepreneurial development. In
order to set up a successful business plan an entrepreneur initially develops and organises a
business idea (Land et al., 2019). In this project, such forecasting, planning and organising of a
business plan is evaluated. This research comprises of formation, evaluation and setting up of a
new business venture of coffee Pls. It would include the information about sources of funds,
portfolio of funds, evaluation of the internal business environment, promotional activities,
budgeted forecast, sales forecast and budgeted revenue.
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Section 1: Introduction
How you formed your entrepreneurial idea
The business idea is related to introduce the coffee shop, named Coffee Pls in the market of UK.
It is found that people prefer to have beverages and in 2018, around 95 million cups of coffee
were sold in a day (independent.co.uk, 2018). As coffee consumption in UK is high, it is clear
that the business related to coffee shop will be the profitable idea in the competitive merchandise
market. As people always want to take the new taste, this coffee shop will be able to satisfy the
demand of the customers. Thus, the idea has been formed and effective plan will be developed in
order to achieve success in this field.
Brief idea about the strategy, which is B2C strategy
As per the viewpoint of Iankova et al. (2018), in the B2C strategy (business to customers), the
organisation directly communicates with their customers in order to promote or sell their
products. The company will try to conduct research on the market for knowing the demand and
requirement of the consumers. In case of opening a new coffee shop, this strategy will be the
profitable idea, as it will directly serve to the customers.
Using B2C marketing strategy, they will be able know the demand of consumers and offer the
unique taste of coffee in the market. Moreover, they will be able to modify their foods as per the
customers’ recommendation for increasing their satisfaction rate.
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Section 2: Opportunity formation
Brief description of your entrepreneurial product, service, or organisation process
The coffee shop will offer mainly the various items of coffee and soft drinks. It will also offer
snacks items such as sandwiches and pastries to the customers. The premium offering products
will be Deluxe Coffee Drinks, Gourmet Bagged Coffee, pastries and sandwich variety.
The quality of food will be maintained and the price will be kept affordable. Coffee will be
extracted from the beans and it will be used in order to maintain the aroma of the coffee. Thus, it
will provide a different taste to the customers and the taste of coffee will be differentiating from
the taste of the coffee of existing restaurants. The employees will serve the customers cordially
and they will always try to provide attention on the requirement of the customers.
Therefore, the mission of Coffee Pls is to lead the target market for their unique taste of bagged
coffees. The objectives of this restaurant will be-
 To provide good quality coffee and beverages to the customers
 To offer foods in an affordable price
 To provide effective discounts for holding a position in the target market
An explanation of the process in which you formed your entrepreneurial idea
Food related no such problem is monitored in the market of UK and it is observed that UK
government is strict for following the quality of the food or beverage items. UK people prefer to
lead the luxurious life and around 75.50% people are employed. It denotes that the economic
status of the country is well and people are able to afford their luxury in a convenient manner
(tradingeconomics.com, 2019). On the other hand, 95 million cups of coffee were sold in a day
in UK and it indicates people’s love for coffee (independent.co.uk, 2018). Therefore, by noticing
this opportunity, the idea related to opening the coffee shop occurred. Moreover, tourism
department of UK is strong and in 2018, around 71.7 million trips were found (finder.com,
2018). It is expected that if new taste can be introduced to the customers, the profit from this
business can be raised easily. The company will be able to get local, national as well as
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international customers to their venture. Hence, it can be stated that the idea related to the
opening of coffee shop has been generated by noticing the market status.
Section 3: Opportunity development
Explain how finance leader helps to proposed development of product in market
In order to prepare the new taste of coffee of the Coffee Pls, the development pathway should be
followed as per the suggestion of finance leader. As commented by Walker (2017), effective
business plan can be implemented when the finance department is forecasted in an appropriate
manner. Without sufficient budget, the company will not be able to operate their business
successfully. As per the selection of products and price of the raw materials, the finance leader of
Coffee Pls will convey the budget so that effective funds can be gathered.
Target market
Tourists Students Passing
travellers Local
businesses Local residents
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5
10
15
20
25
30
35
40
36
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29
7
21
Figure 1: Target Customers
(Source: learner)
In order to open the Coffee Pls, customers from various segments such as tourists, students,
local businesses, local residents and passing travellers will be targeted. It is found that people of
all ages prefer to have new taste of beverages and coffee is most common item. Therefore, it is
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expected that among 100 customers, majority will be from tourists (36%) as they prefer to taste
the unique foods of the visited place. 29% of customers will be passing travellers, 7% of
consumers will be from students, 7% of customers will be from the businesses and 21% of local
residents. Thus, total customers’ growth will be 2.8% if the company is able to offer unique taste
of coffee to their consumers.
Value proposition
The value of the coffee shop will be measured by noticing working capability of the employees.
As commented by Gummesson (2017), B2C marketing strategy is the effective one as company
can directly communicate with consumers in order to operate business successfully in the
competitive market. Coffee Pls will follow B2C strategy in order to communicate with
customers directly so that they can update their products as per their requirement. On the other
hand, the restaurant will be set up in the exclusive location where many people go for shopping.
It will be situated in the popular market along with good transportation so that customers do not
face transportation related issue. However, the variety in the food items will be offered so that
people find out new taste from Coffee Pls. Premium Bagged Coffee will attract numerous
customers as it will be provided in an affordable price rate. JIT (Just in Time) approach will be
followed in order to provide fresh foods to the customers.
SWOT analysis
Strength
 The company decides to locate the
coffee shop near any station or
footbridge so that it is able to gain
the foot and car traffic of that area
(Alcacer and Delgado, 2016)
 Footpaths near stations or footpaths of
any crowded location are clearly visible
and easily accessible so Coffee Pls
triggers this strength point.
 The company would face less
Weakness
 The company has decided to establish
the shop with no area to sit around the
shop. This is a negative factor for the
customers as they would not be able to
enjoy their coffee whole heartedly.
 Coffee Pls in the initial year of
establishment may not be able to meet
the high demand or even fail to attract
the customers through its taste and
leave a trail of unsatisfied customers.
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competition if it is located in the area
where there is no other coffee shop in
and around Coffee Pls
(Zarrinbakhsh et al., 2016).
 There is high chance that the forecast of
the market fails resulting to the failure
of the whole business plan of Coffee
Pls.
Opportunities
 The company has enough scope to
expand the business. It can either
introduce new beverages or drinks in its
menu or can think of introducing
different franchise at different location.
 Coffee Pls can come up with different
innovative coffee recipes and
beverages to attract the potential
customers (Phadermrod et al., 2019).
 The company can adopt new
methods of promotion to attract
customers and create new demands
(Phadermrod et al., 2019).
Threats
 As the Brexit issue is around the
corner, many new tax implications
would affect the business (Phadermrod
et al., 2019).
 The emergence of Coffee Pls may
influence other active entrepreneurs to
invest in similar business. As a result
the company would have numerous
competitors.
Table 1: SWOT Analysis
(Source: Learner)
Revenue model
The model of revenue comprises basically of two segments namely coffee beverages and local food. The
company aim at selling innovative coffee brands in 3 types of different cups. The pricing has been
strategised as 12 ounce drip for £2.50 and 20 ounce latte for £5.75. The income would range from
high margin. The local food segment would include food from different local sources. The food
items would comprise of bagels, sandwiches, cookies and pastries.
Ways of development in market (Marketing mix 4ps)
Elements Strategies
Place Coffee Plc has decided to be around the proximity of the underground
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station area. This would enable the shop to attract the crowd of the
travellers. Moreover, the company also desires to locate themselves on
the footpaths near the roadways. This would enable them to attract the
traffic of the common pedestrians and vehicles (Adeleke, 2019).
Promotion The company has planned to distribute few samples for tasting. As it
has high confidence on the taste of the product, the tasting would help
them to create new demand. Further, the company has also strategised
to come out with offers like buy 2 get 1 free on weekends and have
named these offers as happy hours. The company has also decided to
make meal deal offers that would enhance the loyalty of price sensitive
consumers and they would not switch to substitutes (Adeleke, 2019).
Product Coffee Pls is a big brand and needs personalised machines to create a
niche in the food and beverage market of UK. The company has top
coffee brand machines like drip coffee maker and commercial grinder
of coffee to create best product for the target market and consumers.
Moreover, the company has collaborated is associated with top coffee
brand suppliers like Ozone and high quality supplier of pastries like
Bread Ahead Brought Market (Adeleke, 2019).
Price As The company is investing high in product, promotion and
production it has price which is slightly premium to cover the
expenses and arrive at profit to that can help it to incur the cost of
production. The company aims to target the sophisticated consumers.
This would not cause the company to lose out the customers as out of
the total population of UK a large part is literate and sophisticated
(Adeleke, 2019).
Table 2: Marketing Mix
(Source: Learner)
New venture proposition
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Figure 2: Kurtos filled with ice cream
(Source: Taken from presentation)
Though Coffee Pls will provide unique tastes of coffee to the customers, it will develop new
product also. From the research, it is monitored that 20% people are from Romania and they
prefer to have sweets. Keeping in the mind about the demand of the Romanian customers,
“Kurtos”, a sweet cone, will be offered to the customers. It is the traditional cake of Hungary
and Coffee Pls will present it along with ice creams. The price of each scoop of ice cream will be
£3.20 and along with Kurtos, the price will be only £7.00. Thus, Coffee Pls will not only attract
Romanian customers, but also attract other customers who prefer to have the new taste.
Timeline [Refer to appendix 1]
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Business plan
sources of funding
Implementation of entire plan
Opening of the outlet
achieving more than 700 daily
customers
02/01/2020 11/04/2020 20/07/2020 28/10/2020 05/02/2021
Figure 3: Timeline
(Source: learner)
Budget forecast
Budget forecast is the forecast of the cost of production, sales and net profit for any project or
business venture for a given period of time. The forecast generally helps a company or an
enterprise to forecast its expenses and gains beforehand. This ascertainment helps a company to
face cash crunch or properly use the surplus of cash (Zimmerer et al., 2018). The following is the
forecast of the budget of the company.
Cost of Operation Amount
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