Detailed Report: New Venture Development of 24*7 Coffee Cafe Business

This report provides a comprehensive analysis of a new coffee shop venture, focusing on the application of the CANVAS model. The report details various aspects of the business, including customer segmentation, value proposition (emphasizing hygiene and varied offerings), distribution channels (physical outlets and online delivery), customer relationships (internet and social media engagement), revenue streams (personal finance and bank loans), key resources (physical, financial, and human), key activities (marketing, production, and sales), key partnerships (suppliers and retailers), and cost structure (direct and indirect costs). The report aims to create a competitive edge through unique services and effective marketing strategies, ensuring long-term survival and profitability. The report also includes a cash flow statement to monitor financial performance.

NEW VENTURE DEVELOPMENT

TABLE OF CONTENTS
introduction......................................................................................................................................3
ASSESSMENT 2 ............................................................................................................................3
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Business plan refers to the most important procedure under which corporation decide
regarding the resources required and its support for completing all business related activities.
Present report is based on starting new coffee shop which will be providing varied products and
services. In this regard, overview of business plan has been prepared and planned so that
objectives of the business can be achieved effective. Furthermore, CANVAS model has been
explained to explain key activities of the firm.
ASSESSMENT 2
This assessment covers detail information regarding the product and services along with
its distribution channel and all other aspects. This would be appropriate for management of firm
to create its strong position with increased rate of return. All elements of CANVAS model are
explained as follows- Customer segmentation-The customer segmentation divides is the procedure to divide
overall buyers groups. The target customer covers basis focus on working professionals
and youth. Basically their need related to less time and hygiene food is considered.
Owing to this, product procedure has been selected accordingly whereby it becomes easy
to target the buyers effective and raise their attention towards products and services
which are being offered by 24*7 Coffee cafe. This proves to be effective for company to
increase customer base. Further, perfect competition market is selected for offering
varied range of products and services in the marketplace (Yu and Wiklund, 2015). This
shows that customer segmentation is decided effectively and accordingly competitive
edge of the business is created. In addition to this, business can put efforts to bring
innovation in the market so that customers can be retained for longer time. However, this
strategy is adopted by using more suitable pricing strategy and grabbing attention of
buyers towards unique and new services offered by the business. This reflects that
customer segmentation has been decided by using appropriate marketing strategy along
with association of unique concept related to hygiene because obesity related issues are
shifting focus of youth towards hygienic food. It has already been said that all customers
are targeted by the business. Hence, it becomes important to shed light on specific

expectations of buyers and met the same by using appropriate strategy. Thus,
segmentation has been done by focusing customer needs and type of market under which
business will be operate. Value proposition-There are several coffee shops in London but no specific focus is
given for hygiene and varied products and services in accordance with customers.
However, the present 24*7 Coffee cafe is offering bulk of benefits together. For this
purpose, features of current business is additional facilities such as Wi-fi and calm
environment which grab attention of professionals also for their meeting purpose (Finch,
2016). At the same time, focus is laid on different kind of food such as vegetable, non-
vegetable and different drinks. This in turn support business to create its unique identify
and expand its venture at global level in future time span. Not only this but, uniqueness of
business is that it is targeting to all age people with specific need related to hygienic food,
time issues and delivery at home and professionals meeting in calm environment. This in
turn firm can effectively increase overall rate of return and deliver good quality of
services to large number of buyers. Furthermore, 24*7 Coffee cafe is unique among its
competitors because it offers several benefit in single service. It can be considered as the
key destination for attraction or satisfaction of buyers who prefer to have quality food.
So, value proposition is hygiene concept and additional services which offer complete
quality food. Distribution channels-Distribution channels are considered as the most important
procedure under which management of the firm tends to deliver its end product among
users. However, 24*7 Coffee cafe has its physical outlet to give rich experience for new
users related to quality services (Schaper and et. al., 2014). This unique concept of
business attract more health conscious people along with professionals and youth who
want to spend their quality time at perfect place. The most important aspect is related to
online delivery whereby firm will have its own application which can be uploaded on
mobile phone of users. This application make it possible to ping 24*7 Coffee cafe
regarding any kind of requirement. Accordingly personnel of firm define or design
attractive plan to deliver food in relatively less time span. Apart from this, competent and
skilled personnel will be hired in the outlet who can easily understand the requirement of

buyers and provide them product and services accordingly. They key personnel will be
highly qualified who can also review instant feedback of customers and make them feel
comfortable by resolving their queries. However, only two mode of delivery has been
selected so as to ensure operation of firm in a cost effective manner. This facilitates to
increase its profitability and reduce the cost of production to a great extent. Customer relationships-Customer relationship is another important element of CANVAS
model under which business covers all marketing related activities and promotion of the
products and services. It is the common fact that customer relationship cannot be
developed without interacting with them. For this purpose, 24*7 Coffee cafe will use
internet as the most effective technologies to keep customers informed about special
offers and other related information (Rutz, Tappel and Zirger, 2014). Furthermore, social
media page will also be designed and buyers will be attracted in the same manner. Apart
from this, specific site of business will also be updated whereby it becomes easy to
approach customers to get their review. At the same time, after online delivery of food
product a small and interesting survey can be conducted by firm to ask review from its
consumers. In this manner, lacking areas will be explored and buyers will experience
very good things or services from 24*7 Coffee cafe. Furthermore, distinct application of
corporation of firm is also effective through which it can be in contact with potential
buyers and provide them timely information regarding any kind of specific discount.
However, regulator customers can get the club card and get discount on purchase of
specific products and services. All these strategies are helpful to retain buyers and build
good relationship with firm. Revenue streams-Revenue streams is another important element of CANVAS model
which reflects that what will be the sources of finance for current business and how firm
will increase its rate of return. Here, 24*7 Coffee cafe will access personal finance and
bank loan so as to access cost effective sources and meet the expectations of all related
buyers in an effectual manner. Furthermore, revenue streams is promoted by offering
specific discount on offers products and services so that customer base can be increased
for particular time span. It aids to increase sales turnover and support firm to meet its
long as well as short term objectives (Blank, 2013). At the same time, leasing companies

might approached to access machinery used to produce products and services of 24*7
Coffee cafe. It would reduce initial burden of finance and enable firm to approach
potential buyers effectively in relatively less time span. Furthermore, sales turnover is
increased by adopting suitable marketing strategies and gaining popularity in the market.
It is the main reason that cost effective mode of communication is implemented and in
the same manner firm can effectively build competitive edge in the marketplace. Apart
from this, cost plus mark up price strategy would be adopted so that directly management
target to recover the cost of production and increase rate of return in the marketplace. Key resources-It is common fact that business need to ensure inclusion of varied
resources for production of tea and other eatables. These can be done with the help of
physical, financial and human resources. All these resources facilitate firm to produce
good quality of products and services in the marketplace. Further, competent and skilled
employees are recruited whereby it becomes easy to approach buyers effectively. Apart
from this, financial sources such as bank loan and personal finance is considered to start
the venture. In addition to this, all other facilities and machinery as well a furniture and
land will be purchased on the basis of specific plan (Brinckmann and Kim, 2015). Hence,
all these sources are helpful to start the venture in relatively less time span and meet the
expectations of all related buyers. Furthermore, all these key resources contribute towards
successful operation of firm through which company can reach to its break even point as
soon as possible. It can be critically evaluated that employees associated with the
business must be skilled and highly competent. This aspect contribute towards
organizational success at the global marketplace. It enables business to meet expectations
of all related consumers and accordingly retain all stakeholders such as investors.
Therefore, key resources are associated for success of 24*7 Coffee cafe and long run
survival with increased rate of return. Key activities-There are different activities performed by 24*7 Coffee cafe to retain
buyers and interact with them. At this juncture, marketing, production and sales related
activities are performed by key personnel. At the same time, activities related to
motivation and satisfaction of employees is prominent which is made possible by offering
them reward in financial and non-financial aspects both. At this juncture, marketing

activities are completed by taking into account internet (Ward, 2016). In this manner,
internet marketing proves to be effective to approach huge customers and create sense of
achievement among them by purchasing different products and services. However,
unique page of social media is created wherein customers review the same and like its
appropriate updations. In addition to this, sales related activities are supported by
marketing only. However, employees motivation is done with the help of suitable work
environment and providing them immense support to carry out given task on right time.
Apart from this, production procedure is the main aspect whereby firm start operating its
business in accordance with set procedure so that customers can be provided the ordered
product in less time. Key partnership-The key partnership of firm will be with farmers who provide coffee
beans and other providing fresh vegetables and meat etc. At the same time, retail stores
like Tesco and Sainsbury can be approached by 24*7 Coffee cafe to purchase raw
material and semi finished goods. However, other related small kiosk can be contacted to
offer food in bulk. Therefore, all these key partners support business to approach
consumers and offer them products as well as services on right time. Apart from this, van
can be contacted for online delivery of food to end users (Jones and Penaluna, 2013).
Hence, it is also the effective aspect for attracting more buyers and ensure success of the
business in the marketplace with the increased rate of return. Furthermore, key partners
forms their contract and accordingly enter into legal relationship to offer their product
and services for specific time.
 Cost structure-The cost structure of the business will be additional of direct and indirect
cost. This would be done by adding all the expended incur to purchase the land, raw
material and rent, taxes and other related expenses. Here, basic income statement will be
prepared for two to five year so as to record all related information effectively and meet
the expectations of all related buyers (Wall, 2014). Moreover, break even analysis will be
done by checking the income of the firm against the expenses generated for particular
financial year. This proves to be effective to derive exact amount of profitability or loss
occurred to business. Hence, a very simple cost structure of the business is followed
under which pricing strategy is done on the basis of perfect competition market. This

tends to create competitive edge of the business by meeting expectations of all related
parties and recovering the cost of production for 24*7 Coffee cafe (Laud, Betts and
Basu, 2015).
Table 1: Cash flow statement
Cash flow statement
Pre-Operating year
(£) Year 1 (£) Year 2 (£) Year 3 (£)
Opening Balance 102000 176540 299159
Cash Sales 378000 453600 518400
Owner's capital 480000
Bank Loan 200000
Total Cash Inflow 680000 480000 630140 817559
Cash Outflow
Fixed Assets 110000
Market Research 13000
Utilities (Electricity/water/telephone) 22000 23100 24255
Legal help and permits 25000
Printing and Packaging 10000 30000 36000 43200
Advertisement and Promotion 20000 22000 24200 26620
Working Capital 350000
Rent on premises 18900 22680 25920
Interest 15260 11445 7630
Insurance 30000
Web Maintenance Costs 5000 5000 5000 5000
Tax 56700 68040 77760
Salary 123600 131016 138876.96
Miscellaneous Expenses 15000 10000 9500 9025
Loan Repayment 50000 50000 50000
Total Cash Outflow 578000 303460 330981 358286.96
Closing Balance 102000 176540 299159 459272.04
Sales Forecast Year 1 Year 2 Year 3
Average Orders per day 35 42 48
Average spending 30 30 30
Working days in a month 30 30 30
Sales 378000 453600 518400
Salary structure Quantity Amount/ Month
Total
amount
Bakers 2 2000 48000

Marketing executive 1 1200 14400
Tehcnical Staff 1 1500 18000
Delivery Staff 2 1000 24000
Helping boys 2 800 19200
123600
BREAK EVEN ANALYSIS
Average selling Price 30
Variable Cost 15
Contribution 15
Total Fixed cost 227100
variable cost 40% 15
Total 227115
BEP 15141
Fixed costs Amount
Market Research 13000
Utilities (Electricity/water/telephone) 22000
Legal help and permits 25000
Printing and Packaging 8000
Promotion and advertisement 18000
Rent on premises 12500
Web Maintenance Costs 5000
Salary 123600
227100
Assumption
 The owner's capital for the venture is 480000
 The bank loan of the business will taken as 200000
 Cost of goods sold will be 10% of the sales revenue
CONCLUSION
The aforementioned business plan is appropriate to start new business under which
corporation can access cost effective sources of finance and accordingly provide good quality of
services to all related buyers. This enables business to retain its consumers as break even point
will be reached in less time span. It can also be said that uniqueness in current product and

services is the major aspect which make it possible to create competitive edge of the business.
Furthermore, application of CANVAS model make the business task more easier and support
management to conduct all operation activities effectively.

REFERENCES
Journals and books
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