Business Plan for Mugs & Spoons Coffee Shop in London, UK

This business plan outlines the launch of "Mugs & Spoons," a coffee shop in London, focusing on attracting customers, generating revenue, and promoting health and environmental consciousness. The business model includes a privately-owned coffee parlor offering customized coffee at Carnaby Street, targeting a broad customer base. The plan details entrepreneurial competencies, SMART goals, and political, economic, social, technological, environmental, and legal factors. It addresses competition from existing cafes and emphasizes innovative strategies like unique flavors and lower prices. The marketing strategy focuses on targeting, positioning, and segmentation, with an emphasis on health-conscious products and eco-friendly practices. Sales forecasts and financial projections are included, along with an assessment of strengths and risks. The plan aims for sustainable growth, eco-friendly practices, and a strong brand image, while adhering to legal and ethical standards.

BUSINESS PLAN

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Executive summary.....................................................................................................................3
Business model............................................................................................................................3
Entrepreneurial competences of team force................................................................................4
Objectives; Goals and expressed in SMART terms....................................................................4
Political, Economic, Social, Technological, Environmental and legal factors...........................5
Competition.................................................................................................................................6
The Product.................................................................................................................................6
Marketing of business : Targeting, positioning and Segmentation.............................................7
Sales and operations....................................................................................................................7
Sales forecast...............................................................................................................................8
Financial projections...................................................................................................................8
Strengths and risks related to business......................................................................................10
Closing summary......................................................................................................................10
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
A business plan is a penned document that elaborates what kind of start-up is, what are
the objectives of that business, and what activities it is gonna perform in order to achieve those
desired goals. Business plans are really important as they report the guidelines for the
organisation from marketing, financial and operational standpoints (Benda, 2019). A business
plan is not just important for the internal people but it is also useful to the external users as well.
As, this plan helps in attracting the investment before the establishment of a company. In the
following report the business plan selected is for the coffee shop which would be named after
Mugs & Spoons. This report will look into the complete details about the business which is
going to be introduced shortly. The report highlights the description on the selected business and
its location. It also encompasses the financial statements that are projected monthly, and these
statements include future forecast, cash flow statements and break-even analysis.
TASK
Executive summary.
The mission and vision of the Mugs and spoons is to attract the customer for the start up
and earn a good amount of sales revenue every year and spread awareness on the disadvantages
of using plastic among the people. Also bring consciousness among the customer about their
health. . They also promote the healthy life style for which they introduce protein shake coffee
for the health conscious people. They also start using the recycle products so that they contribute
some amount of effort in the environment also. Mugs and spoons also import the organic raw
material for their customers as ther heal5h conscious which promots their health to be
effectivew. since pandemic peopple are concerned of their immunity tghe outlet offers drink that
provide styrong immunity if consumed on regular basis. The setup cost of the business will be
1.50 lakh euros, expected revenue from the business will be 1 Lakh euros.
Business model.
It is the strategy of a company to carry out its business in a profitable manner (Che Aziz
Nasarudin, Mohamad Asroun and Zamri, 2019). The business model consists the detailed
information on the products and services, plans to sell the goods, targeted audience and the
forecasted expenses. Pricing and costs are the two initiatives in this model.
 Type of business-

The business selected is a coffee parlour named as Mugs and spoons. This will be
privately owned business, where some employees will be hired with the experience of at
least 4 years (Brummer, Mogg and Purcell, 2021). The products offered to the business
will be cold coffee with chocolate ice-cream, sugar-free coffee, black coffee, cappuccino, cafe
latte, mocha, coffee with cinnamon stick, Mugs and spoons special style roasting coffee. This
parlour also deals with the customised coffee.
 Location-
The Mugs and spoons would be situated at the Carnaby street, London. The logic behind
the selecting this location is that it is very popular shopping street. This will help the
business to attract more customers.
 Customers-
The targeted customers will be the people from every age group such as children,
youngsters, professionals and aged people. As the coffee shop is dealing with almost all
kind of coffee that might be liked by the people of different age groups.

Entrepreneurial competences of team force.
The business will face the tough competition as coffee is something which is liked by all
the people across the globe. The competitors for this business can be the coffee cafes like
Origin cafe and farmhouse.
 Knowledge: The information that is being possessed by managers present in the
organisation is rare and different. They have capability of having efficiency to solve
every problem that is of unpredictable nature and coming in between way of business for
better progress and development.
 Motivation: The entrepreneur present in the firm must have proper motivation skills
available with them. It must possess such qualities that would help them to motivate staff
people for better results and for serving the customers at right place and right time.
 Personality features: A manager/ entrepreneur must have features such as proper decision
making at right time in right manner. They must have characteristic such as good
personality, fast problem solving skills, forecasting results in advance etc (Harris, 2019).

Objectives; Goals and expressed in SMART terms.
The desired objective is to increase sales every year with the sustainable growth. The
another stated objective is to adopt eco- friendly methods for the purpose of serving
coffee (Ittner and Novak, 2018).
SMART goal stands for- Specific, Measurable, Achievable, Relevant and Time - Bound.
To achieve the business goals this procedure is very effective. By application of the
SMART grid , to the goals of an organisation it can result in creating more specific and
achievable target for the coffee shop.
SMART goals for Mugs and Spoons are listed below-
 Specific- To make the outlet famous among the locals and attract the targeted customer
by means of health and environmental friendly products.
 Measurable- This is the goal with the measurable outcome. The quantifiable goal of this
organisation is to earn a good amount of revenue from the amount invested per year. The
quality objective is to serve the coffee in clay- mugs and avoid the usage of plastic
straws. and provide premium quality of services and goods the customer that is good fior
their health and taste.
 Achievable- The above mentioned sgoals are achievable by serving the products as per
the expectations of the audience and by providing extra services with the commodity. The
quality goal stated can be achieved by spreading awareness on the drawbacks of plastic.
 Relevant- Profit earning is the first and foremost objective of any business which can be
attained by increasing sales. Secondly, it is the prime duty of every firm to do something
for the society and environment because it uses its scarce resources ; so the coffee shop
has to avoid the unnecessary usage of plastic. The outlet is not only profit making but
also involved in social work and fulfilling its responsibility towards the environment.
 Time bound- The objective of maki9ng the business stable and famous is the primary
goal which should be attained in a year of the business start up increment in sales revenue
shall be attained after a financial year (Jerez, 2021).
Political, Economic, Social, Technological, Environmental and legal factors.
 Political Factors- Organic products are very rare and expensive, hence import and
availability of such product are really difficult,. UK government have shown ease in this

case. Government of UK provide various tax benefit to the these organisations like Mugs
na spoons.
 Economic factors- The economic condition of the consumer highly influence the sales
revenue of the company. the customer spending is dependent on the economic condition
of inflation and deflation. Mugs and spoons coffee parlour can be affected by the
inflation rates, savings rate, foreign exchange rate of the UK economy (Lentz, 2021).
 Social Factors- By providing the environmental and health friendly product the
company attainting its social objective. The society's culture can have a positive impact
on the profit earning capacity of Mugs and spoons. As it is seen that there are many
American style cafes and people of London consume more coffee.
 Technological factors- The outlet is completely serving handmade and organic product
which is one of its unique selling proposition. the company is serving environmental and
eco-friendly process. This coffee shop will be operating with the technological
advancements like self- service kiosks, mobile order takers. So it will be easy to survive
in a market for long run by using these methods. Environmental factors- eco-friendly product and organic raw material for product served
The demand for the consumption of coffee can be declined during the summer season as
compared to that of winter. So, this can be one of the challenging factor for Mugs and
Spoons.
 Legal Factors- This firm shall consider the following aspects before entering into the
market. The factors are- copyright, patent; health and safety law, employment law etc.
meeting all the requrements that is neede for start up businerss iof organic coffee shop.
Competition.
There are many competitors available which are serving similar type of goods and
services. It is observed that there are many competitors already present in market giving a tough
fight. As it is a known fact that coffee is accepted as a worldwide_ product and is in higher
demand on global grounds. The at present competition faced by the company is from dose
espresso and coffee aroma which requires innovative ideas for managing sustainability in
environment (Norirwan, Wan Suden and Mohd Harun, 2021). It is observed that innovative

techniques that are being used by Coffee aroma in UK is launching new flavours such as Vanilla,
hazelnut and Caramel. In case of Dose espresso it utilizes low dose and higher beverage yield
resulting in lower TDS as well. It takes in account and focuses on producing a product that
comprises of lower prices to the final users. The innovative idea adapted by Mugs and spoon is
to facilitate and develop better taste which must be served to its related potential customers for
better engagement & linkage between new users. It also focus on giving better products and
services at a comparatively lower prices and rates as well (Romanello, 2020).
The Product.
The product chosen in business plan is coffee and which offers a variety of products
under the title as well. It focuses on counting quality and quantity which is taken in account by
the Mugs and spoon company. The stock of goods also impact the inventory level of the business
and which will affect the marketing & positioning of product in environment. It is mandatory for
organisations to serve them right in relation with quality being foremost priority. Price level set
must be competitive as it serves being the right factor in developing goodwill among customers.
This can be stated as a technical approach in assessment of performance being served by the
corporates as it would provide a helping hand in utilising time and cost in more
efficient/effective manner.
Marketing of business : Targeting, positioning and Segmentation.
Marketing of business can be explained with the help of evaluation of interest of
segmented market and select the areas which would give best results. There are components that
affect the working and functioning of a product or service in environment. The business must tap
areas that went uncovered and which would serve it in a efficient, effective manner in long run.
Targeting: It can be defined as a step that focuses on evaluation of interest of related market and
choosing one or more segmented areas for entering the market and having full focus upon. The
related business counts what is being demanded in marketplace and develop products
accordingly. It concentrates on preparing products that includes less sugar intake and is
beneficial for health as well (SBA, 2020).
Positioning: It can be stated as placing product in a unique manner in market, it also overviews
different products that would be provided under the title of coffee services and goods given. It is
searching and choosing a place that would be helpful in generating demand and attract more

clients from other companies as well. It is selecting a area that would be helpful in developing a
strong brand image and improve the functioning of organisations as well.
Segmentation: It can be explained as a process that counts factors such as Geographic,
Demographic and psycho-graphic. It further can be described under the title such as focusing on
age factor ranging more in young youth that give preference to coffee related products at first
place. Geographic can be stated as a region and density such as China, Africa, Asia and psycho
graphic whereas counters social classes such as upper class, middle class and also their lifestyle
being followed. It also counts which segment consist of more loyal customers towards brand
being possessed by them over years and whether they would be switching to other related
products or not.
Sales and operations.
Sales and operations planning can be explained as a process which is based on monthly
basis and which segregates management of business empowering leadership for focusing on key
chain driver, marketing, managing demand, introducing new products or services, involving
sales etc. At the time when organisation is incorporating revenue related dealings the sales team
must focus on sales, whereas team managing revenue operations can also focus on performing
actions such as collection and handling of information collected. In the business being selected
that is Mugs and spoon dealing in coffee related products & launching innovative ideas. It
explains what would the time cycle adapted in a business , how many outlets are being planned
keeping future perspectives in mind and where they would be placed & opened. It also states
whether the business would be working and functioning over online platforms or through offline
stores. It also helps to understand whether the products offered are available on a ready basis or it
needs to be processed before being offered to customers. It explains the demand of ready-made
goods or in process goods.
 It helps to examine ways that are being used for offering goods and services in related
competitive environment.
 Sales and operations helps in finding out what has been the related ratio for calculating
scale on which business is running.
 It counts what have been the quantity of sales measured for a period of time in related
products being served and how customers can be attracted from present linked
companies.

Profit and Loss account
Balance Sheet

Strengths and risks related to business.
There are risks which would affect running and functioning of business in competitive
environment & there are strengths that would contribute in effective, efficient running of
company. There are related threats and opportunities discussed as under:
Risks associated:
 Financial: It is necessary for Mugs and spoon to count risk such as less funds available
with them for carrying out innovative ideas planned keeping future in mind. It needs
formation of proper budgets and implementing them on a timely basis.
 Strategic: It explains using strategies planned in best possible manner for carrying out
desired results and understanding reasons behind the variation and deviations observed in
between.
Strengths available:
 Qualitative products or services: There are strengths such as producing better quality of
goods and competitive as well. It also helps to assign areas that requires more attention
for better functions.
 Sales on a continuous basis: It is a better situation where business has processed sale on a
continuous grounds. It explains the sale carried in Mugs and coffee on a constant basis
which would help to increase revenue cycle and profitability scale as well.
Closing summary.
It explains what is being counted and included in the report prepared so far. IT also gives
a brief as what are the topics that are being covered and where the business is lacking and
lagging behind. It helps to find out ways that would help in better running of organisation and
whether they are competent enough in the eye of other businesses.
CONCLUSION
The report prepared above helps to conclude that business plan requires a lot of
assessment of market in related time duration when planned. IT counts strategies planned so far,
what could be the related policies adapted by a company. The report reflects the idea chosen by
the entrepreneur and the characteristic that is demanded to be acquired by managers in a business
for better working and functioning of company in competitive environment. It helps to focus on
area that need attention, executive summary and introduction of what is being served and what

has been the related forecast of production and sales scale being reached by related coffee shop.
It helps to find out what have been the ideas adopted by competitors in market and how it is
helpful for them in long run as well. It facilitates finding solutions for unpredictable situations
and processing stability and sustainability in environment that would contribute in better
outcomes and outputs. It provides a rough idea as what can be improved and how it would be
helpful for the business.

REFERENCES
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(Shields, 2018) (SUHARDI, 2018) (Water, 2018)