Coffee Shop Business Plan: Comprehensive Analysis and Strategy

This business plan outlines the strategy for a coffee shop, 'Coffee Sop,' located in Sydney, Australia. It details the business's offerings, primarily coffee varieties like latte, cappuccino, and espresso, targeted towards office workers. The plan covers operational aspects, including the organizational structure and service processes, alongside marketing strategies utilizing social media and local advertising. It also addresses financial needs, including funding through partner contributions and a bank loan, and provides financial projections for the first 12 months, including startup costs, sales forecasts, and budget considerations. The plan also considers key sustainability aspects and regulatory requirements, aiming for market growth and a strong competitive position in the hospitality industry. The business is structured as a partnership, with three partners contributing different skills to manage the cafe's operations, marketing, and finances. Finally, the plan emphasizes the importance of timely implementation and ongoing evaluation of the business strategy to achieve its goals.

COFFEE SHOP Business plan (2018)

COFFEE SHOP Business plan (2018)
[Your Name]
[Your Title]
[Coffee Shop]
[Sydney, Australia]
[Coffee Shop]
Business Plan

COFFEE SHOP Business plan (2018)
Executive Summary:
The business:
“Coffee Sop” is the name of the business. The coffee shop is situated in the Sydney,
Australia. The coffee shop offers the different varieties of coffee in the market. The main
coffee types of the firm are Latte, cappuccino, macchiato, Espresso, Americano etc.
Operations:
The cafe shop is operating its business in the market of Sydney; the main focus of the
firm is office people. The company is only offering the beverage s to the customers. The main
products of the company are coffee. Firm is offering the coffees into 3 packs which are small,
medium and large.
Marketing financial needs:
The marketing and financial operations of the firm has been managed and
implemented by the firm after evaluating all the related aspects and the competitive position
of the firm. The finance has been managed from the partner’s contribution and the bank loan.

COFFEE SHOP Business plan (2018)
Contents
Introduction.......................................................................................................................2
Business description.....................................................................................................2
Products and services....................................................................................................2
Ownership and legal structure......................................................................................2
Business strategy..........................................................................................................2
Owner’s skill and expertise..........................................................................................2
Marketing..........................................................................................................................2
Products/ Services.........................................................................................................2
Target market................................................................................................................2
Industry characteristics.................................................................................................2
Promotion and advertising............................................................................................2
Operations.........................................................................................................................2
Organizational structure................................................................................................2
Regulation consideration..............................................................................................2
Professional adviser......................................................................................................2
Business locations.........................................................................................................2
Plant and equipment required.......................................................................................2
Service/ retail process...................................................................................................2
Key sustainability consideration...................................................................................2
Financial projection..........................................................................................................2
Funding needs...............................................................................................................2
Financial forecast..........................................................................................................2
Implementation.................................................................................................................2

COFFEE SHOP Business plan (2018)
Conclusion........................................................................................................................2
References.........................................................................................................................2
Appendix...........................................................................................................................2

COFFEE SHOP Business plan (2018)
Introduction: (200)
Business description:
“Coffee Sop” is the name of the business. The coffee shop is situated in the Sydney,
Australia. The coffee shop offers the different varieties of coffee in the market. The main
customers of the cafe are office workers. The cafe would also offer the sitting area to its
customers.
Products and services:
The firm is only offering the beverage s to the customers. The main products of the
firm are Latte, cappuccino, macchiato, Espresso, Americano etc. Firm is offering the coffees
into 3 packs which are small, medium and large. In terms of services, firm is only offering the
sitting area to the customers to manage the performance of the firm.
Ownership and legal structure:
The business is a partnership business. It has been started with 3 people. They register
the firm as a partnership firm and have made a contract of partnership. The liability of the
shop is not limited. The partnership agreement explains that the same profit and loss would
be shared by the partners from the business. According to the agreement, they could
independently work outside as well.
Business strategy:
The business has planned different strategy for the different activities ad operations
of the business. The main strategy has been prepared for the marketing of the cafe shop. The
firm has planned and invented various new policies to manage the performance of the
business.
Owner’s skill and expertise:
Three people have come together and start a new business. All these partners have
different skills which is useful to manage the performance of the company. The Oliver has
expertise in managing the activities of the company, Amelia is good in cooking and the
marketing and other activities of the business are handled by Jack.
Marketing:

COFFEE SHOP Business plan (2018)
Products/ Services:
Coffee shop has been situated nearby the offices to manage and attract the office
people towards the cafe. As discussed above, the main products of the firm are Latte,
cappuccino, macchiato, Espresso, Americano etc. Firm is offering the coffees into 3 packs
which are small, medium and large (McKeever, 2016). In terms of services, firm is only
offering the sitting area to the customers to manage the performance of the firm.
Target market:
The target market of the “Coffee shop” is office workers and the people who are
indulge in work from home. The Coffee shop has been situated nearby the offices to manage
and attract the office people towards the cafe. The target market of the firm is limited right
now (Bokio, 2016).
Industry characteristics:
The Australian industry of hospitality and restaurant has been studied and it has been
identified that the growth rate of the industry is 2.5%. The industry is rapidly increasing and
thus the Coffee shop would also enjoy a great market position (Brinckmann and Kim, 2015).
Promotion and advertising:
Promotion and advertising is done by the Coffee shop through using the social media
and the local newspapers. The firm has given advertisement in the local newspaper to
promote the product. Firm is also handling an official account of the cafe to promote the
products and the cafe.
Operations:
Organizational structure:
Organizational structure of the café has been evaluated and it has been found that the
company has managed the organizational structure in such a way that all the workers of the
firm could directly contact to the managers and the owners of the company to manage the
performance of the company (Finch, 2016). The company has opted hybrid organizational
structure in which the flow of information could directly reach to the labour class to
managers of the company. The organizational structure of the company is as follows:

COFFEE SHOP Business plan (2018)
Regulation consideration:
It is required for a food firm to acquire some license and register itself for the food
safety and the quality of the food to the food institution. The cafe has acquired few licenses to
manage the performance of the company. The company has also qualified the quality
regulations as well (Hopp and Greene, 2018).
Professional adviser:
The professional advises are required by the company to regulate and evaluate the
industry’s performance and the position of the company. The business has taken advises from
the lawyer about the firm and the planner help has also been taken to identify the
performance of the company (Wynne, 2016).
Business locations:
The coffee shop is situated in the Sydney, Australia. The business has been set up at
the industrial place where various companies are operating their business is that the target
people of the company could be captured easily. The main competition of the firm is from
other coffee stalls nearby.
Plant and equipment required:
It is required for each business to buy some equipment for the business. In case of
coffee shop, the following equipment has been purchased:
Equipment Purchase
date
Purchase
price

COFFEE SHOP Business plan (2018)
Espresso Machine $ 3,460 15-July
Espresso Grinder $ 666 15-July
Rental $ 1,08,000 15-July
Refrigeration system $ 15,000 15-July
(Schaper et al, 2014)
Service/ retail process:
The service and retailing process of ten coffee shops has been evaluated further and it
has been recognized that the trading hours of the company is 12 hours (morning 8 to evening
8). The company has trained the employees to deliver the best services and the product to the
employee. The payment could be done to the firm through cash or digital payment (Watson,
McGowan and Cooper, 2016).
Key sustainability consideration:
The key sustainability of the company is to manage the performance and the activities
in such a way that the market position and share of the company could be enhanced. In
current scenario, company is focusing on enhancing the level of the sales of the company.
The operating process of the business also explains about the better position of the company.
Financial projection:
Funding needs:
Funding is the crucial part of each business without funding, it is not easy for a
company to run and manage the activities of the business. In case of coffee shop, it has been
found that the capital would be raised by the partners through their contribution and the
excess amount would be taken as loan from the bank. The funding is required to be collect by
the end of May to manage the activities of the business (Brown, 2012). It has been found that
each partner would contribute the same amount in the firm to run the business. The below
table defines that the Oliver, Amelia and Jack would contribute $ 50,000 for the firm.
Partner Contribution
Oliver $ 50000.00
Amelia $ 50000.00

COFFEE SHOP Business plan (2018)
Jack $ 50000.00
Though, the requirement of the business is quite higher and thus $ 1,50,000 should be
sanctioned as loan amount from the bank. It has been found that the bank would charge 5%
per annum on the bank loan and the amount has been sanctioned to the firm for 3 years. It is
required for the company to pay the amount after 3 month to the bank through EMIs (Brooks,
2015).
In partnership business, firm could not generate the funds from the market through its
securities. The funds could be generated by the company through the partners, bank and the
family. In case of coffee shop, huge capital is not required and thus the amount has been
managed by the firm through partner’s contribution and the bank loan.
Financial forecast:
Further, the forecasting study has been done on the business of next 12 months. The
study has been performed after evaluating all the related factors of the industry and the
location of the company. Firstly, the start up cost of the business has been evaluated and it
has been found that the business would have to spend $ 2,50,000 as start up cost of the
company. Though, the total capital of the company is $ 3,00,000 and thus the company left
with $ 50,000 for the daily operations and the activities of the business (Brigham and
Houston, 2012).
After evaluating the start up capital of the company, it has been found that the
forecasted sales of the company are $ 22,090 in each month for next 12 months. It explains
that from first day, a good strategy would be maintained by the company and the level of the
firm would also be strong. The sales forecasting explains about the better level and the
position of the company. Further, it has been found that current sales unit of the business is
4900 units which should be 5000 units t reach over the breakeven point where the cost and
the profit of the company would be similar (Higgins, 2012).
Further, the other budgets and the case of the company have been evaluated and it has
been found that the total purchase price of the company is $ 14,000. Purchase forecasting
explains about the better level and the position of the company (Madhura, 2011). Further, it
has been found that current purchase unit of the business is 4900 units which should be
maintained and the purchase price should also be maintained by the business to manage the
performance of the company.

COFFEE SHOP Business plan (2018)
The cost of sales of the company is 4 14000 which explains that no extra expenses are
associated with the production of the coffee. The other expense of the company has also been
discussed and it has been found that the performance of the company would be same for the
next 12 months and after that, few changes would be occurred into the financial position of
the company to evaluate the performance of the company.
The cash budget of the company and the income statement has also been evaluated to
analyze the cash level and the profitability level of the company and it has been generated
that the cash level should be maintained by the company through making few changes into its
credit policy. All the calculations have been given in the appendix to understand the financial
forecasting of the business in better way.
Implementation:
On the basis of the plan, it has been found that a better plan has been prepared.
Though, it is required to impalement the plan in a better way. The firm is required to make an
activity list and ensure that al the activities and operations of the business have been done on
time so that the better result could be got from the business. The firm is required to look over
the business plan and must implement all the process as described in the plan. A better
implementation of any plan is the key to success. The business plan expresses that the
performance and the position of the company should be completed before starting the
business.
Conclusion:
To conclude, this business process would offer huge return to the company. It is
mandatory for the business to evaluate and manage all the operations in perfect manner to
achieve the budgeted goals and the profits. The business plan and the implementation process
of the business plan express that the business would achieve the breakeven level in next year
and from that time, huge profits would be earned by the company.

COFFEE SHOP Business plan (2018)
References:
Boiko, V.I., 2016. METHODS OF DESIGNING AND IMPLEMENTING A BUSINESS
PLAN IN THE CULTURAL SECTOR OF THE REGIONS OF THE COUNTRY.
In PERSPECTIVE DIRECTIONS OF SCIENTIFIC RESEARCHES (pp. 169-172).
Brigham, E. and Daves, P., 2012. Intermediate financial management. Nelson Education.
Brinckmann, J. and Kim, S.M., 2015. Why we plan: the impact of nascent entrepreneurs'
cognitive characteristics and human capital on business planning. Strategic entrepreneurship
journal, 9(2), pp.153-166.
Brooks, R., 2015. Financial management: core concepts. Pearson.
Brown, R., 2012. Analysis of investments & management of portfolios. Pearson Higher Ed.
Finch, B., 2016. How to write a business plan. Kogan Page Publishers.
Gibson, C.H., 2011. Financial reporting and analysis. South-Western Cengage Learning.
Higgins, R.C., 2012. Analysis for financial management. McGraw-Hill/Irwin.
Hopp, C. and 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),
pp.320-351.
Madura, J., 2011. International financial management. Cengage Learning.

COFFEE SHOP Business plan (2018)
McKeever, M., 2016. How to write a business plan. Nolo.
Schaper, M.T., Volery, T., Weber, P.C. and Gibson, B., 2014. Entrepreneurship and small
business.
Watson, K., McGowan, P. and Cooper, S., 2016. Reimagining the extracurricular business
plan competition through the incorporation of effectuation.
Wynne, H.S., 2016. 4 Wynnes Boating Manufacturing Company: A Market Analysis and
Business Plan for Northwest Arkansas.

COFFEE SHOP Business plan (2018)
Appendix:
Start up cost summary
Expresso Machine
$
3,460
Espresso Grinder
$
666
Rental
$
1,08,000
Refrigeration system
$
15,000
Microwave
$
10,334
Induction
$
7,000
Decorating, Painting and
Remodeling
$
15,000
Installation of Fixtures &
Equipment
$
9,540
Starting Inventory
$
10,000
Legal and Other Professional Fees
$
22,000
License and Permits
$
15,000
Advertising and Promotion
$
25,000
Consulting
$
9,000
$
2,50,000
Coffee Shop
Forecast Sales for the year Aug to July, 2019
Aug Sep
t
Oct Nov Dec Jan Feb Mar Apr
il
May Jun
e
July
Production
units
4,90
0
4,9
00
4,9
00
4,90
0
4,90
0
4,90
0
4,90
0
4,90
0
4,90
0
4,90
0
4,90
0
4,90
0
average
sales price 5 5 5 5 5 5 5 5 5 5 5 5
Total
22,0
90
22,
090
22,
090
22,0
90
22,0
90
22,0
90
22,0
90
22,0
90
22,0
90
22,0
90
22,0
90
22,0
90

COFFEE SHOP Business plan (2018)
Coffee Shop
Forecast purchase for the year Aug to July, 2019
Aug Sep
t
Oct Nov Dec Jan Feb Mar Apr
il
May Jun
e
July
Production
units
4,90
0
4,9
00
4,9
00
4,90
0
4,90
0
4,90
0
4,90
0
4,90
0
4,90
0
4,90
0
4,90
0
4,90
0
add:
closing
units 0 0 0 0 0 0 0 0 0 0 0 0
Less:
Opening
units 0 0 0 0 0 0 0 0 0 0 0 0
Purchase
units
4,90
0
4,9
00
4,9
00
4,90
0
4,90
0
4,90
0
4,90
0
4,90
0
4,90
0
4,90
0
4,90
0
4,90
0
Purchase
price
14,0
00
14,
000
14,
000
14,0
00
14,0
00
14,0
00
14,0
00
14,0
00
14,0
00
14,0
00
14,0
00
14,0
00
Coffee Shop
Forecast cost of sales the year Aug to July, 2019
Aug Sep
t Oct Nov Dec Jan Feb Mar Apr
il May Jun
e July
Material
price
14,0
00
14,
000
14,
000
14,0
00
14,0
00
14,0
00
14,0
00
14,0
00
14,0
00
14,0
00
14,0
00
14,0
00
Cost of
sales
14,0
00
14,
000
14,
000
14,0
00
14,0
00
14,0
00
14,0
00
14,0
00
14,0
00
14,0
00
14,0
00
14,0
00
Coffee Shop
Forecast selling and administrative expenses for the year Aug to July, 2019
Aug Sep
t Oct Nov Dec Jan Feb Mar Apr
il May Jun
e July
Selling and
administrat
ive
expense
2,00
0
2,0
00
2,0
00
2,00
0
2,00
0
2,00
0
2,00
0
2,00
0
2,00
0
2,00
0
2,00
0
2,00
0
Coffee Shop
Forecast cash payment for the year Aug to July, 2019
Aug Sep
t Oct Nov Dec Jan Feb Mar Apr
il May Jun
e July
Material
Purchase
14,0
00
14,
000
14,
000
14,0
00
14,0
00
14,0
00
14,0
00
14,0
00
14,0
00
14,0
00
14,0
00
14,0
00
Cash
paid10%
139
9.9
5
139
9.9
5
139
9.95
139
9.95
139
9.95
139
9.95
139
9.95
139
9.95
139
9.95
139
9.95
139
9.95
Cash paid
45%
629
9.7
629
9.77
629
9.77
629
9.77
629
9.77
629
9.77
629
9.77
629
9.77
629
9.77
629
9.77

COFFEE SHOP Business plan (2018)
75 5 5 5 5 5 5 5 5 5
Cash paid
45%
629
9.77
5
629
9.77
5
629
9.77
5
629
9.77
5
629
9.77
5
629
9.77
5
629
9.77
5
629
9.77
5
629
9.77
5
Total cash
payment 0
139
9.9
5
769
9.7
25
139
99.5
139
99.5
139
99.5
139
99.5
139
99.5
139
99.5
139
99.5
139
99.5
139
99.5
Coffee Shop
Forecast cash collection for the year Aug to July, 2019
Aug Sep
t Oct Nov Dec Jan Feb Mar Apr
il May Jun
e July
Total sales
22,0
90
22,
090
22,
090
22,0
90
22,0
90
22,0
90
22,0
90
22,0
90
22,0
90
22,0
90
22,0
90
22,0
90
Cash
received
10%
220
9
220
9
220
9
220
9
220
9
220
9
220
9
220
9
220
9
220
9
220
9
220
9
Cash
received
45%
994
0.5
994
0.5
994
0.5
994
0.5
994
0.5
994
0.5
994
0.5
994
0.5
994
0.5
994
0.5
994
0.5
Cash
received
45%
994
0.5
994
0.5
994
0.5
994
0.5
994
0.5
994
0.5
994
0.5
994
0.5
994
0.5
994
0.5
Total cash
received
220
9
121
49.
5
220
90
220
90
220
90
220
90
220
90
220
90
220
90
220
90
220
90
220
90
Coffee Shop
Forecast cash Budget for the year Aug to July, 2019
Aug Sep
t Oct Nov Dec Jan Feb Mar Apr
il May Jun
e July
Opening
cash
balance
$
3,00
,000
$
60,
209
$
47,
998
$
39,4
29
$
24,5
59
$
9,69
0
$
-
5,18
0
$
-
20,0
50
$
-
34,9
19
$
-
49,7
89
$
-
64,6
58
$
-
79,5
28
Total sales
$
2,20
9
$
12,
150
$
22,
090
$
22,0
90
$
22,0
90
$
22,0
90
$
22,0
90
$
22,0
90
$
22,0
90
$
22,0
90
$
22,0
90
$
22,0
90
Less:
Material
$
-
$
1,4
00
$
7,7
00
$
14,0
00
$
14,0
00
$
14,0
00
$
14,0
00
$
14,0
00
$
14,0
00
$
14,0
00
$
14,0
00
$
14,0
00
Expresso
Machine
$
3,46
0
$
3,4
60
$
3,4
60
$
3,46
0
$
3,46
0
$
3,46
0
$
3,46
0
$
3,46
0
$
3,46
0
$
3,46
0
$
3,46
0
$
3,46
0
Espresso
Grinder
$
666
Rental $ $ $ $ $ $ $ $ $ $ $ $

COFFEE SHOP Business plan (2018)
1,08
,000
9,0
00
9,0
00
9,00
0
9,00
0
9,00
0
9,00
0
9,00
0
9,00
0
9,00
0
9,00
0
9,00
0
Refrigerati
on system
$
15,0
00
Microwave
$
10,3
34
Induction
$
7,00
0
Decorating
, Painting
and
Remodelin
g
$
15,0
00
$
5,0
00
$
5,0
00
$
5,00
0
$
5,00
0
$
5,00
0
$
5,00
0
$
5,00
0
$
5,00
0
$
5,00
0
$
5,00
0
$
5,00
0
Installation
of Fixtures
&
Equipment
$
9,54
0
Legal and
Other
Profession
al Fees
$
22,0
00
License
and
Permits
$
15,0
00
Advertisin
g and
Promotion
$
25,0
00
$
3,5
00
$
3,5
00
$
3,50
0
$
3,50
0
$
3,50
0
$
3,50
0
$
3,50
0
$
3,50
0
$
3,50
0
$
3,50
0
$
3,50
0
Consulting
$
9,00
0
Less: sales
and
administrat
ive
expenses
$
2,00
0
$
2,0
00
$
2,0
00
$
2,00
0
$
2,00
0
$
2,00
0
$
2,00
0
$
2,00
0
$
2,00
0
$
2,00
0
$
2,00
0
$
2,00
0
closing
cash
balance
$
60,2
09
$
47,
998
$
39,
429
$
24,5
59
$
9,69
0
$
-
5,18
0
$
-
20,0
50
$
-
34,9
19
$
-
49,7
89
$
-
64,6
58
$
-
79,5
28
$
-
94,3
97
Income Statement budget
Coffee shop
Forecast 2018
Sales $

COFFEE SHOP Business plan (2018)
2,65,080
Less Cost of Goods Sold
$
1,67,994
Gross Profit
$
97,086
Less Expenses
Advertising
$
63,500
Decorating and painting
$
70,000
Sales and administrative
expenses
$
24,000
Rent
$
41,521
Total Expenses
$
1,99,021
Net Profit before tax
$ -
1,01,935