Detailed Finance and Operation Report for Coffee Roaster Business Plan

This report provides a detailed analysis of a coffee roaster business plan, covering finance and operations. It begins with an overview of the business idea, focusing on coffee roasting for hire and supplying roasted coffee. The report then delves into the recruitment process, outlining steps like preliminary interviews and onboarding. Position descriptions for key roles, including business owner and sales manager, are provided, detailing required skills and responsibilities. Human resource management strategies are discussed, with specific actions and associated costs for launching a website and promoting the business. Time management, including working hours and useful apps, is analyzed, along with productivity timelines reflecting seasonal demand. Financial aspects such as business expenses, start-up costs, sources of finance, cash flow, profit and loss statements, balance sheets, taxation, and break-even analysis are also included. The report offers a comprehensive view of the financial and operational aspects necessary for the success of the coffee roaster business.

Finance & Operation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
Overview of business idea..........................................................................................................1
Recruitment process....................................................................................................................1
Position Descriptions..................................................................................................................2
Human Resource Management...................................................................................................4
Time Management......................................................................................................................5
Productivity Timelines................................................................................................................8
Quality Control............................................................................................................................9
Maintenance Plan:.......................................................................................................................9
Monitoring Performance...........................................................................................................10
Networks, Industry and External Business Environment.........................................................10
Workplace health & safety........................................................................................................10
Personal Assets & Liabilities:...................................................................................................13
Value of Business Assets Currently Owned:............................................................................14
Business expenses:....................................................................................................................14
Business Start Up Costs:...........................................................................................................14
Sources Of Finance:.................................................................................................................15
Cash Flow:................................................................................................................................16
Profit And Loss:........................................................................................................................23
Balance Sheets::........................................................................................................................24
Taxation:...................................................................................................................................26
GST:..........................................................................................................................................26
Break-even:...............................................................................................................................26
CONCLUSION..............................................................................................................................27
REFERENCES..............................................................................................................................28

INTRODUCTION
In present time of business, finance and operation departments have a significant role that
help in attaining the business objective in desired time period. Finance section is mainly
responsible to give required and useful monetary resources which help in running different
functions is appropriate manner to accomplish goals, on the other side operation departments is
responsible to run various business activities with available resources to enhance overall output.
Likewise, keeping record is among the major part of any company's accounting department. As it
help to keep track of revenues and expenditure and generate annual and monthly assertions so
that other staff employees can modified financial plans for the business (Ahn, Amiti and
Weinstein, 2011). In companies management always depended in the income statement that
exactly demonstrate the financial results that support in calculating budgets. Operations manager
typically establishes and implements organizational processes and procedures so that
performance and efficiency of the company to improve and address issues.
TASK
Overview of business idea
A business that provided coffee roaster for hire and also supply roasted coffee for cafes
with our own brand or their own brand. It will be a place for coffee people to make a community
because it will have workshops, talks and coffee events that gather coffee folks to get to know
each other and create a strong community (Archer, Ahmed Abdel Karim and Sundararajan,
2010).
Recruitment process
In company, employees are consider to be most valuable assets that manage and run
different functions which helps to attain the desired goals. The process of attaining the interest of
appropriate, suitable, skill full candidate for a respective job and allocating them with the desired
job is known as recruitment. It is observed that success of an organisation always depended upon
the correct recruitment to a major extent because the concept of recruiting is depended upon the
formulation of proper strategies (Needles and Powers, 2010). In Coffee roaster there is a defined
recruitment policy which support in selecting most appropriate and professional staff member.
That further help in attaining the goals and objective in appropriate time period. The employee
selection process is discussed below:
1

 Preliminary Interviews: This is mainly used to reduce the applicants those are not able
to qualify the minimum qualification criteria fixed by organisation. Management of
coffee roaster use to analyse the experience, skills, academic, interest of applicant at this
stage so that final interview can be more authentic and specific (Dyreng and Lindsey,
2009).
 Application blanks: Management ask the candidate to fill the application blank so that
detail about experience, age, justification of leaving next job.
 Employment Interviews: At this stage interviewer and candidate interact with one
another so that overall productivity and potential working capacity can be judged and
decision are made properly. For example, for the position of sales manager questioner ask
different question such as last experience, practical thinking to cop up with more demand,
ways to increase sales etc. from the candidate selected through Preliminary Interviews
(Fraser, Ormiston and Fraser, 2010).
 On boarding: It is a process that is refereed as most important in hiring process as
management make a atmosphere in which new employee can work easily without any
kind of hesitation or problem.
 Appointment letter: Manager of respective company make references check about the
member those are selected in final interview and gives the formal joining or appointment
letter (Weil, Schipper and Francis, 2013).
Position Descriptions
In companies, it is very important that each member must have a dignified and respective
job position which help in managing and running business activity in most beneficial manner. A
position description is a statements which defines the duties, roles, skills, responsibilities and
respective relationship of a member towards a position (.Marshall, McManus And Viele, 2011).
The main use of a job descriptions is to document the major roles and duties of a job role.
S.no Business owner Operations
Key Duties Skills Required
1 Financial management It is very much important to manage the financial
resources so that forecast about cash, sales and profit
can be done by business owner in specific year.
2

S.no Business owner Operations
2 Communication and
negotiation
To perform this duty it is essential for business owner
to have skills to negotiate and communicate with
investors, suppliers, customer and employee which
help to maintain good relationship (Hillier, Ross and
Jordan, 2013).
3 Project management and
planning
This is the main job of business owner so main skills
are needed to set website, manage resources of project
such as time, money and staff.
4 Handling issues In order to run business of coffee roaster in
respectable manner business owner requires the skills
of problem solving so that any legal and internal
issues are resolved. In under-pressure owner make
various good decision to resolve specific issue
(Edwards, 2013).
5 Delegation and time
management
Business owner is required the skill to manage time so
that predetermined goals can be achieved in particular
time frame. This help them to give more time and
importance to the activities that will generate more
revenue to business.
(Sales manager)
Key Duties Skills Required
1 Build and maintaining client
relations
The main skill required by sales manager is to be
polite, compose and understand the need of customer
which help in maintaining the effective relation with
customer that helps to increase sales for coffee roaster
(Schroeder, Clark and Cathey, 2009).
3

(Sales manager)
2 Brand promotion This the main role of sales manager, thus they are
required to effectively promote the product among the
customer. Canopies are needed to be placed by like
hoardings, boards etc.
3 Motivating team members In order to motivate team sales manager use to set the
small targets which help to increase performance,
develop lucrative incentive schemes and introduce
monetary additional benefits which help in motivating
employees (Bennett and James, 2017).
4 Sales personnel: Sales manager must have the skills of recruiting,
selecting, sales force training. They appoints salesman
those will be handling demand of customer regarding
the coffee machine.
5 Sales-promotion and
advertising:
This is the most important part of sales manager duty
thus, they are required to have specific skills of
advertisements and promoting product of coffee
roaster.
Human Resource Management
Management of human resources is the system of hiring, choosing, inducing workers,
providing guidance, providing education and training, assessing employee productivity. The are
also responsible to decide the benefits and extra pays, motivate worker, maintain effective
relation with entire team and legal authority of country, ensure healthy and safe environment,
develop policies regarding labor laws. In coffee roaster HRM use to implement strategies and
tactics which help in attaining the main business objective of business (Burritt and Tingey-
Holyoak, 2012).
4

Business
Objective
Human Resource Strategies Cost
Launch website
for coffee roaster
Secure a web developer for one year
 To determine the best web designer by asking the team
member
 Received the possible suitable quotes and exploratory
design that might best suited for website
 guaranteed a part time and full time web designer for
at least 12 months. Full time member have the main
role in developing website while part time will only
lookout for the content and suggest new ways (Malina,
2018).
$2500
Promotion of
business
concepts
Secure a Human resource personnel
 To ascertain the market that are still needed to be
market as product is not gain popularity in these
region.
 Add marketing features in business through social
media such as Facebook, twitter, Instagram etc.
 Make sure that proper boosting is going to increase
sales of coffee (Messner, 2016).
$4000
Time Management
A. Actual working hour
In order to attain the desired goals and objective it is very much important for
management to make good use of time and resources. The manager of coffee roaster is required
to make effective use of time which help in reaching the goals. Manager needs to work 38 hours
per week which is consider as standard working hours form Monday to Friday in Australia. In a
single day manager work for 7.6 hours, in case if any additional work is performed by manager
then additional overtime benefit is provided for compensation. In case if manager work on
Saturday and Sunday then double wages is paid than ordinary day (Cazier, Tian, and Wilson,
2015).
B. Actual weeks of working
5

In respective year the actual working days are 25 and 105 are weekends off thus business
manager would work for 51 week excluding public holidays.
C. Useful apps and software
In coffee roaster manager apply some time management app or software that would help
in saving time and increasing productivity. These are discussed below:
 Rescue time: With the support of this app business manager will be able to generate
weekly reports and determine which activities are taking or stealing more time. The total
wastage determined by manager and plans are made for improvement.
 Focus Booster: This software support to reduce any type of anxiety and focus on
business objective (Maas,, Schaltegger and Crutzen, 2016).
6

 Toggl: This support in making time sheets so that actual time spend on each activity is
determined
7

Productivity Timelines
As the coffee roaster is have the main business to provide coffee to customer and a place
where they can relax and enjoy their coffee. As most of customer love to drink coffee in winter
season therefore the seasonal expectations across a year is discussed below:
Month Production Focus
Jan Summer: Low demand of coffee
Manager use to make more effective plan to increase sales in next
seasons.
Feb Summer: Low demand of coffee
Effective planning to increase sales
Mar Summer: Low demand of coffee
More developed plan with desire to increase market share
Apr Summer: Low demand of coffee
Manager focus on other product for more profit.
May Autumn: Need to focus on improved plans.
June Winter: More demand of coffee
Manager is needed to focus on demand by customer so supply can
be increased.
Jul Mild winter: Demand remain constant
This time manager needs to make plan for increasing supply of
customer.
Aug Winter: Constant demand
At this time manager tries to increase more and more sales by
adding new sales benefits.
Sept Spring: Decrease in consumption
Oct Spring: Reduce demand of coffee
Customer start drinking juice thus manager focus to produce other
goods.
Nov Spring: Reduce demand of coffee
8

Month Production Focus
Dec Spring: Reduce demand of coffee
Quality Control
In coffee roaster, business manager is required to make effective plan and policies that
help in maintaining quality and make any improvement needed to increase total sales for that
period. There are some ways that are focused by management of company such as:
 Focused on employee training
 Respond as quickly as possible
 Determine the mistake that can hesitate customer and make proper plans to reduce or
minimise these mistake.
 Standardize the processes so that each employee can easily determine the actual need of
business as well as customer (Christ, 2014).
Maintenance Plan:
Item Potential fault Maintenance Plan Associated
Costs
Automatic Drip
Coffee Makers
Breakdown or
loss of suction
Test/Tag and service equipment every
six months
$40
High-Quality
Espresso
Machine
Breakdown or
loss of suction
Test/Tag and service equipment every
six months
$35
Industrial Coffee
Grinder
Breakdown or
loss of suction
Test/Tag and service equipment every
six months
$50
Industrial Coffee
Grinder
Breakdown or
loss of suction
Test/Tag and service equipment every
six months
$27
Refrigeration
System
Breakdown or
loss of suction
Test/Tag and service equipment every
six months
$33
Ovens, Toasters,
and Devices
Breakdown or
loss of suction
Test/Tag and service equipment every
six months
$15
$200
9

Monitoring Performance
Key
Performanc
e Area
Monitoring Resources & Recording
systems to be used
Frequency
Marketing Monitoring of customer
orders taken as a result of
advertisements placed in local
newspaper
Web analytics
Order & Despatch report
Weekly
Resource
usage
Monitoring operating cost Utility bills
Supplier invoices
Monthly
Customer
feedback
Customer satisfaction levels,
complaints and returns
Customer feedback surveys
post service delivery
Complaints register
Monthly
Market share Regular update of website and
marketing plan
Number of customer visiting
a day.
Weekly
Networks, Industry and External Business Environment
A) Current personal contact Legal consultancy: This mainly help coffee roaster business manager to provide legal
guidance which support in running business according to laws and rules of respective
business country (Fullerton, Kennedy and Widener, 2014). Financial consultancy: The main role of financial consultancy is to provide authentic
and valuable financial norms and more evenly monetary support which help in managing
business activity in profitable manner.
B) Three industry networks
C) Changes, trends and growth patterns
Workplace health & safety
Potential Hazards Strategies to minimize risk Costs
10