Innovation and Entrepreneurship: Let's Have Coffee Cafe Business Plan

This project presents a comprehensive business plan for a new cafe, "Let's Have Coffee," situated near London Bridge. The plan encompasses various crucial aspects of launching and managing a successful cafe, including an executive summary, detailing the business idea, product and service offerings (coffee, pastries, bakery products), and target market. It includes an industry profile, highlighting current industry demand, the cafe's business model, and its point of differentiation. The plan also addresses anticipated challenges, prospective customers, a brief marketing plan (4Ps), competitor analysis, funding sources, and intellectual property considerations. The project provides financial projections and market analysis to support the cafe's viability and potential for success within the competitive London market. The plan also addresses key challenges, like customer service, competition, and staffing. Overall, the plan aims to provide a detailed roadmap for establishing and growing a profitable cafe business.

Innovation and
entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Executive Summary – a short summary of the business plan.....................................................3
Start-Up Business Idea (Product / Service) – explain the details of the product or service cafe
owner will provide.......................................................................................................................3
Industry Profile – current industry demand and statistics on your market..................................3
The Business Model – illustrate how to generate profit and the cycle of business for your idea.
.....................................................................................................................................................4
Point of differentiation - how is your company different from other companies with similar
products?......................................................................................................................................4
Challenges to the Business Idea: - discuss a few anticipated challenges in your venture...........4
Prospective Customers – discuss the ideal and prospective customer for your product / service.
.....................................................................................................................................................4
Brief Marketing Plan – discuss the positioning in the London market and the 4-Ps...................4
Competitor Analysis – highlight three current competitors already present in your market.......4
Sources of Funding – discuss 2 sources of funding to support your idea....................................5
Intellectual Property – discuss your approach in protecting your business idea.........................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

Let’s have coffee café
MAIN BODY
Executive Summary – a short summary of the business plan.
The following report is based upon business plan of opening a cafe in London. This will tell
regarding the overall business plan which will consist off detailing about competidores, macro
environmental factors and the funding which will be used for starting this new cafe. Before
starting a new business, it is always beneficial for the business owners to evaluate the market
trends properly to have a successful future ahead.
Start-Up Business Idea (Product / Service) – explain the details of the product or service cafe
owner will provide.
The new startup business idea is a new cafe which will be situated near London Bridge. Name of
this new cafe is Let’s have coffee (Chung, 2020). Basically, this cafe is made for people who
love different type of coffees . Apart from the beverages, this cafe will also provideDifferent
pastries and other bakery products to customers. Main objective of this cafe is to make suitable
coffee and food items to the people so that it can make profit in market. A good location is

chosen to settle this cafe and earn money by providing good service. The business plan for this
new cafe includes following free analysis:
 Evaluation of good place which will help in attracting more number of potential
customers everyday
 Doing good market promotions and advertising so that cafe become popular among
people.
 Providing brief about let’s have coffee cafe two people so that they can come and observe
what type of service is provided.
Industry Profile – current industry demand and statistics on your market.
Cafe industry is the most boosting industry in market nowadays. There are several new
businesses which are starting cafe in order to provide services to customers. It is very important
for these new businesses of cafe to innovate the service properly in order to attract more number
of customers. Let’s have coffee should focus upon implementing best market strategy in order to
overcome the challenges within the cafe industry (Danila, 2019). In context of UK, there are
approximately 75% of new cafes which are not successful. That is why it is needed that cafe
industry must provide most innovative service to people. Lot of customers are present within
market and it is very difficult to evaluate needs and requirements of people as the advancement
of technology. That is why more focus must be done on the technological development so that
cafe is able to provide agent every knew technology related service to them. Because of the
COVID-19 pandemic, cafes have to provide their service through online delivery. According to
the UK statistics, it is concluded that cafe industry is growing in future and there is high intensity
rate of success within five to six years. If cafes are able to provide all the requirements of
customers, then it is easy to capture whole market (Dodourova and Bevis, 2014). The leading
coffee sector is able to decrease by 1.3 percent of the country's sales, and total revenue is down
by 15.7 percent (Rothenbach, 2018). However, after dealing with all of these issues, diverse
sectors must collaborate with sanitizer protection and successful social distancing in order to
work and control the crowd. According to the report, experts expect that the UK coffee market
will expand in the future with a higher intensity and be able to grow more strongly up to 10%
CAGR in the next five to six years, starting in 2025. Customers have the ability to make
effective improvements in response to the café's needs for development research.

The Business Model – illustrate how to generate profit and the cycle of business for your idea.
The main motive of this cafe is to make more money and maximise the average revenue
available. There are different number of forces which are impacting the demands off cafe. This
strategy used by let’s have coffee cafe need supervision for maximising balance between costs,
hourly rate and occupancy of the time slot for making the best revenue. The following diagram
provides this schematic analysis of what is used for designing and optimising the business
model. Cross sell model is used for subsidising the income (Doležel, 2017). This means that
value added treats and coffee offers will be provided to customers. This will attract more number
of people to come over and grab coffee. It is suspected that there are few behaviour and sanitary
models which required to overcome visitors for latte.

Point of differentiation - how is your company different from other companies with similar
products?
The point of differentiation in this café is it’s location. This café is placed near London Bridge.
People can come over here and enjoy their free time (Fuertes-Callen and Cuéllar-Fernández,
2014). This café will have the ability to attract more number of customers. Main objective of this
cafe is to make more number of satisfied and happy customers.
The main motive of let’s have coffee cafe is that the business owner wants to serve coffee lover
individuals. On the other hand, vision of this cafe is to serve people and become one of the best
cafe in London.
Challenges to the Business Idea: - discuss a few anticipated challenges in your venture.
There are different challenges faced by new business like Lets have coffee café while
starting the new business. There is need to analyse following factors that have to be considered
before launching the new café -
Stock and pricing approaches are ineffective - Coffee shop companies without a specified
approach to taking inventory of their products are popular. As a result, materials can be
unavailable when cafe owner need them (Gomes and Silva, 2020). This can lead to
inconsistencies in customer service. It does not reflect well on a coffee shop when customers are
unable to obtain items on the menu due to dwindling stocks.
 Lack of supplies - The only way to deal with this is to list the essential items you'll need
to open a coffee shop. Seek guidance from reputable vendors to assist cafe owner in
making informed decisions. Cafe owner will then eventually continue purchasing
machinery so that cafe owner can focus on other aspects of your company that need
financial attention.
 Customer Service - Another important factor in the popularity of your coffee shop is the
efficiency of your customer service. A coffee shop with bad customer service would
quickly attract business, even though it has the best menu in town. Slow service is a
common problem in many coffee shops (Greenaway and Rudd, Eds..2014). Finding a
solution to this will give your coffee shop a strategic advantage over the competition.
 High competition within market - Coffee is quite common. Due to the high demand for
coffee, even in social settings, a coffee shop can be found on every corner. The brand-
new cafe Let's share a cup of coffee with similarly massive campaign budgets and energy

that has channels all over the place. There are also independently owned coffee shops that
are renowned for serving excellent coffee.
 Taking care of staff - Human capital is both the most difficult and the most valuable
resource to handle in any industry. Employees will quickly become assets of a company
if they are well handled. Take the opportunity to inform the colleagues of the company's
priorities so that they can work together to achieve them.
 Choosing what to serve on the menu - A coffee shop menu is crucial in assisting a
potential client in deciding whether or not to stop by for a coffee. A customer with a short
menu will be frustrated, and a customer with an infinite list will be frustrated. As a result,
striking the right balance when choosing what should be on the menu is critical. The only
way to make this determination is to specifically question the consumers. The new café
Lets have coffee could do that by engaging in short conversations with them and
inquiring about their interests. Cafe owner may also use social media to generate
engaging content that requires readers to leave feedback on their dining options.
Prospective Customers – discuss the ideal and prospective customer for your product / service.
The owner of Lets have coffee has to manage the successful target targeting segments that are
useful for food service and guiding people about the services that the café provides to their
customers (. Gulbrandsen and Aanstad, 2015). It has been linked to the café operator working
and creating strategic social environments, as well as ensuring that various profiles and resources
in the group are used to delegate tasks to have relevant development and incentives in achieving
the desired settings (Oxford Analytica, 2019). Their manager and other workers are ecstatic with
the efficient facilities and therefore are willing to pay for café's expansion in the opening of the
new region (Heo, Kang and Kim, 2018). It may have anything to do with technical and
operational planning.
Brief Marketing Plan – discuss the positioning in the London market and the 4-Ps.
The four p’s of marketing analysis
 Product: The new cafe let's have coffee is providing different product to people. This
includes beverages like coffee, black coffee, black tea ET cetera. these products are made
from rich quality milk and espresso coffee.

 Place: this strategy used by let's have coffee cafe is to place the cafe in the most possible
location where more number of customers can be gathered. That is why London Bridge is
chosen by the business owner to start this cafe.
 Promotion: there will be 3 type of promotions which will be used for advertising the new
cafe let’s have coffee. The promotional sources will be television, sales promotion and
social marketing. Advertisements and small videos must be provided to the influencers an
Internet. In this way, cafe will be popular among the youngsters.
 Price: as there are different cafes within market, George competition is there. That is why
let’s have coffee has decided to provide products and coffee beverages at affordable
price. This will help to increase the revenue in the early stages.
Competitor Analysis – highlight three current competitors already present in your market.
Cafe industry is having different competitors within market. Some of the competitors of let’s
have coffee are art South walk cafe, cafe Nero, blonde Walton biscuit. These are some of the
cafes which are making lot of money and profit while providing services in market. These cafes
provide leisure time to customers and they are expensive too. In context of this cafe, there is
more investment upon the seating area and the theme of this cafe is music. Youngsters and old
people both have love towards music (MacGillivray and et. al., 2014). That is why this cafe will
be able to attract both the middle aged people and youngsters.
Financial balance
Projected profit and loss
2020 2021 2022 2023 2024 2025
Turnover (25 per unit) 189,711.00 199,196.55 209,156.38 219,614.20 230,594.91 242,124.65
Less cost of sales:
Material Cost (3 per unit) 42,597.00 43,874.91 45,191.16 46,546.89 47,943.30 49,381.60
Production Cost (2 per
unit) 15,231.00 15,687.93 16,158.57 16,643.32 17,142.62 17,656.90
Labor Cost (6 per unit) 50,758.00 52,280.74 53,849.16 55,464.64 57,128.58 58,842.43
108,586.00
Gross profit (14 per
unit) 81,125.00 87,352.97 93,957.49 100,959.34 108,380.41 116,243.72
Less Expenses:

Administrative expenses 13,751.00 14,026.02 14,306.54 14,592.67 14,884.52 15,182.22
Other operating
overheads 22,374.00 22,821.48 23,277.91 23,743.47 24,218.34 24,702.70
Interest 1,943.00 1,981.86 2,021.50 2,061.93 2,103.17 2,145.23
Total Overheads 38,068.00
Profit/(loss) for the
financial year 43,057.00 48,523.61 54,351.54 60,561.28 67,174.38 74,213.57
Break even 2,719 2,774 2,829 2,886 2,943 3,002
Projected balance sheet
2020 2021 2022 2023 2024 2025
Non Current assets
Intangible assets 5,793 5,967 6,146 6,330 6,520 6,716
Tangible assets 52,812 54,396 56,028 57,709 59,440 61,224
Investments 10,693 11,014 11,344 11,685 12,035 12,396
69,298 71,377 73,518 75,724 77,996 80,335
Current assets
Stocks 28,571 29,428 30,311 31,220 32,157 33,122
Trade debtors 26,367 27,158 27,973 28,812 29,676 30,567
Short term deposits 14,779 15,222 15,679 16,149 16,634 17,133
Cash at bank and in
hand 14,632 15,071 15,523 15,989 16,468 16,962
84,349 86,879 89,486 92,170 94,936 97,784
Current liabilities
Bank loans and
overdrafts 9,610 9,898 10,195 10,501 10,816 11,141
Trade creditors 19,493 20,078 20,680 21,301 21,940 22,598
Other Creditors 678 698 719 741 763 786
Income tax payable 3,585 3,693 3,803 3,917 4,035 4,156

Other creditors
including tax and
social security
4,562
4,699 4,840 4,985 5,135 5,289
37,928 39,066 40,238 41,445 42,688 43,969
working capital 46,421 47,814 49,248 50,725 52,247 53,815
Total assets less
current liabilities 115,719 119,191 122,766 126,449 130,243 134,150
Non Current
Liabilities
Bank loans and
overdrafts 16,506 17,001 17,511 18,037 18,578 19,135
Other Liabilities 7,304 7,523 7,749 7,981 8,221 8,467
23,810 24,524 25,260 26,018 26,798 27,602
Provisions for
liabilities 8,094 8,337 8,587 8,845 9,110 9,383
Net assets 83,815 86,329 88,919 91,587 94,335 97,165
Capital and reserves
Called up share
capital 39,436 40,619 41,838 43,093 44,386 45,717
Reserves 1322 1,362 1,403 1,445 1,488 1,533
Retained earnings 43,057 44,349 45,679 47,050 48,461 49,915
Total equity 83,815 86,329 88,919 91,587 94,335 97,165

Sources of Funding – discuss 2 sources of funding to support your idea.
Funding is required for managing the successful running of cafe within market. for the
new cafe let’s have coffee, there are following ways of funding which are going to be used :
Banking and financial institutions: this cafe will take loan from bank in order to initiate the
working process. From the profit and sale analysis, the money earned will be provided to the
bank with interest.
Friends and families: business owner of let's have coffee cafe will take money from friends and
family in order to start the business. Once business is successful then this money will be given
back to friends. This requires a lot of trust and good bonding among the two.
Intellectual Property – discuss your approach in protecting your business idea.
Intellectual property is defined as the human intellect which is used for protecting, securing and
covering all the intangible creations for managing own property. In context of let’s have coffee
cafe, it is evaluated that following intellectual property can be used for avoiding others from
copying the idea of café (Mohannak and Samtani, 2014).
Copyright: it is defined as the most important method used for protecting the creation and
innovation of a person. In context of this cafe, Copyright will be purchased for managing the
cafes ownership.
Patent: This will be beneficial for let's have coffee to manage the products offered in the cafe. If
any other cafe is using the same creation given by this cafe then patent provides Help from
stopping those cafes which are doing the same thing.
CONCLUSION
From the above discussion, it can be evaluated that business plan helps to manage the
challenges faced by entrepreneur in new business. It provides help in pre determining al l the
problems associated with market and customer analysis.

REFERENCES
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