Business Plan for Coffee Roasting: BUS302 Entrepreneurship at KOI

This document presents a business plan for a coffee roasting business in Brisbane, Australia, targeting middle to high-income young adults. The plan includes market analysis, sourcing coffee beans from Nepal, a competitive pricing strategy, and online/offline distribution methods. Promotional tactics involve social media and traditional advertising. Funding will be secured through personal savings and bank loans. The plan identifies critical risks such as employee inefficiency, changing consumer demands, and new market entrants. The document includes references and supporting information relevant to the proposed business venture. Desklib provides access to this and other student-contributed documents, along with AI-powered study tools.

BUSINESS PLAN: A
COFFEE ROASTING
BUSINESS

BACKGROUND
 In the present study, a new business of coffee roasting is focused
which will be established by an entrepreneur.
 The reason for considering this particular sector is that, in Australia
demand of coffee products is growing rapidly.
 The present proposed coffee roasting business will be opened in the
Brisbane market of Queensland, Australia.
 This city is located near to Brisbane river due to which high number
of visitors come there. It one of the highly attractive tourist place of
Australia where chances of raising customers are high.

STEPS INVOLVED IN COFFEE
ROASTING PROCESS
 Place the coffee beans in roaster in small batches
 If the beans are very hard then use flames
 Rotated in the roaster machine consistently
 Beans checked within few seconds
 Cool the coffee beans
 After cooling natural gases are released on it
 At the end preserved and protected

IMPORT OF COFFEE BEANS
 In order to roast the coffee and run the business in the market with
profitable situation, higher quality of the raw materials required.
 Along with this, coffee beans which are raw material for proposed business
which must be of the lower costs.
 Nepal country is basically known for the high quality of coffee beans along
with wide range of products worldwide. Further, it provides coffee beans at
the cheaper prices in comparison to other countries.
 Therefore, coffee beans for the proposed roasting business will be imported
from Nepal.
 Another justification behind considering this country for importing raw
materials is that, low cost will support to the firm for raising profit and
contributing in GDP of Australian economy with high rate.

MARKET ANALYSIS
A) Industry Analysis
 According to the Australian coffee industry analysis it has been found
that revenue generated by coffee shops within fiscal period 2012-2017
is worth of $8 Billion.
 When looking at the annual growth rate between 2012-17 then it is
7.0% and it is expected that it will grow with the higher rate.
 On the basis of survey report in February 2017, it can be analysed that
demand of coffee items will increase on consistent basis within next
periods.
 Apart from this, coffee market of Brisbane area is growing
continuously in Australian economy as compared to another markets.
The reason behind this is that Brisbane is one of the tourist place
where huge number of people tourists visit.

B) Competitor Analysis
 In the coffee industry wide range of companies operating and provide
products and services to the people. Due to this particular situation, level
of competition within Australian coffee market is moderate to high.
 Therefore, the potential coffee roasting company will offer coffee products
up with the higher quality and lowest prices up to users. Under the quality
it will consider unique flavour, sweetness and body or mouth-feel.
 On the basis of this, it will able to gain huge sales and meet needs of them.
Apart from this, it will consider cost leadership as well as product
differentiation tactic within workplace.
 The reason is that it will support to the upcoming business in order to
achieve objective of competitive advantages.

TARGET MARKET
 The company determines its target market after considering
segmentation term where customers aimed on the basis of
geographic, demographic etc.
 Target market for the proposed business will be selected on the basis
of the demographic factor. Under this, age and income level these two
factors will be considered for selling coffee products.
 Therefore, target market for the upcoming coffee roasting business
will be middle to high income level of group and young people.
 Primary needs of the coffee customers are high quality, greeting
services, friendly environment and attractive price.

MARKETING
A) Product
List of coffee items which will be offered by the new business is
such as follows:
 Black coffee
 Espresso
 Brandy coffee
 Caffe Late
 Irish coffee
 Nitro coffee

B) Pricing
 In each firm whether it is existing or potential, price is one of the
highly concerned aspect within working environment.
 It is used by the management in order to sale the products and
services.
 Further, in order to determine price of the coffee product there are
list of strategies included.
 The entrepreneur will use competitive based pricing method in
proposed coffee roasting business.
 As per this tool, entrepreneur will assess price after analysing
charges of the competitors.

C) Distribution
 The process of delivering goods and services by a company up
to the customers is known as distribution system.
 Basically two methods are available for distributing the coffee
products among users which include online and physical stores.
 In the present study, the firm will target to the young and high
income level of people due to which online distribution method
will be used.
 Along with this, it will consider the offline way also where
attractive store will be designed by the entrepreneur to deliver
coffee products.

D) Promotion
 The strategy through which company advertising and
promoting its products and services is known as the promotion.
 Various kinds of the techniques available in order to promote
the coffee products with the entrepreneur like social media,
digital, newspaper, articles, radio, other traditional etc.
 Further, through social network, newspaper, direct mail order
and Facebook Ads coffee products of upcoming business will
be promoted in the market.

STRATEGIES AND TACTICS
Funding Strategies
 In the present scenario, the entrepreneur has fund worth of $1,00,000
and needs more amount which is $1,00,000. For raising the required
capital, various kinds of the internal and external sources of finance are
available.
 In the current case of coffee roasting company, personal savings of the
entrepreneur will be considered which is part of internal financing
source.
 Apart from this, bank loan will be used to raise capital where
entrepreneur will take loans from the external source i.e. commercial
bank. It is one of the helpful source where entrepreneur easily able to
raise fund. In exchange to raising capital, the bank will impose cost of
finance on the coffee roasting business in form of interest charges.

Promotional Tactics

FINANCIAL PLAN
A) Cash budget

B) Income statement

CRITICAL RISKS
 If the level of employee's efficiency within working environment of
coffee roasting business will reduce then unable to satisfy the customers
in an appropriate direction.
 Apart from this, if the staff not go through all the steps of coffee beans
roasting, then quality and productivity both affects negatively. In the
market, if income level of the people increases then demand innovative
coffee products along with the additional needs.
 In order to fulfil their wants and requirements, the entrepreneur has to
make changes which will incur additional expenses and create issue.
 In addition to this, in the Brisbane market if new coffee roasting business
will enter with the unique flavour and product then existing customers
will switch towards it.

REFERENCES
Adams, M., 2016. How are coffee beans roasted? 7 Special
Steps. [Online]. Available through:
<https://www.adamsandrussell.co.uk/how-are-coffee-beans-
roasted> [Accessed on 18th September 2017].
Australia Coffee Market - Growth, Trends and Forecasts (2017 –
2022), 2017. [Online]. Available through:
<https://www.mordorintelligence.com/industry-reports/austral
ia-coffee-market> [Accessed on 18th September 2017].