Urban Cafe: Business Plan for Launching a Successful Coffee Shop

This report provides a comprehensive analysis of the Urban Cafe's plan to launch a new coffee business in Hounslow West. The report begins with an introduction to the coffee culture and the Urban Cafe's objectives, followed by an identification of the target market, including adults, tourists, and professionals near the station. A competitive analysis using Porter's Five Forces is conducted, highlighting the threats and opportunities in the coffee shop market. The report then delves into the tangible and intangible resources required for the business, as well as the strengths, weaknesses, and potential risks. A detailed business plan is developed, covering location selection, menu design, marketing strategies, and financial planning, including a cash budget and contingency measures. The report also discusses the skills and capabilities needed for the business, promotional activities, and the appropriate legal form. The conclusion summarizes the key findings and recommendations for a successful coffee shop launch.

Understanding Of Resources To
Launch A New Venture
Successfully

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Brief introduction about organisation.....................................................................................3
Target market for the coffee business....................................................................................4
Competitive analysis to accomplish competitive edge in market..........................................4
Tangible and intangible resources that are required for launch of business...........................5
Strength, weakness and potential area of risk related with business......................................6
Development of the credible and detailed proposal...............................................................7
CONCLUSION................................................................................................................................9
TASK 2............................................................................................................................................9
Introduction............................................................................................................................9
Skills and capabilities that are required for establishment of business..................................9
Discussion on supporting cost and time-scale that required for business to develop skills and
capabilities............................................................................................................................10
Explanation of promotional activities and channels that support for launch of new business11
Formulation of an appropriate promotional plan for launch and pre-launch of business....11
Formulation of cash-budget for new business along with contingency measure.................12
Appropriate legal form for new business strategy................................................................13
CONCLUSION....................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
The new business venture is defined as an organisation that is formulated with a plan and
it aim to obtain financial gain from market by offering good quality of product and services.
With analysis of market requirement, an investor or individual arrange resources and time for
manufacturing new product or service that satisfies needs of customers and leads person to start
and operate new business venture. This report is composed from point of Urban Café coffee shop
which will soon establish as a new organisation in Hounslow West near the city station.
Moreover, this report highlights on business idea and the specific target market for the coffee
business (Berezvai, 2015). With use of effective tools competitive analysis of organisation will
also be included in this report. Along with this different sources such as tangible and intangible
which perform an essential role for establish a business will also focused in the report. In the last,
skills and capabilities which is required to launch a new business will be included in the report
for established of business in an organised manner.
TASK 1
Brief introduction about organisation
The culture of coffee is rich and from the last several years people are consuming coffee on
daily basis. This also refers there are various task performed by management of different
restaurant and coffee shop for modifying the taste of coffee to retain customers for longer period
in the organisation (Blank and Dorf, 2020). Moreover, the new Urban Café coffee shop will
established in the Hounslow West to fulfil needs of beverage product in market.
Aim- To establish the organisation in the central market and offer customer comfortable
environment for enjoy their coffee and sandwiches.

Objective
 For providing good quality products that satisfies needs and wants of customers.
 To develop competitive edge in market by understanding customers requirement.
 To serve the Hounslow West customers with its best service quality.
 For analysing the scope of coffee market and enter into business to earn more profits.
Target market for the coffee business
The target market for coffee includes drip coffee drinkers, individuals who visit coffee
shops and specific suppliers as well as regular coffee drinkers. In the context of Urban café
coffee shop the specific target for organisation is adults because according to the survey more
than 70% of individuals regular coffee. Further, another target market for organisation relates
with tourist and professional individuals it is because the decided place to open the shop is near
the station (Elder, Lister and Dauvergne, 2014). So individual are also attracted with help of
promotion activities that attract to visit coffee shop. Further, the middle and upper class
individuals are target market for customers because in Hounslow West most of the individuals
are regular visitor of coffee shops and restaurant for relax and enjoy of food.
Competitive analysis to accomplish competitive edge in market
There are different methods present such as SWOT, perceptual mapping, Porter’s five
forces and many more. Along with this it is also identified by management that persons are
focused to visit different places but in context of some regular shops and existing competitors
such as Starbucks etc. are more in demand and it is because of their competitive advantage.
Porter’s five forces from perspective of Urban café coffee shop is mention as follow:
 Threat of new entrants- The market of food service specifically coffee shop is too
competitive because already there are various organisations exist in market. Some of
them are international which is directly impacting on demand of products. In the context
of new entrants force organisation faces moderate power because with good quality
coffee small business is also developing their presence in market. So to accomplish
competitive edge organisation determines all resources which are used must be good in
quality that support to develop competitive edge in market.
 Bargaining power of buyer- Almost all business houses are performing their work with
motive of satisfying individual need and wants (Elliott, 2016). Along with this
globalisation provides large options to buyers for buying products. In context of beverage

market specifically coffee it is identified that bargaining buyer of customers is high and it
is because individuals are focused towards already established business. So it is complex
for new business to attract individuals easily. Further, urban café coffee shop take
feedback from customers for improve product quality that satisfy needs of customers in
future.
 Bargaining power of supplier- In context of coffee supplier it is identified that most of
the organisation is performing their work at global level so they requires similar quality
of beans (Elliott, 2015). Therefore, it provides benefits to small buyers as it is easy for
them to fulfil demand of customers and supplier provide raw-materials according to
business house for sustaining in business. Thus, bargaining power of supplier is low and
it work as a positive and automatically develops competitive edge for Urban coffees shop
to purchase coffee beans, powder and other essential resources.
 Threat of substitutes- The probability to develop substitute products is too high and this
refers most of coffee products are similar and the difference among them is generated
with the help of beans. This defines organisation are performing its work with motive of
satisfying individuals needs and wants. It refers the chances for substitutes product is
increasing and the force is also high. Due to which it is complex for organisation to
perform their work in an accurate manner (Fischer and Victor, 2014). In order to develop
competitive edge Urban café coffee use some secret ingredients to remain ahead from
competitors.
 Competition among rival organisation- The competition among current business
houses is too high which defines individuals are focused to complete their work with
more efficiency in order to sustain among intense competitive market. Force of
competitive organisation is high and it is impacting on all business functions. So to
develop competitive edge management provide comfortable environment with good
quality products.
Tangible and intangible resources that are required for launch of business
The term resource is a broad term and it undertakes various essential business requirements
such as process, capability, skill, monetary amount etc. For the launch of coffee business some
tangible and intangible resources are mention as follow:

Tangible resources- The term tangible resources consist of financial and physical resource
which is required by organisation to perform business in an effective manner. Along with this
financial resource is used by management to borrow fund from outside business in form of
investors and loan provider. In internal department financial term is used to invest right amount
in business. Last, physical resources for coffee business are machines and place of store.
Intangible resource- The term intangible resource refers to technological, culture and
reputation that work as an essential pillar for business. In the context of Urban café coffee shop
management is focused to develop internal environment according to culture of Hounslow West
for attracting more number of local customers. Moreover, manager or owner also match their
skills with intangible resources to utilised them in proper manner which also enhance product
quality (Heath, 2018).
Strength, weakness and potential area of risk related with business
An organisation or business perform their work in an accurate manner that is used for
satisfying individual need and wants with adopting sequential steps. But to formulate right step
Coffee business monitors its strength, weakness and risk related methods that are used by
business for developing right strategy for business. Some strength and weakness from the point
view of business is mention as follow:
Strength- In the present scenario, it is identified by organisation the major strength for business
is the experience that is obtained from previous jobs. This is used for set up of coffee business in
order to satisfy individual needs by identifying and developing right line for business that
enhance needs of customers.
Another strength of organisation is to control all business activities with the involvement
of individuals that is increasing business productivity. This refers those persons are recruited for
business who are committed towards their role. So business policy is implemented in right
manner for new business.
Weakness- The complex or weak point for organisation relates with business that impact on
operations and functions relates with complexity of business (Hernández and González, 2016).
This defines to understand and establish new business it is complex for completion to manage all
task in an accurate manner.

Another weak point for business relates with business aspects is the threat of functions
and operations because management is not aware about competitive market. This also defines it
is complexity for business to perform their work that reduce productivity of business.
Risk related area- There are different risk faced by management which is impacting on coffee
business. This also determines that Urban Café coffee shop is a new business so some major risk
which is faced by management are mention as follow:
 Selection of poor location- Place or location play an important role for an organisation
and it is impacting on sales of company because it is complex for business to complete
their work in an accurate manner (Holloway, 2017). This defines if customers face
challenge to reach towards coffee shop than it is complex for business to gain right
results.
 Poor designing of shop- The competition among coffee shop is faced by organisation
from international market also. This defines company is facing challenge and it is
impacting on business organisation and its design because rival organisation also
represent their image in their design.
Development of the credible and detailed proposal
With the constant increase in the coffee business it is identified the number of regular
coffee drinkers is also increased. According to present market conditions it is identified that 60%
of overall population consume coffee on early morning. So it is essential for an individual to
formulate plan that is used in managing business in an effective manner. The overall detail and
credible plan for business is mention as follow:
Business plan
The first step for business is used in managing areas that provides support to engaged
workforce in an accurate manner. This defines it is essential for business to ensure right business
plan which make organisation outline. Like, for new coffee shop raw-materials usage, purchase
of machine, selection of location etc. is included among organisational to develop an effective
structure (Maye, Kirwan and Brunori, 2019). So steps for business plan for managing funds with
reality is mention as follow:
Location
For selecting the location it is analysed there are various factors such as rent, cost,
location and more even neighbour also play an important role for deciding the place related with

business. This also defines it is easy for business to complete their work with selecting right
place because it leads organisation to enter into target market. This results the decision for
selection of location is a crucial and consume more time for selection of location.
Menu
With formulating an effective and smart menu design it is easy to capture attraction of
individuals. In context of Urban café coffee shop menu demonstrate unique brand for restaurant
such as speciality in their product line. It refers most package deals and provides better value to
customers for completion of work in an accurate manner. This also defines coffee shop owner
focus on market requirements and competitor offerings. It is because by providing simple menu
and design them as per customer feedback so right finalisation of menu attract more number of
customers.
Equipment
As espresso will be the new establishment, so management need the gear to assist the
right setting for business. Pick or select coffee machine and water filtration framework astutely.
It's imperative to be happy to contribute, however don't want to use up every last cent for the
good of brand name (Mullins, 2017). Purchase hardware inside and out utilizing own account
money or to rent hardware through a supplier from Silverchef or FlexiCommercial. On account
of coffee hardware, numerous bistros are likewise ready to get this on credit from their espresso
roaster to utilise right plan. It also likewise need to put resources into a business blender, fridge,
dishwasher, sales register… and so on. Once more, make a rundown and be as itemized as could
be expected under the circumstances work with decided agenda to complete work on immediate
basis.
Finance and marketing
Both finance and marketing are crucial terms for organisation which is leading business
to select right action and activity. This is also used by management for taking right steps which is
leading business for completion of task in an appropriate manner. Angel investor and bank loans
are two sources from where organisation select raise the funds and the selected amount for
establishment of coffee shop is £ 60,000. This also defines organisation is focused for utilising
benefits that are cost plus pricing. Advantage of this strategy relates with earning sufficient
amount of money (Pulido, 2017). This is also used for selection customers with motive of
earning more amounts of profits. Further, for marketing company products Urban café coffee

chain is focused to implement social and digital strategy for marketing company products and the
reason to select technology governs it help to attract more customers with low cost.
CONCLUSION
With the provided and explain of information in organisation it is concluded that to
establish a new business it is essential to develop with right idea. These results business
operation are formulated and relate them with business objectives and aims. It is also identified
that company also consider plan which are appropriate to enter into target market as it leads to
enhance sale and profit of company. Tangible and intangible resources which are required for
establishment of business are also included in this report to perform operations with organised
step.
TASK 2
Introduction
The new selected business by the organisation relates with managing and introducing new
coffee shop. This is used by the individuals for selecting right areas that satisfies need as well as
wants of customers in an appropriate manner (Reed and Smith, 2015). It considers individuals
are more focused to select an appropriate option which also selects the business with right and
appropriate techniques. This also considers management is focused in managing action through
which individuals launch new business with help of selecting right candidates.
Skills and capabilities that are required for establishment of business
It is complex to establish an organisation which is new and this is because there are various
task and operations performed by management and all of them must be relate with company
goals. This defines there are various task is established which is used by business and it is used
for earning profits. It also defines management is managing business with involving skilled
workforce. Some essential skills for establishment of business are mention as follow:
Financial management- Having the option to viably deal with organisation funds is
basic and it should have the option to estimate the income and deals, just as, screen your benefit
and misfortune related with new coffee shop. It will likewise need to pronounce the pay to the
Office (Schnürer, Bohn and Moestedt, 2016). Having sound budgetary administration aptitudes
will assist to run the business gainfully and secure monetary speculation it is because the
required amount of funds is £ 60,000 so it must be managed in proper manner.

Communication and negotiation- It should impart and help to tackle stakeholders or
providers, likely speculators, clients and workers. Having powerful composed and verbal
relational abilities will assist organisation to build great working connections. Each interaction
ought to mirror the picture for attempting extended of business with help of individuals in an
effective manner.
Leadership and authority- In this event that organisations engage individuals, initiative
will be a key expertise and this should have the option to spur organisation staff so as to get the
best out of them and improve efficiency (Strock and et. al, 2018). Apportion time to tutor and
mentor organisation activities for establishing business in an appropriate manner which is
leading business to select desired options.
Project management and planning- Beginning a business implies organisation should deal
with a scope of activities, for example, setting up a site, organizing the fit-out of business
premises and building up a scope of strategies and methods. Realizing how to successfully deal
with company assets, including time, cash and staff will assist organisation to achieve company
objectives.
Discussion on supporting cost and time-scale that required for business to develop skills and
capabilities
According to present market conditions it is used in managing business with the help of
right budget and cost. This also governs management is using cost perspective which governs it
is used in selecting candidates to establish business in an appropriate manner. It also defines
organisations select cost for earning right amount of profits. This defines cost for business is an
important factor and it is also leading organisation for obtaining better position in market. Cost-
benefit and break even profit are crucial aspects and it is leading business for promotion ofnew
business.
Organisation is also focused for completion of work which is leading business to select
candidates and it prefers company to develop company skills. Moreover, this also determines
that financial management are essential aspect which also leads company to manage work with
appropriate skills (Thangaraja and Sasikala, 2016). This also defines organisation consider that
its task match with company skills to promote company activities in an accurate manner. It is
also defines that by matching company capabilities with requirements of Urban cafe coffee chain
organisation is able to select better candidates that are capable to perform their role effectively.

Its results organisation productivity and profitability that aids to complete new business
operations according to stated time-period.
Explanation of promotional activities and channels that support for launch of new business
Promotion is an essential activity for business that is used by management for completing
their work with using right and appropriate techniques. This refers Urban café coffee shop
promote its activities by managing task such as marketing that manage and promote company
products on geographical basis. Further, offline and online are two different channels that exists
for promoting company business.
Urban café coffee shop utilise technology for promotion of the new coffee shop and
promotion also help to launch new business by attracting large number of customers (Tucker,
2017). Moreover, mouth publicity is another factor for introducing the business because visitors
are more influenced to go a place when it is recommend by friends or relatives. Another activity
which is used by new business refers to marketing channel and for new business website is an
effective channel and it is because website provides all information about products and business
to customers. Thus, with providing all details about business it is easy to generate positive
impression on customers in order to support for launch of new organisation.
Formulation of an appropriate promotional plan for launch and pre-launch of business
A promotional plan is recognised an effective marketing tool when it is related with launch
of new product and service. Promotional plan for the launch of Urban café coffee shop is
mention as below:
 Build buzz with social media- At the time of pre-launch phase the most technique
relates with formulation of social media buzz and games. It work as a pre-launch method
to promote company products. From perspective of Urban café coffee shop people or
individuals are already aware about coffee so management generate interest by asking
new ideas to analyse customer requirements about coffee. It helps to improve quality
product and arrange them about individual needs and wants.
 Tap into influencers- Leaders, motivators and influencer exists in each industry and
with arrange them Urban café coffee shop is more focused to utilise this individuals as an
asset. Moreover, in the context of coffee it is identified most regular coffee drinkers are
influenced through influencer and they also undertakes market area of 40%. So it works
as an effective technique for pre-launch of business (Verdin Filho and et. al., 2016).

 To formulate effective campaign- Marketing campaign is used by organisation for
promoting company products at the time of launch. After the open of new shop it is
identified that Urban café coffee shop analyse the organisation and market situation. This
results company is promoting company products with help of making campaign which
relates with situation. Example- Social issue of environment are focused by organisation
for promotion of company products in market campaign through serving coffee in recycle
cups.
 Develop of promotional message- According to the organisation it is identified by
management that promotional strategy must develop a message which provides
meaningful message to individuals. Along with this Urban café coffee shop utilise
promotional message method at the time of launching company products. It is also
identified that with right execution and appeal of promotion all work is completed wit
coordinated approach to satisfy individual requirements.
Formulation of cash-budget for new business along with contingency measure
This is mandatory for each organisation specifically for new business to complete their work
decided budget. In context of company it is identified by the organisation that individuals are
working with techniques that make better development of practice (Watson and McGowan,
2017). In context of Urban café coffee shop cash-budget is implemented by financial department
which is mention as below:
 Estimated revenue- The estimated amount of coffee industry in the UK market relates
with combined value that makes annual revenue about £ 48.5 billion. This also refers that
there are various task relates with rapid growth of industry and it is encouraging Urban
café coffee shop to enter into existing business operations. Moreover, the estimated
amount for managing coffee shop is £ 60,000 which is used to set business appropriately.
 Source to raise funds- In present scenario, it is identified by Urban café coffee shop to
prepare budgets that is required in managing work properly. This defines there are
different methods is present to manage funds such as to purchase coffee cart £ 18,000,
coffee kiosk is about £ 23,000 which is also used for completing task that provide fund to
evaluate all results.
 Break-down of amounts- With analysis of all business requirements it is identified by
organisation that with dividing whole amount into small task it is easy to analyse the

budget that is required for completion of work. In context of Urban café coffee shop it is
identified by management that budgets are utilised properly by organisation after dividing
into small amounts by tracking cost for each product which includes all variable and non-
variable expenses and helps to calculate total cost of product.
Appropriate legal form for new business strategy
Urban café coffee shop is introducing their business that is new in market so it is essential
to establish shop with legal form. From recent years the number of coffee shops is increasing
with rapid speed due to legal trend of coffee. So some legal form required to set the business is
mention as follow:
 Food business registration- If the food is prepared and cooked from the coffee shop
than it is essential for organisation for obtaining food licence. This is also utilised by
management for obtaining better results and it is concerned to work with more efficiency
and effectiveness (Wuepper, Clemm and Wree, 2019). This refers by permission of local
authority it is easy to operate and manage business in company. It also provide
information to address right information which make better plans for business.
 Hygiene- There is no law exists which demonstrate that formal training is required by
organisation for managing the work with open café. It also defines organisation require
training of food safety as well as hygiene that generates responsibility for completing
work with right procedures. In last, authority also provides information to prepare food
according to proper hygiene in order to ensure health and safety of customers. This is also
used by the management for completion of work with food safety management to satisfy
needs of customers which is the responsibility on internal organisation.
 Health and safety- The main responsibility of Urban café coffee shop is to ensure health
and safety of individuals whether it is employees or customers (Zhou and et. al, 2019).
FSA (Food standard agency) is the government-appointed department or body which is
responsible for maintaining food safety standard in UK. Along with this safer food better
business undertakes details about methods for complying safety of individuals in an
appropriate manner.
CONCLUSION
From the above report it is concluded that skills and capabilities perform an essential role
for organisation that is leading business for completing its work in an appropriate manner. This

also defines there are different task and cost related with business which is used to acquire right
skills and capabilities to launch business in an effective manner. Further, with different
promotional activities it is easy for organisation to make plan for successful launch and pre-
launch of business. In the last, cash budget is developed with right measure to make desired
outcomes from organisation.

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