Small Business Management: Coffee Shop Business Plan Analysis

This document presents a detailed business plan for a coffee shop, covering various aspects of starting and managing the venture. It begins with an introduction emphasizing the social aspects of coffee consumption and the importance of customer experience. The plan outlines major objectives, including achieving profitability and establishing a strong market presence, even within a competitive industry dominated by large franchises. The document includes a description of products, encompassing hot and cold drinks, and food items. Financial projections are presented, including startup costs, balance sheets, and investment requirements. The marketing strategy includes promotional plans, such as promotional cards, advertisements, and loyalty programs, as well as strategies for social media and community events. An operations plan details daily activities, equipment lists, and supplier information. The business description highlights the shop's emphasis on high-quality coffee and customer experience. Market analysis includes target markets like drip coffee drinkers, coffee shop lovers, specialty coffee drinkers, and whole bean buyers. A competitive analysis and SWOT analysis, which includes strengths, weaknesses, opportunities, and threats, are also provided. The plan also addresses key assumptions, such as customer growth rates and average spending per customer. Overall, the business plan provides a comprehensive overview of the coffee shop's strategy for success.

Running head: SMALL BUSINESS MANAGEMENT
Small Business Management
Name of the Student:
Name of the University:
Authors Note:

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Introduction
Bringing people closer to each other with discussion while having morning coffee
increase special bond and relationship between people. From espresso beans to a cup of brewed
coffee that suits our clients temper, is the sort of lengthy journey. Marketing the espresso shop
runs mainly around the customer and their social experience, which could generate word of
mouth marketing and herbal discussions. The guidelines are to be followed taking into
consideration the customer preferences discovered from above. Staring a coffee business and
running for next 5 years to earn significant profit form business is the objective of the business
plan in this document1.
Whilst espresso stores industry is conquered by means of massive franchise, which includes
Starbucks and Caribou, but small coffee stores and local commercial enterprise have located
approaches to obtaining a rock-solid marketplace proportion.
Major objectives:
We believe that with beginning coffee keep commercial enterprise has lots of gain for us,
we get to be our very own boss, taking our personal business decision, and having the very last
phrase. We would use and take a look at our personal business skills, and enjoy, at the stop who
does no longer want to be his own boss! But being your personal boss isn't always a smooth
activity, taking responsibility and being underneath work pressure and anxieties through your
each day responsibilities and financial duties2. One of the major motives why we want to open
coffee keep enterprise is to grow your private earnings by means of retaining our business
profitable. The project isn't always only having our commercial enterprise profitable, it's keeping
1 Simon Cornée, "The Relevance Of Soft Information For Predicting Small Business Credit Default:
Evidence From A Social Bank" (2017) 2(7) Journal of Small Business Management.
2 Longenecker Justin, Small Business Management (Cengage Learning, 4th ed, 2016).

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the business worthwhile, and consequently we always must increase our merchandise and
business. We started out this commercial enterprise because all of us love coffee, it’s our
passion.
Description of products:
Hot drinks: Latte, capuchin, black coffee
Cold drinks: orange juice, soft drinks, water
Patsy: cookies, brownie, sandwich.
Tutor Name: Tutor Signature: Date returned:
Financial projection:
KD 65,000 to KD 175,000 is the average cost range of starting a coffee business in the country
with following segregation:
 Build out of space = 20,000
 Required starting cash balance = 15,000
 Initial Inventory = 2,500
 Equipment = 2,000
 Furniture = 3,000
Café shop

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Balance Sheet
At The End Of Jan, 2018
Current Assets:
Cash
Supplies
Inventory
Account receivable
Total Current Assets
Long-Term Assets
Equipment
Furniture
Total long-term Assets
25,400
1,200
3,500
8,200
20,700
16,200
38,300
36,900
Total Assets 75,200
Current Liabilities
Account Payable
Unearned Service Revenue
2,300
1,600

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Total Liabilities 3,900
Equity
Shares of #1
Shares of #1
Shares of #1
Shares of outsider investor
Net profit from the last period
Total Equity
10,000
10,000
5,000
40,000
5,300
71,300
Total Liabilities and Equity 75, 200
Investment required
Our start-up cost is KD 65,000, with owners funding of KD25, 000 and the balance amount of
KD 40, 000 to be collected from investors3.
It is expected that the shop will break even first year of business and is expected to earn profit
from year 3 with a net income of KD 15,000 on revenue of KD 55,0004.
Assumptions in projected financial performance:
3 Nancy J. Miller, Harriet McLeod and Karen Young Ob, "Managing Family Businesses In Small
Communities" (2016) 46(7) Journal of Small Business Management.
4 Mior Ahmad Jafri Sabri. and Tun Pin Chong, Strategic Financial Management (Pearson Custom Pub,
2011).

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1. Starting Number of clients Per Day = 65
2. Days Open Per Month = 26
3. % Monthly Growth Rate of Customers During Year 1 = 5%
4. % Monthly Growth Rate of Customers During Year 2 = 3%
5. % Monthly Growth Rate of Customers During Year 3 = 3%
Common buys in step with consumer visit and then estimate what your average price might be in
that order. Here are multiple related assumptions:
1. Average Purchase per Customer Visit = KD 3
2. Average Cost of Goods Sold per Customer Visit = KD 1.5
Marketing strategy:
In our advertising and marketing plan, we will explain how our café might be outstanding among
all of the other cafés and stand out, how we will target our clients, and reach them through one-
of-a-kind structures, how we can offer competitive pricing and gives at the same time as keeping
our pleasant in serving our espresso and meals5.
Marketing plan:
 Cards of promotion to attract customers.
• advertisements at universities, social media, company
• word-of-mouth marketing
• Personal recommendations
5 Hal B Pickle and Royce L Abrahamson, Small Business Management (Wiley, 7th ed, 2016).

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• Install electrical retailers at each table for laptops
• Live entertainment to your store on a normal foundation (football – stay music)
 Community occasions like web hosting poetry readings
• Loyalty packages, as punch playing cards, or loose espresso.
• Visible keep signage, movable symptoms
• Promotional commercials
• virtual and Social Media6.
Operations plan
Operation plan is usually included daily activities, and what we must do with a view to serve or
cup of espresso, and how our coffee shop is going for walks.
Equipment list:
Espresso Barista, warranties,
Location:
Shop deco, bar, furniture, electrical requirements, water
Workflow:
Day to day activities, system and controls,
Timing
Sales trekking, taking orders and order policies, inventory control
Cash control
6 Mior Ahmad Jafri Sabri. and Tun Pin Chong, Strategic Financial Management (Pearson Custom Pub,
2011).

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Suppliers list
Coffee, food, equipment
Delivery, products, packaging
Description of the business
We differentiate our self by means of our coffee. We care as deeply as a strong point espresso
bar approximately the satisfactory of the coffee from the seed to the product. We do not offer
only a coffee we provide an entire experience provide an outline of the coffee residence
enterprise and the shape of the coffee house. Deliver a brief history and provide sales and trend
history of espresso houses in the local region. also, provide the kind of enterprise structure the
business will take, which as an espresso shop will maximum possibly be a retail established
order. Ultimately, provide an explanation for the felony structure the enterprise will take,
together with a sole proprietorship, restrained liability business enterprise or company7.
Deliver a brief description of the coffee house. Encompass facts consisting of the rectangular
photos of the building, what number of patrons it'll keep, a concept of the decor, wherein it will
be placed and the form of seating the coffee house may have. Do now not move into remarkable
element, but rather supply a top level view of these things. The outline has to be no extra than 3
or four paragraphs.
Description of the market
Target Market
Nothing beats the fragrant odour of roasted coffee, whether or not in domestic, in the office or in
an espresso shop. Folks that love the taste spend extra than $30 billion yearly on every day and
uniqueness cups of the recent beverage. Getting in at the coffee gravy teaches starts off evolved
with knowing the goal marketplace of individuals who purchase and drink coffee, which is
7 Rajni Sofat, Strategic Financial Management (Prentice-Hall Of India, 5th ed, 2016).

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fundamental to figuring out which products are exceptional to promote to your established
order8.
Drip Coffee Drinkers
The present day research has found that seventy seven percentage of adults in the United States
drink espresso on an everyday basis. Relying on the price you price for a cup of espresso, your
goal marketplace may be students and commercial enterprise people in their manner to paintings
or magnificence, who want a reasonably-priced cup for the caffeine kick. Then again, you can
choose to head after the upscale market, to appeal to middle- and higher-class coffee drinkers,
who have the earnings to pay several bucks for a cup of espresso. The age of the espresso
drinkers subjects, too, with forty percentage of human beings elderly 18- to 24-years antique
consuming espresso daily, whilst 54 percent of humans, elderly 25- to 39- years, indulge in a day
by day cup9.
Coffee Shop Lovers
People who spend time at the shops and cafes wherein specialty liquids and regular cups of
coffee are available in conjunction with an inviting atmosphere –– in place of coming in to grab
a cup of Joe at the cross –– are another target market. In keeping with the brand new straight
forward research, there are extra than 22,000 espresso stores within the U.S., generating an
envisioned $12 billion. Starbucks is the clear cut chief of the pack and has extended distant
places with incredible success, having nine, 000 franchises in the worldwide marketplace. As
more coffee shops provide a diverse menu, which includes bagels, area of expertise sandwiches,
8 Daisuke Tsuruta, "Variance Of Firm Performance And Leverage Of Small Businesses" (2016)
55(3) Journal of Small Business Management.
9 Damien Roland, "Business And The Coffee House" (2017) 58(34) Bulletin of the Business Historical
Society.

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and desserts, the industry is predicted to grow to an anticipated $forty seven billion by using
2021.
Specialty Coffee Drinkers
Espressos, cappuccinos, lattes, and mochas are just the beginning, in case you need to sell forte
espresso liquids. The target marketplace for this coffee product consists of people who love
specific components of their espresso-based total beverage, and are willing to pay a top class to
get what they need. This market keeps developing, consistent with SBDC, way to consumers
becoming greater knowledgeable about what is going into specialty espresso beverages and the
way they’re made.
Whole Bean Buyers
Every other target marketplace consists of folks who buy complete bean espresso to make at
domestic or within the office. Those buyers ask to have the beans floor in the shop, or they grind
the coffee themselves, for the freshest cup viable. This audience buys complete beans through
the pound in specific flavors from numerous areas, so offering a combination of Arabic and
Robust whole bean types is fundamental to meeting your patron’s varying tastes.
Competitive Analysis
We have to define the main opposition within the market, like other espresso stores that gives the
same product line and additionally the opposite bakery stores and snack shop that also offer an
identical similar product line. Additionally journeying competitor coffee shops on the equatorial
area, which can be similar to us and learning their services and products that they offer, also
researching online website and programs that offers critiques on social media would be a terrific
data recourse for our aggressive evaluation. Keeping our eyes at the competitors in the way they

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rate their products, operation hours, seating capability, customer service, approaches of
advertising and marketing or even interior décor, this will help us locating styles of fulfilment
and opportunities in the market10.
Strength and weakness
Business Plan SWOT Analysis Sample
Strength:
Our area of electricity in Coffee4All isn't confined to the area of the coffee bar and additionally
the forms of coffees that we serve, however, also our superb customer service and the
atmosphere of our coffee store.
Weakness:
The perceived weakness for our commercial enterprise could be that we are starting on a small
scale; just one outlet and perhaps due to the fact we have a restricted space to extend the bar if
the need arises11.
Opportunities:
The truth that we're going to be working our espresso bar in one of the busiest airports within the
completion of the use of the US, offers us with limitless opportunities to promote our coffees and
pastries. We’re positive that we aren't going to warfare to draw customers; all we have to do is to
keep the excellent of our merchandise and also provide excellent patron offerings that allows you
to continuously welcome repeated customers.
10 Daisuke Tsuruta, "Variance Of Firm Performance And Leverage Of Small Businesses" (2016)
55(3) Journal of Small Business Management.
11 Hans Van der Maarel and Derek Tonn, "Running A Small Cartographic Business" (2017)
23(71) Cartographic Perspectives.

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Threat:
One of the threats which are probable going to confront us is the policy of the airport authority.
If the airport authority decided to close down all of the stores inside its facility, there's hardly
ever anything we might also probably do about it, other than to search for a shop someplace else.
Market penetration projection and strategy
Description of products:
Hot drinks: Latteh , capitchino , black coffee
Cold drinks: orange juice, soft drinks, water
Patsy: cookies, brownie, sandwich.
Management team description
General Manager
Operation manger
Marketing specialist
Barista
Part time accountant
GOAL
Generate monthly income, sales of $71,000 in line with month of 3% of the target market within
18 months of beginning.
Objectives
 Keep a high well known of meal quality and provider
• ensure a pleasant, cozy ecosystem