Detailed Business Plan for The Cafe Place Cafe - Entrepreneurship

This business plan outlines the acquisition and renovation of The Cafe Place, a profitable cafe, with a total investment of £115,000. The plan details the cafe's products and services, focusing on healthy food options, a gallery, and a bookshop to differentiate it from competitors. It includes market research, SWOT analysis, and financial projections, such as start-up costs, balance sheets, and cash flow forecasts. The plan also addresses risk management, sustainability, and a succession plan, providing a comprehensive overview of the cafe's operations, management, and financial strategy, aiming to target upper-class and health-conscious customers. The business plan emphasizes the cafe's unique selling proposition of healthy food options and a strong market position, with detailed analysis of the cafe's operations, management, and financial strategy.

Business Plan

BUSINESS PLAN SUMMARY
In the report business of café is proposed to be purchased which already running in profit
and is viable in nature. Total investment of £115000 will be made in the business. This amount
will be used to acquire café and renovation of same. There are some of risks like elevation in
price of raw items, failure to comply with rules which may heavily affect business. On these
fronts specific attention need to be paid. Entire business will be insured and employee’s
insurance will also be done in the business. Upper class and health conscious people will be
targeted in the business. Gallery and book shop will be in café which will make it different from
rivals. Serving of healthy food item will be major USP of the business. Such kind of things are
expected to make business more competitive.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
BUSINESS DETAILS.....................................................................................................................1
Products/services: .......................................................................................................................1
BUSINESS PREMISES..................................................................................................................2
Business location.........................................................................................................................2
ORGANISATION CHART.............................................................................................................2
Workers compensation:...............................................................................................................8
Public liability insurance: ...........................................................................................................8
Professional indemnity: ..............................................................................................................8
Business assets:...........................................................................................................................8
Business revenue: .......................................................................................................................9
Production process....................................................................................................................10
Suppliers ...................................................................................................................................10
Plant and equipment..................................................................................................................10
Inventory...................................................................................................................................10
Technology................................................................................................................................10
Trading hours............................................................................................................................10
Communication channels..........................................................................................................10
Payment types accepted............................................................................................................11
Credit policy..............................................................................................................................11
Warranties and refunds.............................................................................................................11
Quality control..........................................................................................................................11
Membership and affiliations.....................................................................................................11
Sustainability plan.....................................................................................................................11
Community impact and engagement.........................................................................................11
Risk constraints.........................................................................................................................11
Sustainability milestone target..................................................................................................12
Market research.........................................................................................................................12

STP of The Cafe Place..............................................................................................................17
SWOT analysis .........................................................................................................................18
Industry analysis........................................................................................................................18
The future.......................................................................................................................................20
Vision statement........................................................................................................................20
Mission statement......................................................................................................................20
Goals/objectives........................................................................................................................21
Action plan................................................................................................................................21
Succession plan..............................................................................................................................21
Planned succession type...........................................................................................................21
Successor details.......................................................................................................................21
Succession timeframe................................................................................................................21
Restrictions................................................................................................................................21
Proposed organization chart......................................................................................................21
Key personnel change table......................................................................................................22
Skill retention strategies............................................................................................................22
Training programs.....................................................................................................................22
Registration transfers................................................................................................................22
Change of business structure.....................................................................................................22
Other transfer............................................................................................................................22
Contract legal document...........................................................................................................23
Buy sell agreement....................................................................................................................23
Will/testament...........................................................................................................................23
Current insurance......................................................................................................................23
Contingency/ risk management tables......................................................................................23
Current market value.................................................................................................................23
Sale details................................................................................................................................23
Taxation ....................................................................................................................................23
The finances...................................................................................................................................23
Financial objectives...................................................................................................................23

Finance required........................................................................................................................24
Assumptions..............................................................................................................................24
Start-up cost..............................................................................................................................24
Balance sheet forecast...............................................................................................................24
Profit and loss forecast..............................................................................................................24
Expected cash flow...................................................................................................................25
Break even analysis...................................................................................................................26
CONCLUSION..............................................................................................................................27
REFERENCES..............................................................................................................................28

INTRODUCTION
A business plan is referred to as the written document which tends to focus on effectively describing the nature and type of the
business (Lehijoki, 2019). The business plan is also considered to be very useful in effectively carrying marketing and sales strategy
which helps in predicting the financial background in order top effectively predict the projected profit and loss statement. This study
will focus on effectively determining the business plan with the range of products and services offered by the company. This study
will focus on effectively focus on creating a market research and also helps in predicting the finances and future requirements of the
particular business plan. This study also creates risk management analysis and helps in evaluating the succession plan.
The Café Place is a cafe which tends to offer great coffee, fine tea, healthy and nourishing bite rich in protein low in fat. The
Café Place is located in Port Melbourne. It tends to offer various healthier options on the menu in order to create gallery and
bookshops.
BUSINESS DETAILS
Products/services:
We are selling beverages and food and plan to expand our customer base by offering an expanded (healthier options) menu and
create a gallery and bookshop. The products offered by the The Café Place mainly comprise of Entree, organic stir grill bowls, triple
Tacos, Flat bread pizza, EL Mexican Quesadilla, vegan and corn soup, Mediterranean egg soup, Pesto egg sandwich, Omlet, Crisp
bacon, healthy shakes, iced tea, hot drinks and beverages, fresh fruit juice, grilled tofu, bowl of sprouts, scrambled eggs, French toast,
spinach and mushroom sandwich, etc. There are various range of services within which an organization tends to carry out the business
operations mainly constitutes of vending, serving customers, marketing, advertising, managing finances, etc. in order to provide high
quality products and services to the Café Place. The anticipated demand is high for the particular range of products and services
because people are shifting towards health eating habits in order to improve their performance which leads to higher growth (Saito,
2018). There is high demand in organics, biodegradable packaged and organic food which results in attainment of high operational
goals.
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Currently the business is profitable, and we anticipate a growth in demand as we establish two more essential components of
our business model i.e. a gallery and bookshop which we believe will be popular with tourists from the nearby cruise ship terminal.
BUSINESS PREMISES
Business location
The Café Place is located on Bay street in Port Melbourne with appealing street frontage and a high volume of passing
pedestrian and vehicular/public transport traffic. Whilst we will plan to rearrange the current layout to facilitate the introduction of the
gallery and bookshop, we anticipate the size/space of the current premises being adequate. The appropriate size or space which is
required for the Café Place is around 1200 to 1600 sq. feet. This is considered to be an appropriate size for the comfortable seating of
around 60 to 80 customers on an average. Café Place is established in the Melbourne city in Australia, which in turn helps in catering
large number of customers from across the globe (Broderick, 2017). It is located near a tram station and international shipping
terminal, both of which are major landmarks in Port Melbourne. This way it helps in easily attracting the target customers towards the
cafe.
The Café Place is nestled amongst a thriving hub of retail outlets, restaurants and cafes. The retail traffic is consistent and
especially busy on weekends and holiday periods.
Buy/lease:
The premises for The Café Place are currently leased and we plan to negotiate a new lease term, initially for 3 years with an option to
extend to 5 years. We are currently dealing with an agent and plan to use the current lease agreement as a template with a few minor
variations to accommodate the changes we are going to introduce i.e. provisions for the establishment of the gallery and bookshop.
As the café is currently operating, the approvals are already in place in relation to the having a commercial kitchen etc.
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ORGANISATION CHART
Organization chart is considered to be as an effective process which is very useful in graphically shoeing relation of one
official with another. It is very useful in showing relationship of one department over another.
Management & ownership
Names of owners:
Warwick Renton
John Lyons
Details of management & ownership:
The Café Place will be run by the CEO of the company. The key responsibility is to implement the mission, vision and
objectives of the cafe. The CEO of the company tends to focus on providing overall direction in order to attain organizational goals
and objectives. The CEO of the company also focuses on taking several corporate decisions and tends to focus on overall managing
operations and resources of the company (McMurray, Cross and Caponecchia, 2019). The CEO also tends to focus on evaluating the
success of the cafe in order to attain organizational goals and objectives.
As business partners, we will be running the business. We will both be involved in the day to day
running/operations/management of the business. The business share between the partners is 50%/50%.
My strengths lie in the more strategic and administrative management side of things and my role will be to oversee all aspects,
operation and management of the business. John’s strengths lie in the staff management side and his role will be to focus on the day
to day (primarily staffing, customer service, managing artists, menu format and options) operations and we have drafted/signed a
partnership agreement.
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Experience:
Both business partners have general business management experience running a drone photography company for 7 years. I have
considerable management experience running a national union (8 years), formerly working as an airline pilot (20 years) and also
having experience in large scale event management (Sydney Royal Easter Show - 3 years).
John has management experience in running an Airbnb business (10 years) which also involves catering and organising entertainment
for small events. John has considerable management experience working as the Industrial Manager of a national union (8 years) and
working as an airline pilot (40 years).
Key personnel
Job Title Name Expected staff turnover Skills or strengths
General Manager Mr Warwick Renton 3 year’s experience in the industry
Well-developed management and people
skills
Business Manager Mr John Lyons 10 year’s experience in the industry
Well-developed management and people
skills
Cook Mr Bill Smith 10 years cooking experience in various
cafes and restaurants. Well-developed
cooking and organisational skills
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Waitperson Ms Kerrie Tuncks 2 years customer service/waitering
Experience. Good customer relations
skills.
Waitperson Mr Tom Hung 2 years customer service/waitering
experience. Good customer relations
skills
Required staff
Required staff Skills and capabilities
Server The server must have effective communication
skills, customer service skills, high energy,
persistent, basic mathematics skills and team
work capabilities (Bilsland and AUSTRALIA,
2016).
Manager The manager must have excellent customer
service skills, effective interpersonal skills,
consumer awareness, problem solving skills,
communication skills, etc.
Hosts The host must possess professional skills,
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multitasking skills, high degree of energy,
customer service skills, etc.
Dishwasher Compliance with food safety procedure, time
management skills, ability to walk or stand for
at least 8 hours.
Kitchen porter Cleaning task skills, uploading equipments,
cleaning crockery, collecting and washing pans
and pots (Saito, 2018).
Job Title Quantity Expected staff turnover Skills necessary Date required
Warwick Renton will perform the general/office management duties. The human resource management of the company will
hire one host and one manager for The Café Place. The host must be hired till 21st Jan 2020 and the manager must be hired by 23rd of
Jan 2020. The host must have 2 to 3 years of experience. The skills necessary for the host are professional skills, multitasking skills,
high degree of energy, customer service skills, etc. The manager of the company will also hire manager who have experience of
around 5 to 7 years in a hospitality industry. The skills necessary for the manager are customer service skills, effective interpersonal
skills, consumer awareness, problem solving skills, communication skills, etc.
Recruitment options
The recruitment option selected for hiring the prospective staff i.e., hosts and managers can be hired through advertisement in
the local newspaper and advertisement on online social media platforms (Berendsen and Beckett, 2019).
Training programs
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Training programs carried out by the Cafe Place is mainly linked with the leadership training, time management training,
communication and soft skills training, quality training, etc. in order to improve the competency skills of employees within an
organization.
Skill retention strategies
The Cafe Place will focus on maintaining the physical and online documentation of the staff which in turn helps in stating
which task are to be performed by whom and what are their responsibilities in order to achieve set goals and objectives. The
responsibilities are effectively communicated to the staff members by emphasizing on carrying on regular meeting and face to face
communication. Internal process like on the job training and also tends to focus on giving them real time situation in order to
continuously keep a check on skills of the staff within the organization.
Products/services
Product/Service Price [Price including GST]
Entree $30
EL Mexican Quesadilla $20
Spinach and mushroom sandwich. $18
Pesto egg sandwich $25
Flat bread pizza $35
Triple Tacos $20
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