Detailed Business Plan: VELO BARISTA Cafe, London, UK Startup

This business plan details the establishment of VELO BARISTA Cafe in London, owned by the Hayden family, aiming to create a unique dining experience. It includes a company overview, outlining offerings of meals and beverages, with a focus on coffee, tea, and snacks. The plan analyzes the external environment using PESTEL and Porter's Five Forces models, along with a SWOT analysis to define competitive strategies. Marketing strategies, including penetration pricing and promotion through social media, are discussed. The plan also covers management structure, operations, and financial projections, including initial investment, sources of funding, sales forecasts, salary structures, income statements, cash flow statements, and break-even analysis. The cafe's unique selling points include large premises, quality products at low prices, efficient service, and multiple counters to minimize wait times, all designed to attract a target market of young people, families, and corporate clients.

Velo Barista café
Business Plan

TABLE OF CONTENTS
Executive Summkary............................................................................................................................
Background...........................................................................................................................................
Company overview......................................................................................................................2
Business offerings................................................................................................................................
Environmental Analysis.......................................................................................................................
Competitive strategy....................................................................................................................5
Unique selling point.....................................................................................................................5
Competitive Analysis...........................................................................................................................
Industry Analysis..................................................................................................................................
PESTEL analysis.........................................................................................................................6
Porter five forces model...............................................................................................................7
SWOT analysis............................................................................................................................8
Marketing.............................................................................................................................................
Management Structure........................................................................................................................
Operations...........................................................................................................................................
Financial projections..........................................................................................................................
Initial investment.......................................................................................................................13
Sources of fund..........................................................................................................................13
Assumptions...............................................................................................................................13
Sales forecast.............................................................................................................................14
Salary Structure..........................................................................................................................14
Income statement.......................................................................................................................14
Cash Flow Statement.................................................................................................................15
Break Even Analysis..................................................................................................................16
References..........................................................................................................................................

EXECUTIVE SUMMKARY
The present business plan is on VELO BARISTA Cafe in London. The cafe would be
owned by Hayden family. Further it is the holding firm that will be established in the year
2016.The mission of the firm is to develop a new experience to the dining scene within London
city. Along with this the mission of the firm is to offer greater experience to new and regular
customers on every visit. Moreover the aim because of which the family owned business has
been established relates with providing indoor experience that can be compared to the other
competitors in the particular area.
The analysis of the environment is the measure of entire external factors. This is essential
for the purpose of gaining insight to the nature of industry. With the assistance of environmental
analysis the researcher of the business plan would assist the owner in making evaluation of
various external environmental factors. This includes political, social, economic and legal.
Further it also includes defining the competitive strategy and other factors that assist in
developing better understanding in relation to the target market. In addition to this in order to
establish the market it is important for the owner to bring new as well as innovative combos of
both category products. This is effective in providing customers with meal and drinks in an
effective way. With the aim to keep the cafe operations in terms of setting it is significant the
every table is able to turn for at least four times. This implies that cafe need to serve between two
hundred to four hundred customers on regular basis.
BACKGROUND
In the present era, people are living a very busy life. This compels them to consume on
the go food and drinks. UK is regarded as the giant hub relating with corporate environment
across the globe. There is presence of various cafe that are already present in the market. These
are making greater efforts towards offering satisfaction to the needs and wants of the diversified
customers. Tea is regarded as common non-alcoholic drink in the English community. Market
research presents that England as well as greater United Kingdom is among the leading
consumer of tea across the globe. It has been estimated that the average consumer within
England takes at least two cups of tea on every day basis. 98% of this is being from tea bags.
Along with this 98% of the consumers of tea consider it to take with milk in comparison to
without. Thus milk is regarded as the key ingredient. However it has argued that tea is losing the
ground to coffee. The rise in coffee has led to pubs and other suppliers providing coffee as one of
1

the non-alcoholic drinks that is being offered by them to their customer. In the present report,
researcher has led emphasis on development of appropriate as well as reliable business plan for
the family owned Cafe that is starting up in London city and named as VELO BARISTA Cafe.
But increase in demand of Coffee shops has encouraged the Hayden family members to begin a
new cafe venture in the popular market within London City. Taking into account new entry of the
cafe in the highly competitive market of the restaurant industry it presents that owner possess
greater experience. It has been believed that downturn area of the city would give the most
contributing mix of low cost as well as substantial market.
Company overview
VELO BARISTA Cafe is family owned start up that would carry out its operations in
London. The Cafe is being owned by Hayden family. Further it would be considered as the
holding company that was established in the year 2016. The mission of the firm is to develop a
new experience to the dining scene within London city. Along with this the mission of the firm is
to offer greater experience to new and regular customers on every visit. Moreover the aim
because of which the family owned business has been established relates with providing indoor
experience that can be compared to the other competitors in the particular area. In order to offer
satisfaction to the greater number of customers the menu of VELO BARISTA Cafe has been
categorized into two. This includes Meals as well as beverages. The rise in coffee has led to pubs
and other suppliers providing coffee as one of the non-alcoholic drinks that is being offered by
them to their customer. VELO BARISTA Cafe possess the intention to take greater benefit
through rising trend by means of providing them with tea and coffee to its customers. Such
drinks will be provided along with the snacks that includes biscuits as well as wide variety of
cakes. The selection of such can be made from the section of meal. Other types of non-alcoholic
beverages involves chocolates, milkshakes, lemonades as well as sodas. The target range of
customers which is viewed suitable will be younger people, family, corporate clients for the
entire lot of experience. In this relation the aim of the cafe to persuade the customers that are
aged between twenty and forty. Further this includes the one who are showing interest towards
eating in a distinct décor place where they can enjoy the facility such as Wi-Fi etc.
BUSINESS OFFERINGS
This section of the business plan presents the marketing mix of the new start business. It
includes elements such as product, price, place and promotion. The description regarding same
2

has been given in the manner below:
Product:
The menu of VELO BARISTA Cafe is categorized into two which includes Meals as well
as beverages. Under meals the cafe would provide items that can be taken for breakfast, lunch,
dinner as well as casual snack. It can also be taken in between the main meals. On the other hand
beverages involves both alcoholic and non-alcoholic drinks. The former kind of drinks would be
provided in the late afternoon hours. This presents that it will be provided from four hours after
midday and it will be offered till the cafe does not closes in the midnight. Alcoholic drinks will
be comprised of range of whiskeys, vodka, rum and certain cocktails.
Price:
The product pricing would be based upon the strategy of penetration pricing. The major
purpose behind making selection of this technique is to provide the price of meals and beverages
such that it is able to attract the customers towards the new cafe in an effective manner.
Place:
The focus of the owner is towards opening the new venture at Wands worth Bridge Road
as it is near to city (Simply London. 2014). This acts as a benefit for the firm in attracting greater
number of visitors towards the cafe.
Figure 1: Location
3

(Source: Google Maps, 2016)
Promotion:
It is the most important aspect of the business as the owner has to lay emphasis on
promotion of its product and services among the target market in an appropriate manner.
Moreover they can make use of several emerging trends relating with marketing in order to make
people aware regarding the people residing at Wands worth Bridge Road. This includes tools
such as social media as well as traditional means of advertising.
ENVIRONMENTAL ANALYSIS
It is a tool that is used by the business firms to understand surrounding environment. In
business environment analysis all external and internal factors that affects business firms are
identified and analyzed in legitimate way. By doing so firm comes to know about the threat and
opportunities that are present in the current market (Jones and Penaluna, 2013). Here, business
plan is prepared about the new business firm VELO BARISTA Cafe. In order to open business
and run it successfully it is essential to understand surrounding market conditions. On the basis
of understanding sound business strategy can be formulated for the business firm. Results of
environment analysis helps business firm is identifying the direction in which it needs to work in
order to counter threat and capitalize opportunities. Below various models of environment
analysis are applied and deep understanding is created about the business conditions that will be
used to open new coffee business in London.
Competitive strategy
Firm is new in the market and there is already fierce competition in the industry6. As
there are number of large and medium size companies in relevant industry that will give stiff
competition to the business firm. In order to establish business successfully and to increase
market share at rapid pace product will be made available at low price to the customer's. This is
because currently economic conditions are no good and people are preferring to purchase quality
products at low or reasonable price. Aggressive marketing strategy will be followed in order to
do institutional advertising of the firm. Under this firm name will be advertised on social media
and hoardings will be hanging on electricity polls that are on busty roads from where thousands
of people passes. By doing this company name will be make familiar to the people. Some
4

schemes will also lunched in the firm store that will benefit customers and will promote word of
mouth marketing of the company name. Hence, in this way within a year not only firm name will
be known to everyone but its market share will also increase at rapid rate in short time period.
Unique selling point
Large premises of VELO BARISTA Cafe will be opened and its siting capacity will be
50-80 people. Means that in single time period firm will be able to serve maximum 80 people on
its premises. Due to large size of premises there will be sufficient space among the table and due
to this reason customers will feel comfortable in the firm premises. Hence, this will be one of the
unique selling point for the firm. Special focus will be given on lighting in the firm premises and
also wall painting. Due to good lighting and color on wall pleasant atmosphere will be created
and low sound music will further make enjoyable atmosphere in the firm premises. Second
unique selling point of the firm will be that it will provide quality product at low price and this
will attract more and more people towards the restaurant hence, this will acts as second unique
selling point for the firm. In order to make sure that there will be consistent supply and timely
completion of order sufficient number of employees will be kept in the premises and customer's
will get their order instantly. This will be third unique selling point for VELO BARISTA. In
order to solve problem of long queue three counters will be established and by doing so problem
of long queue will be eliminated and customer's will not need to spend more time to place their
order. This will be fourth unique selling point of Velo Barista.
COMPETITIVE ANALYSIS
There are several competitors that are present in the market for VELO BARISTA Café
and offering quality of food and other related products to large number of audience. Following
are the competitors of VELO BARISTA Café:
Competitors Products Competitive advantage
Home Sweet Home Tea, Coffee, breakfast, lunch
and dinner, wide array of
cakes and snacks
Its menu consist of classic
American dishes which assist
it in gaining competitive
edge.
Sugar Junction Cakes, tea, snacks, sweet and
savoury menus
Its Retro Theme provide
vintage collection to the
customers (Jones and
5

Penaluna, 2013).
TAKK Hand roasted and drip coffee
from Iceland etc.
Café have horror theme with
cool environment which is its
major competitive edge.
INDUSTRY ANALYSIS
PESTEL analysis Political factors- Political environment of the UK is positive and ruling government is
fully committed towards growth of SME in UK. Hence, ruling government of mentioned
nation may bring many changes in its policies that will positively affect the business firm.
VELO BARISTA Café needs to follow all rules and regulations prepared by government
strictly. In case of default to follow same penalty can be imposed on the firm. Hence,
there is both threat and opportunities from this element of business environment. Economic environment- Economic condition of the UK improved to large extent and it
is on growth track comparative to other nations of Europe. Hence, in future demand for
firm products will increase and this will positively affect the business firm. Social factor- This component of environment can greatly affect the business firm
because people are becoming more health conscious. Thus, it is very important for the
firm to make available products that are preferred and consumed by health conscious
people. By doing so firm can increase its customer's base rapidly. Technology factor- Technology is less used in the industry in which firm is operating but
Velo Barista by using same can differentiate itself from its competitors. It can provide
digital menu to its customer's and through same it can avail facility of placing online
order at premises. By doing so service can be differentiated by Velo Barista from its
competitors. Legal factor- This is a factor that to large extent affect business firm and it strictly needs
to comply with all rules and regulations. Failure to do so may invite penalty from
regulatory authority and this may tarnish company image among the customer's. Environment factors- In order to prepare environment friendly image among the people
VELO BARISTA can focus on making best use of resources and by doing so it can
6

reduce wastage from its premises. By doing so environment damage can be controlled by
the firm.
Porter five forces model Threat of new entrant- There is very high threat from new entrant in this industry
because with passage of time many new players comes in the market. Growth of tourism
industry is the one of main reason which is attracting new firms in this industry. Thus,
Velo Barista have serious threat on this front in its business. Threat of substitute- There is great threat of substitute because for every single product
many alternatives are available (Jones and Penaluna, 2013). For example coffee of
different type is making available by competing firms in their cafe. Hence, there is very
high threat from availability of substitute products to the firm. Bargaining power of suppliers- There is very low bargaining power of suppliers in the
cafe industry because there are number of firms that are present in the industry. Hence, it
can be said that number of alternatives are available to the customer's. Due to this reason
there is very low bargaining power of suppliers in this industry. Bargaining power of customer's- In this industry cost of switching is very low and due
to this reason there is high bargaining power of customer's. Hence, it can be said that
holding a customer or creating loyal customer's base is very difficult task in this industry. Rivalry among competitors- There is very high rivalry among the customer's in this
industry because there are number of players in the cafe industry. There is not any big
difference between products price. Hence, quality of product and service quality are two
factors on the basis of firms are competing with each other. Main focus of firms is on
retaining old customers and creating new customers. Hence, there is fierce competition
among the firm operating in the cafe industry of UK.
SWOT analysis
Strength
 Pleasant atmosphere at cafe
 Good ambiance due to attractive
lighting and color on wall.
 Strong word of mouth marketing of the
firm name among people.
Weakness
 Availability of few items in menu.
 Poor promotion on social media.
 Improper use of social media in terms
of understanding consumer behavior of
7

 Low price of the product. the people.
Opportunity Enhanced demand for coffee and
confectionery products among
youngsters.
Threat
 Entry of new business firms in cafe
industry is creating threat for the firm.
 Strict rules and regulations are second
big threat for the firm.
MARKETING
While marketing the products, it is essential for VELO BARISTA Cafe to select suitable
mode of marketing as that plays crucial role in business operations and practices. Appropriate
channels needs to be selected since that impacts cost and profit aspects of the business entity.
Considering the market scenario, it is useful for the owner of VELO BARISTA Cafe to get
assistance from the source of internet as that is the most prominent channel that enhances the
scope of marketing. Internet is such a source that can be used for varied purposes; however for
the current business management, it will be used for the purpose of promoting Cafe's services
within market place. Currently, all the business entities have been emphasizing on social media
tools and techniques because it is considered as a platform that aids the business to accelerate the
scope of product promotion. Hence, with the use of social media technique, the owner will be
able to grab attention of wide range of customers. The business owner will be targeting
youngsters and business professional people; therefore the use of social media will be beneficial
for promoting the services. The source of social media will be used as a source of
communication through which the owner of the cafe will reach to entire population.
Currently, more than 88% people use social media and they consider it as a vital source
for acquiring information about market and also about different brands and their service
provision. Hence, the owner will be attract many customers for the existing products and services
due to high impact of social media sources. Social media websites will create impact on the
mindset of customers and they will be able to acquire the services from the cafe. Social media is
also a great source through which owner of VELO BARISTA Cafe can interact with customers
and this is also suitable in terms of implementing changes in the existing services as per the
8

demands and preferences of customers (Write a business plan. 2014). Although, social media is a
useful source; still it has many challenges that needs to be considered for appropriate product and
service promotion. Feedback from the customers regarding the service provision will be acquired
through social media tools and this is also suitable in terms of emphasizing on different customer
segments. Customers can also post their comments and appreciation regarding the services on the
social media websites of VELO BARISTA Cafe.
Furthermore, this will also assist the owner of the cafe to get information about the
customers and their needs through online survey. Apart from social media, other tools of
promotion can also be adopted by the cafe in the subsequent market place. VELO BARISTA
Cafe will have to accentuate on developing better customer relationships; thus for such purpose it
is vital for the cafe to create its presence on different sources like Facebook, Twitter and etc.
Moreover, at the initial stage, services will be promoted through discounts and schemes and also
through attracting only targeted segments. Better customer relationships are imperative since that
assists in customer retention and also in enhancing existing customer base of the cafe. However,
all such practices should be conducted by keeping in mind cafe's resources and budgetary
aspects. Owner of VELO BARISTA Cafe will have to adopt such practices that can enhance
profitability ratio with minimum costs. The Cafe will only be able to survive in social media
world if it will constantly consider views and opinions of clients. Moreover, the owner must have
to integrate business services with market trends as that will merely help in sustainability in
competitive market place.
Use of social media will also assist the cafe to accelerate the level of profitability and
revenue and this can also aid in facilitating repeat purchase. The frequency of repeat purchase
will be increased by giving more attention towards customer satisfaction. Certain events can also
be promoted through social media tools; however this will only work out when customers will
click on the defined links and websites. Social media is highly effectual as compared to
traditional modes of promotion and this can also minimize cost of business operations. However,
advertising through newspapers and television can also be adopted so that services of VELO
BARISTA Cafe can be promoted to diverse customer segments (Cordón Hald and Seifert, 2013).
Since, the cafe is emphasizing on all types of customers; therefore it has to focus on other modes
also which can accelerate existing customer base of the service entity.
Marketing mix
9

Product
Expectations from the products Main objective of the cafe is to deliver high
quality services to the clients.
Ways of meet such expectations Timely services will be allotted to the customers
so that they can be retained for longer span.
Competitors Several types of new services will be added to
the existing product line in terms of extending
business products and services.
Price
Expectations from the prices Low prices will be selected since VELO
BARISTA Cafe aims to acquire attention of
customers on higher extent. All the services will
be delivered on affordable prices.
Ways of meet such expectations Price penetration strategy will be adopted for
satisfying the needs of clients.
Competitors Other competitors like Velo Cafe and Nera cafe
will give competition to VELO BARISTA Cafe.
Place
Expectations from the distribution The cafe will be located at Wandsworth Bridge
road London, UK; Hence large number of
customers can be persuaded (Marcus, 2005).
Ways of meet such expectations Since, London is populous among people;
therefore the subsequent location will assist in
grabbing attention of more customers.
Competitors There are limited number of cafes in the same
area; thus VELO BARISTA Cafe has many
10

opportunities of growth and success.
Promotion
Expectations from the promotional elements Since, the cafe will be using social media tools;
therefore it will assist in generating more
awareness among the targeted and other
remaining customers of London.
Ways of meet such expectations Regular updates on the websites will assist the
cafe to attract more customers
Competitors Same industry players are using the same
sources in this field of service; hence it can
affect demand.
Sales channels
Appropriate sales channels are required to be adopted so that services of the cafe can be
effectively promoted at the market place. Hence, for the present business, direct selling mode
will be used where in customers can get undeviating services from the cafe by visiting. Further,
online mode will also be adopted in which customers can collect their orders as soon as they visit
the cafe; however in this source, payment of services will be through online. Both the sources
will be selected as owner assumes that the methods will help the business to generate more sales
and profitability. Further, this will also be useful in minimizing queue.
MANAGEMENT STRUCTURE
On the basis of above study and the concept of new café venture its operations will be
managed by a Hayden family in which head of the family will be CEO who will be responsible
for making all the strategic decisions for the business and establish it in London in effective way.
Along with him, Mrs Hayden who will be managing operations as well as kitchen activities and
their child will be running the operations. However, son has been experienced in the cafe
industry as he is experienced in dining and hospitality industry. Thus, VELO BARISTA Café
will offer wide range of quality products in the London with the target market segment of local
and visitors.
11

Mathew Hayden Lisa Hayden Shawn Hayden
Area of Expertize: CEO of
the new café, people
management, head of finance
and marketing operations.
Area of Expertize: Client
servicing and satisfaction and
other strategic operations.
Area of Expertize: Head of
Administrative department,
Clients servicing, raising
funds.
Experience: With the
experience of 10 years in the
café industry.
Experience: Housewife as
well as cook meal for
corporate people on daily
basis.
Experience: Worked in café
industry and have experience
in dining and hospitality
industry.
OPERATIONS
Opening a new café venture, owners of the VELO BARISTA Café have to focus on
carrying its operations in effective manner. However, opening it at the most popular place of UK
in London will assist the course of entrepreneurs to large number of local as well as visitors as
people travel to London from around the globe. Furthermore, different operations that will be
seen in VELO BARISTA Café are as follows:
 Business inventory Application (BIA): The main purpose of business inventory
application is that it assist in managing the level of stock effectively as well as minimize
the waste. Herein, using BIA will help the course of VELO BARISTA Café in managing
raw materials that required to be procured appropriately so that they can serve fresh and
hygiene café products and services to their customers. Along with this, maintaining
inventory leads to make smart purchasing decisions.
 Digital menu board: Looking at the level of competition in café industry especially in
London it is important for the owners to make sure that they offer food and other items
in such a manner that it attracts the customer to a great extent. Thus, digital menu board
is a new concept which helps in presenting the menu of café in innovative way. With the
help of this advanced technology, CEO of VELO BARISTA Café will be able to
promote its varied offerings and discounts for the day in appropriate manner. Further,
there are several benefits of digital menu such as display customized menu, marketing,
track orders etc.
12

 Dual Payment Mode: People of all categories are targeted thus, there should be dual
payment mode so that customer’s convenience can be maintained. Herein, Hayden
Family will accept both liquid and plastic money so that people can pay their bills easily.
FINANCIAL PROJECTIONS
Initial investment
To open a café in world most popular place adequate amount of initial investment is
required. However, the amount should be adequate enough to satisfy the pre-operating year’s
expenditures. The initial investment for VELO BARISTA Café will be £10, 00,000.
Sources of fund
To open a new Café business in the area of London, Hayden family requires 1 million
and in order to raise such huge amount two methods will be used i.e. owner’s capital and debt
financing. However, 400000 will be invested by owner’s capital and remaining fund will be
raised through bank borrowings at the interest rate of 7.63%.
Assumptions
Financial projections are critical part of the business plan and it is important for the
entrepreneur to make sure that he/she makes realistic assumptions which can be justified
properly. Following are the financial assumptions for the VELO BARISTA Café a family owned
business.
 Looking at the growth, sales of café is expected to grow by 20% every year.
 Café will be open for 25 days in a month.
 On market analysis number of customers are expected on the average basis.
 Premises of café will be rented @ 10% of sales generated.
 Service fee of 10% on sales will be paid.
 On the basis of inflation rate, utilities expenditure will be increased by 5% per year.
 To achieve competitive advantage, huge amount will be invested in marketing and
promotional campaign with 10% additional expenditure on it every year.
 Tax are assumed at 15% on profits
 Bank loan will be taken at 7.63% interest rate.
 10% increment will be given salary to staff.
 Miscellaneous expenses will be increased by 10% per annum.
 Depreciation of 10% on fixed assets.
13

Sales forecast
Year 1 Year 2 Year 3
Average Customers per day 75 86 99
Average spending 50 50 50
75*50*25*12 75*50*25*12 99*50*25*12
Sales 1125000 1293750 1487813
Salary Structure
Salary Structure
Owner 3000 1 12 36000
Assistant Chef 1800 3 12 64800
Staff 1000 4 12 48000
Administrator 1000 2 12 24000
Total 172800
Income statement
Income Statement Year 1 Year 2 Year 3
Revenue
Sales from Products and services sold 1125000 1293750 1487812.5
Less: COGS (40%) 337500 388125 446343.75
Gross Profit 787500 905625 1041468.75
Operating Expenses
Market Research 25000 0 0
Utilities (Electricity/water/telephone) 20000 21000 22050
Promotion and advertisement 40000 44000 48400
Rent on premises 168750 194062.5 223171.875
Insurance 20000 20000 20000
Salary 172800 190080 209088
Service Fee 112500 129375 148781.25
Miscellaneous Expenses 20000 22000 24200
14

Depreciation 50000 10000 10000
Less: Total Operating Expenses 629050 630517.5 705691.125
Operating Profit 158450 275107.5 335777.625
Less: Interest 45780 30520 15260
PBT 112670 244587.5 320517.625
Less: Tax 22534 36688 48078
Net Profit 90136 207899 272440
Cash Flow Statement
Cash flow statement
Pre-
Operating
Year Year 1 Year 2 Year 3
Cash Inflow
Opening Balance 0 200000 240200 379120
Cash Sales 0 1125000 1293750 1487812.5
Owner's capital 400000 0 0 0
Bank Loan 600000 0 0 0
Total Cash Inflow 1000000 1325000 1533950 1866932.5
Cash Outflow
Fixed Assets 500000 0 0 0
Market Research 25000 0 0 0
Utilities
(Electricity/water/telephone) 0 20000 21000 22050
legal registration charges 20000 0 0 0
Sevice Fee 0 112500 129375 148781.25
Promotion and advertisement 30000 40000 44000 48400
Working Capital 200000 0 0 0
Rent on premises 0 168750 194062.5 223171.875
Interest 0 45780 30520 15260
Insurance 0 20000 20000 20000
15

Tax 0 22534 36688 48078
Salary 0 172800 190080 209088
Miscellaneous Expenses 25000 20000 22000 24200
Loan Repayment 0 200000 200000 200000
Total Cash Outflow 800000 822364 887726 959029
Closing Balance 200000 502636 646224 907904
Break Even Analysis
Break Even Analysis
Average selling Price 50
Variable Cost 15
Contribution 35
Total Fixed cost 534050
Contribution 18
BEP 29669.44 Meals
per day meal 75
days 396
Weeks 57
Months 14
Interpretation:
On the basis of above assumed financial projections for VELO BARISTA Café it can be
said that, it is a fruitful option for the entrepreneur to invest in because it is showing positive net
profit at the end of first year only. Furthermore, within the three year functioning company will
regain its initial investment of £1000000 after repaying the entire loan amount. In addition to it,
break even analysis indicates that within 14 months of operations cited café will attain its no cost
no profit situation which is good sign for a new venture despite of high competition. Thus, it is
recommended to head of Hayden family to invest in the business concept as it will leads to
generate higher financial profits in coming years.
16

REFERENCES
Cordón. C, Hald. S. K. and Seifert. W. R., 2013. Strategic Supply Chain Management.
Routledge.
Fawcett, 2008. Supply Chain Management. Pearson Education India.
Google Maps, 2016. [Online]. Available at
<https://www.google.co.in/maps/place/Wandsworth+London,+UK/@51.4630841,-
0.265353,13z/data=!4m2!3m1!1s0x487605f77875968d:0xc2961d78b6fc068a>
[Accessed 26th April 2016].
Jones, C and Penaluna, A., 2013. Moving Beyond the Business Plan in Enterprise Education.
Education + Training. 55(8/9).
Marcus, A. A., 2005. Management Strategy: Achieving Sustained Competitive Advantage.
McGraw-Hill Irwin.
Simply London. 2014. [PDF]. Available at
<http://cdn.londonandpartners.com/l-and-p/assets/travel-trade/simply_london_jan_2014.
pdf> [Accessed 30th October 2014].
Write a business plan. 2014. [Online]. Available at <https://www.gov.uk/write-business-plan>
[Accessed 1st November 2014].
17