Coffee Shop / Cafe Business Plan Sample – Evasons Coffee
Executive Summary
This paper is based on the effective working activities of Evasons Coffee Company which will provide some quality services to the customer. The performance of this bank is continuously growing because its major objective is to give good quality services to the customer. The major objective of this business is to create a positive image regarding the activities of a company, staying and getting a profitable business. The major aim of this paper is to get the $500,000 amount of loan from the banking sector of the country. The future of this company is bright which complete its goal. This is a small business enterprise who is effectively working in the market, the target market of the company is vast, so there is less risk of loss in this case.
Description of Business
Evasons coffee is a coffee house which primarily serves as a coffee and its related coffee drinks like espresso, cappuccino, latte etc. While this company will also offer some alcoholic products. It is a partnership based company which is controlled by five members where four of them are CEO, Operating Manager, Human Resource Manager and Finance Manager, while the fifth one is an outside investor. This company will provide different varieties of coffee to the customers with reasonable prices that are quite affordable. In the product range of this company many cold drinks like iced tea and iced coffee. This café will also provide different types of food items like muffins, sandwiches, light snacks and other pastries.
This is basically originated on a small scale where the five people are united to form a partnership. The major activities of this business will be based on providing an efficient series to the business. In this small business, there are five major designations like Chief Executive Officer, Finance Manager, Human Resource Manager, Marketing Manager and Operation Manager. These will be the major hierarchy of this business, and under their supervision, there is a team member. The major aim of this business is to make the sociocultural function of the coffee shops. This type of business is helpful in order to provide the different types of business structure like this type of business is more effective for the retail business establishment. In the legal perspective, it has occurred in the partnership with unlimited liability.
This coffeehouse largely serves as a centre of social interaction so that the restaurant industry provides the drink and food. There is a need to create awareness regarding the coffee-related product items in the market (Kuan, 2017). This paper is informative regarding the effective marketing, operating and financial based strategies in the business based activities. The main objective of this company is to give some quality services to the customer at a reasonable price. This is a small business which is operating in different local places. This paper is based on a complete business plan of this company regarding its operating, financing, marketing and other related activities. There is a description of different strategies which is made by the management of this plan. The major objective of this business is to create a positive image regarding the activities of a company, getting and staying the profitable business. Provide excellent customer services, mission-driven core values, the productivity of resources and people, mission-driven core values and employee’s attraction and retention related activities.
While on the other hand, its objective in case of getting a loan is to make some innovation and make further expansion of the business. The management of this business needs a certain amount of loan in order to start up a new business properly, makes proper management of the employees and makes a proper sales and income level for the company (Jeffrey, Staeheli, Buire, & Čelebičić, 2018). In this plan, the major business plan is to run the business with a more cohesive vision and attract a large number of investors and customers to enter in this business. This type of business plan helps the management to explore the basic point of the business in order to analyze the marketing, manufacturing, sales, web designing and another such start up the factor of the company. This paper is informative in order to explore all the major points of start up a business.
Marketing Plan
The marketing plan is a comprehensive blueprint or documents which is used in order to outline the marketing and advertising efforts for the upcoming years. This plan helps the company to explore its important points in front of the customers. In order to start a new business named Evasons Coffee, there is a need for effective marketing strategies in order to attract and retain a large number of customers and shareholders in the market. For that purpose, firstly the survey is conducted where the different information regarding the customer preferences, their likeness and dislikes is critically considered and analyzed (Dib, 2018). Also, the existence of different competitors in the market is analyzed which will help the management regarding their effective marketing strategies.
After critically analyze the market condition through different factors, it is concluded that there is need of an effective marketing plan strategies in order to make promotion and creating a positive word of mouth regarding the operating activities of a company. In order to create awareness regarding the operating and selling activities of a company, a certain amount of capital is required for that purpose. The marketing goal of this business plan is to attain the marketing goals of earning a large amount of profit (Fitzpatrick, 2017). This business will majorly focus on the four major marketing mix points like product, price, place and promotion so that it becomes easy for them to gain competitive advantage and ear a large amount of profit. Also, there is a need to effectively consider the marketing plan of the Evasons Coffee so that it becomes easy for the management to consider the operating, marketing and financing activities of a company.
The target market of this business will be the youth and some adults because this coffee is mostly used by the professionals and business people. The average age limit of this company will be from 20-50 years, and within this age limit, there is a large number of the working class is involved in it. In addition, this café will also be giving some cakes and other pastries type products for the children which shows that there is a vast market of this company (Tucker, 2017). The target market of this company will be based on the middle-income level people because there is a large number of people in the surrounding who do not afford the taxes and expense of the coffee in a different restaurant. But this café gives some effective and high quality based coffee for the middle-income level group. This shows that there is a huge market of profit margin within the company.
In order to attract this market, there is a need to make cost-cutting strategies in the marketing campaign in order to attract and retain a large number of middle-income level customers in the market. The major aim of this business is to give the quality services for the middle-income level of the society so that the problems which they faced in the environment can be minimized. The overall budget of this marketing plan will be within the range of the company which is $40,000. This is a small business enterprise whose major aim is to solve the price and quality related issues of the customer.
In the case of marketing activities of this business, there is a need to make some inbound marketing tactics like social media marketing, Google AdWords/ Pay per click (PPC), organic search (SEO), creating the positive brand awareness and the relevant content publication through the eBooks and blogging (Huang & Wood, 2017). In the case of this business marketing plan, there is a need to adopt sales strategies, marketing based strategies, smart accounting and other loyalty activities in order to hit the market customers directly.
The major goals of these marketing strategies are first to make a marketing plan, second to collect the marketing material, third is to make a direct mail, forth one is to do in-person networking, fifth one is to do social marketing, sixth one is to make advertisement, seventh one is to make internet, content and email marketing and then to make a relationship building. In order to list of different marketing activities of this company with respect to the cost factor is given below;
Develop a social media planSocial Media Marketing
| Marketing Activities | Cost |
| Publish Great Content | $500 |
| Create Instructional Videos | $1500 |
| Create a brochure | $2500 |
| Create a website | $5,000 |
| $10,000 | |
| Create an email newsletter | $5,000 |
| In-person networking | $500 |
| $10,000 | |
| Relationship building | $2500 |
| Get the feedback | $3000 |
In this case, there is a need to collect the relevant marketing related information, after this predict the market condition of a company and then select the middle-income level individually and focus on their likeness and dis-likeness values and norms. It is an important step because due to this it becomes easy for the researchers to make some effective marketing strategies and giving the proper scaling of the activities. After this, there is a time to revise the marketing plan of a company in the market properly. In order to effectively promote the product range, there is a need to make some online promotional strategies.
| Evasons Coffee | Price |
| Caffe Latte tall | $2.95 |
| Caffe Mocha Tall | $3.57 |
| While Chocolate Mocha Tall | $2.90 |
| Caffe Latte Grande | $3.81 |
| White Chocolate Mocha Venti | $3.75 |
| Caffe Latte Venti | $2.16 |
| Caffe Mocha Tall | $2.56 |
| Freshly Brewed Coffee Venti | $3.10 |
| Caramel Plan Latte Grande | $1.99 |
Operating Plan
In this phase, the operating activities of a company will be based on its efficient nature, and other target markets need. This business is based on providing high-quality services to customers with reasonable and affordable prices, so its operating activities were also based on this factor. The operating activities of this business will be based on developing the customer relationship by directly communicate with the customer (Do Tu, 2017). This type of activity is also involved in removing the different problems and obstacles of an efficient customer relationship with the company.
Like in this case, a company can connect with the customer through email. The next activity will be based on the critical analysis of the business activities and making different strategies to obtain it. The third activity will be to create some entrepreneurial activities in a business, the fourth one is to build authority through the content factor, and the fifth one activity will be to develop the nurturing relationship-based activities of a company. So, in this case, the management can also invest some activities in the employee’s activities by directly communicating with them or by regularly reviewing their performance.
Well, this is a small business which based on making and selling the coffee based different items with the reasonable price to the customers, but in addition, creating a good relationship with the employees and stakeholders are also one of the major activity factors of this company. With respect to the nature of the company and its services which is coffee selling and provide all the related or necessary services to keep the curve of the business up to the scale.
It is necessary to meet all the challenges that occur in the services of the company that are provided to its customers. Therefore, the operating activity will be strongly based on the customer and staff interaction in the company. The more interactions will be the more company can enhance its activities and operations relative to the needs of customers (Dierberger, McIntosh, & Johnson, 2016). This requires a strong relationship with the customer and an active and effective way of communication.
When it comes to the activities to be shaped by the communication and requirements of its customer, it is necessary to have a clear communication source, including a feedback process either a weekly or the daily basis on each order placement from the customer. The feedback chart will help in identifying the underlying factors which may be the reason for better services or the ones which are leading towards bad service and outcomes.
On the basis of this one activity, the company can identify necessary factors and enhance its future activities accordingly to the feedback to a possible extent. Two-way communication will play a main role in adopting activities which will not only value customer needs but will also provide a sense of care to its customer and will help grow the business and make progress.
Besides the activities on the basis of the strong communication which indeed will be helpful, there are some standard processes and activities required for the company to include. Such activities will form a foundation of the business process and will carry on further actions in accordance with the communicative activities that are already discussed above. Besides the basic activities based on the nature of the business which is to serve, deliver and provide satisfactory services to its customers, there must be other refreshment activities to be included in the cafe. These refreshment activities can include different ideas, but the most beneficial will be the activities in which the customers are interested in. Therefore, based on the two-way communication method, interviews and feedbacks, these activities can be included which will not only refresh the customers but will also help in developing the value-based environment and will enhance the customer experience.
One of the trending and most refreshing activity to be included is the Karaoke sing-off as they are always enjoyable. People like to visit coffee shops with friends and family as well as do couples. Placing karaoke sing-off activities is one of the best engaging activity to be included for such customers who often visit the place with a large group of friend or family or are some couples. Including word games and writer meetups are the refreshments and promotional activities as well.
When it comes to the people who are passionate about sports and are your customers, the right activity to include is the sports fans live viewings. This will not only keep the customers engage but will also help in progress for the cafe due to an increased number of customers in such viewings as this is a kind of environment that customers are looking forward to experiencing in a place like this (Cleartrip, 2019). Not only this, but will also help in increasing the sales one way or another and to a possible extent.
As it is a small scale business, therefore the customer services need to be effective and precise. No one likes to wait in lines or to sit on the table for their order to be delivered. This can occur due to the difficulty for the employee or employees in managing the small place with increased or most engagement environment. Various accidents or panics can occur which can affect the customer services overall. Therefore, besides the customer’s value based or customer care and relative activities to be included in the cafe. It is necessary to overlook the inner department or employees of the business in order to keep the services in the flow and include more and more quality services.
It is necessary to include activities which can motivate, enhance and establish a new standard in accordance to the betterment for the customer services. For this purpose, employee training programs must be included in the activities as well. The training activities must take place on the basis of the evaluation which must occur periodically to evaluate the individualistic performance of employees. Based on these focused activities, the business can grow in future and can have better progress curve as compared to other small scale businesses. Therefore, it is necessary for the business to adopt such activities and include it in the cafe for better development and progress of the business where customers are valued more and more, and activities are enhanced with respect to the scope of the firm and requirements of customers.
Environmental Management Plan
As it is mention above the Evasons coffee is the small business operations. After making a marketing and operational plan of the company it is important to implement an environmental management plan. Mainly, the environmental management plan of a new startup based on the management tool that used to ensure the positive impacts of operations on the environment. The environmental management plan ensures that weather will be the production; it saves the environment and will not be harmful to the general public (McKinley, et al., 2017). The environmental management plan of the Evasons Coffee will consist of specific people and management hierarchy.
The environmental management plan will be a plan and execute by the management of the company. The environmental management plan will be consist of several tasks and methods. For example, the reasons coffee company will build green stores, recycling house, water conversation process, reducing waste with its reusable and cycling infrastructure.
Build green stores
The Evasons Coffee Company in order to reduce the environmental issues will build the greenhouse or stores. The coffee shop will help to protect the environment and will strive to produce positive outcomes for all. Such as Evasons Coffee Company will create environmental awareness on a global level through construction and operations.
The building of green stores helps to reduce environmental pollution as well as helps to produce renewable energy at a bigger perspective (Vijayaraghavan, 2016). Moreover, the renewable solution helps to support new and using energy in a greenway. The green stores will majorly focus on outcomes and production of the company in a meaningful way. There will be the environment-friendly process used by the company and will be beneficial for all.
Recycling and reducing waste
The Evasons Coffee Company will also use a recycling process under the environmental management plan. Such as, the management level of the company will focus on the recycling process in order to reduce waste. The recycling process does not only helps to reduce environmental pollution, but it helps the company to reuse the waste into an effective way (Stark, 2015). The environmental management plan of the Evasons Coffee will also focus on working with paper recovery in order to customize their recycling programs. According to estimation, almost 60-70% of coffee waste can be recycled in a better and effective way.
The Evasons Coffee under environmental management plan will majorly focus on reducing waste. Such as it is known that the coffee is being used in disposable cups and most of the waste products due to the usage of such cups. Now, under the environmental management plan, the company will encourage its customers to use ceramic mugs instead of cups. The company will encourage customers to offer discounts using the company’s mugs instead of using other cups. This will helps to reduce the waste produced by the company and also will be beneficial for the company as well.
Reducing waste through re-useable cups
Thirdly, the management of the company will focus on reducing waste through re-usable cups for environmental reduction. This would be an important component for the Evasons Coffee company to reduce waste.
Moreover, the company will use other technique under its environmental management plan in order to reduce waste and keep the environment safe and secure. For example, the company will use the water conversion process technique for water extended consumption. The Evasons Coffee company will also dominate the water extends for the water consumption, serve clean water and protect in coffee-growing communities.
Cutting waste and growing loyalty will be the other technique under the environmental management plan. In order to develop and maintain a sustainable environment, the management of the company will offer different discount benefits and services. For example, the management of the company will send offers to loyal coffee drinkers. The loyal customers who will use their re-useable cups they will be given coupons and offers. Through this way, the customers will feel reward, and they will help to reduce the waste in minimum quantity. Moreover, the company will also use the cost-cutting strategy. The prices of disposable cups will be high while ceramic cups will be low. Through this way, customers will tend to purchase low price cups as compared to high price cups.
Now, this overall environmental management plan will be developed by the management of the company while at the end, it will be examined and go through by the upper management. The company will strive to make the environment-friendly, and this management plan will help to reduce waste. The packaging of the product will be effective as well as cost-efficient. Overall, the environmental management plan will mainly focus on reducing environmental pollution.
Financial Plan
According to the previous year assessment, the company is continuously growing like its total assets are $23,352.5 increases from the year 2017 to 2018. This shows that during this year, the company buy new assets and also expand its business. The net income of the company is decreased by 11% due to a large number of expenses faced by the company. On the basis of the last two-year performance, it will become easy to estimate the working of the company in 2020 and 2021. In order to critically analyze the financial performance of the new business, Evasons Coffee in the next two years, there is a need to make some projection of the balance sheet, income and the cash flow statement of the company. Its financial projections are given below;
| Projected Income Statement | ||
| 2020 | 2021 | |
| Sales | $332,500 | $415,625 |
| Cost of goods sold | $56875 | $71,093.75 |
| Gross Profit | $275,625 | $344,531.25 |
| Expenses | ||
| Wages | $79,800 | $79,800 |
| Advertising | $6668.75 | $7335.94 |
| Depreciation | $25,000 | $25,000 |
| Motor Vehicle Expenses | $6650 | $7312.5 |
| Insurance | $3,700 | $4,070 |
| Rent | $78,780 | $78,780 |
| Others | $30,300 | $34,870 |
| Interest | $0.00 | $0.00 |
| Total Expense | $230,898.75 | $237,168.44 |
| Net Income before tax | $44,726.25 | $107,362.81 |
| Income Tax | $14,336.40 | $12,646 |
| Net Income after tax | $30,389.85 | $94.716.81 |
| Projected Balance Sheet | ||
| 2020 | 2021 | |
| Current Assets | ||
| Cash | $52,315.125 | $65,393.91 |
| Account Receivable | $3325 | $4156.25 |
| Inventory | $37,843.75 | $47,304.69 |
| Total Current Assets | $93,483.875 | $116,854.85 |
| Non-Current Assets | ||
| Fixtures and fittings | $160,000 | $160,000 |
| Accumulated Depreciation- Fixtures and fittings | ($16,000) | ($32,000) |
| Equipment | $20,000 | $20,000 |
| Accumulated Depreciation- Equipment | ($20,000) | ($4,000) |
| Motor Vehicle | $35,000 | $35,000 |
| Accumulated Depreciation- Motor Vehicle | ($7,000) | ($14,000) |
| Total Non-Current Assets | $190,000 | $165,000 |
| Total Asset | $283,483.875 | $281,854.85 |
| Current Liabilities | ||
| Account Payable | $2275 | $2843.75 |
| Total Current Liabilities | $2275 | $2843.75 |
| Long-term Liabilities | ||
| Loan | $0.00 | $0.00 |
| Total long term liabilities | $0.00 | $0.00 |
| Total Liabilities | $2275 | $2843.75 |
| Owner’s equity | ||
| Share Capital | $175,000 | $175,000 |
| Retained Earnings | $78,708.875 | $98,386.09 |
| Total Owner’s Equity | $253,708.9 | $273,386.09 |
| Total Liabilities and Owner’s Equity | $283,483.875 | $281,854.85 |
| Projected Cash Flow Statement | ||
| 2020 | 2021 | |
| Cash Flow from Operating Activities | ||
| Collection from customers | $698,800 | $873,500 |
| Payments to Suppliers and Employees | ($327,619) | ($135,800) |
| Other Operating Payments | ($126,788) | ($89,495) |
| Interest Payments | $0.00 | $0.00 |
| Income Tax | ($13,281.975) | ($13,946.07) |
| Net cash provided from operating activities | $231,111.025 | $662,151.07 |
| Cash Flow from Investing Activities | ||
| Fixtures and Fittings | ($160,000) | $0.00 |
| Equipment | ($20,000) | $0.00 |
| Motor Vehicles | ($35,000) | $0.00 |
| Net Cash used by investing activities | ($215,000) | $0.00 |
| Cash Flow from Financing Activities | ||
| Capital contribution | $175,000 | $0.00 |
| Net cash provided from financing activities | $175,000 | $0.00 |
| Net Cash Increase/ (Decrease) | $11,204.60 | $30,647.50 |
| Cash at Commencement | $0.00 | $11,204.60 |
| Cash Balance at End | $202,315.625 | $704,003.17 |
So, in order to overcome all the projected cost and expenses of this Evasons Coffee Company, there is a need to get a certain amount of loan from the local bank. In order to open successful business palm of the coffee shop, there is a need to make a proper plan regarding how to build the café, its relevant design, create a floor plan, hire the accountant and other related employees, get the finance from the local bank franchise or used any safe money in such type of business. In this type of business, there is a need of certain amount of money in order to start a business. There are approximately $500,000 is required in order to start a new coffee-based business in the market. This loan amount will be helpful in order to overcome all the expenses regarding the hiring of new employees, rent a business.
This loan amount can be fulfilled either by getting a loan from the financial institution with the affordable interest rate. In order to get the financing, this business will get a loan in the form of using the credit card, pledging, mortgaging, factoring the loan, attracting the angel investors, trying the crowdfunding, securing an SBA loan, get a microloan and raising money by getting some loan from the family members and friends. The major aim of these types of loan is to purchase different types of equipment like the espresso machine, coffee brewers, regular coffee grinder, espresso grinder, ice tea brewers, frappe and smoothie blender, ice tea dispensers and hot water dispenser etc. the interest rate of the loan amount must be within the range of 5% to 8% interest rate.
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