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Content
Content 1
1.0 Executive summary 3
2.0 Introduction 3
3.0 Description of the new venture 4
3.1 The name of coffee shop 4
3.2 Target market 4
3.3 Location 4
3.4 Design of the coffee shop 5
3.5 Product and service delivered 5
3.6 Legal form 5
3.7 Objective 7
4.8 The time of opening and scale of staff 7
4.0 Environment analysis 8
4.1 external analysis (PEST) 8
4.2 internal analysis 8
5.0 Operation plan 9
5.1 Logistic of raw material 9
5.2 Delivery of goods to customers 9
5.3 Differentiation 9
6.0 Marketing plan (4P's) 10
6.1 Product 10
6.2 Price 10
6.3 Place 10
6.4 Promotion 11
7.0 Financial plan 11
7.1 Important assumption 11
7.2 Break-even analysis 11
8.0 Conclusion 12
9.0 Appendix 12
9.1 Projected cash-flow statement 12
9.2 Projected balance sheet in the first 12 months 13
References 13
1.0 Executive summary
指导留学生作业It is said that preparedness ensures success and unpreparedness spells failure. It is necessary to make a plan of investing a fresh business. A coffee shop has no exception.
The business plan is to make a specific scheme for the owner. Firstly, it will help the owner clear their disordered thinking. Secondly, a successful business plan can attract additional investors to resolve the capital shortage or increase the scale of the business.
2.0 Introduction
As we known, Hong Kong is an open market which is mixed with both eastern and western culture. In this melting pot, the lifestyle is character with mixture. Coffee is original from European; nowadays it is more and more popular among the youth and white collars. The life pace in Hong Kong is so quick that more and more people believe the private space is deprived by job. Even at home they do not think the relaxation is sufficient to enjoy. They need extra entertainment channels to release their pressure. Coffee shop is a nice choice for many people. In the restful aerosphere they can clear up excursive mood and think about some issues. To some extent, it is not the coffee itself matter but rather the ambience and status experience.
Although it is a competitive industry to invest, not all investor can make the business successful. Only well preparation make operation prefect. To avoid blindness conduction, it is necessary to make a business plan.
3.0 Description of the new venture
3.1 The name of coffee shop
The theme of the coffee shop is a relaxation space or a private place. Since the name must show an intimate and warm impression. We name the coffee shop as "Hola coffee".
3.2 Target market
Hola coffee will focus its operation on office workers(68%)、people pass-by (15%)、some business people（10%）and others (Stefano Ponte, 2002). #p#分页标题#e#
3.3 Location
Location is important for any start-up. For some industry, the first consideration of the location is transportation. And the core location is waste for them. In contract, some industry must locate in the city center where the people flow can guarantee its survival. Coffee shop is belonging to the second situation. The site must be selected near the target market (Sharon and Kevin , 2003). Hola coffee is planning to site in the Central and Western district which is the most flourishing area and also is business center. The specific location will be on the ground floor of office building where also should be near the business center.
3.4 Design of the coffee shop
The hola coffee shop will be distributed into four parts: the core part is the customer area which will occupy 55% of the whole proportion, the second is the production area we will give it 20% proportion. 15% of the whole will be arranged to be customer service area. The last 10% will be designed to be take-out shop (Niklas, 1997).
3.5 Product and service delivered
The product in the coffee shop is various beverage, such as coffee、soft drink、juice and so on. Coffee is the primary delivery. The main kinds of coffee we plan to provide are latte、mocha、http://www.ukassignment.org/ cappuccino、espresso、macchiatio and so on.
For the key star coffee product, the plan will make a reasonable and competitive price. Cafe Mocha, A Cafe Latte combined with Ghirardelli chocolate, topped with whipped cream and chocolate shavings. For the regular, the price will be fixed to 25 HKD. Cappuccino is character with a smooth topping of milk foam. And the product is the most popular. So the price must be common. It will be 20 HKD. The espresso is also a main product for our operation. the price will be 20 HKD.
3.6 Legal form
The coffee shop is a limited liability corporation. In the first stage, I am the only ownership of the coffee shop. The invest fund is made up of my private fund and bank loan. My private capital is $300,000. In addition, I will borrow a more 200,000 from the bank.
The probable usage of the capital is shown bellowing (www.bplans.com).
Start-up Requirements unit: HKD
Start-up Expenses Legal 1,300
Equipment 59,170
Espresso machine 6,000
Coffee maker 900
Coffee grinder 200
Food service equipment 18,000
Etc and others 34070
Stationery etc 2000
Brochures 6,580
Consultants 5,000
Insurance 4,400
Decoration 20,000
Coffee training fee 10,000
Rent 5,400
Remodeling 20,000
Other 5,000
Total Start-up Expenses 182,920
Variable cost
Utilities 2,000
Salary of staff 22,400
Start-up Assets Cash Required 149,040
Start-up Inventory 39,027
Milk 12,000
Coffee bean 15,000
Sugar 8,000#p#分页标题#e#
Others 4,027
Other Current Assets 0
Long-term Assets 81,170
Total Assets 269,237
Total Requirements 474,487
3.7 Objective
Short period objective
In the first two years, the capital put in the coffee shop can be earned back.
Some stable customer group is established.
The profit can be maintained in a stable level such as 60% gross margin.
Long period objective
The target consumers regard our coffee shop as the first place to relax or entertainment.
Make the name of the coffee shop to be a brand.
4.8 The time of opening and scale of staff
For a fresh venture, the chance be choice is important. It is waste to avoid peak time of operation. For coffee industry, the peak time is spring and summer. As in the season, more people like going out and relaxing in the public. On the contrary, in the winter people always stay indoor and in result of the induction of coffee consuming. The elementary time is planned in April.
In the beginning of the business, the quantity of staff is planned to be controlled among 10 including of the barista. In the kitchen, there will be a barista and a Kitchener who is in charge of staple food. Then the manager is important for a startup. It is necessary to employ two key experienced managers which are operational and financial. The left vacancy are servers.
4.0 Environment analysis
4.1 external analysis (PEST)
Political
In Hong Kong, there is perfect legal system to maintain an ordered invest environment. So it is paradise for entrepreneurs. Also, the tax rate in Hong Kong is low (government statistic). And the tax system is simple to learn.
Economic
Coffee industry in Hong Kong is in the stage of growth. The target market is not only limited among the youth. Even some business people choose coffee shop to negotiate instead of on the drinking-table (Chanakya1andAlwis, 2004). In one world, coffee shop is in keeping with the economic trend.
Society
In Hong Kong, the pace of work is so rapid that more and more pressure decreases the happiness of most modern people. They need a space to release their pressure and mood.
Technology
For catering industry, technology may be the first core competition for success. So a professional coffee master is a must requirement.Creative is necessary for the coffee skill.
4.2 Internal analysis
Strength
Delicacy is the signboard of Hola coffee, which make the every product delivered for customer is in high quality.
Location advantage.
Weakness
Be a new entry, there is not clientele basement which need accumulated from zero depending on the quality product and service.
5.0 Operation plan
5.1 Logistic of raw material
Quality coffee is in determined by several processes, among which the source is vital for the taste. For an exquisite small coffee shop quality guarantee must be grasped from every step. The best way to ensure the quality of coffee bean we should establish a long period cooperation with some reliable suppliers (Durand2 and Suárez-Quiroz, 2010).#p#分页标题#e#
5.2 Delivery of goods to customers
From the zero beginning, the Hola coffee must maintain a favorable relationship with its clientele. Given this, the manager must learn of the demands of their customers. Some survey is necessary in the beginning. In the following operation, a nice way to learn the request of customers is chatting with them or be friends with them. Also it is effective to establish a club for the clientele to shorten the distance with the customer.
5.3 Differentiation
To make success in the competitive environment, it is a must to find the key indicates of the coffee shop itself. There are so must huge competitors in the current market such as Starbuck. The coverage is so wide in the worldwide that other similar company must differ from it to attract its specific target customers. Only this can compete for some profit space.
6.0 Marketing plan (4P's)
6.1 Product
The whole product we delivered will be distributed into two kinds, they are beverage and food.
The beverage menu is as following: latte、mocha、cappuccino、espresso、macchiato and so on.
Food is the subsidiary portion for the coffee shop but it should not be ignored, in another words, the every product delivered by Hola should be quality. The menu is made up of snake、pastries、beefsteak、pisa and so on. The menu should be adjusted according to the customers' demand.
6.2 Price
As it is conveyed, the average cost of a cup of coffee in some international chains is between 30 HKD and 40 HKD. (Lars and Franz, 2006). To be more competitive, the price will be fixed on the bottom of the average level 30 HKD.
6.3 Place
The place here means the channel of the coffee shop, which consist of raw material logistic and products dispatching. For the raw material, it is the key of the quality of the coffee taste. The first step is to learn of the source of the tiptop coffee coin nearby the Hong Kong areas. Then establish the long cooperation relationship between the suppliers to gain a considerable price.
6.4 Promotion
The advertisement must focus on the target customer; otherwise the effect will not be so evidence. The first promotion should aim at the office building. And the take-out product is the primary advertisement target. The salesmen are dedicated to persuade the managers to order some working lunch. The next medium is the elevator of the office building. Then the outside of the coffee shop must be utilized fully to attract the passersby.
7.0 Financial plan
7.1 Important assumption
The 20-year record of positive growth for specialty coffee drinking will continue at a healthy rate. ( Elaine, 2007).
Coffee drinks will continue to be considered an "affordable luxury."
General assumptions
Tax ratio: 30% Current interest rate: 3% Long-term interest rate: 3%
Average fixed cost per unit = 23.48 HKD variable cost per unit = 26.52 HKD
Assumed quantity = 19530 total fixed cost = 221889 (Jeff Neilson, 2008). #p#分页标题#e#
7.2 Break-even analysis
Breakeven point is the bottom line of the operation. The point distributes the coordinate into two areas. Under the break-even point it is a warning for managers. The areas above the point are the profit zone.
Break-even point = Fixed expense / (sale price – variable cost per unit) According to the assumption, we can got the break-even point easily.
Break-even point = 23406
The result of the calculation means that the Hola coffee shop must keep the sale volume above 55051 per year or else it will result of a loss.
8.0 Conclusion
As the proverb said that everything is pre-legislation, while not pre-waste. A thoughtful business plan can make the business clear and safe.
After a chain of analysis, we can see the prospect of the Hola coffee shop. Especially see from the cash-flow and balance sheet, we have the confidence to gain a big profit space in the next few years.
9.0 Appendix
9.1 Projected cash-flow statement
Cash is the most liquid among the assets. It is the most effective when the operation is in difficult. Specially, for a start-up business. In this business plan, the cash flow in one year is given to establish a confidence of the Hola coffee shop for the investors.
Cash received (unit: HKD)
Cash from operation (sales) 1,005,795.00
Additional Cash Received 0
new current borrowing 0
New other liability 0
Sales of other current assets 0
Subtotal cash received 1,005,795.00
Expenditure
Rent 12,300.00
Wages and remuneration 130,000.00
Depreciation of tangible assets 82,000.00
Advertisement and promotion 30,000.00
Utility (lighting and heating etc) 48,000.00
Subtotal expenditure 192,300.00
Net cash flow 813,495.00
9.2 Projected balance sheet in the first 12 months
Balance sheet
(Unit: HKD)
Furniture and fitting 246,000.00
Inventory 44,000.00
Cash at bank 198,000.00
Total asset 488,000.00
Bank loan payable 163,410.00
Trade payable 107,000.00
Owners' equity 218,590.00
Total liability and owners' equity 488,000.00
References
Stefano Ponte, 2002, World Development, The ‘Latte Revolution'? Regulation, Markets and Consumption in the Global Coffee Chain, Volume 30, Issue 7, Pages 1099-1122
Sharon Cullinane and Kevin Cullinane, 2003, Cities, Hong Kong city profile, Volume 20, Issue 4, Pages 279-288)
Niklas Andersson, 1997, Computers in Industry, Design principles for open and reusable shop-floor control software, Volume 33, Issues 2-3, Pages 285-293
http://www.bplans.com/sample_business_plans.cfm
http://www.gov.hk/en/business/
H.N.Chanakya1,and A.A.P. De Alwis, 2004, Process Safety and Environmental Protection, Environmental Issues and Management in Primary Coffee Processing, Volume 82, Issue 4 Pages 291-300#p#分页标题#e#
N. Durand2 and M. Suárez-Quiroz, 2010, Food Control, Effect of two different roasting techniques on the Ochratoxin A (OTA) reduction in coffee beans (Coffea arabica), Article in Press
指导留学生作业Lars Heina, and Franz Gatzweiler, 2006, Ecological Economics, The economic value of coffee (Coffea arabica) genetic resources, Volume 60, Issue 1, Pages 176-185
Elaine M Aldred, 2007, A Guide to Starting Your Own Complementary Therapy Practice, Financial considerations for your business plan, 2007, Pages 153-202
Jeff Neilson, 2008, World Development, Global Private Regulation and Value-Chain Restructuring in Indonesian Smallholder Coffee Systems, Volume 36, Issue 9, Pages 1607-1622
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