Business Plan
YE OL’ COFFEE - RENAISSANCE COFFEE SHOP.
BREW FOR YOU - MODERN DAY COFFEE SHOP.
I.Executive Summary
Write this section last.
We suggest that you make it 1 page.
Include everything that you would cover in a five-minute interview.
Explain the fundamentals of the proposed business: What will your product be? Who will
your customers be? Who are the owners? What do you think the future holds for your
business and your industry?
Make it enthusiastic, professional, complete, and concise.
If applying for a loan, state clearly how much you want, precisely how you are going to use it,
and how the money will make your business more profitable, thereby ensuring repayment.
OUR COFFEE SHOP, BREW FOR YOU, WILL SELL EVERYTHING FROM COFFEE
TO SOUPS. WE HAVE DECIDED TO TARGET THE TEENAGE AGE GROUP. OUR
OWNERS WILL BE TOMMIE QUAILS AND JOSE PEREZ. IN THE FUTURE I BELIEVE
THAT OUR COFFEE SHOPS COULD BE WORLD WIDE AND EVERYONE WILL DRINK
OUR COFFEE AROUND THE WORLD. OUR OWNERS ARE EXTREMELY EXCITED AND
ENTHUSIASTIC ABOUT WHAT THE FUTURE MAY BRING AND WHAT WE ARE GOING TO
BE ABLE TO ACCOMPLISH.
II.
General Company Description
What kind of business will you have? What will you be selling?Mission Statement: Many
companies have a brief mission statement, usually in 30 words or fewer, explaining their reason
for being and their guiding principles. If you want to draft a mission statement, this is a good
place to put it in the plan, followed by:
Company Goals and Objectives: Goals are destinations—where you want your business to be.
Objectives are progress markers along the way to goal achievement. For example, a goal might
be to have a healthy, successful company that is a leader in customer service and that has a
loyal customer following. Objectives might be annual sales targets and some specific measures
of customer satisfaction.
Business Philosophy: What is important to you in business?
To whom will you market your products? (State it briefly here—you will do a more thorough
explanation in the Marketing Plan section).
Describe your industry. Is it a growth industry? What changes do you foresee in the industry,
short term and long term? How will your company be poised to take advantage of them?
Describe your most important company strengths and core competencies. What factors will
make the company succeed? What do you think your major competitive strengths will be? What
background experience, skills, and strengths do you personally bring to this new venture?
WE WILL BE MAKING A COFFEE SHOP IN THE RENAISSANCE AND IN MODERN TIMES.
WE WILL BE SELLING COFFEE.
OUR MISSION STATEMENTS ARE:
● RENAISSANCE:
OUR PURPOSE IS TO PROVIDE A NEW COFFEE SHOP. THOU SHALL DRINK
THY KNOWN COFFEE AND COME HITHER EVERY DAY FOR A CHANCE TO
LOOSEN UP. WE ARE HOPING TO CREATE A MARRY ENVIRONMENT THAT
BOTH THE YOUNG AND OLD WILL ENJOY!
● MODERN:
OUR PURPOSE IS TO PROVIDE A NEW COFFEE SHOP WITH A MODERN FEEL. WE
WANT TO BE A PLACE YOU VISIT EVERY DAY. WE WILL ALLOW THE COMMUNITY TO
USE OUR FREE WI-FI FOR THEIR PERSONAL USE.
III.
Products and Services
PRODUCTS:
● RENAISSANCE:
DRINKS: DIFFERENT SIZES UNAVAILABLE. (PRICES OF ITEMS IN BRITISH POUND)
WINE, 3 GBP
BEER, .60 GBP
HERBAL TEA, .40 GBP
MEAD ( Honey wine ), 3.5 GBP
COFFEE, .40 GBP
CIDER, 1 GBP
SPICED WINE, 1.7 GBP
FRUIT JUICES, .40 GBP
MILK, .40 GBP
WATER. FREE
Food:
Soup .60 GBP
PASTRIES:
MEAT PIES
GINGERBREAD, 2.5 GBP FOR WHOLE LOAF .40 GBP FOR A SLICE
CHEESE AND FLOUR CAKE, 4.50 GBP FOR WHOLE CAKE 1 GBP PER SLICE
MODERN COFFEE SHOP
BREW FOR YOU:
DRINKS:
COFFEE,
MILK,
WATER, FREE
TEA,
JUICES,
HOT CHOCOLATE,
LATTES,
ICED COFFEE,
CAPPUCCINOS,
SMOOTHIES,
ALL DRINKS BESIDES WATER:
$2.00 SMALL $2.50 MEDIUM $3.00 LARGE
FOODS:
SANDWICH'S, $2.50
SOUPS, $2.00 FOR CUP. $3.00 FOR BOWL.
DESERTS:
PASTRIES, $3.00 FOR 2 PASTRIES
CAKES, 2.50 PER PIECE
BROWNIES, $1.50 PER BROWNIE
DONUTS, $2.00 PER DONUT
COOKIES, 3 FOR $2
ICE CREAM:
WAFFLE BOWL $2.00 (ADD CANDY FOR 50 CENT)
CONE $1.50
SHAKE $2.50 VANILLA, CHOCOLATE.
OR MIXED WITH YOUR CHOICE OF CANDY, $3.00
OUR COFFEE IS CHEAPER THAN DUNKIN’ DONUTS AND OUR ICE CREAM IS
CHEAPER THAN DAIRY QUEEN. WHICH GIVES OUR SHOP THE ADVANTAGE OF
HAVING BETTER PRICES FOR GOOD FOOD AS WELL. THEN OUR DISADVANTAGES
ARE THAT WE DO NOT HAVE ALL THE CHOICES THAT DAIRY QUEEN AND DUNKIN’
DONUTS HAVE BUT AS WE ADVANCE WE WILL HAVE MORE AND MORE CHOICES AND
PRETTY SOON MORE THAN BOTH DUNKIN’ DONUTS AND DAIRY QUEEN.
.IV.
Marketing Plan
Market research - Why?
No matter how good your product and your service, the venture cannot succeed without
effective marketing. And this begins with careful, systematic research. It is very dangerous to
assume that you already know about your intended market. You need to do market research
to make sure you’re on track. Use the business planning process as your opportunity to
uncover data and to question your marketing efforts. Your time will be well spent.
WE ARE MAKING A COMMERCIAL AND A PRINT AD.
THE COMMERCIAL IS FOR THE MODERN DAY COFFEE SHOP AND THE FLYER'S ARE
FOR THE RENAISSANCE COFFEE SHOP.
Market research - How?
There are two kinds of market research: primary and secondary.
Secondary research means using published information such as industry profiles,
trade journals, newspapers, magazines, census data, and demographic profiles. This
type of information is available in public libraries, industry associations, chambers of
commerce, from vendors who sell to your industry, and from government agencies.
Start with your local library. Most librarians are pleased to guide you through their business
data collection. You will be amazed at what is there. There are more online sources than you
could possibly use. Your chamber of commerce has good information on the local area. Trade
associations and trade publications often have excellent industry-specific data.
Primary research means gathering your own data. For example, you could do your own
traffic count at a proposed location, use the yellow pages to identify competitors, and
do surveys or focus-group interviews to learn about consumer preferences. Professional
market research can be very costly, but there are many books that show small business owners
how to do effective research themselves.
In your marketing plan, be as specific as possible; give statistics, numbers, and sources. The
marketing plan will be the basis, later on, of the all-important sales projection.
WE ARE MAKING A COMMERCIAL AND A PRINT AD.
Economics
Facts about your industry:
·
What is the total size of your market?: SMALL
·
Current demand in target market.: COFFEE
·
Trends in target market—growth trends, trends in consumer preferences, and trends in
product development.
·
Growth potential and opportunity for a business of your size.
·
How could the following affect your company?
o
Change in technology: MAKES THE JOB OF BREWING AND GRINDING COFFEE
MUCH EASIER.
o
Change in government regulations: THIS COULD EFFECT US BY MAKING US
UPGRADE OUR AND BRING EVERYTHING TO REGULATIONS AND UP TO CODE.
o
Change in the economy:THE ECONOMY IS GOING DOWN AND THIS COULD EFFECT
OUR POSSIBLE INCOME.
o
Change in your industry: WE ARE A NEW STORE AND PEOPLE MAY BE HESITANT
TO TRY US.
Product
Features and Benefits
List all of your major products or services. COFFEE, SMOOTHIES, SNACKS, SUCH AS ICE
CREAM, CAKE SNACKS, HOMEMADE DONUTS.
For each product or service:
·
Describe the most important features. What is special about it? NOT ONLY ARE OUR
ITEMS CHEAPER BUT MANY PEOPLE SAY THEY TASTE BETTER THAN DUNKIN’
DONUTS AND STARBUCKS BECAUSE THEY ARE NOT SO STRONG AND FAKE. OUR
COFFEE IS REAL AND MADE BY OUR COFFEE BEANS. THEN OUR DONUTS ARE ALSO
HOMEMADE NOT MADE IN A FACTORY. WE ALSO PROVIDE FREE WI-FI FOR PEOPLE
WHO CAN NOT AFFORD INTERNET AT HOME THEY CAN COME TO A RELAXING
ENVIRONMENT.
·
Describe the benefits. That is, what will the product do for the customer? THE BENEFIT
IS THAT THE PRICE IS CHEAPER THAN DUNKIN’ DONUTS THEREFOR YOU SAVE
MONEY WHILE STILL HAVING A VERY GOOD CUP OF JOE, AND GOOD FOOD TO GO
ALONG WITH IT. ANOTHER BENEFIT IS FREE WI-FI.
What after-sale services will you give? Some examples are delivery, warranty, service
contracts, support, follow-up, and refund policy.
AFTER SALE SERVICES WOULD BE THAT IF THEY DO NOT LIKE THE COFFEE THEY
CAN RETURN IT FOR ANOTHER COFFEE BUT ONLY GOOD FOR ONE TRADE-IN.
Customers
OUR TARGET COSTUMERS ARE PEOPLE 12+. WE WANT THEM TO BE COMFORTABLE
AND FEEL LIKE OUR PRICES ARE AFFORDABLE. WE ARE LOCATED 5135 West Ridge
Road Gary, IN 46408-1325. WE PLAN TO SELL TO THE COSTUMERS OUR COFFEE AND
WE DON’T PLAN ON SELLING TO ANOTHER BUSINESS OR STORES. WE PLAN TO SELL
DIRECTLY TO THE COSTUMERS. WE WILL HAVE DIFFERENT GROUPS OF DIFFERENT
AGE RANGES.
·
·
·
Age: 12+
Gender: BOTH
Location: RENAISSANCE: NEXT TO THE SISTINE CHAPEL
THE MODERN DAY TIMES IS IN: 5135 West Ridge Road Gary, IN 46408-
1325
●
·
Income level: above $50,700
Social class and occupation IS GROUP OF PEOPLE WITHIN A SOCIETY POSSESS
THE SAME SOCIOECONOMIC STATUS. WE ARE A BASIC.
·
Education:basic KNOWLEDGE/ HIGH SCHOOL DIPLOMA
·
Other (specific to your industry): 5 YEARS IN THE INDUSTRY
·
Other (specific to your industry): BUSINESSES EDUCATION
For business customers, the demographic factors might be:
·
Industry (or portion of an industry): WHOLE
·
Location: CHICAGO
·
Size of firm: LARGE
·
Quality, technology, and price preferences: GREAT QUALITY, LOW PRICES, AND
FREE WI-FI
·
Other (specific to your industry): HARD EXPERIENCED WORKERS
·
Other (specific to your industry): LOW QUALITY PRICES.
Competition
What products and companies will compete with you?
List your major competitors:
DUNKIN’ DONUTS-6060 WEST RIDGE ROAD GARY, INDIANA 46408
STARBUCKS-10451 INDIANAPOLIS BLVD HIGHLAND, INDIANA 46322
Will they compete with you across the board, or just for certain products, certain customers, or
in certain locations?
THOSE TWO SHOPS WILL DEFINITELY COMPETE WITH US ACROSS THE BOARD. WE
ARE BOTH SELLING A LOT OF THE SAME ITEMS, EXCEPT OURS WILL BE AT LOWER
MORE AFFORDABLE PRICES.WE WILL TARGET A LOWER AGE GROUP WHICH MEANS
WE WON’T NECESSARILY HAVE ALL OF THE SAME CLIENTS.
Will you have important indirect competitors? (For example, video rental stores compete with
theaters, although they are different types of businesses.)
WE WILL HAVE TO COMPETE WITH EVERY FAST FOOD RESTAURANT THAT SELLS
COFFEE AND BREAKFAST IN THE MORNING.
How will your products or services compare with the competition?
OUR PRODUCT PRICES ARE MADE SO THAT THE AVERAGE TEENAGER COULD
AFFORD, SO OUR PRICES WILL BE LOWER.
Use the Competitive Analysis table below to compare your company with your two most
important competitors. In the first column are key competitive factors. Since these vary from one
industry to another, you may want to customize the list of factors.
In the column labeled Me, state how you honestly think you will stack up in customers' minds.
Then check whether you think this factor will be a strength or a weakness for you. Sometimes
it is hard to analyze our own weaknesses. Try to be very honest here. Better yet, get some
disinterested strangers to assess you. This can be a real eye-opener. And remember that you
cannot be all things to all people. In fact, trying to be causes many business failures because
efforts become scattered and diluted. You want an honest assessment of your firm's strong and
weak points.
Now analyze each major competitor. In a few words, state how you think they compare.
In the final column, estimate the importance of each competitive factor to the customer. 1 =
critical; 5 = not very important.
itiTable ve Analysis
Factor
Products
Price $
M1:
Compete
COFFEE, SMOOTHIES, SNACKS,
SUCH AS ICE CREAM, CAKE SNACKS,
HOMEMADE DONUTS
Strength
Weakness
Dunkin’
Donuts
Importance
to Customer
HOMEMADE
ITEMS.
CHEAP
PRICES.
NOT
AS WELL
KNOWN AS
DUNKIN
DONUTS.
WELL KNOWN
IN THE AREA.
OUR ITEMS
ARE BETTER
AND CHEAPER.
Quality
Selection
Service
premium imported coffee
donuts and coffee
Large selection from Pies
and
Cakes, to Beer and Coffee.
large selection of
donuts, coffee, and ice
cream
Serving customers at a convenient rate.having a fast rate
NOT
and the best quality AS WELL
KNOWN AS
DUNKIN
DONUTS.
Reliability
very reliable
Stability
Expertise
COFFEE
donuts
Company
Reputation
has been well known
for donuts for a long
time
Location
On
Appearance
Based on different cultures.
Sales
Method
Having different
types of cultural
foods & drinks
Advertisment
Credit
Policies
none
none
Advertising
Commercial & Newspaper ad
Commercial &
Newspaper ad
Image
Now, write a short paragraph stating your competitive advantages and disadvantages.
MODERN:SINCE OUR STORE LOCATION IS FAIRLY CLOSE TO OUR COMPETITORS, IT
MAY BE DIFFICULT TO GET OUT NAME OUT THERE AND TO GAIN MORE CUSTOMERS.
AN ADVANTAGE WOULD BE THAT WE WOULD DRAW CUSTOMERS AWAY FROM THE
OTHER PLACES AND TO COME TO OUR SHOP.
RENAISSANCE: THERE WERE REALLY NO COMPETITORS AROUND THE SISTINE
CHAPEL. THAT COULD BE AN ADVANTAGE AND A DISADVANTAGE. SINCE THERE
WERE NO COMPETITORS, WE WOULD GET ALL OF THE CUSTOMERS.
How will you get the word out to customers?
RENAISSANCE:
WE ARE GOING TO HAND OUT FLYER'S AND USE WORD OF MOUTH.
MODERN:
WE ARE GOING TO DO A NEWSPAPER ADD AND HAVE A TELEVISION COMMERCIAL
TO DRAW CUSTOMERS INTO OUR SHOP.
Advertising: What media, why, and how often? Why this mix and not some other?
Have you identified low-cost methods to get the most out of your promotional budget?
Will you use methods other than paid advertising, such as trade shows, catalogs, dealer
incentives, word of mouth (how will you stimulate it?), and network of friends or professionals?
What image do you want to project? How do you want customers to see you?
In addition to advertising, what plans do you have for graphic image support? This includes
things like logo design, cards and letterhead, brochures, signage, and interior design (if
customers come to your place of business).
Should you have a system to identify repeat customers and then systematically contact them?
MODERN:
WE WILL ADVERTISE OUR SHOP ON TELEVISION, IN THE NEWSPAPER, AND ON
THE INTERNET. OUR COMMERCIALS WILL PLAY A FEW TIMES A DAY ON MULTIPLE
POPULAR CHANNELS. IF WE TARGET THE MOST COMMONLY USED MEDIAS THEN
WE WILL GET OUT NAME OUT THERE FASTER AND PEOPLE WILL START COMING
INTO THE SHOP QUICKER. IT’S NOT CHEAP TO BUY ADVERTISEMENTS SO WE WILL
DO OUR BEST TO FIND CHEAP SPOTS AND ONE EXPENSIVE SPOT. WE CAN PUT OUR
ADVERTISING FLYERS ALL AROUND THE NEIGHBORHOOD,IN STORES, AND EVEN
A MAGAZINE ARTICLE. BY SENDING OUR FLYERS OUT, PEOPLE CAN GO AROUND
AND SHOW IT TO THEIR FRIENDS AND THEN WE WILL EVENTUALLY GAIN MORE
AND MORE CUSTOMERS. WE WILL DEFINITELY HAVE A STORE LOGO, IT WILL HELP
CUSTOMERS REMEMBER OUR STORE. OUR INTERIOR WILL BE A MORE MODERN
FEEL AND REFLECT WHAT GOES ON IN GARY IN A PROFESSIONAL MANNER. WE
WILL HAVE A COMPUTER SYSTEM TO REMEMBER AND KEEP TRACK OF ALL OUR
CUSTOMERS AND REGULAR REPEAT CUSTOMERS CAN BECOME MEMBERS AND
RECEIVE SPECIAL OFFERS AND DEALS.
RENAISSANCE:
THERE WASN’T ACTUALLY MEDIA IN THE 1500’S SO WE HAVE JUST DECIDED TO
SEND OUT FLAYER'S AND BROCHURES TO PEOPLE AND TRY TO GET OUR WORD
OUT. WE WILL SEND OUT FLYER'S AT LEAST EVERY 2 WEEKS TO KEEP HAVING OUR
BUSINESS POP UP. IF WE KEEP SENDING OUT FLYER'S, THE THOUGHT OF COMING
INTO OUR SHOP WILL KEEP POPPING INTO THEIR MIND AND HOPEFULLY THEY’LL
COME IN. FLAYER'S WON’T COST TO MUCH TO MAKE SO IT REALLY WON’T BE THAT
HARD TO MAKE THEM AND SEND THEM OUT. WE COULD ACTUALLY HIRE PEOPLE
AND GIVE THEM DEALS TO GO OUT AND PROMOTE OUR BUSINESS, IT WOULD BE
EASY TO HAVE OUR CUSTOMERS GO AND TELL EVERYONE ELSE ABOUT US. WE
WANT TO APPEAR AS A HOMEY ENVIRONMENT AND PORTRAY THE CULTURE AND
WHAT THE RENAISSANCE WAS REALLY ABOUT. SINCE TECHNOLOGY WASN’T VERY
COMMON AROUND THIS TIME, WE WILL HAVE TO HAND MAKE EVERY SIGN AND
FLYER. AS FOR INTERIOR DESIGN, WE WANT TO FILL THE PLACE UP WITH ART
PIECES AND LOTS OF BOOTHS TO SIT AT. WE WILL HAVE A DIRECTORY SO THAT WE
CAN IDENTIFY OUR REPEAT CUSTOMERS AND HAVE CONTACT INFORMATION.
Proposed Location
Probably you do not have a precise location picked out yet. This is the time to think about what
you want and need in a location. Many start ups run successfully from home for a while.
You will describe your physical needs later, in the Operational Plan section. Here, analyze your
location criteria as they will affect your customers.
Is your location important to your customers? If yes, how?
RENAISSANCE: WE DECIDED TO PUT THE STORE RIGHT NEXT TO THE SISTINE
CHAPEL BECAUSE THERE’S NO OTHER COFFEE SHOP THERE AND IT WOULD BE
PRIME LOCATION.
MODERN: WE WOULD PUT THE SHOP ON RIDGE ROAD IN GARY. A LOT OF PEOPLE
DRIVE ON THAT ROAD EVERYDAY AND IT WOULD BE GOOD FOR BUSINESS.
If customers come to your place of business:
Is it convenient? Parking? Interior spaces? Not out of the way?
BOTH SHOPS WOULD BE VERY CONVENIENT, WE SPECIFICALLY PLACED THEM IN
HIGH TRAFFIC AREAS TO ATTRACT CUSTOMERS AND BUSINESS.
Is it consistent with your image?
YES, THE BUSINESSES WITH REFLECT THE COMMUNITY AND THE CULTURE OF THE
NEIGHBORHOOD.
Is it what customers want and expect?
WE THINK CUSTOMERS WILL LIKE OUR SHOP AND EACH OF THE STORES WITH HAVE
A DIFFERENT FEEL TO REFLECT THE NEIGHBORHOOD.
Where is the competition located? Is it better for you to be near them (like car dealers or fast
food restaurants) or distant (like convenience food stores)?
FOR OUR RENAISSANCE STORE THERE ARE NO COMPETITORS REMOTELY CLOSE
TO THE SISTINE CHAPEL.
FOR OUR MODERN DAY SHOP THERE ARE A FEW SHOPS ON RIDGE THAT SELL
COFFEE, WE WOULD RATHER BE DISTANT FROM OUR COMPETITORS SO THAT
PEOPLE WOULD BUY OUR PRODUCTS INSTEAD OF OTHER SHOPS.
Inventory
·
What kind of inventory will you keep: raw materials, supplies, finished goods?
Modern: REFRIGERATION, COFFEE MAKER, PLATES, CUPS, NAPKINS, CHAIRS, TABLES,
DRINK:COFFEE= COFFEE BEANS, MILK=POWDERED & LIQUID, WATER=CLEAN PURIFIED
BOTTLES OF WATER, TEA=, JUICES, HOT CHOCOLATE, LATTES, ICED COFFEE,
CAPPUCCINOS, SMOOTHIES,