Business Plan. I.Executive Summary. General Company Description YE OL COFFEE - RENAISSANCE COFFEE SHOP. BREW FOR YOU - MODERN DAY COFFEE SHOP.
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1 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?
2 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
3 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
4 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
5 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
6 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 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 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:
7 DUNKIN DONUTS-6060 WEST RIDGE ROAD GARY, INDIANA STARBUCKS INDIANAPOLIS BLVD HIGHLAND, INDIANA 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 M1: Compete Strength Weakness Dunkin Donuts Importance to Customer Products COFFEE, SMOOTHIES, SNACKS, SUCH AS ICE CREAM, CAKE SNACKS, HOMEMADE DONUTS HOMEMADE ITEMS. CHEAP PRICES. NOT AS WELL KNOWN AS DUNKIN DONUTS. WELL KNOWN IN THE AREA. OUR ITEMS ARE BETTER AND CHEAPER. Price $
8 Quality premium imported coffee donuts and coffee Selection Large selection from Pies and Cakes, to Beer and Coffee. large selection of donuts, coffee, and ice cream Service Serving customers at a convenient rate. having a fast rate and the best quality NOT 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. Having different types of cultural foods & drinks Sales Method 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.
9 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
10 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
11 BOTTLES OF WATER, TEA=, JUICES, HOT CHOCOLATE, LATTES, ICED COFFEE, CAPPUCCINOS, SMOOTHIES,
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