• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Coffee Paradise Internet Cafe -Business Plan and Finances

Extracts from this document...

Introduction

Coffee Paradise 25 High Street, Luton, LU1 222 Tel. 01582 12345 Fax: 01582 23456 Business Plan Contents Introduction Marketing plan Operational plan Financial plan Evaluation and contingencies Introduction Business idea and aims The business will be selling fresh coffee and fresh made cakes. It will also provide WI-FI connection for customer who wants to use their laptops or notebooks while at the cafe. Our aim is to: * Provide the highest possible service to our customers * Establish a reputation for excellence * Concentrate on quality of our service * Maximise profits Management details Key people: Ewelina K - management and marketing Experience - 3 years working as marketing manager Qualifications - BTEC 1st Diploma in Business Patricia B - sales and customer service Experience - 2 years working as a sales assistant Qualifications - BTEC 1st Diploma in Business Legal structure The business will operate as follows: Legal structure: Sole-Trader Trading as: Coffee Paradise Business address: 25 High Street, Luton, LU1 222, Telephone: 01582 12345 The Sole-Trader structure will enable the owner to set up the business at law cost whilst keeping regulatory requirements to a minimum. Start up finance will be raised as follows: Owner`s capital: �15.000 Bank Loan: �10.000 Total: �25.000 It is intended that the owner retain control of the business. ...read more.

Middle

Since our aim is to establish a reputation for quality we will put every effort to achieve it. Physical resources Capital expenditure: The following assets will be purchased at start: Cost (�) Shop equipment (tills, shelves, coffee makers, tables and chairs) 18.000 Office furniture: 2200 Computer, printer 2300 Total capital expenditure 22500 Premises: The premises rented have appropriate space and facilities for the business. Materials, stock: Materials will be purchased from local suppliers who provide same day delivery. Financial resources: 22.500 of start up capital will be raised as shown in the introductory section. The owner hopes to arrange credit terms with the supplier, although this may not be possible in the early stage of the business. Overhead costs: Estimated for the first six months are: Human resources: Mrs. K will concentrate on marketing, management and finance of the business. Miss B will be involved in sales and customer service. The owner will take drawings of �650 a month. Fresh cakes will be made and delivered by Hanna`s Bakery. Legal plan: The premises are already designed for commercial use and comply with health and safety regulations. The premises will not cause any disruption to neighbouring properties and there is space for loading and parking. Employment law are applicable as there will be one person employed by the business, however employment contract will be prepared according to statutory requirements. ...read more.

Conclusion

Additional funding of �250 will be needed in the initial stage and the business hopes to obtain an overdraft from the bank. Profitability The business will break - even at 2504 units ( customers) and generate a net profit of �4843 for the 6 month period. This will enable the owner to take drawings and plough back to for future growth. Assuming the overdraft is forthcoming the business plan is viable. The owner is prepared to operate with minimal drawings during the first year. Monitoring and review The financial forecast will be monitored on monthly basis Contingencies The owner feels that there is a little risk in this business proposal; the sales forecast is based upon business orders and there will be no unmanageable debt. The plan is to grow business gradually. Nevertheless the following contingency plans are in place: * In event of cash shortages the business the owner is prepared to forego drawings during the first 6 months * Any cash surplus will be invested by the business * In case of increase in cost of materials the business will change to cheaper suppliers * The business will arrange suitable insurance, and to avoid high upfront cost the premium will be spread into monthly instalments * Increase in demand - the business is prepared for growing demand. In case in significant increase in demand the business will expand further * The business will arrange one month credit terms with the suppliers to improve cash flow ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Case Studies and Analysis section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Case Studies and Analysis essays

  1. Microsoft Case Study. Objectives, structure and marketing.

    Normally products in a product life cycle which have reached the decline stage could be put under this heading. Products under this heading will normally absorb cash which is generated from other products. These products could be said as the break-even units as they make barely enough cash to keep small amount of market share.

  2. Business Plan window cleaning

    As, a sole trader, I must register to the Inland Revenue (IR) which include, income tax, national insurance, VAT, etc. So, I will have to pay the income tax on my business profits. Then I have to pay for the VAT when my turnover reached a limit in any 12 mouths.

  1. Marketing plan for Trung Nguyen coffee company.

    This is a long-term trend. 1.1.4 Market Growth South Korea's still at the early stage of development when it comes to quality coffee. So there's still huge room for growth. The Information Center for Agriculture and Rural Development (AGROINFO) forecasts that Korean will continue to increase its coffee import turn-over and the country is included

  2. Unit 9: Marketing Strategy

    send questionnaires to people living in Sutton as it would be more relevant to them, the other is that people in Sutton would be more likely to answer and submit a questionnaire on a bakery in Sutton as it concerns them more.

  1. btec business unit 3

    When Coca Cola release a new drink they make it aware for the public by going into the high street of towns and attracting the public by having parades, loud music and free testers. Business organisations use professional advertising agencies for the promotion of their business.

  2. Small Business Strategies - identifying the target market, necessary skills, plans for development and ...

    The wealth of technological equipment which is to be utilised means that I and my employees require excellent computing and software skills/knowledge. If these skills are not up to scratch, it could cause a seriously affect the level of service and quality the business can offer to its customers.

  1. NHS change management

    Gradually we see that the participation and commitment has increased but it is still not at par with the amount of commitment required. As per the model, at any given point in time there are three dimensions to change. Things are ending, new aspects are emerging and others are in a constant state of change.

  2. Assignment 1 - Understand the legal requirements for a valid contract

    Sarah then immediately wrote and posted a letter to Beth accepting the original terms. This letter was lost in the post. The Postal rule is a rule of contract law that makes an exception to the general rule that an acceptance is only created when communicated directly to the offeror.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work