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Coffee Paradise Internet Cafe -Business Plan and Finances

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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.


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.


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.

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