Prior to start any business planning is needed. Sustenance of the business depends on the planning of the business. Failure of a business is due to the lack of business plans. Planning a business before the start is necessary to look over the future of the business and making the plan to sustain the business. A business plan also helps the investors have knowledge about the plan and to invest money or not. Due to the plan, investors will know about the risk factor in investing. Therefore, to establish a café store it is important to set up a business plan and it should be known that where and when it should be used to make a successful café. A plan with an advantage over the market should be established to gain success. As there are many café in the market. Therefore, to run a café store with an advantage would be a good idea as due to the heavy competition in the market (Burke, et al., 2009). “Cupidity café” is a project that will combine a coffee shop and a tea culture together. From a relaxing atmosphere for the comfort it will provide a morning cup of coffee to start a day and evening tea to relax with some refreshing snacks.
Production in the coffee house includes the coffee and tea with some light snacks. Coffee and Tea will be brought from a local high quality market and can be purchased at the cost that will not waste a large amount of money. Coffee and tea will be served as per order. No prior production will be done. This will make coffee and tea delicious as well as it will avoid wastage. Also snacks which are serv (Rohrer, 2012)ed will be made up of high quality breads and will be made at order. Cleanliness will be the priority. Nothing will be served without cleanliness. Food safety will be a key factor .
Services is an important topic that is important to discuss before the opening of the café. It includes everything from from location to management styles to reducing the cost of the café. It also includes the employee management and fixing up of a menu. With all these things customer satisfaction is most important. A satisfied customer is the key for the success of the business. Only a customer satisfaction can improve the operations and services of the business. For customer satisfaction one could reduce the waiting time, creating good ambience and also good employee behavior plays an important role (Burrow, 2011). Customer satisfaction is must during the creation of a business plan. Also menu can be set according to the customer needs that it should be accordingly maintained as demanded by the customers. And change in the menu after a regular interval is a must for the business success. But all the things can be done without compromising on the quality of the services. The quality of the served items can be maintained by taking good raw materials from the market.
Service will be good if the employees of the café are satisfied. Therefore, rewards must be given time to time so that the employees as well as customers remain satisfied (Akridge & Akridge, 2008).
Market analysis is very important before making a marketing plan. After analyzing the current situation of the market and also the demands and services required by the customer, a plan can be made. Marketing plan gives a main goal and objective of what can be achieved and how it can be achieved. Marketing plan includes how the company wants to create relationships with the customers and how these relationships can be valued. It also includes the plan that is used to attract investors. Also the promotion of the café is also included in the marketing plan. Nowadays, most of the business need to provide their services to the public by the tool of excessive marketing by promotion and social media.
Competition and customers: Marketing planning should also include a plan that could get a competitive advantage. Competitive advantage is an advantage over the competitors to grow and have a big market share. Therefore, having a successful marketing plan also cove up this area. Competitive advantage can be gained over the cost, or the service provided by the café or over the atmosphere (Bergstrom, 2012). During the marketing, the cost feature can be highlighted which can attract a certain number of customers. Also, the relaxing feature can be highlighted which can be an advantage. It is therefore should be analyzed that over which customers any business wants to focus and to attract customers.
The owner and the people involved in the important position of the café should understand the importance of marketing. Also, it will show which is the target customers for the café. This understanding also helps investors to know the objective of the business. These plans also help in giving good services to the customers. Therefore, better satisfaction can be achieved with that of competitors (Honig & Samuelsson, 2013).
Operational basics include the licensing, preparation of the menu and technology investments. Café requires the operating license from the local authorities. This is basically a check over the safety and the health standardization. The menu includes the products that are in the café. It includes the products that are serving in the café. Cupidity café serve coffee, tea as well as some snacks. So these are detailed in the menu. Whereas the technology investment is about the payment details in the café. Also, it requires basic technology like point of scale device and a system software to keep a record (Basu, 2017).
Also to make a café operational it should be located in the prime location as there is a lot of competitors in the café business. So, it should be located in the best area so that customers get attracted towards it. Also the menu should be decided as per the demand and should not be same as that of the competitor café. Also, the furniture should be comfortable in the café. By buying the old furniture and then giving it a new look by modern accessories will be cost effective as well as it will look good. Also new kitchen crockeries should be purchased which are modern as well as easy to handle (Alter, 2000).
The timing should be set according to the location of the café. As per the office location it should be up to midnight and in malls it should be 24 hours open. So, it depends upon the location that what will be the timings for opening and closing (Pell, 2017).
The operation of the café is easily manageable due to the not very large venture. In starting the volume of the customers will be less and will increase after some time. So, the pricing will be changed accordingly and new dishes on the menu will be added accordingly. And if the café becomes successful new employees and big store can be taken for the café. But, initially the focus will be on the customer satisfaction and faster operations, and with high quality services.
Management Plan: Management of a café store requires staff like kitchen manager, sales manages and a general manager with all workers and waiters. All the hiring will be done prior to the setup. The kitchen manager will look up to the orders and the service relating matters. Whereas the sales manager will have a look over the financial matters and keeping the record of the sales. Also general manager will see all the things working properly and will look up to the atmosphere and customer related problems. The sales manager will look up to the point of sale (POS) device. Also, he will look on to the online orders (MaRS Discovery District, 2009).
Organizational Plan: The place where the café is to be started is selected. Simultaneously the vendors should be called out for the bids and hiring process should be started. Managers were selected by the organization team, which will organize an interview for the managers. The interview for all the managers and staff will be taken by the owner of the café. Each applicant will be rated according to the skills and best of them will be chosen. Also, the vendors for various things like furnitures and technology appliances will be called and selection will be done according to the price as well as the latest technology.
A personal financial statement may include the expenses for the managers, cooks, servers, dishwashers, catering employees and sales agents.
|
Annual Sale Forecast |
Year 1 |
Year 2 |
|
Manager/Cashier |
$ 25000 |
$26500 |
|
Line cooks |
$35000 |
$36400 |
|
Prep cooks |
$40000 |
$41450 |
|
Dishwashers |
$20000 |
$21020 |
|
Sales Agent |
$21000 |
$22000 |
|
$141000 |
$147370 |
Total start up expenses will be $ 214600 in which $174000 of which is contributed by the owners and rest will be through bank loans.
Startup Cost
|
Start up expenses |
Amount |
|
Logo and name creation |
$1000 |
|
Permits and Lease deposits |
$1200 |
|
Building Improvement |
$30000 |
|
Working capital |
$100000 |
|
Pre opening expenses |
$15000 |
|
Out door sign |
$2000 |
|
Total startup expenses |
$149,200 |
Startup Assests
|
Artwork |
$4000 |
|
Commercial Dishwasher |
$4000 |
|
Walk in Cooler |
$5000 |
|
Stainless steel Freezers |
$3000 |
|
Steel cold station |
$3000 |
|
Food processor |
$900 |
|
Beverage cooler |
$3500 |
|
Sandwich maker |
$3000 |
|
Kitchen small wares |
$1500 |
|
Burner Restaurant range |
$3600 |
|
Reach in Cooler |
$4000 |
|
Steel work tables |
$1500 |
|
Fire protection system |
$3000 |
|
Bowl and crockeries |
$3000 |
|
Oval tables |
$15000 |
|
Café chairs |
$3000 |
|
Lighting |
$500 |
|
Table cloth |
$500 |
|
Art and Décor |
$1000 |
|
Cash register |
$400 |
|
POS system |
$1000 |
|
Total amount |
$65400 |
Therefore the total startup cost is 214600.
The financial plan will include the start up cost, profit and loss, cash flow, Balance sheet, financial ratios, labor costs and weekly sales projection.
Important Assumptions
The major costs are associated with the equipments and building. Also furniture and furnishings also have a large part of the cost. Building costs include the renovation of the café the interiors, the bathroom fittings, comfortable furniture and a good ambience through added accessories. Some amount is contributed by the owners and extra amount is taken as loan from banks. The loan amount will be returned in almost 6 years expectedly. Also the funds are to be managed properly as per the plan (Pham, 2014). The amount will be spent accordingly as per the plan. No exceeding of the cost will be taken. Strict budget will be followed as per the plan.
As the café store business is so popular, there is a lot of competition. So the business planning should be changed according to the situation. Following a single business strategy is not worth. To grow the business situation based change in plans in must. So, regular revision of a business plan is required to earn the profits from a business. Revision of the business plan depends on the external circumstances that are competitors. So smooth working of the business requires renewal of the plans at least annually. But financial plans must be renewed monthly or sometimes quarterly. As, planning is a continuous process the plan formation has been a never ending task. These are some points where plan revision should be done.
Plan refining is important as it sets new goals to achieve. Also, helps in renewing the shortcoming of the business. As, the café store faces a lot of competition plan renewal is very important. Addition of new products, as well as changes in the furniture will change the ambience. It also lifts up the profit and achieving new goals.
References
Akridge, C. & Akridge, J., 2008. The Elements of a Business Plan: First Steps for New Entrepreneurs, Available at: https://www.extension.purdue.edu/extmedia/ec/ec-735.pdf
Alter, S., 2000. The Operations Plan: Virtueventures, Available at: https://www.virtueventures.com/files/mdbl-chapter6.pdf
Audretsch, D. & Tamvada, J., 2011. The Distribution of Firm Start-Up Size Across Geographic Space, Available at: https://www.india.jbs.cam.ac.uk/research/downloads/research_tamvada.pdf
Balboni, B. & Tivan, M., 2009. The Growth Drivers of Start-up Firms and Business Modelling: A First Step toward a Desirable Convergence, Available at: https://www.fm-kp.si/zalozba/ISSN/1854-4231/9_131-154.pdf
Basu, C., 2017. Operational Plan for a Cafeteria Restaurant, Available at: https://smallbusiness.chron.com/operational-plan-cafeteria-restaurant-13053.html
Bergstrom, B., 2012. Business Plan for a Startup Company VRDA, Available at: https://www.theseus.fi/bitstream/handle/10024/45387/Bergstrom_Bettina.pdf?sequence=1
Burke, A., Fraser, S. & Green, F., 2009. Multiple effects of business plans on new ventures, Available at: https://dspace.lib.cranfield.ac.uk/bitstream/1826/3928/1/Multiple_effects_of_business_plans-RP2-09.pdf
Burrow, L., 2011. SunShine Café: A Breakfast Restaurant Business Plan, Available at: https://digitalscholarship.unlv.edu/cgi/viewcontent.cgi?article=2094&context=thesesdissertations
Honig, B. & Samuelsson, M., 2013. Business planning and venture level performance: Challenging the institution of planning, Available at: https://entreprenorskapsforum.se/wp-content/uploads/2013/03/WP_05.pdf
MaRS Discovery District, 2009. Business Planning and Financing Management Series, Available at: https://www.marsdd.com/wp-content/uploads/2010/12/The-Business-Plan-Executive-Summary-WorkbookGuide.pdf
Pell, N., 2017. Equipment Needed to Open a Coffee Shop, Available at: https://smallbusiness.chron.com/equipment-needed-open-coffee-shop-12811.html
Pham, T., 2014. Business Plan for a Vietnamese Restaurant and Coffee Shop in Helsinki, Available at: https://www.theseus.fi/bitstream/handle/10024/87937/FINAL%20THESIS.pdf?sequence=1
Rohrer, R., 2012. Restaurant business plan, Available at: https://www.rowan.edu/home/sites/default/files/Rohrer%20College%20of%20Business/restaurant_sample_business-plan.pdf
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