Business Plan Template Exercise Sample (Landbank) PDF

Preview

Summary

Business Plan Preparation...

Description

BUSINESS PLAN (Fap and Gab Coffee Shop – Sample Company)

I. Executive Summary This section is a summary of the information from the pages that follow. Prepare it last, after the business plan has been written. It should not exceed two pages. Overview: A Fap and Gab coffee shop will be among many firsts in SM Calamba City, as the area continues to expand its focus for attracting residents to eateries and activity destinations. The new coffee shop will be a place for shoppers to grab a quick cup of coffee as well as become a destination point for residents in the area to find premium coffee in a relaxing environment. The coffee shop will take advantage of its centralized position within the SM Calamba as a stopping point for grocery shoppers and those running errands during the day. The coffee shop will also be a destination point for after-dinner clientele due to a variety of freshly baked pies and premium coffee. The coffee shop will attain financial viability by providing premium coffee in a high traffic, up and coming area of the city. By building strong relationships with other nearby businesses the coffee shop can establish referral business and create marketing opportunities like free coffee and giveaways coordinated with nearby shops to increase foot traffic and return business. Mission and Vision Statement The vision/mission statements are clear summaries of where the business is headed. It describes what the business produces, who products are produced for, and unique business characteristics. It will reflect the values of the management team and the type of business culture you are trying to create. Mission: Commitment to the business and its customer and provides a written promise for you to uphold. To build relationships with the community through excellent service, fair prices and the highest quality coffee in town.

Vision: Describes how you see your company in the future To be the number 1 coffee shop in Calamba City that continuously providing the highest standard of service.

Goals and Objectives What do you want your business to achieve? Be specific in terms of financial performance, resource commitments (time and money) and risk. 1. To serve the best tasting premium coffee in town. 2. To become a destination point for after-dinner desserts. 3. To introduce a branded coffee to the community and develop awareness for the brand. 4. To build relationships in our community through coffee. Keys to Success What do you need, or must happen, for you to succeed? 1. Developing a friendly and relaxed atmosphere. 2. Store operations that are designed for speed and accuracy. 3. Effective training programs established for consistency and quality throughout the product line. 4. Marketing strategies aimed at building loyal customers, as well as maximizing sales on the most profitable products. 5. Courteous and responsive customer service. 6. Only the best quality coffee and dessert items.

2

II.

Company Summary

The material in this section is an introduction to the firm. Company Ownership and Location Founder of the business: Francesca Antonette Panelo Home Address: No. 22 Purok 3, Baclaran, Cabuyao City Business Address: 2nd floor SM Calamba City Telephone No./ Cellphone No.: 049-542-4254 / 0918-849-1929 Type of Business: Single Proprietorship Background of Business: The primary products of the Fap and Gab Coffee Shop will be coffee, and selected desserts, which will include both hot and cold specialty drinks, pies, cookies, and various other desserts. This recommendation comes as a result of observing several area coffee shops that have a steady and some what loyal client base. A Fap and Gab coffee shop will be among many firsts in SM Calamba City, as the area continues to expand its focus for attracting residents to eateries and activity destinations. The new coffee shop will be a place for shoppers to grab a quick cup of coffee as well as become a destination point for residents in the area to find premium coffee in a relaxing environment. In addition to selling coffee drinks and desserts, the coffee shop will provide fountain drinks, smoothies, tea, and hot chocolate for those who don’t appreciate the coffee flavor. Although the menu will be finalized at a later date, the shop will have weekly specials, which include a blended drink and dessert. Other retail items will include packages of roasted beans, featuring blends sold in our shops, & t-shirts and mugs printed with our logo.

3

III.

Market Aspect

Market Description: State the general description of your market, its size and composition, geographical locations, population, age group, etc. Fap and Gab Coffee Shop will cater to people who want to get their daily cup of greattasting coffee in a relaxing atmosphere. The coffee shop will take advantage of its centralized position within the SM Calamba as a stopping point for grocery shoppers and those running errands during the day. The coffee shop will also be a destination point for after-dinner clientele due to a variety of freshly baked pies and premium coffee. Such customers vary in age, from 16 to 65 years old. Our market research shows that these are discerning customers that gravitate towards better tasting coffee. Furthermore, a lot of people consider coffee bars to be a convenient studying or meeting location, where they can read or meet with peers without the necessity to pay cover charges. For us, this will provide a unique possibility for building a loyal client base.

Demand: Total Demand: Total population ages from 16 to 65 years old living in Calamba City in the year 2016, was 6,525,740. Out of that total population, 50% are drinking coffee and eating pastries in the different coffee shops, at least in an average of once a month. To get the total demand, 6,525,740 x 50% x 12months = 39,154,440 average customers in a year. . Catered Demand: In Calamba City, the prominent Coffee shops are, starbucks, Dunkin donuts, Krispy Kreme, Le Bistro in paseo checkpoint, Tabelle in Halang and other SME coffee shops supplying coffees and pastries for a total average of 60% of the total demand or 23,492,664. Uncatered Demand: The average uncatered demand for coffee shops in Calamba City is 40% or 15,661,776 customers. Target Demand: The company is targeting only from out of uncatered demand is at least 0.5%, or 78,309 customers in a year.

4

Marketing Strategy: 4Ps – Pricing, Promotion, Product/s, Place In order to appeal to a variety of ages, the coffee shop will have a unique and eclectic atmosphere conducive to young and old alike. There will be couches and easy chairs to relax in as well as tables to sit and eat at. Artwork will be provided by local artists in exchange for free advertisement and exposure, and the mood will always be laid back and low key. The coffee shop will be a place to hang out, spend a quiet evening with a special someone or meet with a business associate over a hot cup of coffee. Through its versatility, the coffee shop will attract a wide variety of customers. The average price of coffee variants are ranging from P45 to P150, which is lower then 30% lower than that of Starbucks and Krispy Kreme. In terms of promotion: • Online Advertising - The company will advertise regularly on popular social media sites, such as Facebook. Compared to traditional print advertising, this is a cost effective tactic that will allow them to reach prospects in a highly targeted way (e.g., based on criteria such as age, gender, geography, etc.). • Web Site - the company will develop a simple Web site, which will provide basic information about the business, the menu, and links to their presence on the aforementioned social media channels.

List of Customers: Customers from 16 to 65 years old (students, professionals, businessmen, etc)

List of Suppliers: The Russet Cup has negotiated supplier agreements with several local food-service wholesalers and coffee wholesalers in the Calamba area that have a reputation for quality and reliability: • Mean Beans Coffee Roasters • Overland Park Brewers • Healthy Harvest Bread Co. • Mary's Organics In the event that one of the aforementioned specialty suppliers cannot meet their needs, the following national suppliers can both provide all of the food-service products that they require. In addition, the following wholesalers will supply the café with general restaurant supplies: • Lawrence Food Products Corp. • Gerry Food Supply Inc.

5

List of Competitors: The research methodology is based on unique coffee shops/cafes in the greater metro area and omits larger chains or franchises. The findings reveal four unique competitors. • Starbucks • Krispy Kreme • Dunkin Donat • Le Bistro • Tabelle

Sales Projection: Budgeted Annual Customer based on market share Multiply by average order: Total Annual Sales Monthly Sales (divided by 12) Daily Sales (Divided by 30)

6

78,309 P 100 P 7,830,900 652,575 21,752

IV. Technical Aspect

Product/Service Description: The Fap and Gab’s primary offering is gourmet roasted coffees with such varieties such as mocha, carmelicious, white mocha, candy bar latte, and brewed coffee. Complementing the coffee will be a smoothie line including wild berry, strawberry, peach, mango and lemonade. Rounding out the simple menu line will be pastries obtained with an outside supplier, freshly made and delivered daily. The pastry offerings may vary with seasonality but the primary line will muffins, breads, cookies, scones, and rolls. Production Input and Process (if applicable): Major products include beverages and food. Beverages include brewed coffee and tea; espresso drinks (cappuccinos, café lattes); cold blended beverages; bottled water; soft drinks; and juices. Food includes pastries, bakery items, desserts, sandwiches, and candy. Many coffee shops sell whole or ground coffee beans for home consumption. Some coffee shops sell coffee or espresso-making equipment, grinders, mugs, and other accessories.

Business Location and Size: The coffee shop will take advantage of its centralized position within the SM Calamba. The company will rent a space around 10m x 7m at 2nd floor near the food court and foot-bridge entrance. Sketch of Business Site:

Time and Days of Operation: The coffee shop will operate during mall hours and operating days.

Building and Facilities (if applicable):

7

Raw Materials/Equipment/Machineries Requirement (if applicable) Sample Format: Particular Quantity Needed Unit Cost

Total Cost

Total Total Production Cost (if applicable) Sample Format: Particular

Monthly Cost

Total

8

Yearly Cost

9

V. Organization and Management Management Expertise/Technical Know-How Management expertise is widely considered to be essential to create sustainable competitive advantages for organizations in today's business environment. Expertise Management, which focuses on tacit knowledge, is one of the most valuable in operation. The Fap and Gab is 100% owned by a single proprietor, Francesca Antonette Panelo, a BS Accountancy graduate with Master in Business Administration. Ms. Panelo will also operate as general manager. Crucial employees include 2 store supervisors who will assist in maintaining and reviewing operations of the coffee shop, and 2 master brewers who will manage kitchen operations. Part-time personnel will be hired to handle bartending, serving, and cashiering functions. The company will rely on its POS (Point of Sale) system to generate daily accounting and cost activity reports. Ms. Panelo will supply these to an outside bookkeeper for preparation of annual income taxes. General Company’s Policies: Company policies and procedures establish the rules of conduct within an organization, outlining the responsibilities of both employees and employers. Company policies and procedures are in place to protect the rights of workers as well as the business interests of employers. Depending on the needs of the organization, various policies and procedures establish rules regarding employee conduct, attendance, dress code, privacy and other areas related to the terms and conditions of employment. Employee Conduct An employee conduct policy establishes the duties and responsibilities each employee must adhere to as a condition of employment. Conduct policies are in place as a guideline for appropriate employee behavior, and they outline things such as proper dress code, workplace safety procedures, harassment policies and policies regarding computer and Internet usage. Such policies also outline the procedures employers may utilize to discipline inappropriate behavior, including warnings or employee termination. Equal Opportunity Equal opportunity laws are rules that promote fair treatment in the workplace. Most organizations implement equal opportunity policies -- anti-discrimination and affirmative action policies, for example -- to encourage unprejudiced behavior within the workplace. These policies discourage inappropriate behavior from employees, supervisors and 10

independent contractors in regard to the race, gender, sexual orientation or religious and cultural beliefs of another person within the organization. Attendance and Time Off Attendance policies set rules and guidelines surrounding employee adherence to work schedules. Attendance policies define how employees may schedule time off or notify superiors of an absence or late arrival. This policy also sets forth the consequences for failing to adhere to a schedule. For example, employers may allow only a certain number of absences within a specified time frame. The attendance policy discusses the disciplinary action employees face if they miss more days than the company allows. Substance Abuse Many companies have substance abuse policies that prohibit the use of drugs, alcohol and tobacco products during work hours, on company property or during company functions. These policies often outline smoking procedures employees must follow if allowed to smoke on business premises. Substance abuse policies also discuss the testing procedures for suspected drug and alcohol abuse.

Manpower: Manpower Planning which is also called as Human Resource Planning consists of putting right number of people, right kind of people at the right place, right time, doing the right things for which they are suited for the achievement of goals of the organization.

Position/Function:

Salaries:

11

VI. Financial Aspect The financial plan will cover the following: • Required Cost of Start-Up (Project Cost) • Income Statement • Cash Flow • Balance Sheet • Financial Ratios

Rent Deposit (3 months) Capital Assets Requirements (VAT Inclusive) Production Equipment Production Tools Production Furniture and Fixtures Office Equipment Store Equipment Store Furniture and Fixtures Leasehold Improvement Pre-Operating Expenses Working Capital for 3 months (Vat Inclusive) Purchases Direct Labor (No VAT) Factory Overhead (Excluding Depreciation) Selling Expense (Excluding Depreciation) Gen. & Admin. ( Excluding Depn & Pre-operating) Total

P 200,000.00 45,200.00 100,000.00 40,000.00 50,000.00 100,000.00 250,000.00

P

1,944,702.40 195,075.00 68,361.05 112,087.96 86,271.68 P

Contingencies (0.15) Total Project Cost

P FAP AND GAB COFFEE SHOP Projected Statement of Comprehensive Income Years Ended December 31

Gross Sales Less: Cash Discount Net Sales

2018

2019

2020

2021

7,830,900.00

8,222,445.00

8,633,567.25

9,065,245.61

0.00

0.00

0.00

0.00

7,830,900.00

8,222,445.00

8,633,567.25

9,065,245.61

Less: Cost of Goods Sold

5,330,720.94

5,597,256.99

5,877,119.84

6,170,975.83

Gross Profit

2,500,179.06

2,625,188.01

2,756,447.41

2,894,269.78

Gen. and Admin. Expense

360,790.58

364,413.49

382,092.55

401,730.95

Selling Expense

568,864.00

590,611.00

613,702.00

638,475.00

929,654.58 1,570,524.48

955,024.49 1,670,163.51

995,794.55 1,760,652.86

1,040,205.95 1,854,063.83

Less: Operating Expenses

Total Operating Expense Net Income Before Other Expense Less: Loss due to Abnormal Spoilage

0.00

0.00

0.00

0.00

Net Income Before Tax

1,570,524.48

1,670,163.51

1,760,652.86

1,854,063.83

Income Tax Expense - 0.3 Net Income After Tax

471,157.34 1,099,367.14

501,049.05 1,169,114.46

528,195.86 1,232,457.00

556,219.15 1,297,844.68

12

FAP AND GAB COFFEE SHOP Projected Cash Flow Statement

2018

2019

1,099,367.14 143,897.95

1,169,114.46 143,897.95

Inventories

(133,564.73)

Prepaid Expense

(150,609.29)

As at December 31 2020

2021

2022

1,232,457.00 143,897.95

1,297,844.68 143,897.95

1,367,838.74 143,897.95

(9,542.61)

(9,539.88)

(9,539.88)

(9,539.88)

(30.46)

(31.99)

(33.59)

(35.27)

71,972.00

2,191.00

(1,538.00)

(1,694.00)

(2,249.00)

1,031,063.07

1,305,630.33

1,365,245.08

1,430,475.16

1,499,912.54

Purchased of Property, Plant & Eqpt.

(188,979.46)

0.00

0.00

0.00

0.00

Net Cash Flows from Investing

(188,979.46)

0.00

0.00

0.00

0.00

(439,746.85)

(467,645.78)

(492,982.80)

(519,137.87)

(547,135.50)

3,421,562.70 4,263,646.31

(467,645.78) 837,984.54

(492,982.80) 872,262.28

(519,137.87) 911,337.29

(547,135.50) 952,777.04

Cash Flows from Operating Activities Net Income After Tax Depreciation Decrease (Increase) in:

Trade and Other Payables Net Cash Flows from Financing Cash Flows from Investing Activities

Cash Flows from Financing Activities Investment of the Partners Withdrawal of the Partners Net Cash Flows from Financing Total Cash Flows Add: Cash Balance Cash Balance, End.

3,861,309.55

0.00

4,263,646.31

5,101,630.85

5,973,893.13

6,885,230.42

4,263,646.31

5,101,630.85

5,973,893.13

6,885,230.42

7,838,007.46

FAP AND GAB COFFEE SHOP Projected Statement of Financial Position As at December 31 2018

2019

2020

2021

4,263,646.31

5,101,630.85

5,973,893.13

6,885,230.42

133,564.73

143,107.34

152,647.22

162,187.10

171,72

150,609.29 4,547,820.32

150,639.75 5,395,377.94

150,671.74 6,277,212.09

150,705.32 7,198,122.84

150,74 8,160,4

ASSETS Current Assets Cash Inventories Prepaid Expense Total Current Assets

7,838,00

Non-current Assets Property, Plant and Equipment, Net
...