A business plAn pROJeCT

On

S CAFE COFFEE SHOP

BUSINESS PLAN PROJECT REPORT
Submitted by

R. GEETHA PRIYA
Register No: 2121199672089

MASTER OF BUSINESS ADMINISTRATION

In
DEPARTMENT OF MANAGEMENT STUDIES

ARISTOTLE P.G COLLEGE

MOINABAD Pin code: 500 075
 DEPARTMENT OF MANAGEMENT STUDIES
BUSINESS PLAN PROJECT REPORT
June 2020
This is to certify that the business project entitled
S CAFE COFFEE SHOP

Is Bonafide record of business plan project work done by

R.GEETHA PRIYA
Register No: 2121199672089 of
MBA during the year 2019 to 2020.
Submitted for the business plan project held 23-06-2020

---------------

Head of Department

DECLARATION

I affirm that the business plan project work titled my

business plan on S CAFE COFFEE SHOP
 being submitted in partial fulfillment of the award of
Master of Business Administration is the original work
carried out by me. It has not formed the part of any other
project work submitted for any degree or diploma, either in
this or any other University.

R. GEETHA PRIYA
Register No: 2121199672089

I certify that the declaration made above by the candidate

is true.
Signature of principal
L.SRINIVAS REDDY
(Principal of Aristotle Pg College)
BUSINESS PLAN OF A S CAFE COFFEE SHOP
Executive summary
Introduction
Company Objectives:
Company Mission
Company Owners:
Company Start-Up Cost:
Company Location & Facilities
Company Products:
Competitive Comparison:
Commercial Viability
Sales Literature:
Sourcing:
Future Products:
Market Analysis
Market Segmentation
Management Summary
Financial Plan
Risk Management:
Conclusion
S CAFÉ COFFEE SHOP
1. Executive summary

Coffee Circus will provide a friendly, comfortable atmosphere where the customer can
receive quality food, service and entertainment at a reasonable price. The coffee house
will offer a variety of choices to the customers. Coffee and tea of all sorts will be
offered.Coffee Circus will serve breakfast, lunch and dinner.

The interior design of the building will focus on projecting a relaxed atmosphere. Coffee
Circus will be divided into different areas. Some will have tables and chairs, another will
have large antique stuffed couches etc A PA system will be installed so that the music and
entertainment can be heard throughout.

A strength which this business will possess is the ability to change with the times. The
advertising and promotion will take a number of avenues.

Coffee Circus will be operated as a Sole Proprietorship. There will be private investors.
However, these investors will be silent investors with a payoff of investment within three
years. These investments will be paid twice-yearly in equal installments including interest.
Overall management will be the responsibility of the owner.

2.BUSINESS DESCRIPTION:-

Coffee Circus will be a coffee house/restaurant located near to the places were we
can have more profit

The coffee house will offer a variety of choices to the customers. Coffee and tea of
all sorts will be offered. The choices of coffee will range from espresso to latte, from
regular flavor to raspberry-mocha. The teas will range from English to flavored
varieties.
The breakfast menu will feature croissants, muffins, bagels, donuts, french pastries,
fruit filled crepes, etc. Except for the crepes, the baked goods will be purchased from
The Works. Lunch and dinner will feature sandwiches, salads and seven different
soups. In hot weather, a variety of cold soups will be offered. In addition the interior
design of the building will focus on projecting a relaxed atmosphere. The bottom
portion of the walls will be forest green with the upper being eggshellwhite. The
carpeting will be forest green. The table and chairs will be custom made from light
oak. The chair coverings will be of forest green material and heavily padded for
comfort. The table tops will be a marbleized forest green laminate. Plants will abound
in gold pots. The dishes and eating utensils will be mismatched and purchased from
antique and thrift stores. The coffee cups will be from the forties and fifties era. They
will be provided by a local antique business and will be for sale.

Coffee Circus will be divided into different areas. An advantage to having different
areas is that customers can partake in different activities without botheringanyone

The emphasis will be on providing a comfortable environment for the customer

where they will want to linger and return many times.

3. MARKETING:-

Coffee Circus will be a coffee house/restaurant located near

to the places were we can have more profit

The coffee house will offer a variety of choices to the customers.

Coffee and tea of all sorts will be offered. The choices of
coffee will range from espresso to latte, from regular flavor
to raspberry-mocha. The teas will range from English to
flavored varieties.

The breakfast menu will feature croissants, muffins, bagels,

donuts, french pastries, fruit filled crepes, etc. Except for the
crepes, the baked goods will be purchased from The Works.
Lunch and dinner will feature sandwiches, salads and seven
different soups. In hot weather, a variety of cold soups will be
offered. In addition the interior design of the building will focus
on projecting a relaxed atmosphere. The bottom portion of the
walls will be forest green with the upper being eggshell white.
The carpeting will be forest green. The table and chairs will be
 custom made from light oak. The chair coverings will be of
forest green material and heavily padded for comfort. The table
tops will be a marbleized forest green laminate. Plants will
abound in gold pots. The dishes and eating utensils will be
mismatched and purchased from antique and thrift stores. The
coffee cups will be from the forties and fifties era. They will be
provided by a local antique business and will be for sale.

*GOAL*
Generate monthly sales revenues of $71,000 per month of 3% of the target market
within 18 months of opening.

*OBJECTIVE*

Maintain a high standard of food quality and service

Provide first-rate live entertainment without a cover charge
Ensure a friendly comfortable atmosphere
Place monthly ads in neighborhood publications according to the tastes
Prefer mostly to the customers taste and preference
Offer discount coupons
Maintain and use a customer mailing list
4. OPERATION:-
The 6th largest producer of the coffee in the world.
Indian coffee has created a niche for itself in the international market.

Coffee production in India :- Karnataka, Kerala and Tamilnadu.

Which contributes about 99℅ of total coffee production.

The Coffee shop will be open with one working staff and one cashier cum accountant. The
sweet coffee shop is planned to operate at 50 square feet space room available in the
ground floor of School of management studies, CUSAT. The women labors are available
in the locality to engage in the operation of the shop. The location of the shop is accessible
to supplier’s delivery van and waste removal. The start-up fund requirement is given below
 Start-up funding

Table 2. Personnel Plan

Personnel Year 1 Year 2 Year 3
Cashier INR 60,000 INR 66,000 INR 72,600
Worker INR 48,000 INR 52,800 INR 58,080
Number of employees 2 2 2
TOTAL 108000 118800 130680
5. Finance
The Coffee shop will capitalize on the strong demand for high-quality coffee. The owners
have provided the shop with sufficient start-up capital. With successful management aimed
at establishing and growing a loyal customer base, the business will see its net worth
doubling in two years. Sweet Coffee shop will maintain a healthy 50% gross margin, which
combined with reasonable operating expenses, will provide enough cash to finance further
growth.

The profit and loss account is projected for upcoming three years. The sales, margin,
expenses and profit are given . It is expected that the proposed product is profitable in the
first year. The profit is increasing in the upcoming years.

INR 3,000,000
INR 2,500,000
INR 2,000,000
INR 1,500,000
INR 1,000,000
INR 500,000
INR 0
Sale Margin Expenses Profit

Example:- Projected sale, margin, expenses and profit of S café coffee shop

The balance sheet is projected for the upcoming three years. The projected asset, liabilities
and capital are given in Figure 5. The growth of asset and capital is increasing significantly.
The net worth of the business is increasing, which is the positive sign of growth of the
business
 INR 1,000,000

Figure 5. Projected assets, liabilities and capital of S café coffee shop

6. Critical-Risks
The neatness and the custom made coffee or tea would be core attraction of coffee shop.
Milma booth stall will definitely be one of the major competitors because of its established
marketing and operational practices. However, despite of Milma booth stall entrenched
market position, many customers favor smaller, independent establishments that offer
cozy atmosphere and good coffee at affordable prices.
7. Harvest strategy
Strategy will be focused at getting new customers, retaining the existing customers, getting
customers to spend more and come back more often. Establishing a loyal customer base
is of a paramount importance since such customer core will not only generate most of the
sales but also will provide favorable referrals. Coffee shop will position itself as unique
coffee bar where its patrons can not only enjoy a cup coffee perfectly brewed coffee but
also spend their time in an ambient environment. Comfortable sofas and chairs, dimmed
light and quiet relaxing music will help the customers to relax from the daily stresses and
will differentiate a Target market :- my target market will be to anyone who enjoys coffee,
but I will mainly target people age 15 and older both male and female, who are of the
working class and students
Competition:- My competitors would be ccds, barista,, Starbucks, mc Donalds, and other
local cafes. But major is CCD and college cafes and restaurants in nearlyvicinity

Market trends:- Coffee is the drink of choice for many people across the world. Every
morning millions of people rely on their morning fix to get going for the day.

In India recently the trend is increasing and more and more urban and semi-urban
population is switching to coffee over tea.

Growth rate is of the market is around 20℅ annually and is expected to remain in double
digits over the next decade. Shop from incumbent competitors. To speed up the customer
service, at least two employees will be servicing clients—while one employee will be
preparing the customer’s order, the other one will be taking care of the sales transaction.
All sales data logged on the computerized point-of-sale terminal we next decade

8. Milestone schedule
The milestones are guidelines for each of the members should strive to achieve. The
milestones of Sweet Coffee shop is given below.
Milestones
Item Quarter1 Quarter2 Quarter3 Quarter4
Customer delight XXXXXXXXXXXXXXXX
Achieve sale target XXXXXXXXXXXXXXXX
Improvement in business XXXXXXXXXXXXXXXX
9. Appendix

A2. Start-up Funding

Start-up Expenses to Fund INR 25,000
Start-up Assets to Fund INR 35,000
Total Funding Required INR 60,000
Assets
Non-cash Assets from Start-up INR 25,000
Cash Requirements from Start-up INR 10,000
Additional Cash Raised INR 0
Total Assets INR 35,000
Liabilities and Capital
Liabilities
Current Borrowing INR 20,000
Long-term Liabilities INR 0
Accounts Payable (Outstanding Bills) INR 0
Other Current Liabilities (interest-free) INR 0
Total Liabilities INR 20,000
Capital
Planned Investment
Investor 1 INR 40,000
investor 2 INR 0
All other investors INR 0
Additional Investment Requirement INR 0
Total Planned Investment INR 40,000
Loss at Start-up Expenses (INR 25,000)
Total Capital INR 15,000
Total Capital and Liabilities INR 35,000
Total Funding INR 60,000
A2. Profit and Loss Account (projected)
Income Year 1 Year 2 Year 3
Sales INR 1,740,000 INR 2,175,000 INR 2,610,000
Direct Cost of Sales(0.65-.55) INR 1,131,000 INR 1,305,000 INR 1,435,500
Other 0 0
Total Cost of Sales INR 1,131,000 INR 1,305,000 INR 1,435,500
Gross Margin INR 609,000 INR 870,000 INR 1,174,500
Gross Margin % 35% 40% 45%
Expenses Year 1 Year 2 Year 3
Payroll INR 130,680 INR 0 INR
Sales and Marketing and Other Expenses INR 20,000 INR 20,000 INR 20,000
Depreciation (0.3) INR 4,500 INR 4,500 INR 4,500
Rent INR 1,000 INR 1,000 INR 1,000
Maintenance INR 5,000 INR 5,000 INR 5,000
Utilities/Phone INR 1,000 INR 1,000 INR 1,000
Payroll Taxes INR 0 INR 0 INR
Other INR 0 INR 0 INR
Total Operating Expenses INR 162,180 INR 31,500 INR 31,500
Profit Before Interest and Taxes INR 446,820 INR 838,500 INR 1,143,000
EBITDA INR 451,320 INR 843,000 INR 1,147,500
Interest Expense INR 4,000 INR 4,000 INR 4,000
Taxes Incurred (0.3) INR 134,046 INR 251,550 INR
342,900
Net Profit INR 313,274 INR 587,450 INR
800,600
0

0
0
 A4. Balance sheet (projected) Net
Profit/Sales
Assets Year 1 Year 2 Year 3
18%
Current Assets 27%
Cash INR 328,938 INR 616,823 INR 840,630 31% 0
Inventory INR 29,500 INR 24,000 INR
18,500
Other Current Assets INR 10,000 INR 10,000 INR
10,000
Total Current Assets INR 368,438 INR 650,823 INR 869,130
Long-term Assets Long- INR
term Assets INR 15,000 INR 15,000 15,000
Accumulated Depreciation (INR 4,500) (INR 9,000) (INR 13,500)
Total Long-term Assets INR 10,500 INR 6,000 INR 1,500
Total Assets INR 378,938 INR 656,823 INR 870,630
Liabilities and Capital Year 1 Year 2 Year 3
Accounts Payable INR 15,664 INR 29,373 INR
40,030
Current Borrowing INR 20,000 INR 20,000 INR
20,000
Other Current Liabilities INR 0 INR 0 INR
Subtotal Current Liabilities INR 35,664 INR 49,373 INR
60,030
Long-term Liabilities INR 0 INR 0 INR
Total Liabilities INR 35,664 INR 49,373 INR
60,030
Paid-in Capital INR 40,000 INR 30,000 INR
20,000
Retained Earnings (INR 10,000) (INR 10,000) (INR 10,000)
Earnings INR 313,274 INR 587,450 INR 800,600
Total Capital INR 343,274 INR 607,450 INR 810,600
0

Total Liabilities and Capital INR 378,938 INR 656,823 INR 870,630
A5. Ratio Analysis
Financial ratios Year 1 Year 2 Year 3
Current ratio 10.33 13.18 14.48
Inventory turn-over 38.34 54.38 77.59
Debt/Net worth 0.10 0.08 0.07
Return on tangible net worth 0.91 0.97 0.99
Return on Assets 0.83 0.89 0.92