Go Forward Co.,Ltd.

Preface
This Project is a part of 1203302 Project Feasibility Study and EvaluationCourse in

the second semester of 2009. In this project is studying the feasibility of coffee shop business
in Chiang Rai, which is include generally of coffee shop business, management in coffee
shop business, competition analysis and marketing feasibility, the technical process in coffee
shop business, the financial feasibility of coffee shop business, and risk of coffee shop
business.
This project makes everyone who interested to get knowledge and information about
coffee shop business before make decision to investment, including preoperational process
and operation process of coffee shop business, for the benefit to investment and profit of
doing this business.
We expect that our project will provide benefit more and more interested person,
furthermore, if we have any error in this project or whatever, our ground made an apology at
this opportunity.
Group members
Miss Kanyapas Prukchartsiri
Mr. Chaiyasit Lek-im
Miss Pornnipa Sanyarattanaphit
Miss Rujiraporn Ratchatasriprasert
Miss Xingting Zhao
Content
Chapter 1 Introduction
1.1 Back ground and significance of project ............................................................................... 1
1.2 Project Objective(s) ............................................................................................................... 5
1.3 Benefits of Project .................................................................................................................. 5
1.4 Activities/Time Frame ............................................................................................................ 5
Chapter 2: Industry Profile

2.1Nature of Industry ................................................................................................................... 7
2.2 Situation of Industry............................................................................................................. 15
2.3 Product/Service (in General) ............................................................................................... 16
2.4 Vision of your Organization ................................................................................................ 17
2.5 Mission ................................................................................................................................. 17
2.6.1 Corporate Level........................................................................................................ 17
2.6.2 Business Level ......................................................................................................... 18
2.6.3 Functional Level ...................................................................................................... 19
Chapter 3 :Market Feasibility Study

3.1 Marketing Analysis .............................................................................................................. 22
3.2 Competition analysis (3C analysis) ..................................................................................... 22
3.2.1- Competitor analysis ................................................................................................ 22
3.2.2- Customer analysis ................................................................................................... 26
3.2.3- Competitive analysis ............................................................................................... 26
3.3 STP Analysis ........................................................................................................................ 28
3.4 Marketing Mix Strategy ....................................................................................................... 30
3.5 Sale forecast ......................................................................................................................... 32
Chapter 4 Technical Feasibility

4.1 Production and Operation Analysis..................................................................................... 36
4.1.1 Product Characteristic ............................................................................................. 36
4.1.2Product process ......................................................................................................... 36
4.1.3 Location ................................................................................................................... 37
4.1.4 Facility Layout ......................................................................................................... 38
4.1.5 Machine tool and Equipment ................................................................................... 42
4.1.6 Facility Management................................................................................................ 46
4.2 Cost of Investment ................................................................................................................ 47
4.2.1 Pre-operation Cost.................................................................................................... 47
4.3 Investment Cost .................................................................................................................... 47
4.3.1 Equipment and Tools ............................................................................................... 47
4.3.2 Depreciation ............................................................................................................. 48
4.4 Operating Cost ..................................................................................................................... 53
4.4.1 Raw material ............................................................................................................ 53
4.4.2 Direct Labor ............................................................................................................. 54
4.4.3 Overhead ................................................................................................................. 55
4.5 Management Analysis .......................................................................................................... 55
4.5.1 Administration ......................................................................................................... 55
Chapter 5:Financial analysis

5.1 Profit and lose statement ..................................................................................................... 60
5.2 Cash flow ............................................................................................................................. 66
5.3 Balance sheet ........................................................................................................................ 72
Payback Period.................................................................................................................. 79
Net Present Value ............................................................................................................. 79
Internal Rate of Return ...................................................................................................... 79
Return on investment ........................................................................................................ 79
Chapter 6: Risk management

6.1 External Risk ........................................................................................................................ 81
6.2 Internal Risk ......................................................................................................................... 82
6.3 Risk analysis for project feasibility ...................................................................................... 85
6.4 How to reduce risk ............................................................................................................... 96
Chapter 7: Summary
Summary .................................................................................................................................... 98
Reference ........................................................................................................................................... 102

Chapter 1
Introduction
Chapter 1 Introduction
1.1 Back ground and significance of project
Our coffee shop establish in 2010 by our coffee shop set from inspiration of investors
who love in flavor and smell of coffee. Our coffee shop concept will be the garden style
coffee shop in addition to flavor and smell of coffee can made other feel relax involving fresh
environment that full of trees all of this it’s will make you feel fresh more. Our coffee shop
has been occur by inspired from “Love At First Bite” which the best response at Chiang Mai
province because this coffee shop style will give be shady and fresh, many customers like it.
We chose open the garden style coffee shop because coffee marketing trend in
Thailand will increased by trend coffee consumption is 7 cups per week from 3-4 cups per
week and coffee consumptions in Thailand will increase in future
Moreover 2-3 years ago coffee marketing trend will increase in continuously by
Kasikorn research predict increasing of coffee product from 2545 to 2548 equal 21,000
million baht this mean that increase 100% and growth rate is expand 10% include instant
coffee 9,300 million baht, coffee can 7,000 million baht, and premium coffee 4,700 million
baht.
Price of coffee product according to type
Year Instant coffee Coffee can Premium coffee shop

2545 5,600 6,000 3,000
2546 7,800 6,300 3,500
2547 8,500 6,600 4,000
2548 9,300 7,000 4,700
We consider premium coffee only, we analyze that the quantity of selling in

minimum is 500 million baht/year by start at 3,000 million baht in 2545 Buddhist era and
then increase be 3,500 million baht in next year, in 2547 increasing 4,000 million baht, and
2548 Buddhist era shift to 4,700 million baht. Because coffee shop is growing up in every
year and have more coffee consumer of coffee specially roast coffee.
These reasons cause us more confident to run this business and hope to expand branch
around Chiang Rai in future.
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And then we researched the garden style coffee shop around Mae Fah Luang
University in Chiang Rai province during 1-2 kilometers, we got good news because not have
the garden style coffee shop in front of Mae Fah Luang University, so it’s opportunity of us
invest to opening the garden style coffee shop, we already consider to selected the place to
set coffee shop is near the Fah Thai Market which located beside the Mae Fah Luang
University at Chiang Rai province because:
1) Mae Fah Luang University is a new university and increase of students every
year
and behavior of student of Mae Fah Luang University is high of purchasing power than
Chiang Rai University.
Number student at Mae Fah Luang
7054 8008 8950 9678
year 50
year 51
year52
year53
Figure 1.1
Number of student of MFU
2) Our coffee shop is located among student’s dormitory, so our main customer is
student.
3) The garden style coffee shop still less of competition because almost of shop is
alacarte, then coffee shop is not enough for customer.
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% shop around of MFU
Alacarte Coffee shop Mike shop
5%
15%
80%
Figure 1.2
% shop around of MFU
4) The atmosphere around Mae Fah Luan University is reasonable to build the garden
style coffee shop. Anyway many people want to get fresh atmosphere then our coffee shop is
alternative to they for relax, and avoid from pollution, so we provide many large trees in our
coffee shop for respond this reason.
5) Chiang Rai province has increased number of traveler in every year.
Statistic of traveller in Chiang Rai

250000
200000
150000
100000
50000
0
Jan Feb Mar april may june July Aug Seb Oc Nov Dec
year 2549 year 2550 year 2551
Figure 1.3
Statistic of traveler in Chiang rai
6) About percent of staff who working at Mae Fah Luang University is increase by
continually.
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Staff who work at MFU
1200
1000
800
600
400 Staff who work at MFU
200
0
year 50 year51 year52 year53
Figure 1.4
Staff who working at MFU
Other than, we had queried from many students around Mae Fah Luang University
about where you prefer to meeting with friends? We got the answers are library, food court,
and coffee shop, coffee shop is one of answer of student here. All of above reasons is cause
of set the garden style coffee shop.
We strongly give an attention in choosing materials about the quality of coffee and
bakery for serving to customers. Our shop is closely to customers, so everyone will feel like
they are drinking our coffee at their home. In addition, our shop has been observed for the
Mae Fah Luang University’s students about activities that they’d like to do in their free time.
The results were they like to read, meeting their friends, or even relaxing in a coffee and
bakery shop.
Process of coffee shop is running on small business and planning for provide good
service with middle price. So we plan to study the process of small business about level of
management, service, supplier, target segment, operation cost and function of internal and
external. Coffee shops are well to be just a small business and use fewer budgets to launch.
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1.2 Project Objective(s)
 To study about the situation of coffee shop trend in nowadays.

 To study about management process in the coffee business.
 To study possibility of beverage business trend in the future.
 To analyze the marketing in this business.
 To analyze the financial risk feasibility.
 To analyze demand of people who drink coffee.
 To summary the feasibility of coffee business.
1.3 Benefits of Project
 Know about marketing planning of Coffee and bakery shop.

 Understanding the trend and situation of Coffee and bakery shop.
 To learned about risk and profit of this business.
 To learned how to manage this business.
1.4 Activities/Time Frame
Operation Method Nov Dec Jan Feb

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
1. To study general of coffee shop around
Mae Fah Luang University.
2. To study manage in Coffee shop business.
3. To study competition analyze and
marketing feasibility.
4. To study the technical process in coffee
business.
5. To study the financial feasibility of coffee
business.
6. To study and analysis risk of coffee shop
business in Chiang Rai.
7. To Summary the feasibility of coffee
shop business in Chiang Rai.
หนา 5
Chapter 2
Industry Profile
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Chapter 2: Industry Profile
2.1Nature of Industry
Nowadays, people around the world increasing of coffee’s favor found that:
Coffee consumption(around the

world)
80% Coffee consumtion
60% (around the world)
40% year 2006
20% Coffee consumtion
0% (around the world)
18-24 25-39 40-59 60+ year 2007
Figure 2.1
Coffee consumption (around the world)
The popularity of Thai coffee began to change from the Thai people drink coffee as a
popular majority of Thai people now has turned into popular fresh roasted coffee. The
restaurant is decorated in the stylish comfort with a pleasant atmosphere for drinking more
coffee. Based on survey results of the habit of drinking coffee, Thai In 5-6 years (year 2545-
2549) growth rate of the coffee shop business each year is around 10-15%, while the total
value of the coffee market in 2549 was about 15,300 million baht from a survey of coffee
drinking habit Thai year 2545.
Coffee is a major income earner for Thailand. Only 500 t of Arabica coffee
(C. Arabica) are produced in the north. Present cultivation techniques are focused on
producing high yields. Chemical fertilizers and pesticides are commonly applied to the coffee
plantations. Arabica coffee is mainly used for roasted and ground coffee in Thailand.
Arabica coffee is mainly grown in the highlands at approx. 800 masl. It is wet
processed to give high quality green bean. The Catimor cultivar is recommended as it is rust
resistant. Growing Arabica coffee provides cash income for hill-tribe farmers and reduces the
problem of traditional slash-and-burn shifting agriculture. Both shaded and full sun coffees
are grown. With the policy of natural resource conservation and the limitation of land area,
the hill-tribe farmers have to grow coffee to sustain natural resources on the highlands in the
long term.
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Agro-forestry systems have been introduced for Arabica coffee. These systems
involve coffee inter-planted with fruit trees and/or forest trees which can provide appropriate
additional income to the farmers. Limiting the use of chemical inputs, including fertilizers
and pesticides, is aimed at reducing water and soil contamination and improved ecological
conditions as well as the health of the farmers. Organic coffee cultivation on the highlands
meets with such objectives and is being encouraged.
Organic coffee cultivation involves: 1. no use of chemical fertilizers, pesticides,
herbicides, fungicides, hormones, antibiotic, or growth regulators; 2. use of compost, farm
manure, green manure, and crop rotation to maintain and improve soil fertility; 3. a balanced
pest control farm eco-system, with healthy soil management and crop diversification; 4.
control of weeds through mechanical methods; and 5. use of good quality, clean,
uncontaminated chemical-free composted materials and nursery seedlings from off-farm as
well as on-farm. With organic coffee production, the farm has to be visited and re-evaluated
annually, before certification is given. Depending on market demand for organic coffee, there
is a high potential for its production on the highlands, and organic production methods will be
of mutual benefit to the farmers, the highland ecology, and the consumers. Organic coffee-
growing areas must be special areas which can be strictly controlled and which follow the
regulations specified for certification. The Royal Project Development areas mostly met the
requirements and regulations needed, and should be able to produce best quality organic
coffee.
Coffee is a significant cash crop for both producing- and consuming-countries.
Thailand is the third largest producer in Asia (after Vietnam and Indonesia). Arabica coffee
production is only 800-850 t per year. It is produced in the cooler highland areas of the
Northern part. It is totally used in roasted and ground coffee for domestic market.
Coffee consumption rate of the Thai people remain in the current low consumption of
less than 0.5 kg / person / year Equivalent to only 130-150 cups per person per year only
(with an average of less than one glass per person per day) because the amount of Thai
people who consume coffee on a regular basis, only 30 percent (or less than 2 million
people), people from the population. Thai total more than 60 million people who still have a
small amount compared to Asian countries such as Japan, drinking coffee, the average 500
glasses per person per year, or American coffee drinkers the average 700 glasses per person
per year (an average of 2 glasses per person. days) for its coffee business, so there is
tremendous but expect that competition in product markets and coffee will be even more
หนา 8
intense. Therefore, entrepreneurs in the coffee business, this need for both strategic offense
and receive to keep pace with the changing market situation. Especially, premium coffee if
the overall economy of Thailand has continued to grow. Coffee experts forecast that the
market value will have surpassed 7,000 million levels in less than 5 years, certainly.
Consumption demand is growing in Thailand. Imports of instant coffee have

increased from412 t in 1997 to 2,270 t in 2000. There are many coffee products of Thai and
international origin on the shelves of the supermarkets and stores. Many more modern cafés
or coffee-houses have been established in the big cities in recent years.
The Arabica coffee-producing areas on the highlands of Thailand, at the altitude 800
to 1,200m above mean sea level, are mostly categorized as watersheds or conservation areas.
Under the National Forest Policy and Land Use Policy, many extensive agricultural activities
will be limited in such areas, together with prohibition on agricultural chemical uses. In many
Arabica coffee-planting areas under the Coffee Promotion Program of the Royal Project
Foundation, it has been shown that growing Arabica coffee with forest trees gives good
returns to farmers. Although the farmers have less management work and less investment,
หนา 9
they still receive some returns, and not a loss. Such diversification offsets the price
fluctuations of coffee when these appropriate farming systems are introduced.
Types of Coffee Cultivated in Thailand

There are two main types of coffee cultivated in Thailand; Arabica in the North and
Robusta in the South.
Arabica Coffee
History
From 1972-1979 The Thai / UN Crop Replacement and Community Development
Project was implemented as a pilot project to explore the viability of replacing opium poppy
cultivation with a variety of substitute crops and alternative sources of income, combined
with related community development activities. It was found that Arabica coffee is a cash
crop that can be promoted to replace opium in the long run and can provide high cash
incomes, not only to poppy growing farmers, but to a large number of other farmers in the
highlands as well. The main reasons for this are that land and climate are suitable for coffee
growing, transport and storage of coffee is relatively easy, yields are good and that there is a
strong demand for good quality highland coffee. Thus Arabica coffee is very appropriate and
viable as a cash crop to replace opium in the highlands of Thailand.
Our shop are order the coffee beans from Doi Chaang Coffee Company because Doi
Chaang Coffee is a single-origin, premium Arabica. It is certified organic, forest canopy
grown, hand picked, fresh water processed, sun dried, hand sorted and freshly roasted to
หนา 10
ensure the highest possible quality for each cup of Doi Chaang Coffee. Naturally low in
caffeine, it has a complex and flavourful profile which is enhanced and released through
detailed cultivating, processing and roasting methods.
History of Coffee in Doi Chaang Village

The Doi Chaang Coffee Company is a unique partnership between theAkha hillside
tribe of Doi Chaang Village, located in the Chiang Rai Province of Northern Thailand. The
Doi Chaang villagers received a variety of high quality Arabica plants and continuous
technical support until cultivating and processing methods were well established. The
families initially cultivated their own coffee independently and individually sold their own
beans to international coffee dealers for minimal prices. However, once united as a
cooperative, the Akha families soon proved themselves as a resourceful and successful,
independent coffee company. They now proudly produce the pinnacle of world class Arabica
coffee.
Cultivation
Doi Chaang Coffee is naturally cultivated and processed in the remote Doi Chang
Village of Northern Thailand. Rich fertile soil, high elevations and ample rainfall make Doi
Chaang Village one of the premium coffee growing regions of the world. Their naturally
cultivate a variety of Arabica plants under a canopy of sun-filtered plum, peach, pear and
macadamia nut trees in altitudes between 1200 and 1600 meters above sea level. The fallen
leaves from our various fruit and nut trees create nutritious mulch for our coffee plants,
providing a subtle fruit and nutty taste to our coffee. The shade and high altitudes slow the
growth of our coffee cherries, creating a more complex, dense and intensely flavored bean.
Coffee is beverage that good smell and own unique so it’s admire of people around the
world for shot time although coffee is not find in Thailand but Thai people known coffee over
150 yeas. Now a day coffee business has rapid growth and then this situation made many of
new entrepreneurs to run business. Now a day, there are a lot of coffee shop in both Thailand
and Northern of Thailand, so in Chiang Rai also has growing coffee shop especially around
Mae Fah Luang University during 1-2 kilometers include:
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 Sawatdee Chiang Rai coffee shop
Figure 2.2
General information
 Located near highway (Mae Chan), far from Mae Fah Luang University about 3
kilometers.
 Major product is coffee.
 Other product is some kinds of cake.
 Coffee hut MFU
Figure 2.3
General information
 The shop is located in front of Mae Fah Luang University.
 Other product is some kind of cakes.
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 Boss Coffee
Figure 2.4
General information
 Located in front of Mae Fah Luang University
 I-Aoun coffee
Figure 2.5
General information
 The shop is located near of main road and near Mae Fah Luang University.
 Major produce is coffee.
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 Groon Glin
Figure 2.6
General information
 The shop is located near of main road and near Mae Fah Luang University.
 Major products are coffee and bakery.
 Banoffee coffee
Figure 2.7
General information
 The shop is located near main road, Mr. Copy (copy shop), and located in fornt of
Mae Fah Luang University.
 Main product is coffee.
หนา 14
2.2 Situation of Industry
During the period of 3-4 years, coffee business has obviously high growth rate. Main
reasons may come from investing in coffee business from aboard, such as “Star Buck” which
can make this business lively and boom. In the same time, consumer’s behavior for drinking
coffee of Thai people has changed. In the past, they drink instant coffee, but now they
changed to drink fresh roasted coffee which has shop. The decoration, pleasant atmosphere
and comfortable in the shop can make them to drink more coffee.
Based on a survey of coffee drinking behavior Thailand in the year 2545 by the Thai
Farmers Research Center found that rate of drinking coffee per person in Thai is still low.
The average each 200 glasses per person per year, compared with people in Asia such as
Japanese, They drink coffee average 500 glasses per person per year or 3-4 cups per week.
While Americans drink coffee, the average 700 glasses per person per year, so the market
trend in Thailand will be increased by trend coffee consumption is 7 cups per week from 3-4
cups per week and coffee consumptions in Thailand will increase in future
. Because of this, many investors both Thai and foreigners are interested to invest in a
coffee shop. Market competitions seem to be high. However most of the coffee shop today
will focus on selling products and other value added services such as cakes, cookies, and
sandwiches, some of them have internet access to customers. When each shop has strength
points with many vary options for consumer to choose. It also has multiple groups in the
market so the competition is likely intense. Entrepreneurs need to standardize their products
and services that meet the needs of consumers better.
หนา 15
2.3 Product/Service (in General)
We have main product such as Mocha, Late, Cappuccino, Espresso and Americano
and also have soft drink and bakery such as Cocoa, Ice tea, coconut cake, chocolate cake etc.
• Beverage Menu
Coffee, Milk, and Tea product
Figure 2.8
• Bakery Menu
Figure 2.9
หนา 16
Our company has many kind of beverage and bakery for be an alternative to
customer, there are coffee, tea, cocoa and milk such as espresso, cappuccino, americano,
latte, mocha, green tea, milk tea, cocoa, and about the bakery there are chocolate cake, coffee
cake, blueberry cheese pie, brownie, cookie, muffin, etc. We strongly give an attention in
choosing materials about the quality of flavor and coffee in every cup of coffee and bakeries
for serving to customers.
For a service, our shop is closely to customers, so everyone will feel like they are
drinking our coffee at their home. Our shop provide a restroom, non-smoking area, safety
area for children who’s come with parents, an internet Wi-Fi, and open soft music for
customer feel relax.
2.4 Vision of your Organization

 In 2015, our shop wants to be a leader in health and tested, becoming the preferred
brand in the majority of our chosen markets.
 Revenue increasing every year.
 Developed by the research and development.
 Make customers are happy and impressed with the product as much as possible.
2.5 Mission
To provide friendly, comfortable atmosphere and the customer can receive quality
beverage and bakery, service and entertainment at a reasonable price.
2.6 Business Strategy
2.6.1 Corporate Level

Coffee and bakery as a goods being very popular for people who looking for a
way of business. Thus, market competition is quite high. But with the way our shop has
invented a formula that is unique coffee shop, including fragrance bakery that bake a new
every day. For our atmosphere with quiet garden green may make people feel more relaxed.
With these things can help our coffee and bakery shop to compete with competitor. For the
future, our coffee and bakery shop may be made by the franchise but preserve this legacy as
well. Which made this franchise will make customers do not have to go far out of town. But
they can sit to eat the fragrant coffee with a bakery oven in the garden city.
หนา 17
2.6.2 Business Level
Beloved cup shop is a shop that has highly competition environment and
increase continuously. It affects directly to our shop because the customer will use service
with the shop that give the highest return then we will concern about competitive strategy that
can help us to have more advantages competition than the competitor, so we will use
competitive strategies in order to make competitive advantage for our company that we
created some special for different from others that make our shop is very unique by we will
making the Differentiation Strategy as follow:
• Price differentiation: The environment around Beloved cup shop has high
competition. The competitors tend to give the customer in the similar prices, give in
the same price or give the highest price from competitors to attract customers.
Beloved cup coffee shop will give the price that meet the customer satisfaction such
as give the middle price because our target is student, staff who work in Mae Fah
Luang University, and traveler.
• Service differentiation: Giving the middle price to the customer is not enough. We
have to make the customer’s loyalty by creating the impression to the customer by
services such as service satisfaction over quickly(within 7 minute), clean and good
workplace such as we provide open soft music, our concept is garden that we should
to maintenance the environment, and Provide safety area for children whose come
with parents.
• Technology differentiation: we provide the computer and machine to help in collect

data processing of coffee shop, and also for convenient, surely, and fast.
• Personnel Differentiation: We concern with ability and experience to do coffee and

bakery by learning by ourselves and share with other coffee entrepreneurs who have
high and many experiences, be credible. Furthermore we focus on caring to customer
and friendly with customer.
• Image Differentiation: It is defined market position by bring product’s image or

shop’s image to be tool of create differentiate competition that consider characteristic
include: logo, atmosphere, and organize special events.
หนา 18
2.6.3 Functional Level
 Administration
For this, the service is at the heart of sales. Coffee and bakery shop this too. In
addition, we have to take care of the taste of coffee and bakery then, we also need to care
about customers too. For owners, we will train waiter to have the ability and knowledge
about the product, as well as training to good manners. Management of the place and taste
shall remain the same, it is important to another as well.
 Business Strategies
We will serve customers and serve the food taste the same. Customer will not be
disappointed. The first time the customers are impressed, the next time come back to shop
again, customers will still get the atmosphere and the taste of coffee and a good bakery same.
Feedback from our customers will used to develop, improved and develop inventive new to
the restaurant's menu. The promotion is exclusive to customers every month
 Marketing
Our marketing is aimed at students. For that reason, our shop is close to the Mae Fah
Luang University. This makes our store accessible to customers easily. There are also people
who drive through can park and visit our coffee and bakery shop to relax as well. For wider
markets that would require a franchise that might be in the future.
 Marketing Strategy
Promotions each month to attract customers is a certain level. However, taste and
service is the most important thing. So the first thing you should do is to keep the taste of
coffee and bakery taste good. Then, the service we will serve with a smile so that make
customers feel relaxed and friendly. For the expansion of our franchise, we'll have to make
sure that people who want to buy a franchise can do with our services in the same style as us
or not, for in to be in the same way.
 Production
We have support coffee from The Doi Chang Coffee that is the agricultural product
from tribe who participating in Doi Chang. The selection of coffee beans that taste great with
the restaurant's secret recipe and ingredients carefully selected. Bakery additives are specially
formulated according to the season or a combination of seasonal fruit to support the local
villagers.
 Production Strategy
หนา 19
Our shop will control the cleanliness of coffee and bakery as well. For people who
make cakes always wear a cap and wearing gloves for cooking. Storage ingredients and
materials will keep as well. The cleanliness of containers enters the bakery and coffee.
 Human Resource
Without selection good of raw materials, we have to select good staff. Good staff here
is going to be people who speak good, cleaning, good manners, friendly with customers and
ethics. For working together in the shop are like friends and brothers. We will not focus on
the boss to boss. To create intimacy makes it easy to work.
 Human Resource Strategy
Training staff to can do coffee and bakery is delicious. Practice of discipline and have
passion to service.
 Financial
We raise financial capital from bank loans either from banks at low interest. Capital
portion of the funding for initial and the other part for working capital is in the shop. We will
promote shop in the first period only. In the latter relies on word of mouth of our customers.
Therefore, we do not waste money on promoting much.
 Financial Strategy
Find a bank that provides low-interest loan. Then management must take account of
every day and the end of every month will be analyzed and summarized the sale.
หนา 20
Chapter 3
Market Feasibility Study
หนา 21
Chapter 3 :Market Feasibility Study
3.1 Marketing Analysis
Social: Because Thailand culture got some cultures from the western, so many
socials such as office worker, students, like to drink coffee after work or class because it can
help them to refresh. Seem likes a coffee becomes a part of life for modern social. They drink
coffee as a fashion, whatever older or younger, male or female people. They like to drink
coffee. So drinking coffee in recently becomes the substitute beverage in their spiritual.
Technology: through research know customer wants, new product inventions, take
advantage of information technology provide internet service or deliver coffee service, give
staff professional train and bring new equipment, let our coffee more delicious. Same time for
shop energy and equipment scientific management, reduce our fund and product price. For
customer provide high quality service.
Economic: with country economic development, people income increase, disposable
income more than before. So people life habit change, they want find a population fashion
life way.
Ecological: we will support organic coffee production scheme, because organic
coffee production proved to conserve and utilize the natural resource base at a higher level
than non- organic system of coffee production. Organic coffee product as a new approach
of agricultural development in the area and respect to ecological and economic dimensions.
Political: country low rule require food supplier provide everything is health and safe.
Public Healthy research indicates coffee can reduction many kinds of disease risk like Heart
disease, cirrhosis and gout. Our shop have safe rule make sure our product haven’t any
harmful.
3.2 Competition analysis (3C analysis)
3.2.1- Competitor analysis

To help for knowing about advantages and disadvantages of competitors and know
about what is strength and weakness, this is made Beloved cup has more strong point and we
can enter to market quickly. About competitor, there are 6 coffee shops include:
หนา 22
Figure 3.1
1) Sa Wat Dee Chiang Rai coffee 4) I- Aoun coffee

2) Coffee hut MFU 5) Groon Glin coffee
3) Boss Coffee 6) Banoffe coffee shop
3.2.1.1 Analyze business of Sa Wat Dee Chiang Rai Coffee shop

• Strength
 The shop is located near highway.
 The shop has own unique is pink’s shop that easily customer remember them.
 The shop has many of menus (beverage, bakery, and food)
 The shop provides Wi-Fi service.
 Te shop has available parking for customer.
 Restroom is clean.
• Weakness
 The shop is far from the town.
 Not have the own website for attract customers.
 No have website for advertising.
3.2.1.2 Analyze business of Coffee hut MFU

• Strength
 The shop is located in front of MFU and near student’s dormitory.
 The shop is high of customer loyalty because they always related with student.
หนา 23
 The shop has face book website for introduce their product.
• Weakness
 The shop hasn’t Wi-Fi service.
 The shop was not near highway.
 The shop not opens on every Friday.
 Not always have promotions.
 Not have restroom.
 The shop not has parking.
3.2.1.3 Analyze business of Boss Coffee shop Chiang Rai

• Strength
 The Boss coffee shop is located near highway, so they have many customers
to use their service.
 The Boss Coffee shop is quite popular and word of mouth of MFU students.
 The shop has Wi-Fi service for customer.
 Boss Coffee shop located closely restaurant (Cham Kai), and MR copy that
easy to attract students.
 Good location.
 Some of menu is low price.
• Weakness
 The shop has same product of another shop.
 The shop has not website for introduce the product.
 The shop always closed.
 Not have the restroom.
 Slow to serving.
3.2.1.4 Analyze business of I-Aoun coffee

• Strength
 Near of main road and near Fah Thai market.
 The shop is opening time (8.30 -21.00), long time to open more than other
coffee shop.
 The shop has restroom for service customers.
หนา 24
 Free Wi-fi.
• Weakness
 Air pollution, noise pollution because the shop is open style it not have doors.
 Boss coffee always closed the shop.
 The shop not has area of car parking.
3.2.1.5 Analyze business of Groon Glin coffee

• Strength
 Good atmosphere.
 The shop is located near the main road.
 The shop has large area of car parking.
 Have restrooms.
 Open everyday.
• Weakness
 Not have Wi-fi internet provide to customers.
 The shop provides seats not enough to customers.
 Air pollution, noise pollution because the shop is open style it not have doors.
3.2.1.6 Analyze business of Banoffee coffee shop

• Strength
 Good located because Banoffee is located opposite with Fah Thai market.
 Banoffe is located near the main road.
 Provide air condition in the shop.
 Have restrooms.
 Provide Wi-fi internet within the coffee shop.
• Weakness
 Limit area by car parking.
หนา 25
3.2.2- Customer analysis
Cup/day
Sa Wat Dee Chiang Rai Coffee hut MFU
Boss coffee I- Aoun coffee
Groon Glin coffee Banoffe coffee shop
55 50 50
45
30 35
Sa Wat Dee Coffee hut Boss coffee I- Aoun Groon Glin Banoffe
Chiang Rai MFU coffee coffee coffee shop
Figure 3.2
For customer analysis, our target market is students and staff who working at Mae
Fah Luang University and casual visitors that we can divided customer in 2 styles, first one is
customer who like the atmosphere within the shop that is the garden which full of trees in
coffee shop and second one is customer who like in flavor of coffee and bakery. We focus on
students, staff who work in Mae Fah Luang University and casual visitors by set a middle
price because we think that they are have a purchasing power, if customer has high power to
buying they maybe buy more one piece. Moreover we use materials have a high quality such
as Arabica Coffee accept around the world, and we care all of coffee processing for serve to
customer, and about the price we will set not too low and not too much.
3.2.3- Competitive analysis
Five force model

-Rivalry among Current Competitors:
From the surveyed of coffee shops that were not over 2 kilometers from Mae
Fah Luang University. There were a few of coffee shop at this area, so it was hard to compare
with others. The investors can easily present their products.
หนา 26
However, we cannot cut another shop off from competition because another shop may
think that new sale strategy to competition, so Beloved cup always continue to develop
product and service to run away customer from competitor.
-Bargaining of buyer
Beloved cup is a new coffee business and not many customers knows, so if we
have customers loyalty, we will more time than another shop. Now a day, Chiang Rai has
many shop of coffee when we compare with before. In the other hand the customers have
more coffee processing information and know that how to made, this is risk to bargaining of
buyer because customer are more alternative, and they will confident to talk about reduce
price.
-Bargaining of supplier
Mostly raw material to do coffee come from same place such seed coffee,
coffee machine, cake maker, cake flour, whipping cream etc, so supplier will has more
bargaining because produce product store not much but we have the way to reduce bargaining
of supplier by we have to co-work with another shop together and then combine list to buy.
We have to do this because when we buying with many volume of raw material, we can
negotiate with supplier for reduce price, we will get lower price.
-Threat of new Entrants

Coffee business is business that easy to return and high return of money
because rise of interesting amount Thai people in present and concern about health, and
mental by smell and tests of coffee will give you to fresh and relax and then coffee business
is rising interest.
The way to protected threat of new entrants is we will set standard of shop by
concern about tests and customer such as we will service on-time (not more 10 minute each
menu) for customer loyalty, Hence we already made bakery to customer but about coffee we
have to do in that time. In the other hand we will create brochures for show the product,
price, and place.
หนา 27
- Marketing Expense
We use Facebook to promote our coffee and bakery shop because it is very
easy to access to customer who is Mae Fah Luang’s student, for another one channel is we
will post message to promote in web Chiangrai and mfuzone. In this way, we will not waste a
lot of money to promote.
3.3 STP Analysis

-Segmentation
Our customer groups that are most likely to buying coffee product and people who
free and who have relax from tired. So our customers are staffing who working, students, and
traveler include: general people in this area and traveler. The segmentation divided into 3
segments for service suitable in each:
Segmentation
Student traveler Staff
39%
58%
3%
Figure 3.3
Segmentation
Demographic
- Not limited gender.
- Not limited age.
- Student and staff who work in Mae Fah Luang University, Traveler.
Geographic
- Near Mae Fah Luang University.
หนา 28
Behavior
- Ability of customer’s pay.
- Royal customer.
- People like coffee and bakery.
-Target
The customer will be between 18 to 55 years old. The income level is between
$20,000 and $100,000 per year. They will live within 2 kilometers of MFU. The education
level will range from some college to post-graduate work. A limited number (3%) will come
from other areas. This 3% will generally be persons who are coming to see a particular
entertainer or poetry reading. A majority of the customers will be persons who enjoy a
relaxing atmosphere, conversation.
Our shop is located closely Mae Fah Luang University because the target is student,
staff who working at MFU, and causal visitor, we choose causal visitor is our target group
because Mae Fah Luang University is the most beautiful university of Thailand, so it’s has
more attract another persons for visit there both visit by their salve and on internet by our
shop has advertising post on mfuzone (It is MFU’s website), if there are visit an university,
they can join our shop.
Furthermore, a lot of college students and staff who work in University consider
coffee shop to be a convenient and relax place from stress, 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.
Because students, Staff love in good decorate, good view and location. So our
coffee shop is easy to find, have parking, have a convenient transportation, quite low price
and have a good atmosphere, let customer can do anything they want to do. Although low
price but our still keep coffee high quality, low price only a strategy help attract more
customer.
We already suggest about student’s graph, staff’s graph, and traveler’s graph
on back ground of industry on chapter 1.
หนา 29
-Product positioning
Figure 3.4
The positioning of Beloved cup shop is base on high quality and not too high price.
Beloved cup shop has both beverage product and bakery, which we use ingredients have high
quality, fresh, and clean furthermore we provide good atmosphere because the shop decorated
in modern style. There are many facilitates in the shop such as Wi-Fi service, garden zone
that make the customer feel good. So, Beloved cup shop provided many quality products to
increase satisfaction to our customers. And our company concerns the best thing to customer.
3.4 Marketing Mix Strategy
We use 4P to analysis:
Product--- “Beloved cup” is name of our shop. Its mean we care all of detail about
the production that serve to customer. Our shop are provided fresh coffee and bakery to
customer. Our shop is different from other shop that is style of decoration. Garden style will
make customer feel fresh and relax. We are focuses on customer need such as the flavor of
coffee (some customer want less sweet, some customer want more sweet), service, and
atmosphere in shop.
• Cappuccino • Iced tea
• Espresso • Oreo
• Latte • Blueberry cheese pie
• Americano • Strawberry cheese pie
• Cocoa • Chocolate cake
• Green tea • Cherry cake
หนา 30
• Coffee cake • Cookie
• Muffin • Brownie
Price--- We set the price in middle price because we focus on selling to students, so
the price should not be too high. It makes customer loyalty.
• Cappuccino 40
• Espresso 40
• Latte 40
• Americano 40
• Cocoa 30
• Green tea 30
• Iced tea 30
• Oreo 55
• Blueberry cheese pie 55
• Strawberry cheese pie 55
• Chocolate cake 35
• Cherry cake 35
• Coffee cake 35
• Muffin 35
• Cookie 20
• Brownie 20
หนา 31
Place--- We use directs distribution channel that is from the producer to customer. Our shop
is located in front of university, which is near dormitory and it easy to access. Our shop is
provided the convenience to customer with car park.
Promotion--- We promote our shop by

• Internet > facebook, mfuzone, Chiang Rai focus
• Free Magazine> Mango magazine of Chiang Rai, Sherbet Magazine
• Word of mouth
3.5 Sale forecast
We already make questionnaire to query people around Mae Fah Luang University
comment about coffee.
หนา 32
Sale forecast year 1
Jan Feb Mar Api May Jun Jul Aug Sep Oct Nov Dec Total
Coffee 341200 345000 330000 332500 332000 335000 340000 342500 340500 325000 343500 346000 4053200
Bakery 1650 2750 1595 1375 1265 1705 1925 1815 1760 1100 2090 2145 21175
Total 342850 347750 331595 333875 333265 336705 341925 344315 342260 326100 345590 348145 4074375
Coffee 372500 375000 367500 367000 366950 367050 369000 369500 369750 370500 373000 374500 4442250
Bakery 1815 3025 1265 1265 1430 1815 1870 1980 1925 1210 2255 2365 22220
Total 374315 378025 368765 368265 368380 368865 370870 371480 371675 371710 375255 376865 4464470
Coffee 422500 430000 412500 410000 412500 412250 415000 415500 416000 405000 425000 429000 5005250
Bakery 2090 3355 1485 1430 1485 2090 2145 2310 2365 1540 2530 2750 25575
Total 424590 433355 413985 411430 413985 414340 417145 417810 418365 406540 427530 431750 5030825
หนา 33
Coffee 455500 462500 446000 447500 447000 449500 450000 450100 450300 453000 453500 462500 5427400
Bakery 2310 3630 1650 1595 1595 2255 2365 2585 2640 1760 2750 3025 28160
Total 457810 466130 447650 449095 448595 451755 452365 452685 452940 454760 456250 465525 5455560
Coffee 477500 479000 462000 463500 463500 464500 465500 466500 468000 461500 469000 474000 5614500
Bakery 2585 3960 1815 1760 1870 2530 2695 2970 3190 1925 3245 3410 31955
Total 480085 482960 463815 465260 465370 467030 468195 469470 471190 463425 472245 477410 5646455
หนา 34
Chapter 4
Technical Feasibility
หนา 35
Chapter 4 Technical Feasibility
4.1 Production and Operation Analysis
4.1.1 Product Characteristic

Our shop provides coffee and bakeries that there are many types include:
 Main product are coffee, milk, and tea;
Capuccino
Espresso
Latte
Americano
Cocoa
Green tea
Iced tea
Oreo
 Bakery
Blueberry cheese pie
Strawberry cheese pie
Chocolate cake
Cherry cake
Coffee cake
Muffin
Cookie
Brownie
All of our products use a high quality ingredient and equipment.
4.1.2Product process
• Coffee
1. Use good quality coffee, freshly roasted and freshly ground
2. Use fresh, clean, cold water. Filtered or bottled water works well, but
avoid distilled or softened water.
3. The grind chosen must be of the correct fineness for the chosen
brewing method.
4. The pot must be cleaned and warm.
หนา 36
5. Make only enough coffee for your immediate needs. The coffee will
deteriorate if you keep it too long. Avoid reheating coffee; it just
doesn’t taste the same.
6. Avoid boiling brewed coffee – it is a sure way to spoil the coffee.
7. Use approximately 70 grams of coffee per litre of water.
• Bakery
Our shop has to order fresh bakery from Coffee Hut every week.
4.1.3 Location
Figure 4.1
หนา 37
Figure 4.2
4.1.4 Facility Layout

 Table
 Chair
 Sofa
 TV
 Lighting
 Stereo
หนา 38
Layout.
Figure4.3
Figure 4.4
Figure 4.5
หนา 39
Figure 4.6
Figure4.7
Figure 4.8
หนา 40
Figure 4.9
Figure 4.10
Figure 4.11
หนา 41
Figure 4.12
4.1.5 Machine tool and Equipment
Equipment & Materials.
Expobar Office Control 1G 48,000 baht

1
Compression machine, whipping cream Brand

MOSA / aluminum heads 0.50 liter size. 3,500
2 baht
หนา 42
3 Bar service 250 baht
4 The pay box tube 800 baht
5 Tissue Box 50 baht
6 Khydohe vacuum 235 baht
Steel drums vacuum 280 baht
8 Glass cup 380 baht
หนา 43
9 Jug of fresh milk 250 baht
10 Squeeze tube feeding 25 baht
11 Hit the milk jug 350 baht.
12 Cylinder milk shakes 2002 baht
13 Scooping ice 200 baht
14 Coffee long spoon 60 baht
หนา 44
15 Measuring spoon coffee 150 baht
16 The compression coffee 150 baht
17 Measuring cup 30 baht
18 CappuccinArt 150 baht
19
Publication milk 950 baht
20 To make milk 1,200 baht
หนา 45
21 The knock on coffee grounds 1200 baht
22 Tube bending coffee 15 baht
23 Tube end coffee spoons 25 baht
Temper the coffee press 25 baht

24
4.1.6 Facility Management

 Electricity
 Utilities
 Water supply
หนา 46
4.2 Cost of Investment
4.2.1 Pre-operation Cost
Raw material THB 164,132.00

Equipment THB 77,722.00
Properties THB 4,500,000.00
Total initial investment THB 4,741,854.00
4.3 Investment Cost
4.3.1 Equipment and Tools

Equipment & Material Price per No. unit Total
unit
coffee machine 48,000.00 1 48,000.00

Compression machine, whipping cream 3,500.00 2 7,000.00
Bar service 250.00 3 750.00
The pay box tube 800.00 3 2,400.00
Tissue Box 50.00 20 1,000.00
Khydohe vacuum 235.00 10 2,350.00
Steel drums vacuum 280.00 10 2,800.00
Glass cup 380.00 2 760.00
Jug of fresh milk 250.00 10 2,500.00
Squeeze tube feeding 25.00 6 150.00
Hit the milk jug 350.00 1 350.00
Cylinder milk shakes 2,002.00 1 2,002.00
Scooping ice 200.00 2 400.00
Coffee long spoon 60.00 2 120.00
Measuring spoon coffee 150.00 1 150.00
The compression coffee 150.00 1 150.00
Measuring cup 30.00 3 90.00
CappuccinArt 150.00 1 150.00
Publication milk 950.00 1 950.00
หนา 47
To make milk 1,200.00 1 1,200.00
The knock on coffee grounds 1,200.00 1 1,200.00
Tube bending coffee 15.00 50 750.00
Tube end coffee spoons 25.00 50 1,250.00
Temper the coffee press 25.00 50 1,250.00
Air condition 14,000 2 28,000.00
Total 105,722.00
4.3.2 Depreciation
Equipment & Material Price Useful Depreciation

per unit life (yr.) per year
coffee machine 48,000.00 5 9,000.00

Compression machine, whipping cream 3,500.00 5 660.00
Bar service 250.00 - -
The pay box tube 800.00 - -
Tissue Box 50.00 - -
Khydohe vacuum 235.00 - -
Steel drums vacuum 280.00 - -
Glass cup 380.00 - -
Jug of fresh milk 250.00 - -
Squeeze tube feeding 25.00 - -
Hit the milk jug 350.00 - -
Cylinder milk shakes 2,002.00 - -
Scooping ice 200.00 - -
Coffee long spoon 60.00 - -
Measuring spoon coffee 150.00 - -
The compression coffee 150.00 - -
Measuring cup 30.00 - -
CappuccinArt 150.00 - -
หนา 48
Publication milk 950.00 - -
To make milk 1,200.00 - -
The knock on coffee grounds 1,200.00 - -
Tube bending coffee 15.00 - -
Tube end coffee spoons 25.00 - -
Temper the coffee press 25.00 - -
Air condition 28,000.00 5 5,400.00
Total 15,060.00
หนา 49
Beloved cup Coffee shop
Depreciation
For the year 1 Ended 31 Dec.
First year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
coffee machine 750.00 750.00 750.00 750.00 750.00 750.00 750.00 750.00 750.00 750.00 750.00 750.00 9,000.00
Air condition 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 5,400.00
Compression machine,
whipping cream 55.00 55.00 55.00 55.00 55.00 55.00 55.00 55.00 55.00 55.00 55.00 55.00 660.00
Total 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 15,060.00
Depreciation
Second year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
coffee machine 750.00 750.00 750.00 750.00 750.00 750.00 750.00 750.00 750.00 750.00 750.00 750.00 9,000.00
Air condition 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 5,400.00
whipping cream 55.00 55.00 55.00 55.00 55.00 55.00 55.00 55.00 55.00 55.00 55.00 55.00 660.00
Total 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 15,060.00
หนา 50
Depreciation
Third year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
coffee machine 750.00 750.00 750.00 750.00 750.00 750.00 750.00 750.00 750.00 750.00 750.00 750.00 9,000.00
Air condition 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 5,400.00
whipping cream 55.00 55.00 55.00 55.00 55.00 55.00 55.00 55.00 55.00 55.00 55.00 55.00 660.00
Total 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 15,060.00
Depreciation
Forth year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
coffee machine 750.00 750.00 750.00 750.00 750.00 750.00 750.00 750.00 750.00 750.00 750.00 750.00 9,000.00
Air condition 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 5,400.00
whipping cream 55.00 55.00 55.00 55.00 55.00 55.00 55.00 55.00 55.00 55.00 55.00 55.00 660.00
Total 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 15,060.00
หนา 51
Depreciation
Fifth year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
coffee machine 750.00 750.00 750.00 750.00 750.00 750.00 750.00 750.00 750.00 750.00 750.00 750.00 9,000.00
Air condition 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 5,400.00
whipping cream 55.00 55.00 55.00 55.00 55.00 55.00 55.00 55.00 55.00 55.00 55.00 55.00 660.00
Total 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 15,060.00
หนา 52
4.4 Operating Cost
4.4.1 Raw material
Coffee
Price: 600 baht per ½ Kg (per 50 glasses)
1
Glass (16 Oz) Price: 115 baht (1 pack have 50 glasses)

2
3
Straw Price: 15 baht per 1 pack (1 pack have 50
tubes)
Ice Price: 100 baht per day

4
Milk Price: 160 baht for 5 liter (per 50 glasses)
หนา 53
Sugar Price: 23 baht for 1 Kg (per 50 glasses)
6
Sticker Beloved Cup Price: 5 baht per 1 glass

7
Total of raw material cost

Ingredient Price Price per glass Initial raw
material
Coffee 600 baht per ½ Kg (per 50 glasses) 12 81,888
Glass 115 baht (1 pack have 50 glasses) 2.3 1569,502
Straw 15 baht per 1 pack (1 pack have 50 tubes) 0.3 2,047.2
Ice 100 baht per day 1 6,824
Milk 160 baht for 5 liter (per 50 glasses) 3.2 21,836.8
Sugar 23 baht for 1 Kg (per 50 glasses) 0.46 3,070.8
Sticker 5 baht per1 glass 5 31,420
Bakery 45 baht for 1 piece - 1,350
Total 24.26 164,132
4.4.2 Direct Labor
Position Amount Salary Total
Waiter 2 4,500.00 9,000.00
Total 2 4,500.00 9,000.00
หนา 54
4.4.3 Overhead
Charge Total
Electricity 4000.00
Water supply 400.00
Total 4,400.00
4.5 Management Analysis
4.5.1 Administration
We have a management like brothers and encouragement to all employees with the
commission.
หนา 55
Admistration cost
Employee Salary 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 108,000.00
Electricity expense 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 48,000.00
Water expense 400 400 400 400 400 400 400 400 400 400 400 400 4,800.00
Internet and Telephone 2,220.00 820.00 820.00 820.00 820.00 820.00 820.00 820.00 820.00 820.00 820.00 820.00 11,240.00
Fire insurance 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 15,600
Total 16,920.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 187,640.00
Admistration cost
Second year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Employee Salary 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 108,000.00
Water expense 400 400 400 400 400 400 400 400 400 400 400 400 4,800.00
Fire insurance 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 15,600
Total 16,920.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 187,640.00
หนา 56
Admistration cost
Third year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Employee Salary 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 108,000.00
Water expense 400 400 400 400 400 400 400 400 400 400 400 400 4,800.00
Fire insurance 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 15,600
Total 16,920.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 187,640.00
Admistration cost
Forth year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Employee Salary 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 108,000.00
Water expense 400 400 400 400 400 400 400 400 400 400 400 400 4,800.00
Fire insurance 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 15,600
Total 16,920.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 187,640.00
หนา 57
Admistration cost
For the year5 Ended 31 Dec.
Fifth year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Employee Salary 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 108,000.00
Water expense 400 400 400 400 400 400 400 400 400 400 400 400 4,800.00
Fire insurance 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 15,600
Total 16,920.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 15,520.00 187,640.00
หนา 58
Chapter 5
Financial analysis
หนา 59
5.1 Profit and lose statement
Profit/Loss statement
Revenue
Sale 342,850 347,750 331,595 333,875 333,265 336,705 341,925 344,315 342,260 326,100 345,590 348,145 4,074,375
Net sale 342,850 347,750 331,595 333,875 333,265 336,705 341,925 344,315 342,260 326,100 345,590 348,145 4,074,375
Cost of good sold
Cost of good sold 164,717 167,436 159,309.00 160326 159996.6 161793 164367 165474 164471.4 156,510.00 166,178 167,420 1,957,997
Gross profit 178,133.44 180,314.00 172,286.00 173,549.00 173,268.40 174,912.00 177,558.00 178,841.00 177,788.60 169,590.00 179,412.20 180,725.20 2,116,377.84
Expense
Organization expense 13,990.00 13,990.00 13,990.00 13,990.00 13,990.00 13,990.00 13,990.00 13,990.00 13,990.00 13,990.00 13,990.00 13,990.00 167,880.00
Depreciation 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 15,060.00
Marketing expense - - - - - - - - - - - - -
Total operating
expense 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 182,940.00
EBIT 162,888.44 165,069.00 157,041.00 158,304.00 158,023.40 159,667.00 162,313.00 163,596.00 162,543.60 154,345.00 164,167.20 165,480.20 1,933,437.84
Insurance 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 15,600.00
Interest paid 48,335.39 48,335.59 48,335.39 48,335.59 48,335.39 48,335.59 48,335.39 48,335.59 48,335.39 48,335.59 48,335.39 48,335.59 580,025.88
Taxable income 113,253.05 115,433.41 107,405.61 108,668.41 108,388.01 110,031.41 112,677.61 113,960.41 112,908.21 104,709.41 114,531.81 115,844.61 1,337,811.96
Taxes(12.5%) 14,156.63 14,429.18 13,425.70 13,583.55 13,548.50 13,753.93 14,084.70 14,245.05 14,113.53 13,088.68 14,316.48 14,480.58 167,226.50
Net income 99,096.42 101,004.23 14,156.63 95,084.86 94,839.51 96,277.48 98,592.91 99,715.36 98,794.68 91,620.73 100,215.33 101,364.03 1,170,585.47
Retain Earning Beg 99,096.42 200,100.65 214,257.28 309,342.14 404,181.65 500,459.14 599,052.04 698,767.40 797,562.09 889,182.82 989,398.15
Rerain Earning End 99,096.42 200,100.65 214,257.28 309,342.14 404,181.65 500,459.14 599,052.04 698,767.40 797,562.09 889,182.82 989,398.15 1,090,762.19
หนา 60
หนา 61
Revenue
Sale 374,315 378,025 368,765 368,265 368,380 368,865 370,870 371,480 371,675 371,710 375,255 376,865 4,464,470
Net sale 374,315 378,025 368,765 368,265 368,380 368,865 370,870 371,480 371,675 371,710 375,255 376,865 4,464,470
Cost of good sold
Cost of good sold 179,838 182,025 176,994.00 176754.6 176865.66 177228.54 178207.2 178536.6 178611.3 178,385.40 180,437 181,246 2,145,129
Gross profit 194,477.00 196,000.00 191,771.00 191,510.40 191,514.34 191,636.46 192,662.80 192,943.40 193,063.70 193,324.60 194,817.60 195,619.40 2,319,340.70
Expense
Depreciation 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 15,060.00
Total operating expense 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 182,940.00
EBIT 179,232.00 180,755.00 176,526.00 176,265.40 176,269.34 176,391.46 177,417.80 177,698.40 177,818.70 178,079.60 179,572.60 180,374.40 2,136,400.70
Insurance 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 15,600.00
Interest paid 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 580,027.08
Taxable income 129,596.41 131,119.41 126,890.41 126,629.81 126,633.75 126,755.87 127,782.21 128,062.81 128,183.11 128,444.01 129,937.01 130,738.81 1,540,773.62
Taxes(12.5%) 16,199.55 16,389.93 15,861.30 15,828.73 15,829.22 15,844.48 15,972.78 16,007.85 16,022.89 16,055.50 16,242.13 16,342.35 192,596.70
Net income 113,396.86 114,729.48 16,199.55 110,801.08 110,804.53 110,911.39 111,809.43 112,054.96 112,160.22 112,388.51 113,694.88 114,396.46 1,348,176.92
Retain Earning Beg 120652.385 243,212.76 260,448.82 377,089.82 493,485.29 611,318.92 731,467.79 852,739.29 973,089.94 1,086,266.82 1,208,038.12 1,330,958.29
Rerain Earning End 113,396.86 357,942.24 276,648.37 487,890.90 604,289.82 722,230.30 843,277.22 964,794.25 1,085,250.16 1,198,655.32 1,321,733.00 1,445,354.75
หนา 62
Revenue
Sale 424,590 433,355 413,985 411,430 413,985 414,340 417,145 417,810 418,365 406,540 427,530 431,750 5,030,825
Net sale 424,590 433,355 413,985 411,430 413,985 414,340 417,145 417,810 418,365 406,540 427,530 431,750 5,030,825
Cost of good sold
Cost of good sold 204,003 208,629 198,720.00 197478 198720 199095.3 200457 200831.4 201115.8 195,174.00 205,560 207,655 2,417,439
Gross profit 220,587.00 224,726.00 215,265.00 213,952.00 215,265.00 215,244.70 216,688.00 216,978.60 217,249.20 211,366.00 221,970.00 224,094.80 2,613,386.30
Expense
Depreciation 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 15,060.00
Total operating
expense 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 182,940.00
EBIT 205,342.00 209,481.00 200,020.00 198,707.00 200,020.00 199,999.70 201,443.00 201,733.60 202,004.20 196,121.00 206,725.00 208,849.80 2,430,446.30
Insurance 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 15,600.00
Interest paid 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 580,027.08
Taxable income 155,706.41 159,845.41 150,384.41 149,071.41 150,384.41 150,364.11 151,807.41 152,098.01 152,368.61 146,485.41 157,089.41 159,214.21 1,834,819.22
Taxes(12.5%) 19,463.30 19,980.68 18,798.05 18,633.93 18,798.05 18,795.51 18,975.93 19,012.25 19,046.08 18,310.68 19,636.18 19,901.78 229,352.40
Net income 136,243.11 139,864.73 19,463.30 130,437.48 131,586.36 131,568.60 132,831.48 133,085.76 133,322.53 128,174.73 137,453.23 139,312.43 1,605,466.82
Retain Earning Beg 134953 379,498.39 279,727.82 509,447.04 625,845.96 743,786.44 864,833.37 986,350.39 1,106,806.30 1,220,211.47 1,343,289.14 1,466,910.89
Rerain Earning End 136,243.11 519,363.12 299,191.12 639,884.52 757,432.32 875,355.04 997,664.85 1,119,436.15 1,240,128.84 1,348,386.20 1,480,742.37 1,606,223.32
หนา 63
Revenue
Sale 457,810 466,130 447,650 449,095 448,595 451,755 452,365 452,685 452,940 454,760 456,250 465,525 5,455,560
Net sale 457,810 466,130 447,650 449,095 448,595 451,755 452,365 452,685 452,940 454,760 456,250 465,525 5,455,560
Cost of good sold
Cost of good sold 219,983 224,415 214,894.80 215568 215328.6 217065.6 217395 217622.88 217763.64 232,700.40 219,386 223,920 2,636,043
Gross profit 237,826.60 241,715.00 232,755.20 233,527.00 233,266.40 234,689.40 234,970.00 235,062.12 235,176.36 222,059.60 236,864.20 241,605.00 2,819,516.88
Expense
Depreciation 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 15,060.00
Total operating
expense 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 182,940.00
EBIT 222,581.60 226,470.00 217,510.20 218,282.00 218,021.40 219,444.40 219,725.00 219,817.12 219,931.36 206,814.60 221,619.20 226,360.00 2,636,576.88
Insurance 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 15,600.00
Interest paid 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 580,027.08
Taxable income 172,946.01 176,834.41 167,874.61 168,646.41 168,385.81 169,808.81 170,089.41 170,181.53 170,295.77 157,179.01 171,983.61 176,724.41 2,040,949.80
Taxes(12.5%) 21,618.25 22,104.30 20,984.33 21,080.80 21,048.23 21,226.10 21,261.18 21,272.69 21,286.97 19,647.38 21,497.95 22,090.55 255,118.73
Net income 151,327.76 154,730.11 21,618.25 147,565.61 147,337.58 148,582.71 148,828.23 148,908.84 149,008.80 137,531.63 150,485.66 154,633.86 1,785,831.08
Retain Earning Beg 157799.25 540,919.26 302,270.57 661,440.67 778,988.46 896,911.18 1,019,220.99 1,140,992.29 1,261,684.98 1,369,942.34 1,502,298.52 1,627,779.47
Rerain Earning End 151,327.76 695,649.37 323,888.82 809,006.27 926,326.05 1,045,493.89 1,168,049.22 1,289,901.13 1,410,693.78 1,507,473.97 1,652,784.17 1,782,413.32
หนา 64
Revenue
Sale 480,085 482,960 463,815 465,260 465,370 467,030 468,195 469,470 471,190 463,425 472,245 477,410 5,646,455
Net sale 480,085 482,960 463,815 465,260 465,370 467,030 468,195 469,470 471,190 463,425 472,245 477,410 5,646,455
Cost of good sold
Cost of good sold 230,742 232,585 222,690.60 223363.8 223453.8 224472.6 225086.4 225610.2 225790.2 222,541.20 227,212 229,741 2,713,289
Gross profit 249,343.00 250,374.80 241,124.40 241,896.20 241,916.20 242,557.40 243,108.60 243,859.80 245,399.80 240,883.80 245,032.80 247,668.80 2,933,165.60
Expense
Depreciation 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 15,060.00
Total operating
expense 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 182,940.00
EBIT 234,098.00 235,129.80 225,879.40 226,651.20 226,671.20 227,312.40 227,863.60 228,614.80 230,154.80 225,638.80 229,787.80 232,423.80 2,750,225.60
Insurance 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 15,600.00
Interest paid 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 580,027.08
Taxable income 184,462.41 185,494.21 176,243.81 177,015.61 177,035.61 177,676.81 178,228.01 178,979.21 180,519.21 176,003.21 180,152.21 182,788.21 2,154,598.52
Taxes(12.5%) 23,057.80 23,186.78 22,030.48 22,126.95 22,129.45 22,209.60 22,278.50 22,372.40 22,564.90 22,000.40 22,519.03 22,848.53 269,324.82
Net income 161,404.61 162,307.43 23,057.80 154,888.66 154,906.16 155,467.21 155,949.51 156,606.81 157,954.31 154,002.81 157,633.18 159,939.68 1,885,273.71
Retain Earning Beg 172883.9 717,205.51 326,968.27 830,562.42 947,882.19 1,067,050.03 1,189,605.37 1,311,457.27 1,432,249.92 1,529,030.12 1,674,340.32 1,803,969.47
Rerain Earning End 161,404.61 879,512.94 350,026.07 985,451.07 1,102,788.35 1,222,517.24 1,345,554.87 1,468,064.08 1,590,204.23 1,683,032.92 1,831,973.50 1,963,909.15
หนา 65
5.2 Cash flow
Beloved Cup Coffee shop
Cash Flow Statement
For the Year ending 31 Dec
Cash at beginning of year 1
First year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ToTal
Operations
Cash receipts from customers 342,850 347,750 331,595 333,875 333,265 336,705 341,925 344,315 342,260 326,100 345,590 348,145 4,074,375
Cash paid for
Inventory purchase -124,102.00 - - - - - - - - - - - 124,102.00

General operating and administrative -
expenses -19,620.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 176,040.00
Wage expenses -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -108,000.00
Insurance -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -15,600.00
Interest -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -580,027.08
Operation expense -13,990.00 -13,990.00 -13,990.00 -13,990.00 -13,990.00 -13,990.00 -13,990.00 -13,990.00 -13,990.00 -13,990.00 -13,990.00 -13,990.00 -167,880.00
Net Cash Flow from Operations 126,502.41 260,904.41 244,749.41 247,029.41 246,419.41 249,859.41 255,079.41 257,469.41 255,414.41 239,254.41 258,744.41 261,299.41 3,150,929.92
Investing Activities
Cash paid for - - - - - - - - - - -
Purchase of property and equipment 4577722 - - - - - - - - - - - 4577722
Net Cash Flow from Investing Activities 4577722 4577722
Financing Activities - - - - - - - - - - - - -
Cash receipts from
Borrowing 6000000 6000000
Cash paid for
Repayment of loans 28,335.59 28,430.04 28,524.81 28,619.89 28,715.29 28,811.01 28,907.05 29,003.40 29,100.08 29,197.08 29,294.41 29,392.05 346,330.70
Net Cash Flow from Financing 5,971,664.4
Activities 1 28,430.04 28,524.81 28,619.89 28,715.29 28,811.01 28,907.05 29,003.40 29,100.08 29,197.08 29,294.41 29,392.05 6,289,659.52
1,520,444.8
Net Increase in Cash 2 289,334.45 273,274.22 275,649.30 275,134.70 278,670.42 283,986.46 286,472.81 284,514.49 268,451.49 288,038.82 290,691.46 4,614,663.44
Cash at beginning of Year 1,520,444.82 1809779.27 1,838,399.16 2,358,702.79 2,633,837.49 2,912,507.91 3,196,494.37 3,482,967.18 3,767,481.67 4,035,933.16 4,323,971.98
หนา 66
Cash at Endung Year 1520444.82 1,809,779.27 2,083,053.49 2,358,702.79 2,633,837.49 2,912,507.91 3,196,494.37 3,482,967.18 3,767,481.67 4,035,933.16 4,323,971.98 4,614,663.44
Cash Flow Statement
Operations
Cash paid for
Inventory purchase - - - - - - - - - - -
expenses -19,620.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 176,040.00
Wage expenses -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -108,000.00
Insurance -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -15,600.00
Interest -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -580,027.08
Cash paid for - - - - - - - - - - -
Purchase of property and equipment - - - - - - - - - - -
Net Cash Flow from Investing Activities
Cash receipts from
Borrowing
Cash paid for
Net Cash Flow from Financing
Activities 22,422.94 22,525.71 22,628.96 22,732.67 22,836.86 22,941.53 23,046.68 23,152.31 23,258.43 23,365.03 23,472.12 23,579.70 275,962.94
Net Increase in Cash 304,492.35 313,705.12 304,548.37 304,152.08 304,371.27 304,960.94 307,071.09 307,786.72 308,087.84 308,229.44 311,881.53 313,599.11 3,692,885.86
Cash at beginning of Year 1520444.82 1,809,779.27 2083053.49 2,358,702.79 2,633,837.49 2,912,507.91 3,196,494.37 3,482,967.18 3,767,481.67 4,035,933.16 4,323,971.98 4,614,663.44
หนา 67
1,824,937.1
Cash at Endung Year 7 2,123,484.39 2,387,601.86 2,662,854.87 2,938,208.76 3,217,468.85 3,503,565.46 3,790,753.90 4,075,569.51 4,344,162.60 4,635,853.51 4,928,262.55
Cash Flow Statement
Operations
Cash paid for
expenses -19,620.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 176,040.00
Wage expenses -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -108,000.00
Insurance -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -15,600.00
Interest -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -580,027.08
Cash paid for - - - - - - - - - - -
Cash receipts from
Borrowing
Cash paid for
Activities 14,724.93 14,816.96 14,909.56 15,002.75 15,096.52 15,190.87 15,285.81 15,381.35 15,477.48 15,574.22 15,671.55 15,769.50 182,901.50
หนา 68
2,170,191.5
Cash Flow Statement
Operations
Cash paid for
expenses -19,620.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 176,040.00
Wage expenses -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -108,000.00
Insurance -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -15,600.00
Interest -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -580,027.08
Cash paid for - - - - - - - - - - -
Cash receipts from
Borrowing
Cash paid for
Activities 7,210.05 7,267.13 7,324.66 7,382.65 7,441.10 7,500.01 7,559.38 7,619.23 7,679.54 7,740.34 7,801.62 7,863.38 90,389.09
หนา 69
2,540,875.9
Cash Flow Statement
Operations
Cash paid for
expenses -19,620.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 -14,220.00 176,040.00
Wage expenses -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -9,000.00 -108,000.00
Insurance -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -1,300.00 -15,600.00
Interest -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -48,335.59 -580,027.08
Cash paid for - - - - - - - - - - -
Cash receipts from
Borrowing
Cash paid for
Activities 7,925.63 7,988.38 8,051.62 8,115.36 8,179.61 8,244.36 8,309.63 8,375.42 8,441.72 8,508.55 8,575.91 8,643.80 99,359.99
หนา 70
2,936,641.0
หนา 71
5.3 Balance sheet
Balance Sheet Year 1
Assets
Current Assets
Cash 1,520,444.82 1,809,779.27 2,083,053.49 2,358,702.79 2,633,837.49 2,912,507.91 3,196,494.37 3,482,967.18 3,767,481.67 4,035,933.16 4,323,971.98 4,614,663.44 18,632,974.88
Account receivable 342,850.00 347,750.00 331,595.00 333,875.00 333,265.00 336,705.00 341,925.00 344,315.00 342,260.00 326,100.00 345,590.00 348,145.00 4,074,375.00
Inventory 164,716.56 167,436.00 159,309.00 160,326.00 159,996.60 161,793.00 164,367.00 165,474.00 164,471.40 156,510.00 166,177.80 167,419.80 1,957,997.16
Total Current Assets 2,028,011.38 2,324,965.27 2,573,957.49 2,852,903.79 3,127,099.09 3,411,005.91 3,702,786.37 3,992,756.18 4,274,213.07 4,518,543.16 4,835,739.78 5,130,228.24 24,665,347.04
Fixed Assets
Land & building 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 54,000,000.00
Machine & Equipment 77,722.00 - - - - - - - - - - - 77,722.00

Less:Accumulated
Depreciation 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 1,255.00 15,060.00
Total Fixed Assets 4,576,467.00 4,498,745.00 4,498,745.00 4,498,745.00 4,498,745.00 4,498,745.00 4,498,745.00 4,498,745.00 4,498,745.00 4,498,745.00 4,498,745.00 4,498,745.00 54,062,662.00
Total Assets 6,604,478.38 6,823,710.27 7,072,702.49 7,351,648.79 7,625,844.09 7,909,750.91 8,201,531.37 8,491,501.18 8,772,958.07 9,017,288.16 9,334,484.78 9,628,973.24 78,728,009.04
Liability & Owners' Equity
Current Liabilities - - - - - - - - - - - - -
Accounts Payable 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 580,027.08
Long-term Debt 6,000,000.00 5,951,664.41 5,903,328.82 5,854,993.23 5,806,657.64 5,758,322.05 5,709,986.46 5,661,650.87 5,613,315.28 5,564,979.69 5,516,644.10 5,468,308.51 68,809,851.06
Total liability 6,048,335.59 6,000,000.00 5,951,664.41 5,903,328.82 5,854,993.23 5,806,657.64 5,758,322.05 5,709,986.46 5,661,650.87 5,613,315.28 5,564,979.69 5,516,644.10 69,389,878.14
Owners' Equity
หนา 72
Capital 556,142.79 823,710.27 1,121,038.08 1,448,319.97 1,770,850.86 2,103,093.27 2,443,209.32 2,781,514.72 3,111,307.20 3,403,972.88 3,769,505.09 4,112,329.14 9,338,130.90
Total Ownets' Equity 556,142.79 823,710.27 1,121,038.08 1,448,319.97 1,770,850.86 2,103,093.27 2,443,209.32 2,781,514.72 3,111,307.20 3,403,972.88 3,769,505.09 4,112,329.14 9,338,130.90
Total Liability & Owners'

Equity 6,604,478.38 6,823,710.27 7,072,702.49 7,351,648.79 7,625,844.09 7,909,750.91 8,201,531.37 8,491,501.18 8,772,958.07 9,017,288.16 9,334,484.78 9,628,973.24 78,728,009.04
Assets
Current Assets
Cash 1,824,937.17 2,123,484.39 2,387,601.86 2,662,854.87 2,938,208.76 3,217,468.85 3,503,565.46 3,790,753.90 4,075,569.51 4,344,162.60 4,635,853.51 4,928,262.55 8,621,148.41
Account receivable 13,990.00 13,990.00 13,990.00 13,990.00 13,990.00 13,990.00 13,990.00 13,990.00 13,990.00 13,990.00 13,990.00 13,990.00 167,880.00
Inventory 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 15,245.00 182,940.00
Fixed Assets
Land & building 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 54,000,000.00
Machine & Equipment - - - - - - - - - - - - -

Less:Accumulated
Depreciation 130,896.41 132,419.41 128,190.41 127,929.81 127,933.75 128,055.87 129,082.21 129,362.81 129,483.11 129,744.01 131,237.01 132,038.81 1,556,373.62
Total Assets 6,223,275.76 6,520,299.98 6,788,646.45 7,064,160.06 7,339,510.01 7,618,647.98 7,903,718.25 8,190,626.09 8,475,321.40 8,743,653.59 9,033,851.50 9,325,458.74 61,415,594.79
Accounts Payable 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 580,027.08
Long-term Debt 5,419,972.92 5,371,637.33 5,323,301.74 5,274,966.15 5,226,630.56 5,178,294.97 5,129,959.38 5,081,623.79 5,033,288.20 4,984,952.61 4,936,617.02 4,888,281.43 61,849,526.10
หนา 73
Total liability 5,468,308.51 5,419,972.92 5,371,637.33 5,323,301.74 5,274,966.15 5,226,630.56 5,178,294.97 5,129,959.38 5,081,623.79 5,033,288.20 4,984,952.61 4,936,617.02 62,429,553.18
Owners' Equity
-
Capital 754,967.25 1,100,327.06 1,417,009.12 1,740,858.32 2,064,543.86 2,392,017.42 2,725,423.28 3,060,666.71 3,393,697.61 3,710,365.39 4,048,898.89 4,388,841.72 1,013,958.39
-
Total Ownets' Equity 754,967.25 1,100,327.06 1,417,009.12 1,740,858.32 2,064,543.86 2,392,017.42 2,725,423.28 3,060,666.71 3,393,697.61 3,710,365.39 4,048,898.89 4,388,841.72 1,013,958.39

Equity 6,223,275.76 6,520,299.98 6,788,646.45 7,064,160.06 7,339,510.01 7,618,647.98 7,903,718.25 8,190,626.09 8,475,321.40 8,743,653.59 9,033,851.50 9,325,458.74 61,415,594.79
Assets
Current Assets
Cash 2,170,191.51 2,481,785.76 2,728,385.83 3,001,177.03 3,279,014.69 3,558,339.13 3,847,280.68 4,135,119.66 4,420,641.40 4,678,221.23 4,989,954.47 5,286,571.46 0.00
Account receivable 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 48,335.59 580,027.08
Inventory 137,380.61 141,002.23 19,625.80 131,574.98 132,723.86 132,706.10 133,968.98 134,223.26 134,460.03 129,312.23 138,590.73 140,449.93 1,619,116.82
Fixed Assets
Land & building 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 54,000,000.00

Less:Accumulated
Depreciation - - - - - - - - - - - - -
Total Assets 6,855,907.71 7,171,123.58 7,296,347.22 7,681,087.60 7,960,074.14 8,239,380.82 8,529,585.25 8,817,678.51 9,103,437.02 9,355,869.05 9,676,880.79 9,975,356.98 56,199,143.90
หนา 74
Accounts Payable - - - - - - - - - - - - -
Long-term Debt 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 58,079,350.08
Total liability 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 58,079,350.08
Owners' Equity
-
Capital 2,015,961.87 2,331,177.74 2,456,401.38 2,841,141.76 3,120,128.30 3,399,434.98 3,689,639.41 3,977,732.67 4,263,491.18 4,515,923.21 4,836,934.95 5,135,411.14 1,880,206.18
-
Total Ownets' Equity 2,015,961.87 2,331,177.74 2,456,401.38 2,841,141.76 3,120,128.30 3,399,434.98 3,689,639.41 3,977,732.67 4,263,491.18 4,515,923.21 4,836,934.95 5,135,411.14 1,880,206.18

Equity 6,855,907.71 7,171,123.58 7,296,347.22 7,681,087.60 7,960,074.14 8,239,380.82 8,529,585.25 8,817,678.51 9,103,437.02 9,355,869.05 9,676,880.79 9,975,356.98 56,199,143.90
Assets
Current Assets
Cash 2,540,875.97 2,864,982.30 3,095,029.90 3,369,379.09 3,646,720.20 3,928,658.55 4,218,214.47 4,506,268.30 4,792,050.35 5,052,335.98 5,364,630.50 5,670,364.25 0.00
Account receivable - - - - - 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Inventory - - - - - 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Current Assets 2,540,875.97 2,864,982.30 3,095,029.90 3,369,379.09 3,646,720.20 3,928,658.55 4,218,214.47 4,506,268.30 4,792,050.35 5,052,335.98 5,364,630.50 5,670,364.25 -
Fixed Assets
Land & building 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 54,000,000.00

Less:Accumulated
Depreciation 480,085.00 482,960.00 463,815.00 465,260.00 465,370.00 467,030.00 468,195.00 469,470.00 471,190.00 463,425.00 472,245.00 477,410.00 5,646,455.00
หนา 75
Total Assets 6,560,790.97 6,882,022.30 7,131,214.90 7,404,119.09 7,681,350.20 7,961,628.55 8,250,019.47 8,536,798.30 8,820,860.35 9,088,910.98 9,392,385.50 9,692,954.25 48,353,545.00
Long-term Debt 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 58,079,350.08
Total liability 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 58,079,350.08
Owners' Equity
-
Capital 1,720,845.13 2,042,076.46 2,291,269.06 2,564,173.25 2,841,404.36 3,121,682.71 3,410,073.63 3,696,852.46 3,980,914.51 4,248,965.14 4,552,439.66 4,853,008.41 9,725,805.08
-

Equity 6,560,790.97 6,882,022.30 7,131,214.90 7,404,119.09 7,681,350.20 7,961,628.55 8,250,019.47 8,536,798.30 8,820,860.35 9,088,910.98 9,392,385.50 9,692,954.25 48,353,545.00
Assets
Current Assets
Cash 2,936,641.01 3,269,085.09 3,480,050.93 3,755,908.86 4,033,424.22 4,317,087.32 4,607,873.51 4,897,268.13 5,184,836.48 5,437,423.94 5,758,605.82 6,069,572.46 0.00
Account receivable - - - - - 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Inventory - - - - - 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Current Assets 2,936,641.01 3,269,085.09 3,480,050.93 3,755,908.86 4,033,424.22 4,317,087.32 4,607,873.51 4,897,268.13 5,184,836.48 5,437,423.94 5,758,605.82 6,069,572.46 -
Fixed Assets
หนา 76
Land & building 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 4,500,000.00 54,000,000.00

Less:Accumulated
Depreciation - - - - - - - - - - - - -
Total Assets 7,436,641.01 7,769,085.09 7,980,050.93 8,255,908.86 8,533,424.22 8,817,087.32 9,107,873.51 9,397,268.13 9,684,836.48 9,937,423.94 10,258,605.82 10,569,572.46 54,000,000.00
Long-term Debt 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 58,079,350.08
Total liability 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 4,839,945.84 58,079,350.08
Owners' Equity
-
Capital 2,596,695.17 2,929,139.25 3,140,105.09 3,415,963.02 3,693,478.38 3,977,141.48 4,267,927.67 4,557,322.29 4,844,890.64 5,097,478.10 5,418,659.98 5,729,626.62 4,079,350.08
-

Equity 7,436,641.01 7,769,085.09 7,980,050.93 8,255,908.86 8,533,424.22 8,817,087.32 9,107,873.51 9,397,268.13 9,684,836.48 9,937,423.94 10,258,605.82 10,569,572.46 54,000,000.00
หนา 77
Balance sheet
78,728,009.04
61,415,594.79
56,199,143.90
48,353,545.00 54,000,000.00
Balance
( year 1)
sheet ( year 2)
( year 3)
( year 4)
( year 5)
หนา 78
1. Payback Period
Payback Period = Cost of Project /Average Annual Income
Payback Period = 4,741,854.00 / 1,572,716.59
= 3.02 Years.
2. Net Present Value

Discount Rate 6%
Total Cash Flow

Year1 3,150,929.92
Year2 3,416,922.92
Year3 3,983,277.92
Year4 4,408,012.92
Year5 4,598,907.92
NPV = 16,286,192.21
3. Internal Rate of Return

IRR = 69%
4. Return on investment
YEAR 1 2 3 4 5
ROI 0.25% 0.29% 0.34% 0.38% 0.40%
หนา 79
Chapter6
Risk management
หนา 80
Chapter 6: Risk management
There are risks inherent with any business. However, the coffee shop business carries
with it very unique risks. Most critical is the customers' changing tastes. Another is the
economy. Restaurants rely heavily on serving persons who have expendable income. When
the economy takes a down turn, people change their spending priorities. There are less trips
to coffee chop.
6.1 External Risk

External risks refer to risks external to the business itself. These risks are largely
outside your control once you have bought the business, and can include all or some of the
following:
External risk
• Internet problems.
Identify of risk • Do not chart battery.
• When more customers, Internet problems
may occur.
Risk of technology Analyze of risk • Reason that our shop is a garden style that
may not be easy to make charts battery
because the electrical outlet is in the shop
not in the garden.
Solution of risk • We will add network more and always
upgrade internet.
• Our shop will try to add an electrical
outlet in the garden for extend the battery
charts to customers.
หนา 81
External risk
Identify of risk • School holiday, public holiday
• Rainy season
• School holiday: in this time most of
student, who are main target will go back
Risk of social Analyze of risk home, so it make we can not sell coffee ad
bakery.
• Rainy season: People do not go out from
their home or dormitory
• Reducing production costs is one thing
Resolve of risk that can help us to store a minimum loss
External risk
Identify risk • Economic recession
• Low season
• Economic recession: is a general
slowdown in economic activity over
period of time, the living standard of
Analyze risk people is decrease, they lose job and
Risk of economic income salary, it make people don’t want
to go out to drink coffee and bakery.
• Low season: Time between march-May is
low seasoning of Mae Fah Luang
University, so our target and sell total is a
low.
Resolve of risk • Increase sell price.
6.2 Internal Risk

Internal risks are essentially within our business control, provided we have the ability
and attention to detail to exercise it. Such risks could include:
หนา 82
Internal risk
• Location
• Fashion
Identify of risk • Employee
• Finance
• Operating
• Location: Our shop is situated in

the alleys. Unlike other stores that
have locations on the main road,
which makes a competing coffee
shop that can support both our
students and tourists.
• Fashion: Some people drink coffee
because follow friends or trend.
• We have the idea to receive

students to be employee in our
Analyze of risk
shop for hiring. But in the future
there may be have problems with
the students graduate. Our shop
will be shortage of workers. This
can affect to the service and our
shop must find and train new
employee.
• Finance: finance is major rule of
survivor of our shop, if our have
not way to manage money, the
shop may be to fail.
• We have not been expert of skillful
หนา 83
making a coffee yet, and lack of
professional management that
sometimes we still meet some
problems.
• We will offer ourselves through the

website. Take a photo of
atmosphere in our coffee shop and
draw map to website is another
way we can get customers are
tourists.
• Creating the impression that
customers are best to attract
customers. The store will have
developed the taste of coffee and
Resolve of risk service to our customers to be
satisfied. The shop has been
evaluated as well as customers
have been tracking customer
feedback to improve services to
meet the standard consistently.
• The store will make the rule that
before the employee quits, should
tell owner at least one month for
find new employee to be replaced
and training new employees. This
rule will be good because when an
old employee quit, new employees
can work replaced them in
suddenly and have effectively.
• To check and maintains machines
หนา 84
every month.
• We need to learn more about

making coffee and practice by
attending training coffee making
courses to be more skillful and
experienced for encouraging our
goals and plans.
6.3 Risk analysis for project feasibility
If Sales decrease by 2.5 %, 5%, 7.5%
หนา 85
Sale derease 2.5 %
Income statement
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue
Sale decrease 2.5% 101,859.38 111,611.75 125,770.63 136,389.00 141,161.38
Sale 4,074,375.00 4,464,470.00 5,030,825.00 5,455,560.00 5,646,455.00
Net sale 3,972,515.63 4,352,858.25 4,905,054.38 5,319,171.00 5,505,293.63
Cost of good sold
Cost of good sold -1,957,997.16 -2,145,129.30 -2,417,438.70 -2,636,043.12 -2,713,289.40
Gross profit 2,014,518.47 2,207,728.95 2,487,615.68 2,683,127.88 2,792,004.23
Expense
Organization expense 167,880.00 167,880.00 167,880.00 167,880.00 167,880.00
Depreciation 15,060.00 15,060.00 15,060.00 15,060.00 15,060.00
Marketing expense - - - -
Total operating expense 182,940.00 182,940.00 182,940.00 182,940.00 182,940.00
EBIT 1,831,578.47 2,024,788.95 2,304,675.68 2,500,187.88 2,609,064.23
Insurance -15,600.00 -15,600.00 -15,600.00 -15,600.00 -15,600.00
Interest paid -580,027.08 -580,027.08 -580,027.08 -580,027.08 -580,027.08
Taxable income 1,235,951.39 1,429,161.87 1,709,048.60 1,904,560.80 2,013,437.15
Taxes(12.5%) 154,493.92 178,645.23 213,631.07 238,070.10 251,679.64
Net income 1,081,457.46 1,250,516.64 1,495,417.52 1,666,490.70 1,761,757.50
Net income(Sale decrease 2.5%)

2,000,000.00
1,500,000.00
1,000,000.00
500,000.00
0.00
Net income
Sale derease 5 %
หนา 86
Income statement
Revenue
Sale decrease 5% 203,718.75 223,223.50 251,541.25 272,778.00 282,322.75

Sale 4,074,375.00 4,464,470.00 5,030,825.00 5,455,560.00 5,646,455.00
Net sale 3,870,656.25 4,241,246.50 4,779,283.75 5,182,782.00 5,364,132.25
Cost of good sold
Cost of good sold -1,957,997.16 -2,145,129.30 -2,417,438.70 -2,636,043.12 -2,713,289.40

Gross profit 1,912,659.09 2,096,117.20 2,361,845.05 2,546,738.88 2,650,842.85
Expense
Organization
expense 167,880.00 167,880.00 167,880.00 167,880.00 167,880.00
Depreciation 15,060.00 15,060.00 15,060.00 15,060.00 15,060.00
Marketing expense - - - - -
Total operating
expense 182,940.00 182,940.00 182,940.00 182,940.00 182,940.00
EBIT 1,729,719.09 1,913,177.20 2,178,905.05 2,363,798.88 2,467,902.85
Insurance -15,600.00 -15,600.00 -15,600.00 -15,600.00 -15,600.00
Interest paid -580,027.08 -580,027.08 -580,027.08 -580,027.08 -580,027.08
Taxable income 1,134,092.01 1,317,550.12 1,583,277.97 1,768,171.80 1,872,275.77
Taxes(12.5%) 141,761.50 164,693.77 197,909.75 221,021.48 234,034.47
Net income 992,330.51 1,152,856.36 1,385,368.22 1,547,150.33 1,638,241.30
Net income(Sale decrease 5%)

2,000,000.00
1,500,000.00
1,000,000.00
500,000.00 Net income
0.00
Year Year Year Year Year
1 2 3 4 5
หนา 87
Sale derease 7.5 %
Income statement
Revenue
Sale decrease 7.5% 305,578.13 334,835.25 377,311.88 409,167.00 423,484.13

Sale 4,074,375.00 4,464,470.00 5,030,825.00 5,455,560.00 5,646,455.00
Net sale 3,768,796.88 4,129,634.75 4,653,513.13 5,046,393.00 5,222,970.88
Cost of good sold
Cost of good sold -1,957,997.16 -2,145,129.30 -2,417,438.70 -2,636,043.12 -2,713,289.40

Gross profit 1,810,799.72 1,984,505.45 2,236,074.43 2,410,349.88 2,509,681.48
Expense

Depreciation 15,060.00 15,060.00 15,060.00 15,060.00 15,060.00
EBIT 1,627,859.72 1,801,565.45 2,053,134.43 2,227,409.88 2,326,741.48
Insurance -15,600.00 -15,600.00 -15,600.00 -15,600.00 -15,600.00
Interest paid -580,027.08 -580,027.08 -580,027.08 -580,027.08 -580,027.08
Taxable income 1,032,232.64 1,205,938.37 1,457,507.35 1,631,782.80 1,731,114.40
Taxes(12.5%) 129,029.08 150,742.30 182,188.42 203,972.85 216,389.30
Net income 903,203.56 1,055,196.07 1,275,318.93 1,427,809.95 1,514,725.10
Net income(Sale decrease 7.5%)

2000000
1500000
1000000
500000 Net income
0
หนา 88
Sale decrease(2.5%, 5%, 7.5%)
2,000,000.00
1,500,000.00
1,000,000.00
500,000.00
0.00
Net income 2.5% Net income 5% Net income 7.5%
If interest increase by 2.5 %, 5%, 7.5%
Interest increase 2.5 %

Income statement
Revenue
Sale 4,074,375.00 4,464,470.00 5,030,825.00 5,455,560.00 5,646,455.00
Net sale 4,074,375.00 4,464,470.00 5,030,825.00 5,455,560.00 5,646,455.00
Cost of good sold
Cost of good sold 1,957,997.16 2,145,129.30 2,417,438.70 2,636,043.12 2,713,289.40
Gross profit 2,116,377.84 2,319,340.70 2,613,386.30 2,819,516.88 2,933,165.60
Expense
Depreciation 15,060.00 15,060.00 15,060.00 15,060.00 15,060.00
Marketing expense
- - - - -
EBIT 1,933,437.84 2,136,400.70 2,430,446.30 2,636,576.88 2,750,225.60
Insurance 15,600.00 15,600.00 15,600.00 15,600.00 15,600.00
Interest paid 580,027.08 580,027.08 580,027.08 580,027.08 580,027.08
Interest paid increase 14,500.68 14,500.68 14,500.68 14,500.68 14,500.68
2.5%
Taxable income 1,323,310.08 1,526,272.94 1,820,318.54 2,026,449.12 2,140,097.84
Taxes(12.5%) 165,413.76 190,784.12 227,539.82 253,306.14 267,512.23
Net income 1,157,896.32 1,335,488.83 1,592,778.73 1,773,142.98 1,872,585.61
หนา 89
Net income(Interest increase 2.5%)
2,000,000.00
1,500,000.00
1,000,000.00
0.00
1 2 3 4 5
Interest increase 5 %
Income statement
Revenue
Sale 4,074,375.00 4,464,470.00 5,030,825.00 5,455,560.00 5,646,455.00
Net sale 4,074,375.00 4,464,470.00 5,030,825.00 5,455,560.00 5,646,455.00
Cost of good sold
Cost of good sold 1,957,997.16 2,145,129.30 2,417,438.70 2,636,043.12 2,713,289.40
Gross profit 2,116,377.84 2,319,340.70 2,613,386.30 2,819,516.88 2,933,165.60
Expense
Depreciation 15,060.00 15,060.00 15,060.00 15,060.00 15,060.00
EBIT 1,933,437.84 2,136,400.70 2,430,446.30 2,636,576.88 2,750,225.60
Insurance 15,600.00 15,600.00 15,600.00 15,600.00 15,600.00
Interest paid 580,027.08 580,027.08 580,027.08 580,027.08 580,027.08
Interest paid increase 5% 29,001.35 29,001.35 29,001.35 29,001.35 29,001.35
Taxable income 1,308,809.41 1,511,772.27 1,805,817.87 2,011,948.45 2,125,597.17
Taxes(12.5%) 163,601.18 188,971.53 225,727.23 251,493.56 265,699.65
Net income 1,145,208.23 1,322,800.73 1,580,090.63 1,760,454.89 1,859,897.52
หนา 90
Net income(Interest increase 5%)
2,000,000.00
1,500,000.00
1,000,000.00
0.00
1 2 3 4 5
Interest increase 7.5 %

Income statement
Revenue
Sale 4,074,375.00 4,464,470.00 5,030,825.00 5,455,560.00 5,646,455.00
Net sale 4,074,375.00 4,464,470.00 5,030,825.00 5,455,560.00 5,646,455.00
Cost of good sold
Cost of good sold 1,957,997.16 2,145,129.30 2,417,438.70 2,636,043.12 2,713,289.40
Gross profit 2,116,377.84 2,319,340.70 2,613,386.30 2,819,516.88 2,933,165.60
Expense
Depreciation 15,060.00 15,060.00 15,060.00 15,060.00 15,060.00
Marketing expense
- - - - -
EBIT 1,933,437.84 2,136,400.70 2,430,446.30 2,636,576.88 2,750,225.60
Insurance 15,600.00 15,600.00 15,600.00 15,600.00 15,600.00
Interest paid 580,027.08 580,027.08 580,027.08 580,027.08 580,027.08
Interest paid increase 43,502.03 43,502.03 43,502.03 43,502.03 43,502.03
7.5%
Taxable income 1,294,308.73 1,497,271.59 1,791,317.19 1,997,447.77 2,111,096.49
Taxes(12.5%) 161,788.59 187,158.95 223,914.65 249,680.97 263,887.06
Net income 1,132,520.14 1,310,112.64 1,567,402.54 1,747,766.80 1,847,209.43
หนา 91
Net income(Interest increase 7.5%)
2,000,000.00
1,500,000.00
1,000,000.00
0.00
1 2 3 4 5
Interest increase(2.5%, 5%, 7.5%)

6,000,000.00
5,000,000.00
4,000,000.00
Axis Title
Net income 7.5%

3,000,000.00
Net income 5%
2,000,000.00 Net income 2.5%
1,000,000.00
0.00
หนา 92
If Cost/Expense increase by 2.5 %, 5%,7.5%
Cost / Expense increase 2.5%

Income statement
Revenue
Sale 4074375 4464470 5030825 5455560 5646455
Net sale 4074375 4464470 5030825 5455560 5646455
Cost of good sold
Cost of good sold 1957997.16 2145129.3 2417438.7 2636043.12 2713289.4
Cost increase 48949.929 53628.2325 60435.9675 65901.078 67832.235
2.5%
Total cost 2006947.089 2198757.533 2477874.668 2701944.198 2781121.635
Gross profit 2067427.911 2265712.468 2552950.333 2753615.802 2865333.365
Expense
Organization 167880 167880 167880 167880 167880
expense
Depreciation 15060 15060 15060 15060 15060
Marketing expense
- - - - -
Total operating 182940 182940 182940 182940 182940
expense
Expense incrase 4573.5 4573.5 4573.5 4573.5 4573.5
2.5%
Total expense 187513.5 187513.5 187513.5 187513.5 187513.5
EBIT 1879914.411 2078198.968 2365436.833 2566102.302 2677819.865
Insurance 15600 15600 15600 15600 15600
Interest paid 580027.08 580027.08 580027.08 580027.08 580027.08
Taxable income 1284287.331 1482571.888 1769809.753 1970475.222 2082192.785
Taxes(12.5%) 160535.9164 185321.4859 221226.2191 246309.4028 260274.0981
Net income 1123751.415 1297250.402 1548583.533 1724165.819 1821918.687
Net income(Cost/expense increase 2.5%)

2000000
1500000
1000000
Net income
500000
0
หนา 93
Cost / Expense increase 5%
Income statement
Revenue
Sale 4074375 4464470 5030825 5455560 5646455
Net sale 4074375 4464470 5030825 5455560 5646455
Cost of good sold
Cost of good sold 1957997.16 2145129.3 2417438.7 2636043.12 2713289.4
Cost increase 5% 97899.858 107256.465 120871.935 131802.156 135664.47
Total cost 2055897.018 2252385.765 2538310.635 2767845.276 2848953.87
Gross profit 2018477.982 2212084.235 2492514.365 2687714.724 2797501.13
Expense
Organization 167880 167880 167880 167880 167880
expense
Depreciation 15060 15060 15060 15060 15060
Marketing expense
- - - - -
Total operating 182940 182940 182940 182940 182940
expense
Expense incrase 5% 9147 9147 9147 9147 9147
Total expense 192087 192087 192087 192087 192087
EBIT 1826390.982 2019997.235 2300427.365 2495627.724 2605414.13
Insurance 15600 15600 15600 15600 15600
Interest paid 580027.08 580027.08 580027.08 580027.08 580027.08
Taxable income 1230763.902 1424370.155 1704800.285 1900000.644 2009787.05
Taxes(12.5%) 153845.4878 178046.2694 213100.0356 237500.0805 251223.3813
Net income 1076918.414 1246323.886 1491700.249 1662500.564 1758563.669
Net income(Cost/expense increase 5%)

2000000
1500000
1000000
Net income
500000
0
หนา 94
Cost / Expense increase 7.5%
Income statement
Revenue
Sale 4074375 4464470 5030825 5455560 5646455
Net sale 4074375 4464470 5030825 5455560 5646455
Cost of good sold
Cost of good sold 1957997.16 2145129.3 2417438.7 2636043.12 2713289.4
Cost increase 7.5% 146849.787 160884.6975 181307.9025 197703.234 203496.705
Total cost 2104846.947 2306013.998 2598746.603 2833746.354 2916786.105
Gross profit 1969528.053 2158456.003 2432078.398 2621813.646 2729668.895
Expense
Organization 167880 167880 167880 167880 167880
expense
Depreciation 15060 15060 15060 15060 15060
Marketing expense
- - - - -
Total operating 182940 182940 182940 182940 182940
expense
Expense incrase 7.5% 13720.5 13720.5 13720.5 13720.5 13720.5
Total expense 196660.5 196660.5 196660.5 196660.5 196660.5
EBIT 1772867.553 1961795.503 2235417.898 2425153.146 2533008.395
Insurance 15600 15600 15600 15600 15600
Interest paid 580027.08 580027.08 580027.08 580027.08 580027.08
Taxable income 1177240.473 1366168.423 1639790.818 1829526.066 1937381.315
Taxes(12.5%) 147155.0591 170771.0528 204973.8522 228690.7583 242172.6644
Net income 1030085.414 1195397.37 1434816.965 1600835.308 1695208.651
Net income(Cost/expense increase 7.5%)

2000000
1500000
1000000
500000 Net income
0
1 2 3 4 5
หนา 95
Cost/expense increase(2.5%, 5%, 7.5%)
2000000
1500000
1000000
500000
0
Net incomev 2.5% Net income 5% Net income 7.5%
6.4 How to reduce risk
We will carry on and accept the risk of our business which combines the internal and
external risk, including competitor, environment, social, economy and technology. By
analyze and evaluate the risk for look-forward the effects which can occur with our business.
First we will make the strategy for hold on the internal risk of business. Our service must to
have the standard service and we will bring customers complain improved and developed
product for make the differentiate products to attract more customers, customer’s satisfy and
make customer’s loyalty. In the another hand, the external risk need to concern ,as well as to
adapt our business to have more suitable with the situation of social, environment and also
economic. Moreover we have insurance for protect our company.
หนา 96
Chapter 7
Conclusion
หนา 97
Chapter 7: Summary
Summary
Everyone knew that open and management a business is difficult, If we have own
business we have to make high profit for progress the business. But Project Feasibility Study
and Evaluation Course taught we to think and analysis market feasibility, competition with
competitor, how to management the business, etc. After we knew we should apply in our
company, so the operation will be easier and can achieve objective.
Coffee shop is the meeting and relaxing place of people who age around teenager to
older people because coffee shop is suitable for small meeting of friend, co-worker, tutor and
students, etc. Coffee shop also provide bakery to eat with beverage for customer feel relax in
free time.
Process of coffee shop is running on small business and planning for provide good
service with middle price. So we plan to study the process of small business about level of
management, service, supplier, target segment, operation cost and function of internal and
external. Coffee shops are well to be just a small business and use fewer budgets to launch.
Our coffee shop concept is garden style that has a good smell and flavor of coffee with
good environment and our staff is closed to customers, so customer will feel like they are
drinking our coffee at their home.
When we set up coffee business, we have to thinking and planning about objective
that clear, reliable and make high profit to business. We have to what customer want and
meanwhile we have to study competitor, find out the way to make profit from customer
and try to do anything that customers are satisfied. We take the feedback to improve our
service or make a new product. We choose right strategies to adapt with the situation.
We can manage risk and take advantage on competitors. Timeframe, tell about period of
time in processing business.
In set up business, we have to tell about background of company, products and
services and the process of the product in coffee shop business. From 1972-1979 The Thai /
UN Crop Replacement and Community Development Project was implemented as a pilot
project to explore the viability of replacing opium poppy cultivation with a variety of
หนา 98
substitute crops and alternative sources of income, combined with related community
development activities. It was found that Arabica coffee is a cash crop that can be promoted
to replace opium in the long run and can provide high cash incomes, not only to poppy
growing farmers, but to a large number of other farmers in the highlands as well. The main
reasons for this are that land and climate are suitable for coffee growing, transport and
storage of coffee is relatively easy, yields are good and that there is a strong demand for good
quality highland coffee. Thus Arabica coffee is very appropriate and viable as a cash crop to
replace opium in the highlands of Thailand.
Our shop are order the coffee beans from Doi Chaang Coffee Company because Doi
Chaang Coffee is a single-origin, premium Arabica. It is certified organic, forest canopy
grown, hand picked, fresh water processed, sun dried, hand sorted and freshly roasted to
ensure the highest possible quality for each cup of Doi Chaang Coffee. Naturally low in
caffeine, it has a complex and flavourful profile which is enhanced and released through
detailed cultivating, processing and roasting methods.
Beyond from detail of coffee, in about business we must know situation analysis,
detail competitive in near around our business, type of coffee and bakery to serve to
customer, such as Mocha, Late, Cappuccino, Espresso and Americano and also have soft
drink and bakery such as Cocoa, Ice tea, coconut cake, chocolate cake etc. For service, our
shop is closely to customers let they fell lime at home, provide a restroom, non-smoking area
and open soft music for customer feel relax. We will set vision and mission. Our vision is our
shop wants to be a leader in health and tested, becoming the preferred brand in the majority
of our chosen market; keep revenue increasing every year; developed by the research and
development; make customers are happy and impressed with the product as much as possible.
Our vision, provide a friendly, comfortable atmosphere for customers, make sure customers
can receive quality beverage and bakery service and entertainment at a reasonable price.
About strategy, we know some business level such as corporate level include vision,
objective; business level include price differentiation, service differentiation, technology
differentiation, personnel differentiation, image differentiation; functional level have
marketing, financial, human resource management.
In about market analysis we must know political analysis, political might positively
affect to business investment or negatively affect as obstacle in business success. So we must
follow political news and apply in our business. Economy analysis, it is out of control from
หนา 99
business and others competitors must face as same as politic. Social and environment
analysis,
Business in different industry, market, and region will face different risk. Because
business operation environment and market environment have different life cycle and
customer behavior. Technology analysis, technology change rapidly today , it change can
make change market too, such as E-commerce happen have a new trade system then have E-
Marketing happens. It can help to operate and get more market. Competition analysis (3c
analysis), such as competitor analysis, it define the competitors who provide service as same
as us, they service strength and weakness.
Our competitors are coffee shop that set up around Mae Fah Luang University such as
Sa Wat Dee Chiang Rai coffee, Coffee hut MFU, Boss Coffee, I-Aoun coffee, Groon Glin
coffee, Banoffe coffee shop. Each coffee shop is present taste of coffee and modern style
coffee shop but our coffee shops have unique strength. We research and collecting
information about customers needs and want, our shop is located near highway; the shop has
own unique is pink’s shop that easily customers remember them; for customer provide more
kinds of menus than others shop; provides Wi-Fi service; facilities always clean. Because of
we focus on students, staff who work in Mae Fah Luang University and casual visitors by set
a middle price because we think that they are have a purchasing power. From research we
found Boss Coffee shop Chiang Rai product same other shop; the shop haven’t website for
introduce the product and restroom; the shop always closed; service quality not good. I-Aoun
coffee is open style haven’t doors, so always have air and noise pollution; haven’t area of car
parking and website for advertising. Everything information we will use to improve and
developing our coffee business then we set plan and strategy about sell coffee, pull
customers, promotion.
In about STP analysis, like we said about the strategy that target is students and staff
who work in Mae Fah Luang Univesity. So most of customer would be people who free and
have a fill time to relax or small meeting even date. The segmentation we divide into
3segmentas for service peoples in each: students (large segmentation), staff and traveler.
Finally we must know and understanding about risk in management of business. The
analyzing of business risk factors, we will use our business as a set. Ten look environment
around business and business itself that what is the important point. If this point is very
important our business may get some problem. The business risk analysis starts from
หนา 100
(1) Determine risk such as politic, politics is out of control by business. Many
competitors have to face with this too. Politic might positively and negative affect to
business, so we always follow politic news. Human Resource factor, many
employees tend to be younger and are attempting to move into a career, when they
find “dream job”, they will move on. Economic factors, today recession economic
affect directly to our business, so there are many coffee businesses have to fail and
close their business. Customers factors, customer behavior, many customers have low
price first.
(2) Evaluate risk, when we determine the critical risk after, must well evaluate again the
how risk is violent. We set list risk and order following violence what risk affects our
business.
Set the solution, in part of customer factors, because to our target customer is students, so
when have vacation, rainy season the customers will decrease. At this time we will offer low
price of product but remain high quality and hold some discount activity to attract customer.
We also create service mind to make our customers feel good and satisfaction. Economic
factors, when economic recession happen, we should study and evaluate economic condition,
make preventive action, increase the price in some products, take some discount and privilege
action sales promotion.
หนา 101
Reference
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URL http://www.phtnet.org/research/view-abstract.asp?research_id=ag272
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Narongchai. (2009).หลอดดูดน้ํา หลอดกาแฟ หลอดน้ําปน [www page]. URL

http://nc.tarad.com/product.detail_0_th_2494938
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หนา 106
หนา 107

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Preface

This Project is a part of 1203302 Project Feasibility Study and EvaluationCourse in

Chapter 2: Industry Profile

Chapter 3 :Market Feasibility Study

Chapter 4 Technical Feasibility

Chapter 5:Financial analysis

Chapter 6: Risk management

Reference ........................................................................................................................................... 102

1.1 Back ground and significance of project

Price of coffee product according to type

Year Instant coffee Coffee can Premium coffee shop

We consider premium coffee only, we analyze that the quantity of selling in

Number student at Mae Fah Luang

7054 8008 8950 9678

Statistic of traveller in Chiang Rai

year 2549 year 2550 year 2551

 To study about the situation of coffee shop trend in nowadays.

1.3 Benefits of Project

 Know about marketing planning of Coffee and bakery shop.

1.4 Activities/Time Frame

Operation Method Nov Dec Jan Feb

Coffee consumption(around the

Consumption demand is growing in Thailand. Imports of instant coffee have

Types of Coffee Cultivated in Thailand

History of Coffee in Doi Chaang Village

 Coffee hut MFU

2.4 Vision of your Organization

2.6 Business Strategy

2.6.1 Corporate Level

• Technology differentiation: we provide the computer and machine to help in collect

• Personnel Differentiation: We concern with ability and experience to do coffee and

• Image Differentiation: It is defined market position by bring product’s image or

3.1 Marketing Analysis

3.2 Competition analysis (3C analysis)

3.2.1- Competitor analysis

1) Sa Wat Dee Chiang Rai coffee 4) I- Aoun coffee

3.2.1.1 Analyze business of Sa Wat Dee Chiang Rai Coffee shop

3.2.1.2 Analyze business of Coffee hut MFU

3.2.1.3 Analyze business of Boss Coffee shop Chiang Rai

3.2.1.4 Analyze business of I-Aoun coffee

3.2.1.5 Analyze business of Groon Glin coffee

3.2.1.6 Analyze business of Banoffee coffee shop

3.2.3- Competitive analysis

Five force model

-Threat of new Entrants

3.3 STP Analysis

3.4 Marketing Mix Strategy

Promotion--- We promote our shop by

3.5 Sale forecast

Sale forecast year 2

Sale forecast year 3

Sale forecast year 5

4.1 Production and Operation Analysis

4.1.1 Product Characteristic

All of our products use a high quality ingredient and equipment.

4.1.4 Facility Layout

4.1.5 Machine tool and Equipment

Equipment & Materials.

Expobar Office Control 1G 48,000 baht

Compression machine, whipping cream Brand

4 The pay box tube 800 baht

5 Tissue Box 50 baht

6 Khydohe vacuum 235 baht