Name: ALUSINE TURAY
ID Number: 22/HR /PA/760
Department: Human Resource Management
(HRM)
Level: Degree Year Two
Module: Entrepreneurial Education
Assessment Task: Assignment
Question 1
Answer:
A business plan is a formal document that outlines the goals of a business, the strategy for
achieving those goals, and the expected timeframe for execution. It typically includes sections
on the business's products or services, target market, marketing plan, operational plan, financial
projections, and management team. A well-crafted business plan serves as a roadmap for the
business's growth and can be used to attract investors, secure loans, or guide internal
decision-making.
Question 2
Answer : Sure, let's outline a business plan for a coffee shop, including a financial proposal:
1. Executive summary :
- Overview of the coffee shop business idea, location, target market, and unique selling
propositions (USPs).
- Mission statement: To provide high-quality coffee, exceptional customer service, and a
welcoming atmosphere for coffee enthusiasts.
2. Business Description :
- Name of the coffee shop: "Brew & Beyond"
- Location: Urban area with high foot traffic, near offices and residential buildings.
- Concept: A cozy, modern coffee shop offering a variety of specialty coffees, teas, light
snacks, and desserts.
- Target Market: Working professionals, students, and local residents looking for a comfortable
place to relax, work, or socialize.
3. Market Analysis:
- Industry Overview: Growing demand for specialty coffee due to increasing coffee
consumption trends.
- Target Audience: Young professionals seeking quality coffee, students needing a study
environment, and local residents looking for a community hub.
- Competition: Identify local cafes and chain coffee shops, analyze their strengths and
weaknesses.
4. Marketing and Sales Strategy :
- Branding: Develop a strong brand identity emphasizing quality, sustainability, and community
engagement.
- Pricing Strategy: Competitive pricing based on local market rates for specialty coffee.
- Promotion Strategy: Social media marketing, local community events, loyalty programs, and
partnerships with nearby businesses.
- Sales Forecast: Projected sales based on foot traffic, average ticket size, and seasonal
variations.
5. Operational plan:
- Location and Facilities: Lease a 1,500 sq ft space with seating for 30 customers, a serving
counter, kitchen area, and restroom facilities.
- Suppliers: Establish relationships with local coffee roasters, tea suppliers, and vendors for
fresh ingredients.
- Staffing: Hire experienced baristas, kitchen staff, and a manager. Develop training programs
for consistent service quality.
6. Financial plan :
- Startup Costs:
- Leasehold improvements: NLe 50,000
- Equipment (coffee machines, grinders, kitchen appliances):. NLe 30,000
- Initial inventory (coffee beans, tea leaves, snacks): NLe15,000
- Marketing and initial promotions: NLe10,000
- Licenses and permits: NLe 5,000
- Total Startup Costs: NLe110,000
- Funding Requirements:
- Owner's investment: NLe50,000
- Bank loan: NLe 60,000
- Revenue Streams:
- Coffee sales: Projected average of 200 cups/day at NLe 4.50 per cup.
- Snacks and desserts: Additional revenue, projected at NLe 500/day.
- Operating Expenses (Monthly):
- Rent:NLe 3,000
- Utilities: NLe 500
- Salaries: NLe10,000 (including payroll taxes and benefits)
- Supplies: NLe 2,000
- Marketing: NLe1,000
- Total Monthly Expenses: NLe16,500
- Break-even Analysis: Projected break-even point based on monthly expenses and average
daily sales.
7. Conclusion:
- Summarize the business plan, highlighting key points such as market opportunity,
competitive advantage, and financial viability.
- Emphasize the potential for growth through customer loyalty programs, expanding menu
offerings, and possibly franchising in the future.
This business plan serves as a comprehensive guide for starting and operating a successful
coffee shop, combining a strategic approach with financial feasibility analysis.
