BUSINESS PLAN ON Café Express & MUSIC - Final
BUSINESS PLAN ON Café Express & MUSIC - Final
BUSINESS PLAN ON Café Express & MUSIC - Final
Creation of unique and innovative environment that will differentiate from local caf To provide friendly atmosphere where customer can receive quality food , service and a entertainment at a reasonable price
As a small business, we will have a small staff of 9 members i.e Number of waiters -3 Number of cleaner-2 Number of cook-3 Security guard-1
Strengths
unique concept that brings complimentary business of caf & music together. Community connection with schools and music teachers
Weakness
high competition in coffee business segment Establish large business in music sales and rental Need to build and establish the brand in the community
Opportunities
reducing working capital needs by pursuing revenue and cost sharing model with suppliers Build a professional website to generate additional revenue stream Leverage social media site such as facebook,twitter,blog to build stronger ongoing relationship with customers
Threats
current economic downturn may have negative impact on sales due to customers desire to cut down on discretionary spend Existing online music store may take some customer away from business Potential new entrance in the coffee shop segment may hurts sales
Timmings-9am to 11pm Extension during festive season Area requirment 1000sq/ft Located near market area Presently looking for making brand name Total expense on machinery is 140000
ITEM Microwave Oven Fridge Mixer Coffe Grinder Espresso Machine Coffee Blender Musical instrument
Qty 2 4 1 1 1 1 2
Price(Rs) 16000/32000/12000/3000/2000/16000/2000/57000/-
TOTAL
140000/-
Motivating employees by giving award (Employee of the month) Training on speaking skills Hiring for short run Increase in demand can hire employees on part time basis Hiring for long run-Huge profit results into new chains in different part of cities
Nos. 3 3 2 1
a) b)
c)
a)
b)
Online marketing Website Social media Blog Offline marketing Local advertisement Event sponsership
2013 Salary of cook Salary of waiter Salary of cleaner Salary of security Rent 3*15000*12 3*8000*12 2*4000*12 1*5000*12 15000*12 540000 288000 96000 60000 180000
240000
245000
250000
3000*12
36000 1440000
36000 1561400
36000 1694440
2013 Revenue Less: Variable cost Contribution Less: Fixed Cost 1200000 NIL 1200000 1440000
Profit/Loss
Less: Interest EBT Less: Tax(30%) EAT
(240000)
12000 (252000) (75600) (176400)
88600
12000 76600 22980 53620
105560
12000 93560 28068 65492
Cost Category Real Estate Building Improvements Lease Deposit Lease Payment Furniture & fixtures Furniture Signage Utilities Electric & gas deposit Telephone Internet Equipments & Supplies Equipment purchase Office supplies Building supplies Professional fees Legal
Estimated cost (Rs) 10000 7000 3500 20000 15000 2700 500 1000 140000 15000 500 1000
Consulting Web site development Marketing and Advertisement Marketing brochures Grand opening advertising Insurance Business insurance Building insurance
Inventory Startup inventory Miscellanious Total
3000 2000
5000 10000
1500 1500
300
4000
1200000
5500
1650000
6000
1800000
Space that we have looked for is in north campus Promotional activities ,brochures etc can be suitably designed We will keep all necessary equipments like phone lines ,computers, stationery etc. Connection for electricity ,water supply etc should be taken before a month to avoid last minute failure I would start up business with family and friends
Non payment by customers Maintaining sufficient staff member Risk associated with the need to comply with laws n regulation
Standardization of food item Use of high quality ingredient Proper maintenance of financial records Environmental friendly packaging