Friendly Coffee Bar Idea - Business Plan Example

Project: Friendly Coffee Bar Overview In the fast transforming business dynamics, Coffee Bars have huge market potential. In the fast paced lives ofthe professionals, coffee bars provide the much needed outlet of relaxation and short respite from the hectic work schedules. The calm and friendly ambience of the coffee bars and the exotic taste of coffee with unique aroma helps to relax. Hence, Coffee Bar at good location (Near Town center and adjacent to Office complex) would be a highly lucrative business. Our customers would primarily consist of young professionals and just retired people whose need for social networking would be met by the shop objectives. Business vision and mission As the Sjostrand and Tyrstrup (2001) reaffirm ‘leadership is all about managing creativity’. Thus, any new business needs to be conceptualized in terms of the changing paradigms of business environment. It is also important to identify factors and issues that would help meet the challenges with efficiency and unmatched proficiency. Hence, vision and mission of the business become intrinsic part of conceptualization of a business. Vision Friendly Coffee Bar (FCB) would enter into this field with the express vision of being a one point service provider for quality coffee, prepared to satisfy the tastes of their customers ensuring adequate consideration to the environmental imperatives and social responsibilities. Mission The mission statements of the Friendly Coffee Bar are designed to meet the needs and requirements of the customers through well planned strategy which would help fulfil the long term vision of the organization. Provide quality customer service that facilitates customer satisfaction at all levels of interaction, meeting their requirements and demands. Anticipate customer’s changing needs and provide multiple services from single window. Become the best service provider in the field of fresh coffee and deliver services in the hi-tech ambience providing relaxing environment with background music, television with headset, books and journal so that people can de-stress in comfort in short time. Create and establish brand. Business description and formation FCB would be a trendy, state of the art coffee shop that would provide quality and fresh coffee to its target customers. The outlet would also educate people about the qualities of the coffee from different laces and fine techniques of roasting coffee beans to generate the distinct aroma, thus establishing personal relationship with the customers. Special consideration would be paid to the needs and requirements of the customers. The formation of the shop would be a proprietorship enterprise under the service industry, specializing in soft drinks and beverages. Compliance under the state laws and local development agency would be followed, ensuring quality service at competitive prices. Marketing goals and strategies The fast changing socio economic dynamics have created a fiercely competitive business environment that have made it imperative for one to evolve new marketing strategy in order to maintain an edge over their rivals. Since marketing primarily deals into products and services that benefit people in some way or the other, people become the most important factor in the market strategies. A good marketer always tries to exploit the personal preferences of the persons to influence his behavior as a consumer of goods and services that he wishes to sell. Marketers excel in influencing the self concept and personality traits and behavior by developing market strategies of the products, keeping in mind the prevailing lifestyles of the people. Hence, different market strategy is adopted for different group of people. Strategic marketing plans are crucial part of promoting products and services of an organization. The market plans are focused around 4Ps (product, prices, place and promotion) and a good market strategy always takes these points on a priority basis. It is equally important that while planning appropriate market strategy, proper use of SWOT (strengths, weakness, opportunities and threats) analysis is taken up. Awareness of strengths and weaknesses in the company’s resources facilitate and match the opportunities and threats so as to provide a competitive edge to their rivals. SWOT analysis is an important tool to up grade internal strengths of the company to meet the external opportunities and exploit them in a manner that would provide the companies with cutting edge advantage over their rivals. FCB would use these elements, including demographic segmentation in their market strategy to efficiently exploit the opportunities. Organizational structure Strong management team would comprise of Chief Executive Office (proprietor), one marketing manager and two marketing executives. One accountant, who would keep track of expenditures and profit, one shop supervisor and 3 assistants who would be taking care of customers. Coffee Bar operation The coffee would be prepared by the fresh coffee beans and would open from 8 a.m to 8 p.m. The lean period between 10am to 12 am in the morning and 2pm to 4 pm in the afternoon would be reserved for the retired and elderly people where special promotional scheme and discount for them would be introduced from time to time. Risk Management The changing paradigms in the global business environment have brought forth a new set of uncertainties and risks that need to be addressed urgently. While it is good to think that organized structure of business management and operation would be able to tackle the emergency situations, it would be crass bad business sense not to adapt to changing environment of competitive business that is fast incorporating global values. In such circumstances, one cannot discount the unanticipated problems and conflicting issues that might emerge as a result. It has, therefore, become important that business must try to formulate strategies to combat the anticipated and unanticipated risks in all areas of business. ‘In order to manage risk, an organization needs to know what risks it faces and to evaluate them’ (Orange Book, 2004). The risk management is based on evaluating the risks to business on a realistic basis that takes into consideration the areas that are prone to risk and which have the capacity to impact its development. Financial crisis, unethical competitive rivalry, hazardous situations, environmental concern or even terrorist attack are few of the cases that can adversely affect the business processes. Efforts would be made to meet the challenges of the anticipated and unanticipated risks through insurance and control measures. Strategic position and alliances Market strategy planning and effective communication is one of the most crucial aspects of a firm entering a new market. Creation of company’s website is necessary to advertise its various goods and services to the huge potential market in the cyber space which is accessed daily by millions of people, spread across the world. The compulsions of the emerging new dynamics in the global businesses have necessitated for people-centric policies and plans that would meet the challenges of the changing social patterns and its changing demands. Forging alliance with other companies not only helps to expand the business but also becomes hugely popular in short time. While product is of vital importance and its pricing makes it a salable item, maintaining a good database of customers is intrinsic part of market strategy which helps one to know the changing preferences of the customers in the rapidly changing times. Prices may not be very important part of the strategy with the old customers but competitive pricing helps to bring in new clients. Whenever new products are to be launched, it is important that trend in the customers’ needs and requirements are studied in advance so that appropriate strategy could be developed. Apart from the advertisement through various media, the innovative concept of introducing ‘redeemable vouchers which can be used for buying other services’ may prove to be the most attractive sale and marketing campaign which may increase the sales figure considerably mainly because ‘redeemable voucher’ is a permanent tool for getting old and new products as and when discount coupons are introduced. Tentative Funds requirements and financial planning The tentative funds requirement would be partially met by the Local Development Agency, Bank and personal contribution. The tentative expenditure details are as under: Fixed startup cost (tentative in $) License and registration 5,000.00 Infrastructure, Coffee machine, furniture and décor etc. 2,50,000.00 Brochure printing 5,000.00 Total 2,60,000.00 Recurring Cost (tentative in $) Wages (for 9 people) 1,50,000.00 Electricity and Water charges 20,000.00 Rental 10,000.00 Gas 5,000.00 Coffee beans 5,000.00 Marketing 25,000.00 Contingencies 2,000.00 Total 2,17,000.00 Future prospects Through strict financial control and quality service, success of the coffee would be ensured. It is anticipated that with innovative market strategy that is designed to add value to its business, we would be able to exploit the huge potential that has yet to be tapped, through segmented market strategy. Reference The Orange Book. (2004). ‘Management of Risk: Principle and Concepts’. HM Treasury. Norwich. Available from: < http://www.hm-treasury.gov.uk/media/3/5/FE66035B-BCDC-D4B3-11057A7707D2521F.pdf> [Accessed on 21 October, 2009]. Sjostrand, S and Tyrstrup, M. (2001). ‘Recognized and unrecognized managerial leadership’, in invisible management – The social construction of leadership. S Sjostrand, J Sandberg and M Tyrstrup (eds.). Thomson. pp 1-27. Read More