Elders Chamber Business Strategies - Example

Elders’ Chamber Business Plan Client Inserts His/her Name Client Inserts Grade Course Client Inserts Tutor’s Name 27/04/2012 COMPANY SUMMARY This business plan is purposed at securing additional funding from a bank and an interested investor. This includes £25,000 personal savings, £20, 000 bank loan, £6, 000 Princes Youth Trust Business Loan, and a grant of £4, 000 from Princes Youth Trust. Elders’ Chamber Coffee and Snacks Bar is a new beverages and snacks selling business to be located in Manchester, England. This is a Sole Proprietorship owned by [Client’s Name]. The business is estimated for a total start-up cost of £55, 000. Even though [Client’s name] has not previously owned a business in this industry, he has extensive experience in business management acquired from the various internships and study programmes undertaken over the past years. The business is focused at providing exceptional quality beverages and snacks to exceed its customers’ satisfaction. Elders’ Chamber will be located in a favourable location that provides high visibility and large customers flow. The business will be established in a 2,500 square feet premium coffee bar in Manchester, near Old Trafford. This location was specifically selected based on its proximity to Old Trafford, Manchester United Stadium and the high population density in the area. Our prices will be competitive enough as compared to other players in the market. To further complement this, we are aware of our competition and will assess our customer’s expectations, relate it to our core competencies, identify those expectations that we can reasonably meet, and strive towards exceeding them constantly. START-UP COSTS SUMMARY A convenient location has been identified by the owner which involves leasing of a premium commercial space located in an appropriate densely populated area. The start-up capital will cover kitchen inventory and equipment, insurance, marketing and promotion, rent, legal expenses, furniture, packaging, and other inventory on hand. This is as shown in the table below. Kitchen equipment includes mainly freezers, Coffee making machines, Cooler Package, Utensils, Washing machine, etc. For documentation, loan and grant purposes, a complete list of equipment to be purchased (acquisition terms and prices) will be made prepared and made available. The company policy is to purchase brand new, energy saving equipment from the best food industry suppliers available locally. Business risk cover will be under insurance premium estimated at £1, 000 for the first year. This will be further negotiated in the course of the first year and amended as per the agreement between Elders’ Chamber and The Insurance Company provider. £2, 000 has been estimated for marketing and promotion expenses. This will be used for various marketing and promotional information materials and advertisements. Permits, business formation, basic contract reviews, advice and assistance, and general business advice are some of the legal expenses estimated at £1, 000. Furniture will include coffee tables and chairs. This will also incorporate office supplies like desks and filling cabinets. For corporate delivery, the business will use a van presently owned by [Client’s name] parents. They have promised to issue out the van the moment business operations start. Start-Up PRODUCTS AND SERVICES Elders’ Chamber will mainly offer different blend of coffee with a variety of snacks. Different blends of coffee offered will be various blends of Espresso, Cappuccino, Americano, Flat White, Caffe Mocha, etc. Elders’ Chamber will offer best tasting coffee achieved through high-quality ingredients and high preparation standards. A plan has been set to further include different blends of teas in the near future. This will be after acquiring the required coffee clientele base. Different types of pastries or snacks will be offered to accompany coffee. It has been a tradition that coffee is taken without any snack. However, in the modern times, Coffee lovers have revolutionized this myth to include different types of pastries to accompany their coffee. This has greatly been attributed by tight schedules that have seen most people not taking full meals thus taking light meals with snacks in between. Furthermore, different salads and sandwiches will be offered at customer requests as it has been noted that a significant segment of the customer base would like their coffee not only accompanied by pastries but will either include a sandwich or salad. Coffee will be served in different amounts. This has been diversified to best suit various class categories of customers, i.e. high, medium and low classes. This has been put into consideration bearing in mind that many Institutions of high learning are located in the area and a majority of its customers will be students from these institutions. Coffee will be served in single mugs of approximately 250 ml or coffee pots with capacities of three mugs and five mugs respectively. Elders’ Chamber is dedicated to provide free delivery services to our corporate clients and retail customers in case of large orders. This is after realizing that most of corporations would like to offer their employees snacks in between without them leaving their working stations so as to save on time. Most employers would also love to cut on their costs of permanently employing people to do the cooking while they can obtain such services from professional companies like Elders’ Chamber. MARKETING PLAN Elder’s Chamber is determined at giving its client quality services with high standards. Built around espresso-based coffee drinks, our menu will include espresso blends like Cappuccino, Americano, Flat White, and Caffe Mocha. Either skimmed, soy, or whole milk will be offered with these espresso-based drinks. Shots of espresso prepared by an espresso machine together with either skimmed, soy, or whole milk will be used to determine the various blends. These blends will be prepared as per the standard techniques given that minor deviations from the technique during preparation have a significant impact on the quality of coffee being prepared. Over the years, coffee consumption has seen a steady growth. This in particular, has been observed in England, with strongest growth in grounded coffee. The theory that coffee is addictive given its caffeine content has mainly been attributed to this growth. There has been high demand for high quality coffee over the years and Elders’ Chamber id determined to fill up this market gap. Manchester is a metropolitan area with lower, middle and high class level customers. This provides an excellent market for our product as our pricing policy will enable members of each class level to comfortably access our products. This will be catered for by the fact that our menu will comprise of different espresso blends with varying prices, and different quantities to cover a wide range of customer base. This location is superb for such a business with its population estimation being nearly one million residents. The area offers a wider range of customer base with family residential houses, university campuses, and commercial premises. It has been shown by other market studies that such conditions are conducive for such a business venture. Prospected future growth not only in residential units but also in commercial premises further provides better market environment. Market Segmentation It has been estimated and targeted that 83% of our sales will be to retail individual customers while the rest 12% will be to corporate clients through office delivery. 5% has been estimated and targeted for other customer based both at the present and in future. Despite its minimal percentage in terms of our customer base, it is worth noting that corporate clients make large orders depending on the number of employees. Of the individual/Retail customers, it has been estimated that 30% will be residential families >35 years, 20% teenagers, 35% students and faculty, and 15% others. Target Market Share, With existing players in the market and prospect future entries, it has been estimated and targeted that Elders’ Chamber will control 10% of the local market share. Our objective is to control a market share of upto 40% over the next five years of business operations. This will be achieved through aggressive marketing and high quality products and services delivery to oue esteemed clients. Marketing Strategy Intensive marketing strategies will be embarked on prior to and after the launch of our brand and business. Elders’ Chamber is an ideal name for the business as it reflects ambience, critical thinking, maturity, and class. Older market segment will feel comfortable in such an environment while the younger generation will feel challenged due to the respect and admiration associated with the word “Elder”. An extensive marketing structure will be developed so as to reach as many customers as possible inclusive of their demographics and class level. Various forms of marketing communication will be used in this case. This includes using effective advertising tools like, local radio and TV commercials, Local directory postings, sign posts, brochures and flyers e.g. door handle flyers, and road shows. This will cover our targeted corporate clients, university and college campuses around, and residential areas. Our marketing strategy will be geared towards obtaining new customers, both retail and corporate. We will also work on retaining this clientele base, increase their spending rates, and work on their loyalty to the business i.e. repeat customers. Most importantly, the business will aim at selling its brand rather than products and services. Its high quality products and services will definitely be sold by word of mouth from those who try us out. Adequate funds will be provided and accounted for to effectively cover marketing costs. Initial projections indicate that an estimated £2, 000 will be used for marketing and promotion prior to and within the first year of brand and business launching. Strict measure will be put into place to make sure that every cent is spend in the most effective way and will be accounted for in the long-run. CASH FLOW FORECAST FOR THE YEAR 2013 PROJECTED PROFIT AND LOSS ACCOUNT PROJECTED BALANCE SHEET BREAK EVEN ANALYSIS With an average monthly fixed cost of £4, 700 for the financial year 2013 and 55% average margin, Elders’ Chamber is projected to break even in the fifth month of operation. These fixed costs are assumed to include utilities, rent, payroll, insurance, and other fixed running costs. Based on assumptions, Elders’ Chamber is projected to achieve total sales of £11, 250 per month to break even. Break Even Analysis STRENGTHS AND WEAKNESSES OF THE PROJECT The projects strengths to help it succeed include: Excellent location High quality coffee beverages/ espresso blends with prepared as per the required techniques and standards as other competitors have greatly compromised this. Hiring of experienced staff in coffee beverages industry Using state of the art- energy efficient equipments Clear vision of the market needs and mission to achieve projected corporate goals Use of latest technology in marketing and promotion Some of the identified weaknesses have been identifies as; Start-up challenges Cost factors associated with marketing, technology and state of the art equipment The fact that we are a new business in a new location Read More