Evening Coffee Shop's Future Development - Example

Business Description

The business will offer coffee, tea and cakes to the customers. Homemade coffee, conventional Chinese tea and French cakes will be offered. Additionally, the location of the business is of central importance. And keeping this view in mind, the proposed business location will be inside a residential area where a coffee shop will be established. This coffee shop will cover around 500 sq. ft. area for providing a congenial and serene environment to the customers of all ages. In this regard, it is relevant to mention that the targeted customers will be the residents of the residential area and there is no specific age limit or segmentation of customers based on age, sex and other classifications. Furthermore, the business will also ensure that the customers enjoy the environment of the shop through feeling the sense of serenity and calmness inside the shop.

Form of Business Ownership

Sole proprietorship will be the form of business ownership. In this type of business type, only one proprietor is allowed to establish and run the business affairs. All types of business risks and rewards are managed and faced by the owner. Additionally, the major benefit of this type of ownership is that it is comparatively more manageable and financially lucrative as well when it is compared with other types of business ownership, such as partnership or corporation. Furthermore, the nature of selected business considerably supports the sole ownership type of business. For example, the chosen business is on a small scale and it can be easily administered and managed by a single owner.

Ideal Customers

The residents of the selected residential area will be the ideal customers. Coffee, tea and cakes are mostly consumed in the evening time when everybody wants to meet friends, relatives and colleagues informally and share their perspectives and opinions about issues relating to their routine life. They can be students, professionals, and others as well.

Our Advantages

Calm and quite atmosphere is an added advantage. The proposed coffee shop will be located inside a covered area where inside environment will enable the customers to enjoy their evening time in the most effective way.

Accessibility for all is an additional benefit for the residents. It has been observed that there is no single coffee shop in the entire neighborhood. The residents are required to go other residential areas for taking tea or coffee. For them, the opening up of the coffee shop will enable them to enjoy coffee and tea at their doorstep and they will be not required to visit other nearby residential areas. In this regard, it is relevant to mention that time has become precious for everyone and the opening up of this shop will not only save their time but give them an opportunity to enjoy maximum time with their friends as well.

Ethical Issues

Honesty will be ensured at all cost. The customers will be charged accurate and appropriate price and they will be informed about the pricing policy as well. This pricing policy will ensure that all the related customers are given opportunity to trust on the dealings of the owner.

Trustworthiness will be maintained through giving true and proper information about the making of coffee, tea and other related products. In this regard, it is relevant to mention that timely supply of products will be ensured at any cost.

Respect for employees will also be ensured. Two employees will be hired. Each one will be given specific set of responsibilities. For example, one will be required to serve tea while other will have to serve coffee. For employees, apart from salary, workplace environment is the key for their long term commitment with the workplace. Keeping this view in mind, the owner will provide them a congenial workplace environment where they will enjoy friendly environment and observe value-based system.

Social Responsibility

Social responsibility refers to the obligation to reduce the negative impact of business on society besides taking measures for improving the lives of the related stakeholders (Balachandran and Chandrasekaran, 2011). Keeping this view in perspective, the owner will ensure that streets of the residential area should remain neat and clean. And for this objective, the owner will actively coordinate and cooperate with the local administrative body relating to the residential area. This cooperation will ensure neat and clean streets of the area. At the same time, the shop trash will be properly disposed off. However, it has been observed that some shop owners do not properly damp trash instead they spread in streets. In order to avoid this, the owner will be highly socially responsible.

Mission Statement

Welcome back! Welcome home! Be yourself when you are at home!

Business Goals

In the first year, break-even point will be attained and retained as well. Break-even point refers to a situation in which a business neither makes any profit nor any loss. For business like this one, it is highly essential to obtain and retain this first year business goal. In this regard, it is relevant to mention that even large firms do not make any profit in their initial years as their primary objective to avoid loss and touch the break-even point. Furthermore, this objective is mainly envisioned so that a new business generate more sale and obtain the targeted level of sale and this is only possible through ensuring increasing number of customers every month. More specifically, whenever a new business is set up, it faces various challenges including customer trust and their loyalty as well because many customers are not willing to buy products from a new business point. As a result, customer loyalty has been made the business’s primary objective so that the business generates sale regularly.

20 percent profit increase will be obtained in the subsequent year. This medium term objective is mainly designed to improve the business and financial performance of the enterprise. This will be only possible through increasing sales during that period because sale and profit have a direct relationship.

Business chain expansion will be obtained in the long term. This business enterprise will establish another business shop at other residential area. This project will be financed through the surplus profit made by the first coffee shop of this enterprise. Keeping this view in mind, it can be easily deduced that the success of the first coffee shop is of central importance as it will provide foundations for the next coffee shop.

SWOT Analysis

Products will be made by the owner. This will be the major strength of this enterprise. Coffee and tea will be made by the owner and the employees as well. The prime objective behind this business strategy is that it allows the enterprise to create specific coffee and tea taste so that this unique product and service attract the customers of the residential area. In this regard, it is important to mention that the development of specific tea and coffee taste has been envisioned for developing a brand perspective relating to this coffee shop.

Lack of related experience remains the major weakness. The entrepreneur has no previous related experience and this situation can put negative effect and overall operational and financial performance of the business. Under this situation, there are higher chances that the owner will make incorrect business decisions and that may bring adverse effects for the business.

Higher chances of customer loyalty cannot be ruled out. This is a unique opportunity for this business. More clearly, the targeted customers are the residents of the residential area and they will be served with a quality coffee and tea. In this regard, it is important to highlight that this coffee shop will be first in the entire residential area. Consequently, this situation provides an opportunity to capture this market and increase profit accordingly.

Limited number of customers will be the main threat to the business. In the selected residential area, there are a limited number of people who are living in the area. And they are the potential customers. In other words, it would not be incorrect to say that it can be considered as a risk that the business may not experience a substantial rise in the number of customers in the coming days.

Management

Initially, there will be no levels of management at this point of time as the owner himself will manage the business affairs and only two employees will be working under the supervision of the owner. In simple terms, it can be highlighted that this management structure is simple and suitable for the sole proprietorship at this point of time. However, in coming two years, there are chances that this management structure will not remain the same but a new structure will be introduced. For example, after opening up a new coffee shop in other residential area, one manager along with two employees will be hired for providing their services in the new coffee shop. As a result, the manager will be directly accountable to the owner and the two subordinates will be directly working under the supervision of the manager in the new coffee shop in future.