Write a 2,000-word Business Plan for a business or social enterprise you are involved in or would like to be involved in.

Introduction to the Product or Service: Star Coffee Shop

This business plan revolves around a coffee shop business in London. The management of the company intends to come up with different business strategies to gain and sustain the success in the new area. Due to highly competitive rivalry in London coffee market, there is a need of an appropriate plan to emerge strongly. People in this region are loyal to old coffee shops, and it seems challenging for a new business to grab the new customer range. Therefore, in this business plan or start up, it is essential to obtain the insights from competitor’s action, market, coffee market trends and customer’s intentions. The coffee business is in the limelight in this region, as customers are quite assertive and responsive. The company intends to deal with different products such as tea, brewed coffee, and espresso drinks. In addition, other products for the customers are pastries, salads, and sandwiches. Moreover, the company is also looking forward to sell different coffee beans to the customers. In the coffee shop, to contain the differentiation or uniqueness, the customizations is new addition to the product line, which can make the customers responsive. Well, the intention is to increase the product line to position better in the minds of the customers in the competitive London coffee market.

London Market and Competitor Analysis

Concerning the coffee market trends in London, it has been revealed that the companies are portraying the best espresso. The placement is being exceptional by the competitors so far, as customers use to find the different coffee shop to have a cup of coffee, especially when walking or driving. The coffee industry in this region is growing because different shops are trying some new things for the customers to get the products in the limelight (Lyon, 2011). In this market, the old coffee giants use high quality beans, acquired from the global suppliers. Coffee shops in London are selling almost 80 different types for the customers (Shadbolt, 2015).

The main competitors in the London for this new coffee shop are Catalyst, Coffee Island, Curators Coffee Studio, Prufrock Coffee, Notes, Rapha Cycle Club, Timberyard Seven Dials, and workshop coffee coffee  (Howells & Sheppard, 2017).

Interestingly, In London these competitors have come up with the differentiated coffee products and services. The best thing that these coffee shops have done recently is the attractive design of layout, which attracts the customers. Obviously, the competition is tough and the companies are depicting the competitive process for different coffee products for the customers (Howells & Sheppard, 2017)

In the competitive London coffee market, the company is looking to integrate with the new trends and opportunities. The entry in this market is not complicated. However, to sustain the business, obviously, there is a need for strategic considerations. Thus, some insights, which are derived from this market analysis, the management can use the SWOT analysis to plan accordingly.

SWOT Analysis of Star Coffee Shop

Strengths

The high brand image of the company in this competitive market can be the biggest strengths. This is a fact the customers are linked to the brand image, and accordingly, the user to make decisions. The high brand image is the strength, which makes the customers loyal and enhances the visibility of sales in the presences of the other substitutes. In addition, the company is starting with a good working capital, which is a big strength. The management can improvise and increase the business segments due to the food financial capital. Thus, the financial capital is the biggest strength when starting the new business. Moreover, the immense range of the customers in London is a prominent strength of the company, which can create a good impact on both, sales, and loyalty. Loyal and satisfied customers are also big strengths, which lead towards the competitive advantage. The management is focusing on the quality of the coffee products along with the cheaper rates, which is enough to make a difference in the London coffee market. The location of the shop can be a huge strength of the company. People’s traffic matters in the commercial areas where they can be attracted due to the attractive design and layout of the shop. Thus, these are the possible strengths, and the company is quite up to these strengths to gain the benefits (Mckenzie, 2017 ).

Weakness

The big weakness of the company is lack of reputation or popularity due to the presence of other well-known competitors, mentioned above. Being a new entrant in London, the company may take a time to get accelerated in sales and profitability. In London, there is a quite different culture, and the management has to invest in the training process of the employees. It is an extra cost that the management has to bear when starting the business.  A coffee business is slowly, but consistently converting in pubs, as people love to contain the social gathering in these pubs. Thus, it is a weakness because the company can only focus on the coffee business initiations instead of emphasizing on the social gathering (Thomas, 2014). The management is less experienced in this business, which is also a big weakness. Different marketing customer-operations dimensions are yet to be learned from the management. The company, in this new market area, may lack the advertisement and promotional activities comparatively, which can create the negative impact on both, sales and revenues (Mckenzie, 2017 ).

Opportunities

The big opportunity for this coffee shop is the business expansions. The several shops can be opened in different targeted areas to grab the immense range of customers. Based on the new product line for the customers, the management can come up with some new customer segments and targets. Through it, the company can have significant market growth. The differentiated service for the customers in the shop is also a great opportunity to convert the customers from the competitors (Matzen & Harrison, 2012 )

Threats

New arrivals in London are quite visible, which are big threats to the company. Existing companies are conducting big changes in the operations to come up with something new for customers. The spike in prices of coffee beans is a major threat, as it can create a direct impact on the pricing strategy and sales. In addition, some spikes in the UK economy are hitting the buying power of the customers, and it has also been considered a big threat to the company management.

Now, based on these insights, derived from the SWOT analysis, the management can make a marketing and sales plan.  First, it seems pertinent to elaborate the marketing mix plan, including product, price, pace, and promotions, which have a direct impact on the sales process of the company.

It is an integral part of this new start-up, and effective marketing and sales plan are the top priority of the company. The purpose of sales and marketing plan is to contain the readiness to make a successful entry in a competitive coffee market of London.

Sales and Marketing Plan

Marketing Plan

Marketing plan for the company is triggered by the marketing mix, and elaborations are as under

Product

Tea, brewed coffee, espresso drinks, pastries, salads, and sandwiches are different products, which are to be marketed to the customers by using several marketing techniques. The management aims to maintain the quality of the products. The customers can perceive the quality of the product through taste and relevant content an available in the shop. The target of the company is to expand the reduce line to meet the needs of the customers. The big thing that the company can do in this competitive market is the customer conversion due to the high quality and differentiated products. For Instance, Coffee products will contain an attractive packing, which can attract the customers

Price

Keeping the competitor’s strategies in the mind, the company will come up with the low prices of the products for the customers. The penetration pricing strategy is the best option for the company to increase the sales and market share in the London market. The plan of the company is to retain the loc process of the products instead of considering the profitability. The change in the prices can be done after 1 or 2 years. Due to the low prices and high-quality products, the customers will depict a positive buying behaviour. On the market, the customers are conscious of getting the low-cost, low coffee cups, and this pricing strategy is quite justifiable (Directo-Meston, 2016).

Place

The coffee shop is targeting the urban areas to target the middle and upper middle class. The company is starting with 4 outlets to target the customers in specific areas. For Instance, the plan is to open outlets near airport, shopping malls and educational institutions reach the target customers (young adults, teenagers, and senior citizens) (Mills & Rosenberg, 2010 ).

Promotions

TV and print media are two power sources for the company to promote the product and position better in the minds of the customers. However, concerning the cheaper media channels, the company can use internet for promotions and advertisements. Attractive visuals and content on websites and social media channels can let the customers know about the products. Interestingly, in this part of the plan, the management will launch the coffee shop golden cards for the frequent customers to get free coffee samples and deals. Increasing the public relations, participating and sponsoring in local events can be the handier promotional tactics (Gentile, 2014).

Sales Plan

The coffee shop will operate with several sales teams. The sales team will be assigned to complete the sales target daily (300 cups). Two employees will take orders from the customer. One employee will prepare orders of the customers. One employee will manage the sales transactions and cash receipts, and one will prepare the sales reports, to be shared with the owner.

Operations

The will be from 7:00 am to 10:00 pm.  The staff will work in two shifts.  In every shift, the management will examine the revenues. The maintenance and checking of stock will also be checked twice in a day. The management will brief the employees before starting their duties daily. Thus, it is a 16 hour a day business, and it is enough time to meet the sales targets (Godsmark et al., 2014).

Finance (Start-up Funding and Source)

The estimated start-up funding of this business is £ 65,000.

Start up Requirement
Stationery Expenses	£      500
Legal Expenses	£   1,000
Pamphlets and Brochures Expenses	£   3,000
Insurance Expenses	£   2,000
Consultancy fees	£   1,500
Shop Rent	£   4,000
Remodeling Expenses	£ 10,000
Miscellaneous Expenses	£   3,000
Total Expenses	£ 25,000
Assets
Cash Required	£ 20,000
Start-up Inventory	£ 10,000
Long-term Assets	£ 10,000
Total Assets	£ 40,000
Total Funding Required	£ 65,000

Risk Management &Measuring Success

In London, the businesses are less vulnerable of uncertainties.  Flexibility in the business rules and regulation by the UK government reduces the visibility of business risks. However, in London, risk may emerge fie to the immense competition. The company has an effective risk management strategy to meet different business uncertainties. Several risks, which can be occurred in this business process, are the customer conversions, impaired sales, lack of profitability.  The company will examine the risk through evaluating the likelihood and impact. Based on these criteria, the management will calculate the score and create the risk mitigation strategies. Owner of the company will conduct this activity to make the safe and secure business (Parker, 2016 ).

The key success factors of the company are immense sales, customer loyalty, satisfied employees and justifications of the sales and marketing strategies, the response of the customers in the competitive market is the effective measure, which can help the company to estimate the sales and success with the passage of the time (Sutherland, 2009 ).

Summary of Skills Set and Recommendations

The management contains the three types of skills such as human skills, technical skills, and conceptual skills. Technical skills are technology integrations, transformations and change with the passage of the time, according to different business circumstances. Relative to the human skills, it seems pertinent to manage and maintain different people, working in the coffee shop. Prominent human are; communication, human relations, and interpersonal skills. It is good to deal with internal and external stakeholders of the business. The conceptual skill is triggered by leadership in the management, as it seems vital to identify the business insights at the right time (Olivarez-Giles, 2010).

Now, concerning the recommendations, this is highly recommended to the company management that it must embrace the change according to new trends.  The cultural integration in this market is a right strategy, which is effective in targeting and positioning. For Instance, coffee culture has come to London, which makes the high street coffee shops visible in this market. Despite having the economic hardship in London, the cultural integrations by patisseries and coffee shorts is the best strategy to prolong the business. To create the value for the customers, creativity in both service and sales is imperative to make the customers a responsive and assertive in the competitive coffee market (Stagg, 2012)

Conclusion

In the end, this is to conclude that the coffee shop in London is a good idea, as there are several opportunities for the management to gain the success and expand the business. The main aspects of this business plan are the introduction of products, market analysis, competitor analysis a, SWOT analysis a, including strengths, weakness, opportunity and threats, sales and marketing plan, operations plan, financial analysis, risk management, key success measures and summary of skills set and recommendation. The business is expected to gain the success through effective implementations of the plan.

References

Directo-Meston, D., 2016. How Melrose Place’s Alfred Coffee Became A Fashionable Lifestyle Brand. [Online] Available at: https://la.racked.com/2016/7/29/12255132/alfred-coffee-tea-melrose-place-fashion-brand [Accessed 18 December 2017].

Gentile, D., 2014. 10 Things Every Coffee Shop Owner Needs To Know. [Online] Available at: https://www.thrillist.com/drink/nation/coffee-shop-business-how-to-open-a-coffee-shop [Accessed 18 December 2017].

Godsmark, E., Arduser, L. & Brown, D.R., 2014. How to Open a Financially Successful Coffee, Espresso & Tea Shop. Atlantic Publishing Group, Incorporated.

Howells, T. & Sheppard, J., 2017. London’s best cafés and coffee shops. [Online] Available at: https://www.timeout.com/london/food-drink/londons-best-cafes-and-coffee-shops [Accessed 20 December 2017].

Lyon, H., 2011. Start up and Run Your Own Coffee Shop and Lunch Bar, 2nd Edition. Little, Brown Book Group.

Matzen, T. & Harrison, M., 2012. Start & Run a Coffee Bar. Self-Counsel Press.

Mckenzie, E., 2017. The Coffee Shop Business Plan: How to Open Popular, Successful and Profitable Coffee Shop! CreateSpace Independent Publishing Platform.

Mills, E. & Rosenberg, M., 2010. Starting Your Own Coffee Or Tea Shop. Crimson Pub.

Olivarez-Giles, N., 2010. Coffee-roasting brood keeps L.A. ethnic communities brewing. [Online] Available at: http://articles.latimes.com/2010/jan/05/business/la-fi-smallbiz-coffee5-2010jan05 [Accessed 18 December 2017].

Parker, T., 2016. The Coffee Shop Business Plan: The Ultimate Guide to Open and Successfully Run a Coffee Shop! CreateSpace Independent Publishing Platform.

Shadbolt, P., 2015. How to brew up a successful coffee business. [Online] Available at: http://www.bbc.com/news/business-34650055 [Accessed 20 December 2017].

Stagg, G., 2012. Café culture comes to London. [Online] Available at: http://www.telegraph.co.uk/travel/destinations/europe/united-kingdom/england/london/articles/Cafe-culture-comes-to-London/ [Accessed 20 December 2017].

Sutherland, J., 2009. Start and Run a Sandwich and Coffee Shop. How To Books.

Thomas, N., 2014. Why coffee shops are replacing pubs in Britain. [Online] Available at: http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/leisure/11084328/Why-coffee-shops-are-replacing-pubs-in-Britain.html [Accessed 20 December 2017].