Bley`s Coffee Shop Business Plan

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Bley’sCoffee Shop Business Plan

Executive Summary

Theintention to start this business is not only driven by the desire togenerate profits and build a business but the desire to make lifeeasier for other individuals. The inspiration comes from the need tohelp the people who appreciate and love the coffee drinking cultureby starting a delivery coffee shop to ease accessibility by fasterdeliveries. The business will be named Bley`s Coffee Shop and shallbe owned by two investors each contributing 50 percent of the initialstartup capital. The business shall be located at Square One ShoppingMall in downtown Toronto City, Canada. The Shopping Center presentsan opportunity to access an untapped market of coffee fans whocurrently lack access to the convenient environment and qualityservice at the mall.

Theprimary objective of Bley’s Coffee Shop is to operate a profitableshop by providing the best services to customers through highlytrained employees. The business intends to exceed 600 daily in fromthe local market in the first quarter. The goals that have been setinclude expanding to other major office buildings with a high numberof people, develop into education institutions and establish a strongbrand in Toronto. The coffee shop industry provides and exploitedmarket in many parts of Canada. Canada’s economic, social andpolitical situation positively favors the business. The populationdemographic such as the majority of the population being youthful isa growth indicator for the firm.

Thebusiness will competitive advantage is the use of technology inproduction and marketing. Customers will be able to access theinternet free in the restaurants and make orders from the businesswebsite and mobile app. The company will capitalize on social mediato market its products. The main products to be served at Bley’sCoffee Shop include coffee, tea, juice, light foods and snacks.Different coffee blend and flavors will be served to give customers awide range of products. The business will be open from 9.00 am to9.00 pm when the shopping center closes. Food will be preparedaccording to the daily demand predictions determined by the managerevery morning. Fresh foods will be supplied on a regular basis toensure only fresh food is used in production. The business requires,at least, $391,079 to start operations. The funds will be provided bythe business owner in partnership with one investor in which theywill contribute $100,000 each while the rest will be sourced from abank loan. The business owner main risk in the venture includesdirect competition from existing coffee shops in the area, managementincompetence, public health concerns from the government requiringstrict regulations and economic fluctuations that affect consumersspending habits.

Bley’sCoffee Shop Business Plan

Tableof Contents

Executive Summary 2

Vision, Mission and Core Values 6

Goals and Objectives 7

Marketing strategy 23

Distribution Plan 23

Pricing Strategy 23

Advertising and Promotion 23

Customer service policy 24

Marketing budget 24

Product/Service Plan 24

Compelling customer benefits 24

Products features 25

Unique selling proposition 25

Production/ Operation Plan 26

Business Location and requirements 26

Daily Operations Schedule 26

Inventory Level 26

Business Technical Advisors 26

Equipment and Technology 27

Government Regulation 27

The Financial Plan 27

Startup Estimated Cost 27

Sales Analysis 28

Sales Activities 28

Cost of Sales 28

Expenses 29

Break Even Analysis 31

Pro-forma balance sheet 32

Pro-forma income statement 34

The Human Resource Plan 35

The Company Structure 35

The Legal Form 36

Risk and Rewards 36

Funds required 36

Action Plan and Timetable 36

The Deal Structure 37

Ownership 37

Control 37

Succession Plan 38

Exit Plan 38

Appendixes I Bley’s Coffee shop Layout Plan 39

Appendix II Location Map of Square One Shopping Mall in Toronto 40

References 41

Introductionand the Business Concept

Bley’sCoffee Shop is a fast food establishment specializing in specialtycoffee and light foods. The business will be registered and run as aretail coffee shop. The business is a startup establishment and isowned by two investors who shall run the business as a limitedcompany. Operations are to start on 1stJanuary 2017, and the shop shall be located at the Square Oneshopping Mall in Toronto, Canada.

Bley’sCoffee shop business concept is based on serving specialty coffeeprepared in different flavors and blends. The coffee brewing stylewill be unique adopting different techniques that have not been usedin the Canadian market before. Light foods such as snacks, Frenchfries, burgers, hot dogs, crackers, cookies, bans and sandwiches willalso be served as accompaniments. The coffee shop will also offervegetable and fruits salads as alternative nutritional and healthyoptions to customers. Children packs will also be sold comprising ofsoda, juice or milkshake and a snack.

Orderswill be taken using a self-service method where customers key intheir orders at a POS machine on the counter while confirming fromthe staff inside the counter. Customers can also make their ordersdirectly from their mobile phones using the company mobile app. Themeals can be taken at the shop-siting arena, or be packaged fortakeaway. Home and office delivery services will also be provided tocustomers within Ontario City. There is a large business opportunityin the fast foods business especially in coffee shops in Ontario. Theexisting establishments are increasingly becoming overcrowded, makingit difficult to provide the best services and product development.Existing coffee shops have stuck with traditional coffee blends andare not providing customers with new products. This gives Bley’sCoffee Shop a chance to attract new customers seeking new productsand experience.


Useof technology in sales and marketing and production will offer acompetitive edge to the business. The company intends to develop amobile app and an online ordering system that customers can access intheir computing and mobile devices or through the business website tomake their orders and inquiries. The business will use technologysuch as providing free Wi-Fi to all customers within the coffee shopto access the internet and the business website and mobile apps. Thiswill also enable the customers to directly interact with customercare and other fans in the social media platforms such as Facebookand Twitter.

Productionwill be highly automated, with special blending and processingmachines in the kitchen to enable order processing to take less than3 minutes. This will ensure customers only wait for less than fiveminutes for their orders. The business will also ensure that homedeliveries are maintained at a maximum of one hour for home andoffice orders.

Vision, Mission andCore ValuesVisionstatement

Bley’sCoffee Shop vision statement is as follows: “Our overall vision isto ensure Bley’s Coffee shop becomes a modern, progressive coffeeshop delivering a contemporary customer experience in Toronto cityand beyond. Modernly is about getting the company brand where itneeds to be and progressively is about striving to do everything thatis required to fulfill customers’ requirements. Superior servicedelivery and high quality, great taste and providing a world-classexperience to customers will ensure they feel welcome and valued.”


Bley’sCoffee Shop mission statement is: “Our mission is to be ourcustomers’ best choice and favorite coffee shop in Toronto. We arededicated to making Bley`s Coffee Shop a great place to be for ouremployees, and to deliver the quality our customers expect from us toenable us to establish a trusted brand globally.”

Core Values

  1. Creating an organizational culture that makes everyone feel welcome and part of the company

  2. Acting with courage to find new ways to grow by fulfilling customers’ needs

  3. Encourage transparency and promoting dignity among stakeholders and respect

  4. To deliver our best in everything we do and ensuring everyone in the organizations is personally accountable for every result

Goals and ObjectivesObjectives

  1. Find out regulations and rules of opening a coffee shop by 1 April 2016.

  2. Find out food safety and training regulations and rules by the 10 April 2016

  3. Marketing plan needs to be done by the 1 May 2016

  4. Undertake a detailed market and industry analysis to find out more information that could be used support the ideas of coffee shop by 10 May

  5. Have general ideas of desirable platforms, and design, functions of a phone App by 17 May 2016

  6. Get quo from 3 developers by 17 May 2016

  7. Coffee shop App testing by 1 June 2016

  8. Open social media account like Instagram, Twitter, Facebook by the Jun 1st, 2016

  9. Determine the location of the coffee shop by 7 June 2016

  10. Get quo from 3 designers for the interior style of coffee shop and exterior architecture as a firm`s image by 14 June 2016

  11. Get quo from 3 equipment suppliers by 10 June 2016.

  12. Get quo from 3 coffee bean suppliers by 11 June2016

  13. Get quo from 3 food suppliers by 12 June 2016

  14. Determine a delivery procedure catchment area for profitable delivery for Bley’s coffee shop by 17 June 2016.

  15. Find out the desirable Employees qualification by 1 July 2016.

  16. Set up a proper policy for employees Bley’s coffee shop by June 26, 2016.


  1. Within five years, the company will venture into the city major office building with high intensity of demography.

2.Partner with educational institutes to have their store/productsin school cafeterias in two years.

3. To become one among the well-known coffee makers in town

4.To facilitate its customers in every possible way, that is byoffering low price and best quality coffee and service.


Bley’sCoffee Shop will be managed by a competent manager and shall be ledby the business owner who shall be the company CEO. The businessowner has good knowledge in business administration and management.The CEO will enable the business to achieve the set goals andobjectives. The manager will be responsible for planning dailyoperations, budgeting for the business needs throughout the year andmanaging suppliers and the business inventory. The management teamshall be responsible for market analysis and product design anddevelopment. The Coffee shop manager academic qualification requiredincludes a degree in business management or food and beverage andhotel management. Prior experience in restaurant management in a busyestablishment will be encouraged. The CEO shall be paid $25,000yearly while the manager will be compensated $21,500 yearly.


Bley’sCoffee Shop relies on agricultural products, making it inevitable forthe company to take care of the environment. The company aim is tominimize its carbon print in the environment it operates. Bley’sCoffee Shop will ensure that all its operations, which includepackaging, production, waste management, minimize its impact on theenvironment. The business machines will use energy efficiently,production will be planned appropriately to minimize electricityusage and water usage will be monitored frequently to minimizewastage. Bley’s Coffee Shop will only buy raw product fromsuppliers who meet Canada’s environmental conservation andprotection regulations.


Thissection analyzes Toronto’s coffee shops industry. The country hasexperienced decreased sales in the recent past. General prospects inthe industry, however, indicate a positive change in growth in 2016at 2.5% as the overall Canadian economy continue to recover from the2008 global economic plunge aftermaths (Coffee Association of Canada,2013 TheStatistical Portal,n.d.). Canadians consume more than 2.1 billion cups of coffee yearly.Brewed coffee still dominated the Canadian market, but specialtycoffee popularity is growing in major cities as younger generationare adapting it as a new trend.



Themain political factor in Canada affecting coffee shops industryinvolves sourcing of raw material. There is a lot of attention to thepublic and the government in the source countries of coffee. This hasinfluenced how companies make decisions on where to import theprocessed coffee. Regulations in the Canadian government now requiredue diligence before importing coffee from various entries to helperadicate issues of environment and child labor (FinancialTimes, n.d.).The Canadian Tax policy and employment laws also affect how coffeeshops operate in terms of employee compensation and working hours.


CanadianEconomy presents a stable business environment for small andmedium-sized businesses to operate. The economy has appropriatecushions to small businesses from the global economic crises(Aruvian`sR’search, 2012).The local Canadian dollar currency has remained stable since 2008 andthe local economy environment in related markets continue to growsteadily. Taxation level in Canada for small business is alsofavorable for startups. Economic forecaster expects the economy togrow up to $2.11 trillion by 2018 thus, Bley’s Coffee Shop hasfavorable prospects to grow in Toronto (Coffee Association of Canada,2013).


Manyfood business startups face the challenge of offering high utility atlow prices to the market. Most of the targeted population prefer lowpriced products especially buyers from lower and middle-class incometiers. The majority of young consumers are environmental cautious andhighly affected by business ethics. Other social economic factorsaffecting the coffee shops industry include consumer likings,changing family patterns, shifting work patterns, changing thelifestyle of the population, and improving the level of the generalpopulation education influencing their values.


Canadais a high-level technological country. The use of the internetimproves mobile phone reception and support of telecommunicationinfrastructure has enabled the country to promote advanced technologyacross the country. Technology in production and processing in Canadais also high as the availability of better machines used in foodpreparation is easy. Technology and innovation in Canada allowbusinesses to exploit different opportunities on how to improvequality in service and product delivery in different markets.


TheCanadian legal system controls business operations and policies. Thegovernment has put in place regulations to control the home market aswell as the countries that supply raw materials. Strict regulationson food production and packaging and poison control affect coffeeshops businesses. There are strict customs regulations and rulessupported by strict licensing regulations in the industry.


International,national and regional environmental advocacy groups highly influencebusiness practices. This shapes up the industry approach towardsproduction processes that affect the environment. Strictenvironmental rules and regulations are in place to control businessoperations. Main environmental challenges that affect businesses inCanada include environmental disaster in coffee producing countriesand global warming and carbon emission levels.



Suppliersin the coffee shop industry form an important link in value additionto customers. Suppliers’ problem can seriously affect the normaloperation of the coffee shop business as the entire productionprocess depends on fresh and perishable products that must bedelivered on a daily basis. The main role of the manager is to ensureclose monitoring of suppliers to identify any challenges they faceand find ways to bridge any gaps. Delays in delivery of raw materialcan adversely affect customers.


Customersare the main reason as to why coffee shop businesses exist. Customersatisfaction is the core determinant of the effectiveness of everycoffee shop business strategy. The entire delivery system must firstserve and satisfy customers’ needs and create a strong relationshipwith them.


Competitionin the coffee shop industry is high and mainly differentiated throughcustomer value and satisfaction. This requires a business to ensureits products quality and value to customers are above thecompetitors. Strategic advantage can also be attained by offeringbetter alternatives to those offered by competitors.

KeySuccess Factors


CoffeeShop industry key success factors

Key Success Factors

How The Restaurants:

  1. Competence


1 2

3 4



7 8

9 10


  1. Good customer service


1 2

3 4



7 8

9 10


  1. High-quality products &amp services


1 2

3 4



7 8

9 10


  1. Creativity and innovation


1 2

3 4



7 8

9 10


  1. High productivity


1 2

3 4



7 8

9 10


  1. Unique products and services


1 2

3 4



7 8

9 10


  1. Location


1 2

3 4



7 8

9 10


Conclusions: For the business to thrive, it will be important for it to operate on competence while a strong organizational culture will facilitate a good working environment. Emphasis on good customer service will be necessary while offering high-quality service will be the key driving force of the business. Phone Apps will provide lots of convenience to the consumer. Creativity and innovation such as phone apps, delivery service will be an area to be prioritized to increase the productivity of unique products and gain attraction. Talent development will also be at the heart of the business. In this case, we will have people who can do art on a latte and all this will only be achieved with a good location known by people.



Businessesuse segmentation to subdivide a market into buyers’ specific groupsusing their distinct characteristics, needs, behavior. In Bley’sCoffee shop, customer socio-economic segmentation will be used due tothe high concentration of social class people. These include workingclass people in offices in Toronto who prefer to have a cup of coffeein a good relaxed atmosphere. Bley’s Coffee shop will segment itsmarket using customers’ demographics and geographic location. Themajority of Bley’s coffee shop customers will be the youngpopulation aged 18 years to 35 years in colleges and working aroundToronto. The second group of customers will include people aged above45 years working class and retired veterans. The third group ofcustomers will comprise of young couples and families with children

Product&amp services

Themain product in the Bley’s Coffee shop shall be Coffee, which willbe served in different types of preparations, blends and flavors. Thetypical preparation types will include Espresso, Cappuccino,Americano, Caffe Latte, Caf au Lait, Caf Mocha and Caramel Macchiato.The main blends will include white coffee, Frappe, Turkish Coffee,Indian Midras filter coffee, instant coffee, iced coffee, Cubancoffee and Arabica coffee. Flavored coffee variety will alsoinclude peanut butter, caramel, cinnamon, chocolate, hazelnut,Folgers among others. Other products to be served will includedifferent natural fruit juices, light foods, snacks, and vegetableand fruit salads. Customers will directly order from the counter orthrough placed POS computers in different parts of the shop to allowself-service. Customers will also order directly from online throughthe business website or the mobile app. The shop will provide freeinternet service through Wi-Fi.

Pricingand Distribution

Bleycoffee shop shall use low prices to attract more young customersdominating the market. Products will be served over the counter andcustomers can take their meals from the sitting arena provided by theshop both inside and outside. Home and office deliveries can also bemade from ordering online and delivered within an hour.


Markettrends are what allow the business to capture profits. Governments,speculations within the economy, supply and demand factors, mainlyinfluence the coffee shop market. Taking coffee in coffee shops isclassified as a luxury activity and can directly be affected bycustomers’ income status. Bad economic conditions such as increasedlevels of unemployment, low-income levels and high taxation caninfluence negatively the demand (Aruvian`sR’search, 2012 FinancialTimes, n.d.).On a daily basis, customers’ traffic in the coffee shops is highestduring mid-morning hours, lunchtime and in the evenings after 5.00pm. Most of the customers buying in the morning and lunchtime arestudents and young working class. The majority of the olderpopulation prefer to take their coffee after work or later in theevening. Children and families buy more products during the weekendsand sometime during the evening after work and school hours.

Riskfactors and Implications

Supplyand demand for products, currencies in the market create a pull andpush dynamics in prices. Change in prices directly affects demand.Low supply of the products can lead to an increase in prices.Government policy on taxation also influences coffee shop businesses.High taxes lead to higher pricing of the products, which can reducedemand. Global economic dynamics that affect the local currency andimports can influence the price of raw material. Political and socialstability also influences customers’ intake in the market. Issuessuch as insecurity and terrorism can threaten customers fromfrequently visiting shopping centers and malls that may reduce sales.


Inthe Square One Shopping Center, Toronto, most of the coffee shopsavailable mainly serve traditional normal coffee and tea. Only thenational and global brands such as Starbucks provide specialty coffeeproducts like Bley’s Coffee shop intends to offer. Considering thatBley’s coffee shop will be new, the main competitive advantage theyhave included already established a customer base and market share.According to the map of Square One (n.d.), there are three coffeeshop- Starbucks &amp two Tim Horton store are located on the firstfloor of the mall, whereas the second floor, Second Cups, Mc café,and another Starbucks would come within this month . However, thesecond floor has twice more store than the first floor.

Theindependent coffee shops are the ones who are in their majority andhave recently made an entry in the area.

CompetitiveSWOT analysis


CompetitiveSWOT analysis


  • Good Location

  • Unique service(delivery)

  • Phone Apps

  • High quality


  • New unfamiliar coffee shop

  • Lack of experience

  • Not have huge profit


  • Cold weather of Canada

(hot beverage demand increase)

  • High trend of coffee (preference)

  • Good location with high rate of people flow rate

  • Big shopping mall (people get tired/thirsty in certain time, which would increase the demand they would want drinks such as coffee and foods (human basic needs) to energized them)

  • Get to know majority of people’s buying behavior under the condition within a shopping mall


  • High competition

  • Increasing prices of coffee beans

  • Currency fluctuation

CompetitiveAnalysis (Porters Five Forces)




Who are your




Market Share


Key Strategy

Tim Horton

History of Canadian Brand

Sales red flags, expansion of US are sluggish





International Brand





Second Cups


No delivery service





Itwill be important for the business to apply a competitive advantagestrategy that will be incorporated in the implementation strategy.One of the competitive strategies that the business will employ aphone Apps-people could order or made delivery option just from theapps. The coffee shop will also play an active role in the socialmedia platform where it will have active accounts and a website thatwill have a fan page of interacting with consumers. The Instagramaccount will also be very useful since it will have an array of thecoffee shop’s products and being a tag on.

Anotherstrategy that will also be very useful will be the one of providingfree Wi-Fi to customers to browse on their phones whenever they feelthe need to do so when at the precincts of the coffee shop. It willespecially be appropriate to students who identify with suchinstallations. The use of cashless payments will be another strategythat the business will employ. Sometimes people do not carry cash onthem every time and it will thus be very applicable when they areallowed to carry credit cards for payments (Rothaermel, 2013). Theuniqueness in product and service delivery will be another thing thatwill attract a significant customer segment. The choice of productsdelivery service will further enhance the coffee shop‘scompetitiveness.




Salesand Marketing Plan

Marketing strategy

Coffeeshops that offer fresh coffee and fresh meals to customers are thenew fashion in the main cities in Canada. Bley’s Coffee Shop willoffer its customers quality products and a wide range of tastes andflavors to choose. Customer service and delivery will be acceleratedto minimize waiting time. The coffee shop will offer customersfavorable environment to take their meals.

Distribution Plan

Allproducts shall be served on the counter and customers can eat at therestaurant or have their meals packed as to take away. Online orderscan also be delivered to customers homes or offices within Torontocity. The company will collaborate with a distribution company tomake the deliveries.

Pricing Strategy

Thecompany will use low price high-quality approach to ensure all themeals are affordable to every person regardless of their financialcapability. Coffee pricing will depend on the detail of the blend andthe ingredients and technique used. Lowest price per cup will be$2.95 and the highest $8.55. Snacks will range from $0.75 whilesalads will go for $1.25. Pricing will also be determined by the sizeof the product, the type of details put into the production processand the delivery mechanism to be used.

Advertising andPromotion

Bley’scoffee shop will use different media to market its products andadvertise its brand to the Toronto market. The company will promoteits products on the business website. Customers will also be able toshare the products portfolios with their friends through socialmedia. The company will also use newspapers and magazines to postadverts. TV and radio shall also be used occasionally to promotevarious products when offers are provided. Discounts and sale offerswill be one strategy to be used to attract customers to the premise.The business will be branded efficiently and signage to the premiseset up in the shopping Center to easily direct customers to thecoffee shop.

Customer servicepolicy

Bley’sCoffee shop market message will be to provide high-quality foods withhigh nutritional value at affordable prices. The business will bededicated to offering high-quality customer service in orderpreparation, and delivery. Customers’ opinions will be factoredinto production planning and operations. Employees will always befriendly and helpful to customers at all times. Customers’inquiries will be answered immediately to ensure high customersatisfaction.

Marketing budget

TVand Radio Advertising $4,350

Websiteand mobile app $2.400

Branding $6,000

Onlineads $500

Product/Service PlanCompelling customerbenefits

Currently,many customers are turned away by long queues in competitors coffeeshops due to slow services. The quality standards of foods served inthe competitors coffee shops are low and customers keep raisingcomplaints every time. Customer response is also slow as thebusinesses fail to implement suggestions from their customers. Theenvironment provided by competitors is not well set up and makescustomer uncomfortable. None of the competitors has a home and officedelivery system in place.

Products features

Themain product in the Bley’s Coffee shop shall be Coffee, which willbe served in different types of preparations, blends and flavors. Thetypical preparation types will include Espresso, Cappuccino,Americano, Caffe Latte, Caf au Lait, Caf Mocha and Caramel Macchiato.The special blends will include white coffee, Frappe, TurkishCoffee, Indian Midras filter coffee, instant coffee, iced coffee,Cuban coffee and Arabica coffee. Flavored coffee variety will alsoinclude peanut butter, caramel, cinnamon, chocolate, hazelnut,Folgers among others. Other products to be served will includedifferent natural fruit juice, light foods and snacks and vegetableand fruit salads.

Unique sellingproposition

Customersare assured quick service in every order they make. It only takes 5minutes from the time of taking the order to when it is delivered.Home and office delivery will take a maximum of 1 hour to deliver.All the foods are of high quality and nutritional value. All rawmaterial used in production are fresh from local farmers supplyingthe coffee shop daily. Customers have a chance to make orders fromthe comfort of their mobile phones or computers online and the mealsdelivered to their doorsteps.

Production/ OperationPlan Business Location andrequirements

Bley’sCoffee Shop shall occupy a leased shop space at the Square oneShopping Center. The shop shall be 650 square feet and fitted withall amenities including, water, a washroom, a kitchen, a sittingarena both inside, and a backside balcony. The restaurant shall belocated on the first floor where traffic flow of customers in and outof the mall is high.

Daily OperationsSchedule

Thebusiness will be opened at 9.00 Am and be closed at 9.00 PM every dayof the week. Employees will, however, be required to arrive one hourearly to prepare for the day and leave one hour late to close theshop. The business production will have two shifts of employees. Thefirst shift that reports at 8.00 am will be responsible for preparingmorning and lunchtime meals. The second shift will be required toreport at 2.00 pm to prepare for evening dishes. The service teamwill be run in one shift only starting at 9.00 am to 9.00 pm. Thebusiness manager and the head chef will be responsible for qualitycontrol in both production and service.

Inventory Level

Thecompany will buy daily supplies from local suppliers to ensure freshfoods are purchased. Nonperishable items will be purchased one amonth as per the monthly budget provided by the financial team.

Business TechnicalAdvisors

Legalservices, financial services, and insurance services will all beoutsourced from local companies in Toronto. They will offer all theprofessional guidance the business requires to remain legal,profitable and operations.

Equipment andTechnology

Thekitchen will be equipped with food processing machines to ensurefaster food delivery. This will require automated bakery system, afrying equipment, coffee blenders and fluid boilers. The businesswill also use a POS system with Windows operating system. The POSwill be linked to the business financial and accounting system tocontrol inventory, daily sales and the business finances. Customerself-service POS will be feted at the counter to enable self-servicein placing orders. A free router distributing Wi-Fi to the coffeeshop will be used to monitor customer activities online.

Government Regulation

Abusiness operation license will be required together with a healthservice all employees will be necessary to pass the medical healthfood handling tests. An employee license will also be obtained as perthe government requirements.

The Financial Plan

Bley’sCoffee Shop will maintain proper financial accounts for following theset strategy for the first four years. The following tabulationsdemonstrate the firm’s economic development for four years startingApril 2016 to May 2020.the business financial records shall beprepared according to the general financial accounting principles.The following show the estimates figure of the business for the firstfour years.

Startup EstimatedCost

Rent/Lease $3,240per month (38,880 per year)

OtherCosting: (Sales &amp Admin Expenses) $264,410 per year

Furnitureand Equipment $87,789

TotalAmount Required $391,079

Sales AnalysisSales Activities

Salesactivities indicate revenue to be collected annually.



Assumptionsregarding sales:

Salesprojections will grow at 8.5% per year

Cost of Sales


Costof Sales




Break Even Analysis

Thebreakeven analysis indicates the number of items and amount ofrevenue that must be sold daily to cover the cost of running thebusiness and make a profit. This will require an average of 502 cupsof coffee per day, 95 of tea, 105 packs of juice and 675 packs ofsnacks to meet the daily minimum sales target.


BreakEven Analysis

Monthly Revenue Break Even $62,974


Average Sale Per-Unit Revenue

Coffee $2.15

Tea $1.95

Juice $1.42

Snacks $1.95

Average Per Unit Variable Cost

Average Sale Per Unit Revenue

Tea $1.29

Coffee $1.17

Juice $0.85

Snacks $0.17

Estimated Monthly Fixed Costs $40,087

Pro-forma balancesheet

Thebusiness shall grow steadily at 8% per year to enable the investorssettle debts and expand the business. The following indicate thebusiness balance sheet for FY 2016-2020.


Bley’sCoffee Shop Pro-forma Balance Sheet

Pro-forma incomestatement


Pro-FormaIncome Statement

CashFlow projections

Thebusiness shall maintain a positive cash flow in the cashbook toensure daily expenditures and financial needs are met adequately.


Bley’sCoffee Shop Cash Flow projections FY 2016-2017

The Human ResourcePlan

Theowner of the company shall also be the CEO and shall be responsiblefor implementing the business objectives. The company will hire amanager responsible for planning and managing daily operations. Oneaccountant shall be responsible for computing daily sales andexpenses and preparing monthly and annual financial records. Theproduction team shall comprise of one head chef and four cooksoperating in two shifts of two cooks each. The service team shallconsist of two people working in one shift. Employees will undergotraining regularly to attain new knowledge and expand theirexperience in quality management and customer service delivery.Employee performance evaluation will be done once every year to issuepromotions, rewards and advice on how to improve. .

The Company Structure

TheCEO is the role model of the business and shall provide guidance onthe direction the company needs to go. The manager shall implementall policies and rules and ensure daily operations go smooth, andcustomer satisfaction is improved. The business shall adopt top-downcommunication structure to ensure efficiency.

The Legal Form

Thebusiness shall be registered as a limited company on the 1st of April2016. The investor shall provide all financial requirements to startthe business.

Risk and Rewards

Competitorsare the biggest risk to the company followed by changing customerneeds. Through product differentiation, quality and better servicedelivery, the business will be able to beat its competitors at everyangle. The business is profitable and has a chance to grow and openother branches in the city and beyond.

Funds required

Thestarting capital required amounts to $391,079 to be sourced from abank loan at an annual interest rate of 18.5%.

Action Plan andTimetable

Strategic Operational Area:

Objective # 1

Steps involved in objective implementation

Resource required

Timeline for completion


Objective Completion 30 Dec 2016.

Phone Apps Technician


Jul 2016

Program a good phone Apps

Get Feedback from people through survey&amp interview.

Human relation, capital, free sample coffee or bottled water

Aug 2016

Collect a sample of data, analyze feedback information about desirable apps they use and why, and what they would expect or suggest service or function from a Coffee shop Apps.

Repeated test out and run.


Aug 2016

Maximum utilization of raw material using skill, creativity, and innovation to produce quality food and delivery of service

The Deal StructureOwnership

Thebusiness will have 1000 shares to be shared between the two partners.The business total worth at the start will be $90,000 (TotalAssets-Total Liabilities). The value of the shares shall therefore be(90,000/1000) = $90 per share.

Eachpartner shall own equal amount of shares (500 shares).


Thetwo investors will have equal responsibilities in the business. Thefirst investor shall be involved in daily operations of the coffeeshop and shall act as the CEO. The other investor will be the chairof the business board mainly to provide leadership and direction inthe business.

Succession Plan

Thebusiness is expect to expand and open more branches in the Texas andacross the country. This will require further investment initiatives.The business owners shall raise the required capita for expansion byselling the business securities as stock as Initial Public Offerings(IPO). This will enable the business to raise the needed expansionfunds easily and cost effectively and minimize the role of the twoinvestors who will only retain a substantial amount of shares.

Exit Plan

Incase of failure to become profitable in the first five years, thebusiness shall be closed. First the investors shall seek professionalassistance to enable them choose the best approach to exit themarket. The first step will be to dissolve the business, cancelregistration, permits, operating licenses and the business name. Thebusiness will ensure that the bank loans are all settled andemployees are paid and fully compensated. Taxes and other businessobligations and debts shall also be settled by selling the businessassets. The second step will be to sell the business to a capable orwilling buyer and list the business worth at the time of closureincluding all assets and liabilities.

Appendixes I Bley’sCoffee shop Layout PlanAppendixII Location Map of Square One Shopping Mall in TorontoReferences

Aruvian`sR’search (2012). Foodretail in Canada Porter`s five forces strategy analysis.New Delhi, India, Aruvian`s R’search.

CoffeeAssociation of Canada. (2013). WakeUp and Smell the Coffee.Retrieved from Coffee Assoc:

FinancialTimes. (n.d.) Equities.Retrieved from

Rothaermel,F. T. (2013). Strategicmanagement: Concepts &amp cases.New York: McGraw-Hill Irwin.

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