Business Plan †Book cafe Essay

1.0 Summary Profile Business Name: GRYFFINDOR BOOK CAFÉ Type of Business: A Book Cafà © Legal Structure: Partnership Address: No. 17, Ground Floor, Parramatta Road, Broadway Gryffindor Book Cafà © operated under a partnership between 3 people. It is classified to be within the hospitality industry, with its main focus is in serving people. The partners view the Cafà © industry Australia to be lucrative due to the growing demands of coffee. Gryffindor Book Cafà © will be operated within the University zone amongst the University of Sydney and University of Technology Sydney, in Broadway. Hence, the cafà © will be in close proximity to its target market. To differentiate our cafà ©, we will embark upon a unique physical appearance, which sets it apart from local cafà ©s, provide free reading materials, such as local and foreign newspapers, different types of magazines, books and novels. We will be providing a cafà © for customers in which, they can relax and escape from the daily pressures of work and offers a place to converse with mates over a cup of coffee. Furthermore, aside from the cold and hot drinks available, the business will also provide complementary side dishes, such as cakes. Hence, Gryffindor Book Cafà © will offer a variety of choices to our customers. Gryffindor Book Cafà © will gain its competitive advantage in the market by the quality of its products, warm customer service provided by our staff and the uniqueness of our facilities, which offers an escape from the everyday rustics. Furthermore, the main promotional strategy employed by the business is the word of its satisfied customers and the various discounts the business will offer. 2.0 Critical Success Factors for the Survival of the Business  · Efficient and concise management – Good management allows operations of the business to be well coordinated.  · Detailed planning – A well-planned business would clearly lists its goals and objectives and clearly identify the methods to be implemented.  · To constantly monitor and evaluate the business’s performance to ensure efficiency and hence maximise profits.  · Quality financial management – to ensure a healthy cash flow within the business.  · Well-planned marketing strategy – to be able to provide the goods and services demanded by consumers and to be able to reach potential customers.  · Sufficient capital – in order to pay its debts and continue operations and increase sales.  · A strong competitive advantage to distinguish the business within the market.  · Entrepreneurship spirit – continuous dedication from the owners/management is needed to operate the business effectively and profitably.  · Entrepreneur’s background knowledge and experience greatly contribute to the success of the business as it aids its operations.  · Location is a vital element to a small business, which must be of easy access to its customers. 3.0 Executive Summary Gryffindor Book Cafà © recognises the importance of prompt and amiable customer service in the hospitality industry. It is a small business that provides high quality coffee and hot and cold beverages with cakes, muffins and  cookies. It differentiates itself from other cafà ©s by its unique services of providing reading materials, i.e. newspapers and magazines from different countries, which the business incorporates as their prime function. Operating as a partnership between Angelene Alburquerque, Nicole Tsui and Jeff Chan, Gryffindor Book Cafà © belongs in the private sector and in the tertiary industry. It is located in Broadway, along George St. where it is easily accessible for its target market. The following business plan will analyse in details the situational analysis of the business in its establishment, and the operational, marketing and financial plans that it will implements in its start up. 4.0 Situational Analysis 4.1 Business Name: Gryffindor Book Cafà © 4.2 Prime Function: Gryffindor Book Cafà © provides:  · Hot drinks – coffee, cappuccino, lattes, etc.  · Cold beverages  · Milkshakes  · Cakes  · Pastries  · Cookies  · Reading materials – i.e. newspapers, magazines and books 4.3 Vision Statement To be the best cafà © with a difference with a reputable image supported by:  · High quality products  · Impeccable customer service 4.4 Mission Statement Gryffindor Book Cafà © is dedicated to:  · Providing customers impeccable service within a warm, friendly environment and comfortable facilities supported by promptness, quality and style  · Serve customers with the best cafà © products in the market at a value price  · Continually find improvement in our are of operations and service  · Be socially responsible by complying to a code of conduct, which would ensure fairness to its stakeholders  · Be environmentally conscious by using earth-friendly materials 4.5 Goals Ø Financial Goals · Maximising sales and profit · Business stability · Progressive growth Ø Personal Goals · Job security · Increase self-confidence · Improving managerial skills · Professional recognition · Increase power and Influence Ø Social Goals · Comply with ethical conducts · Provision of local employment · Sponsoring local events 4.6 Business Objectives Time Period: 12 months  · To break even with revenue and total costs in the duration of 10 months  · Reduce cost by efficiency by 10%  · Increase market share by 15% through effective marketing strategies 4.7 Business Ownership/Legal Structure Gryffindor Book Cafà © will operate as a partnership between Miss Angelene Alburquerque, Miss Nicole Tsui and Mr. Jeff Chan. Advantages and disadvantages operating as a partnership are as follows. ADVANTAGES · Low start up cost · Workload and responsibility is shared · Business profits are not taxed, but personal income only · Funds and talents of the partners are combined · Lower cost involved compared to operating a company · If one partner dies, business operations may continue DISADVANTAGES · Unlimited Liability · Conflicts between partners may arise · Liable for all debts, including debts held by other partners · Incompatible characteristics, making it difficult to find a suitable partner continue 4.8 Industry Analysis Australian coffee consumption is running at an all-time high. In September, economic forecaster BIS Shrapnel reported that we consume about 2.4 kilograms per person per year, double that of 30 years ago. (Tea consumption, by contrast, is on the slide.) And cafes, says Sean Edwards, managing director of cafe-industry organization CafeBiz, are â€Å"a $7.5 billion industry in Australia†. 4.9 Competition There are two general competitors in our cafà © market. They are the multinational specialty beverage chains, such as Starbucks and Gloria Jeans, and the local coffee houses or cafes, both with an established clientele and a quality product. There is a dramatic distinction among the customers of each of these outlets. Ø Michelle’s Patisserie Michael Patisserie is a pure Australian company, which mainly sells bakery products in the Australian community. Michael Patisserie is now a national system with around 270 outlets throughout Australia and is averaging new store openings of approximately 1 per week. Company Strengths  · Well-known products in Australia  · Recognized franchise  · Offering bakery bakes  · Specialty coffee roasting, coffee retailing and coffee training  · Easy accessible location Ø Starbucks Starbucks is an international corporation, which is the leading premium coffee cafà © in the world, with more than 23 branches locates in Sydney. Due to its distinguishable reputation of Starbucks will be a threat to Gryffindor Book Cafà ©. Company strengths  · Experienced in premium coffee  · High quality of services  · Famous establishment  · Lower production cost  · Recognizable franchise Ø Gloria Jean’s Coffee Gloria Jean Coffee is another large cafà © franchise in Australia, with stores in most major shopping centers and has almost 70 branches located in the Sydney region. With the renowned celebrity compared to our brand new cafà ©, it becomes a great challenge for the business to establish a certain market position. Company Strengths  · Standardized quality products  · Well-located place  · Eminent celebrity  · Employee-trained Local Cafà ©s Although small, a very tough competitor for our cafà © is the established local cafà ©s. Their previous experience in the industry would certainly be beneficial in further developing their cafes, which will greatly disadvantage Gryffindor Book Cafà ©. The quality of beverages served at an established cafe will surpass any of the regional or national chains. Company Strengths  · Plenty of product choices  · Easy access  · Consistent menus  · Quality product  · Well-serviced The competitive edge of Gryffindor Book Cafà © over the local cafes is based on the attributes of:  · Foreign newspapers and magazine service  · Consistent menu  · Quality product  · Discount purchases 4.10 Competitive Advantage Statement â€Å"Aside from our deliciously baked cakes and tantalising freshly brewed coffees, which is of the highest quality around, Gryffindor Book Cafà © guarantees the best customer service in the business.† SWOT Analysis Strengths · Business & management master’s degree held by each partner – intensive knowledge · Strong motivation and commitment held by each partner as personal success is dependent on the business’s performance · Focus on excellent service in satisfying customer’s needs · Well defined goals and objectives · Employs a variety of marketing strategies to reach customers · Unique facilities, which sets it apart from its competitors · Ability to provide personalized service Weaknesses · Undercapitalisation · Minimal experience in the hospitality industry · Minimal experience in making and preparing foods and drinks Opportunities · Increase market share · Take over dissatisfied customers from  their businesses · Increase variety of products · Positive forecasting Threats · Competitors – i.e. Transnational corporation (E.g. Starbucks & Gloria Jeans) · Unpredictable downturn in economy · Changes in government policies/laws · External government department controls – i.e. showing up unexpected 4.11 Economic Conditions Economic conditions will greatly affect the business. For example, changes in interest rates will affect the business’s bank loan. A change in unemployment may see a reduction of sales from the business, as customers are not willing to spend. Furthermore, economic conditions determine price levels. For instance, prices must be set lower during a recession. 4.12 Socio-Cultural Conditions Australia is multicultural and is therefore important for the business to treat everyone fairly without any bias. The business can use this factor as an advantage by offering foreign reading materials to cater for the majority of our customers. For example, English, Chinese, Japanese and Korean. Additionally the business must continue to monitor the changing trends in society in order to provide the goods and services that customers want and be able to change. 4.13 Legal-Political Conditions In order to legally establish a cafà ©, the business must be registered and it is important to apply a food licence from the council. Moreover, the quality of food and drink is extremely important to qualify and be permitted to open. Furthermore, laws such as the Fair Trading Act and Occupational Health and Safety regulations greatly effects the conducts of business and influences its operations. 4.14 Technological Conditions Gryffindor Book Cafà © must maintain its technological edge amongst its competitors. Therefore, we can introduce some high-technology machine (coffee maker) to improve the quality of our products and efficiency of the operations in long run. In short run, we may provide on-line order service for take-away service, such as order-on-net service, and improve our record keepings by the latest softwares, which would simplify managerial tasks. 4.15 Natural Environment Conditions Through the use of recyclable products, the business would project an environmentally-friendly image and avoid wastage. Furthermore, the business can utilise methods of saving water and the use less electricity. Consequently, this may not only protect the environment, but also reduce operating expenses. 5.0 Operations Plan 5.1 Location Gryffindor Book Cafe will be located in Broadway, along Parramatta Road, which is in close proximity with out target market. The physical size of the cafà © approximately measures to be 1600 square feet and is opposite Victoria Park, which encompasses a peaceful, scenic view of the area. The reason for this location is essentially due to the two universities in the area. 5.2 Furnishings Our cafà © will mainly use wood to be our main ornamentation and use French windows to emphasise Victoria Park’s green landscape to our customers as they read. Being a cafà © which provides reading resources, the lighting must be sufficient in order to protect our customer’s health, upholding our social responsibility. Moreover, we will furnish the cafà © with snug sofas to provide contented seats for reading convenience and just relaxing. A local professional will be contracted out of the business to handle the furnishing of the place. 5.3 Operating Hours Monday – Wednesday 7:00am – 6:30pm Thursday – Friday 7:30am – 8:00pm Saturday 7:30pm – 4:00pm Sunday Closed 5.4 Cafà © Floor Layout 5.5 Details of Production and Service Ø Food Preparation  · Beverages and hot drinks are to be prepared as it is ordered  · Muffins and cakes are baked freshly on a daily basis  · Some products will be ordered from local producers i.e. cakes Ø Service  · Customers approach the counter to make their order, which they have the choice to eat in or to take away.  · Reading materials are available to the customers, such as books that are old and new and magazines, which are distributed throughout the cafà © in shelves lining the wall.  · Current local and international newspapers, particularly from Asia are available to customers to read, which are positioned at the counter as they order, for easier and more convenient access.  · Staff would walk around to customers offering reading materials and ensuring that they are satisfied with the food and service.  · Smoking is prohibited in our cafà © to facilitate fresh air supply. 5.6 Stakeholders Ø Internal Stakeholders – The partners are the internal stakeholders of the business and has a responsibility for towards one another to perform their part in the business to the best of their ability. They are also the internal customers of the business, as each of their workload is vital for all partners to be able to perform their job efficiently. – Employees – the business must provide a safe working environment, to comply with Occupational Health and Safety regulations and provide training. Ø External Stakeholders – Customers – the business is responsible in providing high quality products, a safe environment and fair service. – Community – the business must be environmentally friendly, and will provide recyclable takeaway containers. – Government – the business will pay its due taxes, and will behave ethically in recording profits and expenses. – Suppliers – the business must pay its debts.  § John Fairfax Holding Limited – supplies newspapers and magazines  § Maxims – supplies food and drinks products 5.7 Proposed Organisational Chart 5.8 Method of Employee Participation in Decision Making  · The flatter structure encourages direct communication between employees and employers, which allows more input from staff and ideas to reach management at a more efficient manner.  · A suggestion box positioned behind the counter would be available for all staff to insert ideas as they work, which will be discussed in meetings.  · Include staff in meetings and allow for contribution  · Employ participatory planning, to include the staff, which will be affected by the plans made and/or will be asked to implement them.