Report

Of
Business Plan
Topic Coffee shop

Submitted by:Jaspreet Singh

BBA-3C

Coffee Shop Business Plan Grand Brew Coffee Shop

Start-up Cost:
Start-up Cost First Month Rent: Rs 10000/- month modernize Fee: Rs 1,
00,000/- (Impression: calm comfortable soft mood light music, painting
make guests feel at home) Furniture Fee: About Rs 60,000/- Sofa Bar
counter Tables Chairs Equipment Fee: About Rs 1, 80,000/- Coffee
machine Coffee-mill Air conditioning Stereo Cash registers Water
treatment Supplies Fee: Coffee Snack Coffee cups Napkin Forks and
Knives etc Rs 20000/- First Month Utensils Fee: Water and Electricity Fee
Rs 8000/- Advertising Fee for first month: Rs 5000/-

TOTAL STARTUP COSTS TO OPEN:

TOTAL STARTUP COSTS TO OPEN Rs 4, 00,000/-

Operating Costs:
Operating Costs Rs 8000/- for utilities per month included fuel, water and
electricity charges Rent of Rs 1,20,000/- each year Salary for Rs 37,700/per month A supply cost of Rs 20000/- each month included coffee, snacks,
cups, napkins.

Operating Costs:
Operating Costs Advertising costs of Rs 60,000/- per year Insurance of Rs
10,000/- per year an estimate of Rs 81,543/- per month for total operating
costs

Physical Training:
Physical Training Smile Manners Good posture for long time Balance
Talking Skill Operation of the coffee machine

Skill Training:
Skill Training Familiar with our product Coffee culture Proper reaction Inner
decoration never judge a person by his appearance Cooperation &
Leadership.

PowerPoint Presentation:
Waiter X 4 Cashier X 1 Coffee Maker X 2 In One Hour!

Employee Pay:
Employee Pay Waiter & Waitress & Casher & Coffee maker Rs 15/- per
hour Manager Rs 7,500/- per month Accountant Rs 5,000/- per month Total
monthly Pay: Rs 37,700/-

Price & Revenue:

Price & Revenue Coffee: Rs 50/- to 150/- (Depends on the flavor) Cake: Rs
60/- to 300/- ( Depends on the flavor ) Cookie: Rs 45/- to 250/- ( Depend on
the flavor) Estimated Sell 125 cups coffee, 30 pieces of cakes and 30 pieces
of cookies. Day Revenue = 75*125 + 150*30 + 125*30 = Rs 17,750/Monthly Revenue = Rs 17,750 * 30 = Rs 5, 32,500/-

Government Taxes:
Government Taxes Sales tax 5% * Revenue = Rs 26,625/- City planning tax
1.5% * Revenue = Rs 7,988/- Total Monthly Tax Expense Rs 34613/Monthly Profit:
Monthly Profit Monthly Cost: total operating cost Rs 81,543/- Monthly
Profit: TR TC Taxes = Rs 5, 32,500 Rs 81,543 - Rs 34,613 = Rs
4,16,344/Funds borrowed:
Funds borrowed Rs 4,00,000/- from State Bank of India 1 years Interest rate
is Rs 12.50% Monthly payment Rs 37500/Pay for the loan:
Pay for the loan Monthly Payment Rs 37,500/- Monthly Profit Rs 4,16,344/Monthly Remain Rs 4,16,344 - Rs37,500 = Rs 378844/-

Targeting:
In a perfectly efficient market, a person would be honest about their trigger
price, and a business could sell their coffee to anyone whose trigger price is
above 50rupees. A frugal person might walk up and pay 75 rupees, while a
spendthrift coffee addict in a rush would pay 500 rupees for the same cup.
Obviously, this wouldnt work in the real world, so stores have to find a way
around this. Getting people to pay as close to their trigger price as possible is
called price-targeting.

SWOT Analysis
Strengths:
1. Demand: The demand for coffee shops and quality products at
competitive prices is enormous in the sarbha nagar market .This is
mainly because of the increasing number of customers in the market ,.
2. Customer base: The customer base which is the main element whilst
determining the target market. This is not only from the side of the
passengers who visit the market
3. Weaknesses:
1. Volatile customer base: The major weakness is the volatile nature of
the customer base in the market. The fact that even though the
customer potential in the market , but ever changing due to the nature
of the business in the market makes the customer potential as a critical
weakness as much as it is argued as a strength
2. Seasonal business: Another important factor that needs to be
considered is that the market high level of customers during the
periods of holiday. This makes it clear that the business for the coffee
shop is seasonal in nature.
Opportunities:
1. Differentiation by Pricing: the demand for quality products at
competitive pricing is an increasing demand at the sarbha nagar
market . This demand can1 be harnessed by the coffee shop through
providing value-added services and quality products at competitive

prices. The financial analysis in the next section will provide a deeper
insight on the pricing of the products.
2. Diverse Target market: The diversity in the market which is merely
due to the diversity in sarbha nagar market an effective method of
attracting a niche market or more than one segment of the market with
customized products whilst providing a base line of product range to
meet the overall demand of the customers.
Break-Even Analysis

A startup business owner must understand that 4 lakh of product sales will
not cover 50,0000 in monthly overhead expenses. The cost of selling
50,0000 in retail goods could easily be 30,0000 at the wholesale price, so the
5,00000 in sales revenue only provides 20,0000 in gross profit. The
breakeven point is reached when revenue equals all business costs.
To calculate your breakeven point, you will need to identify your fixed and
variable costs. Fixed costs are expenses that do not vary with sales volume,
such as rent and administrative salaries. These expenses must be paid
regardless of sales, and are often referred to as overhead costs. Variable costs
fluctuate directly with sales volume, such as purchasing inventory, shipping,
and manufacturing a product. The formula for determining your breakeven
point requires no more than simple arithmetic.