The Business Plan For Your Coffee Shop: Fourth Edition

The Business Plan for Your Coffee Shop
Fourth Edition
Other Titles of Interest from

125aday.com Publishing Company, Inc.
Helping Small Business Do More Business!
More Coffee Shop Related Products
• Start Your Own Coffee Shop
Top Business Books
• New Customer Development Program

• Customer Care Guide
• Market Research: Surveys and Questionnaires
• Human Resources: Independent Contractors
Special Offers
Business Talk™ Newsletter
For more information, go to www.125aday.com to

sign up or e-mail us at corporate@125aday.com
ii
Fourth Edition
Starting, operating and managing a coffee shop is a

complex task. A functional business plan is not only
valuable when seeking investment funds, but in the
day to day management of the coffee shop.
This eleven step business plan will help you create

your coffee shop business plan with confidence. This
user friendly business plan was prepared with ProBP,
the professional business plan software solution.
Be sure that you have all of the components; the

workbook, the Excel spreadsheet and the Word
Option document.
Jack Samson
125aday.com Publishing Company, Inc.

PO Box 2432
Frisco, Texas USA 75034
866-900-7887
www.125aday.com
iii
Publisher: 125aday.com Publishing Company, Inc.

Cover Design: Chad Wade
Photographs & Graphs Copyright © 2007 David Lee
This publication is designed to provide accurate and authoritative information in

regard to the subject matter covered. It is sold with the understanding that the
publisher is not engaged in rendering professional services. If legal, account,
medical, psychological, or any other expert assistance is required, the services of a
competent professional person should be sought. ADAPTED FROM A DECLARATION
OF PRINCIPLES OF A JOINT COMMITTEE OF THE AMERICAN BAR ASSOCIATION AND
PUBLISHERS.
Copyright 2004-2008 by 125aday.com Publishing Company, Inc.
All rights reserved.
Reproduction or translation of any part of this work beyond that permitted by Section
107 or 108 of the 1976 United States Copyright Act without the permission of the
copyright owner is unlawful. Requests for permission or further information should
be addressed to the Permissions Department, 125aday.com Publishing Company,
Inc.
125aday, 125aday.com, Business Talk and ProBP (business plan software) are
trademarks of Dallas Distribution and Publishing Company, Inc.
Third-Party Materials and Linked Materials - The publisher is not responsible for the
content of those "third-party" materials which are not directly related to the publisher,
and not under its control or auspices. Further, the publisher makes no representations
regarding the content, products, services, advertising or other materials available
from "third-party" materials and is not responsible for the legality, decency, copyright
compliance, or accuracy of information provided by those individuals/companies which
have paid to be linked to this material. Additionally, the publisher will not be held
liable for damage or loss (caused or alleged to be caused) in connection with the use
of a "third party" material. Please be advised that when you use affiliated services or
third-party materials, you may be subject to additional terms and conditions. As with
a multitude of other web materials, we ask that you exercise due diligence in
browsing any "outside" vendor page.
Trademark Notice - The words contained in this text which are believed to be
trademarked, service marked, or otherwise to hold proprietary rights have been
designated as such by use of initial capitalization. No attempt has been made to
designate as trademarked or service marked any personal computer words or terms in
which proprietary rights might exist. Inclusion, exclusion, or definition of a word or
term is not intended to affect, or to express judgment upon, the validity of legal
status of any proprietary right which may be claimed for a specific word or term.
iv
The Business Plan for Your

Coffee Shop
Table of Contents
Introduction ................................................................................................. 1
Customizing the Business Plan ................................................................. 2
Changing the Page Setup.......................................................................... 2
The Page Tab ...................................................................................... 2
Orientation ...................................................................................... 2
Paper Size ....................................................................................... 2
Print Preview .................................................................................... 2
The Margins Tab .................................................................................. 2
The Header/Footer Tab ......................................................................... 2
Changing the Header......................................................................... 2
Changing the Footer .......................................................................... 2
The Sheet Tab ..................................................................................... 3
Changing the Font and Font Size ............................................................... 3
Changing the Color of the Text .................................................................. 3
Adding or Removing Worksheets................................................................ 3
Renaming the Pages in the Spreadsheet ..................................................... 4
Renaming the Pages in the Spreadsheet ..................................................... 5
Adding or Removing Rows or Columns........................................................ 5
Inserting Pictures .................................................................................... 5
Changing the Formulas............................................................................. 5
Excel Help .............................................................................................. 5
Word® Option........................................................................................... 5
Samples and Illustrations ......................................................................... 6
Changing Chart Information ..................................................................... 6
Mutual Non-Disclosure Agreement............................................................ 8
Step One ...................................................................................................... 9
Your Personal Evaluation .......................................................................... 9
Your Net Worth ....................................................................................... 9
Instructions on How to Complete in Excel ................................................ 9
Your Personal Budget ............................................................................... 9
Why This Information Is Important ............................................................ 9
Step Two .................................................................................................... 11
The Cover Sheet...................................................................................... 11
First Impression! ....................................................................................11
Elements of the Cover Sheet ....................................................................11
Complete the Cover Sheet Section ............................................................11
Saving Your Business Plan File..................................................................11
Cover Sheet Sample ...............................................................................13
v
Step Three.................................................................................................. 14
The Executive Summary.......................................................................... 14
The Basics of the Executive Summary .......................................................14
Applying for Loans or Investors ................................................................14
Information That Should Be Included ........................................................14
Mistakes to Avoid ................................................................................16
Mission Statement ..................................................................................16
The Basics of the Mission Statement ......................................................16
Mistakes to Avoid ................................................................................17
Products and Services .............................................................................17
Complete the Executive Summary.............................................................18
When You Have Completed the Executive Summary ....................................18
Executive Summary Sample.....................................................................19
Step Four ................................................................................................... 22
General Company Description ................................................................. 22
Company Description: Business Plan Basics................................................22
Mistakes to Avoid ...................................................................................23
Company Goals and Objectives.................................................................23
Business Philosophy................................................................................23
Legal Form of Ownership .........................................................................24
Complete the General Company Description Section ....................................24
When You Have Completed the Company Goals and Objectives .....................24
General Company Description Sample .......................................................25
Step Five .................................................................................................... 26
Products and Services Description .......................................................... 26
Competitive Advantages or Disadvantages ..............................................26
Pricing Structures................................................................................26
Products and Services Description: Business Plan Basics ..............................27
Complete the Products and Services Section...............................................28
When You Have Completed the Products and Services Description .................28
Products and Services Description Sample .................................................29
Step Six...................................................................................................... 31
Start-Up Costs and Capitalization ........................................................... 31
Qualified and Non-Qualified Start-Up Costs ................................................31
Qualified Start-Up Costs .......................................................................31
Non-Qualified Start-Up Costs ................................................................31
Budget Allowances..................................................................................31
Evaluating Start-Up Costs ........................................................................32
Start-Up To Do List .................................................................................33
Start-Up Narrative ..................................................................................34
Instructions on How to Complete in Excel ...............................................35
Complete the Start Up Costs Section .........................................................36
When You Have Completed the Start Up Costs and Capitalization Section .......36
Start-Up Narrative Sample.......................................................................37
Step Seven ................................................................................................. 41
The Marketing Plan ................................................................................. 41
Marketing & Sales: Business Plan Basics ....................................................41
vi

Target Market: Business Plan Basics..........................................................43
Market Research Basics ...........................................................................44
Market Research - Why? ......................................................................44
Market Research - How?.......................................................................45
Primary Market Research ..................................................................45
Secondary Market Research ..............................................................45
Economics of the Industry .......................................................................45
Product .................................................................................................46
Features and Benefits ..........................................................................46
Customers.............................................................................................47
Competition ...........................................................................................47
Niche Market .........................................................................................48
Marketing Strategy .................................................................................48
Promotion ..........................................................................................48
Promotional Budget .............................................................................48
Pricing ...............................................................................................49
Proposed Location ...............................................................................49
Complete the Marketing Plan....................................................................50
When You Have Completed the Marketing Plan ...........................................50
Marketing Plan Sample ............................................................................51
Step Eight................................................................................................... 54
Sales Forecast......................................................................................... 54
Financial Projections: Business Plan Basics .................................................54
Sales Forecast .......................................................................................55
The Excel Spreadsheet ............................................................................55
Instructions on How to Complete in Excel ...............................................55
Complete the Sales Forecast Section .........................................................56
When You Have Completed the Sales Forecast............................................56
Step Nine ................................................................................................... 57
The Operational Plan .............................................................................. 57
Operational Plan: Business Plan Basics ......................................................57
The Operational Plan...............................................................................58
Production .............................................................................................58
Location ................................................................................................59
Physical Requirements .........................................................................59
Access ...............................................................................................59
Construction.......................................................................................59
Cost ..................................................................................................59
Legal Environment..................................................................................59
Personnel ..............................................................................................59
Inventory ..............................................................................................60
Suppliers...............................................................................................60
Managing your Accounts Receivable ..........................................................60
Managing your Accounts Payable ..............................................................61
Complete the Operational Plan Section ......................................................61
When You Have Completed the Operational Plan .........................................62
Operational Plan Sample..........................................................................63
vii
Step Ten ..................................................................................................... 66

Management and Organization ............................................................... 66
Management Team: Business Plan Basics...................................................66
Specific Team Members ...........................................................................66
Board of Directors ..................................................................................67
Board of Advisors ...................................................................................67
Consultants ...........................................................................................67
Professional and Advisory Support ............................................................68
Complete the Management and Organization Section...................................68
When You Have Completed the Management and Organization .....................68
Management and Organization Sample ......................................................69
Step Eleven ................................................................................................ 71
The Financial Plan................................................................................... 71
Financial Projections: Business Plan Basics .................................................71
The Financial Plan for Your Company .........................................................73
Instructions on How to Complete the Profit-Loss Narrative ........................73
Profit-Loss Projection ..............................................................................73
Instructions on How to Complete the Profit-Loss Statement.......................74
Projected Cash Flow................................................................................74
Instructions on How to Complete the Projected Cash Flow.........................75
Opening Day Balance Sheet .....................................................................76
Instructions on How to Complete the Balance Sheet .................................76
Break-Even Analysis ...............................................................................76
Instructions on How to Complete the Break-Even Analysis ........................77
When You Have Completed the Financial Plan .............................................77
Financial Plan Sample .............................................................................78
Appendixes ................................................................................................ 81
Your Business Plan Now Complete and Ready for Printing ......................... 82
In Conclusion ............................................................................................. 82
PowerPoint:Demonstrations ................................................................... 82
Non-Disclosure Agreement......................................................................... 84
Attachment One ......................................................................................... 87
A Discussion of the Basic Legal Forms of Ownership .............................. 87
Proprietorship, Partnership or Incorporation?..............................................87
Advantages and Disadvantages of Proprietorship .....................................87
Advantages.....................................................................................87
Disadvantages.................................................................................88
Advantages and Disadvantages of Partnership.........................................88
Advantages.....................................................................................88
Disadvantages.................................................................................89
Advantages and Disadvantages of Incorporating ......................................89
Advantages.....................................................................................89
Disadvantages.................................................................................90
Registering a Proprietorship or Partnership .............................................90
Registering a Corporation .....................................................................90
Incorporating a Company in your State ..................................................90
viii
Attachment Two ......................................................................................... 91

Information Resources ........................................................................... 91
U.S. Small Business Administration (SBA) ..................................................91
Service Corps of Retired Executives (SCORE) .............................................92
Small Business Development Centers (SBDCs) ...........................................92
Small Business Institutes (SBIs) ...............................................................92
SBA Business Development Programs........................................................92
Other U.S. Government Resources ............................................................92
Federal Publications ................................................................................92
Consumer Information Center (CIC) ..........................................................93
Consumer Product Safety Commission (CPSC) ............................................93
U.S. Department of Agriculture (USDA) .....................................................93
U.S. Department of Commerce (DOC) .......................................................93
U.S. Department of Health and Human Services (HHS) ................................93
U.S. Department of Labor (DOL)...............................................................94
Internal Revenue Service (IRS) ................................................................94
U.S. Environmental Protection Agency (EPA) ..............................................94
U.S. Food and Drug Administration (FDA) ..................................................94
For More Information ..............................................................................94
Government and State Websites ................................................................ 96
Index ......................................................................................................... 97
ix
Introduction
There are few very secrets and absolutely no short cuts to preparing a
business plan for a coffee shop. Careful investigation, complete research,
and a through thought process is required to complete an accurate business
plan for a coffee shop.
The real value of creating a business plan is not in having the finished
product in your hand; rather, the value lies in the process of researching and
thinking about your business in a systematic way. The act of planning helps
you to think of things thoroughly, study and research if you are not sure of
the facts, and look at your ideas critically. It takes time now, but avoids
costly, perhaps disastrous, mistakes later.
This business plan is carefully structured to take you a step at a time. In

order to complete this business plan accurately, you should take each step,
in order, and then move on to the next step. You do not have to complete
the entire business plan at once. We do suggest that you complete each
step before leaving your work.
Important Notes and Tips
Throughout this business plan, there will be important notes and tips about
entering information into the business plan spreadsheet template, formatting
the business plan spreadsheet template, Word option narratives, and printing
suggestions and alerts. If you have any problem with these areas, check
the Appendix on page 81 for trouble shooting information related to these
important notes and tips. So when you see these, carefully read the
information!
Let’s get started.
The Business Plan for Your Coffee Shop is divided into eleven (11) steps.
These steps are:
Step One – Your Personal Evaluation on page 7

Step Two – The Business Plan Cover Sheet on page 11
Step Three – The Executive Summary on page 13
Step Four – General Company Description on page 22
Step Five – Products and Services on page 26
Step Six – Start Up Costs on page 31
Step Seven - The Marketing Plan on page 41
Step Eight – Sales Forecasts on page 54
Step Nine – The Operational Budget on page 57
Step Ten - Management and Organization on page 66
Step Eleven – The Financial Plan on page 71
Appendixes on page 81
Your business plan Is Now Complete and Ready for Printing on page 82
1
In Conclusion on page 82
Customizing the Business Plan
You can customize the business plan and how it looks when viewed on the
computer and when the business plan is printed. Here we explain some of
the basics of customizing the Excel® spreadsheet.
Changing the Page Setup
The Page Tab
Orientation
Here you can select to view and print your business plan in portrait (vertical)
or landscape (horizontal) format. The default setting is portrait.
Paper Size
Here you can select to and view print in letter, legal or custom paper sizes.
The default setting is letter.
Print Preview
Here you can select to print the business plan from the back to the front, or
vice versa. The default setting is back to front.
The Margins Tab
Here you can select the margins for your business plan. The default settings
are the recommended settings.
The Header/Footer Tab
Changing the Header
Click on the Custom Header button and you can customize the header for
your business plan. Also notice that you can select a print preview from this
screen that allows you to see the entire page, with headers and footers.
After changing the header, click OK to save your changes.
Changing the Footer
Click on the Custom Footer button and you can customize the header for
your business plan.
After changing the footer, click OK to save your changes.
2
The Sheet Tab
Here you can adjust and set the:
¾ Print Area
¾ Print Titles
¾ Print Instructions for:
Gridlines
Row & Column Headings
Comments
¾ Page Order
Changing the Font and Font Size
You can select the entire worksheet or specific text to assign font and font
size to in the workbook and make your changes on the toolbar. You can
have different size fonts on the same page. The default font is Trebuchet MS
and the font size varies. You can select the Formatting Toolbar that will
show the font and font size. It will look like this:
Changing the Color of the Text
You can select the entire worksheet or specific text to assign font and font
size to in the workbook and make your changes on the toolbar. You can
have many different colors on the same page. The default color is the color
that is on the worksheets now.
Adding or Removing Worksheets
You can add worksheets by clicking on Insert, Worksheet. You will want to
click on the tab next to the area where you want to insert the worksheet.
You can delete a worksheet by clicking on Edit, Delete Sheet.
Spreadsheet Note
Important Note Regarding Deleting a Worksheet
WARNING: if you delete a sheet with formulas that extend to other
pages in the spreadsheet, you will receive errors in the formulas. So
be sure you want to delete the worksheet before doing so!
3
Viewing the Pages in the Spreadsheet
The pages of the spreadsheet are shown at the bottom of the page as tabs.
To view the different pages, the sheet tabs Sheet tab bar appears at the
bottom of the screen with tab scrolling buttons displayed on the left side.
If the Sheet Tabs are not there, you can restore them by the following:
1. On the Tools menu, click Options.
2. On the View tab, under Window options, select or clear the Sheet tabs
check box.
You will notice that the columns are labeled with letters (A, B, C, etc) and the
rows are numbered. As we go through spreadsheets, we will refer to the
column letter and the row number. The column letter is across the top of the
spreadsheet. The row number is along the left hand side of the spreadsheet.
Each individual block in the spreadsheet is called a cell.
Rows, Columns and Cells
While we have attempted to include everything necessary in these

spreadsheets, if you add rows to the spreadsheets, the totals may not add
up! You will need to adjust the formulas to add up the figures if you add
rows. While this is not difficult, you will need to ensure that you can adjust
the totals so the figures will be correct. You can also change the text colors,
fonts, and sizes of the fonts as you work.
4
Renaming the Pages in the Spreadsheet
Select the tab you want to rename. Right click on the tab and select
Rename. Type the new name of the page, but there is a character limit.
Adding or Removing Rows or Columns
You can rows or columns by selecting where you want to add the row or
column. Then select Insert, then row or column.
You can remove an entire row by clicking on the row number (far left) and
selecting Edit, delete.
You can remove an entire column by click on the column and selecting Edit,
delete.
Spreadsheet Note
Important Note Regarding Deleting a Rows or Columns
WARNING: if you delete a cell, row or column with formulas that
extend to other pages in the spreadsheet, you will receive errors in
the formulas. So be sure you want to delete the cell, row or column before
doing so!
Inserting Pictures
You can insert pictures from your computer into the business plan by
selecting the cell where you want the picture to be inserted. Then select
Insert, Picture and browse to the picture you want to insert. Double click the
picture and then format the cell.
Changing the Formulas
Changing or adding formulas is not extremely difficult in Excel®. However, it

does require a working knowledge of the formulas. You can search the Help
section for information pertaining to the formula you want to change or add.
Excel Help
Depending on the version you are using, you can use the Help section in the
application and later versions have online extend help resources. Just click
on Help on the toolbar or you can hit F1.
Word® Option
If you are not familiar with how to enter text into the Excel® spreadsheet,
you might find it easier to enter all of the narrative information in the Word®
Option document. If you use the Word® Option document, you will need to
manually enter the page numbers onto each page of your business plan.
5
Samples and Illustrations
In each step of the business plan, we provide you either a sample or an

illustration of the information that you will need to provide in the step.
Sample Illustration Excel

Step 1 Net Worth √
Step 2 Cover Sheet √
Step 3 Executive Summary √
Step 4 General Company Description √
Step 5 Products and Services Description √
Step 6 Start-Up Costs Narrative √
Step 6 Start-Up Costs √
Step 7 Marketing Plan √
Step 8 Sales Forecast √
Step 9 Operational Plan √
Step 10 Management and Organization √
Step 11 Financial Plan Narrative √
Step 11 Profit-Loss Statement √
Step 11 Projected Cash Flow √
Step 11 Balance Sheet √
Step 11 Break-Even Analysis √
Changing Chart Information
We have provided charts in the Excel® spreadsheet for the information that
bankers, investors, and other lenders want to see in your business plan. The
charts are automatically produced from the information that you enter.
Based on the information that you enter, you may need to change the
information on the axis of the chart. For example, this Chart Example 1 is
from Step One, Personal Net Worth. As you can see, the Income Needed
axis on the left is in the increments of $100,000 and $200,000. The axis
information needs to be changed to make the information look better and
more visible.
6
Chart Example 1
We have changed the axis information to increments of $10,000 up to

$90,000. See the difference in Chart Example 2 below.
Chart Example 2
How to change entries on the X-axis or Y-axis:
1. Right click on the Axis that you would like to change and then click the tab
labeled Scale.
2. When you have determined what range of numbers you want to use insert
them into the proper boxes to the minimum and maximum units that you
want to use.
3. With this option you can also change the font, sizing of the font, the
category and alignment.
7
Mutual Non-Disclosure Agreement
A non-disclosure agreement (NDA) can send up red flags to your intended

audience. A seasoned banker or venture capitalist is bound by client
confidentiality and may find a NDA insulting. Secondly, if the business needs
to protect its ideas and concept at this stage of the game then there may not
be any barriers to entry for others to enter the market. A simple
confidentiality clause at the front of the plan should suffice. In some cases,
such as setting up a strategic alliance a non-disclosure may be necessary. If
in doubt, consult with a lawyer. A sample agreement is shown on page 84.
We have chosen to include a Confidentiality and Recognition of Risks

statement on the Cover Sheet. You can view this statement on the Cover
Sheet Sample on page 13.
8
Step One
Your Personal Evaluation
Your Net Worth
Before starting your coffee shop, you need to have a firm grasp on your own
personal financial situation. For that reason, the first step in preparing your
business plan will be to determine your personal financial picture.
Instructions on How to Complete the Excel Spreadsheets
Refer to your Excel® Spreadsheet. The first page is entitled Step 1 -Your
Net Worth.
In viewing the first page of the Excel® spreadsheet entitled Step 1 -Your Net
Worth, you will find that this information is very straight forward and simple,
so a detailed discussion is unnecessary. Just fill in the blanks. At the bottom
of the page, you will see your Estimated Net Worth. The areas in the light
blue color automatically fill themselves in, so do not enter any figures in
these cells. Hopefully, this will be a positive number.
Your Personal Budget
Refer to your Excel® Spreadsheet, Step 1 – Your Net Worth and scroll down
to the section entitled Your Personal Budget.
Again, this information is commonplace and you should know what dollar
amounts to enter into the cells. For instance, in Column C, Row 56, this is
monthly mortgage. If you monthly payments are $1,500.00, enter 1500 in
Column D, Row 56.
You will see that this Personal Budget is for 1 month, 3 months, 6 months,
and 1 year. You should also notice that as you enter your monthly mortgage
payment, the spreadsheet automatically totals the rest of the row. So you
only need to enter the monthly amounts to get the 3 and 6 months totals
and the yearly total.
Why This Information Is Important
In starting your coffee shop, you need to have your personal financial
situation firmly planted on the ground. Starting a business is difficult enough
without personal financial problems getting in the way of your success.
If the Total Income Needed (Column D, Row 89) is greater than your Total
Income (Column D, Row 87), you have some financial issues to fix before
starting your coffee shop. We can’t tell you how to fix this problem, but we
9
can tell you that your will be starting your coffee shop in financial trouble and
that is no way to start a business!
In the example below, the total income is $8,000 a month with monthly
expenses of $4,355. Therefore, there is a surplus of funds monthly for
savings, investment and/or starting a business.
Figure 1-1. Income Differential
Figure 1-2. Income Differential
Now, assuming that your personal financial situation is acceptable, you are
ready now to begin preparing The Business Plan for Your Coffee Shop.
10
Step Two
The Cover Sheet
First Impression!
The Cover Sheet is the first page of your business plan. The cover of the
document is often the "First Impression" of your shop for any interested
parties or investors. The purpose of a cover is to tell the reader what the
document is about. Your cover sheet should include:
9 Name and business name

9 Company logo
9 Address
9 Telephone number
9 Fax number
9 E-mail address
9 Other contact information
Tip
Important Tip
Cover Sheet
The cover should be attractive and professional looking. Fonts used should be
easily read and color contrasts should be pleasant to the eye.
Elements of the Cover Sheet
The information is very basic. You can view an example of a Cover Sheet on
page 13.
Complete the Cover Sheet Section
You can prepare the Cover Sheet in Excel® or Word®.
To complete the Cover Sheet in Excel®, go to the Excel® spreadsheet to the

tab labeled Step 2 – Cover Sheet. Fill in the information and save your work.
To complete the Cover Sheet in Word®, go to the Word® options file and
complete the information.
Saving Your Business Plan File
As you complete the Steps in this business plan, be sure to save your work
often.
11
Tip
Important Tip
Save Your Work Often
Nothing is worse than working on your business plan for an hour

and then having the computer shut down expectedly. Save your work often
and you won’t lose your information!
When you have completed the Cover Sheet, you are ready for the next step
in the preparation of your business plan. So proceed to Step Three, the
Executive Summary on page 13.
12
The Business Plan For

Perk Me Up Coffee Shop

2738 Commerce Way
Any Town, State, Zip
Contact Person: Dustin Roberts

Telephone: 222-333-4444
Fax: 111-222-3333
Email: xyz@example.com
Confidentiality and Recognition of Risks

Confidentiality Clause
The information included in this business plan is strictly confidential and is provided on the
understanding that it will not be disclosed to third parties without the expressed written
consent of Dustin Roberts.
Recognition of Risk
This business plan represents management's best estimate of the future potential of our
business venture. It should be recognized that not all-major risks can be accurately predicted
or otherwise avoided and that few business plans are free of errors of omission or commission.
Therefore investors should be aware that this business has inherent risks that should be
evaluated prior to any investment.
13
Step Three
The Executive Summary
The Basics of the Executive Summary
The Executive Summary is a narrative and should be one to two pages in

length. We certainly suggest you make it two pages or less, especially if
investors or bankers will be reviewing your business plan for loan or
investment purposes.
You should explain the fundamentals of your coffee shop:
1. What will your menu products and store services be,

2. Who will be your customers,
3. Who are the owners of your coffee shop, and
4. What you think the future holds for your coffee shop and the industry.
You should make this narrative enthusiastic, professional, complete and

concise without overstating the financial figures.
If You Will Be Applying For Loans or Investors
If you will be applying for a loan or looking for investors, state clearly how
much you want, precisely how you are going to use it, and how the loan or
investment will make your coffee shop more profitable and successful,
thereby ensuring repayment.
Tip
Important Tip
Applying for Loans or Approaching Investors
If you are going to use your business plan for applying for loans
and especially if you are going to be looking for investors, make sure that
your business plan meets any requirements as it can be construed as a
Securities Offer. You consult with your attorney regarding this matter.
What Information Should Be Included in the Executive Summary?
We have provided a sample Executive Summary to help give you an idea of

the way the information can be formatted. See the sample Executive
Summary on page 19.
The following are commonly used sub-headings to cover the key points.
Avoid general statements and be sure to clearly articulate key numbers.
• The Company
14
• Mission statement
• Management
• Products & Markets
• Sales and Profit Summary
• Funding Requirement
• Investment Proposal
Regardless of how you organize your Executive Summary, be sure to answer

the following questions (note - due to the sensitive, confidential nature of
what you might say in such a document, you might want to restrict your
disclosure in certain areas and only reveal such information to others if you
are assured of confidentiality). You should address these questions, and any
others which you consider important, under headings such as those noted
above.
We have provided a sample of a simple Executive Summary to help give you

an idea of the way the information can be formatted. See the sample
Executive Summary on page 19.
Questions to Address:
1. What is the full, legal name (and jurisdiction of incorporation) of your

coffee shop (if it exists) and a brief history (when incorporated,
ownership and capital structure, track record, accomplishments to date
if any, etc)? Don't forget to include a complete address and contact
details (email address, telephone numbers, etc).
2. What is the "Mission" of your coffee shop (i.e. what is it setting out to
achieve or accomplish)?
3. What is the market which your business is going after (who, where,
size -in dollars) and what is the unique (i.e. proprietary advantage in
the form of patents, trade secrets, trademarks) or new product or
service which is being offered to this market? A comment on
competition is useful. Also, identify and current and potential
customers. Testimonials are helpful.
4. Who are the key people behind your coffee shop (i.e. why would
someone entrust them with their money?) and what are their
credentials? Include all board members and key management people.
5. What does your coffee shop expect to achieve in sales and profit
(before tax) (in $) in years 1, 2, 3 and beyond?
6. How much capital is needed (at various stages over the first 3 years)?
And what are the uses to which these funds will be applied?
7. What has already been invested (# of years sweat equity, or seed
investment amounts, i.e.#shares@$xx, and by whom)?
8. What is being offered for the investment (e.g. equity %, board seat,
etc.)
9. What kind of return might an investor expect? Over what time frame?
And what is the "exit strategy"?
10.What else is important to note? (that hasn't been covered elsewhere)
15
Executive Summary: Mistakes to Avoid
Here are several common mistakes that can make your Executive Summary
less effective:
• Lacking a specific focus

• Too long and wordy, and failing to get to the point
• Trying to be all inclusive (it should be a powerful summary)
• Failing to demonstrate a special or unique opportunity
• Failing to outline the terms of the investment sought
• Failing to generate enthusiasm in the reader
Some suggestions to combat these problems:
• Limit your Executive Summary to a maximum of 3 pages (at the very

most)
• If possible, attempt to present your Executive Summary on 1 or 2
pages
• Focus on the opportunity you are presenting your investor and explain
why it is special
• Make certain that the opinions and claims in your Executive Summary
are fully supported in the other sections of your business plan
• Attempt to use only concrete facts and figures that explain your
business concept, market niche and financial projections
• Don't forget to include the details of your investment (the amount you
need, what you will spend it on, and the return you offer your
investor)
• Keep your reader in mind - why are they reading the plan and what
response/action to you hope to generate?
Mission Statement
Many companies have a brief mission statement, usually in thirty words or

less, explaining their reason for being in business and their guiding principles.
Some are very complex.
You should carefully think through your own personal Mission Statement for
your coffee shop, also referred to as Mission and Vision Statements. You
might write down whatever comes to mind now. The good news is that you
can change, revised, and detail your Mission Statement later on, as you
should with your entire business plan over the years.
The Basics of the Mission Statement
The Mission and Vision Statements set the tone for not only your business
plan, but also for your company. They define the path your company will
follow and act as a guiding principle by which your company functions.
16
Your Mission and Vision Statements tell your reader what you and your
business are all about - what your company stands for, what you believe in,
and what you intend to achieve.
Economy of words is critical. This doesn't necessarily mean that they should
be short at the expense of effectiveness, but that each word should be
powerful and meaningful. Be clear and concise and make it obvious what
your company is attempting to do.
Is there a difference between a mission and vision statement? Yes, the

differences are:
Your VISION defines your long-term dream. It should not be achievable.

That may sound ridiculous, but the objective is for your vision to always be
just slightly out of your reach. It's what you constantly strive to attain, and
it becomes your reason for being.
Your MISSION is what you intend to become or accomplish. It should be

challenging but achievable. A well-written mission statement demonstrates
that you understand your business, have defined your unique focus, and can
articulate your objectives concisely to yourself and others.
Mission & Vision: Mistakes to Avoid
Here are some of the "don'ts" to avoid when writing your Mission Statement
or Vision Statement:
• Don't regurgitate a description of your business.

• Don't make it boring.
• Don't make it the length of a Ph.D. thesis.
• Don't fake emotion.
• If you don't believe it, don't include it.
• Don't lie or claim to be something you aren't (i.e. intend to do exactly
what you say you are going to do in your mission statement).
• Don't forget to get the input of everyone on your team.
Products and Services
This is a SUMMARY of the menu products and store services that you will
offer in your shop. The detailed products and services section is in Step 5 of
the business plan.
For now, you might have a good idea of the menu products and store
services that you will offer. Some might include the following:
Coffee Club Blends

Special Blend Full Service Menu
Buffet Specials
17
Grab and Go Menu Café Rental

Delivery Service Banquet Facilities
Smoking Facilities Business Meetings
Souvenirs Other Retail Sales
Bakery Products Cold and Hot Beverages (Other)
Describe each of the menu products and store services you will offer in your
coffee shop. Go into as much detail as necessary for the reader to get an
understanding for what the enterprise will be. Make it interesting. It is
important to point out how your coffee shop is different from other coffee
shops. Just saying "It is better" is not enough. You must tell how it is
better. Every business claims to be "high quality, better service". While a
business must have quality and good service, it is no real selling point, since
the consumer is bombarded with that claim at every turn. One can not bore
a reader into buying their proposal! One must convince them about their
product or service. If it can not be done here, it won’t be done in the market
place when your business starts.
Complete the Executive Summary
To complete the Executive Summary in Excel®, go to the Excel®

Spreadsheet to the tab labeled Step 3 – Executive Summary. Fill in the
information and save your work.
To complete the Executive Summary in Word®, go to the Word® options file

and complete the information.
When You Have Completed the Executive Summary
Now you are ready to proceed to the next step in the preparation of your
business plan, so proceed to Step Four, General Company Description.
18

Executive Summary
The Company
Perk Me Up Coffee Shop is incorporated in the state of Washington. It

is equally owned and managed by its two partners.
The company intends to hire six full-time waitresses and six part-time
workers/students to handle day to day operations.
Mission Statement
Perk Me Up Coffee Shop aims to offer beverages, coffee, and pastries

at a competitive price to meet the demand of the local market area
residents.
Management
Dustin Roberts has extensive experience in sales, coffee products, and

management. Mr. Roberts was manager of Coffee and Donuts. Lynn
Baur brings experience in the area of office management and financial
accounting. Ms. Baur was operating manager of Coffee To Go.
Products & Markets
The Company will provide the following products and services:
Coffee Club Blends

Buffet Specials
19
The Company will target the following market:
local market area residents.
Sales and Profit Summary
Perk Me Up Coffee Shop is a start-up company. Financing will come

from the partners' capital and a ten-year SBA loan. The following
chart and table illustrate the company's projected initial start-up costs.
Start-up
Funding Requirement
Perk Me Up Coffee Shop expects to raise $110,000 of its own capital

and to borrow $100,000 guaranteed by the SBA as a ten-year loan.
This provides the bulk of the current financing required.
Perk Me Up Coffee Shop anticipates sales of about $389,000 in the

first year, $443,000 in the second year, and $590,000 in the third year
of the plan. The company should break even by the fourth month of
its operation as it steadily increases its sales. Profits for this time
period are expected to be approximately $33,000 in year 1, $56,000
by year 2, and $76,000 by year 3. The company does not anticipate
any cash flow problems.
20
Investment Proposal
The company is currently seeking total capital in the amount of

$110,000 to be repaid as follows:
Interest only for five (5) years at a negotiated rate (APR).

Principal payments of $10,000 per year plus interest payable as
negotiated, but quarterly payments are preferred.
Stock, equity or ownership is available as negotiated.
21
Step Four
General Company Description
The General Company Description is made up of the following:
Company Goals and Objectives on page 23

Business Philosophy on page 23
Legal Form of Ownership on page 24
Company Description: Business Plan Basics
The Company Description section of your business plan should outline your
company’s basic background information and business concept. Explain in
general terms who you are and what you do. It should also cover the history
of your company, how you reached this point, and where you intend to go in
the future. Consider covering the following in your company description
section:
Legal Description
Include details about where and when the company was formed, where and
when it was incorporated, a one line description of what business you are in,
and a brief overview of what your shop offers. If the location of your shop is
important, explain the advantages and benefits to your reader.
History of the Company

Provide a general overview of the history of your company. Organize details
of your company into a timeline or narrative format, and include your
achievements and significant milestones. Explain why you started the shop,
the driving force behind its inception, and how your company’s
product/service mix has changed over time. Include historical data on sales,
profits, individual menu products and store services, number of employees,
and other important facts to build a case for your company.
Current Status
Provide a snapshot of where your company is today. Are you in one location,
what do you offer to your customers now, how many employees do you
have, and how successful are you? Point out your current strengths, but also
honestly and frankly address your weaknesses. Investors know all
businesses have weak points. You demonstrate business maturity by
acknowledging your weaknesses and outlining steps to combat them.
Future Goals
This section gives your reader an idea of where your company is heading.
What are looking to accomplish over the next 1, 3, 5 and 10 years? Relate
these goals to the investment you seek so an investor understands why you
need their money and what you intend to do with it. Explain the overall
approach for reaching growth and profit goals in optimistic language, but
22
make sure it's realistic. It's easy to make rosy projections about the future
of your coffee shop, but it's harder to make them believable.
Company Description: Mistakes to Avoid
The company description should clearly explain your shop and the products
and services you offer. This section could be considered the who, what, why,
where, when and how of your company, with the focus on significant
highlights of your business. Here are some of the most common mistakes
that we find in the company section:
• Including far too much detailed information about your business
• Providing information that an investor would consider your "personal
opinion"
• Appearing as though you have no business history or business purpose
• Leaving out important business and legal particulars
• Writing the section in an unorganized or confusing manner
Company Goals and Objectives for Your Coffee Shop
Your goals and objectives for your shop are destinations; where you want
your shop now and in the future. Objectives are progress markers along the
way to measure goal achievement. For example, a goal might be to have a
healthy, successful shop that is a leader in freshly brewed import JavaBest
brand coffee availability and world famous Southern Style® pecan pie.
Objectives might be annual sales targets and some specific measures of
customer satisfaction.
Tip
Important Tip
Goals & Objectives
This particular area of the business plan may be difficult to completely fill out
at this time. You might need additional financial data to reasonable
determine your goals and objectives. Nevertheless, you should make some
notes in on the page and then proceed.
Business Philosophy
This is a description of what is important to you in your business as the owner

and operator of a coffee shop. You will need to address, in some detail, the
following:
1) To whom will you market your products and services.

2) Describe who your target market is.
3) Describe the coffee industry with some emphasis on the following
items:
4) Is the shop in a growth industry?
23
5) What changes do you foresee in your industry, short term and long
term?
6) How will your company be poised to take advantage of the changes
mentioned above?
7) Your most important company strengths and core competencies.
8) What factors will make your shop succeed?
9) What do you think your major competitive strengths will be?
10) What background experience, skills, and strengths do you
personally bring to this new venture?
Legal Form of Ownership
Describe what legal form of ownership you have decided to form for your
coffee shop; Sole Proprietor, Partnership, Corporation, Limited Liability
Corporation (LLC) and describe why you have selected this form.
Tip
Important Tip
Legal Form
If you haven’t determined the legal form of ownership, you certainly need to
discuss with your attorney and/or accountant. We will provide you some
information here about this, but in no way is this information to be assumed
to be legal advice. Only your professional legal and accounting team can
correctly advice you what you should do in this regard as to the legal form of
ownership of your coffee shop.
For a general discussion on the legal forms of business ownership, please see
Attachment One – A General Discussion on page 84.
We have provided a sample General Company Description to help give you

an idea of the way the information can be formatted. See the sample
General Company Description on page 25.
Complete the General Company Description Section
To complete the General Company Description in Excel®, go to the Excel®

Spreadsheet to the tab labeled Step 4 – Gen Co Description. Fill in the
To complete the General Company Description in Word®, go to the Word®

options file and complete the information.
When You Have Completed the Company Goals And Objectives
business plan, so proceed to Step Five, Products and Services on page 26.
24

General Company Description
Company Goals and Objectives
The initial goal of the Company will be to gain enough customers in the
first six (6) months of operation to reach a break even point between
expenses and revenue.
In the following twelve months of operation, the Company will strive to

increase the total base increase of new customers by 10% per quarter.
Thereafter, the Company will strive for a total base increase of new
customers by 5% per quarter.
Business Philosophy
The Company will provide top quality menu products and store
services to a market consisting of local market area residents. The
coffee industry is a staple growth industry, as rated by Standard &
Poor’s when reporting on the condition of the industry as of December
2007. With an increase in expected population growth, the expected
marketplace will increase 30% over the next three (3) years in the
state of Washington. By gaining a foothold in the next six (6) months
with the Company’s new customer base, the Company will be firmly
situated to take advantage of increases in the marketplace.
The experience and past success of the main participates in the

Company will enhance the success potential of Perk Me Up Coffee
Shop.
Legal Form of Ownership
Perk Me Up Coffee Shop is a corporation form in the state of

Washington in September 2007. All corporate documentation is
available for inspection upon request.
25
Step Five
Products and Services Description
The Products and Services Description section of your business plan will
describe in detail the products and services you will provide in the course of
your operating your coffee shop.
We have provided an illustrative Products and Services Description to help

give you an idea of the way the information can be formatted. See the
Products and Services Description on page 29.
How to Describe In Depth Your Products and Services
Here, you will describe in depth your menu products and store services.
Here is a general list of potential products and services, but you will need to
elaborate and breakdown the pricing for each products and services.
Coffee Club Blends

Buffet Specials
Competitive Advantages or Disadvantages
You will need to list what factors will give you competitive advantages or
disadvantages. For example, the level of quality or unique or proprietary
features you will offer in your coffee shop.
Pricing Structures
You will need to list what the pricing structures are for the menu products and
store services.
If you have any drawings, photos, sales brochures, etc, these can be shown in
your first Appendix. We have provided an example Appendix One on page 30.
26
Tip
Important Tip
Appendixes
The Appendixes will be at the back of your business plan, so

keep this in mind when saving your files.
Products and Services Description: Business Plan Basics
The products and services section is one of the most important parts of your
business plan. It's your chance to clearly explain your menu products and
store services, identify their features and benefits, and discuss what needs or
problems they address in the market.
Product Overview
In explaining each of the products you will offer, your reader will want to
know what it is, what it does, and its features and benefits. Consider
including pictures if they would help your reader get a better understanding
of your product.
Service Overview
In explaining each of the services you will offer, your reader will want to
know what it is, what it does, and its features and benefits. Consider
including pictures if they would help your reader get a better understanding
of your service. Write this section with enough information to satisfy an
outsider's need to understand your service without boring them with trivial
details.
Products and Services Description: Mistakes to Avoid
The following are the some of the most common mistakes we find in the
products and services description section:
• Failing to identify the benefits of the menu products and store services
(focusing instead on the features)
• Describing the products and services in language that is too technical,
with too many industry specific words or phrases
• Omitting the specific problem the products and services addresses and
how that problem is solved
• Assuming an improved products and services will "sell itself"
• Describing the products and services in terms that are too broad
• Failing to include a third-party evaluation or analysis of your menu
products and store services
• Underestimating the importance of legally protecting your products
and services
27
Complete the Products and Services Description Section
To complete the Products and Services Description in Excel®, go to the

Excel® Spreadsheet to the tab labeled Step 5 – Prod and Servs. Fill in the
To complete the Products and Services Description in Word®, go to the

Word® options file and complete the information.
Tip
Important Tip
Appendixes
If you use Appendixes, be sure to number them in the actual

order that you use them.
When You Have Completed the Products and Services Description

Section
business plan, so proceed to Step Six, Start Up Costs and Capitalization on
page 31.
28

Products and Services Description
(As described in the instructions, you will need to elaborate on your

products and services. You can start with this list.)
Coffee Club Blends

Buffet Specials
29
Appendix One
Products and Services Attachments
30
Step Six
Start-Up Costs and Capitalization
You will have many expenses before you even begin operating your coffee
shop. It is important to estimate these expenses accurately and then plan
where you will get sufficient capital. This is a research project. The more
thorough your research, the less chance you will leave out important expenses
or underestimate them.
Qualified and Non-Qualified Start-Up Costs
Qualified Start-Up Costs
Start-up costs include costs for the following:
Surveys of potential markets.

Analyses of available facilities, labor, supplies, etc.
Advertisements for the opening.
Salaries and wages for employees who are being trained, and their
instructors.
Travel and other necessary costs for securing prospective distributors,
suppliers, or customers.
Salaries and fees for executives and consultants, or for similar
professional services.
Non-Qualified Start-Up Costs
Start-up costs do not include the following.
Deductible interest.
Taxes.
Research and experimental costs.
Budget Allowances
Even with the best of research, however, opening a coffee shop has a way of
costing more than you anticipate. There are two ways to make allowances
for surprise expenses. The first is to add a little “padding” to each item in
the budget. The problem with that approach, however, is that it destroys the
accuracy of your carefully thought out plan. The second approach is to add a
separate line item, which we call contingencies, to account for the
unforeseeable. This is the approach we recommend, and you will see a
“Contingencies” line in our spreadsheet.
31
Tip
Important Tip
Contingencies
You should talk to other individuals who have started similar coffee shops to
get a good idea of how much to allow for contingencies. If you cannot get
good information, we recommend a rule of thumb that contingencies should
equal at least 20% of the total of all other startup expenses.
Evaluating Start-Up Costs
When starting a new coffee shop, moving to a new location, opening a new
branch or expanding your shop, there will be start-up or one-time expenses.
Know what these expenses will be by filling in the amounts of dollars
required for each of the items listed below.
Item Dollar Cost

Real Estate, furniture, fixtures,
machinery, equipment:
a) Purchase price - if paid in $
full with cash ______________
b) Cash down payment - if $
purchased on contract ______________
c) Transportation &$
installation costs ______________
$
Starting Inventory
______________
Decorating, refurbishment, &$
remodeling costs ______________
Deposits Required:
$
a) Utilities
______________
$
b) Rent
______________
c) Other (identify) $
______________
Fees Required:
$
a) Legal, accounting, others
______________
b) Licenses, permits, etc. $
______________
$
c) Other (identify)
______________
32
Initial Advertising & Marketing Costs $

(i.e., flyers, sales letters and calls, ______________
signs, brochures, etc.)
Accounts Receivable (_____ days of $
sales) ______________
Salaries and owners draw until
$
business enterprise opens or until
______________
cash flow is positive
Other miscellaneous expenses:
Merchant Association fees, $
equipment rental, office ______________
supplies, cleaning service,
other supplies, signs, etc.
$
Payments on other fixed obligations
______________
Total Start-Up Costs $

______________
Start-Up To Do List
_____ 1. Know what type of business you would like to start and learn al
you can about it.
_____ 2. Appraise your business strengths and weaknesses.
Be strict and objective.
_____ 3. Conduct thorough research of potential customers,
your industry, your competition, your licensing and
tax requirements, location, and name.
_____ 4. Determine type of business organization
(i.e. Proprietorship, Partnership, or Corporation)
_____ 5. Evaluate possible shop locations. Check physical condition
suitability, traffic flow, parking, utility requirements, and
cost.
_____ 6. Prepare a comprehensive business plan – include
your action timetable.
_____ 7. Decide on your business hours.
_____ 8. Secure necessary capital. (Bank loan, budget to
save, borrow on insurance, etc.)
_____ 9. Obtain needed facilities, equipment, furnishings,
signage, supplies, stock.
_____ 10. Recruit personnel. Establish job descriptions and a
training program.
33
_____ 11. Print business cards, stationery, invoice or

statement forms.
_____ 12. Register name of business (your assumed name)
and/or file articles of incorporation with the
Secretary of State. Publish notice in newspaper.
_____ 13. Secure any necessary permits, licenses, or
zoning variations. Check with both local and state
licensing agencies.
_____ 14. Register your business with the state and obtain a
Sales & Use Tax Permit (if applicable).
_____ 15. Register for Federal tax number (Form SS-4) and
obtain employee tax and withholding information from
the IRS.
_____ 16. Establish bank account (separate from personal account). Shop
for the bank and services that best suit your needs.
_____ 17. If you intend to hire employees in your business,
phone your Department of Economic Security or
Workforce Commission.
_____ 18. Phone the IRS for a free "Small Business Tax Kit" at
1-800-829-3676. For information about free Tax
Education Workshops, call 1-800-829-1040 or check
out the IRS website (http://www.irs.gov/) for this information.
_____ 19. Issue news releases. Publicize your new coffee shop.
Start-Up Narrative
We have provided a sample Start-Up Narrative to help give you an idea of the
way the information can be formatted. See the sample Start-Up Narrative on
page 37.
To complete the Start-Up Narrative in Excel®, go to the Excel® Spreadsheet

to the tab labeled Step 6 - Startup Costs Narrative. Fill in the information
and save your work.
To complete the Start-Up Narrative in Word®, go to the Word® options file

Explain your research and how you arrived at your forecasts of expenses.
Give sources, amounts, and terms of proposed loans. Also explain in detail
how much will be contributed by each investor and what percent ownership
each will have.
34
Instructions on How to Complete this Section in the Excel®

Spreadsheet
In the Excel® spreadsheet, you will either enter the dollar amount that you
know will reflect the projected cost of the item to the left or use the best
estimate approach we told you about earlier.
In Column C, these dollar amounts will reflect the actual start up costs while
the dollar amounts in Column G will reflect a gross amount spent over a 3
month period. This is considered your Start-Up Period.
Start-Up Costs (to be completed in Excel®)

C G
Start-up Operating
Costs Costs
(Pre-Revenue (3-Months
Cash assuming no
Requirements) revenue)
Audit / Accounting Fees $0 $0
Bus Dev. - Travel $0 $0
Bus. Dev. - Entertainment $0 $0
Bus. Dev. - Meals $0 $0
Capital Acquisitions $0 $0
Charitable Contributions $0 $0
Commissions $0 $0
Conferences & Seminars $0 $0
Consulting Fees $0 $0
Contingencies $0 $0
Employee Benefits $0 $0
Entertainment $0 $0
Equipment Lease $0 $0
Facilities - Insurance $0 $0
Facilities - Phone $0 $0
Facilities - Property Taxes $0 $0
Facilities - Rent $0 $0
Facilities - Security $0 $0
Facilities - Utilities $0 $0
Facility - Other $0 $0
Financial Charges $0 $0
Furniture $0 $0
Insurance $0 $0
Inventory Purchases $0 $0
IT Consulting $0 $0
Legal Fees $0 $0
35
Loan Interest $0 $0
Loan Capital $0 $0
Miscellaneous $0 $0
Office Supplies $0 $0
Payroll - Administrative Staff $0 $0
Payroll - Sales / Marketing $0 $0
Payroll - Owner / Directors $0 $0
Payroll Taxes $0 $0
Postal / Shipping $0 $0
PR / Advertising $0 $0
Repairs & Maintenance $0 $0
Research and Development $0 $0
Storage $0 $0
Subscriptions & Dues $0 $0
Taxes & Licenses $0 $0
Telecommunications $0 $0
Vehicle Expenses $0 $0
Total Start-Up Costs $0 $0
The total amount in Column G represents the total Start-Up Cost for start-up
period.
Complete the Start-Up Costs Section in the Excel® Spreadsheet
Go to the Excel® Spreadsheet to the tab labeled Step 6 – Start Up Costs.

Fill in the information and save your work.
When You Have Completed the Start-Up Costs and Capitalization

Section
business plan, so proceed to Step Seven, The Marketing Plan on page 41.
36

An Explanation of the Facts, Assumptions, and Information

Pertaining to the Start-Up Costs Section
The Company estimates that the total Monthly Start-Up Costs to be

$192,960. Therefore, the total Start-Up Costs for the Start-Up Period
will be $578,880.
The Company will use Larry Belcher, CPA for all accounting needs and
functions. The anticipated Audit/Accounting Fees for the Start-Up
Period will be $1,000.
The Company estimates the Business Development expenses to be

$2,000. Of this amount, $1,500 is for Travel, $400 for Entertainment
and $100 for Meals.
The Company does not anticipate any Capital Acquisitions during the
Start-Up Period.
The Company will not make any Charitable Contributions during the
Start-Up Period, but will consider such expenses based on profitability.
The Company estimates that Commissions will be $3,000 per month

and will be funded directly from revenue.
The Company plans to attend one Conferences or Seminars. The cost

has already been included in the Business Development section.
The Company estimates that Consulting Fees will be paid in the

amount of $1,000 for training related to safety issues and food
delivery/handling techniques.
The Company estimates Contingencies to be $32,160 which is 20% of

the total Start-Up Costs estimates.
37
The Company plans to offer Employee Benefits after the first year of
operation, so no allocations have been made for employee benefits for
the Start-Up Period.
The Company plans to lease certain office equipment and may lease
coffee shop equipment and fixtures. The Company estimates that the
Equipment Lease amount will be $2,000.
The Company estimates Facility expenses for the shop as follows:

Facilities – Insurance, $1,000
Facilities – Phone, $500
Facilities - Property Taxes, $1,500
Facilities – Rent, $1,300
Facilities – Security, $75
Facilities – Utilities, $300
Facility – Other, $200
The Company estimates Financial Charges will be $200 and will result
from credit card finance charges.
The Company estimates Furniture expense to be $2,000, which will be

primarily office furniture purchases.
The Company estimates Insurance expenses will be $700. This

insurance will be a policy purchased to cover general liability,
employee dishonesty, dining area furniture, fixtures, kitchen
appliances and equipment, and premise from damage.
The Company estimates Inventory Purchases will total $130,000. The

inventory will consist of food items, dining room furniture, initial
kitchen appliances and equipment, and other related products and
support items.
The Company estimates that there will be IT Consulting expenses in

the amount of $1,000. The Company plans to explore the use of
staffing resources for kitchen help, wait staff, and building
maintenance.
The Company also plans to study, design, development, implement,

support or manage computer-based information systems, particularly
software applications and computer hardware by using computers and
computer software to convert, store, protect, process, transmit, and
securely retrieve information.
38
The Company estimates that Legal Fees will be incurred in the amount
of $2,000. These costs represent incorporation and filing fees.
The Company has not included Loan Interest which might result from
the Investment Needed Proposal. The Company will revise the Start-
Up Costs for the loan interest costs when the negotiated investment
proposal is completed.
The Company estimates Miscellaneous and unforeseen costs might be

$1,000.
The Company estimates Office Supplies to be $200.
The Company estimates Payroll expenses to be:

Payroll - Administrative Staff, $2,000
Payroll - Sales / Marketing, $3,000
Payroll - Owner / Directors, $500
Payroll Taxes, $1,500
The Company estimates Postal / Shipping costs to be $200. These

costs will result from a Direct Mail program.
The Company estimates PR / Advertising to be $1,000. These costs

will result from print and media advertising.
The Company estimates Repairs & Maintenance budget to be $500.
The Company estimates Research and Development to be $1,000.

This cost can result due to menu product research, Consumer Report
comparisons of cold storage equipment, and traffic studies.
The Company estimates Storage costs to be $100. This cost will result
from storing excess inventory, extra dining room furniture, spare
equipment and parts.
The Company estimates Subscriptions & Dues costs to be $25. This

cost will be for subscriptions.
The Company estimates Taxes & Licenses costs to be $300. This cost
will result from municipal business license, occupancy license, and
police, building and sellers permits. Also for regulations that might
include health regulations and requirements, fire safety standards or
regulations, retail sales tax, and/or zoning by-laws.
39
The Company estimates Telecommunications expenses will be $300.

These costs include land lines and mobile (wireless) expenses.
The Company estimates Vehicle Expenses to be $400. This cost

includes insurance and possible lease fees.
40
Step Seven
The Marketing Plan
Marketing & Sales: Business Plan Basics
Every good marketing plan should include two major parts - a definition of
your target market and a specific outline to market, promote and sell your
menu products and store services.
Target Market
It's critical to clearly define your target market in your business plan -
investors expect it. Tell your business plan reader about your customers and
describe their defining characteristics in detail. Include information such as
age, gender, geographic location, income bracket, buying similarities, and
more.
The goal of this section is to build a demographic profile of your typical coffee
shop customer. The more clearly you pinpoint the defining traits of your
customer, the easier it is to construct a marketing program to reach them
effectively.
The information and research included in your target market section should
originate from primary and secondary sources. Primary sources includes
information that you discover or conclude from personal observation and
research, such as personal studies, results of questionnaires, site visits, and
conversations with experts in your coffee industry. Secondary sources
include such sources as journals, books, published reports, government
statistics, or internet findings.
Marketing Program
After you define your target market, you need to determine specifically how
you will reach them. Outline the details and steps necessary to reach
potential customers and convert them from prospects to paying customers.
Tip
Important Tip
Market Avenues and Procedures
It is important to demonstrate to investors that you have identified specific

marketing avenues and procedures to effectively sell your products and
services.
Answer questions such as the following in your marketing program section:

• What specific marketing mediums will you use to reach your customer?
41
• How often will each be used? What will they cost? Why did you
choose these marketing avenues over others?
• What marketing materials will you need? (brochures, website, etc)
• Who will design your marketing materials? What will they cost?
• What is the cost of marketing materials per customer? (You may
choose to include marketing pieces in the appendix of your business
plan)
• Will your shop be able to attract PR? Why will they run your story?
What's the "angle"? Which publications and mediums will you target?
Marketing & Sales: Mistakes to Avoid
Here are some of the most common mistakes found in the marketing and
sales section:
• Defining your target market too widely and assuming success will
result from simply capturing a "small portion" of this enormous
market.
• Unclear definition of your target market.
• Attempting to attack an entire market instead of a narrow niche.
• Making assumptions about your target market without research or
concrete support.
• Not specifically identifying the mediums you will use to advertise and
promote your products and services.
• Omitting details such as when, where, why and how you will reach
your target customer - along with costs.
• Making the assumption that offering a lower price will lead to
increased sales.
• Underestimating the importance of packaging, brand name, and
reputation.
• Attempting to immediately fill several lucrative but unrelated markets.
• Lacking clarity about how future changes might affect your market.
We have provided an illustrative Marketing Plan to help give you an idea of

the way the information can be formatted. See the Marketing Plan on page
51.
The Marketing Plan consists of six (6) primary sections and five (5) sub-
sections under Marketing Strategy. Those sections are:
Economics on page 45
Product on page 46
Customers on page
Competition on page 47
Niche on page 48
Marketing Strategy on page 48
Promotion on page 48
Promotional Budget on page 48
Pricing on page 49
42
Proposed Location on page 49
You will gather the information necessary for these sections to fit your exact
demographical area. This is not something that can be a “One Size Fits All”
scheme. Someone starting a coffee shop in Chicago, IL will have different
statistics than someone starting a coffee shop in Charlotte, NC. The only
way to gather this information is by conducting market research for your
specific demographical area.
Target Market: Business Plan Basics
The target market section of your business plan must clearly identify the
current and prospective buyers of your menu products and store services.
Your goal in preparing the target market section is to demonstrate to readers
that you clearly understand who your customers are and how your products
and services directly meet the needs of the marketplace. Properly identifying
your potential customer base also helps to drive overall marketing and sales
strategies that you will include within other sections of your business plan.
Although your product or service may meet the needs of a large constituency
of potential customers, the goal is to define your customer base as
specifically as possible, both quantitatively and qualitatively. Consider the
follow types of characteristics for inclusion in the target market section of
your business plan:
Size
How large is your target market? Are there 1,000 business customers? 10
million potential customers ready to purchase your product or service? Or a
small handful of very large target customers?
Demographics
The demographic traits of your customers often vary based on whether you
are focused on serving the consumer or business markets:
• Consumer - Income, Occupation, Gender, Single/Married, Ethnic
Group, Education
• Business - Industry, Product/Service, Years in Business, Revenue,
Employee Size, Private/Public
Geographic
Where are your customers located? While technology has made location less
of an issue for many companies, it doesn’t mean you should overlook the
importance of defining the geographic location of your coffee shop
customers. Clarifying these issues also helps to ensure that your marketing
and sales strategies/budgets properly match your goals to capture market
share.
43
Other Characteristics
What are some of the more subjective traits that define your customers?
This might include things such as current buying motivations, perceived
shortcomings of other solutions in the market, and trends/purchasing shifts
likely to occur within your target market.
Naturally, the more you understand your customers, the better your chances
of success. Many times the best approach to answer the target market
question: Who is our customer? Invest time and resources in primary
market research. Conduct simple surveys or focus groups. If feasible, work
with a reputable market research firm to guide you through the process.
At the very least, use the Internet and industry groups to locate market
research studies and statistics for your business plan. These resources can
range from free information available on websites to expensive professional
market research studies prepared by experts in the field.
Performing primary research enables you to gather and document the

quantitative and qualitative information needed to prepare a solid target
market section for your business plan.
Target Market: Mistakes to Avoid
Here are some of the "don'ts" to avoid when writing the Target Market
section of your business plan:
• Don't assume that everyone is a buyer of your products and services.
• Don't be unclear about the characteristics that define who your target
customers are.
• Don't assume you must have a "huge" target market - a well-defined
target market that your coffee shop can serve is far better.
• Don't jump to conclusions about why your target market needs you -
instead explain how you meet their needs.
• Don't underestimate the value of focus - sell a specific product or
service to a specific group.
• Don't try to attack too many markets at once - particularly if you are a
startup or early-stage coffee shop.
Market Research Basics
Market Research - Why?
No matter how good your product or service, your coffee shop cannot succeed
without effective marketing. This begins with careful and systematic research.
It is very dangerous to simply assume that you already know about your
intended market. You need to do market research to make sure that you are
on correct track. Use the business planning process as your opportunity to
uncover data and question your marketing efforts. Your time will be well
spent.
44
Market Research - How?
There are 2 kinds of market research: primary and secondary.
Primary market research means gathering your own data. For example,
you could do your own traffic count at a proposed shop location, use the
yellow pages to identify competitors, and do surveys or focus group interviews
to learn about consumer preferences. Professional market research can be
very costly, but there are many books out that show business owners how to
do effective research by themselves.
Tip
Important Tip
Be Specific
In your marketing plan, be as specific as possible; give statistics & numbers

and sources. Later on, the Marketing Plan will be the basis of the all-
important sales projection.
Secondary research means using published information such as industry

profiles, trade journals, newspapers, magazines, census data, and
demographic profiles. This type of information is available in public libraries,
industry associations, Chambers of Commerce, vendors who sell to the coffee
industry, government agencies (Commerce Dept. and state and local
development agencies), and the SBA Business Information Centers.
Start with your local library. Most librarians are pleased to guide you through
their business data collection. A good way to start is at the SBA site,
http://www.sba.gov/; click the Outside Resources button for a great collection
of resource links. Your Chamber of Commerce has good information on the
local area. Trade associations and publications often have excellent industry
specific data.
The Economics of the Industry
You will need to gather information from your market research that will be
able to address these questions and provide facts about your coffee industry:
What is the total size of your coffee shop target market?
What percent share of the market will you have? (This is important only if you
think you will be a major factor in the market.)
Current demand in your target market.
Trends in target market - growth trends, trends in consumer preferences, and

trends in product development.
45
Growth potential and opportunity for a coffee shop of your size.
What barriers to entry do you face in entering this market with your coffee
shop? Some typical barriers are:
High capital costs

High production (food prep) costs
High marketing costs
Consumer acceptance/brand recognition
Training/skills
And of course, how will you overcome the barriers?
You will also need to address how could the following affect your business?
Change in technology.
Government regulations.
Changing economy.
Change in the coffee shop industry.
Back to Market Plan Sections on page 42
Product
In the Step Five, Products and Services section, you described your menu
products and store services as YOU see them. Now describe them from your
CUSTOMER'S point of view.
Features and Benefits
List all your major menu products and store services.
For each product or service that you provide in your coffee shop:
Describe the most important features. That is, what will the product
or service do for the customer? What is special about it?
Now, for each menu product and store service, describe its benefits.
That is, what will the product or service do for the customer?
Note the difference between features and benefits, and think about them. You
build features into your product or service so you can sell the benefits.
46
Customers
Identify your targeted customers, their characteristics, and their geographic

locations; i.e., demographics.
You may well have more than one customer group. Identify the most
important groups. Then, for each customer group, construct what is called a
demographic profile:
Customer Profile
Age
Gender
Location
Income level
Social class/occupation
Education
Group Profile
Industry (or portion of an industry)
Location
Size of shop
Quality/technology/price preferences
Competition
What products and services and other coffee shops will compete with you and
your coffee shop?
List your major competitors:
Names & addresses
Will they compete with you in across the board, or just for certain products
and services, certain customers, or in certain locations?
Will you have important indirect competitors?
How will your menu products and store services compare with the
competition?
47
Niche Market
Now that you have systematically analyzed your industry, your product or
service, your customers and the competition, you should have a clear picture
or where your coffee shop fits into the marketplace.
In one short paragraph, define your niche market; your unique corner of the
market.
Marketing Strategy
Now you can outline a marketing strategy for your coffee shop that is
consistent with your niche.
Promotion
How will you get the word out to customers?
Advertising: what media, why, and how often? Why this mix and not some
other?
Have you identified low cost methods to get the most out of your promotional
budget?
Will you use methods other than paid advertising, such as incentives, word of
mouth (how will you stimulate it?), network of friends or professionals?
What image do you want to project? How do you want customers to see you?
In addition to advertising, what plans do you have for graphic image support?
This includes things like logo design, cards and letterhead, brochures,
signage, and interior design.
Should you have a system to identify repeat customers, and then

systematically contact them?
Promotional Budget
How much will you spend on the items listed above?
48
Before startup? (These numbers will go into your Startup budget.)

Ongoing? (These numbers will go into your Operating Plan budget, which we
will discuss later.)
Pricing
Explain your method(s) of setting prices. For most coffee shops, having the
lowest price is not a good policy. It robs you of needed profit margin;
customers may not care as much about price as you think; and large
competitors can under price you anyway. Usually, you will do better to have
average prices and compete on quality and service in your coffee shop.
Does your pricing strategy fit with what was revealed in your competitive
analysis?
Compare your prices with those of the competition. Are they higher, lower,
the same? Why?
How important is price as a competitive factor? Do your intended customers

really make their decisions mostly on price?
What will be your customer service policies?
Proposed Location
Probably you do not have a precise location picked out yet. This is the time to
think about what you want and need in a location.
You will describe your physical needs later, in the Operational Plan section of
your business plan. Here in the marketing section, analyze your location
criteria as they will affect your customers.
Is your location important to your customers? If yes, how so?
When customers come to your place of business:

Is it convenient? Parking? Interior spaces? Not out of the way?
Is it consistent with your image?
Is it what customers want and expect?
Where is the competition located? Is it better for you to be near them or
distant?
49
Complete the Marketing Plan Section in the Excel® Spreadsheet
To complete the Marketing Plan in Excel®, go to the Excel® Spreadsheet to

the tab labeled Step 7 – Marketing Plan. Fill in the information and save your
work.
To complete the Marketing Plan in Word®, go to the Word® options file and
complete the information.
When You Have Completed the Marketing Plan
business plan, so proceed to Step Eight, Sales Forecasts on page 54.
50

Marketing Plan
Economics
Address these items:

9 Size of the target market
9 Percentage of the market you will have
9 Current demand in your market
9 Trends in the market
9 Growth potential and opportunity for the market
9 Barriers
9 How you will overcome the barriers
9 How will changes in technology affect the business
9 How will changes in government regulations affect the business
9 How will changes in the economy affect the business
9 How will changes in the industry affect the business
Product
For the Product section:

9 Describe your menu products and store services from your
customer’s point of view
9 List all of your major menu products and store services
9 For each product or service that you provide in your coffee shop:
o Describe the most important features. That is, what will the
product or service do for the customer? What is special
about it?
o Now, for each menu product and store service, describe its
benefits. That is, what will the product or service do for the
customer?
51
Customers
Provide the demographic profile of your customers:
Customer Profile
Age
Gender
Location
Income level
Social class/occupation
Education
Group Profile
Industry (or portion of an industry)
Location
Size of shop
Quality/technology/price preferences
Competition
Here, you will describe the following:

9 What related product or service or combination of products and
services will compete with you and your coffee shop
9 What other coffee shops will compete with your coffee shop
9 Make a list of your major competitors with names and addresses
9 Describe if these major competitors will compete with you across
the board, or just for certain products and services, certain
customers, or in certain locations
9 Will you have important indirect competitors
9 How will your menu products and store services compare with the
competition
Niche
In one short paragraph, define your niche market
Marketing Strategy
Your broad based Marketing Strategy could be:
Perk Me Up Coffee Shop will succeed by offering customers beverages,

coffee, and pastries with personal service at a competitive price.
52
Promotion
How will you get the word out to customers
What advertising media will be used and how often
Why this mix of advertising media
Methods to get the most out of your promotional
budget
Will you use methods other than paid advertising,
such as incentives, word of mouth (how will you
stimulate it?), network of friends or professionals?
What image do you want to project
What plans do you have for graphic image support?
This includes things like logo design, cards and
letterhead, brochures, signage, and interior design
Do you have a system to identify repeat customers
Promotional Budget
How much will you spend on promotions
Before Start-Up
On an ongoing basis
Pricing
Explain your method(s) of setting prices
Does your pricing strategy fit with what was revealed
in your competitive analysis
How does your prices compare with the competition;
higher, lower, the same
Why
How important is price as a competitive factor
What will be your customer service policies
Proposed Location
Answer these questions:

Is your location important to your customers? If yes, how so?
When customers come to your place of business:
Is it convenient? Parking? Interior spaces? Not out of the way?
Is it consistent with your image?
Is it what customers want and expect?
Where is the competition located? Is it better for you to be near them
or distant?
53
Step Eight
Sales Forecast
Too many would be entrepreneurs want success so bad, they refuse to listen
or consider the possibility of failure. Somehow, they confuse caution and
reasonable doubt with negative thinking. They are blinded by fantasy and
unrealistic dreams that they believe real.
If you have ample historical sales data, reasonable forecasts are easy; even
calculating the figures with intuition and knowledge of the coffee market can
result in a creditable projection. The problem is new products or companies
with no sales history are difficult to predict. As accurate as the numbers may
appear, it is still a guess. In addition, guesses are based on judgment-good
and bad.
A sales forecast is just that, a forecast; an educated guess with a possibility

of error. Every business, every new product or project has a break-even
point; a minimum sales volume necessary to generate enough income to
cover your expense. If the forecast is above your break-even, then you have
a margin of safety. If not, you may be headed for trouble with no room for
error. Be sure to compare the sales forecast to that all-important break-
even sales or income level. It will give you a yardstick of risk.
You may be comfortable with statistics or any of the number of methods for
sales forecasting, but be uncomfortable with sales guesses that are too
optimistic. If you want to avoid heartache and money worries, always
question sales projections and never assume they are accurate.
Financial Projections: Business Plan Basics
Your financial plan will be highly scrutinized by your business plan reader. All
the ideas, concepts and strategies discussed throughout your entire business
plan form the basis for, and should flow into, your financial statements and
projections in some manner. When it gets down to it, your reader wants to
know if and when your coffee shop will make money and become profitable.
Financial statements and projections should follow Generally Accepted

Accounting Standards and must (at a minimum) include properly prepared
balance sheets, income statements and cash flow statements. Bankers and
investors are familiar with the correct content, organization and presentation
of financial statements, and expect to see them in your business plan. Don't
cut corners or attempt to devise your own method of financial and pro forma
statement presentation.
54
Sales Forecast for Your Coffee Shop
Spreadsheet Note
Important Note Regarding Data Entered Into
Spreadsheet
In this section, you will be entering information about the Sales Forecast for
individual products and services. These sales forecasts are then auto filled to
Step 11, Profit-Loss Statement and Projected Cash Flow. If you add more
products and services than is provided for in the template, you will need to
adjust the cell formulas in the totals for each column on Row 5.
Print Note
Important Note Regarding Printing this Section of the
Spreadsheet
The Projected Cash Flow is formatted to print each month on one (1) sheet of
paper. If you add items in the Revenue and/or Payments section, you might
extend a portion of the spreadsheet to the next page. In this case, you will
need to format the page to correctly print each month properly.
Now that you have described your menu products and store services,
customers, markets, and marketing plans in detail, it is time to attach some
numbers to your plan. Use the Sales Forecast spreadsheet to prepare a
month-by-month projection for your coffee shop. The forecast should be
based upon your historical sales (if any), the marketing strategies that you
have just described, upon your market research, and industry data, if
available.
You may wish to do two forecasts: 1) a "best guess", which is what you really
expect, and 2) a "worst case" low estimate that you are confident you can
reach no matter what happens.
The Excel Spreadsheet
For this section, please refer to the Page 8 of the Excel® spreadsheet entitled
“Sales Forecast”. This is the Twelve-Month Sales Forecast Spreadsheet.
Instructions on How to Complete the Excel Spreadsheets
Remember to keep notes on your research and your assumptions as you build
this sales forecast, and all subsequent spreadsheets in the plan. This is
critical if you are going to present it to funding sources.
In Column A, you will list the products and services that you will offer in your
coffee shop. Here you will enter each and every products and services that
you identified in Step 5, Products and Services.
55
Input your dollar figures for each product or service into the correct columns.
As you will note, Row 3 will total the revenue (sales) from all of the products
and services.
In the beginning, you want to categorize your products and services rather
than list each one separately. You will also need to provide a narrative with
information about each category.
Complete the Sales Forecast Section in the Excel® Spreadsheet
Go to the Excel® Spreadsheet to the tab labeled Step 8 – Sales Forecast. Fill
in the information and save your work.
When you are finished, you have completed an annual sales forecast.
When You Have Completed the Sales Forecast
business plan, so proceed to Step Nine – The Operational Plan on page 57.
56
Step Nine
The Operational Plan
Operational Plan: Business Plan Basics
The Operational Plan deals specifically with the internal operations of the
company. The following are selected areas that need to be addressed in this
section.
Location
Where will your shop be located? What square footage is needed, in how
many locations? What type of space is it? Office space, dining area, storage,
sales area, retail space for the products? What is the advantage, if any, of
your location? At what point will the goals of the shop exceed the above
mentioned facilities? Provide a layout of your facility in the appendices of
your business plan.
Equipment
Outline and describe the significant equipment needed in the course of
operating your coffee shop, including cost. What does the equipment do and
how do the pieces function together? Will you purchase or lease your
equipment? Why and from whom? Be sure to include food preparation
equipment, vehicles, computers, and office equipment.
Labor
How many employees will you need? Full-time? Part-time? Break them out
by function, number of hours worked, and hourly pay. Describe the skill sets
needed. What are the salaries of those in management, wait staff and
kitchen workers? What are your hours of operation? What criteria are used to
locate and hire quality employees?
Other Issues to Consider:

• How will you keep track of inventory? Provide specific procedures and
equipment used.
• How will you maintain quality control? What are the procedures to
ensure that you are providing the top quality product or service?
• What type of insurance does your shop need? Discuss the legal
liability issues of your coffee shop.
Operational Plan: Mistakes to Avoid
Here are some of the most common mistakes found in the Operational
Section of business plans:
• Failing to clearly outline the process by which you sell your products
and services.
• Failing to account for all costs (direct and indirect).
• Failing to assess the delivery process in terms of costs, taxes, etc.
57
• Failing to develop adequate inventory control and quality assurance

guidelines.
• Failing to identify all machinery and equipment needed.
• Failing to properly plan the layout of the shop, the workflow process,
and the handling procedures.
• Failing to properly outline personnel management, scheduling, and
hiring practices.
• Failing to properly plan for contingencies to meet production and
staffing challenges.
• Failing to plan for long term facility and equipment changes.
The Operational Plan
We have provided a sample Operational Plan to help give you an idea of the
way the information can be formatted. See the sample Operational Plan on
page 63.
The Operational Plan explains the daily operation of your coffee shop; its
location, equipment, people, processes, and surrounding environment.
In this step, you will fill out the answers to questions posed in the following
section. Attach supporting documentation as an Appendix (once again, be
sure to keep a chronological order to your Appendixes)
The nine (9) sections in the Operational Plan include:
Production on page 58
Location on page 58
Legal Environment on page 59
Personnel on page 59
Inventory on page 60
Suppliers on page 60
Credit Policies on page 60
Managing your Accounts Receivable on page 60
Managing your Accounts Payable on page 61
Production
Product Production
How and where are your products produced?
Explain your methods of:
Production techniques & costs
Quality control
Customer service
Inventory control
Product development
58
Location
What qualities do you need in a location? Describe the type of location you
will have for your coffee shop.
Physical requirements:
Space; how much?
Type of building
Zoning
Power and other utilities
Access:
Is it important that your location be convenient to transportation or to

suppliers?
Do you need easy walk-in access?
What are your requirements for parking, and proximity to freeway, airports,
railroads, shipping centers?
You might include a drawing or layout of your proposed facility.
Construction: Most new companies should not sink capital into construction,
but if you are planning to build, then costs and specifications will be a big part
of your plan.
Cost: Estimate your occupation expenses, including rent, but also including:
maintenance, utilities, insurance, and initial remodeling costs to make it suit
your needs. These numbers will become part of your financial plan.
What will be your business hours?
Legal Environment
Describe the following

Licensing and bonding requirements required for your coffee shop
Permits
Health, workplace or environmental regulations
Special regulations that might apply
Zoning or building code requirements
Insurance coverage
Produced product trademarks, copyrights, or patents (pending, existing, or
purchased if applicable)
Personnel
Number of employees
Type of labor (skilled, unskilled, professional)
59
Where and how will you find the right employees?

Quality of existing staff
Pay structure
Training methods and requirements
Who does which tasks?

Do you have schedules and written procedures prepared?
Have you drafted job descriptions for employees? If not, take time to write
some. They really help internal communications with employees.
For certain functions, will you use contract workers in addition to employees?
Inventory
What kind of inventory will be kept: raw materials for food and beverage
production, supplies, finished goods?
Average value in stock (i.e., what is your inventory investment)?
Rate of turnover and how this compares to industry averages?
Lead-time for ordering?
Suppliers
Identify key suppliers.

Names & addresses
Type & amount of inventory furnished
Credit & delivery policies
History & reliability
Should you have more than one supplier for critical items (as a backup)?
Do you expect shortages or short term delivery problems?
Are supply costs steady or fluctuating? If fluctuating, how would you deal
with changing costs?
Managing your Accounts Receivable
You should do an aging at least monthly, to track how much of your money is
tied up in credit given to customers, and to alert you to slow payment
problems.
60
A receivables aging looks like this:
30 60 90 Over 90
Accounts Receivable Aging Total Current
Days Days Days Days
Client One
Client Two
Client Three
Client Four
You will need a policy for dealing with slow paying customers.
When do you make a phone call?
When send a letter?
When do you get your attorney to threaten?
Managing your Accounts Payable
You should also age your Accounts Payable, what you owe to your suppliers.
This helps you plan who to pay and when. Paying too early depletes your
cash, but paying late can cost you valuable discounts and damage your credit.
Are prompt payment discounts offered by your proposed vendors?
A payables aging looks like this:
Over
Accounts Payable Current 30 60 90
Total 90
Aging (discounts?) Days Days Days
Days
Vendor One
Vendor Two
Complete the Operational Plan Section
To complete the Operational Plan in Excel®, go to the Excel® Spreadsheet to

the tab labeled Step 9 - Operational Plan. Fill in the information and save
your work.
To complete the Operational Plan in Word®, go to the Word® options file

61
When You Have Completed the Operational Plan
business plan, so proceed to Step Ten, Management and Organization on
page 66.
62

Operational Plan
Production
Here you will need to explain the following:

9 Product Production
9 How and where are your products produced?
9 Explain your methods of:
o production techniques & costs
o quality control
o customer service
o inventory control
o product development
Location
Here you will describe:

9 What qualities do you need in a location
9 The type of location you will have
9 The physical requirements
o how much space
o type of building
o zoning
o power and other utilities
9 Information related to access to the location such as
9 Is it important that your location be convenient to transportation
or to suppliers
9 Do you need easy walk-in access
9 What are your requirements for
o parking
o proximity to freeway, airports, railroads, shipping centers
9 You might include a drawing or layout of your proposed facility.
9 if you are planning to build, then explain costs and specifications
with supporting documentation
63
9 Estimate your occupation expenses, including rent, but also

including:
o maintenance
o utilities
o insurance
o initial remodeling costs to make it suit your needs
9 What will be your business hours
Legal Environment
Describe the following:

9 Licensing and bonding requirements required for your coffee shop
9 Permits
9 Health, workplace or environmental regulations
9 Special regulations that might apply
9 Zoning or building code requirements
9 Insurance coverage
9 Produced product trademarks, copyrights, or patents (pending,
existing, or purchased if applicable)
Personnel
Provide detail information on the following:

9 Number of employees
9 Type of labor (skilled, unskilled, professional)
9 Where and how will you find the right employees
9 Quality of existing staff
9 Pay structure
9 Training methods and requirements
9 Who does which tasks
9 Do you have schedules and written procedures prepared
9 Have you drafted job descriptions for employees
9 Will you use contract workers in addition to employees
Inventory
9 What kind of inventory will be kept: raw materials for food and
beverage production, supplies, finished goods
9 Average value in stock (i.e., what is your inventory investment)
9 Rate of turnover and how this compares to industry averages
9 Lead-time for ordering
64
Suppliers
Provide information on the following:

9 Identify key suppliers
o names & addresses
o type & amount of inventory furnished
o credit & delivery policies
o history & reliability
9 Do you have more than one supplier for critical
9 Do you expect shortages or short term delivery problems
9 Are supply costs steady or fluctuating
Managing your Accounts Receivable
Explain the following:

9 Your credit policy
9 What do you expect your accounts receivable aging chart to be
9 What is your policy for dealing with slow paying customers
9 When do you make a phone call
9 When send a letter
9 When do you get your attorney to threaten
Managing your Accounts Payable
Address the following:

9 Are prompt payment discounts offered by your proposed vendors
9 What are the discounts
9 Provide an account payables aging chart
65
Step Ten
Management and Organization
In the Management and Organization section, you will describe the

management and organization plan you have in mind now for your coffee
shop.
We have provided a sample Management and Organization section to help

give you an idea of the way the information can be formatted. See the
sample Management and Organization on page 69.
Who will manage the coffee shop on a day to day basis? What experience
does that person bring to the business? What special or distinctive
competencies? Is there a plan for continuation of the business if this person
lost or incapacitated?
If you will have more than about ten employees, create an organizational
chart showing the management hierarchy and who is responsible for key
functions.
Management Team: Business Plan Basics
Many investors base their entire investment decision on the management

team behind a venture. Investors expect a well-rounded team of
professionals with experience in every function critical to the coffee shop
operation. Your management section should clearly demonstrate who each
person is, why he or she is on your team, and what each person will do.
Try and limit your management team to 3 to 5 people - and to those

individuals involved in the day to day coffee shop operation that have the
greatest impact on the future success of your shop. Everyone else is
considered either an employee, or if not involved in day to day operations
should be included as a member of the Board of Advisors, Board of Directors
or consultants. A discussion of your employees should be included in the
operations section.
The basic components of the management section include:
Specific Team Members
Construct a narrative description for each team member, clarifying his or her
background and intended contribution. This should include:
• Title of this position
66
• Duties and responsibilities of this position - what will they be doing,

which functions they will be overseeing, who do they supervise, who
do they report to, etc.
• Previous industry and related business experience - should be those
that relate directly to this new position. Who have they worked for,
what were they doing, for how long did they do it, etc.
• Previous Successes - what did they accomplish, did they help grow a
coffee shop, or were they responsible for a turnaround or some new
breakthrough idea.
• Education; keep educational descriptions brief
Board of Directors
Briefly describe who is on your Board and what role they play within your
coffee shop. Briefly list the names, backgrounds, and contributions that will
be made by each board member.
Board of Advisors
Your board of advisors should consist of individuals with valuable industry

expertise and insight, and they help and consult with you on your business.
A solid and experienced board of advisors goes a long way towards building
credibility in the eyes of investors. Briefly list the names, backgrounds, and
contributions that will be made by each of your board members.
Consultants
The last part of your management section should include a brief mention of
the outside consultants you will work with as your coffee shop grows. A
typical list of consultants would include accountants, attorneys, bankers,
insurance agents, and experts such as technology advisors, food prep, wait
staff techniques, and payroll specialists, for example.
Explain the background of the founder(s) of the company at some length.

However, limit this background information to under a page. Stick to the
facts on all your management team bios, making it evident why each person
is experienced, why they hold their position and the benefits they provide
your coffee shop.
Tip
Important Tip
Investors Prefer
Always keep in mind that given the choice between an excellent business
concept with second-rate managers and a mediocre business concept with
top-notch managers, investors prefer the latter.
67
Management Team: Mistakes to Avoid
The following are several common mistakes that decrease the effectiveness
of the management team section of your business plan:
• Depending on unqualified friends or family in key management

positions.
• Assuming that previous success in other industries applies to your
business.
• Presenting a "one-man-team" management philosophy. Investors
know it's difficult to wear every hat and successfully run and grow a
shop.
• Attempting to attract top managers without sharing ownership.
• Lacking non-compete agreements for critical management staff.
• Failing to attract and assemble a knowledgeable board of advisors.
Professional and Advisory Support
Here, you will list the following information about the individuals that will be
involved in your coffee shop. Be through and attach resumes or information
from websites or brochures about these individuals, if available. This adds to
the creditability of your company’s organization.
List board of directors and management advisory board.

Attorney
Accountant
Insurance agent
Banker
Consultant(s)
Mentors and key advisors in addition to the above
Complete the Management and Organization Section
To complete the Management and Organization Section in Excel®, go to the

Excel® Spreadsheet to the tab labeled Step 10 – Mgt and Organization. Fill
in the information and save your work.
To complete the Management and Organization Section in Word®, go to the

Word® options file and complete the information.
When You Have Completed the Management and Organization
business plan, so proceed to Step Eleven, The Financial Plan on page 71.
68

Management and Organization

Founders
Explain the background of the founder(s) of the company at some

length. Limit this background information to under a page. Stick to
the facts on all your management team bios, making it evident why
each person is experienced, why they hold their position and the
benefits they provide your coffee shop.
Management Team
Provide information on Specific Team Members (Try and limit your

management team to 3 to 5 people)
Construct a narrative description for each team member, clarifying his

or her background and intended contribution. This should include:
• Title of this position

• Duties and responsibilities of this position - what will they be
doing, which functions they will be overseeing, who do they
supervise, who do they report to, etc.
• Previous industry and related business experience - should be
those that relate directly to this new position. Who have they
worked for, what were they doing, for how long did they do it,
etc.
• Previous Successes - what did they accomplish, did they help
grow a coffee shop, or were they responsible for a turnaround or
some new breakthrough idea.
• Education; keep educational descriptions brief
69
Board of Directors
Briefly describe who is on your Board and what role they play within
your coffee shop. Briefly list the names, backgrounds, and
contributions that will be made by each board member.
Board of Advisors
Your board of advisors should consist of individuals with valuable

industry expertise and insight, and they help and consult with you on
your business. A solid and experienced board of advisors goes a long
way towards building credibility in the eyes of investors. Briefly list
the names, backgrounds, and contributions that will be made by each
of your board members.
Consultants
The last part of your management section should include a brief

mention of the outside consultants you will work with as your coffee
shop grows. A typical list of consultants would include accountants,
attorneys, bankers, insurance agents, and experts such as technology
advisors, food prep, wait staff techniques, and payroll specialists, for
example.
Professional and Advisory Support
List board of directors and management advisory board.

9 Attorney
9 Accountant
9 Insurance agent
9 Banker
9 Consultant(s)
9 Mentors and key advisors in addition to the above
70
Step Eleven
The Financial Plan
Financial Projections: Business Plan Basics
Your Financial Plan will consist of five (5) parts:

The Profit and Loss Narrative
The Profit and Loss Statement
The Project Cash Flow
The Balance Sheet
The Break-Even Analysis
Your financial plan will be highly scrutinized by your business plan reader. All
the ideas, concepts and strategies discussed throughout your entire business
plan form the basis for, and should flow into, your financial statements and
projections in some manner. When it gets down to it, your reader wants to
know if and when your coffee shop will make money and become profitable.
Financial statements and projections should follow Generally Accepted

Accounting Standards and must (at a minimum) include properly prepared
balance sheets, income statements and cash flow statements. Bankers and
investors are familiar with the correct content, organization and presentation
of financial statements, and expect to see them in your business plan. Don't
cut corners or attempt to devise your own method of financial and pro forma
statement presentation.
In most cases, capital sources expect financial projections for a three to five
year period, and historical statements for the past three years (or since
inception if operating period is less than three years).
Consider organizing your financial statements as follows:
Income Statements
• Year 1 - Monthly Projections

• Years 2 thru 5 - Quarterly or Yearly Projections
• Existing businesses should provide income statements for the last 3
years if available.
Balance Sheets
• Year 1 - Quarterly Projections

• Years 2 thru 5 - Yearly Projections
• Existing businesses should provide current balance sheet and balance
sheets from the prior 2 years if available.
71
Cash Flows
• Year 1 - Monthly Projections

• Years 2 thru 5 - Quarterly or Yearly Projections
Other information that you may consider including:
Financial Assumptions
These financial assumptions are critical to properly convey the "reasons

behind the numbers" for outsiders reviewing your financial projections.
Explain how you calculated the numbers you used in your financial
statements. For example, we will sell X number of Y per month at $X per Y.
This is projected to increase by 4% every month, etc.
Break-Even Analysis
These break-even analysis figures demonstrate the volume of sales, in units

and dollars that must be generated to cover fixed and variable expenses. At
the break-even point, you start becoming profitable. Normally this data is
presented in a graph format with sales on the X-axis and specific products
and services on the Y-axis.
Sources and Uses of Funds
This section explains to your reader which sources you expect to secure
capital from, and what you specifically plan to spend it on.
Investment Structure and Objectives
This section outlines the amount of capital needed, various investment

structures, and the estimated return to your investor. It is critically
important to tell your investor how they will recoup their money, when they
can cash out, and what they will receive as a return.
Financial Ratios
Providing standard financial ratios helps your business plan reader to analyze
how well your coffee shop will perform compared to other companies within
the industry. For existing companies, show the trends over the last 3 to 5
years to outline any improvements in your performance.
Financial Projections: Mistakes to Avoid
Here are some of the most common mistakes found in the financial
projection sections of business plans:
• Failing to include the "Big 3" statements and projections (income
statement, balance sheet, cash flow).
72
• Presenting sales and profit projections that are unrealistic and

unfounded.
• Omitting financial assumptions to explain where the "numbers"
originated.
• Presenting "creative" rather than "accepted" financial statements.
• Underestimating expenses and not budgeting for unexpected costs.
• Lack of financial investment on the part of the founders.
• Including excessive salaries and office expenses at start-up.
• Offering a lower percentage of ownership than the investment
requirement demands.
• Offering a return on investment that is out of line for your industry.
• Absence of contingencies and projections for worst case scenarios.
• Financial statements that are not prepared or reviewed by a reputable
accountant.
The Financial Plan for Your Company
The Financial Plan consists of a 12-month Profit and Loss Statement, a

Projected Cash Flow, a Balance Sheet, and a Breakeven Calculation. Together
they constitute a reasonable estimate of your coffee shop financial future.
More importantly, however, the process of thinking through the Financial Plan
will improve your insight into the inner financial workings of your coffee shop.
Instructions on How to Complete the Profit-Loss Narrative
Now, you need to refer to the Excel® spreadsheet entitled Step 11 –

Narrative or you can complete the Narrative in the Word® options file.
Profit projections should be preceded by a narrative explaining the major

assumptions used to estimate the company’s income & expenses.
We have provided an illustrative Profit and Loss Narrative to help give you an
idea of the way the information can be formatted. See the Profit and Loss
Statement Narrative included in the Financial Plan found on page 78.
Twelve Month Profit and Loss Projection
Many business owners think of this as the centerpiece of their business plan.
This is where you put it all together in numbers and get an idea of what it will
take to make a profit and be successful in your coffee shop.
This twelve month forecast will provide you information related to forecast
sales, cost of goods sold, expenses, and profit month by month for one year.
73
Instructions on How to Complete the Profit-Loss Statement in the

Excel Spreadsheets
This section will be your Profit-Loss Statement. You need to refer to the
Excel® spreadsheet entitled Step 11 – Profit-Loss Statement. You will find
that most of the financial data has been auto filled and your sales projections
will come from the Sales Forecast you did in Step Eight.
Tip
Important Tip
Keep Notes
Research Notes: Keep careful notes on your research and

assumptions, so you can explain them later if necessary, and also so you can
go back to your sources when it is time to revise your plan later on.
Projected Cash Flow
If the profit projection is the heart of your business plan, then cash flow is the
blood. Businesses fail because at some point they cannot pay their bills.
Every part of your business plan is important, but none of it means a thing if
you run out of cash.
The point of this step is to plan how much you need before startup, for
preliminary expenses, operating expenses, and reserves. You should keep
updating it and using it afterwards as well. It will enable you to foresee
shortages in time to do something about them; perhaps to cut expenses, or
perhaps to negotiate a loan.
There is no great trick to preparing it: the cash flow projection is just a
forward look at your business checking account.
Use the Profit and Loss Statement for a starting point. For each item,
determine when you actually expect to receive cash (for sales) or when you
will actually have to write a check (for expense items)
Your Cash Flow Projection will show you whether your working capital is
adequate. Clearly, if your projected cash balance ever goes negative, you
will need more startup capital. This plan will also predict just when and how
much you will need to borrow. New loans can be placed on Row 42,
currently labeled Miscellaneous.
74
Your Cash Flow Projection chart will appear similar to this example:
We have provided an illustrative Profit and Loss Narrative to help give you an
idea of the way the information can be formatted. See the Projected Cash
Flow Narrative included in the Financial Plan found on page 78.
In the Narrative, you will need to explain your major assumptions, especially
those which make the cash flow differ from the Profit and Loss Statement;
How will this affect cash flow?
Are some expenses payable in advance? When?
Are there irregular expenses such as quarterly tax payments, maintenance

and repairs, or seasonal inventory buildup which should be budgeted?
Loan payments, equipment purchases, and owner's draws usually do not show
on profit and loss statements, but definitely do take cash out. Be sure to
include them.
And of course, depreciation does not appear in the cash flow at all because
you never write a check for it.
Instructions on How to Complete the Projected Cash Flow in the

Excel Spreadsheets
Now, you need to refer to the Excel® spreadsheet entitled Step 11 – Project
Cash Flow. You will see that Row 7, Gross Sales is already filled in from the
75
Sales Forecasts section of the Excel® spreadsheet. Other rows have been
auto filled from the Profit-Loss Statement.
Fill in the remaining dollar figures based on your estimates.
When you have finished this page in the Excel® spreadsheet, you will have
your twelve month Projected Cash Flow.
Opening Day Balance Sheet
A balance sheet is one of the fundamental financial reports which any

business needs for reporting and financial management. A balance sheet
shows what items of value are held by the company (Assets), and what its
debts are (Liabilities). When liabilities are subtracted from assets, the
remainder is Owners’ Equity.
Instructions on How to Complete the Balance Sheet in the Excel

Spreadsheets
Use the Excel® spreadsheet tab, Step 6 - Start Up Costs, as a guide to

preparing a balance sheet as of the opening day of your coffee shop.
You need to refer to the Excel® spreadsheet Step 11 - Balance Sheet.
In this step of your business plan, explain how you calculated the account
balances on your Opening Day Balance Sheet and you will do this in the
Excel® spreadsheet under the tab Step 11 – Balance Sheet. You will also
need to explain your findings in the Narrative.
When you have completed this spreadsheet, you will have your Opening Day
Balance Sheet.
Break-Even Analysis
A Break-Even Analysis predicts the sales volume, at a given price, required to

recover total costs. In other words, it’s the sales level that is the dividing line
between operating at a loss and operating at a profit.
From the Excel® spreadsheet in the tab entitled Step 11 – Projected Cash
Flow that you have already prepared, you will be able to determine how many
months it will take before your coffee shop is operating the “black” (at a
profit). This Break-Even Analysis section is a narrative of the results of the
Projected Cash Flow to profitability.
76
Instructions on How to Complete the Break-Even Analysis
To complete the Break-Even Analysis in Excel®, go to the Excel®

Spreadsheet to the tab labeled Step 10 – Mgt and Organization. Fill in the
To complete the Break-Even Analysis in Word®, go to the Word® options file

When you have finished, you will have a good idea of when you can expect to
breakeven in your coffee shop.
When You Have Completed the Financial Plan
Now, you ready to finish up your business plan and you should now go to the
Appendixes section on page 81.
77

Financial Plan
This is a narrative to explain the findings of the following:
Profit and Loss Statement

Here you will explain the major assumptions used to estimate the
company’s income & expenses. Use the following list to include those
areas that must have detailed explanations.
Revenue
Gross Sales
Less Returns and Allowances
Net Sales
Cost of Sales
Beginning Inventory
Purchases (Net)
Sub-Contractors
Direct Labor
Ending Inventory (Negative)
Total Cost of Sales
Expenses
Audit / Accounting Fees

Bus Dev. - Travel
Bus. Dev. - Entertainment
Bus. Dev. - Meals
Capital Acquisitions
Charitable Contributions
Commissions
78
Conferences & Seminars

Consulting Fees
Depreciation
Employee Benefits
Entertainment
Equipment Lease
Facilities - Insurance
Facilities - Phone
Facilities - Property Taxes
Facilities - Rent
Facilities - Security
Facilities - Utilities
Facility - Other
Financial Charges
Furniture
Insurance
Inventory Purchases
IT Consulting
Legal Fees
Loan Capital
Loan Interest
Miscellaneous
Office Supplies
Payroll - Operational staff
Payroll - Administrative Staff
Payroll - Owner / Directors
Payroll - Sales / Marketing
Payroll Taxes
Postal / Shipping
PR / Advertising
Repairs & Maintenance
Research and Development
Storage
Subscriptions & Dues
Taxes & Licenses
Telecommunications
Vehicle Expenses
Projected Cash Flow
You provide an explanation of the following:

9 Your major assumptions
9 How will these assumptions will affect cash flow
9 Are some expenses payable in advance
79
9 When
9 Are there irregular expenses such as quarterly tax payments,
maintenance and repairs, or seasonal inventory buildup which
should be budgeted
9 Since loan payments, equipment purchases, and owner's draws
usually do not show on profit and loss statements, but definitely
do take cash out, you should include an explanation of these
assumptions
Balance Sheet
Give a detailed explanation of the Balance Sheet, as shown on the

Excel spreadsheet. The Balance Sheet shows what items of value are
held by the company (Assets), and what its debts are (Liabilities).
When liabilities are subtracted from assets, the remainder is Owners’
Equity.
Breakeven Analysis
A Break-Even Analysis predicts the sales volume, at a given price,

required to recover total costs. In other words, it’s the sales level that
is the dividing line between operating at a loss and operating at a
profit.
From the Excel® spreadsheet in the tab entitled Step 11 – Projected

Cash Flow that you have already prepared, you will be able to
determine how many months it will take before your coffee shop is
operating the “black” (at a profit). This Break-Even Analysis section is
a narrative of the results of the Projected Cash Flow to profitability.
80
Appendixes
Here you will list your Appendixes and you should associate a certain
Appendix with a section of the business plan.
The following is a list of all the Tabs (spreadsheet page) required in this
business plan in order of appearance:
Appendix
Name of Tab Tab Number
Your Net Worth 1

Cover Sheet 2
Executive Summary 3
General Company Description 3
Products & Services Description 4
Start-Up Costs Narrative 5
Start-Up Costs 6
Marketing Plan 7
Sales Forecast 8
Operational Plan 9
Management & Organization 10
Financial Plan Narrative 11
Profit and Loss Statement 12
Projected Cash Flow 13
Balance Sheet 14
Breakeven Analysis 15
Spreadsheet Note
Important Note Regarding Tabs
Tabs are sometimes referred to as “pages” in the spreadsheet.

However, a tab can contain from one to a hundred pages! For instance, the
Cover Sheet is a one page Tab. But the Projected Cash Flow consists of
twelve pages. When you add the data, there could be more!
Include details & studies used in your business plan; for example:
Brochures & advertising materials

Industry studies
Blueprints & plans
Maps & photos of location
Magazine or other articles
Detailed lists of equipment owned or to be purchased
Copies of leases & contracts
Letters of support from future customers
Any other materials needed to support the assumptions in this plan
Market research studies
81
List of assets available as collateral for a loan
Your Business Plan Is Now Complete and Ready for Printing
You are now ready to format and print your business plan. Depending on the
amount and size of text you used and imputed, the amount of additional
lines in the spreadsheets and the fonts used, and the format you use for the
page setups (portrait or landscape), and the paper you use (letter or legal),
you will need to format the entire workbook. Sometimes, you must use page
setup and set different settings for different pages.
To review how to format and customize your business plan for how it will
look when you view or print it, go to page 2.
Spreadsheet Note
Important Note Regarding Spreadsheet Pages
To view the actual page margins, you can click on File, Page Setup
and then click OK. The page borders will show as a dotted line. You can
then see if the information is going to print on one page or numerous pages.
In Conclusion
Your Business Plan for your coffee shop is complete, or should we say as
complete as it can be for now. A business plan is a work in progress, a never
ending process to plan your coffee shop, revise the projections, adjusts the
expenses, and plan for your overall success. You should revisit your business
plan often. As a rule, you should revisit the business plan at least once every
three months or so for revisions and/or updates to the business plan.
PowerPoint Demonstrations
You can use PowerPoint as a powerful tool in presenting your business plan
to any audience; bankers, investors, employees, partners, etc. PowerPoint
turns your business plan into a “Show and Tell” experience.
PowerPoint is a presentation software program included as part of the

Microsoft Office package. PowerPoint is a complete presentation graphics
package. It gives you everything you need to produce a professional-looking
presentation. PowerPoint offers word processing, outlining, drawing,
graphing, and presentation management tools- all designed to be easy to use
and learn.
PowerPoint is a product for producing slide shows that can incorporate text,
graphics, video, animations, etc. LCD / DLP projectors are known to many
people as "PowerPoint projectors."
The following gives you a quick overview of what you can do in PowerPoint.
82
PowerPoint uses a graphical approach to presentations in the form of slide

shows that accompany the oral delivery of the topic. This program is widely
used in business and classrooms and is an effective tool when used for
training purposes.
PowerPoint is one of the simplest computer programs to learn. It is the

number 1 program used worldwide for presentations. Anyone can create
stunning presentations that look like they were designed by a professional.
PowerPoint presentations can be made into photo albums, complete with

music or narrations, to distribute on CDs or DVDs. So you can leave copies
with anyone to view at a later date. This can be extremely important (and
impressive) with lenders or investors.
PowerPoint is easy to customize presentations with your company logo and to

dazzle your audience by using one of the many design templates that come
with the programs. Many more free add-ins and templates are available
online from Microsoft and a host of other websites. In addition to an on
screen slide show, PowerPoint has printing options that allow the presenter to
provide handouts and outlines for the audience as well as notes pages for the
speaker to refer to during the presentation.
All in all, PowerPoint is a "one-stop-shop" to create successful presentations

for the business world.
To summarize:
• When you create a presentation using PowerPoint, the presentation is
made up of a series of slides. The slides that you create using
PowerPoint can also be presented as overhead transparencies or
35mm slides.
• In addition to slides, you can print audience handouts, outlines, and
speaker's notes.
• You can format all the slides in a presentation using the powerful Slide
Master.
• You can keep your entire presentation in a single file- all your slides,
speaker's notes, and audience handouts.
• You can import what you have created in other Microsoft products,
such as Word and Excel into any of your slides.
You can even host your business plan PowerPoint demonstration online.
There are many companies that offer this service, such as Glance,
http://www.glance.net.
83
Mutual Non-Disclosure Agreement
It is understood and agreed to that the parties to this Agreement would each
like to provide the other with certain information that may be considered
confidential. To ensure the protection of such information and in
consideration of the agreement to exchange said information, the parties
agree as follows:
1. The confidential information to be disclosed under this Agreement

(”Confidential Information”) can be described as and includes:
Technical and business information relating to proprietary ideas, patentable

ideas and/or trade secrets, existing and/or contemplated products and
services, research and development, production, costs, profit and margin
information, finances and financial projections, customers, clients, marketing,
and current or future business plans and models, regardless of whether such
information is designated as “Confidential Information” at the time of its
disclosure.
In addition to the above, Confidential Information shall also include, and the
parties shall have a duty to protect, other confidential and/or sensitive
information which is (a) disclosed as such in writing and marked as
confidential (or with other similar designation) at the time of disclosure;
and/or (b) disclosed by in any other manner and identified as confidential at
the time of disclosure and is also summarized and designated as confidential
in a written memorandum delivered within thirty (30) days of the disclosure.
2. The parties shall use the Confidential Information only for the purpose of
evaluating potential business, employment and/or investment relationships.
3. The parties shall limit disclosure of Confidential Information within its own
organization to its directors, officers, partners, members and/or employees
having a need to know and shall not disclose Confidential Information to any
third party (whether an individual, corporation, or other entity) without prior
written consent. The parties shall satisfy its obligations under this paragraph if
it takes affirmative measures to ensure compliance with these confidentiality
obligations by its employees, agents, consultants and others who are
permitted access to or use of the Confidential Information.
4. This Agreement imposes no obligation upon the parties with respect to any
Confidential Information (a) that was possessed before receipt; (b) is or
becomes a matter of public knowledge through no fault of receiving party; (c)
is rightfully received from a third party not owing a duty of confidentiality; (d)
is disclosed without a duty of confidentiality to a third party by, or with the
authorization of the disclosing party; or (e) is independently developed.
5. The parties warrant that they have the right to make the disclosures under
this Agreement.
84
6. This Agreement shall not be construed as creating, conveying, transferring,

granting or conferring upon either party any rights, license or authority in or
to the information exchanged, except the limited right to use Confidential
Information specified in paragraph 2. Furthermore and specifically, no license
or conveyance of any intellectual property rights is granted or implied by this
Agreement.
7. Neither party has an obligation under this Agreement to purchase any

service, goods, or intangibles from the other party. Furthermore, both parties
acknowledge and agree that the exchange of information under this
Agreement shall not commit or bind either party to any present or future
contractual relationship (except as specifically stated herein), nor shall the
exchange of information be construed as an inducement to act or not to act in
any given manner.
8. Neither party shall be liable to the other in any manner whatsoever for any
decisions, obligations, costs or expenses incurred, changes in business
practices, plans, organization, products, services, or otherwise, based on
either party’s decision to use or rely on any information exchanged under this
Agreement.
9. If there is a breach or threatened breach of any provision of this

Agreement, it is agreed and understood that the non-breaching party shall
have no adequate remedy in money or other damages and accordingly shall
be entitled to injunctive relief; provided however, no specification in this
Agreement of any particular remedy shall be construed as a waiver or
prohibition of any other remedies in the event of a breach or threatened
breach of this Agreement.
10. This Agreement states the entire agreement between the parties
concerning the disclosure of Confidential Information and supersedes any prior
agreements, understandings, or representations with respect thereto. Any
addition or modification to this Agreement must be made in writing and signed
by authorized representatives of both parties. This Agreement is made under
and shall be construed according to the laws of the State of
___________________, U.S.A. In the event that this agreement, is breached,
any and all disputes must be settled in a court of competent jurisdiction in the
State of ____________________, U.S.A.
11. If any of the provisions of this Agreement are found to be unenforceable,

the remainder shall be enforced as fully as possible and the unenforceable
provision(s) shall be deemed modified to the limited extent required to permit
enforcement of the Agreement as a whole.
WHEREFORE, the parties acknowledge that they have read and understand
this Agreement and voluntarily accept the duties and obligations set forth
herein.
85
Recipient of Confidential Information:

Name (Print or Type):
Company:
Title:
Address:
City, State & Zip:
Signature:
Date:
Discloser of Confidential Information:

Name (Print of Type):
Company:
Title:
Address:
City, State & Zip:
Signature:
Date:
86
Attachment One
A Discussion of the Basic Legal Forms of Ownership
This information is for individuals who are ready to start operation and want
instruction on the regulations that affect most small business start ups. You
might want to start by deciding if you want to operate as a proprietor, a
partnership or a corporation.
You will want to know what taxes might affect your business and if you are
going to be employing people in your business, then there are a number of
regulations that may affect you.
This information discusses the basic regulations that are common to most
start ups and does not encompass permits, licenses or regulations that may
be required.
Proprietorship, Partnership or Incorporation?
Advantages and Disadvantages of Proprietorship on page 87

Advantages and Disadvantages of Partnership on page 88
Advantages and Disadvantages of Incorporating on page 89
Registering a Proprietorship or Partnership on page 90
Registering a Corporation on page 90
Incorporating a Company in your State on page 90
From a legal point of view, there are three common types of businesses: sole
proprietorship, partnership and corporation. Each has different and
important implications for liability, taxation and succession. A lawyer or
accountant can advise you on which is suited to your needs, and undertake
the necessary formalities.
Advantages and Disadvantages of Proprietorship
This is the simplest way to set up a business. A sole proprietor is fully

responsible for all debts and obligations related to his or her business. A
creditor with a claim against a sole proprietor would normally have a right
against all of his or her assets, whether business or personal. This is known
as unlimited liability.
In a proprietorship, one person performs all the functions required for the
successful operation of the business. The proprietor secures the capital,
establishes and operates the business, assumes all risks, accepts all profits
and losses, and pays all taxes. The proprietor is said to be self-employed.
Advantages:
- Low start-up costs
87
- Greatest freedom from regulation

- Owner in direct control of decision making
- Minimal working capital required
- Tax advantages to owner
- All profits to owner
Disadvantages:
- Unlimited liability
- Lack of continuity in business organization in absence of owner
- Difficulty in raising capital
Return to Proprietorship, Partnership Or Incorporation on page 87
Advantages and Disadvantages of Partnership
A partnership is an agreement in which two or more persons combine their

resources in a business with a view to making a profit. In order to establish
the terms of the partnership and to protect partners in the event of a
disagreement or dissolution of a partnership, a partnership agreement should
be drawn up. Standard form partnership agreements can also be purchased
for about $5.00 at stationary stores. Partners share in the profits according
to the terms of the agreement.
In a General Partnership, two or more owners share the management of a

business, and each is personally liable for all the debts and obligations of the
business. This means that each partner is responsible for, and must assume
the consequences of, the actions of the other partner(s).
A second type of partnership is a Limited Partnership which involves limited

partners who combine only capital. They are not involved in managing the
business and cannot be liable for more than the amount of capital they have
contributed. This is known as limited liability.
A limited partnership also involves general partners, who are involved in

management. They are fully liable for the debts and obligations of the
business, but may be entitled to a greater share of the profits.
Advantages:
- Ease of formation
- Low start-up costs
- Additional sources of investment capital
- Possible tax advantages
- Limited regulation
- Broader management base
88
Disadvantages:
- Unlimited liability
- Divided authority
- Difficulty in raising additional capital
- Hard to find suitable partners
- Possible development of conflict between partners
- Partners can legally bind each other without prior approval
- Lack of continuity
Advantages and Disadvantages of Incorporating
A corporation, also known as a Limited Company, is a legal entity which is

separate and distinct from its members (shareholders). Each shareholder has
limited liability. A creditor with a claim against the assets of the company
would normally have no rights against its shareholders, although in certain
circumstances shareholders may be held liable. It is recommended that legal
advice be sought. This type of business can be incorporated at either the
federal or provincial level.
Ownership interests in a corporation are usually easily changed. Shares may

be transferred without affecting the corporations’ existence or continued
operation.
The following characteristics distinguish it from a partnership or

proprietorship:
Limited liability - normally no member can be held personally liable for the
debts, obligations or acts of the corporation beyond the amount of share
capital the members has subscribed; and
Perpetual succession - because the corporation is a separate legal entity, its

existence does not depend on the continued membership of any of its
members.
Advantages:
- Limited liability
- Possible tax advantage (if you qualify for a small business tax rate)
- Specialized management
- Ownership is transferable
- Continuous existence
- Separate legal entity
- Easier to raise capital
89
Disadvantages:
- Closely regulated
- Most expensive form to organize
- Charter restrictions
- Extensive record keeping necessary
- Double taxation of dividends
- Shareholders may be held legally responsible in certain circumstances
- Personal guarantees undermine limited liability advantage
Registering a Proprietorship or Partnership
Proprietorships and Partnerships are regulated by the government. See your

State Government Website on page 96.
Registering a Corporation
You have the option to incorporate at a state level or at a federal level. If a

company intends to carry on its activities solely in one state, state
incorporation may be preferable. If the company wishes to expand its
activities outside of its state jurisdiction at a later date, it must obtain an
extra-state license from every other state in which it wishes to open an office
or obtain a presence.
Under Federal Law, any individual or corporation may receive a certificate of

incorporation for any legal purpose with the exception of operating such
institutions as banks, insurance companies, and trust and loan companies. In
several states, a federally incorporated company will still have to obtain extra
state registration to operate.
Incorporating a Company in your State
Incorporating can be a very involved process and it is recommended that you

seek the advice and services of a lawyer and/or an accountant. For
information on incorporating in your state, go your state’s Website located in
Government Websites on page 96.
90
Attachment Two
Information Resources
We have provided these Information Resources to assist you in contacting

any of the listed agencies or information sources for assistance in starting
your new business.
The list includes:
U.S. Small Business Administration (SBA) on page 91

Service Corps of Retired Executives (SCORE) on page 92
Small Business Development Centers (SBDCs) on page 92
Small Business Institutes (SBIs) on page 92
SBA Business Development Programs on page 92
Other U.S. Government Resources on page 92
Federal Publications on page 92
Consumer Information Center (CIC) on page 93
U.S. Department of Agriculture (USDA) on page 93
U.S. Department of Commerce (DOC) on page 93
U.S. Department of Health and Human Services (HHS) on page 93
U.S. Department of Labor (DOL) on page 94
U.S. Department of Treasury on page 94
Internal Revenue Service (IRS) on page 94
U.S. Environmental Protection Agency (EPA) on page 94
U.S. Food and Drug Administration (FDA) on page 94
For More Information on page 94
Books, Magazine and Newspaper Articles on page 95
U.S. Small Business Administration (SBA)
The SBA offers an extensive selection of information on most business

management topics, from how to start a business to exporting your products.
This information is listed in "The Small Business Directory". For a free copy,
contact your nearest SBA office.
SBA has offices throughout the country. Consult the U.S. Government section
in your telephone directory for the office nearest you. SBA offers a number of
91
programs and services, including training and educational programs,

counseling services, financial programs and contract assistance.
Back to the list of Information Resources on page 91
- Service Corps of Retired Executives (SCORE) , a national organization

sponsored by SBA of over 13,000 volunteer business executives who provide
free counseling, workshops and seminars to prospective and existing small
business people.
- Small Business Development Centers (SBDCs), sponsored by the SBA in

partnership with state and local governments, the educational community
and the private sector. They provide assistance, counseling and training to
prospective and existing business people.
- Small Business Institutes (SBIs), organized through SBA on more than 500
college campuses nationwide. The institutes provide counseling by students
and faculty to small business clients.
For more information about SBA Business Development Programs and

services call the SBA Small Business Answer Desk at 1-800-8-ASK-SBA (827-
5722).
Other U.S. Government Resources

Many publications on business management and other related topics are
available from the Government Printing Office (GPO). GPO bookstores are
located in 24 major cities and are listed in the Yellow Pages under the
"bookstore" heading. You can request a "Subject Bibliography" by writing to
Government Printing Office, Superintendent of Documents, Washington, DC
20402-9328.
Federal Publications
Many federal agencies offer publications of interest to small businesses.
There is a nominal fee for some, but most are free. Below is a selected list of
government agencies that provide publications and other services targeted to
small businesses.
92
- Consumer Information Center (CIC) , P.O. Box 100 Pueblo, CO 81002

The CIC offers a consumer information catalog of federal publications.
- Consumer Product Safety Commission (CPSC)

Publications Request
Washington, DC 20207
The CPSC offers guidelines for product safety requirements.
- U.S. Department of Agriculture (USDA)

12th Street and Independence Avenue, SW
The USDA offers publications on selling to the USDA.
Publications and programs on entrepreneurship are also available through
county extension offices nationwide.
- U.S. Department of Commerce (DOC)

Office of Business Liaison
14th Street and Constitution Avenue, NW
Room 5898C
DOC's Business Assistance Center provides listings of business
opportunities available in the federal government. This service also will refer
businesses to different programs and services in the DOC and other federal
agencies.
- U.S. Department of Health and Human Services (HHS)

Public Health Service
Alcohol, Drug Abuse and Mental Health Administration
5600 Fishers Lane
Rockville, MD 20857
Drug Free Workplace Helpline: 1-800-843-4971. Provides
information on Employee Assistance Programs.
National Institute for Drug Abuse Hotline: 1-800-662-4357. Provides
information on preventing substance abuse in the workplace.
The National Clearinghouse for Alcohol and Drug Information:
1-800-729-6686 toll-free. Provides pamphlets and resource materials on
substance abuse.
93
- U.S. Department of Labor (DOL)

Employment Standards Administration
200 Constitution Avenue, NW
The DOL offers publications on compliance with labor laws.
- U.S. Department of Treasury

Internal Revenue Service (IRS)
P.O. Box 25866
Richmond, VA 23260
1-800-424-3676
The IRS offers information on tax requirements for small businesses.
- U.S. Environmental Protection Agency (EPA)

Small Business Ombudsman
401 M Street, SW (A-149C)
1-800-368-5888 except DC and VA
703-557-1938 in DC and VA
The EPA offers more than 100 publications designed to help small
businesses understand how they can comply with EPA regulations.
- U.S. Food and Drug Administration (FDA)

FDA Center for Food Safety and Applied Nutrition
200 Charles Street, SW
The FDA offers information on packaging and labeling requirements for
food and food-related products.
For More Information

A librarian can help you locate the specific information you need in reference
books. Most libraries have a variety of directories, indexes and encyclopedias
that cover many business topics. They also have other resources, such as
trade association information. Ask the librarian to show you a directory of
trade associations. Associations provide a valuable network of resources to
their members through publications and services such as newsletters,
conferences and seminars.
94
- Books
Many guidebooks, textbooks and manuals on small business are published
annually. To find the names of books not in your local library check "Books In
Print", a directory of books currently available from publishers.
- Magazine and newspaper articles

Business and professional magazines provide information that is more
current than that found in books and textbooks. There are a number of
indexes to help you find specific articles in periodicals.
In addition to books and magazines, many libraries offer free workshops,

lend skill-building tapes and have catalogues and brochures describing
continuing education opportunities.
95
Government and State Websites
United States Government - http://www.firstgov.gov/
Individual US state websites
Alabama Alaska
http://www.alabama.gov http://www.state.ak.us
Arizona California
http://www.az.gov http://www.ca.gov
Colorado Connecticut
http://www.colorado.gov http://www.ct.gov
Delaware Florida
http://www.delaware.gov http://www.myflorida.com
Georgia Hawaii
http://www.georgia.gov www.ehawaiigov.org
Idaho Illinois
http://www.accessidaho.org http://www.illinois.gov
Indiana Iowa
http://www.state.in.us http://www.iowa.gov
Kansas Kentucky
http://www.accesskansas.org www.ky.gov
Louisiana Maine
http://www.state.la.us http://www.state.me.us
Maryland Michigan
http://www.maryland.gov http://www.michigan.gov
Minnesota Mississippi
www.governor.state.mn.us http://www.mississippi.gov
Missouri Montana
http://www.state.mo.us http://www.state.mt.us
Nebraska Nevada
http://www.nebraska.gov http://www.nv.gov
New Hampshire New Jersey
http://www.state.nh.us http://www.state.nj.us
New Mexico New York
http://www.state.nm.us http://www.state.ny.us
North Carolina North Dakota
http://www.ncgov.com http://discovernd.com
Ohio Oklahoma
http://www.state.oh.us http://www.ok.gov
Rhode Island South Carolina
http://www.state.ri.us http://www.myscgov.com
South Dakota Tennessee
http://www.state.sd.us http://www.state.tn.us
Texas Utah
http://www.state.tx.us http://www.utah.gov
Vermont Virginia
http://vermont.gov http://www.virginia.gov
96
Index
CIC · 93
Column
A Letter · 4
Columns · 5
Account Payables Adding · 5
Aging · 61
Adding/Removing
Account Receivables Warning · 5
Aging · 61
Removing · 5
Accounts Payable
Consultants · 67
Operational Plan · 61
Consumer Information Center · 93
Accounts Receiveable
Consumer Product Safety Commission
Operational Plan · 60 · 93
Advisory Support · 68
Cover Sheet · 11
Aging Elements · 11
Payables · 61
In Excel · 11
Receivables · 61 In Word · 11
Agreement
Sample · 13
Non-Disclosure · 8
CPSC · 93
Allowances
Customizing · Also See
Budget · 31
Spreadsheet:Customizing
Analysis Customizing the Business Plan · 2
Break-Even · 72, 76
Assumptions
Financial · 72 D
DOC · 93
B DOL · 94
Balance Sheet
Opening Day · 76 E
Balance Sheets · 71
Board of Advisors · 67 EPA · 94
Board of Directors · 67 Excel
Break-Even Analysis · 72, 76 Help · 5
Completing Excel Spreadsheet
In Excel · 77 Customizing · 2
In Word · 77 Executive Summary · 14
Budget · See Spreadsheet:Personal Basics · 14
Budget In Excel · 18
Promotional · 48 In Word · 18
Budget Allowances · 31 Mission Statement · 16
Business Philosophy · 23 Sample · 19
C F
Capitalization · 31 FDA · 94
Cash Flow · 72 Federal Publications · 92
Projected · 74 Financial Assumptions · 72
Cell · 4 Financial Plan · 71, 73
Charts Balance Sheets · 71
Changing Information · 6 Basics · 71
97
Break-Even Analysis · 72, 76 Incorporation · 89

Cash Flow · 72 Information Resources · 91
Financial Assumptions · 72 Inventory
Financial Ratios · 72 Operational Plan · 60
Income Statements · 71 IRS · 94
Income Structure · 72
Investment Objectives · 72
Sample · 78 L
Source of Funds · 72
Legal Description · 22
Twelve Month Loss Projection · 73
Legal Environment
Twelve Month Profit Projection · 73
Use of Funds · 72
Legal Form of Ownership · 24
Financial Projections · 54
Financial Ratios · 72 Legal Forms of Ownership · 87
Incorporation · 89
Forecast
Sales · 54 Partnership · 88
Proprietorship · 87
Formulas
Adding · 5 Location
Changing · 5
Proposed · 49
Funds
Source · 72
Use · 72 M
Future Goals · 22
Management · 66
Board of Advisors · 67
G
Board of Directors · 67
General Company Description · 22 Consultants · 67
Basics · 22 Team · 66
Current Status · 22 Management and Organization
Future Goals · 22 Sample · 69
History of the Company · 22 Management and Organization Section
Legal Description · 22 Completing
In Excel · 24 In Excel · 68
In Word · 24 In Word · 68
Mistakes to Avoid · 23 Manager · 66
Sample · 25 Market
Government Websites Niche · 48
U.S. Federal · 96 Strategy · 48
U.S. States · 96 Target · 41
Market Research
Basics · 44
H How · 45
Primary Market · 45
HHS · 93 Secondary Market · 45
History of the Company · 22 Why · 44
Marketing Plan · 41
Basics · 41
I In Excel · 50
In Word · 50
Illustrations · 6
Primary Sources · 41
Income Objectives · 72
Program · 41
Income Statements · 71
Sample · 51
Income Structure · 72
Secondary Sources · 41
98
Sections · 42 Partnership · 88
Competition · 47 Proprietorship · 87
Customers · 47
Economics · 45
Marketing Strategy · 48 P
Niche Market · 48
Pricing · 49 Pages · 4, 5
Product · 46 Renaming · 5
Promotion · 48 Viewing · 4
Promotional Budget · 48 Partnership · 88
Proposed Location · 49 Payables
Marketing Program · 41 Aging · 61
Mission Statement · 16 Personal Budget · See
Basics · 16 Spreadsheet:Personal Budget
Mutual Non-Disclosure Agreement · 8 Personal Evaluation · 9
Net Worth · 9
Personnel
N Operational Plan · 59
Philosophy
Narrative Business · 23
Profit-Loss · 73 Pictures
Projected Cash Flow · 75 Inserting · 5
Start-Up · 34 PowerPoint
Net Worth · See Personal Demonstrations · 82
Evaluation:Net Worth Pricing · 49
Non-Disclosure Agreement · 8 Structure · 26
Non-Qualified Start-Up Cost · 31 Primary Market Research · 45
Print · Also See Spreadsheet:Page
Tab:Print Preview
O Product
Benefits · 46
Objectives
Features · 46
Income · 72
Product Overview · 27
Opening Day Balance Sheet · 76
Production
Operational Plan · 57, 58, 61
Accounts Payable · 61
Products and Services Description · 26
Accounts Receivable · 60
Basics · 27
Basics · 57
In Excel · 28
Completing · 61
In Word · 28
In Excel · 61
List · 26
In Word · 61
Sample · 29
Inventory · 60
Professional Support · 68
Legal Enviroment · 59
Profit Projection · 73
Location · 59
Profit-Loss Narrative · 73
Personnel · 59
Profit-Loss Statement · 73
Production · 58
Projected Cash Flow · 74
Sample · 63
Narrative · 75
Suppliers · 60
Projections
Organization · 66
Financial · 54
Organizational Chart · 66
Promotional Budget · 48
Ownership
Proposed Location · 49
Legal Form · 24
Proprietorship · 87
Legal Forms · 87
Publications
Incorporation · 89
99
Federal · 92 Small Business Development Centers ·

92
Small Business Institutes · 92
Q Source of Funds · 72
Spreadsheet
Qualified Start-Up Cost · 31
Customizing · 2
Header/Footer Tab · 2
R Changing the Footer · 2
Changing the Header · 2
Ratios Margin Tab · 2
Financial · 72 Net Worth · 9
Receivables Page Setup · 2
Aging · 61 Page Tab · 2
Resources Orientation · 2
Government · 92 Paper Size · 2
Information · 91 Print Preview · 2
Row Personal Budget · 9
Number · 4 Sheet Tab · 3
Rows · 5 Changing the Color of Text · 3
Adding · 5 Changing the Font · 3
Adding/Removing Spreadsheet Cell · See Cell
Warning · 5 Spreadsheet Columns · See Columns
Removing · 5 Spreadsheet Pages · See Pages, See
Pages
Spreadsheet Rows · See Rows
S Spreadsheet Tabs · See Pages, See
Pages
Sales Forecast · 54 Start-Up · 33
Excel · 55 Checklist · 33
Sample Narrative · 34
Cover Sheet · 13 In Word · 34
Executive Summary · 19 In Excel · 34
Financial Plan · 78 Period · 35
General Company Description · 25 Start-Up Cost
Management and Organization · 69 Excel · 36
Marketing Plan · 51 List · 35
Operational Plan · 63 Start-Up Costs · 31
Products and Services Description · Budget Allowances · 31
29 Elvaluating · 32
Start-Up Narrative · 37 Non-Qualified · 31
Samples · 6 Qualified · 31
SBA · 91 Start-Up Narrative
SBA Business Development Programs · Sample · 37
92 State Government Websites · 96
SBDCs · 92 Statement
SBIs · 92 Profit-Loss · 73
SCORE · 92 Suppliers
Secondary Market Research · 45 Key · 60
Service Corps of Retired Executives · Operational Plan · 60
92 Support
Service Overview · 27 Advisory · 68
Small Business Administration · 91 Professional · 68
100
T U.S. Department of Treasury · 94

U.S. Environmental Protection Agency
Tabs · See Pages, See Pages · 94
Target Market · 41 U.S. Food and Drug Administration ·
Basics · 43 94
Demographics · 43 U.S. Government Recourses · 92
Geographic · 43 U.S. Government Website · 96
Primary Sources · 41 U.S. Small Business Administration ·
Secondary Sources · 41 91
Size · 43 U.S. State Government Websites · 96
Twelve Month Loss Projection · 73 USDA · 93
Twelve Month Profit Projection · 73 Use of Funds · 72
U W
U.S. Department of Agriculture · 93 Word® Option · 5

U.S. Department of Commerce · 93 Worksheets
U.S. Department of Health and Human Adding/Removing · 3
Services · 93 Warning · 3
U.S. Department of Labor · 94
101
Notes:
102
Notes:
103
Notes:
104

The Business Plan For Your Coffee Shop: Fourth Edition

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

The Business Plan For Your Coffee Shop: Fourth Edition

Uploaded by

Copyright:

Available Formats

The Business Plan for Your Coffee Shop

Other Titles of Interest from

More Coffee Shop Related Products

• Start Your Own Coffee Shop

Top Business Books

• New Customer Development Program

Business Talk™ Newsletter

For more information, go to www.125aday.com to

The Business Plan for Your Coffee Shop

Starting, operating and managing a coffee shop is a

This eleven step business plan will help you create

Be sure that you have all of the components; the

125aday.com Publishing Company, Inc.

Publisher: 125aday.com Publishing Company, Inc.

This publication is designed to provide accurate and authoritative information in

Copyright 2004-2008 by 125aday.com Publishing Company, Inc.

All rights reserved.

The Business Plan for Your

Mistakes to Avoid ...................................................................................42

Step Ten ..................................................................................................... 66

Attachment Two ......................................................................................... 91

This business plan is carefully structured to take you a step at a time. In

Important Notes and Tips

Let’s get started.

Step One – Your Personal Evaluation on page 7

Customizing the Business Plan

Changing the Page Setup

The Page Tab

The Margins Tab

The Header/Footer Tab

Changing the Header

After changing the header, click OK to save your changes.

Changing the Footer

The Sheet Tab

Here you can adjust and set the:

Changing the Font and Font Size

Changing the Color of the Text

Adding or Removing Worksheets

You can delete a worksheet by clicking on Edit, Delete Sheet.

Viewing the Pages in the Spreadsheet

Rows, Columns and Cells

While we have attempted to include everything necessary in these

Renaming the Pages in the Spreadsheet

Adding or Removing Rows or Columns

Changing the Formulas

Changing or adding formulas is not extremely difficult in Excel®. However, it

Samples and Illustrations

In each step of the business plan, we provide you either a sample or an

Sample Illustration Excel

Changing Chart Information

We have changed the axis information to increments of $10,000 up to

How to change entries on the X-axis or Y-axis:

Mutual Non-Disclosure Agreement

A non-disclosure agreement (NDA) can send up red flags to your intended

We have chosen to include a Confidentiality and Recognition of Risks

Your Personal Evaluation

Your Net Worth

Instructions on How to Complete the Excel Spreadsheets

Your Personal Budget

Why This Information Is Important

Figure 1-1. Income Differential

Figure 1-2. Income Differential