Monikas Coffee Cafe

Growth Sustainable Business Plan

Executive Summary
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Monikas Coffee Cafe is the coffee shop which is planning to be started in the UK market. The
firm is planning to refresh a wide variety of people of UK every day. The weather of the country
is favorable for the business because there exists a long rainy winter that promotes that kind of
business in the region. Monikas Coffee Cafe will try to build a wide and loyal customer base
through offering an excellent coffee in a wonderful and relaxing atmosphere. The firm will be
opened in various locations of London and then into the major cities of the country. Sole
proprietorship is the ownership structure for the firm after that the firm has a plan to raise capital
from the primary market of the UK.
Monikas Coffee Cafe will deliver the best tasting coffee to its customers in the area. In order to
do so, best quality materials and carefully maintaining and following the improved preparation
process will be ensured. Fresh and new raw coffee will be imported from the Brazil and future
processed in UK. A unique and winning preparation guideline will be followed to deliver the
coffee to the customers. A more than satisfactory customer services will be provided to ensure
that the customers will be back real soon. Besides the preparation procedure, an innovative mix
of ingredients will be utilized in making the coffee.

Table of Contents
Introduction.................................................................................................................... 4
Business Plan outline, Structure and Process...........................................................................4
Proposed Future Business Plan............................................................................................ 4
Target market and customers............................................................................................... 5
Competitors of Monikas Coffee Cafe................................................................................... 5
Skills analysis of Monikas Coffee Cafe.................................................................................6
Resources required and planning.......................................................................................... 7
Finding, evaluating and selecting suitable sources of funds.........................................................8
Critical Paths for the project............................................................................................... 9
Types of organization and management information system......................................................10
Vision of Monikas Coffee Cafe......................................................................................... 10
Conclusion................................................................................................................... 10

Introduction
Business plan is the blueprint for any business which depicts some building blocks of the firms
and helps in successful completion of successful firm (Stutely, 2002). Business idea or plan
summarizes the whole businesses in one place describing each critical phases of the business
(Abrams, 1993). I am trying to start a firm named Monikas Coffee Cafe in the UK market.
Business plan of the firm is the subject matter of this report.
Business Plan outline, Structure and Process
UK is one of the busiest countries in the world and people of the country are on the run most of
the day. Monikas Coffee Cafe is the coffee shop which is planning to be started in the UK
market. The firm is planning to refresh a wide variety of people of UK every day. The weather of
the country is favorable for the business because there exists a long rainy winter that promotes
that kind of business in the region. Monikas Coffee Cafe will try to build a wide and loyal
customer base through offering an excellent coffee in a wonderful and relaxing atmosphere. The
firm will be opened in various locations of London and then into the major cities of the country.
Sole proprietorship is the ownership structure for the firm after that the firm has a plan to raise
capital from the primary market of the UK.
Proposed Future Business Plan
Monikas Coffee Cafe will deliver the best tasting coffee to its customers in the area. In order to
do so, best quality materials and carefully maintaining and following the improved preparation
process will be ensured. Fresh and new raw coffee will be imported from the Brazil and future
processed in UK. A unique and winning preparation guideline will be followed to deliver the
coffee to the customers. A more than satisfactory customer services will be provided to ensure
that the customers will be back real soon. Besides the preparation procedure, an innovative mix
of ingredients will be utilized in making the coffee. The Cafe will deliver different flavors of
coffee according to the taste of the different customers along with their unique preparation
procedure. The firm will target the middle and lower middle class people of the UK. This market
segment represents large customers for the firm and the firm is confident it can serve the segment
and gain customer satisfaction. The organization will open its first cafe in some viable place in
London and then major cities will be critically considered. The firms trade license will be
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collected before the inauguration from the concerned authority. When the need for further
financing will arise, the firm will collect necessary money by issuing bond in the money market
and transferred to the private sector. Unique preparation procedure of Coffee will be subject to
the intellectual property rights (IPR) and will be protected from any possible harm.
Target market and customers
Middle and Lower middle class of the population of the UK will be the target customers of
Monikas Coffee Cafe. The firm will deliver mainly two different priced coffees, one for the
middle class which will be premium priced and another for the lower middle class in a relatively
lower price. Those customers will be end-user of Monikas Coffee Cafe. It will be B2C where
the business will directly deal with the customers. Those customers will directly buy the product
of Monikas Coffee Cafe. The firm will provide the best tasted coffee which will be made by
following unique preparation procedure at a best price. That will be the Unique Selling
Proposition (USP) of Monikas Coffee Cafe. The product will refresh and revive the customers
and deliver a good and relaxing time.
The average income of people of UK shows their is large part of the people exists in the middle
and lower middle class which is the target customers of Monikas Coffee Cafe. The firm will
target men and woman of any ages from that target customers. The firm is confident enough that
it will have capability to serve that target customers because the product will be better
positioned.
Competitors of Monikas Coffee Cafe
The coffee market in the UK is very competitive as some major players are doing business in the
country (Walls and Minocha, 2010). Costa is the market leader which has almost 2000 shops in
the UK market and still growing at a high percentage. Besides Starbucks is also doing very well
and are currently holding a significant portion of the market. Costa Coffee is covering 42.8%
share of the whole market. Starbucks has almost 760 shops in the UK and holding 20.9% of the
coffee market. Caffe Nero is also a giant in the UK coffee market as it has almost 550 outlets in
the UK and its market share stands at 14.6%. Besides those, some other players like SSP, Wild
bean cafe, M&S cafe, Coffee republic, AMT coffee, Muffin break, Thomtons Cafes, Love coffee,
Boston tea party, Cafe Ritazza are doing business in the UK market (Lipczynski, 2008). Despite
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that intense competitive landscape, Monikas Coffee Cafe is confident that it can compete in the
market. Because it thinks it has a good business plan with some innovative feature like unique
preparation procedure of coffee. Besides it is not going to target the whole UK coffee market
rather carefully serve the middle and lower middle class segment.
Skills analysis of Monikas Coffee Cafe
Monikas Coffee Cafe is proposed to be started as a sole proprietorship business in the market.
There are various types of skills needed in a new startup like Monikas Coffee Cafe. Those skills
that are crucial in a new business are discussed below:
1) Communication skills: Communication of ideas, instructions and decisions between the
boss and subordinates is one of the most important skills around (Abrams, 1993).
2) Time management and organization: properly management of time and the firm will drive
the firm towards the accomplishment of the goals of the firm and success (Lipczynski,
2008).
3) Goal setting: It is a very important skill because future standing of the firm is affected by
the goals set by the firms owners or management.
4) Delegating: Additional skillful employees should be kept around to test the rightfulness
of every decision.
5) Presentation skills: Communication of the decisions and ideas to the staffs is regarded
one of the most important skills (Daniels and Lee, 1998).
6) Innovation skills: Innovation skills in a new business are must as those add some extra
value and the firm can hold some competitive advantage (Pettigrew and Fenton, 2012).
7) Passion and determination: It is needed in the darkest time of the business and is
considered as a very useful in going forward as well as resolving critical problems.
8) Desire to learn: A new business should learn new things like competitive landscape
change and new opportunity (Blackwell, 2008).
Most of those skills are present in possession of me as an owner of Monikas Coffee Cafe. I have
a good communication and presentation skills, have a clearly set goal, desire to learn, innovation
and time management skills. Besides I have a B.B.A degree on management which will help me
to take important decision. I have a work experience of one and a half years in a renowned coffee
shop from that I gathered valuable expertise. Despite everything, I have no real business
experience for that I am going to take helps and consultancy from a consultancy firms and other
concerned individuals.
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Resources required and planning

Some assumptions are made for the financial plan of the proposed business. Those are stated
below:
Sl. No
1.
2.
3.

Assumptions
Current interest rate
Long-term interest rate
Tax rate

Year-1
10%
10%
25.42%

Year-2
10%
10%
25.42%

Year-3
10%
10%
25%

Table 1: Assumptions regarding the business plan

Source: (Author)

A forecasted profit and loss account is carefully prepared for the Monikas Coffee Cafe for the
next 3 years.
Particulars (in Pound Sterling, )
Revenue
Less: cost of goods sold
Gross profit
Less: selling & administrative expenses
Net profit

2016
500000
300000
200000
75000
12500
0

2017
550000
330000
220000
82500
13750
0

2018
600000
360000
240000
90000
15000
0

Table 2: profit and loss account regarding the business plan

Source: (Author)

Cash flow is an important statement for any firm and my proposed firm is not an exception here.
Particulars

2016

2017

2018

125000

137500

150000

Depreciation and amortization

10000

10000

10000

Accounts payable and accrued expenses

-50000

-50000

-50000

Accrued payroll and related expenses

-10000

-10000

-10000

Deferred revenue

10000

10000

10000

Net cash provided by operating

activities
Cash flows from investing activities

85000

97500

110000

Cash flows from financing activities

50000

Cash flows from operating activities

Net earnings (loss)

Total Cash Flows

85000

97500

160000

Table 3: Cash flow statement of the business plan

Source: (Author)

160000
140000
120000
100000
80000
60000
40000
20000
0
2016

2017

2018

Figure 1: Yearly Cash flow chart of the business plan

Source: (Author)

A list of required assets is stated below for the Monikas Coffee Cafe.
1)
2)
3)
4)
5)
6)

Espresso equipment along with special grinder, tamp, metal jugs etc.
Coffee equipment like coffee brewers, good coffee mugs etc
Good Furniture
Electrical and plumbing needs
Brand names
Copyrights etc

Finding, evaluating and selecting suitable sources of funds

There are several sources of funds available for the proposed firm from those every source is not
viable (Stutely, 2002). The startup will need 50,000 for the preliminary phase. 60% of the total
funds will be used for the infrastructural needs like leasing a shop, buying equipment and

furniture etc. 20% will be used for the net working capital and rest will be used team
development and advertisement. Own source is the first source of funds. Besides bank loan, loan
from friends are some alternative source of funds. 80% funds will be sourced from mu own bank
account and rest will be collected from the friends. That will give the firm a tax advantage that is
very crucial for a startup like Monikas Coffee Cafe.
Critical Paths for the project
Critical path is probably the most useful tools project management offers for the managing
resources in a dynamic environment (Bender, 2009). Here, critical path for the proposed startup
is stated below:

Name of the task

Task

Precedent

Time

Permission of the business

Collecting funds
Team formation
Equipment and furniture

A
B
C
D

task
A
A
B

(weeks)
7
1
2
4

purchase
Decoration
Starting the site
Promotional campaign
Launching new outlets

E
F
G
H

C
D
E&D
F&G

2
2
1
2

Table 4: Critical path for the project

Source: (Author)

Task-B
(1)

Task-D
(4)

Task-F
(2)
Task-H
(2)

Task-A
(7)
Task-C
(2)

Task-E
(2)

Task-G
(1)

Figure 2: Critical path for the project

Source: (Author)

Critical path for the startup is A-C-E-G-H and it takes 14 weeks to establish the coffee shop.
Gantt chart for the project is depicted below:

Name of the task

1 2 3 4

5 6

7 8 9 1

11 1

14

Permission of the business

Collecting funds
Team formation
Equipment and furniture
purchase
Decoration
Starting the site
Promotional campaign
Launching new outlets
Figure 3: Gantt chart for the project
Source: (Author)

Types of organization and management information system

The firm will place enough control system to measure its performance in order to match with the
goals set initially. As the firm initially is owned and managed by me, its decision making power
stands with me as well and necessary instruction, decisions, ideas will be communicated to the
subordinates directly. Performances of the firm will be judged according to the key performance
indicators (KPI) (Blackwell, 2008). Here, performance of the firm is compared with the
preliminary set goals and standards.
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Vision of Monikas Coffee Cafe

Vision of the firm will be to enhance the comfort of the mass and to support the community we
serve. According to this vision, the firms mission will be to serve every customer better than
other competitors and enhance their satisfaction. Future of the business is much clear from the
current time line as I have a clearly defined business plan and a promising market to serve.
Conclusion
A successful business completes those stages described in the report more or less. Monikas
Coffee Cafe will be a successful startup hopefully because those phases of the business plan will
be carefully completed time to time. I am confident enough to see Monikas Coffee Cafe as one
of the market leaders in the near future.

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