Business Opportunity Project
Instructor: Emanuel Errico
May 13, 2013
Business Opportunity Project
My business idea is a new coffee shop and I am naming it “MAGGIE’S CAFÉ”. It will be located on 6800 Watt Ave in Sacramento, CA. “Much like choosing a form of ownership and selecting particular sources of financing, the location decision has far-reaching and often long-lasting effects on a small company’s future (Zimmerer 515)”. “Entrepreneurs who choose their locations wisely, with their customers’ preferences and their companies’ needs in mind (Zimmerer 515)” have the upper hand and are more likely to succeed. As the sole proprietor I will run the place myself for the first year so I can “pay myself first” by committing to setting aside a portion of my money to a savings before meeting my financial obligations (Andrews, J. 2008). The location I selected is highly visible, a large customer traffic because it is in a mall with restaurants, grocery stores, nail and hair salon, and adequate parking with an excellent reputation. The people are a diverse crowd. The best thing I found is there are two locations with space available for leasing and the next coffee shop is about three miles away which would give me the competitive advantage. Sacramento is located in Northwest California and it does not snow here, it attracts a high volume of diverse people from many cultures, ages and best of all coffee lovers! Another benefit is the transportation networks, it is in a main street with four intersections and there are both commercial and residential properties surrounding the mall with bus stops and a high volume of motorist, cars, motorcycles, bicyclist and foot traffic to the area. I believe the café would attract a high volume of people especially since it will have WiFi internet access for students to stop and do their homework while having something to drink. I plan to sell both hot and cold beverages since the summers here are very hot and people will want to stop in to cool off in the central air and chill with friends and family. MANAGEMENT SECTION
The first year I plan to operate the business alone but my dad said he would help me around the café whenever he can. He gets pretty bored I believe he will be around the majority of the time. For an 80 year old man he is healthy and loves to keep himself busy around the house by mowing the lawn, taking walks around the block with the dogs, even though we have a huge backyard and the dogs are half pug and half Chihuahua. The financial plan will detail how I plan to go from one two employees (myself and a janitor) to three or four employees by the end of the third year. I will own and operate the company and for the first year I will also have the role of administrative support, payroll, invoice processing and buyer for the raw materials, like brand name coffee, smoothies, cold beverages and equipment to operate the business. My dad will cover the marketing and maintenance of the company. The mission statement will be “We strive to help people start their days by providing quality coffee and other beverages as well as quick, friendly and great customer service plus a clean environment to encourage their return or to stay and utilize our internet services”.
To make all this happen I need a sold marketing and financial plan that will ultimately generate an income with the least amount of risk and a positive cash flow to keep me in business. MARKETING SECTION
SWOT (Strengths, Weaknesses, Opportunities, and Threats) a marketing tool utilized to evaluate results to devise improvements to increase the effectiveness of the café (Fullmer, P. 2009). Marketing never ends and trying new ideas and adjusting old ones and sometimes taking calculated risks can make your business as successful as you want to be. Marketing is just promoting your business and it is not as difficult as I thought. I talk about opening a Café with my family...
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