Business Plan

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PROJECT
IN
T.L.E
SUBMITTED TO:
Mr. Jeson Lagera
SUBMITTED BY:
Berlin Valleja
4th Year- Modesty

Executive Summary
Introduction
Coffee Shop and Sweets Bakery (CSSB) is a start-up coffee and bakery retail establishment located in southwest Washington. Owned and managed by Berlin Valleja. CSSB expects to catch the interest of a regular loyal customer base with its broad variety of coffee and pastry products. The company plans to build a strong market position in the town, due to her industry experience and mild competitive climate in the area. CSSB aims to offer its products at a competitive price to meet the demand of the middle-to higher-income local market area residents and tourists. Products and Services

CSSB offers a broad range of coffee and espresso products, all from high quality Columbian grown imported coffee beans. CSSB caters to all of its customers by providing each customer coffee and espresso products made to suit the customer, down to the smallest detail. The bakery provides freshly prepared bakery and pastry products at all times during business operations. Six to eight moderate batches of bakery and pastry products are prepared during the day to assure fresh baked goods are always available. The Market

The retail coffee industry in the U.S. has recently experienced rapid growth. The cool marine climate in southwest Washington stimulates consumption of hot beverages throughout the year. CSSB wants to establish a large regular customer base, and will therefore concentrate its business and marketing on local residents, which will be the dominant target market. This will establish a healthy, consistent revenue base to ensure stability of the business. In addition, tourist traffic is expected to comprise approximately 35% of the revenues. High visibility and competitive products and service are critical to capture this segment of the market. Financial Considerations

CSSB expects to raise $110,000 of its own capital, and to borrow P100, 000 guaranteed by the SBA as a ten-year loan. This provides the bulk of the current financing required. CSSB anticipates sales of about $491,000 in the first year, $567,000 in the second year, and $655,000 in the third year of the plan. CSSB 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 $13,000 in year 1, $36,000 by year 2, and $46,000 by year 3. The company does not anticipate any cash flow problems. 1.1 Mission

CSSB aims to offer high quality coffee, espresso, and pastry products at a competitive price to meet the demand of the middle- to higher-income local market area residents and tourists. 1.2 Keys to Success

Keys to success for CSSB will include:
Providing the highest quality product with personal customer service. Competitive pricing.
Company Summary
CSSB is a bakery and coffee shop managed by Berlin Valleja. She represents sales/management and finance/administration areas, respectively. She will provide funding from her own savings, which will cover start-up expenses and provide a financial cushion for the first months of operation. A ten-year Small Business Administration (SBA) loan will cover the rest of the required financing. The company plans to build a strong market position in the town, due to her industry experience and mild competitive climate in the area.

2.1 Start-up Summary
CSSB is a start-up company. Financing will come from her capital and a ten-year SBA loan. The following chart and table illustrate the company's projected initial start-up costs.

Start-up Requirements
Start-up Expenses
Legal$3,000
Premise renovation$20,000
Expensed equipment$40,000
Other$1,000
Total Start-up Expenses$64,000
Start-up Assets
Cash Required$70,000
Other Current Assets$12,000
Long-term Assets$65,000
Total Assets$147,000
Total Requirements$211,000

Start-up Funding
Start-up Expenses to Fund$64,000
Start-up...
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