Coffee Shop Draft Proposal

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* Coffee filters, baked goods, salads, sandwiches, tea, beverages, etc. – Php7 , 900
* Retail supplies (napkins, coffee bags, cleaning , etc.)-php 1,840 * Office supplies –php 287

* Equipment for the total amount of php 59,170:

* Espresso machine-php 6,000

* Coffee maker-php900

* Coffee grinder-php200

* Food service equipment (microwave, tosters,dishwasher,refrigerator,blender,etc.)-php18,000

* Storage hardware (bins,utensils rack, shelves, food case)-php 3,720

* Counter area equipment (counter top,sink,ice machine,etc.)-php9,500

* Serving area equipment (plates,glasses,flatware)-php3,000

* Store equipment (cash register,security,ventilation ,signage)-php13,750

* Office equipment (pc,fax/printer,phone,furniture,file cabinets)-php3,600

* Other miscellaneous expenses-php500

Funding for the company comes from two major sources-owners’investments and bank loans. Two major owners mia Carla montaña and ailen magtibay, have contributed php70,000 and php30,000 respectively. All other investors have contributed php40,000, which brings the total investments to php140,000. the remaining php30,000 needed to cover the start-up expenses and assets came from the two banks loans-a one-year loan in the amount of php10,000 and along-term (five years)loan of php20,000. both loans were secured through the bank of the Philippine islands. Thus, total start up loss is assumed in the amount of php27,680.

The following chart an table summarize the start-up assumptions.

Start-up Requirements

Start- up Expenses

Legal 1,300
Stationery etc. 500
Brochures 3,580
Consultants 3,000
Insurance 2,400
Rent 4,400
Remodeling 10,000
Other 2,500
Total Start-up Expenses 27,680

Start-up Assets

Cash Required 67,123
Start-up Inventory 142,320
Other current assets0
Long term assets 59,170
Total assets 142,320
Total reqirements 170,000

Start-up funding

Start-up Expenses to fund 27,680
Star-up assets to fund142,320
Total funding required 170,000

Assets

Non-cash assets from start-up 75,197
Cash requirements from start-up67,123
Additional cash Raised 0
Cash balance in starting date67,123
Total assets 142,320

Liabilities and capital
Liabilities
Current borrowing10,000
Long-term liabilities20,000
Accounts payable (outstanding bills) 0
Other current liabilities (interest-free) 0
Total liabilities30,000
Capital
Planned investments
Arthur Garfield70,000
James polk30,000
All other investors40,000
Additional investments requirement0
Total planned investments140,000
Loss at start-up (start-up expenses)(7,680)
Total capital 112,320
Total capital and liabilities142,320
Total funding 170,000

Competition
Having a coffee business can help improve one’s life status financially. We can gain profit fom it if we can give the best service as well as the best taste of the product to our target market. We should be competitive enough compared to those coffee shops with names not only in our country but also to the whole world. It I also important to treat our customer right so that they will become a repeating customer.

Industry analysis

Market segmentation

Hubs coffee shop will focus its marketing activities on reaching the university students and faculty, people working in offices located close to the bar and on sophisticated teenagers. Our market research shows that these are the customer groups that are most likely to buy gourmet coffee products. Since gourmet coffee consumption is universal across different income categories and mostly depends on the level of higher education, proximity to the university campus will provide access to the targeted customer audiences

The chart and table below outline the total market potential (in number of customer) of gourmet...
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