Submitted to: Submitted by: Ian Norman Lecturer BA (Hons) Business Studies
Products and Services
Legal Status and Ownership
Industry Size and Growth Projections
Key Success Factors
Marketing and Strategy
1 Executive Summary
The inspiration to start Siena Café came about after a visit to the leafy suburb of Greenford Broadway. The junction at Ruislip Road and Greenford Broadway stands as the primary shopping parade in the whole Greenford. Over the last decade this area has undergone widespread regeneration and investment with significant improvements to parking, public transportation and green space. Couple this with thousands of potential customers who visit this area everyday and you have the makings of an excellent retail environment who has attracted large retailers and banks alike. Initial assessment of the area revealed a distinct lack of upmarket branded and independent specialist coffee shops. Siena Café will attempt to move into this niche by offering high quality competitively priced Fair-Trade products and catering services.
This report was compiled with the purpose of securing finance in the amount of £30,000 over ten years at an interest rate of 11% APR. This money together with investment of another £30,000 provided by Ms Arashdeep Kaur personal saving will provide much needed injection of cash to get the business of its feet. This money will be primarily used to cover the deposit for the leasehold as well as pay for design and renovation services. The remaining amount will be used to finance initial wholesale costs of products and payroll.
The financial assessments carried out to support this proposal show that this venture will become highly profitable within a few years once we build up a large and sustainable customer base. We predict that by 2014 our after tax profits will exceed £48,000 per year.
2. Company description
The concept of Siena Café came from the success of Italian influenced restaurants and coffee houses such as Costa Coffee and Café Nero. We want to import the elegant and sophisticated style of coffee shops in ancient cities like Siena in central Italy. We feel that bringing this relaxed continental community mindset will be of real benefit to those working and living in Greenford. 2.1 Products and Services
The café is built around providing high quality drinks hence we will have the facilities to provide a wide range of coffees, teas, soft drinks and seasonal drinks such as Fruit Smoothies and ice lattes. Most drinks will come in two different sizes, regular and large. The food items we plan to supply include pastries, sandwiches and bagels, panini wraps and desserts such as cake and yogurts. Other services we aim to provide include advanced ordering available to local business, disability access and free Wi-Fi for Siena Café customers at the manager’s discretion. 2.2 Current status
The business is currently in its start phase with half the capital needed to get the design and construction services underway secured through the investment of Ms Kaur personal and family savings. The business plan will be summated to the relevant financial institutions to secure a £30,000 business loan. The design and renovation will begin around October 2010 and finish in January 2010. The plan is for the cafe to open before the start of the next tax year.
Fig. 1. Progress of various stages of the start up phase.
2.3 Legal status and ownership