April 18, 2010
Stephen L. Fant, MA
A business plan makes assumptions and gives explanations about a prospective company’s success. It explains important details such as; what the product will be and why it is appealing to customers, how the company will overcome competition, and where the money to make, market and sell the product will come from. If assumptions regarding space, time, resources or competition are incorrect, the company will not make money and investors will lose the money they invested. For this reason an analysis must be done to determine feasibility and practicality.
The SWOT analysis technique focuses on determining internal Strengths and Weaknesses and external Opportunities and Threats. The SW portion of the analysis looks at the company’s management, financial resources, and distribution channels. The OT concentrates on external factors; such as, competition, possible growth, and market analysis. This analysis can not only help investors make a good decision, it can also help improve a business plan. Using the SWOT analysis can help the entrepreneurs pinpoint areas of weakness and correct them.
I chose to do an analysis of a coffee kiosk business plan; specifically, The Daily Perc. (TDP) This company planned to set up drive thru and mobile coffee shops. The intention was to offer high quality coffee products, made by a trained Barista, in a more convenient way. Other beverages and food would also be offered along with specialty and seasonal drinks. The competition would consist of gas stations, fast food vendors, and coffee houses. Mobile kiosks would be set up at special events such as fairs and drive thru locations would be in easily accessible locations.
The business plan for this venture seems strong. It outlines management’s qualifications and experience. The plan states that the organizational structure will not be top heavy. Charts and graphs included in the plan laid out... [continues]
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