Table of Content Executive Summary1

1.1 Objective....1 1.2 Key to Success...1 1.3 Mission...2 1.4 Critical Evaluation.2

Company Summary.2
2.1 Company Ownership..2 2.2 Start-up Summary...2-4 2.3 Company Location and Facility..5 2.4 Critical Evaluation...5

Products5
3.1 Competitive Comparison.6 3.2 Future Products ...7 3.3 Sales Literature7 3.4 Critical Evaluation.

Market Analysis Summary...7

4.1 Market Segmentation...7 4.2 Target Market Segmentation....8 4.3 Industry Analysis..8 4.4 Competition..8 4.5 Critical Evaluation8

Strategy and Implementation Summary....9

5.1 Competitive Edge..9 5.2 Marketing Strategy9 5.3 Sales Strategy........9 5.4 Sales Forecast10 5.5 Critical Evaluation.10

Management Summary.10
Critical Evaluation...10

Financial Plan....11 Conclusion.11 References.12

Executive Summary
Coffee and Tea Paradise (CTP) is a place to visit by local coffee addicts and it is located in Penang. Coffee and Tea Paradise is special in coffee and tea beverages retailer. This is food and beverage service industry that provide hot and cold beverages in an efficient time and way. CTP provides its customer to order their choice from well trained Barista with many varieties of beverages such as freshly dark or light brewed coffee, ice-blended coffee or coffee free and flavored coffee drinks. CTP offers its customer with the richest, finest and fully well balanced hot and cold beverages. Besides that, there are also coffee cakes, tarts, cookies, freshly baked muffins and pies. In addition, CTP also provides hot chocolate and vanilla and additional soft drinks such as fresh orange, apple, lemon and mango. Furthermore, there will offer a promotion drinks monthly to gain attraction from the customer. This coffee bar is a suitable place to meet your friends or business partners to have a discussion. CTP provides free books and magazine for the customers as well as free internet service for customers to enjoy. Besides that, it becomes a place for customer to have privacy and to release stress and tension while having a cup of fresh coffee. Coffee and Tea Paradise is a sole trader business owned and operated by (founder) Muhammad Rais b. Musaddik Rayisi. Furthermore, to obtain publicity and media support as well as customer loyalty and trustworthy, almost 10% of revenue will be donated to local charities and welfares. The product will be kept fresh by minimizing the stock in hand and this benefit from price drops.

1.1Objective
Become BEST destination for coffee with high quality of coffee blends. Maintaining a net profit at least 20% of sales for the first year and increasing for the following years. Create good relations with customer by providing excellent customer service and sensitive to the needs of the customer.

1.2Keys to Success
The keys to success will be: In a strategic location which is visible, easy to access and attention of students and businesses. Best customer service and coffee preparation technique from well trained and friendly Barista.

High quality of products which exceeds customer expectations. Good reputation through word of mouth advertising and charity giving to welfare.

1.3Mission
Coffee and Tea Paradise mission is to offer the best coffee and tea selection to customers in an efficient time and to be coffee shop choice for the local community, students and tourist who visit the city. We also provide high quality of food and beverages which is affordable that our customer can enjoy without any discrimination between upper class and lower class society. Besides that, CTP has interior design that relaxes the mind and spirit of customers in a way that will make them attract to such unique design while enjoying a cup of fresh coffee or cakes. CTP assists the customers to release their stresses through strong customer service from our friendly staff and high quality of products. Furthermore, we also are supporting charity activities by donating to the welfare of the local community from our contribution.

1.4Critical Evaluation
Executive summary of business plan should include with the product description, target market, competitive comparison, management structure and financial plan. This will make the investor know about the business well. (Boyd, N.G. and Vozikis, G.S.,1994)

COMPANY SUMMARY
Coffee and Tea Paradise is a coffee beverage retailer that provides hot and cold beverages to customers in an efficient time. It is located in the heart of shopping (Prangin Mall) and entertainment which will be attention of a lot people. CTP is 2100 square feet coffee outlet with a unique interior design that creates good environment for customers to relax, work and socialize. We are offering different flavored coffee drinks than other coffee outlet with high quality at affordable price to satisfy customer needs.

2.1Company Ownership
Coffee and Tea Paradise is a sole trade business which is wholly owned by the founder Muhammad Rais b. Musaddik Rayisi.

2.2Start-up Summary
The funding for this company comes from two major sources which are from owner investments and loan from bank. The owner has contributed $70,000 while the remaining $30,000 to cover start-up expenses came from bank loan under long term loans. The table below summarizes the start-up assumptions.

Long term assets Cake chiller Milk cooler Refrigerator Ice Machine Espresso Machine Coffee Grinder (2) Cash register (2) Service counter Condiment counter Shelving

($) 10,000 1,500 3,500 2,000 8,000 2,300 12,000 7,700 4,600 5,400

Total Long term assets

57,000

Short term assets Tables & Chairs Furnishings Carpets

($) 7,000 2,500 1,500

Total short term assets

11,000

Start-up Requirements Start-up Expenses Legal Computer & Printer Insurances Licenses Office equipments Accounting Advertising Painting & Lighting Telephone & Fax Dishwasher Others ($) 3,000 2,000 1,500 2,500 1,000 1,000 2,500 5,300 200 3,000 3,000

Total Start-up Expenses

25,000

Start-up Assets Cash required Start-up Inventory Other Current Assets Long term Assets

($) 2,000 5,000 11,000 57,000

Total Start-up Assets Total Requirements

75,000 100,000

2.3Company Locations and Facilities

The Coffee and Tea Paradise will be located on the ground floor of Prangin Mall shopping complex. It is the third shop after the main entrance gate and is 2100 square feet which previously occupied by gift shop. This coffee outlet has a kitchen, toilet and indoor and outdoor seating area with 24 chairs and 6 tables. Outdoor seating area is for smoking area while indoor is air-conditioned. There is also available free magazines and newspaper for customers to read. Besides that, a small space is provided for entertainment function such as small stage for live band performances. The outlet provides dine-in and carry-out food and beverages. After the sundown at nighttime, there will be lightings to create fantastic environment.

2.4Critical Evaluation
Company must not be too long but must be simple and clear. This is to attract the readers and potential investor. Good company background gives good impression about the company. Start-up summary tells how much fund needed to run the business and decides which cost is optional. (Elkins, L.,1996)

Products
Coffee and Tea Paradise provides high quality coffee beverage at affordable price in the area to its customer with strict procedures and guidelines in efficient time. Besides that, CTP offers freshly baked pastries, cakes and sandwiches. At morning breakfast will be served together with a cup of coffee for free. There will be a live band entertainment on weekend. Coffee of the Day Mocha Blend & Sumatra Dark Name Espresso Espresso Machiato Cappuccino 1.50 2.00 1.70 2.50 Regular-$1.40 Large-$1.70 Regular ($) Large ($)

Americano Caf Latte Flavored Espresso Dutch Choco Vanilla Latte Dark Choco Latte White Choco Latte Choco Cappuccino Hot Beverage Hot Choco Choco Hazel Caramel Vanilla Coffee Ice-Blended Coffee Vanilla Dutch Choco Dark Choco White Choco Black Forest Fruit Ice-Blended Apple Kiwi Lemon

1.80 2.00

2.50 2.30

2.60 2.60 2.60 2.60 2.50

3.60 3.60 3.60 3.60 3.20

2.40 2.50 2.60

3.40 3.50 3.60

2.90 2.90 2.90 3.20

3.90 3.90 3.90 4.20

2.40 2.40 2.40

3.40 3.40 3.40

Orange Peach

2.40 2.40

3.40 3.40

1)Hot Tea Selection English Breakfast, Green Peppermint, Earl Grey, Herbal and Jasmine. ($1.20) 2)Pastries Scones ($1.20), Chicken Pie ($2.00), Choco Muffin and Cheese Muffin ($1.60). 3)Sandwiches Salmon, Turkey, Beef and Ham ($5.00)

3.1Competitive Comparison
Coffee and Tea Paradise`s competition that they face are from: Convenience store. Small caf that locally owned. Blackball beverage Company that located beside CTP.

CTP makes them different from all their competitors by supporting the local community which 8% from their contributions will be donated to the charities, schools and other institutions. The CTP has a logo and it is protected by trademark laws.

3.2Future Products
Coffee and Tea Paradise main focuses is on customer expectations. CTP willing listen to customer what they looking for and react upon that. During summer season, CTP will promote more cold drinks and more hot drinks on winter season at a reasonable price. CTP looking forward to produce mug, cups and tumbler for sales with our company logo. Thus can advertise our company to more people around the world.

3.3Sales Literature
Coffee and Tea Paradise distributed 1000 of flyers in local area, local buildings and neighborhood to announce that they will be opened within a week. This can increase the company publicity and attract more customers.

3.4Critical Evaluation
Product description is important to convince buyers. Besides that, must know how to promote the product and how they benefits to the customer. Competitive comparison tells who are your competitor and must know about their strength and weakness and compare it. (OConnor, T.,1998),

Market Analysis Summary

Coffee consumption among people has shown a strong growth during a good and bad time. The market for coffee is growing and the demand for the coffee services is increasing. Besides that, most people eat outside rather than home and this suitable for their lifestyle. The money spent for eating outside compared to home has increased to 20%.

4.1Market Segmentation
Coffee and Tea Paradise main focus on its marketing strategies to reach the local people, students, local office workers, tourists and travelers who passing through the shop. This mix of customers is strong customer for the shop that helps to maintain the business throughout the year. CTP does not 100% dependant on any single of customer group. This is because there will be less students on school holidays. Besides that, chances for cross-selling high with coffee drinks and muffins or cakes.

4.2Target Market Segment Strategy

Coffee and Tea Paradise strategy is to gain attraction from customer and loyal to our brand. Almost 60,000 people lives within the area. It is only walking distance and can reach CTP by 5 minutes. We do local marketing by supporting the local community through charity donations and sports events. Furthermore, there are around 20,000 of students from nearby schools, college and university. CTP has become their attention to meet their friends and discuss about studies. CTP offers discount for students who has

student card and special coupon to redeem free drinks from CTP. Besides that, create employment opportunities for student who looking for part-time job.

4.3Industry Analysis
Coffee market is the second largest trade after oil with a $56 billion industry. The coffee industry has grown tremendously in America with a 2.5% growth rate and that country is a coffee drinking country. During rain season, people are addicted to hot drinks such as coffee and consumption on coffee increasing while during summer time people more on iced drinks. Customers depends more on quality compared to price.

4.4Competition
Coffee and Tea Paradises major competitor will be Starbuck due to its well-known name, strong financial position and marketing strategy. Starbuck good quality product with expensive price. People tend to eat out everyday with an affordable price that our company offers. CTP tend to be unique from others with good environment and high quality of products at affordable prices to expand our market in the competitive market.

4.5Critical Evaluation
Competition and buying patterns shows the competition in business and explain how to overcome this situation. Market segmentation is to reach your product to customer and market need to react accordingly what the market wants. (OHara, P.,1995),

Strategy and Implementation Summary

Coffee and Tea Paradise emphasize on two aspects which is good customer service and high quality products. Every company cannot succeed without good customer service even though the product has high quality. With good customer service can create loyal customers. Furthermore, we push our sales by setting monthly target sales.

5.1Competitive Edge

Competitive edge of Coffee and Tea Paradise: Gives more important to the quality of product. Located in strategic place in shopping mall. We have entertainment such as live band during weekends. CTP has a unique design which creates a peaceful environment for customer to release their stress. Provides decaffeinated and coffee free drinks for customer who does not like coffee.

5.2Marketing Strategy
Coffee and Tea Paradise gives important to the high level of customer service to maintain loyal customers. Besides that, we support community by fund raising for the local charities which is a kind of advertising through word of mouth.

5.3Sales Strategy
Coffee and Tea Paradise sales strategies: Set daily sales target to be achieved. Offer rewards for the staff that helps to achieve the sales. Provides training for staff to increase customer service level. Give discount for the customers who has membership card.

5.4Sales Forecast

Sales Coffee beverages Coffee beans Food and others Total Sales Direct Cost Sales Coffee beverages Coffee beans Food and others Subtotal Direct Cost of Sales

Year 1 $506,000 $78,000 $280,000 $864,000 Year 1 $380,000 $30,000 $190,000 $600,000

Year 2 $613,000 $83,000 $296,000 $992,000 Year 2 $404,000 $37,000 $200,000 $641,000

Year 3 $724,000 $95,000 $312,000 $1,131,000 Year 3 $412,000 $44,000 $213,000 $669,000

5.5Critical Evaluation
Knowing the main competitors strength and weakness of their product, future products and financial status which helps you company to perform better than others. Company should always know and get details about competitor to maintain their products and market. Sales and marketing strategy helps to attract customer and increase sales. Good planning can influences customer to buy the product. (Hisrich, R.D.,1992),

Management Summary
Coffee and Tea Paradise is owned by Muhammad Rais and has experienced as a barista before at different coffee shop. Rais runs the company with the assistance of manager, assistant manager, 2 full-time and a few part-time workers. The company practicing flat organization where everyone has the power to contributes idea or suggestion.

Critical Evaluation
Organizational structure will tells how the management of the company. Good management company will bring the company towards achievement. (Arkebauer, J.B.,1995)

Financial Plan
CTP is operating business in cash and looking to finance growth in cash flow. The requirement to open the company is less compared to other shop. The inventory in hand will be minimized to avoid price drops thus the product will be kept fresh. Pro Forma Profit and Loss Year 1 Sales Direct Cost of Sales Other Total Cost of Sales Gross Margin Gross Margin (%) $864,000 $600,000 $0 $600,000 $264,000 30.55% Year 2 $992,000 $641,000 $0 $641,000 $351,000 35.38% Year 3 $1,131,000 $669,000 $0 $669,000 $462,000 40.84%

Conclusion
Coffee and Tea Paradise utilize business plan to follow the plan systematically. Success is not guaranteed with a good business plan but its need to be achieved with creative and good effort. CTP aims to be the number one coffee shop in the city with high quality products. Besides that, CTP emphasize on customer service to build strong relation with customer. In future, CTP looking to open more branches, improvise its quality and service.

References
1. Arkebauer, J.B. (1995), Guide to Writing a High-Impact Business Plan, McGrawHill, New York. 2. Crawford-Lucas, P.A. (1992), Providing business plan assistance to small manufacturing companies, Economic Development Review. 3. Elkins, L. (1996), Tips for preparing a business plan, Nations Business. 4. Hisrich, R.D. (1992), The need for marketing in entrepreneurship, Journal of Consumer Marketing.

5. Boyd,

N.G. and Vozikis, G.S. (1994), The Influences of Self-Efficacy on the Development of Entrepreneurial Intentions and Actions. Available at: [Link] (Accessed on 2nd December 2012)

6. OConnor, T. (1998), Take the initiative to write a viable business plan, Denver Business Journal. 7. OHara, P. (1995), The Total Business Plan, New York.