Q.

Using the six components of a business plan, identify any business of your choice
and come up with a business plan.

BUSINESS PLAN
BRENDA’S COFFEE BAR

i. Table of content
ii. Executive summary
iii. Vision/mission statement and goals
a. Vision and mission statement
b. Goals and objectives
c. Key to success
iv. Company summary
a. Company background
b. Management and organization
c. Ownership structure
v. Product/ service plan
vi. Market assessment
a. Examining the general market
b. Customer analysis
c. Production
d. Market strategy
vii. Financial planning
a. Financial projections
b. Contingency plan

Executive summary

Brenda’s coffee bar is determined to become daily necessity for local coffee addicts; with the growing
demand for high quality coffee and great service. Brenda’s coffee bar will capitalize on its proximity to
Rongo university campus to build a core group of repeat customers. It will offer its customers the
best prepared coffee in the area that will be complimented with pastries.

The company will operate within a walking distance from the university. The capital will be obtained
through loans from the bank, family members and also from friends and also from retained savings
Vision

Brenda’s coffee shop vision is to become one of the best coffee shops and be part of large events and
convention around Kitere area. We also envision ourselves as one of the provides of works to the
student’s university staffs and people around the area and become a proud coffee shop

Mission

Brenda’s coffee bar will make its best effort to create a unique place where customers can socialize
with each other in a comfortable and relaxing environment while enjoying the best coffee. We will be
in the business of helping our costumers to relieve their daily stresses by providing piece of mind
through convenient location, friendly customers service and products of consistently high quality. It
will invest its profit to increase to the employee satisfaction while providing stable return to its share
holders.

Goals and objectives

Brenda’s coffee bar objective for the first year of operation are

• Become selected of the best new coffee bar in the area

• Turn in profit from the first month of the operation
• Maintain a 50% gross margin
c. Keys to success

The keys to success will be.

• Store designed that will be both visually attractive to the customer and design fast and
effective operation
• Employee training to ensure the best preparation techniques.
• Marketing strategies aimed to build a solid base of the loyal customer

Company summary

a. Company background

Brenda’s coffee bar sells coffee, other beverages and snacks in its 2000 square feet premium coffee
bar located near Rongo university

b. Management and organization

A full-time manager will be hired to oversee the daily operations of the coffee Bar. The managers
responsibilities will include managing the staff, ordering inventory, dealing with suppliers; developing
a marketing strategy and performing other daily managerial duties
Internal Analysis

We would conduct a swot analysis to identify the strengths and weakness as the business as well as
the opportunities and strengths. We would also identify the core competencies at the business the
things we can build on and the things we can control and the business unit that shows promise.

a. Product/ service

Brenda’s coffee bar will offer its customers the best tasting coffee beverages in the area. This will be
achieved by using high quality ingredients and strictly following preparations guidelines. The store
layout, menu listings and marketing activities will be focused on maximizing the sales of higher
margin espresso drinks. Along with the espresso drinks, brewed coffee ant teas, as well as some
refreshment beverages, will be sold in in the coffee bar. Brenda’s coffee bar will also be selling coffee
beans

The menu offerings will be supplemented by free books and magazines that customers can read
inside the coffee bar.

b. Customer analysis
❖ Brenda’s coffee bar will focus its marking activities on reaching the university students and
faculty, people working in offices located close to the coffee bar and on teenagers.
❖ Our market research shows that these are the customer groups that are most likely to buy coffee
products.
❖ Since coffee consumption is universal across different income categories and mostly depends on
level of higher education, proximity to Rongo University will provide access to the targeted
customer service.
c. Productions
❖ The menu of the Brenda’s coffee bar will be built around espresso-based coffee, latte, cappuccino
and American.
❖ An espresso machine forces a small amount of almost boiling water through finely ground and
compacted coffee grounds.
❖ Such espresso shots are combined with steamed milk and other additives like cocoa etc to prepare
the espresso-based beverages.
d. Marketing strategy
❖ Our market research shows that most of our clients will be University students and faculty. Our
market research shows that these are discerning customers that gravitate towards better tasting
coffee. Furthermore, a lot of college students consider coffee bars to be a convenient studying or
meeting location, where they can read or meet with peers without the necessity to pay cover
charges. This will provide a unique possibility for building a loyal client base.
❖ In order to build up its client base, java culture will use banners and fliers, utilize customers
referrals and cross promotions with other business
e. Financial Projections
❖ Brenda’s coffee bar will capitalize on the strong demand for high quality coffee. The sources of
capital for small business will be from retained savings, loan from the bank and friends and also
from family inheritance. With successful management aimed at establishing and growing a loyal
customer base, the company will see it’s net worth double in two years. Brenda’s coffee bar will
maintain a healthy 50% gross margin, which combined with reasonable operating expenses, will
provide enough cash to finance further growth.
f. Contingency
❖ This is a strategy for how the organisation will respond to important or business critical events
that knock the original plans off track-contingency plan can mitigate risk and help get back to
business as usual.
❖ The company will follow these steps to build a strong contingency plan.
❖ Make a list of risks and prioritize them according to likelihood and severity.
❖ Create a business impact analysis report
❖ Make plan
❖ Get buy in from the entire organization and be realistic about cost
❖ Test and re-assess the plans regularly