BUSINESS PLAN ON ABC Café & MUSIC

Makes Your Day Musically Refreshing

OBJECTIVE,VISION,MISSION Premium meeting spot in Delhi for

music and coffee lovers. Aim is to compete with CCD and

BARISTA. Creation of unique and innovative

environment that will differentiate from local café

To provide friendly atmosphere where customer can receive quality food , service and a entertainment at a reasonable price

MANAGEMENT TEAM

As a small business, we will have a small staff of 9 members i.e

Number of waiters -3 Number of cleaner-2 Number of cook-3 Security guard-1

Our Products

• Coffee• Pasteries• Rolls• Doughnuts• Sandwiches

ENVIORNMENTAL SCANNING

Enviornmental scanningStrengths•unique concept that brings complimentary business of café & music together.•Community connection with schools and music teachers

Weakness• high competition in coffee business segment•Establish large business in music sales and rental•Need to build and establish the brand in the community

Opportunities• reducing working capital needs by pursuing revenue and cost sharing model with suppliers•Build a professional website to generate additional revenue stream•Leverage social media site such as facebook,twitter,blog to build stronger ongoing relationship with customers

Threats• current economic downturn may have negative impact on sales due to customers desire to cut down on discretionary spend•Existing online music store may take some customer away from business•Potential new entrance in the coffee shop segment may hurts sales

Manufacturing & OperationsTimmings-9am to 11pm• Extension during festive season• Area requirment 1000sq/ft• Located near market area• Presently looking for making

brand name • Total expense on machinery is

140000

MACHINERY

ITEM Qty Price(Rs)

Microwave 2 16000/-

Oven 4 32000/-

Fridge 1 12000/-

Mixer 1 3000/-

Coffe Grinder 1 2000/-

Espresso Machine 1 16000/-

Coffee Blender 2 2000/-

Musical instrument 57000/-

TOTAL 140000/-

Personnel Strategies Motivating employees by giving

award (Employee of the month) Training on speaking skills Hiring for short run –Increase in

demand can hire employees on part time basis

Hiring for long run-Huge profit results into new chains in different part of cities

MANPOWER MANAGEMENT

Particulars Nos. Monthly Salary(Rs)

Total Monthly Salary(Rs)

Total Annual Salary(Rs)

Cook 3 15000/- 45000/- 540000/-

Waiter 3 8000/- 24000/- 288000/-

Cleaner 2 4000/- 8000/- 96000/-

Security 1 5000/- 5000/- 60000/-

Total 82000/- 984000/-

Marketing Strategy

Online marketinga) Websiteb) Social mediac) Blog Offline marketinga) Local advertisementb) Event sponsership

Target market

College going (youth) Working man group House hold group

FIXED COST (ANUALLY in Rs) 

2013 2014 2015

Salary of cook 3*15000*12 540000 594000 653400

Salary of waiter 3*8000*12 288000 316800 348480

Salary of cleaner 2*4000*12 96000 105600 116160

Salary of security 1*5000*12 60000 66000 72600

Rent 15000*12 180000 198000 217800

Office expenses(Electricity, Telephone , Fax)

240000 245000 250000

Miscellaneous Expenses

3000*12 36000 36000 36000

TOTAL FIXED COST 1440000 1561400 1694440

PROJECTED INCOME STATEMENT

2013 2014 2015

Revenue 1200000 1650000 1800000

Less: Variable cost NIL NIL NIL

Contribution 1200000 1650000 1800000

Less: Fixed Cost 1440000 1561400 1694440

Profit/Loss (240000) 88600 105560

Less: Interest 12000 12000 12000

EBT (252000) 76600 93560

Less: Tax(30%) (75600) 22980 28068

EAT (176400) 53620 65492

 STARTUP EXPENSE

Cost Category Estimated cost (Rs)

Real Estate  

Building Improvements 10000

Lease Deposit 7000

Lease Payment 3500

Furniture & fixtures  

Furniture 20000

Signage 15000

Utilities  

Electric & gas deposit 2700

Telephone 500

Internet 1000

Equipments & Supplies  

Equipment purchase 140000

Office supplies 15000

Building supplies 500

Professional fees  

Legal 1000

STARTUP EXPENSE

Cost Category Estimated cost (Rs)

Accountant 500

Consulting 3000

Web site development 2000

Marketing and Advertisement  

Marketing brochures 5000

Grand opening advertising 10000

Insurance  

Business insurance 1500

Building insurance 1500

Inventory  

Startup inventory 25000

Miscellanious 10000

Total 274700

ESTIMATION OF TOTAL ANNUAL REVENUE 

2013 2014 2015

Average Bill per Table

Number of revenue entries

Revenue Number of entries

Revenue Number of entries

Revenue

300 4000 1200000 5500 1650000 6000 1800000

Implementation Schedule

Space that we have looked for is in north campus

Promotional activities ,brochures etc can be suitably designed

We will keep all necessary equipments like phone lines ,computers, stationery etc.

Connection for electricity ,water supply etc should be taken before a month to avoid last minute failure

I would start up business with family and friends

Risk Involved

Non payment by customers Maintaining sufficient staff member Risk associated with the need to

comply with laws n regulation

Solution to overcome risk

Standardization of food item Use of high quality ingredient Proper maintenance of financial

records Environmental friendly packaging