Wroof Cafe - Start Up PID template

Project Initiation Document <Wroof Cafe>

Business Start-Up PID

Wroof Café

Title: Wroof Café

Executive Summary:

Wroof Cafe is established by a group of 5 young entrepreneurs that came from

different backgrounds. The reason Force bring up this concept is because there is a

problem where dogs are not allowed to dine in the cafe along with their owner.

Nowadays, dogs have becoming a member of the family and the owner would love

to dine with their dogs whenever they are out. Thus, Force start-up the Wroof cafe,

an innovation cafe, which allow dog’s owners bring their dog dine in together in the

café. Force also saw the opportunities in this industry because based on research,

the cafe industry revenue will be expected to grow by 3.2% in 2015-2016. In this low

barrier and high competitive industry, it is crucial for Force to come out with a unique

idea. Therefore, the concept of Wroof Cafe is introduced to gain the competitive

advantages. The first outlet of Wroof Cafe will be located at Franklin Street,

Melbourne, commencing on 3rd April 2016.

The purpose of this project is that provide a relax environment for the dog’s owner

dine in with their dog. The café will provide meals for both dog owner and dog.

However there are also some rules that need the dog’s owner to follow. This cafe

offers pre-prepare fresh bakes sandwiches and pastries for the human along with

fresh ground coffee from organic bean. Wroof cafe also offers dog foods that include

canned food mixed with vegetable and home cook rice or noodle. Wroof Cafe will be

targeting customer’s age 20-28 years that stay within 5 kilometers radius from

Melbourne CBD. 100 surveys have also be conducted and it revealed that 82% of

the respondents would visit a café that allowed them to dine-in with their dogs and

73% of the respondents would purchase food for themselves and their dog.

The financial plan will be estimated for 3 years for the business, and it require a total

seed funding around $240,000 and approximately $200,000 expenses per annum.

The sales are estimated based on the quantifying method, and the first year sales

are estimated to be $350,000, which will increase 2% per annum. Based on the

calculation, the business plan will attain the break-even point in the 3 rd year and earn

approximately $50,000 profit. This also meets the SMART objective that set earlier,

which need to break-even by 31st December 2018.

Project Initiation Document <Wroof Cafe> Page i

Team Member Profile:

Currently, Mr Siau is studying his Bachelor of Degree in Victoria University. He major in Marketing and International Trade. Previously, he graduated from Diploma and Business Administration. He is good in organize time, work and people which can help to achieve the goal by using all the resources. He also experienced in handling admin work as he work as account and administrative assistant in construction company

Ms Yap is currently majoring in Marketing and International Trade in Victoria University. She has a good research, marketing and critical marketing skills which help to analysis the target market and industry. Meanwhile, she is experienced in organizing events as she was actively involved in the Victoria University Business Club (VUBC).

Mr. Choong, majoring in Accounting, Banking & Finance has outstanding analytical skill and problem solving skill. He is able to provide financial report based on the performance of the company. Also, his accounting knowledge enables him to minimise the cost undertaken by the company to achieve higher profitability.

Ms Foo is major in Accounting, Banking and Finance in Victoria University. She has a good communication skill and also a friendly person; this made her had a good relationship with many people. Moreover, she also actively involved in many club and society especially LEAP organization. In addition, she has play a good team role and able to act fast when problem arise. Other than academic, she has been into event organize field for a year. Thus, she capable to handle in event organize and financial that related to our business plan.

Ms Lee is a third year student majoring in Marketing and International Trade in Victoria University. She has good critical thinking and research skills which was easily applicable for her analysis regarding business potential, business competitors and the value proposition of the business. Moreover, she experienced in the F&B service industry. Consequently, this also helped develop her soft skills such as positive attitude, time management abilities, good communication skills, work well under pressure and good teamwork.

Project Initiation Document <Wroof Cafe> Page ii

Business Plan

Team Force

A Force That Make A Difference

Prepared By: Team Force

Date Prepared: 25th October 2015

Project Initiation Document <Wroof Cafe> Page iii

Contents

1 Business Summary....................................................................................................1

1.1 About the Company............................................................................................1

1.2 Your Products and Service.................................................................................1

1.3 The Market.........................................................................................................2

1.4 The Business Potential.......................................................................................3

1.5 Mission, Goals and Objectives...........................................................................5

1.6 Strategies...........................................................................................................5

1.7 Business Structure.............................................................................................6

1.8 Finance...............................................................................................................6

2 The Market..................................................................................................................7

2.1 Industry Profile....................................................................................................7

2.2 Competition........................................................................................................8

2.3 Market Segmentation.........................................................................................9

3 Sales & Marketing Plan............................................................................................10

3.1 Your Customers................................................................................................10

3.2 Value Proposition.............................................................................................11

3.3 Your Product or Service...................................................................................12

3.4 Promotion.........................................................................................................15

3.5 Strengths, Weaknesses, Opportunities, Threats..............................................16

3.6 Sales and Marketing Objectives.......................................................................17

3.7 Sales and Distribution.......................................................................................18

3.8 Pricing...............................................................................................................18

4 Operation Plan..........................................................................................................19

4.1 Production........................................................................................................19

4.2 Premises, Plant and Equipment.......................................................................20

5 Finance Plan.............................................................................................................21


5.1 Capital Requirements and Funding Proposal...................................................21

5.2 Financial Assumptions......................................................................................21

5.3 Cash-flow Projection.........................................................................................22

5.4 Projected Profit and Loss.................................................................................22

5.5 Projected Balance Sheet..................................................................................22

6 Risks..........................................................................................................................23

6.1 Risk Identification and Mitigation......................................................................23

7 Structure and Management.....................................................................................26

7.1 Organisational Structure...................................................................................26

7.2 Key Personnel..................................................................................................28

8 Project Plan..............................................................................................................30

8.1 Action Plan.......................................................................................................30

9 References................................................................................................................31

10 Appendices...............................................................................................................36

10.1 Appendix 1: Kepner-Tregoe Exercise on Scope...........................................36

10.2 Appendix 2: Communication Strategy...........................................................39

10.3 Appendix 3: Stakeholder Analysis................................................................44

10.4 Appendix 4: Detailed Budget........................................................................47

10.5 Appendix 5: Survey Result............................................................................59

10.6 Appendix 6: Café Menu................................................................................65

10.7 Appendix 7: Packaging.................................................................................66

10.8 Appendix 8: Storyboard................................................................................67

10.9 Appendix 9: Floor Plan Layout......................................................................68


1 Business Summary1.1 About the Company

The idea of Wroof Café is developed from the brainstorming of five members in

Applied Business Challenge Class. The idea is generated due to the pet owner

consider their pets are a part of the family. Besides that, the trend of bringing dog to

café is popular in Sydney (Saurine 2014). Therefore, it is an opportunity to bring this

innovation trend into Melbourne.

Wroof Café is a business concept that plans to start-up a DOGS friendly CAFÉ in

Melbourne CBD. The business concept “Wroof Café” involves the combination of

dining and relaxing environment for owners and dogs. Wroof Café is determined to

provide a free time relaxing and distress place for the local dog owners and dogs.

Wroof café offer a place for customers to escape from the stressful life and offer a

comfortable place to dine with their beloved dog. The business is expected to begin

trading on 3rd April 2016 located in 261 Franklin Street.

1.2 Your Products and Service

Wroof café offer the customers a very relax and comfortable environment and what

special about Wroof café is, it is a dog-friendly café that provides fresh food and

beverage for both human and dogs. The human food that offer by Wroof café include

pre-prepare sandwiches, pastries that will be delivered by Breadwinner daily to

ensure the freshness of the foods. As for the dog foods, Wroof café will provide

canned food mixed with noodle or rice that will be cooked by the chef of Wroof café.

Wroof café also offer the customers fresh ground coffee with interesting coffee art

draw by Wroof café’s professional baristas. In order to ensure the best service will be

delivered, all of the employees will undergo proper training in serving customers and

dogs. The stewards will do their best in keeping the cleanliness of the café and air

refresher will be placed to eliminate odor. The carpets, blankets, toys are provided

for dog to make them feel comfortable to stay in the café.

Project Initiation Document <Wroof Cafe> Page 1

1.3 The Market

The café industry in Australia is growing strongly as Australian demand for the

quality coffee and influence by the coffee culture. Especially in Melbourne, the

number of people who visiting café is much higher than other city such as Sydney,

Hobart, Perth, Brisbane and Adelaide (Roy Morgan 2015). The market in the café

industry is growing 2.37% due to the increase demand of coffee. According to Ryan

(2015), the market revenue will grow 2.5% continuously in the next five years and

the annual industry revenue will reach around 6.0 billion.

The target market of the business will be the people who live 5 km radius from

Melbourne CBD. There are 1,965,105 citizens live within 5 km radius from

Melbourne CBD. According to the survey result (Appendix 5), the target customers

are mainly focus on the citizens who aged 20 to 29 years old, dog owner and the

citizens that will visit café at least once a month. After narrowing down the market

based on the quantifying method, 38,554 of citizens will visit the café and only 5%

(market share that suggested by Ryan 2015) will visit Wroof café. The estimated

annual sales of Wroof café in 2016 is projected to be around $350,000. Wroof café is

positioned as a dog friendly environment café which allow dog owner bring their dog

dine in the café. Due to its unique positioning strategy from other competitors,

therefore the assumption of growing 2% of market share yearly is made.


1.4 The Business Potential

Wroof Cafe has the competitive advantage of running the first cafe in Melbourne to

provide a suitable environment for customers to bring their pet dogs along. It is

specifically tailored for consumers and pet dogs whereby each and every service

and products that are offered by the cafe will be specially prepared to address the

needs of each and every customer. In addition, Wroof café aims to become the first

central meeting point for dog lovers within Melbourne CBD.

In preparation to the launching of Wroof Café, the 5 founders will each form a team

to handle different tasks in the café. To ensure adequate knowledge and proper

understanding required to successfully provide a professional service, the founders

will attend dog training courses provided by certified professional trainers in Victoria

to gain knowledge on how to handle different types of dogs through understanding

dog behaviours. Besides that, 2 founding partners will each attend barista course

and latte art classes which are accredited by local coffee schools to make sure that

they are competent with the extraordinary coffee culture in Australia. Hence, it is

crucial for the founders to select the ideal coffee beans and brew to address the

needs of the local consumers to gain a strong foothold and become a dominant

player in the Foodservice industry.


Aside from beverages, Wroof Café will also be providing food for both the customer

and their pet dogs. The pastries, sandwiches and pies will be sourced locally by the

award winning bakery, Bread Winner. The food supplied by Bread winners will

benefit from their premium pre packed food service and they only use the freshest

and best quality ingredients in their products. The sandwiches will be thermally

sealed in wedged container in order to maintain the freshness and safety for the

customers of Wroof café, while the other products like pastries and pie will be flow

wrapped or presented in a clear clam container. In addition, Wroof Cafe will be using

high quality coffee beans which are grounded from 100% organic Arabic beans. On

the other hand, Wroof Café will be offering 3 types of nutritious and mouth-watering

meal for the customer’s dog. Ranging from minced chicken, lamb or beef with mixed

vegetables on spiral pasta. These meals are carefully designed to meet all the

dietary requirements of all canine breeds, which is healthy and delicious. On top of

that, Wroof café will be sure to operate in a relaxing and stress free environment to

ensure that our customers have a wonderful experience.

Laurent Patisseries will be a direct competitor of Wroof Café due to the fact that they

offer a variety of fresh pastries, coffee as well as dog friendly patisseries. The

differentiating factor is that Laurent Patisseries does not serve meals for pets and

they do not allow customers to bring their pets into the café. Pet owners are only

allowed to dine at the outdoor area of the café.

Since Wroof Café will be located at Franklin Street, which is just 2 blocks away from

the Melbourne CBD area, it will greatly benefit from the market crowd that frequently

visits Queen Victoria Market as well as park goers at the Flagstaff garden. In the

morning, those people going to the market will be a great source of potential

customers where they can visit Wroof café after going to the market. Besides that,

Flagstaff garden is a place where pet owners usually walk their pets during free time

and for those who felt tired after exercising at the garden, Wroof café will be a great

place for the customers to take a break as well as giving their pets a nutritious treat.


Prior to the launching of Wroof Café, the founders will be advertising through print

ads as well as social media including Instagram and Facebook in order to gain public

awareness as well as brand awareness. Besides that, fliers given out at Flagstaff

garden and Queen Victoria market will have discount vouchers attached to

encourage early adopters and with this, Wroof Café hopes to initiate word of mouth

within the community in Melbourne CBD through the professional service provided at

Wroof Café.

In the near future, Wroof Café wishes to improve and expand its business model of

providing quality food and services to both owners and pets to other states in

Australia. But before that, Wroof Café must gain a large market share within

Melbourne CBD to secure financial stability and brand image as the main driver is to

strive for high standards of services and food quality. Only then, Wroof Café will

expand to regional areas within Victoria and hopefully across Australia.


1.5 Mission, Goals and Objectives

Mission: To provide a relaxing, comfortable, enjoyable and dog-friendly environment to both dog-owner and dog.

Financial: To attain the breakeven point by 31st December 2018

Marketing: To increase the customer’s awareness toward the café by 10% through communication/advertising campaign’s through social media, magazine and word of mouth before 31st December 2017

Operating: To spend AUD 250,000 set up CAFÉ in Melbourne CBD with a targeted estimated scheduled of completion by 1th April 2016

Branding: To be recognised by the The Age Good Cafe Guide awards by 31st December 2018

1.6 Strategies

Strategies DescriptionProducts Sandwiches, pastries, coffee, dog food

Services Dog-friendly service, Relaxing

environment

Price Range from AUD 5 to AUD 20 per

customer

Promotion - Official Website

- Social Media (Facebook, Instagram,

Twitter)

- Magazine

- Loyalty card

- Flyers

- Poster

- Business Card

Place - Shop in 261 Franklin Street, Melbourne

CBD

- Operating dates and times: Tuesday to

Sunday from 8 am to 6 pm

People Provide


1.7 Business Structure

The café will be operated under partnership structure which consists of 5 main

partners. In the partnership agreement, each partners will agreed in sharing profits

and losses and share the decision making. Two part timer will be employed in order

to prevent staff shortage problem. Each partner will contribute AUD 50,000 capital

into the business and AUD 50,000 will be obtained from ANZ Bank with 5.65%

interest rate per annual.

1.8 Finance

Year 2017

Forecast turnover: 2.5 times

Forecast gross profit: $208,199

Forecast net profit: -$190,603

Year 2018



Forecast net profit: $93,245

Year 2019



Forecast net profit: $188,050

Wroof Café will be gathering $250,000 capita from the 5 partners to start up this

business. Moreover, Wroof Café will borrow a loan of $50,000 from ANZ bank which

will be assume to be repay in 3 years and the business will also assumed will be

break even in the 3rd year. The reason that Wroof Café will borrow a loan of $50,000

is due to maintain a high degree of liquidity.


2 The Market2.1 Industry Profile

According to Ryan (2015), the café industry is growing strongly over the past five

year due to Australian’s love for quality coffee and vibrant coffee culture. As the

rising of consumer sentiment and discretionary income, café become one of the

popular place for consumers to spend leisure time while coffee is considered as an

affordable luxury. Therefore, the industry revenue is expected to grow by 3.2% in

2015-16 that reach $5.3 billion. In the next five year through 2020-21, the industry

revenue is forecasted to increase 2.5% which around $6.0 billion. The slowdown of

industry growth is mainly due to the competitive pressure in the market such as price

competition and high quality have forced the costs up and pushed the profit down.

Australia’s coffee culture increase the demand of quality coffee and led independent

café grow at a faster rate than the coffee chains. As the robust coffee culture and

demand of quality coffee, the growing number of speciality cafés have resulted in a

high level of competition. Dan Gallo think that there is a latent demand in the café

industry due to the market is growing about 2.37% (Heffernan 2015). However, the

latent demand will dry up soon as more and more independent café enter the

market. In order to gain the market share in café industry, the main key success

factor is having a clear position in the market (Ryan 2015). An excellent

understanding toward the market allow operator respond in changing preferences

and survive in the competitive environment.


According to Roy Morgan (2015), there are 63.3% of Melbourne people pay at least

one visit to a café for coffee in last 3 months. Based on our research, there are 86%

of Melbourne people pay at least one visit to a café in Melbourne CBD in a month.

The research also show that every 100 of dog owner, 73 of them will bring along

their dog while visiting café. This phenomena will sustain in the future as pet owner

consider their pets are a part of the family and they have powerful impact on pet

owners’ consumption behavior (Power 2013). Ryan (2015) suggests that consumer

will demand more fast and convenient food or beverage and dining options due to

busier lifestyle. The report also recommend that café operators can boost sales by

focusing on providing premium ingredients, gourmet café-style meals, healthy meals

and ethical consumerism.

2.2 Competition

Cat Café Melbourne Laurent Patisserie Argos Loves Company

Products Cat merchandise,

beverages and snacks

Beverages, bread and

pastries

Beverages and fresh

food

Price AUD 0 - 50 AUD 0 – 50 AUD 0 – 30

Distribution Own Store Own/Retail Store Own Store

Positioning Australia’s first cat

café

Able to interact with

cats

Cats friendly

Affordable

Quality bread and

baked goods

Dog friendly

Affordable coffee,

tea and fresh food

Dog friendly

Quality Medium High Medium

Target market Tourists, locals, pet-

lovers, coffee lovers

Tourists, locals,

pastries and bread

lovers

Tourists, locals, food,

lovers

Market share 5% (Ryan 2015) 5% (Ryan 2015) 5% (Ryan 2015)

According to IBIS World (Ryan 2015), the barrier to enter the café industry will be

low. As Wroof café is an innovation idea, there are several barriers which

encountered by Wroof Café.


As all the business partners of Wroof cafe are new to food and beverage industry,

business partners will have limited knowledge on operating a cafe and handling all

types of dogs. Therefore, business partners of Wroof cafe will overcome this problem

by involving themselves in professional talk and courses to acknowledge themselves

about dogs and cafe operation.

High start-up cost will become a barrier for Wroof cafe such as renovation cost for

the store, rental, furniture, utilities and professional training for workers. However,

these can be overcome by doing price compare with a few renovation companies

and also furniture stores. By comparing prices, it would allow Wroof cafe to lower the

expenses cost price.

Furthermore, Wroof cafe will also be facing intense competition from the various

cafes and restaurants in Melbourne CBD area. Cafes in Melbourne CBD might start

to change the cafe concept to pet friendly cafe. Wroof cafe will differentiate the cafe

from other cafes by serving healthy and nutritious meals for owners and dogs with

affordable price and serving high quality coffee. Wroof cafe will also maintain good

customer relationship by communicating with customers on their visit and accepting

feedback after the visit. Besides that, promotional method will also be used by Wroof

cafe in order to strengthen the customer loyalty of the cafe.

2.3 Market Segmentation

Segment: Characteristics: Size

(annual

sales):

Location 5 km radius from Melbourne CBD 1,965,105

Age 20 – 29 (58%) 1,139,761

Target Market Segment 1: Dog Owner (59%) 672,459

Lifestyle Customers that will visit café at least once a month 578,315


Wroof Café concept is still relatively new in the market. As a result, determining the

market segmentation is slightly difficult since there is no actual secondary market

data to support the market segmentation above. Thus, in this project, primary

research will be conducted. The primary data in this project is collected from

conducting a survey around Melbourne CBD. Wroof Café will focus mainly on dog

owner and coffee lover that fits to the café’s concept.


3 Sales & Marketing Plan3.1 Your Customers

Woorf Café is mainly targeting on dog owner and coffee lover that stay within 5-

kilometre radius from Melbourne CBD. This is because Wroof Café saw the

opportunity where none of the dog-friendly café within 5-kilometre radius from

Melbourne CBD offers high quality food for both human and dogs. Wroof Café

provides relaxing and stress-free environments that allow the customers and their

dogs to dine-in the café comfortably.

After conducting a survey with a sample size of 100 respondents from the age range

20 to above 50 years old, it found that 82% of the respondents would visit a café that

allowed them to dine-in with their dogs and 73% of the respondents would purchase

food for themselves and their dog if Wroof Café was to be operated in Franklin

Street, Melbourne CBD. The survey also revealed that cleanliness of the shop, price

and the service are the key factors influencing the respondent’s consumption

pattern. Therefore, Wroof Café will not only provided relaxing environment, it will also

fulfil it target customers’ needs and wants by offering affordable price and ensure

clean cafe environment. Lastly, the survey also showed that, majority of the

respondents willing to pay about AUD 6- AUD 10 (51%) for their dogs’ meal.

Dog Owner Coffee Lover

Price High High

Cleanliness High High

Taste High High

Nutritional value High Medium

Type of music play High Medium

Convenient retail location High Medium

Preparation time Medium Medium


3.2 Value Proposition

“A perfect spot for owners and dogs”

“Wroof café” will be the first dog’s cafe to be operating in Melbourne CBD. Wroof

café aims to be associated with a relaxing and stress free environment for both dog

owners and their dogs.

Wroof café offers a third space to the dog owner to relax themselves and interact

with their dogs. Wroof café offers fresh prepared meals with no preservatives added

for customers. Besides that, dog meals are freshly prepared daily by using nutritious

ingredients. Wroof café offers high quality fresh brew coffee which is single origin

from Peru and 100% organic Arabica beans certified by “Rainforest Alliance” (Home

Barista Institude 2015).

Affordable price is also one of the selling propositions as both human and dog meals

are priced not more than 10 dollars. The survey found out that most of the customers

are willing to pay 6 to 10 dollars for the dog meals. Another value proposition will be

convenience as Wroof Cafe is located at Franklin Street which is near Flagstaff

garden and Queen Victoria Market. This would allow customers to stop by at Wroof

cafe after they walk their dogs at the garden or after the visit of Queen Victoria

Market. Furthermore, Wroof Café also does offer a social space for the owners. Dog

owners will be able to socialize with other pet lovers who visit the café.


3.3 Your Product or Service

Due to the government restriction, Wroof café offer limited range of products which

include sandwiches, pastries, coffee and dog meals. All the sandwiches and pastries

will take from the supplier, Breadwinner who offer quality and hygiene products.

Then, the coffee and dog meals will be prepared by the baristas and chef. The detail

description and price range please refer appendix 5. As Wroof café allow customers

enjoy their foods and drinks with their dog in a close area, all the products will be

serve in packaging to avoid any hygiene issues. The appendix 7 show the sample of

pastry and coffee packaging. Every pastry that sold on the café will be packed in a

plastic bag to avoid any dog fur attach on the food. Then, the coffee cup will be

sealed to avoid leaking or accident pour.

In term of services, Wroof café offer a relaxing and dog friendly environment to the

customers. Through the survey, there are 66% of participants focus on the

cleanliness in the café. In order to provide a clean and comfortable environment to

the customers, the stewards will clean and sterilize the table and floor to make sure

the fur and bacteria are cleared. Furthermore, the window will be opened and air

refresher will be placed in the café to ensure the air fresh and not smelly. In order to

provide excellent services, all the employees have to accept the training in serving

customers and dogs. Moreover, the blankets, carpets, toys will be provided to make

dog feel comfortable to stay in the café. All the stewards are willing to assist the

customers if they have any enquiry and requirement.

Based on the primary and secondary research, Melbourne CBD do not have any

café that allow dog dine in with their owner. The research show that the potential

customers have the habit in bringing their dog to the café and have the intention to

bring their dog along while visiting café. However, only few customers know that

certain café allow them to dine outside with their dog. This innovation idea offer an

ideal place for customers and their dog to enjoy their meals. Customers will no

longer face the difficulties in searching a café when they walk with their dog.


Wroof café will increase the product range as the business growth. In term of human

menu, more selection will be offered such as ice coffee, cakes and increase the type

flavor of pastries. As mention in industry overview, customers will focus on healthy

lifestyle in the future. Therefore, Wroof café will ensure the supplier produces the

sandwich and pastry daily by using the fresh and healthy ingredients. On the other

hand, Wroof café will offer more dog menu by adding the choice of meat such as,

salmon and duck. Some treats will be offered to cater the customers who demand

fast and convenient food.

Currently there are plenty of independent café in the Melbourne CBD. They operate

in different styles which offer different environment, foods and beverages. However,

there do not have any café allow customers to dine in with their dog. Although there

are few café allow customers to dine outside the café with their dog, dog owners do

not familiar them. Wroof café offer dog owner a relaxing environment for customers

and dog to dine in.

The new product and service development of Wroof Café is currently at business

analysis stage. Appendix 5 shows that the customer survey result and feedback

toward the concept of Wroof Café. All the estimated cost, sales and profitability are

showed in Appendix 4. Before introducing Wroof Café into the market, the

management need to develop product prototype and test it in the market.

Storyboards or video will be built to visualize the service idea and explain the idea

(refer appendix 8). Then, the feedback will take into consideration and amendment

will be taken.


3.4 Promotion

Methods Timeframe Budget Purpose MeasurementOfficial Website No limit Nil To create customers’ awareness

through official websiteNumber of viewing

Social Media (Facebook, Instagram, Twitter)

No limit Nil To create customers’ awareness through social medias

- Number of following and like the page- Check the comment and feedback from the customers

Magazine (Urban Animal) 1 month before and after business commence

AUD 3,500 To create customers’ awareness through magazine

- Feedback- Customer visit the café with promotional code

Loyalty card No limit AUD 1,800 Create customer loyalty and retention rate

Number of card

Flyers Before and after business commence, based on seasonal

AUD 1,920 To create awareness dog-friendly café and F&B for both dog and owner


Poster Two months before business commence

AUD 112 To create awareness dog-friendly café and F&B for both dog and owner


Business card No limit AUD 540 To create awareness about Wroof Café

Number of customer who take the card


3.5 Strengths, Weaknesses, Opportunities, Threats

Strengths1. Dog-friendly café2. Providing dog food3. Well training and friendly staff4. Affordable price5. Fast serving

Weakness1. Lack of products range2. Limited capital3. Insufficient of knowledge about

dog4. Lack of experience in start-up

businessOpportunities

1. New in the market2. Growing market in café industry3. Booming trend of drinking café in

Melbourne4. Good shop location (Near to

Flagstaff garden and Queen Victoria Market)

Threats1. Variety of substitute for drinks2. A lot of indirect competitor (Cat

café, dog-friendly café and others’ cafe)

3. Change of customers’ preference


3.6 Sales and Marketing Objectives

By 30 April 2016, 4,000 magazine readers aware to the Wroof café.

By 31 December 2016, achieve 2,000 of followers in each of the social media such as Facebook, Instagram and Twitter and

constantly update the café information to the followers.

By 31 December 2016, distribute out 2,500 flyers to the dog owners and potential customer that pass by Flagstaff Garden and

Victoria Market to promote our seasonal products and services.

J F M A M J J A S O N D Total

($)

Number of visit 1,661 1,661 1,662 1,827 1,827 1,828 2,010 2,010 2,011 2,211 2,211 2,212 23,133

Consumption

per visit

15 15 15 15 15 15 15 15 15 15 15 15 15

Total Sales 24,915 24,915 24,930 27,40

5

27,405 27,420 30,150 30,15

0

30,165 33,165 33,165 33,18

0

346,989

The detail quantifying sales forecast please refer appendix 4.


3.7 Sales and Distribution

Wroof Café is a business to customer (B2C) that focus on direct retail services that

serve food and drinks to the customers. Customers are allowed to call to make

reservation before visiting or walk-in to enjoy it. Wroof Café on 3rd April 2016 will

officially open and the operation hours will be 8am to 6pm and open every day

except Monday.

3.8 Pricing

The pricing method that used by Wroof Café to determine the price of foods and beverages

is cost plus method. The price of foods and beverages is consisted by adding the direct

material cost, the two part time labour cost and the indirect cost of operating the business.

Then, it will be marked-up 60% based on the suggestion of Australian Government (2009).

Formula: (direct material cost + labour cost + indirect cost) * (160% mark-up)


4 Operation Plan4.1 Production

Wroof café is an innovation café from other normal café that allow dog owners dine

in with their dog in a relax environment. Wroof Café provide sandwich, pasties and

coffee to their customers. Due to the law restriction, the foods and drinks are served

in package to avoid any hygiene issues. The coffees are prepared and sealed before

serving to customers. On the other hand, sandwiches and pastries order from the

supplier, Breadwinner and keep in the fridge. The pastries will be heated and put into

paper bag before serving by steward. Instead of providing food for human, Wroof

Café also offers dog foods. All the ingredients can get from any supermarkets such

as spiral spaghetti, mixed vegetable and the can meat. The dog foods are prepared

by the chef and served in dog bowl.

The customers require to walk-in the café and place the order at the counter. As the

customers visit the café with their dog, all the foods and beverages are served by the

stewards so that they can handle their dog behaviour. The stewards are happy to

assist the customers if customers have any enquiry or requirement. Some of the

blankets, carpets, toys, plastic bags (pick up the excrement) are prepared for any

contingency needs.

As all the sandwiches and pastries are supplied, Wroof Café has a supplier

agreement with Breadwinner. Breadwinner supplies the sandwiches and pastries in

daily basis in order to ensure the foods provided are fresh. The supplier also

undertake the delivery cost under the agreement as well.


4.2 Premises, Plant and Equipment

Cost of coffee machine $15,500

Cost of computer $1,599

Expected useful life 5

Depreciation method Straight-line method, 20%

Premises There is no depreciation on premise since it is leased.

Foot traffic Operates around Melbourne CBD, Flagstaff garden and Queen

Victoria Market. The foot traffic may be high during lunch hours

and break times especially on weekends and public holidays.

Proximity to suppliers Breadwinner can deliver the food supply to our café every day.

Proximity to customers The potential customers can drop by at our café anytime from the

Flagstaff garden.

Access to workforce Currently self-employed with 2 trained employees and will

consider greater work force employment as the café grows.


5 Finance Plan5.1 Capital Requirements and Funding Proposal

Wroof café will required around $350,000 to start up the business. There are five

partner and each of the partner will contribute $50,000 into the café. The remaining

$100,000 will borrow a loan from ANZ bank. The repayment will be clear in 5 years’

time and the interest rate charge on the loan will be 5.65% per annum.

5.2 Financial Assumptions

Elements Financial assumption

Sales Quantifying method is used to predict sales (Appendix 4)

The sales will be estimated increase by 2% of market share per annum

The selling price is estimated increase 2% per annum based on the inflation rate

Inflation rate There will be a fixed inflation rate assumption about 1% to 3% for the 3 years in the financial report

Loan repayment The interest rate will be assume as fixed rate of 5.29% for the loan as there’s an agreement on it

The loan term will be 3 years

Inventories The first in first out (FIFO) method will be used as record the inventories system

Rental The rental is estimated for $7,927 a month exclusive utilities

The rental will remain the same for the next 5 years due to the contract apply

Wages The partner will not get salary before the business break-even

Depreciation (coffee machine, computer) Both of the fixed assets will be using straight-line depreciation with 20% per annum

Variable costs (water, electricity,

sundries)

The variable costs are estimated increase 10% per annum


Cost of goods sold The cost of goods sold will be estimated as 40% of the sales

The cost of goods sold is estimated increase 2% per annum based on the inflation rate

5.3 Cash-flow Projection

Cash-flow 2016 – 2017

Incoming = $346,998

Outgoing = $567,270

Cash-flow 2017 – 2018

Incoming = $498,600

Outgoing = $401,935

Cash-flow 2018 – 2019

Incoming = $659,484

Outgoing = $468,013

Detail information please refer to Appendix 4.

5.4 Projected Profit and Loss

Profit and Loss 2016 – 2017 = -$190,603

Profit and Loss 2017 – 2018 = $93,245

Profit and Loss 2018 – 2019 = $188,050


5.5 Projected Balance Sheet

Balance Sheet 2017 = $59,397





6 Risks6.1 Risk Identification and Mitigation

Risk

Like

lihoo

d

Impa

ct

Sco

re

Like

lihoo

d *

Impa

ct

Action required and who will take responsibility to manage the risk

Operation risk Customer complain

4 4 16 Ask for feedback and improve customer service

(NeeNa and Chi Khang) Supplier delay issue

3 3 9 Make agreement with the supplier (Chi Khang) Research on suppliers’ reputation (Chi Khang)

Equipment and machine break down 2 4 8 Constant maintenance (Chi Khang) Customer traffic 3 3 9 Create online or phone reservation service (Fui Yang) Dog behaviour 4 5 20 Provide training to each partners (SiewNee) Not enough place to food storage

3 3 9 Daily contact with the supplier (Chi Khang) Daily check on the food storage (Chi Khang)

Bad weather2 3 6

Provide dryer for dog (Nee Na and Chi Khang) Provide blanket and towel (Nee Na and Chi Khang) Provide heater (Nee Na and Chi Khang)

People risk Conflict between management

4 4 16 Communicate patiently and figure out the problem

( All Responsible) Staff shortage 4 5 20 Provide good welfare to staff (Siew Nee)


Attitude and behaviour of the staff3 4 12

Provide a guideline and training about the work ethic (Siew Nee)

Staff injury 3 3 9 Provide a safety environment (Siew Nee)Financial risk

Raw material price increase 2 4 8 Compare prices between suppliers (Chi Khang) Not enough capital 2 3 6 Apply loan from financial institutions (Fui Yang) Rental increase 3 5 15 Have 3 years agreement with the landlord (Fui Yang) Negative monthly budget 3 2 6 Track the financial daily basis (Fui Yang) Robbery 1 4 4 Set up CCTV and alarms Staff may steal cash 3 2 6 Set up CCTV Fluctuation of interest rate

2 3 6 Sign agreement with financial institutions (Fui Yang) Research on financial institutions that offer best

interest rate (Fui Yang) Insufficient cash flow 4 4 16 Keep high level of degree of liquidity (Fui Yang)

Regulatory risk Licencing issue

4 5 20 Modify and make improvement on the project plan (All

Responsible) Food safety and food quality

3 4 12

Check the quality of the food frequently (Sook Min and Siew Nee)

Keep fresh of the ingredients, do not keep for too long (Sook Min and Siew Nee)

Government enforce pets restriction in café 2 5 10

Create some outdoor space in the floor plan Research a location which contain more outdoor

space (All Responsible) Unfamiliar with Australia Law

3 2 6 Study more on the Australia Law (All Responsible) Consult lawyer who familiar with the Australia Law

Governance Conflict between partner 3 4 12 Sign a partnership agreement (All responsible)


Lack of experience4 5 20

Do more research on the business (All responsible) Attend entrepreneur workshop (All responsible)

Conflict between employee 4 4 16 Communicate and find out the problem Brand damage

3 4 12 Promote and advertise the brand (Nee Na and Sook

Min) Stock loss

4 4 16 Keep track and update the financial statement (Fui

Yang)Strategic

Inappropriate Location 4 5 20 Do more research on the location (All Responsible) Change of trend (coffee culture)

1 4 4 Research continually in the industry (Nee Na and

Sook Min) Fluctuation in personal income

3 3 9 Giving out some promotion meal or menu (Nee Na

and Sook Min) Government use the garden for business

purpose1 3 3

Research on which part have the most pet’s owner walk the dogs

Change of trend (bring dog to café) 3 3 9 Having our own dogs in the café Competitors

4 5 20 Create competitive advantage and position the café

clearly (Nee Na and Sook Min) Low customer demand

3 4 12 Create more promotional and advertising campaign

(Nee Na and Sook Min)

Extremely High = 5, High = 4, Medium = 3, Low = 2, Extremely Low = 1


7 Structure and Management7.1 Organisational Structure

The café is owned by 5 partner and each partner hold the respective role as shown

in the organisational chart above. Instead of just holding a management role, each of

everyone will work on field to serve the customers. Through this management model,

it may help the café reduce the cost in human resource and allow each of the

partners have in depth understanding toward the customers. Due to the unforeseen

circumstances such as peak season, two part timer will be employed as steward or

cleaner.

As the business growth, the business is going to develop another Wroof café branch

in other suburb to reduce the customer traffic. Therefore, the number of staff will

increase and the 5 partners will be redistributed in both location. Assuming that

another branch has the same size with the current shop, there need 3 more barista

and 2 more steward to be in charge in both shops. The organizational chart will

change as diagram below:


Partnership

Finance + Cashier

(Fui Yang)

Sales & Marketing +

Steward(Nee Na)

Advertising & Designing +

Barista(Sook Min)

Human resources +

Basrita(Siew Nee)

2 Part Timer

Administration + Steward

(Chi Khang)


Shop 1

Finance + Cashier

(Fui Yang)

2 Steward

Human resources +

Basrita(Siew Nee)

1 Barista

Shop 2

Sales & Marketing +

Steward(Neena)

1 Steward

Advertising & Designing +

Barista(Sook Min)

1 Barista

Administration + Cashier

(Chi Khang)

7.2 Key Personnel

Partner Background Skill ExperienceChi Khang Siau - Diploma In Business

Administration- Bachelor of Business (Marketing & International Trade)

- Ability to organize personal work priorities- Organizational skills- Good in handling office equipment- Good in researching and analysing data effectively

- Working as account and administrative assistant in construction company- Working as steward and kitchen helper in various restaurants and event (Station One, Wafu Kitchen, The Royal Agricultural Society of Victoria Limited Fine Food Event)

Nee Na Yap Bachelor of Business (Marketing & International Trade)

-Good research skill-Good in marketing and sales-Critical thinking-Able to work in team-Good communication skill

-Worked as a sales and promotion assistance in marketing department-Worked as a sales assistance in fashion retail (Factorie)-Worked as a team member in Baskin Robbin-Organize charity event (Philanthropy Bazaar)

Fui Yang Choong

Bachelor of Business (Accounting & Banking Finance)

- Ability to concentrate on task- Good at accounting and financing- Critical thinking skill- Teamwork

- Worked as customer services provider in training provider company- Worked as promoter for Nestle company’s event- Worked as cashier in family business

Sook Min Lee Bachelor of Business (Marketing & International Trade)

- Able to generate strong creative ideas- Good communication and presentation skills- Innovative- Flexible on work- Well organized

- Worked in an advertising team in a property company.-Designed logo for an online store-Worked as a waitress and cashier (Gao Ren Guan, Oldschool café, TokyoPop)-Worked as a promoter for Nestle company (Milo)


Siew Nee Foo Bachelor of Business (Accounting & Banking Finance)

- Able to multitasking and adaptability- Have basic general business knowledge- Have a good time management- Ability of organisation- Communication skill (able to speak more than two language)- Problem solving skill

- Worked as an accounting administrative while school break- Worked as a sale person to promote the and sell the product- Worked as an event planner and in charge of the whole event- Worked as a customer services representative

As all the partners are student who going to graduate, one of the weakness is lacking of experience in starting-up business. In order to

overcome the weakness, every partner can attend entrepreneur seminar such as the entrepreneurs’ unconvention workshop that held

in Melbourne on 19th September 2015. Through attending the workshop, every partners can be inspired by the successful entrepreneur

and get some ideas, tips and advices from their sharing.

On the other hand, the team lack of knowledge about dog as all of the partners are graduated from Bachelor of Business. Therefore,

every partners have to receive training by studying the Pet Technician Certificate. This certificate allow the team gain a deep

understanding in handling and care of pets especially dogs. This training allow each partner can handle the dog when there is any

unexpected incident.


8 Project Plan8.1 Action Plan

Action Due date for completionThe project plan has been agreed and

developed by each project member

29/1/2016

Application of permit and licence 29/1/2016

Lease of building to run business 29/1/2016

Equipment purchased and ready for use 29/1/2016

Food and beverage supply is ready for

use

29/1/2016

Construction for the business 1/4/2016

Recruitment of staff 1/4/2016

Café set up 22/3/2016

Advertisement for the café 31/3/2019 (long term)

Monitoring the business financial

performance

31/3/2019 (long-term)


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10 Appendices10.1 Appendix 1: Kepner-Tregoe Exercise on Scope

Is in the project (we have responsibility)

Is not in the project (we do NOT have responsibility)

Operational

Design and provide a comfortable and hygiene environment to our customers

Not responsible for allergic reaction as all the ingredients are fully listed

To ensure the safety of the customers when they are in our café

Not responsible for any dog behaviour in the café

To ensure our staff are trained to serve the pets

Not responsible for any fights in the café

To ensure the foods that are suitable for the pets and reach the standard that was set by the authorised partyTo seek the feedback from the customersProvide clear guidelines for the customersMonitor the monthly work progress in café renovationProvide an open space for petTo plan and create our own menu and provide in-depth detail about the food ingredientsTo rent a shop lot in Melbourne CBDEnsure the quality of the food and beverageLook for food and beverage supplier and equipment supplierHandle the take away customers

FinancialPrepare and monitor the monthly budgetMonitoring revenue and expenditure as against budget

MarketingTo promote our café and promotional strategy in traditional and non-traditional social mediaPromote cafe on Facebook by starting up a fan’s page


Promote cafe by posing pictures on InstagramPromote cafe by setting a twitter accountAdvertise thru magazines (urban animal)Distribute 3000 flyers to attract awareness at Melbourne Central and Flagstaff Park.Set up a website for the cafe

LegalApply operation permits and licenses in Melbourne CBDWe will comply with the law and regulation of Melbourne

RiskProvide a proper business structure

To ensure the safety of the customers when they are in our caféTo ensure there is enough capital to operate the café.To ensure the quality of the food and beveragePrice the product with a reasonable priceTo ensure the food safetyTo ensure the infrastructure goes wellProvide a work safe Insurance for employeesComply with statutory obligation to avoid being suedTo ensure that well analyse the market trendsPerform regular customer researchDevelop a contingency plan

Unsure (we do not know if following are within the responsibility of the project

Unsure of the dog food preference.Unsure of the dog cause damage on café assets.Unsure the government policy changes.

Other factors impacting on the project scope

Assumptions (these are the things that you believe will be available during


the project)

We assume that we will receive help from lecturer.We assume that our team members will contribute equally.We assume that the inflation rate will remain the same.We assume that we can get a good location to operate the café.We assume that we can get the permission of allowing dogs dine in in the café.

Constraints (these are the things that you KNOW will impact on the projects performance)

Describe known resource limits in terms of people, money, time, and equipment.Limited capitalCompetitorsLack of knowledge about dogAdministration delay on permit and licenseUncertainty government


10.2 Appendix 2: Communication Strategy

Facebook

Twitter


Instagram

Magazine


Flyer and Poster

Business Card


10.3 Appendix 3: Stakeholder Analysis

Stakeholder Their interest or requirement from the project

What the project needs from them Perceived attitudes and/or risks

Actions to take

Government Comply with the law and regulation of Melbourne, Victoria

To gain government tax

Approval for the business licence Get approval for allowing dog

dine in in the café from Department of Health and Human Service

Fail to get the business licence

Fail to get the approval from Department of Health and Human Service

Follow and meet the government requirement

Prepare a detail business plan to negotiate with the Council City of Melbourne to get the approval for allowing dog dine in in the café

Contractor Increase sales revenue

To get a construction contact

Renovation the café based on the design blue print

Could not meet the deadline

Could not meet the construction expectation

Comparison between contractor of their reputation

Have a contract with the contractor

Employees Get paid regularly

Being treated well from the employer

Good working environment

Commitment in providing services to the customers

Ensure the safety in the café High productivity Punctual and efficiency at work

Bad working attitude

Employee turnover

High absenteeism

Employees who are well performed in the café will get additional commission

Provide training

Partner Gain profit Start-up own

successful

Able to gather more capital and share risk

Conflict between the partners

Withdrawal from

Have a good communication between partner


business Gather more expertise with different skills and knowledge toward the business

business investment

Keep the business liquidity at a high level

Partnership agreement

Suppliers Gain profit To create a

long term relationship

Continuous order for the ingredients

High quality and fresh ingredients (Mwikali & Kavale 2012)

Punctuality in delivery of ingredients (Entrepreneur 2015)

Low prices for the ingredients supply

Delay in the supplies

Supply of low quality ingredients

Unable to receive supplies

Provide the wrong or unwanted ingredients

Legally binding agreement with the suppliers

Regular follow up on orders

Backup suppliers

Competitors To get our customer

To get our business strategy

To get their marketing strategy To get detailed information on

how to improve our business

Reduce number of customer

Sales decrease

Increase the promotional campaign to café awareness

Provide good customer service and food

Financial Institution/ Bank

Interest on loan

Receive repayment on time

Provide capital High interest rate Unable to get the

loan approval

Compare the interest rate that offer by different bank

Good relationship with the bank

Customer Deliver excellent products and services

Feedback regarding to products and services

Gain profit

Spread out bad word of mouth regarding to the products and

Increase more promoting activates

Augment the quality of the products and


Able to meet customer wants and needs

Gain customers loyalty or regular customers

services Customer

preference affects the sale

Dissatisfied with the products and services

Dissatisfied with the pricing

services Offer food and

coffee according to customer favourite


10.4 Appendix 4: Detailed Budget

Quantifying method2016

2017 2018 2019 2010 Assumption

s Q1 Q2 Q3 Q4 Total

Melbourne Population 4,44

0,000 4,53

7,680 4,63

7,509 4,73

9,534 4,8

43,804 2.2% growth pa

Population (5 km radius from Melbourne CBD)

131,007

134,463

138,331

142,185

146,419 1% growth pa

Number of citizen aged 20-29 7

5,984 7

7,989 8

0,232 8

2,467

84,923 58% in this group

Number of dog owner 4

4,831 4

6,013 4

7,337 4

8,656

50,105 59% in this group

Number of people will visit café (at least once a month)

38,554

39,571

40,710

41,844

43,090

86% in this group

Market penetration 5% 7% 9% 11% 13% Growth 2% pa

Number of visit (per month) 23,

133

1,928

2,770

3,664

4,603

5,602

Number of visit (per year) 4,

985 5,

483 6,

031 6,

634 2

3,133 3

3,240 4

3,966 5

5,234

67,220

Consumption per visit

15

15

15

15

15

15.3

15.6

15.9

16.2 2% price increase pa

Total Revenue 74,

768 82,

244 90,

469 99,

516 34

6,989 50

8,571 68

6,141 87

9,221 1,0

91,421

Buy price for each visit

6

6

6 6

6

6.1

6.2

6.4

6.5

2% price increase pa

Total cost of goods sold 29,

907 32,

898 36,

187 39,

806 13

8,796 20

3,429 27

4,456 35

1,688 4

36,569

Gross Margin 44,

861 49,

347 54,

281 59,

709 20

8,193 30

5,143 41

1,685 52

7,532 6

54,853


Set-up costsSetting up the businessAccountant's fees $1,265Solicitor's fees $178Business registration $441Domain name registration NilInsurance premiums $1,150Licences $620Workers compensation $2,115Training - Barista $129 @ 2 $258Training - Pet technician certificate $295 @ 3 $885Wifi modem $60Setting up the premisesLease deposit and advance rent $15,854Fitout ($1500 per sqm) $180,000Utility bonds and connection $307Destop $1,599stationary (ballpen & marker pen) $60Black board $20Decoration $20Plant and equipmentCoffee machine $15,500Dishwasher $1,399Stove $1,259Oven $1,899Tea spoon ($9 - 6 pcs) @ 7 $63Plate ($28 - 4 pcs) @ 10 $280Cofee cups $10 @ 40 $400Water bottle $4 @ 6 $24Water glass ($22.50 - 16 pcs) @ 3 $68Kitchen utensils set ($19 - 5 sets) @ 8 $152EFTPOS machine $225Chair (30x$15) $450Bar Table (11x$247.50) $2,723Cash Register $189Register roll $41Food display ($2,448x2) $4,896Refrigerator $1,062Lamp Shade ($14.99x5) $75Ceiling fans ($139x2) $278Heater $60CCTV $384Alarms $299Starting operationsAdvertising and promotion $2,102Raw materials and supplies $332

Working capitalDog $490Start-up capitalEquity investment $250,000Borrowings $50,000Total $300,000The resultTotal set-up costs $239,481Surplus funds $60,519Borrowings required 0


Year 2016 to 2017Profit and loss forecast 2016- 2017

Apr Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar TotalsSales

Sales (invoiced) $24,923 $24,923 $24,923 $27,415 $27,415 $27,415$30,15

6 $30,156 $30,156 $33,172 $33,172 $33,172 $346,998

Cost of goods sold $9,969 $9,969 $9,969 $10,966 $10,966 $10,966$12,06

2 $12,062 $12,062 $13,269 $13,269 $13,269 $138,799

Gross profit $14,954 $14,954 $14,954 $16,449 $16,449 $16,449$18,09

4 $18,094 $18,094 $19,903 $19,903 $19,903 $208,199ExpensesAccounting fees $1,265 - - - - - - - - - - - - $1,265Advertising $2,102 - $1,750 - $210 - - $240 - - $210 - - $4,512Licenses $620 - - - - - - - - - - - - $620

Fitout $180,000 $180,000

Business registration $441 $441

Training - Barista $258 $258Training - Pet Technician Certificate $885 $885Bank charges - $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $360

Loan repayment $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $18,061Water $277 $170 $170 $170 $170 $170 $170 $170 $170 $170 $170 $170 $170 $2,317Electricity $30 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $10,026

Insurance $96 $96 $96 $96 $96 $96 $96 $96 $96 $96 $96 $96 $1,152Legal fees $178 - - - - - - - - - - - - $178Wifi $60 $70 $70 $70 $70 $70 $70 $70 $70 $70 $70 $70 $70 $900Postage, telephone and fax - $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $720Stationery $162 - $58 $58 $58 $58 $58 $58 $58 $58 $58 $58 $58 $800Rent $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $103,051Repairs and maintenance - - - - - - $255 - - - - - $255 $510Security $683 - - - - - - - - - - - - $683Sundries - $304 $304 $304 $304 $304 $304 $304 $304 $304 $304 $304 $304 $3,648Payroll - $240 $240 $240 $240 $240 $240 $240 $240 $240 $240 $240 $240 $2,880Wages - $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $60,000Depreciation - Coffee Machine - $258 $258 $258 $258 $258 $258 $258 $258 $258 $258 $258 $258 $3,100Depreciation - Computer - $27 $27 $27 $27 $27 $27 $27 $27 $27 $27 $27 $27 $320Workers compensation $2,115 - - - - - - - - - - - - $2,115

Total $197,003 $16,520 $18,328 $16,578 $16,788 $16,578 $16,833$16,81

8 $16,578 $16,578 $16,788 $16,578 $16,833 $398,802


ResultNet profit -$197,003 -$1,566 -$3,374 -$1,624 -$339 -$129 -$384 $1,276 $1,516 $1,516 $3,115 $3,325 $3,070 -$190,603Gross profit margin 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60%Net profit margin -6% -14% -7% -1% 0% -1% 4% 5% 5% 9% 10% 9% -55%

Cash flow forecast 2016 - 2017

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Totals

Starting cash position $300,000 $68,627 $65,537$64,19

8 $64,144 $64,300 $64,201$65,76

1 $67,562 $69,362 $72,763$76,37

3Incoming

Cash sales $24,923 $24,923 $24,923$27,41

5 $27,415 $27,415 $30,156$30,15

6 $30,156 $33,172 $33,172$33,17

2 $346,998

Collections from accounts receivable $0

Other cash receipts $0

Total $24,923 $24,923 $24,923$27,41

5 $27,415 $27,415 $30,156$30,15

6 $30,156 $33,172 $33,172$33,17

2 $346,998Outgoing

Fixed costs $242,611 $14,986 $14,986$14,98

6 $14,986 $15,241 $14,986$14,98

6 $14,986 $14,986 $14,986$15,24

1 $407,968

AdministrationTraining - Barista $258

Training - Pet Technician Certificate $885

Wages $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000

Worker's compensation $2,115

Stationery $162 $58 $58 $58 $58 $58 $58 $58 $58 $58 $58 $58

Payroll $240 $240 $240 $240 $240 $240 $240 $240 $240 $240 $240 $240

OperationsAccounting fees $1,265

Licenses $620

Fitout $180,000

Business registration $441

Bank charges $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30

Loan repayment $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505

Insurance $96 $96 $96 $96 $96 $96 $96 $96 $96 $96 $96 $96

Legal fees $178


Rent $15,854 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927

Repair and maintenance $255 $255

Security $683

Desktop $1,599

Equipment $31,000

Dog $490

Wifi $130 $70 $70 $70 $70 $70 $70 $70 $70 $70 $70 $70

Postage, telephone and fax $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60

Variable costs $13,685 $13,026 $11,276$12,48

3 $12,273 $12,273 $13,609$13,36

9 $13,369 $14,786 $14,576$14,57

6 $159,302

AdministrationWater $447 $170 $170 $170 $170 $170 $170 $170 $170 $170 $170 $170

Electricity $863 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833

Sundries $304 $304 $304 $304 $304 $304 $304 $304 $304 $304 $304 $304

Marketing $2,102 $1,750 - $210 - - $240 - - $210 - -

Operations

Cost of goods sold $9,969 $9,969 $9,969$10,96

6 $10,966 $10,966 $12,062$12,06

2 $12,062 $13,269 $13,269$13,26

9

Total $256,296 $28,012 $26,262$27,46

9 $27,259 $27,514 $28,595$28,35

5 $28,355 $29,772 $29,562$29,81

7 $567,270

Result

Change during month-

$231,373 -$3,089 -$1,339 -$54 $156 -$99 $1,561 $1,801 $1,801 $3,400 $3,610 $3,355

Closing cash position $68,627 $65,537 $64,198$64,14

4 $64,300 $64,201 $65,761$67,56

2 $69,362 $72,763 $76,373$79,72

8

Balance sheet forecastAs at 31 March 2017

AssetsCurrent assets $80,218

Cash $79,728

Dog $490

Fixed assets $29,179

Coffee machine $15,500(-) Accumulated depreciation -$3,100

Computer $1,599


(-) Accumulated depreciation -$320

Equipment $12,328

Furniture $3,173

Total assets $109,397

LiabilitiesLong-term liabilities $50,000

Borrowings $50,000

Total liabilities $50,000

Net assets $59,397

Owner's equity Does not balance by $0

Retained earnings $0

Current year earnings -$190,603

Capital $250,000Total equity (should equal net assets) $59,397

Year 2017 to 2018Profit and loss forecast 2017-2018

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar TotalsSales

Sales (invoiced) $35,811 $35,811 $35,811 $39,392 $39,392$39,39

2 $43,332 $43,332 $43,332 $47,665 $47,665$47,66

5 $498,600

Cost of goods sold $14,324 $14,324 $14,324 $15,757 $15,757$15,75

7 $17,333 $17,333 $17,333 $19,066 $19,066$19,06

6 $199,440

Gross profit $21,487 $21,487 $21,487 $23,635 $23,635$23,63

5 $25,999 $25,999 $25,999 $28,599 $28,599$28,59

9 $299,160ExpensesAccounting fees $1,265 - - - - - - - - - - - $1,265Advertising $240 - - $210 - - $240 - - $210 - - $900Licenses $620 - - - - - - - - - - - $620Bank charges $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $360Loan repayment $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $18,061Water $187 $187 $187 $187 $187 $187 $187 $187 $187 $187 $187 $187 $2,244Electricity $916 $916 $916 $916 $916 $916 $916 $916 $916 $916 $916 $916 $10,996Insurance $96 $96 $96 $96 $96 $96 $96 $96 $96 $96 $96 $96 $1,152Wifi $70 $70 $70 $70 $70 $70 $70 $70 $70 $70 $70 $70 $840


Postage, telephone and fax $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $720Stationery $58 $58 $58 $58 $58 $58 $58 $58 $58 $58 $58 $58 $696Rent $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $95,124Repairs and maintenance - - - - - $255 - - - - - $255 $510Sundries $334 $334 $334 $334 $334 $334 $334 $334 $334 $334 $334 $334 $4,013Payroll $240 $240 $240 $240 $240 $240 $240 $240 $240 $240 $240 $240 $2,880Workers compensation $2,115 - - - - - - - - - - - $2,115Depreciation - coffee machine $258 $258 $258 $258 $258 $258 $258 $258 $258 $258 $258 $258 $3,100Depreciation - computer $27 $27 $27 $27 $27 $27 $27 $27 $27 $27 $27 $27 $320Wages $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $60,000

Total $20,949 $16,709 $16,709 $16,919 $16,709$16,96

4 $16,949 $16,709 $16,709 $16,919 $16,709$16,96

4 $205,915Result

Net profit $538 $4,778 $4,778 $6,716 $6,926 $6,671 $9,050 $9,290 $9,290 $11,680 $11,890$11,63

5 $93,245Gross profit margin 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60%Net profit margin 2% 13% 13% 17% 18% 17% 21% 21% 21% 25% 25% 24% 19%

Cash flow forecast 2017 - 2018

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Totals

Starting cash position $80,184 $81,007 $86,070 $91,133 $98,134$105,34

5 $112,302 $121,637$131,21

3 $140,788 $152,753$164,92

9IncomingCash sales $35,811 $35,811 $35,811 $39,392 $39,392 $39,392 $43,332 $43,332 $43,332 $47,665 $47,665 $47,665 $498,600

Collections from accounts receivable $0

Other cash receipts $0Total $35,811 $35,811 $35,811 $39,392 $39,392 $39,392 $43,332 $43,332 $43,332 $47,665 $47,665 $47,665 $498,600OutgoingFixed costs $18,986 $14,986 $14,986 $14,986 $14,986 $15,241 $14,986 $14,986 $14,986 $14,986 $14,986 $15,241 $184,343

AdministrationWages $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000


Payroll $240 $240 $240 $240 $240 $240 $240 $240 $240 $240 $240 $240

Stationery $58 $58 $58 $58 $58 $58 $58 $58 $58 $58 $58 $58

Operations


Accounting fees $1,265

Licenses $620

Bank charges $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30

Loan repayment $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505

Insurance $96 $96 $96 $96 $96 $96 $96 $96 $96 $96 $96 $96

Rent $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927

Repair and maintenance - - - - - $255 - - - - - $255

Wifi $70 $70 $70 $70 $70 $70 $70 $70 $70 $70 $70 $70

Postage, telephone and fax $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60Variable costs $16,002 $15,762 $15,762 $17,405 $17,195 $17,195 $19,011 $18,771 $18,771 $20,714 $20,504 $20,504 $217,592


Electricity $916 $916 $916 $916 $916 $916 $916 $916 $916 $916 $916 $916

Sundries $334 $334 $334 $334 $334 $334 $334 $334 $334 $334 $334 $334

Marketing $240 - - $210 - - $240 - - $210 - -

OperationsCost of goods sold $14,324 $14,324 $14,324 $15,757 $15,757 $15,757 $17,333 $17,333 $17,333 $19,066 $19,066 $19,066 $401,935

Total $34,988 $30,748 $30,748 $32,391 $32,181 $32,436 $33,997 $33,757 $33,757 $35,700 $35,490 $35,745ResultChange during month $823 $5,063 $5,063 $7,001 $7,211 $6,956 $9,335 $9,575 $9,575 $11,965 $12,175 $11,920

Closing cash position $81,007 $86,070 $91,133 $98,134 $105,345$112,30

2 $121,637 $131,213$140,78

8 $152,753 $164,929$176,84

9



Cash $176,849

Dog $490



Computer $1,599(-) Accumulated depreciation -$640

Equipment $12,328


Furniture $3,173

Total assets $203,098LiabilitiesLong-term liabilities $50,000

Borrowings $50,000


Net assets $153,098Owner's equity Does not balance by ($0)

Retained earnings -$190,147

Current year earnings $93,245



Year 2018 – 2019Profit and loss forecast 2018-2019

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar TotalsSales

Sales (invoiced) $47,367 $47,367 $47,367 $52,103 $52,103$52,10

3 $57,313 $57,313 $57,313 $63,045 $63,045$63,04

5 $659,484

Cost of goods sold $18,947 $18,947 $18,947 $20,841 $20,841$20,84

1 $22,925 $22,925 $22,925 $25,218 $25,218$25,21

8 $263,794

Gross profit $28,420 $28,420 $28,420 $31,262 $31,262$31,26

2 $34,388 $34,388 $34,388 $37,827 $37,827$37,82

7 $395,690ExpensesAccounting fees $1,265 - - - - - - - - - - - $1,265Advertising $240 - - $210 - - $240 - - $210 - - $900Licenses $620 - - - - - - - - - - - $620Bank charges $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $360Loan repayment $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $18,061Water $206 $206 $206 $206 $206 $206 $206 $206 $206 $206 $206 $206 $2,468Electricity $1,008 $1,008 $1,008 $1,008 $1,008 $1,008 $1,008 $1,008 $1,008 $1,008 $1,008 $1,008 $12,095Insurance $96 $96 $96 $96 $96 $96 $96 $96 $96 $96 $96 $96 $1,152Wifi $70 $70 $70 $70 $70 $70 $70 $70 $70 $70 $70 $70 $840Postage, telephone and fax $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $720Stationery $58 $58 $58 $58 $58 $58 $58 $58 $58 $58 $58 $58 $696Rent $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $95,124Repairs and maintenance - - - - - $255 - - - - - $255 $510Sundries $368 $368 $368 $368 $368 $368 $368 $368 $368 $368 $368 $368 $4,414Payroll $240 $240 $240 $240 $240 $240 $240 $240 $240 $240 $240 $240 $2,880Workers compensation $2,115 - - - - - - - - - - - $2,115Depreciation - coffee machine $258 $258 $258 $258 $258 $258 $258 $258 $258 $258 $258 $258 $3,100Depreciation - computer $27 $27 $27 $27 $27 $27 $27 $27 $27 $27 $27 $27 $320Wages $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $60,000

Total $21,093 $16,853 $16,853 $17,063 $16,853$17,10

8 $17,093 $16,853 $16,853 $17,063 $16,853$17,10

8 $207,640Result

Net profit $7,328 $11,568 $11,568 $14,199 $14,409$14,15

4 $17,295 $17,535 $17,535 $20,764 $20,974$20,71

9 $188,050Gross profit margin 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60%


Net profit margin 15% 24% 24% 27% 28% 27% 30% 31% 31% 33% 33% 33% 29%

Cash flow forecast 2018 - 2019Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Totals

Starting cash position $178,873 $186,486$198,33

9 $210,191$224,67

5 $239,370 $253,809$271,38

9 $289,210$307,03

0 $328,079$349,33

9IncomingCash sales $47,367 $47,367 $47,367 $52,103 $52,103 $52,103 $57,313 $57,313 $57,313 $63,045 $63,045 $63,045 $659,484Collections from accounts receivable $0

Other cash receipts $0Total $47,367 $47,367 $47,367 $52,103 $52,103 $52,103 $57,313 $57,313 $57,313 $63,045 $63,045 $63,045 $659,484OutgoingFixed costs $18,986 $14,986 $14,986 $14,986 $14,986 $15,241 $14,986 $14,986 $14,986 $14,986 $14,986 $15,241 $184,343

AdministrationPayroll $240 $240 $240 $240 $240 $240 $240 $240 $240 $240 $240 $240

Wages $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000


OperationsAccounting fees $1,265

Licences $620

Bank charges $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30

Loan repayment $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505 $1,505

Insurance $96 $96 $96 $96 $96 $96 $96 $96 $96 $96 $96 $96

Stationary $58 $58 $58 $58 $58 $58 $58 $58 $58 $58 $58 $58

Rent $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927 $7,927

Repair and maintenance - - - - - $255 - - - - - $255

Wifi $70 $70 $70 $70 $70 $70 $70 $70 $70 $70 $70 $70

Postage, telephone and fax $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60Variable costs $20,768 $20,528 $20,528 $22,633 $22,423 $22,423 $24,747 $24,507 $24,507 $27,009 $26,799 $26,799 $283,671


Electricity $1,008 $1,008 $1,008 $1,008 $1,008 $1,008 $1,008 $1,008 $1,008 $1,008 $1,008 $1,008

Sundries $368 $368 $368 $368 $368 $368 $368 $368 $368 $368 $368 $368

Marketing $240 - - $210 - - $240 - - $210 - -


OperationsCost of goods sold $18,947 $18,947 $18,947 $20,841 $20,841 $20,841 $22,925 $22,925 $22,925 $25,218 $25,218 $25,218

Total $39,754 $35,514 $35,514 $37,619 $37,409 $37,664 $39,733 $39,493 $39,493 $41,996 $41,786 $42,041 $468,014

ResultChange during month $7,613 $11,853 $11,853 $14,484 $14,694 $14,439 $17,580 $17,820 $17,820 $21,049 $21,259 $21,004

Closing cash position $186,486 $198,339$210,19

1 $224,675$239,37

0 $253,809 $271,389$289,21

0 $307,030$328,07

9 $349,339$370,34

3



Cash $370,343

Dog $490



Computer $1,599(-) Accumulated depreciation -$960

Equipment $12,328

Furniture $3,173

Total assets $393,172LiabilitiesLong-term liabilities $50,000

Borrowings $50,000


Net assets $343,172Owner's equity Does not balance by ($0)

Retained earnings -$94,878

Current year earnings $188,050



Break-even analysis 2016-2017

Average selling price per unit $15Average cost of each unit $6Gross profit margin 60%Fixed costs $398,802Dollar sales to break even $664,670Number of unit sales to break even 44,311 Break-even analysis 2017-2018

Average selling price per unit $15Average cost of each unit $6Gross profit margin 60%Fixed costs $205,915Dollar sales to break even $342,446Number of unit sales to break even 22,382 Break-even analysis 2018-2019

Average selling price per unit $16Average cost of each unit $6Gross profit margin 60%Fixed costs $207,640Dollar sales to break even $344,595Number of unit sales to break even 22,089


10.5 Appendix 5: Survey Result


10.6 Appendix 6: Café Menu


10.7 Appendix 7: Packaging


10.8 Appendix 8: Storyboard


1 2

3 4

5 6

10.9 Appendix 9: Floor Plan Layout


Wroof Cafe - Start Up PID template

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