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  • Published on: 14th September 2019
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  BUSINESS PLAN FOR COFFEE SHOP

      

PROJECT BY

Sanya (STUDENT ID: T00587261)

 Course code 1711

  In partial fulfillment of requirement for

 POST BACCALAUREATE DIPLOMA IN HUMAN RESOURCE MANAGEMENT

  THOMPSON RIVERS UNIVERSITY

 2018

ASSIGNMENT 2

Part A: Your Role as an Entrepreneur or Small-Business Owner

1. As an Entrepreneur, it is very important to be aware of one's strengths and weaknesses. For me the strengths include:-.

Attitude

My thoughts will focus on what is possible even when things seem impossible. (Senyoretah, p. 7).

My words will try to encourage everyone to do their best and spark a laugh when appropriate.  (Senyoretah, p. 7).

Principles

I will lead with empathy – listening attentively, seeking to understand, and leveraging the experience and talents of others fully. (Senyoretah, p. 10).

I will lead with a learning mindset, knowing that situations change, people change, and learning equals growth. (Senyoretah, p. 7).

Strong leadership skills  

It is very important to be able to lead the employees in the right direction. Employees need guidance and support which as an owner I believe I can deliver.

Strong organizational skills

I have the ability to do the multitasking. I can keep a track of everything and set priorities and get things done.

Intelligence

I will be able to predict problems before they arise and take measures to avoid them. I am a street smart person.

Management ability

A start-up is all about managing relationships- with customers, clients, employees, suppliers, lawyer, banker, and family. It is my strength.

Optimism

Being positive even in worse situations and thinking wisely is what I do. And it is very important when you are the owner and there are people below you waiting for instructions and commands.

Other than strengths it is very important that I work on my weaknesses. Few of them are the shortage of finances. We have no brand association. With great employees and hard work, it is possible to convert my weaknesses into strengths.

2. Things that I will do to maximize my strengths and minimize my weaknesses are as follows:-

● Increased in socialization amongst the youth

● Increasing coffee culture in Canada

● Releasing own range of products to take home

● Grab the right opportunities at the right time

● Train employees before they start serving the customer

● Provide best product and service

● Transparency in the business

● Incentives to the employees

● Build a nurture customer relationship

● Attract and retain talented employees

● Simplify day-to-day activities and automate workflows to improve productivity

Part B: Analyzing a Business

SWOT ANALYSIS

1. SWOT analysis of Bubble Tea which is in the same industry as mine, listing its main strengths, weaknesses, opportunities, and threats.

Strengths

● Specialist in tea with its own signature blend

● Situated in the prime location of the city - opposite UCH, McGill Road

● Priced as per students

Weaknesses  

● Few Servers

● Don't understand English properly

● Poor customer service

Opportunities

● Create awareness amongst the youth

● Increasing tea culture

● Releasing own range of products

Threats

● Established businesses such as Starbucks and Tim Hortons

● Supplier increasing prices

● High Retail rent

2.  A list of critical success factors your business must have in order to compete in the related industry and be successful year after year are as follows:-

● The Metrics - It is very important to get the balance of overheads to the turnover right. Getting it positive means the business is earning enough profits that can help it grow. The total cost of rent should be less than 10% of total sales.

● Location - If the business is set up in a location where there is high demand for our product it could be beneficial. The business with automatically grow. Increasingly people are looking for a ‘third place' to spend time that's neither home nor work. Create different zones in the coffee shop as customers drop in for many reasons: whether it's for work, meetings or just chilling, you need to have a zone that matches.

● Consistency - Business should be consistent in its dealings. Also, the drinks and the food should be served in a consistent way. People come back for the same taste they had last time and not different.

● Relationships - Building a strong relationship with the local community gives you the advantage over bland big brand neighbors. This is easy to achieve: a good notice board, offering your space for meetings, making friends with clubs and societies, donating to schools and charities all build a relationship with people very quickly.

● Innovation - Customers get tired of the same thing; the successful coffee shop will stay relevant in their minds by continual innovation and development of service while remaining true to their inherent values

● Keep Relevant - Keep up to date with food, health, and nutrition developments but being selective is the key to success. Bringing in too many new initiatives often causes confusion. By following your values and filtering out the fads that are not relevant, you will have a clear proposition that your customers will understand and increase loyalty.

● Local Experts - Today's coffee drinkers are fussy. Through the expansion of the 4th and now 5th wave coffee shops consumers are more open to trying new brew methods and roasting styles. Successful independents are becoming the local experts and adding to the collective knowledge of their consumers, thus steering them away from commodity suppliers.

● Lifecycle - There is an unfortunate three-year cycle in the independent coffee shop business: Year 1 honeymoon period; Year 2 reality hits home if the bar is not as profitable as forecast; Year 3 decline and closure. The successful independent will have a very different first three years: Year 1 high growth phase; Year 2 consolidation and solid profit; Year 3 refurb and expansion. A well-executed refit will increase sales and pay for itself in a few months

● People - The long-term success of any business is down to the people who work there. Aim to become the best place in town to work as this will make sure you attract and retain the best people. Through a combination of good selection and recruitment, ongoing training and above average reward package, your coffee house will flourish

● Marketing - Good marketing (and not just on social media) should be planned and focused on the local community. Getting the names and email addresses of your customers allow you to talk to them regularly and share your story. It's your duty to shout about what makes your business so special.

● Know Your Numbers - Finally, being on top of the numbers by knowing weekly your costs and what profit you have made is non-negotiable. The variance in sales day to day, week to week can be volatile and unpredictable and affected by many things outside your control. Remember: never be caught napping by the espresso machine.

Part C: Business Ownership

1. The pros and cons of each of the following forms of business ownership in relation to our business idea:

A. Sole proprietorship

Pros - Easy setup

   Full control

    Tax Advantages

Cons - Uncertain Business Life

   Full personal liability

B. Partnership

Pros - Extra set of hands

    Less financial burden

    Fewer tax forms

   More knowledge and ideas

Cons - Less Control

    Possible conflicts

   Divided Profits

C. Corporation, including a single owner corporation

Pros - Limited liability over the business debts and activities

   Attracts more investors

   There is an established power structure

Cons - More time and cost

    More complicated

    Heavy regulations

D. Specialized forms—co-ops and joint ventures

Pros - More access to capital

   Limited external regulations

Cons -  More time and money to develop

   Possible conflicts

E. Franchise

Pros - Established brand and customer base

   Market support

    Reputable suppliers

    Reduced risk

Cons - Limited flexibility

    Locked in long-term contracts

    Royalty payments

   Mergers and acquisition

Pros - It adds more value to the combined entity than either individual company can produce on its own.

   It opens up new markets for both companies

   It is a cost-effective method to fuel expansion.

   It can create multiple growth opportunities.

Cons - It creates distress within the employee base of each organization.

   It may increase the amount of debt that is owed.

    There can be differences in corporate culture that are not easy to consolidate. (Elisa, 2016)

    It isn't a one person decision most of the time. (Elisa, 2016)

2. FORM OF BUSINESS OWNERSHIP

Sole Proprietorship

Sole Proprietorship is an unincorporated business with one owner who pays personal income tax on profits from the business. ( Kenya Business Guide ). The reason why I prefer this form of business is that it's easy to operate and can be easily managed. There are several advantages of sole proprietorship such as:-

The owner can establish a sole proprietorship instantly, easily and inexpensively.

The number of formalities is too low in a sole proprietorship.

There is no form of dependency

You are the only owner. This means full control over the business activities. No form interference from anyone else.

No gain or loss is shared

Part D: Canadian Business Laws and Regulations, and Customer Satisfaction

1. The Canadian business laws and regulations that govern our industry and my business. Canadian and provincial laws and regulations and also covered by municipal bylaws.

Municipal Permits (4)

1. Business Licence - A licence for a person carrying on a commercial or industrial undertaking including professional, personal or other services with a purpose of gain or profit.

2. Hood Permit (Parking Meter) - A permit which reserves or restricts parking spaces.

3. Sandwich Board Sign Permit  - A permit which regulates the use and placement of a sandwich board sign on the sidewalk.

4. Sign Permit - A permit to allow a sign on the property or building.

Provincial or Territorial Permits (11)

1. Amusement Devices Installation Permit - A permit is required to  install and operate an amusement device in BC.

2. Amusement Devices Licence - A licence is required for all contractors that operate, install, perform maintenance, test and alter amusement devices by BCSA.

3. Amusement Devices Operating Permit - A permit will be issued once the amusement device has passed the acceptance inspection and you have paid the operating permit invoice. Additional fees may be charged if the amusement device does not pass the acceptance inspection.

4. Boiler Installation Permit - Licensed contractors and owners need a permit before they install, operate or perform maintenance on any boiler, refrigeration system such as:

○ Hot water boilers with a heating surface area exceeding 3 m2

○ Steam boilers with a heating...

5. Boiler Operating Permit - A permit is required for owners of regulated equipment in:

○ commercial

○ residential

○ industrial

○ institutional

○ public assembly buildings

6. Boiler Technology Contractor Licence - A licence is required for all contractors working with boiler and pressure vessel technology.

7. Electrical Contractor Licence - A contractors licence is required to operate a business providing electrical services in the Province of BC.

8. Electrical Homeowner Permit - A permit is required for all homeowners doing regulated electrical work.   

9. Electrical Installation Permit - A permit is required for licenced contractors before they begin to install electrical products.   

10. Electrical Licence - A licence is required by the BC Safety Authority if you intend to be hired by others to perform electrical work.  

11. Electrical Operating Permit - A permit is required for owners of high voltage equipment, any system with a supply over 250 kVA or a building with this type of equipment or supply.

Federal Permits (2)

1. Agreement to Implement Employment Equity - If you employ 100 or more employees and want to bid on a federal government contract of $1 million or more, you will need to:

○ Sign the Agreement to Implement Employment Equity to become certified

○ Collect information on your...

2. Federal Business Registration - To register your business, you may need a business number. A number is necessary if you require:

○ GST/HST

○ Payroll

○ Excise

○ Corporate income tax

○ Import/export account

2. Five things that I will do to assure customer satisfaction in my business are as follows:-

● Identify the target market

It is very important to study the type and kind of customers that visit the coffee shop. Mothers, office workers, university kids, young guys etc. Based on the research we can produce and offer what our customers love the most. Also, it is important that we offer a wider selection of drinks and food , in line with what they usually prefer.

● Good Service

Service staff should be polite, fast (perfectly clean cup and table), humble and interactive with the customers. The customers come back only when the like the taste and the staff. Both are crucial for business growth.

● Good quality for the money

There should be high quality for the money, without diminishing or over-rating the offer. And we offer our products at a reasonable price. Hence provide quality products at a price that customers won't hesitate spending.

● Customized Service

To ensure the customers are satisfied and wish to come back, the products we serve should be good, both in terms of ingredients and preparation. Customising the service means knowing our customers well. If customers feel special and not just one of the many, they will be happy to come to your coffee shop regularly.

● Offer loyalty cards

To increase customer base we could also offer loyalty cards. We can offer discounts through this.

REFERNCES

1. Senyoreta. For example i believe open respectful collaboration. Retrieved from https://www.coursehero.com/file/p3shiak/For-example-I-believe-open-respectful-collaboration-can-solve-any-problem-I/

2. Kenya Business Guide. Sole Proprietorship. Retrieved from https://kenyabusinessguide.org/getting-started/sole-proprietorship/

3. Grace, Elisa. (2016, August 24). What are the disadvantages of mergers? Retrieved from

https://www.quora.com/What-are-the-disadvantages-of-mergers

4. Government of Canada. Retrieved from

https://canadabusiness.ca/search-permits/results/?j=Kamloops%2C+British+Columbia&sgc=5933042&s=Specialty+food+stores+%28health+food%2C+cheese%2C+coffee+%26+tea%2C+etc.%29&naics=445299&a%5B%5D=26576&a%5B%5D=26577&a%5B%5D=26584&a%5B%5D=26544&a%5B%5D=26559&a%5B%5D=26569

5. How to Increase Customer Satisfaction and Build Customer Loyalty. Retrieved from

https://www.caffevergnano.com/en/baristas-corner/to-increase-customer-satisfaction-and-build-customer-loyalty

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