To succeed in convincing banks and investors to finance the opening of your coffee shop, you must plan to put together a good business plan.
This must detail in a very precise way, your project, your added value, and your financial viability.
The manager’s blog offers you a plan to follow to carry out your coffee shop business plan, with each part the essential questions to ask and the elements to plan.
The business plan is generally broken down into two parts, one part (editorial part), which demonstrates the economic feasibility of your project, and the other (financial forecast), which assesses your financial projections for startup.
THE EDITORIAL PART OF YOUR BUSINESS PLAN
The Executive Summary
The executive summary is a summary of your project. It presents in a few words the vision and the reason for launching your business creation. To do this, he details:
- Your concept (problem, solution),
- Your product offer,
- Your value proposition (what you bring to your customers)
- Your potential market,
- The founding team.
It is important to pay attention to the quality of the writing of your executive summary because it will contribute in a more or less important way to the interest which the reader will carry to go to the end of the reading of your business plan.
Presentation of the Problem (The Problem)
This part will explain the reasons why you want to open your coffee shop. This part of your business plan should answer the question: what is the need that your project meets? In other words, what problem does your project solve?
Presentation of the Project (The Solution)
In this part, present the characteristics of your project, it must correspond to the solution of the problem cited above and must provide answers to the following questions:
What is the concept of your project? Classic coffee shop, musical coffeeshop, cat bar, a coffee shop with a coworking space, bookstore cafes, alcohol-free coffee shop, etc., and how does it meet your target’s needs?
Who are your clients? (Morning customers, business customers, or workers between noon and 2, after work customer, the nomadic customer? Etc.)
Where would you like to settle? (Downtown, near a busy street, in a shopping center; etc.)? Give more detail on the location of your coffee shop, this is very important;
What services will you offer (Wifi, a variety of drinks (a very good coffee), pastries, a comfortable place, piped music, happy hour, events, etc.)
Does your activity require specific skills or diplomas (internship, compulsory training)?
Presentation of the Team
Introduce the members of your team, with each the corresponding responsibilities and tasks, skills, and common values. The quality of the service that you are going to offer to your future customers will depend mainly on the quality of this team. The following questions will help you properly introduce your team members:
- Who are the key team members?
- What training have they taken?
- What experiences have they gained? Are these consistent with your project?
- What tasks and responsibilities will each member perform?
This step will allow you to validate the existence of a commercial opportunity in your market and, therefore, to better position yourself. You can delegate the task of market research to professionals (specialized firms, independent consultants, etc.) if you prefer to do it yourself, favor reliable sources of information. The fundamental questions and elements to know: Environmental analysis:
- The state of your sector (Current and future trends)
- Competitive intensity
- What are the main trends in coffee shop activity?
- Who are the potential actors around the location (schools, businesses, public services, etc.)?
- Who are your competitors?
- How many are they?
- Where are they located?
- What do they offer?
- At what price?
- What turnover do they achieve?
- On what occasions do they go-to coffee shops? How frequently?
- Which rates are you prepared to pay for your service?
- What are their expectations?
Your market research findings should prove that your product or service has a market. These conclusions will allow you to properly build your commercial strategy as well as your activity hypotheses.
The Value Proposition
In this part, you must put forward all your competitive advantages and the elements that differentiate you from your direct and indirect competitors. You have to answer the central question: what makes your coffeeshop different from others? You can highlight the following:
- The location of your coffee shop;
- An attractive menu and the quality of your products;
- Very good knowledge of coffee;
- Diversity, speed, and quality of your services;
- The originality of your concept (relaxing environment, etc.);
- Competent staff (warm welcome, genuine customer care, etc.)
The commercial strategy of your project helps to specify the ambitions and the commercial objectives (in particular in terms of turnover, growth) as well as the means to be implemented to achieve them. This should answer the following questions:
- What are the customer segments that you will target primarily?
- What means will you use to reach them?
- What will be your pricing policy?
THE FINANCIAL PART OF YOUR BUSINESS PLAN
The forecast part is mainly composed of 4 financial tables; each one has an objective. You will find in particular;
- The provisional income statement
- The provisional balance
- The cash flow plan
- The financing plan
The Provisional Income Statement
The income statement is the financial table that will answer the question: is your project profitable?). This table lists the income that you will generate and the expenses that you will incur as part of your activity. And allows calculating the result at the end of the year (the difference between the total sum of products and the total sum of charges).
The forecast revenues are mainly composed of the turnover and the various operating subsidies that you can obtain within the framework of your activity.
Expenses to be expected
The provisional charges are the expenses that will be incurred by your activity. We mainly distinguish (non-exhaustive list): Creation costs
- Costs of drafting legal statutes,
- Company registration,
- Publication of a legal notice.
- The supply of raw materials;
- Purchase of supplies (cups, cleaning products, Tableware, payment terminal, office supplies, etc.);
- In case of rental, the rent of the commercial premises of the coffeeshop;
- Energy charges (electricity, gas, water),
- Costs of a chartered accountant;
- Marketing costs: advertising costs, opening campaigns, advertisements, website, flyer, etc.);
- Taxes and taxes
- Staff salaries (servers, manager, etc.) and social and employer charges,
- Your salary and your social contributions (health insurance, retirement, unemployment, etc.).
- Financial charges in case of purchase of the premises by borrowing;
Once the list of charges is well defined, you must separate it into two types of charges, those who do not vary with the evolution of turnover called fixed charges, and those which vary with the evolution of the turnover. Business called viable charges, this distinction will determine the break-even point (what to sell and for what amount to be profitable) and the break-even point (when to be profitable).
The Provisional Balance
The provisional balance sheet is the photograph of the assets that you will own in the future. Broken down into two parts, the active balance sheet lists all of your investments and receivables, and on the other hand, the liabilities of the balance sheet, which lists all your debts by the degree of payment (owners and creditors). In general, a coffee shop requires the following investments (non-exhaustive list):
Investments to plan
- Purchase of premises (in case of non-rental);
- Furniture: tables, chairs, counters, possibly furniture for the terrace;
- Equipment: coffee machine (espresso for example), percolators;
- Dishwasher, cash register, etc. ;
- Marketing investments: brand, website, etc. ;
- From stock: coffee, teas, napkins, cardboard cups, food products, etc.
- Furnishing and decoration;
The Financing Plan
The financial plan makes it possible to transcribe the financing needs of the project and the corresponding financing (from banks & investors), it makes it possible to answer the question: are the resources sufficient to finance the financing needs of your project.