Business Plan
Hifriends
Example1.pdf
Running head: FINAL BUSINESS PLAN 1
April 19th, 2019
FINAL BUSINESS PLAN 2
GF³: Gluten Free, Guilty Free, Good Food
1009 Fairfield Road, Victoria, B.C.
(555)-881-4444
April 19th, 2019
Lindsay Smith, Founder
FINAL BUSINESS PLAN 3
Table of Contents Executive Summary ......................................................................................................................... 5
Company Description ...................................................................................................................... 6 Name of Business ...................................................................................................................................... 6 Company History ...................................................................................................................................... 6 Mission Statement ..................................................................................................................................... 6 Tagline ....................................................................................................................................................... 6 Products and Services ................................................................................................................................ 6 Current Status ............................................................................................................................................ 7 Legal Status and Ownership ...................................................................................................................... 7
Industry Analysis ............................................................................................................................. 8 Size of the café industry ............................................................................................................................ 8 Growth rate of the café industry ................................................................................................................ 8 Sales projection ......................................................................................................................................... 8 Trends of the industry ............................................................................................................................... 9 Key success factors ................................................................................................................................. 10
Market Analysis ............................................................................................................................. 11 Market Segmentation .............................................................................................................................. 11 Buyer Behaviour ..................................................................................................................................... 11
Direct Competitors ............................................................................................................................................. 11 Indirect Competitors ........................................................................................................................................... 12
Summary ................................................................................................................................................. 13 Marketing Plan .............................................................................................................................. 14
Overall Marketing Strategy ..................................................................................................................... 14 Positioning ............................................................................................................................................... 14 Points of Differentiation .......................................................................................................................... 14 Pricing Strategy ....................................................................................................................................... 15 Promotion mix ......................................................................................................................................... 15
Management Team ........................................................................................................................ 16 Company Structure ........................................................................................................................ 18
Operations Plan ............................................................................................................................. 19 General Approach to Operations ............................................................................................................. 19 Backstage ................................................................................................................................................ 19 Front Stage .............................................................................................................................................. 19 Hours of Operation .................................................................................................................................. 19
FINAL BUSINESS PLAN 4
Business Location ................................................................................................................................... 20 Facilities .................................................................................................................................................. 20
Financial Projections ..................................................................................................................... 21
References ..................................................................................................................................... 22 Appendices
FINAL BUSINESS PLAN 5
Executive Summary
This business is a café that offers many breakfast and lunch options as well as baked
goods. This café will serve only gluten free items. There will also be some vegan and dairy free
options as well. This café will offer seating for people to sit and enjoy their breakfast or lunch,
but it will also have many pre-made options for people that wish to grab something to-go. This
café will be located in the Fairfield neighbourhood of Victoria, B.C.
The attractiveness of Gluten Free cafés is very strong. The age of this industry is fairly
young, as Gluten Free diets have only recently started to emerge within the past five years. the
importance of gluten free products is very high for customers and they are increasingly searching
for cafes and coffee shops that they can buy food from. There are many people that are being
diagnosed with Celiac Disease and self- diagnosing themselves to have a gluten sensitivity
(MacMillan, 2018). There is a gap in the marketplace for Gluten Free cafes in Victoria as there
are only a few competitors.
The target market that I am targeting is families and households that are have celiac
disease as well as men and woman between the ages of 18 – 40. Customers in my target market
are unsatisfied based on the limited number of gluten free cafes that are in Victoria. There is
much excitement around the ability to find accessible, inexpensive Gluten Free, vegan, and dairy
free alternatives. The acceptance for this business will be very high among my target market.
GF³ will have a presence on social media, more specifically, Facebook and Instagram in
order to market themselves to the general public. GF³ will also partner with the Victoria visitors
center in order to make tourists aware of this delicious café.
CEO will be funding this business and does not require any angel investors. The total
cost for start-up will be $54,010.07.
FINAL BUSINESS PLAN 6
Company Description Name of Business
GF³: Gluten Free, Guilty Free, Good Food LLC.
Company History
The initial idea for this Gluten Free café started when the founder was diagnosed with
Crohns Disease. Immediately she changed her diet to eating Gluten Free food only in order to
help keep her disease in remission. Throughout her journey of changing and adapting her
lifestyle to become Gluten Free, she found there was limited options for people who are Gluten
Free and want quick and tasty GF lunch items. This is how the concept for a Gluten Free café
was generated.
Mission Statement
The mission of GF³ is to contribute to a healthy, balanced, gluten free lifestyle through
our amazing food and drink. We always use ethically produced and organic ingredients in all of
our items. We strive to create a comfortable, welcoming, and Gluten Free environment for
everyone to enjoy.
Tagline
The company’s tagline, which will be used in most of their marketing initiatives, is
“Modern food for the Modern Lifestyle”. This tagline represents the café appropriately as
Gluten Free foods are a relatively modern development and the individuals that consume it are
living a modern lifestyle.
Products and Services
The GF³ café offerings have been guided by the results of its feasibility analysis. Based
on the analysis, GF³ will offer breakfast and lunch items that are all Gluten Free. In addition to
FINAL BUSINESS PLAN 7
the food items, the café will also offer various beverage items such as specialty coffee, teas,
juices, and smoothies.
Current Status
GF³ café is still in the start-up stage. We have completed a feasibility analysis, selected
and registered the name and written a business plan. We have hired a management team
consisting of the CEO, Lindsay Smith, Manager, Cassandra Jones, and Executive Chef, Lex
Tong. There may be more hires in the future after a few months of operation.
Legal Status and Ownership
GF³ is a Limited Liability Corporation incorporated in the province of British Columbia.
It is currently owned by its Founder and CEO, Lindsay Smith.
FINAL BUSINESS PLAN 8
Industry Analysis According to the NAICS association (2018) the industry code is 722515 and it is
comprised of establishments that are primarily engaged in preparing and serving specialty snacks
or serving non-alcoholic beverages such as coffee, juices for consumption on or near the
establishment. These establishments may carry and sell a combination of snacks, non-alcoholic
beverages and other products. My business fits into this industry because I will sell gluten free
baked goods, lunch items, breakfast items, coffee, tea, smoothies, and juices.
Size of the Café Industry
Growth Rate of the Café Industry
The growth rate of the café industry is 3.54% from 2016 to 2017 and 3.33% from 2017 to
2018 (IBIS World, 2018). This shows an exponential growth of the café industry, which means
that there is a reasonable chance that the industry will continue to see a positive percentage
growth in the future.
Sales Projection
For the first year of sales, I am estimating the total sales of beverages and food items will
generate $650 per day which is then multiplied by 365 days per year to receive a total of
$237,250 for year one. The sales projection for year two of my business is based on an
$2.8 Billion
$2.9 Billion
$ 3.0 Billion
2016 2017 2018
Size of cafe industry
FINAL BUSINESS PLAN 9
estimation that the daily sales of the café will increase by $100. Therefore, based on $750 sales
per day multiplied by 365 days per year, the year two sales are projected at $273,750.
Trends of the Industry
The trends of the café industry can be seen in appendix C. These trends are important for
my business to consider as they could either positively or negatively affect the success of my
business. According to Pohl (2017) the political instability in some source countries for coffee is
causing the cost to increase. This means that it is important to consider the possibility for high
costs to import fair-trade, sustainable coffee. As long as this information is known, it will not
have a negative effect on my business. According to Terazono (2017) the global gluten free
retail market is growing, which means that the sales of my gluten free food items will be strong.
This is also because there are many people that have already switched to a gluten free lifestyle
and there are many more people projected to change their diets and eliminate wheat products;
this will be a positive trend for my business. The social trend of compostable supplies is a very
important factor to take into consideration. In order to satisfy the need for sustainability, I will
ensure that the supplies such as coffee cups, lids, protective sleeves, etc., will all be compostable
or recyclable. Otherwise, I may lose customers that are concerned about the environment if I do
not supply them with these items. Additionally, the technological advancements of being able to
track customer transactions will be important for my business to take into consideration. I will
need to have payment systems that are able to keep record of transactions as it will help with
developing loyalty among customers (Lister, 2016). If I know customer buying history, I will be
able strategically offer them slight discounts for more expensive drinks and increase revenue that
way. All of these trends are important to my business to factor when making purchasing and
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marketing decisions. If I overlook one of these aspects, I could potentially lose customers and
money.
Key Success Factors
Key success factors for my café are the products that I will be offering to my customers.
They can be sure that the quality of gluten free snacks that are sold in this café will be high and
the taste will not be compromised. Gluten free baked goods are hard to find, therefore, a success
for my business will be the baked goods that will be made in this café. Customers can also be
happy to find complimentary Wi-Fi while they enjoy their breakfast, lunch, and snacks. The
quality of coffee that will be served in my café will be fair-trade and organic and only the finest
arabica beans. The location of my café is a success factor as there are very few competitors in
the Fairfield neighbourhood of Victoria. Of the competitors, this café will be the only one that
sells gluten free items. The staff that will work at this café will all be passionate about living a
healthy lifestyle. They will be trained baristas to ensure the specialty coffee served not only
tastes great, but also looks great. They will provide friendly and welcoming service to all of the
customers that walk through the doors. These success factors will be sure to make GF³: Gluten
Free, Guilty Free, Good Food a desirable café for all people to enjoy.
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Market Analysis Market Segmentation
According to Statistics Canada (2016) in Victoria, there are 29,375 people that are
between the ages of 18 and 40. There are 10,750 people with an annual income of $20,000 -
$29,999. Given this data, the target market for this café is men and woman, aged 18 – 40, with
an average annual income of $20,000 to $30,000. On average, the population of Victoria is
growing at .79 percent per year (Demographics, 2019). This is a positive number, as there will
always be customers in my target market.
Buyer Behaviour The customers to my café are the decision makers and it is all individual preference. The
length of the buying process will be very quick. Customers will simply decide that they are
hungry and/or thirsty, walk into my café, and make the decision to purchase food and or
beverage items. With the length of buying process very quick, the degree of involvement will be
low. There is only one person that needs to make the decision to purchase something, and once
they have paid for their meal and consumed it, they will be leaving the café satisfied. They will
not return until they feel the same thing of being hungry or thirsty.
Competitive Analysis
Direct Competitors
Origin Gluten-Free Bakery
This is a bakery that serves 100% Gluten Free items. The items on their menu range from bread,
cookies, pastries, cakes, and a small selection of breakfast and lunch items. They are located in
Oak Bay on Pandora Avenue and their hours of operation are 7:30am to 5:30pm. Origins has
very limited seating within the bakery and therefore customers typically order an item to-go.
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Bubby Rose’s Bakery & Café
Bubby Rose’s Bakery & Café serves a variety of bakery items as well as serves specialty coffees.
The also serves a small selection of Gluten Free items. They are located on Cook Street and are
open from 7:30am to 6:00pm. They also offer tables for customers to sit down and enjoy their
snack in a cozy atmosphere.
The Hot and Cold Café
This café is also located on Cook Street and serves a range of breakfast and lunch items.
Although their café is not certified to be Gluten Free, they do have a few Gluten Free items
available for those with dietary restrictions. They are open from 8:00am to 7:00pm and offer
cozy seating area.
Moka House
Moka House is a coffee shop that primarily serves coffee, however, they do offer a few food
items. They are located on Cook Street and are open from 6:00am to 10:00pm. They have three
other locations in Victoria and claim to be the ‘focal’ point of each neighbourhood offering a
place to meet, laugh, enjoy good food and coffee.
Indirect Competitors The indirect competitors for my business are Murchie’s Tea & Coffee, Starbucks, Picnic Too,
Discovery Coffee, and Macchiatto Caffe. These are indirect competitors because they do not
advertise themselves to serve Gluten Free items, although they may have a couple options, they
do not specialize in serving Gluten Free food. They offer close substitutes to my products but
cannot compete for the same market of people with dietary restrictions and Celiac Disease.
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Summary Located in appendix D are the areas where GF³ has advantages, disadvantages over its
competitors, as well as where it is even. Overall, GF³ is even to its competitors in location and
price but has an advantage over its competitors in regard to quality, service, and selection. GF³
is located very close to three other competitors which makes them equal, however, it may turn
out to be a disadvantage because it will be competing for many of the same customers and might
not be profitable. One way to make this an advantage is to consider expanding after a few
successful years of operation into another area of Victoria where there are even fewer
competitors.
FINAL BUSINESS PLAN 14
Marketing Plan Overall Marketing Strategy
The overall marketing strategy of GF³: Gluten Free, Guilty Free, Good Food is to make
individuals between the ages of 18 and 40 who have chosen a Gluten Free diet that live in
Victoria, British Columbia aware of our new café located on Fairfield road. These health-
conscious individuals will be notified of our new café through traditional print marketing such
as, newspapers, flyers, and posters. Additionally, GF³ will have a presence on social media,
more specifically, Facebook and Instagram. GF³ will also partner with the Victoria visitors
center in order to make tourists aware of this delicious café.
Positioning
GF³ café’s target market is male and females between the ages of 18 and 40. The café’s
position in the market is to offer delicious 100 percent certified Gluten Free breakfast, lunch and
snack items as well as specialty coffee and teas. Customers have the option to sit down and
enjoy their treats in the café while having access to complimentary wi-fi or to grab any item of
the menu and take it with them while they are on the go.
Points of Differentiation
• The quality of the food and beverage items at GF³ café are better than our competitors.
We can guarantee that we operate a certified Gluten Free café, which our competitors do
not.
• The level of our service to customers will be better than that of our competitors. All
customers will get personalized service, rather than transactional service at our
competitors cafes.
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• The selection and diversity of our menu will also set us apart from competitors. We will
offer quite a few different breakfast and lunch options. As well as, a large selection of
savoury baked goods.
Pricing Strategy
GF³ will adopt a cost-based pricing strategy. The prices will be marked based on the
food and beverage costs from suppliers. Our café will then mark up our menu items a
percentage, which is to be determined. Although this is a cost-based approach, our café will also
ensure that we are pricing items similarly to our competitors pricing in order to not lose potential
customers.
Promotion Mix
The promotion mix of GF³ includes traditional media coverage and social media
advertising. GF³ will be sure to put advertisements in the local newspaper and magazines. We
will also create one-page brochure/pamphlet which will be available on B.C Ferries and in
Victoria hotels. This will be done in preparation of opening day of the café to ensure we get
some traffic flowing on day one. We will also create a Facebook page and Instagram account
that will be guaranteed to get ‘likes’ and gain in popularity.
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Management Team
Lindsay Smith: Lindsay is the founder and CEO of GF³. She will be responsible for
overseeing all operations of the café and will work closely with Lex Tong in the ordering of food
supplies. She will also be responsible for ordering all the other supplies including coffee, tea,
utensils, etc. She will be in charge of payroll and all management aspects. Lindsay has 10
years’ experience in the food and beverage industry and 4 years management experience of
coffee shops and restaurants. Lindsay also has a bachelor’s degree in business administration.
She is passionate about serving Gluten Free breakfast and lunch options for Victoria locals as she
has transitioned to a Gluten Free diet
Cassandra Jones: Cassandra will be the manager of GF³: Gluten Free, Guilty Free, Good
food. She will be responsible for managing all employees and operations of the café. She will
be in charge of scheduling and reconciling transactions at the end of each day. She has 3 years’
experience as a manager of coffee shops and cafes and has been trained as a certified coffee
master. In addition, she also has a total of 8 years in the food and beverage industry. Her
previous educational background is a bachelor’s degree in hospitality and food service. Her
experience will be a great asset to managing GF³.
Lex Tong: Alex will be the executive chef of GF³ and will be responsible for baking and
cooking all the food items that will be on sale in the café. He will also be responsible for
ordering all of the food from suppliers. Alex has 5 years’ experience as a head chef of many
successful restaurants such as Boston Pizza and Olive Garden. He is also a certified red seal
chef. Alex has a bachelor’s degree in culinary management. Alex’s experience will be a
valuable asset to GF³ and he will produce top quality Gluten-Free breakfast and lunch options.
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Name Position Pay % of ownership Investment in
firm
Lindsay Smith CEO $40,000/year 100% 100%
Cassandra Jones Manager $30,000/year 0% $0
Lex Tong Executive Chef $30,000/year 0% $0
FINAL BUSINESS PLAN 18
Company Structure
Lindsay Smith, CEO
Cassandra Jones, Manager Lex Tong, Executive Chef
FINAL BUSINESS PLAN 19
Operations Plan General Approach to Operations
Operating a certified Gluten Free café is a very important business. It requires carefully
attention to ensure that all items that are supplied to us are produced in a Gluten Free facility.
We cater to individuals that choose to live a Gluten free lifestyle due to a disease or personal
preference. Therefore, it is extremely important that we can reassure our customers that have
Celiac Disease, that they are safe eating here.
Backstage
All of the breakfast, lunch, and snack items that are sold at GF³ will be made in-house by
our Executive Chef. The ingredients, however, will be purchased through a trusted supplier. All
health and safety requirements will be met through routine checks and health inspections every 5
months. Quality control measures are also put in place to ensure the quality of our food is
consistently up to our high standards.
Front Stage
Customers can expect a welcoming and clean environment where they can enjoy a good
cup of coffee, breakfast, and/or lunch. Our friendly staff will knowledgeable regarding our menu
items and we will also create a detailed menu that has the list of all ingredients in each item.
This is for all customers that wish to know the exact ingredients.
Hours of Operation
GF³ will be open seven days a week from 6:30 am to 4:00 pm. Hours may differ on
holidays.
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Business Location
GF³ will be located in the Fairfield neighbourhood of Victoria B.C. on Fairfield Road.
This location is very important as it is in amongst many residential and a few commercial
buildings. The area is within walking distance from the downtown core of Victoria but will offer
free parking in an adjacent lot. The café will be easy to for cars as well as pedestrians. There is
also a lot of foot traffic in the area, which is a great benefit for GF³. In the Summer months the
neighbourhood is a great place to go for walks and hang around in because of the nearby parks,
which is another benefit to the location of GF³.
Facilities
An important component of operations is the appliances in the café. We will have a large
commercial sized convection oven, which cooks things faster, more evenly, and more efficiently.
This oven is very important for the baked goods that will be baked in-house. The quality of the
items will be much better cooked in a convection oven than regular oven. It is also important to
have an industrial sized kitchen aid mixer. We will be able to make food on a larger scale with
the large mixer as opposed to a regular size mixer. Another appliance that is important in this
café is a proofer for bread. We will make some of our own Gluten Free bread for sandwiches
and breakfast items. The proofer will be very important when we are letting the bread rise,
because it can be customizable depending on the temperature required for the bread to rise.
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Financial Projections Please refer to the Excel Spreadsheet for GF³ financial statements Instructors Note – a short description of the financial documents was required but not included by this student.
FINAL BUSINESS PLAN 22
References
Demographics. (2019). Retrieved from https://townfolio.co/bc/victoria/demographics
IBIS world. (2018). Retrieved from https://www.ibisworld.ca/industry-trends/market-research-
reports/accommodation-food-services/coffee-snack-shops.html
Lister, J. (2016). Coffee Business Technology. Retrieved from
https://smallbusiness.chron.com/coffee-business-technology-73452.html
MacMillan, A. (2019). Tons of People Might Be Giving Up Gluten for Absolutely No Reason.
Retrieved from https://www.realsimple.com/health/nutrition-diet/healthy-eating/non-
celiac-gluten-free-trend
NAICS. (2018). Retrieved from https://www.naics.com/search Pohl, D. (2017, December 07). Political Instability, Climate Change and High Coffee Prices.
Retrieved from https://www.huffingtonpost.com/david-pohl/political-instability-
cli_b_826293.html
Statistics Canada. (2016). Retrieved from https://www12.statcan.gc.ca/census-
recensement/2016/dp-
pd/prof/details/page.cfm?Lang=E&Geo1=CSD&Geo2=PR&Code2=01&Data=Count&S
earchType=Begins&SearchPR=01&TABID=1&B1=All&Code1=5917034&SearchText=
victoria
Terazono, E. (2017). Gluten free: One of 3 trends shaking up commodities. Retrieved from
https://www.ft.com/content/5348432e-1a13-11e7-bcac-6d03d067f81f
FINAL BUSINESS PLAN 23
Appendix A
First Screen
Low Potential (- 1)
Moderate Potential (0)
High Potential (+1)
1. Extent to which the idea: • Takes advantage of
an environmental trend
• Solves a problem • Addresses an
unfilled gap in the marketplace
Weak Moderate Strong
2. Timeliness of entry to market
Not timely Moderately timely Very timely
3. Extent to which the idea “adds value” for its buyer or end user
Low Medium High
4. Extent to which the customer is satisfied by competing products that are already available
Very satisfied Moderately satisfied
Not very satisfied or ambivalent
5. Degree to which the idea requires customers to change their basic practices or behaviors
Substantial changes required
Moderate changes required
Small to no changes required
Part 2: Industry-Related Issues Low Potential (-
1) Moderate Potential (0)
High Potential (+1)
1. Number of competitors
Many Few None
2. Stage of industry life cycle
Maturity phase or decline phase
Growth phase Emergence phase
3. Growth rate of industry
Little or no growth
Moderate growth Strong growth
4. Importance of industry’s products and/or services to customers
“Ambivalent” “Would like to have”
“Must have”
5. Industry operating margins
Low Moderate High
FINAL BUSINESS PLAN 24
Part 3: Target Market and Customer-Related Issues Low Potential (-
1) Moderate Potential (0)
High Potential (+1)
1. Identification of target market for the proposed new venture
Difficult to identify
May be able to identify
Identified
2. Ability to create “barriers to entry” for potential competitors
Unable to create May or may not be able to create
Can create
3. Purchasing power of customers
Low
Moderate High
4. Ease of making customers aware of the new product or service
Low Moderate High
5. Growth potential of target market
Low Moderate High
Part 4: Founder Related Issues Low Potential (-
1) Moderate Potential (0)
High Potential (+1)
1. Founder or founders experience in the industry
No experience Moderate experience
Experienced
2. Founder or founders’ skills as they relate to the proposed new venture’s product or service
No skills Moderate skills Skilled
3. Extent of the founder or founders professional and social networks in the relevant industry
None Moderate Extensive
4. Extent to which the proposed new venture meets the founder or founders’ personal goals and aspirations
Weak Moderate Strong
5. Likelihood that a team can be put together to launch and grow the new
Unlikely Moderately likely Very likely
FINAL BUSINESS PLAN 25
venture Part 5: Financial Issues Low Potential (-
1) Moderate Potential (0)
High Potential (+1)
1. Initial capital investment
High
Moderate Low
2. Number of revenue drivers (ways in which the company makes money)
One Two to three More than three
3. Time to break even
More than two years
One to two years Less than one year
4. Financial performance of similar businesses
Weak Modest Strong
5. Ability to fund initial product (or service) development and/or initial start-up expenses from personal funds or via bootstrapping
Low
Moderate High
Overall Potential Score
(-5 to +1) Overall Potential of the Business Idea Based on Each Part
Suggestions for Improving the Potential
Part 1: Strength of Business Idea
+5 High potential Moderate potential
Low potential
Part 2: Industry-Related Issues
+1 High potential Moderate potential
Low potential
Part 3: Target Market and Customer-Related Issues
+5 High potential Moderate potential
Low potential
Part 4: Founder- (or
+3 High potential Moderate
FINAL BUSINESS PLAN 26
Founders-) Related Issues
potential Low potential
Part 5: Financial Issues
+1 High potential Moderate potential
Low potential
Overall Assessment +15
High potential Moderate potential
Low potential
FINAL BUSINESS PLAN 27
Appendix B
Industry Attractiveness
Low Potential Moderate Potential High Potential 1. Number of
competitors Many Few none
2. Age of industry
Old Middle Aged Young
3. Growth rate of industry
Little or no growth Moderate growth Strong growth
4. Average net income for firms in the industry
Low Medium High
5. Degree of concentration
Concentrated Neither concentrated nor fragmented
Fragmented
6. Stage of industry lifecycle
Maturity phase or decline phase
Growth Phase Emergence phase
7. Importance of industry’s products and/or services to customers
Ambivalent Would like to have Must have
8. Extent to which business and environmental trends are moving in favor of the industry
Low Medium High
9. Number of exciting new product and services emerging from the industry
Low Medium High
10. Long-term Prospects
Weak Neutral Strong
FINAL BUSINESS PLAN 28
Target Market Attractiveness
Low Potential Moderate Potential High Potential 1. Number of
competitors in target market
Many Few none
2. Growth rate of firms in the target market
Little or no growth Slow growth Rapid growth
3. Average net income for firms in the target market
Low Medium High
4. Methods for generating revenue in the industry
Unclear Somewhat clear Clear
5. Ability to create “barriers to entry” for potential competitors
Unable to create May or may not be able to create
Can create
6. Degree to which customers feel satisfied by the current offerings in the target market
Satisfied Neither satisfied or dissatisfied
Unsatisfied
7. Potential to employ low- cost guerrilla and/or buzz marketing techniques to promote the firm’s product or services
Low Moderate High
8. Excitement surrounding new product/service offerings in the target market
Low Medium High
FINAL BUSINESS PLAN 29
Market Timeliness
Low Potential Moderate Potential High Potential 1. Buying mood
of customers Customers are not in a buying mood
Customers are in a moderate buying mood
Customers are in an aggressive buying mood
2. Momentum of the market
Stable to losing momentum
Slowly gaining momentum
Rapidly gaining momentum
3. Need for a new firm in the market with your offerings or geographic location
Low Moderate High
4. Extent to which business and environmental trends are moving in favor of the target market
Low Medium High
5. Recent or planned entrance of large firms into the market
Large firms entering the market
Rumors that large firms may be entering the market
No larger firms entered the market or are rumored to be entering the market
Organizational Feasibility
Management Prowess
Low Potential Moderate Potential High Potential 1. Passion for the
business idea Low Moderate High
2. Relevant industry experience
None Moderate Extensive
3. Prior entrepreneurial experience
None Moderate Extensive
4. Depth of professional and social networks
Weak Moderate Strong
FINAL BUSINESS PLAN 30
5. Creativity among management team members
Low Moderate High
6. Experience and expertise in cash flow management
None Moderate High
7. College graduate
No college education Some college education but not currently enrolled in college
Graduated or are currently in college
Resource sufficiency
Ratings Resource Sufficiency 1 2 3 4 5 Office space 1 2 3 4 5 Lab space, manufacturing space, or space to launch a
service business 1 2 3 4 5 Contract manufacturers or outsource providers 1 2 3 4 5 Key management employees (now and in the future) 1 2 3 4 5 Key support personnel (now and in the future) 1 2 3 4 5 Key equipment needed to operate the business
(computers, machinery, delivery vehicles) 1 2 3 4 5 Ability to obtain intellectual property protection on key
aspects of the business 1 2 3 4 5 Support of local and state government if applicable for
business launch 1 2 3 4 5 Ability to form favorable business partnerships Ratings: Strong, Neutral, or Weak
Neutral Proximity to similar firms (for the purpose of knowledge sharing)
Weak Proximity to suppliers Strong Proximity to customers Not Applicable Proximity to a major research university (if applicable)
FINAL BUSINESS PLAN 31
Financial Feasibility
Total Startup Cash Needed
Capital Investments Amount Property 0.00 Furniture and fixtures $10,000 Computer equipment $2,000 Other equipment $13,500 Vehicles 0.00 Operating Expenses Amount Legal, accounting, and professional services $1,000 retainer Advertising and promotions $2,000 Deposits for utilities $500 Licenses and permits $150 Prepaid insurance $3,000 Lease payments $2,000/month rent Salary and wages $355 Payroll taxes $5.07 Travel 0.00 Signs $500 Utensils $500 Starting inventory $12,500 Cash (working capital) $6,000 Total Startup Cash Needed = $54,010.07
FINAL BUSINESS PLAN 32
Comparison of the Financial Performance of Proposed Venture to Similar Firms
Annual Sales
Estimate of Proposed Venture’s Annual Sales— Year 1
Explanation of How the Estimate was Computed
Estimate of Year 1 Sales: $237,250 Summary: How proposed annual sales, on average, compares to similar firms (circle one) Below Average Average Above Average
These sales were estimated based on assuming the business makes $650 per day in revenue. The $650 is including the coffee/tea/lunch/and baked goods sold per day. This number is multiplied by 365 to get the years sales.
Estimate of Year 2 Sales: $273,750 Summary: How proposed annual sales, on average, compares to similar firms (circle one) Below Average Average Above Average
These sales were estimated based on the assumption that the business will make an additional $100 per day than year one. Making the sales $750/day multiplied by 365 for the year
Net Income
Estimate of Proposed Venture’s Net Income— Year 1
Explanation of How the Estimate was Computed
Estimate of Year 1 Net Income: $71,175 Summary: How proposed net income, on average, compares to similar firms (circle one) Below Average Average Above Average
This net income was computed using salaries and wages of $355 plus an estimated $100 for cost of goods sold, multiplied by 365 to get the expenses for the year. That number was then subtracted from the estimated year 1 sales seen above.
Estimate of Year 2 Net Income $107,675 Summary: How proposed net income, on average, compares to similar firms (circle one) Below Average Average Above Average
This net income was computed the same way as stated above, just using the numbers from the year 2 estimated sales.
FINAL BUSINESS PLAN 33
Overall Financial Attractiveness of Proposed Venture
Low Potential Moderate Potential High Potential 1. Steady and rapid growth in
sales during the first one to three years in a clearly defined target market
Unlikely Moderately likely Highly likely
2. High percentage of recurring income—meaning that once you win a client, the client will provide recurring sources of revenue
Low Moderate Strong
3. Ability to forecast income and expenses with a reasonable degree of certainty
Weak Moderate Strong
4. Likelihood that internally generated funds will be available within two years to finance growth
Unlikely Moderately likely Highly likely
5. Availability of exit opportunity for investor if applicable
Unlikely to be unavailable
May be available Likely to be available
Overall Feasibility
Overall Feasibility of the Business Idea Based on Each Part
Suggestions for Improving the Feasibility
Industry/Market Feasibility
Not feasible Unsure Feasible
Organizational Feasibility
Not feasible Unsure Feasible
Financial Feasibility
Not feasible Unsure Feasible
Additionally, funding may be needed from the founders
Overall Assessment Not feasible Unsure Feasible
FINAL BUSINESS PLAN 34
Appendix C
Pest Analysis
Political Economic Social Technological
Political instability in
some countries are
causing coffee costs
to increase
Increased costs to
source coffee
Increased awareness
over sustainability
Tracking customer
purchase transactions
through payment
systems
Global gluten free
retail market is
growing
Popularity of health-
conscious individuals
on the rise
FINAL BUSINESS PLAN 35
Appendix D
Competitive Analysis Grid
Factor Origin Gluten-Free
Bakery – Pandora Ave
Bubby Rose’s
Bakery & Café – Cook
St.
The Hot and Cold Café –
Cook St.
Moka House - Cook St.
GF³: Gluten Free, Guilty Free, Good
Food – Fairfield Rd.
Business Location
Disadvantage Even Even Even Even
Price Disadvantage Even Even Even Even
Quality Even Even Disadvantage Even Advantage
Service Disadvantage Even Disadvantage Even Advantage
Selection Disadvantage Even Disadvantage Disadvantage Advantage
FINAL BUSINESS PLAN 36
Appendix E
Operations Flow Diagram
Start Customer enters cafe
Customer orders
Employee greets
customer
Customer pays for
items
Employee makes
coffee/food
Customer decides to sit or leave
Employee thanks
customer
End
