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Project Management Project Report 2
Kevin Landers, LUTCF
BUSI 680
Liberty University
July 26, 2020
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Profits
Execution of business of the independently owned coffee shop being in Moody, AL, the
intentions are to have sustainable profits through a mix of balanced variable and fixed costs.
Forecasted revenues will be projected based on sales and expenses that allow for viable
investment back into the business for improved results and profits. Margins on menu products
will be valued, consistently, such that they provide revenues to cover costs and expected profits
for expansion into phase two of the business plan. Revenue and expense expectations are as
follow:
Revenues :
(annualized)
Regular Coffee $130,000
Gourmet Coffees $180,000
Breakfast Foods $40,000
Deli Foods $50,000
Smoothies $75,000
Total: $475,000
Expenses :
(annualized) Fixed
Costs: Insurance
Property Tax
Depreciation
Machinery
Some Utilities
Lease
Wages/Salaries
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Loans
Wages/Salaries
Variable Costs:
Wages/Salaries (direct labor)
Materials
Utilities
Loan/Credit Fees
Location
The location of the coffee shop will be a stand-alone building adjacent to the popular
garden center on the North side of I-20, within five-hundred feet of the West-bound ramp. The
location will be convenient for traffic heading into the larger city of Birmingham and for nearby
residents and businessowners, away from heavier traffic yet convenient to main roads that are
within a few hundred feet of the location. The retail location will be aesthetically sound and
attractive for all types of consumers.
Employees
The plan for hiring employees will consist of a variety of individuals. We will first seek
prominent centers of influence within the local community, such as the retired elementary school
teacher or a high school teacher, possibly the daughter of another local business owner, and
extrovert types of personalities who will have great sales skills. Teenagers will be a great group
of employees to train as they will be part-time workers and provide a flexibility in scheduling.
Among the training will be hands-on sessions where employees will serve employees, during
closed business hours initially. The training will consist of consultative sales training from the
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owners and from qualified business consultants who are well known in the consultative sales
training space. Training will also consist of customer service skillsets, handling financial
responsibilities, managing time, culture specific values, conflict management, expected service
levels, and expectations during the course of employment to include evaluations annually for
those tenured at least one year in length and monthly reviews with the team as a whole to review
skills and where the business is at currently. Transparency with employees will be a major value
of our the business.
Inventory
Inventory and various supplies used in the business operations will be captured by
qualified and trusted vendors. Referrals are sought after from other local business owners and
through the local restaurant association that we will be an active member of. Through association
relationships we will gain trusted vendors, as well as through an assessment process of other
vendors to provide what our business needs. Delivery of supplies will be set up on a weekly,
biweekly, and monthly basis as shelf life of our products permits, food products, coffee, and
paper products, respectively. We will also have semi-annual stewardship review meetings to
ensure we are aligned and profitable between the entities.
CRM
Regarding customer relationship management, we will immediately implement a rewards
system for loyal customers. The rewards system will include a free coffee, breakfast, deli, or
smoothie menu item for every fifty dollars spent with us. We will gauge the success and
profitability in this venture over the course of one year and reevaluate from there. In addition to
the reward system, we will gather customer phone and email as much as possible in order to
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communicate with customers about weekly specials, monthly specials, and birthday celebrations
(their own birthday treat). We will maintain customer information within an encrypted system
and implement and text messaging and email system to deploy messages for customer who have
not opted out of text messaging or emails. We will include an age category and stage of life
category to group customer into specific segments for marketing campaigns as well, and will
retain the information for marketing purposes to those who allow the knowledge of the
information.
