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Al Feidrick Supapo

on 28 August 2014

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Transcript of BUSINESS PLAN

Coffee Connoisseur

Liberty Center, Dela Costa Street, Salcedo Village, Makati City, Philippines

Environmental and Industry Analysis
Description of Venture
Production/Operation Plan
Description of Business Operation
Marketing Plan
Marketing Plan
Organizational Plan

Coffee Connoisseur will be established as a general partnership between Jomari Piczon, Nico Demetri Ida, Kir Francis Maniego, Joan Pauline Peregrino and Al Feidrick Supapo. The principal partner will each assume an equal stake in the business including the responsibilities for the liabilities of the business.
A significant advantage of the partnership is the ability to take fair parts in managing the business.

Assessment of Risk
Description of Business
It is a coffee shop that uses locally grown beans but is world class in quality. It also serves high quality coffee concoctions and other beverages as well. Along side, it offers mouth watering confectionaries that caters the sumptuous taste of its clientele. The coffee shop aims to provide acozy environment where one can relax and unwind while having their tete a tete.
Statement of Financial Needing
Initial financing requested is P4 million. The 1.5 million will be a loan to be paid off over three years with an interest of 8% annually. The remaining 2.5 million will be coming equally from the owners. This will cover all the assets and expenses that the coffee shop needed.
Statement of Confidentiality Report
This report is confidential and is the property of the co-owners listed above. It is intended to be used only by the persons to whom it is transmitted, any reproduction of its contents without the prior consent of the owners is prohibited.
Economic Environment
Cultural Environment
Technological Environment
Legal Environment
Analysis of :
Analysis of Competition
Environmental and Industry Analysis
Market Segmentation
Industry Trend
Two of Our Competitor
Chocolate Fire
Local Edition
-These are the coffee shops that we have surveyed and helped us in the idea of creating our coffee shop.
Geographical Segmentation
Demographic Segmentation
Psychographic Segmentation
Filipinos as coffee drinkers
Local coffee shops are gradually increasing in the market share
Penetration of locally made coffee beans in the market
Espresso Shot
Long Black
Today's Brew
Civet Pitcher
Other Beverages
Twinnings Tea
Cadbury Hot Choco
Chocolate Castella
Mocha Cake
Kiss Strawberry Cake
Kiss Blueberry Cake
White Chocolate Forest
Carrot Cake Cinnamon
Malunggay Pandesal
Malunggay Pandesal with Corned Beef
MalunggayPandesal with Tuna
MalunggayPandesal with Bacon and Egg
MalunggayPandesal with Ham and Egg
Custard Cream Pastry
Cream Cheese Pastry
Size of Business
Coffee Connoisseur is a Small Business enterprise as it was based on the general business standards of the country. Generally, the size of the business is measured through the number of employees, its annual sales, its value of assets, and the net profit it gains. The coffee shop only consist of 11 employees – two (2) waiters, two (2) baristas, two (security guards), and the five (5) managers of each department. Its computed annual sales is Php 5, 076, 000. The value of assets of the business is worth Php 3,779,592 at the end of year 2015. And as for the projected net profit, it gains Php 895, 076 yearly.
Top quality coffee in Makati
Social media
serves hand-made coffee typical to that of a modern American coffee shop
chilled and relaxed environment
located at salcedo village, a bustling culinary and art community right in the middle of the concrete jungle
Flow of orders for goods
supplied with quality made Amadeo roast from Cavite
Supplied with "civet" beans from the farm of Cordilleras
Checks all of the supply that arrives - assurance quality product
Pastries and cakes are consigned with home-based kitchen
Technology Utilization
POS computer system
WiFi / Telephone
Credit/ Debit Card service
Espresso machine
Digital microwave oven
Digital surround sound
A. Marketing Goals
To meet the growing needs of a target market defined on the basis of its location, demographics, life style, and buyer intentions.
To establish an effective and profitable marketing mix of service, price, and promotion.
To establish a good brand equity for our target market.
To evaluate the competitive environment and continue to establish differential advantages with the company’s Unique Selling Proposition (USP) and Emotional Selling Proposition(ESP).

B. Marketing Objectives
To establish a customer base of 25 percent of the defined target market in year one.
To meet the Break-Even Point every month
To increase the sale by 20 percent annually for the first three years

C. Market Needs
In the settings of Makati, Philippines, it is already given that the market, most of the time, has been looking for the quality products. These markets are capable to compensate for a big amount just to satisfy their urge for these eminent kinds of product/service after their busy day of work.
Target Market (Consumers' Profile)
Coffee shops do not do usually have advertisements and are frequently being marketed through the word of mouth. The promotion trends of the coffee shops are not that massive compare to other business or product. The company will still give a marketing strategy that is creative but not costly.
Online Advertisement
Association with mobile apps
Social Netwoking Sites
Instagram Challenge
Loyalty Programs
accumulation of stamps
for free coffee
Opening of the Coffee Shop
Indie band
free coffee
Marketing Plan
Year/s of Business
First Year
Second Year
Third Year
Fourth Year
• established a customer base of 25 percent of the defined target market
• Awareness of the business
• Low sales

Fifth Year & Above
• established a customer base of 30 percent of the defined target market
• Rapid increase in earning
• established a customer base of 45 percent of the defined target market
• Reputable business with a good equity

• established a customer base of 50 percent of the defined target market
• has the assumption of getting the Return Of Investment (ROI)

• established a minimum of customer base of 60 percent of the defined target market
Business forecasts
Process/ Customer Service
Quick response to customer needs and wants
Alertness to customer discomfort and offering some help
Good rapport with customer
All our products that will be distributed to the customer will be coming from local firms since we are also devoted to CSR. These are the suppliers mentioned in the flow of orders for goods and/or services.
Form of Ownership
Organizational Plan
Management-team Background
JomariPiczon – Administrative Manager
Jom Piczon took a Bachelor of Science in Business Administration Major in Business Management Course at Asia Pacific College and attained his MBA at De La Salle University Taft. He is highly qualified as an administrative manager at Coffee Connoisseur for his past experiences like being a human resource manager at Unilever.
Nico Demetri Ida – Public Relations Manager
Nico Ida is highly qualified as a public relations manager, having worked in a very successful Philippine-based PR Agency which is Perceptions, Inc. Through his work experience, he has acquired the necessary interpersonal skills needed in the public relations field.
Kir Francis Maniego, CPA –
Finance & Accounting Manager
KirManiego, a Bachelor of Science in Accountancy graduate at Asia Pacific College, was given the title of Certified Public Accountant after passing the 2010 board exam. Aside from having the title of CPA, Kir is qualified as a finance & accounting manager for the experience he was given after being an intern at one of the biggest accounting firms in the Philippines, which is Ernst & Young. The company was able to expose him to various financial and accounting works.
Joan Pauline Peregrino – Sales Manager
Pau Peregrino graduated from Asia Pacific College with a Bachelor of Science in Business Administration Major in Marketing and Advertising Course then took her MBA at Ateneo De Manila University. Her experience at Pfizer, Inc under the sales team made her qualified as a sales manager in Coffee Connoisseur since she already know the responsibility of obtaining profitable results by developing the team through motivation, counseling, skills development and product knowledge development.
Al FeidrickSupapo – Marketing Manager
Al Supapo, also a graduate of Bachelor of Science in Business Administration Major in Marketing and Advertising Course at Asia College and at attained his MBA at University of Santo Tomas, Manila. His experience at Toyota as a marketing manager made him expound his knowledge of marketing not only the product he is handling, but also the entire company. He was also trained to create effective and efficient promotions for the products.
Roles & Responsibilities of Members of the Organization
Administrative Manager
-Oversees and direct the administrative services of Coffee Connoisseur.
-He makes sure that the facilities are equipped with the supplies and services needed.
-He ensures that the business runs smoothly and accomplishes its goals on a daily basis.

Public Relations Manager
-in charge of managing the coffee shops image to build a good reputation and control how the business interfaces with its customers.
-His responsibilities also includes overseeing the customer service aspect of the company.
-He will be in charge of handling customer complaints.

Sales Manager
-responsible for meeting the sales targets of the organization through effective planning and budgeting.
-It is her responsibility to work towards the goals and objectives of the organization. She ensure the targets are realistic and achievable.
-A sales manager must understand who can perform a particular task in the most effective way.
-to extract the best out of each employee.

Marketing Manager
-in charge of creating promotional activities, performing the necessary market research to determine how best to improve the performance of Coffee Connoisseur.
-He is also responsible for the design and distribution of all promotional and advertising materials.

Finance & Accounting Manager
-typically the treasurer and finance officer of the coffee shop.
-He is involved in overseeing and directing the budgets and investments of the company.
-to manage risks by reducing and mitigating the financial risks the company is exposed to due to its business, such as ensuring the business is adequately insured. -His main responsibility is taking care of the business' accounting activities, such as reporting and analysis of the company's earnings, expenses and overall financial position and manages to have regulatory reporting.

-Deliver excellent customer service, at all times.
-Serve and present hot non-alcoholic beverages quickly and efficiently, meeting our standards.

-Check food and beverages for quality and presentation
before serving to customers.
-Speak to customers to ensure that they are satisfied with their meals.
-Assist in keeping front-of-house and toilets clean and tidy, at all times.

Salary - Php 12,000
# of people - 2

Salary - Php 15, 000
# of people - 3
Security Guard
-help Coffee Connoisseur protect property and interests.
Salary - Php 12,000
# of people - 2

Difficulty and Risk
Most coffee shop owners struggle to motivate staff and to develop a successful team of people. In different coffee shops that we held surveys, they often have staff that has good rapport with the customer. Making them feel coffee shop owners often control most aspect of the business and are afraid to let go of things. The reality is that staff usually like responsibility and will happily take on a bit of extra work. It is very important to work as a team and to make sure that the coffee shop is run by the staff as well as the owner and not just by the owner as we can see in one of the most successful coffee shop in the Philippines and also internationally which is Starbucks, they achieved it by making their employees understand the quality over quantity of consumer. Other difficult things are time management. The ability to find the time to work on the business and not just in it. Increasing average spends and making sure that the customer is not just having one coffee is another one that some coffee shop owners talk about.
Alternative and opportunity
There are a lot of reasons why opening a coffee shop is a great idea, but the best reason is because it's one of the fastest growing food industries worldwide. There is a coffee craze going on throughout the world, so why not grasp onto what's in demand and jump on board to open your own coffee shop. The mere fact that coffee shop does not require a high capital when emerging into the business, it can have a low start up cost.
Coffee shop is a major growth industry. Coffee and its quality are evolving. By visiting different coffee shops, you can see that there are number of coffee types available. Also, coffee shops are in demand all year round. It doesn’t have dead time because from a want, it becomes necessity due to the new lifestyle of today.

SWOT Analysis
 Showcasing local products
 Good relationship with suppliers
 Located in high area and big city (Makati)
 Offers unique product from other coffee shops that has the potential to lead the market because of its high quality

 Demotivated and untrained staff
 Accessibility - Far from public transportation
 No customer base
 Only one branch – hard to find for the target market (class A & B)

 Coffee shops are a very promising business with high margins.
 Economic growth rate are booming which makes our target market more acquirable of purchasing the product/service
 Also due to growth rate of economy, our target market expands

 Strong competition within the vicinity
 Consumer health trend (avoidance to caffeine)
 Hike of rentals – Makati

Financial Plan
The key underlying assumptions are:
• We assume to increase sales on subsequent years because of advertising and promotion efforts.
• We assume a slow economic change.
• COGS is expected to increase as sales increases.

Projected Financial Statements
To assess the financial positioning of the company, financial plans are being prepared. The financials shall be broken down into monthly projections for year one of the business and only annually on subsequent years.
• Depreciation is computed using straight line method.
• Values are in pesos.

This shows the projected annual income statement of Coffee Connoisseur. Sales are based on the 40-80 customers per day. Total net income within 4 years is 4,279,324. The expected ROI of the business is within 4 years.
The statement of cash flows shows the outflow and inflow of cash in different activities. The amount in red figures will be deducted. The withdrawals totalled 1,200,000 which is withdrawn by the owners equally. Total cash inflow for the year 2015 is 528,956.
Financial Ratios Analysis
Net Profit Margin:
=Net Income/Net Sales
=.18 or 18%

Net profit margin measures profitability after consideration of all expenses. This shows how much of each sales peso shows up as net income after all expenses are paid. This means that 18 cents of every peso is profit.
Return on Equity:
=Net Income/Owner’s Equity
=.36 or 36%

It measures the return on the money the investors have put into the company. This means that the investors earned 36%.
Return on Total Assets:
=Net Income/Total Assets
=.24 or 24%

It measures the efficiency with which the company is managing its investment in assets and using them to generate profit. It means that it earned 24% for every asset used.
Gross margin= sales-variable cost/ sales
Break Even Revenue= Fixed cost/Gross margin percentage

Break Even Analysis
With an average monthly fixed costs of 231,843 in year 2015 and an average margin of 80%, Coffee Connoisseur break even sales levels are approximately 289,804 per month. The business will not gain or loss profit if the sales equal to 289,804.
Sources of Funds

Pauline Peregrino
Al Supapo
Nico Ida


Amount Contributed
Full transcript