Small Business Plan
Business Studies
Year 11

By Lisa Galletto

Executive Summary

Introduction
Pete’s Coffee and Bakery (pcb) is a start-up coffee and bakery retail establishment located in Wallacia, Sydney. PCB expects to catch the interest of a regular loyal customer base with its broad variety of coffee and pastry products. The company plans to build a strong market position in the town, due to the partners' industry experience and mild competitive climate in the area.
PCB aims to offer its products at a competitive price to meet the demand of the middle-to higher-income local market area residents and tourists.
The Company
Mr. Peter Collin’s has extensive experience in sales, marketing, and management; The Company intends to hire three full-time pastry bakers and five part-time baristas to handle customer service and day-to-day operations.
Products and Services
PCB offers a broad range of coffee and espresso products, all from high quality Columbian grown imported coffee beans. PCB caters to all of its customers by providing each customer coffee and espresso products made to suit the customer, down to the smallest detail.
The bakery provides freshly prepared bakery and pastry products at all times during business operations. Six to eight moderate batches of bakery and pastry products are prepared during the day to assure fresh baked goods are always available.
The Market
PCB wants to establish a large regular customer base, and will therefore concentrate its business and marketing on local residents, which will be the dominant target market. This will establish a healthy, consistent revenue base to ensure stability of the business. In addition, tourist traffic is expected to comprise approximately 35% of the revenues. High visibility and competitive products and service are critical to capture this segment of the market.
Financial Considerations
PCB anticipates sales of about $491,000 in the first year, $567,000 in the second year, and $655,000 in the third year of the plan. PCB should break even by the fourth month of its operation as it steadily increases its sales.

1.1 Mission
PCB aims to offer high quality coffee, espresso, and pastry products at a competitive price to meet the demand of the middle- to higher-income local market area residents and tourists.

1.2 Keys to Success
Keys to success for PCB will include:
1. Providing the highest quality product with personal customer service.
2. Competitive pricing.

Company Summary

PCB is a bakery and coffee shop managed by two partners. These partners represent sales/management and finance/administration areas, respectively. The partners will provide funding from their own savings, which will cover start-up expenses and provide a financial cushion for the first months of operation. The company plans to build a strong market position in the town, due to the partners' industry experience and mild competitive climate in the area.

2.1 Company Ownership
PCB is incorporated in the state of New South Wales. Its two partners equally own it.
2.2 Start-up Summary
PCB is a start-up company. The following chart and table illustrate the company's projected initial start-up costs.

Start-up

Requirements

Start-up Expenses

Legal
$3,000
Premise renovation
$20,000
Expensed equipment
$40,000
Other
$1,000
Total Start-up Expenses
$64,000

Start-up Assets

Cash Required
$70,000
Other Current Assets
$12,000
Long-term Assets
$65,000
Total Assets
$147,000

Total Requirements
$211,000

Start-up Funding

Start-up Expenses to Fund
$64,000
Start-up Assets to Fund
$147,000
Total Funding Required
$211,000

Assets

Non-cash Assets from Start-up
$77,000
Cash Requirements from Start-up
$70,000
Additional Cash Raised
$0
Cash Balance on Starting Date
$70,000
Total Assets
$147,000

Liabilities and Capital

Liabilities

Current Borrowing