Business Plan for Paw4Home Cafe

Business Plan for

<INSERT BUSINESS/CONCEPT NAME HERE>

Produced By:

GROUP MEMBERS:

Student Name	Student No.

Dated:______________

Module Name: Entrepreneurship

Module Code: BMIH5001

Lecturer Name: _________________

CONTENTS

				PAGE
1.	Executive Summary			………………….
2.	The Business Idea			………………….
3.	The Team			………………….
4.	Market Research			………………….
5.	Marketing Plan			………………….
6.	KeyResources			………………….
7.	Finances & Start-Up Support			………………….
APPENDICES:
Appendix A				SWOT Analysis
Appendix B				PEST Analysis
Appendix C				Copy of Pitch SupportingMaterial

IMPORTANT: ALL RED TEXT IN THIS TEMPLATE SHOULD BE REMOVED/DELETED BEFORE SUBMISSION

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1. EXECUTIVE SUMMARY

[We suggest you complete this section after you have completed the other sections of the Business Plan.]

An executive summary for a business plan should concisely highlight the most important aspects of the plan. Start with a brief introduction to the business, including its name and location. Outline the business's product or service it offers. Detail the market opportunity, explaining opportunities that exist and your target market. Summarize your competitive advantage and why your business stands out. Include a snapshot of your financial projections and funding requirements. Conclude with some short-term goals that the business is hoping to achieve. Keep it clear, compelling, and under one page – the Executive Summary will not be included in the word count.

2. THE BUSINESS IDEA

2.1 The Product/Service

Include the company name, location and industry it will be operating in.

Briefly, what the business does and who for?

Explain your product or service in simple direct terms.

What the features and benefits are of the product/service? What is the value proposition?

2.2 SWOT Analysis Summary

Briefly highlight the key strengths and weaknesses from your SWOT Analysis on the business (Appendix A). Discuss the opportunities and threats you noted, and what you will do to reduce risk and maximise potential.

3. THE TEAM

3.1 Key Personnel

Fill in a section below for each member of the group. Briefly tell us who you are, about your relevantskills and experience, and your roles and responsibilities in the business.

Name and Company Position:

Skills and Experience:

Role and Responsibilities:

Name and Company Position:

Skills and Experience:

Role and Responsibilities:

Name and Company Position:

Skills and Experience:

Role and Responsibilities:

Name and Company Position:

Skills and Experience:

Role and Responsibilities:

Name and Company Position:

Skills and Experience:

Role and Responsibilities:

3.2 Skills Gaps& Key Partners

In the below sections, identify the skills shortages your business has and what you’re going to do about it (staff, training or outsourced).

3.2.1 Additional Staff Requirements (Roles and Responsibilities):
(What roles will you recruit for, why and what skills gap will it fill?)

3.2.2 Training and Development:

(What training, provided by who, to fill which gap, how much – provide references):

3.2.3 Outsourced Support / Key Partners:
(Who will you use and why, which specialist service will this provide your business, how much – provide references):

4.MARKET RESEARCH

4.1Market Information, Trends and External Factors

This is an opportunity to demonstrate howwell you know the market your business will be operating in.
What facts and figures have you found from your research that offer credibility and support to your business proposal? (Statistics, data, percentages, financial figures, population and size, etc)

What trends have you identified from your market research that are important to your business idea?

Highlight the main, ‘interesting’ findings from your PEST analysis(Appendix B). What external factors have you identified that will have significant impact on your business, and what can you do about them?

4.2Customer Profiles

Who is your business aimed at? Identify and discussthreedistinct customer profiles from your research that you would target for your product and service. Include the differing demographics but also pinpoint why they might use your business (their likes, habits, behaviour, etc).

1. 
   
   
   

2. 
   
   
   

4.3 Competitor Profiles

Identify threedistinct competitors that you will be competing with for customers. Individually discuss how are they different to your business? What are their strengths and weaknesses?How will you compete with them? What will be your USP in comparison? What’s your competitive edge/advantage?

5. MARKETING PLAN

5.1Price

Give examples of how you are going to price your products/services in order to appeal to customers? What will your prices say about your product or service in terms of quality and affordability? How do they compare to competitors? Provide a price list if you wish in your Appendices.

5.2Product

Give some ideas about the aesthetics of your product/service. How will it look, any design or packaging ideas, give some ideas around branding, etc.Include any designs, prototype designs, branding mock-ups, etc in your Appendices.

5.3Placement

Where are your products and services going to sold online and offline? How are your products and services distributed/delivered to customers?

5.4Promotion

[This should be the biggest section of your marketing plan]

How are you going to raise awareness and promote your product/service? How are you going to create relationships with customers and encourage feedback and loyalty? Which forms of digital and traditional advertising will you adopt – be specific, and give examples?

6. KEY RESOURCES

Premises

Paw4Home Cafe occupies a suitable location in Battersea, London, a lively neighborhood with people owning pets and tourists looking for the creativity. Located near the Battersea Cat & Dog Home Animal Shelter, the cafe extends the idea of animal adoption by giving its visitors an opportunity to interact with shelter animals. This partnership means that Paw4Home Cafe is not just a café, but a social enterprise as well. In return for a £6,500 monthly rent, the premises are located in a large two-story building with comfortable conditions for both people and animals (Melkamu, 2021).

The interior layout optimises customer engagement with animals, featuring distinct spaces for different animal experiences:

• Ground Floor: The main coffee area is designed to offer tea, coffee and meals with the addition of friendly, adoptable cats for patrons to interact with. Also, aquatic fish aquariums are provided which give a touch of serenity and eye aesthetic to the environment. This section provides capacity for 15 tables where the customers can enjoy their coffee together with adorable cats which make the atmosphere happy and calm.

• Basement: Housed in the basement and exclusively for dogs, the basement level is also designed to be as stimulating as the upper levels for dog engagement. This open space allows the guests to interact with the available dogs for adoption in a secure and friendly environment. With another 15 tables, this level offers a specialty environment for dogs and the encouragement of attachment to the animals and the chance of adoption (Melkamu, 2021).

The general arrangement of Paw4Home Cafe consists of indoor and outdoor dining area, sections for pets and adequate storage space which makes the environment secure and stimulating. Making pets and people comfortable to mingle ensures that the visitors receive the best experience hence creating a sense of belonging and ownership of the animals.

Equipment

To maintain exceptional standards of service and seamless operations, Paw4Home Cafe has invested in essential, high-quality equipment to support both customer needs and efficient workflow:

• Coffee Machines and Grinders: Paw4Home Cafe will employ two professional espresso machines and grinders from Espresso Solutions. Every espresso machine costs £2,500, which guarantees the quick and qualitative coffee delivery, grinders for £500 each offer freshly ground coffee, enhancing café experience for coffee lovers. Espresso Solutions were selected for their dependable service and maintenance service delivery to avoid hitches (Alajhar et al., 2022).

• Kitchen Appliances: Some of the vital appliances in the kitchen will include ovens for cooking, blenders, refrigerator for storing food, and dish-washers for washing dishes. For about £5,000, this equipment was purchased from Nisbets; it is crucial to ensuring that all services delivered meet the required efficiency and quality, which is expected of a cafe like this (Alajhar et al., 2022).

• Pet Play and Rest Area Equipment: In order to ensure that pet friendly zones are safe for the pets, some pieces of furniture for the zones will be play mats, safety gates and furniture. £1000 has been set aside for these items which have been bought from Pets at Home since they are long lasting and friendly to pets. These additions make pet friendly spaces comfortable for pets and customers gain satisfaction knowing their pets are comfortable (Alajhar et al., 2022).

• Point of Sale (POS) System: A POS system is crucial for the proper organisation of orders and fast payment processing in a modern world. The Square POS system costs about £1,200 and it has features that can help small business needs to execute the transactions fluently and give quick services to the customers. With this system, there will be efficient operation, and the human resource can be utilised to offer the best services (Torlak et al., 2019).

Key Suppliers

Paw4Home Cafe partners with reliable suppliers to ensure a consistent quality of products and to uphold its adoption-focused mission, creating a positive reputation for the brand:

• Coffee Beans: The coffee beans to be used in the cafe will be purchased from Coffee Compass and will be organically grown, and of the highest quality at £15 per kilogram. In the first month Paw4Home Cafe plans to use about 30 kg of beans for their coffee. This supplier choice is an indication of the quality and the ethical nature of the supplier which the cafe targets in the market (Torlak et al., 2019).

• Pet Products: Paw4Home Cafe sells pet foods from Natural Pet Store – organic and hypoallergenic that are suitable for pets with sensitive stomachs. This partnership guarantees that quality pet treats, and other needs will be provided, which should cost approximately £500 monthly.

• Bakery and Snack Supplies: Newly baked pastries and snacks are the specialities of Paw4Home Cafe serving a wide range of customers. Bakeries will be purchased from Gail’s Bakery monthly at £2000 and will assist in enhancing the appearance of the café where consumers are likely to enjoy the beverages sold in the café (Torlak et al., 2019).

• These chosen suppliers and quality equipment are important to the achievement of the objectives of Paw4Home Cafe, which is the sale of food with the support of animal shelter. Combined, they generate appeal to the customers, promote adoption of the pets and sets Paw4Home Cafe apart from other cafes within the competitive market in London.

7. FINANCES AND START-UP SUPPORT

EXPENDITURE	Year 1 £
Company Registration	500
Rent/Rates	60,000
Staff Wages	120,000
Travel/Accomodation	5,000
Telephone (mobile)	1,200
Broadband	1,800
Utilities	3,600
Marketing and materials	20,000
Insurance	4,000
Capital Expenditure/Equipment	30,000
Training & Development	5,000
Accounting/Legal	7,000
Outside Services	3,000
Stock/Materials Purchases	25,000
Bank Charges	500
Office Consumables	2,000
Loans Repayments	10,000
Total Expenditure	298,600

INCOME	Year 1 £
Sales A ?	100,000
Sales B ?	120,000
Sales C ?	80,000
Capital Introduced	50,000
Funding	30,000
Loans/Borrowing	20,000
Total Income	400,000

YEAR ONE PROFIT/LOSS	£
Total Income	400,000
Total Expenditure	298,600
Profit/Loss	£101,400

7.1 Financial Summary

The financial plan was developed by considering the market analysis and quotations provided by the identified suppliers and service providers to make sure that the plan prepared for the actualisation of the business is achievable (Torlak et al., 2019).

• Expenditures: The major costs include cost of wages for staff, cost of rent and capital costs associated with acquiring equipment required to establish the café and pet facilities. The costs of marketing and materialisation are high, which indicate a forceful approach to brand awareness and customer outreach in the first year.

• Income Projections: Revenue sources are divided into three broad categories; coffee and other beverages, food products, and pet related services. These projections have been made using low daily activity rates and benchmarking with similar establishments in analogous regions.

Start-Up Support: Start-up resources consist of equity funding by the owners and other outside sources of funds. Owners’ own funds of £50,000 offer a starting capital, while other £30,000 were obtained from small business grants for developing innovative start-ups in the hospitality industry. Credit and debt include a planned £20,000 loan taken to help absorb the first expenses of running the company.

APPENDICES

Appendix A – SWOT Analysis for Pet Coffee Shop

Strengths: Paw4Home Cafe is a café providing the high-quality services together with the option to meet the cats and dogs that are available for adoption through Battersea Cat & Dog Home. It is located in Battersea, an area that gets a lot of traffic, and the two levels for cats and dogs respectively increase customer interaction which makes customers keep coming back (Benzaghta et al., 2021).

Weaknesses: The major issues are high operating costs, rent, and other related compliance expenses associated with pet accommodations. As a specialised brand, Paw4Home Cafe may need to spend a large amount of money to market it to the right audience or those who are most likely to support the cause of animal rights and protection (Puyt et al., 2023).

Opportunities: With growing tendencies of families owning pets, Paw4Home Cafe should seize the opportunity to provide for the demand of pet friendly services. Franchising or selling products with the company’s logo on them are other opportunities for revenue sources. As a result of partnerships, the visibility and support for the adoption mission of the community programs and partnerships are boosted due to the collaborations with local businesses and organisations (Benzaghta et al., 2021).

Threats: Some of the threats include; competition from other pet-friendly cafes, business cycles that may affect discretionary expenses and tight health and safety standards that are associated with pet-friendly business. Policies and ensuring that the environment is positive and safe are crucial in order to eliminate adverse effects on reputation (Puyt et al., 2023).

Appendix B – PESTLE Analysis for Pet Coffee Shop

Political: Pet cafes have the same rules regarding food hygiene and rules that protect animals. State policies that promote establishment and operation of a small business and pet friendly environment are advantageous to Paw4Home Cafe because its mission is to help animals find homes. The adherence to these regulations is paramount in order to ensure business continuity as well as portraying the right corporate image (Buye, 2021).

Economic: The success of the cafe depends on regional economy, as consumption affects the visits to pet friendly cafes. Higher discretionary spending results from economic stability and this is to the advantage of the cafe. Nevertheless, economic fluctuations may affect customer traffic and the revenues generated from adoption (Casañ et al., 2021).

Social: Increasing number of people with pets and considering them as members of the family is good for Paw4Home Cafe. Permissiveness of pet friendly areas popularises the brand, while adoption orientation towards the community makes customers loyal to those who appreciate the well-being of animals (Buye, 2021).

Technological: There is a major role of technology in improving the service delivery and customer relations. Online ordering and managing systems make the customers satisfied and pet management systems improve the quality of services, whereas social media allows to spread information to the target audience and attract pet lovers (Casañ et al., 2021).

Legal: Discrimination against employees, pets, and foods are prohibited under the local laws, rules, and regulations. This is because the constant update of these regulations reduces legal implications that may harm the reputation and functioning of the cafe (Buye, 2021).

Environmental: Adopting sustainable products like waste management and environmentally friendly products are in tandem with consumers’ expectations. Environmental responsibility ensures that conscious customers are attracted to the firm while at the same time ensuring that Paw4Home Cafe is socially and ecologically responsible (Casañ et al., 2021).

Presentation

Key Resources

Essential Resources for Operational Success

Paw4Home Cafe, situated in Battersea, London close to the Battersea Cat & Dog Home Animal Shelter also supports its mission of animal adoption. The two storey cafe has ample of space and is suitable for patrons with pets and other ordinary customers. The ground floor contains 15 tables for meals which are served in the warm café area where guests can communicate with the cats that are up for adoption, this space also contains aquariums with fish to help create a tranquil environment. The basement that is designed for dogs, has 15 tables and provides a casual ambience for patrons to interact with available dogs. This layout enhances the image of Paw4Home Cafe and makes the space stimulating for people and animals (Alajhar et al., 2022).

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The main operational equipment includes high quality commercial espresso machines and grinder which are bought from Espresso Solutions, and each unit costs £2,500. Every Nisbets package contains all kitchen facilities needed to prepare food and goes for about £5000. Pet play and rest areas contain products bought at Pets at Home that will make pets feel at home and safe which costs approximately £1000. A new point of sales system from Square that costs approximately $1500 is purchased to enhance the conduct of transactions (Zainurossalamia et al., 2022).

They include Coffee Compass for fair trade coffee beans at £15 per kg, Natural Pet Store for organic, hypoallergenic products for pets at £500 per month and Gail’s Bakery for fresh pastries daily at £2,000 per month. These resources guarantee Paw4Home Cafe presents a differentiated and valuable proposition, based on quality and the cause of animal rights in London’s saturated cafe scene.

Financial Overview

Financial Strategy and Projections

The financial plan of the pet coffee shop is strategically developed in order to sustain the business and generate reasonable revenue during the first year of its operation. Major expense costs are rent amounting to £60,000, wages for staff £120,000, and capital expenditure of £30,000 for café and pet equipment. Moreover, the initial and ongoing marketing cost of £ 20000 has been allocated to create and develop the brand which will focus on the diverse customers.

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Potential sales from coffee, food products and pet care services are expected to be £100 000, £120 000 and £ 80 000 respectively. These are supported by £50,000 owners’ capital, £30,000 from small business grants, £20,000 in loans and with overall projected annual income of £400,000.

This brief analysis of the café’s financial management predicts £101,400 in net profit for the first year of operation, and shows the café’s great potential for profitability. Proper distribution of resources and effective financial management also point out that the shop is ready for successful work and viability (Torlak et al., 2019).

References

REFERENCE LIST:

Alajhar, N.A. et al. (2022) ‘Implementing quality management tools to improve customer’s journey at café’, Open Journal of Business and Management, 10(4), pp.2045-2090. Available at: 10.4236/ojbm.2022.104105

Benzaghta, M.A. et al. (2021) ‘SWOT analysis applications: An integrative literature review’, Journal of Global Business Insights, 6(1), pp.54-72. Available at: https://pdfs.semanticscholar.org/1ce6/a88073a1fedd93547b395c7b1898970736ad.pdf?_gl=1*tut8zr*_ga*NDAzNjE4MjY3LjE2ODkwNjE1NDY.*_ga_H7P4ZT52H5*MTY4OTkyNjM2Ny4yLjEuMTY4OTkyNjQwMi4yNS4wLjA

Buye, R. (2021) ‘Critical examination of the PESTEL analysis model’, Project: Action Research for Development.

Casañ, M.J. et al. (2021) ‘A collaborative learning activity to analyze the sustainability of an innovation using PESTLE’, Sustainability, 13(16), p.8756. Available at: https://doi.org/10.3390/su13168756

Melkamu, M. (2021) ‘Develop business plan for small business: Entrepreneurship perspective’, Proceedings on Engineering, 3(3), pp.365-372. Available at: https://d1wqtxts1xzle7.cloudfront.net/68875907/12-libre.pdf?1629893415=&response-content-disposition=inline%3B+filename%3DProceedings_on_Engineering_Sciences.pdf&Expires=1729931267&Signature=R6wdObgRWN1lan5FmWYWYZRjxIrRXKkkKcKK63ul2Fo6vUe~1XZ4Ix8ww70RTcmbOJmKbYxANjYhll8YUFvBTuUiqZ0zW7CNmTPpDiBLX82wfcfwQMQHpUgxn2fte5JKggZjqmjqP6ufHOayzxvFCl2pKrPXgXKXhSEMtml~-gD8jMKpuzSJW2rcF64k7i4Y3D1rZhtLDqoZSiSUZwUpg~U5Yq81j613e2iZOPYDSvvNl~HlzcbyJnOolREOjx7BCtJs2dEcF-vy77tZThjpUbMjawE9Fz4Ibx2FWV0oUxdXM0a~QPBDrO4LPm1ldUCFUgKcECbTPgJRwJgZir7VVQ__&Key-Pair-Id=APKAJLOHF5GGSLRBV4ZA

Puyt, R.W. et al. (2023) ‘The origins of SWOT analysis’, Long Range Planning, 56(3), p.102304. Available at: https://doi.org/10.1016/j.lrp.2023.102304

Torlak, N.G. et al. (2019) ‘Impact of operations management strategies on customer satisfaction and behavioral intentions at café-restaurants’, International Journal of Productivity and Performance Management, 69(9), pp.1903-1924. Available at: https://doi.org/10.1108/IJPPM-01-2019-0001

Zainurossalamia, S.Z. et al. (2022) ‘Impact of operational activities on customer satisfaction in cafes and restaurants: A mediating role of infrastructural elements’, Innovative Marketing, 18(4), pp.13-24. Available at: https://repository.unmul.ac.id/bitstream/handle/123456789/55305/Artikel_Innovative%20Marketing.pdf?sequence=1