The aim of this module is to explore your business finances and how to ensure you are making the most of your money.

1. Street Food Success What Next
Module 4

2. Costs to develop the business model from where it is
Raising finance for start-up
requires careful planning.
The entrepreneur needs to
decide:
• How much finance is
required?
• When and how long the
finance is needed for?
• What security (if any) can be
provided?
• Whether the entrepreneur is
prepared to give up some
control (ownership) of the
start-up in return for
investment?

3. Set-up costs
• These are costs that are incurred before the business
starts to trade and would include such things as:
• Fixed assets that the business needs before it can begin
to trade
• Lease or freehold cost of premises or additional units
• Legal fees to set up the lease or freehold
• Fit out in case of fixed premises
• Catering equipment, POS equipment
• Front of house equipment, for table, chairs etc.
• License or franchise legal fees if license or franchise
model is chosen
• Manufacturing costs, plant , testing , label printing,
consultancy, if manufacturing route is chosen
• Miscellaneous items / contingency (at least 10% of the
total of the above)

4. Continued…
Growth and Further Development
• One way of categorising the
sources of finance for a start-up is
to divide them into internal and
from external providers.
Working capital
• Ongoing costs involved in
the business running:
• Stocks
• Wages to staff
• Owners drawings
• Insurance
• Training of staff
• Advertising / marketing
• Professional membership
• Transport
• Print post stationary
• Phones
• Accountancy / bookkeeping

5. Sources of finance, banks, crowd funding, business angels- what
you will need to have in place before you start looking for finance
Funds can also be raised from different types of source as follows:
• Internal sources of
finance
• External sources
• Self-funding
• Bank loan
• Debentures
• A mortgage
• Hire purchase
• Leasing
• Hire / Rental
• Grants from charities
or the government
• Venture Capital
• Business angels
• Crowd funding
• Friends and family

6. Internal Sources External Sources
Internal sources are funds found inside the business External sources of finance are found outside the business, and
can be short or long term.
For example, profits can be kept back to finance expansion.
Alternatively the business can sell assets (items it owns) that are
no longer really needed to free up cash.
Short-term sources of external finance and include:
 An overdraft facility, where a bank allows a firm to take out
more money than it has in its bank account.
 Trade credits, where suppliers deliver goods now and are
willing to wait for a number of days before payment.
 Factoring, where firms sell their invoices to a factor such as
a bank. They do this for some cash right away, rather than
waiting 28 days to be paid the full amount.
If the business is incorporated it may also be possible to sell
shares
Sources of external long term finance include; self- funding,
leasing, bank loan, a mortgage, hire/ rental etc..

7. Key Examples of External Sources
Self Funding
PRO’s CON’s
 You get all the profits and retain control
of the business.
• You might not have anything to fall back
on if your business hits hard times.
 You don’t have any interest repayments
or loan charges, unless you've decided
to re- mortgage your home.
 If you decide to re mortgage your
home, it could be at risk if you don’t
keep up repayments
 It shows your commitment to potential
investors or lenders.
• It’s very limiting for most entrepreneurs

8. Bank Loans
PRO’s CON’s
 A repayment schedule means you can
forward-plan your finances.
• Banks can be reluctant to loan money to
young businesses with short business track
record. In fact, business lending by banks has
dropped generally in recent years.
 You don’t give up equity in your business. • Interest rates can be hefty
 It's likely that you will have to stump up at
least some of the money yourself.
 You may be asked to guarantee the loan by
using your personal assess such as a home,
so if the business fails you could lose your
home

9. Grants from Charities
PRO’s CON’s
• The money does not have to be paid
back.
• The application process can be a long, arduous
process, taking up a lot of your time.
• You retain control of your business. • The money will usually only cover a small
proportion of your costs

10. PRO’s CON’s
You do not have to give away equity in your business or
intellectual property rights.
You must invest time and money in creating an attractive
project page, and make a compelling video
You can take advantage of your backer’s social media
clout to help spread the word about your new project and
reach new customers.
You must pay taxes on any pledges that are not donations
and that are not used in the creation of the rewards for
backers. This is because you must invest most of the money
in fulfilling the rewards that you promised backers
You can get feedback early-on in the innovation process
through the comments section of your projects and on
updates.
You risk the chance of having your product or idea ripped
off.
Backers and pledges can be used a validation of your
target market. This is data you can bring to angel investors
or venture capitalists for future investment.
You must spend time marketing the project, reaching out to
reporters, and being attentive to backers.
You risk embarrassment if you fail
Crowd Funding

11. What you need to get in place before you start looking
for funding
Don't forget, starting your own business inevitably involves an element of risk, and increasing your
debt through loans and overdrafts all adds to that risk.
Expect to answer questions such as:
• Why do you want the money?
• What will you use the money for?
• How much are you personally putting into the business?
• How much do you need to borrow?
• How and when do you plan to repay it?
• Do you have any security?

12. Accounting and book keeping - DIY Booking
Typically when a new business owner starts out they either
can’t afford a bookkeeper or think they can do the
bookkeeping on their own. It is a good idea for a business
owner to do the bookkeeping in the early stages of the
business so that they understand the financial aspect of
their business.
This will prove invaluable when analysing your financial
reports later on in the life of the business. Usually once a
business owner gets overwhelmed by their bookkeeping
you know that it’s time that you changed.

13. DIY Booking
Six simple steps to keep your business financials organised:
1. Get some type of accounting software –such as
QuickBooks or Xero as both of these are accounting
software for those who don’t necessarily understand
accounting. Very user friendly and widely used in the
business world.
2. Enter everything and reconcile - if you enter each
transaction that hits your bank account, credit card
accounts etc. you can’t go wrong. Use the
reconciliation function in your accounting software to
balance your statements every month.
3. Don’t intermingle personal expense, get a separate
bank account, credit card etc. for yourself and your
business. There is no need to ever bring your personal
accounts into your business bookkeeping system.

14. DIY Booking – Continued
4. Sometimes doing nothing is better than doing
anything – the worst thing you can do is do half
of the job. Enter some stuff, but not everything.
Enter invoices, bills etc. even though you don’t
know what you are doing. If you are confused or
lost, hire a bookkeeper. The bill to clean up the
mess you created will be motivation enough to
just outsource it from the beginning.
5. Develop a filing system - a good filing system is
not a box full of receipts. Use some file folders
with the letters of the alphabet on it.
These simple steps will keep you organised financially.
Eventually you will become too busy and notice that
you are spending too much time doing your
bookkeeping and not enough time doing what you
love; running your business. That’s the time to go
professional!

15. Choosing the right Book keeper
When it comes to choosing the right bookkeeper for you and your business, there are a number of
things you need to consider and some key questions you need to ask:
• Are they a ‘real’ bookkeeper?
• Are they qualified?
• Do they have bookkeeping experience in
businesses similar to yours?
• Do you want them to work at your
premises?
• Do they have Professional Indemnity
insurance?
• Anything else?

16. Useful additional questions to ask:
• If they can use the same software as you use, or, can they
advise you on suitable software for your business?
• Are they proactive? Can they support your business as and
when you require it?
• Can you work with them? Do you know, like and trust them?
• Can you build up a good rapport with your bookkeeper
and/or staff (not just the owner)?
• Can they work with your accountant (if you have one) or can
they suggest one (or more) that may suit you and your
business?
• Not all bookkeepers are the same, so shop around for the
best match for your business and remember, that may not
necessarily mean the lowest cost service around, like with
most professions, there’s a difference between ‘cost’ and
‘value’. If you ask the right questions, you’ll have a much
better chance of finding the right bookkeeper at the right
price for you.

17. Choosing the right accountant
Choosing the right accountant is one of the most important decisions a small business can make. A good one
can save you time and help your business grow; a bad one could cost you much needed money. Yet with
thousands to choose from, it can be a daunting call to make. So when it comes to selecting and working with
an accountant, what are the questions every small business owner should ask so as to make the most informed
choice?
• Why should I hire you?
• Could my money work harder?
• Are we a good match?
• Are things working out?

18. Why Should
I Hire You?
Clive Lewis, head of
enterprise at The Institute of
Chartered Accountants in
England and Wales (ICAEW)
states the importance of
hiring an accountant: “If you
get the wrong person, you
can miss out on things you
should know,” he explains,
“and that can be very costly.”
Charlotte Chung, senior policy
advisor at the ACCA, says the
key thing to query during the
hiring process is how the
accountant will add financial
value to your company.
Take your time with research, both
Lewis and Chung advise meeting with
a least three candidates before making
a final choice, and ask the
fundamental questions.
Check what are their
qualifications, and are
they regulated by a
professional body
Lewis, recommends
speaking to others in
your sector to get
second opinions about
their reputation.
Having the right
questions ready boils
down to doing your
homework

19. Could my
money work
harder?
James Richardson is a
company director at an
accountancy firm specialising
in start-ups. He says most
people believe an accountant
will just be looking after
annual accounts and tax
compliance. However, “that’s
only a small portion of what
a good accountant can – and
should – be doing for you.”
They can help you raise capital by finding grants,
government funding pots, and tax relief
schemes,” he explains. “They can help you sell
shares in the business, crowdfund or find angel
investment. People tend to say, can you balance
my books? What they should be asking is: what
am I entitled to that I don’t know about?”
The money an accountant can
save your business must naturally
be weighed against the costs of
employing them. Richardson says
the question he often hears –
“why should I pay you to do this?”
– is therefore a valid one. “Start-
ups are cost conscious, so ask
what you can do yourself. For
example, I would point people
toward online bookkeeping
software such as Xero and Clear
Books.”
Clive Lewis says there’s “no need to be polite” when it
comes to asking about an accountant’s fees. “You must
ask, how much will this cost?” he says. “Also ask, when
will you bill me? Some charge annually, monthly or
hourly. Talk money up front, otherwise you’ll be in for
a shock once you’ve committed.”

20. Are we a good
match?
The right accountant will have
more than just prestige – it’s
important they understand small
business needs, and are able to
offer relevant insight.
“Small businesses can be naïve
about their requirements, that’s
why it’s so important to ask an
accountant if they work with small
businesses, or have expertise in
your sector,” (Lewis).
Accountants offer differing levels of engagement, so
make sure to establish how often you’ll be in contact,
and whether you’ll correspond by email or telephone,
advises Lewis. Less contact often means less costs, but
can make it difficult to ask questions or spot issues.
At a larger firm, the person
you initially meet or speak to
on the phone might not be
the person actually handling
the work, he also reminds.
“Ask who will be dealing with
your account on a day-to-day
basis. You’ve got to be
satisfied that you’re not being
palmed off to the office
junior; that the person in
charge of your case
understands your business.”

21. Are things
working
out?
Once you’ve chosen an
accountant, measuring their
performance is an ongoing
process. Chung says a great way to
do this is to hold monthly
meetings where you can ask for
their view on the business and its
finances. “If their view is close to
yours, that’s a good sign,” she says.
“But you do still want to see a
degree of challenge and initiative -
if you only hear what you expect,
that’s not a good sign.”
Assessing performance is also about watching
whether your accountant asks the right questions
of you, too. Lewis says a good accountant will be
“pro-active”, ringing you up at least every three
months to see how the business is progressing.
Richardson also believes a
healthy relationship is
defined by ongoing
conversation and
information sharing, which
ultimately leads to trust.
“The way to get the most
out of your accountant is to
engage in dialogue,” he
says. “Ask questions, but
also be forthcoming. The
more you share about your
business, the more you will
get out of the relationship.”

22. • Click the link to watch a
short video on selecting
the right accountant for
your business:
https://www.youtube.com/
watch?v=kQfc_PRFrAQ

23. Monitoring Performance
Once your business is established and running well, you may be
inclined to let things continue to run as they are.
However, it's actually time to plan again. After the crucial early
stages, you should regularly review your progress, identify how
you can make the most of the market position you've established
and decide where to take your business next. You will need to
revisit and update your business plan with your new strategy in
mind and make sure you introduce the developments you've
noted.
You need to look again at the essential process, detailing the
stages you should go through to assess how well your business is
performing, highlighting your strengths and areas that could be
improved and suggesting the actions you need to take to
implement the improvements that you've identified.

24. Why it's vital to review the progress of your business
• Assess your core activities
• Assess your business efficiency
• Review your financial position
• Conduct a competitor analysis
• Conduct a customer and market analysis
• Use your review to redefine your business goals
• Models for your strategic analysis
• Breaking down your strategic review

25. Reviewing your progress will be particularly
useful if you feel :
• uncertain about how well the business is performing
• unsure if you're getting the most out of the business or
making the most of market opportunities
• your business plan may be out of date, e.g. you haven't
updated it since you started trading
• your business is moving in a direction different to the
one you had planned
• the business may be becoming unwieldy or
unresponsive to market demands
• It is also useful if you have decided that your company is
ready to move on to another level.

26. Setting the direction
A clear business strategy will help to answer any
concerns and show practical ways forward.
Questions you might want to ask include:
• What's my direction? To answer this you need to
look at where you are now, where you want to go
over the next three to five years and how you
intend to get there.
• What are my markets - now and in the future?
Which markets should I compete in, how will they
change and what does the business need in order
to be involved in these sectors?
• How do I gain market advantage? How can the
business perform better than the competition in
my chosen markets?

27. Continued…
• What resources do I require to succeed?
What skills, assets, finance,
relationships, technical competence and
facilities do I need to compete? Have
these changed since I started?
• What business environment am I
competing in? What external factors
may affect the business' ability to
compete?
• How am I measuring success?
Remember, measures of performance
may change as your business matures.

28. Assess your core activities
Key questions about your products or services
It's useful to address these questions:
• How effectively are you matching your goods and services
to your customers' needs? If you're not quite sure what
those needs are, you could carry out further market or
customer analysis. See the page in this guide on how to
conduct customer market analysis.
• Which of your products and services are succeeding?
Which aren't performing as planned? Decide which
products and services offer both a high percentage of
sales and high profit margins.

29. Continued…
• What's really behind the problems of a product or
service? Consider areas such as pricing, marketing,
sales and after-sales service, design, packaging and
systems during your review. Look for "quick wins"
that give you the breathing space to make more
fundamental improvements.
• Are you reviewing costs frequently? Are you
keeping a close enough eye on your direct costs,
your overheads and your assets? Are there
different ways of doing things or new materials you
could use that would lower your costs? Consider
ways in which you can negotiate better deals with
your suppliers.

30. Assess your business efficiency
• Many new businesses work in a short-term,
reactive way. This offers flexibility - but can cost
time and money as you move from getting the
business going to concentrating on growing and
developing it.
• The best option is to balance your ability to
respond rapidly with a clear overall strategy. This
will help you decide whether the actions you take
are appropriate or not.
• At this stage you should ask yourself if there are
any internal factors holding the business back, and
if so, what can you do about them?

31. Consider the various aspects of your business in turn.
• Premises
• Facilities
• Information technology
• People and skills
• Professional skills
REVIEW YOUR FINANCIAL POSITION
• Businesses often fail because of poor
financial management or a lack of
planning. Often the business plan that
was used to help raise finance is put on a
shelf to gather dust.
• When it comes to your business' success,
therefore, developing and implementing
sound financial and management
systems (or paying someone to do it for
you) is vital.
• Updating your original business plan is a
good place to start.

32. Premises
• What are your long-term
commitments to the property?
• What are the advantages and
disadvantages of your current
location?
• Do you have room to grow, or the
flexibility to cut back if necessary?
• If you move premises, what will be
the cost? Will there be long-term
cost savings and improvements in
efficiency?

33. Facilities
 If you manufacture products, how
modern is your equipment?
 What is the capacity of your current
facility compared to existing and
forecast demand?
 How will you fund any
improvements?
 How do you compare with your
competition?

34. Information Technology
• What management information and
other IT systems do you have in place?
• Will these systems cater for any proposed
expansion?
• Will they really make a difference to the
quality of product or service your
business provides? If they don't, can you
change them to make sure they do?
• Do you make best use of technology such
as wireless networking and mobile
telephony to allow for more flexible
working?

35. People and Skills
• Do you have the right people to achieve
your objectives?
• Do they know what is expected of them?
• Do you operate a training and
development plan?
• Do you pay as well as the competition?
• Do you suffer from high staff turnover?
Are staff motivated and satisfied?
https://www.youtube.com/watch?v=_nQc
NP6L3C4

36. Professional Skills
 Do you have the right management
team in place for growth?
 Do you have the skills available that
you need in areas such as human
resources, sales and IT?
 Do your staff need new or improved
skills or to be retrained?

37. When reviewing your finances
You might want to consider the following:
• Cash flow - this is the balance of all of the money flowing in and
out of your business. Make sure that your forecast is regularly
reviewed and updated.
• Working capital - have your requirements changed? If so, explain
the reasons for any movement. Compare this to the industry
norm. If necessary, take steps to source additional capital.
• Cost base - keep your costs under constant review. Make sure
that your costs are covered in your sale price - but don't expect
your customers to pay for any business inefficiencies.
• Borrowing - what is the position of any lines of credit or loans?
Are there more appropriate or cheaper forms of finance you
could use?
• Growth - do you have plans in place to adapt your financing to
accommodate your business' changing needs and growth?

38. Conduct a competitor analysis
What you need to know
• The type of competitor information that will be
really useful to you depends on the type of business
you are and the market you're operating in.
Questions to ask about your competitors include:
• who they are
• what they offer
• how they price their products
• what the profile and numbers of their customers
are compared to yours
• what their competitive advantages and
disadvantages are compared to yours
• what their reaction to your entry into the market or
any product or price changes might be

39. You will probably find it useful to do a SWOT (strengths,
weaknesses, opportunities, threats) analysis. This will show
you how you are doing in relation to the market in general
and specifically your closest competitors. See the page in
this guide on models for your strategic analysis.
How to find out more
• There are three main ways to find out more about your
competitors:
• What they say about themselves - sales literature,
advertisements, press releases, shared suppliers,
exhibitions, websites, competitor visits, company
accounts.
• What other people say about them - your sales people,
customers, local directories, the Internet, newspapers,
analysts' reports, market research companies.
• Commissioned market research - if you need more
detailed information, you might want to commission
specific market research.
Exercise: take a look at the link below and
see if you decide what the key elements
are to doing a successful competitive
analysis!!
http://www.sswm.info/sites/default/files
/reference_attachments/SAASNET%20NO
%20YEAR%20Competitive%20Analysis_0.
pdf

40. Conduct a customer and market analysis
When you started your business, you
probably devised a marketing plan as part of
your overall business plan. This would have
defined the market in which you intended to
sell and targeted the nature and
geographical distribution of your customers.
From that strategy you would have been
able to produce a marketing plan to help you
meet your objectives. When you're
reviewing your business' performance, you'll
need to assess your customer base and
market positioning as a key part of the
process. You should update your marketing
plan at least as often as your business plan.

41. Continued…
Revisiting your markets
• A business review offers you the opportunity to stand back from the
activity outlined in your plan and look again at factors such as:
• changes in your market
• news and emerging services
• changes in your customers' needs
• external factors such as the economy, imports and new technology
• changes in competitive activity
Asking your customers for feedback on your business' performance will
help to identify where improvements can be made to your products or
services, your staffing levels or your business procedures.
At the same time, it is important to remember that while reviews of this
kind can be very effective - they can give your business the flexibility it
needs to beat off stiff competition at short notice - it is important to think
through the implications of any changes. In the new phase of your
business you'll need to plan your finances and resourcing carefully at all
times.

42. Use your review to redefine your business goals
To remain successful it's vital that you regularly set time aside
to ask the following key strategic questions:
• Where is the business now?
• Where is it going?
• How is it going to get there?
Often businesses are able to work out where they want to go
but don't draw up a roadmap of how to get there. If this
happens, a business will lack the direction needed to turn
even carefully laid plans into reality.
At the end of any review process, therefore, it's vital that
work plans are prepared to put the new ideas into place and
that a timetable is set. Regularly reviewing how the new plan
is working and allowing for any teething problems or
necessary adjustments is important too. Today's business
environment is exceptionally dynamic and it is likely that you
will need regular reviews, updates and revisions to your
business plan in order to maintain business success.

43. Continuous improvement
• In addition, a simple planning cycle can greatly enhance
your ability to make changes in your business routine if
necessary. Good planning helps you anticipate problems
and adapt to change more easily.
Expert input
• You may find at this stage in your business' development
that you need external skills to help you with the
changes you have to make. In this case you might
consider:
• employing skilled consultants in areas where you cannot
afford to develop in house skills
• appointing an experienced non-executive director who
can provide a regular, impartial assessment of what you
are doing
• using a management consultant to help you identify
how you can strengthen or change your management
structure to grow the business.

44. Models for your strategic analysis
There are a number of useful business-analysis models that may help you think more strategically about
your business.
The SWOT analysis (strengths, weaknesses, opportunities, threats) is one of the most popular. This involves
looking at the strengths and weaknesses of your business' capabilities, and any opportunities and threats to
your business. Once you've identified all of these, you can assess how to capitalise on your strengths,
minimise the effects of your weaknesses, make the most of any opportunities and reduce the impact of any
threats.

45. Continued…
Opportunities and threats in the external environment
It's important to remember that opportunities can also be
threats - for example, new markets could be dominated by
competitors, undermining your position. Equally, threats
can also be opportunities -for example, a competitor
growing quickly and opening a new market for your
product or service could mean that your market expands
too.
A SWOT analysis can provide a clear basis for examining
your business performance and prospects. It can be used
as part of a regular review process or in preparation for
raising finance or bringing in consultants for a review.
Once you have collected information on your
organisation's internal strengths and weaknesses, and
external opportunities and threats, enter this data into a
simple table.

46. Breaking down your strategic review
As owner-manager of your business or as a member of its management team, you should stand back once in a
while and review your business' performance.
The areas you need to look at are:
• Your market performance and direction - how well you are performing through your sales results, which
markets to aim for next and how to improve your performance.
• Your products and services - how long your existing products will meet your customers' needs and any plans for
renewal.
• Operational matters - your premises, your methods, technologies used, your processes, IT and quality. Are there
any internal issues that are holding your business back?
• Financial matters - how your business is financed, levels of retained profit, the sales income generated and your
cash flow.
• Your organisation and your people - your structures, people planning issues, training and development.

47. Next steps
• The five steps above will give you a clear indication
of any issues that you need to address quickly in
order to maintain your business in its early stages.
• If you feel all of the areas above are strong, you can
start to plan for the next phase and build a cohesive
strategy to develop your business. However, if there
are areas that need attention, deal with them now
so that you can move forward. There are a variety
of growth options for every business - it's important
that you settle on the right one for you.
• Also, once you've isolated your best route for
developing your business, you can boost your
chances of success by planning it carefully and
monitoring your progress against an updated
business plan.

48. Writing a crowd funding proposal
Having a crystal clear proposition that’s summarised in just a few short sentences is critical. Why? Because by
addressing the points below you’ll be able to summarise why people should invest in your idea and, ultimately,
buy your product. Think of it as your written elevator pitch.
Of course it doesn’t answer every possible question anyone's going to have, but it will be enough to motivate
people to keep listening to what you have to say. Specifically, you’ll give people a clear understanding of what
the business does, who it’s for and why it will be a success. And after all, people want to invest in businesses
that will be successful.
• First impressions
• Creating your pitch page
• Use clear, succinct and
personable language
• Your video
• Rewards
• Pitch promotion activity
• Your value proposition
• Set an achievable target
• Have a realistic valuation
• Business plan
• Financial forecasts
• Exit strategy
• Pitch promotion plan

49. Writing a business plan
There are three main ways to write a business plan:
1. Pay someone to write the business plan.
2. Write a business plan yourself using Microsoft® Word and Excel.
3. Write it using specialist software
Here are the reasons why specialist software is the easiest way to write a business plan:
• Offers significant time saving
• Provides the structure
• Includes hundreds of examples
• Ensures you do not leave out any sections
• Makes the numbers part easy
• Free business plan support available
• Signposts relevant resources at appropriate points
• Designed specifically for producing a business plan
• Increases your chances

50. Sample Business Plan: Java Culture
• Coffee bar is determined to become a daily necessity for local coffee
addicts, a place to dream of as you try to escape the daily stresses of life
and just a comfortable place to meet your friends or to read a book, all in
one.
• With the growing demand for high-quality gourmet coffee and great
service, Java Culture will capitalize on its proximity to the University of
Oregon campus to build a core group of repeat customers. Java Culture
will offer its customers the best prepared coffee in the area that will be
complimented with pastries, as well as free books that its patrons can
read to enjoy their visit.
• The company will operate a 2,300 square foot coffee bar within a walking
distance from the University campus. The owners have secured this
location through a three-year lease with an option for extending. They
have also provided £140,000 of the required £170,000 start-up funds. The
remaining capital will be obtained through a Bank loan.
• The company is expected to grow sales revenue from £584,000 in year
one to £706,000 in year three. As Java Culture will strive to maintain a
65% gross profit margin and reasonable operating expenses, it will see
net profits grow from £100,000 to £125,000 during the same period.

51. • Objectives- Java Culture's objectives for the first year of operations are:
1. Become selected as the "Best New Coffee Bar in the area" by the local restaurant guide.
2. Turn in profits from the first month of operations.
3. Maintain a 65% gross margin.
• Keys to success
1. Store design that will be both visually attractive to customers, and designed for fast and efficient operations.
2. Employee training to insure the best coffee preparation techniques.
3. Marketing strategies aimed to build a solid base of loyal customers, as well as maximizing the sales of high
margin products, such as espresso drinks.
• Mission
Java Culture will make its best effort to create a unique place where customers can socialise with each other in a
comfortable and relaxing environment while enjoying the best brewed coffee or espresso and pastries in town.
We will be in the business of helping our customers to relieve their daily stresses by providing piece of mind
through great ambience, convenient location, friendly customer service, and products of consistently high quality.
Java Culture will invest its profits to increase the employee satisfaction while providing stable return to its
shareholders.
1st Stage: Preparation

52. 2nd Stage: Company Summary
• Company ownership
• Start up summary
• Company locations and facilities

53. 3rd Stage
• Product Description
• Sales Literature

54. 4th Stage: Market Analysis Summary
• Market segmentation
• Target market segment strategy
• Market needs
• Industry analysis
• Competition and buying patterns

55. 5th Stage
• Competitive Edge
• Sales Strategy
• Sales forecast

56. 6th Stage
• Management team
• Management team gaps
• Personnel plan

57. 7th Stage
• Important Assumptions
• Projected cash flow
• Project profit and losses
• Project balance sheet