Startup Costs & Revenue Break Even for New Coffee Shop Business
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The document outlines the requirements and costs for starting a coffee shop business. It estimates total start-up expenses of $27,680 and total assets of $142,320, for a total start-up cost of $170,000. It also lists an estimated monthly revenue break-even point of $31,247 based on average variable costs of 35% and monthly fixed costs of $20,311. The document recommends targeting office building employees to help the coffee business grow.
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Startup Costs & Revenue Break Even for New Coffee Shop Business
- 3. Become a part of a rich culture A profitable business avenue No fear: succeed! 90% of coffee house start-ups
- 4. Added Revenue Place to Relax within Office premises Employee Satisfaction
- 5. Requirements Cost (in Dollars) Legal 1,300 Stationary 500 Brochures 3,580 Consultants 3,000 Insurance 2,400 Rent 4,400 Remodeling 10,000 Other 2,500 Total Start up Expenses 27,680 Bplans. (n.d.). Coffee Shop Business Plan. Retrieved November 24, 2009, from Bplans.com: http://www.bplans.com/coffee_shop_business_plan/executive_summary_fc.cfm
- 6. Requirements Cost (in Dollars) Cash Required 67,123 Startup Inventory 16,027 Other Current Assets 0 Long term Assets 59,170 Total Assets 142,320 Total Cost (in Dollars) Total Start up Expenses 27,680 Total Assets 142,320 Total Startup 170,000 Bplans. (n.d.). Coffee Shop Business Plan. Retrieved November 24, 2009, from Bplans.com: http://www.bplans.com/coffee_shop_business_plan/executive_summary_fc.cfm
- 7. Bplans. (n.d.). Coffee Shop Business Plan. Retrieved November 24, 2009, from Bplans.com: http://www.bplans.com/coffee_shop_business_plan/executive_summary_fc.cfm
- 8. Monthly Revenue Break Even $31,247 Assumptions: Average Percent Variable Cost 35% Estimated Monthly Fixed Cost $20,311 Bplans. (n.d.). Coffee Shop Business Plan. Retrieved November 24, 2009, from Bplans.com: http://www.bplans.com/coffee_shop_business_plan/executive_summary_fc.cfm
- 9. The coffee market and industry is expected to grow in the near future Target other office building employees
- 10. Bplans. (n.d.). Coffee Shop Business Plan. Retrieved November 24, 2009, from Bplans.com: http://www.bplans.com/coffee_shop_business_plan/executive_summary_f c.cfm FabJob, (n.d.). Become a Coffee House Owner. Retrieved: November 24, 2009, from FabJob.com: http://www.fabjob.com/coffeehouse.asp? r=53.6681181605779&svr=15&lang=en_us&
Editor's Notes
- Every morning, millions of Americans have a coffee based drink. Culture to make coffee in home has vanished and going to cafés is now an accepted culture now. People who could make a cup of coffee less than 30 cents in their home now gladly pay $3 to $5 and in some cases $10 for their mocha, cappuccino and latte (bplans)
- By owning your own coffee house, you become part of a rich culture that dates back to the time of King Solomon. It provides a place where people gather, mingle and socialize. People got to cafes to have meetings or to just relax as well. They discuss politics, music, poetry, romance or rebellion. Its like your own place, your own world. People feel because of Starbuck no other coffee shop can survive. Journalist Taylor Clark proves it wrong through his report on a coffee house which was opened next door to Starbucks and managed to have revenue of $1 million. The gist of this article is there that America loves to have coffee and there’s plenty of cash available with Americans. Journalist Taylor Clark also reports that most of the coffee shops that open up succeed right away. So this research shows that our risk is minimized (FabJob)
- Around 1300 employees can work in River View Plaza, and if the coffee is good than an minimum of 1300 coffees are sold per day. And not only just coffee would be available but pastries and some items for lunch as well. Many employees get tired of the work atmosphere. They need somewhere to be relaxed in the office premises only. And if our management allows employees to work in the café as well, it would truly serve as a factor of satisfaction.
- With average monthly fixed costs of $20,300 in FY2001 and an average margin of 65%, Java Culture's break-even sales volume is around $31,300 per month. As shown further, the company is expected to generate such sales volume from the outstart.
- The table here clearly shows that after sales of $31,247, our café coffee will breakeven and any sales above it will be our profit !
- The further growth in the market can be our opportunity and our business can grow on this fact. Other than this we can also build our marketing strategy to attract employees in other office buildings to come to our coffee café. This shouldn’t be restricted to just River View Plaza