Coffee All Day

1. Coffee AllDay
Logo:
ExecutiveSummary:
• My plan is to provide a friendly and comfortable place where the customers can receive
quality coffee, tea, and service at a reasonable and affordable price.
• My Cafe will provide a variety of selections to the customers. Cappuccinos, regular
coffee, soft drinks, and tea will be available.
• The cafe will also serve light breakfast, coffee cake, and sandwiches.
• Coffee Spot Cafe will be operational 24/7.
• Short-time goal: To become well famous throughout Sydney with the quality service.
• Long-time goal: To expand throughout Australia with more Coffee All Day spots.
Types of company: Private
Types of business: Coffee Shop
Product: Coffee, tea & snacks.
Name of company: Coffee All Day
Vision: to be among the best and innovative seller in the coffee market
Mission: we are committed to bring new flavours in our coffees

2. Figure 1. Project growth of sale and profit of Cafe All Day
Business Description:
The coffee and tea requirement in the college and school campus is very high. Cafe All Day will
serve all students, teachers, and other staff. It is famous that the customers from School and
colleges and neighboring areas will be the loyal customers of the Coffee All Day. An open
survey conducted in colleges indicates that our business is something customers are waiting
for. The quality and cleanliness will be the differential nature of the business. The market share
is indicated in Figure
Figure 2. Product share of Cafe All Day
0%
40%
80%
120%
160%
Sale Margin Profit
Year 1
Year 2
Year 3
Product share
17%
28%
38%
17% Coffee
Tea
Snacks
Stationery

3. Strategy: Work smart and hard to have the coffee, and service in town and surrounding places.
Market Analysis:
• Target Market: My target market will be anyone who likes coffee, but I will mainly focus
will be customers age 18 and older, both gents and ladies, and who are working class.
The total population of Sydney is 4.627 million, and the males and females are about the
same number. There are 2 million residents over the age of 18.
• Competition: The major competitors would be Brian’s Bookstore which is located in the
heart of Sydney. The strengths of Brian’s Bookstore that they serve coffee with books.
They have also been in Sydney since 1998 and they are well-famous. Customers may
also like their coffee.
• Market Trends: Coffee is the drink of satisfaction for many customers across Sydney.
Every morning millions of customers start their morning with Coffee and Tea.
– The Australia Department of Agriculture’s estimate of the 2017/18 world coffee
production has increased to 128.6 million bags, up 4.9 million bags
– 25% of the adult population consumed coffee on a daily basis in 2016 compared
with 20% in 2012.
Marketing Strategy:
• Marketing has to be done in order to make the business name famous across Sydney. I
will put posters on cars having my business name, logo, and contact details on them. I
will also put coupons in the local newspaper, magazines for $1.00. The coffee prices will
be reasonable i.e. not too high or too low. Advertisements in television will also be given
to widespread across Sydney and Australia.
Legal Requirements:
Once our detailed business plan is ready and we are ready starting our Cafe ownership, we
need get the permission from local council. They will provide us the guidelines to operate our
business and helps us in planning our business, recycling/waste and to fight our competitors.
Most Cafe businesses, including mobile services like vans and stalls have to be registered. We
can get this done by using the government’s food business registration service.
Depending on the market share of our business we may need to apply for Cafe premises
approval if our business involves preparation of raw meat or fish. Again this can be registered
on the Gov. Website, with the postcode of our Cafe. We should not forget that it’s a criminal
offence to run food locations that have not been approved by the government – not following
this our business can be fined heavily and even can be asked to close.

4. Legal Structure:
• My business will run as proprietorship.
• All debts and liabilities will be taken care by me in the initial stage and then turning the
company into public limited company.
• The income taxes will be paid on the profits of the company. This will help the company
to get much viability in the eyes of the government.
• Gradually the business has to turn into a public listed company and this will help to
expand even outside Australia.
Accounting and Legal:
• SAP and Tally ERP 9 will be used for accounting.
• I will use Australian Tax Consultants for my tax purposes and auditing firm, and I will
personally involve myself in financial statement analysis.

5. Finance Needs:
I will not go for financing in the initial phase but soon or the later the company has to expand
through external financing. I plan on using my savings and bank loan. If something doesn’t goes
well as per planning, then I will outsource the management for the better control and helps in
better source of financing.
The Cafe All Day will be open with few working staff. The Cafe All Day is planned to operate at
50 square feet space room available in the ground floor of the Management College, Sydney.
The labors are available to help in the operation of the Coffee All Day. The location of the
Coffee All Day is accessible to suppliers. The fund requirement is given in Figure.
Figure 3. Start-up fund plan of Cafe All Day
Cafe All Day will depend on the strong requirement for high-quality coffee. The investors in the
future will provide the Coffee All Day with sufficient funds for the expansion. With successful
management with a focus to expand can change the future of the company. Cafe All Day will
keep a much needed 50% gross margin, which will compensate the operating expenses, and
provides enough cash for expansion.
The profit and loss account is projected for next three years. The sales, margin, expenses and
profit are given in Figure. It is expected that the Coffee All day is profitable in the first year. The
profit is in the increasing trend in the future years.
INR 0
INR 20,000
INR 40,000
INR 60,000
Total fund Assets Liabalities Investment
Start-up funding

6. Figure 4. Projected sale, margin, expenses and profit of Cafe All Day
The balance sheet is projected for the next three years. The projected asset, liabilities and
capital are given in Figure. The asset and cash position is in increasing trend. The net worth of
the company is increasing, which is the healthy sign of future of the organization
Figure 5. Projected assets, liabilities and capital of Cafe All Day
INR 0
INR 500,000
INR 1,000,000
INR 1,500,000
INR 2,000,000
INR 2,500,000
INR 3,000,000
Sale Margin Expenses Profit
Year 1
Year 2
Year 3
INR 0
INR 200,000
INR 400,000
INR 600,000
INR 800,000
INR 1,000,000
Assests Liabilities Capital
Year 1
Year 2
Year 3

7. A1. Start-up Requirements
Start-up Expenses
Legal AUD 6,700
Stationery etc. AUD 4,000
Telephone AUD 2,000
Consultants AUD 0
Insurance AUD 6,700
Rent AUD 2,000
Electricity AUD 6,700
Extra AUD 6,700
Total Start-up Expenses AUD 42,700
Start-up Assets
Cash AUD 7,000
Inventory AUD 9,000
Current Assets AUD 0
Long-term Assets AUD 16,700
Total Assets AUD 36,700
Total Requirements AUD 60,000
A2. Start-up Funding
Start-up Expenses to Fund AUD 42,700
Start-up Assets to Fund AUD 68,700
Total Funding Required AUD 82,000
Assets
Non-cash Assets from Start-up AUD 28,700

8. Cash Requirements from Start-up AUD 11,000
Additional Cash Raised AUD 0
Total Assets AUD 52,700
Liabilitiesand Capital
Liabilities
Current Borrowing AUD 42,000
Long-term Liabilities AUD 0
Accounts Payable (Outstanding Bills) AUD 0
Other Current Liabilities (interest-free) AUD 0
Total Liabilities AUD 62,000
Capital
Planned Investment
Investor one AUD 42,000
investor two AUD 0
All other investors AUD 0
Additional Investment Requirement AUD 0
Total Planned Investment AUD 46,000
Loss at Start-up Expenses (AUD 25,700)
Total Capital AUD 18,500
Total Capital and Liabilities AUD 35,700
Total Funding AUD 58,000
Applying Loan witha Bank:
A loan can also be applied to a bank for extra capital and making the Coffee All Day as a bigger
enterprise just as Cafe Coffee Day and similar such enterprises.

9. A2. Profit and Loss Account (projected)
Income Year 1 Year 2 Year 3
Sales AUD 1,740,000 AUD 2,176,700 AUD 2,610,000
Direct Cost of Sales(0.65-.55) AUD 1,131,000 AUD 1,306,700 AUD 1,435,500
Other 0 0 0
Total Cost of Sales AUD 1,131,000 AUD 1,306,700 AUD 1,435,500
Gross Margin AUD 609,000 AUD 870,000 AUD 1,174,500
Gross Margin % 35% 40% 45%
Expenses Year 1 Year 2 Year 3
Payroll AUD 130,680 AUD 0 AUD 0
Sales and Marketing and Other Expenses AUD 20,000 AUD 20,000 AUD 20,000
Depreciation (0.3) AUD 4,500 AUD 4,500 AUD 4,500
Rent AUD 1,000 AUD 1,000 AUD 1,000
Maintenance AUD 6,700 AUD 6,700 AUD 6,700
Utilities/Phone AUD 1,000 AUD 1,000 AUD 1,000
Payroll Taxes AUD 0 AUD 0 AUD 0
Other AUD 0 AUD 0 AUD 0
Total Operating Expenses AUD 162,180 AUD 31,500 AUD 31,500
Profit Before Interest and Taxes AUD 446,820 AUD 838,500 AUD 1,143,000
EBITDA AUD 451,320 AUD 843,000 AUD 1,147,500
Interest Expense AUD 4,000 AUD 4,000 AUD 4,000
Taxes Incurred (0.3) AUD 134,046 AUD 251,550 AUD 342,900
Net Profit AUD 313,274 AUD 587,450 AUD 800,600
Net Profit/Sales 18% 27% 31%

10. A4. Balance sheet (projected)
Assets Year 1 Year 2 Year 3
Current Assets
Cash AUD 328,938 AUD 616,823 AUD 840,630
Inventory AUD 29,500 AUD 24,000 AUD 18,500
Current Assets AUD 10,000 AUD 10,000 AUD 10,000
Total Current Assets AUD 368,438 AUD 650,823 AUD 869,130
Long-term Assets
Long-term Assets AUD 16,700 AUD 16,700 AUD 16,700
Total Depreciation (AUD 4,500) (AUD 9,000) (AUD 13,500)
Total Long-term Assets AUD 10,500 AUD 6,000 AUD 1,500
Total Assets AUD 378,938 AUD 656,823 AUD 870,630
Liabilitiesand Capital Year 1 Year 2 Year 3
Accounts Payable AUD 15,664 AUD 29,373 AUD 40,030
Current Borrowing AUD 20,000 AUD 20,000 AUD 20,000
Other Current Liabilities AUD 0 AUD 0 AUD 0
Subtotal Current Liabilities AUD 35,664 AUD 49,373 AUD 60,030
Long-term Liabilities AUD 0 AUD 0 AUD 0
Total Liabilities AUD 35,664 AUD 49,373 AUD 60,030
Paid-in Capital AUD 40,000 AUD 30,000 AUD 20,000
Retained Earnings (AUD 10,000) (AUD 10,000) (AUD 10,000)
Earnings AUD 313,274 AUD 587,450 AUD 800,600
Total Capital AUD 343,274 AUD 607,450 AUD 810,600
Total Liabilitiesand Capital AUD 378,938 AUD 656,823 AUD 870,630

11. Role of Accounting:
Accounting helps in communicates information of the company owners, managers, and
investors which are needed to know a company’s financial situation.
Accountants basically work in two major departments: management accounting, which helps
you to make correct business decisions and financial accounting, which helps to know where
our business stands.
The idea of management accounting is to give correct, accurate, right information to
management which can help them in making best decisions in the favor of the company.
The nature of financial accounting is to communicate information that provides the calculations
of a company’s financial position and current situation.
Financial accounting includes profit and loss statements, balance sheets, and cash and fund
flow statements

12. Financial Statement Analysis:
The analysis of the financial statement always helpful to the management in coming to any
conclusion and determining the true position of the company.
There are many considerations that the management of the business would take into
account in deciding on whether to distribute profits or to retain them in the business. Interest
A5. Ratio Analysis
Financial ratios Year 1 Year 2 Year 3
Current ratio 11.33 12.18 15.48
Inventory turn-over 54.34 55.38 78.59
Debt/Net worth 1.10 0.07 0.67
Return on tangible net worth 1.91 1.97 1.99
Return on Assets 1.83 1.89 1.92
0
20
40
60
80
Current ratio Inventory turn-over
Ratio
Financial ratios
Year 1
Year 2
Year 3
0.00
0.50
1.00
Debt/Net worth Return on
tangible net worth
Return on Assets
Ratio
Financial ratios
Year 1
Year 2
Year 3

13. has to be paid to the banks on time. Tax payments have to be timely. If the funds are
borrowed through shares and debentures then share dividends and bond interest has to be
paid to the concerned parties. According to M & M firm valuation method, the value of the
firm increases if the payments are made on time. The value of the company always
depends upon the tax payments of the company. If the company is default on the interest
payments or any dividend payments then the company loses the credibility in the minds of
the investors. Majority of the funds should be distributing to the investors and rest should be
kept for the expansion of the firm.