SlideShare a Scribd company logo
Abbie’s Bevies Finance Breakdown 
By Zoe Baskett, Rob Noble, Sarah 
Kirkby, Michael Fabiyi & Tim 
Bedford-Bain
What is Abbie’s Bevies and why is the 
investment needed? 
• Online supplier of hot beverages and machinery 
• USP through levels of customer service 
• Aim to maximise the efficiency of the product 
enabling a premium price 
• Partners with an established coffee brand 
• Looking for £30,000 at the rate of 3.4% 
• To expand and grow the company 
• Currently unable to take advantage of the market 
potential 
• Investment will allow the to improve economies 
of scale and relationships with suppliers
The business environment 
S.W.O.T Analysis 
• Strengths- USP of after sales 
support 
• Weaknesses- Cost of staff 
training & USP is easily 
mimicked 
• Opportunities- Leaders in 
free after care:- gain large 
customer base 
• Threats- Large chains 
(Starbucks/Costa) already 
have after care support 
(Starbucks.,2013) 
P.E.S.T Analysis 
• Political- Tax on take away 
hot drinks (Customs, 2012). Fair 
trade coffee 
• Economical- Fair trade 
coffee (anon.,2010) 
• Social- Growing popularity 
for social coffees (anon.,2010) 
• Technological- 3 different 
types of coffee machines. 
Can be overly complicated 
leaving high service 
charges.(anon.,2012)
The finances 
! 
• Fixed assets – Much more reliable, but as the 
fixed assets are lower than the liabilities by 
£84,974, it will mean that her assets are not 
enough to pay off her liabilities. 
• Current assets – Not reliable source, changes a 
lot so it fluctuates so therefore we could not 
use that as a reliable source. 
• Loan repayments – As the business still has 
loan repayments of £52,207 the business will 
be using our loan to pay off other existing 
loans.
Should we invest in Abbie's Bevies? 
• Pro's 
• She and her team have a lot of experience within 
the industry. 
• Satisfied other banks with their loan repayments. 
• Organised and planned future. The company know 
what they are going to do with the loan. 
• The company makes a profit 
• Con's 
• A lot of competition 
• Already owes money back to other lenders 
• Has already acquired debt in the past 
• USP is not original enough. 
• Long running business with low profit
Why did we say no? 
• Reason for the refusal -Their fixed costs are too high 
• The business will be paying out other loan payments 
while still trying to pay us (investors) £903.33 each 
month. 
• The amount of fixed cost the business faces makes 
it hard to believe that they'll increase their profit 
margin in the next 2/3years. 
• Operating in a competitive market with a weak USP. 
• Business has broken even & made a profit for the 
past 2 years, however, their profit margin is small 
and has declined by £3,176 since the year 2011.
References 
! 
• Bibliography 
• Anon, 2012. Coffee to go. 18(5), pp. 50-51. 
• Anon, 2010. Passion for Coffee. [Online] 
Available at: http://www.passionforcoffee.com/types/fair-trade/ 
[Accessed 16 April 2013]. 
• Anon, 2010. Passion for Coffee. [Online] 
Available at: http://www.passionforcoffee.com/background/overview/ 
[Accessed 16 April 2013]. 
• Customs, H. R. a., 2012. HM Revenue and Customs. [Online] 
Available at: http://www.passionforcoffee.com/background/overview/ 
[Accessed 16 April 2013]. 
• Starbucks, 2013. Starbucks. [Online] 
Available at: http://starbucks.co.uk/about-us 
[Accessed 17 April 2013].

More Related Content

Viewers also liked

PPT- October 23
PPT- October 23PPT- October 23
PPT- October 23
bphskc
 
2015 prosumerreport family
2015 prosumerreport family 2015 prosumerreport family
2015 prosumerreport family
HavasWWSpain
 
"Me dicen el clandestino"
"Me dicen el clandestino""Me dicen el clandestino"
"Me dicen el clandestino"
Nicola Canestrini
 
Organización tradicional vs organización actual
Organización tradicional vs organización actualOrganización tradicional vs organización actual
Organización tradicional vs organización actual
Karen Riaño
 
intelectual property rights on transgenics
intelectual property rights on transgenicsintelectual property rights on transgenics
intelectual property rights on transgenics
Anilkumar C
 
Nelson Mandela
Nelson MandelaNelson Mandela
Nelson Mandela
ssb21
 
Diritto penale europeo. MAE ed OIE
Diritto penale europeo. MAE ed OIEDiritto penale europeo. MAE ed OIE
Diritto penale europeo. MAE ed OIE
Nicola Canestrini
 
Aprendizaje Ubicuo
Aprendizaje UbicuoAprendizaje Ubicuo
Aprendizaje Ubicuomabero49
 
Semana cultural
Semana culturalSemana cultural
Semana cultural
SASHAMILLITZA15
 
maaustria-local
maaustria-localmaaustria-local
maaustria-local
Mary Ann Austria
 
Ss great britain
Ss great britainSs great britain
Ss great britainmanketo
 

Viewers also liked (11)

PPT- October 23
PPT- October 23PPT- October 23
PPT- October 23
 
2015 prosumerreport family
2015 prosumerreport family 2015 prosumerreport family
2015 prosumerreport family
 
"Me dicen el clandestino"
"Me dicen el clandestino""Me dicen el clandestino"
"Me dicen el clandestino"
 
Organización tradicional vs organización actual
Organización tradicional vs organización actualOrganización tradicional vs organización actual
Organización tradicional vs organización actual
 
intelectual property rights on transgenics
intelectual property rights on transgenicsintelectual property rights on transgenics
intelectual property rights on transgenics
 
Nelson Mandela
Nelson MandelaNelson Mandela
Nelson Mandela
 
Diritto penale europeo. MAE ed OIE
Diritto penale europeo. MAE ed OIEDiritto penale europeo. MAE ed OIE
Diritto penale europeo. MAE ed OIE
 
Aprendizaje Ubicuo
Aprendizaje UbicuoAprendizaje Ubicuo
Aprendizaje Ubicuo
 
Semana cultural
Semana culturalSemana cultural
Semana cultural
 
maaustria-local
maaustria-localmaaustria-local
maaustria-local
 
Ss great britain
Ss great britainSs great britain
Ss great britain
 

Similar to Example Finance Breakdown

Business plan-Coffee All Day
Business plan-Coffee All DayBusiness plan-Coffee All Day
Business plan-Coffee All Day
Gagan Dharwal
 
Subway Asia Pacific franchise opportunity deck
Subway Asia Pacific franchise opportunity deckSubway Asia Pacific franchise opportunity deck
Subway Asia Pacific franchise opportunity deck
Matthias Maximilian
 
Black & White Coffee Shop (Naim's group)
Black & White Coffee Shop (Naim's group)Black & White Coffee Shop (Naim's group)
Black & White Coffee Shop (Naim's group)
nurinana
 
Starbucks
StarbucksStarbucks
Starbucks
Debashish Bagg
 
Optimizing the Value of Your Company
Optimizing the Value of Your CompanyOptimizing the Value of Your Company
Optimizing the Value of Your Company
bitnetonline
 
Starbucks delivering customer service
Starbucks delivering customer serviceStarbucks delivering customer service
Starbucks delivering customer service
Monoj Kumar Rabha
 
Running head THE OPENING OF A COFFEE SHOP1The opening of a .docx
Running head THE OPENING OF A COFFEE SHOP1The opening of a .docxRunning head THE OPENING OF A COFFEE SHOP1The opening of a .docx
Running head THE OPENING OF A COFFEE SHOP1The opening of a .docx
agnesdcarey33086
 
Commercial Financing Mastery 101
Commercial Financing Mastery 101Commercial Financing Mastery 101
Commercial Financing Mastery 101
Sua Truong
 
Silicon Peel meetup16 slidedeck
Silicon Peel meetup16 slidedeck Silicon Peel meetup16 slidedeck
Silicon Peel meetup16 slidedeck
Ric Centre
 
Introduction to investing
Introduction to investingIntroduction to investing
Introduction to investing
jprice8
 
Atanu_Resume_1
Atanu_Resume_1Atanu_Resume_1
Atanu_Resume_1
Atanu Banerjee
 
Entrepreneurial Funding Sources for Australia
Entrepreneurial Funding Sources for AustraliaEntrepreneurial Funding Sources for Australia
Entrepreneurial Funding Sources for Australia
M-innovation Australia
 
Raj mehta 04 sfimar
Raj mehta 04 sfimarRaj mehta 04 sfimar
Raj mehta 04 sfimar
Pravinsaraf
 
Financial Analysis of two companies in the F&B industry
Financial Analysis of two companies in the F&B industryFinancial Analysis of two companies in the F&B industry
Financial Analysis of two companies in the F&B industry
brendahj
 
Pricing in a Post Royal Commission world
Pricing in a Post Royal Commission worldPricing in a Post Royal Commission world
Pricing in a Post Royal Commission world
netwealthInvest
 
Ey entrepreneur of the year award west africa 2013 (2)
Ey entrepreneur of the year award west africa   2013 (2)Ey entrepreneur of the year award west africa   2013 (2)
Ey entrepreneur of the year award west africa 2013 (2)
amfacilities
 
Business plan.pptx
Business plan.pptxBusiness plan.pptx
Business plan.pptx
AbuAmin8
 
Getting Alfatah Online
Getting Alfatah OnlineGetting Alfatah Online
Getting Alfatah Online
Aima Masood
 
Organizational Changes in the Bank of Baroda
Organizational Changes in the  Bank of BarodaOrganizational Changes in the  Bank of Baroda
Organizational Changes in the Bank of Baroda
N V Jagadeesh Kumar
 
8.2.17.a pitchdeck i consumer rob v3
8.2.17.a pitchdeck i consumer rob v38.2.17.a pitchdeck i consumer rob v3
8.2.17.a pitchdeck i consumer rob v3
Robert Grosshandler
 

Similar to Example Finance Breakdown (20)

Business plan-Coffee All Day
Business plan-Coffee All DayBusiness plan-Coffee All Day
Business plan-Coffee All Day
 
Subway Asia Pacific franchise opportunity deck
Subway Asia Pacific franchise opportunity deckSubway Asia Pacific franchise opportunity deck
Subway Asia Pacific franchise opportunity deck
 
Black & White Coffee Shop (Naim's group)
Black & White Coffee Shop (Naim's group)Black & White Coffee Shop (Naim's group)
Black & White Coffee Shop (Naim's group)
 
Starbucks
StarbucksStarbucks
Starbucks
 
Optimizing the Value of Your Company
Optimizing the Value of Your CompanyOptimizing the Value of Your Company
Optimizing the Value of Your Company
 
Starbucks delivering customer service
Starbucks delivering customer serviceStarbucks delivering customer service
Starbucks delivering customer service
 
Running head THE OPENING OF A COFFEE SHOP1The opening of a .docx
Running head THE OPENING OF A COFFEE SHOP1The opening of a .docxRunning head THE OPENING OF A COFFEE SHOP1The opening of a .docx
Running head THE OPENING OF A COFFEE SHOP1The opening of a .docx
 
Commercial Financing Mastery 101
Commercial Financing Mastery 101Commercial Financing Mastery 101
Commercial Financing Mastery 101
 
Silicon Peel meetup16 slidedeck
Silicon Peel meetup16 slidedeck Silicon Peel meetup16 slidedeck
Silicon Peel meetup16 slidedeck
 
Introduction to investing
Introduction to investingIntroduction to investing
Introduction to investing
 
Atanu_Resume_1
Atanu_Resume_1Atanu_Resume_1
Atanu_Resume_1
 
Entrepreneurial Funding Sources for Australia
Entrepreneurial Funding Sources for AustraliaEntrepreneurial Funding Sources for Australia
Entrepreneurial Funding Sources for Australia
 
Raj mehta 04 sfimar
Raj mehta 04 sfimarRaj mehta 04 sfimar
Raj mehta 04 sfimar
 
Financial Analysis of two companies in the F&B industry
Financial Analysis of two companies in the F&B industryFinancial Analysis of two companies in the F&B industry
Financial Analysis of two companies in the F&B industry
 
Pricing in a Post Royal Commission world
Pricing in a Post Royal Commission worldPricing in a Post Royal Commission world
Pricing in a Post Royal Commission world
 
Ey entrepreneur of the year award west africa 2013 (2)
Ey entrepreneur of the year award west africa   2013 (2)Ey entrepreneur of the year award west africa   2013 (2)
Ey entrepreneur of the year award west africa 2013 (2)
 
Business plan.pptx
Business plan.pptxBusiness plan.pptx
Business plan.pptx
 
Getting Alfatah Online
Getting Alfatah OnlineGetting Alfatah Online
Getting Alfatah Online
 
Organizational Changes in the Bank of Baroda
Organizational Changes in the  Bank of BarodaOrganizational Changes in the  Bank of Baroda
Organizational Changes in the Bank of Baroda
 
8.2.17.a pitchdeck i consumer rob v3
8.2.17.a pitchdeck i consumer rob v38.2.17.a pitchdeck i consumer rob v3
8.2.17.a pitchdeck i consumer rob v3
 

Recently uploaded

Story Telling Master Class - Jennifer Morilla
Story Telling Master Class - Jennifer MorillaStory Telling Master Class - Jennifer Morilla
Assignment 2 Task 1: Digital Marketing Course
Assignment 2 Task 1: Digital Marketing CourseAssignment 2 Task 1: Digital Marketing Course
Assignment 2 Task 1: Digital Marketing Course
klaudiadgmkt
 
Mastering SEO for Google in the AI Era - Dennis Yu
Mastering SEO for Google in the AI Era - Dennis YuMastering SEO for Google in the AI Era - Dennis Yu
Mindfulness Techniques Cultivating Calm in a Chaotic World.pptx
Mindfulness Techniques Cultivating Calm in a Chaotic World.pptxMindfulness Techniques Cultivating Calm in a Chaotic World.pptx
Mindfulness Techniques Cultivating Calm in a Chaotic World.pptx
elizabethella096
 
Lily Ray - Optimize the Forest, Not the Trees: Move Beyond SEO Checklist - Mo...
Lily Ray - Optimize the Forest, Not the Trees: Move Beyond SEO Checklist - Mo...Lily Ray - Optimize the Forest, Not the Trees: Move Beyond SEO Checklist - Mo...
Lily Ray - Optimize the Forest, Not the Trees: Move Beyond SEO Checklist - Mo...
Amsive
 
Luxury Hanloom Saree Brand ,Capstone Project_Kiran Bansal.pdf
Luxury Hanloom Saree Brand ,Capstone Project_Kiran Bansal.pdfLuxury Hanloom Saree Brand ,Capstone Project_Kiran Bansal.pdf
Luxury Hanloom Saree Brand ,Capstone Project_Kiran Bansal.pdf
KiranRai75
 
No Cookies, No Problem - Steve Krull, Be Found Online
No Cookies, No Problem - Steve Krull, Be Found OnlineNo Cookies, No Problem - Steve Krull, Be Found Online
No Cookies, No Problem - Steve Krull, Be Found Online
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
How to Kickstart Content Marketing With A Small Team - Dennis Shiao
How to Kickstart Content Marketing With A Small Team - Dennis ShiaoHow to Kickstart Content Marketing With A Small Team - Dennis Shiao
How to Kickstart Content Marketing With A Small Team - Dennis Shiao
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
Basic Management Concepts., “Management is the art of getting things done thr...
Basic Management Concepts., “Management is the art of getting things done thr...Basic Management Concepts., “Management is the art of getting things done thr...
Basic Management Concepts., “Management is the art of getting things done thr...
DilanThennakoon
 
Practical Progress from a Theory by Steven Kingpdf
Practical Progress from a Theory by Steven KingpdfPractical Progress from a Theory by Steven Kingpdf
Practical Progress from a Theory by Steven Kingpdf
william charnock
 
From Subreddits To Search: Maximizing Your Brand's Impact On Reddit
From Subreddits To Search: Maximizing Your Brand's Impact On RedditFrom Subreddits To Search: Maximizing Your Brand's Impact On Reddit
From Subreddits To Search: Maximizing Your Brand's Impact On Reddit
Search Engine Journal
 
Evaluating the Effectiveness of Women-Focused Marketing
Evaluating the Effectiveness of Women-Focused MarketingEvaluating the Effectiveness of Women-Focused Marketing
Evaluating the Effectiveness of Women-Focused Marketing
HighViz PR
 
Global Growth Starts With Translation - How To Unlock Global Markets - Tim Kirby
Global Growth Starts With Translation - How To Unlock Global Markets - Tim KirbyGlobal Growth Starts With Translation - How To Unlock Global Markets - Tim Kirby
Global Growth Starts With Translation - How To Unlock Global Markets - Tim Kirby
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
PickUp_conversational AI_Capex, Inc._20240610
PickUp_conversational AI_Capex, Inc._20240610PickUp_conversational AI_Capex, Inc._20240610
PickUp_conversational AI_Capex, Inc._20240610
Shuntaro Kogame
 
INTRODUCTION TO SEARCH ENGINE OPTIMIZATION (SEO).pptx
INTRODUCTION TO SEARCH ENGINE OPTIMIZATION (SEO).pptxINTRODUCTION TO SEARCH ENGINE OPTIMIZATION (SEO).pptx
INTRODUCTION TO SEARCH ENGINE OPTIMIZATION (SEO).pptx
Giorgio Chiesa
 
AI Best Practices for Marketing HUG June 2024
AI Best Practices for Marketing HUG June 2024AI Best Practices for Marketing HUG June 2024
AI Best Practices for Marketing HUG June 2024
Amanda Farrell
 
Boost Your Instagram Views Instantly Proven Free Strategies.
Boost Your Instagram Views Instantly Proven Free Strategies.Boost Your Instagram Views Instantly Proven Free Strategies.
Boost Your Instagram Views Instantly Proven Free Strategies.
InstBlast Marketing
 
Influencer Marketing Master Class - Alexis Andreasik
Influencer Marketing Master Class - Alexis AndreasikInfluencer Marketing Master Class - Alexis Andreasik
Influencer Marketing Master Class - Alexis Andreasik
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
SEO in the AI Era - Trust, Quality and Content Discovery - Andy Crestodina
SEO in the AI Era - Trust, Quality and Content Discovery - Andy CrestodinaSEO in the AI Era - Trust, Quality and Content Discovery - Andy Crestodina
SEO in the AI Era - Trust, Quality and Content Discovery - Andy Crestodina
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 

Recently uploaded (20)

Story Telling Master Class - Jennifer Morilla
Story Telling Master Class - Jennifer MorillaStory Telling Master Class - Jennifer Morilla
Story Telling Master Class - Jennifer Morilla
 
Assignment 2 Task 1: Digital Marketing Course
Assignment 2 Task 1: Digital Marketing CourseAssignment 2 Task 1: Digital Marketing Course
Assignment 2 Task 1: Digital Marketing Course
 
Mastering SEO for Google in the AI Era - Dennis Yu
Mastering SEO for Google in the AI Era - Dennis YuMastering SEO for Google in the AI Era - Dennis Yu
Mastering SEO for Google in the AI Era - Dennis Yu
 
Mindfulness Techniques Cultivating Calm in a Chaotic World.pptx
Mindfulness Techniques Cultivating Calm in a Chaotic World.pptxMindfulness Techniques Cultivating Calm in a Chaotic World.pptx
Mindfulness Techniques Cultivating Calm in a Chaotic World.pptx
 
Lily Ray - Optimize the Forest, Not the Trees: Move Beyond SEO Checklist - Mo...
Lily Ray - Optimize the Forest, Not the Trees: Move Beyond SEO Checklist - Mo...Lily Ray - Optimize the Forest, Not the Trees: Move Beyond SEO Checklist - Mo...
Lily Ray - Optimize the Forest, Not the Trees: Move Beyond SEO Checklist - Mo...
 
Luxury Hanloom Saree Brand ,Capstone Project_Kiran Bansal.pdf
Luxury Hanloom Saree Brand ,Capstone Project_Kiran Bansal.pdfLuxury Hanloom Saree Brand ,Capstone Project_Kiran Bansal.pdf
Luxury Hanloom Saree Brand ,Capstone Project_Kiran Bansal.pdf
 
No Cookies, No Problem - Steve Krull, Be Found Online
No Cookies, No Problem - Steve Krull, Be Found OnlineNo Cookies, No Problem - Steve Krull, Be Found Online
No Cookies, No Problem - Steve Krull, Be Found Online
 
How to Kickstart Content Marketing With A Small Team - Dennis Shiao
How to Kickstart Content Marketing With A Small Team - Dennis ShiaoHow to Kickstart Content Marketing With A Small Team - Dennis Shiao
How to Kickstart Content Marketing With A Small Team - Dennis Shiao
 
Basic Management Concepts., “Management is the art of getting things done thr...
Basic Management Concepts., “Management is the art of getting things done thr...Basic Management Concepts., “Management is the art of getting things done thr...
Basic Management Concepts., “Management is the art of getting things done thr...
 
Practical Progress from a Theory by Steven Kingpdf
Practical Progress from a Theory by Steven KingpdfPractical Progress from a Theory by Steven Kingpdf
Practical Progress from a Theory by Steven Kingpdf
 
From Subreddits To Search: Maximizing Your Brand's Impact On Reddit
From Subreddits To Search: Maximizing Your Brand's Impact On RedditFrom Subreddits To Search: Maximizing Your Brand's Impact On Reddit
From Subreddits To Search: Maximizing Your Brand's Impact On Reddit
 
Evaluating the Effectiveness of Women-Focused Marketing
Evaluating the Effectiveness of Women-Focused MarketingEvaluating the Effectiveness of Women-Focused Marketing
Evaluating the Effectiveness of Women-Focused Marketing
 
Global Growth Starts With Translation - How To Unlock Global Markets - Tim Kirby
Global Growth Starts With Translation - How To Unlock Global Markets - Tim KirbyGlobal Growth Starts With Translation - How To Unlock Global Markets - Tim Kirby
Global Growth Starts With Translation - How To Unlock Global Markets - Tim Kirby
 
PickUp_conversational AI_Capex, Inc._20240610
PickUp_conversational AI_Capex, Inc._20240610PickUp_conversational AI_Capex, Inc._20240610
PickUp_conversational AI_Capex, Inc._20240610
 
INTRODUCTION TO SEARCH ENGINE OPTIMIZATION (SEO).pptx
INTRODUCTION TO SEARCH ENGINE OPTIMIZATION (SEO).pptxINTRODUCTION TO SEARCH ENGINE OPTIMIZATION (SEO).pptx
INTRODUCTION TO SEARCH ENGINE OPTIMIZATION (SEO).pptx
 
AI Best Practices for Marketing HUG June 2024
AI Best Practices for Marketing HUG June 2024AI Best Practices for Marketing HUG June 2024
AI Best Practices for Marketing HUG June 2024
 
Unleash the Power of Storytelling - Win Hearts, Change Minds, Get Results - R...
Unleash the Power of Storytelling - Win Hearts, Change Minds, Get Results - R...Unleash the Power of Storytelling - Win Hearts, Change Minds, Get Results - R...
Unleash the Power of Storytelling - Win Hearts, Change Minds, Get Results - R...
 
Boost Your Instagram Views Instantly Proven Free Strategies.
Boost Your Instagram Views Instantly Proven Free Strategies.Boost Your Instagram Views Instantly Proven Free Strategies.
Boost Your Instagram Views Instantly Proven Free Strategies.
 
Influencer Marketing Master Class - Alexis Andreasik
Influencer Marketing Master Class - Alexis AndreasikInfluencer Marketing Master Class - Alexis Andreasik
Influencer Marketing Master Class - Alexis Andreasik
 
SEO in the AI Era - Trust, Quality and Content Discovery - Andy Crestodina
SEO in the AI Era - Trust, Quality and Content Discovery - Andy CrestodinaSEO in the AI Era - Trust, Quality and Content Discovery - Andy Crestodina
SEO in the AI Era - Trust, Quality and Content Discovery - Andy Crestodina
 

Example Finance Breakdown

  • 1. Abbie’s Bevies Finance Breakdown By Zoe Baskett, Rob Noble, Sarah Kirkby, Michael Fabiyi & Tim Bedford-Bain
  • 2. What is Abbie’s Bevies and why is the investment needed? • Online supplier of hot beverages and machinery • USP through levels of customer service • Aim to maximise the efficiency of the product enabling a premium price • Partners with an established coffee brand • Looking for £30,000 at the rate of 3.4% • To expand and grow the company • Currently unable to take advantage of the market potential • Investment will allow the to improve economies of scale and relationships with suppliers
  • 3. The business environment S.W.O.T Analysis • Strengths- USP of after sales support • Weaknesses- Cost of staff training & USP is easily mimicked • Opportunities- Leaders in free after care:- gain large customer base • Threats- Large chains (Starbucks/Costa) already have after care support (Starbucks.,2013) P.E.S.T Analysis • Political- Tax on take away hot drinks (Customs, 2012). Fair trade coffee • Economical- Fair trade coffee (anon.,2010) • Social- Growing popularity for social coffees (anon.,2010) • Technological- 3 different types of coffee machines. Can be overly complicated leaving high service charges.(anon.,2012)
  • 4. The finances ! • Fixed assets – Much more reliable, but as the fixed assets are lower than the liabilities by £84,974, it will mean that her assets are not enough to pay off her liabilities. • Current assets – Not reliable source, changes a lot so it fluctuates so therefore we could not use that as a reliable source. • Loan repayments – As the business still has loan repayments of £52,207 the business will be using our loan to pay off other existing loans.
  • 5. Should we invest in Abbie's Bevies? • Pro's • She and her team have a lot of experience within the industry. • Satisfied other banks with their loan repayments. • Organised and planned future. The company know what they are going to do with the loan. • The company makes a profit • Con's • A lot of competition • Already owes money back to other lenders • Has already acquired debt in the past • USP is not original enough. • Long running business with low profit
  • 6. Why did we say no? • Reason for the refusal -Their fixed costs are too high • The business will be paying out other loan payments while still trying to pay us (investors) £903.33 each month. • The amount of fixed cost the business faces makes it hard to believe that they'll increase their profit margin in the next 2/3years. • Operating in a competitive market with a weak USP. • Business has broken even & made a profit for the past 2 years, however, their profit margin is small and has declined by £3,176 since the year 2011.
  • 7. References ! • Bibliography • Anon, 2012. Coffee to go. 18(5), pp. 50-51. • Anon, 2010. Passion for Coffee. [Online] Available at: http://www.passionforcoffee.com/types/fair-trade/ [Accessed 16 April 2013]. • Anon, 2010. Passion for Coffee. [Online] Available at: http://www.passionforcoffee.com/background/overview/ [Accessed 16 April 2013]. • Customs, H. R. a., 2012. HM Revenue and Customs. [Online] Available at: http://www.passionforcoffee.com/background/overview/ [Accessed 16 April 2013]. • Starbucks, 2013. Starbucks. [Online] Available at: http://starbucks.co.uk/about-us [Accessed 17 April 2013].