Acc3Afa Financial Accounting: Business Plan Assessment Answers

Answer:

Background Of Business

Description of business

Shine café will be built upon the success stories of various Australian casual dining and coffeehouses venues. The Café will have its store near the Hyde Park Sydney and will provide accessible and affordable coffee and burgers, especially chicken avocado sandwich and southern burgers. The Café aims to establish itself as a ‘destination’ of choice to many residents that live near Hyde Park as well as for numerous out of town visitors.

Business Strategy

Format of Shine Café will be simple as it will have lounge type layout with a stage for entertainment. There will be tables for people to sit inside as well as outside of café. Branding will be done by promoting a café that is affordable, fun and provides amazing burgers. The café will of coffee with different flavors which are never served before and also different types of burgers with the specialty in chicken avocado sandwich and southern burgers. Target segment of the café will be youth, foreign tourists and non vegetarian connoisseurs who seek great coffee and burgers. Company expects to have at least 200-150 footprints per day initially due to its prime location.

Financials Needs

Amount of Funding

Total funding required for the café will be Australian $170,000 in terms of start up expenses and long terms assets. These funds will be required within 6 months so that work can be started as soon as possible.

Figure 1: Finances Required

Reason to take funding

Funding is required initially to set up the café and to purchase the assets so that business can be started. With the help of funding, employees can be selected and also the rent can paid so that initially customers start coming and revenues can be generated.

Funding Sources

Total funding required for the startup is $170,000 and out of that $70,000 will be covered by founders with their savings and rest $100,000 will be taken from NBA classic bank for the period of 3 years at the interest rate of 8% pa.

Implementation Timetable

Concluding Statement

The business plan presented for the café shine provides each and every detail regarding the way in which it will start. It provides details regarding finances required and the main offerings and targeted customers. Terms of loan that will be taken with interest rates and all the activities that will be carried out in 12 months are also described in proper format.

Marketing activities needed, operations required and overall ideas and goals are described in details which provide the way in which café shine will conduct its business. All the information that is provided is true and the business will be conducted in same manner.

However, there might be some additional funds required due to change in market economies like increases in taxes by government, purchase of new machinery to manage operations, etc. as these outcomes cannot be predicted. Other than that everything will be followed and café will be taken to new heights.

References

Barringer, B., 2012. Entrepreneurship: Successfully Launching New Ventures, (2012).

Blank, S., 2013. Why the lean start-up changes everything. Harvard business review. 91(5). pp.63-72.

Finch, B., 2016. How to write a business plan. Kogan Page Publishers.

McKeever, M., 2016. How to write a business plan. Nolo.

Wacholder, S., 2013. From differences in means between cases and controls to risk stratification: a business plan for biomarker development. Cancer discovery. 3(2). pp.148-157.

Zeller, M., 2013. The role of cooperative business models for the success of smallholder coffee certification in Nicaragua: A comparison of conventional, organic and Organic-Fairtrade certified cooperatives. Renewable Agriculture and Food Systems. 28(3). pp.195-211.