Joe’s Coffee Shop
Presented to:
Business plans Issue Date:
January 24th, 2015
Student Name (Name of CEO)
Submission Date:
This Business plan enclosed with confidential and proprietary information. By no means does
this business plan entail an offering of securities.
1
Table of Content
Sr No
Topic
1
Proposal
4
2
Executive Summary
4
2
Mission Statement
4
3
Vision Statement
6
4
Industry Profile
7
5
Company Name
7
6
Company Profile
7
7
Goals
8
8
Business Strategy
8
9
Description of Product and Services
9
10
Venture of Product and Services
9
11
Location and Layout
10
12
Competitor Analysis
11
13
Description of Management Team
11
14
Creation of Financial Statement
12
15
General Expenses
12
16
Expected Cash Flow
13
17
Break Even Analysis
13
18
Profit and Loss
14
19
Creation of Balance Sheet
14
2
20
Loan or Investment proposal
15
22
Personal financial statement
26
23
Business financial statement
27
24
Marketing Strategy
27
25
Conclusion
28
26
Recommendations
29
27
References
30
21
3
Proposed Small business Plan of a coffee shop
I got a chance to do any kind of business, I select to do a coffee shop because coffee is my
passion. It’s much expensive and more beneficent for us. If we start a coffee shop we need lots of
pre work and then we can start it. We also have used some resources for starting point of new
business. We follow many steps to get our required outcome. (Berry., 1996-2013)
Firstly, we need a business plan on which our coffee shop exists. For getting a successful coffee
shop we need to know about some knowledge about extensive experience, hard work and
combination of skills. For a successful coffee shop we need to follow basic steps to make it a
successful business. (Baskerville., 2012)
Here I will try to cover the organization proposed small business mission and vision statement.
Mission statement:
The company’s mission statement is essential for the foundation of the company. It has a major
purpose to serve a guideline to the all decision making process of the company with potential and
progressive manners. While the role of shareholders, leaders and employees all are spending
their workplace or professional life surrounded by the target of the mission statement. At the
same time it helps the workers in decisions and takes orientation that is necessary and best
aligned with the mission of the company. A mission statement gives the organization an insight
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to all company leaders, which is the primary purpose of business (Carpenter, Baue, & Erdogan,
2014).
This company’s mission statement consist of
“to provide the friendly, pleasant, peaceful and comfortable environment where every coffee
lover can receive best quality food, coffee, beverages with excellent customer services,
entertainment at a reasonable price.”
While the other companies have based on a profit motivated mission that needs to make
customers’ main point. A mission statement has been related to the organizational strategy that
provides a step by step process for the development of the company’s objectives, company’s
strategies and acquire to the mission of the organization. The company has objectives that may
include market share, targets, profit, revenue prospective and organizational goals and customer
satisfaction. On the other hand it develops short business strategies to accomplish with the
objectives of the organzaiotn. Furthermore, mission statement provides the ways for training,
monitoring and feedback respective to deal with organizational strategies. It is essential to
achieve higher company’s image with reliable customer trust and satisfaction factors
(Kokemuller, 2015).
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Executive Summary
The execution strategy of Joe’s coffee shop will infiltrate the commuter and captive consumer by
the help of various means, including Drive-Thrus facilities, Mobile Cafes, and availability of its
other outlets in easy and convenient accessible locations. The drive-thru has been designed to
handle the two way traffic and dispense their loyal customers with special coffee cups and other
major beverages. This service will take less time than any other café due to our well trained staff.
This coffee shop is busy in most of times and every consumer is also very busy, this mobile
service of joe’s coffee house provides those customers with refreshing and high quality
beverages and coffee with most aromatic and enchanting flavors. Furthermore to provide the
quality products the company has an extensive menu consist of delicious items. These food and
beverage items ensure the customer awareness and loyalty and leave a positive impact on public
and marketing strategy of the company.
Vision Statement:
While vision statement works with the incorporation of mission statement. It confused with it
and offer more of a direction to include a comparative values perspective. Vision provides a
straight direction to the company for the next five or ten years. On the contrary, it is based on the
commitment to integrity, transparency and openness values of the company. Vision statement
indicates and adds the elements of human based values those inspires the employees to target the
sense of purpose (Kokemuller, 2015).
Vision statement of this coffee shop is based on some elements mentioned below:
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
To establish a well known and most trusted as well as a perfect coffee house for coffee
lovers

To be the strong leader in the coffee industry with new innovation, services and perfect
quality.

To perform as the best coffee provider company in coffee industry.
Normally the small companies includes product, customers and invest in the mission statement
of the company. It is very effective and conveys the intensions to deliver desired results for hot
all entities of the company. Vision statement provides more details about key values of the
company’s values, and creates a difference in the lives of people. In fact vision statement works
as the helping hand of the mission statement with high priority and profitability of the company.
It is desired towards the success of the company in a state, country and globally (Kokemuller,
2015).
Mission and vision statement provides a tool for the best way of communicating with the
company’s core purpose and values for all its stakeholders. It leaves a great impact on the
company’s current and future success. These statements work widely to circulate with the
meaning to understand and share the company’s strategic implementation (Scarborough, 2015).
Company and industry profile:
This coffee company has been based on five years old and it grow fast manners because in the
short time span the company grows, its trends, finance, economic and competitive strengths.
Now the company has the ability to gain the economic strength, with the help to adopt seasonal
trends of the company. The coffee shop has a short growth and life plan, but it grows and
develops more than any other company.
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Company Name:
I though that my coffee shop name should be very appealing and attract customers with its name.
In my view I suggest the name of my coffee shop is “Joe’s Coffee Shop”.
Company profile:
My coffee shop will offer varieties of choices to customers with a pleasant restaurant
environment. This coffee shop will offer all kinds of coffee and tea with some most effective and
energizing food products. There will a large range of coffee choices, including espresso, latte,
regular flavor, raspberry, mocha, hot chocolate, cocoa, vanilla, etc. at the same time there is a
range of teas with almost 25 flavors at a time in the coffee restaurant. We will offer various other
beverages and non alcoholic beverages in this restaurant. The breakfast menu will have some key
features croissants, muffins, bagels, donuts, French pastries, etc. this coffee shop will also deal
with lunch and dinner with many fast food meals including sandwiches, salads and various kinds
of soups. While in the summers we will offer a variety of cold products as per customer needs
with some weather effective appetizers such as stuffed, mushrooms, mini loaves of bread, garlic
bread, green chili, etc. on the other side, we will offer desserts to other customers that is consist
of cheesecakes, pastries, pies, fresh fruit and some fat free and sugar free products. This coffee
shop has been divided into different areas that will serve its customers with different activities
such as discussion or conference room, music parties, playing board games and reading area. The
key aspect of this coffee shop is to provide its customers a comfortable atmosphere with clam,
and attractions of coffee, teas, beverages and many other kinds of foods.
Goals:
The coffee shop changed by the time as per customer demands, needs and environmental needs
as well as to cope with seasonal trends. The company is trying to deal and leads with the help of
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mission and vision statement of the company so they can grow more and more. In fact, this
coffee shop creates own new challenges to cope and survive for the company in this most
competitive business industry.
Objectives:
This coffee shop has very strong and flexible objectives for the growth of the company because
coffee shop management always trying to improve its internal and taste related aspects greatly
for the company’s growth faster than others. Coffee boosts individual energy towards full of
sparks personal and professional life without any tiredness. There are almost more than 100
flavors of coffee that has been offered by this coffee shop that fascinate and increase the
customers with strong relation to the company.
Business strategy:
The business strategy of the coffee shop is based on the company’s goals and objectives because
the coffee shop needs to lead with the edge in the market.
Description of Product and Services:
The coffee house will emphasis on company marketing strategy that give focus to attract
new customers and retain the existing customers in the coffee house. The key paramount is to
establish loyal customers and provide them with lots of deals, and low price products without
compromising of test and product quality. The purpose of the company is to perfectly brew
coffee with pleasant environment on as per customer need setting arrangements, such as chairs,
high chairs, sofas etc. the lighting arrangements are very soothing and relaxing with light and
enchanting music that help customer to relax from their daily life stresses, pressures and
uncomfortable life. The sales strategy of the company is to speed up customer service with
pleasant employees behavior and customer friendly environment. At the same time the sales data
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will fully computerized so it can be analyzed for marketing purpose in future. It utilizes the
customers cross promotions with other coffee related businesses in the community.
To confirm and elaborate the product and services by the use of transforming coffee shop
features and its benefits. It is mentioned in the table below:
Product features
Product benefits
The company serves the best and healthy food
It effect positive on the company’s growth and
items to customers
development
Coffee shop has some attracting products such
It is the benefit for the company’s market
as healthy snacks, lunch and dinner option
image and its impact on the organizational
consist of energy and nutritive items
development.
The customer service is based on friendly and
It's effect on company’s internal and external
pleasant for their loyal customers
aspects positively.
Marketing Strategy:
The Joe’s Coffee House’s marketing strategy leads to the customer value and company’s
targeted segments. There are numerous methods those are used by the management to make the
potential marketing strategy and its implementation. First is the way to advertise their product
with appealing manners. The major places those are used by us for advertising based on our
surroundings in the form of hooding and Weekly magazines. It is the major source of the
advertisement used by the company for last 5 years primarily. Secondly the marketing strategy of
that coffee house is to make strategic relationships with other related industry so they can
understand the similar customer demographics. Thirdly the company used the “grass-roots”
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Marketing strategy to promote their products. This marketing strategy facilitates customers with
coupons for their friends and loved ones to take them to try first time. These coupons work as the
token money and help to grab new customers with the strategic relationship with them. It is
mutually beneficial for both customers and the company because this marketing strategy is very
economical so it did not harm the company’s profit and useful to grab new customers.
Marketing Objectives of Joe’s coffee House:
 The leading marketing objective is to aware customers with their most testy and
enchanting products that help customers to become relaxed and enjoy their taste and
coffee house environment
 Develop an increase sales and achieve their targeted number of new customers at the
same time decrease the marketing expenses
 Offer an awareness structure conversation system that provide them with new products
and help them to meet new people.
Location and Layout:
It is the most complex and difficult task to find out the appropriate location and layout of the
coffee shop. First, it is necessary to give importance to the most functional and efficient floor
plan foe the business of the coffee shop. It helps to open on time and stay on budget elements. In
fact, this coffee shop deals with food service with beverages, it acquires to ensure the equipment
those supporting the menu and the major concept of the coffee shop. I choose 4057 street
Lexington for this coffee shop. In my view, it is appropriate for my coffee shop and will leave a
positive impact on its profitability.
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In other words I can say that I have to take care the mission and vision statement and implement
its every aspect in the location and layout of the coffee shop. When I select the location that the
surroundings needs key consideration because those are the immediate people who inspired by
this new venture. While the weather and the necessity of the coffee shop in this area has been
verified first so in future it will not effect on the company’s economical condition badly. The
location should be appropriate and essential for the coffee lovers while at the same time food
lovers who needs to try new and different food products. A survey will be the useful tool to find
out the interest of surrounding people and to finalize the coffee shop location. While the impact
of layout of the coffee shop is good for everyone. Because the coffee shop team needs space
while they are working in peak hours, on the other side customers needs supplanted atmosphere
without any hassle, noise, and odor.
While all décor of the coffee shop is customer loving and easy to handle from one place to
another. While the functionality of the coffee shop is different to the food service provider. It is
necessary to easily change and manage both coffee and fast food items those are the part of the
menu.
Competitor analysis:
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The competitor analysis process provides the coffee shop an opportunity to describe major
competitors in terms of those factors leaves great influence on the coffee shop overall revenues.
It has been covered the competitor company size, market shares, product quality, growth
perspectives, capital and related resources, company image, marketing strategy, target market
and other essential aspects those are considered important for the coffee shop.
For the competitive analysis the best resources to find the company’s information is publications,
media coverage, financial community, and companies own marketing materials and websites. All
these resources are necessary to identify the performance of each competitor. There are many
situations those are limited in situations.
My coffee shop is a small business organization and it has faced the competitive business
environment from the most well known coffee house Starbucks because most of the customers
like and fascinate by its coffee, aroma, flavors and many other services. while Dunkin Donuts is
the other that compete the coffee industry a lot because they serve more reliable, testy and
enchanting products to their loyal customers with friendly customer service. There are various
other smaller companies including Oren’s Caribou, and Peet’s are grow fast and continue
manners because these companies expend business and target the middle class market with their
technological and fast ways to serve products. Recently the financial reports of coffee industry
shows that 80% coffee customer has been taken coffee from starbucks which is the intense
condition for small coffee houses. It is necessary to my coffee shop to offer most testy,
interesting and innovative offers with the friendly customer service. It will effect on company’s
profitability and will help to grow faster. The company can compete with its competitors by two
ways.
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
Product

Venue
These both aspects consider at the high competition from its competitors, but Starbucks
continues improvement in its stores, quality product and services cannot beat by anyone till to
date. Coffee houses give major competition because they serve low price coffee to customers,
but the company finds out the way how to combat this situation with the help of some most
innovative business strategies.
Venture of Product and Services:
On this step of the business plan, we will describe the two major aspects of this this business
plan one is the product or service and the other is the most essential location and layout. It is very
important to consider the new and innovative ideas when the coffee shop wants to put this new
idea and implement within the organization. Such as when the coffee shop decides that the need
to put some new food items or coffee taste in their product pocket it is necessary to take care of
all aspects of this new product, its cost, profitability and impact on the company’s market image
as well as customer’s demand. At the same time some the company need technology based
services in the coffee shop. These aspects will effect on new deliverables and those who built the
similar products in the past.
The key consideration of business plan will be taken care of every problem investors track
records that leads to success. This business plan provides the strongest and feasible thought to
gain the trust and care of customers' demands. Every customer wants change in any way. The
coffee house maintained this most difficult task and always think about it. At the same time it is
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very risky and challenging, but it becomes the strength of the company and its overall business
image in a competitive market.
The coffee shop offers its customers free WiFi in very soothing and calm environment. It may
lead to the perfection of product and services as well. While if customers' demands and show
their interest to buy the similar product that offer by others, then they wish to buy clearly
improved version of the product. This coffee shop management thinks like that and give keen
consideration to their customers changing needs and requirements from them.
Description of Management team:
This coffee shop business structure is a pyramid style because the owners putting responsibilities
to the employees as per need. It is a small organization that has two individuals who share
management and supervisory responsibilities equally.
Position
Salary
General Manager
$39,900
Chef
$30,000
Manager
$28,000
Sous-chef/Line Cook
$23,000
Assistant Mgr/Senior Server
$14,560 + Tips
Barristas/Bartenders
$10/Hour
15
Servers
$8/Hour + Tips
Dishwashers/Bussers
$10/Hour
They deal with both shifts with appropriate dividing of work. In other staff the company has
almost 15 boys and girls who serve customers on different plate forms. The staff is very
cooperative and friendly with their customers.
Financial Objectives:
 Double digit growth rate for each year minimum
 At the same time to work for the reduction of variables with the help of cost cutting
through efficiency gains
 At least touch the profitability of first year minimum
It is the premier place for young professionals, especially; singles who want to meet others and
for those who wish to make them relax. It is the only place in this area that serves its customers
with soothing, relaxing environment with convenient and full of energy food and beverages. The
first rule of marketing strategy is to create the awareness about services, products and develop
stronger customer foundation that work for the growth and development of customer loyalty and
referrals.
The company establishes a strategic relationship with companies so they get awareness about
similar customers and their key needs related to coffee house specifically.
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Marketing Mix:
It is the most useful and influential tool for the marketing prospective of Joe’s coffee house
because it leads the major approaches about pricing, distribution, advertising and promotion with
appropriate customer services.
Pricing: the price of all products is less than other market rates and serve customers with more
standard and quality products
Distribution: all services and products have been distributed by the Joe’s coffee house own
predictions and decisions.
Advertising and Promotions: the most successful marketing strategy of Joe’s coffee house is
the weekly magazines and holdings.
Customer Service: the company majorly works for the customer attention and the marketing
strategy, attract those customers with their products and told them about the taste and quality of
products by different means. At the time when the company’s faced the down fall in short term
profit while on the other side, the company become more strength and become able to get long
term profitability.
Creation of financial statement:
Financial statement provides an outline of all financial operations of the company it is
related to two common financial statements one is income statement and the other is the balance
sheet. The role of the income statement to check the all income streams of the company and
other related expenses, on the other side balance statement provides a detail assents and other
liabilities of the business.
17
The income statement creation based on some steps mentioned below:
1. On first step it identifies the income statement aspects on the ledger. This ledger covers
income and expense accounts of the company
2. Secondly, it is necessary to create the spreadsheet with the help of any software or by the
help of manual financial statement
3. Thirdly, make a list of all types of income and enter its accurate amount income, record
all data in the general ledger with the income type description.
4. Fourthly create the income section of the statement
5. Fifthly make a list of all company’s expenses with total amount.
These steps follow the income statement making process and provide me the accurate
income statement of the coffee house. It is the best way to take a look of all expenses of the
company just by a single glimpse.
General expenses:
This is the one month plan of all general expenses of Joe’s coffee shop mentioned here:
Current Interest Rate
10.00%
Tax Rates
25.50%
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Long term Interest
10.00%
Expected of Cash Flow:
The Joe’s coffee shop is the company that maintains cash flow position and will allow the coffee
shop to debt services and necessary to utilize the funds in nearest future development of the
company.
Chart of cash Flow
Year 1
Year 2
Total received cash
Cash sales
$580, 000
$600, 400
$700,770
Cash from Operations
$580, 000
$600, 400
$700,770
Sales, VAT, GST, received
$0
$0
$0
Current Loans
$0
$0
$0
Additional Received cash
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Coffee Shop Liabilities
$0
$0
$0
Sales of Assets
$0
$0
$0
Received Cash
$580, 000
$600, 400
$700,770
Expenditures:
There are all expenses of the coffee shop that has to bear by the management of the company
Expenses
Operational Expenses
Cash Spending
$124,600
$143,800
$155,144
Bills
$327,865
$388,715
$420,945
Subtotal of Operations $452,465
$532,515
$576,089
Break Even Analysis:
The Coffee Shop has the average monthly fixed costs of almost $20,300 in one financial
year. It indicates the average margin of 65%, on the other side the break even sales are round
about $31,300 in a month. While the company needs to generate the sales volume from the setup
Monthly Revenue break even
$31,247
Average cost
35%
Fixed monthly cost
$20,311
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Profit and Loss:
The company’s annual assumed sales are $548,000 in a year. The company establishes
the local market, which is very useful for increment of a company’s profitability from 17.663 %
in a year. The below mentioned table give the appropriate outline of profit, loss statement of the
Joe’s Coffee Shop.
Pro Forma Profit and Loss
Year 1
Year 2
Year 3
Sales
$584,000
$642,400
$706,640
Direct Cost of Sales
$204,400
$224,840
$247,324
Other
$0
$0
$0
Total Cost of Sales
$204,400
$224,840
$247,324
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Gross Margin
$379,600
$417,560
$459,316
Gross Margin %
65.00%
65.00%
65.00%
Payroll
$124,600
$143,800
$155,144
Sales and Marketing and
$25,800
$27,600
$31,000
Depreciation
$5,400
$5,500
$5,500
Rent
$48,400
$52,800
$52,800
Rent
$6,000
$6,000
$6,000
Maintenance
$5,840
$6,424
$7,066
Utilities/Phone
$9,000
$9,500
$10,000
Payroll Taxes
$18,690
$21,570
$23,272
Other
$0
$0
$0
Total Operating Expenses
$243,730
$273,194
$290,782
Profit Before Interest and
$135,870
$144,366
$168,534
Expenses
Other Expenses
Taxes
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EBITDA
$141,270
$149,866
$174,034
Interest Expense
$2,821
$2,326
$1,618
Taxes Incurred
$33,740
$35,510
$42,424
Net Profit
$99,308
$106,530
$124,491
Net Profit/Sales
17.00%
16.58%
17.62%
Creation of a Balance Sheet:
Balance sheet follows some steps for the creation of it. It is essential for the organization
financial planning.
On the first step of balance sheet creation, all asset accounts, bank accounts, receivable
and fixed assets have been combined
On the second step spread sheet document used to identify the data to gathering
information
On the third step list based on key description of all kinds of documents those entering
the amount of entering balance, general ledger and asset descriptions in detail.
On the fourth step to utilize the total asset of balances those are necessary to make the
right balance sheet.
23
On fifth steps another list that describes the liability of each account and enters the
balance.
On sixth steps the entry of ending amount for all organization liabilities necessary to do
On the seventh step the total liabilities and equity accounts has been combined.
The Joe’s coffee shop net worth has been increased $212, 000 in a year approximately.
Year 1
Assets
Current Assets
Cash
$195,358
Inventory
$21,175
Other Current Assets
$0
Total Current Assets
$216,533
Long-term Assets
Long-term Assets
$59,170
Accumulated Depreciation
$5,400
Total Long-term Assets
$53,770
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Total Assets
$270,303
Liabilities and Capital
Year 1
Current Liabilities
Accounts Payable
$31,974
Current Borrowing
$6,700
Other Current Liabilities
$0
Subtotal Current Liabilities
$38,674
Long-term Liabilities
$20,000
Total Liabilities
$58,674
Paid-in Capital
$140,000
Retained Earnings
($27,680)
Earnings
$99,308
Total Capital
$211,628
Total Liabilities and Capital
$270,303
Net Worth
$211,628
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Loan or Investment proposal:
It is necessary to determine the ability to repay the loans or investment perspectives those
are effect on personal and business creditors. It has essential for the making of a loan or
investment proposal to address the below mentioned things clearly
The estimated amount you need for the company
There are many ways to utilize those amounts, but those should be validated for the most
important aspects of the business
The company will make the strategy to repay or return the loan or investment amount.
In case the company do not able to repay the amount of time than their company should
be aware the alternative necessary aspects those will use for this purpose.
The loan and investment proposal will follow the essential aspects those must be the part
of proposal mentioned here precisely
Loan Request:
In the loan request the exact amount that I need for the coffee shop and the ways to
determine this amount will be discussed. It will cover all the essential aspects such as the
equipments, building cost and other aspects those are based on the need of loan
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Loan Payment:
At the stage I will discuss all terms and condition those are related with the loan amount,
its interest rates, time of loan repay etc. at the same time I will also discuss the risk assessment
perspectives about the loan amount particularly.
Personal financial statement:
I will have to provide the all owners personal financial statements with 20 % more
interest in the business. This statement will be consisting of more than 90 days. While I will have
to read the tax returns of the last three years because there are some lenders who demand this
also.
Business financial statement:
I will provide the business financial statement, including income statement and balance
statement.
Other Assistance:
Loan or investment proposal will start with the sound investment and generate proper
repay polices. It is necessary to plan and prepare with essential documentation before receiving
the financing from lenders.
Conclusion:
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At last it is necessary to find out what the profits the coffee shop earn by the
implementation of this business plan. The business plan is the pioneer of the coffee house and it
leads me to grow and develop the joe’s coffee shop with progressive ways those leads to success.
In fact, it provides an appropriate picture that helps me to improve and implement on my coffee
shop to boost up the business towards the sky. It provides me the ways to take initials for my
business and how to cope with them in the time of crisis. It helps to manage company’s product
price and necessary price changing aspects so the company can get more success with the most
important customer trust on taste. It is necessary to spend long hours in my coffee shop and hard
work is the key to success my dream project or business of coffee shop. At the same time careful
planning will the only way that helps my company to survive in this most competitive business
environment. I tried to do care full planning and its implementation in the organization.
Recommendations:
I have some future planning those are mentioned here in recommendations
 The company will survive with new marketing strategies those will work in favor of the
coffee house.
 I will try to introduce new products in product bucket so the customer can find more
options as per his taste.

My coffee shop will compete soon with well known coffee brands due to its unique and
aromatic concept and aspects.
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