SITXFIN004 Prepare and monitor budgets Assessment 1 – Budget Report • Type your report on the space provided below. Use Times New Roman and font size 12. Minimum of 500 words. CoffeeVille Business name: CoffeeVille Pty Ltd Trading name(s): CoffeeVille Pty Ltd Date registered: 1 July 2009 Location registered: Victoria Business structure: Partnership ABN: 3000000000 GST: Registered for GST on 1 July 2009 Domain names: coffeeville.com.au Design: bright and functional. Size: 90 m2. Employees: 5 to 8 full time plus casuals. Seating: 15 customers. Types of transactions: 70% takeaway; 15% sit down; 15% catering. During three years, is a provider of gourmet coffee and food for Melbournians, across CBD. Rufus and Emma accomplish that CoffeeVille provide a high quality, fair trade coffee, superior hot and cold gourmet food and beverages, consistently high level of service that is expert and knowledgeable, fast and friendly. We can find three target markets: individual takeaway; individual sit-down; business catering. CoffeeVille is owned and managed by partners Emma and Rufus Belcastran. Rufus Belcastran has an MBA from the University of Melbourne and 15 years’ experience in financial management and operating various small businesses, including cafes. Emma Belcastran has a Diploma of Marketing from Swinburne TAFE and 13 years’ experience in customer service, sales and marketing. SITXFIN004 – Assessment Booklet –Student copy Version 4.20 Copyright Pax Institute CRICOS No. 03152D RTO No. 22207 Page 1 SITXFIN004 Prepare and monitor budgets Scope refers to the combined objectives and requirements needed to complete a project. Properly defining the scope of a project allows managers to estimate costs and the time required to finish the project, for save both time and money. Creating a business budget is very important if you want a successful business. A budget keeps your finances under control so that you do not overspend and place your business in debt. Debt can be hard to get rid of, especially if you do not generate the cash flow to get out of debt quickly. There are also many other reasons why your business needs a budget, which includes: - Minimize unexpected cash flow issues Control spending Better informed decisions in other departments Assists with financing applications Informs financial targets for department leaders Reduces risk In a budget we need to include Fixed costs (rent, utilities, phone/ Internet, accountant, legal fees, technology, salaries, advertising & marketing), Variable costs (costs of goods sold and labor costs/ commissions, etc), income and expenditures, profit, Budgeting is a great way of giving yourself as much financial freedom as possible in the future, as well as improving your financial situation in the present. Strengths 1. The coffee shop is well located, easy to get customers 2. The shop offers a better quality in service than their competitors 3. All the staff is skilled in coffee and food preparation Weaknesses 1. It doesn’t have space for an expansion. 2. Comparing with the competitors is more price because they offer organic food and coffee 3. A limited marketing budget to develop brand awareness. Opportunities 1. Strong market potential 2. They can open for Saturday and Sundays, or dinner 3. They can have a business relationship with a company so the shop can provide a catering service SITXFIN004 – Assessment Booklet –Student copy Version 4.20 Copyright Pax Institute CRICOS No. 03152D RTO No. 22207 Page 2 SITXFIN004 Prepare and monitor budgets Threats 1. The competitors are close and there are potential of new shops to open too 2. Coronavirus 3. It is hard to find experience and skills employees The Coffeeville ‘s budget can be affected with the appearance of internal factors, that can impact on it for the next 12 months. - Some staff are stealing some products or even money. There is an increase on the rent Your supplier increases their prices The shop is losing customers because of a bad costumer service There is not a proper stock control. It is important at the moment of budget planning to communicate with your staff, they can contribute with new ideas. We will conduct meetings for FoH and BoH (face to face or via zoom), they can send an email to coffe@ville.com.au, a brainstorming, “opinion” box (can be anonymous), through messages via WhatsApp. For monitoring and measure the budget will be use EXCEL charts. Example: SITXFIN004 – Assessment Booklet –Student copy Version 4.20 Copyright Pax Institute CRICOS No. 03152D RTO No. 22207 Page 3 SITXFIN004 Prepare and monitor budgets During the year we will evaluate how our budget is going through invoices but you should track your spending throughout the month in a budget spreadsheet or software such as XERO. With your budget and your expense tracking in front of you, assess whether you overspent, underspent, or stayed on budget for the month. Another way is comparing your budget to actuals for budget monitoring, but it should be expanded to include how the organization is performing related to service delivery and other programs/initiatives. Every time there is a deviation away from our budget we need to notified to our boss or who ever is abode us. If you are the owner, you should notify this to your staff through meetings We need to be aware of the budget, if needs a change we can make it quickly before the business lose. Sometimes the budget for maintenance of equipment is less than you exceptive, you need to change the budget according of what is happening in your business. Some times the budget doesn’t need to be change, the problem can be fix by talking with your staff, re training them, let them know about the problem. SITXFIN004 – Assessment Booklet –Student copy Version 4.20 Copyright Pax Institute CRICOS No. 03152D RTO No. 22207 Page 4
