PHARMA COLLAGE
GROUP MEMBER
ID/Number
Submitted to: - Mr. Alemayehu. H
1
START-UP BUSINESS PLAN
Name of the business: CHEERS COFFEE
Name of owner(s): Share Company
Phone number:
Email: cheerscoffee@gmail.com
Address:
1. Executive Summary.
2
Cheers, Coffee Share Company is committed to delivering high-quality, diverse
coffees at fair prices while providing an inviting and unique space for customers.
Our offerings include a range of coffees such as Guji, Sidama, and Yirgachefe,
complemented by specialty drinks like cappuccinos and macchiatos. Notably, our
Buna Qello, a traditional Guji cultural coffee made with butter, adds a distinctive
touch to our menu. In addition to exceptional coffee, we provide valuable services
including book clubs, private meeting spaces, free internet, and a uniquely designed
ambiance.
Our target market encompasses government and non-government employees
seeking a comfortable work environment, students from nearby educational
institutions, city residents desiring relaxation and socialization, and tourists
exploring the downtown area. Cheers, Coffee Share Company fulfills the need for a
high-quality coffee experience paired with a cozy and functional setting.
Despite facing competition from established cafes like Sifen Café and Lula Café,
our strengths lie in our dedicated team and commitment to service excellence. We
are aware of challenges such as limited experience in the industry and potential
supply shortages but see opportunities in our small number of competitors and a
large customer base. Our marketing strategy leverages social media platforms, local
advertising, and a grand opening event, while our pricing strategy incorporates an
add-on approach to accommodate additional services.
With an annual revenue of 2,982,000 and a cost of 1,036,700, Cheers, Coffee Share
Company projects a significant profit of 1,945,300. The start-up cost totals 859,625,
positioning us well for a successful launch and sustainable growth.
2. Vision Statement
3
Cheers Coffee House aims to become a beloved destination renowned for its
exceptional coffee and inviting atmosphere. Our vision is to create a warm,
welcoming space where customers can enjoy high-quality coffee and experience
a unique, cozy vibe. We strive to build a community hub where people can relax,
socialize, and savor expertly crafted beverages.
By 2018, Cheers Coffee House plans to significantly expand its presence with
new branches within the city and beyond. Our goal is to establish Cheers Coffee
House as a leading brand recognized for its commitment to quality and
exceptional customer experience.
3. Company description
Business Name- Cheers Coffee
Location- Adola city
Owner (s)- Share Company
Members of the organization and roles.
Member
Role
1.
4. Service Description.
Our services include a variety of coffees like Guji, Sidama, and Yirgachefe. We
also offer cappuccinos and macchiatos. Additionally, we have a special Guji
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cultural coffee called Buna Qello, made with coffee and butter. We provide extra
services such as book clubs, private spaces, free internet, and a quiet place with
a unique interior design.
5. Customer Description.
Cheers, Coffee Share Company welcomes a variety of customers. This includes
government and non-government employees looking for a convenient place for
meetings and work, as well as students from nearby colleges and high schools.
City residents come to relax, socialize, and enjoy cultural coffee. Tourists and
visitors exploring the downtown area and wanting to experience local culture also
find our coffee shop inviting.
6. Need fulfilled by the service
Cheers Coffee Share Company fulfills several needs with its services. It offers
high-quality and diverse coffees at fair prices, providing a cozy and inviting space
for customers to relax, socialize, and work. The additional amenities like book
clubs, private spaces, free internet, and unique interior design make it an ideal
spot for both meetings and leisure. By offering cultural coffee experiences, it also
caters to those looking to explore local traditions.
7. Competitors.
5
Our company faces many competitors, including numerous coffee shops along the
walkways and larger cafes like Sifen Café, Lula Café, and ZT Café, all offering
coffee services.
8. Product or service strengths and weaknesses/market opportunities and
threats.
Strengths
Weaknesses
Sufficient number of human resources.
Lack of Experience in the area.
Service Excellence
Opportunities
Threats
The small number of competitors
Insufficient supplies of raw material
A large Number of Potential Customers
9. Sales and Marketing Methods
Advertising Method
We actively engage with customers and promote specials on TikTok, Instagram,
Facebook, Telegram, and WhatsApp. Locally, we use flyers, posters, and ads on
the radio. For promotions, we plan a grand opening event with free coffee
samples.
Purchasing Method
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We accept all payment methods, including cash, mobile banking, Telebirr, and
other digital banking options. Additionally, we offer delivery services for
customers who need them.
Pricing Strategy
We use cost-plus pricing, an add-on pricing strategy, where our prices are based
on the main service plus any additional services provided.
10. Financial Estimation
Annual Revenue
Month Product/Service
Per-Price
Quantity
Total monthly income
1
Cup of Coffee
30
(80*30) = 2,400
72,000
Macchiatos
50
(30*30) = 900
45,000
Buna Qello
100
(20*30) = 600
60,000
Cup of Coffee
30
(100*30) = 3,000
90,000
Macchiatos
50
(50*30) = 1,500
75,000
Buna Qello
100
(30*30) = 900
90,000
Cup of Coffee
30
(100*30) = 3,000
90,000
Macchiatos
50
(50*30) = 1,500
75,000
Buna Qello
100
(30*30) = 900
90,000
Cup of Coffee
30
(100*30) = 3,000
90,000
Macchiatos
50
(50*30) = 1,500
75,000
2
3
4
7
5
6
7
8
9
10
11
12
Total
Buna Qello
100
(30*30) = 900
90,000
Cup of Coffee
30
(100*30) = 3,000
90,000
Macchiatos
50
(50*30) = 1,500
75,000
Buna Qello
100
(30*30) = 900
90,000
Cup of Coffee
30
(100*30) = 3,000
90,000
Macchiatos
50
(50*30) = 1,500
75,000
Buna Qello
100
(30*30) = 900
90,000
Cup of Coffee
30
(100*30) = 3,000
90,000
Macchiatos
50
(50*30) = 1,500
75,000
Buna Qello
100
(30*30) = 900
90,000
Cup of Coffee
30
(100*30) = 3,000
90,000
Macchiatos
50
(50*30) = 1,500
75,000
Buna Qello
100
(30*30) = 900
90,000
Cup of Coffee
30
(100*30) = 3,000
90,000
Macchiatos
50
(50*30) = 1,500
75,000
Buna Qello
100
(30*30) = 900
90,000
Cup of Coffee
30
(100*30) = 3,000
90,000
Macchiatos
50
(50*30) = 1,500
75,000
Buna Qello
100
(30*30) = 900
90,000
Cup of Coffee
30
(100*30) = 3,000
90,000
Macchiatos
50
(50*30) = 1,500
75,000
Buna Qello
100
(30*30) = 900
90,000
Cup of Coffee
30
(100*30) = 3,000
90,000
Macchiatos
50
(50*30) = 1,500
75,000
Buna Qello
100
(30*30) = 900
90,000
2,982,000
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11. Total Cost
Annual Cost
Cost
Price
Fixed Cost
Coffee Brewer Machine – 300,000/10 = 30,000
30,000
Coffee Roasting Machine – 30,000/10 = 3,000
3,000
Coffee Grinding Machine – 30,000/10 = 3,000
3,000
Furniture – 150,000/5 = 30,000
30,000
Interior Design – 50,000/5 = 10,000
10,000
Electronics – 60,000/10 = 6,000
6,000
License Expense – 1000
1000
Variable Cost
Operational Cost
Coffee – 2kg*30*12*400birr = 288,000
288,000
Milk – 3lt*30*12*60birr = 64,800
64,000
Sugar – 1kg*30*12*120birr = 43,200
43,200
Butter – 0.25kg*30*12*750birr = 67,500
67,500
Employee Salary Expense – 4 * 4000*12 = 192,000
192,000
Utilities – 2000*12 = 24,000
24,000
Advertisement Expense = 15,000 birr
15,000
Rent – 20,000 * 12 = 240,000
240,000
Other Expenses – 20,000
20,000
Total
1,036,700
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12. Start-up Cost
Total Price
Total cost per product (fixed cost)
Coffee Brewer Machine
300,000
Coffee Roasting Machine
30,000
Coffee Grinding Machine
30,000
Furniture
150,000
Interior Design
50,000
Electronics
60,000
License Expense
1000
Total Fixed Cost
621,000
Total Variable cost (Three Month Variable cost)
Coffee
72,000
Milk
16,200
Sugar
10,800
Butter
16,875
Employee Salary Expense
48,000
Utilities
6000
Advertisement Expense
3750
Rent
60,000
Other Expenses
5000
Total Variable cost
238,625
Grand Total
859,625
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13. Sales and Profit Estimation
Estimated Revenue: 2,982,000
Estimated Cost: 1,036,700
Estimated Profit: 1,945,300
14. Cash Flow
Month
Revenue
Cost
Revenue/ cost
(Balance)
September
177,000
86,391.67
90,608.33
October
255,000
86,391.67
168,608.33
November
255,000
86,391.67
168,608.33
December
255,000
86,391.67
168,608.33
January
255,000
86,391.67
168,608.33
February
255,000
86,391.67
168,608.33
March
255,000
86,391.67
168,608.33
April
255,000
86,391.67
168,608.33
May
255,000
86,391.67
168,608.33
June
255,000
86,391.67
168,608.33
July
255,000
86,391.67
168,608.33
August
255,000
86,391.67
168,608.33
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