This chapter lists and describes the essential pre-opening activities and
procedures which must be completed by any prospective coffee, espresso, and
tea shop owner.
There are bucks to be made in quality beans and loose tea
leaves, but only if you get it right from the start.
Before engaging in any business activity, seek the guidance of a lawyer who can
guide you through the many legal issues that are specific to your requirements.
You can save yourself a lot of hassle if you seek legal counseling during the early
stages of the opening period.
The services of a local accountant or CPA also
should be retained. The accountant will be instrumental in helping you set up the
business, and can provide you with a great deal of financial advice to inform your
decision-making.
A carefully structured, formal business plan is fundamental to the setup of any
successful venture is; your future success depends upon it. Your formal business
plan will be your road map for success.
Business Plan Outline
Elements of a Business Plan
I. Cover sheet
II. Statement of purpose
III. Table of contents
A. The Business
1. Description of business
2. Marketing
3. Competition
4. Operating procedures
5. Personnel
6. Business insurance
7. Financial data
B. Financial Data
1. Loan applications
2. Capital equipment and supply list
3. Balance sheet
4. Break-even analysis
5. Pro forma income projections (profit and loss statements)
a. Three-year summary
b. Detail by month, first year
c. Detail by quarters, second and third years
d. Assumptions upon which projections were based
6. Pro forma cash flow
a. Follow guidelines for number 5
C. Supporting Documents
1. Tax returns of principals for last three years
2. Personal financial statement (all banks have these forms)
3. Copy of proposed lease or purchase agreement for building space
4. Copy of licenses and other legal documents
5. Copy of resumes of all principals
6. Copies of letters of intent from suppliers, etc.
What to Include in Your Business Plan
It is vital that your business plan shows clearly where you want to go with your
coffee, espresso, and tea shop business; the plan must include immediate and
short- and long-term goals.
You also must indicate that you are prepared to cope
with the challenges and setbacks that will inevitably occur at various stages along
the route to success. Questions need to be asked, and answers provided to cover
all likely eventualities.
The body of the business plan can be divided into four distinct sections:
1) the
description of the business,
2) the marketing plan,
3) the management plan, and
4) the financial management plan.
Addenda to the business plan should include
the executive summary, supporting documents and financial projections
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