Planning is essential in any business. This task is designed to help your team develop a basic "game plan" that can help you make decisions, as well as help you reflect on the decision-making process.

Use the question guides below make business plan that describes who you are, what market your business will serve, and how you will ensure success, among other things.

Divide your business plan into the following parts:

1. Company description (COFFEE SHOP) -. About us? Specify the mission and vision of the business. 2. Planning - Set your short-term goals. Use the S.M.A.R.T. for your writing. Develop a strategy for each goal.

3. Market analysis -. Describe the target market: Who are my potential customers? What are the buying habits of my customers?

- How big is my target market?

- How much are customers willing to pay for my product? Who are my main competitors? 4. Management and operations - How will we manage the business? It details an overall plan of operations. 5. Marketing - How will we market our business? Describes the marketing mix (the four P's of marketing). 6. SWOT Analysis - What are the strengths, weaknesses, opportunities, and threats of the business? Identify at least two of each. 7. Forecasts - Where do you expect the company to be a year from now? Use the document you find here to analyze various areas that will help you make a better forecast.

- Include the answers to questions 1 and 2 in this part of the report.

Prevision Forecasting sales to hire enough employees and buy the right amount of product can be one of the most difficult tasks in running a business. At the beginning of the simulation, the only clue you'll have about potential demand is a similar business that was selling about 1,000 cups a day. Whether your coffee reaches or exceeds that amount will depend on your ability to anticipate and manage growth. 1. When starting out, you can assume that sales are well below 1,000 cups a day. What is your projected net cash flow if you expect to sell 300 medium cups of coffee per day (M-F) at $3.50 a cup and have expenses of $6,000 for the week? 2. At BizCafe, what decisions can you make to increase demand in the early stages of your business? What other decisions will you need to consider to manage growth? 1. In the table below, estimate the amount of coffee you will need to buy to have enough to + meet demand. Remember that each shot of espresso takes 7 grams or 1/64 lb. of coffee. Size Shots per cup Weekly projected demand (cups) Necessary coffee Small 1,200 Medium IN 1,000 Large 3 $50 Total 2. Once you have established the hours of coffee, the projected daily demand and the productivity of the servers, estimate the number of part-time servers you will need to cover the demand in each hypothetical scenario. Projected Server Opening hours daily productivity Waiters needed per |Waiters needed per demand (cups per hour) hour week 10 a.m.- 8 p.m. |290 14 9 a.m. - 9 p.m. 360 12 7 a.m.- 11 p.m. 1,200 15 3. Why might you have trouble serving 1,000 cups a day if your espresso machine is a Duo?'Break-Even Analysis Break-even analysis attempts to determine the volume of sales needed for the business to cover costs or to make revenues and costs equal. It is useful for setting prices, estimating potential profit or loss, and planning for the next period. There are a couple of formulas that will be useful in this assignment: Fixed Costs Price Unit Variable Cost Fixed Costs Projected Units Break-Even Units = Break-Even Price = Variable Cost + 1. In calculating between fixed and variable costs, an important distinction is made. Fixed costs do not change with units sold (at least in the short run). Variable costs depend on the units sold in the period. Identify each of the following as a fixed (F) or variable (V) cost in the context of m 2. Find the break-even units if fixed costs are $12,000 and you are selling coffee for $3.60 at a cost of $0.40 per cup. 3. Using the same fixed and variable costs as in question 2, what is the new break-even point if the price is reduced to $2.90? 4. Using the same fixed and variable costs from question 2, what is the break-even price if you project that you will sell 3,000 cups of coffee? 5. How does knowing break-even units help you with other decisions