Local Coffee House by J&J Brothers Venture

Local Coffee House by J&J Brothers Venture

Project Title Local Coffee House
Current Status Concept / Business Plan
Amount Invested 0
Funding Required RM300,000 or less
Description – Initial Idea: Our initial idea is to establish a coffee house from scratch under a honest amount of budget (below RM100,000).
– Short Term Goal: Our short term goal is to breakeven by half of the year (6 months running business) and aim to generate a profit of 1.5x of our initial cost by a full year time.
– Our strategy to help us achieve our goal is the idea of a small cosy coffee shop aiming to capitalize on customers who likes to sit and relax while having a nice cup of coffee to go along their work or just simply there to socialize while also grabbing quick bites from our wide array of light foods that we offer
– Marketing: We will utilize grassroots marketing strategy as we believe this is one of the strategy that will enable us to market our products from low to virtually no cost. We will be making full use of the social media platform to promote our brand.
– Target Market: We aim to serve customers who loves coffee from various age groups.
– Structure ,Location & Layout: We chose a strategic location that has high traffic due to surroundings (e.g institution, residential area, corporate building) that can be seen while driving along the main street. Layout wise, we opt for traditional wooden-esque throughout our café with warm white lighting. We have approximately 10 small wooden tables to fit around more or less 40 pax on full house. Structure: 800 sqf, single long bar with a small inventory room located at the back.
– Employment & staffing: Handpicked staff from owners based on stated criteria. Owners are full-time employees. Not more than 4 employees (included owners) at a time to avoid over staffing. Part timers will be employed and training will be provided.
– Policy: We have an open door policy towards our staff and customers alike. Customer’s satisfaction will be our utmost priority. Clean and friendly environment. We emphasize on having a great atmosphere for employees and customers alike.
– Long Term Goal: Able to expand our brand through different states in Malaysia (One in every state). Able to sustain income from main outlet/branch from RM 3~5 thousand of gross profit per month. Able to establish a stronghold in Malaysia while trying to expand our brand internationally.
Business Opportunity Market research

Trends in our market are:

• Coffee industry in our market especially in Malaysia are as evergreen as ever. We try to capture as much of the percentage on our target which includes students, corporate workers, and also residents.

Customer Profile (Target Market)

1. Corporate workers
2. Students
3. Residents
4. Family
5. Coffee enthusiasts
Our customer research has shown what our customers want is:

Here we break down into three different groups according to our research:
1. Clients that are on the go that needs a quick fix of food and beverage
2. Clients that requires personal space to work
3. Clients that are here to socialize and relax

Research findings:

• We know this because we lived around the area and were exposed to similar culture. Our research includes random surveys and also collecting personal feedback from the community as well as friends alike.
Customer projection:

Group #Customers Price/visit

perpepay per unit
Students 100 / month RM 8
Corporate Workers 150 / month RM 15
Residents 150 / month RM 10
Young Adults 100 / month RM 15

Competitor profile:

Competitor name Strengths Weaknesses
• Starbucks • Established brand
• High Budget
• Strong Marketing • Mainstreamed coffee
• Costly
• Cosan Coffee • Strong Followers
• High Budget • Costly
• Sub Par Coffee

How can we improve on our offer and/or price(s) towards our competitors?

• We offer lower priced home brewed coffee.
• Maintain High Quality of service while keeping price reasonable.

Revenue / Business Model Promotion and advertising

• We will utilize the grassroots marketing strategy as our main strategy of marketing (e.g. social media platforms, through word of mouth to create sufficient hype. – post and pre-opening)
• We will also handout fliers to promote our brand prior to opening.
• We will promote our products prior to opening our coffee shop in various malls and also giving out free samples to potential customers around our demography.)
• We will have a reward system to maintain the privilege of returning customers (e.g. membership cards).
• We will also offer promotional discounts during events throughout the year.
• We will be inviting various bloggers to our coffee shop to let them evaluate our coffee house while also spreading their word to their fellow followers.

Management Team Key personnel
Details of owner(s):
Name: Jourdan Chan Weng Keen
Position/main responsibilities: Managing Director
Experience and knowledge of our industry: 2 years’ experience in F&B Management

Previous employment: Varies Coffee houses and F&B industry outlet
Key skills brought to the business: café management
Business experience and any training undertaken: Standard F&B SOP training
Academic/professional qualifications: Bachelor of Science, Degree in Psychology

Other key personnel (including shareholders):
Name: Henry Chong Jun
Position/main responsibilities: Barista
Experience and knowledge of our industry: 18 months as Barista, Bar training
Previous employment: Varies Coffee house
Key skills brought to the business: Coffee Brewing, Latte Art
Business experience and any training undertaken: Malaysia Barista Association
Academic/professional qualifications: Degree in Psychology

Company Background Company registered on 16/12/2015
Currently in the stage of looking for start-up investor
Funding Milestone Expected funding from investor : RM100,000 – RM150,000 as major start up injection

STARTUP EXPENSES

BUILDINGS/REAL ESTATE AMOUNT
Rental $1,600.00
Remodeling $18,000.00
Other $0.00
Total $19,600.00

CAPITAL EQUIPMENT LIST AMOUNT
Furniture $5,000.00
Equipment $1,000.00
Fixtures $700.00
Machinery $33,500.00
Other $0.00
Total $40,200.00

LOCATION AND ADMIN EXPENSES AMOUNT
Rental $1,600.00
Utility deposits $1,600.00
Legal and accounting fees $400.00
Prepaid insurance $150.00
Pre-opening salaries $3,700.00
Utility $600.00
Total $8,050.00

OPENING INVENTORY AMOUNT
Coffee Beans & Milk $700.00
Cakes $420.00
Sandwich $200.00
Juice $120.00
Snacks (Bread,Pie,Nachos) $500.00
Total $1,940.00

ADVERTISING AND PROMOTIONAL EXPENSES AMOUNT
Advertising FOC
Signage $300.00
Printing $50.00
Total $350.00

OTHER EXPENSES AMOUNT
Other $1,000.00
Total $1,000.00
Working Capital $2,000.00

BANK LOANS AMOUNT
SME $100,000.00
Total $100,000.00

SUMMARY STATEMENT
SOURCE OF CAPITAL TOTALS
Bank loans $100,000.00
Total $100,000.00

STARTUP EXPENSES TOTALS
Buildings/real estate $19,600.00
Capital equipment $40,200.00
Location/administration expenses $8,050.00
Opening inventory $1,940.00
Advertising/promotional expenses $350.00
Other expenses $1,000.00
Working capital $0.00
Total $71,140.00

% Equity Allocation 40%
Expected ROI 11%
Risks and Mitigation Managing market risks:

Market Risks:
1. Risks that we identified includes: Lack of customers due to unforeseen circumstances

Our solution to combat these risks:
1. Double the effort on marketing strategy by utilizing various marketing techniques.
2. Might employ or seek advice from experienced personnel regarding the issue to help strengthen our position

Strategy to minimize competitor’s impact:

1. Cut cost in any areas that deemed possible while maintaining quality.
2. Reconsider and revise financial plan and make readjustments accordingly.
3. Consider deploying more marketing strategies.
4. Establish strong rapport with revisiting customers.

Exit Strategies Within 2 years of operation, if fail to achieve at least break-even, we shall proceed with company valuation and exits
Company Name J&J BROTHERS VENTURE
Business Address no5, jalan pju 3/18h tropicana indah
Contact Person Henry Chong Jun
Contact Number 0109826832
CAPITAL.MY

1 comment so far

Capital Team Posted on12:19 pm - 16/01/2016

We love coffee