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Business Plan Part IV Part V of the Business Plan Part V of the business plan is due in week 8. The requirements for this week are: 1.  Completed Final Project (Combine all the parts together with all the corrections from previous feedback) 2.  Appendix (Tables, calculations, graphs, etc.) 3.  References 4.  Create a 10-15 minute PowerPoint Recorded presentation in which you describe in detail the key decisions you made in Project Parts 1, 2, 3 and 4, and the reasons for those decisions. Include any additional items of your choice to support the business plan Please make corrections to the following parts. Part 1: Make sure your goals are specific, realistic, and achievable. Also, the goals that can be measured. What Kinds of Objectives to Set a. Two very distinctive types of performance yardsticks are required: • Those relating to financial performance • Those relating to strategic performance b. A company’s set of financial and strategic objectives should include both near-term and longer-term performance targets. c. When trade-offs have to be made between achieving long-term objectives and achieving short-term objectives, long-term objectives should generally take precedence. Part 2: Stakeholders are not necessarily responsible for training. Stakeholders of the company can be owners, employees, customers, suppliers, government etc. Make sure to identify key stakeholders and how they impact your business. More detail is needed on price and quality. What will your pricing strategy be in order to compete with the likes of Starbucks and Dunkin Donuts? How is this strategy going to help you gain competitive advantage? In terms of quality, what separates your coffee from the rest? Part 3: This part needs more deeper analysis. Illustrate this with graphs to prove your arguments. Where are the tables and figures? What strategy will you use to accomplish all this? Is it differentiation strategy? Low cost strategy or some other strategy? Explain why you made the selection and how it will help your company succeed. Part 4: provide a breakeven analysis to support your numbers.Running head: BUSINESS PLAN PART 1 1 BUSINESS PLAN PART 1 7 Business Plan Part I Student’s Name Institutional Affiliation Introduction Most consumers have developed an increasing interest in coffee. This has necessitated the establishment of coffee businesses and coffee shops all over. Millers Coffee shop is one of those businesses that look forward to starting a coffee selling company or business. Millers Coffee Shop is positioned to sell coffee and coffee products to the Northwest Santa Fe areas. This business is looking forward to producing a friendly and comfortable setting that enables its customers to consume quality products and experience impeccable service at an affordable price. The coffee shop will offer different products and services ranging from coffee, tea, and pastries, among others. It will also offer non-alcoholic beverages for kids and those who do not love coffee. This paper presents a business plan for Miller Coffee Shop. Company Background Company Name The company name for this business is Millers Coffee House. The shop will be a one of a kind coffee shop in Overland Park, Kansas. This location will be appropriate for this coffee business as most adults that allegedly like to consume coffee pass by this street in the evenings, as discussed by (Jackson 2020). Millers Coffee House will offer coffee, espresso, gourmet coffees, drip coffees, smoothies, and lattes. It will also serve simple pastry such as bread, muffins, cookies, rolls, and scones seasonally. Type of Business Millers Coffee House will be a retail coffee shop that sells coffee as the main products and other related products. This retail businesss main goal is to become the leading retailer in coffee branding and produce the finest quality coffee to its target customers. It aims at creating superior service to its customers to develop a high degree of customer loyalty with its target customers. The small company also aims to expand its business practices to escalate its market share in Kansas City and other regions primary markets. Proposed Ownership/Legal Structure Millers Coffee House will function as a sole proprietorship. Miller Louise Carter, the owner, will allow private investors to venture into other related businesses that go in hand with the coffee business. But these investors will be silent stakeholders, and the owner will pay them off within three years of business establishment (Jackson, 2020). The private investors will be paid two times a year in equal installments with interests. The proposed budget for this business is $99,900. The owner has a cash contribution of $10,000 and plans to loan the remaining amount after investors input. Miller is a graduate of Kansas University with a masters in business administration. He has previously workeRunning head: BUSINESS PLAN PART 2 1 BUSINESS PLAN PART 2 5 Business Plan Part 2 Student’s Name Institutional Affiliation Stakeholder Analysis Personnel Experience, Education, and Training for Millers Coffee Shop Stakeholders Millers Coffee shop will hire employees with excellent customer service experience and other roles in coffee selling and distribution. The manager should be able to adapt all the features of café operations (Rahardjo, 2019). All the employees for this business will be required to have formal academic training and at least two years of working experience in the hospitality and coffee selling industry. The stakeholders will also be required to train barista skills, management skills, coffee roasting, and cupping courses. Industry Analysis A Brief Overview and Long-Term Outlook for Growth The long-term outlook for Millers Coffee shop is a bright future in coffee brewing and selling. Despite the Covid-19 pandemics present challenge to the world economy, the company looks forward to experiencing a profound change in its services (Rahardjo, 2019). It will remain resilient and endure the economic challenges that come with the coronavirus challenge. The long-term outlook for this companys growth indicates improving market dynamics, product innovation, new technology, and consumer trends enhancing business practices. Industry Size, Trends, and Target Market Segment The coffee shop industry in America comprises over 22,000 stores. The major companies included in this industry are Starbucks, Coffee Bean, Tea Leaf, and Dunkin Donuts. The industry is extremely concentrated at the top and scrappy at the bottom (Rahardjo, 2019). Millers Coffee Shop is still at the bottom since it is a small business yet to be launched. The target market will be coffee shop lovers, specialty coffee drinkers, and whole bean buyers. The market trend is expected to continue growing given that the target customers are aware of the specialty coffee drinks. Who Leads the Industry in Terms Of Price, Quality, and Market Share? Most of the small business coffee shops in the United States sell ground coffee beans for home consumption. Others sell the merchandizes and equipment used in the brewing and making of espresso. The leading company in this industry so far is Starbucks (Jackson, 2020). It has maintained the top position due to its high quality and premium coffee and other equipment at affordable prices. As such, Starbucks has the largest market share in the coffee selling and brewing industry. Dunkin Donuts follow it at the second position in the market share, quality, and price. Other small coffee shops also strive to improve their market in the coffee business industry. Competitive Analysis Strengths and Weaknesses of Primary Competitors CompeRunning head: BUSINESS PLAN PART 3 1 BUSINESS PLAN PART 3 6 Business Plan Part III Student’s Name Institutional Affiliation Marketing Strategy Differentiation Strategy Millers Coffee shop will utilize three powerful strategies to differentiate its products and services from its competitors. First, it will market its individuality through unique and confident branding. The coffee shop will sell a high-quality coffee brand and a consistent brand that demonstrates its identity and makes it stand out from the competitors (Jackson, 2020). Secondly, it will offer superior customer services that are absent in the rival coffee shops. For instance, the customers will be treated with utmost hospitality to remember the high-quality services. Third, Millers coffee shop will offer unique packaging of its merchandizes to stand out from the competition in the coffee selling business. It will also achieve this by providing unique and tastier accompaniments to coffee. Strategies to keep Millers off the Declining Market Segment Millers Coffee shop will utilize a harvesting strategy to stay away from the declining market segment. This approach encompasses sacrificing the market position to get quick profits to boost the business operations (Nguyen, 2020). It will also use the divestiture strategy to sell out and avoid the declining market. Lastly, Miller will apply its differentiation strategy to improve the quality of products and services to stay ahead of the game. This strategy will enable the company to rejuvenate demand by attracting customers. Tables and Figures Must Be Introduced In the Narrative Analysis of Business Opportunity Millers Company has three primary business opportunities that can develop its business. First, it can utilize innovation and technological techniques for a unique production. The company can achieve this goal through different seating arrangements, product taste, or changing work practices (Jackson, 2020). Secondly, it can establish brand loyalty by giving out rewards to customers. Such offerings can attract new customers and improve their commitment to the brand. Finally, the company can expand its target customers geographically. It can achieve this by launching new businesses in various geographic locations. Target Market and Location The primary target market for this shop will be deep coffee drinkers and coffee lovers. They will be mostly adults and teenagers. The shop will be a one-of-a-kind coffee shop in Overland Park, Kansas. This location will be appropriate for this coffee business as most adults that allegedly like to consume coffee pass by this street in the evenings, as discussed by (Jackson 2020). Millers Coffee House will offer coffee, espresso, gourmet coffees, drip coffees, smoothies, and lattes. EconomiRunning head: BUSINESS PLAN PART 4 1 BUSINESS PLAN PART 4 7 Business Plan Part IV Student’s Name Institutional Affiliation Financials Plan In-Depth Narrative Demonstrating the Viability of This Business Millers Coffee Company will have a unique selling proposition that will lead to business success. Being unique will keep the business ahead of the competition in the coffee selling industry. Second, it will develop a stable customer base. This means that the customers will be loyal to this company. Third, Millers will develop a strong competitive advantage. It will achieve this by determining the potential competitors and creating a marketing strategy that beats that of the competitors. Financial Estimates and Rationale for the Viability of the Proposed Business The business expenses for Millers Coffee will be grouped in two categories, namely the startup expenses and operating expenses. Some startup costs will include business registration fees, starting inventory, licensing fees, down payments on equipment and property, rent deposits, and utility setup fees (McKenzie, 2019). The operating expenses will include salaries, rent payment, shop supplies, maintenance, utilities, and distribution payments. The starting number of customers is estimated to be 50 customers each day, for 26 open working days a month. Description of the Form of Business Millers Coffee House will function as a sole proprietorship. Miller Louise Carter, the owner, will allow private investors to venture into other related businesses that go in hand with the coffee business. But these investors will be silent stakeholders, and the owner will pay them off within three years of business establishment (Jackson, 2020). The private investors will be paid two times a year in equal installments with interests. The proposed budget for this business is $99,900. The owner has a cash contribution of $10,000 and plans to loan the remaining amount after investors input. Three-Year Financial Projection The financial predictions for this company are based on the historical trends within the coffee brewing industry. The international coffee market is estimated to grow at 5.3\% during the projection period from 2021 to 2025 (Jackson, 2020). More than 70 percent of consumers will possibly prefer home-brewed coffee, which will lead to the production of convenient forms of coffee such as capsules and coffee pods. The market will likely be driven by several factors that have been prevalent in the coffee business in the past. Some of these factors include increase customer demand for fortified coffee products, continuous innovation, and single-serve brew systems. Assumptions General Assumptions Plan Year 1st 2nd 3rd Current Interest Rate 10\% 10.05\% 11\% Lo