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Contents

Task 1- Research and Report...........................................................................................................3


Different types of business organizations that you could set up and an analysis of the potential
benefits, limitations and risks associated with each (AC 1.1).....................................................3
An analysis of the sources of finance for each type of business organization (AC1.2) analyzed
in (a).............................................................................................................................................4
An evaluation of the legal considerations relevant to planning a business venture (AC 1.3).....5
An analysis of the market conditions that will impact on setting up your new business venture
(AC 2.1).......................................................................................................................................6
Task 2- Business Planning...............................................................................................................7
a) The organization..........................................................................................................................7
You will need to develop the mission, vision, aims and objectives of the business (AC 3.1).....7
Propose business structures and systems that will deliver the business aims and objectives......8
b) The product..................................................................................................................................9
Analyse gaps in the market for potential products (AC 2.2).......................................................9
Analyse target markets for your business venture (AC 2.3)........................................................9
Interpret the external factors and market conditions you analysed in your report to justify the
need for your product (AC 3.2)................................................................................................11
Specify your business products to meet the needs of the target market (AC 3.3).....................12
c) Forecasts....................................................................................................................................12
Produce business planning forecasts based on targets (AC 3.5)................................................12
Identify your business responses if these targets are not met (AC 3.6).....................................14
Task 3 -Your Pitch.........................................................................................................................14
Pitch for backers funding of your business proposal (AC 4.1)................................................14
Provide him with the documentation you have produced (AC 4.2) to support your pitch i.e.
your report and business plan, including forecasts....................................................................14
References......................................................................................................................................19

Task 1- Research and Report


Different types of business organizations that you could set up and an
analysis of the potential benefits, limitations and risks associated with
each (AC 1.1)
There are many types of business organizations which carry out their operations. Following are
the types of organizations which we see in our daily life.

Sole proprietorships

The sole proprietorship is the least complex business structure under which one can carry on a
business. The sole proprietorship is not a legal entity. It basically alludes to a person who claims
the business and is by and by in charge of its obligations. A sole proprietorship can work under
the name of its proprietor or it can work together under an invented name, for example, Nancy's
Nail Salon.
The sole proprietorship is a famous business structure because of its effortlessness, simplicity of
setup, and nominal cost expense. A sole proprietor require just enroll his or her name and secure
working licenses, and the sole proprietor is ready to carry on the business. A particular disservice
is that the proprietor of a sole proprietorship remains by and by obligated for all the business'
obligations. In this way, if a sole proprietor business keeps running into financial related
problems, creditor can bring claims against the entrepreneur. In the event that such suits are
successful, the proprietor will need to pay the business obligations with his or her own cash.

Franchise

A business in which the owner of the business sell the rights, logo, name and model to another
party who will operate the same business in different place is known as franchise. This type of
business is a common way of carrying out business. For instance, you can see different
McDonalds outlet in different areas of the countries. These outlines are called franchise.
The business model used by the parent business should be implemented by the franchise. For
example, the franchisor employees will have to use the same uniform, sign, logo and business
methods. The owner of the franchise must keep in mind that the parent organization is not just
selling the products but also the business techniques.

Advantages of sole proprietorship

The business is easy and doesnt involve complex tasks.


No big legal formalities are required for the startup.
License and permit are the only requirements.
Individuality and authority.

Disadvantages of sole proprietorship

Limited Resources.
Liability is not shared and is unlimited.
No future
No legacy if the owner dies

An analysis of the sources of finance for each type of business


organization (AC1.2) analyzed in (a)
At every stage of life the business must have sufficient funds in order to carry out the business
successfully. There are many sources of finance for the business. Some of them are as follows.
1.

Small business organization that involves numerous credit strategies which can help
the business to succeed and thrive. This administration not only provide the loans but
also helps the business in the lending procedure with the help of different loan
programs. These administration also finance different expenses of the day to day

2.

activities of the business like working capital, furniture etc. (Peirson, et.al, 2004)
Many private businesses give special support to the sole proprietorship businesses.
They help them with different techniques like offering equipment leases, loan, capital
and various other support. Some investors only invest in the businesses and they dont

3.

take care of the daily activities happening in the company.


There are people who provide support to the business as a cash. These people are
known as angel investors. The entrepreneur present the idea and after careful
consideration the angel investors provide funds to the entrepreneur so that they start

4.

the business venture.


The local government offers certain grants and loans to the sole proprietors. These
grants help the sole proprietors to carry on their business with ease and they dont
face any problem while dealing the business activities.

An evaluation of the legal considerations relevant to planning a


business venture (AC 1.3)
In order to start up this Cafe/Bistro/Coffeehouse, legal considerations are necessary to keep in
mind because they have equal importance. The sole proprietor while opening this business must
consider various legal issues. Some of them are follows.

License

To startup the business of Caf/Bistro/Coffeehouse, the owner of the business needs to get
permission for the startup of the business. The government issue a license to carry on the
business. As Caf/Bistro/Coffeehouse will be a food and drinks business thus the business needs
to be registered from the health and safety act so that the business provide and served the
customers the quality foods and drinks which are free of any hazards. (Marcum, et.al, 2011)

Health and Safety

The business have accountabilities regarding the health and safety. Because there are thousands
of customers who would intake the drinks and buy the food. Thus a risk assessment plant should
be available.

Business Insurance

Business insurance is important for each and every type of organizations because each and every
organization has employees and this become the liability of the organization to buy an insurance
for the employees. Hence we can say that business insurance is the mandatory legal necessity.
Without insurance the organization will be considered as risky and employees will avoid it.
(Bain, et.al, 2013)

VAT Registration

The business become liable to the be the part of VAT registration if the business yearly revenue is
81,000 for the year of 2014 to 2015. (Steingold, 2015)

An analysis of the market conditions that will impact on setting up your


new business venture (AC 2.1)
The Caf/Bistro/Coffeehouse belong to the hospitality industry and this industry has emerged as
a thriving sector last year but I the second half of the year, the performance of the industry
decline a little bit.

Source: http://www.restaurant.org/Restaurant/media/Restaurant/SiteImages/News%20and
%20Research/RPI/Restaurant-Performance-Index-Oct-2015.jpg

This industry has shown a huge success and has developed for the last two decades and is still.
But still there many other market situation which would impact the business.

When the people plan to eat outside the home or go to the coffeehouse for coffee, it
impact the economic sequence. When the economy of the country shows a positive sign
then most of the people visit the caf and if the economy of the country shows negative

sign then the people prefer to eat at home rather than at caf. (Sebastiani, et.al, 2014)
The consumer expenses quantity and the prices of the fuel also shows impact on the

caf/Bistro/Coffeehouse market.
Another aspect is the analysis which the company usually do for the competitors. This
analysis is known as SWOT analysis. The company find out the strengths and
weaknesses and as well the opportunity and threats with the help of this analysis.

Task 2- Business Planning


a) The organization
You will need to develop the mission, vision, aims and objectives of the
business (AC 3.1)
Welcome Coffee is located in the London and is a full-fledged Caf. This caf target different
customers like the local people, travelers and all other people who live behind the city. This caf
not only provide coffee but also provide books and newspapers so that the customers read while
taking a sip from the coffee.
Mission Statement
Welcome coffee is a business endeavor which goes for taking the undeniable experience to taste
a coffee, read books; relax their mind, feast at the Bistro or have snacks at the Caf and it gives a
brilliant experience. It is a destination which would be authorize by local people and also the
travelers and business persons. The mission of Welcome coffee is likewise to give a complete
affair of beverages, snacks and food at one spot which is outlined according to the requirements
of the contemporary age.
The bistro gives an advanced vibe which is easygoing yet it is exceptional. Bistro gives the
charming feel and is cleaned also. What's more, the caf experience for the Greenwich local
people, and the general population around London; additionally for the explorers and vacationers
are something that they are going to love for a lifetime. It isn't valued high and is inside the
method for individuals. The menu is additionally sorted out and made according to the
necessities of today's customers.

Vision

The vision of the Welcome caf is to take the lead on other cafes in the Greenwich London
within a year and to expend this business to other cities of the United Kingdom by opening the
franchise after a year with huge success.

Objectives
Following are the objectives of the Welcome Caf.
To meet the needs of the target customers and to go for offers of no less than 2 million
that effectively create and develop the business wander
To focus at clients and maintain net benefit of no less than 15-20% toward the end of six
months and to attempt and expand it before the current year's over
To advance and sustain consistent offers of the month to continue expanding with every
passing month to make it no less than 150,000 and to witness a noteworthy trek before
first year's over.

Propose business structures and systems that will deliver the business
aims and objectives
Welcome caf, a sole proprietorship with communication and client administration structure
which contains a sole proprietor who might utilize veteran staff that aides in maintaining the
business easily. Following are the key points which will help in achieving the aims and
objectives.
1. Quality
In order to create a goodwill among the customers and to attract more and more customers,
welcome caf must have to maintain and keep an excellent quality of foods, beverages, drinks
etc.
2. Marketing
The caf must have to promote their business in such a way that the message of their promotion
convey to the people of not only the London but also to the other cities of the UK.
3. Service

The staff must be very much prepared and created to give an administration which is critical and
praiseworthy.
4. Management
There must be a hold on the expense of the items served and the whole experience must be
important to spur and energize the staff and in addition pull in the clients for an informal validity.

b) The product
Analyse gaps in the market for potential products (AC 2.2)
These days, the rising patterns in the part are numerous which may affect the business wander as
the principle reason for the business is to address the needs and prerequisites of the clients.
Accordingly, it is crucial to adapt up to the rising patterns that are1.

Different promotional techniques and advertising are used promote the drinks, coffee, and

dishes in Cafe/Bistro/Coffeehouses. (Barringer, 2012).


2.

Organizations are confronting a hard time to adapt because people are coming up with

different variety of tastes in the drinks.


3.

Majorly, clients are getting to be health cognizant which is making them stick to health

cognizant menus and diets. Therefore, the Cafe/Bistro/Coffeehouses are attempting their level
best in the developing markets to think of sound beverages and sustenance with the goal that they
can meet the necessities of the clients.
4.

Also, the feel of the Caf/Bistro/Coffeehouses are showing signs of improvement and

upgraded with music, outwardly alluring environment, neighbourly administration and all things
considered an essential ordeal.

Analyse target markets for your business venture (AC 2.3)


Market segmentation has a great importance while getting start of business. Following is the
market segmentation of the Welcome caf

http://www.bplans.com/ethnic_food_restaurant_business_plan/images/550x318x3e805368b288
4a6e8cc94f8ec2bbe6f6.png.pagespeed.ic.Ak1H1BBmTX.png
In order to boost sales, the Welcome caf will target the following segment mostly.
I.

People who are related with any business and are busy while preparing coffee at
home.

II.

Couples who are out for an enjoyment in the Greenwich and London

III.

Tourists who are visiting London

IV.

Local people

V.

Teenagers

Interpret the external factors and market conditions you analysed in


your report to justify the need for your product (AC 3.2)
The external factors and market conditions for the business are
External Factors
Opportunities

Internal Factors
Strengths

Welcome caf will get full advantage

Contemporary framework

of its experience and will boost sales

Well-trained and veteran staff

and opportunities.

Suitable place

Threats

Other competitors in the beverages.

Local coffee shops

Cool drinks

Weakness

No experience in the past to run this


type of venture

not a broad market segmentation

PEST Analysis

http://driveyoursuccess.typepad.com/.a/6a0120a80567b0970b01901d1ea7cb970b-pi

Specify your business products to meet the needs of the target market
(AC 3.3)
Bistro gives the charming feel and is sterilized too. What's more, the caf experience for the
Greenwich local people, and the general population around London; likewise for the travelers
and tourists are something that they are going to appreciate for a lifetime. It isn't valued high and
is inside the method for individuals. The menu is additionally sorted out and made according to
the necessities of today's customers (Allen, 2015).
The purpose behind welcome coffee is maybe, to give such an ordeal to the purchasers that they
don't have a craving for setting off to whatever other focused Caf/Bistro/Restaurant.
Additionally, the quality of this business endeavor is that it contains the three primary things
which any client would need and they don't need to dally around spots and hunt down beverages,
espresso or snacks since Welcome coffee gives every one of these things into one business
wander. The evaluating is set which is not exceptionally costly and is reasonable too (Van Auken,
2015).

c) Forecasts
Produce business planning forecasts based on targets (AC 3.5)

Start-up Necessities
Legal
Brochures
Consultants

$3,000
$400
$2,600

License and Tax

$23,000

Employee recruitment and payroll

$38,000

Accounting + Brew Opening expenses

$6,000

Miscellaneous

$2,000

Total Start-up Necessity Expenses


Start-up Assets Necessities

$750,000

Money required
Inventory

$200,000
$60,000

Total Start-up Assets

$260,000

Total requirements

$300,000

Investor backing

$200,000

Borrowing

$60,000

Loss at Start-up

$60,000

Total Funding

$320,000

Welcome cafe meet the needs of the target customers and to go for offers of no less than 2
million that effectively create and develop the business wander. They also focus at clients and
maintain net benefit of no less than 15-20% toward the end of six months and to attempt and
expand it before the current year's over.

Identify your business responses if these targets are not met (AC 3.6)
If Welcome caf is not able to achieve these targets there can be various issues like the business
can be close, insolvency and bankruptcy. The business must have the following points in order to
eliminate the chances of these above reasons.

The business must have risk assessment tools and risk management tactics in order to

avoid these issues.


The business must have contingency funds.
The HRM must be implemented and must provide proper trainings to the employees.
All expenses must be in control of the managers.

Task 3 -Your Pitch


Pitch for backers funding of your business proposal (AC 4.1)
Provide him with the documentation you have produced (AC 4.2) to support your pitch i.e. your
report and business plan, including forecasts
Welcome Caf (Where quality and leisure meet together)
Benefit Lin

It is a business which include of Caf, Bistro & Coffeehouse providing products not only to the
local people of the Greenwich and London but also target business people, travelers and tourists,
singles/couples etc.
Problem
People needs a place where they can find not only the coffee but also Bistro, caf so that they can
meet there and have drinks while reading the books.
Insights
The cafe gives a modern vibe which is easygoing yet it is special. Bistro gives the lovely feel and
is sterilized too. Furthermore, the coffeehouse experience for the Greenwich local people, and
the general population around London; likewise for the explorers and tourists are something that
they are going to treasure for a lifetime. It isn't estimated high and is inside the method for
individuals. The menu is additionally sorted out and made according to the necessities of today's
customer's (Klotz, et.al, 2014).

External Factors
Opportunities

Internal Factors
Strengths

Welcome caf will get full advantage

Contemporary framework

of its experience and will boost sales

Well-trained and veteran staff

and opportunities.

Suitable place

Threats

Other competitors in the beverages.

Local coffee shops

A decrease in the economy spending.

Proposition

Weakness

No experience in the past to run this


type of venture

Not a broad market segmentation

A limited market budget

Welcome coffee is a business endeavor which goes for taking the undeniable experience to taste
a coffee, read books; relax their mind, feast at the Bistro or have snacks at the Caf and it gives a
brilliant experience. It is a destination which would be authorize by local people and also the
travelers and business persons. The mission of Welcome coffee is likewise to give a complete
affair of beverages, snacks and food at one spot which is outlined according to the requirements
of the contemporary age.

Working

http://image.slidesharecdn.com/restaurantproject-121124083735-phpapp02/95/restaurantproject-5-638.jpg?cb=1353746294
Objectives
Following are the objectives of the Welcome Caf.

To meet the needs of the target customers and to go for offers of no less than 2 million
that effectively create and develop the business wander
To focus at clients and maintain net benefit of no less than 15-20% toward the end of six
months and to attempt and expand it before the current year's over
To advance and sustain consistent offers of the month to continue expanding with every
passing month to make it no less than 150,000 and to witness a noteworthy trek before
first year's over.

Business System

The business must have risk assessment tools and risk management tactics in order to

avoid these issues.


The business must have contingency funds.
The HRM must be implemented and must provide proper trainings to the employees.
All expenses must be in control of the managers.

Forecasts
Start-up Necessities
Legal
Brochures
Consultants

$3,000
$400
$2,600

License and Tax

$23,000

Employee recruitment and payroll

$38,000

Accounting + Brew Opening expenses

$6,000

Miscellaneous

$2,000

Total Start-up Necessity Expenses

$750,000

Start-up Assets Necessities


Money required
Inventory

$200,000
$60,000

Total Start-up Assets

$260,000

Total requirements

$300,000

Investor backing

$200,000

Borrowing

$60,000

Loss at Start-up

$60,000

Total Funding

$320,000

References
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Bryman, A., & Bell, E. (2015). Business research methods. Oxford university press
Weske, M. (2012). Business process management: concepts, languages, architectures.
Springer Science & Business Media.
Peirson, G., Brown, R., Easton, S., & Howard, P. (2014). Business finance. McGraw-Hill
Education Australia

Honig, B., & Karlsson, T. (2004). Institutional forces and the written business plan. Journal
of Management, 30(1), 29-48.
Gartner, W. B., Frid, C. J., & Alexander, J. C. (2012). Financing the emerging firm. Small
business economics, 39(3), 745-761
Brigham, E., &Ehrhardt, M. (2013). Financial management: theory & practice. Cengage
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Steingold, F. S. (2015). Legal guide for starting & running a small business. Nolo
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Allen, K. R. (2015). Launching new ventures: An entrepreneurial approach. Cengage


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