term paper on The coffee shop (Autosaved)

1.0 Introduction:

The coffee shop industry is a perfect competitive market because there are many competitors, many consumers, and low costs of entry and exit. However, despite the numerous coffee shops in Dhanmondi area , we have selected to set off a franchising based coffee shop named Barista Lavazza .Our selected place is not exactly in Dhanmondi, it is in the Mohammadpur area just beside the Dhanmondi area. This particular location is surrounded by a youthful population. One of the largest apartment blocks in the capital, Japan Garden City is in this neighborhood. Besides, PC Culture Housing Society, Mohammadia Housing Society, Baitul Aman Housing Society, Chad Miah Housing, Probal Housing and a number of residential areas has grown.

Barista Lavazza is an Indian chain of espresso bars that operates in South Asia and the Middle East. Established in February 2000[1] under the name Barista, it was taken over by Lavazza in 2007. The franchiser, "Barista Lavazza" is one of the fastest growing franchises in south Asia. As of 2009, the chain has 200 stores in India, not only in India but also in Middle east, Pakistan, Srilanka, Nepal, Bangladesh and some other country of south Asia it has been successfully operating its business ,with estimated annual revenue of 2 billion. Barista was the fastest brand to make it on the list of super brands and is ranked among the top 50 phenomena.

To succeed with our goal, and to encourage a healthy lifestyle, we will sponsor local sporting events, and give 3% of profits to local charities. We will build roots into the community. We will also market our products with local businesses, the popular Festival, to local hotels, and offer catering services through local party supply stores and through close ties to local hotel managers and executives.

Our primary goal for this plan is that it helps us secure this $100000 loan. Once we have done that, our goal will be to build value for our constituents, ourselves, our employees, our customers, and the community.

Coffee shops carry products that are affordable and acceptable to extensive consumer Segments: house blends and specialty coffee, hot and cold signature drinks, light meals (breakfast, soups, and sandwiches) and baked goods (cookies, muffins, bagels. A franchising coffee shop in a competitive market must offer all of the above and more. There are some reasons for choosing our start up business with a franchising firm named Barista Lavazza.

Franchising Business plan Page 1

1.1 Benefits of Franchising:

The business format is proven. We have the opportunity to build our capital as well as our earnings. It is our business and we are the owner and manager. The major banks are very supportive of good franchising.

The risk of business failure is reduced by franchising. Our business is based on a proven idea. We can check how successful other franchises are before committing our self.

Products and services will have already established a market share. Therefore there will be no need for market testing.

We can use a recognized brand name and trade mark. We benefit from any advertising or promotion by the owner of the franchise - the 'franchisor'.

The franchisor gives us support - usually as a complete package including training, help setting up the business, a manual telling you how to run the business and ongoing advice.

No prior experience is needed as the training received from the franchisor should ensure the franchisee establishes the skills required to operate the franchise. It is a tremendous opportunity as we are student; don’t have enough capital and experience.

A franchise enables a small business to compete with big businesses, more so than an independent small business, due to the pool of support from the franchisor and network of other franchisees. Therefore

We usually have exclusive rights in our territory. The franchisor won't sell any other franchises in the same territory.

Financing the business may be easier. Banks are sometimes more likely to lend money to buy a franchise with a good reputation.

We can benefit from communicating and sharing ideas with, and receiving support from, other franchisees in the network.

Relationships with suppliers have already been established.


1.2 Why Not Buying Existing One:

If, for any reason, the existing business has a poor reputation in some respect, then we may inherit this as well when you buy the business especially if we continue to trade under the same name.

We may get employees who are not necessarily people you would have selected. We might also inherit problems with employees, such as disputes with particular individuals, unreasonable expectations as to pay and working conditions, or trade union issues.

There may be supplier relationships that are not so good or key suppliers that have had bad experiences with the business in the past and therefore offer worse credit terms than they would offer to a start-up. Or suppliers offering good terms might want to re-negotiate on the change of ownership.

We could find that the business has a poor reputation amongst lenders. The business could have a black mark with certain finance providers. If the business has a record or late payment, disputes and default in payment to trade

creditors, you will inherit it. if we buy an existing business by purchasing a trading company (rather than just the

assets of the business) then the company we purchase will continue to have all of the liabilities it had prior to our purchase. Ordinarily, the buyer will ask the seller to disclose all such liabilities, and the buyer will have a claim against the seller for any undisclosed liabilities that surface after the transaction completes. Without adequate protection, though, the buyer could, in effect, end up with responsibility for liabilities that the business incurred prior to the date the buyer purchased the business.

Leases can be full of traps for the unwary. If you are taking over leasehold or other premises occupied by the business you are purchasing, you should get detailed legal advice as to the responsibilities of the business in relation to such premises, including rent, service charges, dilapidations and other matters.

The value of stock may not be as it appears. Some stock could be old, damaged, obsolete or otherwise non-saleable. Where the stock represents a significant part of what the buyer is purchasing, a stock-take at completion is usually sensible with an understanding that there will be a reduction in price for stock that is not likely to be useable or saleable.

The equipment, vehicles, etc owned by the existing business may be poorly maintained. Also, it may be difficult to establish a value for each such item.

Regulatory consents might not be assignable, so you will have to obtain new ones. In addition, the business we are purchasing might have a poor compliance record which we will inherit.

If we purchase the entity and take over its VAT registration, we may find that there are irregularities or liabilities associated with the entities VAT account that the seller did not disclose to you.


The tax assets of a limited company that we purchase may be of little or no value to us, and in any event if we start a new business we will get depreciation on equipment and certain other capital items that we might purchase when we start the business.

The sellers’ debtor book may be full of debts that are old or otherwise difficult to collect, and therefore could end up yielding little cash.

Non-compete clauses can be difficult to enforce, and must be carefully drawn if they are to be enforceable.

1.3 Why not scratch Strategy:

Cash flow - Our business may not have a positive cash flow for two years –So it will be very difficult for us to cope up with the situation.

Competitors – We may invest all this time, money and effort into our business and a large competitor targets our customers and offers them a similar product / service at below our cost - until our business has failed.

History - If we buy a business, we are buying something. we are buying history of the business trading; we have staff in place, equipment and premises in place, customers ringing in with orders on your first Monday morning. If we start a business, we have no history. Everything must be generated from scratch.

Married to the business - This is a common phrase from small business owners. It basically means, our hours of work and level of commitment is such that we cannot take a holiday, our business is always with us (day, nights & weekends) .

Suppliers - Suppliers may not extend us credit as our business has no history, so we may have to pay upfront for our goods, and we may not collect money from our customers for those goods for 90 - 120 days. This is very detrimental to cash flow.

Unproven product and operation- Under this strategy we will have a new product and an operational system. It does not have any past record of success. So, there is always a chance of uncertainty of risk.

Risk of inadequate planning-The success of any enterprise depends on systematic and effective plan and its execution. So, our new team does not have any managerial experience. That’s why it is the subject of risk associated with improper planning.

Overall we have lack of knowledge and market reaction –Some hidden factors may be strong barriers in the way of the success of business.


1.4 Objective:

Our first objective is to open the Franchise restaurant six months from the day that our site is confirmed by the realtor. Our site was confirmed, therefore our goal is to be up and running by December 2015. Our P&L and Balance Sheet all begin in 1st January 2016.

The Barista Lavazza will turn a profit by the beginning of our second fiscal year of operation

Repeat customers will constitute 70% of our overall business by the end of year one. We will track customer habits and loyalty through a local marketing research firm, and publish the results of these findings to our employees once a quarter.

1.5 Mission:

Our mission is to bring to market the tastiest and healthiest fast food in Dhanmondi, at a slight cost premium over other fast food restaurants. Our high standards of quality and cleanliness will establish our reputation as the cleanest fast food restaurant in Ashland.

Our community is as important to us as making a profit. We will devote 2% of profits to a local women's shelter, and 1% to a local environmental conservation fund. This company is founded on the concept that good works and good deeds not only serve the needs of the community, but will also keep our company healthy and committed to the success of its customers.

1.6 Keys to Success:


The most important key to success is our location. It is very important that our location live up to our expectations, and is convenient to as many potential customers as possible.

Another key to success lies with our ability to execute our plan. If we neglect one or more aspects of our plan, whether that is our numbers, our employees, our cleaning and food standards, or our commitment to customers, we will not succeed and thrive.

Promote multiple sales – A coffee shop will never make enough money to pay the bills from coffee sales alone. Coffee may be the prime motivator for customers coming to the business, but they must leave with multiple sales if you are going to be successful. As a target, coffee should be no more than 40% of your weekly sales and two item sales per customer transaction means you are getting it about right. So make sure the traditional coffee accompaniments (muffins, cookies, cakes) are close by at the point of sale, and the coffee shop offers cold food, cold drinks, and hot food to ensure the best chance of multiple sales.

2.0 Company description:

The Barista Lavazza will be a coffee house / café located in the Mohammadpur area, it will be located in the newly completed Market Square Plaza just beside the Mohammadpur central college. The café will serve gourmet coffees, espresso and drip coffee, lattes, and smoothies. The simple pastry offerings may vary with seasonality but the primary line will be muffins, breads, cookies, scones, and rolls. The café will be owned and operated by Ariful Islam. Tariqul Isla Masud , Kazi Karima and Segupta Edil Haque. The café will be open for business Sunday –Fryday 9-11.

2.1 Ownership


The Barist Lavaza will be owned by Ariful Islam , Tariqual Islam Masud , Segupta Edil Haque and Kazi Karima . Among the four members Tarikul Islam Masud and Kazi karima has finance related experience as they are employees of Bank. On the other hand Ariful Islam who has profetional degree (ACCA) can handle account and budgeting related experience.

2.2 Legal form

The Barista Lavazza will form as a franchising corporation.

2.3 Start up summery

Total start up cost will be 8,40,000.The rent is 40,000 taka a month, with a three-five-year lease available. The site consists of 1500 square feet of leased space consisting of a dining room, a coffee bar, two restrooms, and a storage room in back. To be used as a restaurant, this storefront needs to be plumbed and wired appropriately. Painting, new floors, and countertops are also needed. A custom coffee bar needs to be built. .The coffeehouse equipment will consist of two commercial espresso machines, air ports and a commercial blender, commercial brewer, top loading coffee bins, barista syrups, cold drink dispenser, frothing equipment, a commercial refrigerator, microwave and stainless steel prep bar. The cost for the equipment is 150,000 taka. The furniture will consist of leather couches, and chairs (purchased at auction), coffee tables, bookcases, and window treatment. The artwork will come from local artists .Total cost to furnish is 350,000 Tk (with furniture)

2.4 Location and facilities


we have selected to set off a franchising based coffee shop named Barista Lavazza .Our selected place is not exactly in Dhanmondi, it is in the Mohammadpur area just beside the Dhanmondi area. This particular location is surrounded by a youthful population. One of the largest apartment blocks in the capital, Japan Garden City is in this neighborhood. Besides, PC Culture Housing Society, Mohammadia Housing Society, Baitul Aman Housing Society, Chad Miah Housing, Probal Housing and a number of residential areas have grown.



3.0 Product and service:

3.1 Product and service description:

Coffee Barista Lavazza offers a wide range of freshly prepared products to suit every need - from breakfasts, sandwiches, rolls, foldovers and salads, to juices, smoothies, bakes and specialty coffees.

Barista Lavazza hero products are four types of coffee(regular coffee, cold coffee, Espresso, cappuccino) , sandwiches, juices and smoothies, all of which are showing phenomenal growth world-wide. Currently, the growth of sandwiches outstrips that of burgers globally. There is also a growing trend towards health and wellness, with consumers taking an active interest in eating fresh, healthy foods that don't compromise on taste.

3.2 Inventory Management N/A.

3.3 Warehousing and Fulfillment N/A.

3.4 Future Products/ServicesYoung families which comprise the third largest market share in Overland Park are often overlooked in the coffee market. Coffeehouses traditionally have not been considered kid’s friendly. To overcome this problem, the Barista Lavazza has long term plans to overcome this plan: A combination indoor play area / coffee bar. This concept allows parents an opportunity to

.


4.0 Market analysis:

Mohammadpur area is actually award winning place for doing business. It is at the core of one of the most dynamic local markets in Dhaka city. This particular location is surrounded by a youthful population. One of the largest apartment blocks in the capital, Japan Garden City is in this neighborhood. Besides, PC Culture Housing Society, Mohammadia Housing Society, Baitul Aman Housing Society, Chad Miah Housing, Probal Housing and a number of residential areas has grown. Most important thing is that this area is surrounded with many private universities that have a huge young generation.

4.1Competitive LandscapeConsumer taste and personal income drive demand. The profitability of individual companies depends on the ability to secure prime locations, drive store traffic, and deliver high quality products. Large companies have advantages in purchasing, finance, and marketing. Small companies can compete effectively by offering specialized products, serving a local market, or providing superior customer service. . Coffee shops compete with businesses such as convenience stores, gas stations, quick service and fast food restaurants, gourmet food shops, and donut shops.

4.1.1 Market size:In Dhanmondi area more than 50 coffee shops have been doing their business successfully. Most of them are profitable. Day by day number of coffee taker and number of first food taker is increasing rapidly. As a result the market size is being large.


4.1.2 Main Competitors

Coffee World Coffee Shop·House-44, Road-27(old)

Bread & BeyondCafe·House - 56 (Ground Floor), Satmasjid Road

Cafe Mango Café

AJO 3.9 Cafe·Road 7A

Apon Coffee House Coffee Shop·Sahid Baki RoadOpens at 12:01

Gloria Jean's Coffees Coffee Shop·Bir Uttam Mir Shawkat Sarak

Chain coffeehouse with flavored roastsCilantro 4.2 (28)Cafe·49, Satmasjid Road

Gloria Jean's Coffees Coffee Shop·Rd No. 14A

Pappa Roti 4. 0 Cafe Shop # 04, Ground floor, F. R. Tower, Kemal Ataturk Ave

Club Wheels 4.4 Restaurant: Rd No 5.


4.1.4Gathering data:We have collected data from two sources –primary and secondary sources. For collecting primary data we physically visited some coffee shop in Dhanmondi area, and collected price and menu they provided. We also observed the environment and serving system of those restaurants.

4.1.5 Price list of our competitors:

Compotators name Regular coffee

Cold coffee

Regular

Tea

Green

Tea

Café Hello Dhanmondi TK.107 TK 177 TK.47 TK.67

Gloria Jean’s Tk 115 Tk 180 Tk 55 Tk 70

Café Mango Tk 107 Tk 170 Tk 42 Tk 70

AJO TK 115 TK 172 TK 45 TK 68


4.1.6 Market SegmentBarista Lavazza is targeting 3 top segments of the population representing a significant portion in this area.

Younger family with busy, upscale life style, Median age of 34. Enterprising professionals - Young, highly educated, working

professionals, Single or recently married, median age of 32. Prosperous Empty Nesters -Well educated and experienced, residents

are enjoying the transition from child rearing to retirement. Median age is 46.

4.1.7 Market trends: Coffee and tea is the drink of choice of many people across the country. Every morning thousands of people rely on their morning fix to get going for the day.

4.1.8 Market growth: In Bangladesh recently the trend is increasing and more and more urban and semi urban population is switching to coffee over tea.Growth rate of the market is around 20%.and is expected to remain in double over the next decades

5.0. Marketing strategy and implementation

The Barista Lavazza will provide a quiet and relaxing environment to enjoy coffee and smoothies and an opportunity to visit with friends, catch up on one’s email, or read a chapter of a book. The café’s baristas will be extremely knowledgeable and offer assistance in any coffee purchase while simultaneously providing customers with outstanding service.

5.1 SWOT analysis:


The SWOT analysis examines the café’s strengths and weaknesses that need to be addressed. Further, this section examines the opportunities presented to Café as well as potential threats

5.1.1 Strength: As it is a franchising s that’s why it will provide a unique coffee shop concept. The Barista has a years of experiences that will be helpful us to operate the business.5.1.2 Weakness: Though it is a franchising business after all we have a lack of experiences. Also as we are new comer in business we have lack of capital to handle.5.1.3 Opportunities:

Growing market is the big opportunities as the number of coffee drinkers is increasing day by day, Encouraging coffee drinkers to become coffee connoisseurs is the key to continued growth.5.1.4 ThreatsThe café Mango is currently running in the same area .It could pose significant threat to market share. More over the political situation in Bangladesh is unrest and totally unexpected that could be a huge threats

5.2 Marketing Strategy and Positioning The Bazrista Lavazza utilizes a focus strategy on its market. By specifically targeting three primary segments they can cater specifically to their needs. 5.2.1Senior market (age 45+)

The Barista Lavazza will target this market simply by its well selected location. Although this demographic group could readily drive downtown, they prefer a local café to unwind and relax and historically become some of the most loyal patrons.

5.2.2Newly Hired Employees


The café will attract regular customers (weekly or more) particularly the newly employed first job) by providing free WIFI services and providing interesting games in the customer area.

5.2.3Young Families: The third targeted markets, younger families, often find that coffeehouse is not ‘kid’ friendly. The company has long term plans to create a combination Coffee shop / play area so that parents and caregivers will have a place to meet with other adults while the children can enjoy the bounce houses, slides and indoor playground equipment.

5.3 Positioning StatementThe Barista Lavazza is a gourmet coffee lover’s gem. It is truly one of a kind coffee house offering outstanding gourmet coffees and blends, served by enthusiastic and knowledgeable baristas, in a warm, relaxed environment. It is the place to go to visit with friends.

5.3.1Pricing Strategy: The Barista Lavazza primarily utilizes competition based pricing. The café does not utilize coupons and discounts (other than opening promotion) because they believe that the most valuable customer demographic of dailyCoffee consumers are not influenced by discount programs or coupons.

5.3.2Promotion and Advertising Strategy

Online Advertising-The Barista Lavazza will advertise regularly on popular social media sites, such as Face book. Compared to traditional print advertising, this is a cost effective tactic that will allow them to reach prospects in a highly targeted way (e.g., based on criteria such as age, gender, geography, etc.).


Web Site-the Barista Lavazza will develop a simple Web site, which will provide basic information about the business, the menu, and links to their presence on the aforementioned social media channels.

Radio Advertising-During the first six months of operation, and during the busy holiday shopping season, the business will advertise on local radio stations.

Television and Newspaper- The most effecting way to get most of the customers touch is newspaper and Television. Especially on holiday and before special festival the business will provide television and newspaper.

5.4 Web site: The Barista Lavazza will have a simple website identifying its menu items of gourmet coffees, smoothies and pastries, along with the address,Map and hours of operation. The website will also have a calendar of any upcoming events or sponsorships. The site will also have links to their social media sites –such as Face book, Twitter, and blocks.

5.5 Sales Strategy:

The Barista Lavazza will use the following methods to increase sales revenue:

The menu will focus on the most profitable products sold. The café will always draw customer attention to the most profitable products


Monitor flavoring inventory –Excess flavoring inventory ties up capital and valuable back room space for storage. The café will utilize 4-6 varieties, including sugar free offerings.

Control waste and theft –audit sales and inventory reports to evaluate ingredient waste due to inefficient preparation, returned drinks and employee consumption. Retail locations can easily waste 20% or more of their daily sales these three key categories, which is a substantial and unnecessary loss.

Monitor and evaluate hours of operation.

Run employee sales contests –The Baristas are the salespeople and have a great deal of influence over the customer ordering process. All baristas will have some form of sales and customer service training to make each transaction active, rather than passive. Sales contests will emphasize high margin items or cross selling.

5.6 Sales forecast

The sales forecast assumes a conservative 25% increase in revenues during Year Two and 35% increase in Year Three. The following chart shows estimated sales over the next three years.


Annual sales forecast Year 1 Year2 Year3

Product/service one 7,00,000 912500 12,31,875

Product/service 4,15,000 500000 675000

Product/service 4,15,000 500000 675000

Total income 15,30,000 1,912,500 2,581,875

6. Organization and Management

6.1Organizational Structure:-The barista Lavazza is a franchising company

6.2. Management TeamThe Barist Lavaza will be owned by Ariful Islam , Tariqual Islam Masud , Segupta Edil Haque and Kazi Karima . Among the four members Tarikul Islam Masud and Kazi karima has finance related experience as they are employees of Bank. On the other hand Ariful Islam who has professional degree (ACCA) can handle account and budgeting related experience.

6.3Management Team activities The Barista Lavazza will rely on its POS (Point of Sale) system to generate daily accounting and cost activity reports. Mr. Ariful Islam will supply these to an outside bookkeeper for preparation of annual income taxes.


6.4Personnel Plan-

Initially the café will hire 1 manager, 4 baristas, and 2 part time servers. In Year 2, the café plans to hire 1 additional full time barista.

Personal Plan

Position 1 st year 2 nd year 3 rd year

Manager 1,08,000 1,08,000 1,48,000

Full time Barista 60,000 60,000 60,000




Full time Barista 60,000 60,000

Part time employee 36000 36,000 36,000

Part time employee 36000 36,000 36,000

Total personal cost 4,20,000 4,80,000 5,20,000


6.5 Board of Director: N/A.

7.0 Financial Plan-The financial plan will cover the following:

Required Cost of Start-Up

Profit and Loss

Cash Flow

Balance Sheet

Financial Ratios

7.1 Important Assumptions:

The sales forecasts conservative and assumes a 5% Increase in Year 2, and a 10% in Year 3.

The analysis accounts for economic seasonality –wherein some months revenues peak (such as holidays) and wane in slower months.

The analysis assumes the owner will take a much smaller salary compared to his baristas; at any time it is assumed that owner’s withdrawal is available

at his discretion.

Sales are cash basis –non accrual accounting.

Moderate ramp-up in staff over the 3 years forecast. The average barista salary in 2012 is $50,000.

In general, most cafes have an 85% gross profit margin.

In general most cafes have a 3% net profit margin


7.2 Start-Up CostsFollowing are the needed start-up costs associated with the Barista Lavazza.

Barista Lavazza Start Up cost

Operating Capital Amount

Salary & wages

Insurance premium 5000

Beginning Inventory

Legal & Accounting fees

Rent Deposit 100000

Utility deposit

Supplies 20000

Advertising and promotion 50000

License

Other initial cost 15000

Working capital(cash on hand) 150000

Total start up cost 3,40,000


Start up asset

Start up Asset Amount

Real state

Building

Lease hold improvement

1,50,000

Equipment 1,50,000

Furniture 2,00,000

Vehicles

Other asset

Total start up asset 5,00,000

Total required start up cost

3,40,000+5,00,000=8,40,000


7.3 Source and use of funds:

Source funds: use of funds:

7.4

7.4 Break Event Analysis:

Total fixed cost- 7, 00,000.

Selling Price per unit- 100.

Variable cost per unit-50.

Break Event Point(in amount)=(total fixed cost)/(C/S ratio)

So, The Barista Lavazza BEP is=7,00,000/(50/100)=14,00,000.


Source funds amount

Owner injection 5,00,000

Commercial loan 3,40,000

Commercial mortgage

---------

Line of credit

----------

Total source of fund

8,40,000

use of funds amount

Fixed asset 7,00,000

Operating capital

1,40,000

Other sector ---------------

Total use of funds

8,40,000

7.5 Barista Lavazza projected profit &loss account.

Barista LavazzaProjected Profit & Loss Accounts (Statement of Comprehensive Income)

For the year ended…2015……………….

Particulars Year-1 Year-2 Year-3

Revenue (Sales) 1,530,000

1,912,500

2,581,875

Cost of sales 560,000

680,000

930,000

Gross Profit 970,000

1,232,500

1,651,875

Less: Operating ExpensesSalary & Wages

420,000

480,000

520,000

Rent 320,000

320,000

320,000

Advertising Expenses 63,000

35,000

35,000

Insurance 25,000

10,000

10,000

Selling Expenses 40,000

20,000

50,000

Interest on loan 34,000

34,000

34,000

Depreciation 48,000

50,000

50,000

Miscellaneous

20,000

10,000

15,000

970,000

959,000

1,034,000

Profit before tax -

273,500

617,875

Tax -

41,025

92,681

Profit after tax -

232,475

525,194

Franchising Commission (25%) -

58,119

131,298

Net Profit -

174,356

393,895


7.6 Projected Cash FlowThe statement of cash flow shows the incoming and outgoing cash of the business.

1st year 2nd year 3rd year

Sales 1,530,000 1912500 2,581,875

Opening balance 840,000 198000 401,500

Total Inflow 2370000 2110500 2983375

Salary & Wages 420,000

480,000 520,000

Rent 320,000

320,000 320,000

Advertising Expenses 63,000

35,000 35,000

Insurance 25,000

10,000 10,000

Selling Expenses 40,000

20,000 50,000

Interest on loan 34,000

34,000 34,000

Loan Refund -

- 340,000

Miscellaneous 20,000

10,000 15,000

Other current Assets -

50,000 25,000

Prepaid Expenses 50,000

- -

Tax -

- 41,025

Franchising Commission -

- 58,119

Fixed Assets purchase 500,000

50,000 -

Purchase 700,000

700,000 900,000

Total Outflow 2,172,000

1,709,000 2,348,144

Cash & Bank Balance 635,232


198,000 401,500

7.7Barista Lavazza Financial statement:

Barista LavazzaProjected Balance Sheet (Statement of Financial Position)

As at …….

Particulars Year-1 Year-2 Year-3

ASSETS:

A.Non Current Assets

500,000

550,000

550,000

Less: Depreciation 48,000

98,000

148,000

452,000

452,000

402,000

B. Initial Cost 340,000

340,000

340,000

C. Current Assets: 388,000

661,500

890,232

Accounts Receivable

-

-

-

Closing Inventory 140,000

160,000

130,000

Prepaid Expenses 50,000

50,000

50,000

Other Current Assets

-

50,000

75,000

Cash & Cash Equivalent 198,000

401,500

635,232

TOTAL ASSETS (A+B+C) 1,180,000

1,453,500

1,632,232

FUND & LIABILITIES:

D. Fund:


Capital Fund 840,000

840,000

1,014,356

Add: Profit during the year -

174,356

393,895

Total Fund 840,000

1,014,356

1,408,252

E. Liabilities:Bank Loan

340,000

340,000

-

other liabilities -

99,144

223,980

Total Libilities 340,000

439,144

223,980

TOTAL FUND & LIABILITIES (D+E) 1,180,000

1,453,500

1,632,232


Documents

term paper on The coffee shop (Autosaved)