Table of Contents
1. Executive Summary
2. General Company Description
3. Products and services
4. Marketing Plan
1. Market Research
2. Economics
3. Product
4. Customers
5. Competition
6. Table 1: Competitive Analysis
7. Niche
8. Strategy
9. Promotion
10. Pricing
11. Proposed Location
12. Distribution Channels
5. Operational Plan
1. Production
2. Location
3. Legal Environment
4. Personnel
5. Inventory
6. Suppliers
7. Credit Policies
8. Managing Accounts Receivable
9. Managing Accounts Payable
6. Management & Organisation
1. Professional & Advisory Support
7. Financial Statements
1. Sales Forecast
2. Startup Expenses & Capitalization
3. Startup Expenses & Capitalization
4. 12 Month Profit & Loss projection
5. 3Year Profit Projection
6. Projected Cash Flow
7. Opening Day Balance Sheet
8. Break-Even Analysis
9. Break-Even Analysis
10. Startup Expenses & Capitalization
8. Appendices
9. References
Executive Summary
Description of business
Overload Cafe and Laundromat is a new business due to begin operations in January 2009.
The business is a Coffee shop and a Laundromat * a two in one service, intended to serve
the community in Pietermaritzburg, in the new section of the Midlands Mall, an area
where a laundromat will be ideally situated and needed for the area.
Our goal is to provide customers with the convenience of having their laundry done while
they have a bite to eat or catch up with a friend over coffee.
Ownership and Management
Overload will be a partnership. The partners will be John, Matthew and Chris who are
skilled in cooking, accounting and management respectively.
They are all active partners in the management decisions.
Objective
Primary objectives over the next year:
1) Complete start up activities and open the business to our customers in January 2009.
2) Attain and maintain a position as the leader in this field of business.
3) Secure agreements with local bed and breakfasts, schools and hotels in the area.
Marketing Opportunities
The restaurant will be upmarket. It will have an artistic look to it and on the one side of the
restaurant we are offering a Laundromat service. We have well trained waiters who will
make you feel comfortable and will attend to all your needs.
Our major target areas are the local students and businesses and the elderly.
Pietermaritzburg has many students. These students can drop off their washing on their
way to varsity and collect it on their way back. The elderly can sit and enjoy the coffee.
People enjoy change and convenience therefore we should have a successful future. As our
lives are becoming more busy people dont have much time to do there own washing,
cooking and socializing. We combine these three activities, giving more people more time.
Due to this convenience, the future of the business has the potential of becoming a
franchise.
General Company Description
Our business, Overload, will be a Coffee Shop combined with a Laundromat.
We will offer coffee for the customers while they are waiting for their laundry to be done.
If the customers are feeling peckish they can have a bite to eat, from a diverse menu.
Mission Statement
We pride ourselves in giving personal excellence, respecting others, reasonable rates and a
good atmosphere. Our loyalty will be for the customer as we believe they are our priority.
Our goals
To be the best Laundromat in the area and to supply a safe meeting place for the
community where they can meet with their friends and have a cup of coffee. We would like
to see our shop being the most popular and bringing new friends together and to have a
loyal customer following. We would also like to produce good quality food that will satisfy
all age groups in the community.
Our aim
Is to expand our business and get into the different districts. Our shop must be known
country wide by its excellent service. We want to make lots of money but bearing in mind
to keep our customers happy. We are striving for convenience therefore we want to locate
our shop in the expanded part of the Midlands Mall which is very easy to get to from the
N3.
We will market our shop to the youth sector as many of them are students and do not have
laundry facilities, holiday makers and the ordinary housewife. The coffee shop will supply
the finest coffee and healthy meals. We feel our business will grow rapidly as the
community needs a safe place to meet.
Short and Long -Term planning
Our business will produce a Long-Term Plan, perhaps 5 years into the future, and a
Short-Term Plan looking at the following 12 months. In a Short-Term Plan, risks can be
taken that will improve current profit. Our Long-Term Plan, will be to make lots of money,
we must make as much profit as possible without cheating the customers. But the business
must do more than just take full advantage of the current years profit. It must look at the
future years profits as well.
Success of the Company
Unhappy employees may result in low output, strikes and poor work ethic, which will in
turn have an adverse effect on the wealth of the partnership. Our business will strive to
provide good working conditions for its employees. We will make sure that our business
does not hinder the community by spoiling the environment which might give us bad
publicity, resulting in the lack of customers coming to our shop and penalties arising.
We will supply a clean shop and it will be environmentally friendly. We have a Chef, a
person skilled in the Management area and an Accountant that will keep a strict record of
the financials.
Products and services
Our Laundromat Cafe offers a laundry service and an upper market restaurant that has well
trained waiters. The customer must bring in their washing and while we wash the clothes
they can unwind and relax in our restaurant. Our business offers a full house washing
service. We sort out the clothes then wash them with our top brand washing powders. We
put sta-soft in the rinsing water so that the clothes have a soft feeling and they have a fresh
smell. We have many different types of scents to choose from. After the wash and sta-soft
we can dry and fold the clothes or we offer the exclusive package which is wash, dry, iron
and fold.
Not only do we give excellent rates for washing we also offer quality coffees, teas and
something to eat which will be an advantage over other Laundromats as they cannot give
this two in one service. We have a number of different varieties of coffees and teas which
will attract the coffee and tea lovers. Our prices are very competitive and we give many
specials
Discounts
Will be available for the loyal customers. We will also offer a free coffee after the 10th
laundry wash. If the customer brings in a very large laundry basket the sta-soft will be for
free. We will offer a special for our first time customers, they will get there first laundry
bag ironed for free.
Contract Document
We will pay R15 000 a month and we will sign into a one year agreement lease.The total
amount to set up the coffee shop section will be R55 000. The laundry section will be
approximately R90 000 (18 washing machines)
Marketing Plan
Market research
Market research is the process of systematically gathering, recording and analyzing data
and information about customers, competitors and the market. Its uses include; to help
create a business plan, launch a new product or service, fine tune existing products and
services, and expand into new markets. Market research can be used to determine which
portion of the population will purchase a service, based on variables like age, gender,
location and income level.
No matter how good your product and your service, the venture cannot succeed without
effective marketing. And this begins with careful, systematic research. It is very dangerous
to assume that you already know about your intended market. You need to do market
research to make sure youre on track. Use the business planning process as your
opportunity to uncover data and to question your marketing efforts. Your time will be well
spent.
There are two kinds of market research: primary and secondary.
Secondary research means using published information such as industry profiles, trade
journals, newspapers, magazines, census data, and demographic profiles. This type of
information is available in public libraries, industry associations, chambers of commerce,
from vendors who sell to your industry, and from government agencies.
Start with your local library. Most librarians are pleased to guide you through their
business data collection. You will be amazed at what is there. There are more online
sources than you could possibly use. Your chamber of commerce has good information on
the local area. Trade associations and trade publications often have excellent
industry-specific data.
Primary research means gathering your own data. For example, you could do your own
traffic count at a proposed location, use the yellow pages to identify competitors, and do
surveys or focus-group interviews to learn about consumer preferences. Professional
market research can be very costly, but there are many books that show small business
owners how to do effective research themselves.
In your marketing plan, be as specific as possible; give statistics, numbers, and sources.
The marketing plan will be the basis, later on, of the all-important sales projection.
SWOT Analysis:
Strengths:
1) Unique Enterprise
2) Offers more than one service in a single location.
3) Being a Partnership, it is easy to disable, (ie no red tape.)
Weaknesses:
1) Enterprise is reliant on Loan from bank for accumulation of Capital.- ie Enterprise has
