Coffee Shop In Singapore Marketing Essay

Published Date: 23 Mar 2015

This business report aims to provide in detail the information of an investor as well as the basic strategic business plan that necessary for operating and establishing initially of One Shot coffee shop. This plan outlines the following contents such as market analysis, company overview, operating plan, products and services, sales and marketing strategy, risk assessment, projected financial report and business growth plan.

President of One Shot coffee shop is Mr. Wang and the vice president of One Shot coffee shop is Mr. Kun, vice president has a 45% share of the company, and president has a 55% share of the company. President of the company also is a CEO of the coffee shop, the CEO Manager the employees, and the vice president in charge with the goods supply.

A vision can be defined as an eye chart, sometimes also referred to as the Company in the picture, but it is so much more than this. Your vision statement is your inspiration, your strategic planning framework.

An eye chart, can be applied to a single sector of the entire company or the company. Whether all or part of an organization, the eye chart to answer the question, "Where we want to go?"

Become the leading branded coffee shops in the region to business casual, taking into account the mood of consumer. About three years to recover the total investment cost, and gradually began to profit.

2.2 Mission

Mission statement is a statement of the purpose of company or organization its reason for existing.

The mission statement should guide the actions of the organization. spell out its overall goal, provide a path, and guide decision-making. It provides" the framework or context within which the company's strategies are formulated. Hill, Ch, Jones, G. (2008)

To become a leader in this industry and provide a stable and reasonable income for the owners of the place for investment.

(2) The successful completion of the construction and development of the stores, and gradually withdraw the investment capital.

3.Product and service

Product and service are when a firm offer a mix of both products and services, in compare to the traditional focus on products. As define by a marketable set of products and services capable of jointly fulfilling a user's need.

largely motivated by the need on the part of traditionally oriented manufacturing firms to cope with changing market forces and the recognition that services in combination with products could provide higher profits than product alone.Face with shrink markets and increased commercialization of their products, those firms saw service provision as a new path toward profits and growth.

3.1The main product and service

Cappuccino

With less milk than a latte, cappuccino offers a stronger espresso flavor and a luxurious texture. To make it properly require more skill and attentiveness. Arguably the most important things is frothing the foam to velvety perfection as the milk steams something One Shot coffee shop barrister take great care to achieve . The milk mous tache that clings to your upper lip is proof we've made yours right. And we may say, you wear it well.

Espresso

Smooth and versatile Espresso Roast is the very heart and soul of One Shot. Its rich flavor, lingering aroma and caramel sweetness make it the perfect found for lattes, cappuccinos and all One Shot coffee shop espresso based beverages. But you can also enjoy it all by itself indeed, that might be the best way to discover its nuances.

White Chocolate Mocha

White chocolate fans will tell you they like it elegant, creamy taste. Its smooth subtle, is a perfect complement to a bolder taste. There is no bolder than we are rich, full-bodied espresso tastes. And it turns out, there is no better way to experience the decadent white chocolate, rather than in this delicious beverage.

Caramel Macchia-to

Scores of people are passionate devotees of the signature beverage. So bewitch are they, you'd think it was any kinds of magical elixir. Well there's no hocus pock here. We'll tell you exactly what goes into it: creamy vanilla flavored syrup, freshly steamed milk with a topping of velvety rich foam, one intense hit of One Shot Espresso roast, a finish of buttery caramel drizzle. okay, we take it back. It sounds like is magic to us. but it taste even better.

Vanilla Latte

There are many delicious ways to join espresso, but one of that couldn't be more classic is that Vanilla latte. Just need a few ingredient make up that favorite: One Shot Signature espresso. Creamy steamed milk and our classic vanillas syrup. Simple, .Satisfying always.

4.Industry summary and analysis

4.1PESTEL

This sector examines in detail the external environment as well as the macroeconomic forces include the current issues such as the global financial crisis, inflation, etc. facing the coffee industry operates. In this case, an analysis and estimation of the main external environment factors to the One Shot coffee shop by using the PESTEL Analysis.

Any analysis of the successes and failures facing a SME must understand the macro environment within which a SME operates (Barney and Hesterly, 2008).

The PESTEL framework is designed to provide managers with an analytic-al tool to identify different macro-environment factors that may business strategies, and to assess what difference environmental factor may influence the business performance now or in future. The PESTEL framework include six types of important environment influences: political, economic social, technological, environmental and legal factors. These factors would not be seen as independent factor. Factor such as a technological advances may probably affect the social and economic conditions in different markets.

4.1.1Political factors

The political factor is to what extent the government intervention in the economy. Specifically, political factors, such as tax policy, labor law, environmental law, trade restrictions, tariffs, and political stability. Political factors may also include goods and services, the government should provide or provided (merit goods), the government does not want (demerit goods or advantages of bads). In addition, governments have great influence in health, education, and a national infrastructure

It is known that Singapore is a very stable country with low social risk, at the same time; the government of Singapore is encourage more and more tourists to Singapore, ;like the government building the casino in Singapore, the government also want more tourists come to Singapore. The government agencies in Singapore play a very active role in promoting Singapore as a global destination. Under the guidance of STB (Singapore tourism board) it takes majors to promote itself as a MICE destination. For such a good political factors let the business in Singapore get more benefit.

Hence, the One Shot coffee shop may run its business stability and benefit its investment profitability under Singapore's strong government policies.

4.1.2Legal factors

Legal factors include discrimination law, consumer protection law, antitrust law, labor law, health and safety laws.These factors may affect the Company's operations, its cost, and the demand for its products.

As Singapore's law is very strict and the government will protect Intellectual property rights and doesn't allow other companies to infringe the copyright and intellectual property so it is very good for company to compete with each other fairly.

For the One Shot coffee shop in Singapore its intellectual property rights had been protect under the Singapore's legal.

4.1.3Economic factors

Economic factors such as economic growth, interest rates, exchange rates and inflation rate. These factors have significant impact on the enterprise how it works, and make a decision. For example, interest rates affect the company's cost of capital, and therefore, the extent to which the business growth and expansion. Exchange rates affect the cost of export goods and the supply and price of imported goods in the economic

Based on trade, economics (2011), "Singapore's per capita GDP (gross domestic product) is higher than most developed countries." In fact, with the economic development of Singapore's economy diversified, open trade policies, international communication links, and attract multinational investment.

Singapore is a vibrant economy, and its economy is heavily dependent on exports. From 2007 to 2010, 7.62% of the to enjoy average GDP growth. It enjoys a higher per capita income than most developed countries.

February 14, 2007, the Singapore government announced that the annual economic growth of 7.9% in 2006, 7.7% higher than originally anticipated. Singapore's unemployment rate was 2.2%, around February 20, 2009. As of August 7, 2010, Singapore is one of the world's fastest growing economies, the growth rate was 17.9% in the first half of 2010.

Singapore is a highly abundant natural resources. Have advanced the state of the infrastructure, including country hotels, roads, transport facilities, telecommunicate facilities, aviation services.

One Shot coffee shop might be an opportunity in such a good condition.

4.1.4Social factors

Social factors include the cultural aspects of health consciousness, population growth rate, age distribution, career attitudes and emphasis on the safety. Trend of social factors on the impact of the company's products and needs, the company's operations. For example, the aging of the population may mean a smaller, more willing workforce (thus increasing the cost of labor). In addition, the company may change to a different management strategy, in order to adapt to these social trends (such as to hire older workers).

Social environment in SMEs is concerned about innovation, risk taking, and large-scale transformation to social problem solving (Kuratko, 2008).

Singapore has a very vibrant cosmopolitan culture. It has a very strong education system. Everyone is comfortable with English. Along with business tourism opportunities it has great facilities for leisure activities such as state of the art shopping malls, casinos, resorts, restaurants etc. Thus it can be concluded that the social factors are very supportive for the coffee industry in Singapore. Singapore is considered as a very safe city.

4.1.5Technological factors

Technical factors, including the technical aspects, such as R & D activity, automation, technology incentives, technological change speed. They were able to determine the access threshold, the minimum efficient production level and influence outsourcing decisions. In addition, changes in technology will affect the cost, quality and lead to innovation.

There is no doubt that the modern technology not only improves all the coffee equipment's quality and productivity. but also accelerate the commercialization process of the coffee business.

SMEs primarily face challenge of technologies in transportation, utility, health care, electrical, and computer industries. Technological forces can create new markets, reduce and eliminate cost barriers between businesses (David, 2009).

Using a professional Espresso coffee machine made by Italian, never on the details of some coffee neglect.

4.1.6Environmental factors

The environment factors such as the weather and climate change.

The One Shot coffee shop will set hotel royal queens at 12 queen street Singapore. the weather and climate change doesn't affect One Shot coffee shop.

4.2SWOT

Humphrey, Albert (December 2005). SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Limitations, Opportunities, and Threats are involved in one project or in a commercial venture. It involved specifying the objectives of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective.

By using SWOT analysis can assist One Shot coffee shop to identify the internal weakness and external threats factors, then improve the performance and search the benefits from opportunities and counter the threats as well.

4.2.1STRENGTHS

The freshest coffee. Now cook baked transported on a weekly basis, to ensure that the beans are in the peak of tasting

The most rigorous training. Three months to six months rigorous training of professional coffee Daren implement the recipe from the coffee to the professional knowledge of coffee plus Leadership and Service concept, inject One Shot passion for each cup of coffee.

The most professional and coffee.  A professional Espresso coffee machine of Italian, never on the details of any coffee neglect.

The most comfortable environment.  Most spacious seating space, with the tone of European art-style decor, and free wireless Internet service offers consumers the most comfortable and convenient dining environment

The special location. In this hotel just have one coffee shop inside.

4.2.2WEAKNESSES

Affected by the location, almost customers are the person who is live in this hotel.

One Shot coffee shop is a new company, almost customer are like the Starbucks.

4.2.3OPPORTUNITIES

An unfulfilled customer need. There is an opportunity to increase the customer base by advertising as well as developing the new products and services.

The merger or other types of expansion strategy can be considered as the opportunities factors when this coffee shop business plan get to the stage of maturity.

The coffee shop set in hotel industry is a new developing market.

4.2.4THREATS

Price wars with competitors. Some of competitors strive to earn a higher market share by selling its products and services at a lower price.

New entrants and cost: the threat of new entrants in the market is a critic elements. This is a growth factor in the development, but also the threat of new entrants,intense competition and rapid deployment in the target market.

4.3 Porter's five forces

The 'porter's five forces model of competitive analysis is a widely used approach for developing strategies in many industries.

Indeed, the five forces model can determine the kinds of competitive forces are the firm staffs facing and measure the force on how strong are there in different parts the company facing. The figure shows the porter's five forces model of competition below.

Porter's five forces model of competition

Threat of new entrants

Bargaining power of buyers

Bargaining power of suppliers

Rivalry a mongst existing firms in the industry

Threat of substitute products or services

Porter Five force

High

Medium

Low

Competitive Rivalry

√

Threats of New Entry

√

Bargaining Power of Customers

√

Bargaining Power of Suppliers

√

Threats of substitution

√

(Source: diagram created for this assignment)

4.3.1Threat of new entrants (high)

The threat of new entrants is the threat of new competitors in the industry, existing competitors. A profitable industry realized profits will attract more competitors. If these new entrants is very easy to enter the market - low barriers to entry - the company has been a threat to competition in this market. More competitive - while consumer demand increases or increase capacity - which means less profit to go around. According to the power of one of Porter's five forces model, the threat of new entrants, shape the competitive structure of an industry. Porters definition of the threat of new entrants, and completely changed the way people look at an industry competitive.

Coffee shop is a low expensive shop , and One Shot coffee shop is a new brand in Singapore,the required investment is low. The major cost includes the real estate and coffee related equipments. Franchise is also an option that investment risks are low,Barriers to entry are low, thus the threat of new entrants are high due to low switch cost, and low capital requirements, and low restrictions. So the threat of new entrants is high.

4.3.2Threat of substitute products or services (high)

The threat of substitute products or services: product substitutes and other products to perform the same or similar functions. Professor of microeconomics, more alternatives, the demand for the product becomes more elastic. The elasticity of demand is the consumer price sensitivity, which is equivalent to less certainty of profits. An attractive alternative to price the price of alternatives as the upper limit of the price of the underlying product. An attractive alternative behavior, depressed prices to reach its profit potential of the industry.

Improved quality, alternatives alternatives quality is high, there are more and more pressure, the increase in the quality of the main product. Low switching costs passed on to consumers switching costs for consumers can come in the form of currency conversion costs cost or lifestyle. The monetary cost to the price of alternative products, and the cost of living is subjective, it is difficult to determine. In either case, more easily and lower cost is to switch to the alternative, the Alternate higher threat.

Other substitutes tea, juice, soft drinks, alcohol and other coffee and non-coffee related drinks. given the sensitivity of consumers to price of coffee and a number of substitute available, the significance of the threat from substitutes is high.

4.3.3Bargaining power of suppliers (medium)

Powerful bargaining power of suppliers, the seller and the buyer, the seller greater influence. This effect can be used to reduce the profit the buyer more favorable pricing, the limit product or service quality, or part of the cost is passed on to the buyer, the supplier is powerful.

coffee is supplied by a variety of farms from South America or Africa. Third of all the coffee farms are less than one third. Industry main hedge position by diversifying those supplier portfolio.

The power of suppliers is medium since there is a wide array of farmlands that supply specialty coffee beans, however, the farmers do supply a differentiated product.

4.3.4Bargaining power of buyers (Low)

Porter's five forces buyer bargaining power is consumer pressure, can play on the enterprise, allowing them to provide higher quality products and better customer service, lower prices. In the analysis of the bargaining power of buyers, industry analysis, from the seller's point of view. According to Porter's five forces industry analysis framework, the buyer power of the forces shaping one of the competitive structure of an industry.

The number of buyers in the industry is large, and their purchases are low volume. Industry's products, service and experience are differentiated.A cup of coffee does not represent a significant fraction a buyer's cost of living.

The buyers' power is low because of that they lacked negotiation power and the ability to force down prices and pit competitors against each other.

4.3.5Rivalry among-st existing firms in the industry (Medium)

Competitiveness increasingly competitive, when one or more competitors see an opportunity to grow, and competitors' customers, or feel the need to attract more customers because of low profitability.

Competition in the industrial competitiveness is an important issue, usually there will be many competitors are trying to carry out a sufficient rate of return on investment, profitability is generally low. Several competitors - those who have already established a competitive advantage - the profits of treason, but the more competitive competition means that the balance of payments, and generate enough cash to survive the struggle.

Retaliation competitive competition intensified, the reaction of competitors, an aggressive strategy, with its own offensive or defensive strategy.

This kind of competition is often the reasons for lower prices, competitors use a marginal contribution to the cost of administrative expenses. However, the competitiveness of the competition by fighting in advertising, product introduction and customer service.

One Shot coffee shop is a coffee shop in the hotel ,The intensity of rivalry is medium because of the numerous competitor within the industry, despite it being a growing at 15% annually. On the other hand, there is no evidence of price or advertising wars within the industry.

5.Market strategy

One Shot Culture's marketing strategy will be focused at getting new customer, retaining the exist customers, got customers to spend more or come back more often. Building a loyal customer base is a paramount importance since such customer core will not only generate most of the sales but also will provide favorable referrals.

5.1Competitive Edge

One Shot culture, positioning itself as a unique coffee bar, its customers can not only enjoy the perfect coffee a cup, but also spent time in the surrounding environment. Comfortable sofas and chairs, dim lighting and quiet relaxing music will help customers relax from everyday stress, to distinguish single from incumbent competitors culture.

5.2Sales strategy

The shooting cultural balistas the processing sales transactions. In order to speed up customer service, and at least two employees to provide services to customers of an employee, customer orders will be ready, the other employees will be taken care of sales transactions. All data will be recorded on the sales of computer point-of-sale terminal in the subsequent analysis for marketing purposes.

In order to build its customer base, we will use the banner of a single culture and flyers, customer referrals with other businesses, communities and cross-promotional. At the same time, the customer retention program will be used to ensure that customers come back and spend more coffee.

5.3Marketing mix

'The ''Marketing mix'' is a common words that used to describe a various choices which the company must process the procedure of bringing a specific services or products to the market'. Besides, it is also known as the four P's which include the Price, Place, Product and Promotion. (Kamil et al 2009)

5.3.1Product strategy

The product actually means that the service or product introduced by the company which offer to the customer of the target market. In this business plan, the product of One Shot coffee shop company is the services such as the pool lessons, the rental of One Shot coffee shop, and the snacks and beverage counter services.

constantly developing new breakfast cereals the product element is the new product themself, setting the price right involved examining customer perception and rival products as well as costs of manufacture, promotion involved engaging in a range of promotional activities e.g. competitions, product tasting etc,

5.3.2Place strategy

Marketing experts know that the best product in the world will never make an impact in the business world if no one can locate and obtain it. Keeping this simple, yet vital brick in the house of marketing, One Shot coffee shop gives careful consideration to the placement of its restaurant. Within that marketing research, It takes into consideration the population of a given part, major roadway in the vicinities of the proposed coffee shop site, traffic that passes by the coffee shop site, and the demographics of that area, as they know a great deal about One Shot customers.

The place of One Shot coffee shop is in hotel royal queens at 12 queen street Singapore, in the hotel ,there is only had one coffee shop inside.so the place of One Shot coffee shop is a very good place, its in the central of Singapore.

5.3.3Pricing strategy

Built in the right area, the people will come, but a good price does play a role, so that they come back. The single main content of the marketing strategy is one of the efficient pricing of their products. Understanding of the target market, including a large part of the family, they always need an affordable way to go out to dinner with their children, over the years a menu price, almost anyone can eat a lens, and enjoy quality meals without flowers a lot of money. What is really down the value of people enjoy single food, which is a big part of repeat customers, the best in the world price of products sold, if consumers do not think, what they buy. In fact, a single pointed out in their "value menu" in recent years, it provides a selection of menu items at a low price, this thoroughly. Other marketing concepts are integrated into the strategic value menu. Menu as the value of this project ", to sell profitable products, this is a small loss leaders", if any profits are usually single cafe, coffee and soft drinks of your choice to accompany earnings, so that you have a a good price, but single cafe achieve the profitability.

5.3.4Promotion strategy

One Shot coffee shop are still some basic promo gimmicks that most cafes should have like coffee mugs with your logo print on it. Travel mug is one of the most besought after item coffee junkies want. One Shot can sell these at shop or give it away on special occasion like your store open or yearly anniversary.

One Shot coffee shop should also or have other standard promotional items such as shirts, key chains, tumblers, and note pads. If you want your promotion items to been seen more, offer things what people will really used outside the home like T- shirts, caps and visors, laptop bags, and backpack. For the high end market, One Shot coffee shop can sell CDs with a collection of music One shot coffee shop usually play at One Shot coffee shop

Another method to market One Shot coffee shop business is by increasing One Shot coffee shop visibility online. Set-up a website where One Shot coffee shop can post materials related to the coffee business. One Shot coffee shop can also post announcements on One Shot coffee shop website for special offers and contests. Post One Shot coffee shop details on One Shot coffee shop site such as name, logo, location and telephone number. Add one page for suggestion, a forum and contact pages.

Promote a special item on your menu on a week basis. One Shot product can be one coffee beverage, pastry or dessert. Announce the promotion on One Shot coffee shop site. Make One Shot coffee shop promo exciting and fun to encourage customers to come. One Shot coffee shop could have a contest like a coffee art contest wherein customers can create their own coffee art win prizes. Post the contest details and prizes on One Shot coffee shop website too. Prizes can be inexpensive like a free mug of coffee, coupon or free T-shirt with One Shot logo.

Offering coffee charge cards is a very good idea. It is convenient for some staff and client. Instead of searching for coin and bill in their wallet or bag, customers can simply use a prepaid charge card to buy One Shot coffee. It is pretty convenient for customers who bought coffee daily. In other advantage is that One Shot get to sold more coffee in advance.

6.Management team and company structure

This section of the business plan is essential information for investors and financial institution-it gives information about how your company is organized and who is in charge. This section is useful for relaying who accomplishes what tasks for the business, the business knowledge of the management team and the qualifications of the board .

In this coffee shop Mr.Wang is the CEO, and Mr.Kun is the Chief Operating Officer,and one Chief Financial one Officer Chief Marketing Officer one Chief Technology Officer

CEO may be able to set strategic, predict the future and control the budget, CEO's think about where the organization are going, the people and process need to get there, and how they will work in the current market.

A COO handles a company's complex operational details. The company's COO insures the business can deliver day by day. COO figure out just what need to be measured so COO can tell if that things are going well. Then COO's team create the systems to track the measurement and take action when the company is not delivering.

CFO will been busy figuring out that customers, business line and product is profitable, so the next year you can afford the really cool equipment.

CMO owns the marketing strategy--and that often includes the sales strategy--and oversees its implement. The CMO will know or learn One Shot industry inside out and helps One Shot position One Shot product, differentiate it from your competitor's products, enlist distributor, and make sure that customers are learn to crave One Shot product.

CTO is a very important person in One Shot coffee shop, CTO need produce the coffee which one can make it more good.

And at last we need 10 waiters, One Shot coffee shop must ensure that when a customer needs help always had one waiter in the side.

7. Operating planning

It is describe one short term way of achieve milestones and explain how, or that portion . A strategic plan will set into operation when a given operational period, in the case in a commercial application, the fiscal year or another given budget term. One operational plan are the basis for, and testificatory for an annual operate budget request. Therefore, five year strategic plan need five operation plan fund by five operate budget.

Operational plans should build the activity and budgets for every part of the organization for the next 1 to 3 years. One Shot link the strategic plan with the activity the organizations will deliver and the resources require to deliver their.

An action plan drawn directly describe institutions and plan tasks and goals, plan objectives and plan activities of agencies and programs of strategic plan.

7.1 Clear objectives

In fact, the objectives same as the ' Goals ' addressed at the beginning of this business plan, the details of the clear objectives summarized .

The clear objectives of the One Shot coffee shop company

Objectives

Description

Rent a venue approximate 5,000 square feet as the location of One Shot coffee shop's business operation.

Offer a custom-made coffee lessons.

Provide in details the One Shot coffee shop company's first year projected profit and loss statement.

Establish the working relationships with the hotel during the period of first operating year.

Build a positive image and perception as well as enhance the One Shot coffee shop's awareness to the public.

(Source: diagram created for this assignment)

8.Risk Assessment & Management

Risk assessment is a step in a risk management the procedure. The risk assessment is to determine the quantitative or qualitative value of risk related to the specific circumstances and recognized the threat. Quantitative risk assessment need to calculate the risk of the two components (R): the amplitude of the potential losses (L), and the probability (p), loss will occur.

Risk assessment assumptions and uncertainties explicitly consider and present an objective risk assessment. The difficult part of the risk management is one of the number of measurements, risk assessment on - to measure the potential loss and the probability of occurrence -can be very difficult. Is a great opportunity to measurement error of these two concepts. The risk has a lot of potential losses and the low probability of occurrence is usually from a low potential loss and the likelihood of high distinction. The theory, are almost the same priority, but in practice, can be very difficult to manage when faced with scarce resources, especially time, the risk management process.

8.1Country risk

　　　The country risk of the credit becomes one of the risks most concern by the international communities. Compare with the general risk of the commercial bank's credit, the country risk is significant different in the definition, source, type, compensate, group, relevancy, classification and measurement.Currently, understanding of the country risks is still in its infancy and there is only qualitative guideline but no quantity analysis.There is no unify technical standard to identify and measure that risk and the actual operation of the risk provision is difficultly.The commercial bank need quantify the assessment of the impact and loss from the withdrawal of the credit capital in the event of the country risks,establishing monitoring mechanism suitable for the exposure scale of the country risk and deal with the events of different type and different probability and different size by classification.

The country risk can into five significant types which are:

　　　 (1) Sovereign Risk: that sovereign borrowers are unable or unwilling to pay their debts or refuse to fulfill contracts or obligations either directly or indirectly.

　　　 (2) Transfer risk:government may set-up restriction on repaying their debt, For example, a government may theoretically declare that its currency is inconvertible, disallowing a transaction.

　　　 (3) Contagion Risk:the risk in one country maybe arise region risk or global risk that will affect your counter-parties' repayment ability. For instance: the sub-prime mortgage crisis in US becomes a global economic crisis which seriously affects most countries' repayment ability.

　　　 (4) Macroeconomic-risk:this type to risk is arise by the macroeconomic condition, such as the change in the economic policies of company countries.

　　　 (5) Indirect Country Risk:the indirect country risk means that risk that arise from uncertainty in economic, social, political and other external factor in other countries which cause significant impacts to the country debtor's ability to repay company debts.

8.2Health risk

Staff who are suffering any of the above need contact the business owner manager immediately.

You must purchase blue adhesive plasters and dressings to use on anicuts you or your staff might get when work with food. That is also advisable to have a burn relief spray or gel in the kitchen in case Occidents.

Staff with diarrhea or vomiting should not return to work until they have been symptom free for 48 hours. One Shot coffee shop will have seen from the news how quickly oncovirus spreads.

Even though you give One Shot staff food hygiene training, One Shot must from time to time have to remind it why it is such important to know the basic rules.Do make sure that One Shot staff wash their hands thoroughly. This is essential to prevent harmful bacteria being transmit from people's hands to food, surfaces and equipment. The staff should be particularly careful in the following circumstances:

1. After a break or going to the toilet.

2. Before preparing and handling food.

3. After blowing their nose.

4. After scratching their head or touching their hair.

5. After emptying the rubbish bin.

6. After touching raw food.

7. After sweeping the floor or cleaning.

9. Funding Request & Financial Projections

This part for One Shot coffee shop is shows that the start-up requirements of the current funding requirement,after that, is the future funding requirement, and in this part will shows the important financial assumptions in Singapore.

9.1 The Current funding requirement

The current funding requirement is include the start-up requirements,the rental of location fees S$6,000per one month,the deposit and intermediary fees in this three years total is S$27,000,the coffee table in One Shot coffee shop we need 40pieces,it can the One Shot coffee shop got more benefit,coffee machine is very important to One Shot,it makes One Shot coffee shop can produce the special coffee for the customer,the television is also for that the customer, when the customer drinking the coffee,and can watch the football match or others is very nice.

In One Shot coffee shop we select 20 light inside,it is very special,all the light are made by ceramic, the legal fees is S$1,246,at last we need employ 10 employees.

The start-up requirements

Start-up items (The number of quantities)

Expected expenses

(S$)

The Rental of location

The Deposit and Intermediary fees

The Coffee Table (40 pieces)

The Coffee machine(5 pieces)

The Television and tableware

The lights (20)

The Legal fees

The Salary pay for employees (10 staffs)

Others

S$ 6,000 (per month)

S$ 27,000 (3 years)

S$ 16,000

S$ 36,000

S$ 4,100

S$ 3,200

S$ 1,246

S$ 11,400 (per month)

S$ 1,000

Total start-up expenses

S$ 105,946

　　　(Source: diagram created for this assignment)

Funding for the company comes from two major sources--owners' investments and bank loans. In that graph

9.2 The Future funding requirement

One Shot coffee shop

The costs assumption of One Shot coffee shop activities

Related activities on an assumption

Expenses

Free tasting

Invites bands

Produce the brand T-SHIRT

Built a relationship with the hotel

S$ 1,500

S$ 5,000

S$ 3,000

S$ 2,800

Total

S$ 12,300

(Source: diagram created for this assignment)

9.3 Important Financial Assumptions

The following notes illustrates in detail the key important assumptions:

The food and liquor revenue will be 18% of total revenue.

There will be 300 cue lockers rent at S$ 30 per month.

The maintain fees for the One Shot coffee shop will cost arrange from S$1500 to S$2000 per month.

The Tax rate will be considered at 15.5% in each of three years.

The current interest rate is 5.50% p.a. based on the UOB Singapore.

9.4Projected Cash Flow

One Shot coffee shop's Cash flow forecast (For the period January 2013 to December 2013)

Dec-12

JAN

FEB

MARCH

APRIL

MAY

JUNE

JULY

AUG

SEPT

OCT

NOV

DEC

TOTAL

S$

S$

S$

S$

S$

S$

S$

S$

S$

S$

S$

S$

S$

S$

Receipts/Cash in:

Sales

N/A

109,024

76,800

53,709

62,600

32,500

93,100

111,200

41,720

64,500

75,200

51,170

64,400

835,923

Owner's Investment

100,000

0

Loan

200,000

0

TOTAL INCOME

300,000

109,024

76,800

53,709

62,600

32,500

93,100

111,200

41,720

64,500

75,200

51,170

64,400

835,923

Payments/Operating Costs:

Maintain fees

1,700

1,900

2,000

1,500

1,700

1,500

1,700

1,800

2,000

2,000

1,600

2,000

21,400

Wages

11,400

12,500

12,300

11,300

11,500

12,900

13,000

11,400

11,200

11,400

12,500

13,000

144,400

tables

124,000

1,500

5,000

6,500

Rent, Renovations, etc.

53,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

72,000

Equipments

17,725

3,000

3,000

2,400

8,400

Electricity, Water

2,500

1,500

1,587

2,000

1,800

1,700

2,900

3,000

2,000

1,500

1,980

2,200

3,000

25,167

Charges of Banking sector

1,552

5,862

5,862

5,862

5,862

5,862

5,862

5,862

5,862

5,862

5,862

5,862

5,862

70,344

Stationery

500

300

100

280

388

200

288

220

229

2,005

The facilities of bar counter

6,900

1,200

900

3,000

1,500

2,000

8,600

Telephone

120

150

120

130

160

90

110

190

180

120

140

155

146

1,691

Professional Fees

1,000

1,500

3,000

4,500

1,000

1,200

11,200

The costs of machine

0

10,000

7,500

17,500

Foods and Liquor costs

3,000

5,000

2,000

7,000

Advertising and Marketing

2,800

3,000

3,000

3,000

4,500

4,500

3,000

21,000

Tax (15.5%)

1,188

16,898

11,904

8,325

9,703

5,038

14,430

17,236

6,466

9,998

11,656

7,931

9,982

129,566

Other Payments

3,000

2,000

2,000

TOTAL PAYMENTS

217,285

48,310

44,173

39,897

42,613

32,090

65,702

60,988

33,996

41,180

39,258

40,248

60,319

548,773

NET CASH OUTFLOW/INFLOW

82,716

60,714

32,627

13,812

19,987

411

27,398

50,212

7,724

23,321

35,942

10,922

4,081

287,150

OPENING BANK BALANCE

0

82,716

143,430

176,057

189,869

209,856

210,266

237,664

287,876

295,600

318,921

354,863

365,784

82,716

CLOSING BANK BALANCE

82,716

143,430

176,057

189,869

209,856

210,266

237,664

287,876

295,600

318,921

354,863

365,784

369,865

369,865

One Shot coffee shop's Cash flow forecast (For the period January 2014 to December 2014)

JAN

FEB

MARCH

APRIL

MAY

JUNE

JULY

AUG

SEPT

OCT

NOV

DEC

TOTAL

S$

S$

S$

S$

S$

S$

S$

S$

S$

S$

S$

S$

S$

Receipts/Cash in:

Sales

75,703

66,400

62,100

50,300

52,120

77,500

94,100

43,100

54,400

72,800

31,220

85,900

685,643

Owner's Investment

0

Loan

0

TOTAL INCOME

75,703

66,400

62,100

50,300

52,120

77,500

94,100

43,100

54,400

72,800

31,220

85,900

685,643

Payments/Operating Costs:

Maintain fees

2,000

1,900

2,000

1,700

2,000

2,000

1,700

2,000

2,000

2,000

1,500

2,000

22,800

Wages

12,430

12,500

12,300

15,400

11,500

12,900

13,000

11,400

11,200

11,400

12,500

13,000

144,400

Rent, Renovations, etc.

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

72,000

Equipments

3,000

3,000

3,000

3,000

3,000

15,000

Electricity, Water

2,700

1,587

2,000

1,800

1,700

2,900

1,700

2,000

1,500

1,980

2,200

2,900

25,167

Charges of Banking sector

5,862

5,862

5,862

5,862

5,862

5,862

5,862

5,862

5,862

5,862

5,862

5,862

70,344

Stationery

250

500

500

220

200

100

50

300

290

220

150

200

2,980

The facilities of bar counter

500

500

500

500

500

2,500

Telephone

200

200

200

200

200

200

200

160

200

200

160

200

2,320

Professional Fees

2,000

2,000

1,500

4,500

3,000

1,500

1,000

1,500

17,000

The costs of machine

5,000

5,000

5,000

15,000

Foods and Liquor costs

2,600

3,000

3,210

3,000

1,500

3,000

4,100

3,800

3,000

2,999

2,300

3,000

36,109

Advertising and Marketing

2,800

5,000

4,500

1,500

13,800

Tax (15.5%)

5,534

10,292

9,626

7,797

8,079

12,013

14,585

6,681

8,432

11,284

4,839

7,114

106,285

Other Payments

1,000

2,000

1,590

1,000

5,590

TOTAL PAYMENTS

43,576

50,141

43,698

47,479

38,541

54,975

58,197

39,793

47,984

41,945

36,511

52,776

555,616

NET CASH OUTFLOW/INFLOW

32,127

16,259

18,402

2,821

13,579

22,525

35,903

3,307

6,416

30,855

-5,291

33,124

130,027

OPENING BANK BALANCE

369,865

401,992

418,251

436,653

439,474

453,053

475,578

511,481

514,788

521,204

552,059

546,768

369,865

CLOSING BANK BALANCE

401,992

418,251

436,653

439,474

453,053

475,578

511,481

514,788

521,204

552,059

546,768

579,892

499,892

One Shot coffee shop's Cash flow forecast (For the period January 2015 to December 2015)

JAN

FEB

MARCH

APRIL

MAY

JUNE

JULY

AUG

SEPT

OCT

NOV

DEC

TOTAL

S$

S$

S$

S$

S$

S$

S$

S$

S$

S$

S$

S$

S$

Receipts/Cash in:

Sales

52,300

34,000

28,000

61,100

50,600

87,500

83,000

43,000

54,100

72,900

31,010

74,000

671,510

Owner's Investment

0

Loan

0

TOTAL INCOME

52,300

34,000

28,000

61,100

50,600

87,500

83,000

43,000

54,100

72,900

31,010

74,000

671,510

Payments/Operating Costs:

Maintain fees

3,000

3,000

2,100

1,900

2,000

1,500

22,800

Wages

13,000

12,500

15,000

13,000

11,500

15,000

14,900

11,400

11,200

11,400

12,500

13,000

154,400

Rent, etc.

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

72,000

Equipments

1,500

3,000

2,000

3,000

9,500

Electricity, Water

2,000

1,587

1,100

1,800

1,700

3,000

3,000

2,000

1,500

1,980

1,600

2,300

23,567

Charges of Banking sector

5,862

5,862

5,862

5,862

5,862

5,862

5,862

5,862

5,862

5,862

5,862

5,862

70,344

Stationery

100

100

100

100

100

300

400

200

100

300

300

400

2,500

The facilities of bar counter

400

1,000

1,300

200

300

3,200

Telephone

200

200

200

200

200

200

200

160

200

200

160

200

2,320

Professional Fees

3,000

2,000

5,000

The costs of machine

4,000

7,000

5,000

16,000

Foods and Liquor costs

3,000

900

2,000

3,200

2,100

4,000

4,100

1,000

2,100

2,999

1,900

3,000

30,299

Advertising and Marketing

2,000

2,000

4,000

3,000

13,800

Tax (15.5%)

8,107

5,100

4,340

9,471

7,843

13,563

12,865

6,665

8,386

11,300

4,807

11,470

106,285

Other Payments

1,000

290

300

2,000

2,000

1,000

200

210

1,000

5,590

TOTAL PAYMENTS

44,669

36,539

39,402

41,633

40,405

62,925

55,527

37,287

37,548

40,241

43,139

46,232

525,547

NET CASH OUTFLOW/INFLOW

7,631

-2,539

-11,402

19,467

10,195

24,575

27,473

5,713

16,552

32,659

-12,129

27,768

145,963

OPENING BANK BALANCE

499,892

507,523

504,984

493,582

513,049

523,244

547,819

575,292

581,005

597,557

630,216

618,087

499,892

CLOSING BANK BALANCE

507,523

504,984

493,582

513,049

523,244

547,819

575,292

581,005

597,557

630,216

618,087

645,855

645,855

9.5Projected profit and loss

One Shot coffee shop's Projected Profit and loss forecast (For the period January 2013 to December 2013)

Dec-12

JAN

FEB

MARCH

APRIL

MAY

JUNE

JULY

AUG

SEPT

OCT

NOV

DEC

TOTAL

S$

S$

S$

S$

S$

S$

S$

S$

S$

S$

S$

S$

S$

S$

Receipts/Cash in:

Sales (net of GST if applicable)

N/A

105,000

73,400

51,009

61,000

31,000

90,100

108,300

41,000

61,900

72,500

49,000

61,500

805,709

Other income

4,204

3,400

2,700

1,600

1,500

3,000

2,900

720

2,600

2,700

2,170

2,900

30,394

TOTAL INCOME

0

109,204

76,800

53,709

62,600

32,500

93,200

111,200

41,720

64,500

75,200

51,170

64,400

836,103

Direct Costs:

Foods and lquiors

3,000

2,700

3,000

3,210

2,000

1,700

5,000

4,900

3,800

1,800

2,999

2,000

3,000

36,109

Maintain fees

4,000

1,700

1,900

2,000

1,500

1,700

1,500

1,700

1,800

2,000

2,000

1,600

2,000

Total Direct costs

7,000

4,400

4,900

5,210

3,500

3,400

6,500

6,600

5,600

3,800

4,999

3,700

5,000

57,509

GROSS PROFIT

-7,000

104,804

71,900

48,499

59,100

29,100

86,600

104,600

36,120

60,700

70,201

47,570

59,400

778,594

Operating Costs:

Wages and related

0

11,400

12,500

12,300

11,300

11,500

12,900

13,000

11,400

11,200

11,400

12,500

13,000

144,400

Rent, Renovations and Related

53,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

72,000

Coffee Tables

124,000

1,500

5,000

6,500

Equipments

17,725

3,000

3,000

2,400

8,400

Electricity, Water

2,500

1,500

1,587

2,000

1,800

1,700

2,900

3,000

2,000

1,500

1,980

2,200

3,000

25,167

Stationery

500

300

100

280

388

200

288

220

229

2,005

Legal fees

1,246

0

TV/Freezer/Oven, etc

4,100

350

489

900

1,739

Professional Fees

2,000

1,500

3,000

4,500

1,000

1,200

11,200

Bank Charges & Interest/Tax

306

306

306

306

306

306

306

306

306

306

306

306

306

3,667

Advertising

2,800

3,000

3,000

3,000

4,500

4,500

3,000

21,000

Other Payments

1,000

2,000

290

500

399

500

690

1,800

200

287

100

39

2,100

8,905

Depreciation

700

700

1,000

1,888

1,990

1,000

370

390

698

700

700

700

134

10,270

TOTAL PAYMENTS

214,377

31,206

24,783

26,274

25,183

24,556

32,166

33,496

23,892

23,482

20,706

28,545

34,269

328,553

NET PROFIT

-221,377

73,598

47,117

22,225

33,917

4,544

54,434

71,104

12,228

37,218

49,495

19,025

25,131

450,041

One Shot coffee shop's Projected Profit and loss forecast (For the period January 2014 to December 2014)

JAN

FEB

MARCH

APRIL

MAY

JUNE

JULY

AUG

SEPT

OCT

NOV

DEC

TOTAL

S$

S$

S$

S$

S$

S$

S$

S$

S$

S$

S$

S$

S$

Receipts/Cash in:

Sales (net of GST if applicable)

73,003

63,000

59,000

49,000

50,020

73,000

91,000

41,000

53,200

72,500

30,020

81,000

735,743

Other income

2,700

3,400

3,100

1,300

2,100

4,500

3,100

2,100

1,200

300

1,200

4,900

29,900

TOTAL INCOME

75,703

66,400

62,100

50,300

52,120

77,500

94,100

43,100

54,400

72,800

31,220

85,900

765,643

Direct Costs:

Foods and lquiors

2,700

3,000

3,210

2,000

1,700

5,000

4,900

3,800

1,800

2,999

2,000

3,000

36,109

Maintain fees

2,000

1,900

2,000

1,700

2,000

2,000

1,700

2,000

2,000

2,000

1,500

2,000

22,800

Total Direct costs

4,700

4,900

5,210

3,700

3,700

7,000

6,600

5,800

3,800

4,999

3,500

5,000

58,909

GROSS PROFIT

71,003

61,500

56,890

46,600

48,420

70,500

87,500

37,300

50,600

67,801

27,720

80,900

706,734

Operating Costs:

Wages and related

11,400

12,500

12,300

11,300

11,500

12,900

13,000

11,400

11,200

11,400

12,500

13,000

144,400

Rent, etc

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

72,000

Equipments

3,000

2,000

4,000

4,000

13,000

Electricity, Water

1,500

1,587

2,000

1,800

1,700

2,900

3,000

2,000

1,500

1,980

2,200

3,000

25,167

Stationery

200

100

300

200

200

300

400

200

400

220

300

300

3,120

Bank Charges & Interest/Tax

306

306

306

306

306

306

306

306

306

306

306

306

3,667

Advertising

2,800

5,000

4,500

1,500

13,800

Other Payments

1,500

1,200

300

500

500

1,000

2,000

309

300

490

500

2,000

10,599

Administration fees

400

1,000

5,000

4,500

Depreciation

1,000

1,000

1,000

1,000

1,000

1,000

1,000

1,000

1,000

1,000

1,000

1,000

12,000

TOTAL PAYMENTS

26,006

25,493

22,206

24,856

21,206

29,406

30,206

26,215

25,206

26,286

22,806

31,606

311,493

NET PROFIT

44,997

36,007

34,684

21,744

27,214

41,094

57,294

11,085

25,394

41,515

4,914

49,294

395,241

One Shot coffee shop's Projected Profit and loss forecast (For the period January 2015 to December 2015)

JAN

FEB

MARCH

APRIL

MAY

JUNE

JULY

AUG

SEPT

OCT

NOV

DEC

TOTAL

S$

S$

S$

S$

S$

S$

S$

S$

S$

S$

S$

S$

S$

Receipts/Cash in:

Sales (net of GST if applicable)

49,800

31,000

27,000

60,100

49,000

83,000

79,000

41,000

53,200

72,500

30,020

69,000

644,620

Other income

2,500

3,000

1,000

1,000

1,600

4,500

4,000

2,000

900

400

990

5,000

26,890

TOTAL INCOME

52,300

34,000

28,000

61,100

50,600

87,500

83,000

43,000

54,100

72,900

31,010

74,000

671,510

Direct Costs:

Foods and lquiors

3,000

900

2,000

3,200

2,100

4,000

4,100

1,000

2,100

2,999

1,900

3,000

30,299

Maintain fees

3,000

3,000

2,100

1,900

2,000

1,500

22,800

Total Direct costs

6,000

900

5,000

3,200

4,200

4,000

6,000

1,000

4,100

2,999

3,400

3,000

43,799

GROSS PROFIT

46,300

33,100

23,000

57,900

46,400

83,500

77,000

42,000

50,000

69,901

27,610

71,000

627,711

Operating Costs:

Wages and related

13,000

12,500

15,000

13,000

11,500

15,000

14,900

11,400

11,200

11,400

12,500

13,000

154,400

Rent, etc

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

6,000

72,000

Equipments

1,500

3,000

3,090

1,700

9,290

Electricity, Water

2,000

1,587

1,100