A business plan is a plot that guides the course of a company towards its desired destination. While it entails several elements, by analyzing the description of a company, its strengths, and weakness, as well as mapping out any gaps and recommendations, one can figure out the compatibility of a particular company's business plan. The company selected is a start-up bistro and coffeehouse located in the Sweet Auburn District of Atlanta.
Description of the Plan
The start-up name is Watertower Café, and it is a privately held limited liability corporation. It is 80% owned by David Patton IV and 20% owned by the Historic District Development Corporation. Its mission is to provide many Atlantans and their guests with a classy, yet casual dining experience, and envisions a high-quality evening setting for people searching for comfort in a venue that contains ample space for their favorite pass time. By the end of the first year, the company aims at attaining $1.9 million in sales, achieve $167,000 in monthly sales by the fourth month and maintain a net profit of at least 14% by the second year.
Strengths of the Plan
A good business plan explains the characteristics of a company's market and suggests ways on how to capture it. Watertower café's business plan is strong in this aspect as it mentions industry trends and the effects of those trends on the business. The market trend in Atlanta, for example, is that evening dining and entertainment venues are becoming popular and are gaining more recognition. The company capitalizes on this opportunity to establish its business in an area undergoing a residential housing construction boom.
A business plan outlining a company's competitors indicates strength in understanding its market. Watertower café, in its business plan, gives an in-depth understanding of its main competitors in and around the Atlanta metropolitan area. Its competitive edge lies in its location, by being closer to downtown where parking and traffic woes are insignificant, and being attractive to patrons who want to have an easy and fun time out.
Watertower café's business plan includes all the financial documents needed to analyze and calculate their income, cash flow, expenses, and projections. It has realistic operating budgets and a realistic net profit target of at least 14%.
Weaknesses of the Plan
Watertower café's owner doubles up as the general manager of the company. Even though his subordinates have experience in the hospitality industry, being the management head, he has little experience in the industry as he was previously the dean of a local law school.
The café's business plan fails to elaborate on a marketing strategy for their products. It relies heavily on word of mouth and does not capture other avenues such as social media platforms or local Atlanta media to promote its products.
Gaps Identified in the Plan
Watertower café's business plan fails to explain the company's major internal strengths and weaknesses as well as external opportunities and threats presented by the business environment its in. A SWOT analysis is vital to the success of any start-up, and it is a segment that the company's plan should adopt and implement.
Recommendations for the Improvement of the Plan
As a business plan needs to be updated at least annually, it is highly recommendable that Watertower café identifies which particular products offer the best growth opportunities. Thus, the plan should focus on market penetration, where the company will focus on selling more of its current products to the existing clientele it holds.
The Watertower Café: Café Bistro Coffeehouse Business Plan. Business Plans. Retrieved on June 29, 2020, from https://www.bplans.com/cafe_bistro_coffeehouse_business_plan/strategy_and_implementation_summary_fc.php
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Paper Example on Creating a Business Plan for a Start-up Bistro/Coffeehouse. (2023, Sep 19). Retrieved from https://proessays.net/essays/paper-example-on-creating-a-business-plan-for-a-start-up-bistro-coffeehouse
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