Due to the proximity to the store, goods and inventory could easily be transferred to satisfy unexpected demand. This is particular useful in the early stages of business as inventory control is critical to profitability and return on assets.
In addition, having the store in the same demographic marketing area will allow the owners to further build the brand and competitive advantages over peers in the industry. Due in part to the commodity like nature of coffee, brand allows the owners to charge premium prices. This occurs with many coffee shops such as Starbucks, or Dunkin Donuts. Their coffee in many instances is similar to competitors. However, due to the brand, and what it represents to the consumer, both locations are able to charge premium prices. By having the coffee shop near the original location, the owners and managers can continue to build the brand which ultimately will resonate with consumers. This will drive brand loyalty, heighten margins and increase profitability over the long-term.
Outline a Plan for Securing Debt Financing
Raising capital through debt is often compared to raising capital through equity. The major difference is that equity requires you to give up partial ownership of your company. Debt capital however, will allow the original owners of the coffee shop to maintain their ownership claims to the business.
A major negative with debt capital is that the owners will be funding from banks or other lenders. These institutions often look for low risk investments, something that many start-up businesses can not offer. As such it is important for the coffee shop to establish itself as a viable and thriving entity. For one, this will the company to access additional capital to expand operations, build stores, and the overall brand. In addition, being a viable option could potentially lower interest payments, saving the company valuable dollars. As such, the plan to securing debt financing will hinge primarily on the companies ability to operate profitably in a very competitive environment. Profitable operations make debt financing easier as oppose to lagging and struggling profitability. The plan will highlight the ability of the company to payback its obligations in a timely manner as not to cause undue harm to the financial institution.
In addition the plan will consist of time series ratios that display key metrics of business...
This essay is on a business simulation for Tim's Coffee Shoppe. �This is a final assignment for course AB 298: Associate's Capstone in Accounting. �This example essay was provided to a students in Kaplan University to assist them with completing their own paper. Essay Prompt: Executive Summary This section provides an overview of your findings. This section should be no more than half a page at the most, but a paragraph that is
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Business Plans Marketing Plan and Evaluation The marketing plan should revolve around the marketing mix. The mix encompasses the four Ps of marketing, each of which will be addressed in turn in this business plan. The four Ps are product, price, place and promotion (NetMBA, 2010). With respect to product, the coffee shop will be a premium example of a coffee shop. Australia has an exceptional coffee culture, so good that it
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