income statement and balance sheet

Trying to complete a business plan but doesn’t know how to do a income statement and balance sheet. Please read throughout the business plan that attached and do an income statement and a balance sheet with 3 year projections to complete the plan.

• Financials (Try and be as thorough as possible on the following). Consider the items that you will need to start a business)

-Income Statement – three-year projections

-Balance Sheet – three-year projections

Running head: BUSINESS PLAN ANALYSIS
Dog’s Café Business Plan
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BUSINESS PLAN ANALYSIS
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Company overview:
▪
Sixty-seven percent of U.S. households, or about 85 million families, own a pet,
according to the 2019-2020 National Pet Owners Survey conducted by
the American Pet Products Association (APPA). It’s about 63.4 million households
that own a dog. It means there are a lot of people who love pets and especially dogs.
What if you want to go out and have fun with your pet but doesn’t want to run
around at a dog park or around your neighborhood, our dog café will be amazing
choice for you where you can come have coffee while your dogs also having a bun
of food choices and toys that they can have fun with.
▪
Limited liability Company has chosen as the Dog’s café formal legal entity. The
reason for this decision is because of its flexibility about who can manage, own the
business, decide to manage its tax affairs and profit distribution.
▪
Dog’s café will be located at 3102-3198 W Parker Rd – Parker Lancers Square,
Plano, Texas. The reason for this location because it’s only 2 miles away from the
closet dog park. This is a growing location located on the intersection of Parker &
Independence with high traffic. Centrally located within the city of Plano, which is
beneficial from a strong demographic. The building has recently been repainted for
a refreshing contemporary finish. An excellent neighborhood shopping center that
is familiar to the surrounding area.
▪
Equipment for the kitchen will include coffee machines, refrigerators, oven,
microwave, walk-in cooler, pro pet feeder which will proximately cost about
$10,000 plus other start-up expenses such as rent deposit, cups, food inventory,
furniture, insurance, a pet training package for employees.
BUSINESS PLAN ANALYSIS
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Mission:
▪
Our main mission of this cafe is to serve the customer as well as their dog. We can
find many cafes that do not allow a dog. People treat dogs as their family members.
They do not want to leave their dog alone and enjoy themselves in the cafe. The
only solution to this problem is a drive-thru. Instead of rushing to the drive-thru we
came with the solution for the people that they can enjoy their coffees and foods
and dog service at the same time. This can help to save their time too. Hence, the
main mission of our business is to give our services to the customer and their dog
at the same time.
•
Vision:
▪
Our main vision of this business is to open dog café in all part of states. We want
customer to provide a good service and a unique which will make our business go
smooth. We want to be the reasonable dog café in states in future with all kind of
services a customer need. We will try to start one branch each year in DFW
metroplex if we get success and customer demand for more branch we will open
in every state with advanced service and technology to order out product with
nature friendly environment. Dog caring facility and good customer service will
be the focus in our business.
•
Environmental Environment Analysis
▪
Competition
▪
There are a few coffee shops around that are closest competitors in terms of
location such as Starbuck, Duino coffee, Mudleaf Coffee. These coffee
BUSINESS PLAN ANALYSIS
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shops are traditional coffee places where they mainly target coffee/drink
lovers. They are indirect competitors because they are focusing on selling
drinks. Unlike other coffee shops, we here in this location to provide a place
for people and their dogs to chill and have time together. We’re the only
café in this location that focusing on sailing dog foods and toys along with
coffee for customers. Our coffee shop is geographically advantaged for dog
lovers who want to grab a cup of coffee while playing or chilling with their
dogs.
▪
Legal and regulatory forces
▪
In terms of safety, we will have a very hard time working with the health
department. However, there is a very successful similar business in LA,
which makes us never give up on this idea. The coffee counter and the dog
area are separated. If you go with friends that bring a dog, your friend can
walk straight to the dog areas while you’re ordering food because Texas law
prohibits live animals in coffee shops or restaurants where food could
potentially be contaminated. In that way, it will keep the food from
contacting the dog’s fur and saliva. Every day before opening and closing,
employees need to clean up the café following the rules of the health
department to keep the café nice and clean.
▪
By having dog handlers, leashes, and crates on the premises would help to
maintain a safe space for dogs and dog-loving humans. The employees who
work at the café will be trained to work and handling dogs before they
officially work at the café.
BUSINESS PLAN ANALYSIS
▪
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Equal treatment for all
▪
The café is open for everybody. Prohibit discrimination which regards to
race, age, gender, other emotional and physical characteristics toward coworkers and customers. Employers that violate equal treatment will receive
penalties.
•
Technological factors:
▪
Dog’s café will require an entrance fee for $8 each customer. Customers can buy it right
at the café for $9, but they can purchase online through the café’s website or app for
$8. All the ticket information and promotions will be on the website and app for
convenience to the customers. Customers order drinks from the café will collect points
for their reward. The reward system will only be applied for drink orders. When
customers collect enough points, the system will send a message about the reward to
their phone and will be expired with 7 days from the day that they receive the message.
•
Social-cultural factors
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Emerging gender roles and household roles
▪
The company’s interests will be put ahead of individual interests based on their
gender to improve performance. This will ensure that there is multiple job
participation in our café. Men can carry out tasks that are believed to be for
ladies and vice versa.
–
Ethnic and nationalistic allegiances
▪
The café will be devoted to offering pet lovers an environment where their love
for pets is considered and accommodated. Also, obedience to the law will be
shown by ensuring that the required hygiene of coffee areas is embraced.
BUSINESS PLAN ANALYSIS
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Environmental concerns
▪
The coffee counter and the dog area will be separated. Therefore, the hygiene
of the counter will not be affected. The café will also give the dogs foods that
are less meat-rich to control the toxicity of their defecations. The dogs’ feces
will be cleaned up as fast as possible to prevent the spread of pathogens
(Campagnolo, Philipp, Long, & Hanshaw, 2018). The café management will
also enforce laws of taking a legal obligation to owners who have not taken
their dogs to a veterinary for vaccination to control any infection caused by
dogs. The café will be cleaned by employees before opening and closing to keep
the place neat and to follow the health department rules.
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Consumer attitude towards business, and vice versa
▪
The dog’s café will offer high-quality services to both the customers and dogs
to ensure that the customers are satisfied. We will also have a customer support
team that will help the customers in case of any concern. The customer support
team will also help in collecting complaints as well as feedback to help the café
in improving in case of negative feedback.
▪
The business will have confidence in the customers adhering to the company
rules and regulations.
–
Attitudes towards materialistic things as well as self
▪
The café employees will handle dogs with care and ensure their safety while in
our apartment by controlling dog fights.
BUSINESS PLAN ANALYSIS
▪
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Towards self, the café employees and management will remain focused on
achieving our goals. That is, ensure we offer comfort and hygiene to our
customers without compromising our business goals of maximizing profits.
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Economic
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Income levels and social class distribution
▪
The dog’s café services can be accessed by people from various social classes.
Payment can be done online, which makes it possible for people to make
payments from the comfort of their homes. Information will be readily available
on the website and mobile application to allow access to information by all
customers. Our main aim is the middle class, but the amount is affordable by
people with various income levels. Our menu is simple, which makes many
people afford our products.
–
Demand for various goods
▪
Our coffee shop will be located in a place where there is a high population, with
the majority of people having dogs as pets. The café focus on selling coffee,
dogs’ food, and toys. The demand will be high since there is no other coffee
cafe in the area that offers a place for dogs in their environment.
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Interest rates
▪
The coffee shop will make consideration of the interest rates on the capital
acquired through loans. This will help in analyzing whether the anticipated
profitability will match the interest rates. If not, the company will look for
alternative means of acquiring capital.
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Savings and debt
BUSINESS PLAN ANALYSIS
▪
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The accrued debts will be paid on time to prevent the rollover fee. The coffee
shop will also make savings to see if it can start another branch of a dog café.
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Inflation
▪
The coffee shop will make financial decisions by considering the increment of
price and purchasing money value to ensure that they are operating with the
prevailing market conditions.
–
Taxes
▪
–
Our coffee shop will pay taxes on time to avoid penalties.
Employment
▪
The coffee shop will hire highly qualified people in the position of the coffee
sector and dog sector. The employees will be trained on how to work and how
to handle dogs before they start working.
–
Internationally currency rates
▪
The café will be considering the exchange rates to understand international
currency rates. This will help in the evaluation of any threats or opportunities.
•
Political
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Fiscal policies
▪
Live animals are prohibited in coffee shops or restaurants due to the potential
contamination of food (De Rosa, Planner, & Trainer, 2017). The café will
separate the dogs’ area from the coffee counter to ensure we have respected the
law.
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Tariffs
BUSINESS PLAN ANALYSIS
▪
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The company will evaluate the levy charged on imports to be aware of the
amount that will be charged when importing coffee products, dogs’ foods, and
toys.
–
Foreign trade agreements
▪
The company will also operate adhering to Foreign Trade agreements since they
outline what businesses should do and what they should not do in the market.
–
Market entry requirements
▪
The coffee shop will do a thorough market review to identify the requirements
before getting into the business. Our coffee shop has already checked for the
required kitchen equipment and other expenses. The café will now assess trade
barriers and how to overcome them. Here we will also identify our potential
customers.
•
SWOT Analysis
▪
Strengths
i.
We have qualified and skilled employees.
ii.
Employees have good customer service.
iii.
We provide you high speed of Wi-Fi in our business hours.
iv.
Employees are always determination to their work.
v.
We believe in hard working rather than profit.
vi.
We served quality food and beverages.
vii.
We are linked to Grub-Hub which can help you to deliver food and beverage to your door.
BUSINESS PLAN ANALYSIS
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viii.
Dogs are treated good.
ix.
We accept all types of payment with the credit and debit card including Google Pay and
Apple pay.
x.
ATM services is also provided.
▪
Weaknesses
i.
We have very limited type of coffee and foods.
ii.
In a busy condition, we might not able to receive your phone calls.
iii.
The price of foods and beverage is a little bit high.
iv.
Restroom is common for men and women.
v.
Our store gets busy on business hour so that services might be slow.
vi.
Our organization has financial instability.
vii.
Hiring and firing.
▪
Opportunities
i.
Good ability to attract customers from the universities and colleges.
ii.
We have potential to improve brand equity.
iii.
We have the possession to expand by building more branches in other areas.
iv.
Job opportunity for deserving candidates
▪
i.
Threats
Unable to satisfy all the consumers with different tastes.
BUSINESS PLAN ANALYSIS
ii.
Low budget investment.
iii.
Competition is high.
•
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Marketing mix
▪
Price:
Our business plan is opening of coffee shop where people can bring their dog with them. In
this business, we are targeting all kind of customer who can afford the normal price range that
we can find in the market. We will be serving Americano (black coffee), chai latte, mocha all
kind of coffee and tea both iced and hot one. The price range will be 2.50$-5.50$according to
the size what the customer wants. We will be selling the dog food as well which make costumer
more convenient. The price range for dog food will be from 2.15$-5.40$ including tax.
Entrance fee will be free on grand opening after a month people have to pay 8$ for entrance
online through our website or app, and $9 at the door. On weekend people can enjoy their
coffee with live music on that same entrance fee.
▪
Promotion:
Customer with dog will get 2%off in each item for certain time from opening date. We will get
the coffee from local market vendor so people will be happy to try our product which will be
made locally. The glass will be made of mud to serve coffee and tea which is eco-friendly.
This help us to attract more customer because this will be unique in city. Our business will be
small budget so we will do marketing by using flyers and Facebook pages which will help
people know more about our product and menu. According to research, most of the young
people are interested with coffee and dogs so online website and pages will be the best platform
for marketing at any time
BUSINESS PLAN ANALYSIS
▪
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Product:
We will use most of the local product except some. Price will be reasonable because of low
expenses during delivery of local things. And the product will be good kind as we are using
local product which cost will be low than foreign. We will have best service in Frisco area as
we allow dog and give them some discount to the person who got pets. As service product
will be good we will have good customer flow.
▪
Place and distribution:
Our product will be directly distributed from our shop so customer can be ensured of original
product with the peace musical environment.
•
OPERATION
▪
HOURS OF OPERATION: Hours of operation for our dog free cafe are given below.
MONDAY 5:00 AM- 11:00 PM
TUESDAY 5:00 AM- 11:00 PM
WEDNESDAY 5:00 AM- 11:00 PM
THURSDAY 5:00 AM- 11:00 PM
FRIDAY 5:00 AM- 11:00 PM
SATURDAY 6:00 AM- 10:00 PM
SUNDAY 6:00 AM- 10:00 PM
BUSINESS PLAN ANALYSIS
▪
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EMPLOYEE ISSUES: How we can handle absenteeism and tardiness? This is not a big
deal, emergency situation happens for everyone, So for preventing this, we can reschedule
the shifts for employees. So, the second employee can cover up the first employee, who is
absent.
▪
CUSTOMER COMPLAINTS: I Believe that if you get customer complaints, and solve
it ASAP, it can be profitable for the business. If you receive any customer complaints,
always listen and understand what is the complain about and apologize the customer for
their inconvenience. After that find a solution for the complaint and secede the expectation
of a customer.
▪
DAY TO DAY PROCESS:
MONDAY: Inventory auditing for what we need.
TUESDAY: Departmental meeting
WEDNESDAY: Coordinating employees schedules.
THURSDAY: Payroll for employees.
FRIDAY: Bookkeeping and maintaining records.
▪
INVENTORY: We are planning to have Inventory for 2 weeks, but at the starting phase,
some material might be in JIT (just in consideration). The JIT inventory does not hold any
safety stocks and it operates with continuously low inventory levels. JIT inventory system
also lowers the waste and decrease it.
▪
INSURANCE: General liability insurance, this insurance covers your business against
claims for bodily injury and property damages. When adding property coverage to a
general liability policy, this is often referred to as Business owner policy or BOP insurance.
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BUSINESS PLAN ANALYSIS
References
De Rosa, F., Planner, U., & Trainer, D. (2017). DOG AND CAT MANAGEMENT PLAN 20182022 ACKNOWLEDGEMENTS.
BUSINESS PLAN ANALYSIS
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Campagnolo, E. R., Philipp, L. M., Long, J. M., & Hanshaw, N. L. (2018). Pet‐associated
Campylobacteriosis: A persisting public health concern. Zoonoses and public health, 65(3),
304-311.