CAFÉ DROPOUT
Bugallon Proper, Ramon, Isabela
BUSINESS PLAN
Jimboy Siganlay
Arian Jade Atluna
Jeanbear De Guzman
TABLE OF CONTENTS PAG
E
Introductory Page
Nature of the Business……………………………………………. 2
Statement of Financing Needed………………………………. 2
Description of the Business
Products and Services……………………………………………… 3
Mission Statement and Core Values ………………………... 3
Location of the Business and 4
its Major Physical Assets
Background of the business ……………………………………. 4
owners/ Entrepreneurs
Production Plan
Manufacturing Process…………………………………………… 5
Machinery and Equipment……………………………………… 5
Suppliers of Raw Materials……………………………………… 5
Future Capital Equipment Need………………………………. 5
Marketing Plan
Pricing………………………………………...…………………………… 6
Promotion………………………………………………………………. 6
Sales Forecast…………………………………………………………. 7
Financial Plan
Assumptions…………………………………………………………… 8
Pro forma Balance Sheet…………………………………………………
Pro forma Income Statement
Cash flow projections
Sources and Uses of Funds
Breakeven Analysis
I. Introductory Page
Nature of the business
Cafe Dropout is a merchandising coffee shop that offers
high-quality coffee and great service for everyone. With the best
coffee in the area that compromised the fresh wind of Isabela. We
also had delicious pastries to compliment coffee that customers and
even travelers can enjoy.
Statement of Financing Needed
Start-up expenses will cover the supplies and equipment,
Renovations and amendment of the place. Also, legal expenses for
obtaining licenses and permits as well the accounting services. Start-
up loss is assumed in the amount of
Our capital will be amounting to 200,000
Start-up Expense included:
Legal Expenses
Inventory
Coffee Supplies
Retail supplies
Office supplies
Utility supplies 75,000
Equipment
Espresso machine
Coffee maker
Coffee brewer
Food service equipment
Storage hardware 250,000
Promotion expense
Online Advertisement
Print Advertisement
Broadcast Advertisement 20,000
Rent Expenses 60,000
Renovation expenses 100,000
495,000
II. Description of the Business
Product and services
Café Dropout will provide its customer with espresso-based
coffee and pastries as its tandem. These are the product that is listed
below:
Different kind of espresso-based such as cappuccino,
lattes, mochas and chocolates
Different flavors of each pastry such as dessert,
cupcakes and cakes.
offered Iced coffees, pearled Iced-tea and Milk teas.
Also we are giving access to Wi-Fi and fully air-
conditioned for customer.
Mission Statement and Core Values
Café Dropout will make its best effort to create a
unique place where customers can relieve their bad stress in a
comfortable and relaxing environment while enjoying the best
brewed coffee and delicious pastries that can make you forget
all your problems in period of time.
Staffs and customers must follow our café dropout’s
core values:
[Link]. Always be responsible for every actions
you’ve make. Your actions speak what you really are so you
need to be accountable to it.
2. Environment-oriented. Café Dropout is a tranquil
place where everyone can act peacefully. Staffs as well as
customers need to act accordingly to not distract other
people.
[Link]. Respect be gets respect. In our facility, staffs
and customers should follow the rules and regulation and
act to the people what you want them to act to you.
Location of the Business and its Major Physical Assets
Our facility will be located at the corner along the highway in
Ramon, Isabela. The coffee shop has a secured permit of vacant 1 hectare
premises previously occupied of commercial building. The lease contract
has an option of renewal for three-years at a fixed rate that Café Dropout
will execute depending on the financial stability of the business and also
the major physical assets of our business is the coffee machines and
brewer.
Background of the business owners/ Entrepreneurs
The coffee shop business is owned by Jimboy Siganlay,
Graduate of Bachelor of science in Business Administration with Arian Jade
Atluna, graduate of bachelor of science in Medicine Technology and
Jeanbear De Guzman, graduate of bachelor of science in Civil Engineering.
We are senior highs school classmate at La Salette of Ramon, Inc. through
our hard works and determination, we created a business where we can
invest our money for our better future.
III. Production Plan
Manufacturing Process
The Café Dropout will provide the services to the costumers,
and then the costumer will give profit to our business in return. The profit
earned will be used to cycle in order to produce and sell more products.
Physical Plant.
Café Dropout will be located at Bugallon Proper Ramon Isabela with the
plant layout and the vicinity map below:
Machinery and Equipment
The main equipment of our business is the Coffee machines such as Coffee
Grinder, coffee brewer and coffee maker to create coffee made by beans. In using
this, we need 600v electricity to operate the said machines.
Suppliers of Raw Materials
The supplier of our material is coffee bean and tea leaf Inc. which is one
of the high quality supplier and wholesaler of espresso coffee and good pastries
here in the Philippines. They provide high quality products and service in low and
affordable price.
Future Capital Equipment Need
As our business grows and develops, more coffee machines will be added
to hasten the services of our Café Dropout. In years, we also need to expand our
structure to accommodate more customer and more investor will be persuaded
to invest in our coffee shop. Café Dropout will continue to improve the business
for the betterment of all.
IV. Marketing Plan
Pricing
In deciding the pricing of products produced we considered these factors:
The quality of our espresso-based coffee and pastries
Efficient and effective services offered
Features of the structure
Price that fits the budget of customers
Price of competitor’s product
Promotion
We promoted our business through Social media such as Facebook and
Instagram. In using online advertisements, we create pages and accounts to give
information about our business and spread the quality of our products. Print
Advertisement, we put the name and quality of Café Dropout in newspapers and
tarpaulin and soon billboards if we are financial stabled and Broadcast
advertisement, we use radio advertisement locally and soon using television and
national broadcast
Sales forecast
Sales forecast data is presented in the chart and table below.
GGG
Yearly Sales
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
Year 1 (2019) Year 2 (2020) Year 3 (2021) Year 4 (2022)
Sales Expenses Net Income
120,000 Monthly Sales
100,000
80,000
60,000
40,000
20,000
Sales Gross Margin
Assumptions
As our business grows, the capability of service will be assumed to be more
efficient and the increase of profit will be expected every year. With this development, we are
going to expand our business and create more branches all over the country and soon to open
in foreign place to spread the goodness of espresso-based coffee and high-quality pastries.
Pro forma Balance sheet
Balance Sheet Starting Pro forma Pro forma Pro forma
Year 1 Year 2 Year 3 Year 4
Assets
Cash 495,000 600,000 800,000 1,000,000
Coffee Machines 250,000.00 350,000.00 400,000.00 450,000
Other Equipment 50,000.00 70,000.00 70,000.00 100,000
TOTAL ASSETS 795,000 1,020,000 1,270,000 1,550,000
Owners’ Equity
Capital 495,000 495,000 495,000 495,000
Add Net Income 300,000 425,000 775,000 1,055,000
TOTAL LIABILITIES AND
OWNERS EQUITY 795,000 1,020,000 1,270,000 1,550,000
Pro Forma Income Statement
Balance Sheet Starting Pro forma Pro forma Pro forma
Year 1 Year 2 Year 3 Year 4
Revenues:
Service Income 1,100,000 1,600,000 800,000 1,000,000
Less:
Advertising Expenses 50,000.00 70,000.00 70,000.00 100,000
Rent Expenses 96,000,000 96,000,000 96,000,000 96,000,000
Utilities Expenses 59,000 55,000 60,000 65,000
Salaries Expenses 70,000 100,000 100,000 120,000
Maintenance Expenses 29,000 25,000 30,000 35,000
Total Expenses 295,000 346,000 356,000 416,00
Total Net Income 289,000 304,000 444,000 584,000
CASH FLOWS
