FINANCIAL PLAN FOR Tim Horton

Assignment 2: Expanding Your Business
Due Week 8 and worth 240 points

Referring to the same business you either started or purchased in the first assignment, write a 6-8 page paper in which you:

Outline a financial plan for your small business.
Develop a guerrilla marketing strategy for your small business.
Discuss the most appropriate location for a second store (an actual street address). Explain your reasoning.
Outline a plan for securing sources of debt financing for your second store.
Include at least two (2) references outside the textbook.

Your assignment must follow these formatting requirements:

Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions.
Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length.

The specific course learning outcomes associated with this assignment are:

Describe and analyze the necessary activities and key decisions to start a small business.
Analyze the key financial management considerations in operating a small business.
Develop a guerrilla marketing strategy for a small business.
Analyze the role of pricing, credit, and equity financing in defining a business strategy.
Use technology and information resources to research issues in small business management.
Write clearly and concisely about small business management using proper writing mechanics.

Grading for this assignment will be based on answer quality, logic/organization of the paper, and language and writing skills.

Financial Plan

I have prepared report is based on “Financial plan” on Tim Horton on coffee shop”. To prepare this report we have followed guerrilla marketing strategy for coffee. Our pricing policy will be reasonable and channel of distribution will be convenience. So our target customer will get it easily. We hope that we will carry a good and competitive market share in coffee. Tim Horton Coffee is especially for the adults. It also provides the totally fresh coffee. People are very much conscious about their health and mostly people are like the fresh food. For our new established business we will prefer skillful and capable employees who are also experience personnel in their own sector. My target market will be to anyone who enjoys coffee. Coffee is the drink of choice for many people across the world. Every morning millions of people rely on their morning fix to get going for the day. My mission is to provide a friendly, comfortable atmosphere where the customers can receive quality food, drinks and service at a reasonable price. Coffee retail is a high-volume, low-transaction business, and big coffeehouses can require a quarter of a million dollars in startup costs (Wang, 2011). For a small business, it is often better to focus on a niche offering and do it really well, rather than trying to be a jack of all trades (O’Conor, 2015).

Guerrilla marketing strategy

To create a brand identity for our Coffee:

I am aware that our brand has to do a lot with people perception so that is why we are very much focused on communicating and promoting our brand. To present our brand in public we used print and electronic media. Hence it is rightly said it is very much convenient or cheap to use social media platforms to promote our brand, also it is very much effective. To create a brand identity of our juice bar business we designed a unique corporate logo slogan. We use to advertise on both print and electronic media platforms e.g. newspaper, radio stations and TV stations etc. I will ensure that our workers wear our branded shirts at all times during working hours and I am also branding our vans, trucks and car etc. I will place our flexi banners with our company’s logo and contacts in strategic positions. I will sponsor relevant TV programs, Radio programs and community based programs. I will maximize our company’s website to promote our bar business. I am also leveraging on the internet and social media platforms like; Instagram, Facebook ,Twitter, LinkedIn, Badoo, Snap Chat, Google+ and other platforms to promote our corporate brand. I will install our Bill Boards on strategic locations. I will direct coupon mailing approach to introduce our bar to residence, workers and students in Los Angeles, California. I am engaging in road show from time to time to create awareness of our bar. I will distribute our fliers and handbills in target areas in Los Angeles, California and other neighboring cities. I will encourage the use of word of mouth by our loyal customers to promote our brand.

Maintain coffee Quality:

To ensure that quality is maintained. Tim Horton coffee quality and convenience are the main reasons why customers accept the uptick in coffee prices (Giang, 2017)

Strategic Marketing objective:

It is difficult to find coffee entering into strategic marketing alliance with one another. While, if a bar business intend forming strategic marketing alliance, it will be between them and a wholesale distributor or manufacturer of the drinks and other products that are sold in their bar. Businesses go into strategic marketing alliance with a competitor when they know that they lack one or more things that will enable them compete favorably for the available market share.

To build unique distribution system that provides ubiquity at low cost.
To build high speed, efficient and vertical integrated manufacturing capabilities to gain low cost advantage.
To reduce energy consumption during production.
To increase advertisement activities
To redesign package to a more attractive and familiar.
To make innovation in product so that it become more portable and in convenience oriented form.
To improve product quality as ever possible.

Customer Retention Strategies:

In our business to retain our customer we work hard to meet their expectations whenever they buy coffee from us. It is a fact that the success of any business is directly proportional to the numbers of repeated business they are able to generate. We ensure that all our drinks are served chilled as demanded by our customers. We also ensure that our bar is open for business 24 hours a day and 7 days a week with adequate security on ground. We get feedbacks from our customers at all times. Give our customers the flexibility to choose from a wide range of assorted drinks. Give our customers the opportunity to order drinks from our bar and get it delivered in any location of their choice within the area that we cover. We ensure that we carry our clients along when making decisions that directly affect them.

Offer incentives to our customers/Clients:

It is our marketing strategy that we will offer invectives to our customers in order to generate repeated sales from them and also to attract new customers. We create a loyalty plan that will enable us reward our loyal customers who are able to help successfully market. We will give reward, discounts or gifts during special occasions like Christmas, New Year, Thanksgiving, Independence Celebrations and Easter et al.

After Sales Service and Customer Support

We do not offer after sales services but we try to get feedbacks from our customers that patronize our bar. As regard customer support services we are not going to handle it with laxity, we will maximize our customer relationship management software applications so as to keep in touch with all our customers to make sure we carry them along when we have any promo that we know will benefit them and also to make sure they are satisfied with our services and to give them the opportunity to lodge their complains if they do have any.

Quality leadership:

The main objective of Tim Horton coffee that its responsibility to provided best quality which they promise to their customers. The main objective is to provide quality products that satisfied the customer need and their requirement so fruity crown juice deliver the quality product.

Long relationship with customer:

Tim Horton coffee provides superior value to their customer who they promised throwing advertising. So the customers are loyal with fruity crown juice brand and build long term relationship.

Communication objective:

Tim Horton coffee use different sources to attract their target customer. The objective of Tim Horton coffee awareness in our customer about new products and also produces awareness to new customer about Tim Horton coffee. It also tells their customer that they provide pure juices to their customers. It also give the knowledge of their coffee give you energy and good taste. It also gives message that their coffee is good for your health.

Appropriate location for second store

Before we start coffee business we need to find the ideal location. The ideal location would be shopping malls, theaters, offices, parks, and gyms. For instance, take a gym, those who workout and goes to the gym on a regular basis will always look for coffee. If we open a coffee near a gym then you are making good returning customers. Even other public places also help to attract customers. In general, a great location with heavy foot traffic goes a long way in setting up a successful coffee business. Also very important is a detailed and well-thought-out business plan for your future coffee shop (Neugarten, 2016).

INCOME STATEMENT

Net sales: $25500,000,00 Operating expenses

Purchase	1,15,00,000,00	Advertising	29,00,000,00
Freight In	3,50,000,00	Maintenance	30,000,00
		Salaries & Wages	10,90,000,00
		Building rent	16,60,000,00
		Repairs	8,15,000,00
		Depreciation (Land & Building)	1,50,000,00
		Depreciation (Machinery & Equipment)	1,63,400,00
		Office expenses	50,000,00
		Miscellaneous	90,000,00
		Professional fees	1,70,000,00
		Telephone	90,000,00
		Utilities	1,70,000,00
		Marketing Van	1,60,000,00
		Packaging cost	23,00,000,00

Performa Balance Sheet:

Liabilities	Dollar	Assets	Dollar
Current Liabilities		Current Assets
Account payable	4,80,000.00	Cash & Cash equivalent	4,75,00,000.00
Supplier	8,05,400.00	Inventories	17,04,500.00
Tax payable	1,05,940.00	Bank	65,53,000.00
Notes payable	9,35,000.00	Account receivables	13,00,850.00
Accrued payable	4,73,000.00	Prepaid expenses	89,00,000.00
		Marketable securities

Long term Liabilities
Bank Loan	3,46,69,800.00
Reserve fund	13,85,000.00
		Total current assets	7,4458,350.00

Owner’s equity		Fixed assets
Ali	2,75,00,000.00	Land & Building	1,94,94,965.00
Usman	1,65,00,000.00	Machinery & Equipment	4,35,00,000.00
Taha	2,75,00,000.00	Coffee material	25,26,500.00
Asim	1,65,00,000.00	Furniture	18,54,325.00
Zia	1,10,00,000.00	Computer	11,25,000.00
Mubeen	1,10,00,000.00	Cover van	35,00,000.00
		Staff vehicles	23,95,000.00
Total owner’s Equity	11,00,00,000.00
Total Liabilities	14,88,54,140.00	Total assets	14,88,54,140.00

Sources of debt financing:

Our total equipment and capital is $10,000 and we have taken a loan amount of $4000 to improve our product quality. Now our total capital is $15,000. The amount of $15,000 that we have in which areas we use this money is given below.

Plant & Machinery $5000

Transportation cost $3500

Staff vehicles for the corporate office $1500

Computer $1000

Land & Building $2000

Cover van $500

Furniture & fixture $1000

Coffee espresso $500

Total used $15000

References:

Giang, V. (2017). The business strategy behind your local coffee shop. Retrieved from: https://nationalcoffeeblog.org/2017/01/18/the-business-strategy-behind-your-local-coffee-shop/.