Richwoman coffee shop location and business strategy

Distance between coffee shop “Richwoman” and the London Metropolitan University is about 1200 square foot. According to Canlas, 28 525 students, 2400 academic staff of Metropolitan University will be a customer of Richwoman (Canlas, 2011).

The owners have secured this location through a three-year lease with an option for extending. They have also provided £140000 of the required £170000 start-up funds. The remaining capital will be obtained through Barclays’ commercial loans.

Rich woman is registered as a Limited Liability Corporation in London. ZhanylsynIzmagambetova owns 55 % of the shares of this firm. Her friends, Arman, as well as SholpanIzmagambetova and AnargulIzmagambetova,  hold the remaining part of shares of Richwoman, LLC.

Financing for the firm comes from two sources- bank loans and owners’ money. Two major holders, ZhanylsynIzmagambetova and AimanIzmagambetova, have contributed £70000 and £30000 respectively. All other investors have contributed £40000, which brings the total investments to £140000. The remaining £30000 needed to cover the start-up expenses and assets came from the two banks loans-a one-year loan in the amount of £10000 and a long-term loan of £20,000. Both loans were secured through Barclays. Thus, total start-up loss is assumed in the amount of £27680. (Barclays, Loans, Followed by URL: Retrieved on 30.09.201

Business description

2.1. Company overview

Coffee shop “Richwoman” will open 2013 year, like London limited liability company and will sell coffee, other beverages, and snacks in its 1200 square feet premium coffee shop located near the London Metropolitan University campus.  Richwoman’s major investors are ZhanylsynIzmagambetova and AimanIzmagambetova who cumulatively hold over 70% of the firm. The start-up expense of the firms expected in the amount of $27680.

2.2. Product Description

The menu of the Richwoman coffee shop will be built around espresso-based coffee drinks such as americano, cappuccinos, lattes, mochas, etc. Each of the espresso-based drinks will be ordered with whole, skimmed, or soy milk. Each of the coffee beverages is based on a ‘shot’ of espresso beverage, which is made in the espresso machine by forcing heated water through the ground coffee at high pressure. Such espresso shots are combined with steamed milk or other additives like caramel, cocoa, etc., to prepare the espresso-based beverages. Proper training methods are of paramount importance for these drinks. A slight deviation from the amount of coffee in the shot, the size of the coffee particles, the temperature of milk, etc., can negatively affect the quality of the prepared drink (Nagaraj, 2009).



Figure 1. Richwoman’s products (Richwoman 2012)

2.3. Ownership structure

Figure 2: Company’s management structure.

Richwoman is registered as a Limited Liability Corporation in London. ZhanylsynIzmagambetova owns 51% of the company. Her cousin, Aiman, as well as SholpanIzmagambetova and AnargulIzmagambetova, hold minority stakes in Richwoman, LLC. We registered like Limited Liability Corporation in Companies House.

2.4. Company’s mission

Richwoman will become the foremost coffee shop in the area. We will serve a perfect product at a very reasonable price. We will also be a place of meeting for artists and writers and a place for them to show off their work. We will create a climate conducive to creative expression and promote the creative process. (Botterill, 2011)

2.5. Legal consideration

When ordering coffee beverages in a coffee shop the customer is agreeing to pay for food, drink, and service. This creates a contract to which the supply of products and Services Act 1982 applies.

This act does not apply to the UK. Even though, the parts of the 1982 Act giving rights to consumers for goods supplied alongside services (as opposed to the services themselves) DO apply in the UK. Additionally, UK common law offers similar protection.


2.6. Goals

Richwoman’s goals for the first year of operations are:

  • Become selected as the “Best New Coffee Bar in the London Metropolitan College’s area” by the local restaurant guide.
  • Acquire equipment necessary for business, i.e. coffee pots, cappuccino machines, blenders, etc.
  • Make an agreement with coffee distributors, and bakery vendors.
  • Create a cozy, artist friendly environment (i.e. choice of colors, choice of music, decor)
  • Maintain a 70% gross margin.
  • Turn in profits from the first month of operations. (Wentz, 2007)

Keys to Success

The keys to success will be:

  • Store design that will be both visually attractive to customers, and designed for fast and efficient operations.
  • Employee training to insure the best coffee preparation techniques (Wentz, 2007).
  • Marketing strategies aimed to build a solid base of loyal customers, as well as maximizing the sales of high margin products, such as espresso drinks.

Vision and Mission

Richwoman will become the foremost coffee shop in the area. We will serve a perfect product at a very reasonable price. We will also be a meeting place for artists and writers and a place for them to show off their work. We will create an atmosphere conducive to creative expression and promote the creative process. (Botterill, 2011)

2.7. Products


Richwoman will offer its clients the best tasting coffee beverages in the region. This will be achieved by using high-quality ingredients and strictly following preparation guidelines. The store design, marketing activities and menu listings will be focused on maximizing the sales of higher margin espresso drinks. Along with the espresso drinks, brewed coffee and teas, as well as some refreshment beverages, will be sold in the coffee bar. Richwoman will also offer its customers pastries, small sandwiches, and salads. For the gourmet customers that prefer to prepare its coffee at home, Richwoman will also be selling coffee beans. “Richwoman” coffee shop will use a menu of Starbucks in the future (Menu of Starbucks, Followed by URL:

The menu offerings will be supplemented by free books and magazines that customers can read inside the coffee shop.

Product Description

Accoording to Nagaraj(2009),the menu of the Richwoman coffee shop will be built around espresso-based coffee drinks such as amiricano, cappuccinos, lattes, mochas, etc. Each of the espresso-based drinks will be offered with whole, skimmed, or soy milk. Each of these coffee beverages is based on a ‘shot’ of espresso, which is made in the espresso machine by forcing heated water through the ground coffee at high pressure. Such espresso shots are combined with steamed milk and/or other additives like caramel, cocoa, etc., to prepare the espresso-based beverages. Proper training methods are of paramount importance for such drinks. A minor deviation from the amount of coffee in the shot, the size of the coffee particles, the temperature of milk, etc., can negatively affect the quality of the prepared drink.

Sales advertising

Three thousand advertisements will be distributed on the Metropolitan University campus, at the malls and in the selected office buildings within one month prior to the opening of Richwoman by Distribution Company. Subsequently, free postcards with Richwoman endorsement will be printed to increase company visibility among the patrons.

2.8. Suppliers

Coffee shop “Richwomen” is a trusted and welcoming company for suppliers. (Owsik, 2011). Through his supplier diversity program, it works to increase his business relationships with minority- and women-owned suppliers.

Richwoman is dedicated to creating a workplace that values and respects people from diverse backgrounds and enables its employees to do their best work. This coffee shop honors the unique combination of talents, experiences, and perspectives of each partner, making Richwoman success possible.

As such Richwomen expects his partners to act with a spirit of kinship, tolerance, and humanity toward all customers making his stores welcoming to everyone (Owsik, 2011).

Business Opportunities

3.1. Location

Figure 3. Location of Richwoman

Figure 4. Geographic area

“Rich woman coffee” bar will be located on the first floor of the commercial building at the 231 Holloway road, London, the United Kingdom (Dobbin C, 2012). Richwoman has rented a one-year lease of the vacant 1500 square feet premises previously occupied by a beauty salon “Alternatives”.

The lease contract has an option of renewal for three years at a fixed rate that Richwoman will execute depending on the financial feasibility of its business.

The floor plan will include a 300 square feet back coffee shop office and a 1300 square feet coffee bar, which will include a seating area with 14 tables, a big kitchen, storage area, and three bathrooms. The space in the coffee bar will be approximately distributed the following way-1100 square feet (i.e., 55% of the total) for the seating area, 500 square feet (26%) for the area of production, and the last 330 square feet (19%) for the area of customer service.

This property is located in a commercial area within a walking distance from the London Metropolitan University campus on the corner of a major thoroughfare connecting affluent Camden Town neighborhood with the busy downtown commercial area. The commercially zoned premises have the necessary water and electricity hookups and will require only minor remodeling to accommodate the espresso bar, kitchen and storage area (Dobbin C, 2012).

The coffee shop’s open and clean interior design with modern wooden decor will convey the quality of the served beverages and snacks and will be in-line with the establishment’s positioning as an eclectic place where people can relax and enjoy their cup of coffee. The clear window displays, through which passerby will be able to see customers enjoying their drinks, and outside electric signs will be aimed to capture the attention of the customer traffic.

3.2. Competitor and SWOT analysis

Competitor analysis

Competitors Strengths Weaknesses
Café Nero ·         Caffe Nero always pays more attention when selecting sites in order to create a disciplined environment.

·         It has the ability to capture and rise its market share day by day.

·         The company has the opportunity to open a new store every week.

·         It has high quality management and a wellcheck and balance system which is also used for the analysis of employees as well as outlets.

·         It is dependent only on its main product, the retail of coffee, which is not enough for itto diversify and compete in other sectors.

·         Aggressive expansion may lead to managerial and financial problems.

Costa ·   Costa is a famous brand which is associated with high quality

·   Company well trained and treated employees.


·         Prices are high which are suitable for middle to high income clients

·         Coffee quality is not as good as the reputation

·         Company has aggressive expansion

·         Their products are unhealthy products.

Starbucks ·         Starbucks Corporation is a very profitable organization, earning in excess of $600 million in 2004.The company generated revenue of more than $5000 million in the same year.

·         It is a global coffee brand built upon a reputation for fine products and services. It has almost 9000 cafes in almost 40 countries.

·         Starbucks was one of the Fortune Top 100 Companies to Work For in 2005. The company is a respected employer that values its workforce.

·         The organization has strong ethical values and an ethical mission statement as follows, ‘Starbucks is committed to a role of environmental leadership in all facets of our business.

·         Starbucks has a reputation for new product development and creativity. However, they remain vulnerable to the possibility that their innovation may falter over time.

·         Starbucks Corporation is a very profitable organization, earning in excess of $600 million in 2004.The company generated revenue of more than $5000 million in the same year.

·         It is a global coffee brand built upon a reputation for fine products and services. It has almost 9000 cafes in almost 40 countries.

SWOT Analysis


  • Based on its smaller size, the fact that it is not a franchise, the Richwoman is a unique coffee shop concept unlike any other in the Holloway road.
  • The owner has firsthand experience, in operating and starting new restaurants.
  • Handpicked baristas will bring professionalism and enthusiasm to the shop.
  • Strong relationships with third party vendors.
  • The structured conversation system (Stanworth, 2004)


  • Franchises are the easiest way and often the safest conduit to start a café; the café will not have the backing of one of these established entities.
  • The Richwoman has a minimal budget and is competing against larger and more established coffeehouses for market share.



  • The Holloway road demographics support the need for a unique coffee shop.
  • Additional opportunities to target the active and recently retired target market and 45 years+ age group.
  • A small slice of a much bigger pie is the goal. Only 40 percent of the nation’s coffee drinkers are consuming premium ground and whole bean coffee. Encouraging coffee drinkers to become coffee connoisseurs is the key to continued growth.
  • The ability to lower variable costs through efficiency gains.
  • Increasing sales opportunities as people become familiar with the advantages of the structured conversation system (Abdullah &Rajgopal 2003).



  • Competition from taverns.
  • Competition from other sources of singles meeting events.
  • A slump in the economy which will decrease discretionary spending.


  1. Marketing strategy

4.1. Market sigmentation

Richwoman will strive to build a loyal customer base by offering a great tasting coffee in a  relaxing environment of its coffee bar located close to the bustling Metropolitan University campus. Richwoman will concentrate its marketing activities on reaching the University students and faculty, people working in offices located close to the coffee bar and on sophisticated teenagers. Our market research shows that these are the customer groups that are most likely to buy gourmet coffee products (McDonald,Dunbar, 1998).

Since gourmet coffee consumption is universal across different income categories and mostly depends on the level of higher education, proximity to the Metropolitan University campus will provide access to the targeted customer audience.

The chart and table below outline the total market potential (in a number of customers) of gourmet coffee drinkers in London, the UK.


Market Analysis
    Year 1 Year 2 Year 3 Year 4 Year 5  
Potential Customers Growth           CAGR
Students and Faculty 2% 18000 18360 18727 19102 19484 2.00%
Teenagers 1% 3000 3030 3060 3091 3122 1.00%
Office workers 2% 8000 8160 8323 8489 8659 2.00%
Other 0% 5000 5000 5000 5000 5000 0.00%
Total potential customers 1.63% 34000 34550 35110 35682 36265 1.63%


  • Costing

The major two sources-owners’ investments and bank loans are used as the finance of a firm. Two major owners, Zhanylsynand Aiman, have contributed £70000 and £30000 respectively. All other investors have contributed £40000, which brings the total investments to £140000. The remaining £30,000 needed to cover the start-up expenses and assets came from the two banks’ loans-a one-year loan in the amount of £10000 and a long-term (five years) loan of £20,000. Barclays Bank has secured both the loans, thus, total start-up loss is assumed in the amount of £27680.

Start-up expenses






Expenses £
Legal, accounting service expenses 1300
Marketing promotion, as well as printing 3580
Consultants fees 3000
Insurance(general liability, workers compensation 2400
Pre-paid rent expenses for 1 month(£1.76 per sq/f 4400
Premises remodelling. 10000
Other start-up expenses (stationary, phone, utility) 3000
Total start-up expenses 27680

Required start up assets

Operating capital: 67123
employees, owner’s salaries (2 months) 23900
cash reserves(first 3months of operation 43223
Start-up inventory: 16027
Coffee beans (12 regulars, 5 decaffeinated brands) 6000
Coffee filters, baked goods, sandwiches, tea,etc. 7900
Retail supplies (napkins, coffee bags, cleaning, etc.) 1840
Office supplies 287
Equipment: 59170
Espresso machine 6000
Coffee maker 900
Coffee grinder 200
Food service equipment(microwave, toasters, etc) 18000
Storage hardware (bins, utensil rack, shelves, etc.) 3720
Counter area equipment (counter top, sink, etc.) 9500
Serving area equipment (plates, glasses, flatware) 3000
Store equipment (cash register, security, etc) 13750
Office equipment (PC, fax/printer, phone, etc) 3600
Other miscellaneous expenses 500
Total required to start up assets 142320


Total Funding






Start-up Funding
Start-up Expenses to Fund 27680
Start-up Assets to Fund 142320
Total Funding Required 170000


Balance sheet


Non-cash Assets from Start-up 75197
Cash Requirements from Start-up 67123
Additional Cash Raised 0
Cash Balance on Starting Date 67123
Total Assets 142320
Liabilities and Capital
Current Borrowing 10000
Long-term Liabilities 20000
Accounts Payable (Outstanding Bills) 0
Other Current Liabilities (interest-free) 0
Total Liabilities 30000
Planned Investment
Zhanylsyn 70000
Aiman 30000
All other investors 40000
Additional Investment Requirement 0
Total Planned Investment 140000
The loss at Start-up (Start-up Expenses)
Total Capital 112320
Total Capital and Liabilities 142320


  • Segmentation, targeting, and positioning
Targeting Explanation
Geographic Urbanization: concentrating on London city

Climate: temperate oceanic climate

Demographics 1) Age group: Young adults

Nice place to relax, chat, chilly music

Trendy coffees that present their lifestyle.

2) Age group: Middle age

The place to calm down, relax, chat, read a book

Possibility for a small (healthy) snack with a great coffee.

Occupation: students and youngsters, professionals, families, mature consumers

Social class: Middle Class, Upper Middle Class, Privileged Class

Behaviour User frequency: 1-3 times per year

Occasions: Christmas, New Year’s Eve

Phychographic 1) Coffee lovers

Trendy, fresh, high quality, newly developed coffee (some: fairtrade)

2) Atmosphere lovers

A great third place

Richwoman product’s price is high because it has higher labour cost working in London and higher facility costs (Kotlet et al. 2009).

  • Marketing mix
    • Product
Coffee and Teas Refreshing Alternatives Eatables
Coffee with Milk Smoothies Sandwiches

Caffe Mocha

Caffe Latte




Paneer Tikka

Cheese and Tomato

Chicken Tikka

Smoked Chicken

Black Coffee Granitas Rolls




Blue Curacao

Lime Ice

Mixed Fruit


Guava Crush

Kadhai Paneer


Chicken Masala



Dessert Coffees Milk Based Pasta
Latte Bianco

Caffe Borgia



Mocha Freeze


Tangy Tomato


Creamy Chicken


Cold Coffees Iced Tea Hot tea



Richwoman Blast

Iced Caffe








Earl Grey

Coffee Add-ons Other Drinks Desserts








Ice Cream


Ginger Fizz

Kinley Water

Walnut Brownie

Mocha Excess



Dark Temptation



Chocolate Chip


Almond Raisin

Apple Cake


4.4.2. Price

Richwoman has a ‘Skim Pricing Policy’. They began at a higher price and skimmed the cream for the market. With the sudden spurt of growth in a number of outlets, came the benefits of economies of scale. Because of this, they have been able to gradually lower their prices, and appeal to different segments of their target market. Currently, their prices are the lowest they have ever been, and they can competitively match their pricesagainst Costa’s prices. The prices are constantlychanging though, and the last 1-year has seen 3 changes (mostlyreductions) in prices. This gradual price reduction meant that Richwoman could maintain its profit- maximization policy until it could earn large cost savings because of the benefits of high volume. The main factors that affect their pricing are their cost of goodssold (Belohlavek 2008).The costs are quite high because of imports a majority of its products and product. Considering that Richwoman is trying to target a market whose age range is between 18 and 60 years, a pricing policy appealing to this segment is difficult. Extremely low prices act as a deterrent to some customers who might regard it as an indicator or quality, while very high prices cannot be afforded bymost of the youth. But since Richwoman’s current consumer profile is quite young, their prices are mostly inexpensive, and at par with their competitors

4.4.3. Process

The order and delivery process at Richwoman is based on self- service, where a customer goes up to the counter to place his order and goes back to the counter to pick his delivery once it is prepared.

4.4.4. People

The people at Richwoman are characteristically trained to be Pleasant, Polite and Positive. (Lawrence, 2011). They ensure you have a quiet, uninterrupted visit and provide an escape from the daily pressures of life. Their uniforms are in sober shades of brown and orange and contribute to the overall laid-back feeling of the cafe.

4.4.5. Promotion

According to research, over 65% of Richwoman’s clients are in the15- 30 age- group. The majority of these are students of London Metropolitan University. Richwoman positions itself as a brand for anyone who loves coffee. Their products, services, and outlets are more like the traditional European cafés, wherepeople would meet for the love of coffee, and for an intellectual appealing time. They position their outlets as a place “where theworld meets”, and they look to appeal to anyone in the 14- 60age group that loves good coffee and looks for a nice quiet time (Belohlavek 2008).


4.5. Sales projection

The sales transactions will be handled by Richwoman baristas. To speed up the customer service, at least two employees will be servicing clients-while one employee will be preparing the customer’s order, the other one will be taking care of the sales transaction. All sales data logged on the computerized point-of-sale terminal will be later analyzed for marketing purposes. Richwoman will use the banners and flyers to use customer testimonials and cross-promotions with other companies in the society in order to increase their customer base. (Ligus, 1993)

Food expenses are assumed at 25% for coffee beverages and 50% for retail beans and pastries(Lawrence, 2011). Certain sales seasonality will be dictated with revenues slightly decreasing during the school vacation periods by proximity to the London Metropolitan University campus.

Sales Forecast £    
  Year 1  Year 2  Year 3
Coffee beverages 350400 385440 423984
Coffee beans 87600 96360 105996
Pastries, etc. 146000 160600 176660
Total Sales 584000 642000 706640
Direct Cost of Sales  Year 1  Year 2  Year 3
Coffee beverages 87600 96360 105996
Coffee beans 43800 48180 52998
Pastries, etc. 73000 80300 88330
Subtotal Direct Cost of Sales 204400 224840 247324


  1. Business Operations

5.1. Service offered

Although the product description and 4Ps are fully described in the above sections, the company also provides some services for its enhance its reputation. Specifically, there will be 24/7 hotline contact so that any complaints will be replied by employees immediately. Also, listening to customer’s opinions is very important in order to develop a business, thus any feedback from customers is welcomed. Customers can send feedback by submitting a form on the company’s website or registered for feedback form at the stores, and all opinions will be listened to by the customer services department. In brief, apart from providing consumers products with the highest quality, Richwoman also concentrates on improving its customer service which enhances the customer’s value (Maull, Childe, Bennet, Weaver, Smart, 1995).

5.2. Operational personnel

  • Miss ZhanylsynIzmagambetova

Miss ZhanylsynIzmagambetova holds a Bachelor’s Degree in Finance from Kazakh-British Technical University. She’s worked for several years as a bank officer at Tsesna Bank in Kazakhstan.

  • MissAiman

Miss Aimanhas extensive business contacts in London that he will leverage to help his new venture succeed.

  • Miss Sholpan

Miss Sholpanhas a Bachelor’s Degree in Psychology from the City of London University. For the last five years, he has worked as a manager of DEF Ristorante, a successful Italian restaurant in London, the UK. Under Miss Sholpan’s management, the restaurant has consistently increased sales while maintaining a lower than average level of operating expenses.

However, because of the investors’ other commitments, they will not be involved in the daily management decisions at Richwoman. A professional manager ($35000/yr) will be hired who will oversee all the coffee bar operations. Two full-time baristas ($25000/yr each) will be in charge of coffee preparation. Four more part-time employees will be hired to fulfill staffing needs. In the second and third years of operation one more part-time employee will be hired to handle the increased sales volume.

  1. Technology

1) Food service equipment

The technology Richwoman is dependant upon is the micro-roasting equipment it will use to roast the beans on-site. This equipment is serviced through the supplier; Espresso Services, Inc. Richwoman will also use our website to advertise specials and events and to post the monthly menu and talent offerings. We will use email to communicate with customers wishing to sign-up for email specials. Eventually, we would like to institute online ordering for roasted coffee and specialty merchandise, but that plan is at least two years off.

  1. The Point of Sale

The Point of Sale (POS) technology Richwoman will use allows for order taking when the lines are long, keeps customer discount information, inventory, and revenue/profit information. The system has a battery back-up in case of power surges and temporary power losses (Krogstie 2007). The Richwoman’ s logo will be Federally Trademarked. Although the beverages will not be protected in content, beverage names for specialty drinks reflecting the theme of the shop will be protected under the Federal Trademark laws.

The security system Inspirational Grounds uses will protect the contents of the store and reduce insurance premiums.

  1. 3. Espresso machine and coffee grinder

An espresso machine is one of the most important things to have in your coffee shop. In buying an espresso machine, you should make sure that you get one for decaf and one for regular espresso. You can get a manual, semi-automatic, automatic, or super-automatic, depending on the abilities of your barista. Another important equipment is a coffee grinder. Having this enables you to grind different types of coffee for the various tastes of people. Get different machines for decaf and regular coffee (Oliver 2007).

  1. Coffee maker and blender

Coffee maker equipment makes it possible to make freshly brewed cups of coffee for your customers. It is one of the core equipment that you should have. Purchase a coffee maker that fits the size and capacity of your coffee shop. Another important technology in Richwoman is a blender. The company needs this equipment to be able to make different types of coffee-based drinks or others. Make sure that it is powerful enough since the companies going to use this often.

  1. Refrigerator and freezer

Of course, you need storage space to keep all of your ingredients fresh for consumption. Like the other equipment, buy these according to the size of your coffee shop and the food and drinks that you will offer(Krogstie2007). There are also other equipment that you need to have if company is going to start Richwoman but these are the key ones that coffee shop should have. For great deals, you can search Amazon for great coffee shop equipment to get the company’s coffee shop business up and running.


  1. Financial Plan

7.1. Financial system feasibility

Coffee shop “Richwoman” will capitalize on the strong demand for high-quality gourmet coffee. The owners have provided the company with sufficient start-up capital. With successful management aimed at establishing and growing a loyal customer base, the company will see its net worth doubling in two years. Rich woman will maintain a healthy 65% gross margin, which combined with reasonable operating expenses, will provide enough cash to finance further growth.

7.2. Financial plan

  1. Cash flow statement
(£) Year 1 Year 2 Year 3
Cash Received      
Cash from Operations
Cash Sales 584000 642400 706640
Subtotal Cash from Operations 584000 642400 706640
Additional Cash Received
Sales Tax, VAT, HST/GST Received 0 0 0
New Current Borrowing 0 0 0
New Other Liabilities (interest-free) 0 0 0
New Long-term Liabilities 0 0 0
Sales of Other Current Assets 0 0 0
Sales of Long-term Assets 0 0 0
New Investment Received 0 0 0
Subtotal Cash Received 584000 642400 706640
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending 124600 143800 155144
Bill Payments 327865 388715 420945
Subtotal Spent on Operations 452465 532515 576089
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out 0 0 0
Principal Repayment of Current Borrowing 3300 3300 3300
Other Liabilities Principal Repayment 0 0 $0
Long-term Liabilities Principal Repayment 0 3585 3961
Purchase Other Current Assets 0 0 0
Purchase Long-term Assets 0 2000 2000
Dividends 0 0 0
Subtotal Cash Spent 455765 541400 585350
Net Cash Flow 128235 101000 121290
Cash Balance 195358 296358 417648
  1. Income statement

Annual projected sales of £584000 in the 2013 year (yr.) translate into £254.00 of sales per square foot, which is in line with the industry averages for this size of the coffee bar. Overall, as the company gets established in the local market, its net profitability increases from 17.06% in 2013 yr. to 17.63% in 2015 yr. The table below outlines the projected Profit and Loss Statement for the 2013-2015 years.

Income statement
£ Year 1 Year 2 Year 3
Sales 584000 642400 706640
Direct Cost of Sales 204400 224840 247324
Other 0 0 0
Total Cost of Sales 204400 224840 247324
Gross Margin 379600 417560 459316
Gross Margin % 65.00% 65.00% 65.00%
Payroll 124600 143800 155144
Sales and Marketing and Other Expenses 25800 27600 31000
Depreciation 5400 5500 5500
Rent 48400 52800 52800
Rent 6000 6000 6000
Maintenance 5840 6424 7066
Utilities/Phone 9000 9500 10000
Payroll Taxes 18690 21570 23272
Other 0 0 0
Total Operating Expenses 243730 273194 290782
Profit Before Interest and Taxes 135870 144366 168534
EBITDA 141270 149866 174034
Interest Expense 2821 2326 1618
Taxes Incurred 33740 35510 42424
Net Profit 99308 106530 124491
Net Profit/Sales 17.00% 16.58% 17.62%
  1. Balance sheet
Balance Sheet
£ Year 1  Year 2  Year 3
Current Assets
Cash 195358 296358 417648
Inventory 21175 23293 25622
Other Current Assets 0 0 0
Total Current Assets 216533 319651 443270
Long-term Assets
Long-term Assets 59170 61170 63170
Accumulated Depreciation 5400 10900 16400
Total Long-term Assets 53770 50270 46770
Total Assets 270303 369921 490040
Liabilities and Capital
Current Liabilities    
Accounts Payable 31974 31947 34836
Current Borrowing 6700 3400 100
Other Current Liabilities 0 0 0
Subtotal Current Liabilities 38674 35347 34936
Long-term Liabilities 20000 16415 12454
Total Liabilities 58674 51762 47390
Paid-in Capital 140000 140000 140000
Retained Earnings -27680 71628 178159
Earnings 99308 106530 124491
Total Capital 211628 318159 442650
Total Liabilities and Capital 270303 369921 490040


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While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.


Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.


In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.


Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.


We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!


We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.


Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.

What discipline/subjects do you deal in?

We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.

Are your writers competent enough to handle my paper?

Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.

What if I don’t like the paper?

There is a very low likelihood that you won’t like the paper.

Reasons being:

  • When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
  • We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.

In the event that you don’t like your paper:

  • The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
  • We will have a different writer write the paper from scratch.
  • Last resort, if the above does not work, we will refund your money.

Will the professor find out I didn’t write the paper myself?

Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.

What if the paper is plagiarized?

We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.

When will I get my paper?

You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.

Will anyone find out that I used your services?

We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.

How our Assignment  Help Service Works

1.      Place an order

You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.

2.      Pay for the order

Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.

3.      Track the progress

You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.

4.      Download the paper

The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.

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