Business plan

Colloquy Grog Shop

Executive Summary
Colloquy Grog Shop is a unique local bar/coffee/tapas house that provides a
friendly, effective place singles can meet. Colloquy Grog Shop is not your typical bar where
people go to meet other singles, it has a unique service called the structured conversation system
that is quite effective for allowing singles to meet each other and provide them with valuable
insight into the other person through reflective conversation.

The structured system provide an atmosphere that lowers inhibitions and

breeds confidence, allowing singles to meet other singles and gain insight into their personality
by way of thoughtful discourse. Meeting people is one of the biggest hurdles for 25-45 year old
singles. Colloquy Grog Shop provides this group with an effective solution to this
problem. Colloquy Grog Shop will reach profitability by year two and will have earned
comfortable profits of by the end of year three

Objectives

The objectives for the first three years of operation include:

To create a local tavern/coffee shop whose primary goal is to exceed customer's expectations.

To increase the number of clients by 20% per year.

To develop a sustainable start-up business surviving off of its own cash flow
Mission
Colloquy Grog Shop's mission is to provide a neighborhood bar/coffee shop where
single people can meet. We exist to attract and maintain customers. When we adhere to this
maxim, everything else will fall into place. Our services will exceed the expectations of our
customer.

Keys to Success
The keys to success will be to constantly address our customer's needs

Company Ownership
Colloquy Grog Shop is an Oregon corporation solely owned by ajay joshi
Start-up Summary

Colloquy Grog Shop will incur the following start-up costs:

• Commercial espresso machine.

• Commercial coffee machine, grinder.
• Refrigerator and freezer.
• Dishwasher.
 • Bar counter and bar stools.
• Eight tap beer system (including refrigerator unit) and pint glasses.
• Point of sale terminal with cash register.
• Computer system with internet
• 15 four-top tables and 60 chairs.
• Installation of sinks in the bar area.
• Commercial oven and range.
• Large counter.
• Assorted cook ware and utensils.
• Three telephones, fax machine and copier.

Please note that the following items which are considered assets to be used
for more than a year will be labeled long-term assets and will be depreciated
using G.A.A.P. approved straight-line depreciation method

Start-up Funding

Start-up Expenses to Fund $1,150

Start-up Assets to Fund $118,850
Total Funding Required $120,000

Assets
Non-cash Assets from Start-up $50,000
Cash Requirements from Start-up $68,850
Additional Cash Raised $0
Cash Balance on Starting Date $68,850
Total Assets $118,850
Capital

Planned Investment
Ajay $40,000
Family and friends $80,000
Other $0
Additional Investment Requirement $0
Total Planned Investment $120,000

Loss at Start-up (Start-up Expenses) ($1,150)

Total Capital $118,850

Total Capital and Liabilities $118,850

Total Funding $120,000

Start-up

Requirements

Start-up Expenses
Legal $1,000
Stationery etc. $150
Other $0
Total Start-up Expenses $1,150

Start-up Assets
Cash Required $68,850
Other Current Assets $0
Long-term Assets $50,000
Total Assets $118,850

Total Requirements $120,000

Products
Colloquy Grog Shop sells the following

1. Alcohol product

2. Beer
4 . Various kinds of coffee

3. beverage product

4. Fast food

5. Ice-cream

6. Cold drinks

Market Analysis Summary

Colloquy Grog Shop's market can be broken down into two different groups, singles and
non-singles. Both groups are well educated and are middle to upper-middle class.
Colloquy Grog Shop competes within the bar/coffee shop industry with a market niche focusing
on singles activities. By concentrating on these single activities, Colloquy Grog Shop also faces
competition from other singles groups.

Market Segmentation

Colloquy Grog Shop's customers can be broken down into two groups: singles, and non-
singles. The non-singles group is smaller by virtue of the fact that if you are meeting someone
whom you already know, the two of you can come up with the topic of conversation yourself,
therefore, Grog Shop offers this group less value. The demographics for the non-singles is
similar to the singles, to be listed below. The demographics of the singles are:

• Single: self evident.

• Professional: this characteristic is intuitive since the the underlying element of Colloquy
Grog Shop is thoughtful conversation, and most, if not all professionals are intelligent and
appreciate thought-provoking conversation.
• Income over $40,000: this to a large degree correlates to the fact that they are
professional. The one exception are teachers who are underpaid relative to their
contribution to society.

Age 25-45: the largest group of singles looking for companions

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Singles 9% 335,412 365,599 398,503 434,368 473,461 9.00%
Non-singles 7% 301,215 322,300 344,861 369,001 394,831 7.00%
Other 0% 0 0 0 0 0 0.00%
Total 8.07% 636,627 687,899 743,364 803,369 868,292 8.07%

Target Market Segment Strategy

Colloquy Grog Shop strategy will be based on communicating Grog Shop's value to
the targeted segments. This will be done through a variety of methods

The first method will be strategically placed advertisements. One place that will be used
for advertisements is the Willamette Weekly, the liberal arts magazine that details all of the
entertainment in Portland

The other form of advertising will be using "grassroots" methods where customers will
be given coupons for their friends to try Colloquy Grog Shop for the first time. The coupon will
be an economic incentive for the newcomer to try Colloquy Grog Shop. The coupon also has the
added force of a referral from a friend
Industry Analysis

Colloquy Grog Shop competes within the general bar/coffee shop industry.

The bar industry is a very broad industry. Participants in the industry do not seriously
focus on specific niches. Sure there is a flavor to specific bars, but it is not an overwhelming
trait. An example of this might be a sports bar that will typically have multiple TVs with sports
on. Beyond this "decoration," there is not a significantly prevailing theme other than the place
that serves alcohol. The value that bars offer is a place where someone can go to get alcohol in a
social setting. A secondary benefit is an opportunity to meet people. Please see the Product and
Services section for commentary on the effectiveness of a bar's ability for people to meet people.
To conclude, most bars have some sort of theme, but overriding theme is a place to socially
consume alcohol.

The coffee shop industry is made up of diverse coffee shops that typically serve coffee
and assorted coffee drinks as well as various food offerings. Coffee shops are places where
people will go to enjoy their favorite coffee beverage, to read a newspaper and relax, or to meet
people and engage in conversation. This last purpose of a coffee shop is an unstructured,
unstated purpose. It takes place at the hands of the patrons as opposed to a concerted effort by
the establishment.

Competition and Buying Patterns

Bars: there are many different types of bars or taverns. Some are better than others for
meeting people, however, none have the business mission to bring together singles

Coffee shops: : coffee shops are typically an easy-going social setting that does lend itself
for people to meet others.

Strategy and Implementation Summary

 Colloquy Grog Shop's implementation strategy is based on a targeted advertising
campaign as well as word-of-mouth referrals. Colloquy Grog Shop is confident that the referrals
will be an excellent source of business because of the uniqueness of their singles service as well
as its sheer effectiveness. Colloquy Grog Shop will steadily build a loyal customer bas

Competitive Edge

Colloquy Grog Shop's competitive edge is based on their unique approach to getting
singles together using the structured conversation system

Sales Strategy
Stated in an earlier section, the competitive advantage of the structured conversation system
is what will drive people to Colloquy Grog Shop and will develop long-lasting customer
relationships

Offering an ever changing selection of tapas encourages repeat visits. Additionally, the choice of
tapas encourages people to order several, increasing the per person bill because

1) the tapas offer a reasonable portion of one thing that in itself is not filling for a meal by itself,
and

2) tapas are a community food where the table can order many tapas and everyone gets to try
some.

Acknowledging that the food and drink are the revenue drivers, the servers will be well trained in
the products as well as up selling

Sales Forecast
Year 1 Year 2 Year 3
Sales
Drinks $105,921 $271,254 $296,874
Food $69,908 $179,028 $195,937
Total Sales $175,829 $450,282 $492,811

Direct Cost of Sales Year 1 Year 2 Year 3

Drinks $26,480 $67,814 $74,219
Food $29,361 $75,192 $82,293
Subtotal Direct Cost of Sales $55,842 $143,005 $156,512

Personnel Plan
Year 1 Year 2 Year 3
Ajay joshi $36,000 $40,000 $45,000
Chef $38,500 $38,500 $38,500
Line cook $14,400 $17,280 $17,280
Server $11,200 $13,440 $13,440
Server $11,200 $13,440 $13,440
Server/bartender $11,200 $13,440 $13,440
Bartender $11,200 $13,440 $13,440
Dishwasher $11,200 $13,440 $13,440
Total People 8 8 8

Total Payroll $144,900 $162,980 $167,980

Break-even Analysis

Monthly Revenue Break-even $24,867

Assumptions:
Average Percent Variable Cost 32%
Estimated Monthly Fixed Cost $16,969

Conclusion

From all above information we can say that It is vary good opportunity for started the bar and
coffee shop in Kolkata. And offer having a successfully running there we are planning to open
our business in the entire metro city,