BMGT 330 - Project 1

Coffee Shop Start Up

The selection of the business idea is informed by the fact that it is an opportunity from which profit can truly be made.  The products to be offered by the business include coffee, teas, lattes and espresso, various pastries and some other popular food staffs.  Starting the business from scratch may require a lot of effort but comes with flexibility and high potential for maximum profits. The products to be offered by the coffee shop have a repeat buy.  A startup offering a product with repeat buy will perform well since this is the greatest aspect of long-term success for the business (Cubukcu, 2016).  The food products offered comprises of those people are willing to keep buying.  Coffee shops are also popular since they provide convenient places for people especially friends to meet. The coffee shop will also be a preferred spot for people who want to pass time reading books and magazines or even surfing the web and the same time taking beverages or snacks. The business will target people looking to hold informal meetings including students wishing to collaborate in their projects. Through the use of social media, the business will inform potential customers of its existence and location.

The coffee shop will be marketed through Invested Marketing LLC, where the products and services provided will be advertised as unique to the business, which enable will align it with the general goals.  The platform will make it possible to increase the brand awareness to the targeted customers and thus build the market share. The internet and social marketing using the platform will aim to take the business to the next level in terms of providing customer oriented products and services. It will also make it possible to test the response of customers to the products offered by the coffee shop, and thus having a measureable goal is important. The social media presence will also provide an opportunity for customers to refer their friends due to high quality products.

 The venture will also take into account economic and market risks that are likely to affect the operations and profitability. Economic risks involve the window opportunity for the venture including the economic cycles, possible geographical threats and government regulations. The market risks comprise of includes the dynamics of the industry, the potential room for growth and risks presented by other competitors (Price, 2011). The coffee shop start up can face competition and market uncertainty risks but given that food industry is unlikely to be affected by the changes in the market, the venture is worth the investment. In addition, getting a great location is essential for attracting many customers and this will lead to high yields in terms of revenue (Lim & Xavier, 2015). The location of the business will not necessarily be in high traffic area since rent is likely to be high and attract most competition. Locating the business in storefronts will work since it provides greatest responsibility; the rent is normally lesser than in places such as malls and the business hours can independently be set. The use of Invested Marketing LLC platform will be important in notifying the potential customers of its presence in the area.

The location of the business will also offer an easy access and even enough parking available for the vehicle traffic.  Providing high quality product is one way of attracting and retaining customer to the new business. This involves changing the quality of the products offered as customer preference changes and avoiding being cozy initial success but continuously striving to provide improvement the entire time Lim, (Brown,2014). Consistent high quality will involve serving the best of the regular coffees and other drinks and snacks so that to beat even the most established competitors. Providing the products in a trendy and relaxing environment will be a major success factor for the business. 

References

Price, R.W. (2011).What is entrepreneurial management? Retrieved from: https://news.gcase.org/2011/10/24/what-is-entrepreneurial-management/