Question

In: Accounting

Create a business model based on the information below: Lyly coffee and bakery shop expects to...

Create a business model based on the information below:

Lyly coffee and bakery shop expects to raise $100,000 of capital, $50,000 stake, $50,000 as a 5 years loan.

Solutions

Expert Solution

Business model of the coffee shop
Particular   Expenses
Interior and furniture of the shop    20,000.00
Annual rent of the shop    10,000.00
Annual staff cost    25,000.00
Advertisement      15,000.00
Stock      12,000.00
Electronic appliances    12,000.00
Cash      6,000.00
  1. Furniture is on the most impaotant elemnt of the coffee shop . Ambience is what attracts the customer therfore a lot of amount needs to spent to make our shop attractive
  2. Rent is part of indespensible requierment
  3. Staff of high order is required to serve in the coffeshop and also for the cooking and baking purpose . The amount allocated may me too much and there may be alittle cost saving on this front.
  4. Advertisement is the most important part of the business . The customer needs to bemade aware about shop and the bakrey.

The coffee shop will be themed as per the popular reality show friends and will be namd the Central Perk . This is one of the most popular show in the world and the youth which is our target audience follows it hwad over heals. No other coffee shop is based on any theme in the ara which maight make it a popular attraction.


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