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Edynett Coffee House Business Plan

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Executive Summary

Edynett Coffee House is looking forward to becoming a must-have for the addicts of the local coffee. Coffee houses have become a common feature of American life, where millions of people stop every day at espresso coffee drinks. 

Cappuccino attracts the highest class of people bringing with it great sales. Vanilla ice coffee drink and Mocha latte are other types of drinks available at Edynett Coffee House. With the increasing demand for gourmet coffee and high service, Edynett coffee house will capitalize on its proximity to various universities and offices to establish a team of repeat customers. Edynett will continue to extend its high-quality services to its customers by advancing and innovating mobile technologies, opening new channels, and discovering new markets.

Edynett Coffee House is a new business that aims at opening several branches across the U.S and be the leader in the premium coffee house industry and the largest coffee shop in the entire world. The company’s objective is to make Edynett Coffee House brands the most respected and recognized brands across the United States and the world. This business plan will extensively cover the organizational structure of the business, licenses required. The marketing plan and service plan and other areas covered in this business plan project are advertising forms for the company, SWOT analysis, and financial plan. The business will start as a partnership. All the partners will be the co-owners where they will have equal rights to manage the business. The business organizational structure will affect all its operations, including leadership, communication, and management. The company will have the necessary legal licenses for operating a coffee house, like a health inspection certificate, business, and liability insurance, among others. Coffee House Company has a marketing mix(4Ps) that will support the business position as a leader in the coffee house. The essential product that will be discussed in the product plan will be coffee drinks.

Edynett Coffee House Business Plan


Edynett Coffee House is a new and upcoming coffee drink business that deals with high-quality drinks specially made from fine Arabica with different flavourings. The company will start its operations in Michigan State before expanding to other parts of the United States. The firm will operate in a 2,600 square foot coffee bar near Michigan State University. The partners will secure the location through a five-year lease with an option of extension. The partners will also provide $200,000 of the required $300,500, and the remaining will be obtained through a business loan from Bank of America.

Form of Business Ownership

The business will be a general partnership type of business ownership where four individuals will be partners. The partners will agree to share in the assets, profits, and legal and financial liabilities. As partners, there will be an agreement to unlimited liability where either of the partner’s assets may be liable to the partners’ obligations.

Organizational Structure

All partners in this coffee drink business are considered co-owners. Partners have equal rights in business management; they will have joint business ownership of the firm for-profit and collective decision making concerning the business. The organization of the Edynett Coffee House will influence all areas of the company. The partners will ensure that the organizational structure is in line with the needs of the business.

Licenses Needed

A clearance from local health authority and foods and drugs agencies is a must-have to operate a coffee shop. Other kinds of licenses needed are food handler certificate and kitchen clearance certificate. Other legal requirements needed are:

  • Business and liability insurance.
  • A recent inspection report.
  • Business license.
  • Fire certificate.
  • A copy of the license for the service support facility.

It is vital noting that when starting a coffee shop business, there are significant insurance policies that are required. In the United States, you must have a basic insurance cover for the company.

Marketing Plan

Lynett business will have a marketing mix in line and supports the industry’s business position. The marketing mix will identify the marketing plan’s key components: product, place, promotion, and price (Rowley, page 131). The marketing mix ensures that the right products are offered at the correct location or area at the right price. Lynett product in the marketing mix presents what the business provides to customers. The main categories of Edynett’s development will be coffee, baked goods, smoothies, tea, and other beverages. The place will be in coffee houses and cafes, and the main avenues to reaching customers are through advertisements and mobile apps. The promotion will use communication strategies to pass information about the firm and persuade the customers to buy the products. Some of the promotional approaches are public relations, advertising, sales promotions, and word-of-mouth marketing. Edynett will use a premium pricing strategy to take advantage of individuals in purchasing costly business products because high prices are associated with high value.  

Product / Service Plan

Edynett Coffee House will provide its consumers with the best quality and tasty coffee products or beverages in the region. This will be realized through the use of high-quality ingredients and effectively following up standard preparation guidelines. Edynett Coffee House will offer products like brewed coffee, baked goods, smoothies, beverages, tea, and other foods and beverages during the first year of operation. Since some business clients prefer making their coffee drink at home, the business will also be selling coffee beans. These products are uniquely made to satisfy the needs and preferences of the customers. The business products will be sold through coffeehouses and through online stores that the business will have opened.   


The business will become famous through word-of-mouth advertisement, especially from its target customers who are youngsters from the university. It will be the firm’s core business to provide its customers with the best customer experience to motivate the people to spread good and positive words about the coffee house. The firm will also advertise through print media, television, and the internet. Sales promotion will be used to attract more people to buy more of the products.

Operation Plan

The operating plan outlines the business’s physical requirements, including equipment, retail space, inventory needs, labour, and many others. The company will have its location along with Michigan State University. It will operate in a 2,600 square in a well-maintained building, a conducive and excellent structure. The firm will have a five-year lease at $3,500 per month, but there will be room for extension. Utilities like gas, internet, water, electricity, phone are estimated to cost around $1000 per month.

SWOT Analysis

SWOT Analysis is a strategic management tool that analyzes an entity’s strengths, weaknesses, opportunities, and threats. The Edynett Coffee House’s powers will deal with its internal factors that the firm can use to address its weaknesses (Phadermrod, Boonyarat, Richard Crowder, and Gary Wills, 194-203). Also, strengths will protect the business against the competition. Some of its main forces will be a strong brand, a more comprehensive supply chain, and diversification. Weaknesses are internal factors that limit the capacity of the business. These are high prices, limitations of its products, and generalized standards. Opportunities present for the company are diversification of the business, expansion, and partnership with other firms. Threats that will face the firm will be imitation and increased competition.

Financial Plan

The estimated cost will be $250,000 for operating capital and opening. Long term assets will cost $72,000, while short-term assets will be $20,000. Total start-up expenses will amount to $157,000. Partners will contribute $200,000, and the remaining 100,500 of the total 300,500 required will be acquired through a commercial loan.

Start-up Assets
Cash Required $1,500
Start-up Inventory $15,000
Other Current Assets $20,000
Long-term Assets $72,000
Total Requirements $300,500


Start-up Expenses to Fund $157,000
Start-up Assets to Fund $143,500
Non-cash Assets from Start-up $100,000
Cash Requirements from Start-up $1,500
Additional Cash Raised $0
Cash Balance on Starting Date $1,500
Current Borrowing $100,500
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Planned Investment
Investors $200,000
Other $500
Additional Investment Requirement $0
Start-up Expenses) ($157,000)


I think that Edynett Coffee House will be a viable business opportunity. This owes to the fact that the demand for a coffee drink is increasing in the United States and other nations. Coffee will never be out-dated, especially following various ways of making that drink. The coffee shop allows the entrepreneur to be creative and come up with different ways of attracting customers. The location of the business will attract several clients from different demographics, which will increase sales. The biggest challenge of this business is stiff competition from already established brands like Starbucks, which has branches in many parts of the U.S and worldwide. To beat this completion, Edynett Coffee House will offer cheap services, and the value of its products will be lower than that of its competitors without compromising the quality. By the end of the first year, the company should grow in sales to $500,000, and by year three, the sales should amount to $800,000. This growth will be due to improved services and reduced expenses as the year progresses.

Work Cited;
  • Phadermrod, Boonyarat, Richard M. Crowder, and Gary B. Wills. “Importance-performance
  • analysis based SWOT analysis.” International Journal of Information Management 44 (2019): 194-203.
  • Rowley, Jennifer E. Information marketing. Routledge, 2017

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