Business Plan – Singles Bar Essay
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. 1. 1 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. . 2 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 customers. 1. 3 Keys to Success The keys to success will be to constantly address our customer’s needs. Company Summary Colloquy Grog Shop is a bar/coffee shop designed to bring together singles and create an environment that allows people to comfortably meet each other.
This Is done through a structured conversation system that eliminates
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Total Start-up Expenses Start-up Assets I I | $1,150 | cash Required | $68,850 | Other Current Assets | $0 | Long-term Assets | $50,000 | Total Requirements | $120,000 | Products Colloquy Grog Shop sells the following: * Eight microbrewery beers on draft and in bottles: beer is served for two reasons. One, alcohol reduces inhibition, making it easier for people to meet and interact. Two, draft beer generates wonderful profits. Microbes are chosen because they are of higher quality than large production beers and our target segment prefers them. Espresso, cappuccino, coffee, and other coffee/espresso drinks: coffee and fee-related drinks are hugely popular, particularly in the Pacific Northwest. Northwestern expect good coffee/espresso at most food/drink establishments and it is often associated with good conversation. * An assortment of different taps: taps are chosen because they can be relatively easy to make, the offerings can be changed frequently, and taps are more community oriented, meaning they Shop mission of bringing new people together.
The service offerings are based on a system for singles to meet new people. This is accomplished through a structured conversation system. The Grog Shop is divided into two sections: a smaller section of tables for general customers, and another larger section for singles to come and meet new people. The singles section is composed of 4-top tables (tables for seating for four). Each table will be marked with a topic of conversation in the center. Throughout the evening as there is turnover of the table or the conversation is exhausted, the server will introduce a new topic.
The topics are far reaching, some are recent news or sports, while others are intellectual, and some are philosophical. The bulk of the topics will be of the latter varieties as people that are interested in tenting people through the conduit of conversation will typically prefer heavier stuff to provide more insight into that person. If you ask a majority of single 25-45 year olds, most will say they have difficulty meeting new people. Regular bars are not an ideal place to meet people because beyond their visual image, it is quite difficult to learn anything material about the person to determine if there are commonalities.
The typical bar has loud music and is not geared up for serious conversation. Colloquy Grog Shop creates a setting in a bar/coffee shop that encourages thoughtful invitation, allowing patrons to gain insight into the other singles. The key to the conversation system is structure. The rules are clearly established. Singles sit down at specific tables and discuss the assigned topic of conversation. The conversation is used to elicit insight into the other person, their values and perspectives as well as implicit, and sometimes explicit, insight to their background and past.
The structured conversation system is successful because it is reduces ambiguity or uncertainty in the singles social scene allowing people to feel more comfortable in the setting and open up more to the new people. Additionally, for intellectually- minded people, it allows them to find people with similar interests, whether the similarity is based in the topic of conversation of more generally in conversation itself. ? 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. . 1 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 one exception are teachers who are underpaid relative to their contribution to society. * Age 25-45: the largest group of singles looking for companions. 4. 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. This will be the main source of advertisements because the demographics of their readership are fairly similar to Colloquy Grog Shop’s demographics.
Another source of marketing will be done with strategic relationships with companies that have similar customer demographics. One prime example is the Multinomial Athletic Club. While the clubs patrons are not necessarily overwhelmingly single, the rest of the demographics match. The MAC is a fairly exclusive downtown athletic club that by virtue of the memberships costs, attracts repossession. The strategic relationship with be mutually beneficial where both organizations will develop visibility for each other.
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. 4. 3 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 TV’s 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 off 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. . 3. 1 Competition and Buying Patterns The competition comes from several different sources. * 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. Conversations occur in part because of the historical underpinning of coffee houses, in part by virtue of the fact organized activities to bring singles together. Other events activities aimed at bringing together singles: one phenomenon that has started in New York City and Ovid to a few other larger cities (not including Portland) is an activity that has a long rectangular table that always has one seat opposing the other. People will sit down and with females on one side and males on the other (this seating arrangement is for heterosexual gatherings, the homosexual gatherings will obviously have the same sex on both sides) and will have a limited number of minutes (usually 10) to chat.
Typically, conversations can be be about anything, however you are not to reveal the Job/profession that you are involved in, beyond that, anything is fair game. The table rotates and you end up speaking with a lot of efferent people. You then create a list of the top five that you would like to speak with again and if the matching person also has you on their list, phone numbers are released to the two people. Another activity might be some sort of outdoor activity like hiking or rafting and it is organized as a singles event.
There are also other type of singles events, too numerous to mention. Lastly, there are resources like personal sections in local papers where people can post or respond to personal advertisements. Every person has their own method of meeting people, some more useful than others. Colloquy Grog Shop predicts singles will abandon or at least supplement their current method of meeting people with the Grog Shop’s activities as they are thoughtfully designed to achieve the goal of introducing like minded individuals. ? 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 base. . 1 Competitive Edge Colloquy Grog Shop’s competitive edge is based on their unique approach to getting singles together using the structured conversation system.
This system was detailed in the Product and Services section, please refer to that section for more information. This system is a competitive edge because most bars/taverns to not have a niche that they are truly concentrating on. While every bar or coffee shop has a certain “flavor” and that is why someone will choose one bar or another, the flavor is only surface deep. The business model of the establishment is to sell alcohol and provide a social setting. Beyond these two values, there is little other genuine value that the establishments try to provide.
Colloquy Grog Shop is distinguished by the fact that their business model concentrates on developing value for customers beyond serving drinks. The Grog Shop develops an effective, albeit inherently structured or artificial, social setting that encourages meeting like-minded individuals. Providing the drinks is the source of income, an ancillary part of the business model. Generating value for the customers is the main focus, if the customers are happy then the revenue will follow (assuming of course that proper ended serving alcohol is the distinguishing characteristic that will allow Colloquy Grog Shop to rapidly gain market share. . 2 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. What will drive the bottom line beyond creating loyal customers, is revenue generated from sales of drinks and food. Providing a rotating selection of premium micro beers will be one sales strategy. Micro beers, particularly on tap, have great profit margins. The servers will be well trained in the different beer offerings to provide the customers with in-depth information.
Offering a rotating selection will encourage people to visit often and try new beers. Offering an ever changing selection of taps encourages repeat visits. Additionally, the choice of taps encourages people to order several, increasing the per person bill because 1) the taps offer a reasonable portion of one thing that in itself is not filling for a meal by itself, and 2) taps are a community food where the table can order many taps and everyone gets to try some. Acknowledging that the food and drink are the venue drivers, the servers will be well trained in the products as well as upsetting. . 2. 1 Sales Forecast The first two months will be used to set up the physical location, hiring personnel, as well as establishing vendor relationships getting an alcohol license. The third month will be the grand opening. Business during the second month will be understandably slow as a steady customer base takes time to build. By month four it is forecasted that sales will steadily grow.