Start up project library coffee

Target marketMarket Size & Segments Our coffee shop will be designed in the style of a library coffee with a spacious, private, and quiet space, so the main customers that we aim to is s

HO CHI MINH CITY – 2022

Mục Lục

Executive Summary 4

Opportunity 4

Problem Summary 4

Solution Summary 4

Market 4

Competition 5

Why us? 5

Expectations 6

Forecast 6

Financial Highlight by Year 7

Financing Needed 8

Opportunity 9

Problem & Solution 9

Problem Worth Solving 9

Our Solution 9

Target market 10

Market Size & Segments 10

Competition 10

Current alternatives 10

Our advantage 11

Execution 12

Marketing & Sales 12

Marketing plan 12

Sales plan 14

Operations 14

Locations & Facilities 14

Technology 15

Equipment & Tools 15

Milestones & Metrics 16

Milestones 16

Key Metrics 17

Company 19

Overview 19

How it all started 19

Our mission 19

Our values 20

A new concept in coffee shop 20

The LIB difference 20

Team 20

Management Team 20

Advisors 24

Financial Plan 25

Forecast 25

Key Assumptions 25

Revenue by Month 32

Expenses by Month 35

Net Profit (or Loss) by Year 42

Financing 43

Use of Funds 43

Sources of the Funds: 44

Statements 45

Projected Profit & Loss 45

Projected Balance Sheet 47

Appendix 50

Profit and Loss Statement (With Monthly Detail) 50

Balance Sheet (With Monthly Detail) 51

Cash Flow Statement (With Monthly Detail) 51

Indicator 52

Scenario Analysis 55

Monte Carlo 57

Solution Summary

Considering the situation, my team devised the idea of creating a new-style café to meet the needs, interests, and desires of customers Youwill not only be able to admire the big space, which is meant to make everyone feel at ease and contains virtual living places for youngpeople, but you will also be able to sample amazing food and drinks, distinctive and clean flavors, and delectable meals when you visit us.It's also cost-effective and has a convenient Wi-Fi network for customers' work As a result, the company has been separated into manyzones, including a vast space for group study sessions The shop's concept has been expanded to appeal to individuals of all ages andsocioeconomic categories, and the shop's form is perfect for a wide range of customers

Our key competitor is Chidori – a type of coffee bed, which just appeared in 2019 Now they are having 5 coffee shops located in somedistricts in HCM City Chidori serves customers from all ages especially for relaxing, studying and working people The beverages andfoods are variable, which based on Japanese style However, the prices and service fees here are quite expensive for students to afford.Moreover, there are no soundproof areas for customers who want a quiet place to do their deadlines In addition, LIB Coffee also mustcompete with other indirect competitors such as: The Monday Coffee, Cheese Coffee, Three O’clock…

Why us?

My team and I are friends, and we are studying in the same class at university Our major at the University of Economics Ho Chi Minh City

is finance To explain why we are the right people to build this business, we have the following 3 reasons:

First, our team’s goal is to start a business together during college Because the finance major is a difficult one, we support each other andstudy together to strengthen a solid knowledge base After studying together for a long time, we found that the major we are studying isvery helpful for us to start a business That's why we can be confident that we can fully achieve our goals

Second, we have a hobby of going to cafes together to study and do group assignments We have experienced a lot of coffee shops and wehave found that cafes with a quiet space are suitable for students like us More specifically, we have an interest in the taste of coffee and theservices that the cafe provides to customers Therefore, with the knowledge that we have accumulated at school and further research on ourown, the library cafe is the goal that we aim to start a business

Finally, although none of us have experience in starting a business as well as in managing a coffee shop, with the knowledge that we haveaccumulated, the material and spiritual support of family and friends, the ability to handle situations quickly and a strong passion forstarting a coffee shop, we believe that we will launch a successful business and make our library coffee brand known to many people.

Expectations

Forecast

In the course of business, we would ignore the profit in the first 2 years to focus on promoting our café‘s brand on social media platforms,and attracting customers with diversified promotion programs In addition, we would continue to improve service quality based on positivefeedback from customers As business begins to stabilize, we would continue to strengthen our coffee branding campaigns on more socialmedia platforms, purchasing more ingredients to stock up for the peak months In the first year, our revenue including water bill andsoundproof room service fee on the 1st floor is about 600 million VND, 2nd year revenue increased about 6%, 3rd year revenue increasedabout 13%, revenue in year 4 increased by about 16% and revenue in year 5 increased by about 9% We accumulate the profits to expandmore branches to areas near other universities with the desire to achieve our long-term sales goal of keeping revenue equal or above astable level

Financial Highlight by Year

(200,000,000)

- 200,000,000 400,000,000 600,000,000 800,000,000 1,000,000,000

Revenue Expenses & Costs Net Pro昀椀t Net Loss

Financing Needed

Designing the optimal financing plan for a project generally involves:

 Ensuring the availability of sufficient financial resources to complete the project

 Securing the necessary funds at the lowest realizable cost (to minimize flotation cost)

 Minimizing the project sponsors’ credit exposure to the project

 Maximizing the financing side effects

 Achieving the most beneficial regulatory treatment

The total amount of funds required equals the sum of the total cash cost of facilities required for basic completion; the lease expense andother expenses that are incurred; the initial investment in working capital and cash to cover salaries and other operating expenses before theproject completion

To satisfy the above criteria, we have the sources of the funds:

 Friends and families: 50,000,000

 Private depository institution: 100,000,000 (interest 12%, monthly payment, 5 years)

 Owners’ cash contribution: 30,000,000

 Finance companies: 120,000,000 (interest 10%, monthly payment, 7 years)

Problem & Solution

Problem Worth Solving

People's requirements are increasing as today's society develops, and they are seeking more and more new goods Stress and restraint areunavoidable in today's industrialized and modernized environment due to work and study pressures, racing full of worries, and never-ending rest; especially in the middle of this crowded and bustling city, the more frustrating it becomes, everyone needs a quiet space to rest,chat, and confide in friends and relatives Furthermore, today's coffee shops are typically rather noisy and lack sufficient private areas forsuccessful study and work

Our Solution

Recognizing the scenario, my group came up with the concept of opening a new-style café to cater to clients' demands, interests, and wants.When you visit us, you will not only be able to appreciate the large space of the restaurant, which is designed to make everyone feel at easeand includes virtual living areas for young people, but you will also be able to taste wonderful cuisine and drinks, unique and clean flavors,and tasty meals It's a fantastic spot for young couples to meet and converse It is also economical, provides a handy Wi-Fi network forcustomers' work, and, if necessary, plays light music for clients Most of the stores serve a wide range of customers, including the elderly,students, businesspeople, and professionals who want a nice resting environment in a quiet setting Students want a calm environment inwhich to study As a result, the business is divided into many zones, with a large area for group study sessions and a cool private room forclients Our business offers soundproof rooms reserved only for clients who choose to use this service The shop's concept has beenbroadened to appeal to people of all ages and socioeconomic groups, and the shop's shape is ideal for all sorts of audiences

Target market

Market Size & Segments

Our coffee shop will be designed in the style of a library coffee with a spacious, private, and quiet space, so the main customers that we aim

to is students – who often need a quiet and spacious space to be able to read and study

In addition, with the way our coffee shop is designed, other customers that will probably like and be suitable will be office workers, theelderly, writers, poets They need a quiet space to relax, read a book, find inspiration for themselves Businesspeople, they meet to discusswork or friends meet to converse

Competition

Current alternatives

Ho Chi Minh City overflows with coffee shops According to a report released in 2021, Ho Chi Minh City had the highest number of coffeechain shops in Vietnam with 544 stores, which means that to enter in this kind of market, it takes outstanding things to attract thecustomer’s attention as well as to compete with others old coffee chain shops Regarding our products and services that we attempt to, thebiggest competitor is Chidori, a kind of coffee in bed, which just appeared in the market from 2019 With a relaxed atmosphere, drinks andfood followed by Japanese style, and priorities with customers, they are now having 5 coffee shops in Ho Chi Minh City (Tan Binh, PhuNhuan, D1, D10) The Chidori provides their services for customers of all ages, especially for relaxing, working, studying, or greetingpurposes The prices are variable, which fluctuate from 70.000 VND to 350.000 VND depending on the time and services that customerschoose This can be seen quite expensive for college students in HCM to afford You’ll never feel rushed at Chidori You can enjoy privateand comfortable places by yourself thanks to the design with small beds adding with cozy atmosphere and lights The attentive,

accommodating staff is always available to provide you with anything you may desire However, the fact that customers must pay high fees

if they want to stay longer causes a big problem The insufficient budget prevents students and others from studying and working.Sometimes, the noise in Chidori still does not be improved significantly, which makes many customers annoyed

Our advantage

When customers buy our products or services, they are buying the benefit that we give them According to the market research, we foundthat we have some competitive advantages rather than the Chidori Because our key customers are college students and working people, weextremely offer a quiet place with soundproof spaces to help them concentrate on their work best Therefore, the customers do not have toscared of the noise or disturbing things Moreover, the drinks in our stores are not only delicious but also suitable for students’ budget Theprices just fluctuate from 20.000 VND to 35.000 VND and low fee pay for services if they want to stay longer Our stores are planned to belocated near universities in HCM city, which is easy for students to come and study Finally, we immensely set up a fast and unlimited Wi-

Fi system due to the student’s need for using Internet to research and others study’s purposes

Marketing & Sales

Marketing plan

1 Set coffee shop marketing goals with SMART rules

Because it is a new coffee shop that has just entered the market, the Group accepts to ignore revenue to continuously promote the brandthrough social networking platforms (Facebook, Instagram ) for a period of 1 year so that many people know the business model of theGroup with a specific number of 100,000 students who are interested

2 Convey the message showing the unique value in the Group's products

Impressive marketing messages help increase customer recall and convince them to become loyal customers

With a short and straight to the point message: "Separate space, kill deadlines", the Group wants to show the coffee shop's outlook on theissues raised in part 1 to prove that Our coffee shop is the only place that can satisfy that desire of customers as well as the benefits thatcustomers are looking for

The message is supported by all the shop's resources from online to offline to increase efficiency

3 Set up marketing channels

a Join a clan in your team area

We will search and join groups with large target customers This way is completely free and also helps the business to grow a lot After that,

we will hire young people to write a review to evaluate the experience when they come to our cafe

b Using Google and Facebook advertising tools

Because Google and Facebook are two platforms that have a lot of users today, these are still the two most effective advertising channels inall fields For that reason, we will focus and spend more money on these tools to be able to compete for the top search positions with ourcompetitors This will improve efficiency in reaching and attracting customers

c Hire KOL

Since our cafe is aimed at students and young people, our team will be interested in KOLs who have a high number of followers and have agreat influence on young people, especially students, to get effective results high communication efficiency We will hire them to check in,give reviews and share our cafe on platforms where they have strong interaction like Facebook, Instagram, TikTok

d Use promotional business card with discount code (If customers keep and bring to the cafe, discount code will be applied)

Although this is no longer a popular method, it will still be very effective with beautiful and impressive advertising business card templates.Since my group's customer segment is students and young people's groups always love new things, this will also be an effective tool toattract them if our team focuses on unique and special images of my coffee shop

e Continuously update product activities on social networking platforms

Use accounts from Instagram and Facebook to update the shop's activities regularly with professional photos and videos of the shop's dailyactivities This will promote the product image of the shop as well as create trust and closeness for customers

Sales plan

We will use a variety of programs to promote customer motivation to use the product Specifically, we will introduce activities such as a week free trial of the service for pre-ordered customers, 20% free drinks and a program for loyal customers (accumulate points according toamount they paid) These activities will help our shop to actively convert the target customer data into potential customers of the restaurant

1-At the same time, it will help improve the customer's ability to buy in the next time after they have had a good experience at the shop Next,our shop will promote a special policy for loyal customers with discount codes according to the number of points they have accumulated orsend gifts from the shop This will help enhance the value of the cafe into the subconscious of customers and encourage them to becomelong-term customers In addition, it will also help promote the product brand and attract new customers to the cafe through the loyaltycustomers introduce and convey the value of our coffee shop to people around them It can be their friends, their relatives… This will also

be an extremely effective and prestigious sales tool, so our team will make great use of this resource

Operations

Locations & Facilities

Among the factors that determine the success of a coffee shop, the business location factor plays an important role The basic elements of afavorable business location: Firstly, it must be suitable for the initial investment amount Secondly, there must be enough parking space forcustomers Thirdly, it must be a place where customers are easy to find and the number of people passing through is high Finally, it musthave customers that match the type of service a business wants to provide Our team's project is to build a library cafe for college students

in Ho Chi Minh City, so we will initially try to build the business in a small street area to save the money of renting space every month, but

it must be close to student accommodation or close to universities Because the restaurant's business location is in a small street, seats andparking are limited, so we will give priority to renting a space with 1 floor The purpose is to have more parking space, there is a seating

area at the bar on the ground floor and a private and quiet area to work and study on the first floor In the future, the shop will build morebranches in large road areas with more space in the bar and more parking In addition, the shop will build more soundproof areas for groupstudy and meetings.

Equipment & Tools

Specialized equipment for library coffee shops:

 Coffee maker

 Coffee bean grinder

 Blender

 Fruit machine

 Refrigerator, freezer

 Air-conditioner

 Noise absorbing device

Milestones & Metrics

Milestones

Market research: Find out current market needs, trends and predict future market conditions (03/4/2022)

Brainstorm and choose a model of a cafe: From market research to ideation and choosing a model for a cafe: Library Coffee (03/5/2022)Setting goals and business orientation: Targeting the main customers is students (03/5/2022)

Prepare a budget for financial expenses (15/6/2022)

Find the location and design the space: It is expected to find in the areas near the universities in Ho Chi Minh City with the appropriateprice for the premises Spacious and private space (15/7/2022)

Building Menu: From the variety of drinks on the market, choose the most popular drinks today but with a special formula to make adifference and separate (17/7/2022)

Procurement of equipment: With the model of library coffee, in addition to tables and equipment for preparation, it is necessary to buybookshelves and suitable books (22/7/2022)

Employee recruitment: Hire waiters, security guards Other departments such as accountant, janitor, bartender, manager, cashier, marketingteam We and the waiter will take over because the cafe has little capital, and we are capable of taking on those roles (15/12/2022)Prepare documents and procedures (01/9/2022)

Plan communication and marketing activities for the shop (07/11/2022)

Use coffee shop management software (15/12/2022)

The shop comes into operation with the first year of branding: During this time, we will both build the brand and complete theshortcomings that we may have when in operation (01/01/2023)

Begins in the stabilization phase (01/02/2024)

Key Metrics

When running a coffee shop business, we will be interested in:

1 Sales revenue

Sales revenue = sales income - returned products

2 Net profit margin

Net profit margin = monthly revenue - sales expenses

3 Gross margin

Gross margin = (overall sales revenue - cost of goods sold) / overall sales revenue

4 Net present value

Overview

How it all started

In 2022, we brought the best talent in business, finance, entrepreneur, and production together to accomplish an ambitious goal: bring thecomfort and excitement of soundproof places to customers The idea struck us after years of struggling to get to the coffee shops withcomfort space, while having quiet places to studying as well as working So, we made it our mission to bring a separate place without anydisturbance to people's lives in a more accessible, affordable, and efficient way

LIB Coffee is planned to be founded in 2023 by a group of five students in HCM City The legal structure of our company is LLC (limitedliability company) The ownerships are:

 Nguyen Ngoc Minh Truong (20% of capital)

 Dinh Hoang Nam Khanh (20% of capital)

 Nguyen Thu Hoang (20% of capital)

 Luu Quyet Tien (20% of capital)

 Nguyen Tuan Anh (20% of capital)

Our mission

LIB Coffee uses special services and design to connect customers to the soundproof world where they can do whatever they want,empowering people to concentrate completely on their work to make the best results

Our values

1 Put customers first

2 Respect and diversity

3 Stimulate creativity to innovate

4 Be the professional place to work

5 Together we go far

A new concept in coffee shop

We use soundproof areas to help customer not prevent by disturbing things as well as have the most comfortable spaces to work and studyOur library coffee shops with separate places, cozy atmosphere is designed to keep you coming back You can achieve your goals, on yourown time at LIB coffee

The LIB difference

Many people consider our place as a place to connect, bond and go far together Through our quality services, comfortable spaces, suitableprices we’ve created an opportunity for people to discover the best place for themselves to work and study best through our coffee shop

Experience: Financial knowledge, fruit supply chain manager

This is a position that requires people to have flexibility in languages and build good external relationships to provide solutions for theinput operations of the cafe In addition to accessing and purchasing goods, managers must also provide inventory options to not onlyoptimize the coffee shop's productivity, but also distribute quality products to customers row With his professional skills and accumulatedknowledge, he can well take on the position of supply chain manager to help the company build effective strategies that will help reduceshortages and costs incurred This is extremely important in improving the profitability of the cafe and helping the business grow in thelong run

Dinh Hoang Nam Khanh – Analysis of financial situation

Skills:

 Problem solving

 Set goals

 Make decision

 Computational thinking

Experience: Financial knowledge, CFA

This is a position that requires people to have an in-depth perspective and sharp analytical ability with financial numbers to be able todetermine coffee shop’s profits, liabilities, income potential in the future Therefore, this is an important position Through financialnumbers, financial analysts must make long-term strategies for the company and assess the feasibility of each action to convey to otherpositions in the company the best options With the professional skills and broad knowledge mentioned above, he can fully take on the role

of Financial Analyst and help the company develop more and more sustainably stable in the future

Nguyen Thu Hoang – Accountant

This is a position that requires the person to be careful and honest to ensure the accuracy of important financial documents as well as taxreturns for the state In addition, the accountant must also accompany the financial analyst to evaluate financial activities and providesolutions and strategies to help the cafe operate effectively With her professional skills and solid knowledge, she is an accountant looking

to help the coffee shop reduce costs, increase revenue, and maximize profits

Nguyen Tuan Anh – Marketing

Experience: Financial knowledge, freelancer marketing

This is a position that requires people to be creative and adaptable to high work pressure to be able to create new and unique content inadvertising programs In addition, marketers must have a strategic vision with broad observation ability and be proficient in marketingresearch tools to be able to deeply understand competitors as well as reach target customers Therefore, this is an extremely importantposition in attracting potential customers to the store With his carefully trained skills and accumulated valuable experience, he can take on

a marketing position that helps attract more and more potential customers

Luu Quyet Tien – Human Resource Management

Experience: Financial knowledge, human resource management collaborator

This is a position that requires people with confidence, flexibility, and keen observation ability to not only find but also retain talentedemployees for the cafe Therefore, human resource management staff is one of the important keys in recruiting employees, and thenbuilding a reasonable training and development plan as well as planning human resources In addition, the person doing this position musthave a suitable perspective to develop the policies and systems applicable to the company This is an important thing in building anddeveloping culture for the cafe With the necessary skills and practical experience, he will be a talented manager to help the companydevelop well with quality staff

26.24%

Do the deadlines at co 昀昀ee shops

Yes NoHowever, according to the data from the survey, the students said that coffee shops still do not have many quiet spaces to study and workbecause the structure of cafes is usually open space

78.33%

Quiet Review

Yes NoTherefore, with the business model of not only having open space on the ground floor, but we also develop a new structure on the firstfloor, which will create a quiet space between the customers by soundproof glass This will help keep everyone from being disturbed bydifferent sounds With such a competitive advantage, we predict that in the first year, an average of 40 customers will come to our cafeevery day, including 30 people using the open space service on the first floor ground floor (due to the familiarity of customers with thisbusiness model) and 10 people are using our new service on the first floor Specifically, according to the survey, there are 78% will be readyexperience our service

19.77%

Expenrience the service with a separate/quiet place

Yes NoAlso, to get the best revenue forecast, our team surveyed the water and service charges students were willing to accept Specifically,according to the survey, there are 80% choose the price from 29,000 - 39,000, so we have taken the average price that we use is 35,000 fordrinks