Group report subject financial planning and policy start up the dream coffee

Introduction of projects 1.1,1.Project’s name: THE DREAM COFFEE For business people and freelancers, a coffee shop is a familiar place that people often go to to handle their work.. The

VIETNAM GENERAL CONFEDERATION OF LABOR

TON DUC THANG UNIVERSITY FACULTY OF FINANCE AND BANKING

DAI HOC TON DUC THANG GROUP REPORT SUBJECT: FINANCIAL PLANNING AND POLICY

START UP THE DREAM COFFEE Group members:

Pham Thi Thu Thao B20H0200

Lê Thị Nguyệt Hương B20H0507

Instructor: BO THI THANH NHAN

Ho Chi Minh City, August, 2023

1 B20H0200 | Phạm Thị Thu Thảo Chỉnh sửa word 100%

Tìm kiếm số liệu excel Thảo luận chọn chủ đề

Lê Thị Nguyệt Chỉnh sửa và làm

HEADING

As a student majoring in Banking and Finance, we are looking forward to learning more about the industry as well as job opportunities after graduation Due to limited knowledge and not many opportunities for practical experience, we do not know the details of the jobs that they may have to perform in the future

Thanks to studying Investment Planning and Budgeting and the dedicated teachings of

Ms Do Thi Thanh Nhan and Mr Nguyen Duy Suu, we have somewhat understood the jobs that are likely to happen in the future I will have to do it We also want to express our deep gratitude to you for sticking with and conveying to us not only knowledge but also passion for the Industry

To do this mid-term report on Capital Budgeting, we chose to start a project to open a coffee shop called The Dream Coffee because we all have passions to learn about startups

in particular and finance in general Due to the fact that the knowledge is still incomplete,

in the process of doing the test, if there are any mistakes, I hope that you will consider and correct them so that we can learn from them and use them as luggage in the future Once again, thank you very much!

CHAPTER 1: COMPANY INTRODUCTION

1.1 Introduction of projects

1.1.1.Project’s name: THE DREAM COFFEE

2.3.1 Raw materials cost

1.1.2.Reasons for choosing the DTOJ€CÍ c- 6 Cà HH TH TH TH TH TH HH Hàn ó 1.2 Analysis of strengths and weaknieSS€S Lọ ch HH ng HH TH TH ki nu Hàn ó

6 1.2.2 Weaknesses (W€ak'i€SS€S): HH HH HH TH HT TT gi 7

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Ö CHAPTER 2: APPRAISAL OF INVESTMENT PROJECTS 8

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8 2.1.2 Scale of proJect HInpÏ€rT€TIfAfIOT <5 5 2 5 191111 11911 3 HH nu ng ngư 9

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2.1.4 management organization 10 2.1.5 Expected salary schedule 11 2.1.6 Project capital upon establishment 12

12

2.3 Forecast costs (Variable costs, fixed costs, production costs and other €os(s .) 16

16 2.3.2 Equipment and tools cost 18

19

2.3.3 Construction cost

2.3.4 Fixed cost +20

2.3.5 Variable cost

2.3.6 The initial investment cost

2.4 Building the income stat t

2.4.1 Depreciation

20

21 w2l

2.5 Building cash flow

2.6 Calculate the cost of capital of the project

2.7 Project appraisal by NPV, IRR

CHAPTER 3: PROJECT RISK ANALYSIS

3.1 Types of Risks of the Project

Đỏ -> chỉnh sửa CHAPTER 1: COMPANY INTRODUCTION

1.1 Introduction of projects

1.1,1.Project’s name: THE DREAM COFFEE

For business people and freelancers, a coffee shop is a familiar place that people often go

to to handle their work But not any restaurant is suitable for you to meet your partner and focus on doing important things with your laptop

Of course, our coffee and drinks are also very rich and diverse for you to freely choose according to your liking They will be arranged in the most unique way to stimulate your sight and taste Besides, we wish our customers a great experience when enjoying drinks Our Motto"Coffee awakens creativity and inspiration”

1.1,2.Reasons for choosing the project

Drinking coffee is not only a habit but also a culture of Vietnamese people Many coffee addicts choose to drink | cup of coffee every morning to stay awake before work In addition, going to coffee is also an opportunity for people to gather together to chat and exchange feelings The word "go to coffee" is used familiarly when you invite others to have a drink, even if you don't drink coffee at the shop

1.2 Analysis of strengths and weaknesses

The staff is friendly, professional, experienced and ready to serve customers

Diverse in drinks and food, quality assurance, rich flavor, attractive to customers Reasonable price, suitable for many customers

Effective advertising and marketing, regularly organizing events and promotions to

The coffee market is growing strongly, the needs of customers are increasing

Customers are increasingly interested in product quality, space and service experience

The trend of dining and relaxing in the cafe space is growing, an opportunity to expand market share and attract new customers

New technologies, like ordering drinks online or paying by phone, increase convenience

and attract younger customers

Incentives, discounts or promotions can help attract new customers and retain existing

Changes in tax policy and legal regulations may affect the business of the cafe

CHAPTER 2: APPRAISAL OF INVESTMENT PROJECTS

2.1 Project introduction

2.1.1 Products

Main products: we deal in all kinds of coffee, fruit tea, cakes

The dream coffee address: 12 Luong Khai Sieu, Binh Tho, Thu Duc, Ho Chi Minh City, Vietnam

Cơ cấu tuổi của đối tượng khảo sát

Lines of distribution: food and beverage service

To serve customers of different ages, our coffee shop has a variety of food and drinks Here, you will enjoy flavorful cups of coffee and delicious pastries made according to the shop's own unique recipe

In addition, you can enjoy the open space filled with light and greenery It gives a feeling

of freshness and freshness that helps the brain to be strongly awakened to start work 2.1.2 Scale of project implementation

Our coffee shop has a basic design with gold and wood tones With 80 square meters, we divided into four areas:

- Reception area: The seating area is designed to create a cozy and friendly space, using decorative lights and plants to create a green, relaxing space The interior layout is simple but comfortable, with tables and chairs suitable for the target audience

- Dispensing area: The dispensing area is designed to be clean, neat and full of equipment for dispensing, using good lighting to help bartenders work efficiently

- Beverage and food storage area: The area for drinks and food is designed to be easily accessible and convenient for customers, with suitable tables and chairs so that customers can enjoy their drinks and food individually comfortably, using good lighting to create a cozy and inviting space

- Upstairs sitting area: The upstairs sitting area is designed to create a private and quiet space besides using some ornamental plants and decorative lights to create a comfortable and relaxing space

Lighting and sound system: Lighting and sound system should be designed to create a comfortable and attractive space for customers, using soft light, melodious sound to help customers enjoy space comfortably

To further support customers, we also provide a restroom on the ground floor and upstairs with necessary items such as power sockets, game boards for customer groups 2.1.3 services

Dream Coffee always wants you to understand the value and deep meaning in every sip

of water so that the development of the shop is sustainable and long-lasting We expect every element of young plant growth, every stage of raw material creation From farmers

on the other side of the world, to vast oceans carrying bags of coffee the world loves, to people who care

We want to create an open and sustainable community where everyone - employees, customers, suppliers - feels safe, finds opportunities, grows and feels supported in building a strong industry We always put the customer first, the staffis ready to help you

when you have trouble at our store In addition, if you are not satisfied with anything at the store, you can scan the QR code to share with us The Dream coffee will support you

We value diversity and multiculturalism, transparency and fairness Our goal is the common development of mankind

To thank customers on the holidays, The Dream coffee offers you many promotions such as: buy 2 get | free, upsize free, Buy large size coffee get small size coffee, bill over 200,000 VND get | free the cake

2.1.4 management organization

Manager's job:

Business planning and financial management of the restaurant

Manage and supervise the operation of the restaurant, ensuring compliance with the provisions of law and internal processes

Manage and train restaurant staff

Establish and monitor the quality standards of products and services

Marketing, promoting and building the brand image of the shop

Cleaning staff: clean, sanitize and maintain the bar area

Protect:

There is an official staff in charge of keeping motorbikes and bicycles of guests Make sure the bakery and customers are safe

2.1.5 Expected salary schedule

Appendix I, I and II issued together with Decree No 15/2022/ND-CP dated

2.1.6 Project capital upon establishment

† | Lê Thị Nguyệt Hương 16% 151,360,618.13

2.2 Revenue Forecast

Earning Forecast

Prices of drinks and cakes are from 30,000 - 60,000 VND; This is supposed to be a reasonable price for them, enough to guarantee the taste and quality We estimate the revenue as follows through surveying the number of people who will consume the main pastry and beverage:

Y 1,374,497

1,299,329 1,030,872 1,889,933 1,299,329 773,154 1,675,168

1,063,087 2.448.322 859.060 1,395,973

TOTAL DAILY RENEVUE

«" Holiday and Tet revenue

PRODUCT PRICE PROPORTION

5,663,309 3,568,345 32,355,212

TOTAL REVENUE/DA

Y 2,174,497

2,399 329 1,830,872

2 989 933 2,399 329 1,573,154 2875.168

1,963,087

TOTAL HOLIDAY AND TET REVENUE

Table 2: Holiday and Tet revenue

* Revenue for year

NORMAL REVENUE 32,355,212 32,355,212 32,355,212 32,355,212 32,355,212 32,355,212 32,355,212

3,648,322

1,859,060 2.395.973 2,073,826 7,841,007 6,863,309 4.568.345 47,455,212

MONTHLY REVENUE 1,018,111,578 921,045,942 1,018,111,578 985,756,366 1,018,111,578 985,756,366 1,050,466,791

REVENUE FORECAST FOR YEAR | 12,023,207,667

Table 3: Revenue forecast Currently, we predict that in 5 years, the price of menu items will not change According

to the data, the average annual growth rate is about 10% and the final profit in the fifth year will be 17,603,178,345.87 VND Total revenue for this year includes both weekday profit and holiday income

2.3 Forecast costs (Variable costs, fixed costs, production costs and other costs .) 2.3.1 Raw materials cost

Our coffee shop relies heavily on raw material supplies We have strived to obtain high quality ingredients, complete production facilities, safe hygiene and reasonable prices that both meet the budget of our customers and the cost of the coffee shop

No Raw Materials Quantity Price/Unit Unit Total/Month

8,000 150,000 28,000 125,000 180,000 28,500 6,000 645,000 38,000 28,000 78,000 29,950 21,000 59,000 29,000 34,000 14,000 55,000 169,000 36,000 31,000

164,571 45,360,000 4,032,000 900,000 129,600 684,000 43,200 65,016,000 14,820,000 30,240,000 5,616,000 2,328,912 4,762,800 2,548,800 313,200 7,344,000 336,000 2,828,571 4,867,200 518,400 19,928,571 379,169,344

Table 4: Raw materials cost

2.3.2 Equipment and tools cost

520,000 750,000

140

UNIT TOTAL

23,200,000 4,990,000 16,000,000 20,880,000 6,000,000 2,000,000 11,000,000 800,000 5,000,000 650,000 480,000 1,500,000 480,000 3,500,000

31,200,000 15,000,000 14,000

TOTAL EQUIPMENT AND TOOLS COSTS

Table 5: Equipment and tools cost

We split the area, which is roughly 80 square meters, into three primary sections, as follows:

Reception area: 35 square meters

Store: 42 square meters

35

INTO MONEY

4,000,000 14,400,000 7,000,000

Paint wall 60

Electricity and water systems 12,800,000

TOTAL CONSTRUCTION COST 41,710,000

Table 6: Construction cost

PRICE INTO MONEY (YEAR) 20,000,000 240,000,000

235,000 2820000 44,450,000 533,400,000

776,220,000

Table 7: Fixed cost

Construction cost 41,710,000 41,710,000

Equipment and tools 157,359,000 157,359,000

Table 9: CAPEX

The initial investment:

¢ Depreciation of equipment and tools

According to Circular 45/2018/TT-BTC of the Law of Vietnam, we separate the depreciation of equipment and tools into 2 tables depending on the number of years of its use

12052 12052 12052 12052 12052

72,31 6026 4821 36,15 24,10 5,000 2,500 0,000 7,500 5,000

Table 12: Depreciation of equipment and tools

2 2

Table 13: Depreciation of construction

24,10 5,000

12052

500 12,05 2,500

10,427

500 5.213, 750.00 5.213,

750

12,05 2,500

12052

500

5,213,

750 5,213, 750.00 0

¢ Total depreciation

01 2 3 4 5 20,663,050 20,663,050 20,663,050 20,663,050 20,663,050

47 20,663,050.00

5,040,780,945

98

776,220,000.0

0 1,635,002,241

71 38,400,000.00 1,596,602,241

71 319,320,448.3

12 20,663,050.00 5,544,859,040

58 776,220,000.0

0 1,878,190,770

88 28,800,000.00 1,849,390,770

88 3ó9,878,154.1

8 1,479,512,616

71

-89,698 379.98 -98,668,217.98

4

16,002,889,40 5.34

6,960,963,257

73 20,663,050.00 6,099,344,944,

64 776,220,000.0

0 2,145,698,152

97 19,200,000.00 2,126,498,152

97 425,299,630.5

9 1,701,198,522

38

Table 17: Expected income statement 2.5 Building cash flow

5 17,603,178,34 5.87 7,657,059,583

50 20,663,050.00 ó,709,279,439

10 776,220,000.0

0 2,439,956,273

27 9,600,000.00 2,430,356,273

27 486,071,254.6

5 1,944,285,018

61

The project is expected to be implemented in 5 years Revenue is expected to grow 10% year-on-year, we estimate variable costs to account for 38% of revenue, COGS for about 43% of revenue, and tax at 20% under Corporate income tax law revised 2013

Year 0

Revenue

s

1 12,023,207,6 67.42 5,229,874,72

2 34.17 13,225 ,528,4 5,752,862,19

3 77.58 14,548,081,2 6,328,148,41

4 05.34 16,002,889,4 6,960,963,25

5 17,603,178,3 45.87 7,657,059,58