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Project Plan for a New Business – Coffee House

Strategic importance of Project management starting a new business: A Coffee Shop
In the past decade, Vancouver has seen a huge spike in the consumption of coffee and hand-crafted espresso based beverages. Coffee itself has become a new culture all on its self, this is shown in food blogs and coffee blogs alike (http://www.vancouvercoffee.ca/ and http://coffeevancouver.ca/tag/blog/). In Howard Schultz’s book “Onward”, he states that Starbucks was at the forefront when it came to bringing espresso based beverages to North America. However, for years “…coffee bean ranks [have ranked] second in global trade, right behind oil” and is still in high-demand even in this economic crisis the world is facing.
In 2008 people between the ages of 18 to 24 have increased their coffee consumption by 37% compared to 2007. And 74% of adults aged 60 and up say they drink coffee everyday!
When opening any new business, project management plays a crucial role in the initial planning stages of the business. The first step that is crucial for any business is to analysis and understands the company’s mission, vision, goals and objectives. It is crucial to understand the beliefs and where the company wants to be in order to determine strategic goals for the company and determine the specific target market that the company is aiming for.
Depending on the target market that you are setting out for your company, you should determine strategic goals for you company. The next part a project management team will have to take into consideration are the stakeholders, who they are and how they will be affecting/helping with their investment in the company. This will help them to define the scope of their project.
When it comes to starting a new business, it is crucial to implement project management as if they don’t chances of scope creep, increased risk, and budget overages could increase. Project management can be used in all aspects of creating a coffee shop, from the building design, training and hiring of employees, and even the ordering and delivery of the end product.
A project management team could focus on the planning stages from idea generation to opening ceremony. They would help with the timing of the execution, the managing of risk, and watching that they stay on budget.
Project managers will implement the use of such tools as WBS (work breakdown structure), Risk assessment matrix, RAM (responsibility assignment matrix), and budget estimate to ensure that they are on track with their project goals. Below is an example of a written WBS that a project management team may come up with:

1.0 Coffee Shop Plan
1.1 Project Plan
1.1.1Location
1.1.1.1Research
1.1.1.2Floor Plan layout
1.1.2Design
1.1.2.1Logo
1.1.2.3Building
1.1.2.4To-go Materials
1.2Financial
1.2.1Budget
1.2.1.1Draft
1.2.1.2Final
1.3Coffee Shop
1.3.1Construction
1.3.1.1Coffee Shop construction
1.3.1.2Construction contract
1.3.2Product
1.3.2.1Pick product
1.3.2.3Vendor list
1.3.2.4Vendor Contract
1.3.2.5Vendor Contact
1.4Opening Ceremony
1.5.1Supplies
1.5.2Food
1.5.3Advertisement
1.5.4Event day
1.5.5Media Relations

Some of the risks that a company can encounter when not implementing a PM team include (but are not exclusive to) being over budget, project failure, over timeline, etc. Also some of the risks that are associated with this kind of project include (but are not exclusive to) over-saturated market, quality control of products, importance of location/ success of business, etc.
The biggest risk for starting a new business in this industry is the high saturation of the market, because coffee has become a huge trend in the Vancouver market.

I feel that the first thing a business should do is set a mission statement and strategic goals for their company. This is essential because it sets a guideline of the beliefs of the company and where they would like to go with their business. As a project manager I would encourage you to have your client create a mission statement before you start your project, as it will help you with the planning of the project as well. Some example mission statements from coffee shops in Vancouver are,Some example mission statements from coffee shops in Vancouver are,

Café Artigiano
“Our mission is to provide the best products and services. We will listen to our customers and the long term relationships we form are based on the highest possible levels of integrity and humility with a focus on training, education and impeccable quality. We will be creative and we will ultimately set the standard by which others are judged. Our Artisan methods will at all times, remain the cornerstone to our distinctive Italian tradition.”
Starbucks
Our mission: to inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time.

As a personal opinon, I feel that is essential for the convenience of the consumer, and the success of your company’s online presence to clearly state your mission, vision, and values. Regardless of the size of your business, your vision and mission is who your company is and what your company represents and it should be made known.

- Shannon Kim

Citations:
“Current Trends in Coffee Consumption.” Vancouver Gourmet. Web. 14 Apr. 2011.
“Mission Statement.” Starbucks Coffee Company. Web. 17 Apr. 2011. .
Schultz, Howard, and Joanne Gordon. Onward: How Starbucks Fought for Its Life without Losing Its Soul. [Emmaus, Pa.]: Rodale, 2011. Print.
“Vancouver Coffee » Coffee Culture.” Vancouver Coffee. Web. 17 Apr. 2011. .
Welcome to Caffè Artigiano. Web. 17 Apr. 2011. .





1 Comment »

   House Plans – Home 1576 plan wrote @ April 18th, 2011 at 7:54 am

[...] you can check out: http://zenportfolios.com/shannonkim/2011/04/18/project-plan-for-a-new-business-coffee-house/ Posted in Country [...]

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