Tim's Coffee Shop Essays

1342 Words May 12th, 2011 6 Pages
Analyze Report for Tim’s Coffee Shop

AB299-02

01/19/2011

Nicole Badgley

Executive Summary The coffee shop can become more profitable with some minor changes. The business is open 20 hours per day. It would be wise to expand the business hours to 24 hours per day. While the competition, Queequeg’s Coffee has more locations, Tim’s Coffee Shop is the closest to the railways and the university. By opening all night, those late night study cram sessions could turn profitable, as a latte at 4AM will help the students relax, stay focused and study. In comparison with the survey, the overall rating of the company is good. To remain more competitive with pricing, Tim’s Coffee Shop has to keep its prices more In line
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Threats: If Tim does not do anything then he could be at risk of losing his customers to his competitor.
Finance and Accounting/Financial Statements
Summary:

Tim needs to look into different types of loan he may needed for this type of business which could be a small business loan. With Tim being a first time business owner, it is suggested that he work with the local Small Business Association to see if he is entitled to any grants that will make his loan amount significantly smaller. The Small Business Association is run by the government and assists people such as Tim with the tough decision of moving forward or not. The financial statements will advise what the input is into the business and what the output is from the business. The financial will list the following: • Rent • Electric • Insurance Costs • Gas • Telephone • Wi-Fi • Salaries • Taxes paid including property, employment, state tax and self employment tax • Product costs • Benefits paid (if any) • Legal fees (if any) • Profit and Loss Statement All of these factors will greatly affect Tim’s decision to move forward with the business or not. If the costs are too high, this will be a bad move for

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