Explain Two Elements of Business Canvas Model

Explain Business Canvas Points (any two points) for a Company

1. Introduction

Businesses in Australia are establishing at an increasing rate. The coffee and bistro sector is experiencing unprecedented rate because of the increase in consumption patterns of Australian consumers towards organic coffee and changes in lifestyle. Keeping this in mind, this business plan focuses on the development of a new coffeehouse and bistro facility in Melbourne. The name of the business is Eats and Treats. It will be situated as an independent coffeehouse in Melbourne. The reason to choose the location of the facility will be explained through the market and financial feasibility studies explained further in the report. The report will also highlight the nine building blocks of business canvas model on the basis of which the entire business plan will be created. It will also analyse the technical and human resource feasibility.

About Eats and Treats

Eats and Treats is a coffee and bistro house that is located in Melbourne. It is a café that provides a range of coffee-based drinks and dessert bars. The company will only focus on opening one store in Melbourne for the time being and expand it later to other regions of Melbourne, Sydney, New South Wales and Perth. It offers a quite and relaxing ambience with melodious music and dim lighting. Quirky wall posters and hangings, acoustic guitar and boards games invigorate the environment of the café. The unique and communicate cutlery along with the wooden flooring and contemporary décor will appeal to the young customers.

The café will offer a high-quality, complete experience to those looking for comfortable hanging out place with delicious and premium quality customized beverages and desserts.

The objectives of Eats and Treats in next three years is to increase the sales of the company by $1.9 million by the end of the year; targeting a net profit of minimum 14 per cent by the second year and to reach monthly sales of $167000 by the end of fourth month of business activities and monthly $220000 by the end of first year. They success factors of business in this field comprise of the following:

• Service: Our customers are willing to pay for a good experience. Their experience would be impact if the service is not of premium quality. All the members of the staff will be efficient, attentive and courteous.
• Product quality: Eats and Treats offer products like customized desserts, coffee-based beverages and entertainment. These products are of high value and quality.
• Management: The Company needs to have a secure hold on beverage, desserts and labour expenses. The entertainment and coffee house experience should be delivered in the manner that would encourage repeat business and positive word-of-mouth. Effective employee and inventory management along with quality control is the key to success.
• Marketing: Eats and Treats would target its audience regularly. The business is located in the central location that is accessible by many people.

2. Business Model Canvas

Considering the above mission, objectives and keys to success, business model canvas was chosen for highlighting the details of the business plan. Eats and Treats will use the nine building blocks of this model to develop its business plan.

2.1 Customer Segments

The first building block is customer segments. This defines the group of individuals or companies that the enterprise intends to reach and serve. It entails the segments that the company wants to create value for, the important customers and different types of customer segments.