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Executive summary

Honey Shock will be a dessert cafe located in the Woodley Park, Washington DC. In addition, Honey Shock will be a quick-service café where clients sit and wait for the desserts being prepared. The main selling point of the café will be the production of quality desserts to customers using a blend of innovative ideas with old-fashioned concepts.

Moreover, Honey Shock will be a dessert shop selling cakes, biscuits and ice creams. Washing DC location will provide various opportunities for the shop. For instance, DC environment will provide the most advantageous location for Honey Shock café.

Therefore, Honey Shock café will use the Woodley Park location gain utmost competitive advantage. Further, high traffic and tax incentives in DC will offer the café with competitive edge over rivals.

Moreover, the café will utilize the philosophy of offering only the best products and services to ascertain itself as an outstanding dessert café in Washington DC. The shop plans to augment sales by 40% and 20% in the second year and third year respectively.

Organizational plan

Company summary

Honey Shock will be located in the Woodley Park, Washington DC. Additionally, Honey Shock will be a dessert shop selling cakes, biscuits and ice creams.

Objectives of the firm

Satisfying the needs of customers with quality products will be the main objective of the firm. The shop also aims to augment sales by 40% and 20% in the second year and third year respectively. Another objective of the café will be to spread out to three shops by the third year of operation.

Mission statement

Honey Shock will be a dessert shop committed to offering superior products that surpass the anticipation of the clients in a contented environment.

Business location

Honey Shock will be located in Woodley Park, Washington DC due to high traffic and tax incentives in DC. The location will be idyllic and perfect since it will provide easy access to the customers.

Form of ownership

Honey Shock will be a sole proprietorship.


The management team of Honey Shock will consist of five part-time workforces initially. The shop will employ one skilled and experienced worker in management and supervisory positions. However, at the lower level, unskilled temporary labor force will be required.

Honey Shock will majorly depend on the vast experience and technical skills of its top management. The business plan provides an overview of the firm detailing every step in its operations and development as well as financial requirements.

Products and services

Honey Shock will sell desserts such as cakes, biscuits and ice creams. Excellent customer service in comfortable environment will be mandatory in the shop’s operation. The shop will also offer desserts for special celebrations.

Moreover, the shop in conjunction with a trained chef will undertake dessert-cooking classes with clients every month. Further, the shop will offer special After School Cake Club to help market its products.


The shop will employ one permanent employee and five part-time workers each working for eight hours. The employees will be remunerated according to positions in management. The café will add employees as it grows in future.

Accounting and legal

The shop will utilize bar code accounting system to track the levels of stock in the café. The shop will exploit the services of financial controller responsible for analyzing the café’s financial performance. The shop’s legal structure will be sole proprietorship.

The advantages of the legal business structure include low administrative and set up expenses as well as few regulatory requirements. In addition, the café’s proprietor will only be taxed on personal income.


The shop will use cycle counting of physical stock to maintain precise data and security of stock. The shop will also use the services of Tyco Integrated Security (TIS) system to protect its facilities, workers and clients from threats, both from within and without.

The security system will enable the shop to operate effectively by offering advanced security management and information management solutions.

The café will also utilize intellectual property protections such as trade secrets such as customer lists, survey outcomes and computer algorithms to gain competitive edge over rivals. The shop will also utilize controlled admittance to top-secret data to preserve intellectual property rights.


The café will carry various kinds of insurance including health and life as well as property and liability.

Start-up summary

The shop’s start-up costs will amount to $ 50,000 catering for shop furnishing and construction, equipment and other inventory costs connected to café opening. The start-up expenses will be financed by loans and outside investments. Other start-up costs will include legal costs for permits and licenses and insurance coverage.

SWOT analysis


The product’s brand will forms its major strength. Consumers will perceive Honey Shock brands as superior and original. The brand name will differentiate the product from other similar brands of desserts. Moreover, the distribution channels will ensure the presence of the products to the target consumers.

Further, the perceived value of the product wills made it more appealing to the clientele. Honey Shock flavors will be preferred among consumers for its originality and contents.

The branded products will be offered in diverse quantities and prices ranging from the up-market finest to low-price value. The strategy will be useful in covering diverse classes of clientele from low-income to high-end consumers.


The economic depression currently experienced has an effect on the soaring expenses associated with livelihood and diminishing earnings in the hands of the consumers. As such, Honey Shock is likely to experience reduction in the demand of the products due to reduced earnings.

Further, to achieve status as a price leader in the desserts market, the firm will charge lower prices in all market segmentations, which in effect will squeeze its margins.


The ever-emerging dessert flavors and contents have greater effects on the client purchase tendencies. Honey Shock has a responsibility of regular appraisal of the products to meet the expectations of the customers. Further, the probable slump in the consumption of the product is likely to initiate decreased proceeds.

The outcome would divert the firm’s attention from high to low pricing strategies thereby restructuring the pricing system. Honey Shock also faces the threat of competition from various similar brands of desserts from other firms that has been pursuing the motive of invading the market.

In addition, the steady increase in the cost of production is a concern for Honey Shock since it has an impact on the product’s price and revenue.


Honey Shock has the prospect of expanding into new markets through the application of various strategies. In other words, the firm has increased opportunities to expand in new markets where the product is not present. In addition, Honey Shock has a prospect of developing its customer base through the application of advanced technological prowess.

Further, there is a prospect of immense online business developments including catalogue purchases through the application of online facility enabling the firm to serve a large customer base. As a result, the firm will be able to achieve increased revenue margins.

Marketing plan

Market analysis

Honey Shock café will focus on local customers. Specifically, the huge traffic and tax incentives in Washington DC will provide numerous prospects for the shop. The reason is that numerous families spend much time dining out in DC compared to other parts of the country.

Target market

The target market for Honey Shock cafe will be people of all ages particularly Washington DC residents. Young women populace especially between the ages of twenty-four to thirty-five will also be major market target for Honey Shock due to their elastic reactions to marketing.

Market segmentation

The shop will divide its market into various psychographics including Soothe Individuals, Family Members and Merry makers.

Soothe individuals will be professional workers who miss household foods and often stop on their way for dessert experience. The shop will also capture family members especially mothers and their offspring who buy biscuits and cakes after school.

Additionally, marry makers who celebrate special occasions such as graduation, birthday and Valentine’s Day will be a critical market segment. In addition, Honey Shock will divide its market according to age and gender as well as income.

Competition and market trends

Honey Shock will face competition from other café’s offering desserts including Baskin & Robbins, Ben & Jerry’s as well as Rutabaga Sweets. Whereas price is a significant aspect in the dessert business, consumers are willing to part with more dollars to acquire better quality products in a friendly environment.

Additionally, consumers’ decisions on dessert recipes are influenced by comfort factor. Therefore, Honey Shock will offer high quality products as well as presenting menus that reflect comfort food desserts. The industry data indicates an increasing trend in the consumption of dessert products

Competitive edge

Honey Shock’s exceptional niche in the old market will be the shop’s competitive edge. In essence, the shop will offer clients with high quality products and new experience. The café will utilize the services of a professional chef to prepare the right desserts.

Marketing strategy and implementation

Honey shock’s marketing strategy will entail word of mouth as well as education of consumers to portray the shop as superior café with unique dining experience. Newspaper advertisements, fliers, special promotions and online ads will also be used to reach clients. Focus on acquiring new clients and retaining existing clients will enhance the café’s sales.

Sales strategy

The shop will strive to make acquire many clients by selling magnificent desserts. In addition, the café will offer incredible show to clients when desserts are prepared. Moreover, the shop will utilize a service team that is well informed and friendly.

Financial Plan

Honey Shock will require start-up capital comprising of total assets and expenses. The start-up expenses will include costs incurred during the café furnishing and construction services, legal services and accounting, special consulting as well as contingency plans. The largest start-up in terms of finance is required for the construction of the shop.

Once completed, the shop will be one of the long-term assets. Besides the cafe, fixtures, inventory as well as cash are categorized as assets. All the financial forecasts beginning with start-up capital are shown in the appendix.

Loans and other investments proposal

Honey Shock will pursue a long-term loan of $30,000 from a local bank. In addition, it will present a cash flow forecast, an opening balance sheet for the first month and a closing balance sheet ending for first year to the bank.

Honey Shock will also present its income statement forecasting for the first year and owner equity to the lender. The financial statement will help the bank to see how the company has planned its future cash requirements in avoiding the liquidity crisis.


Appendix 1

Appendix 2

Market Analysis

Appendix 3

Income statement ($ 00)

Appendix 4

Appendix 5

Appendix 6

Break-Even Analysis

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