OGScapital - 2 Financial Forecasts for
a Tea Room Business Model
While creating financial projections in the business plan for your bubble tea shop, you can save time and hassle by getting help from a professional business plan creator. He will help you write a perfect tea room business model that will truly reflect your specific business. However, in this article, we are going to discuss a couple of areas that you need to highlight while writing the financial projections section of a team room business plan. So, stick with us and read the article till the end!
Two Financial Forecasts to Include in a Tea Room Business Plan:
Now, let us explain these two financial forecasts in detail so that you can clearly understand them. This way, you will be able to include them in your team room business plan without any confusion:
1. Foot Traffic
Until your tea shop becomes a famous place through your promotional strategy, it is good to say that your prime concern will be getting a percentage of the foot traffic that passes by on the street where your tea shop is located.
To analyze the revenue this way, you have to calculate the estimated foot traffic per week during a regular working week, and also know that how this figure will change the seasons or with holiday weeks for a year. Hence, the next thing to do is to make an assumption about the percentage of this foot traffic that will come into your tea shop during business hours.
Besides this, you need to consider the percentages of the foot traffic that enter a similar business. Finally, you should decide on the average order size per customer who comes to the shop, taking into consideration those who visit but don’t place an order at all.
Here the thing you need to understand is that minor changes in the foot traffic assumption, the percentage of who visit, and the average order size will bring big variations in your revenue forecasts. Therefore, you need to make sure to describe how all these three figures are grounded in reality.
2. Service Capacity
Your space requirements, staff salary costs, and capability to make revenue with your bubble tea shop will hinge on the number of workers (servers) you decide to work with at a given time.
Keep in mind that only a single worker can’t serve customers nonstop from starting hours to closing hours because there are many other things to do, such as resupplying, phone calls, clean-ups, and breaks. This is why you should have an idea of how many average orders a worker can manage in an average hour to understand a reasonable maximum service capacity for your tea shop.
Be sure to relate the service capacity that you need to have orders per hours you expect from your foot traffic in the first year. Nevertheless, if you assume more than you can presently handle the orders or assign some additional responsibilities to the workers, you can also adjust the service capacity by including some additional workers or time-saving equipment such as a POS system.
The bottom line is that these two financial forecasts should be included in the business plan of your bubble tea shop. This way, you can make your business plan more authentic and have a clear idea of how you can achieve your sales goals.