Abbie’s Bevies Finance Breakdown

By Zoe Baskett, Rob Noble, Sarah Kirkby, Michael Fabiyi & Tim

Bedford-Bain

What is Abbie’s Bevies and why is the investment needed?

• Online supplier of hot beverages and machinery • USP through levels of customer service • Aim to maximise the efficiency of the product

enabling a premium price • Partners with an established coffee brand • Looking for £30,000 at the rate of 3.4% • To expand and grow the company • Currently unable to take advantage of the market

potential • Investment will allow the to improve economies

of scale and relationships with suppliers

The business environment S.W.O.T Analysis

• Strengths- USP of after sales support

• Weaknesses- Cost of staff training & USP is easily mimicked

• Opportunities- Leaders in free after care:- gain large customer base

• Threats- Large chains (Starbucks/Costa) already have after care support (Starbucks.,2013)

P.E.S.T Analysis• Political- Tax on take away

hot drinks (Customs, 2012). Fair trade coffee

• Economical- Fair trade coffee (anon.,2010)

• Social- Growing popularity for social coffees (anon.,2010)

• Technological- 3 different types of coffee machines. Can be overly complicated leaving high service charges.(anon.,2012)

The finances !

• Fixed assets – Much more reliable, but as the fixed assets are lower than the liabilities by £84,974, it will mean that her assets are not enough to pay off her liabilities.

• Current assets – Not reliable source, changes a lot so it fluctuates so therefore we could not use that as a reliable source.

• Loan repayments – As the business still has loan repayments of £52,207 the business will be using our loan to pay off other existing loans.

Should we invest in Abbie's Bevies?• Pro's • She and her team have a lot of experience within

the industry. • Satisfied other banks with their loan repayments. • Organised and planned future. The company know

what they are going to do with the loan. • The company makes a profit • Con's • A lot of competition • Already owes money back to other lenders • Has already acquired debt in the past • USP is not original enough. • Long running business with low profit

Why did we say no?• Reason for the refusal -Their fixed costs are too high • The business will be paying out other loan payments

while still trying to pay us (investors) £903.33 each month.

• The amount of fixed cost the business faces makes it hard to believe that they'll increase their profit margin in the next 2/3years.

• Operating in a competitive market with a weak USP. • Business has broken even & made a profit for the

past 2 years, however, their profit margin is small and has declined by £3,176 since the year 2011.

References !• Bibliography • Anon, 2012. Coffee to go. 18(5), pp. 50-51. • Anon, 2010. Passion for Coffee. [Online]

Available at: http://www.passionforcoffee.com/types/fair-trade/ [Accessed 16 April 2013].

• Anon, 2010. Passion for Coffee. [Online] Available at: http://www.passionforcoffee.com/background/overview/ [Accessed 16 April 2013].

• Customs, H. R. a., 2012. HM Revenue and Customs. [Online] Available at: http://www.passionforcoffee.com/background/overview/ [Accessed 16 April 2013].

• Starbucks, 2013. Starbucks. [Online] Available at: http://starbucks.co.uk/about-us[Accessed 17 April 2013].