Sources of Funding
The major source of funding for the Reborn Coffee Shop will be the revenue from the sale of the beverages. The revenue from the sale of product lines at the coffee shop is projected to be $250,000 within the first year, while the gross profit will be $100,000. The policy of investing back the profit into the business will be applied; where the proceeds from the sales will be used to purchase the production equipment and financing the sales and marketing activities ( Berry, 2010) . For the production purposes, other finds will be used in financing the inventory as well as other capital purchases that are related to the process of production.
Plan Assumptions
The business plan of the Reborn Coffee Shop will be developed basing on several assumptions. The first assumption is that the global economy will be stable while the country will experience economic growth in terms of GDP, lowered inflation rates, and disposable income, which will stimulate the purchasing power of consumers in the beverages industry ( Berry, 2010) . The other assumption is that there will be no major changes in the external environment including political and economic factors that may affect the smooth functions of the coffee shop. The last assumption is that the industry does not expect any new developments in technology that may alter the product portfolio of the main players including Reborn Coffee Shop.
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Break-Even Analysis
The first fiscal year is expected to generate a total gross profit of $100,000. The second year is also expected to generate $200,000, while the third and fourth years are expected to generate $300,000, and $400,000 respectively. This implies that within the first five years of operation, Reborn would have recouped its investment capital of $1000, 000 ( Berry, 2010) . Therefore, the company would break even at the end of the fifth year, when the gross profit would have accumulated to $1000, 000.
Reference
Berry, T. (2010). Break-even analysis. Web Hot particles Bplans Comwritin genus .
