21 Why did Owen choose the “library district” for the coffee shop location?
A It has high foot traffic from students.
B The rental costs are currently low.
C There are no competing businesses nearby.
22 What is Nora’s main concern about their proposed opening hours?
A They will have to pay staff extra wages.
B Early mornings might not attract enough customers.
C It overlaps too much with their university classes.
23 According to the tutor’s previous feedback, their business plan must include
A a detailed environmental policy.
B a contingency fund for emergencies.
C an analysis of potential technological risks.
24 What do they agree to do regarding the initial funding?
A Apply for a government startup grant.
B Borrow money from family members.
C Pitch the idea to local investors.
Questions 25 to 30
What do the students decide about who will draft the following sections of the business plan?
Write the correct letter, A, B, or C, next to Questions 25 to 30.
A Owen
B Nora
C Both of them
Sections of the business plan
25 Target market survey
26 Equipment budget
27 Menu pricing
28 Licensing laws
29 Promotional campaign
30 Profit forecasts
Keys
21 A
22 B
23 B
24 A
25 B
26 C
27 A
28 B
29 C
30 A
Transcripts
Part 3: You will hear two business students, Nora and Owen, discussing their assignment to create a business plan for a new coffee shop.
NORA: Hey Owen, ready to finalize the details for our coffee shop business plan?
OWEN: Yes. Let’s start with the location. I was initially looking downtown, but I’ve officially decided on the library district. I know some areas have cheap leases right now, but this spot actually isn’t one of them. And there are already two other coffee shops on the exact same street, so competition will be tough.
NORA: Why pick it then if it’s expensive and crowded?
OWEN: Because of the university crowds. That steady stream of foot traffic is exactly what we need to guarantee sales.
NORA: That makes sense. Now, about our operating schedule. You suggested opening at 6:00 AM. While paying baristas a higher rate for early shifts is already in our budget, my real worry is that the streets are practically empty then. I just don’t think we’ll get enough early risers to justify being open.
OWEN: Fair point. Let’s push the opening time to 7:30 AM instead.
NORA: Agreed. Now, addressing the tutor’s feedback from last week. He mentioned mandatory sections for the final submission.
OWEN: Right. I remember him saying we don’t need an environmental policy just yet. He also crossed out technology risks, saying it’s too advanced for a small business. But he was very strict about financial safety nets. We absolutely have to outline a contingency fund in case things go wrong initially.
NORA: Got it. What about securing our initial capital? I was thinking about approaching local business investors.
OWEN: I looked into that, but investors usually want a large percentage, and asking relatives for a loan gets too emotionally complicated.
NORA: What’s the realistic alternative?
OWEN: We should submit an application for that new government startup grant. It’s designed specifically for young entrepreneurs, and we wouldn’t have to give up equity.
NORA: Much better idea.
OWEN: Okay, let’s divide up the remaining sections. Who is handling the target market survey?
NORA: I can take that on. I’ve already drafted a preliminary questionnaire to send to students to see what drinks they prefer. I’ll collate responses by Friday.
OWEN: Perfect. Next is the equipment budget – pricing out espresso machines and refrigerators.
NORA: I have no idea how much commercial gear costs.
OWEN: Neither do I. Why don’t we sit down at the library tomorrow and research those figures together?
NORA: Solid plan. What about the menu pricing?
OWEN: I actually enjoy playing around with numbers to find the sweet spot between affordable and profitable. I’ll get that done tonight.
NORA: Thanks. Next is researching local licensing laws. We need to know the regulations for serving food.
OWEN: I looked at the city council website, but the legal jargon is confusing.
NORA: My aunt works in local government. I can call her this evening and figure out exactly what permits we need to include. I’ll handle that section.
OWEN: Excellent. We also need to outline the promotional campaign for the grand opening.
NORA: We need a strong strategy. I can design posters, but I’m terrible at social media algorithms.
OWEN: And I’m great at social media but awful at graphic design. Let’s join forces on this one so we cover all bases effectively.
NORA: Good idea. Finally, the overall profit forecasts for year one.
OWEN: Since I’m doing the individual menu pricing, it makes sense for me to expand that data into the annual projections. I’ll pull all those statistics together into a graph.
NORA: That leaves me free to proofread the document before we submit it next Monday.
