This presentation looks at a hypothetical business and ask basic finance questions surrounding a suggested investment. We carry out a basic breakdown of the business and suggest weather we would invest or not, using PEST and SWOT analysis techniques.

1. Abbie’s Bevies Finance Breakdown
By Zoe Baskett, Rob Noble, Sarah
Kirkby, Michael Fabiyi & Tim
Bedford-Bain

2. 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

3. 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)

4. 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.

5. 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

6. 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.

7. 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].