| Course | MGT 401 Small Business: Structure, Planning, Funding (MGT/401) |
|---|---|
| Week | 4 |
| Paper type | Business plan draft |
| Length | about 1,124 words, 4 double-spaced pages plus title page and references |
| Format | APA 7 student paper |
| School | University of Phoenix |
| Program | BS in Business |
| Updated | October 2026 |
Free sample paper for MGT 401 Week 4
Turning Three Weeks of Analysis Into a Business Plan a Banker Will Read: Copper Kettle Roasters' Plan Draft
[Student Name]
University of Phoenix
MGT/401: Small Business: Structure, Planning, Funding
Week 4 Assignment
[Instructor Name]
[Date]
Copper Kettle Roasters and all projections are composites written for a model paper.
Dana Whitfield's composite roastery in New Mexico now has a feasibility study, a business model that leads with wholesale and subscriptions and a recommended LLC structure. Founder Dana Whitfield and co-owner Jordan Price will meet a loan officer at a community bank next month to request financing. They need a business plan. A business plan is not a forecast of the future so much as an argument, built from evidence, that the owners understand their business well enough to be trusted with someone else's money. This paper drafts the plan in condensed form.
Does Planning Help?
Research on planning is mixed but useful. Delmar and Shane (2003) tracked 223 Swedish startups and reported that founders who planned before acting were less prone to shutting down and sped up later steps such as developing the product and organizing the company. Brinckmann et al. (2010) combined dozens of studies and saw a positive but modest link between planning and results, stronger in established small firms than in brand-new ones and strongest where the plan served as a tool for learning. For Copper Kettle, the plan's value lies in testing consistency and in persuading the bank.
The Executive Summary
Copper Kettle Roasters LLC roasts specialty coffee in Albuquerque and sells it through wholesale accounts, subscriptions, farmers markets and a planned café in Nob Hill. After two years and $86,000 in sales as a market business, with three restaurants already asking for wholesale beans, the owners request $250,000 in bank financing for a roaster, café buildout and working capital. Projected revenue is $445,000 in the first full year and $690,000 in year three, with loan payments covered 1.6 times by cash flow in year two.
The Plan's Audience and Length
Scarborough and Cornwall (2019) advise that a business plan be written for its reader and kept as short as the reader's needs allow. A loan officer cares most about repayment: cash flow, collateral, the owners' commitment and experience and evidence that projections are grounded. The full plan runs about 20 pages plus appendices, with the most detail in the financial section and the evidence of demand. Sections that interest investors more than lenders, such as long-term expansion ideas, are kept brief.
Company Description
Copper Kettle is a New Mexico LLC owned 85 percent by Dana Whitfield and 15 percent by Jordan Price. Its mission is to roast fresh, distinctive coffee with New Mexico character and share it with neighbors and local businesses.
Products and Services
Products include single-origin and blended coffees, a seasonal pinon blend and a green chile roast made with a local partner; café drinks and pastries; subscriptions; and wholesale supply with staff training.
Market Analysis
Albuquerque's specialty coffee market is served by national chains, several independent cafés and two regional roasters. Nob Hill has heavy foot traffic and a university nearby. Wholesale demand comes from independent restaurants seeking local suppliers. Survey results and market sales provide evidence of demand.
Competitive Analysis
The plan compares Copper Kettle with the national chain, two independent cafés and two regional roasters on product, price, location and relationships, drawing on Week 2. Its advantages are local blends, an established following, a visible roaster and combined wholesale and retail.
Marketing and Sales Plan
Wholesale growth is the first priority: Dana will visit 40 restaurants and offices in the first six months, aiming for 25 accounts. Subscriptions will be promoted at markets and in the café. The café will open with morning and weekend hours, promoted through social media, neighborhood events and the loyalty card.
Operations Plan
The roastery and café will share a 2,400-square-foot space. Roasting will take place three days a week. Green coffee will be bought from two importers. Wholesale deliveries will run twice weekly. The café will open from 6:30 a.m. to 2 p.m. on weekdays and 7 a.m. to 4 p.m. on weekends at first.
Management and Organization
Dana manages roasting, sourcing and wholesale. Jordan manages finances and administration part-time. An experienced café manager will be hired before opening, supported by four to six part-time baristas. An accountant and attorney advise the business.
Financial Assumptions
The projections assume 900 pounds of wholesale beans a month in year one, growing to 1,500 by year three; 180 subscribers rising to 320; café traffic averaging 150 customers a day in year one, rising to 230 as hours expand; an average café ticket of $8.50; green coffee costs rising 5 percent a year; and wage increases of 4 percent a year.
Three-Year Projections
Revenue is projected at $445,000 in year one, $575,000 in year two and $690,000 in year three. Net income is projected at a small loss of $12,000 in year one, then $48,000 in year two and $86,000 in year three. Cash flow covers loan payments of about $42,000 a year from year two.
The Downside Case
If café traffic reaches only 110 customers a day and wholesale grows half as fast, year-two revenue would be about $470,000 with roughly break-even results. In that case, the owners would keep café hours limited, defer an additional hire and draw lower salaries, and the line of credit would cover seasonal gaps.
Funding Request and Use of Funds
The owners request a $175,000 equipment and buildout loan and a $75,000 line of credit. Funds will be used for the roaster and ventilation, $85,000; leasehold improvements, $95,000; café equipment and furniture, $40,000; and working capital, $30,000. The owners contribute $80,000 in savings and investment.
Risks and Responses
The plan names risks openly: rising green coffee prices, slower café traffic, loss of a large wholesale account and owner burnout. Responses include price adjustment clauses, limited café hours at first, a cap on any one account's share and the café manager hire.
Milestones
The plan sets milestones the bank can monitor: 15 wholesale accounts by month four, the café open by month six, 180 subscribers by month nine and positive monthly cash flow by month 14. Missing a milestone will trigger a review of café hours and staffing. Milestones turn the projections into commitments the owners can be held to and give the lender early signals.
Supporting Documents
The bank will want personal financial statements, tax returns for three years, the LLC's operating agreement, the lease, equipment quotes, market sales records and letters of intent from wholesale customers.
Conclusion
The draft plan brings together three weeks of analysis into an argument for a lender: proven demand, a model built around wholesale and subscriptions, a sound legal structure, realistic projections with a downside case and a clear request. Writing it revealed one inconsistency, café traffic assumptions above what Week 1 tested, which was corrected by phasing café hours.
References
Brinckmann, J., Grichnik, D., & Kapsa, D. (2010). Should entrepreneurs plan or just storm the castle? A meta-analysis on contextual factors impacting the business planning-performance relationship in small firms. Journal of Business Venturing, 25(1), 24-40. https://doi.org/10.1016/j.jbusvent.2008.10.007
Delmar, F., & Shane, S. (2003). Does business planning facilitate the development of new ventures? Strategic Management Journal, 24(12), 1165-1185. https://doi.org/10.1002/smj.349
Scarborough, N. M., & Cornwall, J. R. (2019). Essentials of entrepreneurship and small business management (9th ed.). Pearson.
What the MGT 401 Week 4 instructions ask
The fourth MGT 401 assignment usually asks students to draft a business plan or major sections of one. Common elements include an executive summary, company description, products and services, market and competitive analysis, marketing and sales plan, operations plan, management and organization, financial projections with assumptions and funding needs. Some prompts ask students to explain the plan's purpose and audience. Build on earlier weeks, keep sections consistent, support projections with stated assumptions, write for a specific reader such as a lender and cite sources in APA format. Check that the marketing plan and the financial projections assume the same number of customers, a mismatch instructors often spot.
How this MGT 401 Week 4 example is built
Three weeks of analysis become a business plan in this paper, written for a community bank loan officer. Research suggests planning helps when it is used to learn and coordinate rather than as a formality. The executive summary states the request: $250,000 in loans for equipment and buildout. Company, market and competition sections draw on Weeks 1 and 2. The marketing plan leads with wholesale and subscriptions. Operations and management describe the roastery, café hours and the café manager hire. A three-year projection shows revenue of $445,000 in year one rising to $690,000, with a downside case. The paper lists the documents the bank will want and sets milestones the lender can monitor.
MGT 401 Week 4 grading rubric: where the points go
A strong business plan draft is consistent, evidence-based and written for its reader. Instructors credit an executive summary that states the opportunity, the request and the expected results; market and competitive sections supported by data; a marketing plan that matches the business model; realistic operations and management sections; and financial projections with assumptions, a downside case and a clear funding request. Using research on planning to explain the plan's purpose shows reflection. Concise writing, tables and APA citations finish the draft. Plans that admit risks and show how they will be managed earn more trust from both instructors and lenders, and a short list of supporting documents shows the writer knows what happens after the plan is submitted.
MGT 401 Week 4 help: mistakes to avoid
Students often write plans in which the marketing section promises more customers than the financial projections assume. Check consistency across sections. Another common gap is projections without assumptions; list price, volume and cost assumptions. Students also write the executive summary first. Write it last, after the other sections. Avoid hiding risks; lenders look for them. Keep the plan concise and specific to the reader. Include a downside case. Show how much money is needed and how it will be used. Finally, include the supporting documents a lender expects, such as personal financial statements and tax returns. Keep the full plan to a length the reader will actually finish.
Related MGT 401 sample papers
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- MGT 401 Week 2: Competitive Business Model
- MGT 401 Week 3: Comparing Forms of Ownership
- MGT 401 Week 5: Funding Options
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MGT 401 Week 4 questions, answered
What does MGT 401 Week 4 usually cover?
It usually covers drafting a business plan: executive summary, company description, market and competitive analysis, marketing, operations, management, financial projections and funding needs.
Where can I find a free MGT 401 Week 4 sample paper?
A full business plan draft for a coffee roaster, written for a bank and annotated by section, appears on this page. A free first version of your plan section can be written from your prompt.
Does writing a business plan improve results?
Research finds a modest positive relationship between planning and performance, stronger for established small firms, and suggests that planning helps when it is used to learn, coordinate and test assumptions.
What should an executive summary include?
A brief description of the business, the opportunity, the competitive advantage, the management team, key financial projections and the amount and use of funding requested.
What do banks look for in a small business plan?
Realistic projections, evidence of demand, the owner's experience and commitment, collateral, cash flow sufficient to repay the loan and a clear explanation of risks and how they will be managed.
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