Opportunity
Problem
Washington State does not have enough coffee shops to offer quality coffee or freshly baked pastries for those with higher incomes.
Solution
JJB offers a broad range of coffee and espresso products, all from high quality imported coffee beans. JJB provides coffee and espresso products that are tailored to each customer’s needs.
Market
Washington’s cool climate makes hot coffee products very popular. Iced coffee products and hot coffee products are both in great demand during the warm four months. A lot of the day’s activity happens before ten a.m. with a steady flow throughout the day.
Concurrence
Local competition is limited and doesn’t offer nearly the same product quality or customer service as JJB. Local customers are looking for a high quality product in a relaxing atmosphere. They want a memorable, elegant experience.
Why Us
JJB is a bakery and coffee shop managed by two partners. These partners represent sales/management and finance/administration areas, respectively. The partners will provide funding from their own savings, which will cover start-up expenses and provide a financial cushion for the first months of operation.
Expectations
Forecast
JJB forecasts its sales in the three years following the plan. JJB expects to break even within the fourth month, as it increases its sales steadily. Profits for this time period are expected to be relatively low in the first two years, increasing somewhat in the third. The founders will invest $140,000.
Financial Highlights Year-by-Year
Financing is Required
Startup requirements:
- Startup expenses of $64K include $3K legal, $20K premises renovations, $40K expensed equipment and $1K other. These are deducted from the initial balance as a negative retained earnings because they were incurred after launch.
- Cash in the bank as a deposit of $70K (in initial balance)
- Additional assets in the current of $12K (in an initial balance).
- Long-term assets in the range of $65 (initial balance)
Finance
- $110K initial investment from founders (Shows up in initial balance as Paid-in Capital.)
- SBA 100K 10-year loan in initial balance
- $1K in accounts payable at startup. (in initial balance)
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