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Plan Outline
Coffee Shop Business Plan
Java Culture
Company Summary
Java Culture, an Oregon limited liability company, sells coffee, other beverages and snacks in its 2,300 square feet premium coffee bar located near the University of Oregon campus. Java Culture's major investors are Arthur Garfield and James Polk who cumulatively own over 70% of the company. The start-up loss of the company is assumed in the amount of £27,680.
2.1 Company Ownership
Java Culture is registered as a Limited Liability Corporation in the state of Oregon. Arthur Garfield owns 51% of the company. His cousin, James Polk, as well as Megan Flanigan and Todd Barkley hold minority stakes in Java Culture, LLC.
2.2 Start-up Summary
The start-up expenses include:
- Legal expenses for obtaining licenses and permits as well as the accounting services totaling £1,300.
- Marketing promotion expenses for the grand opening of Java Culture in the amount of £3,500 and as well as flyer printing (2,000 flyers at £0.04 per copy) for the total amount of £3,580.
- Consultants fees of £3,000 paid to ABC Espresso Services <name changed> for the help with setting up the coffee bar.
- Insurance (general liability, workers' compensation and property casualty) coverage at a total premium of £2,400.
- Pre-paid rent expenses for one month at £1.76 per square feet in the total amount of £4,400.
- Premises remodeling in the amount of £10,000.
- Other start-up expenses including stationery (£500) and phone and utility deposits (£2,500).
The required start-up assets of £142,320 include:
- Operating capital in the total amount of £67,123, which includes employees and owner's salaries of £23,900 for the first two months and cash reserves for the first three months of operation (approximately £14,400 per month).
- Start-up inventory of £16,027, which includes:
- Coffee beans (12 regular brands and five decaffeinated brands) - £6,000
- Coffee filters, baked goods, salads, sandwiches, tea, beverages, etc. - £7,900
- Retail supplies (napkins, coffee bags, cleaning, etc.) - £1,840
- Office supplies - £287
- Equipment for the total amount of £59,170:
- Espresso machine - £6,000
- Coffee maker - £900
- Coffee grinder - £200
- Food service equipment (microwave, toasters, dishwasher, refrigerator, blender, etc.) - £18,000
- Storage hardware (bins, utensil rack, shelves, food case) - £3,720
- Counter area equipment (counter top, sink, ice machine, etc.) - £9,500
- Serving area equipment (plates, glasses, flatware) - £3,000
- Store equipment (cash register, security, ventilation, signage) - £13,750
- Office equipment (PC, fax/printer, phone, furniture, file cabinets) - £3,600
- Other miscellaneous expenses - £500
Funding for the company comes from two major sources--owners' investments and bank loans. Two major owners, Arthur Garfield and James Polk, have contributed £70,000 and £30,00 respectively. All other investors have contributed £40,000, which brings the total investments to £140,000. The remaining £30,000 needed to cover the start-up expenses and assets came from the two bank loans--a one-year loan in the amount of £10,000 and a long-term (five years) loan of £20,000. Both loans were secured through the Bank of America. Thus, total start-up loss is assumed in the amount of £27,680.
The following chart and table summarize the start-up assumptions.
| Start-up | |
| Requirements | |
| Start-up Expenses | |
| Legal | £1,300 |
| Stationery etc. | £500 |
| Brochures | £3,580 |
| Consultants | £3,000 |
| Insurance | £2,400 |
| Rent | £4,400 |
| Remodeling | £10,000 |
| Other | £2,500 |
| Total Start-up Expenses | £27,680 |
| Start-up Assets | |
| Cash Required | £67,123 |
| Start-up Inventory | £16,027 |
| Other Current Assets | £0 |
| Long-term Assets | £59,170 |
| Total Assets | £142,320 |
| Total Requirements | £170,000 |
| Start-up Funding | |
| Start-up Expenses to Fund | £27,680 |
| Start-up Assets to Fund | £142,320 |
| Total Funding Required | £170,000 |
| Assets | |
| Non-cash Assets from Start-up | £75,197 |
| Cash Requirements from Start-up | £67,123 |
| Additional Cash Raised | £0 |
| Cash Balance on Starting Date | £67,123 |
| Total Assets | £142,320 |
| Liabilities and Capital | |
| Liabilities | |
| Current Borrowing | £10,000 |
| Long-term Liabilities | £20,000 |
| Accounts Payable (Outstanding Bills) | £0 |
| Other Current Liabilities (interest-free) | £0 |
| Total Liabilities | £30,000 |
| Capital | |
| Planned Investment | |
| Arthur Garfield | £70,000 |
| James Polk | £30,000 |
| All other investors | £40,000 |
| Additional Investment Requirement | £0 |
| Total Planned Investment | £140,000 |
| Loss at Start-up (Start-up Expenses) | (£27,680) |
| Total Capital | £112,320 |
| Total Capital and Liabilities | £142,320 |
| Total Funding | £170,000 |
2.3 Company Locations and Facilities
Java Culture coffee bar will be located on the ground floor of the commercial building at the corner of West 13th Avenue and Patterson Street in Eugene, OR. The company has secured a one-year lease of the vacant 2,500 square feet premises previously occupied by a hair salon. The lease contract has an option of renewal for three years at a fixed rate that Java Culture will execute depending on the financial strength of its business.
The floor plan will include a 200 square feet back office and a 2,300 square feet coffee bar, which will include a seating area with 15 tables, a kitchen, storage area and two bathrooms. The space in the coffee bar will be approximately distributed the following way--1,260 square feet (i.e., 55% of the total) for the seating area, 600 square feet (26%) for the production area, and the remaining 440 square feet (19%) for the customer service area.
This property is located in a commercial area within a walking distance from the University of Oregon campus on the corner of a major thoroughfare connecting affluent South Eugene neighborhood with the busy downtown commercial area. The commercially zoned premises have the necessary water and electricity hookups and will require only minor remodeling to accommodate the espresso bar, kitchen and storage area. The coffee bar's open and clean interior design with modern wooden decor will convey the quality of the served beverages and snacks, and will be in-line with the establishment's positioning as an eclectic place where people can relax and enjoy their cup of coffee. The clear window displays, through which passerby will be able to see customers enjoying their beverages, and outside electric signs will be aimed to grab the attention of the customer traffic.