Table of Contents:

1. Executive Summary

2. Business/Industry Overview
3. Market Analysis and the Competition

4. Sales & Marketing Plan

5. Ownership and Management Plan

6. Operating Plan
7. Financial Plan

8. Appendices and Exhibits

Section 1: Executive Summary

Place the executive summary near the beginning of the

plan, but write it last. It should provide a short, concise, and
optimistic overview of your business that captures the reader's
attention and gives them an interest in learning more about it.
The executive summary should be no more than two pages
long, with brief summaries of other sections of the plan.

Java Jake's Coffee House will be the go-to place for coffee
lovers. We plan on serving the highest quality coffee and snacks
in a trendy, comfortable atmosphere. Our convenient location
and excellent customer service should build a steady repeat
customer base.

Owners Jack Valdez and partner Juanita Sanchez each have

more than a decade in the food service industry, including
management experience.

Our main products will be higher margin gourmet coffee

products such as espressos, cappuccinos, lattés, and a variety of
snacks, including healthy alternatives.

Strategically located within easy walking distance from the

technical school, nursing colleges, and a variety of office
complexes, we intend to cater to students and young office
workers by providing plenty of seating space and superior
customer service with a trendy vibe.

In the immediate area, our competition consists mainly of fast

food vendors such as McDonald's and Dunkin. We plan on
capturing the upper end of the local coffee market by serving
gourmet, nonmachine-made coffee products at reasonable
prices. Along with our superior atmosphere and great customer
service, we intend to target sophisticated coffee consumers.

The location we have selected has 2,000 square feet of space,

room for an outdoor patio, and requires minimal renovations.
The space has been vacant for several months and the owner is
motivated and has offered a four-year lease with a fifth year
free.

We expect sales revenue to grow from $200,000 in the first year

of operations to $250,000 by the end of the third year. To
minimize operating expenses, both of the principals will be
onsite on a full-time basis to reduce staffing costs, supervise,
and maintain quality control. We expect net profits to grow
from $50,000 to $100,000 by year three.

$200,000 in startup funding is required for lease costs,

renovations, equipment, and furniture. The principals have
$100,000 in cash and will obtain the rest from commercial
lenders.

Section 2: Business/Industry Overview

Provide an overview of the coffee industry, the local market,

and what makes your business unique.
The Coffee Industry

According to analysis by Pew Research, millennials have

overtaken baby boomers as America's largest living generation.
Millennials are more social and mobile than previous
generations and prefer to have coffee with friends in trendy,
public locations, increasing the popularity of high-end coffee
shops. U.S. statistics indicate that:

 Gourmet coffee's popularity is increasing across diverse

demographics
 Americans consume more than 600 million cups of coffee
per day
 Retail sales of coffee exceed $47 billion per year
Our Position in the Industry

East Clovervale is an affluent area with a high density of

students and young professionals, an ideal market for a coffee
shop such as Java Jake's Coffee House. People in this area can
afford to spend money on specialty coffees and snacks and are
willing to do so.

Our market research has shown that seven out of 10

people polled in East Clovervale consume at least three cups of
specialty coffee per week.

The Competition

While there currently are two other coffee shops within the
immediate area, neither offer patio seating or substantial
parking. One does not offer free wifi.

What Makes Java Jake's Coffee House Unique

Java Jake's Coffee House marketing strategy is to cater to the
the young and young at heart with top quality products, great
service, and plenty of seating indoors and out. We aim to be the
place to meet with friends, relax, and enjoy a great cup of
coffee. Ultrafast wifi will enable students and business people to
readily communicate and work on school or business activities.
Section 3: Market Analysis and the Competition

Demonstrate that you have thoroughly analyzed the target

market and that there is enough demand for your products to
make your coffee business viable. The competitive analysis
includes an assessment of the competition and how your coffee
business will compete in the sector.

Given the proximity to schools and office complexes, our

primary target market will be students and professional
business people. Both groups are heavy consumers of coffee,
tea, and snacks.

Based on our customer surveys, there is a strong demand for a

high-end coffee shop in a central location that serves great
coffee and has both outdoor seating and available parking. The
three most common complaints about the existing competition
in the area are:

 Inconsistent product: Discerning customers are reluctant

to become regular patrons of a coffee shop that cannot
consistently serve a high-quality product.
 Lack of patio seating: Many people prefer to consume
their food and beverages outdoors on a sunny day.
  Lack of parking: The lack of parking makes it difficult to
attract vehicle commuters.

The local customer base consists of approximately:

 3,000 students from two post-secondary schools

 200 school staff
 1,000 business people and office workers

Both schools have solid attendance and are expanding their

student populations. The local business market is strong and
has been relatively unaffected by previous economic downturns.

Compared to our compeition, we expect our revenues to grow

strongly as we build our customer base:

Coffee to Lindens Java Jake's Coffee

Go (Year 1)
Est. Annual $150,000 $250,000$200,000
Revenue
Employees 8 10 6
Price Low High High
Quality Low Average High
Section 4: Sales and Marketing Plan

Describe how you intend to entice customers to patronize your

coffee shop, including advertising, promotion, pricing strategy,
sales, and service.

Our Product Offerings

The existing competition uses lower grade beans, inexpensive
equipment, and does not properly train staff — resulting in
inconsistent product quality and dissatisfied customers.

At Java Jake's we are passionate about coffee and intend to

focus on consistently serving the highest quality product by:

 Sourcing premium beans and snacks and maintaining

freshness at all times.
 Using a top-of-the line espresso machine and related
equipment.
 Providing baristas with professional training.

By focusing on quality, consistency, and great customer service,

we will build a steady repeat customer base.

Pricing Strategy

We intend to focus on specialty coffees including espresso,

cappuccinos, mochas, etc. as the profit margins are much
higher than regular coffee. To command a higher price for
regular coffee, we will not use drip machines. Instead, each cup
will be single served using a coffee press so that every cup is up-
to-the-minute fresh and delicious.

Our pricing will be competitive with the higher end of the

market. We believe that customers will be happy to pay top
prices for a great cup of coffee.

Sales
We will be offering counter service in a professionally designed,
cozy, inviting interior space. Interior seating will be a mix of
smaller individual tables for intimacy, and longer, bench-style
ones for larger groups. Exterior seating will consist of
weatherproof tables and chairs with available sunshade
umbrellas. We intend to be open from 6:30 a.m.-9 p.m. on
weekdays, and 7 a.m.-9 p.m. on weekends.

In addition to cash, credit, and debit, we also will be accepting

Apple Pay for purchases.
Advertising and Promotion

To minimize costs and connect with our customer demographic,

most of our advertising will be of the digital variety. We intend
to aggressively promote our products using the following
methods:

 Posters on the local campus billboards

 Our state-of-the-art website
 Daily specials announced on Facebook, Instagram, and
Twitter

Statistics demonstrate that loyalty cards are highly effective,

and Java Jake's will use a custom-designed rewards card to
promote repeat business.

Section 5: Ownership and Management Plan

Describe the legal structure, ownership, and (if applicable) the

management and staffing requirements of your business.
Ownership Structure

Java Jake's Coffee House is a private corporation registered in

the state of Texas. The business is 100% owned by Jack Valdez
and Juanita Sanchez:

 Jack Valdez: 60 Class A Shares

 Juanita Sanchez: 40 Class A Shares

Management

Owners Jack and Juanita will co-manage the business, and at

least one will be present at all times during open hours. Both
owners have previous food service management experience and
are trained and experienced baristas.
External Resources and Services

Melford's Design Services will be contracted for the interior

design of the premises.

Jackson and Jackson will provide accounting services for the

business.

Jody's Catering will supply the baked goods.

Section 6: Operating Plan

Outline the physical requirements of your business, such as

retail space, equipment, inventory and supply needs, labor, etc.
For a business such as a coffee shop that requires custom
facilities, supply chains, specialized equipment, and multiple
employees, the operating plan needs detail.
Facilities

The premises we have chosen are at 2303 Stewart St. The space
features:

 2,000 square feet of indoor space in a modern, well-

maintained building in an excellent location
 Approximately 500 square feet of outdoor patio space,
with lockup racks for bicycles
 Existing zoning for restaurant usage
 A four-year lease at $3,500/month with a fifth year free
 The building owner is responsible for trash collection,
recycling, pest control, and security
 Utilities (water, electricity, gas, internet, phone) are
estimated to be $800 per month

The previous tenant was a restaurant, and there are existing

kitchen and washroom facilities already in place. The previous
tenant has offered to sell used kitchen equipment at heavily
discounted prices.
Staffing

Two full-time and four to six part-time baristas will be hired at

industry standard wages. Baristas will be trained at a regional
barista training academy. The two full-time employees are
previous employees of the owners. The part-time employees will
be sourced from the local post-secondary institutions.
Owners and staff will share all regular duties, including taking
orders, making coffee/tea, clearing tables, restocking,
dishwashing, maintaining washroom facilities, etc.

To increase employee loyalty, a bonus/profit sharing system will

be put in place.

Equipment

The following equipment will be purchased:

 Commercial grade La Marzocco Espresso machine

($25,000)
 Espresso grinder ($1,500)

We currently are negotiating the purchase of used commercial

equipment from the previous tenant, including:

 Glassdoor fridge ($1,000)

 Dishwasher ($1,500)
 Microwave ($700)
 Misc. shelving, storage bins, etc. ($500)

Maintenance contracts for the equipment will be negotiated

with local vendors.

Supplies

We have negotiated an agreement with Murphy's Coffee

Wholesalers to supply premium gourmet Columbian
coffee/espresso beans with two-day shipping. Milk, juices, soft
drinks, fruit, etc. will be sourced from the local Costco.
Muffins, scones, cookies, yogurt fruit cups, and sandwiches will
be supplied on a daily basis by Jody's Catering.

Section 7: Financial Plan

This is the most important section of the business plan,

especially if you need debt financing or wish to attract
investors. The financial plan has to demonstrate that
your business will grow and be profitable. To do this you will
need to create projected income statements, cash
flow statements, and balance sheets. For a new business, these
are forecasts, and a good rule of thumb is to underestimate
revenues and overestimate expenses.

Include these financial statements:

 Income Statements: These shows your projected revenues,

expenses, and profits. Do this on a monthly basis for at
least the first year for a startup business.
 Cash Flow Projections: These show your monthly
anticipated cash revenues and disbursements for expenses.
It is important for demonstrating that you can manage
your cash flow and will be a good credit risk.
 Balance Sheet: This is a snapshot summary of the assets,
liabilities, and equity of your business at a particular point
in time. For a startup, this would be on the day the
business opens. Note that a new business will have no
accounts receivable entries on the balance sheet. Note also
that the balance sheet is much simpler for unincorporated
businesses without employees. Income tax, pensions,
 medical, etc. are only applicable
to incorporated businesses, as are earnings/retained
earnings.
 Breakeven Analysis: Including a breakeven analysis
demonstrates to financiers or investors what level of sales
you need to achieve to make a profit.
Section 8: Appendices and Exhibits

The appendices and exhibits section contains any detailed

information needed to support other sections of the plan.

Possible appendix/xxhibit Items include:

 Credit histories for the business owners

 Detailed market research and analysis of competitors
 Resumes of the owners and key employees
 Information about your industry
 Information about your products/services
 Site/building/office plans
 Copies of mortgage documents, equipment leases, etc. (or
quotes on these)
 Marketing brochures and other materials
 References from business colleagues
 Links to your business website
 Any other supporting material that may impress potential
lenders or investors if you are looking for financing.