Business plan for SEED Funding (coffee cafe and internet)

Please Visit: www.Enterslicellp.com
Free Download
Requests for Investor Ready Business plan with deck and projections
in excel , Business valuation , SEED / Series A funding. Please email
your questions / request to the Startup support department of
Enterslice Value advisors LLP at info@enterslicellp.com. For more
information please visit our Website: www.enterslicellp.com
Copyright © Enterslice, LLP., 2013-2016 All rights reserved Legal Page
Confidentiality Agreement
The undersigned reader acknowledges that the information provided by
_________________________ in this business plan is confidential; therefore, reader agrees not to
disclose it without the express written permission of _________________________.
It is acknowledged by reader that information to be furnished in this business plan is in all respects
confidential in nature, other than information which is in the public domain through other means
and that any disclosure or use of same by reader, may cause serious harm or damage to
_________________________.
Upon request, this document is to be immediately returned to _________________________.
___________________
Signature
___________________
Name (typed or printed)
___________________
Date
This is a business plan. It does not imply an offering of securities.

Table of Contents
Page 1
1.0 Executive Summary........................................................................................................................... 1
Chart: Highlights.............................................................................................................................. 2
1.1 Objectives ........................................................................................................................................ 2
1.2 Mission............................................................................................................................................. 2
1.3 Keys to Success............................................................................................................................... 3
2.0 Company Summary........................................................................................................................... 3
2.1 Company Ownership .................................................................................................................... 3
2.2 Startup Summary........................................................................................................................... 3
Table: Startup.................................................................................................................................... 4
Chart: Startup ................................................................................................................................... 5
2.3 Company Locations and Facilities............................................................................................... 5
3.0 Products and Services........................................................................................................................ 6
3.1 Product and Service Description ................................................................................................. 6
3.2 Competitive Comparison.............................................................................................................. 7
3.3 Sales Literature............................................................................................................................... 8
3.4 Fulfillment....................................................................................................................................... 8
3.5 Technology...................................................................................................................................... 8
3.6 Future Products and Services....................................................................................................... 8
4.0 Market Analysis Summary............................................................................................................... 9
4.1 Market Segmentation .................................................................................................................... 9
Table: Market Analysis.................................................................................................................. 10
Chart: Market Analysis (Pie) ........................................................................................................ 11
4.2 Target Market Segment Strategy ............................................................................................... 11
4.2.1 Market Needs ........................................................................................................................ 11
4.2.2 Market Trends ....................................................................................................................... 11
4.2.3 Market Growth...................................................................................................................... 12
4.3 Service Business Analysis........................................................................................................... 12
4.3.1 Business Participants............................................................................................................ 12
4.3.2 Distributing a Service ........................................................................................................... 12
4.3.3 Competition and Buying Patterns ...................................................................................... 12
4.3.4 Main Competitors ................................................................................................................. 13

Table of Contents
Page 2
5.0 Web Plan Summary......................................................................................................................... 13
5.1 Website Marketing Strategy ....................................................................................................... 13
5.2 Development Requirements....................................................................................................... 13
6.0 Strategy and Implementation Summary ...................................................................................... 14
6.1 SWOT Analysis ............................................................................................................................ 14
6.1.1 Strengths................................................................................................................................. 14
6.1.2 Weaknesses ............................................................................................................................ 14
6.1.3 Opportunities......................................................................................................................... 14
6.1.4 Threats .................................................................................................................................... 14
6.2 Strategy Pyramid.......................................................................................................................... 14
6.3 Value Proposition......................................................................................................................... 14
6.4 Competitive Edge......................................................................................................................... 15
6.5 Marketing Strategy ...................................................................................................................... 15
6.5.1 Positioning Statement........................................................................................................... 16
6.5.2 Pricing Strategy ..................................................................................................................... 16
6.5.3 Promotion Strategy............................................................................................................... 16
6.5.4 Distribution Strategy ............................................................................................................ 16
6.5.5 Marketing Programs............................................................................................................. 17
6.6 Sales Strategy................................................................................................................................ 17
6.6.1 Sales Forecast......................................................................................................................... 17
Table: Sales Forecast .................................................................................................................. 17
Chart: Sales Monthly ................................................................................................................. 18
Chart: Sales by Year................................................................................................................... 19
6.6.2 Sales Programs ...................................................................................................................... 19
6.7 Strategic Alliances........................................................................................................................ 19
6.8 Milestones ..................................................................................................................................... 20
Table: Milestones............................................................................................................................ 20
Chart: Milestones ........................................................................................................................... 20
7.0 Management Summary................................................................................................................... 21
7.1 Organizational Structure............................................................................................................. 21
Org. Chart: Organizational Chart................................................................................................ 21

Table of Contents
Page 3
7.2 Management Team ...................................................................................................................... 21
7.3 Management Team Gaps ............................................................................................................ 21
7.4 Personnel Plan.............................................................................................................................. 22
Table: Personnel ............................................................................................................................. 22
8.0 Financial Plan ................................................................................................................................... 22
8.1 Startup Funding ........................................................................................................................... 22
Table: Startup Funding.................................................................................................................. 22
8.2 Important Assumptions.............................................................................................................. 23
8.3 Key Financial Indicators.............................................................................................................. 24
Chart: Benchmarks......................................................................................................................... 24
8.4 Break-even Analysis .................................................................................................................... 25
Table: Break-even Analysis .......................................................................................................... 25
Chart: Break-even Analysis .......................................................................................................... 25
8.5 Projected Profit and Loss ............................................................................................................ 26
Table: Profit and Loss.................................................................................................................... 26
Chart: Profit Monthly .................................................................................................................... 27
Chart: Profit Yearly........................................................................................................................ 27
Chart: Gross Margin Monthly...................................................................................................... 28
Chart: Gross Margin Yearly.......................................................................................................... 28
8.6 Projected Cash Flow .................................................................................................................... 29
Table: Cash Flow............................................................................................................................ 29
Chart: Cash...................................................................................................................................... 30
8.7 Projected Balance Sheet............................................................................................................... 31
Table: Balance Sheet....................................................................................................................... 31
8.8 Business Ratios ............................................................................................................................. 32
Table: Ratios.................................................................................................................................... 32
8.9 Long-term Plan............................................................................................................................. 33
8.10 The Investment Offering........................................................................................................... 33
Table: Investment Offering........................................................................................................... 33
8.11 Valuation..................................................................................................................................... 34
Table: Investment Analysis .......................................................................................................... 34

Table of Contents
Page 4
8.12 Use of Funds ............................................................................................................................... 35
Table: Use of Funds ....................................................................................................................... 35
8.13 Payback........................................................................................................................................ 35
Table: Payback................................................................................................................................ 35
Chart: Payback Period................................................................................................................... 36
Table: Sales Forecast ................................................................................................................................ 1
Table: Personnel ....................................................................................................................................... 2
Table: Profit and Loss.............................................................................................................................. 3
Table: Cash Flow...................................................................................................................................... 5
Table: Balance Sheet................................................................................................................................. 7

Business plan for coffee cafe and internet
Page 1
1.0 Executive Summary
Enterslice LLP will provide a relaxing, Christian-focused, neighborhood-centered place with
freshly roasted coffee, specialty drinks, good books, and music. Enterslice LLP is the answer to
an increasing demand. Our target market wants:
 Neighborhood businesses in South Central Minneapolis
 Great coffee at a competitive price
 A comfortable place to socialize with others with similar interests
Inspirational Grounds' goal is to provide the community with a social, entertaining atmosphere
where Christian neighbors can meet each other in a neutral, non-denominational setting.
Enterslice LLP is incorporated as an S corporation. This will shield the owner from issues of
personal liability and double taxation.
This proposal is prepared to obtain financing in the amount of $80,000. The supplemental
financing is required to prepare the selected site, purchase equipment, and cover expenses
during the first year of operation. The owner will invest $15,000 of her own into the business.
This financing will allow Enterslice LLP to successfully open and maintain operations. The large
initial capital investment will allow Enterslice LLP to provide its customers with an inviting
atmosphere and quality products. A unique, upscale and innovative environment is required to
provide customers with an atmosphere that will create socialization. Successful operation in
year one will provide Enterslice LLP with a customer base that will allow it to be self sufficient in
year two.
Even with our conservative sales forecast, we will maintain a positive cash flow in all months,
repay the loan in 12 years, and have a positive net worth over $27,000 by year three. We
project that our net profits will increase from $12,000 to over $14,000 over the next three
years.

Page 2
Chart: Highlights
1.1 Objectives
Inspirational Grounds' objectives for the first three years of operation include:
 The creation of a unique, upscale, innovative spiritual environment that will differentiate
Enterslice LLPfrom local coffee shops.
 To make Enterslice LLPthe destination for quality coffee in a welcoming atmosphere for
people who are serious about their coffee and growing in their spirituality.
 The formation of an environment that will bring people with diverse backgrounds and
interests together in a common forum.
 To be an active and vocal member of the community, and to provide continual re-
investment through participation in community activities and financial contributions.
 Consistently providing excellent specialty beverages, bakery items, inspirational books, and
music.
1.2 Mission
As people are becoming more interested in their spiritual side, a neighborhood shop with
excellent freshly roasted coffee and non-denominational Christian books and tapes, is a
welcomed alternative and/or addition to the local church. Enterslice LLPis a specialty beverage
establishment focused on providing freshly roasted coffee beans, coffee/espresso drinks and
information to enhance our customers' spiritual experience. We also understand that coffee
drinkers interested in growing spiritually want a destination, not just a location;we provide
them with the best of both.
Our goal is to be the destination for Christian coffee drinkers seeking a non-secular
environment in the Twin Cities area. People of all ages and backgrounds will come to enjoy the
unique upscale, educational, motivational and innovative environment that Enterslice
LLPprovides.

Page 3
We believe it is important to remain an active member of the community and to impact our
customers' lives in more ways than the selling of specialty drinks.
1.3 Keys to Success
The keys to the success for Enterslice LLPare:
 The creation of a unique, innovative, upscale atmosphere that will differentiate Enterslice
LLPfrom other local coffee shops and future coffee shops.
 Fresh Coffee roasted on-site daily will give customers a unique experience as well as
excellent product.
 Selling beverages and products that are of the highest quality.
 The creation of an environment that won't intimidate the spiritual seeker. Enterslice LLPwill
position itself as an educational resource for individuals wishing to learn about the benefits
of growing spiritually.
 The establishment of Enterslice LLPas a community hub for socialization and entertainment.
 Encourage the two most important values in Christianity: love and service.
2.0 Company Summary
Inspirational Grounds, Minneapolis' South Central area, will offer great specialty beverages and
easy access to exciting spiritual information. Enterslice LLPsells quality products and provides
excellent customer service for coffee lovers and persons looking to enhance their spiritual
experience. We are looking to lease a retail store which we will use to market and merchandise
our products. The company took its name in July 2002, and organized as an S Corporation in
October, 2003.
Our book and music selection and helpful staff will appeal to the audience that is seeking to
grow and learn spiritually in this age of uncertainty. This invigorating aspect will attract younger
and elderly members alike who are gaining interest in their spiritual condition. The central
location will provide easy access from most points of origin throughout the Twin City area for
those who will recognize Enterslice LLPas a destination point, as well as provide local
community residents with convenient access to freshly roasted coffee.
2.1 Company Ownership
Enterslice LLPis incorporated as an S corporation. This will shield the owner Regina Brown from
issues of personal liability and double taxation. The Corporation was formed in October of 2003.
2.2 Startup Summary
Inspirational Grounds' start-up costs will cover coffee, espresso, and specialty drink making
equipment, micro-roasting equipment, training, site renovation and modification, capital for
operating expenses in the first year, and the inventory necessary to provide customers with the
information needed to grow.
A large portion of our start-up requirements will go towards the purchase of specialty drink
equipment from Espresso Services, Inc. Our long-term assets will include:
 One espresso machine
 One micro-roasting system

Page 4
 an Espresso grinder/doser
 water filtration system
Expensed equipment includes:
 A Bulk grinder for drip coffee
 Single airpot brewer
 Smoothie blender
 Minor additional equipment
Additionally, we need funding for initial inventory, both for the coffee shop side of things and
the other specialty merchandise, books, and music. Music items will be purchased from
Provident Music, Diamante Music Group, and New Day Christian Distributors among others.
Books and other inspirational material will be purchased from Bridge-Logos Publishers, KCM,
Bethany House Distributors, and others.
The site Enterslice LLPchooses will require funds for renovation and modification. A single
estimated figure will be allocated for this purpose. The renovation/modification cost estimate
will include the costs associated with preparing the site for opening business.
Current Assets, in the table below, includes furniture and fixtures.
Long-term assets, in addition to our major brewing, grinding, and roasting
equipment, includes a POS System.
Table: Startup
Startup
Requirements
Startup Expenses
Legal $1,500
Stationery etc. $800
Brochures/Mailings $1,000
Marketing Consultant $1,000
Insurance $500
Rent $2,000
Research and Development $1,500
Build Out Expenses $8,000
Initial Marketing $2,000
Training $1,500
Website development $50
Expensed Equipment $4,950
Other $5,000
Total Startup Expenses $29,800
Startup Assets
Cash Required $30,600

Page 5
Other Current Assets $12,000
Long-term Assets $16,000
Total Assets $58,600
Total Requirements $88,400
Chart: Startup
2.3 Company Locations and Facilities
The site, Midtown Commons (Also known as the Sears Project), is located in South Central
Minneapolis. The initial space is approximately 2,000 square feet and has ample space for the
first three years of growth. The complex has ample parking and significant foot traffic from
Allina Healthcare Office Facility. This area was chosen for various reasons, including:
 Proximity to other areas within the Twin Cities; Central location easily accessed.
 Proximity to the Lyn/Lake and Uptown areas.
 High Visibility.
 Proximity to the many local churches in South Central Minneapolis.
 Diverse population within the community.
 Desire for South Central Businesses.
 Scarcity of other coffee houses in the area.
 Proximity to the light rail depot and 12th Precinct of the Minneapolis police.
All of these qualities are consistent with Inspirational Grounds' goal of providing a community
hub for socialization and entertainment.

Page 6
3.0 Products and Services
Beverages and Baked Goods
Enterslice LLPsells quality freshly roasted coffee, specialty beverages, and beverage related
items to the discriminating coffee drinker. The beverages are made by trained staff members
who know the products and make recommendations to customers.
The coffee varietals, teas, and other beverages items are supplied by Espresso Services, Inc
and delivered within 24 hours. The roasting of the green beans will take place on-site for the
freshest product possible. Owner will rely on customers and employees to shorten the
communication and feedback loop in product and service offerings.
Enterslice LLPwill offer custom roasting services to our customers. Customers will be able to
order selected coffee varietals roasted to order for enjoyment in their homes or offices. These
custom roasted coffees will create a unique experience for our customer, and allow them to
further their specialty coffee knowledge.
Books and Music
Containing Christian, uplifting, and life-affirming messages will be sold to complete the
ambiance and community centered feel of the store.
3.1 Product and Service Description
Enterslice LLPsells the entire array of coffee and espresso-based drinks,specialty drinks, and
bakery items, as well as music and books geared toward the spiritual reader.
Specialty Coffees
The primary product of Enterslice LLPis the specialty coffee. Several unique blends will be micro
roasted for daily serving or specially roasted to order at our customers' request which will give
our customers the variety they seek. These coffee blends include: Columbia Supremo,
Tanzanian Peaberry, Jamaican Blue Mountain, Guatemalan Antigua, Costa Rican Tarrazu,
Sumatra Mandheling, and Ethiopian Yaefacheffe. Other blends and decaffeinated coffee will be
offered as well.
Espresso & Coffee Drinks
The Straight Shot - The foundation of every espresso beverage; served in a demitasse, when
consumed alone.
Espresso Macchiato - Espresso served in a demitasse with a small amount of foamed milk on
top
Espresso Con Panna - Variation of the Macchiato substituting whipped cream in place of the
foamed milk.
Caffé Americano - A single or double shot of espresso is combined with hot water from the
espresso machine. This produces a smoother and fresher (as well as hotter) cup of coffee than
conventional brewing.

Page 7
Cappuccino - Espresso mixed with foamed milk upon the pour; can be garnished with shaved
chocolate.
Caffé Latte - Espresso mixed with steamed milk, and topped with foamed milk; can be
garnished with shaved chocolate.
Mocha - Espresso, steamed milk, and chocolate syrup, usually topped with whipped cream and
chocolate shavings.
The Breve - An extra rich Caffe' Latte made with half & half instead of milk.
Café Au Lait - Drip coffee with steamed milk added and topped with foamed milk.
Flavor-Based Drinks
Hot Chocolate and Steamers - These drinks are made like lattes and mochas without the
addition of coffee. Flavored syrups are added to steamed milk and may be topped with whipped
cream at the customer's request.
Italian Sodas and Creamosas - An Italian soda is a combination of flavored syrup and high
quality carbonated mineral or soda water, served over ice. A creamosa is an Italian soda with
heavy cream or half & half added and gently stirred to making a swirled appearance in the
drink.
Granita - An Italian style granular ice drink similar to a slushy but much more dense in
consistency.Granita flavors are usually coffee or fruit based
Other specialty drinks include: Gourmet hot tea, iced Tea, Chai, smoothies, blended coffee and
tea-based drinks, and bottled soft drinks.
Books and Music
Books - The most popular titles will be stocked in limited supply. Such books as Woman, Thou
are Loosed by T.D. Jakes; In Pursuit of Purpose, by Dr. Myles Munroe; Prayers That Heal The
Heart, by Mark & Patti Virkler; A Fresh Word For Today, by Bob Gass; Run Baby Run, by Nicky
Cruz; Morning By Morning, by Charles H. Spurgeon, and others.
Music - Enterslice LLPwill carry the finest in contemporary Christian music. Titles include Kirk
Franklin; Mary Mary; Set Free; Audio Adrenaline; Yolanda Adams, and more.
Bakery Items
Enterslice LLPwill also offer its customers a variety of baked goods, including pastries, cookies,
and cakes. Bread for sandwiches and buns for soup will also be secured. Negotiations with
several local bakeries are now underway. Quality and consistency will be the determining
factors for this decision.
3.2 Competitive Comparison
Enterslice LLPwill be unique in the vicinity. Not only will Enterslice LLPdifferentiate itself from
the strictly-coffee cafes by providing its customers with a theme based on sound spiritual
principles, we will also be the first independently-owned, urban store to roast its own beans on-
site, providing the customer with a unique experience in a welcoming environment.

Page 8
3.3 Sales Literature
Enterslice LLPwill use print advertising and sales programs to get the word out to customers.
Fliers will be distributed throughout the Twin City area to chambers of commerce, tourism
council offices, hotels, neighborhood stores and shops, churches, schools, and other areas one
month before the grand opening.
Newspaper advertisements in Minneapolis and St. Paul, The Shepherd's Guide, and
neighborhood publications will be used to attract customers with grand opening offers, as well
as 1,000 door-to-door flyers offering a free 16 oz. drink.
See attached example flier.
3.4 Fulfillment
Enterslice LLPhas associated itself with the finest coffee supplier in the Twin Cities area,
Espresso Services, Inc. We will bring fine coffees from all over the world to South Central
Minneapolis, where residents, other Midtown tenants and passers-by can enjoy a freshly
roasted quality cup of coffee, an espresso or specialty drink in an inviting and friendly
atmosphere.
3.5 Technology
The technology Enterslice LLPis dependant upon is the micro-roasting equipment it will use to
roast the beans on-site. This equipment is serviced through the supplier;Espresso Services, Inc.
Enterslice LLPwill also use our website to advertise specials and events, and to post the monthly
menu and talent offerings. We will use email to communicate with customers wishing to sign-up
for email specials. Eventually, we would like to institute online ordering for roasted coffee and
specialty merchandise, but that plan is at least two years off.
The Point of Sale (POS) technology Enterslice LLPwill use allows for order taking when the lines
are long, keeps customer discount information, inventory, and revenue/profit information. The
system has a battery back-up in case of power surges and temporary power losses.
The Inspirational Grounds' logo will be Federally Trademarked. Although the beverages will not
be protected in content, beverage names for specialty drinks reflecting the theme of the shop
will be protected under the Federal Trademark laws.
The security system Enterslice LLPuses will protect the contents of the store and reduce
insurance premiums.
3.6 Future Products and Services
As Enterslice LLPgrows, more features will be added to the existing store. A key part of this is
the addition of live entertainment. This entertainment will be in the form of Jazz singers, poetry
readings, Comedy for the King, motivational speakers, and Christian musical Artists.
Food items will be added to the menu of offerings. The soup will be made fresh daily, one kind
per week. The soups are: Chicken Noodle, Minestrone, Clam Chowder, Vegetable Beef,

Page 9
Vegetable, Chicken and Rice, and Wild rice. Sandwiches are made to order and include deli
favorites such as herbed turkey, egg salad, tuna salad, roast beef, corned beef, and turkey. A
variety of condiments will also be available. Enterslice LLPwill obtain deli meats from Costco.
The salad sandwiches will be made fresh on-site.
Enterslice LLPwill establish itself as the destination for non-secular and motivational
entertainment. We also envision adding meeting rooms, hosting receptions, and adding small
devotional rooms for private reflection. The meeting rooms will be perfect for small business
and non-profit organizations with limited office space. Coffee and pastries will be served to
ensure a successful atmosphere for business. Enterslice LLPwill also be available for private
receptions, such as birthday parties, anniversaries, or showers. Customer provided catering will
go a long way to ensure the guests' parties are successful. The devotional rooms will be wired
for individual music selection, equipped with one-way TV cameras, and furnished with a
comfortable chair and table.
These additions complete the vision for Inspirational Grounds, and provide its customers with a
place for socialization, relaxation, and reflection.
4.0 Market Analysis Summary
Enterslice LLPis faced with the exciting challenge of being the first-mover in the Minneapolis/St.
Paul Christian coffee house and roaster market. The consistent popularity of coffee and
specialty drinks, combined with the ever growing and ever profitable Christian bookselling and
music market, is a winning concept and will produce overwhelming results. Our target market
includes coffee drinkers, spiritual seekers, Christians seeking fellowship (and snacks), and local
neighborhood residents.
4.1 Market Segmentation
Census data, religous adherent research, and coffee consumption statistics were used to
determine market share for Inspirational Grounds. Recent census data shows that there are
38,860 persons in the 55407 zip code, and 1,126,944 persons in Hennepin county. Coffee
Research Institute data shows that 54% of the population drinks coffee daily, and 25% drink
coffee occasionally. The Glenmary Research Institute shows that 64.9% of the Minnesota
population are self-professed religous adherents. Minnesota ranks 5th in the nation for
percentage of population religiously affiliated. National statistics show that most persons do not
travel more than 20 minutes to eat or listen to entertainment; we are using a conservative
10%. The following is a breakdown of target customers:
55407 Market
AGE % of Population
15-19 7.1%
20-24 8.4%
25-44 35.8%
45-64 17.3%
TOTAL 68.6%
INCOME % of Population
15,000-24,999 16.5%
25,000-49,999 29.0%

Page 10
50,000-99,999 28.6%
TOTAL 74.1%
55407 market = (38,860 x 68.6% 15-64 year olds, x 74.1% in targeted income bracket, x 54%
coffee drinkers) + (38,860 x 68.6% x 74.1% x 25% occasional coffee drinkers)
The formula takes the total 55407 population and then multiplies that number by the
percentages in order of importance, that figure is multiplied by the percent of persons who
drink coffee daily. The next formula is calculated the same except it uses the percentage of
person who drink coffee occasionally.
Hennepin County Market
AGE % of Population
15-19 6.5%
20-24 7.3%
25-44 33.1%
45-64 22.2%
TOTAL 69.1%
INCOME % of Population
15,000-24,999 10.8%
25,000-49,999 23.9%
50,000-99,999 37.6%
TOTAL 72.3%
Hennepin County Market = ((1,126,944 - 38,860) x 69.1% x 72.3% x 64.9% x 54% x 10%) +
((1,126,944 - 38,860) x 69.1% x 72.3% x 64.9% x 25% x 10%))
The formula takes the total county population minus the 55407 population and then multiplies
that number by the percentages in order of importance, that figure is multiplied by the percent
of persons who drink coffee daily multiplied by the percentage of the population likely to travel
to Inspirational Grounds. The next formula is calculated the same except it uses the percentage
of person who drink coffee occasionally.
Table: Market Analysis
Market Analysis
2016 2017 2018 2019 2020
Potential Customers Growth CAGR
Neighborhood Resident 1% 13,165 13,297 13,430 13,564 13,700 1.00%
Religious Adherent -
Henn County
1% 19,731 19,928 20,127 20,328 20,531 1.00%
Other 0% 10,000 10,000 10,000 10,000 10,000 0.00%
Total 0.77% 42,896 43,225 43,557 43,892 44,231 0.77%

Page 11
Chart: Market Analysis (Pie)
4.2 Target Market Segment Strategy
The customers will be between 15-64 years old. The income level is between $15,000 and
$99,000 annually. They live in the 55407 zip code, the proposed area for Inspirational Grounds.
The Hennepin county customer is between 15-64 with income levels ranging from $15-99K
annually. They live in the Hennepin county area and are self-professed religious adherents. A
limited number, estimated at about 10,000 will come from other areas out of curiosity or to see
a particular entertainer or poetry reading. A majority of the customers will be persons who
enjoy a relaxing atmosphere, reading, reflection, and excellent coffee.
4.2.1 Market Needs
Current trends and historical sales data both indicate that the high demand for coffee will
remain constant over the next five years. The Christian book and music business is expected to
continue to grow as contemporary Christian artists rival secular music. In addition to the
increased sales in these areas, Generation X'ers are more religious than their parents,
according the GlenMary Research Institute.
The needs of this market are decidedly soft in nature. The soft needs of this market include, but
are not limited to, a general feeling of acceptance, a place of belonging, and non-judgmental
atmosphere.
4.2.2 Market Trends
The specialty beverage market will continue to grow as younger people are opting for non-
alcoholic beverages and wholesome entertainment. Religious book retail sales grew 2.3% in
2002. In 2000 they represented 5.25% of all book sales resulting in $1.25 billion in revenue. In
2001, these sales grew 4.7% to $1.3 billion and market share grew to 5.5%. With the
increasing interest in spirituality, sales and market share will increase steadily.

Page 12
4.2.3 Market Growth
The Hennepin County area is expected to grow .8% annually. The 55407 zip code area is
expected to grow 1% annually. These estimates are based on most recent census data and
projected growth rate for the the Minneapolis area.
4.3 Service Business Analysis
The retail coffee industry in the Twin Cities experienced rapid growth at the beginning of the
90's and is now moving into the mature stage of its life cycle. Many factors contribute to the
demand for excellent coffee and specialty beverages in Minneapolis. The climate in Minneapolis
is extremely conducive to coffee consumption; coffee consumption increases in colder months.
Current trends in the Midwest reflect the popularity of fresh, quality coffee and specialty drinks,
Minneapolis/St. Paul boasts sophisticated coffee lovers.
The popularity of Christian entertainment is growing immensely as people are searching for
meaning during these uncertain times. Those who are familiar with Christian music and book
trends and sales are looking for authors and performers to keep up with the seemingly
insatiable demand.
Due to competition, cafe owners must look for ways to differentiate their place of business from
others in order to achieve and maintain a competitive advantage. The founder of Enterslice
LLPrealizes the need for differentiation and strongly believes that combining freshly roasted
coffee, a cafe, spiritual books and music, and entertainment are the keys to success. The fact
that no other such cafes are established in the Twin Cities presents Enterslice LLPwith a chance
to enter the window of opportunity and take hold of a very profitable niche market.
4.3.1 Business Participants
There are countless coffee wholesalers who could conceivably do business with Inspirational
Grounds. These wholesalers distribute coffee and espresso beans to restaurants and retailers.
Competition in this industry creates an even amount of bargaining power between buyers and
suppliers resulting in competitive pricing.
4.3.2 Distributing a Service
4.3.3 Competition and Buying Patterns
Enterslice LLPwill face competition on two fronts: coffee retailers and book & music stores. The
good news is that Enterslice LLPdoes not currently face any direct competition from other cafes
in the market. There are no independently operated Christian cafes in the Twin Cities. Christian
based coffee houses are either located within, or owned by a church.
Heavy competition in the Twin Cities area creates an industry where cafes face the same costs.
There is a direct relationship between price and quality of coffee. Some fresh roasted coffee
retails from $12/lb while other more exotic beans may sell as high as $40/lb. Wholesalers sell
green (unroasted) beans to retailers at an average of 50-75% discount. For example; a pound
of Columbian Supremo beans wholesale for $3.06 and retails for $12.85. As in most industries,
price decreases as volume increases.

Page 13
4.3.4 Main Competitors
The main competitor in the retail coffee segment is Dunn Bros, as they also sell freshly roasted
beans. In fact, the largest part of Dunn Bros' revenue is generated from the sale of the roasted
beans to the consumer. The difference is Dunn Bros. does not roast their beans on-site, nor do
they have the ability to custom roast for their customers.
Dunn Bros. - Uptown
Local chain cafe that boasts freshly roasted beans. The bulk of these sales are in the form of
roasted beans sold to the consumer. The cafe caters to customers who want fresh beans and
brewed coffee. The atmosphere is homey, the prices are competitive, no entertainment is
provided. They are known for good quality coffee. The stores are clean and well managed.
Vera's - Lynn/Lake
A nice specialty coffee cafe with an atmosphere that caters to the "Green Peace" crowd. They
have competitive prices, good quality coffee, and an excellent location. The cafe has three
rooms; one with tables and chairs, one with couches and over-stuffed chairs, the third "room"
is an outside patio. Vera's doesn't offer entertainment, on-site roasted coffee, or books and
music.
Boathouse Coffee - 42nd & Cedar Ave South
Serves specialty coffee drinks, sandwiches, soft drinks, and ice cream. The street is busy, there
is not a lot of foot traffic, and there is no parking lot so the location doesn't allow for easy
access. The shop is clean and prices are competitive. The Boathouse Coffee Cafe has several
tables, and a couch. It can accommodate about 25 patrons.
5.0 Web Plan Summary
Enterslice LLPwill use our website to advertise specials and events, and to post the monthly
menu. We will maintain a confidential email list to communicate with customers wishing to
sign-up for email specials. Our website is being developed by the owners, and will be hosted
with a professional hosting service which allows us to post our own changes as often as we
wish.
Although we would eventually like to institute an on-line ordering system, we realize this
development may have to wait until the business is firmly established and has sufficient cash
for designing and maintaining these dynamic features. Online ordering will not only increase
sales geographically, but allow Enterslice LLPto utilize the full spectrum of its POS system's
capabilities.
5.1 Website Marketing Strategy
5.2 Development Requirements

Page 14
6.0 Strategy and Implementation Summary
Enterslice LLPuses a strategy of total market service. Our promise is in our uniqueness in the
market and the products we sell, the people we attract, the atmosphere we create.
We will create an atmosphere that lures the "spiritual seeker." The "coffee lover" and others will
come because of the quality and the atmosphere. Ultimately, we aren't selling either products
or coffee. We are selling the experience. We want to be part of the community, part of their
lives, part of the search for meaning.
Strategic Assumptions:
1. Every person is a potential customer and all potential markets experience growth.
2. Marketing to the soft needs of the customer will produce sales of products.
6.1 SWOT Analysis
6.1.1 Strengths
6.1.2 Weaknesses
6.1.3 Opportunities
6.1.4 Threats
6.2 Strategy Pyramid
6.3 Value Proposition
Enterslice LLPwill position itself as an upscale coffee house, spiritual resource and
entertainment provider. It will serve on-site roasted, high quality coffee and espresso, as well
as specialty beverages at a competitive price. Due to the number of coffee shops in the
Minneapolis area, it is important that Enterslice LLPset competitive prices for the freshly roasted
coffee. Customers will see coffee as it roasts throughout the day, and they will be able to order
coffee beans roasted to their specifications while they enjoy a beverage.

Page 15
6.4 Competitive Edge
The competitive advantage of Enterslice LLPis threefold:
Our uniqueness in the market - Enterslice LLPwill be the only spiritually centered coffee shop
in the Twin Cities metropolitan area which roasts its own beans daily, sells quality coffee and
espresso based beverages, and specialty drinks, along with inspirational music and books.
Enterslice LLPis upscale, not stuffy. Our community-based focus will be hard to duplicate, even
if products and service are similar.
Excellent Customer Service - Because competition in the specialty beverage market is high,
Enterslice LLPwill work to ensure that each customer is treated in the same respectful manner
as the next. Technology will play a key role in ensuring that our customers get that special one-
on-one feeling they might experience at a high-end retail store. Our Point of Sale system will
not just ring orders, but keep key data on customers' previous purchases in the area of freshly
roasted coffee. In this manner, sales staff will know about the customer's buying habits and
tastes, and will be able to make suggestions for purchases that will likely result in increased
sales and make the customer feel special.
Excellent service in a community focused environment will be a unique undertaking. We will
ensure that Enterslice LLPis a fun place for people to gather. Enterslice LLPwill employ the
principles that make Seattle's World Famous Pike Place Fish Market an invigorating experience
for customers. These principles are: Play, Make Their Day, Be there, and Choose Your Attitude.
We will ensure that each employee understands the fundamentals at the base of any successful
service organization.
Quality - We are committed to serving only the best quality beans and beverages. Moreover,
the training the staff receives will ensure that the art of espresso making is understood. There
is more to a good espresso than the beans and the machine. At Inspirational Grounds, we
understand it, and will ensure our customers do as well.
It's the combination of these three elements that make up the competitive advantage of
Inspirational Grounds.
6.5 Marketing Strategy
Inspirational Grounds' marketing strategy focuses on the key elements of the target markets'
soft needs, and the focus of the venture.
Soft Needs:
 Spiritual Growth
 A place of belonging
 Learning & communication
Venture Focus:
 On-Site Roasted Coffee
 Community Involvement

Page 16
6.5.1 Positioning Statement
For the Christian who needs a place to seek, have fun, relax, and enjoy quality beverages,
Enterslice LLPis a place to feel welcome, special, informed, and energized. Enterslice LLPmeets
the needs of this market. Unlike the other coffee shops in the metro area, Enterslice LLPhas
character and a purpose.
For the neighborhood, Enterslice LLPbrings a positive message with a community centered
focus. This is a place where all are welcomed and embraced with a warm greeting and hot
coffee. The look and feel of the shop will ensure that anyone who walks through the door feels
right at home. We want our customers to learn about coffee, and experience quality first hand.
6.5.2 Pricing Strategy
Pricing in this industry is very competitive. The price of freshly brewed coffee and specialty
beverages doesn't vary by more than a few cents between the corner coffee shop and the large
chains.
The price of roasted coffee beans can vary. Larger chains, having the benefit of volume, can
charge slightly lower prices per pound. Enterslice LLPwill charge a slightly higher price as our
coffees are freshly roasted on-site daily. Enterslice LLPwill roast its coffee to maximize the
flavor of the specific bean. We will also roast coffee to the customer's specifications. This
strategy of bringing the customer in to the whole coffee experience, gives the customer an
additional service, for which a slightly higher price will not be deemed excessive.
6.5.3 Promotion Strategy
Enterslice LLPwill use several ways to reach new customers. We will leverage schools, churches,
community organizations, print ad, internet advertising and word of mouth.
1. Advertising--We'll be developing our core positioning message: "On-Site Roasted Coffee,
Made to Order." to differentiate our service from the competition.
2. Postcards-- Enterslice LLPwill employ targeted mailings to our 55407 customer base. These
postcards will announce Grand Opening Specials.
3. Internet Advertising--As customers come in, they will be asked if they wish to sign up on
our internet mailing list. Special promotions will be available only through Internet "coupons."
4. Media--Enterslice LLPwill work with local media on several different "story of interest"
venues. The Homework Happy Hour is one example that would gain media attention at no cost
to Inspirational Grounds.
6.5.4 Distribution Strategy

Page 17
6.5.5 Marketing Programs
The programs Enterslice LLPwill initiate are depicted on the following graphs. These programs
support the soft needs and product offerings listed in the Marketing Strategy section, and have
been transliterated into "Vision Focus" and "Customer Focus" programs.
Vison Focus
1. Community Involvment
o Community Reinvestment
o MCDA Hiring Program
2. Spiritual Information
o Product Offerings
o Speakers and Entertainment
3. Welcoming Environment
o Vision Communication
Customer Focus
1. Roasting Expertise
o Micro Roasting Program
2. Custom Offerings
o POS System
3. Excellent Training
o EST Training Programs
o Encourage F.I.S.H. Philosophy
6.6 Sales Strategy
The trained baristas at Enterslice LLPwill handle the sales transactions. To speed up the
customer service, at least two employees will be servicing clients--while one employee prepares
the customer's order, the other one will take care of the sales transaction. All sales data logged
on the computerized point-of-sale terminal will later be analyzed for marketing, Cost of Sale,
and volume purposes.
In order to build up its client base, Enterslice LLPwill use banners, fliers, postcards and other
advertising, utilize customer referrals and cross-promotions with other businesses in the
community. At the same time, we will use customer retention programs like drink punch-cards
to make sure the customers are coming back and spending more at the coffee bar.
6.6.1 Sales Forecast
Enterslice LLPis taking a modest approach to forecasting. Enterslice LLPis forecasting an 8%
average growth which is in line with industry estimates. With our unique product and service
offerings, along with our aggressive marketing strategies, the sales forecasts are actually on
the conservative side.
Table: Sales Forecast

Page 18
Sales Forecast
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Sales
Fresh Brewed Coffee $41,079 $44,365 $47,914 $51,747 $55,887
Espresso Based Beverages $53,507 $57,788 $62,411 $67,404 $72,796
Specialty Drinks $34,725 $37,503 $40,503 $43,743 $47,243
Pastries/Desserts $14,458 $15,615 $16,864 $18,213 $19,670
Music/CDs $11,604 $12,765 $14,041 $15,446 $16,990
Books $11,604 $12,765 $14,041 $15,446 $16,990
Fresh Roasted Coffee $19,341 $21,275 $23,402 $25,743 $28,317
Misc Candies/Products $17,121 $17,977 $18,876 $19,820 $20,811
Total Sales $203,440 $220,053 $238,054 $257,561 $278,704
Direct Cost of Sales FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Fresh Brewed Coffee $1,370 $1,397 $1,425 $1,454 $1,483
Espresso Based Beverages $3,855 $3,933 $4,011 $4,091 $4,173
Specialty Drinks $7,216 $7,289 $7,361 $7,435 $7,509
Fresh Roasted Coffee $5,809 $5,867 $5,925 $5,985 $6,044
Pastries/Desserts $7,229 $7,807 $8,432 $0 $0
Candies, etc. $8,561 $8,989 $9,438 $0 $0
Books/Music $11,617 $11,733 $11,851 $11,969 $12,089
Subtotal Direct Cost of Sales $45,657 $47,014 $48,444 $30,934 $31,299
Chart: Sales Monthly

Page 19
Chart: Sales by Year
6.6.2 Sales Programs
Internet Coupons - As customers come into the store, they will asked if they'd like to put their
name on the internet mailing list. Once added, these customers will receive special "internet
only" solicitations for discounts and specials, as well as a calendar of events.
Community Based Programs - Enterslice LLPwill partner with community organizations, schools,
and churches to provide unique offerings which strengthen the community and provide sales for
the store. The Homework Happy Hour is a prime example of leveraging community needs with
sound sales techniques and business practices.
Direct Mailing - Enterslice LLPwill periodically mail special product offerings to people in the
55407 zip code. This promotion will also be used to announce the Grand Opening of
Inspirational Grounds.
6.7 Strategic Alliances
Enterslice LLPhas aligned itself with key players in the industry: Espresso Services, Inc. located
in Minneapolis, Minnesota, and the specialty Coffee Association of America. Both of these
organizations are nationally and internationally known for their knowledge of, and expertise in,
the specialty beverage industry.
Enterslice LLPhas also formed key alliances with non-competing experts in Restaurant and
Retail markets.
Finally, Enterslice LLPhas established itself within the community through developing
relationships with five of the surrounding Neighborhood Associations, key developers and
planners of the Midtown Exchange project and various City Officials and city Counsel Members.
These alliances will serve to be conducive to the company's success and marketability.

Page 20
6.8 Milestones
The accompanying table lists important program milestones up to the date of opening. Further
milestones, with dates and budgets for each, are currently being developed to line up our live-
performance events and to meet our marketing and sales goals. These post-opening milestones
are dependent on receiving adequate funds for opening.
Table: Milestones
Milestones
Milestone Start Date End Date Budget Manager Department
Accounting Plan 30-09-2003 15-10-2003 $1,500 ABC Department
Personnel Plan 01-10-2003 01-11-2003 $500 ABC Department
Technology Systems 01-10-2003 01-11-2003 $1,500 ABC Department
Communication Systems 01-10-2003 01-11-2003 $1,500 ABC Department
Site Selection 01-06-2003 01-02-2004 $1,500 Regina Brown Owner
Business Plan 01-07-2002 04-02-2004 $500 Regina Brown Owner
Shop Design 15-09-2003 01-10-2004 $2,500 Regina Brown Owner
Secure Start-Up Funding 01-05-2003 31-12-2004 $150 Albert Brown Manager
Grand Opening Materials 01-01-2005 15-01-2005 $500 ABC Department
Opening Inventory 05-01-2005 01-03-2005 $2,500 ABC Department
Totals $12,650
Chart: Milestones

Page 21
7.0 Management Summary
Enterslice LLPis owned by Regina Brown, and operated by Albert Brown. The company, being
small, requires a simple organization structure. Implementation requires the owner, Regina
Brown, to make decisions on the mission and vision, while Albert Brown makes operational
decisions. Major decisions affecting the execution of the plan are made jointly by the owner and
operations manager.
7.1 Organizational Structure
Org. Chart: Organizational Chart
7.2 Management Team
Regina Brown, owner and operator, has extensive start-up experience within the corporate
sector and has successfully managed key areas for Fortune 500 companies. She has an
entrepreneurial spirit which has made her corporate ventures successful. Her people savvy, and
ability to turn vision into strategy, and strategy into tactics, will be key elements of success for
Inspirational Grounds. She has successfully managed million dollar budgets. Currently, Regina
is starting up a new venture within Wells Fargo Home Mortgage. This is her third start-up for
that organization.
Albert Brown has start-up experience as well as restaurant management experience. Most
recently Albert owned and operated RB Mortgage Company. Albert received a bachelor's degree
from Cheney University in Cheney, PA, a Juris Doctorate from Lasalle University, and is
currently pursuing a Masters in Divinity at Bethel Seminary in St. Paul, MN. Albert has held
several management positions within the restaurant industry.
7.3 Management Team Gaps

Page 22
7.4 Personnel Plan
The personnel plan is included in the following table. It shows the owner's and operations
manager's salaries, followed by 5 part-time salaries for espresso servers. Part time employees
will collectively work 19.5 hours daily with an hourly salary of $8.00. Enterslice LLPassumes a
5% annual increase in barista salaries. These employees will share any tips received while they
are on duty. The owner will receive no payments or dividends until at least the fourth year of
the business.
Table: Personnel
Personnel Plan
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Albert Brown - Operations Manager $18,000 $18,000 $25,000 $0 $0
Owner $0 $0 $0 $0 $0
Baristas $56,160 $58,968 $61,916 $0 $0
Total People 6 6 7 0 0
Total Payroll $74,160 $76,968 $86,916 $0 $0
8.0 Financial Plan
Enterslice LLPis basing projected sales on the market research, industry analysis and proximity
of other coffee houses in the area. We are looking to obtain a modest .1% of the market share.
The cost of goods sold is based on the price list of Espresso Services, Inc., and is consistent
with costs in the coffee and espresso industry. The cost of the bakery items and candies is 50%
of the selling price.
Enterslice LLPwill use its POS System to keep cash flow and sales goals on track, and to
indicate which marketing efforts are worth the investment. We expect sales to easily exceed the
break-even point from the first month onward. The following sections outline our projected
Profit and loss, Cash Flow, and Balance Sheet.
8.1 Startup Funding
Table: Startup Funding
Startup Funding
Startup Expenses to Fund $29,800
Startup Assets to Fund $58,600
Total Funding Required $88,400

Page 23
Assets
Non-cash Assets from Startup $28,000
Cash Requirements from Startup $30,600
Additional Cash Raised $6,600
Cash Balance on Starting Date $37,200
Total Assets $65,200
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $80,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $80,000
Capital
Planned Investment
Owner Investment $15,000
Investor 2 $0
Other $0
Additional Investment Requirement $0
Total Planned Investment $15,000
Loss at Startup (Startup Expenses) ($29,800)
Total Capital ($14,800)
Total Capital and Liabilities $65,200
Total Funding $95,000
8.2 Important Assumptions
We do not sell anything on credit. The personnel burden is very low because part-time workers
receive no benefits. The long-term interest rate is extraordinarily low because of the MCDA
business program which loans money to start-up ventures at a 2% annual interest rate.
Enterslice LLPwill obtain employees through MCDA's community reinvestment programs, which
further establishes our commitment to the community, and raises community awareness of our

Page 24
presence and purpose. We will also look to local seminaries to involve their students in a
internship capacity.
8.3 Key Financial Indicators
Chart: Benchmarks

Page 25
8.4 Break-even Analysis
For our break-even analysis, we assume fixed costs of approximately $11,650 per month,
which includes our full payroll, rent, and utilities, and an estimation of other running costs.
The chart shows that we need to sell about $15,000 per month to break-even, according to
these assumptions. Our conservative projections will exceed the break-even point even in the
first month of business.
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even $15,017
Assumptions:
Average Percent Variable Cost 22%
Estimated Monthly Fixed Cost $11,646
Chart: Break-even Analysis

Page 26
8.5 Projected Profit and Loss
Projected profit and loss are depicted in the table below. Payroll expenses reflect the annual
salaries of operations manager and 5 part-time baristas. Rental Expense is based on leasing
2,000 square feet at $12.50 per square foot.
We project sales and marketing expenses at $12,000 for the first year. Enterslice LLPwill
depend on curiosity, established community involvement and media human interest stories to
spread the word, in addition to the tradition sales and marketing tactics.
Table: Profit and Loss
Pro Forma Profit and Loss
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Sales $203,440 $220,053 $238,054 $257,561 $278,704
Direct Cost of Sales $45,657 $47,014 $48,444 $30,934 $31,299
Other $0 $0 $0 $0 $0
Total Cost of Sales $45,657 $47,014 $48,444 $30,934 $31,299
Gross Margin $157,783 $173,038 $189,610 $226,627 $247,406
Gross Margin % 77.56% 78.63% 79.65% 87.99% 88.77%
Expenses
Payroll $74,160 $76,968 $86,916 $0 $0
Marketing/Promotion $12,000 $15,000 $18,000 $0 $0
Depreciation $2,004 $2,000 $2,000 $0 $0
Leased Equipment $3,000 $3,000 $3,000 $0 $0
Utilities $4,000 $4,700 $5,800 $0 $0
Insurance $1,800 $1,900 $2,000 $0 $0
Rent $28,380 $31,691 $33,100 $0 $0
Website Hosting and Maintenance $300 $325 $350 $0 $0
Payroll Taxes $11,113 $11,545 $13,037 $0 $0
Other $3,000 $4,000 $4,500 $0 $0
Total Operating Expenses $139,757 $151,129 $168,703 $0 $0
Profit Before Interest and Taxes $18,026 $21,909 $20,906 $226,627 $247,406
EBITDA $20,030 $23,909 $22,906 $226,627 $247,406
Interest Expense $1,528 $1,400 $1,267 $1,200 $1,200
Taxes Incurred $4,124 $5,127 $4,910 $56,357 $61,551
Net Profit $12,373 $15,382 $14,730 $169,070 $184,654
Net Profit/Sales 6.08% 6.99% 6.19% 65.64% 66.25%

Page 27
Chart: Profit Monthly
Chart: Profit Yearly

Page 28
Chart: Gross Margin Monthly
Chart: Gross Margin Yearly

Page 29
8.6 Projected Cash Flow
We will be a medium risk concern with steady cash flows. Sales are in cash, giving Enterslice
LLPan excellent cash structure. Solid product offerings and intelligent marketing will secure a
cash balance of close to $48,000 by December 2005.
Table: Cash Flow
Pro Forma Cash Flow
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Cash Received
Cash from Operations
Cash Sales $203,440 $220,053 $238,054 $257,561 $278,704
Subtotal Cash from Operations $203,440 $220,053 $238,054 $257,561 $278,704
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0
New Other Liabilities (interest-
free)
$0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0
Subtotal Cash Received $203,440 $220,053 $238,054 $257,561 $278,704
Expenditures FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Expenditures from Operations
Cash Spending $74,160 $76,968 $86,916 $0 $0
Bill Payments $105,220 $125,054 $133,693 $92,265 $93,593
Subtotal Spent on Operations $179,380 $202,022 $220,609 $92,265 $93,593
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0
Principal Repayment of Current
Borrowing
$0 $0 $0 $0 $0
Other Liabilities Principal
Repayment
$0 $0 $0 $0 $0
Long-term Liabilities Principal
Repayment
$6,660 $6,660 $6,660 $0 $0
Purchase Other Current Assets $0 $4,000 $4,000 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0

Page 30
Subtotal Cash Spent $186,040 $212,682 $231,269 $92,265 $93,593
Net Cash Flow $17,400 $7,371 $6,785 $165,296 $185,111
Cash Balance $54,600 $61,971 $68,756 $234,052 $419,163
Chart: Cash

Page 31
8.7 Projected Balance Sheet
The following table shows our projected assets and liabilities over the next three years. We
anticipate a steadily increasing net worth, as we pay off our loan and sales show modest
increases. The Balance Sheet also reflects new current asset purchases in years 2 and 3.
Table: Balance Sheet
Pro Forma Balance Sheet
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Assets
Current Assets
Cash $54,600 $61,971 $68,756 $234,052 $419,163
Other Current Assets $12,000 $16,000 $20,000 $20,000 $20,000
Total Current Assets $66,600 $77,971 $88,756 $254,052 $439,163
Long-term Assets
Long-term Assets $16,000 $16,000 $16,000 $16,000 $16,000
Accumulated Depreciation $2,004 $4,004 $6,004 $6,004 $6,004
Total Long-term Assets $13,996 $11,996 $9,996 $9,996 $9,996
Total Assets $80,596 $89,967 $98,752 $264,048 $449,159
Liabilities and Capital FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Current Liabilities
Accounts Payable $9,683 $10,332 $11,047 $7,273 $7,730
Current Borrowing $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0
Subtotal Current Liabilities $9,683 $10,332 $11,047 $7,273 $7,730
Long-term Liabilities $73,340 $66,680 $60,020 $60,020 $60,020
Total Liabilities $83,023 $77,012 $71,067 $67,293 $67,750
Paid-in Capital $15,000 $15,000 $15,000 $15,000 $15,000
Retained Earnings ($29,800) ($17,427) ($2,045) $12,685 $181,755
Earnings $12,373 $15,382 $14,730 $169,070 $184,654
Total Capital ($2,427) $12,955 $27,685 $196,755 $381,409
Total Liabilities and Capital $80,596 $89,967 $98,752 $264,048 $449,159
Net Worth ($2,427) $12,955 $27,685 $196,755 $381,409

Page 32
8.8 Business Ratios
The following table outlines some of the more important ratios from the Coffee Shop industry.
The final column, Industry Profile, details specific ratios based on the industry as it is classified
by the Standard Industry Classification (SIC) code, 5812.
Our business will be a little different from the standard coffee shop, in that we will also sell
books and music. One of the major differences between us and the rest of the industry is our
asset structure - most of our assets are short-term, rather than long-term, in part because of
our extra inventory, but also because we will lease, rather than own, our space.
Table: Ratios
Ratio Analysis
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Industry
Profile
Sales Growth n.a. 8.17% 8.18% 8.19% 8.21% 5.24%
Percent of Total Assets
Other Current Assets 14.89% 17.78% 20.25% 7.57% 4.45% 32.59%
Total Current Assets 82.63% 86.67% 89.88% 96.21% 97.77% 41.88%
Long-term Assets 17.37% 13.33% 10.12% 3.79% 2.23% 58.12%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Current Liabilities 12.01% 11.48% 11.19% 2.75% 1.72% 21.75%
Long-term Liabilities 91.00% 74.12% 60.78% 22.73% 13.36% 29.17%
Total Liabilities 103.01% 85.60% 71.97% 25.49% 15.08% 50.92%
Net Worth -3.01% 14.40% 28.03% 74.51% 84.92% 49.08%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Gross Margin 77.56% 78.63% 79.65% 87.99% 88.77% 55.74%
Selling, General &
Administrative Expenses
71.48% 71.64% 73.46% 22.35% 22.52% 37.46%
Advertising Expenses 0.99% 0.91% 0.84% #REF! #REF! 2.06%
Profit Before Interest and Taxes 8.86% 9.96% 8.78% 87.99% 88.77% 1.50%
Main Ratios
Current 6.88 7.55 8.03 34.93 56.81 0.81
Quick 6.88 7.55 8.03 34.93 56.81 0.51
Total Debt to Total Assets 103.01% 85.60% 71.97% 25.49% 15.08% 53.68%
Pre-tax Return on Net Worth -679.90% 158.31% 70.94% 114.57% 64.55% 2.39%
Pre-tax Return on Assets 20.47% 22.80% 19.89% 85.37% 54.81% 5.16%
Additional Ratios FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Net Profit Margin 6.08% 6.99% 6.19% 65.64% 66.25% n.a

Page 33
Return on Equity 0.00% 118.73% 53.20% 85.93% 48.41% n.a
Activity Ratios
Accounts Payable Turnover 11.87 12.17 12.17 12.17 12.17 n.a
Payment Days 27 29 29 38 29 n.a
Total Asset Turnover 2.52 2.45 2.41 0.98 0.62 n.a
Debt Ratios
Debt to Net Worth 0.00 5.94 2.57 0.34 0.18 n.a
Current Liab. to Liab. 0.12 0.13 0.16 0.11 0.11 n.a
Liquidity Ratios
Net Working Capital $56,917 $67,639 $77,709 $246,779 $431,433 n.a
Interest Coverage 11.80 15.65 16.50 188.79 206.10 n.a
Additional Ratios
Assets to Sales 0.40 0.41 0.41 1.03 1.61 n.a
Current Debt/Total Assets 12% 11% 11% 3% 2% n.a
Acid Test 6.88 7.55 8.03 34.93 56.81 n.a
Sales/Net Worth 0.00 16.99 8.60 1.31 0.73 n.a
Dividend Payout 0.00 0.00 0.00 0.00 0.00 n.a
8.9 Long-term Plan
8.10 The Investment Offering
Table: Investment Offering
Investment Offering Seed Round 1 Round 2 Exit
Proposed Year: 1 2 3 7
Valuation, Investment, Shares
Investment Amount $0 $0 $0
Equity Share Offering Percentage 0.00% 0.00% 0.00%
Valuation $0 $0 $0 $0
Investor Exit Payout $0 $0 $0
Investor Years Until Exit 6 5 4

Page 34
Investor IRR 0.00% 0.00% 0.00%
Share Ownership Year 1 Year 2 Year 3 Year 7
Founders' Shares 0 0 0 0
Stock Split Multiple 0 0 0
Stock Options Issued 0 0 0 0
Investor Shares Issued 0 0 0
Price per share $0.00 $0.00 $0.00 $0.00
Options Holders' Shares 0 0 0 0
Year 1 Investors' Shares 0 0 0 0
Year 2 Investors' Shares 0 0 0
Year 3 Investors' Shares 0 0
Total Shares Outstanding 0 0 0 0
Equity Ownership Percentage Year 1 Year 2 Year 3 Year 7
Founders' Equity 0.00% 0.00% 0.00% 0.00%
Option Holders' Equity 0.00% 0.00% 0.00% 0.00%
Year 1 Investors' Equity 0.00% 0.00% 0.00% 0.00%
Year 2 Investors' Equity 0.00% 0.00% 0.00%
Year 3 Investors' Equity 0.00% 0.00%
Total Equity 0.00% 0.00% 0.00% 0.00%
Investors' Equity 0.00% 0.00% 0.00% 0.00%
Founders' & Employees' Equity 0.00% 0.00% 0.00% 0.00%
8.11 Valuation
Table: Investment Analysis
Investment Analysis
Start FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Initial Investment
Investment $15,000 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0
Ending Valuation $0 $0 $0 $0 $0 $647,500
Combination as Income
Stream
($15,000) $0 $0 $0 $0 $647,500

Page 35
Percent Equity Acquired 35%
Net Present Value (NPV) $351,861
Internal Rate of Return (IRR) 112%
Assumptions
Discount Rate 10.00%
Valuation Earnings Multiple 10 10 10 10 10
Valuation Sales Multiple 2 2 2 2 2
Investment (calculated) $15,000 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0
Calculated Earnings-based
Valuation
$120,000 $150,000 $150,000 $1,690,000 $1,850,000
Calculated Sales-based
Valuation
$410,000 $440,000 $480,000 $520,000 $560,000
Calculated Average Valuation $265,000 $295,000 $315,000 $1,105,000 $1,205,000
8.12 Use of Funds
Table: Use of Funds
Use of Funds
Use Amount
Name $0
Name $0
Name $0
Name $0
Total $0
8.13 Payback
Table: Payback
Payback

Page 36
Projected Payback Calculation
Investment FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Investment $500,000
Cash Returns by Year $100,000 $100,000 $100,000 $100,000 $100,000
Combination as Income Stream ($500,000) $100,000 $100,000 $100,000 $100,000 $100,000
Cumulative Net Cash Flow to
Investors
($500,000) ($400,000) ($300,000) ($200,000) ($100,000) $0
Payback Period 5 years
Chart: Payback Period

Appendix
Page 1
Table: Sales Forecast
Sales Forecast
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
Sales
Fresh Brewed Coffee 0% $3,239 $3,271 $3,304 $3,337 $3,371 $3,404 $3,438 $3,473 $3,507 $3,542 $3,578 $3,614
Espresso Based Beverages 0% $4,219 $4,261 $4,304 $4,347 $4,390 $4,434 $4,479 $4,523 $4,569 $4,614 $4,660 $4,707
Specialty Drinks 0% $2,738 $2,765 $2,793 $2,821 $2,849 $2,878 $2,906 $2,936 $2,965 $2,995 $3,024 $3,055
Pastries/Desserts 0% $1,140 $1,151 $1,163 $1,175 $1,186 $1,198 $1,210 $1,222 $1,234 $1,247 $1,259 $1,272
Music/CDs 0% $915 $924 $933 $943 $952 $962 $971 $981 $991 $1,001 $1,011 $1,021
Books 0% $915 $924 $933 $943 $952 $962 $971 $981 $991 $1,001 $1,011 $1,021
Fresh Roasted Coffee 0% $1,525 $1,540 $1,556 $1,571 $1,587 $1,603 $1,619 $1,635 $1,651 $1,668 $1,685 $1,701
Misc Candies/Products 0% $1,350 $1,364 $1,377 $1,391 $1,405 $1,419 $1,433 $1,447 $1,462 $1,476 $1,491 $1,506
Total Sales $16,041 $16,201 $16,363 $16,527 $16,692 $16,859 $17,028 $17,198 $17,370 $17,544 $17,719 $17,896
Direct Cost of Sales Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
Fresh Brewed Coffee $108 $109 $110 $111 $112 $114 $115 $116 $117 $118 $119 $120
Espresso Based Beverages $304 $307 $310 $313 $316 $320 $323 $326 $329 $332 $336 $339
Specialty Drinks $569 $575 $580 $586 $592 $598 $604 $610 $616 $622 $629 $635
Fresh Roasted Coffee $458 $463 $467 $472 $477 $481 $486 $491 $496 $501 $506 $511
Pastries/Desserts 50% $570 $576 $581 $587 $593 $599 $605 $611 $617 $623 $630 $636
Candies, etc. 50% $675 $682 $689 $695 $702 $709 $717 $724 $731 $738 $746 $753
Books/Music $916 $925 $934 $944 $953 $963 $972 $982 $992 $1,002 $1,012 $1,022
Subtotal Direct Cost of Sales $3,600 $3,636 $3,672 $3,709 $3,746 $3,784 $3,821 $3,860 $3,898 $3,937 $3,977 $4,016

Appendix
Page 2
Table: Personnel
Personnel Plan
Albert Brown - Operations Manager 0% $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Owner 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Baristas 0% $4,680 $4,680 $4,680 $4,680 $4,680 $4,680 $4,680 $4,680 $4,680 $4,680 $4,680 $4,680
Total People 6 6 6 6 6 6 6 6 6 6 6 6
Total Payroll $6,180 $6,180 $6,180 $6,180 $6,180 $6,180 $6,180 $6,180 $6,180 $6,180 $6,180 $6,180

Appendix
Page 3
Table: Profit and Loss
Pro Forma Profit and Loss
Sales $16,041 $16,201 $16,363 $16,527 $16,692 $16,859 $17,028 $17,198 $17,370 $17,544 $17,719 $17,896
Direct Cost of Sales $3,600 $3,636 $3,672 $3,709 $3,746 $3,784 $3,821 $3,860 $3,898 $3,937 $3,977 $4,016
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $3,600 $3,636 $3,672 $3,709 $3,746 $3,784 $3,821 $3,860 $3,898 $3,937 $3,977 $4,016
Gross Margin $12,441 $12,565 $12,691 $12,818 $12,946 $13,076 $13,206 $13,338 $13,472 $13,607 $13,743 $13,880
Gross Margin % 77.56% 77.56% 77.56% 77.56% 77.56% 77.56% 77.56% 77.56% 77.56% 77.56% 77.56% 77.56%
Expenses
Payroll $6,180 $6,180 $6,180 $6,180 $6,180 $6,180 $6,180 $6,180 $6,180 $6,180 $6,180 $6,180
Marketing/Promotion $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Depreciation $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167
Leased Equipment $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Utilities $300 $300 $300 $300 $300 $300 $300 $300 $400 $400 $400 $400
Insurance $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150
Rent $2,365 $2,365 $2,365 $2,365 $2,365 $2,365 $2,365 $2,365 $2,365 $2,365 $2,365 $2,365
Website Hosting and
Maintenance
0% $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25
Payroll Taxes 15% $927 $927 $927 $927 $927 $927 $927 $927 $916 $927 $927 $927
Other $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Total Operating Expenses $11,614 $11,614 $11,614 $11,614 $11,614 $11,614 $11,614 $11,614 $11,703 $11,714 $11,714 $11,714

Appendix
Page 4
Profit Before Interest and
Taxes
$827 $951 $1,077 $1,204 $1,332 $1,462 $1,592 $1,724 $1,769 $1,893 $2,029 $2,166
EBITDA $994 $1,118 $1,244 $1,371 $1,499 $1,629 $1,759 $1,891 $1,936 $2,060 $2,196 $2,333
Interest Expense $132 $131 $131 $130 $129 $128 $127 $126 $125 $124 $123 $122
Taxes Incurred $174 $205 $237 $269 $301 $333 $366 $400 $411 $442 $476 $511
Net Profit $521 $615 $710 $806 $903 $1,000 $1,099 $1,199 $1,233 $1,326 $1,429 $1,533
Net Profit/Sales 3.25% 3.80% 4.34% 4.88% 5.41% 5.93% 6.45% 6.97% 7.10% 7.56% 8.07% 8.57%

Appendix
Page 5
Table: Cash Flow
Pro Forma Cash Flow
Cash Received
Cash from Operations
Cash Sales $16,041 $16,201 $16,363 $16,527 $16,692 $16,859 $17,028 $17,198 $17,370 $17,544 $17,719 $17,896
Subtotal Cash from Operations $16,041 $16,201 $16,363 $16,527 $16,692 $16,859 $17,028 $17,198 $17,370 $17,544 $17,719 $17,896
Additional Cash Received
Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $16,041 $16,201 $16,363 $16,527 $16,692 $16,859 $17,028 $17,198 $17,370 $17,544 $17,719 $17,896
Expenditures Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
Expenditures from Operations
Cash Spending $6,180 $6,180 $6,180 $6,180 $6,180 $6,180 $6,180 $6,180 $6,180 $6,180 $6,180 $6,180
Bill Payments $306 $9,175 $9,242 $9,309 $9,377 $9,445 $9,514 $9,584 $9,657 $9,793 $9,873 $9,946
Subtotal Spent on Operations $6,486 $15,355 $15,422 $15,489 $15,557 $15,625 $15,694 $15,764 $15,837 $15,973 $16,053 $16,126

Appendix
Page 6
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current
Borrowing
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal
Repayment
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal
Repayment
$555 $555 $555 $555 $555 $555 $555 $555 $555 $555 $555 $555
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $7,041 $15,910 $15,977 $16,044 $16,112 $16,180 $16,249 $16,319 $16,392 $16,528 $16,608 $16,681
Net Cash Flow $9,000 $291 $387 $483 $581 $679 $779 $879 $978 $1,016 $1,111 $1,216
Cash Balance $46,200 $46,491 $46,878 $47,361 $47,942 $48,621 $49,400 $50,279 $51,257 $52,273 $53,384 $54,600

Appendix
Page 7
Table: Balance Sheet
Pro Forma Balance Sheet
Assets Starting Balances
Current Assets
Cash $37,200 $46,200 $46,491 $46,878 $47,361 $47,942 $48,621 $49,400 $50,279 $51,257 $52,273 $53,384 $54,600
Other Current Assets $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000
Total Current Assets $49,200 $58,200 $58,491 $58,878 $59,361 $59,942 $60,621 $61,400 $62,279 $63,257 $64,273 $65,384 $66,600
Long-term Assets
Long-term Assets $16,000 $16,000 $16,000 $16,000 $16,000 $16,000 $16,000 $16,000 $16,000 $16,000 $16,000 $16,000 $16,000
Accumulated Depreciation $0 $167 $334 $501 $668 $835 $1,002 $1,169 $1,336 $1,503 $1,670 $1,837 $2,004
Total Long-term Assets $16,000 $15,833 $15,666 $15,499 $15,332 $15,165 $14,998 $14,831 $14,664 $14,497 $14,330 $14,163 $13,996
Total Assets $65,200 $74,033 $74,157 $74,377 $74,693 $75,107 $75,619 $76,231 $76,943 $77,754 $78,603 $79,547 $80,596
Liabilities and Capital Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
Current Liabilities
Accounts Payable $0 $8,867 $8,931 $8,996 $9,062 $9,128 $9,195 $9,262 $9,331 $9,464 $9,541 $9,612 $9,683
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $8,867 $8,931 $8,996 $9,062 $9,128 $9,195 $9,262 $9,331 $9,464 $9,541 $9,612 $9,683
Long-term Liabilities $80,000 $79,445 $78,890 $78,335 $77,780 $77,225 $76,670 $76,115 $75,560 $75,005 $74,450 $73,895 $73,340
Total Liabilities $80,000 $88,312 $87,821 $87,331 $86,842 $86,353 $85,865 $85,377 $84,891 $84,469 $83,991 $83,507 $83,023
Paid-in Capital $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000
Retained Earnings ($29,800) ($29,800) ($29,800) ($29,800) ($29,800) ($29,800) ($29,800) ($29,800) ($29,800) ($29,800) ($29,800) ($29,800) ($29,800)
Earnings $0 $521 $1,136 $1,846 $2,652 $3,554 $4,554 $5,654 $6,852 $8,085 $9,412 $10,841 $12,373
Total Capital ($14,800) ($14,279) ($13,664) ($12,954) ($12,148) ($11,246) ($10,246) ($9,146) ($7,948) ($6,715) ($5,388) ($3,959) ($2,427)
Total Liabilities and Capital $65,200 $74,033 $74,157 $74,377 $74,693 $75,107 $75,619 $76,231 $76,943 $77,754 $78,603 $79,547 $80,596

Appendix
Page 8
Net Worth ($14,800) ($14,279) ($13,664) ($12,954) ($12,148) ($11,246) ($10,246) ($9,146) ($7,948) ($6,715) ($5,388) ($3,959) ($2,427)

Business plan for SEED Funding (coffee cafe and internet)

More Related Content

Viewers also liked

More from Enterslice

Recently uploaded

Business plan for SEED Funding (coffee cafe and internet)