White Pine Coffee Company is a start-up specialty coffee shop and bakery located in South Reno, Nevada. The business plan outlines the company's mission to serve high-quality coffee and baked goods while supporting ethical coffee practices. Products will include espresso drinks made with specialty coffee from local roasters as well as baked goods made in-house daily. The target market is higher-income professionals, non-working adults, and students in South Reno. Competition includes large coffee chains but White Pine aims to differentiate with local sourcing and a quiet work space. $125,000 in start-up funding is required, with $50,000 from the owner and $75,000 in debt financing.

1. Business Plan
March 2016
Sara Lynn Hunt, Owner
Steven Brooks, Marketing
Keenan Williams-Conrad, Logistics
9430 Long River Dr.
Reno, NV 89506
(702) 499-5225
sh.1995@yahoo.com

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Table of Contents
1. Executive Summary…..…………………………………………………………………………………. 3-5
1a. Business Concept…………………………………………………………………………....…. 3
1b. Mission Statement…………………………………………………………………………….. 3
1c. Vision Statement………………………………………………………………………………. 4
1d. Objectives……………………………………………………………………………………... 4
1e. Summaries…………………………………………………………………………………... 4-5
Company Overview…………………………………………………………………........ 4
Products, and Services…………………………………………………………………... 4
Market Analysis………………………………………………………………………….. 4
Competitive Analysis…………………………………………………………………….. 5
Management Team……………………………………………………………………….. 5
Strategy…………………………………………………………………………………... 5
Marketing and Sales…………………………………………………………………….... 5
Operations………………………………………………………………………….….…. 5
Financial Needs……………………………………………………………………….….. 5
2. Company Overview…………………………………………………………………………………..….. 6-7
2a. History…………………………………………………………………………………….....… 6
2b. Current Situation…………………………………………………………………………...... 6-7
2c. Key Success Factors………………………………………………………………………....... 7
3. Products and Services…………….…………………………………………………………………....... 8-9
3a. Product Description………………………………………………………………………........ 8
3b. Positioning………………………………………………………………………………….......9
3c. Future Products………………………………………………………………………………... 9
4. Market Analysis………………………………………………………………………………………...10-14
4a. Overall Market…………………………………………………………………………….......10
4b. Changes in the Market……………………………………………………………………….. 10
4c. Market Segmentation………………………………………………………………………11-12
4d. Target Market……………………………………………………………………………... 12-13
4e. Customer Characteristics…………………………………………………………………..13-14
4f. Customer Needs…………………………………………………………………………..........14
4g. Customer Buying Decisions………………………………………………………………….. 14
5. Competitive Analysis……..………………………………………………………………………….... 14-18
5a. Industry Overview………………………………………………………………………….14-15
5b. Nature of Competition…………………………………………………………………………15
5c. Changes in the Industry………………………………………………………………………. 16
5d. Primary Competitors…………………………………………………………………………. 16
5e. Opportunities…………………………………………………………………………………. 16
5f. Risks………………………………………………………………………………………. 16-17
5g. Key Competitive Capabilities……………………………………………………………...17-18
5h. Key Competitive Weaknesses……………………………………………………………...17-18
6. Management…………………………………………………………………………………………… 18-19
7. Strategy………………………………………………………………………………………………… 19-21
7a. Strategy/Implementation………………………………………………………………….. 19-21
7b. Alliance Strategy………………………………………………………………………………21
8. Marketing and Sales…………………………………………………………………………………... 21-23
8a. Marketing Strategy………………………………………………………………………... 21-22
8b. Advertising…………………………………………………………………………………… 22
8c. Promotions/Incentives……………………………………………………………………........23
9. Operations………………………………………………………………………………………………23-24
9a. Key Personnel……………………………………………………………………………….... 23

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9b. Organizational Structure……………………………………………………………………... 23
9c. Shop……………………………………………………………………………………….23-24
10. Financials……………………………………………………………………………………………... 24-29
10a. Financial Strategy…………………………………………………………………………...24
10b. 5-Year Pro Forma Cash Flows…………………………………………………………...... 25
10c. 5-Year Comparative Income Statements…………………………………………………... 26
10d. 5-Year Comparative Balance Sheets………………………………………………………. 27
10e. 5-Year Funds Required/Used……………………………………………………………… 28
10f. Finance Needs……………………………………………………………………………... 29
11. Offering………………………………………………………………………………………………. 29-30
11a. Offering to Lender/Investor…………………………………………………………..... 29-30
11b. Exit Strategies……………………………………………………………………………... 30
12. References………………………………………………………………………………………………... 31
13. Appendix……………………………………………………………………………………………… 32-34
13a. Survey Results.……………………………………………………………………………... 32
13b. The Millennial Marketplace: Shifting Values………………………………………….. 33-34

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Executive Summary
Business Concept
Specialty coffee was first defined by Erna Knutsen in 1978 with a relatively simple process: “special
geographic microclimates produce beans with unique flavor profiles, which [Knutsen] referred to as 'specialty
coffees'. Underlying this idea of coffee appellations was the fundamental premise that specialty coffee beans would
always be well-prepared, freshly-roasted, and properly brewed” (Holly, 1998). White Pine Coffee Company is a
start-up coffee shop and bakery located in South Reno, Nevada that wholeheartedly believes in the ethical
production of coffee beans and that using specialty coffee practices prepares top-notch coffee products. White Pine
Coffee Company will cater to the increasing population by providing customers with freshly-roasted, fair-trade
coffee sourced from coffee roasters in Reno, San Francisco, and other cities along the west coast. The company will
also offer baked goods made with fresh and local ingredients. White Pine Coffee Company will appeal to
customers’ values and lifestyle by serving sustainably-produced coffee and using ingredients provided by local
farmers whenever possible. The physical store will be conveniently located in the higher-income area of South
Reno, which currently does not have a specialty coffee shop and bakery. The atmosphere will be both relaxing and
social, and the shop will feature a separate “quiet room” for professionals and students to work or host a meeting.
White Pine Coffee will be the first of its kind in South Reno by giving locals both a specialty coffee shop and bakery
in one, while also providing a modern atmosphere and appealing to customer beliefs about ethical coffee practices
and locally grown products.
Mission Statement
White Pine Coffee Company’s mission is to serve the community supreme baked goods and specialty
coffee by supporting the company’s ethical beliefs surrounding coffee bean production. White Pine Coffee
Company strives to create loyal relationships within the community, share the company’s passion and knowledge of
all things coffee, and utilize employees’ talents to deliver the finest coffee and baked goods available.

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Vision Statement
White Pine Coffee Company’s vision is to become a coffee industry leader in Reno by excelling in
customer service, developing relationships within the community, and maintaining sustainable coffee practices to
appeal to consumer values.
Objectives
● Implement an employee training program for new hires to provide product consistency and minimize
turnover.
● Maintain a 60% gross margin on coffee, espresso beverages, and baked goods.
● Pay off loan to investors by November 2020.
Company Overview
White Pine Coffee Company will be located in South Reno and will cater to higher-income adults, non-
working adults, and young professionals. The company will remain competitive by providing customers with
convenient specialty coffee, high-quality baked goods, and excellent customer service.
Products and Services
White Pine Coffee Company will offer a wide range of espresso drinks, coffees, teas, hot chocolate, and
baked goods. Coffee will be sourced from reputable coffee roasters and baked goods such as bagels, muffins, and
Danishes will be made daily.
Market Analysis
In 2015, specialty coffee sales were exceeding $3.48 billion, making it the second highest growing
specialty food industry in the U.S. (Brown, 2015). Since 2009, Reno has seen major growth in local cafes with the
success of coffee shops such as Hub Coffee Roasters, Magpie Coffee Roasters, and Old World Coffee Company,
amongst others. White Pine Coffee Company will establish a large customer base in South Reno by focusing on
professionals and higher-income adults in the area. The target market will be in search of high-quality products that
match their values and beliefs surrounding food and coffee production.

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Competitive Analysis
White Pine Coffee Co. will be entering a market saturated with chain coffee companies. White Pine Coffee
will be able to differentiate itself by fulfilling the missing needs of the population which include a high-quality
bakery, convenient specialty coffee, and more local businesses in South Reno.
Management Team
Sara Lynn Hunt is the founder and owner of White Pine Coffee Company. She will open the business
along with marketing manager Steven Brooks, operations manager Keenan Williams-Conrad, and mentors Matt
Westfield, Bret Leary, Dan Hunt, and Jim Hunt.
Strategy
White Pine Coffee Company will remain competitive by offering a wide selection of espresso drinks,
coffee, and baked goods. They will offer locals’ discounts and punch cards to encourage repeat customers.
Marketing and Sales
White Pine Coffee Company will use a mix of social media, radio, and direct mail ads to advertise to
customers. Using social media, White Pine Coffee Company will be able to stay connected with their customers and
keep them updated on new events happening in-store. Additionally, White Pine Coffee will partner with other local
businesses in Reno to offer customers 10% off coupons on their first purchase.
Operations
White Pine Coffee Company will be a small coffee shop with a staff of eight that will fulfill all the
operating needs from preparing espresso drinks to managing the finances. The shop will have a tranquil atmosphere
and plenty of space for customers to sit, work, and enjoy quality coffee and baked goods.
Financial Needs
White Pine Coffee Company will require $125,000 in start-up funds. The owner will provide $50,000, and $75,000
will be required in debt-financing from private investors. The effective ROI to the investor is expected to be 27.2%.

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Company Overview
History
The idea for White Pine Coffee Company was first developed in 2010 when owner Sara Lynn Hunt was
attending a culinary high school where she focused on baking and pastry. During high school, Sara Lynn started a
hobby baking business where she learned about developing recipes, managing inventory, and controlling finances.
She soon gained a following in her local community and eventually moved the business to Reno, Nevada. With a
passion for baking and ethical coffee production, Sara Lynn plans to use her culinary experience to open a storefront
in South Reno, Nevada.
Current Situation
● Location: White Pine Coffee Company will be based in South Reno as a convenient location for
homeowners and professionals in the area. While the company does not currently have a building, they
have determined that the store-front will require 2,000 square feet for both a kitchen and a dining area. The
South Reno location will be beneficial to locals in the area based on the demographics’ income, needs, and
values. See Image 1.2.
● Target Market: White Pine’s target markets include higher-income professionals, non-working adults, and
young professionals and students. The primary market, higher-income professionals, will visit White Pine
Coffee Company based on convenience and quality, while non-working adults will be looking for a chic
coffee shop to relax and socialize. The atmosphere at White Pine Coffee Company will attract students and
younger adults as a secondary market. The roasting techniques used by the company’s coffee suppliers will
entertain customer values, since coffee will be fair-trade and bakery ingredients will be local when
possible. For demographic information for the target markets, see Tables 1.2 and 1.3.
● Competition: Coffee shops in South Reno include Starbuck’s and Bibo, which provide customers with
flavored drinks and few baked good options. Alternatively, local roasters’ coffee beans have superior
quality, but the companies are located in Downtown and Midtown Reno. White Pine Coffee Company will
compete with these coffee shops by providing customers with a convenient location, freshly-roasted coffee,
and baked goods. Customers will choose White Pine Coffee Company over any other coffee shop, because

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they will be located close to customers’ homes or places of work while providing coffee from highly-
acclaimed roasters along the west coast and using baked goods as a competitive edge.
Key Success Factors
● People: White Pine Coffee Company will hire and train one full-time barista, three part-time baristas, and
one full-time baker to help open the store front. Baristas will be extensively trained to ensure quality and
consistency with coffee and espresso drinks. White Pine Coffee Company will strive to offer employees
structure and freedom to create a fun but efficient environment.
● Purpose: White Pine Coffee Company’s purpose is to make specialty, fair-trade coffee convenient and
widely-available to customers while ensuring quality and consistency. The company will successfully
make high-quality coffee and baked goods attainable to the target market, while appealing to their values
and lifestyle.
● Processes: Coffee will be ordered and delivered weekly to ensure quality and readiness of the product.
Additionally, baked goods will be made daily with local ingredients to ensure freshness. White Pine
Coffee Company will keep costs down by buying seasonal ingredients and bulk items. White Pine Coffee
Company will promise quality control by training staff to know when a product is not of high-quality and
stressing consistency in coffee preparation and baking.
● Resources: White Pine Coffee Company will use La Marzocco espresso machines to maintain the
excellence of the coffee. Although La Marzocco machines are more expensive, they are a long-term
investment, and they produce the best coffee products. By selling coffee and baked goods, White Pine
Coffee Company will be able to generate large cash flows which will sustain the business and employee
needs.
● Customers: White Pine Coffee Company will appeal to customer needs by providing them with
convenient specialty coffee. Additionally, they will use marketing to attract new customers and establish
loyal customer relationships. By establishing relationships, the company will continue to return customers
and increase cash flows.

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Products and Services
White Pine Coffee Company is currently in its research and development stage. The company will offer its
customers high-quality, sustainable coffee from coffee roasters such as Hub Coffee Roasters, Temple Coffee
Roasters, and The WestBean. Customers will have a choice between different coffee preparations, espresso drinks,
teas, and hot chocolate. White Pine Coffee Company will have top management training to ensure drinks are
prepared consistently and with value in mind. Additionally, White Pine Coffee Company will feature an on-site
bakery to offer freshly baked goods every morning.
Product Description
Espresso drinks served at White Pine Coffee Company will include lattes, cappuccinos, mochas,
Americanos, macchiatos, and Gibraltars. Each espresso drink will be made with two shots of freshly-ground
espresso and a choice of whole milk, almond milk, or soy milk. Since espresso drinks rely on perfectly timed shots
and micro-foamed milk, baristas will be extensively trained to ensure quality. White Pine Coffee Company will
brew new drip coffee every two hours, and they will also provide customers with the V-60 pour-over and Chemex
pour-over options. These methods create a better flavor profile in the coffee, which many customers prefer. Since
White Pine Coffee Company’s customers value the taste of specialty coffee, offering pour-over options will appeal
to customers wanting the best flavor out of their coffee. Variables such as water temperature, grind coarseness, and
water flow all influence the flavor of pour-over coffee, which will require training on the company’s behalf in order
to provide customers with consistency and the best coffee experience. Consumers may choose from a variety of
coffee roasts, decaf coffees, teas and house-made hot chocolate. Baked good options will switch daily but will
include choices such as muffins, bagels, and Danishes. There will also be gluten-free and dairy-free options to
appeal to customers with allergies. Baked goods will be made daily to ensure freshness.
White Pine Coffee Company will also offer customers a variety of local teas and hot chocolate. Hot
chocolate will be made in-house, and teas will be provided by local companies such as Davidson’s. The coffee shop
will feature wifi services to provide customers with a comfortable space to work on their laptops or study.

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Positioning
White Pine Coffee Company will position itself as a social coffee shop and bakery that preaches excellence
in service, atmosphere, and superiority of coffee and baked goods. The company will remain competitive over
similar coffee shops and bakeries by:
● Using seasonal produce in their baked goods from local farms whenever possible. White Pine Coffee
Company will base the menu on what ingredients are in season in order to keep prices reasonable and
quality high.
● Providing customers with freshly-roasted coffee beans sourced from west coast coffee roasters. Coffee
origins will include countries in South America and Africa.
● Accommodating professionals and students with a “quiet room”, separate from the main shop, filled with
work tables and outlets. The room will provide customers a silent place to study or work away from the
noise of the main shop. This will give White Pine Coffee Company a competitive edge since other coffee
shops in Reno are fairly loud and distracting for many people.
● Unlike other coffee shops, White Pine Coffee Company will feature a wide variety of baked goods so
customers can have a one-stop shop on busier mornings.
● White Pine Coffee Company will be more convenient to customers that live or work in South Reno and that
prefer high-quality products over chain coffee shops such as Starbuck’s.
Future Products and Services
In the first year of operations, White Pine Coffee will host monthly mixers for local business associations
and EA Nevada. In year two, White Pine Coffee Co. will appeal to the importance of coffee culture by selling retail
products such as T-shirts and diner mugs featuring the company’s logo. Within the next three years, White Pine
Coffee Company would like to start offering classes teaching customers about different home-brewing methods such
as V-60 pour-over, Chemex, and aeropress. After four years, White Pine Coffee Company will start selling baked
goods to other retail establishments such as restaurants and coffee shops. In Year 5, White Pine Coffee Company
will begin plans for expansion. See 5-Year Gantt Chart on page 21.

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Market Analysis
The Overall Market
Specialty coffee shops have been steadily growing in popularity over the past couple of decades. In 2014,
50% of adults were drinking specialty coffee weekly compared to 27% of adults in 2003 (NCAUSA, 2014).
Additionally, the city of Reno has been encouraging the growth of small businesses to enhance the city’s economy.
In 2014, 98% of businesses in Nevada were considered small businesses with less than 100 employees, and 70% of
those businesses had less than 10 employees (Shearer, 2015). Reno, with its growing emphasis on local business
and sense of community, has seen major success with other local coffee shops, therefore increasing the demand of
specialty coffee. Customers in the Southern area of Reno value high-quality products, exceptional service, and a
sense of community when choosing a coffee shop, bakery, or restaurant. White Pine Coffee Company will focus on
creating a community of loyal customers in South Reno by appealing to customer values and attitudes.
Changes in the Market
Specialty coffee and espresso consumption has been steadily increasing over the past few years due to the
rise of gourmet coffee shops. Meanwhile non-gourmet coffee consumption has been decreasing (Jed, 2014). See
Table 1.1. As of December 2015, specialty coffee had a 55% market value share with an estimated retail value of
$48 billion (SCAA, 2015). For specialty coffee market share trends, see Image 1.1.
Table 1.1 Specialty Coffee Growth
Year Specialty Coffee
Consumption
Non-specialty Coffee
Consumption
Espresso
Drinkers
2013 31% 39% 13%
2014 34% 35% 18%
*Information courtesy of SCAA.

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Image 1.1
*Image courtesy of SCAA and NCAUSA.
Market Segmentation
White Pine Coffee Company will focus its marketing efforts on professionals, higher-income adults, and
young adults in the Southwest Reno area. White Pine Coffee Company believes that the primary market of
professional adults will make up 45% of our customer base, while 35% of customers will be non-working adults,
and 20% will be young professionals, college students, and high school students. In 2015, coffee penetration among
consumers in the US was 45% for 18-24 year olds, 57% for 25-39 year olds, 62% for 40-59 year olds, and 65% for
adults over the age of 60 (NCA, 2015). According to the NCA, 76% of coffee drinkers in 2012 claimed that they
began consuming coffee before the age of 24 (NCA, 2012). Although young adults are not necessarily part of the
company’s major demographic, the company acknowledges that this is a majorly influential group in the coffee
industry. See SCAA article, The Millennial Marketplace: Shifting Values on pages 33-34. White Pine Coffee
Company believes that the target markets will appreciate the high-quality nature of the company’s products, which
will make the Southwest area of Reno ideal for the business. See Tables 1.2-1.4.
White Pine Coffee Company conducted an online survey from January 31-February 2 to coffee shop
patrons in Reno, Nevada. Results showed that 78% of customers rate “quality” as very important when choosing a
coffee shop, and 73% said “service” was very important. 74% of the participants were between the ages of 16 and
24, but the company believes that the survey information can be used to appeal to the target market by focusing on

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both factors of quality and service. By appealing to a younger market, the company would be able to generate buzz
and word-of-mouth which would eventually bring more customers into the shop. See Survey Results on page 32.
Table 1.2 Ages of Target Market
Zip Code 40-64 25-39 18-24
89511 44% 13% 7%
89521 32% 24% 6%
*Information courtesy of Movoto.
Table 1.3 Employment and Income of Target Market
Zip Code Employed Not in Labor Force Annual Income of
$75,000-$150,000
89511 63% 33% 34%
89521 64% 31% 40%
*Information courtesy of Movoto.
Table 1.4
Target Market
Primary Market
● Gender: Male and Female
● Age: 35-65
● Income: $50,000+
● Occupations: Professionals

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● Education: Bachelor’s Degree and/or Graduate Degree
● White Pine Coffee Company’s primary market will include professionals working in the South Reno zip
codes in search of a quick coffee stop. White Pine Coffee Company will also provide this market with a
serene atmosphere on their days off.
Secondary Market I
● Gender: Male and Female
● Age: 30+
● Occupations: Stay at home parents, non-working adults, retirees
● This market will appeal to non-working adults that live in or around South Reno looking for a spot to relax
and socialize with friends.
Secondary Market II
● Gender: Male and Female
● Age: 16-30
● Income: $5,000+
● Occupations: Young professionals, college students, high school students
● Education: Bachelor’s Degree or Currently Enrolled
● White Pine Coffee Company’s chic, relaxing atmosphere, work area, and bakery options will attract a
younger crowd. Since White Pine Coffee Company will be located near both Damonte Ranch High School
and Galena High School, it is expected the coffee shop will appeal to younger adults as well as older ones.
Customer Characteristics
White Pine Coffee Company’s customer base will mainly include adults that appreciate high-quality and
ethically-produced coffee. The company will appeal to customers by serving coffee from the most popular fair-trade
coffee roasters along the west coast. Customers will value ethical work practices, the use of buying and selling
local, and living a healthier lifestyle by choosing better quality food ingredients found in the baked goods and
coffee. Customers will be in search of a coffee shop that is conveniently located close to their house or place of
work while also providing a modern and social environment. However, professionals and students will also be in
need of a quiet and comfortable space to study, do their homework, or hold a business meeting. The target markets

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will be looking for an overall coffee shop experience over speed, and they will expect superior service and customer
satisfaction.
Customer Needs
With the increase in popularity of specialty coffee, more customers are looking for convenient ways of
receiving it. With mostly chain coffee companies in the South Reno area, White Pine Coffee Company believes that
a specialty coffee shop would attract a higher-income crowd. Customers in South Reno will no longer need to travel
to Downtown or Midtown for specialty coffee and baked goods, and they will not have to settle for Starbuck’s when
they do not have time to drive for coffee. White Pine Coffee Company will make sustainable coffee more
convenient for customers in South Reno, and they will now be able to stop for specialty coffee and baked goods
before work in the morning.
Customer Buying Decisions
With the need of specialty coffee in South Reno, customers will be more likely to choose White Pine
Coffee Company over other coffee shops, such as Hub Coffee Roasters or Magpie Coffee Roasters, because of the
convenience of location and parallel quality. Since White Pine Coffee Company will sell only fair-trade coffee and
high-quality baked goods, they will be able to match their values as a company with their customer’s values and
lifestyle decisions. Additionally, White Pine Coffee Company’s baked goods will give the business a competitive
edge over other specialty coffee shops in Reno. With White Pine Coffee Company’s exceptional quality and
customer-centric service, consumers are expected to return, creating a loyal customer base.
Competitive Analysis
Industry Overview
Currently, South Reno’s coffee shop industry is dominated by five Starbuck’s and Bibo. See Image 1.2 on
page 15. Bibo, a local coffee shop that opened in 2012, has proven successful amongst locals by gaining support in
the live-local movement in its early years. However, the local movement is growing and looking for more options.
The only bakery in the area, Haven on Earth, is a gluten-free only shop that has not gained popularity with the

16. 15
residents in South Reno. White Pine Coffee Company will fill the needs of the area by supporting the live-local
movement and being a quality, independent, specialty coffee shop and bakery.
Nature of Competition
The market in South Reno is saturated with chain coffee shops such as Starbuck’s and Bibo. As it stands,
the competition focuses on quick service and cheaper products rather than the coffee shop experience White Pine
Coffee Company’s customers are looking for. The single bakery in South Reno is Haven on Earth, which only
caters to the gluten-free demographic. The area is lacking in a local specialty coffee shop and bakery.
Indirect competitors include bakeries in grocery stores, Truckee Bagel Company, and Wood-Fire Roasted
Coffee Company. While there are bakery sections in grocery stores such as Raley’s and Smith’s, the products do
not use the same high-quality, local ingredients that White Pine Coffee Company’s customers expect in their baked
goods. Additionally, the grocery stores do not provide a sitting area for customers to relax. Truckee Bagel
Company will compete with White Pine Coffee Company’s baked goods, but Truckee Bagel focuses more on
breakfast and lunch bagel specials rather than an overall bakery experience. Additionally, they do not sell specialty
coffee. Lastly, White Pine Coffee Company will compete with Wood-Fire Roasted Coffee Company. Wood-Fire
Roasted sells higher-quality coffee, but the company is not a coffee shop. Rather, they sell wholesale coffee to local
businesses in Reno.
Image 1.2
*Information
courtesy of
Point2Homes.

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Changes in the Industry
The most recent and important change in South Reno’s coffee market was the opening of Bibo Coffee shop
in November 2012. It was the first local coffee shop in South Reno and the first shop to compete with Starbuck’s.
Bibo’s opening marked the start of the growth of the live-local movement in South Reno for the coffee industry.
Primary Competitors
White Pine Coffee Company’s primary competitors in the South Reno area are Starbuck’s, Bibo, and
Haven on Earth Bakery. The majority of the competition is Starbuck’s with a total of five locations in the 89511 and
89521 zip codes. Starbuck’s caters to a different demographic by selling flavored coffee drinks and providing
identical experiences every few blocks. The cookie-cutter coffee shop serves beans that have been roasted in large
volumes at a high price and offers a small selection of baked goods. Bibo is an independent, local coffee shop in
Reno with three locations, one of which being in Southern Reno. Bibo offers flavored coffee beverages and few
baked goods. Additionally, Bibo does not provide wifi to customers, which severely limits the potential for
customers to work or study in their shop. Haven on Earth Bakery is a local bakery that offers exclusively gluten-
free options. This shop is limited to the gluten-free population, which leaves plenty of room for a bakery with both
allergy-friendly and regular baked goods options.
Opportunities
 White Pine Coffee Company will be able to capitalize on the absence of a true specialty coffee shop and
bakery in South Reno by being the first in the area to serve fair-trade, specialty coffee.
 White Pine Coffee Company can remain competitive by hosting meetings, events, and open mic nights,
which will enhance White Pine’s market value while increasing traffic flow and market acceptance.
Risks
 Starbuck’s and Bibo have had years of experience fine-tuning and settling into their identity leading to
brand recognition amongst customers. As a new business, White Pine Coffee Company will have to focus
its efforts on customer-centric service and high-quality products to create buzz and raise awareness.

18. 17
 Bibo has established itself as a chic, local coffee shop in South Reno. White Pine Coffee will offer benefits
Bibo does not such as wifi, a large selection of baked goods, and plenty of seating.
 An emphasis on decreasing caffeine intake for people with health conditions could threaten sales. White
Pine Coffee will offer decaf coffee, herbal teas, and hot chocolate for customers limiting caffeine intake.
 Coffee shops in Reno are designed to be modern and relaxing for customers to enjoy their coffee shop
experience. To encourage customers to visit White Pine Coffee Co., the location will have a “quiet room”
designated for professionals and students and will also feature a spacious, chic design to encourage a social
and comforting environment.
Key Competitive Capabilities
 White Pine Coffee Company can meet the target markets’ unsatisfied needs for quality coffee, paired with a
relaxing and creative atmosphere in the South Reno area.
 White Pine Coffee will bring a unique and relaxing twist on the stereotypical business of chain coffee shops
such as Starbuck’s by offering fresh baked goods and specialty coffee drinks unique to the company.
 White Pine Coffee Company also has the advantage of being a new business in town, so they can create
their own buzz by encouraging Reno locals to explore the different types of coffee, try something new, and
support a locally owned business.
Key Competitive Weaknesses
 The main competitive weakness of White Pine Coffee Company is its lack of experience in the industry.
However, White Pine Coffee Company will offer a new experience in Reno’s coffee industry by providing
customers with sustainable coffee, fresh baked goods, and a convenient location.
 White Pine Coffee Company has limited brand equity and awareness. To increase awareness, the company
will sit within its own niche in the existing market, offering a simple, yet essential spin on the current
markets’ products.
 White Pine Coffee Company has a limited marketing budget. The company will rely on considerable social
media presence, word-of-mouth, and large attendance in community events to raise awareness of the coffee
shop and company.

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Table 1.5: Displays White Pine Coffee Company’s competition and competitive advantages.
Company Benefits White Pine Starbuck’s Bibo
Specialty Coffee
Bakery
Work-Friendly Environment (Wifi, Work Space, Etc.)
Local Business
Use of Local Ingredients
Host Events
Partnerships with Other Local Businesses
Management
● Owner: Sara Lynn Hunt is a marketing and entrepreneurship student at the University of Nevada Reno
graduating May 2017. She is currently employed at Hi Point Coffee and Cafe. In high school, Sara Lynn
went to Northwest Career and Technical Academy in Las Vegas, Nevada where she specialized in Culinary
Arts with a focus on baking and pastry. With experience in business and the culinary arts, Sara Lynn will
own and manage White Pine Coffee Company.
● Marketing/Strategy: Steven Brooks is a senior Strategic Communications major and entrepreneurship
minor at the University of Nevada, Reno graduating in December of 2016. He is currently employed at the
Sports Authority in Reno, Nevada as a Senior Sales associate and assistant ski and snowboard technician.
Steven has a passion for environmentally-friendly business practices, allergen-friendly food options and
supporting local businesses. Using his talents in the realm of communications and marketing paired with
his knowledge of business, Steven hopes to help open, operate, and grow the business of White Pine Coffee
Co.
● Logistics: Keenan Williams-Conrad is a chemical engineering student minoring in entrepreneurship at the
University of Reno, Nevada graduating May 2017. He is a Supervisor at the Circus Circus Midway where

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he maintains the business operations. Keenan has extensive customer service experience as well and plans
to use his passion for holistic food and his cooking knowledge to open White Pine Coffee Co.
● Mentors: Mentors include Matt Westfield, Bret Leary, Dan Hunt, and Jim Hunt. Matt Westfield is an
entrepreneur and instructor at the University of Nevada Reno, and he has been teaching the team members
about effective business planning and how to successfully operate a start-up business. Bret Leary is a
marketing professor at UNR and has been providing the team effective marketing techniques to
successfully sell the business to potential customers. Lastly, Dan Hunt and Jim Hunt are mentoring the
team on finances, start-up costs, and potential returns. Both Dan and Jim are experienced accountants and
CFOs in Las Vegas, Nevada.
● Personnel Needs: White Pine Coffee Company will hire one full-time barista, one full-time baker, and
three part-time baristas to open the new location. Interviews will begin one month before the location
opens in order to extensively train baristas and prepare plans for baked good production with the baker.
● Hunt, Brooks, and Williams-Conrad met in January 2016, and with Sara Lynn’s business idea, have
developed an effective strategy for opening White Pine Coffee Company. Although management may
change over time, Hunt, Brooks, and Williams-Conrad will continue to work towards opening a store-front,
increasing personnel, and establishing a solid relationship with customers and other local businesses in
South Reno’s community.
● All major decisions will be made by the owner and manager, Sara Lynn Hunt. Steven Brooks will make
most of the marketing decisions regarding social media, promotional offers, and traditional media. Keenan
Williams-Conrad will be in charge of the flow of products from supplier to consumer. Other staff members
will be empowered to be self-sufficient with decision-making but will report to the manager with any
questions. Weekly meetings will be held to ensure consistency in operations.
Strategy
Strategy/Implementation
White Pine Coffee Company’s strategy is to open a chic coffee shop, offering high-quality coffee, regular
and allergy-friendly baked goods, and a relaxing environment for the customers to enjoy their products. White Pine
Coffee Company will appeal to the coffee connoisseur by offering specialty coffee, espresso, and tea. To appeal to

21. 20
other citizens in the Reno area, White Pine Coffee Company will offer something similar to a rewards program by
using punch cards for both drinks and food items. Each customer will get their 10th
item free, offering an incentive
for repeat customers. For the first week of operations, a 10% “locals’ discount” will be applied to customers who
visit and can show proof that they are a local citizen (ID with Reno, Sparks, Carson City, Truckee, Lake Tahoe, or
UNR/TMCC/Local High School Student ID). This will also offer an incentive for local citizens to visit the
company’s coffee shop and encourage repeat visits.
 Pre-Revenue: White Pine Coffee Company will focus its efforts on finding a store-front located near
customers’ homes and places of work. Up until the grand opening, the company will be renovating their
store-front, hiring employees, and extensively training new baristas. The company will also create buzz by
using word-of-mouth and advertising at other local businesses to help attract customers before opening day.
See Start-Up Gantt Chart below.
 Revenue: After White Pine Coffee Company opens, the management team will implement their marketing
plan using social media, radio, mail ads, and coupons at other local businesses. By focusing on customer-
centric service and high-quality products, the company will continue to grow and attract more customers.
 Growth: When the company has established a holding in the South Reno community, White Pine Coffee
Company will begin hosting mixers, selling retail, offering coffee-brewing classes, selling baked goods to
other retail establishments, and making plans for expansion. See 5-Year Gantt Chart on page 21.
Start-Up Gantt Chart

22. 21
5-Year Gantt Chart
Alliance Strategy
White Pine Coffee Company will partner with both local and non-local coffee roasters along the west coast.
By partnering with coffee roasters such as Hub Coffee Roasters in Reno or Temple Coffee Roasters in San
Francisco, White Pine Coffee will be able to establish business relationships within the community and provide
sustainable coffee from popular brands in different states. White Pine Coffee Company has also partnered with EA
Nevada to host mentor meetings as their South Reno location. In October 2016, White Pine Coffee plans to begin
hosting monthly networking events for local business associations such as the Chamber of Commerce, Executives
Association of Reno, Reno-Sparks Association of Realtors, and Better Business Bureau of Nevada. By introducing
the company to local associations, White Pine Coffee hopes to create relationships with other businesses in Reno.
Marketing and Sales
Marketing Strategy
One of White Pine Coffee Company’s main marketing strategies is going to be social media. In this new
age of digital marketing, White Pine Coffee Company plans to take full advantage of platforms such as Instagram,
Twitter, Facebook, and Tumblr to appeal to the thousands of millennials who are constantly on these platforms
every day. White Pine Coffee Company will post photos daily of drinks, food items, employee highlights, fun facts

23. 22
about coffee, the facility and its location, new deals the company is running, seasonal drinks/treats, events the
company will be attending, other local business highlights, etc.
In addition to White Pine Coffee Company’s social media strategies, the company plans to use small direct
mailer ads to send to those potential customers surrounding the location, inviting them to the grand opening.
Included in the direct mailer will be a coupon for 10% off any purchase on opening day.
A third marketing strategy will be for White Pine Coffee Company to advertise using the local radio
stations and Pandora advertisements targeting customers in Reno and Lake Tahoe. These advertisements will range
between 15-30 seconds and will give the audience the information they need to locate White Pine Coffee Company
in town, or check them out via social media.
Lastly, White Pine Coffee will host events and meetings for the community and use the support of other
local businesses by providing them with 10% off coupons to distribute to their customers. By offering coupons at
other businesses, White Pine Coffee will be able to show its support for Reno businesses and attract new customers.
See Table 1.5 on page 18.
Advertising
White Pine Coffee Company plans to use radio, social media, and earned media to advertise for the grand
opening and as well as regular advertising. A press release will be written to all local news outlets, both print and
broadcast, to inform potential customers of the grand opening. Periodically, press releases will be written to those
outlets about special events the company is attending or hosting, any charity work they participate in, and any other
local community events White Pine Coffee Company participates in.
White Pine Coffee Company will use social media on a daily basis as a way to keep the company name on
the target markets’ minds, to interact with customers, and to attract new customers as well. White Pine Coffee
Company feels that by making themselves available on these platforms, customers will be able to interact on a more
personal level and will be able to give and receive feedback from the company.

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Promotions/Incentives
White Pine Coffee Company will use promotions such as punch cards where every 10th
drink or food item
is free. Other promotions include local discounts, military discounts, offering seasonal items, and raffles to win free
coffee for a month in order to increase the customer base as well as the number of repeat customers.
Customers will also have the opportunity to post a photo on Instagram of themselves and/or their coffee for
a chance to be featured on White Pine Coffee Company’s Instagram page. Lastly, White Pine Coffee Company will
have incentive programs during the holidays. For example, customers can bring in a canned food item before
Thanksgiving to receive 10% off of their order.
Operations
Key Personnel
Necessary positions for business operations include a manager, a baker, and at least one barista/cashier on
bar at all times. For the behind-the-scenes operations, positions for sales/finances and logistics will be needed as
well. The staff will realistically be a team of eight who can accomplish all necessary operating tasks as a start-up.
Eventually, more baristas will be necessary to keep up with increasing demand.
Organizational Structure
White Pine Coffee Company will file as an LLC because of the flexibility, the liability protection, and
simpler tax filing. White Pine Coffee Company will begin as a lifestyle company, but if it eventually turns into a
growth business, the company can easily be filed as a corporation from an LLC.
Shop
White Pine Coffee Company will be open from 7 a.m. to 5 p.m. Monday through Sunday. Baked goods
will be made in the bakery, but drinks will be prepared in the front of the house. Any human resources or customer
support will be handled by the managers in the store itself. White Pine Coffee Company will require 2,000 square
feet which will hold both the bakery and the dining area. The dining area will be able to seat 125 people including

25. 24
the “quiet room”. White Pine Coffee Company’s furniture will feature both natural wood tables and chairs as well
as chic upholstered sofas to make the atmosphere comfortable and inviting.
White Pine Coffee Company will have a small kitchen/bakery area along with a coffee bar in the front of
the house. The cooking facilities will include a stove, a double oven, a mixer, a refrigerator and freezer, and other
necessary cooking utensils. The coffee bar will include a drip coffee machine, pour-over utensils, grinders, a La
Marzocco espresso machine, and a mini-fridge to hold milk. There will be one barista on bar at all times to make
drinks and take customers’ orders. During the busier morning hours, there will be an additional barista on bar to
help take orders and make drinks. Whenever there is a single barista on the bar, the owner will step in to help during
busier rushes. The baker will prepare baked goods every morning, and the owner will take over baking obligations
when the baker is not working.
Financials
Financial Strategy
The company’s financial strategy is to achieve growth that will result in profitability, positive cash flow
and minimal to no debt in under five years. Our approach is to borrow adequate funds up front to ensure that the
store is prepared to operate competitively on opening day.
The growth model is derived from a monthly cash flow spreadsheet projected over 60 months. The
spreadsheet accounts for all anticipated revenues, direct costs, and operating expenses, including contingencies.
Based on this spreadsheet, the company expects to grow revenues by 4% monthly in year 1, 2% monthly in year 2,
and 1% monthly in years 3 through 5. This growth model will allow the company to grow and maintain a cash
balance equal to roughly four times monthly operating expenses at the beginning of year 3. The note payable to the
lender will be paid in full over eight installments in years 3 and 4, and scheduled monthly profit distributions to the
owner in will begin in year 5.
The cash flow spreadsheet will be used as the source of the initial budget. Budget to actual variances will
be monitored on a monthly and year-to-date basis. The budget will be revised periodically based on these variances.
See financial statements on pages 25-28.

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27. 26

28. 27

29. 28

30. 29
Finance Needs
The traditional bank lending environment for small retail food and beverage establishments is challenging,
to say the least. It is not only a long process to receive funding but cumbersome as well. The disclosure
requirements demand personal financial statements and tax returns as well as personal guarantees which must all be
reviewed by a loan committee that meets every two to four weeks. If bank financing is approved, there are
considerable loan fees. During the term of the loan, the bank will require that key financial covenants must be met.
Financial statements, aging reports, and borrowing base certificates must be provided. The bank may also require an
annual audit of the company’s inventory and accounts receivable. The audit fees are charged to the borrower. All
of this amounts to considerable cost and administrative time.
For the reasons stated above, White Pine Coffee Company has chosen to obtain funding from private
investors. Due to the current extremely low interest rate environment and volatile stock market, individuals with
large amounts of cash to invest are eager to earn higher rates of return. Small business loans are a higher risk and
investors demand a higher interest rate to assume that risk. However, the funds are readily available and accessible
with minimal disclosure and administrative time commitment to the borrower. An additional benefit is that there are
no up-front loan fees to incur.
Offering
Offering to Lender/Investor
White Pine Coffee Co. is seeking debt financing for the start-up of this retail opportunity. The Owner will
contribute $50,000 equity cash within 90 days of the May 1, 2016 start-up. The Lender will deposit $75,000 in loan
funds in July, 2016. The combined total of the equity and debt financing of $125,000 will be used to purchase
equipment, build out improvements of the retail space, and to purchase supplies. The loan proceeds will allow the
business to begin full operations on August 1, 2016. As security for the Lender’s loan, the equipment purchased
will be offered as collateral. In addition, the Owner will sign a personal guarantee for the loan.
It is projected that the Lender’s principal will be repaid in seven installments of $10,000 in year three and
one final $5,000 installment in year four. The loan will be an interest-only loan at 8% with repayment of the

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$75,000 principal in November 2020. Interest will be paid monthly starting July, 2016. The effective return on
investment to the Lender/Investor is estimated to be 27.2%.
Exit Strategies
Based on financial projections, White Pine Coffee Company could sell the business to an interested buyer.
With the increase of businesses in the coffee industry, it is expected that the business could sell to another coffee
company in Reno or to a hopeful coffee shop owner.

32. 31
References
Brown, N. (2015, April 9). At $3.48 Billion, Coffee Jumps to Second Place in U.S. Specialty Food Sales. Retrieved
March 1, 2016, from Daily Coffee News by Roast Magazine: http://dailycoffeenews.com/2015/04/09/at-3-48-
billion-coffee-jumps-to-second-place-in-u-s-specialty-food-sales/
Holly, D. (1998). The Definition of Specialty Coffee. The Specialty Coffee Chronicle.
Jed, E. (2014, May 19). NCA Study Find Shift to Gourmet Coffee Options, Java Widening Lead Over Soft Drinks.
Retrieved March 1, 2016, from Vending Times:
http://www.vendingtimes.com/ME2/dirmod.asp?nm=Vending+Features&type=Publishing&mod=Publications%3A
%3AArticle&tier=4&id=83A08163F8984212B0A59F276E13418F
Movoto. (n.d.). Demographics. Retrieved March 1, 2016, from http://www.movoto.com/reno-
nv/89511/demographics/
NCA. (2012). Coffee Shop 2012. Retrieved March 1, 2016, from SBDCNet: http://www.sbdcnet.org/small-business-
research-reports/coffee-shop-2012
NCA. (2015, January 26). Share of coffee drinking consumers in the United States in 2015, by age group. Statista.
NCAUSA. (2014). Percentage of Adults Drinking Specialty Coffee. SCAA.
Point2Homes. (n.d.). Demographics. Retrieved March 1, 2016, from point2homes.com
SCAA. (2015, December). U.S. Specialty Coffee Facts and Figures. Retrieved March 1, 2016, from SCAA
Resources: http://www.scaa.org/?page=resources&d=facts-and-figures
Shearer, N. (2015, April 8). Small businesses indicative of the state’s recovering economy. Retrieved March 1, 2016,
from University of Nevada, Reno: http://www.unr.edu/nevada-today/news/2015/nsbdc
Ward, H. (2016, April 6). The Millennial Marketplace: Shifting Values. Retrieved March 1, 2016, from The
Specialty Coffee Chronicle: http://www.scaa.org/chronicle/2015/04/06/the-millennial-marketplace-shifting-values

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Appendix
Survey Results
How old are you?
# Answer Response %
1 16-24 45 74%
2 25-34 6 10%
3 35-44 1 2%
4 45-54 5 8%
5 55-64 2 3%
6 65+ 2 3%
Total 61 100%
How important is each characteristic when considering a
coffee shop?
# Question
Not
Important
Kind of
important
Very
important
Total
Responses
Mean
1 Quality 0 13 47 60 2.78
2 Location 0 22 38 60 2.63
3 Atmosphere 1 32 27 60 2.43
4 Free Wifi 12 28 20 60 2.13
5 Price 1 35 24 60 2.38
6 Service 0 16 44 60 2.73

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The Millennial Marketplace: Shifting Values
By The Specialty Coffee Chronicle on April 6, 2015
By Heather Ward, SCAA
From a market perspective, the mushrooming Millennial generation is taking the
spotlight. Many business resources are devoted to learning how to address this target
audience. We’ll talk more about that, but first, let’s take a look at who makes up this
demographic that seems to be the talk of the town.
So, who are Millennials? It’s challenging to clearly define and pin down an age range,
as researchers are still analyzing the characteristics of this group. Many sources define
Millennials as young adults born between the early 1980s and late 1990s. As of January
2015, the U.S. Census Bureau defined the Millennial generation as ages 18-34. So,
what makes this generation so different from those that preceded it?
First off, Millennials are influential. This digital generation makes up approximately 23
percent of the population, according to the U.S. Census Bureau. It is expected to
number over 75 million young adults in 2015, surpassing the Baby Boomers and
becoming the largest living generation. Its purchasing power is approximately $200
billion annually, and its members are approaching their peak earning and spending
years (Fromm & Garton, 2013). This group is not to be ignored, and the sooner we
become aware of its habits and motivations, and engage with them, the better off we’ll
be as an industry.
For those who work in coffee, this conversation is particularly relevant. The reality is that
Gen M-ers drink more specialty coffee than any other generation. As specialty coffee
professionals, how do we make sure we are giving them the attention they need? What
information will help us become more connected and capture their loyalty? The answer
will require more than researching and digging to find statistics.
Numbers on paper will never tell us as much about Millennials as in-person interaction.
Members of this generation are personable. They want to be heard and engaged. They
desire opportunities to connect with other, and they value experiences above all. At the
counter, around the roaster, or even on online platforms—engaging with them on many
fronts has become a necessity in specialty coffee business strategy.
Millennials have shifted the value proposition, placing their experience above the
product. They derive value from being engaged in product development, advertising,
social interactions, and other facets of the marketing process (Fromm & Garton, 2013).
They are concerned with company beliefs and behaviors, and choose to purchase from
companies they can respect and relate to. Studies show that 50 percent of Millennials
say they are more likely to buy a brand they know supports a cause (Fromm & Garton,
2013). They are the most skeptical coffee-drinking group, and are more likely to
question company ethics. They are also significantly more likely than other generations

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to have heard of Rainforest Alliance, Shade Grown, and Conservation International
(NCA, 2013).
Furthermore, the digital nature of this generation—a result of proliferating
technologies—means that once Millennials interact with a product, they turn to social
media to review or ask friends for advice on making a purchasing decision. From a
Millennial’s perspective, you do not make a decision without your friends. (Fromm &
Garton, 2013). This is a group of young adults who were raised to be tech-savvy and
embrace a fast-paced lifestyle. Technology is more than a want for them; it is a need.
Coffee-consumer behavior is shifting in general, but the Millennial generation is drinking
more coffee than any previous generation of the young adult cohort. Based on the
National Coffee Association’s 2014 Annual Drinking Trends report, daily coffee
consumption among ages 18-24 more than doubled (to 51 percent) in 2014, up from 25
percent in 2000. Daily consumption among ages 25-39 increased to 62 percent in 2014,
up from 42 percent in 2000. This is an indication of a long-term trend. Not only is the
percentage of those drinking coffee increasing, but the number of cups consumed per
day is also increasing. In 2014, the average for cups consumed per day was
significantly higher among ages 18-24 at 3.3 cups, up from 2.3 in 2013. Among ages
25-39, 3.2 cups were consumed, up from 3.0 in 2013 (NCA, 2014).
Drilling down to specialty coffee consumption, 35 percent of people ages 18-24 and 42
percent of ages 25-39 drink specialty coffee daily. Millennials are more likely than older
generations to consume specialty coffee beverages. The increase in specialty coffee
consumption appears to be driven by espresso-based beverages, the favorite of this
generation. The NCA’s report shows that 21 percent of people ages 18-24 and 25
percent of ages 25-39 drank espresso-based beverages daily (NCA, 2014).
Place and time of consumption is shifting as well. Almost half of the population under 40
is more likely to consume coffee outside of the home. Millennials are most likely to
make changes to their away-from-home coffee habits, including: buying less expensive
brands of coffee, switching locations for better value, buying smaller cups, etc. They are
significantly less likely than all other generations to drink coffee at breakfast, and more
likely to drink coffee at lunch, afternoon, dinner, and evening.
Specialty coffee consumption is on the rise and research indicates continued growth.
Along with the next generation of coffee professionals who are entering the workforce
and influencing the direction of the industry, we’re seeing the influence of their cohort on
the consuming side—and the impact it is having on how we talk and think about
specialty coffee.
http://www.scaa.org/chronicle/2015/04/06/the-millennial-marketplace-shifting-values/