Turtle Creek Business Plan


Published on

  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Turtle Creek Business Plan

  1. 1. Business Plan
  2. 2. Mission Statement <ul><li>Turtlecreek Coffee will make its best effort to create a neighborhood gathering place where customer can socialize with each other in a unique comfortable and relaxing atmosphere while enjoying the best high quality specialty coffee and chilled drinks in town </li></ul>
  3. 3. Market Summary <ul><li>Stittsville: The Perfect Launch Market </li></ul><ul><li>By launching Turtle Creek Coffee in the Stittsville market we maximize our potential for success due to several factors: </li></ul><ul><li>• The highly affluent local population </li></ul><ul><li>• High percentage of mother's with young children </li></ul><ul><li>• Ever-changing upscale student population </li></ul><ul><li>• Excellent auto and pedestrian traffic by our location </li></ul><ul><li>• Prime site location </li></ul>
  4. 4. Market Summary <ul><li>According to the Coffee Association of Canada, the average coffee drinker consumes three cups per day. </li></ul><ul><li>Canadians drink 15 billion cups of coffee a year, more per capita than the US or Europe. Per capita, </li></ul><ul><li>Canadians drink 402 cups of coffee per year, 77 more than in the U.S. and 152 more than in Europe. </li></ul><ul><li>Canadians spend $600 million a year on coffee for at-home consumption. </li></ul><ul><li>Canadians spend between $2.2 and $2.5 billion a year on brewed coffee (Oxfam) </li></ul><ul><li>81% of Canadians drink coffee occasionally and over 63% of Canadians over the age of 18 drink coffee on a daily basis making coffee the # 1 beverage choice of adult </li></ul>
  5. 5. Business Concept <ul><li>The keys to success are: </li></ul><ul><li>1. Creating a relaxing upscale interior design with a children's playground to attract parents and childcare providers. </li></ul><ul><li>2. Superior-tasting products </li></ul><ul><li>3. Prime site selection with an upscale affluent population. </li></ul><ul><li>4. Ongoing, aggressive marketing </li></ul><ul><li>5. Highly trained and friendly staff </li></ul><ul><li>6. Multiple revenue streams including gift items, gift baskets and coffee gift/frequency cards in addition to coffee, pastry, chocolates, tea, juice, water and an original menu. </li></ul><ul><li>7. Our unique counter service, take-out system and our convenient drive-thru will allow guests to choose the method of service best suited to their schedules. </li></ul>
  6. 6. Competition <ul><li>Competition is dominated by the presence of Starbucks, fast becoming the &quot;McDonalds&quot; of the specialty coffee industry. Other major chains are Second Cup, Zavida's Coffee, and Timothy's World Famous Coffee. All of these chains are considered &quot;clones&quot; of Starbucks. Few vary much from what is perceived as a proven formula for success. </li></ul>
  7. 7. Competitive Edge <ul><li>A significantly higher quality, better tasting coffee product. Our coffee is roasted weekly so our customers always get the freshest coffee in town. </li></ul><ul><li>Innovative products, like a line of frozen custard, which can be made into cones, shakes, concretes and </li></ul><ul><li>Birthday cakes. At the present we will be the only company in Canada serving frozen Custard. We will be the only store in Stittsville to offer specialty ice cream products and ice cream cakes. </li></ul><ul><li>An ambiance superior to all other coffeehouses in the area with upscale look. </li></ul>
  8. 8. Competitive Edge <ul><li>The only coffeehouse to provide regular weekend evening entertainment. </li></ul><ul><li>A wider variety of popular drinks than our competitors, including flavored coffee drinks, tea, chai, cocoa, juice and sugar cane sodas. We have several drink options for people who don't drink coffee: tea, cocoa, juice and smoothies. </li></ul><ul><li>Our Internet website will include sales of whole coffee beans, tea, chocolates, gift items, coffee club,  and gift baskets. </li></ul><ul><li>We will also have a unique children’s menu with a focus on healthy fun foods. </li></ul>
  9. 9. Financial Plan <ul><li>Our profits were calculated using the industry average of $4.00 per customer coffee transaction. (The following figures are based solely on coffee sales, not food, desert items, or our line of old fashioned ice cream. These sales can add close to $10,00.00/month) </li></ul><ul><li>They are also based on less than 1% of the traffic stopping at our coffee house. </li></ul><ul><ul><li>This plan should include expected annual sales and profits for the next three years. </li></ul></ul><ul><ul><li>Use several slides to cover this material appropriately. </li></ul></ul>
  10. 10. Financial Plan <ul><li>Year One: </li></ul><ul><ul><li>Expected Cash and Credit Sales $281,636.00 </li></ul></ul><ul><ul><li>Total payments $268, 444.00 </li></ul></ul><ul><ul><li>Cash flow Surplus $13,191.00 </li></ul></ul><ul><ul><li>Based upon average start up sales after 5 months. Initial losses expected during the 1 st quarter due to building of client base and advertising costs. </li></ul></ul><ul><ul><li>Figures are based on maintaining a Gross Profit Margin of 65% for all products sold & 5% employees Raise at end of 1 st and 3 rd quarters </li></ul></ul>
  11. 11. Financial Plan <ul><li>Year Two: </li></ul><ul><ul><li>Expected Cash and Credit Sales $448,518.00 </li></ul></ul><ul><ul><li>Total payments $279,294.00 </li></ul></ul><ul><ul><li>Cash flow Surplus $169,224.00 </li></ul></ul><ul><ul><li>Based upon average start up sales after 5 months. Initial losses expected during the 1 st quarter due to building of client base and advertising costs. </li></ul></ul><ul><ul><li>Figures are based on a 5% growth Rate after 6 months. </li></ul></ul><ul><ul><li>These figures are based on an average of 360 customers per day. </li></ul></ul>
  12. 12. Personnel Plan <ul><li>Personnel Plan </li></ul><ul><li>The price of labor has been calculated at two and one half employees working 15 hours a day seven days a week. </li></ul><ul><li>  As weekend hours will be shorter and slower and we will be closed on Sunday, there will be a savings in labor. The labor does not include  the owner taking place of one of the workers further reducing the outside payroll. </li></ul><ul><li>The management structure will consist of two joint managers, one assistant manager, and a number of baristas (Italian for bartender) </li></ul><ul><li>Well-trained volunteers from the Turtle Creek community will round out the staff. </li></ul>
  13. 13. Financial Requirements <ul><li>Construction $74,270.00 </li></ul><ul><li>Training/Consulting $15,200.00 </li></ul><ul><li>Marketing/Website $21,750.00 </li></ul><ul><li>Opening Inventory $5,000.00 </li></ul><ul><li>Working Capital (2 mnths) $50,000.00 </li></ul><ul><li>Equipment, furnishings $137148.65 </li></ul><ul><li>Dividends for Investors $10,000.00 </li></ul><ul><li>Total $320368.65 </li></ul>
  14. 14. Resource Requirements <ul><li>Funding Sources </li></ul><ul><li>Owner’s Contribution $20,000.00 </li></ul><ul><li>Shares $100,000.00 </li></ul><ul><li>Business Development Bank $100,00.00 </li></ul><ul><li>CSBF Equipment Funding $90,00.00 </li></ul><ul><li>Young Entrepreneur Funding $15,000.00 </li></ul><ul><li>Total $325,000.00 </li></ul>
  15. 15. Risks and Rewards <ul><li>Possible future competition in Stittsville. </li></ul><ul><li>Risks involved with new ventures, unknown products. </li></ul>
  16. 16. Rewards <ul><li>Class “A” convertible preferred shares. </li></ul><ul><li>Turtle Creek Coffee Inc. Is releasing 200,000 shares at $1.00 per share. </li></ul><ul><li>Shares will pay a cumulative 10% per year for 5 years. </li></ul><ul><li>After 5 years Turtle Creek will buy back the shares, or shareholder will have the option of converting them to common shares. </li></ul><ul><li>Minimum investment in Class “A” shares is five thousand dollars, increasing by two thousand dollars after the initial purchase. </li></ul><ul><li>Class “A” shares may be purchased through a self-directed RRSP </li></ul>
  17. 17. Rewards <ul><li>Class “B” Common Shares. </li></ul><ul><li>Turtle Creek Coffee Inc is releasing common shares at $1.00 per share. </li></ul><ul><li>Shares will pay a yearly dividend based on percentage of profits. </li></ul><ul><li>Minimum share purchase is $2,000.00. </li></ul><ul><li>Shares can be purchased on contract of $200.00 per month over 10 months. Or they may be paid for by one lump sum payment. </li></ul>
  18. 18. Key Issues <ul><li>Near term </li></ul><ul><ul><li>Secure investors by June 15th </li></ul></ul><ul><ul><li>Secure financing by June 30th </li></ul></ul><ul><ul><li>Sign Lease by July 1 st 2007 </li></ul></ul><ul><ul><li>Order equipment, and have it delivered prior to opening. </li></ul></ul><ul><li>Long term </li></ul><ul><ul><li>State consequences of decision postponement. </li></ul></ul><ul><li>Leasing agent is planning construction for end of June. </li></ul><ul><li>In order for us to be open by mid September we need to sign the lease July 1 st . </li></ul>