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Kate’s Coffee Katie Niedermeyer


Table of Contents

Executive Summary ……………………………………………………………………………………………………….. 4

Self Analysis …………………………………………………………………………………………………………………… 5

Trade Area Analysis

Geographical Analysis …………………………………………………………………………………………… 6

Competitive Data ………………………………………………………………………………………………….. 7

Market Segment Analysis ………………………………………………………………………………………………. 10

Analysis of Location

Location ………………………………………………………………………………………………………………. 11

Floor Plan ……………………………………………………………………………………………………………. 12

Proposed Organization

Type of Ownership ………………………………………………………………………………………………. 13

Management ……………………………………………………………………………………………………….. 13

Proposed Product

Proposed Product and/or Service …………………………………………………………………………. 14

Suppliers …………………………………………………………………………………………………………….. 15

Equipment ………………………………………………………………………………………………………….. 16

Proposed Marketing Strategies

Pricing Policies ……………………………………………………………………………………………………. 16

Promotional Strategies ………………………………………………………………………………………… 17

Projected Income and Expenses

Sales Forecast ……………………………………………………………………………………………………… 18

Building Costs ……………………………………………………………………………………………………… 19

Proposed Plan to Meet Capital Needs

Financing ……………………………………………………………………………………………………………. 19

http://bis.cratercomets.com/csb/business_plan/executive%20summary.html

http://bis.cratercomets.com/csb/business_plan/self_analysis.html

http://bis.cratercomets.com/csb/business_plan/geographical_analysis.html

http://bis.cratercomets.com/csb/business_plan/competitive_data.html

http://bis.cratercomets.com/csb/business_plan/location.html

http://bis.cratercomets.com/csb/business_plan/floor%20plan.html

http://bis.cratercomets.com/csb/business_plan/forms_and_ownership.html

http://bis.cratercomets.com/csb/business_plan/organization_management.html

http://bis.cratercomets.com/csb/business_plan/product_service.html

http://bis.cratercomets.com/csb/business_plan/suppliers.html

http://bis.cratercomets.com/csb/business_plan/equipment.html

http://bis.cratercomets.com/csb/business_plan/pricing.html

http://bis.cratercomets.com/csb/business_plan/promotional_strategies.html

http://bis.cratercomets.com/csb/business_plan/sales_forecast.html

http://bis.cratercomets.com/csb/business_plan/building_costs.html

http://bis.cratercomets.com/csb/business_plan/financing.html


Conclusion …………………………………………………………………………………………………………………. 19

Bibliography ……………………………………………………………………………………………………………… 20

Appendix

Selection Letter ………………………………………………………………………………………………… 22

Print Ad …………………………………………………………………………………………………………… 23

Business Card ………………………………………………………………………………………………….. 24

Logo ……………………………………………………………………………………………………………….. 24

http://bis.cratercomets.com/csb/business_plan/selection_letter.html

http://bis.cratercomets.com/csb/business_plan/print_ad.html

http://bis.cratercomets.com/csb/business_plan/business_card.html


Executive Summary

Coffee is becoming a more and more popular drink, which is why I am opening a

coffee shop by the name of Kate’s Coffee in Central Point, Oregon. Kate’s Coffee will offer its

customers fresh, made-to-order coffee, tea, smoothies and food items while also

differentiating itself from its competition by offering customers a relaxing, sit-down

environment to enjoy their drinks in.

Even though there are many competitors to Kate’s Coffee, it will survive and thrive

amongst others due to the different aspects the business brings to the table. Kate’s Coffee

offers customers amazing service while providing unique place to enjoy themselves. To get

customers to the business, Kate’s Coffee will promote itself using advertising, sales

promotion, and direct marketing.

The type of management a business uses is essential to its success. Kate’s Coffee will

be using is teamwork. Even though it will be run by a sole proprietor, Kate’s Coffee values

teamwork and the importance of communication. By using a teamwork management style,

the managers and employees will have a better relationship and produce better work.

Kate’s Coffee will be owned and operated by Katie Niedermeyer. There will be one

manager, who will run the day-to-day operations of the shop, along with making and

serving drinks. The manager will make a yearly salary of $29,000. There will be four

baristas, who will each make drinks and food items, clean the work area, and work the

cashier. Each of the baristas will make minimum wage and most likely work around 40

hours per week.

To start this business, Kate’s Coffee will need to take out loans. The loans that will be

needed are two SBA 7(a) loans, one for working capital and one for equipment. Each of

these loans is expected to be paid off in 7 years with a 5.5% interest rate. The monthly

payment for the working capital loan will be $146.80 and the monthly payment for the

equipment loan will be $166.37.

Based off of many calculations, Kate’s Coffee is expected to make around $178,475

per month. This calculation shows the potential for Kate’s Coffee to grow and thrive as a

coffee shop in Central Point, Oregon.


Self Analysis

When starting a business, it is important to be equipped with the skills necessary to

succeed. Without the skills, the proposed business has a more likely chance of failing,

making it a loss of investment. My proposed business, Kate’s Coffee, will succeed because of

my experience with business, my motivation, my willingness to take risks, and my

capability for personal development.

One thing that is helpful in starting a business is having previous experience in

business or training in the specific field of the proposed business. I personally have not had

any experience working in a coffee shop; however I have had experience in starting a

business. Last year, my partner and I started selling pizza in our school’s market. Once

every week, we picked up four pizzas to sell during lunch that day. This was a good

experience for me because it showed me how the different aspects of a business impact

each other. Another business experience that I have had is through my internship at

Ravassipour Orthodontics. While interning there, I got to see what it takes to run a private

practice, and how the type of people that work at a business can affect it tremendously.

Even though I haven’t had the experience through work or a job, I have been able to see

what makes a business work and how there are many factors that determine a business’

success.

Every great entrepreneur has strengths and weaknesses. As far as myself, I have

many of the same strengths of an entrepreneur, but also have some weak spots. One of my

strengths is my drive and motivation to succeed. In academics and sports, I will do anything

to be successful. This is necessary when starting a business because there will be

challenges that have to be overcome and in many instances like that, motivation to succeed

is needed. Another one of my strengths is my communication skills. Through sports and

community events, I have had to communicate with others what I want them to do or what

they need to do. This is a useful skill to have because without being able to communicate in

a business, things may be forgotten and doesn’t help the business to succeed. One of my

weaknesses as an entrepreneur is technical knowledge in the area of the business. I don’t

know how to work an espresso machine or how to go about purchasing goods. But, these

skills can be easily and quickly learned. So, even though I have both strengths and

weaknesses, I think I would make a good entrepreneur.

One of the biggest risks in life is putting an idea out into the public and starting a

business. Investing all of your time and money into a start-up can put a lot of pressure on

its success. But, with all of the risks, I would still put everything on the line and start my

own business. My willingness to take risks goes along with my need for achievement. Since

I would be starting a business, which is a high-risk, my motivation will help the business

succeed. Others who are not motivated may think that the risks outweigh the feeling of

success that comes with starting a business. AA management expert once said, “When a


person starts and manages his own business he doesn’t see risks; he sees only factors that

he can control to his advantage” (The Entrepreneur Quiz). If a person possesses this trait, it

doesn’t necessarily mean that the business will succeed; it just means that they are more

likely to start a business.

Once a business is up and running, it is imperative to stay up to date in the field and

to keep developing new ideas about the business. I plan to do everything to make my

business as best as it can be. To do this, I will make sure to continue developing my skills in

the area of my business. This will help me stay with the latest in that field and improve my

companies’ standing among its competitors. The way I will do this is always coming up

with new ideas for my business and staying on top of my competitors.

Starting a business requires more than an idea; it requires the skills necessary to

help it succeed. It takes motivation to succeed, a person has to be willing to take risks, and a

person has to be capable to continue to develop in the field of the business. With all of these

skills, a business will have a greater chance of succeeding.

Geographical Analysis

Choosing the correct location for a business is a major decision and can affect the

success of a business greatly. Jackson County, Oregon is a unique location with many

benefits to it that other cities and counties do not possess. Its location, climate, and

topography make Jackson County a great place to start a business.

Jackson County is an interesting location. Surrounded by mountains, it creates

unique opportunities while also creating many challenges. One of the challenges

experienced is the shipping and transporting of products. Since the Jackson County is

located within a valley, it makes it more difficult for trucks to transport products during

harsh weather, which is experienced quite often in the valley. One benefit to the location of

Jackson County is Interstate-5 runs right through the center, making it simple for trucks to

deliver to businesses (once they enter the valley). Another benefit to the location of Jackson

County is its location in relation to the ocean. Since its location is quite close to the Pacific

Coast, it opens up endless possibilities for international trade and transportation of foreign

products. Also, located right in the heart of Jackson County is the Rogue Valley

International Airport. This is an added benefit due to its ability to ship and receive products

anywhere in the country. Although there are some challenges with its location, Jackson

County proves to be a good location for a business.

The climate of Southern Oregon is quite mild, with distinction between the seasons.

The summer in Southern Oregon is hot and dry, with temperatures ranging from 85 to 100

degrees, with recordings breaking around 115 degrees. The average rainfall in Southern

Oregon is around 18 to 20 inches per year, with the majority falling starting in October.


Southern Oregon is lucky in the sense that is rarely receives any severe weather or storms,

but with a dry summer, it is more susceptible to wild fires in the mountains. Snowfall is

rarely seen at community-level elevations, but is quite common at higher elevations. The

climate of Southern Oregon doesn’t affect the distribution of products harshly, but it can

slightly. With snowfall on the I-5 passes, it makes it more difficult for trucks to transport

items into and out of the valley. But, with the good amount of rainfall that is received here,

it makes it well suited for growing crops. Since Southern Oregon has a mild climate, with

few exceptions, it makes a good location for a business.

The topography of Southern Oregon is quite unique. It is surrounded by mountains

on every side; the Cascades to the East, the Coastal Range to the West, the Umpqua Divide

to the North, and the Siskiyou Mountains to the South. The elevation of Southern Oregon

ranges from 1,300-1,400 feet, with surrounding areas around 3,000 to 9,000 feet. This

causes difficulties during harsh weather on the passes to get in and out of the valley. But, an

upside to the mountains is the industries that are enhanced by them. Recreational

activities, like skiing and hiking, are greatly affected by these mountain ranges in a good

way. They draw many tourists which then improve local business.

Southern Oregon proves to be a great place to open a business, even with its

downfalls. With its location, climate, and topography, Southern Oregon differs itself from

other settings and shows its capacity for a business.

Competitive Data

While starting and running a business, it is important you know who your competitors are.

More importantly, knowing who your direct and indirect competitors are will help your business

establish itself among its competitors.

Direct Competitors

Similar Characteristics

Similar Operations

Similar Capabilities

Similar Strategies

Dutch Bros Gourmet coffee drinks

Tea

Locally owned

Friendly workers

Coffee made fast

Sell clothing items

Have many promotional

Good Bean Sit down experience

Locally owned

One location

Friendly workers

Offer pastries and food

Sell clothing items


Direct Competitors

Major Products Price Location Promotional

Dutch Bros Whole Bean

Coffee

Made-to order

beverages

Bottled

beverages

Merchandise

Smoothies

Medium 1075 E Pine St Central Point, OR

Twitter

Text

notifications

Facebook

Website

Good Bean Whole Bean

coffee

Made-to-order

beverages

Pastries and food

Medium- High

165 South Oregon St. Jacksonville, OR

Website

Indirect Competitor Location Why Indirect Competitor

McDonald’s 43 S 9th St

Central Point, OR

(541) 664-1663

McDonald’s is an indirect

competitor because they sell

coffee, along with other things.

Even though coffee isn’t the main

thing they sell, they are still a

competitor of a coffee business.

http://dutchbros.com/

http://www.goodbean.com/


SWOT Analysis

Since Kate’s Coffee is a coffee shop, it has many competitors. One important task of running

a business is determining the company’s competition. By identifying the competitions strengths and

weaknesses, a business can better itself and differentiate itself from its competition.

SWOT Analysis of Kate’s Coffee:

SWOT Analysis of Good Bean:

SWOT Analysis of Dutch Bros:


Market Segment Analysis

One of the most important aspects of a business is how appropriately they market to

the correct group of people. Markets are grouped in sections based off of similar

characteristics. If a business correctly identifies their target market, they will see more

success and reach its core customers more easily. Target markets are broken into two

categories: demographics and psychographics. Demographics are the measurable data

about a group of people, for example their age or income level. Psychographics are the

immeasurable things, such as values and opinions.

The demographics of my target market are directed at 18 through 34 aged Hispanic-

American females with a college degree. These measurable descriptors are characteristics

that define the types of people that will be most receptive to purchase coffee. I feel that

these characteristics will be my best customers for many reasons. According to SBDCNet,

drinkers are 65 percent more likely to have a household income of $100K+. Also drinkers

are 70 percent more likely to have a post graduate degree. Forty-two percent of drinkers

aged 18-34 purchase their coffee at a coffee shop. According to Connecticut by the

Numbers, 76 percent of Hispanic-Americans drink coffee, whereas only 47 percent of

African-Americans and 64 percent of Caucasian-Americans drink coffee.

Demographics

Age: 18-34

I chose these demographics for my business because of the research that I did. The

research showed that Hispanic-Americans drink the most coffee out of other races and

that females drink more coffee when compared to males. I also found while researching

that the age group that drinks the most coffee is 25-45. Also, research shows that people

who make a good income tend to purchase coffee drinks more often than others.

Sex: Female

Race: Hispanic-

Americans

Income Level:

60,000-100,000+

Education: Post Grad Degree

The psychographics of my target market are Experiencers, Achievers, and

Innovators. Experiencers are young, enthusiastic, and impulsive consumers that spend the

majority of their income on fashion, entertainment, and socializing. Achievers are image-

focused and active consumers that prefer high-end products to show peers their success.

Innovators are successful people and active consumers that value image. Their purchases

reflect their taste for high-end products and services (Strategic Business Insights).


Choosing the correct target market for a business is vital for its success. By

incorrectly identifying their target market, a business subjects itself to loss of profit and the

inability to reach its core customers. Identifying the correct market is an important step in

starting a business, and should not be overlooked in the first stages of the business.

Location

Kate’s Coffee will be located at 26 E Pine St, Central Point, OR 97502. This building is located in the main part of Central Point, situated along the main street running through this city. The landlords of the location are Nathan Barton and Allison Spector.

Kate’s Coffee’s competitors range from short to great distances away. The Human

Bean is 0.3 miles away, which is very close. The reason that this will work however is because Human Bean only offers drive-thru coffee, while Kate’s Coffee offers customers a relaxing spot to sit and enjoy their coffee. Dutch Bros is 0.6 miles away, Good Bean 5.8 miles away, and McDonald’s is 0.5 miles away.

Car traffic is the most needed type of traffic to help this business succeed. Foot traffic is

often not common in Central Point, due to the four lanes of traffic going through town. As people drive by Kate’s Coffee, they will be heading into town which means heading to and from work. According to Jackson County Traffic Volume, around 14,000 cars travel on East Pine Street every day, which is great for businesses.

Psychographics

I chose this psychographic for my

business because I think it represents the

market well. Innovators are active

consumers, which connects with the

income level of the demographics of my

business.

Innovators:

Innovators are successful, sophisticated, take-charge people with

high self-esteem. Because they have such abundant resources,

they exhibit all three primary motivations in varying degrees.

They are change leaders and are the most receptive to new ideas

and technologies. Innovators are very active consumers, and their

purchases reflect cultivated tastes for upscale, niche products and

services.


Floor Plan

This is what the floor plan of Kate’s Coffee will look like. The building is 3040 square feet,

with a 40 square foot bathroom and an employee room in the back.


Type of Ownership

The type of ownership my business would have is Sole Proprietor. This would be best for

my business for many reasons. First of all, as the sole proprietor, I would receive complete

managerial control. This is useful when compared to a partnership where partners may disagree on

certain things. Another benefit to a sole proprietor is the owner gets to keep all of the profits.

Another benefit to a sole proprietor is since there are smaller amounts of capital; it is easier to

organize your business.

Management

The type of management that a business has can affect the success of the business greatly. It also impacts the customers and the way they are treated. If a manager can be effective in their job and push their employees towards success, the business will thrive. This section will go over management styles, organization, and salaries for employees.

There are three different types of management styles and each has their pros and cons. The first one is participatory style. In this style, the manager gives out individual worker to the employees and rewards for motivation and jobs well done. The second style is directing. In this style, the manager sets specific standards and expectations for their employees and makes the tough decisions. The last style of management is teamwork. In this style, the manager motivates their employees to work together on projects and communicates very well with their staff. The proposed management style of Kate’s Coffee is the teamwork management style. This style was chosen because it allows the employees to engage with each other and pool their knowledge together. Also, it is essential based off of communication, which is crucial when working in a coffee shop.

Kate’s Coffee will have one manager that oversees the day-to-day tasks in the shop serve customers alongside the four baristas, which will make and serve drinks and food and handle the customers. The baristas will also be in charge of cleaning the work area and answering any questions the customers may have.


The store manager will be making a yearly salary of $29,000, which is based off of their work and participation in the business. The baristas will make minimum wage, which in Oregon is $9.25/ hour. They will each work around 40 hours/week, give or take a few hours. This will total in around a $16,800 yearly salary.

Yearly Salaries

Store Manager $29,000 Barista $9.25/ hour.

40 hours/week $16,800 yearly

Businesses that have a good management style often are more successful. I believe

that using a teamwork style management in Kate’s Coffee will prove to be successful and

the business will thrive because of it. I see this as the case because coffee shops rely on

communication and helping each other, which are the main points of a teamwork style

management.

Proposed Product

The product I am providing is a coffee shop in Central Point, Oregon that offers a relaxing

experience while providing high-quality made to order drinks. My product is unique because in this

city is there no sit-down coffee shops like I’m offering. This style of coffee shop is in demand in the

Rogue Valley because there is a slim number of locally-owned, sit-down shops and none in Central

Point. A company’s product is what the company is selling and the product mix is the total number

of products that a company sells. The varieties of products that Kate’s Coffee will be selling are

made-to-order coffees, teas, hot chocolate, smoothies, and house-made pastries and foods.

Products Item:

Arabica coffee beans

Product Line:

Lattes

Mochas

Americano

Breve

Tea

Frozen drinks

Smoothies

Hot Chocolate

Product Width:

Stash Tea


Product Depth:

Latte- vanilla, caramel,

Tea- black, green, herbal,

Smoothies- Torani smoothie mix

Frozen drinks- frozen lattes, frozen mochas, frozen hot chocolate

Suppliers

Kate’s Coffee Supplier List

Company

Name

Address Phone

Number Web Address Rating

Stash Tea 16655 SW 72nd

Ave Suite 200

Tigard, Oregon

97224

800-547-1514 http://www.stashtea.com 4 stars

Product Offerings

Stash Tea offers many different types of teas including black, oolong, green, white, herbal, and decaf teas. This company allows buyers to purchase online or through a salesperson.


Company

Name

Address Phone


Barista Pro Shop

5888 Wright

Drive Loveland,

CO 80538

(970) 461-2555

http://www.baristaproshop.com 4 stars

Product Offerings

Barista Pro Shop is a warehouse that has been serving the coffee industry with thousands of high quality products. They offer premier brands of coffee, tea, smoothie mixes, equipment, and more. They also offer articles, tools, and other information from professionals to help businesses.


Company Name Address Phone


Kaldi Gourmet Coffee Roasters

278 Raleigh Street

Wilmington, NC

28412

910-350-0990

http://www.kaldi.com 4 stars

Product Offerings Kaldi Gourmet Coffee Roasters is a wholesale coffee and equipment supplier that specializes in commercial coffee equipment.


Equipment

Equipment List

Piece of Equipment Price

Astoria Pratic Avant Sae 2 Group Automatic Commercial Espresso Machine

$4,785.20

Vitamix 1230 Drink Machine Two-Step Timer

$517.62

Bunn MHG Multi Hopper Grinder $1,164.90

Astoria Super Jolly E Electronic Espresso Grinder Commercial Espresso Machine

$1,435.00

NCR Silver POS Cash Register System $369.95

Coffee Maker36725.0100 BUNN AIRPOT, SST 3.8L-6/CASE

$253.77

27" Refrigerated Countertop Display Case $869.00

Arctic Air AUC48R Under counter/Worktop Refrigerator

$1,180.00

Ice-O-Matic ICEU150HW Under counter Half Cube Ice Maker - 185-lbs/day, Water Cooled, 115v

$1,960.53

Arctic Air AF23 26.75in Single Section Reach-In Freezer, Solid Door 115v

$1,499.00

Nockeby Couch by Ikea $599.99

Radio System $199.99

Hypercom® Optimum T4220 Credit Card Machine - Features Ethernet Port and Internal PIN Pad

$169.99

Arctic Air AR23 26.75in Single Section Reach-In Refrigerator, Solid Door 115v

$1,345.00

Total $16,348.95

Pricing Policies

Pricing is a very important concept in the business world. If done incorrectly, it can

drastically affect a business. If priced too high, a business will turn away many customers and in

turn, loose profit due to the loss of customers. But if priced too low, a business will not make

enough profit to stay open, and end up failing. For a business to stay open while maintaining a good

amount of customers, they must price their products correctly.

I will be using markup pricing to determine the prices of my products. I will use this

way of pricing because it is the most common way of pricing used by other retailers

and is an understandable way to price products.

I will be using the Odd-Even pricing technique along with the Promotional Pricing

technique. I will use these ways of pricing because I feel like they work quite well for


businesses and customers feel like they’re getting a much better deal when a

product’s price is reduced for a short amount of time.

My strategy for new product introduction is to use skimming pricing. I will be using

this strategy instead of penetration pricing because I feel like I would lose

customers if I were to raise the prices of a product after releasing it. Instead I will

start out with a higher price, and then lower the price if needed.

If a business does price their products correctly, they have a much greater chance of

succeeding due to the fact that they won’t lose as many customers and they will maintain a steady

income of profit. But, if done incorrectly, a business subjects itself to lose of profit, leading to its

closing, or lose of customers.

Promotional Strategies

Promotion is the only way customers know about a product. Without it, even the best

product in the world would not be sold because no one knew about it. There are many different

ways to promote a product, ranging from free to costly promotion. A great example of a promotion

is the “Got Milk?” campaign. Everyone knows about it and has seen it.

I have studied all of the different types of promotional strategies and their pros and cons.

The different types of promotional strategies are personal, advertising, publicity, direct marketing,

and sales promotions. Personal is any face-to-face contact between the buyer and the seller.

Advertising is any paid for content promoting the business’s product, for example TV commercials

or an internet ad. Publicity is a press release or news of the product that creates demand for the

product. Direct marketing is aimed directly at a target customer asking them to take action. Sales

promotions are any displays or price incentives to get customers in the store. The types of

promotions my business would use are sales promotions, advertising, and direct marketing.

Sales Promotions- My business would use sales promotions to get customers in the

know about its customers. One example of a sales promotion that would be used is a

punch card. After a customer purchases ten drinks, they get one free cup or 50% off

one piece of merchandise. Another sales promotion that would be used is contests.

Each month, there would be a contest for who could take the most creative picture

using their Kate’s Coffee t-shirt. There would also be a theme each month. For

example, one month the theme would be travel, which means who can take the most

creative picture while traveling in the Kate’s Coffee t-shirt.

Advertising- After opening the business, I would pay for advertising for the

business. I would advertise through the internet and the radio, where we would get

the most response. I wouldn’t advertise on TV’s right away because it would require

a commercial, which would cost more money than running an advertisement on the

internet or radio.


Direct Marketing- The last promotion that I would use for my business would be

direct marketing. This consists of advertising directly to a target customer that asks

them to take action. For my business, this would include asking the target customer

to visit the store location and send coupons like 10% off one 16 oz. drink or 20% a

purchase of one 16 oz. drink and a food item.

It is very important for a business to implement effective promotional strategies. Without

them, a business will not be able to inform customers about its product. With the promotional

strategies that I chose for my business, I feel that I will be able to reach my core customers and

promote my product to its greatest potential.

Sales Forecast

Company % of Market Share

% of Target Market

10% Estimated Sales Estimated Earning

Kate’s Coffee

13% 7,139

713 $356,950 $178,475

Dutch Bros 30% 16,475 1,647 $823,750 $411,875 The Good Bean

12% 6,590 659 $329,500 $164,750

Human Bean

25% 13,729 1,372 $686,450 $343,225

McDonald’s 8% 4,393 439 $219,650 $109,825

Mellelo’s Coffee

12% 6,590 659 $329,500 $164,750

Estimated Monthly Spending

$50

Total Target Market Population

54,919

I derived these estimated earnings by first dividing up the market among my competitors

and my business. I then multiplied that percentage by the total target market population and found

the amount of customers each would receive. Since 10% of your customers purchase 90% of your

product, I took ten percent of the amount of customers for each business. I then determined that the

estimated monthly spending would be $50. To find the estimated sales, I multiplied $50 by the

amount of customers. The estimated sales were then divided by two since businesses only make

about 50% of their potential profits.


Building Costs

Financing

Conclusion

Kate’s Coffee is a coffee shop unique to Central Point, Oregon. Because Kate’s Coffee is the

only coffee shop in this location that offers customers seating in a relaxing environment, it will

draw in a large crowd of people. After researching the valley and determining our target market,

Kate’s Coffee selected Central Point as the location for opening our business. Central Point offers a

large amount of traffic in a small town, offering the shop large amount of publicity. I am very

confident in this business and eager to watch it succeed.


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Appendix

Selection Letter

Kate’s Coffee Katie Niedermeyer 4178 Sunland Avenue Central Point, OR 97502 (541) 727-2657 April 2, 2015 Mr. Frances Hedge SBA Loan Officer Bank of America 845 N. Highland Street Medford, OR 97501 Dear Mr. Hedge: I have a great idea for a business and am very hopeful about its success. My plan is for a sit-down coffee shop in the city of Central Point, OR that serves coffee, tea, and pastries, and I am interested in discussing financial options.


Many people nowadays start their mornings with a cup of coffee or tea but still enjoy relaxing while doing so. Other coffee vendors in town don’t offer their customers the opportunity to sit down and drink their coffee. My business idea differs from these other businesses by offering customers high quality, made-to-order drinks with a relaxing, sit-down environment to spend their mornings. I am very hopeful about this idea and motivated to make it succeed. I look forward to further discussing my ideas with you, and would like to schedule a meeting. You can reach me at my email [email protected] or at my phone (541) 727-2657. Thank you for your time and consideration. Print Ad


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