Opportunity

Problem

Washington State has a shortage in coffee shops where customers can find high-quality coffee and freshly baked pastries in a more affluent market.

Solution

JJB offers a variety of coffee and espresso products that are all made with high-quality, imported coffee beans. JJB makes sure that every customer is satisfied by its coffee and espresso products.

Market

Hot coffee products are in high demand because Washington enjoys a cool climate for eight of the twelve months. The remaining four warmer months of the year see a steady demand for iced coffee products, as well as a higher demand for hot coffee products. The morning hours are the busiest, with little activity during the rest of the day.

Competition

The local competition is not as strong and doesn’t offer the same level of customer service and product quality as JJB. Local customers are looking for a high quality product in a relaxing atmosphere. They are looking for a classy, unique experience.

Why Us?

JJB is managed by two partners. These partners represent sales/management and finance/administration areas, respectively. The partners will finance the startup from their savings. It will also provide a financial cushion in the initial months.

Expectations

Forecast

JJB predicts that sales will increase as shown below over the three year period. JJB should break even by the fourth month of its operation as it steadily increases its sales. While profits for this period are expected be low in the first two, they will increase in the second year. We project $140,000 investment by the founders.

Financial Highlights by Year

Finance is required

Startup requirements

1. Startup expenses totaling $64K, including $3K legal fees, $20K property renovations, $40K expensed gear, and $1K others. These expenses are not included in the initial balance as they were incurred before launch.
2. Cash in the bank as a deposit of $70K (in initial balance)
3. Additional current assets equal to $12K (in the initial balance)
4. Long-term assets up to $65 (intial balance)

Funding

1. $110K initial investment made by the founders.
2. SBA $100K 10-year loan (in initial balance).
3. $1K account payable at startup (in initial balance)