Jasmine Teahouse in Simsbury is a new tea shop. Earl and Lady Grey own Jasmine Teahouse and manage it as Limited Liability Corporation. Earl Grey has five years of experience managing a successful boutique coffeehouse in a similar locale in Maryland. The transition from owning and operating a teahouse will be seamless because of his passion for teas. Lady Grey is a trained herbalist with 3 years experience and has worked as a Boston teatender for 4 years. She is currently training to be a nutritionist; her knowledge of the health benefits of tea will help our marketing and sales efforts.

Jasmine Teahouse offers a wide range of teas (hot or iced), pastries, premium chocolates and tea accessories. Lady Grey is a master teatender and Earl has been studying proper brewing techniques with her for the past four months. All teatenders will receive training in the proper storage, preparation, and serving of each type.

American tea markets are expanding rapidly. Tea sales increased 165% over fifteen years. There have been approximately 1,500 tea rooms with sit-down service, up 15% from the previous year. The rise in popularity of tea in America is due to the proliferation in gourmet coffee shops in the country during the same time period. Because of the marketing efforts of Starbucks, Seattle&#8217 s Best and other coffee shops, the majority of Americans now accept expensive hot beverages to be affordable luxuries. However, fashion is always changing. Now that fancy coffee drinks have become so popular, savvy consumers are seeking out new and more original treats. Starbucks estimates that tea accounts for 7% of its annual $12 billion sales.

Our potential clientele in Simsbury is split between tourists and local residents (roughly 100,000 annually, in all seasons). We expect to be able to generate sales to current tea drinkers who will quickly recognize the quality of our products. The larger, less familiar local population will not be aware of premium teas. We will focus on our atmosphere (cozy; intimate; luxurious); our prestige-value ($high prices; the sophistication of a favorite tea type); and our variety of gift baskets, chocolates, loose and loose teas as well as our array of possible gifts (gift hampers, chocolates, tea accessories, loose teas). The location of the tea shop, its association with the town’s charm, and cooperative marketing efforts with other local businesses will all help to increase sales.

Our area has no direct competitors. Dunkin’s Donuts or a local café cannot compete against our upscale approach. In fact, the nearest Starbucks can be found 5 miles away. Simsbury&#8217’s growing wealth and gentrification are in our favor. As our upper-middle class customers seek new status markers as well as mini-luxury opportunities in a convenient, close location, we can help them achieve this.

Our carefully researched and conservative sales forecasts project sales of over $190,000. With continued moderate increases through the third year. Our projections project a net profit of more than $13,000 in the first year, with steadily rising net worth over the next few years.

The business’s owners have invested $10,330 of their own funds. Jasmine Teahouse is seeking an additional 6 year loan of $53,633 to fund our startup costs.

1.1 Mission

Our mission is to provide premium teas and chocolates in Simsbury CT. We do this by creating a fun and relaxed atmosphere.

1.2 Objectives

• Simsbury is a place where you can open a successful chocolate and tea shop.

• To have at least 200 customers on the Simsbury Market in the first year.

• One year of sales exceeding $190,000.

• Maintain an average gross margin of 58 percent.

• To produce a reasonable net profit by the end of the third year of operation.

1.3 Keys To Success

1. Experienced managers and owners. Earl Grey and Lady Grey are both highly experienced in this and related fields.

2. High Quality. We sell only the finest whole leaf loose teas, pastries or chocolates.

3. Excellent Customer Service. Each customer will receive the same respect as an honor guest in our homes.

4. No direct competition. We are the only teahouse in 20 miles.

5. We need sufficient working capital in order to survive the first one year.

6. Broad cross-seasonal selections We also offer hot and iced coffees, as well as chocolates and gift baskets, to meet seasonal variations in customer needs.