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Central Point Grinds Talli Van Wey

CENTRAL POINT GRINDS

Business Plan

Crater High School

227 East Pine Street,

Central Point, OR 97502

Talli Van Wey

May 17, 2017

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Table of ContentsIntroduction 3

Executive Summary 3

LEAN IN Business Canvas 4

Self-Analysis 4

Analysis of the Business Situation 6

Geographical Analysis 6

Competitive Data 8

Trade Area Analysis 12

Market Segment Analysis 12

Analysis of the Location 14

Location 14

Floor Plan 15

The Proposed Organization 16

Type of Ownership 16

The Proposed Product or Service 17

Proposed Product and/or Service 17

Suppliers 17

Equipment 19

Proposed Marketing Strategies 20

Pricing Policies 20

Promotional Strategies 20

Financing and Investment Sources 22

Financing 22

Financing Fund Sources 22

Conclusion 23

Annotated Bibliography 24

Appendix 25

Selection Letter 25

Print Ad 27

Business Card 28

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IntroductionExecutive Summary:

Central Point Grinds provides the Rogue Valley community with an organic café which uses only fresh and locally grown ingredients to provide consumers with a healthy meals. Our café offers sections for live entertainment, coffee bar, patio, and a local billboard. With our great customer service, food, and atmosphere Central Point Grinds will be a great addition to the Rogue Valley. Central Point Grinds will be owned and operated by Central Point Grinds LLC, an Oregon limited liability corporation managed by Talli Van Wey. All members include Talli Van Wey (60%), Anthony and Emily Van Wey (10%), Dale Van Wey (15%), and Joe and Cindy Stroble (15%).

As we prepare for our grand opening, a detailed and drool-worthy menu has been prepared. With locally grown ingredients, freshly prepared meals, and a wide variety of options, everyone can find their favorite dish at Central Point Grinds. Even though our main focus is on espresso based products, we make sure not to neglect our other product lines. With espresso drinks, cold chillers, quick snacks, meals, and sweat treats it’s always a good time to stop in and hang out with us! Not to mention that within each line we carry there are more than ten options to choose from!

As for the finances, Central Point Grinds have come up with detailed and safe financial plan where we are ready to open with funds set asides for emergency case-scenarios. As for financial projections and estimates we are estimating an average start-up cost of roughly $116,000; with a projected sales earnings of $300,000 in the first year alone, and we stand to see a 9% increase in the following year.

Central Point Grinds is named after the local community, Central Point, and coffee grinds. Located on one of the main streets in Central Point, Central Point Grinds is a quick and close stop for community member to come in and enjoy a cup of coffee. Central Point Grinds will have a fun and friendly atmosphere, allowing community members to enjoy themselves while dining on high quality coffee and food. Once fully established, Central Point Grinds will begin work on expanding our space and opening a patio open to all guests, we will be giving customers to sit outside and enjoy the weather on warm, sunny days.

Our sole desire is to give everyone the chance to have organic and healthy food in a positive and fun setting. In order to accomplish this goal and make ourselves known to the local community we plan to use a variety of sales promotions, daily social media posts/updates, and public relations. By using social media, we can make a name for ourselves and get the word out about our business without and costs. With the help of sales promotions and publicity, we expect to see a lot of foot traffic and earnings within the store, since there are no other options similar to our business found within Central Point.

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LEAN IN Business Canvas:

Self-Analysis:

I am qualified to run a business such as this because I have a passion for people and food. I love to cook and bake, I am a fast learner---so learning how to use certain specialized machines won’t be difficult, and I have experience in business and cash-handling, through DECA and my past job experience. It’s important to be dedicated and equipped with the necessary skills to run a business because you need to be somewhat aware for what you’re in store for. You will need to be able to handle the problems that arise unexpectedly how to deal with them. This can be an angry customer or perhaps a situation where a shipment of coffee doesn’t arrive; how are you going to problem solve? Running a business takes patience, time, and often a lot of hard work and dedication. When problems arrive and when it gets tough, you will need to be able to believe in your idea and work through it. You’re going to have to learn that your business will become your child, you will have to nurture it, hold its hand while it grows, and at times support all of it by yourself.

From the time I was five, playing with my kitchen set and serving plastic cupcakes to my parents, I have always had the passion to cook and share my food with others. Since then my skills have vastly improved, and I no longer rely on my trusty Easy-bake oven to make my cupcakes, and I hope to share them with the Central Point community. I do have experience in the workings business and public relations; through specialized clubs such as DECA and FFA or through my previous job as a bookstore clerk. In DECA and FFA I have learned how to appropriately market specialized topics, deal with public

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and human relations, and business management. In High School I participated in the HR Block Challenge where I learned how to manage my finances and make smart investment choices.

I have many strengths and weaknesses, such as how I am a good friend and people person. I believe that I am a good empathizer and advice giver; and I also, I have a background in business so I understand how to balance both frames of thinking. I didn’t go to college and receive a degree in business, nor did I grow up around it, but I did go to Nationals for DECA. I did participate competitively, and I do understand how businesses are ran, therefore I believe I would be a strong owner for Central Point Grinds. I do struggle with trusting others to fulfill certain tasks, and often opt to take on extra tasks in order to ensure everything is handled a specific way. This is problematic because a person can only do so much, as an owner and manager, my goal is to be able to delegate tasks to all of my co-workers and be able to count on them. A way to ensure this is during the hiring process, where I will call all of the references, check their work history and skills, and make sure I have a good read of what type of person they are.

I am a risk taker; I love the rush of emotion and adrenaline that fills you when you take on a daring task. As a business owner, I believe that you need to be at least a little bit of a risk taker; you need to be willing to try something new, perhaps something never seen before. This is all in order for you to make yourself stand out from amongst your competition, which is a huge must when running a business and establishing clientele. An example of this can be seen through my participation in DECA, a scholastic extra-curricular activity focused on preparing students for leadership and entrepreneurship. During my first year in high school I looked for clubs to join, with the intention of simply building up my application for college. One of the clubs I joined was DECA, which was out of character for me you see, because back then I was focused on going into the medical field after college, not business. That same year I attended Nationals in Orlando, Florida.

Over the years, I have changed a lot, whether it was what occupation I wanted to hold or what kinds of people I wanted to surround myself with. Life will throw things at you left and right to ensure you do change and personal change, or rather, development is a necessary must in life; you must keep on progressing and being the best that you can be. As an owner, how you change or how much you change is a huge deal. It can mean that overnight your passion for your business can run out, which can be dangerous considering you are quite literally putting everything you have into your business. This can be the case for many entrepreneurs, but not me. I have always held the desire to help others, to be surrounded by people, and to share my love of foods with others. Family is a strong word in my life, to me it is a symbol, and I want everyone who enters my store to feel at home and as if they are part of the Central Point Grind family. I am not scared of perhaps changing and loosing this investment in my future, because this business has all of my passions combined within it.

My business will succeed. I have complete faith that it will flourish, and will become a welcomed new addition to the Central Point Community. Because between my business savvy mind, and my mad cooking skills, there is also a deep passion and hard work ethic going into this start-up. I know how to run a business and I know what people want when they walk into a café, because I am those people. While I will be a great business owner, I also am a human being looking for and outlet, a place to hang out in, a place to go with friends and socialize---and it’s my dream to provide others with such an outlet; which is why I want to open up Central Point Grinds.

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Analysis of the Business SituationTrade Area Analysis

Geographical Analysis:

The Rogue Valley is a charming and quaint little valley, which rests in between the Siskiyou and Cascade mountain ranges. A geographical analysis of the Rogue Valley includes an introduction to the location, climate, and the topography of the stated region.

Oregon is widely known for its lush green forests and clear waterways, and the Rogue Valley is no exception from this. As the valley lies north of the California border, it also contains, “the cultural and economic heart of Southern Oregon” (Wikipedia). The three largest cities within the area are Medford, Ashland, and Grants Pass. Some of the main forms of transportation and distribution of goods seen through the valley are by train, truck, and plane. While the usage of freight transportation is not as prominent as seen in the past (due to the stretch of rail from Ashland to California, which is of poor condition) there is still some use, primarily for lumber. A popular way for business owners to import and export goods is by truck. Because of the Interstate-5, which stretches from the top of Washington to the bottom of California-going straight through the valley, it is easy and fast to transport goods. When importing goods from foreign nations, truck is also the next best route to take due to the ports located in Oakland, Portland, and San Francisco. However, in the winter it is difficult to transport by truck due to the Siskiyou’s, which are known for receiving dangerous levels of snow to delay traffic. During this time transporting via international airports are the next best option. Medford, Oregon contains the Valleys international airport where the goods can be transported to and from various locations.

One thing that distinguishes the Rogue Valley from anywhere else in Oregon is the climate. While the coast and Portland-area are primarily raining, the valley is dry in comparison (Wikipedia). The region’s climate is similar to the Central and Sacramento Valleys of California, with a hot-summer Mediterranean climate (Wikipedia). It is normal to expect rain from September through June with miscellaneous summer thunderstorms, and in the winter to expect long, cool, and wet winters (Graham). The overall climate of the valley is dry; and during the winter, the valley receives a lot of fog and cold weather, resulting in rain, sleet, and snow. In the summer, it is common for the valley experience very hot and dry summers, with temperatures exceeding more than 100°F. During the winter, it will be difficult to receive and transport goods due to the harsh and potentially dangerous winters. The snow, which will collect along the Siskiyou’s, can lead to delays in food shipments; and with the winters lasting an average of 6.1 months, it can be difficult to acquire local and fresh produce year-round. However, with the other 5.9 months that are seen as the dryer portion of the year (Weather Spark), more and more people will be

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looking to go and spend time outdoors. Because of this, there will be more foot-traffic along pathways and in cities, hence, a high percent chance of customers coming into the café.

Due to the converges of the three mountain ranges: the Klamath/Siskiyou, Coastal, and the Cascade mountain ranges, the Rogue Valley has a unique landscape (Oregon State University). Roughly, 80% of the land in the valley is forested, and unlike California or Washington, the microclimates and unpredictable spring frosts and hailstorms prevent much of the land for usage in agricultural development (A Comparative Political Ecology of Exurbia-author unknown). The mountain ranges can provide hazardous weather conditions during the winter because of ice and snow hazards. Because of this, at particular times in the winter the exportation and importation of specific products from outside the valley will be difficult because of the dangers posed by the weather.

In conclusion, the Rogue Valley is a small mountain-locked valley, which provides a diverse and unique landscape to its inhabitants. Mountain ranges such as the Klamath/Siskiyou, the Cascades, and the Coastal ranges all play a part in in the Valley’s abnormalities in climate when compared to the rest of Oregon. For example, the Rogue Valley has dryer and hotter summers than when compared to the summers seen in the Portland area. The Rogue Valley contains three large cities, one of which is only 4.3 miles away from the café’s location. These cities play a huge factor in the start-up enterprise’s success. Because of Medford’s increasing population and economic opportunity, the valley is becoming more lucrative as more individuals are moving in. As Interstate-five continues to transport goods to the valley, other options such as international airport transport, are still a viable options for business owners to receive goods to the valley when I-5 becomes too dangerous to travel during the winters.

Geographical Benefits of Opening a Business in the Rogue Valley

Interstate-five Because the valley has a great climate, during the warm season there will be many people out

wondering the city and spending time outdoors. Thus, increasing the percent chance of them getting hungry or thirsty after spending all day in the sun and stopping in at the café. Also, because of the nice weather, more people will want to spend the day out with friends versus staying at home by themselves, therefore, they will go and meet up, perhaps choosing the café as a suitable location to hang out at.

The “lush green forests and clear waterways” seen in the valley prompt people to go outside and spend time away from home.

Many people come and visit the valley during the summer, prompted by various incentives such as the location and In N Out© or other corporations/businesses.

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Competitive Data:When identifying potential competition, it is necessary to be able to distinguish between indirect and direct competition. An indirect competitor is another business which provides products and services that differ from yours, but, can satisfy the same need that you also provide (Tech Target). A direct competitor is a business that offers the same products and services as you do, therefore you and the other business are competing for the same potential market (Tech Target).

DIRECT COMPETITORS:

1.) Central Point Perk2.) Starbucks

Characteristics: Capabilities: Strategies:Central Point

GrindsSmall, one storefront

Located on the main street in Central Point

Friendly and warm atmosphere

Provide customers with food and drink as well as an outdoor space to sit and quiet areas within the store to work.

Free wifi

Punch cards

Serves both food and drink

Central Point Perk

Small, one storefront

Located on the main street in Central Point

Provides a wide variety of drink types and flavors


Starbucks Small stores, but, there are ten separate stores located throughout the valley.

Some stores have drive thru’s

Professional atmosphere

Provide a wide variety of drink and food types

Free wifi

Rewards program and app


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INDIRECT COMPETITORS:

1.) Human Bean2.) Dutch Bros.

Characteristics: Capabilities: Strategies:Central Point Grinds One small storefront Provide customers

with both food and drink. As well as a spacious outdoor patio and quiet places to work.

Free wifi

Punch Cards

Human Bean Two drive thru’s in Central point alone, four total stands in the Valley.

Offers customers a variety of drinks, as well as a few types of pastries -such as muffins or biscotti.

Punch Cards

Dutch Bros. Large company, there are ten stores in Medford and Central Point alone.

Offers customers a variety of drinks, as well as a few types of pastries -such as muffins or biscotti.

Punch cards

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A Comparison of Central Point Grinds and it’s Competitors:

Primary Products: Price: Location: Promotional Types Used:

Central Point Grinds

Coffee Ice cream Dinner food: (sandwiches, chicken strips, soups, etc.)

Small: $3.00Medium: $3.75Large: $4.25Snacks: $1.00 to $3.00Meals: $5.00 to $10.00Ice cream: $1.00 to $3.00

227 E. Pine St, Central Point, OR

Punch cardsSocial MediaRadio Announcements

Central Point Perk

CoffeeTeaBrunch Food:(Baked goods, French toast, egg platters, etc.)

Small: $1.50 to $3.00Medium: $2.00 to $4.00Large: $3.00 to $5.00Breakfast: $5.50 to $12.00Baked Goods: $0.75-$3.00Paninis: $9.00 to $11.50

117 E. Pine St, Central Point, OR

n/a

Starbucks Coffee TeaBaked goods

Small: $1.85 to $3.75Medium: $2.10 to $4.95Large: $2.45 to $5.25Baked goods: $1.95 to $6.45

2424 Crater Lake Hwy, Medford, OR*

Rewards programThe Starbucks appSocial Media

Human Bean CoffeeTeaBaked goods

Small: $2.50 to $3.75Medium: $2.75 to $4.25Large: $3.50 to $4.75

113 E. Pine St, Central Point, OR*

Punch cardsLocal charity fundraisersSocial Media

Dutch Bros. CoffeeTeaRebelMuffins

Small: $1.75 to $3.00Medium: $2.25 to $4.50Large: $3.00 to $6.50Baked goods: $1.50 to $2.00

1075 E Pine St, Central Point, OR*

Punch cardsLocal charity fundraisersSocial Media

* = closest location to Central Point Grinds

Top Indirect Competitor:

Dutch Bros.Central Point, Oregon I feel as if Dutch Bros is my most competitive

indirect competitor because a large majority of the young adult population within the Rogue Valley buy their caffeinated drinks from there. With the variety of drinks they sell, their special Rebel drink, and their low prices, they hold a large percentage of my desired target market’s earnings.

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SWOT ANALYSIS:

When getting ready to open a business, it is ideal to prepare a SWOT analysis, a chart that outlines the strengths, weaknesses, opportunities, and threats of your business. In addition, in order to make your estimated success even more precise, creating SWOT analyses for your top indirect and direct competitors can help you understand how to differentiate yourself from your competition.

A SWOT Analysis of Central Point Grinds:

Strengths Weaknesses Opportunities: Threats-Central Point grinds will have an upbeat and friendly atmosphere.-We will be offering a variety of drinks and food.-Free wifi-All of our ingredients will be organic-Local business-Located on the main street in Central Point

-We are not known or open yet.-Our prices will be more expensive than other places due to the high quality of our food.-Not located in a major city, so we will be relying heavily on regulars.

-Once established, we will be able to offer more people in the Central Point Community with jobs. -We support our environment and community.-We have a great amount of potential to grow and expand into other cities.

-Other coffee stands and corporations such as Dutch Bros. and Starbucks are well known and people know what to expect when they go there. Because we are a new business, many individuals will be wary to change their normal everyday routines. -Because we do not have a drive-thru, it will not be as efficient or as quick as the nearby coffee stands are.

A SWOT Analysis of Central Point Perk, a Direct Competitor:

Strengths Weaknesses Opportunities: Threats-Located on the main street in Central Point.-Local business-Offers consumers a variety of great tasting food and drink.-They offer local and freshly prepared food at good prices.

-They are a small business located in a small city.-They have bad hospitality habits, and offend some of their customers.

-Because they offer great food, it would not be a shock for them to expand and open another storefront in Medford or Ashland.

-small business-They are known for being rude and inappropriate.

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A SWOT Analysis of Dutch Bros, an Indirect Competitor:

Strengths Weaknesses Opportunities: Threats-They offer many types of drinks, such as Rebels, coffee, and teas.-Dutch Bros. is very popular; most teenagers go there every day.-Because Dutch Bros. is a coffee stand, they are quick and easy.

-Dutch Bros. does not offer the highest quality coffee or use organic ingredients.-In the early mornings, they are very busy and have long lines of cars waiting.

-They give a lot of jobs to teenagers and young adults.-As a very popular coffee stand chain, they are always growing and expanding, eventually their franchise will cover the entire West Coast.

-They are a big franchise

Market Segment Analysis

Direct and Indirect Competition:

When opening a business it is vital to be aware of who you are marketing too. By understanding what your target market is, and how to best market your product, you can use promotion, placement, pricing, and product to reach them in the most effective manner. In order to find out who you’re targeting start by analyzing what characteristic you’re looking for in your customers; this can best be done by using psychographics and demographics to narrow down your market segmentation.

For Central Point Grinds, we are looking for consumers who are making roughly $70,000-100,000 annually; this is because we need customers who don’t mind spending more money for a higher quality product, while also being able to come in multiple times a week. In addition, it is preferred for our clientele to have attended some college classes and who are also in their late 20’s to early 30’s. This is all because Central Point Grinds is looking for people who are already established and settled within the community, while also being able to appreciate a more modernized and trendy environment.

Proposed Business Target Market:Demographics Age: Late 20’s to early 30’s

Race: CaucasianLevel of Income: $70,000 to $100,00Education: Has completed two or more years of collegeAbility to Cook: 2 of 5

(VALS Survey)

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These specific demographic types were picked because of the stores layout, environment, and design. By catering towards a specific person type, our service will be better received by a target market of younger individuals who appeal towards a more modern design. Central Point is a small with little to no race diversity seen within the city; and there is a high majority of the community being of white decent, therefore, it is more likely for us to receive a majority of white customers than any other race or ethnicity. Finally, we included the estimated target market’s ability to cook; this is because individuals who lack in culinary skills are more likely to go out for meals than stay in.

In term of psychographics, Central Point Grinds is looking for people who are more inclined towards being an experiencer or an innovator. According to the VALS survey definition, an experiencer is a person who wants everything around them. They tend be a bit rebellious, however, they are always up on the most popular trends. They love trying new things and believe that friends are very important. Usually, they have a heightened sense of visual stimulation and love physical activity, and the sensation it gives them. An innovator is a person who is constantly seeking information; they have a wide variety of interests and activities while also being future-oriented. They tend to be confident, and like trying new things.

Proposed Business Target Market:Psychographics Experiencers

Experiences want everything around them. They tend be a bit rebellious, however, they are always up on the most popular trends. They love trying new things and believe that friends are very important. Usually, they have a heightened sense of visual stimulation and love physical activity, and the sensation it gives them.InnovatorsInnovators are people who are self-directed customers. They tend to be wary of advertising, but also receptive to new ideas and technology. They are confident and future oriented. Finally, innovators are very smart and are always taking in information; their beliefs tend to be more closely aligned with science than anything else.

(VALS Survey)

These specific character traits were picked because Central Point Grinds is looking for people who are open to meeting new people and holding conversations with them. We want our customers to be able to be self-driven while also being able to form friendships with those around them. We want consumers who are constantly striving towards bettering themselves and who hold positive attitudes about life. Finally, our goal is to reach an audience with a more modern mindset, people who prefer modern design and style.

In conclusion, when opening a business it’s ideal for owners to isolate their target market and preferred psychographics and demographics before anything else. It’s important for business owners to know who

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they want as consumers in order to better appeal to their interests and styles. For Central Point Grinds, we are targeting Generation X, we want already established individuals who are looking for a trendy and stylish place to go to and enjoy a cup of coffee.

Analysis of the Location:Business Location:

Central Point Grinds will be located at 227 E Pine St in Central Point Oregon. Our business will be located on the main road going through the center of town. Neighboring businesses include Central Point Beauty Salon, Zen Zen Sushi and Teriyaki, Pearl and Penna Bridal Boutique, and Roy’s Pioneer Club.

Across the road, there is Ma’s, Vs Custom Crafted Hats, Southern Oregon Archery, LLC, and Central Point Pawn (Google Maps).Within the nearby by area, there are a few businesses that are compatible with Central Point Grinds. For example, customers coming from a long day of dress shopping at Pearl and Penna can stop by Central Point Grinds and grab a nice lunch on their way home. This analogy is also good for customers coming from Central Point Beauty salon and Vs Custom Crafted Hats. In order to be able to use the selected

space for Central Point Grinds we need to contact Gorden Milton at Gorden Milton F. Trustee P.O. box 3790, Central Point Oregon.

Our primary indirect and direct competitors all reside within one mile of our selected location. The furthest secondary direct competitor, Starbucks, resides roughly four miles away from our location in Medford Oregon. Aside from Starbucks, the remaining competitors are also all located in the main part of town on East Pine Street.

For Central Point Grinds to be successful, we need a lot of foot and car traffic in order for people to notice us. Thankfully, East Pine is a popular route used by many people in order to reach East Central Point and the freeway. The majority of people who will be driving by Central Point Grinds’ desired location will be on their way to the freeway in order to get to their jobs in North and South Medford. Therefore, it can be a convenient stop on their way to work if they are looking for a higher quality latte than what Dutch Bros. or the Human bean can provide.

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Map of the Central Point Grinds Desired Location:

Floor Plan:

Business Layout - Visual Merchandising:

When customers enter the building they will be seating themselves and coming to the counter when ordering a product. All of our products will come from the kitchen to the counter, where our consumers will then pick them up. As for impulse and convenient goods, like hydroflasks and pre-baked goods they will all be located on shelves near the register and on the wall. As for brand t-shirts, hats, and stickers; these items will be located on a shelf near the register as well. Any excess of product will be stored in the storage and employee space area. In order to encourage customer shopping we plan on using attractive and neat product placements in order to gain the attention and favor of customers. The shelf holding the products will be placed between the pick-up and order windows, this is so it will separate foot-traffic and help with eliminating crowding.

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Type of Ownership:

Pros: Cons:Sole Proprietorship 1. A sole proprietorship is

easy to form.2. It offers complete

managerial control towards the owner.

1. The owners is personally liable for all financial obligations.

2. Banks are reluctant to give loans to sole proprietorships

Partnership 1. With a partnership, you don’t have the tax burden of having to deal with profits or the benefit of losses. Essentially, profits or losses are “passed through” onto the partner’s individual tax returns.

1. The partners are personally liable for the financial obligations of the business.

Corporation 1. A corporation is a separate entity form those who funded it.

2. During a lawsuit, your personal assets can’t be seized

3. With a corporation, you have a wider variety of tax options.

1. A corporation can be taxed and held legally liable for its actions.

2. It’s expensive to form a corporation.

3. You must keep extensive records regarding the corporation and any business conducted.

Limited Legal Liability 1. Allows profits and losses to be passed through to the owners without being taxed

2. Owners are shielded from personal liability.

3. Flexible management

1. Tax treatments vary by state.

2. Members need to pay self-employment taxes.

Central Point Grinds will be ran with a Limited Legal Liability (LLC) business structure. Primarily because with an LLC, owners are shielded from personal liability and all profits and losses from the business can be passed through to the owner without taxation. In addition, with an LLC the only risk is that the total amount of capital paid into your business, because, any business debt that is acquired cannot be taken out from the owner’s personal finances.

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Proposed Product/Service:

At Central Point Grinds our goal is to provide customers with the best possible food and drink we can produce. We offer five different product lines including: expresso drinks, cold drinks like smoothies and shakes, meals, quick snacks, and homemade ice cream. With the wide variety of products, all which are organic and freshly made, we aim to bring the Central Point community fresh made with healthy and locally gown ingredients.

As a café, our specialties are primarily focused on espresso based items such as Americanos and lattes. Our specialty drink, the Oregonian, is a traditional mocha made with both beans from Brazil and locally grown coffee beans. We add half-and-half, homemade caramel syrup, vanilla, and whipped cream in order to produce a fan-favorite coffee-house drink. Typically the Oregonian, and all other beverage types, will be ordered in a size 16oz cup; the cup will artistically designed and unique from all other cups found in the building. Because of our wide variety of coffee bean types, like how we carry beans both from South America and Africa, we have great product width and are able to satisfy a variety of palates.

As for product depth, within espresso drinks alone we offer more than fifteen types of drinks not, not including flavor additions, and in our other minor product lines each carries roughly ten different products types.

Finally, because we only use fresh and locally grown ingredients when making our products, we are sure to produce a lot of success with our business. Also, with the wide variety in product items, lines, widths, and depths we will be able to meet a variety of personal tastes and preferences with our products.

Suppliers:

Central Point Grinds Supplier #1.

Company Name Address Phone Number Web Address Rating Rogue Natural Foods

541-201-0985 Roguenaturaldoods.com 5 stars

Product Offerings Rogue Natural foods is the leading bio-regional food distribution found in the Rogue Valley. They are focused on providing businesses with natural, organic, and local products, and because of this they deliver extremely high-quality foods while also using a direct food path. Rogue Produce offers the local valleys, like the Rogue, Illinois, Willamette, and Williams, with a wide variety of products such as local produce, kombucha, teas and coffee beans, and pies. Created by Organic Produce Warehouse, Rogue Produce was created to represent the local farms and food producers, all in order for consumers to easily identify local foods.

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Central Point Grinds Supplier #2.

Company Name

Address Phone Number

Web Address Rating

National Business Furniture

770 South 70th Street, Milwaukee, WI 53214

800-558-1010

https://www.nationalbusinessfurniture.com 4.5 stars

Product Offerings

Carrying more than 110,000 products which are offered in more than 25 countries, National Business Furniture offers a wide variety of furniture types and styles. Wiith the help of National Business Furniture you are aided by a live furniture expert, with an average of nine years of experience, and an additional team of design experts which provide free space planning and color samples. National Business Furniture is owned by K+K America Corporation, a United States holding company for TAKKT AG. TAKKT AG is the leading business in warehouse equipment in America and Europe.

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Equipment:

Product Quantity

Cost Product Quantity

Cost

Freezer 1 $1,199.50 Industrial Blenders 3 $125.93

Ice Maker 1 $1,029.50 Industrial Coffee Grinder 2 $918.50

Refrigerator 1 $2,157.41 Commercial Coffee Grinder

1 $589.50

Water Filtration System

1 $362.16 Automatic Drip Coffee Makers

2 $

Commercial Water heater

1 $446.18 High Quality Espresso machine

1 $1,835.00

Dishwasher 1 $1,514.50 Gourmet Coffee Brewer 1 $64.99

Oven 1 $1,239.50 Refrigerated Display Case 1 $4,523.51

Toasters 2 $143.99 Display Case 3 $89.78

Panini Grill 1 $169.99 Prep Table 1 $1,099.50

Three Compartment Sink

2 $338.93 Shelves 6 $1,020.00

Phone/Wifi 1 $30.00 a month

Furniture/Fixtures vary

Radio System 1 $300.00 Main Counter(POS)

1 $1,500

Cash Register 1 $689.00 Containers 20 $30.00

Credit Card Machine 1 $275.00 Pumps 20 $18.90

Security System 1 $35.00 a month

Frothing Spoons 6 $14.85

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Pricing Policies:

When opening a business it’s extremely important to strategically price your products, for example you need to be careful that you don’t set your prices to low because you still need to make a profit. For Central Point Grinds, we plan on using the cost plus pricing policy where the cost of each product is decided upon how much labor and money it takes to create the product; as well as how big of a desired profit you are trying to make from it. This is our desired policy because by offering a wide variety of products, all of which are made from scratch, we put in a large amount of labor and time into each product. It is our belief that because of that, we should also charge consumers for not only the food, but also our time and skills that go into the preparation and execution of our products. For our pricing techniques, we will be leaning more towards the direction of price lining and prestige pricing techniques. While we want to offer consumers with great deals regarding fresh and local food, we also want then to appreciate and recognize that. By making all small drinks three dollars or all muffins two dollars it is easy for consumers to remember and develop a baseline for our product prices. While also understanding that our products won’t be overly cheap due to their high quality. Finally, when showcasing new products, we plan on pricing them using the penetration pricing technique. This way customers will be more inclined to come in and try something new, expanding their palette, and also not worrying about the price, thinking they have scored a major deal. Once we have them hooked, about two months after the product launch, our prices will go up, and we will be making a more sustainable profit. In conclusion, by using strategic product pricing methods, a business can make sound projected earrings while also being able to fully develop their brand and closely analyze where the lie in competition with their competitors.

Promotional Strategies:

The Promotional Mix is a beloved tool of marketers that help businesses reach their desired goals. This can be seen through how Target might launch a new advertisement for diapers that is aimed towards single mothers, or perhaps when car sales men persuade and manipulate consumer’s feelings in order to sell a car. After analyzing the various elements of the promotional mix, central Point Grinds has decided to lean towards personal selling, sales promotions, and publicity as ways to introduce ourselves to the Rogue Valley community and form clientele.

Personal Selling: o One way to increase clientele and form good relationships with the local community is to excel at personal selling. This can be demonstrated by the exchange that occurs between consumers and the Central Point Grinds family during order taking. “One thing that sets apart businesses for me is how a business treat you, are you a consumer or are you a person? A business that treats me well and fairly, while also produces great value products is a business I will always come back to.”, Tony Van Wey. At Central Point Grinds it is imperative for all of our customers to feel welcome and appreciated; we value the verbal and non-verbal communications that occur between our employees and customers. Through personal selling we hope to accomplish the formation of friendships with our customers, so that not only they will continue to come back but also hold a brand loyalty for us.

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Public Relations: o Publicity provides business owners with a way to reach out to the public and build a brand image while also not costing owners a dime, usually. Through publicity, Central Point Grinds hopes to build a fun a friendly image, showing the local community that we’d love for anyone to become part of our crew and also that we provide fresh and local food and a great cup of coffee. One way to do this is through reaching out to local news outlets and offer interviews and sneak-peaks of the business before our doors are officially open. However, hardly anyone reads the news or watches the news these days, so we plan on creating accounts on all social media websites, and reaching our audiences through there. Because our target market is “always within reach of their phones” this will be a c=great way to connect and create interest even before our business is established. We plan on having a large social media presence posting at least twice daily, with current updates on the business, the crew, and any deals or promotions occurring in the near future.

Sales Promotions: o Once first opened, we plan on handing out a variety of product samples to the community, the samples will vary between smoothie flavors, pastries and panini bites, and of course mini cups of coffee! Through displays, premiums (such as coupons or punch cards), giveaways, and samples Central Point Grinds hopes to increase clientele and create brand loyalty. Sales Promotions can be seen through our stylish displays, showcasing our fresh pastries and brand gear. Also, though our unique and trendy punch cards, customers will be sure to hang onto them and remember them, and after buying ten coffees, they will receive a free one. Finally, Central Point Grinds plans on holding semi-monthly contests, these can be for artwork, catchy new ideas to boost moral or style throughout the store, and our BE YOU BE KIND CHALLENGE. Over time we hope to think up more creative ideas, through these contests our goal is to reach a variety of people’s interests and receive a variety of suggestions and ideas. With these contests, winners will always be receiving something different, our gifts includes brand gear, gift cards, sweets, and the chance to be a part of the crew for a day.

In conclusion, when opening up a new business using promotional strategies are imperative when looking for success. You need to be able to create a brand image and allow for consumers to formulate ideas of what your business is like and the quality of product you produce. Central Point Grinds plans on using personal selling, social media, and special sales promotions in order to attract and win favor with potential customers.

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FinancingFinancing and Fund Resources:

Personal Internal Sources of Cash: Talli Van Wey: $1,000 Emily and Anthony Van Wey: $2,000 External Family: $15,000

Expense Categories Total Dollar Amount

Deposits 5,000

Furniture and Equipment

20,000

Machinery Equipment

10,000

Building Improvements

15,000

Transportation Equipment

800

Professional Fees 900

Advertising 1,000

Working Capital 50,000

Inventory 15,000

Miscellaneous 2,000

Total Expenses 119,700

Working Capital Total

50,000

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All other Categories Total

69,700

For opening my business it is necessary to take out both a SBA 7A Loan and an SBA 504 Loan, these are required because I need to purchase furniture, renovation supplies and materials, computers, inventory such as groceries, and cash reserves. Also, with the SBA 7A Loan I plan on using the money to purchase all of my kitchen necessities such as stoves, fridges, utensils, etc. Finally, I will also be taking out an SBA 504 Loan, with this, I will be using the money to pay construction and renovation fees. In the future, I plan on taking out a third loan as well, an SBA Type Commercial Mortgage Loan, so I can finance building a back patio for guests to sit out and enjoy the weather on nice days. With the SBA 7A Loan I will be taking out $250,000 to buy all necessary inventory and machinery; I plan on paying this back in seven years so long as Central Point Grinds makes at least 40 drinks every day. This will be followed by me also taking out $50,000 with the SBA 504 Loan to pay for building upgrades and renovations, this can be easily paid off in 7 years also, so long as Central Point Grinds consistently makes a minimum of 40 drinks every day.

ConclusionThrough this Business Plan I hope to not only successfully persuade potential investors into investing into my business, but to also create a guide, one that I may refer back to in the future, and make sound and solid decisions with. By investing in Central Point Grinds you’re not just giving money to another internet café business, you’re investing in a business that’s sole purpose is to form friendships and encourage customers. You’re investing in a business that wants to invest back into its community, a business that wants to produce products of only the highest quality. Because through food and kindness, anything is possible.

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Annotated Bibliography

"Business Economic Data." SOREDI. Soredi, 2017. Web. 19 Apr. 2017.

TM SM Copyright Protected 2002-2016 TUPINC All Rights Reserved Worldwide. "Rogue River Valley Oregon."Oregon Geography - Southern Oregon. TUPINC, n.d. Web. 19 Apr. 2017.

"Your Southern Oregon Vacation Starts Here." Southern Oregon Visitors Association - Southern Oregon, Ashland, Shakespeare Festival, Crater Lake, Rafting, Wines, Wineries, Jetboats, Jacksonville, Coast, Rogue River, Redwoods. Southern Oregon Visitors Association, n.d. Web. 19 Apr. 2017.

"Rogue Valley." Wikipedia. Wikimedia Foundation, 29 Apr. 2017. Web. 10 May 2017.

Unknown. "Interstate 5." Wikipedia. Wikipedia, the Free Encyclopedia, 28 May 2017. Web.

Begley Library and Learning. "MLA Style In-Text Citations." Learning Center, 2009. Web.

Unknown. "Rogue Valley Climate." Siskiyou Center. Siskiyou Center, n.d. Web. 02 June 2017.

Unknown. "Understanding Your Land." Understanding Your Land. Oregon State Universuty, n.d. Web.

Unknown. "VALS™ | VALS™ Types | Experiencers | SBI." Strategic Business Insights. Strategic Business Insights, 2009. Web. 02 June 2017. \

Unknown. "Dutch Bros Prices." Fast Food Menu Prices. Fast Food Menu Prices, n.d. Web. 2017.

Unknown. "Starbucks Menu | Quick Breakfast Ideas." Starbucks Coffee Company. Starbucks Corporation, n.d. Web. 02 June 2017.

Unknown. "Customer Service." The Human Bean Drive-Thru Espresso Franchise. The Human Bean, n.d. Web.

Google Maps. Google, n.d. Web. 02 June 2017.

Khwaja, Ameen. "Choose Your Business Structure." Entrepreneur. Entrepreneur Media Incorporated, 18 Mar. 2001. Web. 02 June 2017.

Unknown. "Amazon.com." Amazon.com. Amazon, 1996. Web.

Unknown. "Rogue Natural Foods." Rogue Natural Foods. Rogue Natural Foods, n.d. Web. 2017.

Kitchen, Taste Of Home Test. "Creamy Caramel Mocha Recipe." Taste of Home. N.p., 01 June 2017. Web. 02 June 2017.

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AppendixSelection Letter:

Central Point Grinds

Talli Van Wey

655 N 3rd Street

Central Point, OR 97502

(541) 944 – 4475

April 3, 2017

Ms. Frances Hedge

SBA Loan Officer

Bank of America

845 N. Highland Street

Medford, OR 97501

Dear Ms. Hedge:

It is my deepest desire to open a small start-up enterprise, which offers consumers great food and drink from and a fun and friendly environment to relax in. I plan to open a small café in Central Point, Oregon; we would start small and local, building our brand and clientele while eventually broadening our horizons and expanding over time.

Central Point offers its community with many options concerning coffee and food, however, my business would be different that its competitors: such as Starbucks, Central Point Perk, and Dutch Brothers. It would provide consumers with an area to sit and relax in, it would serve diverse food as well as valley favorites, and it would be open from 5am to 9pm. I believe that this is a practical idea for a business because so many people today work full time jobs along with juggling their everyday duties; wouldn’t it be nice if they could have a place to sit down and relax? To simply enjoy of cup of coffee and take a break? I know I’d appreciate that. In addition, the majority of preferred places to visit are located in neighboring cities, such as Medford and Jacksonville. My business would be helping the community by giving them the option to stay local.

In addition, I believe that my business would be highly successful due to their high quality of products and services. I plan to import coffee beans from South America and Africa in order to give our customers a wide range in flavor and variety; as well as carry ingredients from local suppliers, for example bread from Great Harvest. This will be a great way to attract consumers and differentiate ourselves from the competition. I plan to assure our consumers that they are receiving the highest quality possible by only

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ordering ingredients from the most reliable of sources and making it one of our key mantras within the café.

Finally, thank you so much for taking the time to hear a little bit about my plan. I truly believe that my café could be a wonderfully addition to our town with the convenience and remarkable food and drink it would be offering the community of Central Point. I look forward to furthering our discussion concerning my business, and would like to schedule a time to meet in person; you can contact me through my email, at [email protected], or by phone, at (541) 944 4475.

Sincerely,

Talli Van Wey

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Print Ad:

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Business Card:

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