One of Roaster’s goals will help create at stronger social network and entertaining atmosphere for local and worldly communications. A business plan has been prepared in the hopes of obtaining financing of the specified amount of $50,000. The financing is a must because work needs to get started on the site preparation and modifications, equipment purchases, This financing will help with the expenses for the first outwears of daily operations.
Subsequent financing has been requested and approved in the form of $20,000 from the Mississippi Economic Development Fund, $1 5,000 of personal investment money from owner and operator Jason Rained, $30,000 from two Investors, and $10,000 In the form of a long-term business loan room the Regions bank. Roasters will be seen as an LLC corporation as soon as the business becomes incorporated. This will help protect the owner Jason Rained, and the two outside investors, Robert Wiley, Kimberley Rained from issues of personal liability and taxation according to government regulations and policies.
This financing will allow Roasters to open successfully and maintain operations through outwears of successful business. The large capital loan will allow Roasters to provide its customers and community with a full featured Internet cafe© and coffee shop. A
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Company Summary Roasters, soon to be located close to the town square of Hernandez on North Parkway and Main will offer the community competitive rates to access the Internet. Roasters unlike other cafes in the area will provide full access to e-mail and other Internet applications such as Google and Being. Roasters will also provide customers with a relaxing environment for enjoying specialty coffee, specialty beverages, and fresh bakery Items. Roasters will look for people of all ages and ethnicity to enjoy the services they will be providing. With instructional Internet 1 OFF endless Internet applications.
Roasters hopes to attract patrons of all ages throughout the community whom show interest and are rapidly gaining interest in the resources that the Internet has to provide. Competitive Edge Roasters will follow a differentiation strategy to achieve a competitive edge in he coffee and Internet market. Roasters separates itself from all other coffee shops in the Hernandez area. Roasters provides freshly roasted beans onsite daily and a relaxing environment with coffee and bakery items, which will help distinguish itself from other Internet providers in Hernandez.
Roasters has conditioned itself as the future in Internet Cafes and coffee shops. Roasters will only offer the highest-quality Java and specialty drinks at a fair price. Because of the number of cafes in Hernandez, it is important that Roasters sets reasonable prices for its coffee. Roasters will use marketing concepts as its main source of promoting its products. Ads placed in The Commercial Appeal, Despot Times, and the Hernandez Tribune will help build customer loyalty. Accompanying the ads will be a coupon for a free usage of the Internet and flyers placed around town at strategic locations.
Roasters will give away two hours of Internet usage to beginners who sign up to be a part of the Internet tutorial offered by Roasters. Roasters bases was able to create a pricing list for coffee and specialty drinks based on the “retail profit analysis” provided by Beans Coffee Co. Inc. Beans Coffee Co. , Inc has been supplying raw beans for more than 45 years and has developed a solid reputation with a high quality product. Determining a fair market value for Internet use is more difficult because there are no direct competitors from other cyber-cafes in the Hernandez.
First, we considered the cost to use other Internet providers, would be better to use a local networking firm or a provider such as Verizon. “Internet access providers use different pricing strategies. Some charge a monthly fee, although others charge an hourly fee. In addition, some providers use a tragedy with a combination of both pricing strategies” (Internet, 2010). This can quickly start to add up to a high monthly cost for the users. Second, Roasters looked at how cyber-cafes in other markets such as Memphis and Southern went about determining the right price for Internet access.
With these two evaluations Roasters was able to make a fair assumption in making the price comfortable for future users. Promoting/Sales Strategy Roasters has budgeted $8,000 for advertising efforts that will include coupons for a free hours of Internet usage and discounts on drinks and pastries in local publications. Hernandez is a small town therefore using local business will only help maximize revenue and growing potential. Roasters employs people with knowledge in sales and those that will adhere to company policies when handling customers.
Computer knowledge is a must for Roasters employees’ considering that is going to be 70% of the revenue coming into the store. Reassertion’s friendly on-time service is its main factor that will help distinguish Roasters from all other Coffee shops. On time friendly service is vital to the success of the business and will also keep sales up. Internet sales were estimated by calculating the total number of for coffee-related products was determined by the “retail profit analysis” we obtained from Beans Coffee Co.
The bakery items cost is 30% of the selling price. Conclusion Roasters is looking to maximize its potential in becoming the only Internet Cafe© in Hernandez. To do this Roasters has to make it next to impossible for someone else to come in and become a potential competitor. The best thing they can do is keep prices down on all products and services but make sure they can profit from being competitive. The products and services that are provided at Roasters are unique to the area and different from any other business in town.