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Coffee Business Plan

XXX
Senior Managing Member
1234 State Line Rd
Whoville, PA 19001
(215) 639-2828
info@coffee.com
Date

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A. Executive Summary...............................................................................................................4
A1. Company Identification.........................................................................................................4
A2. Mission of the Company.......................................................................................................4
A3. Business Goals......................................................................................................................4
A4. Keys to Success.....................................................................................................................5
B. Company Summary...............................................................................................................6
B1. Industry History.....................................................................................................................6
B2. Legal Form of Ownership.....................................................................................................7
B3. Location and Facilities..........................................................................................................7
B4. Management Structure...........................................................................................................7
B5. Products and Services..........................................................................................................10
C. Market Analysis....................................................................................................................11
C1. Target Market......................................................................................................................11
C2. Industry Analysis................................................................................................................11
C3. SWOT Analysis..................................................................................................................12
D. Market Strategy......................................................................................................................15
D1. 4Ps......................................................................................................................................15
D2. Price List............................................................................................................................16
D3. Promotional Strategy..........................................................................................................17
D4. Sales Forecast.....................................................................................................................17
E. Implementation Strategy........................................................................................................18

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E1. Overall Strategy...................................................................................................................18

E2. Monitoring Plan...................................................................................................................19
F. Financial Statements and Projections....................................................................................20
F1. Forecasted Profit and Loss Statement..................................................................................20
F2. Forecasted Balance Sheet....................................................................................................20
G. Financial Report.....................................................................................................................20
G1. Financial Projections...........................................................................................................20
G2. Financial Position................................................................................................................21
G3. Estimated Capital/Investment Needs..................................................................................21

A. Executive Summary
A1. Company Identification: Identify the companys name and location.

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Fresh Brew, LLC is a manufacturer of the Fresh2GoAuto coffee brewer and provides
signature roasted 100% mountain coffee beans. We are located in Bensalem, PA just north of
Philadelphia in scenic Bucks County.
A2. Mission of the Company: Describe the mission of the company.
Fresh Brews mission is to provide the highest quality coffee brewer and coffee beans to
our clients. We want our clients to really enjoy our products and become lifelong customers.
When our clients rave about our products to friends and family members, there first thought will
be Fresh Brew.
A3. Business Goals: Discuss two business goals in support of the companys mission.
Our first goal is to achieve profitability by end of first quarter. We can do this by getting
our name marketed and making our company Fresh Brew synonymous with Fresh2GoAuto just
before the holiday season. Customers who enjoy coffee will think of Fresh Brew and will buy
our products over and over again. Having clients return consistently will ensure profitability.
Our second goal is to maintain and expand relationships with suppliers. This will allow
us to obtain quality materials used in our coffee brewers. Fresh2GoAuto is designed and built for
enjoyment for many years to come. We also expect to work with the best coffee bean suppliers to
provide the highest quality product. This will ensure exceptional taste is every cup our clients
drink.

A4. Keys to Success: Discuss three keys to success for the company.
1. Experienced people Fresh Brew will be started by three senior managing members
with more than 15 years experience each in the small appliance and coffee industry.

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Also, we will employ a Roast Master with more than 20 years experience ensuring our
coffee is of top quality.
2. Efficient processes Streamlining delivery of materials and coffee to our warehouse,
setting up assembly and packaging functions to run smoothly, and shipping finished
goods to the retailers within seven days ensures our products will be on the shelves. If the
product is not on the shelves, our customers cant buy them.
3. Top-notch marketing campaign Having a top-notch campaign will make sure our
name is embedded in the minds of our customers so they will automatically think of our
brand when looking for a brewer and coffee.

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B. Company Summary
B1. Industry History:
In the mid-1800s, people were thinking of new and innovative ways to cook food to make
their lives easier. Fast forward fifty years with the birth of the 20th century small appliances
industry. These creations owe a huge debt to electrification, which brought light and power into
the home. These innovations lead to the creation of small efficient motors which created devices
to do the work for the homemaker. In the second half of the century, advances in electronics bore
appliances that could be set on timers and even programmed, further reducing the domestic
workload (Household Appliances Timeline, n.d.).
In 1952, Russell Hobbs invents the CP1, the first automatic coffeepot as well as the first
successful line of appliances. The percolator regulates the strength of the coffee according to
taste and automatically stops when the coffee is perked. Twenty years later in 1972, Sunbeam
develops Mr. Coffee. This is the first percolator with an automatic drip process along with an
automatic shut-off control that reduces the danger of over-brewing. This made Mr. Coffee the
countrys favorite coffeemaker very quickly (Household Appliances Timeline, n.d.).
During the 1980s, the small appliance industry shipped $1.5 billion worth of goods each
year and employed over 14,000 workers. Revenues doubled between 1982 and 1990 to $3.3
billion. Companies merged and acquired one another to reduce research and production costs and
eliminate competition which resulted in anti-trust legislation (Household Appliances Timeline,
n.d.).
Kitchen appliances normally begin with an idea and end with something that leaves
people wondering how they functioned without them. It can take time for the next best thing to
arrive leaving people waiting eagerly for the next new thing to make their lives simpler. This is

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obvious with all of the infomercials for new kitchen products on TV. The future possibilities of
small appliances are endless (Home Appliances, 2004).
B2. Legal Form of Ownership:
Fresh Brew will be established as a Limited Liability Company (LLC). A LLC is more
difficult to setup then a corporation, but offers a mixture of a corporation that provides a limited
liability feature, and the management flexibility of a sole proprietorship or partnership which
makes it easier to run. The LLC designation allows profit and losses to be passed to each
member of the company instead of the company and individual like a corporation. Taxes are
assessed at the individual level instead of the company level avoiding double-taxation like a
corporation. Current owners will manage the company for the foreseeable future as managing
members. Financial assistance will not be needed from investors which will eliminate the need
for additional members.
B3. Location and Facilities:
Fresh Brew LLC has an assembly and packing facility located in Bensalem, PA. The
Fresh2GoAuto coffee machine and coffee beans will be assembled, processed, packaged and
shipped in 85,000 Sq. Ft. of a 90,000 Sq. Ft. building. The remaining 5,000 Sq. Ft. will be used
for corporate offices. The corporate offices will be for executives, sales, marketing, human
resources, administrative employees and a conference room.
Licenses from the PA Department of Agriculture and Bucks County Boards of health
have been obtained for processing of coffee beans. Use and Occupancy, construction, and fire
safety permits have been obtained from the Township of Bensalem.
B4. Management Structure: Describe the management structure, including key positions and
specific responsibilities.

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Fresh Brew LLC management structure will have three executive positions consisting of
a Senior Managing Member, Senior Financial Manager, and Senior Operating Manager. We will
also staff two directors for marketing and sales. Other vitals positions will include middlemanagement, analysts, administrative and a variety of assembly, packaging and warehouse staff.
In addition, our Roaster Master with over 20 years experience will be overseeing the roasting
process.
Key Positions:

Senior Managing Member, Daffy Duck - In this member-managed LLC, has the final
decision on behalf of the company if all senior managers cannot mutually make a
decision and will be ultimately be responsible for the successful operations and sales of
the company. Direct reports will be Senior Financial Manager, Senior Operations
Manager, Marketing Director, Sales Director and Human Resources Manager.
o Senior Financial Manager, John Smith Responsible for all aspects of the
companys finances to include; financial management, analysts, accounts
receivable, accounts payable and taxation staff.
Finance Manager, Evelyn Mazecki Responsible for all financial impacts

to the company based on discounts provided to clients.

Financial Analyst, Michael Basile Responsible for financial implications

based on warranty offered and revenue growth on a monthly basis.

o Senior Operations Manager, Eric Clapton Has overall responsibility for the
operations of the entire company with four direct reports.
Vendor Management, Jim Hurst Coordinates product placement and

inventory levels with retailers.

Telecom Director, Joe Walsh Manages 24-Hour customer support line

with a staff of 30.

Warehouse Manager, Joe Redo Responsible for all assembly, packaging,
inventory control, and manages staff of 25 plus the Roast Master.

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Logistics Manager Responsible for all shipping and receiving tasks,

negotiates transportation rates with delivery companies and manages a

staff of 10.
o Marketing Director, Sabrina Dubois In charge of all marketing campaigns,
decides on and attends all trade shows for the company and manages a staff of
four.

Marketing Manager, Ashley Master Researches all store-front

requirements and negotiates advertising prices with media outlets. Also,

tracks sales activity with retail outlets.

Marketing Analyst, Sophie Jones Researches competitor prices to

determine the best price to enter new markets.

o Sales Director, John Bartolla Directs sales representatives, creates sales
initiatives to grow revenue, increase sales activity and researches volume
discounts to offer clients.
o Human Resources Manager, Michelle Goodall Conducts interviews, counseling
managers on candidate selection, conducting exit interviews and recommending
changes. Responsible for payroll, benefits offered and training.

B5. Products and Services:

Fresh Brew, is offering the Fresh2GoAuto counter-top coffee machine and packaged
coffee beans. Fresh2GoAuto has an auto-start timer, is Wi-Fi capable, and is operable via the
F2G app. Forgot to set the timer last night? Its okay! Grab your cell phone or tablet sitting on
your nightstand and start the brew with a simple tap on our app. Your coffee will be ready when
you walk into the kitchen. This machine holds your favorite Fresh Brew coffee beans and freshly
grinds the perfect amount every time. It holds 50 oz. of water and auto-dispenses sweetener and

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creamer into a convenient 16 oz. travel mug by remembering how you like it with our memory
feature. The Fresh2GoAuto is available in stainless, black and white.
Fresh Brew coffee beans are roasted by a Roast Master with over 20 years experience.
Our beans are roasted in a smokeless roasting environment which increases overall flavor and
quality. Fresh and clean is the key to revealing all of what coffee has to offer. Our beans are
roasted and shipped to retailer with in three days of packaging. We want our customers to
experience coffee at its peak and truly taste a coffee's origin and nothing else.

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C. Market Analysis
C1. Target Market:
Fresh Brew has a nationwide the target market for the Fresh2GoAuto coffee maker and
coffee beans via traditional box stores and online retailers. Initially, we will focus on the East
Coast spreading North and South from our headquarters in Bensalem PA.
Our primary target will be single 30-40 year-old male or female professional, with a
masters degree. These self-proclaimed coffee connoisseurs will have an annual income of
$50,000 a year or more, with a ton of credit card debt and lives in a loft apartment located in an
up-and-coming neighborhood nestled inside a big city such as Philadelphia, New York and
Chicago.
C2. Industry Analysis:
The global small appliances industry is expected to reach an estimated value of $324.2
billion by 2019. The major drivers of the small appliances industry are an increase in income,
consumer spending, housing activities, and increasing urbanization (Smith, n.d.). The home
comfort segment depicted the highest growth rate among all five segments in 2013. A significant
demographic trend affecting the market growth is rise of single households. In the U.S. alone,
more than 30% of population is living single (Miller, 2015). "Coffee is one of the most popular
beverages in the world, and coffee aficionados and casual drinkers alike want access to the
perfect cup right in their kitchens," said Per Kvarby, Electrolux Global Product Manager
(Bohacz, 2016).
Implementation of technological changes in small appliances will possibly further drive
this industry. Wi-Fi is preferred by appliance manufacturers for wireless connectivity and it is
expected that more than 21 million Wi-Fi enabled appliances will be shipped worldwide in 2018

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(Smith, n.d.). Fresh2GoAutos advanced Wi-Fi technology feature gives Fresh Brew an
advantage over the competition to advance in the market.
C3. SWOT Analysis:
S (Strengths)

W (Weaknesses)

1. Flexibility to adapt infrastructure

1. New to small appliance market

2. Talented people

2. New raw material supplier needed

3. Efficient production process

3. Lack of market expertise

O (Opportunities)

T (Threats)

1. Enter new markets

1. A down-turn in the economy

2. Introducing a new product line

2. Entry of new competitors

3. Small investment

3. Fluctuation of raw material prices

Strengths:

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Fresh Brews first strength is that we are completely flexible. Before the business gets too
large, we have the ability to adapt the infrastructure to meet the needs of the marketplace. After a
bit of testing in the market, the business can alter some of its practices to be more efficient.
Our second strength is that Fresh Brew has quality talent working for them. The
managing members of the company will be working on many different tasks. Employing a Roast
Master with 20 years of experience will ensure success of the company. These individuals are
much more qualified than others to get the business off the ground. Even though the business is
using this strategy so that it can save money on overhead, it also works to the business's
advantage by resulting in higher-quality work.
Fresh Brews last strength is our efficient production process for our new product line.
Having an efficient process when it comes to the labor and production-line time means low raw
material waste. When we keep our waste low, our costs remain low and our profits are higher.
This also allows Fresh Brew to offer our products at a lower consumer price beating the
competition.

Weaknesses:

Entering a new market is a weakness for Fresh Brew who is a new small appliance
company but. This weakness can be challenging when selling into an established market. Fresh
Brews sales people are not trained to sell small appliances which can be an advantage for our
competitors and internet outlets.

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Another weakness Fresh Brew is facing with our new product is the need for a new raw
materials supplier. Working with a new suppliers means well have to build relationships with the
hope of having a great relationship. We wont be able to enjoy benefits such as lower costs,
favorable scheduling and timely deliveries at first. This could have an impact on the raw
materials we will need on a readily basis.

Lastly, Fresh Brews inexperience in the small appliance market can have a negative
effect on profits. Our marketing team is not experienced in what consumers want in regards to
this new product line. This will allow our competitors with more experience to take our clients.

Opportunities:
Entering new markets - Will allow us to gain expertise in a new market, therefore,
obtaining new clients. When the economy is in good standing we will be able to research and
develop products for different markets. Also, the government is allowing import/export with
countries we havent done business with before. We can now sell to more consumers in these
markets.
Introducing a new product line A new product line will help us remain competitive in
the market. This is essential to stay profitable.
Small investment Our production is efficient and wont require a large investment. This
is important if the economy is in a down-turn.

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Threats:
A down-turn in the economy If the economy is not flourishing, consumers will spend
less or not spend at all.
Entry of new competitors New competitors will give consumers more choices. If they
are a well-established firm as well, there is a potential to lose clients.
Fluctuation of raw material prices If suppliers are limited, pricing can be expensive. We
would have limited suppliers to choose from. Government regulations could hinder our ability to
use suppliers from other countries. This would keep prices high as well.

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D. Market Strategy
D1.
Product Strategies:

Well offer a two year warranty to show we stand behind our product.
A 24-hour customer service line will be established and have knowledgeable staff to

answer consumer questions.

Offer a package design similar to our current electronics brand so clients will recognize
as a quality product.

Price Strategies:

Offer a volume discount to sell more units to distributors, increase their profit and reduce

our inventory.
Offer a 3% discount if bill is paid within 15 days. This will help retailers increase profits

and increase Fresh Brews revenues.

Set our price similar to our competitors. Consumers will look more at the features we
offer instead of pricing alone, which will give us a competitive advantage.

Place Strategies:

Have an effective inventory control system. This will allow us to have a handle on what

is available so we can deliver quickly to our clients.

Establish contracts with transportation companies to deliver our product to clients on a

timely basis.
Establish and maintain a consistent inventory at our online retailers distribution centers.
This will make sure our product readily available to ship.

Promotion Strategies:

Sell on internet-based retailers websites utilizing their virtual store fronts.

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Produce an advertising campaign on radio and TV to reach millions of consumers to

begin August 15, 2016.

Attend trades shows. This will allow us to reach other retail outlets to increase awareness
of Fresh2GoAuto.

D2. Price List:

Model#
F2GS
F2GB
F2GW
FBL
FBM
FBD
FBBB
FBH
FBFV
FBC
FBFF
FBSB
FBM
FBBB
FBH
FBFV
FBSB

Product Description
Fresh2GoAuto - Stainless
Fresh2GoAuto - Black
Fresh2GoAuto - White
Fresh Brew - Lite 36 oz.
Fresh Brew - Medium 36 oz.
Fresh Brew - Dark 36 oz.
Fresh Brew - Breakfast Blend 36 oz.
Fresh Brew - Hazelnut 36 oz.
Fresh Brew - French Vanilla 36 oz.
Fresh Brew - Colombian 36 oz.
Fresh Brew - Fog Free 36 oz.
Fresh Brew - Signature Blend 36 oz.
Fresh Brew - Medium Decaf 36 oz.
Fresh Brew - Breakfast Blend Decaf 36 oz.
Fresh Brew - Hazelnut Decaf 36 oz.
Fresh Brew - French Vanilla Decaf 36 oz.
Fresh Brew - Signature Blend Decaf 36 oz.

Wholesale Price
$59.50
$59.50
$59.50
$5.99
$5.99
$5.99
$5.99
$5.99
$5.99
$5.99
$5.99
$5.99
$5.99
$5.99
$5.99
$5.99
$5.99

Retail Price
$119.00
$119.00
$119.00
$12.99
$12.99
$12.99
$12.99
$12.99
$12.99
$12.99
$12.99
$12.99
$12.99
$12.99
$12.99
$12.99
$12.99

D3. Promotional Strategy:

Tasks
Research store-front requirements for online retailers
Research radio and TV advertising prices
Book vendor space at KBIS 2017

Due Date
6/15/2016
7/15/2016
6/1/2016

Responsible Party
Marketing Manager
Marketing Manager
Marketing Director

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D4. Sales Forecast:

Forecasted Revenue

Number of Units Sold

The above tables represent the revenue and number of units expected to sell on a monthly
basis. The market is strong and is expected to keep growing over the coming year. An increase is
expected during the months of November and December due to gift giving for the holiday
season.

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E. Implementation Strategy
E1. Overall Strategy:
The goal of the implementation strategy is to ensure Fresh2GoAuto is on the shelf of
every box store and online retailers by the launch date of October 1, 2016 as planned. It is
essential the goals below are achieved by the deadlines provided. The individuals listed below
will be responsible for the following goals.
Targeted Implementation Goals
o Establishing business
Meet with attorney to setup LLC
Meet with bank to establish business account
Obtain business license from Bensalem Township
o Facilities Setup
Meet with realtor to sign lease for building
Schedule utilities to be turned on
Schedule internet and telephone to be turned on
Obtain construction permits from Bensalem Township
Obtain safety permit and final inspection from fire department
Schedule U&O inspection and obtain permit from Bensalem Township
Obtain license from Pennsylvania Department of Agriculture
Obtain license from Bucks County Department of Health
Setup 24-Hr Customer Support Line
o Staff development
Recruiting staff for sales, warehouse, and administrative
Advertise opportunities in local media and online job sites
Conduct interviews
Establish training program
o Develop marketing materials
Package designed, approved and sent to manufacturer
Sales slicks designed, approved and sent to printer

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E2. Monitoring Plan:

The below monitoring plan is to validate we are meeting our financial, customer
satisfaction and quality control goals. Also, monitoring our financial goals will confirm we are
successful and will be profitable for many years to come. It is important for us to ensure our
customers are completely satisfied and will continue to buy our products. Our quality control
procedures and measurements will enable to us offer a quality product at all times.

Monitoring Activity

Frequency

Responsible Person

Review profits against expenses to ensure

company is running at a profitable level.

Monthly

Daffy Duck and John Smith

Review 24-Hr customer support line for a

pattern of complaints. Decide what needs to be
corrected.

Monthly

Joe Walsh and Eric Clapton

Review retail outlet inventory to ensure

product is selling consistently to meet sales
goals.

Quarterly

Jim Hurst

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Reviews Inventory for slow moving products

to decide if should be discontinued.

Semi-Annually Joe Redo and Eric Clapton

Facilitates and reviews customer surveys to

ensure we are hitting our target markets.

Annually

Sabrina DuBois

F. Financial Statements and Projections

F1. Forecasted Profit and Loss Statement:
See attached Profit and Loss Statement

F2. Forecasted Balance Sheet:

See attached Balance Sheet
G. Financial Report
G1. Financial Projections: Summarize the financial projections and the assumptions used in
estimating the financial statements.
The financial projections are based on the assumption the target market will continue to
enjoy coffee as it has been over the last few years. Month 1 and 2 will operate at a loss due to
additional expenses needed to setup the facility and staff required for success of the company.
Months 3 and 4 will see a significant increase due to increase sales for the holiday gift giving
season. Months 5 through 12 will see a steady pace of sales and expenses will even out based on
production processes being standardized and staff required will be balanced.
Fresh Brew, LLC does not see a slowdown in the foreseeable future. The government has
not imposed any import regulations of components needed to assemble Fresh2GoAuto or coffee
beans.
G2. Financial Position: Describe the companys financial position at the end of the first year.

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Fresh Brew, LLC looks to be extremely profitable by the end of the year with over
$9,000,000 in owners equity. The company will have $5,500,000 in cash, $1,500,000 in account
receivables and just over $1,000,000 in long term assets. Inventory of $1,000,000 will ensure we
have necessary stock to fulfill client orders as needed and without delay.
The companys current liabilities will not be long-term. Account payables will be about
$1,000,000 at year end. Outstanding salaries of $3,000,000 will hold steady unless there is a
reduction or increase in staff.
G3. Estimated Capital/Investment Needs:
Fresh Brews initial investment of $100,000 was needed for expected startup costs,
ongoing costs for operations, and marketing campaigns. Fortunately, this initial investment has
flourished to over $9,000,000 in owners equity. I dont see any investment from outside
institutions needed in the foreseeable future. The company has enough cash on hand for any
upgrades to machinery or additional warehouse space that may be needed.

References
Household Appliances Timeline - Greatest Engineering Achievements of the Twentieth Century.
(n.d.). Retrieved January 27, 2016, from http://www.greatachievements.org/?id=3768
Home Appliances. (2004). Retrieved January 27, 2016, from
http://www.thepeoplehistory.com/appliances.html
Smith, S. (n.d.). Global Household Appliances Industry 2014-2019: Trends, Profits and Forecast
Analysis. Retrieved January 31, 2016, from

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http://www.researchandmarkets.com/reports/2965418/global-household-appliancesindustry-2014-2019
Bohacz, L. (2016, January 19). Electrolux Debuts New Small Appliance At KBIS. Retrieved
January 31, 2016, from http://www.prnewswire.com/news-releases/electrolux-debutsnew-small-appliance-at-kbis-300205475.html
Miller, H. (2015). Household Cooking Appliances Market - Global Industry Analysis, Market
Size, Market Share, Growth, Trends And Forecast 2012 - 2018. Retrieved January 31,
2016, from http://www.transparencymarketresearch.com/household-cooking-appliancesmarket.html