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Jake Stacy & Marissa Lemon

TABLE OF CONTENTS

Executive Summary 2
Vision & Mission Statement 3
Overall Business Strategy 3
Description of Products & Services 3-4
Industry Profile & Overview 4-7
Background 4
Trends 4
Barriers to Entry 5
SWOT 5-7
Competitor Analysis 8
Marketing Strategies 9-12
Target Market 9
Advertising & Promotion 9-11
Pricing, Budget & ROI 12
Location & Layout 12
Background & Description of Management Team 13
Plan of Operation & Ownership Structure 13
Loan & Investment Proposal 13
Financial Plan 14-25
Menu 15
Startup Cost Analysis 16
Monthly Sales Forecast 17
Profitability Analysis 18
Breakeven Analysis 19
Pro Formas 21-24
Statement of Net Worth 25
References 26
Appendix 27-34
App. A, B, C, D, E, F, G, H, I

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Executive Summary

United Brews is a hybrid café and bar establishment serving coffee and food throughout the day and wine
and beer in the evening. The business will operate out of the Fairhaven district in Bellingham, Washington and
will be open 7 days a week. Our objective is to provide a unique experience to our consumer that is both
educational and inspiring. In order to do this we have lined up an array of suppliers who will help us to provide
our customers with a selection of quality coffee, wine and beer.
United Brews will partner with local and international suppliers to provide sustainable and ethically-
sourced coffee, beer and wine. We will be partnering with local bakeries and shops for ready-made food options
to pair with our three central beverages and we will also be acting as a supporter of local artisans by displaying
their work within the vicinity. United will also double as an event space, available to rent for various groups and
events.
Now is an optimal time to enter this market. With the wine, beer and coffee industries all seeing
substantial growth within the last five years and consumer spending increasing within these areas, entering the
industry now will allow us to cement a place for ourselves before the market becomes overly saturated.
Our business is designed to be a place of education, connection and celebration where friends and family
can come together to enjoy their preferred beverage while making some long-lasting memories. Our goal is to be
more than just a business, our goal is to be a pillar of the community within Bellingham, Washington. Once
established, we will continue to make adjustments relative to our consumer base’s interests in order to always
remain relevant and resourceful to our patrons.

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Vision & Mission Statement

~ Vision Statement ~
Crafting the premier experience for drinkers of coffee, wine and beer.

~ Mission Statement ~
Bringing the best of local and international coffee, beer and wine together in order to
create a space that will foster education, connection and celebration.

Overall Business Strategy

Our overall business strategy is centered around crafting an image of contemporary comfort through the
provision of three beverages which appeal to a unified customer base. We are planning to utilize a competitive
strategy that will allow us to focus on a smaller segment of the market as we believe it will be more valuable to
obtain a larger share of a smaller market than a smaller share of a larger market.
We plan to position ourselves as an alternative to the typical college-town sports bars, dive bars and party
bars. We will be serving an underserved market of individuals seeking a more intimate space that provides a
greater sense of belonging and a more carefully cultivated drinking experience.

Description of Products & Services

United Brews is a hybrid business, serving coffee throughout the day, beer and wine in the evening and
various ready-made foods that will change throughout the course of the day. We will serve these items while also
providing guests the opportunity to learn about their beverage, where it came from, and how it was made. We will
focus on having simple and specialty coffee beverages such as pour over coffee, french press, and espresso drinks.
For beer and wine, we will have an assortment curated from a variety of suppliers. For all three of our central
beverages, we will have six core options that will always be available and an additional 4 options that will be
offered on a rotational basis from different suppliers in order to support as many suppliers as possible and to

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provide a more extensive variety to the guests. We will also sell coffee by the bag, beer by the gallon, wine by the
bottle and an assortment of products including coffee cups (See Appendix A), sweatshirts and water bottles.
We also plan to place a lot of emphasis on the experience that guests receive while at our establishment.
When guests arrive they will be greeted with warmth and enthusiasm. They will have their choice of beverage,
either coffee, beer, or wine and if they order coffee, they have the choice of their brew method; either espresso,
pourover, or french press. While their coffee is being made, the staff member will engage in conversation with the
guest and educate them about the coffee they chose and the process of brewing it. For beer and wine, staff
members will also have an opportunity to engage in an educational conversation.
Our location will be a simple, rustic, but modern environment within the Fairhaven district in Bellingham,
WA. The goal of our establishment is to be a destination for people to come and enjoy for either a quick beverage
or as a place for them to spend time with their friends or colleagues, or for individuals just looking for a place to
get work done. This environment will be achieved by having community style tables as well as individual tables.
We will also seek to have local art hanging on our walls and be available for local musicians to come and play on
nights and weekends. When live music is not being played, there will be light background music playing to add to
the comfort of our guests.
In addition to our day-to-day business, we will be marketing ourselves as an event space, available for
rent for everything from receptions to painting classes. By collaborating with local business owners and making
ourselves available to residents of the area, we hope to become a more involved member of the community, a
place where friends and family can come together to make memories while enjoying a rich cup of coffee, a crisp,
cold beer, or a carefully crafted glass of wine.

Industry Profile and Overview:

Background
As a company who will be bringing together coffee, wine and beer into a hybrid cafe and bar setting, we
have looked at four separate industry reports to gain a better understanding of the market we are entering into.
The retail coffee market is a $36 billion industry with a growth rate of 3.8% over the last five years. Wine
bars in the US, a $656 million industry, saw a 4.1% annual growth rate between 2010-2015 while the larger, $26
billion bar and nightclub industry saw a 1.4% annual growth rate within that same time span. And finally, the
industry that has seen the largest growth rate within the last five years, is the craft beer industry. Currently a $5
billion industry, it saw 18.8% annual growth over the course of the last five years. What all of these industry
reports indicate is a promising future for providers of coffee, beer and wine within a cafe and bar-style setting.

Trends
Within the retail coffee industry there has been an increasing demand for specialized coffee drinks such as
espressos and there has also been a rising demand for ethically and organically sourced coffee beans. This will
work to our advantage as our business model is predicated upon the use of local and international ethically-
sourced beans. The craft beer industry has seen such a large amount of growth over the past five years that some
experts have issued warnings of a plateau as the market becomes more saturated. Fortunately, due to immense
robust consumer demand for craft beer, our business should be able to survive especially if we enter the craft beer

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market at this point in time. Within the wine industry we are seeing an increasing demand for gourmet tasting
experiences for those, both young and old, with rising incomes. Likewise, traditional bars and nightclubs are set to
see a rise in patronship as consumer incomes and spending increases over the next couple of years (NAICS 72241
- IBISWorld). All of these trends combined means we are in a perfect position at this point in time to enter the
market with a unique educational, beverage establishment.

Barriers to Entry
As the industry currently exists, there are a few barriers to entry that we have evaluated. First off, landing
prime real estate will be necessary to succeeding within this market. If we are unable to afford or select a spot in
relative proximity to our target market and within a setting conducive to what our consumers are searching for, we
will fail to be as successful as we could be should we develop within the correct space. As partners, we will be
continually evaluating and re-evaluating retail spaces as they become available to select a prime spot.
Currently, we have no existing relationships with suppliers, suppliers who will be crucial to providing a
quality product for our customers. In order to begin forming these relationships, we intend on developing a
rapport immediately to allow time to cultivate ideal relationships with our suppliers
And finally, licensing and other various regulations may pose an initial barrier to entry. Once again, by
beginning our search far enough in advance we hope to circumvent any possible miss steps associated with
becoming properly licensed.
SWOT
Below is a brief SWOT analysis of our company accompanied by our plans to rectify our weaknesses and
threats detailed below the table.
Strengths Weaknesses

- Management Team – together have - No existing reputation within the
experience in both the creative and community
logistical aspects of business and both - No previous experience owning or
have a great deal of passion for the operating a business
products and services they are offering. - Markup may be too high
Marissa is seeking a CSW (Certified - Ex: Starbucks 12oz Latte costs
Specialist of Wine) certificate, which will $2.75, ours costs $3.50
further her knowledge in the industry. - Little collateral
- Unique business model – coffee, beer,
wine, food, events, classes, live music -
Provides all that Bellingham has to offer
plus additional international selections
- Alternative to the typical Bellingham bar
- We are serving an underserved
market
- Location within Fairhaven in close
proximity to highly-trafficked café’s and
bars
- Convenience – Wineries that are three
hours away are now available to our
customers
- Additional local culture involvement
through display and support of local
artists – also additional involvement in

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community through classes, events, etc.

Opportunities Threats

- Growing per capita income level in - Established direct competitor and
Whatcom County means greater relatively high number of significant
disposable income (Bellingham Business competitors
Bureau) - Competing against well-known
- Low number of direct competitors and established businesses
- Relatively low barriers to entry - Danger of imitation
- Under-served market - Local businesses already have too many
- Close proximity to both direct and indirect established relationships with competitors
competitors – won’t be willing to work with us
- Coffee, beer and wine are all major global - Close proximity to both direct and
industries significant competitors
- Growing interest in sustainable,
ethically-sourced coffees, wines,
and beers
- Coffee, wine and beer venues are gaining
popularity and we are getting in in the
early stages
In order to overcome our weaknesses and threats, we will take the following actions:

Weakness Solution

- No existing reputation within the - Through our marketing efforts we will
community have established ourselves within the
community during the six months prior to
our opening day

- No previous experience owning or - Between now and opening, Marissa and
operating a business Jake will both be involved in internships
that will give them greater insight into the
workings of a small business

- Markup may be too high - Through experimentation and promotional
offers we will locate our sweet spot
between competitive prices and necessary
margins

- Little collateral - Time allotted between the finalizing of the
business plan and the seeking of financial
aid will allow time to garner greater
collateral

Threats Solution

- Established direct competitor and - With so many established businesses
relatively high number of significant serving just coffee, or just wine or just
competitors beer, we will be able to learn from their

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- Competing against well-known existing business models in order to
and established businesses improve our own, all while offering a
wider selection to our customers.

- Danger of imitation - As long as we can establish ourselves
within the community as a curator of
excellent beverages, the danger of
imitation should not be a worry. It will
take time for companies to imitate as it
would require that they seek out
additional licensing, permits, and possibly
commence construction which would
result in a disruption of their existing
business.

- Local businesses/suppliers already have - By establishing and developing a
too many established relationships with relationship with the community through
competitors – won’t be willing to work events, sponsorships and charitable
with us contributions, we will become an
appealing business which suppliers will
want to work with. Additionally we will
be offering them payment for their goods
that is competitive.

- Close physical proximity to both direct - By utilizing promotional materials that are
and significant competitors eye-catching we will be able to draw in
passersby. Additionally, our location
means we will already be within an area
that those seeking coffee, beer or wine are
already frequenting, which could be an
opportunity.

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Competitor Analysis:

Currently we have identified only one existing direct competitor who operates within the Bellingham area
and that is The Rustic Coffee and Wine Bar located at 1319 11th street in the Fairhaven district. Attached in
Appendix B is a competitive profile matrix that exhibits fourteen critical success factors that we will be measuring
ourselves against in comparison to The Rustic Coffee and Wine Bar as our business develops.
Below is a brief snapshot of The Rustic Coffee and Wine Bar’s strengths and weaknesses. By analyzing
this company we can learn what aspects of the business we should seek to match and what aspects we should aim
to surpass.

Strengths Weaknesses

- Great customer service - Closes early
- Delicious food - Difficult to find
- Nice, peaceful atmosphere and - Not many gluten-free or other alternative
comfortable seating options
- Well-stocked library
- Free WiFi
- Free drink program
- Use of Caffé D’arte Artisan Coffee
Roasters

In addition to our direct competitor, we have several potential competitors within both the coffee-serving
and beer and wine-serving industries. Within the coffee sector, our potential competitors include Tony’s Coffee,
the Union Coffee Shop, The Firehouse Cafe and Wood’s Coffee while the Schweinhaus Biergarten, Aslan’s
Brewery, the Fireside Martini & Wine Bar and the Vinostrology Wine Lounge & Merchant could pose a threat as
providers of wine and beer. While it is less likely that cafes will be able to quickly modify their business structure
to accommodate alcohol, there is a greater possibility that bars will more easily be able to supplement their
offerings with coffee beverages in the morning. Therefore, the real threat exists in being unable to fully establish
ourselves within the community and with our suppliers before other businesses begin to build upon their own
existing reputations and relationships within Bellingham to provide services similar to us. We plan to circumvent
this issue by opening with a strong focus on customer service and a superior product that will help us to build
customer loyalty early on and we also plan to, through sponsorships of events and community engagement,
cement ourselves as a unifier of and supporter of the city of Bellingham and the greater Whatcom County.

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Marketing Strategies:

We have established our target market based on research garnered from the data provided in Appendix C.

Target Market:
Demographically, our target market consists of those who:
- Are between the ages of 25-54
- Bellingham has a median household income of $53,657 (Dept. of Numbers) and 26.7% of
Bellingham households earn $75,000 or more a year (City-Data.com).
- Live in Bellingham and the surrounding areas
- Have at least completed some college
Psychographically, our target market will largely consist of those who:
- Are open-minded
- Value time spent with family and friends
- Like to learn and try new things
- Are environmentally conscious and value ethically-sourced products
- Are experience-seekers

Advertising and Promotion:
Overview
We intend to utilize guerrilla marketing tactics in the month leading up to our opening and in the
following three months afterwards to really snag the attention of the community. Also beginning one month
before open we will have an initial surge of promotions that will gradually be reduced over the first six months of
operations until we are at a point where we have a smaller set of rotational promotions. Additionally, we will also
be focusing on a prominent web presence by utilizing social media, our website (see Appendix D) and connected
blog. We are launching both our website and our various forms of social media six months before open to help
establish our name within the community. This will help to create familiarity which our guerrilla marketing and
promotional efforts will then help to invigorate our customer base into visiting our place of business. We plan to
utilize an array of social media platforms which will include: Facebook, Twitter, Pinterest, Instagram (see
Appendix E for an example), LinkedIn, Tumblr and YouTube. We also plan to investigate if Google+ is a
worthwhile investment of our time and resources. A large part of our online presence will be based in content
marketing in order to deliver greater value to the customer. This will include tutorials on how to properly make
french press coffee, wine reviews, and cooking videos for making the perfect beer-side snack.
Additionally, we will be using traditional print media including flyers and mailers and we will also be
advertising on the local radio stations within the county. By utilizing both digital and traditional media we will be
able to target both the younger and older members of our target market.
Guerilla Marketing
Our guerilla marketing efforts will be three-fold and will include the following operations:
● Boozing Bulbs
○ With permission from the City of Bellingham, water-filled wine, beer and cold
brew bottles will be stuck upside down into the planters lining the sidewalks of
popular downtown areas as well as Fairhaven’s main shopping block. These

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bottles, which will act as “Aqua Globes” will be adorned with labels advertising
our place of business with phrases including, “Flowers are blooming & so is the
wine!”, “Rosé is for Roses!” “Lagers are for Lavender!” and “Lattes are for
Lilies!”. This campaign will align with our company’s dedication to sustainable
practices while also advertising our business in an unconventional way. See an
example of wine bottle Aqua Globes in Appendix F for reference.
● Java Junction
○ Again, with the permission from the City of Bellingham, we will be utilizing
manhole covers throughout the city by painting coffee cups on them which will
make the steam floating out appear as if the cup of coffee is steaming hot.
Around these will be painted information encouraging a visit to United Brews.
This will be eye catching and help to advertise our morning offerings. See a
similar example in Appendix G for reference.
● Bowling for Beer
○ Our final piece of guerilla marketing will be replacing the traditional bowling
pins in the surrounding bowling alleys with bowling pins painted to resemble
glasses of beer and wine bottles. This tactic will be accompanied by a promotion
within the bowling alleys that is detailed below.
Promotions
The following four promotions are set to be staggered beginning one month before open and ending six
months after our opening date. Of these four original promotions, two will continue as staple promotions that will
continue to be offered throughout the lifetime of the business.
● Bowling for Beer
○ To build on our Bowling for Beer guerilla marketing plan, we will be holding a
promotion within these same bowling alleys during the same time. While our
pins are in use, we will be providing the same beers and wines that will be on
rotation our first week of business, to the bowling alley for sale to their
customers. We will essentially be holding a soft opening of our products, rather
than our establishment, by evaluating how people respond to the selection we
have curated. Each glass of beer or wine will be accompanied by promotional
materials. Additionally, the top three bowlers of the night will receive a gift
certificate for one free glass of wine, beer or cup of coffee, good if used within
the first month of business and at a value of $7 or less. This will help us to target
those who align with our psychographically defined target market; those who
value time spent with family and friends and those who like to try new things.
● Have Tastebuds, Will Travel - A Tasting Tour of the World
○ During the first six months of operation, we will be hosting one event a month
that will focus on a different continent’s coffee, beer and wine offerings. We will
cover Asia, Europe, Africa, North and South America and, in month six, host a
special Bellingham only event. Have Tastebuds, Will Travel will all be day-long
events spent tasting some of the world’s premier coffee, beer and wine offerings
while also operating as a tasting class. Each event, besides focusing on a different
continent’s beverages, will also offer something a little different from the one
previous, whether that be different complimentary treats, varying goodie bags, or

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special musical guests. These promotional events will work to bring the
community together, allow us to evaluate preferences, and further promote
ourselves as a business focused on family, community, education and
celebration. Depending on the success of these events, they may be repeated in
later years.
● Punch Card
○ Our punch card is one of the two promotions that we will continue to offer after
the completion of our first six months in business. The punch card will offer an
incentive for all of our patrons. On the bottom of the card, the punch images will
be depicted as wine and beer glasses on one side and coffee cups on the other.
After each purchase, the card will be punched and, after 8 purchases, they will
receive either a free cup of coffee, glass of wine or glass of beer per their
preference. See Appendix H for a mock-up.
● Early Bird ~ Night Owl
○ This promotion is the second of our promotions that we will continue to run on
an on-and-off basis after we’ve reached our six month checkpoint. During a
small window of time, when customers purchase coffee in the morning, and save
their receipt, they can return in the evening and receive one dollar off the drink of
their choice. This will help to encourage repeat customers within the same
business day which will help to cultivate a solid foundational consumer base.

By remaining in close contact with our customers through surveys, community involvement and
conversations within the establishment, we should be able to continually evolve and adapt according to our
customer’s changing tastes. By providing customers with a few staples, as well as a variety of rotationally
selected beverages, we will be able to identify what is poorly received as well as what we should continue to
integrate into our existing offerings. The very nature of our business is to always be evolving. By combining
tradition with variety we will avoid the pitfalls of a business that is stagnant while also avoiding the disarray of an
overly diversified business.
Pricing, Budget & Return on Investment:
Pricing
Our pricing strategy is aimed at remaining competitive with our direct competitor, The Rustic Coffee &
Wine Bar. They tend to sell their products just slightly below a premium as they are setting prices that are meant
to convey value to the customer while not alienating them by charging too much. As we are selling a premium
experience and product to a set of consumers in a higher income bracket, our prices will reflect this.

Budget
The marketing budget for the first year is estimated to be $2,300. We will be sticking to a low cost plan
within the first year in order to build up funds that we can then utilize to further our promotional efforts in our
second year of operation.

ROI Objectives
After our first six months in business we would like to see:
● 15% increase in total sales from beginning of fiscal year to six month checkpoint
● 10% increase in sales of pre packaged coffee beans and merchandise

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● A 30% increase in the awareness of the brand

Location and Layout:
According to demographic analysis of the Bellingham area, the prime location for our establishment
would be within the Fairhaven district. Our target market will tend to be making $75,000 or more annually.
Therefore, our location in Fairhaven is ideal as we are directly adjacent to an area with an average median
household income of $78,967. Additionally, Fairhaven is home to The Rustic Coffee and Wine Bar and Tony’s
coffee meaning that there is already a developed flow of traffic heading into the area, seeking offerings of coffee,
beer and wine.
The space itself will be around 2,000 square feet with a small kitchen/storage space that will house our
product and act as a preparation area for any food we will be serving. The space will be large enough to
accommodate a small stage for live music as well as the bar and coffee counter.
The atmosphere of the location will be both modern and rustic, appealing to the nature of Bellingham
while at the same time providing a clean, contemporary location in which to enjoy our product.
We are locating in Bellingham specifically because our offering is appropriately suited for the area. The
market for coffee, beer and wine has already been proven by the success of several local businesses including
Tony’s Coffee, The Rustic Coffee and Wine Bar, and as indicated in our market trends section. Additionally, both
of the owners have first-hand experience within the region.
In addition to our physical location in Fairhaven, our product will also be available at various fairs and
festivals throughout the year in order to build community engagement as well as advertise for our business.

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Background & Description of the Management Team
Marissa Lemon / Chief Marketing Officer & Co-founder - Marissa first fell in love with the world of wine
when she was just eight years old. Back then, her summer days were spent running through the lines of grapevines
on her grandparent’s vineyard and helping to pluck ripe grapes off the winding stems during harvest season. As
she got older, her curiosity about the world of wine grew in conjunction with her love of coffee. With a degree in
Marketing and Art History and a plan to earn her CSW (Certified Specialist of Wine) credential from the Society
of Wine Educators, she now spends her vacation time traveling the world, trying new wines and coffees
everywhere she lands.

Jake Stacy / Chief Financial Officer & Co-founder - Jake is passionate about all things business,
entrepreneurship, and serving others. His background is in accounting, receiving a bachelor's degree from
Western Washington University with a minor in economics. Jake got into coffee and beer mainly when he was in
college and he still consistently enjoys traveling to new breweries and coffee shops all around the United States.

Plan of Operation & Ownership Structure

United will be an S corporation that will be co owned equally by Marissa and Jake. We chose an S
corporation because it is a flow through entity, meaning the company itself does not pay any tax but instead the
tax flows through to each shareholder. This will help lower overall tax expense but give us the liability protection
of a regular corporation.
The organization structure will be lead by Marissa and Jake. Amongst their other roles, Marissa will
perform all marketing operations and Jake will perform all financial functions while still collaborating throughout
their respective processes. Beneath them will be baristas and bartenders that will be managed by both individuals.
Operations will be overseen and agreed upon by both parties.

Loan & Investment Proposal

United will be funding partly by debt financing and partly by equity financing. Both shareholders will
contribute $18,750 and we will also seek a $75,000 loan. The total start up capital we would have is $112,500.
This is believed to be enough to get through the startup phase until the business starts generating revenue. The
generated revenue will be the working capital in which we will use to continue operations and satisfy the
liabilities. For growth, United will focus on positive cash flow and continued revenue generation.
For the outside financing, United has looked over all possible options and has decided to obtain a
Standard 7(a) SBA loan. The rationale behind choosing this option is that we can use the proceeds for expansion,
renovation, new construction, purchase of land, property, equipment, leasehold improvements, or working capital.
Have flexibility in how we use the proceeds is a key factor in our decision for this type of financing. We will also
be able to have a low interest rate with a flexible loan length. We have chosen to have the loan be stretch out for
ten years in order to be more cash flow sustaining. With a loan term of ten years, and a principle of $75,000, our
interest would only be 2.75%.

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Financial Plan

The following section contains analysis of startup costs, monthly sales, profitability, breakeven point, and pro
forma financial statements. All of the information below is based off of a September 30th, 2016 opening date. This
date was chosen in order to be open for the busy season of the fourth quarter. According to statistics, the fourth
quarter usually tends to be the busiest time for coffee shops and pubs due to the holiday season. Our goal is to be
open and ready to go in order to reap the benefits of this busy season. Upon our ability to open, we will have four
revenue streams that include coffee and tea, beer and wine, retail, and food sales.

The items analyzed in this section were deemed the most important in determining the financial course of our
company. We believe that when we plan for as much as we can foresee, then we are setting ourselves up for
success. The startup costs were important to forecast in order to understand how much capital we needed to raise
to be able to open the business. After opening, it is important for us to maintain oversight on our profitability
because without profits, it would be difficult to maintain financial health. Even further than profitability, we
wanted to determine how much we would have to sell in order to breakeven on our investment. This research was
conducted in the breakeven analysis and was useful in determining when we would breakeven as well as how
much we would have to sell.

One of the most important indicators of financial health and one of the most important analyses in this section is
the analysis of cash flow. Cash flow analysis was important in determining when we would have positive cash
flow and how much free cash flow we would have. This is very important because with negative cash flows, the
business would not be able to continue operations.

In order to do analysis in this section, there had to be some assumptions made regarding customer traffic in the
store and the pricing of our products. Most of the calculations made regarding sales figures were derived from
forecasted monthly customer data. The relied upon customer data and menu is as follows:

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Menu

Coffee!
Size!
Name! Description! (Oz.)! !Price!!
Espresso!! One!single!shot!of!espresso! 4! !$0.75!!
Espresso!Macchiato! Single!shot!of!espresso!with!foam! 4! !$1.75!!
Espresso!Con!Panna! Single!shot!of!espresso!topped!with!whipped!cream! 4! !$1.75!!
Cappuccino! Double!shot!of!espresso!with!a!generous!amount!of!foam! 12! !$2.50!!
Drip!Coffee! Brew!of!the!day! 12! !$2.50!!
Pourover! Specialty!coffee!brewed!with!V60!or!Chemex! 12! !$3.50!!
AeroPress! Specialty!coffee!brewed!with!Aeorpress! 12! !$3.00!!
French!Press! Your!choice!of!specialty!coffee!brewed!with!French!Press! 12! !$3.00!!
Latte! Steamed!milk!with!espresso! 12/16! !$3.50/$4.00!!
Mocha! Steamed!milk,!espresso,!and!chocolate! 12/16! !$4.00/$4.50!!
Americano! Espresso!with!hot!water! 12/16! !$3.00/$4.00!!
Tea! Your!choice!of!tea!brewed!with!hot!or!cold!water! 16! $2.00!
Cold!Brew! 12!hour!brewed!coffee! 16! $2.50!
Add!Flavor! Add!your!choice!of!vanilla,!honey,!caramel,!chocolate,!white!chocolate! !$0.75!!
Add!shot! Add!a!shot!of!espresso! !$0.75!!
Beer! !
Size!
Name! Description! (Oz.)! !Price!!
Beer! A!pint!of!your!choice!of!beer! 16! !$5.00!!
Wine! A!glass!of!your!choice!of!wine! 12! !$3.50!!
Pastries!
Size!
Name! Description! (Oz.)! !Price!!
Scone! Baked!goods!from!local!bakery! !$3.00!!
Muffin!! Baked!goods!from!local!bakery! ! !$3.00!!
Cookie! Baked!goods!from!local!bakery! ! !$2.50!!
Retail! !
Size!
Name! Description! (Oz.)! !Price!!
Shirt! United!T\Shirt! S,M,L! !$20.00!!
Sweatshirt! United!Sweatshirt! S,M,L,XL! !$35.00!!
Hat! United!Hat! !$10.00!!
Mug! United!Mug! ! 12/16! !$10.00/$15.00!!
Bag!of!Coffee!! Buy!coffee!by!the!bag! 12! !$15.00\$25.00!!

! 15!
Startup Cost Forecast

Startup'Financial'Analysis
$80,000!

$70,000! $75,000!

$60,000!
$59,000!
$50,000! $53,500!
$40,000!
$37,500!
$30,000!

$20,000!

$10,000!

$+
Total!Startup! Total!Start!Up!Assets Owner!Equity Commercial!Loan
Expenses

Total startup costs for United Brews include $53,500 for expenses and
$59,000 for start up assets including getting equipment, furniture, and
building out a space to operate. In order to reach the $112,500, the
company will be financed with shareholder contributions $18,750 each
and with a commercial loan of $75,000. Understanding that there may be
some unforeseen costs, we have allocated $8,000 for unanticipated costs.

! 16!
Monthly Sales Forecast

Quarter!4! Quarter!1! Quarter!2! Quarter!3!
! Oct.! Nov.! Dec.! Jan.! Feb.! Mar.! Apr.! May! Jun.! Jul.! Aug.! Sept.! TOTAL!
!
Coffee!
!
&Tea! $4,185! $8,033! $8,505! $5,056! $5,410! $4,500! $4,388! $4,219! $4,514! $4,830! $5,168! $5,530! $64,336!
Beer!&!
Wine! $4,185! $8,033! $8,505! $5,056! $5,410! $4,500! $4,388! $4,219! $4,514! $4,830! $5,168! $5,530! $64,336!
Retail! $465! $893! $945! $562! $601! $500! $488! $469! $502! $537! $574! $614! $7,148!
Food! $372! $714! $756! $449! $481! $400! $390! $375! $401! $429! $459! $492! $5,719!
Other! $93! $179! $189! $112! $120! $100! $98! $94! $100! $107! $115! $123! $1,430!
Total! $9,300! $17,850! $18,900! $11,235! $12,021! $10,000! $9,750! $9,375! $10,031! $10,733! $11,485! $12,289! $142,970!
$20,000!
$18,000!
$16,000!
$14,000!
$12,000!
$10,000!
$8,000!
$6,000!
$4,000!
$2,000!
$+
Oct.! Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept.

Coffee!&!Tea! Beer!&!Wine! Retail Food Other

Following industry norms, we forecast an average monthly growth of about 7% with fluctuation. We anticipate the spring being a slower season
and the winter being our busiest season. We also anticipate that we will not be affected much by seasonal fluctuations because as coffee sales
decline, beer sales generally increase

! 17!
Profitability analysis

While coffee shops generally enjoy profit margins upward of 85%, we do not predict that United will
reach that due to us having beer, food, and retail along with coffee. In our first year, we predict an average
62% profit margin and operating margin of 45%. While United may not have the profit margins of
traditional coffee shops or pubs, we do have an advantage when it comes to stability. Because we serve
both coffee and beer, we are in two markets simultaneously which does lower our overall margins, it
gives us the benefit of both. We get the stability of the beer drinkers and coffee drinkers, giving us a very
strong and stable profit and operating margin.

Margin!Analysis
80%

60%

40%

20%

0%
1 2 3 4 5 6 7 8 9 10 11 12 13
$20%

$40%

$60%

Gross!Margin!% Operating!Margin!%

! 18!
Breakeven Analysis

Looking forward, in order to break even on beverages, United will have to sell $135,118. We estimated
an average revenue per sale of about $5.00 and after selling a little of 27,000 units, United Brews will
break even. We forecast that we will achieve this milestone in the 12th month of operation. In calculating
this, we excluded retail sales as they are not part of our core business model.

Sales Beverage!Breakeven!Analysis
250000

200000

BreakEven Point:!$135,118
150000

100000

50000

Units0
0 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000

$50000

$100000

Sales Variable!Cost Contribution!Margin Fixed!Cost Total!Cost Net!Income

! 19!
Pro Forma Financial Statements

First Year Income Statement
! 20!
Five Year Income Statement

Yearly!Gross!Profit!and!Income!Analysis
$80,000!

$60,000!

$40,000!

$20,000!

$%
Year!1 Year!2 Year!3 Year!4 Year!5

Gross!PROFIT!(LOSS) Net!Income

! 21!
Five Year Balance Sheet

! 22!
! 23!
! 24!
Cash Flow Analysis

Monthly)Cash)Flow)Analysis
100000
80000
60000
40000
20000
0
O20000
O40000
O60000
O80000
O100000

852,695) 64,336)

Upon analysis of the projected cash flows, the only month with net outflows in the opening month. This is
due to the high costs of opening the store. Throughout the first year of operations, net cash position
continues to increase which shows financial health. Inflows are also consistently higher than outflows.
Statement of Net Worth
Assets% !! !! !!
Cash!
!
Checking)accounts) )$40,423))
)
Savings)accounts) )$40,000))
) )
CDs)(certificates)of)deposit)) ))
) )
Life)Insurance)(cash)surrender)value)) ))
) )
Other)cash) )$1,000))
) )
Total&Cash& )$81,423))
)
Property!
!
Equipment) )$24,000))
)
Total&
)$24,000))
) Property&
Notes)and)Accounts)receivable) ))
) )
Total!Assets! !! !! !$105,423!!

!
Liabilities% !! !! !!
Accounts)Payable) )$5,000))
! Business)Credit)Cards) ) )$3,500))
) Notes)Payable) ) )$75,000))
)
Total!Liabilities! !!) !$83,500!!

!
Net!Worth! !! !! !$21,923!!
References:

● http://www.ibisworld.com/industry/the-retail-market-for-coffee.html

● http://www.ibisworld.com/industry/wine-bars.html

● http://www.ibisworld.com/industry/craft-beer-production.html

● http://www.ibisworld.com/industry/default.aspx?indid=1685

● http://www.ibisworld.com/industry/default.aspx?indid=1973

● http://www.ibisworld.com/industry/default.aspx?indid=991

● https://www.gfkmrismartsystem.com

● http://www.yelp.com/biz/rustic-coffee-and-wine-bar-bellingham?start=20

● https://www.tripadvisor.com/Restaurant_Review-g58350-d4709120-Reviews-The_Rustic-
Bellingham_Washington.html

● https://www.zomato.com/bellingham-wa/the-rustic-coffee-wine-bar-bellingham

● http://www.deptofnumbers.com/income/washington/bellingham/

● http://www.city-data.com/income/income-Bellingham-Washington.html

● http://bbjtoday.com/blog/whatcom-county-per-capita-income-grew-3-2-percent-in-2014/32893

● http://www.rusticcoffeeandwinebar.com

● http://www.frugalupstate.com/general-frugality/diy-plant-watering-globes/

● http://www.demilked.com/creative-and-unusual-manholes/

● http://places.mooseroots.com/l/338001/Bellingham-WA

26)
Appendix

A
Sample For-Sale Coffee Cup

Mockup Provided by Quincy Stacy

27)
B
Competitive Profile Matrix

28)
C
Demographic Information ~ Bar/Club in Last 30 Days Beer

Demographic Information ~ Bar/Club in Last 30 Days Wine

29)
D
Website Homepage

E
Sample Instagram Post

30)
F
Wine Bottle Aqua Globes Example

31)
G
Java Junction ~ Coffee Manhole Example

32)
H
Punch Card (Front & Back)

33)
I. Floor Plan

34)