The Ceramic Bean
Executive Summary Business Plan
Gabriella Trull 8/15/2013
Our mission is to provide the ultimate experience whether it is with a cup of coffee or painting a mug. The Ceramic Bean is dedicated to providing their customers with the best local products and the friendliest customer service. The Ceramic Bean is a unique combination of a coffee shop and a ceramic painting business. From children and their parents, to college students and young adults, everyone can have fun at the Ceramic Bean. We offer a large variety of brisqueware, from animals and figurines, to coffee mugs, dishes, and vases at all different price points. We have something for everyone. Our friendly, Fremont neighborhood business prides itself on being an asset to our community. We try to use as many local vendors as we can. We enjoy supporting the local economy by keep our business right at home. We are proud to be affiliated with Seattle Gourmet Coffee, DaVinci Gourmet Syrups, Pacific Coast Fruit Company, and more! With so many local vendors and ingredients, you know you can get fresh products from our coffee shop. The Ceramic Bean also enjoys supporting our local charities. We are part of the Bite of Seattle, which feeds hundreds of thousands of hungry people every year. Our expected opening is in June 2014.
Funding Financial support will come from a variety of sources. The owner, Gabriella Trull, will put in 30% from her own funds, her family and friends will contribute 30%, as well, and 40% will be borrowed from Chase bank. Loan payments will be made on a monthly basis, first to the bank, and family members subsequently.
Success Factors Promotional and Stepped Pricing •
The promotional pricing strategy will build store traffic and the number of sells, and stepped pricing will build customer satisfaction by appealing to customers within different budgets.
Unique product and service •
The Ceramic Bean will be the only business of its kind in the Seattle area. While there are many coffee shops around Seattle, we will offer a second product, ceramic painting, that will give our business a competitive advantage. The closest business similar to ours is in Oak Harbor, which is north and too far away to act as a direct competitor.
Strong community interaction •
The Ceramic Bean is dedicated to building a strong relationship with the community. By participating in charity events like the Bite of Seattle and hosting our own charity events, we will build trust within our community, and bring in more customers.
Competitor is expanding •
In our market research, we found that Color Me Mine, a paint-it-yourself ceramic franchise, is planning on doubling their global presence. Color Me Mine’s rapidly growing franchise shows that the demand for this industry is rapidly growing.
Diverse Advertising Strategies •
The Ceramic Bean will use a wide array of advertising strategies in order to build store traffic and create a brand for our business. We will have several promotional events throughout the year, which will have specific mailers sent out to customers for those events. We also plan to advertise in Seattle magazine, college radio stations, and taking advantage of social media sites like Facebook, Twitter, and Instagram.
Section Summaries The following are brief descriptions of each subsection of the business plan. The summaries will go over a few main points or data from that section. Please refer to the sections for further research and information. Company Overview •
The Ceramic Bean is a sole proprietorship owner by Gabriella Trull. A sole proprietorship allows the owner to have complete control over finances and decision-making, making this form of ownership ideal for Gabriella.
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Our company short term objectives will be to decrease operating expenses, positively affect the local economy, get involved in the community, and compile a customer database for current and prospective customers.
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The Ceramic Bean will have high sales Volume because coffee is a small purchase, and thus, we will need more high sales volume to become profitable. We rely on the theory that if we have a low profit margin, more customers will buy our products because they are cheaper than our competitors. We’ll also be market driven. Our product is in high demand in the area, so we’re basing our decisions on the needs and wants of the customers.
Market Analysis •
The Ceramic Bean, as well as our competitors, provide a wide variety of coffee, tea, and baked goods, but the Ceramic Bean would be the only ceramic shop in the area.
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According to several sources, unemployment rates are projected to decline in the coming years. With a decreasing unemployment rate, we can expect that this area will be a good market for our business, because more people with have jobs, and a discretionary income.
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Seattle is home to many large companies, including: Costco, Starbucks, Boeing, and Microsoft. Amazon is also a company headquartered in the Seattle area. In fact, my research shows that Amazon plans on growing even further in the Seattle, bringing more jobs to the area. This will help our local economy, and our business.
Marketing Strategy Plan •
Our main pricing objectives will be to build store traffic and increase the number of sales (in quantity) and customer satisfaction. We will achieve this objective by using promotional pricing and stepped pricing.
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Seattle Magazine will be one advertising source we will utilize. They are the biggest local magazine, and they reach over 250,000 people. Seattle Magazine’s readers are affluent and well-educated, and
about 70% are married. So with this source, we will mostly be targeting families with children.1 Also important is that 92% of their readers are homeowners, so they are consumers that have the means to own a home and are planning on staying in the area.2 We’ll use this advertising source monthly with a half-page ad in each issue. •
Our target market is between the ages of 18-29. We know that 83% of this cohort is signed up with some social networking site. 3 This tells us that this will be one of the most effective ways to reach this demographic.
Operations Plan •
The following are a few of the resources The Ceramic Bean will use for buying and forecasting and trend analysis: Bon Appetit Magazine, Northwest Food Service Show, Pantone, Peclers Paris, and the Color Association.
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This section also includes the hiring process and qualifications for employees. The section goes into detail on the specific technical skills and personality traits, as well as, experience wanted in specific positions, like: mangers, assistant managers, key holders, and sales associates.
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Dismissal procedures are categorized into two parts: immediate dismissals and remedial dismissals. Remedial dismissals would take place after three indiscretions. The following is a list of events where an immediate dismissal would take place: Sexual Harassment, alcohol or drug abuse, stealing, intimidating/yelling at a customer, fights between other employees or customers, or tampering with customer food or products of any kind. And these are the remedial infractions: Stealing sells from another employee, employee shows up to work late, employee does not show up to work, and does not inform the owner or a manager, or employee acts poorly and shows up to work with a bad mood.
Financial Plan •
The Ceramic Bean’s projected income statement shows that we could be profitable our first year by $7,712.
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Our business loan would only be for $24,000.
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Worst case scenario, our projected income says we would show a loss of over $8000 in our first year.
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http://www.seattlemag.com/advertise http://www.seattlemag.com/advertise 3 http://www.pewinternet.org/Reports/2013/Social-‐media-‐users.aspx 2
Appendices •
Included will be the owner’s business resume.
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Also included will be several pages of credible sources used for research throughout the business plan.
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And Appendix C will include examples of some of the products we will carry, as well as, a floor plan for The Ceramic Bean.