Fuller Bookstore + Cafe Business Plan

FULLER THEOLOGICAL SEMINARY

BOOKSTORE BUSINESS PLAN 1. EXECUTIVE SUMMARY 2. PRODUCTS + SERVICES 3. OPERATIONS + IMPLEMENTATION STRATEGY 4. MANAGEMENT 5. FINANCE 6. PERSONAL COMPENSATIONS 7. APPENDIX

FULLER THEOLOGICAL SEMINARY

BOOKSTORE BUSINESS PLAN 1. EXECUTIVE SUMMARY 1.1 Mission The “Great Minds: Fuller Theological Seminary Bookstore and Café” will provide a place to encounter resources and persons concerned about the life of the mind, body, soul, and faith.

1.2 Purpose This business plan assumes the present location and structural amenities of the current Fuller Theological Seminary Bookstore and Café. It merges the bookstore and café into a single unified entity, and folds them into the Hubbard Library and IT management structure.

This proposal reorganizes and re-envisions all aspects of the current bookstore model, anticipating a rapidly changing market by staying ahead of emerging business paradigms and new technologies. This plan proposes a viable solution not just for 2011, but for 2021, by incorporating a self-evaluating internal architecture that nurtures innovation and evolution, providing an adaptable business framework that will not only maintain financial stability but steadily increase in profitably.

1.3 Market We will be engaging three major markets: 1. Textbooks The textbook market has changed, moving largely online as digital format books are increasingly available to students, and as used textbook sales via Amazon continue to eclipse localized sales. This proposal adapts to these trends by playing the online game in a new way, and using Amazon's own tactics against them. By (1) appropriating Amazon as a vehicle to allow our own local supply to meet demand elsewhere, (2) establishing an efficient and effective textbook buyback program, and (3) engineering a crisp, clean, and robust website that can serve as a gateway to products and information. Textbook sales will move from financial burden to financial viability.

2. General Books There will always be a demand for tactile media, as certain segments of the human population prefer physical interaction with information (newspapers, books, record players) over and above virtual interaction with information (websites, e-books, iTunes).

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However, this demand is shrinking, and therefore our physical book stock must be dramatically reduced in size. Book availability must be largely "order-on-demand" or digital, and while this shift will not be instantaneous, staying ahead of market transition will be key to acceptable book profits.

3. Coffee, Food, and Social Space The reinvented bookstore and café will provide a place to encounter other persons concerned about the life of the mind, body, soul, and faith. The reinvented bookstore and café will: (1) employ staff who are interested in the life of the mind, body, soul and faith and are willing and able to discuss these things and point to resources for reflection; (2) provide hospitality to all patrons of the bookstore and café; (3) the bookstore will make available resources in various formats/media for theologically centered study and research and church/community life; (4) the bookstore will enhance patron ability to search for and obtain information in various media and from all possible sources; (5) the café make available wholesome food and excellent non-alcoholic beverages; (6) encourage community development through the use of space, service and café; (7) serve as a connection between Fuller Theological Seminary and the diverse communities of Southern California; (8) unify regional campuses, (9) work to establish the Fuller Theological Seminary Bookstore and Café” as an international provider of information services.

Regarding The Refectory: Many universities and educational institutions provide multiple options for food and even coffee. By creating significant differences in menu items and culinary style, and by requiring superior caliber operations and management of both the café and The Refectory, retaining both enterprises could be seen as a gift rather than a burden. The bookstore and café will offer top-quality sandwiches, pastries, wraps, and other light, wholesome selections. All selections will be made in-house or catered, please see the expanded menu in Appendix 7.1.

1.4 Financial & Capital Requirements Based on current trends and market values, and by utilizing conservative estimates regarding new and innovative market procedures to be implemented by this business plan, we have determined the following general financial projections:

● Successfully generate sustainable revenues by the end of the first year. ● Report profits during the 9th month of operation. ● Exceed a 1.5x increase in sales and profits by the end of the third year.

Great Minds will require an initial seed investment of $250,000. The initial seed capital will be used for redesigning current store space, restructuring the current sales system, marketing, customer acquisition and retention, software and website development, and reinvested in research and development to pioneer new and innovative market business models. As the

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bookstore and café currently loses $200,000 per year, this initial venture capital transforms what would be an annual loss into a one-time expenditure that will ensure continued growth in revenue that will not only be self-sustaining but financially valuable.

2. PRODUCTS AND SERVICES 2.1 SPACE Aesthetic ●

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The bookstore space needs to be opened up and beautifully redesigned. It will be sleek, comfortable, and functional - a welcoming space that fosters a warm, comfortable, and professional environment.

Book stock will be minimized on the floor, creating a more boutique-style shop with single facings and artistic presentation. Additional stock will be organized in the warehouse and available online.

A complete interior and exterior building redesign by Michael Downs, internationally known interior designer (downsart.net). He knows that we are working within a tight budget, and therefore much of our redesign will include simple yet effective elements.

We plan to use DIY decor that is cheap to build, easy to maintain, adheres to Pasadena code, and provides a popular and artistic atmosphere (simple renovations, such as removing the drop ceiling and carpet will help embracing a slightly edgier yet polished decor style).

Functionality ●

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Variable Seating: In order to serve the widest possible spectrum of clientele, we need to provide large group tables (for studying groups of students, multiple-person business meetings, etc), and also need smaller tables (solo studying, one-on-one meetings, etc).

Several couches and coffee tables could create a more lounge-style section within the space.

As many students purchase coffee and food during class breaks, and to serve rushed customers, we plan to install an attractive coffee bar for quick coffee pickup between classes or on the go.

The space will include a conference room for student group or professional meetings that can be checked out or rented as necessary.

Free Wi-Fi to all patrons.

Readily available electrical outlets. This will increase the power requirements of the building, however these additional costs are absolutely essential.

Comfortable furniture.

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Versatility ●

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The entire space will be highly transformative, allowing it to be reconfigured for any imaginable event with little effort. This will allow us to rent out the space to the widest possible range of interested parties. Because the space will be aesthetically pleasing, functional, and highly versatile, additional revenue from rental agreements and contracts should be substantial.

A redesign of the current store traffic flow would even allow the back lot to be accessed through the garage doors, allowing us to hold “back lot” events such as film screenings or vendor showcases.

2.2 ACCESS TO INFORMATION Website ●

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Utilizing Fuller’s well-respected name and international influence, the bookstore website will serve as a gateway to the best and brightest authors and works at the forefront of the global spiritual discussion.

The bookstore website will be extremely robust and function similar to the Netflix website. The search feature will be simple, quick-functioning, and automatically display a drop down a menu that suggests the book it thinks you are looking for. Each book will have a rating option, user comments, expanded details, and clear purchasing options.

By liaising with Amazon, even a book purchased from Amazon through our site will produce profit. Amazon gives discounts to higher education institutions, free shipping, and could provide us with a modest “kickback” per book purchased.

Using “bot” and “crawler” software, our online pricing will be just as competitive as other online vendors and could, when possible, even undercut the competition.

The look of the site will be simple, clean, crisp, professional, interesting, and over-all fun and easy to use.

See attached website mock-up images in Appendix 7.2.

Hubbard Library and IT Integration Folding the bookstore management system into the Hubbard Library and IT administrative structure will provide a variety of hard and soft benefits.

Hard benefits include: ●

Access to the two most powerful data management software systems available. This software will serve as the backdoor organizational system for our website, automatically updating the site and all of our online vendor outlets whenever shipments of books are received. This cuts down employee hours and tedious data entry responsibilities. This

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software will ensure that our website, internal inventory, and online vendor outlets are all synchronized and accurate.

Thoughtful, timely IT support appropriate to the various technologies used.

Additional stock via duplicates including “gift books” or donated books to the library that could be shifted to the bookstore.

An outlet for bookstore stock that is deemed unsellable or stock multiple copies, to be sold to other libraries.

Our book stock will flux, as the library will be able to generate revenue by purchasing some of the books we cannot move, and donating multiple copies of books that they possess.

The library will explore using the bookstore to place large orders from a single publisher.

The library and bookstore will cooperate in procuring books from Africa, Asia, Europe, and Latin America.

New Books ● ● ● ● ● ●

Market knowledge is key. Staying ahead of the game, working through publisher frontlists, serving as a gateway to the newest theological and spiritual science.

Overall reduced physical stock, with easy ordering through bookstore employees and the website. Most of our stock will be single-faced, and easy to peruse and browse.

Most of our stock will be well-organized in the warehouse, available online and via bookstore employees.

Book displays will be simple and interesting.

A “Faculty Wall” will attractively display Faculty books, facilitating a closer connection between students and professors.

A Vroman’s-style “Staff Picks” Wall, featuring interesting and top-quality books that have changed the lives of bookstore and café employees, allowing them to spread the love and knowledge they have discovered with the community at large.

Textbooks and Used Books ●

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The Textbook Buyback program needs to be completely streamlined. By expediting the process and using a bit of business savvy, the buyback program could be extremely profitable. We can stock books that students initially purchase from other vendors, and resell them at a used shelf price that incorporates a fairly wide profit margin but still beats online used book prices from Amazon or other vendors.

All bookstore stock will be available online via the Fuller Bookstore website, Amazon, and Abebooks. Demand for our niche market is there, but that demand currently has no way of accessing our stock. Multiple online “facings” will help move stock at the highest possible margin, instead of losing money on unmoving stock.

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New Digital Books and E-books ●

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The bookstore team will be heavily saturated with new market innovations, spending time and energy in research and development by partnering with the newest possible ebook and digital media pioneers.

It is essential to forge new, strong relationships with publishing companies that produce digital content or digitize current published content.

E-books and digital copies of textbooks and books must be available through our website at a price just as competitive as the lowest third-party vendor.

2.3 ACCESS TO CULTURE Events The transformative space will allow us to host a wide variety of events, such as: ●

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An art gallery using existing wall space. Artists would be allowed to sell their work within the store for 1 month. This would be will be in discussion with the Aesthetics Committee, Brehm Center and the larger Pasadena and Los Angeles art communities.

Independent film screenings within the main store space or utilizing the back lot.

Author signings, book release parties, author Q+A, author lectures.

Music concerts.

Church services or religious gatherings.

Rental Agreements The reconfigured space will be marketed as a rental space for a wide variety of events that include: ● ● ● ● ● ●

wedding rehearsal dinners wedding receptions private dinners corporate parties vendor showcases special interest gatherings

These relationships with the wider, decentralized Fuller community and the larger Pasadena and Los Angeles area will increase exposure, presence, standing, and strengthen Fuller’s cultural voice and communal opportunities. These agreements will also be good business and a major source of additional revenue.

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Redesigned Fuller Merchandise All Fuller Theological Seminary Merchandise will be redesigned. A merchandise design contest may be held.

Fuller Department Integration Great Minds Meeting Place will work enthusiastically with other departments at Fuller Theological Seminary, including but not limited to alumni, development, events, admissions, public relations, publications, as well as three Schools and regional campuses. Care will be taken to insure that projects do not incur losses for the bookstore.

Fuller National Campus Integration The bookstore, and specifically the bookstore website, will serve as a unifying force between Fuller’s national campuses. By allowing quick and easy access to information and resources, and by making book stock readily available, the bookstore will serve as a centralized connection hub that increases communication and resource synthesis.

3. OPERATIONS + IMPLEMENTATION STRATEGY 3.1 The Transition Team A Transition Team has already been formed that can transform the current space from vision to reality. Managerial commitment for Matthew Schuler as Bookstore and Café Manager and Creative Director will be 2 years, to be renegotiated at the end of the two year term for contract renewal or alteration. Managerial commitment for David Bundy as Bookstore Executive Supervisor will be 2 years, to be renegotiated at the end of each one year term for contract renewal and alteration. Transitional team commitment will be six months, to be renegotiated at the end of the six month term for contract renewal and alteration.

3.2 Building the Permanent Management Team The Transition Team will locate and train a Permanent Management Team that will continue the vision of the bookstore and café after the Transition Team moves on. The Permanent Team must demonstrate its ability to maintain the high level of quality, flexibility, adaptability, and visionary agility that will reinvent the bookstore and café to ensure its continued financial stability and viability.

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3.3 Evaluation and Evolution Structure The bookstore and café will incorporate a self-evaluating internal architecture that nurtures innovation and evolution, providing an adaptable business framework that will not only maintain financial stability but steadily increase in profitably.

Financial milestones will be established to serve as indicators for our new market paradigms.

These evaluations will guide how the bookstore and café approaches online sales, book stock, used books, customer service, structural dynamics, products, services, and general operations.

These assessments will occur every month, and will involve every member of the bookstore and café staff.

Staff meetings will be held every two weeks in order to brainstorm ideas, discuss issues, make suggestions, and strengthen relationships within the employee collective.

Research and development into new business models will keep the bookstore flexible and thriving, as economists, psychologists, anthropologists, neuroscientists, and artists hold hands to develop more effective and efficient methods for structuring business dynamics.

3.4 Advisory Committee An advisory committee will support the bookstore and café transition period. It will be composed of current Bookstore Taskforce members who will serve for one year, to be restaffed at the end of that year.

3.5 Marketing The bookstore and café will launch a clever and effective marketing campaign. Marketing will be professional, creative, and interesting. Resources like Snowtone Studios and other alreadyestablished production industry relationships will aid in the marketing endeavour.

4. MANAGEMENT The Bookstore and Café will operate from 7am to 11pm, Tuesday through Sunday. Shop openers will arrive at 6am, closers will leave at 11:15pm.

Each Barista must demonstrate superior coffee capabilities, and be trained to make any available food and other menu items.

Each Book Keeper will carry an iPhone that allows them to check current book backstock, current pricing, compare online pricing, and checkout customers. This system will function similar to the Apple Store employee system.

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4.1 Transition Team - Management and Personnel Plan Position

Name

Responsibilities

Wage

Hrs

Manager

Matthew Schuler

Market research, book ordering, oversee all aspects of the bookstore and cafĂŠ, oversee implementation of the creative vision, oversee all employees, research and development

Salary

50

Supervisor

David Bundy

Oversee the bookstore and cafĂŠ management, operations, and Library/IT integration.

Volunteer

10

Transition Project Coordinator

Mike Master

Facilitate the space as a place for expression and connection, organize music/art shows, book signings, and other events. Marketing. Vendor contact. Oversee all employees and maintain excellence. Hospitality. Training.

$16/hr

30

Lead Barista

David Frere

Oversee cafĂŠ employees, Ordering.

$14/hr

20

Atmosphere Artist and Barista

Jeana Master

Work with team to find furniture, make furniture, choose paint colors, space colors, menu board design, flooring, make and collect artwork for walls, etc.

$12-13/hr

10

Events, Atmosphere and Connectedness, Barista

Lauren Meares

Create atmosphere; complete projects in non-wasteful, thrifty ways; build/find furniture, art, dishware, etc; help with any construction, cleaning, painting, planting, help to maintain the desired atmosphere; find/rotate artwork and art projects; seek out, schedule, and plan events for the space such as book signings, talk backs, concerts, art shows, readings, paper sharing, etc. (this would involve initiating and developing relationships with individuals and groups both inside and outside of the fuller community.

As a barista: connect with customers; make professional level drinks (latte art is encouraged); have a thorough knowledge of our coffee beans and be continually educated about coffee in general through articles, training, etc; maintain cleanliness behind bar and in store; keep items stocked; make sure a variety of quality music is playing in the store; take, prep, and complete catering orders; pay attention to customer requests/suggestions and pursue changes where changes can be made and are helpful.

$12-13/hr

20

Member of space design team, event planner, barista, book keeper

Joy Justus

Create and implement plan for space with design team, work as Batista and book sales representative, organize art shows and community events, fostering an atmosphere that is conducive to community growth.

$12-13/hr

30

Hospitality/event Coordinator, PR, Barista

Christina Miller

Oversee the use of the space through organizing community events, meetings, speakers, and music/art/poetry nights. I would also like to connect with local organizations to invite them to use our space (churches, nonprofits, schools, etc.).

And serve coffee.

$12-13/hr

30

Transition brainstormer redreamer, and bookseller

David Mosgofian Koeker

(I love books and used to work at a killer independent bookstore: keplers.com). I am junk on the coffee side, I'm best with the books. During the transition, dive in with redreaming the space focusing on the bookstore side.

$12-13/hr

16

Campus and Community Liaison, Menu Coordinator

Joy Mosgofian Koeker

1) Create, network, and schedule weekly/monthly gatherings for faculty, students, authors, clergy, laity, non-profits to share research/articles/books/projects in order to connect the Fuller community and the LA community in creative dialogue.

Cultivate weekly/monthly outlets for music and visual arts.

$15/hr

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2) Develop a standard of ethics to guide inventory decisions for the cafe. Create a menu that is guided by ethics. Find appropriate sources for inventory. Maintain inventory weekly and modifications to the menu. 3) Cast vision for developing best green practices in regards to resource use. Provide passive means of education on our ethical standards and products for cafe customers.

Design and construction team/ book sales rep

Matthew Meares

Work with a team to brainstorm, design, and construct the desired space.

$12-13

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4.2 Transition Team Assets Assets are temporary personnel contributing superior skills, talents, and ingenuity that will aid the transition team in re-engineering the bookstore and café into its most useful, productive, and interesting form.

Name

Contribution

Michael Downs

Interior and exterior space designer

Martin Kearney

City of Pasadena liaison, monitors remodeling process

Scott Cormode

Business analyst

Snowtone Studios

Video production, marketing, promotion, design

Randy Smith

FTS Building Services

Lauralee Farrer

Event venue contacts

5. FINANCE 5.1 Minimizing Expenses By discovering new ways of reducing expenses without sacrificing quality, excellence, or opportunity within any of our markets, and by continuing to evaluate and assess the viability of our market paradigms and operational processes, the bookstore and café will run efficiently and without financial dead weight. Some ideas include: ● ● ● ● ●

Renegotiating the rental contract price and possible purchase of the warehouse space.

Minimized physical book stock.

Minimized physical textbook stock.

Streamlining the stock and sales processes.

Negotiating discounts with vendors and publishing houses by building close professional

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and personal relationships.

Stock flexibility with Hubbard Library allowing free book acquisition.

Maintaining a clear and clever vision regarding valuable merchandise that customers will actually purchase and not investing in “weak sellers.”

Hiring employees who believe what we believe, who will work because they want to and love to, maximizing their own potential and increasing productivity, efficiency, and creativity.

Maximizing stock exposure without wasting valuable floorspace or warehouse real estate, allowing for greater sales at reduced overhead expense.

5.2 New Forms of Revenue 1. Used book sales.

2. Textbook buyback sales.

3. E-book sales.

4. Online sales.

5. Amazon sale kickbacks.

6. Stock flexibility with Hubbard Library new markets for book sales.

7. Increased café sales.

8. Increase merchandise sales.

9. Increased community exposure and patronage.

10. Rental agreements.

5.3 Financial & Capital Requirements Based on current trends and market values, and by utilizing conservative estimates regarding new and innovative market procedures to be implemented by this business plan, we have determined the following general financial projections:

● Successfully generate sustainable revenues by the end of the first year. ● Report profits during the 9th month of operation. ● Exceed a 1.5x increase in sales and profits by the end of the third year.

Great Minds will require an initial seed investment of $250,000. The initial seed capital will be used for redesigning current store space, restructuring the current sales system, marketing, customer acquisition and retention, software and website development, and reinvested in research and development to pioneer new and innovative market business models. As the bookstore and café currently loses $200,000 per year, this initial venture capital transforms what would be an annual loss into a one-time expenditure that will ensure continued growth in revenue that will not only be self-sustaining but financially valuable.

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5.4 Financial Breakdown Spreadsheet See Appendix 7.3 for financial breakdown spreadsheet and sales forecast.

7. APPENDIX 7.1 Expanded Café Menu We prefer to incorporate socially-minded businesses and products like Homeboy and Mama’s Tamales (launched by a Fuller professor as a part of the MacArthur Park revitalization effort). ● ● ●

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Homemade Sandwiches – 2 or 3 varieties of good quality sandwiches Seasonal Salads – Obtain boxes of produce from Abundant Harvest or another CSA. Salad features will rotate seasonally.

Homeboy Industries ○ Fresh breads ○ Fresh muffins ○ A variety of cookies and crisps ○ Bagels ○ Cakes ○ Pies (varies with the seasons) ○ Confections Mama’s Tamales Tim Tam Slams Fresh Fruit Fruit Juice

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7.2 Bookstore Website Mock-ups

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