Asking for $2.5 million in loan to purchase and develop land and construct a 6,000-foot travel center.
Competitive issues -- Center will be located between Hwy 45 and 635; there is high visibility, good access, limited competition, good traffic potential.
Market segmentation -- Will offer gas, convenience store items, restrooms, showers, game rooms, trucker lounge, scales, parking -- meant to be a regular stop for truckers on busy U.S. route.
Staff -- Initially run by management team; with supplemental hourly wage staff for check out, cooking, dining, hotel maintenance, etc. Owners to take $50K each for salary, total payroll just under $500,000 per annum.
Silvera and Sons Coffee Export -- Prepares green Arabia coffee beans grown in Brazil for export to the U.S. (specialty roasters) and then sell to Brazilian wholesalers. Asking for investment to expand from 72,000 bags per year to 120-160 bags per year. Coffee differentiates because it is high end, currently demand exceeds the ability to supply, causing the company to refuse shipments and orders.
Owners -- Family owned business in its 7th year of operation; the plant has been in operation for 12 years under one of the owner's managerial expertise. Past performance shows steady sales growth, from $16.2 million to $18.4 million, 15% margin fairly steady.
Sales -- Projected $26.3, $33, and $46 million for years 1-3 forward, moving gross margin to 17.5%. Need $2.7 to $3 million to expand.
Finances -- Finance through LT Debt and increased cash flow; purchase of larger facility will require 80% debt;
Competitive issues -- Top level coffee trends are showing high-growth; key indicator for the company is inability to fill orders for past several years. Numerous coffee producers and roasters of low-mid range product; very few on high end.
Market segmentation -- vast potential in the U.S.; new relationships with high-end producers through phone selling and trips to Brazil, print advertising in trade publications, and Web based information.
Staff -- Current staff, especially management in place, key gap is controller or staff member who can analyze the changing legal and financial aspect of the business; more cost effective to plan this in house; other staff are experts in their jobs, with salaries ranging from $37-50K/annum.
Recommendations
Issue
Acme
Interstate
Silvera
Type
International Consulting Firm
Expanded truck stop with amenities in busy Dallas Hwy intersection
High-end coffee import and sales
Start Up or Existing
Start Up
REFERENCES
Acme Consulting Business Plan. Retrieved from: http://www.paloalto.com/sampleplans/bpp7/enu/live/acmeconsulting_live.pdf
Interstate Travel Center Business Plan. Retrieved from:
http://www.bplans.com/truck_stop_business_plan/executive_summary_fc.php
Silvera and Sons Coffee Export Business Plan. Retrieved from:
http://www.bplans.com/coffee_export_business_plan/management_summary_fc.php
Berry, T. (2011). Buying a Business: Know What You Are Getting. Retrieved from: http://articles.bplans.com/buying-a-business/buying-a-business-know-what-you-are-getting
State of Wisconsin. (2009). A Consumer's Guide to Small Business Investments. Retrieved from: http://www.wdfi.org/ymm/sbic/brochures/small_business_investment.htm
U.S. Small Business Administration. (2011). How Important are Small Businesses to the U.S. Economy? Retrieved from: http://www.sba.gov/advocacy/7495/8420.
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