Coffee Distribution Business Plan

Coffee Distribution Business Plan

The Coffee Warehouse is a new business providing high-quality, full service distribution of coffee, specialty beverages and beverage-related supplies to coffee houses and espresso stands throughout the Spokane and Northern Idaho market.

Steve Smith and Jennifer Smith are principal owners. Together, they have over 20 years experience in management and customer service. We are looking for additional equity capital in order to supplement our own investment. Additionally, we are looking to arrange a line of credit with a bank to finance inventory and receivables. We have committed to distribute high quality new age beverages, and have received verbal commitments by independent retailers in the Spokane/North Idaho markets to carry our product. We plan to distribute our first products within 30-60 days of finalizing financial arrangements.

The Coffee Warehouse’s sales projections are that they will be selling approximately $2229,000 in the first year. This figure will increase to $2,558,000 in the second year and $2,936,000 in the third. The net profit projections for The Coffee Warehouse are approximately $283,000 in the first year and $406,000 by year three.

Our business’ distinctive characteristics will include a combination of sales and distribution experience, management experience, and high-quality innovative products and outstanding customer service. We are the only full-service distributor that services the specialty beverage and coffee market in Spokane/Northern Idaho. The Coffee Warehouse is also authorized to distribute a revolutionary product, which would allow us immediate access to the vast majority of potential customers.

1.1 Objectives

  • To establish and run a profitable coffee and new age beverage distributorship in Spokane/Northern Idaho. The first year will see three to five employees.
  • In the first year of business, to have at least 100 customers in Spokane/North Idaho.
  • Achieve first-year sales of $2,000,000
  • Maintain a gross margin of 25%.
  • To produce a net profit of at least $400,000 by the end of the third year of operation.

1.2 Mission

The Coffee Warehouse aims to be a well-recognized distributor of specialty beverages, beverage-related supplies, and services to espresso stands and coffee shops in Spokane and Northern Idaho.

Coffee Warehouse intends to build strong relationships and become an indispensable partner rather than a supplier. We will work closely alongside each customer to help them choose the right product range for their retail outlet, determine appropriate stocking levels, pricing, display options, as well as provide promotional ideas and material to boost sales. Coffee Warehouse will collaborate with the manufacturers we represent to ensure that our customers receive the most innovative and interesting products. We do more than sell products, we offer services.

1.3 Keys for Success

  • Innovative quality products
  • Individualized customer service &#8211: Providing our customers with the products and services they need, at the time and place they prefer.
  • Spokane/Northern Idaho only fully-servicedistribution company
  • Fully integrated programs for customers to increase sales by menu development, creative promotions and advertising.
  • Exclusive distribution rights to groundbreaking products not yet on the market
  • The principal owners share over 20 years combined experience in sales management and distribution.

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