The Organic Bean

Business Plan 2017

1.0 Executive Summary

Introduction
The Organic Bean is an organic coffee shop that is located in Chicagos Millennium Park. The
park offers year round tourism as well as local traffic through the area. The beans come from
organic roasters in Columbia. The companys plan is to build a strong network and known
experience for our customers. The company strives to create an eco-friendly environment with
the use of recycled cups and other products. The prices will be moderately expensive due to
the organic ingredients used. However, the location in Millennium Park will allow for a wide
range of clientele that will gladly enjoy our beverages.

The Company
The Organic Bean is an organic coffee shop managed and owned by three partners. The three
partners are highly experienced in their respective fields of batista, culinary arts, and
management/sales. The funds used to startup the company will come from saved up earnings
from each of the owners. In order to fulfil our desired product and services, The Organic Bean
will be using a ten-year Small Business Administration (SBA) loan to provide financial backup.

The Organic Bean intends to hire 10 baristas, along with the 3 owners, to handle customer
service and day to day operations.

Products and Services

The Organic Bean offers many products that suit the needs of any individual. The organic
coffee bean imported from luxurious Colombian grown roast offers the best tasting espresso
and coffee customers will have encountered. Each of the products offered at The Organic Bean
are made with respect to the customers desires.

The Market
The Organic Bean, being located in Millennium Park in Downtown Chicago, offers a wide range
of customers. Tourists from around the world as well as local traffic will encounter the dramatic
scene of The Organic Bean. Our business will cater to urban lifestyle of healthy, organic living
while also giving way to the luxurious desires of the tourists visiting the urban environment.
Downtown Chicago offers coffee desire at all times throughout the year. Hot summers and
brutally cold winters aid in our hot, iced, and blended products that customers can enjoy not
only in specific seasons, but at all times.

2.0 Mission Statement

The Organic Bean aims to provide luxurious, organic coffee roasts as well as eco-friendly
environment and services to Chicago locals as well as tourists roaming through Millennium
Park.
3.0 Organizational Structure
The Organic Bean is a coffee shop operating in Downtown Chicagos Millennium Park. There
are three owners. Samantha Banuelos has organizational skills as well as business operation
experience and has had multiple unique job opportunities in the past. Sabrina Baftiri is another
one of our owners. Sabrina brings hard work and dedication into the shops operations and
creates a workplace atmosphere to enable success. Our final owner, Austin Sasser has a year
of coffee shop experience working at a local shop. He brings coffee making skills as well as
creative drink ideas to the company.

Personnel Plan
The Organic Bean plans on creating a successful, profiting business without compromising the
quality of the product. We expect great additions to our owners to create the best experience
possible.

Personnel
Personnel
Plan
2017
Managers (3) $234,000
Baristas (10) $323,000

Total People 13

Total Payroll $557,000

Facilities
The Organic Bean is located on Chicagos Millennium Park plaza next to Cloud Gate sculpture
and artwork commonly known as the Bean. This location is expected to bring in hundreds of
tourists a day accounting for more than 75% of our sales.

4.0 Marketing Strategy

The Organic Beans marketing strategy is to attract out of town tourists to try and fall in love with
our delicious, organic products.

Target Audience
At the Organic Bean, we intend to target the Chicago tourist population. By offering products
that may be foreign to others, we intend to create a strong Chicago spirit through our beverages
and service. In addition to tourists, we intend to target the day-to-day Chicago workers in the
future by opening more stores in the future.

Market Needs
On hot, summer Chicago days, tourists and locals are in need of cooling beverages that satisfy
their cravings. The Organic Bean will offer just that with our many options. While also serving
summer days, the winter is full of brutally cold mornings that customers would love to warm up
with a hot cup of our coffee.

Advertising
An advertising technique we are using is free of cost. We plan on creating public art through
projects around the city as well as sidewalk art to promote our company during the spring and
summer months. Each season will feature a glorious sign in Millennium Park advertising our
delicious drinks. In addition, The Organic Bean will have a website available listing our options
as well as specials for the week.

5.0 Distribution and Sales Plan

Distribution
The distribution of our product will solely be purchased in our retail store and future stores we
hope to open. In turn, this will create a home like feel for our customers foreign and domestic.

Sales Strategy
The Organic Bean intends to sell items that we feel customers in the Chicago area as well as
foreign visitors will appreciate.

6.0 Financial Plan

The following information guides our financial plan for the next three years of business. We will
have a starting owner contribution of $200,000 as well as a loan from the Small Business
Administration for $100,000 to begin this company.

Sales Forecast

Sales Forecast
2017 2018 2019
Unit Sales
Espresso
234,000 279,000 322,000
Drinks
Food Items 90,000 103,800 110,360
Other 0 0 0
Total Unit Sales 324,000 382,800 432,360

Unit Prices 2017 2018 2019

Espresso
$4.50 $4.85 $5.10
Drinks
Food Items $1.25 $1.35 $1.45
Other $0.00 $0.00 $0.00

Sales
Espresso
$450,000 $489,905 $560,880
Drinks
Food Items $91,800 $102,630 $122,926
Other $0 $0 $0
Total Sales $541,800 $592,535 $683,806

Direct Unit
2017 2018 2019
Costs
Espresso
$1.30 $1.30 $1.30
Drinks
Food Items $0.50 $0.53 $0.55
Other $0.00 $0.00 $0.00

Direct Cost of
Sales
Espresso
$33,750 $38,981 $45,023
Drinks
Food Items $43,000 $49,665 $57,363
Other $0 $0 $0
Subtotal Direct
$76,750 $88,646 $102,386
Cost of Sales

Break-even Analysis

Break-even Analysis

Monthly Units Break-even 18,997

Monthly Revenue Break-
$42,843
even

Assumptions:
Average Per-Unit Revenue $3.22
Average Per-Unit Variable
$0.84
Cost
Estimated Monthly Fixed
$23,094
Cost