The Final Proposal

Crum’s Coffee Café                             

Phone 314.775.6308               crumscoffee.com

  November 21, 2013

 

Mr. Lane Rick

City Council, Mayor

1700 N 6th Street

Desoto, MO 63020

 

Dear Mr. Lane Rick:

I would like to propose to open up coffee shop on Main Street in Desoto that will be a cozy, friendly place for locals to get their daily cup of joe. I interviewed a local who lives in Desoto and she said, “Any person considering opening a business will not choose the town of Desoto, but rather Hillsboro or Festus because nothing ever stays open here.” She is not the only local who feels this way. Many local businesses have been either bought out or shut down in this town, from either lack of knowledge on how to run a business or just not enough business. With Desoto’s population being 6,447, this cannot be the effect of the second reasoning. After creating a survey for those who live in Desoto and the surrounding areas, every person’s response thought it would be a great idea to have a local coffee shop in town.

 

 PROBLEM AREAS

There may be a resale shop, a fast food restaurant, or a local Wal-Mart, but where is the local coffee shop? Most locals want a place where they can start there day by sipping on a warm up of coffee while watching the cars go by or there is that student who wants to do their homework in a peaceful environment.  With this type of shop not being available, they resort to their home or drive thirty miles to find the next one. This town could be generating more profit, and bettering itself if there was coffee shop, considering three out of four people drink coffee in this town, according to my survey.

ADVANTAGES OF OPENING CRUM’S COFFEE SHOP

Crum’s coffee shop will give the town of Desoto generate profit and create great business by:

  • Being the only coffee shop in town.
  • Giving locals a place to hang out with family and friends.
  • Providing great coffee, food, and service.

There are a total of 100 million coffee drinkers in the United States, and 18 million dollars is spent on drinking coffee.

 

TIMETABLE

Crum’s Coffee is a café venture with an expected opening date in December of 2014 on 107 S Main Street in Desoto, Missouri. We will specialize in coffee, cappuccinos, lattes, and homemade pastries, soups, and sandwiches at a very reasonable price. There are no other shops that only serve coffee in Desoto, the closet being over thirty miles away. The target customers will be college students, and locals. There are currently no places in this town where this type of service is provided. We will be open Monday thru Friday from 6:00 am- 8:00pm, Saturdays 7:00am-10:00pm, and Sundays closed.

 

 COSTS

The costs of implementing our proposal are as follows:

Assets:

Building:                    $200,000.00

Equipment:                  $4,000.000

Furnishings:                 $2,500.00

Sound System:            $1,000.00

Computer:                   $1,500.00

Inventory:

Coffee:                                   $1,000.00

Other assets:

Cups:                           $2,500.00

Total current assets:  $212,500.00

 Liabilities:

Accounts Payable (monthly):

Water:                         $200.00

Phone:                         $150.00

Electric:                       $500.00

Coffee Distributor:     $1,000.00

Advertising:                $500.00

Wages:                        $3,500.00

Total Liabilities:        $5,850.00

 

CONCLUSION

Crum’s Coffee Shop will not only be expected to bring in revenue for Desoto, but will also provide a great place for people of any age, ethnicity, and personality. In the United States coffee is the most consumed drink out on the market.

Please call me if you have any questions about opening up this Coffee Shop. If this proposal is acceptable, please sign and return a copy of the enclosed agreement with this letter.

Sincerely yours,

Megan Crum

 

Megan Crum

 

 

 

 

 

 

 

 

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