Ryan Howe 11 17

Sports Pause

Mission Statement Mission Statement

At Sports Pause we strive to offer the best hot drinks to our customers and to keep them satisfied every time they come in, including giving them a sports page when they purchase a product.

OpportunitySports Pause is a service business. We focus on selling all of our products such as coffee, hot chocolate, and tea for a reasonable price. Sports Pause also has their very own sports page to read everyday which you’ll receive when you purchase a drink and a pastry.

Type of BusinessMy business is a service business.

Legal Structure

Sports Pause is a sole proprietorship. I will run this company solely.

Business Profile

I’m qualified to run this business when it becomes operational because:

Qualifications

I will have a degree in Business

I have had experience in the restaurant business

I took a Marketing/Entrepreneurship class

Market AnalysisIndustry Name Coffee Shop

Industry Size $10,000,000,000

Total Population Newington, Connecticut, 29,000

Target Market Target Market is male and female, aged 18-74. Median household income $50,000, 68%

Potential Market 90% of my survey takers said they’d be interested in supporting Sports Pause, or buying a product from Sports Pause

29,000

17,748

19,720

Total Population

Target Market

Potential Market

7

DemographicsPeople who enjoy hot drinks and

like sports, and reading about them. People tend to buy coffee in the morning before they go to work.

GeographicsMy coffee shop is in Newington,

Connecticut mainly people who will buy from me live in Newington.

PsychographicsThe customers who buy from me

like coffee, pastries, and like to read and talk about sports.

Buying PatternsMy customers will be loyal to my

café and will come in often.

Target Market Segment

Competitive AdvantageSportsPauseStarbucksDunkin

DonutsFactors

Affordable

Quality of Product/Service

Price

Location

Reputation/Brands

Unique Factors/Knowledge

Expensive Affordable

Very Good Very Good Very Good

DD sells all types of warm

drinks and food

All types of different drinks and some food

SP has their own sports page and

horse betting station

Nationwide Nationwide Newington, CT

Very Good Very Good Very Good

Marketing Mix

People Product Place Price Promotion

Any person who likes coffee and/or sports.

• website• sign outside• business cards

36 Fenn Road, Newington, Connecticut

Hot drinks including coffee, tea, and hot chocolate. A sports news page

Best prices competing with other coffee shops

Promotional Mix

Advertising My website, sign outside, business cards $100.00

Publicity The internet, Facebook, etc $.00

Sales Promotion

Every Tuesday and Thursday its 10% off of pastries, and the last 2 tuesdays of the month you receive a paper for free.

$.00

Total Monthly Promotional Expense $100.00

Promotional Expense MonthlyAmount

Cost of Materials/LaborMaterials

Material Description Cost/Total Quantity Cost per Unit

Coffee 1 Can $34.60 .16

Pastry 2 Dozen = $6.99 .29

Newspapers Paper $21.99/Pack .22

Total Material Cost per Unit .67

LaborLabor Cost per

HourTime (in Hours) to

Make One UnitLabor Cost per

Unit$8.50 .008 .07

Total Labor Cost per Unit $.07

COGS (per Unit) $.74

Description of One Unit of Sale: One cup of coffee, a pastry, and a newspaper.

Economics of One Unit

Selling Price (per Unit) $2.50

COGS (per Unit) $.74

Other Variable Expenses (per Unit) $.00

Total Variable Expenses (per Unit) $.74

Contribution Margin (per Unit) $1.76

Description of One Unit of Sale:

One cup of coffee, a pastry, and a newspaper.

Fixed Expense Average Monthly Expense

Insurance $125.00

Salaries of Employees $4,400.00

Advertising $100.00

Utilities (Gas, Electric, Telephone) $250.00

Rent (Newington, CT) $1,500.00

Total Average Monthly Fixed Expenses $6,375.00

Average Monthly Fixed Expenses

Time-Management PlanSchedule for a Typical Week

Total Hours in a Week = 168

0 50 100 150

New Business

Free Time

Hours

108

80

01000200030004000500060007000

Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Uni

ts S

old

Monthly Sales ProjectionsFirst Year Total Units

Sold

54,050

Monthly Break-Even UnitsMonthly Fixed Expenses

Contribution Margin per Unit

= Monthly Break-Even Units

In an average month, the company will begin to make a profit after selling 3,622 units.

$6,375.00

$1.76= 3,622 units

Projected Yearly Income StatementFirst Year

Selling Price per Unit $2.50

Number of Units Sold 54,050

Total Sales $135,125.00

Variable Expenses $39,997.00

Contribution Margin $95,128.00

Fixed Operating Expenses $76,500.00

Pre-Tax Profit $18,628

Taxes @ 15% $2794.20

Net Profit $15,833.80

Start-Up InvestmentStart-Up Expenditures

Item Where Will I Buy This? Cost

supplies BJ’s $472.26

DBA Hartford, CT $10.00

Servesafe certification

Culinary School $350.00

furniture BJ’s $6,900.00

decorations BJ’s/Best Buy $11,000

Total Start-Up Expenditures $18,732.26

Cash ReservesEmergency Fund $9,366.13

Reserve for Fixed Expenses $19,125.00

$47,223.39Total Start-Up Investment

ROS: Return on Sales

For My Business: $135,125DollarEquivalent = $0.11

ROS & ROI

ROI: Return on Investment

For My Business: DollarEquivalent = $.33

$15,833.80X 100 = 11%

$15,833.80$47,223.39 X 100 = 33%

Source Amount Debt Equity Gift

Personal Savings $10,000 X

Relatives/Friends $37,223.39 X

Totals $47,223.39

Financing Strategy$47,223.39Total Start-Up Investment

Philanthropy- I will donate 8% of all net profits to the Connecticut Against Gun Violence Education Fund

Business Responsibility- I will have an ad in the window of my coffee shop showing my philanthropy plan.

Business Responsibility& Philanthropy

Business & Personal Goals

Be busy sale wise everydayGo to a 4 year college and

major in broadcast/journalism

Business Personal

Have more than one location

Sell more food items

Shor

t-Ter

mLo

ng-T

erm

Have a job at ESPN after college and open my own sports themed coffee shop

Take a pause, drink some coffee and talk some sports

Thank you for your consideration.

Website coming soon