Business Plan

Ryan Roesch

April 20, 2016

IFDM 410

1

1. Table of Contents

I. Table of Contents................................................................................................................... 2

II. Executive Summary............................................................................................................... 3

III. Vision and Mission................................................................................................................. 4

IV. General Company Description............................................................................................. 7

V. Strategic Analysis.................................................................................................................. 11

VI. Financial Information........................................................................................................... 15

VII. Intellectual Property..............................................................................................................20

VIII. Branding................................................................................................................................ 21

IX. Marketing Strategy............................................................................................................... 23

X. Conclusion............................................................................................................................. 25

XI. Cover Letter/Resume............................................................................................................ 26

XII. Resources .............................................................................................................................. 28

XIII. Addendum ............................................................................................................................ 28

2

1.0 Executive Summary

BrainWave Digital Artcade and Café, LLC is a New Mexico based limited liability café, print

shop, digital art gallery, and entertainment venue located in Albuquerque’s downtown district.

Albuquerque’s downtown area is in the process of revitalization from multiple government

initiatives, to promote increase foot traffic and make it an entertaining safe public area. The

owners hope to capitalize on these plans and be established by the time the plans are being carried

out. The café and gallery will provide authentic food and coffee, wireless internet, printing

services, art for viewing and sale, and lastly serve as a productive work environment for the

community. The owners are both UNM graduates with degrees focused on digital media and

drafting, which is why they choose to incorporate digital art and printing services to promote the

medium as a whole and build interest in the emerging market. This will also play a crucial role in

setting this café coffee shop apart from the direct competitors in the Albuquerque market.

Specialty coffee shops and farm to table style restaurants have become very popular, since people

recognize the poor quality of corporation style restaurant chains and want something new than

what they are used to from say a major coffee shop chain. Emphasis is placed on creating a

welcoming productive environment for the community that visitors experience the moment they

walk through the door through modern design aesthetics and inspiring digital art. The owners are

planning a grand opening date on January 1, 2017 and have laid out many marketing strategies to

promote the event. What better way to start out the New Year with a brand new business offering

free food and coffee on a day that some other local businesses are closed. The owners believe that

this event alone will begin to establish a solid customer base as people recognize the values and

vision of the business itself, and have planned out numerous marketing strategies to promote the

event.

3

2.0 Vision, Missions, and Goals

2.1 Personal Narrative

As an Interdisciplinary Film and Digital Media student and recent UNM graduate, the

owners have a shared interest in promoting local digital media artists, while further

boosting the local economy. Since a young age, both Ryan and Kelley have pursued

entrepreneurship through various mediums. It wasn’t until Ryan pursued his education in

film and digital media that the duo had a desire to promote digital media as a specific

genre of entertainment in Albuquerque. This thought to promote digital media, combined

with the local economy stemmed from both Ryan’s and Kelley’s personal experience. As

a Film and Digital Media student, Ryan has witnessed numerous associates struggle when

it comes to having their specific project displayed and then purchased. Upon further

research, Ryan and Kelley found a couple of coffee shops that could be potential

competitors. The first was a venue called the Kosmos, located in downtown Albuquerque.

Kosmos is intended to be a local coffee shop and art gallery; however, personal experience

has proven this venue to completely lack customers due to location unless there is an

organized event scheduled, like an art show or video screening for example. Though

BrainWave somewhat mimics the idea of Kosmos, it is anticipated to be an established

coffee shop that does not solely rely on art and venue rental sales. The second

establishment that is worth mentioning is Ideas and Coffee Coworking. This establishment

provides an environment conducive to productivity for a monthly or annual membership

fee. Though this establishment possesses an environment similar to that of BrainWave, it

is important to recognize that BrainWave will ultimately provide more services without a

membership fee. It is the gaps in these establishments that Ryan has a desire to fill. In the

4

beginning of the year, Ryan was asked to partake in a Meyers-Briggs Personality Test for

one of his classes at UNM. This test identified Ryan as an ENTP, or the inspired

innovator. This personality type is both clever and unconventional; a visionary with a

desire to interpret and influence people. ENTP is one of the rarest personality types,

accounting for a mere 3% of the general population. Some well-known ENTPs include

Steve Jobs, Thomas Edison and Leonardo da Vinci (Truity 2016). It was the identification

of this personality type that inspired Ryan to pursue an entrepreneurial lifestyle and

develop the following vision and mission statements. The desire to inspire and influence

people while nurturing through local food and beverage has largely shaped the following

vision and mission statements regarding BrainWave, LLC. It is important to establish an

environment that fosters productivity, supports the local community and provides a venue

to promote a less-familiar art medium, such as film and digital media.

2.2 Vision Statement

BrainWave, LLC will create an environment that facilitates productivity as well as

promotes creative ideas and innovative thought production, while driving revenue

through organic local food, beverage, and digital art.

2.3 Mission Statement

BrainWave, LLC will establish a modern and artistic public space, create lasting

partnerships with local companies/suppliers that share similar values, while practicing

and maintaining sustainable operations as well as a clean food and beverage outlet.

2.4 Personal Vision Statement

Own a successful business based around personal skills, interests, and values, which

will allow for new opportunities, in new places, with new and familiar individuals

5

2.5 Personal Mission Statement

Work hard as my own boss; make smart adaptive business decisions and partnerships,

while remaining open to criticism and suggestions from colleagues and customers

alike.

2.6 Business Goals

Obtain all business licenses, permits, and insurances and finalize name, brand,

and logos by October 2016.

After the first year of business, pay off all starting costs and report a profit

margin of at least 1%.

Reduce waste from business operations by 50% by recycling appropriate

materials and offering “bring your cup” promotions.

Create a coffee shop and eatery in Albuquerque that promotes creativity in

students and business professionals, alike.

2.6 Personal Goals

Graduate in May 2016 on the dean’s list, start my professional career and save

$20,000 to launch this particular business plan by January 2017.

Before January 2017, start a mortgage on a piece of property that could act as

collateral for debt financing options or another venue for monetary gain.

In April 2016, place in the UNM Business Plan Competition for Entrepreneurs

and receive additional support to get BrainWave up and running. (Failed)

Failure is all right as long as I learned something in the process. Not only did I

gain resources for my business plan but it has motivated me to make this

business plan even better.

6

3.0 General Company Description

BrainWave, LLC is a creative space for individuals or groups of all different ages,

interests, and backgrounds. This space will act as a productive work environment for the

community, as well as a venue for art and entertainment. In addition, BrainWave will

provide coffee, local food, digital and concrete art galleries, and finally printing kiosks for

digital art prints, die-cut stickers, and 3-d printed trinkets.

3.1 Business Structure Overview

BrainWave Digital Artcade & Café is a New Mexico-based limited liability corporation

within close proximity to the University of New Mexico, off Albuquerque’s historic Route

66. This area is one of the most commuted and populated parts of Albuquerque, and is

currently being revitalized by a number of government initiatives including the

Albuquerque Rapid Transit in Nob Hill. This business plan has been consummated by

owners Ryan Roesch and Kelley Smith, and if executed properly this business could

provide a unique twist to a traditional coffee house café by offering digital art galleries

and advanced printing services. Products include a variety of beverages such as coffee,

juice and tea, a variety of baked goods, a local, rotating organic food menu, as well as

merchandise that directly relates to the business itself. Additional services would include

providing an environment conducive to productivity for the community, printing,

scanning, and free wireless internet.

3.2 Company and Financing Summary

It is planned that BrainWave, LLC will be a registered corporation in the state of New

Mexico and is financed by co-owners Ryan Roesch and Kelley Smith from both personal

capital and various debt financing options. It is estimated that BrainWave Digital Artcade

7

& Café will require $100,000 for startup costs and the first month of operation. As a

digital film and media student, Ryan Roesch has had prior experience designing graphics,

websites, and producing video advertisements. This will save money spent on marketing

and startup costs that fall into this category of film and digital media. This also provides

the business with a network of digital media artists and professionals allowing for a

variety digital art to cycle through the gallery, ideally increasing interest and sales.

3.3 Products & Services

At BrainWave, LLC products and services will include food, beverage, digital art, printing

products and a venue rental for films or other digital media. A list including specific

products and services can be found in the addendum section of this plan.

3.4 Venue Rental/Live Entertainment

The busiest time for coffee shops and cafés alike is morning and early afternoon. Which is

why BrainWave will also act as a rental venue for concerts, film screenings, or other arts

and science events during evening hours. BrainWave will have state of the art video

equipment and projectors, however will not provide an advanced audio system for music

events.

3.5 Location

BrainWave will be located in close proximity to the University of New Mexico - Main

Campus, as well as the CNM - Main Campus. While searching for an ideal space along

Central Avenue, the co-owners stumbled upon a recently abandoned bar in the city’s

downtown area. The space is located at 509 Central Avenue. It was previously known as

the Blackbird Buvette, but closed in late January of 2015. Though the space may not have

been ideal for a late night bar, both of the co-owners are certain that BrainWave would

8

thrive in such a space. This location is also in close proximity to other art galleries such as

Oro Fine Art Gallery, 516 Arts, El Chante Casa de Cultura Art Gallery and Boutique, and

the Downtown Contemporary Gallery. Though the most attractive feature of this space is

the architecture that is seen throughout the building. According to the Merriam-Webster

Dictionary, an arcade is defined as an arched or covered passageway with many shops.

The architecture in this specific location includes several arches and details reminiscent of

an original arcade. If this location remains vacant, it is the intention of both co-owners to

rent this space for BrainWave, LLC.

3.6 Management

For the first year of business, it is intended that the only management will include the co-

owners of BrainWave. Ryan’s management focus will be closing the store daily, utilizing

his culinary skills in collaboration with a chef, taking inventory and any other task related

to business production – including graphic design for any merchandise or marketing.

Kelley will primarily focus on social media marketing, advertising and customer

engagement/relations. This will include maintaining various social media sites related to

and representing BrainWave, LLC. It’s not until the second year of business that an event

manager will be hired. In the third year of BrainWave, the co-owners plan to hire an

assistant manager that can oversee business when the co-owners are not present. The

management will remain rather restricted; however, both co-owners will ensure that this

will not limit the potential of the business and in such an instance adjustments can and will

be made.

9

3.7 Staffing

Aside from management, the staff of BrainWave, LLC will consist of four baristas and

four servers up until the third year of business at which point another server will be hired

each year following that up until the fifth year of business. All servers and baristas will be

considered part-time employees, along with the janitorial staff. BrainWave, LLC will also

employ a technical consultant, an accountant, a lawyer and janitorial staff in its first year

of business. The managers and technical consultant will be full time and the accountant

and lawyer will be hired for contract labor. Similar to management, the staff at BrainWave

will also remain rather limited but will not adversely affect business in any way without

being immediately addressed.

3.8 Expansion

The owners plan either expand or upgrade space with any gross profits to offer more

services. An idea that we have consulted was adding a computer lab with access to Adobe

software and other software needed for digital media, which would be run somewhat like a

co-op where there is a set membership fee that grants you 24/7 access to the lab section of

the business. This would create a community of individuals that want to get into this field

of work but don’t have the means or equipment to do so, essentially turning the lab into a

maker’s space for digital media artists. Another possibility for expansion would to invest

in a food truck, and run a mobile version of the café around town at breweries or local

events happening in Albuquerque. Mobile units are super effective as you can drive to

places or events in which the determined target market is assumed to be. Lastly a media

production company could stem from this business called ‘BrainWave Media’ opening

another LLC in the umbrella structure underneath the original.

10

4.0 Strategic & Market Analysis

4.1 Industry Analysis

According to an issue of Live Science Journal published in 2015, 54% of Americans over

the age of 18 drink coffee on a daily basis; whereas in 2010, the National Coffee Drinking

Study reported that of Americans ages 18-24 only 33% were drinking coffee daily and of

Americans aged 25-39 just 44% reported daily coffee drinking (NCA 2012). These

numbers have steadily been increasing for the past five years and will not likely stop as

the demand for specialty coffee and food establishments continue to increase, as well (R.

Toro 2015). Since the population of residents over the age of 18 was estimated to be

479,197 people living in the City of Albuquerque, it is reasonable to assume that about

258,766 people give or take drink coffee on a daily basis (US Census 2015).

4.2 Market Analysis

Albuquerque’s downtown is currently recovering from years of economic turmoil,

abandoned storefronts, and frequent exposure to both drugs and violence. The

DowntownABQ MainStreet Initiative is a community redevelopment program, created in

2008, dedicated to community economic health, local quality of life, community identity

and pride (abqmainstreet.org 2016). Also the Albuquerque Rapid Transit project is in the

working and intends to create more foot traffic in the Nob Hill and Downtown Districts,

hoping to make these areas more pedestrian friendly therefore revitalizing the life and

businesses in these areas.

4.3 Product Supply Analysis

With the nation’s growing thirst for specialty coffee shops specializing in fair trade and

organic coffee an imbalance in supply and demand has occurred. Coffee farmers in Brazil

11

experienced a drought which decreased production in 2015. However this year they are

expected to produce their yearly predictions increasing supply and lowering the price of

coffee back down.

4.4 Target Market College Students Local Business Professionals Teachers/Faculty of UNM and CNM Art Connoisseurs Downtown Residents Foot Traffic Gamers Tourists Coffee Enthusiasts Consumers of Local and Organic Food

4.5 SWOT AnalysisStrengths

Seeking a high traffic location. Local suppliers and products. Utilization of the space as a different outlet depending on time of day. Rotating seasonal food menu and specialty coffee at competitive prices. Digital media and computer hardware/software proficient. Productive environment develops customer base and keeps customer in house. Establish sustainable and creative practices.

Weaknesses New Business with a multitude of competitors. Little Experience and Personal Capital. Need for Debt Financing. Dependent on technology for many business services. Lack of knowledge of coffee industry. Unsure of outcome with government initiatives

Opportunities The demand for specialty coffee shops is rising. Expansion of space or new location Having Wifi alone makes the business attractive to productive people. Chances to network with digital artists, fellow students, and professors. Freelancing work on the side.

Threats Work overload. Coffee demand rising over supply. Existing competition New marketing strategies by other companies.

4.6 Goals and Action StepsGoal 1 - Finish Business Plan.

12

1. Stay focused and incorporate all of my work.2. Review, proofread, and present professionally.3. Rehearse presentation and present myself professionally.4. Continue branding myself with knowledge from business course.

Goal 2 - Graduate May 2016 on Deans List.1. Attend all classes, and actively listen/participate.2. Do not procrastinate and finish all assignments.3. Review all work multiple times before submitting.4. Produce quality work for portfolio.

Goal 3 - Send polished resumes to at least 5 internships or entry level positions.1. After graduation browse job market and put in professional applications.2. Continue networking with colleagues at UNM.3. Work on projects for no or minimal pay to gain experience expanding portfolio.4. Write cover letters specific to specific job and company.

Goal 4 - Save $20,000 by 2017.1. Use degree and skillset to obtain a higher wage job.2. Work full-time throughout summer 2016.3. Invest 10% of my earnings each month in a 401K.4. Budget personal capital and spend smart.

Goal 5 - Obtain all business licenses, permits, and insurances by October 2016.1. Finalize business name, logo, and start developing a brand.2. Organize all paperwork and documents pertaining to licensing.3. Consult a lawyer.4. Launch internet marketing strategies.

Goal 6 - Start a mortgage on a property or finance a car in Summer 2017.1. Increase credit score by paying bills on time.2. Increase personal capital by working hard.3. Spend money smart and budget monthly.4. Work full time and use degree to find a job.

Goal 7 - Launch Marketing Strategies in October 2016.1. Create business accounts on all social media platforms.2. Continually produce media that represents and promotes the brand and vision.3. Begin planning a grand opening.4. Network to find digital art to feature at grand opening.

Goal 8 - Develop a clean yet functional website by November 20161. Code back end of website in HTML 5 using new functions.2. Update and post menus and media that represent the company’s vision.3. Host a distinct website name, not a WordPress url.4. Cater design and promotions to target market.

Goal 9 - Collaborate with 4 digital artists to feature at Grand Opening in January 2017.

1. Seek digital artists to feature in the network I have created at UNM. (IFDM specifically)2. Develop contracts with artists in regards to print sales of work.3. Consult lawyer with contracts and make sure both parties’ interests are met.

4.6 Goals and Action Steps (Continued)Goal 10 – Have Grand Opening on January 1st, 2017

13

1. Promote event heavily, seek radio station coverage.2. Provide food, offer drink service.3. Provide outstanding customer service and develop customer relations.4. Make the event something to remember.

Goal 11 – Within the first year of business, pay of all loan debt for starting costs and make a gross profit of at least $1 by January, 2018.

1. Work hard and build a team of associates. 2. Provide genuine customer service, to build customer base.3. Build relations with local suppliers.4. Organize and stay ahead of tasks.

Goal 12 – Reduce waste from business operations by 30% through recycling.1. Develop recycling system for sorting landfill trash, compostable waste, and recyclables.2. Offer “bring your cup discounts” to reduce cup use.3. Provide in house mugs.4. Be conscious of printing to reduce paper waste.

4.7 Narrative

These goals and action steps are a crucial part of making this business plan feasible, they will

make sure the business is on track for opening at the set grand opening date as well as make sure

the business is growing and working towards the overall vision. They are a way for the owners to

measure and track the steps it takes to launch this business and if these goals are achieved there

should be no reason that this business wouldn’t succeed except for a poor location. The markets

for local specialty coffee shops and healthy restaurants are on the rise due large food and beverage

chains serving processed junk food, lower cost and quality products, obesity rates, and

inconsistent familiar products of large franchise chains. From the strategies we will be putting to

action BrainWave intends to define a new style of coffeshop cafes by utilizing art and

entertainment, one that is inspirational from the environment and nourishing by the product. It’s is

important for the owners to consider threats from competitors and be different as well as address

weaknesses and find ways to improve these qualities. At the same time the owners must utilize

their skillsets to promote the brand, market the business, produce a quality product, and act on all

opportunities. Correctly utilized these strategies will establish a return customer base.

5.0 Financials Year One Monthly

14

Ryan Roesch & Kelley Smith2016 UNM Business Plan Competition

BrainWave Business Budget - FY 2017

REVENUE January February March April May June July August September October NovemberBeverage 200-250 cups a day at an avg. price of $3 $ 20,450 $ 22,845 $ 22,300 $ 21,850 $ 21,550 $ 21,000 $ 21,200 $ 21,100 $ 21,550 $ 22,300 $ 22,650 Food 50 sales a day at an average sale of $9 $ 12,000 $ 12,600 $ 13,250 $ 14,000 $ 14,250 $ 14,400 $ 14,500 $ 14,750 $ 14,500 $ 14,250 $ 14,500 Printing 10 sales a day at an average sale of $10 $ 3,791 $ 3,841 $ 3,841 $ 3,841 $ 3,841 $ 3,841 $ 3,841 $ 3,841 $ 3,841 $ 3,841 $ 3,841 Merchandise $200 estimate per week $ 708 $ 708 $ 708 $ 708 $ 708 $ 708 $ 708 $ 708 $ 708 $ 708 $ 708 Venue Rental $500 per Event (screenings/concerts) $ 500 $ 1,000 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500

Total Revenue $ 37,449 $ 40,994 $ 41,599 $ 41,899 $ 41,849 $ 41,449 $ 41,749 $ 41,899 $ 42,099 $ 42,599 $ 43,199

EXPENSESProduction

Owners' Wage $ 3,500 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 Four Servers $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 Four Baristas $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 Technical Consultant $ 3,333 $ 3,333 $ 3,333 $ 3,333 $ 3,333 $ 3,333 $ 3,333 $ 3,333 $ 3,333 $ 3,333 $ 3,333 Ink/Paper $ 1,042 $ 1,042 $ 1,042 $ 1,042 $ 1,042 $ 1,042 $ 1,042 $ 1,042 $ 1,042 $ 1,042 $ 1,042 Coffee Bean Inventory $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 $ 4,167 Food Inventory $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 Facility Rent $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 Utilities $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 Assorted Beverage Inventory $ 1,000 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 Depreciation of Equipment $ 379 $ 379 $ 379 $ 379 $ 379 $ 379 $ 379 $ 379 $ 379 $ 379 $ 379 Merchandise $ 600 $ 600 $ 600 $ 600 $ 600 $ 600 $ 600 $ 600 $ 600 $ 600 $ 600

Total $ 32,271 $ 34,271 $ 34,271 $ 34,271 $ 34,271 $ 34,271 $ 34,271 $ 34,271 $ 34,271 $ 34,271 $ 34,271

Start Up Costs Total $ 55,295 Expresso Machine $ 10,000 Cups/Mugs/Glassware $ 1,650 Plates/Bowls $ 600 Silverware $ 400 Three Refrigerators $ 2,850 Freezer $ 550 Two POS Systems $ 750 Five Computers $ 3,800 Poster Printer $ 3,000 Photography Printer $ 400 Office Printer $ 400 3-D Printer $ 2,550 Fourteen Monitors $ 3,500 Dishwasher $ 600 Music System $ 500 Projector Screen $ 950 4k Cinema Projector $ 4,000 Ten Burner Range/Convection Oven $ 4,300 Signage $ 1,000 Office Supplies $ 25 Furnishings/Décor $ 10,000 Utilities Connection Fee $ 150 Business License/LLC Fees $ 420 Security Deposit $ 1,500 Website Design $ 500 Insurance Premiums $ 300 Two Commercial Drip Coffee Makers $ 600

Total $ 55,295

MarketingWebsite Design $ 500 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 Advertisements $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 Apparal $ 500 $ 250 $ 250 $ 250 $ 250 $ 250 $ 250 $ 250 $ 250 $ 250 $ 250

Total $ 2,000 $ 1,350 $ 1,350 $ 1,350 $ 1,350 $ 1,350 $ 1,350 $ 1,350 $ 1,350 $ 1,350 $ 1,350

Contract LaborAccountant $ 167 $ 167 $ 167 $ 167 $ 167 $ 167 $ 167 $ 167 $ 167 $ 167 $ 167 Graphic Designer $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Lawyer $ 200 $ 200 $ 200 $ 200 $ 200 $ 200 $ 200 $ 200 $ 200 $ 200 $ 200 Janitorial Services $ 840 $ 840 $ 840 $ 840 $ 840 $ 840 $ 840 $ 840 $ 840 $ 840 $ 840

Total $ 1,207 $ 1,207 $ 1,207 $ 1,207 $ 1,207 $ 1,207 $ 1,207 $ 1,207 $ 1,207 $ 1,207 $ 1,207

Monthly Expenses $ 90,773 $ 36,828 $ 36,828 $ 36,828 $ 36,828 $ 36,828 $ 36,828 $ 36,828 $ 36,828 $ 36,828 $ 36,828

Yearly Expenses $ 495,881

Yearly Revenue $ 497,883

NET Profit $ 2,002 Profit Margin 0.4%

5.1 Financials Year Two Quarterly

15

Ryan RoeschUNM Business Plan CompetitionMarch 14th, 2016

BrainWave Business Budget - Fiscal Year 2018 Quarterly

REVENUE Jan.-March 2018 April-June 2018 July-Sept. 2018 October-Dec. 2018Beverage $ 65,895 $ 64,400 $ 63,600 $ 66,500 Food $ 38,250 $ 41,650 $ 43,750 $ 41,750 Printing $ 9,750 $ 11,000 $ 9,250 $ 11,000 Merchandise $ 2,100 $ 1,500 $ 1,500 $ 2,300 Venue Rental $ 1,000 $ 2,000 $ 1,000 $ 2,000

Total Revenue $ 116,995 $ 120,550 $ 119,100 $ 123,550

EXPENSESProduction

Owners Wage $ 15,000 $ 15,000 $ 15,000 ### $ 15,000 Four Servers $ 7,000 $ 8,000 $ 8,000 ### $ 7,000 Four Baristas $ 15,000 $ 14,000 $ 14,000 ### $ 15,000 Technical Consultant $ 10,000 $ 10,000 $ 10,000 ### $ 10,000 Cups $ 5,000 $ 5,000 $ 5,000 $ 5,000 Coffee Bean Inventory $ 13,000 $ 12,500 $ 12,000 $ 13,000 Food Inventory $ 15,000 $ 16,000 $ 15,000 $ 15,000 Assorted Beverage Inventory $ 3,000 $ 3,000 $ 3,000 $ 3,000 Depreciation of Equipment $ 1,200 $ 1,200 $ 1,200 $ 1,200 Facility Rent $ 15,000 $ 15,000 $ 15,000 $ 15,000 Ink/Paper $ 3,000 $ 3,500 $ 2,500 ### $ 4,000

Total figjohdif $ 102,200 $ 103,200 $ 100,700 ### $ 103,200

MarketingWebsite Maintence $ 500 $ 500 $ 500 $ 500 Advertisements $ 3,000 $ 3,000 $ 3,000 $ 3,000 Apparal $ 1,000 $ 1,000 $ 1,000 $ 1,000

Total Marketing $ 4,500 $ 4,500 $ 4,500 $ 4,500

Contract LaborAccountant $ 500 $ 500 $ 500 $ 500 Graphic Designer $ 1,000 $ 1,000 $ 1,000 $ 1,000 Lawyer $ 600 $ 600 $ 600 $ 600 Event Manager $ 3,000 $ 3,000 $ 3,000 $ 3,000 Janitorial Services $ 3,000 $ 3,000 $ 3,000 $ 3,000

Total Contract Labor $ 8,100 $ 8,100 $ 8,100 $ 8,100

Total Expenses $ 459,700

Total Revenue $ 480,195

NET INCOME/(DEFICIT) $ 20,495 Profit Margin 4.27%

5.2 Financials Years 3-5 Yearly

16

Event Manager $ 15,000 $ 15,000 $ 15,000 Janitorial Services $ 10,000 $ 10,000 $ 10,000

Total Contract Costs $ 29,500 $ 29,500 $ 29,500

Total Expenses $ 445,300 $ 456,500 $ 446,500 $ 2,303,881

NET INCOME/(DEFICIT) $ 22,680 $ 25,700 $ 29,900 $ 100,777

Profit Margin 4.85% 5.33% 6.28% 4.19%

17

5.3 Financial Analysis

The attached spreadsheets are representations of the anticipated 2017 -2021 budgets for

BrainWave Digital Artcade & Café. It is important to note that the first year of business is

projected to only gross a profit of two thousand dollars however all the startup costs will have

been paid off. Because some values are estimates, I often overcompensated for costs and

undercompensated for revenue. Aside from management and employee wages, a large portion of

the budget will be spent on facility rent, food and beverage inventory and state of the art

equipment and any profits will be considered for expansion. As many as fourteen monitors will be

purchased and placed throughout the establishment to promote digital artwork created by local

artists. A 4k projector and screen will provide added revenue as a venue for film and digital art

screenings. The marketing costs will be minimized and a graphic designer will not be needed, as

these are services I can generally provide for myself given my experience and skills acquired

throughout my program at UNM. However other contract labor will be needed from lawyers and

accountants. After putting together a budget based on as much data and research that was made

available to me, I feel as though my business idea is completely feasible. The reason as to why my

idea is so ingenious after analyzing the budget is that the projected sales of food and beverage are

comparable to any other small café or coffee shop; however, the added revenue from digital art

prints and venue rental fees allows for a higher projected profit margin than other business that

don’t offer the added services of printing, art, and an entertainment options. With that being said,

it is always important to consider the risks. The only potential risk is the fact that equipment for

digital media printing and viewing will hold a high rate of depreciation. As new technologies

come out every year, previously acquired equipment will become outdated; this must also be

taken into consideration within the budget. It is important to also keep in mind that

18

5.3 Financial Analysis (Continued)

most of the products carried in our inventory will be local, therefore supporting Albuquerque’s

economy. It is the intention of our business to promote money being returned to the local

economy and then spent again at our establishment. In conclusion, I feel as though this idea is

completely feasible for a successful business because it is unlike any other café within the area

and offers products and services that appeal to students, entrepreneurs and businessmen alike.

5.4 Funding

The owners will invest $20,000 of their own personal capital to get BrainWave up and running.

As well, they are seeking debt financing options for an $80,000 business loan from the bank or

family sources. These steps are necessary to acquire the needed $100,000 of capital to cover start-

up costs and the first month of operations, after that the business should be working toward being

financially sustainably and paying off start-up cost in the form of loans. If expansion plans to add

a digital media lab are feasible the owner will apply for different grants offered by the state of

New Mexico and use that to supplement any gross profits over the first couple years.

19

6.0 Intellectual Property

BrainWave does not have too many assets that will act as intellectual property that need to be

protected by copyright or trademark laws. Any logos that the company associates itself too will be

trademarked to make that our unique logo, preventing any unauthorized use of the logo that

doesn’t represent the values and vision of the company. The main thing we need to worry about in

this business is the fact that we are offering digital prints of artist’s work that is being featured.

Obviously an arrangement will be need to be made with the artists that cycle in and out of the

gallery in the form of a contract. In the contract rights and licenses to commercially sell their

artwork will be granted to the company in exchange for a decent negotiated percentage of any

print sales will be given to artist in form of royalties. These contracts we will consult a lawyer

with to make sure that the agreement doesn’t have any shortcomings for either party as well as

both parties’ needs are met. This will promote artists doing business with BrainWave and

hopefully begin to build a more geographically expansive network of upcoming digital artists the

company could possibly feature in the future. Lastly an attempt will be made to copyright our

whole name being “BrainWave Digital Artcade and Café” since BrainWave is one word and

“Artcade” is a play on words this name should be copyrightable. After checking the copyright

database I found no matching copyright and found also that “BrainWave Media” is up for grabs

now. In the event that business is thriving and we seek expansion into different business markets

the name “BrainWave Media” will be re-copyrighted since it is dead as nobody put in paperwork

for intention to use and start a small media production group due to increase traffic of the film

industry in Albuquerque.

20

7.0 Branding

I have developed two graphics that I feel represent myself and the interests of the company, in this

section they will be shown and described.

7.1 Personal Brand

The first graphic of the rhino outline underneath a word cloud is my personal brand describing my

personality, what I like to do, and my values. The visualization has a deeper mean than just the

word cloud, the reason I choose a rhino for the outline is because I believe this to be my “power

animal” one that I can relate my own attributes to. Rhinos stay calm and collective, but when

something needs to get done they take care of the problem, something in which I believe I

embody on a daily basis. The content of the word cloud was shared to me by colleagues I have

worked with the past four years of my college careers on multiple different mixed media projects.

21

7.2 Comapany Brand

This graphic encompanies three different symbols, the waves of the Wifi symbol, a brain, and a

coffee bean. These objects symbolize the vision of BrainWave, LLC we want to create a public

space that people can come to brainstorm, share information and ideas, all acompanied by coffee,

beverages, and local authentic food. The waves represent the sharing of information espeicially

in the emerging flourished digital era of technology, art, and science. The coffee bean brain

represents how the environment will fostor the human intelect of our customers through

comforting yet energizing food and beverage and a relaxing productive space. Both of these

graphics will be used in forms of marketing the company and my personal brand, by there

presence on social media, the companies website, and advertisements.

22

8.0 Marketing Plan

The owners plan to run, update, and operate marketing initiatives and strategies on a daily basis

with media expertise’s of the owners in all different forms, photography, video, and graphics will

just be some examples of digital media that will promote the business and grand opening event.

The next sections will outline and analyze marketing objectives and strategies. More information

on market analysis and industry analysis can be found in the strategic analysis section.

8.1 Marketing Objectives

Get the word out about the grand opening of BrainWave Build a customer base and foster loyalty Strive to gain repeat customers at the cafe Target all ages and the intended market. Build interest in digital media Increase traffic and recommendations of the café. Gain 10% followers on social media monthly.

8.2 Marketing Strategies

1. Create social media accounts on all platforms, upload descriptions and media of what the business is about and event information.

2. Build website specifically for BrainWave that announces weekly specials, menus, featured art, and any upcoming events.

3. Visit other coffee shops, pass out flyers in areas known to be occupied by target audience, as well as post them on student and coffee shop bulletin boards.

4. Meet with editor of the newspaper at the University of New Mexico and discuss possibilities of advertisement or story coverage of the emerging business of a UNM entrepreneur.

5. Promote grand opening.6. Pay for local radio time or have a radio station broadcasting at the grand opening of

BrainWave Digital Artcade and Café.7. Invite all friends and family of the owners and announce a new business venture to all

colleagues and supporters. 8. Develop loyalty program for returned customers.9. Make videos and take photos that represent and promote the business and pollute them on

social media platforms.10. To encourage a visit and returned customers 500 coupons will be passed out for free

coffee or a percentage off the food to be used within the first three months of business.11. The owners will attempt to secure a story in the business section of the Albuquerque

Journal which sometimes profiles emerging businesses in the Albuquerque area. They will also encourage food critics to write reviews on the new establishment.

12. Raise awareness of brand and business vision and initiatives.

23

8.3 Competitive Analysis

There are numerous other cafes and coffee shops in the downtown university area of the

Albuquerque metro area. What is important is to have competitive prices without sacrificing any

quality of the product and services provided. The success over competitors will come with being

creative and different than the competitors in the area. What will make BrainWave stand out will

be the quality of food and beverage, culinary creativity, an Artcade of emerging digital media, and

genuine service in a comforting productive environment. Through strategically placed

advertisements and strategic relationships with companies that have similar customer

demographics getting the word out and raising awareness of the business should be no problem if

marketing strategies are successfully carried out.

8.4 Financial Objectives

Reach profitability within the first year. Increase profit margin each sequential year. Reduce food and beverage costs through efficiency and good supplier relations. Apply yearly profits to upgrading and expanding the business and its brand.

8.5 Marketing Tactics

1. Implement a customer loyalty program that will grant rewards when reaching a dollar amount or purchasing a certain number of beverages.

2. Begin a customer feedback system within the café and have options online for customers to review and provide opinions.

3. Promote staff incentive program, rewarding them for good service with monthly bonuses or entertainment options.

4. Hold at least one event every month that will promote topics that the target market is believed to enjoy, whether it be a music concert, art and craft fair or even a local movie premiere.

5. Offer afternoon coffee discounts and a “bring your own cup” special to promote sustainable operations and efficiency gains.

24

9.0 Conclusion

In conclusion, by following this plan, BrainWave Digital Artcade and Café will meet its financial

goals and the vision of being a successful local business while also supporting the community’s

creativity and intellect. Are target market will be students, faculty, and local business people as

well as tourists and foot traffic downtown. The owners see the cities plans to revitalize route 66 in

the areas of downtown and nob hill as an opportunity to get established before these plans are

executed with hopes of it being an effective factor for increase visitation and developing a loyal

customer base. We are shooting for a customer base made up of students, faculty, local

businesspeople and tourists which we will be in an area of town that attracts our target market.

There are a lot of competitors in the food and beverage market as everyone need to eat and drink

to carry out their day to day actions, which makes it a market scattered with direct and indirect

competition. It is important to follow this plan step by step because this will separate and make us

unique from the competition. It is important to note that the high quality of food, printing service,

and digital artcade of inspiring art will set us apart from competitors. Due to the companys

aggressive marketing strategy and epic grand opeining, establishment of the business as a

“unique” entity in the food and beverage industry, careful development of a quality product

coupled with strategic partnerships with local suppliers all go hand in hand with a profitable

revenue model. The owners seek to capitalize on the potential of this plan and business will

provide a lucrative return to the initial investment of the owners if all strategies are successfully

executed. Expecting that BrainWave will secure its funding requirement for startup costs and first

month of operations, the business will be able to achieve financial success and provide a

productive environment for the community for many years to come.

25

10.0 Resume and Sample Cover Letter

RYAN ROESCH5900 Alice Ave. NE

Albuquerque, NM 87110(505) 449-8504

rroesch298@gmail.com

April 14, 2016

Esme RibarovskiDirector, Human ResourcesRed Bull Media House1740 Stewart Street Suite 320Santa Monica, CA 90404

Dear Ms. Ribarovski,

I recently discovered a job posting for Video Producer at Red Bull Media House in Austria through the company’s website and would like to be considered for this position. I have had many opportunities given to me by Red Bull through sponsorship of New Mexico Extremes Sport Association to inspire my passion of extreme sports and cinematography. With my technical knowledge of multiple media formats and creative problem solving skills, I would be a solid candidate for the position.

I am familiar and fascinated with the vision and mission that Red Bull inhabits in today’s media market. I know that Red Bull Media House is a global media company that produces and distributes cutting edge media that is original and as astonishing to a global market. I feel like the fascination I possess for watching and partaking in extreme sports along with my technical media skillset and creativity would enable me to help achieve your company’s goals.

Also listed in my resume, I have a strong knowledge of all steps of media productions, my focuses being in cinematography, editing, effective planning, and visual effects, as well as the ability to work well in a team and listen to specific instructions and feedback. Lastly I have experience working in customer service in a fine dining restaurant, which has helped me develop excellent communication, customer relations, and leadership skills.

I’d like to set up an appointment to talk further with you about how my skills and experience could be beneficial to Red Bull Media House. I will follow up with you sometime in the near future to see about this possibility. Thank you for your time.

Sincerely,

Ryan RoeschRyan Roesch

26

RYAN ROESCH5900 Alice Ave. NE Albuquerque, NM 87110  |  rroesch298@gmail.com  |  505-449-8504

OBJECTIVE Hard working and passionate interdisciplinary film and digital media graduate with strong leadership and communication skills seeking to obtain an entry level video production position at Red Bull Media House where I can apply my diverse skillset.

SKILLS & ABILITIES

Cinematography Video Editing Graphic Design Visual Effects Animation

Speak Spanish Computer Hardware/Software Competent Proficient with Adobe Software Stage and Set Lighting Techniques In-field Audio Recording

EXPERIENCE DIRECTOR OF PHOTOGRAPHY “BENCH” LIVE-ACTION STUDENT FILMAUGUST 2015 – MAY 2016

Prepared pre-production aspects such as story boards and shot lists to successfully execute filming on set having complete control over camera settings and placements.

LEAD ANIMATOR/EDITOR “KARROT” SHORT ANIMATIONJANUARY – MAY 2013

Managed and produced video animation with Adobe After Effects for a 2d short animation.

ART DIRECTOR “SHE & HE” LIVE-ACTION STUDENT FILMJANUARY – MAY 2015

Scouted for locations, managed set props and backgrounds, and actor outfit design.

FINE DINING SERVER CORN MAIDEN AT HYATT TAMAYAOCTOBER 2013 - CURRENT

Provide outstanding customer service and develop client relations, while maintaining a professional appearance and stature.

FRONT END SERVICE REPRESENTATIVE WHOLE FOODSAUGUST 2010 – MAY 2013

Provided outstanding customer service and contributed to sustainable operations.

EDUCATION UNIVERSITY OF NEW MEXICO, ALBUQUERQUE, NMBACHELORS OF FINE ARTS IN PRODUCTION

Expecting to graduate in May 2016. Coursework in Cinematography, Programing, Video Editing, and Visual Effects. Graduating on Deans List.

LA CUEVA HIGH SCHOOL, ALBUQUERQUE, NM DECA experience, went to State Championship for Marketing category.

REFERENCES References provided upon requests27

11.0 Resources

I. Joseph Boyd – Colleague – jboyd26@unm.eduII. Garrett Goeckner – Colleague – garrettgoeckner@gmail.comIII. Jared Rendon-Trompak – Colleague – jrtrompak@gmail.comIV. Zach Zahorik – Colleague – zahorikzs@gmail.com V. Lindsy Campbell – Colleague – camplinds33@gmail.comVI. Sam Spinale – ColleagueVII. Mia Casesa – Colleague – mcasesa@unm.eduVIII. Regina Chavez Puccetti – Mentor – rchav217@unm.eduIX. Rick Shepardson – Mentor – rshepa@unm.eduX. Deborah Fort – Mentor – debfilms@unm.eduXI. Alberto Solis – Mentor - albertos@unm.eduXII. Peter Lisignoli – Mentor – plisign@unm.eduXIII. Andrea Polli – Mentor – apolli@unm.eduXIV. Eric Stumpf – Friend/Chef XV. Jeffrey Hertz – Friend/Visionary – jeff1jew@unm.eduXVI. Mark Weiler - Family Friend/ Producer – wiepro@comcast.netXVII. Jared Adams – Friend/Farmer – jadams024@gmail.comXVIII. James Bass – Friend/Colleague

12.0 Addendum

28

12.1 Proposed location areas and competitorsWe are considering the old Blackbird bar space downtown at 8th and Central, however we are still looking for other retail space options. The boxes are our desired areas for a location and locations of other coffee shop cafes are shown as pins. The owners believe that the largest box around I-25 would be the most effective location as we could be the first coffee shop directly off the freeway.

12.2 Rough Beverage MenuDrink Cost Range Single 12Oz. Dbl. 16 Oz. Triple 20 Oz. $3 Special

Drip Coffee 0.45 - 0.65 1.95 2.25 2.50 3Espresso 0.50 - 0.70 2.05 2.45 2.65 3AmericanoCappuccinoLatteChaiLondon FogHot ChocolateHot TeaCarmel Apple CiderCold Brew

0.55 - 0.750.65 – 0.850.72 – 1.000.65 - 0.900.70 – 0.950.55 – 0.750.40 – 0.650.55 – 0.750.70 – 1.00

2.252.953.753.353.452.701.952.752.75

2.653.654.203.954.203.352.253.253.25

2.853.954.854.354.553.652.553.753.75

333333333

12.3 Food MenuFood will consist of smaller breakfast and lunch items related to the season that will feel like something from a fine dining restaurant. Chef Eric Stumpf will be consulted when putting together a specific menu built for the season.

29