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