Brittany, Christina, Stuart, & Trang

THE 3RD SPACE

The 3rd Space

Vision: To reinvigorate members one cup at a time.

Mission: The place where ideas flow and memories are made, over craft coffee and fine wine.

Slogan: The Place Between Destinations

Opportunity: Start up on a college campus. Objectives

Create a Comfortable Atmosphere Promote Local Business

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The 3rd SpaceBusiness ModelCoffee & Wine EmporiumExpanding College CampusIncorporating local business

Future Model Showcase International Products

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The 3rd SpaceProducts:

CoffeeCompetitively PricedLocally producedInternational Showcase

WineFinger Lakes WinesMonthly Showcase

We will have an agreement with Keuka College saying we are to be the only established coffee shop on campus.

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The 3rd SpaceTimeline:Keuka College 10 Year PlanNeed for college oriented business

General Partnership - Equal Shares

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The 3rd SpaceMarkets Plan:Target Market - College Students, Local Community, & Summer Tourist

Currently the 1000 students on campusExpected growth over 10 years - 100%

College Students have high demand for coffeeFinger Lakes Wine Industry

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The 3rd SpaceAdvertising Process:FacebookFuture: WebsiteFuture: App

Advertising within local areas

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The 3rd Space

Sunday Monday Tuesday Wednesday

Thursday

Friday Saturday

1pm – 10pm

8am – 1pm

8am – 1pm

8am – 1pm 8am – 1pm

8am – 1pm

8am – 11pm

3pm – 11pm

3pm – 11pm

3pm – 11pm

3pm – 11pm

3pm – 11pm

5pm – 11pm

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Weekly Schedule

The 3rd SpaceIndustry: Service RestaurantKey Competitors: (all located in Penn Yan, NY)Dunkin DonutsMcDonaldsKeuka Lake Coffee Roasters/JAVA-GOURMETFlour Shop Cafe & Bakery

Location is convenient, students do not have to drive to into Penn Yan

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The 3rd SpacePeople: Partners each start off managing

Christina Christensen – 22.5% Stuart Gardner – 22.5% Brittany Gleason – 22.5% Trang Le - 22.5%

Limited Investor – 10%

Employees: Recruit, select and train college students experience and high levels of leadership

Community: Local connections with coffee roaster to provide product

Support: Keuka business faculty providing consulting

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The 3rd SpaceFinancials:

Start-up CostsProjected Sales Mix3 Year Revenue Projections3 Year Profit/Loss Forecast3 Year Cash Flows Projections

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The 3rd Space

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Summary Statement

Sources of Capital Owners' and other investments $80,000 Bank loans $360,000Total Source of Funds $440,000

Startup Expenses Loan Down Payment - 10% of Loan $40,000 Capital equipment $20,000 Location/administration expenses $3,250 Opening inventory $1,250 Advertising/Promotional Expenses $3,700 Reserve for Contingency $10,000 Working capital $21,800Total Startup Expenses $100,000

The 3rd Space

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Coffee (34% of total unit sales) Smoothies (12% of total unit sales) Per Unit Selling Price 1.85 Per Unit Selling Price 3.25 Per Unit Cost 0.52 Per Unit Cost 0.87 Per Unit Gross Margin $'s 1.33 Per Unit Gross Margin $'s 2.38 Per Unit Gross Margin % 0.72 Per Unit Gross Margin % 0.73Specialty Coffee (24% of total unit sales) Wine (07.5% of total unit sales) Per Unit Selling Price 3.25 Per Unit Selling Price 4.75 Per Unit Cost 0.82 Per Unit Cost 2.10 Per Unit Gross Margin $'s 2.43 Per Unit Gross Margin $'s 2.65 Per Unit Gross Margin % 0.75 Per Unit Gross Margin % 0.56Coffee Office Pack (1% of total unit sales) Baked Goods (21.5% of total unit sales) Per Unit Selling Price 12.00 Per Unit Selling Price 2.49 Per Unit Cost 2.78 Per Unit Cost 0.80 Per Unit Gross Margin $'s 9.22 Per Unit Gross Margin $'s 1.69 Per Unit Gross Margin % 0.77 Per Unit Gross Margin % 0.68

Unit Base Average Per Unit Unit Selling Price 2.811 Average Unit Unit Cost 0.835 Average Unit Gross Margin $'s 1.975 Average Unit Gross Margin % 0.703

Projected Sales Mix

The 3rd Space

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3-Year Revenue Projections

The 3rd SpaceAchievements

Building plan

Down the line Plans to expand to different locations Develop a product brand

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The 3rd SpaceSuccess Factors:

Key to future success is a growing campus with the ability of the cafe to meet the changing needs of each incoming class

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