Safari Planet Coffee S Import Business example essay topic

Business Proposal SAFARI PLANET COFFEE (S.P.C.) The best Minnesota organic Coffee Prepared by Faisal MohamoudSmall business Developer November 17, 2004 Table of Contents 1. Executive Summary... 32. Introduction... 43. Business Description...

54. Management and Processes... 75. Research, Marketing and Company Plan... 76. Financial Projections...

97. Reference... 118. Appendix...

121. Executive Summary Coffee is one of the world's most precious commodity second to oil at the same it is one of the most chemically treated products that cause consumer and farmers health problem and destroys environments for that reason, the main idea of Safari Planet Coffee (S.P. C) is very simple, we want to diversify Minnesota by importing and selling organic coffee with high quality grown from the land of its origin Africa, particularly from East Africa. Safari Planet Coffee (S.P. C)'s core value is to bring into focus an environment where this coffee product can become a vivid expression of belonging to customers who will enjoy our healthy organic coffee or purchase from our wholesale department. We want our customers, who are our greatest assets, to feel that inward uniqueness, the moment they step foot into SAFARI PLANET COFFEE (S.P. C), feeling like they were on the actual coffee producing farm in East Africa, particularly Ethiopia the birth place of coffee. Safari Planet Coffee (S.P. C) shall bring into the business an environment where positive thoughts, ideas and suggestions are expressed freely and embraced under an atmosphere of mutual co-existence and professionalism, in the best interest of the establishment. Safari Planet Coffee (S.P. C) is not here only to make money but we will dedicate 15% of pretax dollar to improve the quality of our coffee farmers in East Africa, as our company grows we would set aside a percentage of pretax dollars for social cause and to promote the Organic coffee industry.

Safari Planet Coffee (S.P. C) initial investment would be $15,400.00 of owner's capital and $45,000.00 of SBA loan. Our aim is to select premium Organic coffee products from the East African region that offer superior quality, supplement the coffee products with educational propaganda that promotes the origins of coffee, conditions of East African farmers, and the cultural environment in which the product is experienced in. Last but not least, We must seek out for ways to reinvent coffee business, to encourage the production of top organic quality coffees in a manner that is socially just, environmentally sensitive, and economically feasible. 2. Introduction Coffee is without a doubt one of the world's most precious farming commodities. Next to oil, it's the most traded product. so that Coffee is the second largest import in the United States, with U.S. consumers drinking one-fifth of the world's coffee, making them the largest consumers of coffee in the world United States is the leading nation in Coffee consumption.

Unfortunately, most of American consumers aren't aware of that the coffee also is one of the most chemically treated food crops on Earth. By federal and state laws, organically grown coffee cannot have been exposed to herbicides, pesticides, insecticides, or commercially produced fertilizers. Organic coffee currently accounts for 1.3 percent of the USA's coffee imports, but analysts say it could rise to between 5-10 percent over the next decade. (4) Safari Planet Coffee (S.P. C) was founded in April of 2004 by Minnesota entrepreneur who passionately feels that naturally grown coffee - farmed without the use of chemical fertilizers and pesticides- is the choice for consumers who can't stand the thought of polluting the environment just for a cup of coffee. The use of many chemical fertilizers and pesticides has tremendously lowered the price of coffee in East Africa causing great hardship to coffee producers and workers and forced thousand of Organic Coffee growers out of business while these chemicals posed serious health and moral questions According to Dave Koppel of Independent Institute pesticides in crops grown for human consumption such as coffee pose a grave consumer health risk. The US government has failed in attempts to regulate the use of dangerous pesticides and herbicides in coffee production, this may carry it serious health concerns for consumers (Rice and Ward 1996) although many government and independent researches assure us synthetic chemical pesticides and fertilizers used in Coffee farming don't have serious health effect on consumer level but all agree that this method can have adverse effects on the environment which could contribute global warming.

Surveys indicate that as many as 80 per cent of consumers, concerned by a series of heavily publicized food-contamination scandals, would buy organic produce if the prices were the same as conventional food. But therein lies the dilemma. Many of the farmers lately 'going organic' are much more committed to capitalism than to any esoteric philosophy of environmentally-sound growing practices. More than anything else, the newcomers regard organic farming, with its burgeoning numbers of consumers willing to pay a 20-25 percent premium for organic products, as a way of keeping afloat at a time of declining farm prices. Between Jan. 1 and June 30, 2002, Allegro's weighted average price per pound paid to farmers and cooperatives excluding fees and taxes were $1.47 for sustainable grown, specialty coffee, and $1.46 per pound for certified organic coffee. This is, on average, between 5 cents and 21 cents per pound above the internationally recognized fair trade price for specialty and organic coffee (1), Our company vision is not necessarily to challenge the coffee industry monopoly or make huge profits but to improve the health of the millions of coffee farm owners, environment and the quality of coffee we drink, meanwhile reducing the risk of disease associated with these chemicals first for consumers in the state of Minnesota and the world wide in the future, 3.

Business Description The name and address of the business shall be: Safari Planet Coffee (S.P. C) 408 Cedar Avenue Minneapolis, MN 55454. Our business hours are 7: 30 am to 8: 00 pm, Monday through Friday and Weekends from 8: 00 am to 11 pm. The main idea of Safari Planet Coffee (S.P. C) is very simple, we plan to continue to diversify Minnesota by importing and selling Organic coffee from the land of its origin East Africa, particularly Ethiopia the birth place of Coffee. Safari Planet Coffee (S.P. C)'s core value is to bring into focus an environment where this coffee product can become a vivid expression of belonging, to customers who purchase from our wholesale department. We want our customers, who are our greatest assets, to feel that inward uniqueness, the moment they step foot into Safari Planet Coffee (S.P. C) feeling like they were on the actual coffee producing farm in Africa, particularly East Africa. After a purchase, we will give customers posters and fly ers of Safari Planet Coffee (S.P. C) so they may check on line for our list of coffee brands, products and services.

In our first year of operation, we are projecting gross revenue of $73,000.00, and in the second year amounting to $134,500.00 in gross sales and at the end of three years; we project an 195,000.00 gross revenue. Vision Safari Planet Coffee (S.P. C) aim is to introduce a new type of coffee in the twin cities from the land where coffee originated and to make a difference in how coffee should be experienced in the African way, while we generate revenue to meet our budget. Our intent is to expand our services in the next five to seven years to other cities within Minnesota, the Midwest and the nation in general, where the populations of Africans and other nationals are growing very rapidly. Management goal is to be the best seller of African coffee on the United States. We will measure this through our contribution to preserving the culture, the farmers, and creating the unmatched experience in African Coffee. Mission and Purpose Safari Planet Coffee (S.P. C) shall strive to make a difference in the experience of coffee for our customers, as they feel a sense of belonging and oneness, beyond cultural boundaries, with the purpose of preservation.

This is geared towards making them happy and excited about their African Coffee, which will ultimately satisfy their desire for coffee, through quality and durable products and services. Safari Planet Coffee (S.P. C) as a business entity recognizes its full responsibilities to its employees in providing adequate compensation, benefits, training, flexible working hours when possible, and a pleasant and fun working environment. As a business entity that recognizes its valuable assets (customers), Safari Planet Coffee (S.P. C shall strive for an environment where the right people will be running to catch a seat on our bus. Safari Planet Coffee (S.P. C customers being our most valuable assets, we shall provide the fastest service to each customer on the basis of first come first serve. We shall also in addition to other services, make sure that the work environment is always kept up to date, making sure that those responsible for cleaning perform their jobs. Highly trained team will split shifts between morning and evenings in order to more conveniently run the business.

The future financial success of any business depends on the commitment and dedication of team member, therefore, it is our goal to be committed and hold all to the highest standard of ethics. It is our goal to establish a form of reinvestment in Safari Planet Coffee (S.P. C), and expansion beyond there third year of operations. Safari Planet Coffee (S.P. C) realizes that having the right people in the right place means financial success. Our success will be shared with the community and employees in the form of: o Undertaking community development Training of our employee so Benefits - Health Insurance, Education - Tuition reimbursement, scholarship, and GED Training Current Products and Goals Organic and socially responsible coffees can only come from reliable certified facilities, because certification provides the only proven means to verify the market claims, We will visit Africa and establish purchasing relationship with farmers and producers, Our company will only buy sustainable coffee that are tested and certified the following will the main products we would carry in the first year of operation Organic Coffeeo Shade-Grown Coffeeo Fair-Trade Coffee Future Goal In this way, we are creating the future of coffee, and that is why we " re in the coffee business. We seek exemplary quality coffees from extraordinary farms around the world.

These farms produce delicious coffees and protect their lands, their waters and the well-being of their workers We shall as part of our long-term goals open additional Coffee shops and Distribution center so Rochester, MN, January 1, 2008-Distribution and Coffee brewing centers. o Saint Cloud, MN, March 1, 2008-Coffee brewing shop. o Wilmer, MN, June 1, 2008- Coffee brewing shop. o Burnsville, MN, January 1, 2009-Distribution and Coffee brewing centers. 4. Faisal Moham oud, Chief Executive Officer. He shall serve as the administrative head and shall be part of the day to day running of the entity. His dream has been to have such an establishment in the Minnesota.

His previous experience working in East Africa will be a great asset to Safari Planet Coffee (S.P. C) He is now pursuing his Business degree at St. Mary's University in Minneapolis, Minnesota. Creative Processes: Safari Planet Coffee (S.P. C will implement the following actions in order to establish the East African environment within our facilities and products. o Decorate the offices with Safari scene and pictures of East African Farmers. o Offer our customers a competitive organic coffee bean from where Coffee originated. o Play African traditional music over the intercom and while customers are on hold on the phone. o Teach our customers the history of coffee and those who grew back in Africa. o Sell coffee mugs with our logo and traditional African theme on it. o Play video of East African farmers while at farm Give away Safari Planet Coffee (S.P. C) products and sample coffee 5. Marketing Research and Company Plan Within the state of Minnesota alone there are nearly 7.4 K "Eating Places" who employ over 121 K employees and generate nearly $5 B Furthermore the Minneapolis - St. Paul metro area contribute the bulk of this opportunity within the sector. The metro area maintains over 4.3 K establishments with over 78 K employees and account for nearly $4.2 B in revenue. 2.) The second market are those establishments that sell food and are identified within the SIC code of 5499.

The US has fewer than 33 K (nearly 2,300 of these stores specialize in coffee or gourmet foods) with 143 K employees and generating $13.3 B in revenue. The great state of Minnesota supports over 500 of these stores with over 2,600 employees and generate in excess of $1.15 M in annual revenue. And once again the Minneapolis - St. Paul metro area accounts for the most significant number within the state. Providing approx. 336 stores with nearly 2000 employees and just under $80 M in revenue. (zap data. com.) The coffee and tea market make up 29% of the total Gourmet / Premium Beverage dollars.

The total market for whole bean and ground coffee is $607 M of which specialty import businesses like ours account for a portion of the $16.4 M - 2.7% that make up all other marketers of whole coffee beans. Demographics for whole bean coffee indicate age groups of 45-64 are most likely to purchase whole bean coffee vs. cappuccino. The income brackets are most favorable at $40 K to $150 K with a significant jump at $150 K or above. College graduates and Graduate degree holders multiply their frequency by 3 to 4 times that of all other education levels.

(Market research. com) East African coffee imports, combined for 7 countries of the region, account for 6.5 M 60 kg bags which places third only to Columbia and Brazil. (Coffee research. org) Safari Planet Coffee (S.P. C)'s niche business will account for approximately $1 M in annual revenue or 2% of the total coffee import market. We " ll accomplish this through establishing vendor relationships with the retail establishments mentioned in later sections of this business plan. Through the use of existing distribution channels that have been established for years and are renowned in the Minnesota area as having excellent reputations for providing quality product and unmatched service. SAFARI PLANET COFFEE (S.P. C)'s products will represent less than.

002% of the total revenue of their retail business. Safari Planet Coffee (S.P. C)'s wholesale coffee import and distribution business will provide product to those who are retailing the product as a finished good such as the restaurant or coffee shop business or the gourmet grocery and specialty food stores. The Minneapolis metropolitan area houses the largest Somali and east African along with a diverse ethnic mix of residents and patrons. (See appendix) There are few coffee importers in the Minnesota area and none that specialize only in organic East African Coffee - what's more, we " ll be the only importer of our nature that not only provides the product, but more importantly, the overall experience of how to enjoy the product in the means in which it is in the native origins of the East African region. Few coffee consumers realize the origins of coffee and the nature in which it has been grown, harvested, handled, brewed, and consumed. Safari Planet Coffee (S.P. C)'s import business will be centered on the total experience for the consumer.

Safari Planet Coffee (S.P. C) compares it's self to those in the wine shop business, they " ve formed a culture and status of clients that return for the experience the wine provides them, not just to drink it. One could also say that we mirror the business of a tobacco or cigar shop, which has also been successful in creating the desire for the experience of the product. Marketing, Sales and Customer Objective: For the next three years, implement strategies that generate gross sales to meet the objectives listed in the table above, Our main strategy is to market a premium organic directly to our client our thought retailers of specialty coffees and provide both the retailer and their customer an experience they " ll want more off. We only select the best organic coffee products from the East African region that offer superior quality. Supplement the coffee products with educational propaganda that promote the origins of coffee, conditions of East African farmers, and the cultural environment in which the product is experienced in its heritage. Develop relations with the East African farmers and producers that will preserve the heritage of the product and promote continued production in the region.

Management Objective: Create a company attitude of integrity, responsiveness, authenticity, and collaboration and have a sense of humanness. Simply, Place the right associates in the right positions to ensure an inherent culture and goal alignment and encourage employees in the future by sponsoring trips to East Africa for developing relations, products, cultural experiences, and educational opportunities. Finally our product portfolio will promote a genuine African culture and provide the customer the total experience of the origins of coffee. Our Coffee House will control the quality of the coffee we import and from its website our Customers would be able to browse the coffee brand lists, other products and services we offer therefore with Safari Planet Coffee (S.P. C) you are guaranteed to get the best-flavored coffee.

6. Financial Projection: Growth Objective: Create a business model that generates a 35% annual growth rate. Strategy: sustain 35-45% growth year over year for the first three years of operation during which time we " ll reinvest all proceeds back into the company in order to build a secure foundation for the future growth of Safari Planet Coffee (S.P. C). Tactics: In order to grow our sales we will increase our customer base year over year, by adding personnel to increase sales coverage by offering products that compliment our premium sustainable Organic coffees and provide the resources necessary for our Coffee shop and retail, Continue to develop operational excellence to promote continuous improvement in systems and processes, through associate training and incentive programs. We want to finance growth through a combination of owner investing, small business administration and government loans that encourage small business owners and banks.

Since Lease of larger facility and highly sophisticated equipments will require approximately large amount of cash, we will start with small Coffee House and retail shop Financial Needs Startup Funding Owner (Cash) $15,400.00 SBA Loan $45,000.00 Total $60,400.00 Purchases and Cost Inventory Coffee Inventory $5,000.00 Accessories $1,200.00 Working Capital $20,000.00 Equipment Office Systems $1,500.00 Coffee Machines $25,000.00 Safety Materials $2,500.00 Others / Misc Materials $5,200.00 Total $60,400.00 Projected Financial Statement attache do Projected Balance Sheet 7. Reference Coffee for Future Brewing / Mixing March 2004, Compiled from the U.S. Market for Coffee and Ready-to-Drink Coffee, 4th Edition, Published by Packaged Facts 2 Griswold, David (2004), Quick Guide to Sustainable Coffee 3 Koppel. D 1992, Common Sense about Pesticides, Independence Institute. 4 Rice, R. and Ward, J. 1996 Smithsonian Migratory Bird Center Coffee, Conservation and Commerce in the Northern Hemisphere. 5 O'Connell, Jock (2004) Organic Food: A Niche Market Goes Global web Retrieval date October 17th 20048. Appendix Estimated share of gourmet / premium beverage dollar sales by subcategory...

1 Whole bean and ground coffee by IRI tracked sales and shares... 2 Gourmet beverage / confectionary : by household income bracket... 3 Gourmet beverage / confectionary : by educational attainment... 5 Gourmet beverage / confectionary : by age bracket of purchaser...

6 Purchasing indices for gourmet beverage / confectionary : by ethnic group... 7.