Business Plan: Opening a Limited Liability Company

Pages: 4 (1175 words)  ·  Bibliography Sources: 2  ·  Level: College Junior  ·  Topic: Business  ·  Buy This Paper

Limited Liability Co.

Cover Letter

Lending Manager, Big National Bank

I am writing to discuss your bank's investment in my new venture, Epic Coffee. This company will be a roaster/wholesaler of the best coffee and espresso beans on the planet, with a small cafe attached. The principles have extensive expertise in sourcing and roasting the finest beans on earth -- for example heirloom varieties of arabica and single lots of fair trade coffee from organic farmers. Our expertise has resulted in numerous awards in city newspapers and magazines, and we believe that there is a substantial market for high-quality custom-roasted coffee both at the wholesale and retail level. Our startup funding requirements are only $50,000 and we expect to turn a profit within the first year based on the feedback we have received thus far from potential customers. We believe we can meet these needs with a line of credit, and offer the potential for mezzanine financing down the road as we look to expand. We look forward to our appointment with you in order to outline our proposal in more detail.

Company Background:

The company will engage in three primary functions -- manufacturing, wholesaling and retailing. The first function will consist of processing raw coffee beans into roasted coffee beans. While the procedure is relatively simple, precision roasting in the hands of an expert can yield superior coffees. The wholesale function will be conducted through standard phone/Internet channels, with local distribution being handled by the company and broader distribution handled through a courier company. The retail function will be conducted both online and in our cafe/store which will be located on site.

We have chosen the limited liability company as our form of organization. This form had a number of advantages that we feel and critical to helping our business. The first is that the tax rate for LLCs is lower than for partnerships or sole proprietorships. The second is that the company is a separate legal entity, thus reducing the legal liability of the owners. Each owner will be given a share in the business -- a total of three shares will be issued. The LLC is also a good choice of ownership type for our company because expect to turn a profit by the end of the first year -- we will not need to declare losses against our personal income.

Management Team

There are three principles. The first has a background in coffee, having worked in multiple positions both as a barista and in production. This person will be our main roaster, and has undertaken an internship with one of the nation's leading premium roasters in order to gain knowledge and experience for this venture. This individual will roast in the evening, and work the cafe in the afternoon.

The second principle is the marketing expert. This person has extensive experience in underground marketing and social media. This expertise will be put to good use building the brand's profile, handling distribution and managing the mail orders.

The third principle is the accountant. The manager of the team will attend to all managerial, purchasing and accounting needs. As well, the third will work the cafe in the morning and contribute to the distribution function where needed.

Marketing Plan

The marketing mix can be used to understand our marketing plan. First and foremost, we have a premium product. The quality will be one of the major selling points of our coffee -- it is simply better than that of anybody else currently on the market… [END OF PREVIEW]

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