Business Plan for Java the Hut

1
Business Plan for Java the Hut

• Farrukh Memon
• Laura Buckner
• Gina Wittman
• Corey Beavers

2
Operating Costs

• Direct Costs
• Ingredients
• Shipping and Storage
• Advertising
• Indirect Costs
• Rent
• Utilities
• Wages
• Office Supplies

3
Total Operating Expense
4
Startup Costs for Shop

• Initial Startup Costs
• One time expenditures
• Espresso equipment 13,000
• Utensils 1,000
• Lease agreement and deposit 1,000
• Furniture 6,000
• Appliances 2,000
• Pura Vida coffee 2,000
• Total one time expenditures 25,000
• These are gross estimates that do not include
  taxes.

5
Total Cost per month

• Total Fixed Costs
• Operating Costs 28,000
• Includes insurance
• Total Variable Costs
• Monthly Advertisements 500
• Monthly Supplies expenditures 300
• Monthly ingredient expenditures 500
• Total Cost TFC TVC
• 28,000 1,300 29,300

6
Finances

• All of our capital will be borrowed from a
  financial institution.
• Principle 55,000
• Interest 6.42
• Period Monthly
• Term 5 years

7
Sample Payment Chart

• Total Interest paid 9,444.70
• Total Number of payments 60

8
Projections

• Short Run
• MC MR
• In our case, in order for us to remain in
  business, our total revenue must cover our total
  costs in the short run.
• Total Cost Total Fixed Cost Total Variable
  Cost Monthly installment
• TC 28,000 1,300 1,074 30,374

9
Projections (cont.)

• In order for us to cover our costs, we must
  figure out how many cups of coffee we must sell
  everyday
• TC Average price per cup Days open of
  cups of coffee we must sell everyday
• 30,374 3.50 30 days 290 cups per day
• This depends completely on the number of
  customers we get everyday
• These are gross estimates that do not include
  taxes