Boulder Stop
Company Summary
The Boulder Stop is a purveyor of premium coffee and gear. The cafe is located one mile from Smith Rock State Park in Central Oregon.
The Boulder Stop was incorporated in the State of Oregon. It is privately held and managed by Luke Walsh. The company has established a central office at 1455 Portland St., Bend, OR 97701. This location is designed for purchasing, storage, and contract negotiations. Service purchases will be forwarded to this office for review and approval. All PO authorizations will also be approved at this office.
2.1 Company Ownership
The Boulder Stop is a privately held corporation. Luke Walsh owns 60% of The Boulder Stop, his wife Lisa, owns 40%. This company operates under the jurisdiction of the State of Oregon and the United States of America as an S Corporation. If the company shows steady are exponential growth, the owners will prepare the company for re-establishment as a “C” corporation. As a “C” corporation, the owners will not be taxed at the higher maximum personal rate of 39.6%, but rather the company will be taxed at the maximum corporate rate of 34%. If the owners elect to administer The Boulder Stop as a “C” corporation, it will not be taken lightly. A company that moves from “S” to “C” status must remain in “C” status for a minimum of five years.
At the moment, the owners wish to benefit from the single taxation of an “S” corporation.
2.2 Start-up Summary
Our incorporation costs are listed below, as well as the cost of retaining a marketing consultant to manage local impact-management teams and to issue a community impact report to major public and private agencies within the region. Their job will be to inform The Boulder Stop owners about how to effectively communicate with the community leaders. Our lawyer will be responsible for preempting any local government conflicts having to do with zoning and/or permit allowance.
There will be other normal business costs such as a $1,000,000 liability umbrella, rent, interior design costs, and opening day promotions.
The largest equipment purchase will be that of a Conti brand commercial espresso machine. This machine, named “The TwinStar”, comes with an 18-month warranty on parts and 12-months warranty on labor. Their espresso machines are world renowned for their high quality and performance features. The machine will push steam through the espresso grounds at temperatures set by the user.
The company will start with two months’ inventory on-hand. The majority of company assets will reside in inventory. The starting cash balance will be $3,000.
The purpose of this business plan is to secure a SBA loan. This loan appears in the long-term liability row of the attached Start-up Funding table.
| Start-up | |
| Requirements | |
| Start-up Expenses | |
| Legal | $300 |
| Marketing Consultant | $4,500 |
| Business and Liability Insurance | $600 |
| Rent-1st Month + Deposit | $2,500 |
| Design Cost | $3,500 |
| First Week Promotion | $1,100 |
| Expensed Equipment | $3,500 |
| Total Start-up Expenses | $16,000 |
| Start-up Assets | |
| Cash Required | $3,000 |
| Start-up Inventory | $7,000 |
| Other Current Assets | $1,000 |
| Long-term Assets | $0 |
| Total Assets | $11,000 |
| Total Requirements | $27,000 |
| Start-up Funding | |
| Start-up Expenses to Fund | $16,000 |
| Start-up Assets to Fund | $11,000 |
| Total Funding Required | $27,000 |
| Assets | |
| Non-cash Assets from Start-up | $8,000 |
| Cash Requirements from Start-up | $3,000 |
| Additional Cash Raised | $0 |
| Cash Balance on Starting Date | $3,000 |
| Total Assets | $11,000 |
| Liabilities and Capital | |
| Liabilities | |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $0 |
| Other Current Liabilities (interest-free) | $0 |
| Total Liabilities | $0 |
| Capital | |
| Planned Investment | |
| Owner | $0 |
| Investor | $0 |
| Additional Investment Requirement | $27,000 |
| Total Planned Investment | $27,000 |
| Loss at Start-up (Start-up Expenses) | ($16,000) |
| Total Capital | $11,000 |
| Total Capital and Liabilities | $11,000 |
| Total Funding | $27,000 |
2.3 Company Locations and Facilities
The company office is located in the owner’s residence, 1455 Portland St., Bend, OR 97701. The office is about 1,000 square feet and has ample space for the first three years of growth. Deliveries and shipments are serviced through the store located at 432 Smith Rock Drive, Redmond, OR 97756. The 5,000 square foot retail building is owned by The Boulder Stop and there is no excess storage capacity.
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