Jasmine Teahouse is a start-up business on a well-trafficked street in Simsbury, CT. Our primary focus is in the over 50 kinds of loose tea we offer, including black teas, green teas, herbal teas (infusions), and flavored teas (black or green tea plus other flavors). We serve our teas hot and iced, and sell loose teas by the ounce.
In addition, we sell premium chocolates and gift baskets, and offer daily pastries to accompany tea orders. Since we are not intending to compete with coffee giants such as Starbucks, we brew only one kind of coffee daily, as a courtesy to our customers.
Simsbury is one of Connecticut’s oldest communities, incorporated in 1670. The population in Simsbury has grown from 5,000 in 1950 to today’s population of over 23,000. While Simsbury has seen some development, the town is committed to maintaining its rural environment and historic charm. Simsbury old New England appeal has also made it a popular tourist destination for residents of Hartford, Boston and New York City.
Simsbury has four State parks, several wildlife habitats, and Talcott Mountain, a great hiking destination. Tourists flock to Simsbury in all four seasons for outdoor activities, historic sightseeing, and shopping. In Summer, the Talcott Mountain Music Festival draws crowds from Hartford, and in Autumn, the city-dwelling “leaf-peepers” stop to enjoy our antiques and craft fairs. Winter brings cross-country skiiers, candlelight tours of the historic downtown, and ice skating, while Spring introduces the Simsbury Light Opera season and the River Run Road Race.
2.1 Company Ownership
As a Limited Liability Company in the State of Connecticut, ownership of Jasmine Teahouse is identified as belonging to its managers. These partners, Earl Grey and Lady Grey, each control 50% of the business.
Earl Grey has five years of experience managing a successful boutique coffeehouse in a similar locale in Maryland. His love and knowledge of teas will make the transition to owning and running a teahouse a natural step. Lady Grey has 3 years of training as an herbalist and worked for 4 years as a teatender in Boston. She is currently training to be a nutritionist; her knowledge of the health benefits of tea will help our marketing and sales efforts.
2.2 Start-up Summary
Equipment and Inventory will make up 75% of start-up requirements. Leasehold improvements and general expenses comprise the remaining 25%. The owners are contributing $10,330 of investment to the business. We need a total of $63,963, and are seeking a long-term loan of $53,633; we plan to pay this loan back in full within 6 years, at a 9.25% interest rate.
Long-term Assets, $13,808
- Refrigerated Chocolate Case: $3,500
- Tea Racks: $2,300
- Coffee Maker: $908
- Hot Water and Steam machine: $1,100
- Dishwasher: $3,000
- Other Hardware & Appliances: $3,000
Short-term Assets, $6,605
- Coffee Grinder: $564
- Iced Tea Shakers: $541
- Furniture: $5,500
Expensed Supplies, $1,200
- Napkins, Stirrers, cleaning supplies, tea-balls, tasting cups
|Dishes, Teacups, Teapots||$2,000|
|Total Start-up Expenses||$18,550|
|Other Current Assets||$6,605|
|Start-up Expenses to Fund||$18,550|
|Start-up Assets to Fund||$45,413|
|Total Funding Required||$63,963|
|Non-cash Assets from Start-up||$30,413|
|Cash Requirements from Start-up||$15,000|
|Additional Cash Raised||$0|
|Cash Balance on Starting Date||$15,000|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$0|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|Total Planned Investment||$10,330|
|Loss at Start-up (Start-up Expenses)||($18,550)|
|Total Capital and Liabilities||$45,413|