Taste the Carolinas, LLC is a North Carolina-based company with a vision to establish a Beer and Wine Bar in Mocksville, North Carolina. Our unique concept focuses on showcasing North Carolina craft beers and wines from various local breweries and wineries across the state. Our bar will offer a wide selection of craft beers on tap, in bottles, and cans, as well as wines available for both on-premise consumption and take-home purchases. We aim to create a vibrant atmosphere by hosting local musicians, featuring local crafts, and collaborating with food trucks during special promotions and events.
Our mission is to highlight the distinctive brands and flavors of North Carolina's craft breweries and wineries. With a rich market of over 200 wineries and notable breweries such as Catawba Brewing, Cabarrus Brewing, High Wire Brewing, Angry Troll, and Old Mecklenburg Brewery, we strive to provide our customers with a diverse and memorable tasting experience. As part of our business concept, we plan to expand to other towns and open additional bars or tasting rooms in the future. Eventually, we aspire to establish our own brewery under the Taste the Carolinas brand, selling our products alongside other North Carolina craft beers. Our target market comprises craft beer and wine enthusiasts who are eager to explore new and local offerings. We cater to customers who appreciate buying local products, supporting small businesses, enjoying live music, and savoring the flavors of North Carolina. As we expand our operations, we aim to attract not only local patrons but also tourists passing through the area.
While we have yet to finalize a location, we are actively working with a realtor to explore potential spaces. Our preferred choice is downtown Mocksville, but we are also considering the Mocksville Town Commons area near Walmart. We firmly believe that securing a favorable location will not only contribute to our business's growth but also bring new revenue to the town of Mocksville.
The management team of Taste the Carolinas consists of co-owners Michael Lambe and Johnathan Berry. Michael, who also serves as the manager, possesses extensive experience in retail and sales. With his management skills and dedication to customer service, he will oversee the day-to-day operations of the bar. Johnathan, the assistant manager, brings over 16 years of experience running his own business and will contribute to purchasing decisions, sourcing new products, and handling maintenance issues. As we move closer to our opening date, we plan to hire additional staff members.
In terms of competition, we acknowledge the presence of two restaurants, an event center/bar, and a bar/general store that serves alcohol in our target area. However, our focus on exclusively showcasing North Carolina breweries, wines, and other products gives us a unique advantage in the market.
As a Limited Liability Company (LLC), Taste the Carolinas seeks a business loan in the range of $50,000 to $100,000 to supplement the co-founders' initial investment of $10,000 to $20,000. Our revenue generation strategy centers on the sale of craft beers, ciders, and wines, both for on-premise consumption and retail purchases. Additionally, we plan to generate revenue from the sale of local crafts, as well as branded merchandise such as TTC shirts, hoodies, and coozies.
Based on our projections, we anticipate generating annual revenues ranging from $100,000 to $200,000. These estimates are grounded in the growing demand for craft beers and wines in North Carolina and our commitment to delivering a unique and immersive experience for our customers.
Overall, Taste the Carolinas, LLC aims to establish a Beer and Wine Bar in Mocksville, North Carolina, that exclusively features North Carolina craft beers and wines. We strive to highlight the diverse range of breweries and wineries in the state while providing a welcoming environment for customers to enjoy live music, local crafts, and food truck collaborations. With a strong management team and a clear vision for expansion, we are poised to make a significant impact in the local wine and bar industry.
⦁ Mission Statement
At Taste the Carolinas, our mission is to celebrate and elevate the vibrant tapestry of North Carolina's craft beverage culture. We are dedicated to spotlighting the unique brands and distinctive flavors of local treasures such as Catawba Brewing, Cabarrus Brewing, High Wire Brewing, Angry Troll, Old Mecklenburg Brewery, Lost Colony Brewing, and many more. With an unwavering commitment, we aim to showcase the essence of North Carolina's diverse craft breweries and wineries, ensuring that each sip reflects the rich heritage and innovation of our state's brewing and winemaking community. Our mission is not just to serve, but to curate an experience that captivates and delights, fostering a deep appreciation for the artistry and craftsmanship behind every pour.
⦁ Our Vision
Taste the Carolinas envisions becoming the premier destination for craft beer and wine enthusiasts, recognized for our commitment to promoting North Carolina's diverse and exceptional beverage offerings. We aspire to cultivate a welcoming space where patrons can explore the rich tapestry of local flavors, connect with the talents of regional musicians, and indulge in the creativity of local crafts. As we grow, our vision extends beyond our initial location, foreseeing a network of Beer and Wine Bars in various towns, eventually culminating in the establishment of our brewery. Through these endeavors, we aim to not only contribute to the economic growth of the regions we serve but also to become an integral part of the cultural fabric, embodying the essence of Taste the Carolinas in every community we touch.
⦁ Key Success Factors
⦁ Exceptional Craft Beer and Wine Selection: At Taste the Carolinas, we will prioritize offering an exceptional selection of North Carolina craft beers and wines. We will continuously curate our offerings, ensuring that we feature a diverse range of breweries and wineries from around the state. By showcasing unique and high-quality products, we will attract customers who appreciate the artistry and innovation of local craft beverages.
⦁ Engaging and Vibrant Atmosphere: We understand the importance of creating an engaging and vibrant atmosphere at our Beer and Wine Bar. Taste the Carolinas will host regular live music performances, collaborate with local artisans for craft showcases, and organize food truck events. By fostering a lively and dynamic environment, we will provide our customers with an unforgettable experience that keeps them coming back.
⦁ Commitment to Local Community: We believe in the power of supporting our local community. Taste the Carolinas will actively collaborate with local musicians, craftsmen, and food truck operators to promote their talents and offerings. Additionally, we will participate in community events and initiatives, further establishing ourselves as an integral part of the Mocksville community.
⦁ Strategic Location and Accessibility: Choosing prime locations in downtown Mocksville or thriving areas like the Mocksville Town Commons, and Taste the Carolinas will ensure accessibility for both locals and tourists. Our strategic positioning aims to contribute not only to our success but also to the economic growth of the surrounding communities.
⦁ Strong Relationships with Local Brewers and Winemakers: Building strong partnerships with local Craft Breweries and Wineries is crucial to our success. We will collaborate closely with Catawba Brewing, Cabarrus Brewing, High Wire Brewing, and others, showcasing their unique brands and flavors to our patrons.
⦁ Customer-Centric Experience: Taste the Carolinas will prioritize a customer-centric approach, offering a welcoming and knowledgeable staff to guide patrons through our beverage selections. We are committed to creating an environment where customers feel valued, ensuring their exploration of local craft beverages is both enjoyable and informative.
⦁ Expansion and Diversification: As part of our growth strategy, Taste the Carolinas envisions expanding to other towns and cities and establishing additional Bars or Tasting Rooms. Simultaneously, we plan to develop our brewery under the Taste the Carolinas brand, ensuring a diversified and resilient business model.
⦁ Effective Marketing and Branding: We will implement a comprehensive marketing strategy to promote Taste the Carolinas, emphasizing our commitment to local products, community engagement, and the unique flavors of North Carolina. Building a strong brand presence will be pivotal in attracting and retaining customers, establishing us as a key player in the craft beverage scene.
⦁ Our Core Values
⦁ Craftsmanship: At Taste the Carolinas, we embrace the artistry and skill behind every sip. We value the craftsmanship of North Carolina's local brewers and winemakers, committing ourselves to curating and showcasing the finest craft beverages that reflect the dedication and passion put into each creation.
⦁ Community Connection: We prioritize building strong connections within our community. Taste the Carolinas is not just a place to enjoy craft beverages; it's a space where locals and visitors come together to celebrate, engage, and support one another. We believe in fostering a sense of belonging and camaraderie.
⦁ Authenticity: Authenticity is the heart of our business. From our selection of local craft beers and wines to the events we host, Taste the Carolinas is committed to providing genuine and meaningful experiences. We believe in transparency, honesty, and staying true to our roots in showcasing the authentic flavors of North Carolina.
⦁ Innovation: We embrace innovation in every aspect of our business. Taste the Carolinas continually seeks new ways to elevate the craft beverage experience, whether through unique event concepts, partnerships with local artisans, or the introduction of innovative products. We believe in staying ahead of the curve while honoring tradition.
⦁ Sustainability: Taste the Carolinas is dedicated to environmental responsibility. We actively pursue sustainable practices, from sourcing local ingredients to implementing eco-friendly initiatives. We recognize our role in preserving the beauty of North Carolina and strive to make responsible choices that contribute to a healthier planet.
⦁ Inclusivity: We celebrate diversity and inclusivity at Taste the Carolinas. Our space is welcoming to all, embracing individuals from various backgrounds, cultures, and tastes. We believe in creating an environment where everyone feels valued, respected, and free to explore the diverse world of craft beverages.
⦁ Passion for Exploration: We encourage a spirit of exploration and curiosity. Taste the Carolinas is more than a bar; it's a journey through the flavors of our state. We value the adventurous palate, inviting our patrons to discover new tastes, support local artists, and immerse themselves in the dynamic cultural landscape that defines North Carolina.
⦁ Our Business Concept
Taste the Carolinas, LLC introduces a straightforward yet innovative business concept to the Mocksville community, centered around the creation of a unique Beer and Wine Bar. Distinguishing itself by exclusively featuring North Carolina Craft beers and wines sourced from across the state, the establishment offers a diverse selection available in cans, bottles, and on tap, encouraging patrons to savor the regional flavors within the premises or purchase for takeaway.
Beyond serving as a destination for craft beverages, the business seeks to elevate the customer experience by incorporating local musicians during special promotions and events, thereby contributing to the cultural vibrancy of the community. The overarching goal is to showcase and celebrate the multitude of Craft Breweries and Wineries in North Carolina, emphasizing the distinct brands and flavors that make each one a noteworthy contributor to the state's thriving craft beverage market.
⦁ Business Objectives
⦁ Non-Financial Objectives
⦁ To provide a diverse and exceptional selection of North Carolina craft beers and wines.
⦁ To create an engaging and vibrant atmosphere for customers to enjoy live music, local crafts, and food truck collaborations.
⦁ To actively collaborate with local musicians, craftsmen, and food truck operators, supporting and promoting their talents and offerings.
⦁ To establish Taste the Carolinas as an integral part of the Mocksville community through active participation in community events and initiatives.
⦁ To recruit and train a knowledgeable and friendly staff that provides exceptional customer service.
⦁ To strategically choose a location that maximizes visibility and accessibility for our Beer and Wine Bar.
⦁ To implement effective marketing strategies, including social media campaigns, partnerships with local businesses, and targeted advertising.
⦁ To consistently deliver high-quality craft beers and wines, forging strong relationships with local breweries and wineries.
⦁ To regularly rotate our selection, offering customers a variety of craft beers and wines to discover and enjoy.
⦁ To foster continuous innovation and exploration of new flavors and emerging breweries and wineries.
⦁ Financial Objectives
⦁ To secure a business loan of $50,000-$100,000 to supplement the co-founders' initial investment.
⦁ To generate annual revenues ranging from $100,000 to $200,000 by offering craft beers, ciders, and wines for on-premise consumption and retail purchases.
⦁ To increase sales through the sale of local crafts and branded merchandise, such as TTC shirts, hoodies, and coozies.
⦁ To carefully manage costs and optimize operational efficiency to improve profitability.
⦁ To track and analyze key financial metrics, such as gross profit margin and return on investment.
⦁ To establish a solid financial foundation that supports future expansion to other towns and the opening of additional bars/tasting rooms.
⦁ To work towards the long-term goal of opening our own brewery and selling our products alongside other North Carolina craft beer brands.
⦁ Business Model Canvas
KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITION CUSTOMER RELATIONSHIP CUSTOMER SEGMENTS
⦁ Financial institutions for funding.
⦁ Local Craft Breweries and Wineries (Catawba Brewing, Cabarrus Brewing, High Wire Brewing, etc.)
⦁ Local Artisans and Craftsmen
⦁ Food Truck Operators
⦁ Local Musicians and Performers
⦁ Suppliers for Merchandise ⦁ Curating and showcasing a rotating selection of North Carolina Craft Beers and Wines.
⦁ Organizing and hosting regular events featuring local musicians, crafts, and food trucks.
⦁ Building and maintaining strong partnerships with local brewers, winemakers, and artisans.
⦁ Marketing and branding to establish Taste the Carolinas as a recognizable and community-centric brand. ⦁ A unique and diverse selection of North Carolina Craft Beers and Wines.
⦁ Engaging community events providing a cultural hub for patrons.
⦁ Local and sustainable sourcing, contributing to the support of regional businesses.
⦁ A customer-centric experience with knowledgeable staff and a welcoming atmosphere.
⦁ The company's location in Mocksville, North Carolina
⦁ Personalized and knowledgeable customer service
⦁ Community engagement through events, promotions, and social media
⦁ Loyalty programs and incentives for repeat customers
⦁ Responsive feedback mechanisms for continuous improvement ⦁ Craft Beer and Wine Enthusiasts
⦁ Locals looking for community-oriented spaces
⦁ Tourists exploring North Carolina's craft beverage scene
⦁ Patrons interested in supporting local musicians and artisans
KEY RESOURCES
⦁ Human Resources:
Experienced Management Team (Michael Lambe and Johnathan Berry)
Knowledgeable and Customer-Focused Staff (to be hired)
⦁ Other Resources:
Prime Retail Locations in downtown Mocksville or thriving areas
Relationships with Local Craft Brewers, Winemakers, and Artisans
Sustainable and Locally-Sourced Inventory
Etc.
CHANNELS
⦁ Physical locations in downtown Mocksville or other thriving areas
⦁ Social media platforms for marketing and community engagement
⦁ Collaborative events and partnerships with local businesses
⦁ Word of mouth through positive customer experiences
COST STRUCTURE
⦁ Inventory and Stocking Costs (Craft Beers, Wines, Merchandise)
⦁ Operational Costs (Rent, Utilities, Staff Salaries)
⦁ Marketing and Promotion Expenses
⦁ Event and Collaboration Costs
⦁ Sustainability Initiatives and Local Sourcing Investments REVENUE STREAMS
⦁ Sales of North Carolina Craft Beers, Wines, and Ciders (draft, bottles, cans)
⦁ Revenue from events and collaborations with local musicians and artisans
⦁ Merchandise sales (local crafts, Taste the Carolinas branded items)
⦁ Company Overview
⦁ Company Information
⦁ Name of Company: Taste the Carolinas, LLC
⦁ Ownership: Michael Lambe and Johnathan Berry
⦁ Business Address: To be determined
⦁ Mailing Address: 1119 Yadkinville Rd. PO Box 1021 Mocksville, NC 27028
⦁ E-mail Address: ⦁
[email protected] ⦁ Phone Number: 704-706-4490
⦁ Legal Status: Limited Liability Company (LLC)
⦁ Company Location
As Taste the Carolinas, LLC embarks on its startup journey, the selection of an optimal location is a key consideration in laying the foundation for success. While the company's mailing address is 1119 Yadkinville Rd., PO Box 1021, Mocksville, NC 27028, the specific business location is yet to be finalized.
Recognizing the significance of a strategic location, Taste the Carolinas is actively collaborating with a realtor to explore two potential spaces. The preferred choice is situated in downtown Mocksville, aligning with the vision of creating a vibrant and central community hub. However, acknowledging the constraints posed by existing tenant arrangements in much of the downtown retail space, the company is also exploring alternative options.
The Mocksville Town Commons area, adjacent to Walmart, has emerged as a viable alternative for establishing the Taste the Carolinas venture. This location offers the advantage of a high-traffic area, potentially attracting not only local residents but also tourists passing through the region. Johnathan and Michael, the co-owners, are cognizant of the dual impact a well-chosen location can have – not only fostering the growth of their business but also contributing to the economic vitality of Mocksville.
The commitment to finding the right location underscores Taste the Carolinas' dedication to becoming an integral part of the local community. Whether situated in the heart of downtown Mocksville or within the bustling Mocksville Town Commons area, the chosen location will play a pivotal role in shaping the unique experience that Taste the Carolinas aims to offer – one that celebrates North Carolina's craft beverage culture and fosters a sense of community and exploration. As the search for the ideal location progresses, the co-owners remain focused on creating a destination that resonates with both residents and visitors, ensuring the success and sustainability of their startup venture.
⦁ Company Resources
⦁ Experienced Management Team: Taste the Carolinas boasts a seasoned management team led by co-owners Michael Lambe and Johnathan Berry. With extensive backgrounds in retail, sales, customer service, and business ownership, they bring a wealth of knowledge and skills to drive the success of the venture.
⦁ Knowledgeable and Customer-Focused Staff: The company places a premium on hiring staff members who are not only knowledgeable about North Carolina craft beers and wines but are also committed to delivering exceptional customer service. The staff will play a crucial role in guiding patrons through the diverse beverage selections, ensuring a positive and engaging experience.
⦁ Prime Retail Locations: Although the specific location is yet to be finalized, Taste the Carolinas is actively working with a realtor to secure prime retail space. Whether in downtown Mocksville or the Mocksville Town Commons area, the chosen location will serve as a critical resource in attracting foot traffic and contributing to the success of the business.
⦁ Strong Relationships with Local Brewers and Winemakers: Taste the Carolinas has cultivated strong relationships with local craft breweries and wineries, including Catawba Brewing, Cabarrus Brewing, and High Wire Brewing. These partnerships are valuable resources, ensuring a diverse and unique selection of North Carolina craft beers and wines for patrons to enjoy.
⦁ Sustainable and Locally-Sourced Inventory: Commitment to sustainability is reflected in the company's sourcing practices. Taste the Carolinas prioritizes sustainable and locally sourced inventory, aligning with the values of environmentally responsible business practices.
⦁ Collaborative Network: The business has established a collaborative network with local artisans, crafters, food truck operators, and musicians. This network provides opportunities for joint events, promotions, and collaborations, enriching the overall customer experience.
⦁ Social Media Platforms: Taste the Carolinas leverages various social media platforms as a resource for marketing, community engagement, and promotion. This digital presence facilitates direct communication with patrons, helps in building brand awareness, and contributes to the success of events and promotions.
⦁ Strategic Partnerships: Beyond local craft brewers and winemakers, the company seeks strategic partnerships with suppliers for merchandise and other related products. These partnerships contribute to the diversification of revenue streams and add value to the overall offerings.
⦁ Financing Requirement
In pursuit of establishing Taste the Carolinas, LLC, the co-founders express their commitment by offering an initial investment ranging from $10,000 to $20,000 into the venture. While their dedication is evident, recognizing the scale and potential of the business, they are strategically seeking additional financial support. To fortify the startup and ensure its successful launch and sustained growth, Taste the Carolinas aims to secure a business loan within the range of $50,000 to $100,000. This prudent approach to financing reflects a well-thought-out strategy, balancing personal investment with external funding to adequately address startup costs, operational expenses, and potential expansion initiatives.
⦁ Legal Structure
Taste the Carolinas, LLC operates under a Limited Liability Company (LLC) legal structure, a choice made with thoughtful consideration for its unique business model. This legal structure affords the co-owners, Michael Lambe and Johnathan Berry, a balance of liability protection and operational flexibility.
As an LLC, Taste the Carolinas benefits from the separation of personal and business assets, shielding the individual co-owners from personal liability while allowing them to actively participate in the management and decision-making processes. This structure aligns with the collaborative and community-oriented ethos of the business, offering a framework that accommodates its vision of fostering local partnerships and contributing to the economic growth of Mocksville.
The LLC structure provides the ideal foundation for Taste the Carolinas, combining liability protection, operational autonomy, and a streamlined approach to achieving its mission of celebrating North Carolina's craft beverage culture.
⦁ Regulatory Requirements
Taste the Carolinas, LLC recognizes the importance of adhering to regulatory requirements to ensure the legal and ethical operation of its Beer and Wine Bar. As a purveyor of alcoholic beverages, the business will meticulously comply with federal, state, and local licensing regulations governing the sale and distribution of alcoholic products. This includes securing the necessary permits for the on-premise consumption and off-premise sales of North Carolina Craft beers and wines.
In addition to alcohol-related regulations, Taste the Carolinas is committed to meeting all health and safety standards, adhering to zoning ordinances, and obtaining any required business licenses. The business places a premium on maintaining transparency, integrity, and ethical practices to foster trust within the community and ensure a seamless integration into the Mocksville business landscape. By prioritizing regulatory compliance, Taste the Carolinas aims to establish itself as a responsible and law-abiding contributor to the vibrant craft beverage culture in North Carolina.
⦁ Management Team
The leadership team at Taste the Carolinas, LLC is spearheaded by co-owners Michael Lambe and Johnathan Berry. Michael, who also assumes the role of manager, brings a wealth of experience with a background spanning several years in retail and sales. His extensive management skills, coupled with a keen understanding of customer service, position him as the driving force behind overseeing day-to-day operations and managing the initial location. Michael's proficiency in retail and customer-focused roles will undoubtedly contribute to the smooth functioning and success of Taste the Carolinas.
Joining him is Johnathan Berry, the Co-Manager, who possesses an impressive 16 years of experience in running his own business. Johnathan's extensive entrepreneurial background equips him to play a pivotal role in the venture, particularly in areas such as procurement, sourcing new products for the business, and addressing maintenance issues as they arise. His wealth of experience not only adds a strategic edge to the management team but also ensures that Taste the Carolinas benefits from seasoned expertise in navigating the intricacies of operating a successful establishment.
As the business progresses, both Michael and Johnathan will play integral roles in the selection and renovation of the chosen location, steering the company toward its opening in the coming months. With a proactive approach, they are poised to hire additional staff to meet the evolving needs of the business. The collective experience, skills, and entrepreneurial spirit of the management team underscore their commitment to the growth and success of Taste the Carolinas, creating a solid foundation for the envisioned craft beverage destination.
⦁ Founders’ Biography
Both Michael and Johnathan bring diverse backgrounds and a shared entrepreneurial spirit to their roles as co-owners of Taste the Carolinas, LLC. Michael, a North Carolina native, cultivated a deep appreciation for craft beers and wines while growing up in the state.
With a longstanding dream of entrepreneurship, Michael's journey has been marked by a rich tapestry of experiences, beginning in retail at Kmart and progressing through various roles, including management positions, sales, and delivery for Coca-Cola, as well as contributions to the Miller Beer distribution network and FedEx. Johnathan, originally from Tennessee and a North Carolina resident for about four years, offers over 16 years of experience as an owner-operator in the trucking industry.
His multifaceted background includes not only expertise in bookkeeping and maintaining positive relationships with dispatchers and customers but also spans across diverse industries. The decision to embark on the venture arose from Michael's shared tales of exploring local craft beverages during his travels, catalyzing the formation of an LLC and the pursuit of their own business.
With their distinct yet complementary skill sets, Michael and Johnathan are poised to bring a wealth of experience and a shared passion for craft beverages to the heart of Taste the Carolinas.
⦁ Products and Services Description
At Taste the Carolinas, we are committed to delivering an exceptional craft beverage experience, celebrating the diverse and dynamic offerings of North Carolina's craft beer and wine scene. Our curated selection and engaging events aim to create a unique destination that goes beyond traditional bars.
Below is a detailed overview of the offerings we proudly offer:
⦁ Craft Beverage Selection: Taste the Carolinas offers a meticulously curated and diverse selection of North Carolina Craft Beers, Ciders, and Wines. Our patrons can indulge in an ever-rotating lineup that showcases the craftsmanship and unique flavors of local breweries and wineries, including esteemed names such as Catawba Brewing, Cabarrus Brewing, High Wire Brewing, and more.
Formats:
⦁ On Tap: Patrons get to experience the freshness and variety of our craft beers and wines directly from the tap.
⦁ Bottles: Explore an extensive selection of bottled craft beverages, carefully chosen to cater to a range of tastes.
⦁ Cans: Convenience meets quality with our curated collection of craft beers and ciders in easy-to-enjoy cans.
⦁ Growlers: Our patrons get to take home a personalized growler filled with their favorite draft beverage, ensuring the enjoyment continues beyond our premises.
⦁ Engaging Events: Taste the Carolinas is not just a bar; it's a cultural hub. Our regular events feature local musicians, crafts, and food trucks, transforming your visit into a multifaceted experience. From live performances to artisan markets, we curate engaging events that celebrate the richness of North Carolina's local talent and creativity.
⦁ Local Merchandise: Embrace the spirit of North Carolina with our range of locally sourced merchandise. From custom TTC shirts, hoodies, and coozies to unique crafts created by local artisans, we offer more than just beverages – we provide a tangible connection to the cultural vibrancy of the region.
⦁ Tasting Experiences: Our patrons get to elevate their appreciation of craft beverages with our tasting experiences. Sample North Carolina wines by the glass, or flight, or opt for the full bottle.
⦁ Community Connections: Taste the Carolinas is more than a business; it's a community. By fostering partnerships with local brewers, winemakers, artisans, and musicians, we contribute to the cultural and economic vitality of North Carolina.
⦁ Future Brewery Products: As we grow, Taste the Carolinas envisions opening its brewery under our business name. This exciting prospect opens the door to a new chapter where we'll produce and sell our own craft beverages alongside other North Carolina brewery products, further expanding the range of offerings to our patrons.
At Taste the Carolinas, we are dedicated to providing a unique and immersive experience, where each product and service reflects our commitment to celebrating the craft beverage culture of North Carolina.
⦁ Revenue Generation Strategy
Taste the Carolinas, LLC has devised a comprehensive revenue generation strategy that encompasses multiple streams to ensure the sustainability and growth of the business. The primary source of revenue will be derived from the sales of craft beers, ciders, and wines, offered in various formats such as draft, bottles, and cans. This diverse selection caters to the preferences of a broad customer base, allowing patrons to enjoy their favorite beverages on-site or purchase them for takeaway.
Additionally, the business plans to capitalize on the cultural vibrancy of North Carolina by featuring local crafts and merchandise. This includes selling items such as Taste the Carolinas-branded shirts, hoodies, coozies, and other merchandise that aligns with the ethos of the brand. By combining the revenue generated from craft beverage sales with income from merchandise, Taste the Carolinas aims to create a well-rounded and sustainable financial model, tapping into both the consumable and non-consumable aspects of the craft beverage experience.
This holistic approach not only diversifies revenue streams but also enhances the overall customer experience, positioning Taste the Carolinas as a unique destination that extends beyond the realm of traditional beverage establishments.
⦁ Market Analysis
⦁ The U.S. Wine Market
The U.S. wine market size was valued at $63.69 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 6.8% from 2022 to 2030. Wine consumption has become a sign of social status, especially among the millennials and young generation, which is driving the market. Wine sales have surged across the U.S. owing to innovation in flavor, color, and packaging of the product.
Furthermore, the continued importation of high-quality wines into the U.S. is likely to sustain a solid customer base and propel market growth shortly. The emergence of COVID-19 triggered a worldwide catastrophe, on a scale never seen before. Aside from endangering human health and life, the pandemic had a significant detrimental influence on companies all around the world. However, not all industries have been equally affected. While the great majority of on-premises stores were required to close during the start of the pandemic, the off-trade wine business in the U.S. has enjoyed good sales. The COVID-19 pandemic has led many people to use e-commerce for day-to-day operations as well as for ordering alcohol, thus driving the off-trade distribution channel segment.
Many manufacturers prefer to purchase grapes in large quantities from local vineyards for wine production to create a product at a reduced price. Further, locally-made wine has also been gaining traction in the U.S. owing to consumer demand for organic and natural products. Though organic wine is still a niche segment in the overall wine category, its production and consumption have increased in recent years due to rising consumer awareness regarding health and wellness. Further, some manufacturers think that organic is a necessity for their business growth.
Mergers, acquisitions, and consolidation have been occurring among wineries worldwide. For instance, in September 2021, Justin Vineyards & Winery announced that it had acquired Lewis Cellars. It takes around 9,000 cases of wine per year and is known for high-end wines such as Cabernet Sauvignon, Syrah, Merlot, Sauvignon Blanc, and Chardonnay. According to National Wine & Spirits, Inc., regarding distribution, the 20 largest wholesalers control 70% of the U.S. distribution. Large distributors enjoy economies of scale and can pass some of their lower costs to the retailers, thus increasing the total efficiency of the supply chain.
The increasing production of wine, supported by the growing cultivation of grapes, can prove to be harmful to the environment owing to its questionable sustainability. The environmental impact of production is a global cause for concern as most vineyards are monocultures that rely significantly on the preventive spraying of herbicides, fungicides, and pesticides to keep disease and pests at bay. The widespread spraying of pesticides has been diminishing insect and bird populations, while the intensive use of herbicides and fungicides contaminates groundwater and degrades the soil, making it even more dependent on fertilizers. This could restrain the market growth.
Distribution Channel Insights
The off-trade segment held the largest revenue share of over 80.0% in 2021. Offering a variety of products at lower prices as compared to on-trade channels has increased the popularity of retail counters across the U.S. An off-trade distribution system is one of the most effective sales methods for delivering a product to the market. Supermarkets, convenience shops, specialty stores, and other retailers are examples of off-trade channels.
The on-trade channel is projected to register the fastest CAGR of 10.0% from 2022 to 2030. The demand through on-trade channels was severely impacted during the COVID-19 outbreak as pubs, bars, and clubs were closed owing to the fear of the spread of the virus. Further, there was a significant drop in international tourism caused by the strict lockdown measures. However, as the economy is opening, consumption is increasing and is likely to grow at a faster rate than off-trade channels. Millennials and youth have started to socialize like before and tourism is also gaining pace, which is likely to positively impact the segment growth.
⦁ Trends in the Bar industry
⦁ According to KPMG, sales of low-alcoholic wines, beers, and spirits are on the rise. In addition, a post-pandemic report from Mintel shows that low-calorie drinks are expected to gain more interest in the coming years. This indicates a growing preference for healthy alternatives, primarily fueled by millennials looking for new and unique offerings.
⦁ The past few years have seen the rise of self-service systems in bars, positioned as a way to streamline operations. However, the pandemic years have seen one of the most significant labor shortages, also known as the Great Resignation. Understandably, the hospitality industry is one of the most affected.
⦁ According to Mintel, orders for alcohol-free mixed drinks grew by 35% between 2016 and 2019. It comes as no surprise that numerous alcohol-free bars are opening doors across the country. In addition, traditional bars are also updating their menu with mocktails and other zero-proof drinks.
⦁ Mocktails are especially popular with young women and the growing group of health-conscious, zero-alcohol demographic ushered in by the unique situation of the COVID-19 pandemic. This type of beverage might be a good strategy to offer them something they want.
⦁ Just as coffee enthusiasts are happy to pay double or more for brewed coffee, premium mixers with zero calories are also starting to become a popular choice in the bar industry. The market values high-quality ingredients – which is good for establishments since they can command higher prices on cocktails and mixed drinks.
⦁ Recent years have brought about a situation many economists have warned us about supply chain issues. Triggered by the worldwide pandemic, massive supply chain disruptions are causing shortages across the board. These supply chain problems can make bar operations a lot more complicated if one is not prepared.
⦁ Many bars and restaurants still seem to think that if they can’t get the items they need from their old supplier, they can just switch to a new one. But it’s not that easy, especially if everyone is experiencing shortages.
⦁ A resurgence of classic cocktails isn’t unheard of. Like fashion, alcoholic drinks can be quite cyclical, with the popularity of traditional drinks waxing and waning throughout the years. After two years of on-and-off lockdowns, social distancing measures, and other restrictions, many bar-goers have become attracted to the idea of nostalgic drinks – with a twist.
⦁ That said, many of these so-called ‘retro’ drinks can be quite complex and time-consuming, which can slow down service and require more expertise.
⦁ As employee wages go higher, it becomes even harder to attract and retain good servers and bartenders. After all, everyone wants to go another step up the ladder, regardless of where that ladder may be. That’s why, for many bars and nightclubs, losing employees is simply part of the day-to-day, despite the heavy investment in training new hires.
⦁ Perhaps one of the most significant trends to watch out for this 2022 is the increased competition for employees in the job market in the hospitality industry, which includes hotels, restaurants, and bars.
⦁ Target Market
Taste the Carolinas, LLC targets a dynamic and growing market of craft beer and wine enthusiasts in North Carolina. With a focus on individuals who appreciate the diverse and unique flavors offered by local breweries and wineries, the business caters to customers seeking a community-oriented space. Beyond the craft beverage connoisseurs, Taste the Carolinas aims to capture the attention of locals with a penchant for supporting small businesses, as well as tourists exploring the rich cultural landscape of North Carolina.
The target market encompasses those who value the experience of discovering new and distinctive craft beers and wines while enjoying the vibrant ambiance created by local musicians, artisans, and food trucks during special promotions and events. By honing in on this demographic, Taste the Carolinas seeks to establish itself as a go-to destination for those passionate about the local craft beverage scene and fostering community connections.
⦁ Target Market Segment Strategy
Taste the Carolinas employs a segmented approach to cater to the diverse preferences within its target market. The strategy involves tailoring offerings to craft beer and wine enthusiasts who appreciate local flavors, emphasizing the unique brands and tastes of North Carolina's Craft Breweries and Wineries.
Additionally, the business focuses on attracting customers who actively seek out community-oriented spaces, where they can engage with local musicians and artisans during special promotions and events. The strategy also includes creating an inclusive environment that resonates with patrons interested in supporting local businesses and enjoying the vibrant cultural scene.
By understanding and addressing the distinct preferences within the broader craft beverage market, Taste the Carolinas aims to create a niche space that appeals to a diverse range of customers, contributing to the growth and sustainability of the business.
⦁ Porter’s Five Forces Of Profitability
⦁ The Threat of New Entrants
The threat of new entrants into the wine and bar industry for Taste the Carolinas is relatively MODERATE. While there is a growing trend in craft breweries and wineries in North Carolina, entering the Beer and Wine Bar segment requires specific knowledge, regulatory compliance, and unique offerings. The focus on local brands and events may act as a differentiator, creating a barrier to new entrants.
⦁ Bargaining Power of Suppliers
The bargaining power of suppliers, namely local craft breweries and wineries, is MODERATE to HIGH. Taste the Carolinas heavily depends on these suppliers for its unique selection. While the business aims to support local brands, relying on a limited number of suppliers may expose it to potential price fluctuations or supply shortages, impacting overall operations.
⦁ Bargaining Power of Buyers
The bargaining power of buyers is MODERATE. While craft beverage enthusiasts have various options, Taste the Carolinas' emphasis on local flavors, events, and exclusive merchandise may foster customer loyalty. However, patrons can easily switch to other establishments if they perceive better value or experiences elsewhere, necessitating a focus on maintaining a compelling customer experience.
⦁ The Threat of Substitutes
The threat of substitutes is MODERATE. While Taste the Carolinas offers a distinctive craft beverage experience, consumers can explore alternative venues, including other bars, breweries, or retail outlets. The business must continuously innovate and enhance its unique offerings to minimize the appeal of substitutes and maintain a strong market position.
⦁ Competitive Rivalry
The competitive rivalry is MODERATE to HIGH, given the presence of bars, event centers, and general stores serving alcohol in the area. Taste the Carolinas differentiates itself by exclusively featuring North Carolina craft beers and wines alongside local events. Effective communication of this unique value proposition and sustained engagement with customers will be critical to managing competitive pressures and establishing a niche in the market.
⦁ Competitors Analysis
In the local landscape where Taste the Carolinas, LLC aims to establish its Beer and Wine Bar, there exist two restaurants, one event center/bar, and one bar/general store, all of which incorporate alcohol service alongside occasional features of local musicians and food trucks.
However, the distinctive value proposition of Taste the Carolinas lies in its exclusive dedication to North Carolina craft beers and wines, offering a unique and specialized experience that sets it apart from its competitors. While the existing establishments serve alcohol, they do not singularly focus on showcasing the rich diversity of NC Breweries, Wines, and related products, creating an opportunity for Taste the Carolinas to carve a niche in the market.
By emphasizing a regional and community-centric approach, Taste the Carolinas seeks to complement rather than compete directly with existing offerings, providing a specialized destination for patrons seeking an immersive and locally-focused craft beverage experience.
⦁ Competitive Advantages
Taste the Carolinas, LLC will leverage the following factors to gain a competitive advantage:
⦁ Extensive Craft Beer and Wine Selection: Taste the Carolinas offers an extensive and carefully curated selection of craft beers, ciders, and wines. By offering a wide range of options, including local and regional specialties, the business provides customers with a unique and diverse tasting experience.
⦁ Local Artisan Collaborations: Taste the Carolinas actively collaborates with local artisans and vendors to showcase and sell their products alongside craft beverages. This partnership promotes local talent, creates a sense of community, and sets the business apart by offering customers the opportunity to support and engage with the local arts scene.
⦁ Personalized Customer Experiences: The business prioritizes personalized customer experiences, creating a warm and welcoming atmosphere where customers feel valued and attended to. The knowledgeable staff takes the time to understand customer preferences and provides tailored recommendations, enhancing overall customer satisfaction and loyalty.
⦁ Tasting Flights and Experiences: Taste the Carolinas offers tasting flights that allow customers to sample different craft beers or wines, providing an educational and enjoyable experience. This unique offering encourages exploration and helps customers discover new flavors and varieties, setting the business apart from traditional bars or wine shops.
⦁ Exclusive Limited Releases: The business regularly introduces exclusive limited releases of craft beers, ciders, or wines, creating a sense of excitement and exclusivity. These limited offerings attract craft beverage enthusiasts who are eager to try unique and rare selections, generating anticipation and repeat visits.
⦁ Community Engagement and Events: Taste the Carolinas actively engages with the local community by hosting events, such as beer or wine tastings, collaborations with local breweries or wineries, or charity fundraisers. This involvement fosters a strong sense of community, builds relationships, and positions the business as a hub for craft beverage enthusiasts.
⦁ SWOT Analysis
Taste the Carolinas, LLC will carry out an equitable SWOT analysis to develop a strong business strategy, compete ethically in the competitive environment, and steer a thriving business.
⦁ Strengths
⦁ Exclusive focus on North Carolina craft beers and wines.
⦁ Experienced management with diverse backgrounds.
⦁ Unique selling proposition with local events and musicians.
⦁ Well-established relationships with local breweries and wineries.
⦁ Strategic location planning to attract both locals and tourists.
⦁ Weaknesses
⦁ Dependence on a limited number of local suppliers.
⦁ Potential challenges in securing prime retail space.
⦁ Initial reliance on external financing for startup.
⦁ Competition from existing bars and event centers.
⦁ Uncertain regulatory landscape for alcohol sales.
⦁ Opportunities
⦁ A growing trend in craft beverage consumption.
⦁ Expansion into other towns/cities to capture broader markets.
⦁ Potential to open own brewery, expanding product offerings.
⦁ Collaborative ventures with local artisans and musicians.
⦁ Leveraging social media for marketing and community engagement.
⦁ Threats
⦁ Fluctuations in supply chain and pricing of craft beverages.
⦁ Increasing competition from new and existing establishments.
⦁ Regulatory changes impacting alcohol-related businesses.
⦁ Economic downturn affecting consumer spending on non-essential items.
⦁ Challenges in differentiating from substitutes and alternative venues.
⦁ Weaknesses and Threats Mitigation Strategies
⦁ Diversify supplier base to mitigate potential disruptions in the availability and pricing of craft beverages.
⦁ Implement a thorough location analysis and collaborate closely with realtors to secure the most advantageous retail space.
⦁ Explore additional financing options, such as grants or partnerships, to reduce reliance on external loans.
⦁ Develop a robust marketing strategy to effectively differentiate from existing competitors.
⦁ Stay informed about evolving regulations and adapt operations accordingly to minimize regulatory risks.
⦁ Establish long-term contracts with suppliers to stabilize pricing and ensure a consistent supply of craft beverages.
⦁ Continuously innovate the business model, focusing on unique events and offerings to stand out in a competitive market.
⦁ Stay actively engaged in industry forums and associations to stay abreast of regulatory changes and proactively address compliance.
⦁ Implement cost-effective measures during economic downturns, such as optimizing inventory and focusing on high-margin products.
⦁ Emphasize the unique experiences offered, fostering customer loyalty and reducing the appeal of substitutes or alternative venues.
⦁ Risk Analysis
TYPE OF RISK RISK DESCRIPTION IMPACT LEVEL MITIGATION STRATEGY
Market Risk Shifting Consumer Preferences High Regularly monitor market trends and consumer preferences. Conduct market research and customer surveys to stay updated on changing preferences. Adapt the beverage and product offerings accordingly to align with customer demands.
Competition Risk Increased Competition from Similar Establishments Moderate Conduct a competitive analysis to identify key competitors and their offerings. Differentiate Taste the Carolinas by focusing on unique craft beers, ciders, and wines, as well as personalized customer experiences. Continuously innovate and stay ahead by sourcing new and exclusive products.
Regulatory Risk Changes in Licensing or Alcohol Laws High Stay informed about local, state, and federal regulations related to alcohol sales and licensing. Maintain compliance with all legal requirements. Regularly review and update operating procedures to ensure adherence to changing regulations. Establish strong relationships with legal advisors to seek guidance when needed.
Supply Chain Risk Disruptions in Beverage Supply Moderate Diversify suppliers and maintain relationships with multiple vendors for craft beers, ciders, and wines. Develop contingency plans in case of supplier disruptions, such as having alternative sources or creating partnerships with local breweries and wineries. Maintain buffer stock for high-demand products.
Operational Risk Staffing and Training Issues Moderate Implement a comprehensive recruitment and training program to attract and retain skilled staff members. Cross-train employees to ensure coverage during staff shortages. Create a positive work environment and offer competitive compensation to reduce turnover. Provide ongoing training and development opportunities to enhance staff skills.
Financial Risk Fluctuating Costs and Pricing Pressures High Regularly monitor and analyze costs, including raw materials, supplies, and overhead expenses. Implement efficient inventory management systems to control costs. Consider long-term contracts with suppliers to secure favorable pricing. Conduct regular pricing analysis to ensure competitiveness while maintaining profitability.
Reputation Risk Negative Customer Reviews or Incidents High Prioritize exceptional customer service to minimize the risk of negative reviews. Respond promptly and professionally to customer feedback and complaints. Implement a robust quality control system to maintain product quality. Train staff to handle difficult situations and resolve customer issues effectively.
Cybersecurity Risk Data Breaches or Hacking Moderate Implement strong cybersecurity measures, such as firewalls, encryption, and secure payment gateways, to protect customer data. Regularly update and patch software systems to address vulnerabilities. Conduct regular security audits and employee training to ensure adherence to security protocols. Have a backup and disaster recovery plan in place.
⦁
⦁ Marketing and Sales Plan
The marketing and sales plan for Taste the Carolinas focuses on creating brand awareness, attracting and engaging customers, and driving foot traffic to the Beer and Wine Bar. Through targeted marketing campaigns, such as social media promotions and collaborations with local businesses, we aim to reach craft beer and wine enthusiasts in the Mocksville area. By providing exceptional customer experiences and unique offerings, we seek to foster positive word-of-mouth referrals and build a loyal customer base. Additionally, we will leverage customer feedback to continuously refine our marketing strategies and enhance customer satisfaction. Our goal is to establish Taste the Carolinas as a go-to destination for craft beer and wine enthusiasts, known for its exceptional selection, vibrant atmosphere, and strong community ties.
⦁ Marketing Objectives
⦁ Increase brand awareness and recognition among craft beer and wine enthusiasts in the Mocksville area.
⦁ Attract and engage a loyal customer base who appreciate local craft beverages and the vibrant atmosphere at Taste the Carolinas.
⦁ Drive foot traffic and increase customer visits to the Beer and Wine Bar through targeted marketing campaigns and promotions.
⦁ Foster positive word-of-mouth referrals by providing exceptional customer experiences and unique offerings.
⦁ Expand social media presence and followership to effectively communicate promotions, events, and new product arrivals.
⦁ Develop strategic partnerships with local businesses and organizations to cross-promote and reach new customer segments.
⦁ Continuously gather customer feedback and use it to refine marketing strategies and improve overall customer satisfaction.
⦁ Marketing Strategies
To combat the stiff competition in the industry, we will employ and implement sustainable marketing strategies both online and offline to enhance visibility, productivity, and business growth. Taste the Carolinas, LLC will make use of the following marketing and sales strategies to attract and retain clients;
⦁ Online
STRATEGY ACTIVITIES EXPECTATION
Social Media Engagement Regularly post engaging content, including craft beer and wine recommendations, event updates, and behind-the-scenes footage. Respond to comments and messages promptly. Increase brand awareness, attract new followers, and encourage customer engagement.
Influencer Partnerships Collaborate with local influencers and bloggers who have a strong following in the craft beer and wine community. Offer them exclusive tastings and promotions to share their experiences with their audience. Expand reach, tap into new customer segments, and generate buzz around Taste the Carolinas.
Email Marketing Implement an email newsletter campaign to share updates, promotions, and exclusive offers with subscribers. Provide personalized recommendations based on customer preferences. Drive repeat visits, increase customer loyalty, and generate additional sales through targeted email campaigns.
Online Advertising Run targeted online advertisements on social media platforms and relevant websites. Use compelling visuals and messaging to capture the attention of potential customers. Increase brand awareness, drive website traffic, and attract new customers to the Beer and Wine Bar.
Online Reviews and Ratings Encourage customers to leave reviews and ratings on popular platforms like Google, Yelp, and TripAdvisor. Respond to reviews, both positive and negative, to show customer appreciation and address concerns. Build trust, enhance reputation, and attract new customers through positive online reviews and ratings.
⦁ Offline
STRATEGY ACTIVITIES EXPECTATION
Local Event Sponsorship Sponsor local events, such as beer festivals, wine tastings, or community gatherings. Set up a booth, offer tastings, and distribute branded merchandise. Increase brand visibility, demonstrate community support, and attract event attendees to visit the Beer and Wine Bar.
Collaborations with Local Businesses Partner with local restaurants, hotels, or tourism agencies to create joint promotions or packages. Cross-promote each other's offerings through flyers, brochures, or referral programs. Reach new customer segments, tap into established customer bases of partner businesses, and drive traffic to Taste the Carolinas.
Print Advertising Place advertisements in local newspapers, magazines, and lifestyle publications. Design eye-catching visuals and compelling copy to pique interest. Increase brand awareness among the local community, especially those who may not be active online.
Community Engagement Actively participate in community events, and fundraisers, or sponsor local sports teams. Distribute branded merchandise and engage in conversations to build relationships with community members. Enhance brand reputation, foster goodwill, and establish Taste the Carolinas as an integral part of the local community.
Referral Program Implement a referral program offering incentives to customers who refer friends and family. Provide referral cards or unique referral links to track successful referrals. Encourage word-of-mouth marketing, drive new customer acquisition through referrals, and reward loyal customers for their support.
⦁ Sales Strategy
⦁ Build Personalized Relationships: Our sales strategy revolves around building personalized relationships with customers. We will take the time to understand their preferences, and taste preferences, and provide tailored recommendations based on their unique preferences. By engaging in meaningful conversations and actively listening to our customers, we will create a personalized experience that sets us apart from other establishments.
⦁ Educate and Inform: We will focus on educating and informing our customers about the craft beers and wines we offer. Our knowledgeable staff will be trained to share the stories behind the breweries and wineries, the flavor profiles, and the brewing or winemaking processes. By providing insights and knowledge, we will empower our customers to make informed choices while fostering a deeper appreciation for the wine and bar industry.
⦁ Tastings and Sampling: We will offer tastings and sampling opportunities to allow customers to explore and discover new flavors. By providing small samples of different craft beers and wines, we create an interactive and engaging experience that encourages customers to try new products they may not have considered before. Tastings will be accompanied by staff who can share information and answer questions, further enhancing the experience.
⦁ Upselling and Cross-Selling: Our sales strategy will include upselling and cross-selling techniques to maximize customer value. We will train our staff to suggest complementary products or offer promotions that encourage customers to try new beers, wines, or even local crafts. By highlighting the unique characteristics and benefits of these additional offerings, we will increase sales while enriching the customer experience.
⦁ Loyalty Programs and Special Offers: To reward and incentivize our loyal customers, we will implement a loyalty program that offers exclusive benefits, discounts, or special promotions. This program will foster customer retention and encourage repeat visits. Additionally, we will create special offers or bundles that provide added value to customers, such as pairing recommendations or limited-time discounts on selected products.
⦁ Collaborations and Events: We will leverage collaborations with local businesses, such as restaurants or hotels, to offer joint promotions or exclusive packages. By partnering with complementary establishments, we can expand our reach and attract new customers who may not be familiar with our brand. Furthermore, we will organize events such as beer and wine tastings, tap takeovers, or food pairing evenings to create buzz, attract new customers, and provide memorable experiences.
⦁ Online Presence and E-Commerce: We will establish a strong online presence through a dedicated website and active social media profiles. Our online platforms will serve as a hub for information, showcasing our craft beer and wine selection, events, and promotions. We will also explore the possibility of integrating e-commerce capabilities, allowing customers to conveniently purchase their favorite products for delivery or pickup.
⦁ Financial Plan
The financial plan will describe the financial activities of Taste the Carolinas, LLC, the use of the funds required to keep up our business, along with the projected income statement and statement of financial position.
⦁ Assumptions
⦁ The corporate income tax rate is assumed to be 0.00%.
⦁ The capital requirements of the business will be financed with an owner’s equity of $20,000 and a bank loan of $100,000 in exchange for a negotiated equity stake in the company. For the sake of this analysis, we assume an annual interest rate of 5.00%.
General Assumptions
Year 1 Year 2 Year 3 Year 4 Year 5
Corporate Tax Rate 0.00% 0.00% 0.00% 0.00% 0.00%
Debt $ 100,000
Interest Rate 5.00%
Projected Investment $ -
Owner's Equity $ 20,000
Equity Stake 0.00% 0.00% 0.00% 0.00% 0.00%
WACC 4%
⦁ Use of Fund
Taste the Carolinas, LLC
Startup Requirements Cost
Business Bank Account $ -
Business Insurance $ -
Financing $ -
POS System $ -
Building Location $ -
Utilities $ -
Equipment $ -
Permits $ -
Licenses $ -
Social Media outlets- Facebook, Instagram, Tik Tok, X etc $ -
Total Startup Requirements $ 75,000
Owner's Equity $ 20,000
Debt $ 100,000
Equity Investment $ -
⦁ Financial Overview
The table below presents a summary of our business operations. It shows the revenue we project to realize in the first five years, alongside our expenses and net income.
Financial Overview
Year 1 Year 2 Year 3 Year 4 Year 5
Total Revenue $ 200,000 $ 240,000 $ 288,000 $ 345,600 $ 414,720
Total Expenses $ 70,000 $ 73,500 $ 77,175 $ 81,034 $ 85,085
Net Profit $ 130,000 $ 166,500 $ 210,825 $ 264,566 $ 329,635
⦁
⦁ Loan Amortization
Year 1 Year 2 Year 3 Year 4 Year 5
Equity Contribution 20,000 20,000
Loan Principal 100,000 100,000
Loan Term 5 5
Interest Rate 5.00% 5.00%
Loan Year 1 2 3 4 5
Interest Payment (5,000) (4,095) (3,145) (2,147) (1,100)
Principal Payment (18,097) (19,002) (19,952) (20,950) (21,998)
Total Debt Service (23,097) (23,097) (23,097) (23,097) (23,097)
Remaining Principal 100,000 81,903 62,900 42,948 21,998 -
Monthly Interest Payment (417) (682.52) (262) (179) (92)
Monthly Principal Payment (1,508) (1,584) (1,663) (1,746) (1,833)
Total Monthly Debt Service (1,925) (2,266) (1,925) (1,925) (1,925)
⦁
⦁ Projected Income Statement
Income
Year 1 Year 2 Year 3 Year 4 Year 5
$ $ $ $ $
Total Income 200,000 240,000 288,000 345,600 414,720
Total Cost of Sales - - - - -
Gross Margin 200,000 240,000 288,000 345,600 414,720
Gross Margin % 100% 100% 100% 100% 100%
Operating Expenses
Total Operating Expenses 70,000 73,500 77,175 81,034 85,085
EBITDA 130,000 166,500 210,825 264,566 329,635
Depreciation - - - - -
EBIT 130,000 166,500 210,825 264,566 329,635
Interest Expense - - - - -
Income Tax Incurred - - - - -
Net Profit $ 130,000 $ 166,500 $ 210,825 $ 264,566 $ 329,635
Net Profit/Sales % 65% 69% 73% 77% 79%
The graph below shows a brief overview of our income statement. Our net profits are shown in the first five years of operation.
⦁ Projected Cash Flow Statement
Projected Cashflow Statement
Year 1 Year 2 Year 3 Year 4 Year 5
$ $ $ $ $
EBIT 130,000 166,500 210,825 264,566 329,635
Adjustment for non-cash item - - - - -
Payables 0 0 0 0 0
Tax paid - - - - -
Cash Flow from Operation 130,000 166,500 210,825 264,566 329,635
Investing Activities
Capital expenditure (75,000) 0 0 0 0
Cash Flow from Investment (75,000) 0 0 0 0
Financing Activities
Proceeds from Investors' Equity - 0 0 0 0
Long term borrowings 100,000
Repayment (23,097) (23,097) (23,097) (23,097) (23,097)
Dividend paid 0 0 0 0 0
Cash Flow from Financing 76,903 (23,097) (23,097) (23,097) (23,097)
Net cash generated in the year $ 131,903 $ 143,403 $ 187,728 $ 241,469 $ 306,537
Closing cash balance $ 131,903 $ 275,305 $ 463,033 $ 704,501 $ 1,011,038
This table presents a brief overview of our cash flow. Cash flow from operations shows how much is left to join the business after paying both direct and indirect costs.
⦁ Projected Statement of Financial Position
Statement of Financial Position
Year 1 Year 2 Year 3 Year 4 Year 5
$ $ $ $ $
Non-Current Assets
Non-Current Assets 75,000 75,000 75,000 75,000 75,000
Accumulated Depreciation - - - - -
75,000 75,000 75,000 75,000 75,000
Total Non-Current Asset 75,000 75,000 75,000 75,000 75,000
Current assets
Cash and cash equivalents 131,903 275,305 463,033 704,501 1,011,038
Total current assets 206,903 350,305 538,033 779,501 1,086,038
Total assets 206,903 350,305 538,033 779,501 1,086,038
Current Liabilities
Payables 0 0 0 0 0
Other payables - - - - -
Total Current Liabilities - - - - -
Non Current Liabilities
Long term borrowings 81,903 62,900 42,948 21,998 -
Total Liabilities 81,903 62,900 42,948 21,998 -
Equity
Preference Share Capital - - - - -
Retained Earnings 130,000 296,500 507,325 771,891 1,101,526
Total equity 130,000 296,500 507,325 771,891 1,101,526
Total Equity and Liabilities 211,903 359,400 550,273 793,889 1,101,526
The above table shows the financial position of the business. It shows our total assets, equity, and the addition of equity and liabilities.
⦁ Breakeven Analysis
Break-even is the point where the business neither makes a profit nor a loss. This means that at breakeven, the business is only able to pay up its expenses both fixed and variable costs without any excess. The essence of break-even is to determine the number of sales that could lead to profitability. Below is the table for breakeven.
Breakeven Analysis Year 1 Year 2 Year 3 Year 4 Year 5
$ $ $ $ $
Fixed Cost 70,000 73,500 77,175 81,034 85,085
Spending 70,000 73,500 77,175 81,034 85,085
Gross Margin 200,000 240,000 288,000 345,600 414,720
Variable Cost - - - - -
Sales 200,000 240,000 288,000 345,600 414,720
Gross Margin % 1.00 1.00 1.00 1.00 1.00
Break Even Point 70,000 73,500 77,175 81,034 85,085
Sales 200,000 240,000 288,000 345,600 414,720
Profit After Breakeven 130,000 166,500 210,825 264,566 329,635
This means that there must be more than $70,000, $73,500, $77,175, $81,034, and $85,085 worth of sales in the first five years respectively before any profit can be achieved in the business. This is a monthly breakeven point of $5,833.33 in the first year. This means that the business will break even in the first year since we have higher sales than the breakeven.
⦁ Net Present Value
Below is the NPV, which is used to determine the value of the business. A positive net present value means that the projected earnings generated by an investment in the present amount exceed the anticipated costs, also in the present amount. With the NPV being positive at $759,908, this is a good investment for the company as the company’s earnings in the present USD are more than projected expenses also in the present USD.
Years Net Cash Flow PV Net Income Discount Rate
Initial (120,000) (120,000) 4%
Year 1 131,903 126,626 130,000
Year 2 143,403 132,160 166,500
Year 3 187,728 166,089 210,825
Year 4 241,469 205,091 264,566
Year 5 306,537 249,942 329,635
Average Total Average
202,208 759,908 220,305
NPV $ 759,908
ARR 1.84%
PI 7.333
TIR/IRR 114%
The Average Rate of Return shows the profitability potential for start-up investment. At 1.84%, the company is expected to earn an annual $1.84 on each $1 invested.
The Profitability Index shows that this is an acceptable business as it shows that the investment in this business will increase Taste the Carolinas, LLC value by being greater than 1.
The Internal Rate of Return shows an annualized earnings rate on an investment. This means that the business is an attractive investment and a profitable one to venture in, seeing the company’s earnings exceed the capital funding of the business by more than 114%.