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The Mad Hatter Coffee & Tea Co.

The Mad Hatter Coffee & Tea Co.

Location
Louisiana
Industry
Food Services
Phase
Start up
Company
Single-Owner Corporation/LLC
Author The Mad Hatter
Overview
An innovative coffeehouse for New Orleans focused on quality and service. See my profile for more.
The Company
Company needs
Looking for financing(Loans)
Looking for financing(Investors)
Business Plan Feedback
 
Business Description
The Mad Hatter, Inc., dba The Mad Hatter Coffee and Tea Co. is a privately held Limited Liability Company registered in Louisiana.
 
Product or services

Finest gourmet coffees and tea, emphasis on espresso, imported beer and wine, specialty beverages, a selection of foods, gourmet chocolates and other desserts. Authentic tea ceremonies - British, Russian, Gongfou and Chaou Ceremonies and a not-so-traditional Mad Tea Party.

 

 

 

 

 

 

 
Preferred Finance Source:
Specialized Lenders
Angel Investors
Alternative Lenders

Projections

Financial Summary: Projected average annually sales growth for The Mad Hatter Coffee and Tea Company is 17% for the next three years as the café gains greater market share in New Orleans. These projections are consistent with industry averages (15-23%). Factoring in local conditions, growth is projected at 19% for year two and 20% for year three before leveling off to an average 440-520 customers per day, although daily transactions in excess of 600 can be expected. ~ Profit break-even expected on or about month seven (7) of operations. ~ Based on conservative figures for projecting baseline revenue (with an average ticket $3.87/average number per day transactions 414), initial margins are average with expected profits approximately 16% (average to above-average vs. specialty coffee industry standards), cash flow adequate, but leaving significant room for growth; anticipated margins for the second and third years are 17-20%. ~ Marketing budget below 10% of sales (+/- 2% as necessary). ~ First fiscal year gross revenues are expected to exceed $420,000 with after-tax net profits of approximately $40,000 -increasing to $537,000 with after-tax net profits of approximately $79,000 for fiscal year 2 -increasing to more than $593,000 with after-tax net profits of approximately $92,000 by the third fiscal year-end. ~ A comprehensive Risk Analysis and Evaluation is available. ~ Revenue Projections, incl. Profit/Loss Projection Spreadsheets for years 1-3 as well as very detailed decriptions of assumptions used to determine these same projections are available. ~ Consider a time-honored rule for measuring the potential success of any business that states a new business can succeed if it spends on average no more than 25% on Property Expenses, 25% on Payroll, and 35-40% on Product; the remaining net profits represent the owner’s “Take-Home” ~ Revenue projections included in The Mad Hatter Business Plan demonstrate this.

Invested so far:

    

Funds required:
$10,000-$25,000
$100,000-$250,000

Funds has been spent on:

Funds will be spent on:

To date, approximately $11,700 personally financed used primarily for concept development, associated research and/or market research (incl. competitive analysis), as well as the careful cultivation of numerous strategic personal and business alliances within the City of New Orleans

The Mad Hatter Coffee and Tea Co. is currently in its start-up phase seeking private placement of investment OR loan to $200,000 to finance all aspects of start-up including inventory, lease, build-out, initial marketing, payroll, insurance, etc.

Management & Marketing
Management Team

The Managing Partner of this venture brings many years of coffeehouse ops mngmnt, industry knowledge, marketing as well as a personal clientele.


Target Market & Marketing Strategy

NOTE: Info on New Orleans recovery and economic trends is included in the Business Plan. The cafe will serve Uptown New Orleans, an area that does NOT flood. Great service, quality products, strategic marketing and prime location are key to success.

 

 

 

Questions & Additional information
Questions & Additional information

A comprehensive Business Plan including a detailed Risk Analysis and Evaluation is available. Looking for savvy investors willing to place from $20,000 to $200,000 bias toward those who take into account personal experience, style, and vision in their decision-making process. Although I prefer these investors passive or "silent" I would relish their ongoing advice/input. I am confident in my knowledge and ability. I am also smart enough to realize there is always more to learn.
 

 

 

 
» login or register to post comments | The Mad Hatter's profile

Hi Mad Hatter

Submitted by Guideye on Mon, 07/16/2007 - 8:47pm.

Thank you for posting on Guideye.com?  Feel free to ask questions here as well as look up other finance partners's profiles.

For loans, what has been your experience?  Have you tried commercial banks? they usually require 2 years in business.  SBA-backed loans, some banks do start upw with the SBA guarantee, but it usually goes up to 50K?

Also, have you consider buying an exisiting business? Banks have an easier time funding this (history of cash flows)

You can also try the following institutions (they work with the SBA, Innovative Bank, Business Loan Express, Superior financial)

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Thanks for the Information

Submitted by The Mad Hatter on Mon, 07/16/2007 - 11:18pm.

I appreciate any and all advice/information.

Regarding "traditional" loans, I haven't bothered and for several reasons (the usual ones).

Yes, I realize there are banks who will readilly consider a start-up w/ SBA backing. I need $140k. Once I pass the $30k mark from private investor(s), I'll look a little harder at the potential of taking SBA backing to a bank for part/all of the rest.

I also understand the advantages of buying business over starting from scratch. Setting aside the advantages scratch can have, there is the small issue of there being no such business for sale anywhere in New Orleans, as of last month anyway.  

Private placement just seems like my best bet all the way around, even though I will certainly pay more in the end. Right now, the best I can do is get the plan in front of as many qualified potential investors as are willing to entertain my ideas.  

At this time, I am fortunate to have several potential qualified investors considering my plan... and I would say, seriously considering. Plus, I haven't reached the limits of my own personal/professional network, and there remain a number of people to talk too. 

I am unfamiliar with the 3 institutions you offered -Innovative Bank, Business Loan Express, Superior Financial- so I will make their research a priority.

Again, thank you for your time. It's sincerely appreciated.

The Hatter

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Actually, there is something...

Submitted by The Mad Hatter on Mon, 07/16/2007 - 11:31pm.

I have made a moderate effort to locate information/resources on grants, tax abatements/advantages, or other programs designed to assist small businesses (incl. start-ups) in New Orleans and maybe even specifically for Hurricane Katrina victims (like me, for example).

Now, I have located grant programs for small businesses that existed pre-Katrina designed to assist their recovery. I am also familiar with the New Orleans-specific grant program from Idea Vlg.

But otherwise, I am at a loss... 

I know there must be some programs whether at a federal, state, or local level... surely there must be... but I have yet to find them. Perhaps it is an issue of my not knowing the proper search parameters?

Thanks for any advice or help.

The Hatter

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Since New Orlean is a

Submitted by chainy on Tue, 07/17/2007 - 12:24am.

Since New Orlean is a special case. There might be special loan programs, they probably will not be grants but, more easier/flexible Disaster or developmetn loans.

The best way to find these out those special loans is to contact non-profit business centers in New Orleans such as the SBA or Small business dev centers.

 Its probably best to make a list of non proft centers there. If you find them fell free to post it here, the more knowledge the better.

 final note, your approach of finding some money first, then going for a loan is smart. The lenders will take a person more seriously if they see you raised some money.

 

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REF: Since New Orlean is Special

Submitted by The Mad Hatter on Tue, 07/17/2007 - 12:08pm.

New Orleans recently (finally) published the map of 17 economoic redevelopment zones and I know there are serious tax advatages available for these, I suspect grants to with Federal money ($35.4 billion of it), however, these zones are also in the areas hardest hit by flood waters.

My target area is Uptown, most of which is built on the natural levee and so does not flood. No flood, no redevelopment zone/money/incentives (at least that I can find). But this area has become ground zero for the independent busines renassaince underway in the city.

The city does have a "One Stop" Small Business development office. I'll try to find the number.

"final note, your approach of finding some money first, then going for a loan is smart. The lenders will take a person more seriously if they see you raised some money. "

Thanks. I learned that from a rather maverick entrepreneur who did just that and who is still in business 4 years later. Like him, I am in it to win it.

Best,

The Hatter

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