Free Essay

Coffee Industry

In: Business and Management

Submitted By Fin123
Words 579
Pages 3
Jody Lund
Owner of the Coffee Shop

Can you talk a little about yourself and how you ended up opening this shop?

Well I grew up local here in Northeast. I went to school at MCAD and received a degree in photography. Obviously that is not a super marketable skill, so after I graduated I decided to open a small gift with my sister shop on Johnson, it was actually just North of here about two blocks. This is where I first fell in love with small business ownership. I just loved the freedom and creativity that it provided. I was able to things my way. It was very similar to art in that way.
We owned the gift shop for ten years, and while we enjoyed it, we were just unable to cover our expenses. Near the time we were closing down shop, this building was going up for sale. It was actually being run as a coffee shop. The woman who had been running it was moving to Arizona. We had a lot of good ideas for the shop, so we decided to buy it from her.

Did small business run in your family?

No, it’s funny that you ask that. My sister and I always laugh about the fact that we ended up going into small business. No, my father worked as a carpenter and my mother was a nurse. Nobody in our family ever owned or ran a business before us. However, I have always had a passion for supporting small business. I think the world needs more entrepreneurs. We bring a lot of variety y to the market place.

How did you Form you business?

We are formed as an LLC. This was the best option for us just because it probably the least hassle. The pass through taxing is a great option for us. LLC’s are just so simple, because my sister is a non-acting owner; we are able to assign ownership interest.

Did you start with a business plan?

Absolutely, this was a very key thing that made us successful at first. We had so much ideas running around. It was necessary for us to write them all down on paper to make logical sense out of it. This was also helpful for us in our process of receiving financing. Generally, banks will not talk to you unless you have a business plan, and can explain your idea in an intelligent way. So we needed to get a small loan for remodeling, because at the time the building was really rundown. We used the money to put in new lighting and ventilation. We also purchased a commercial refrigerator.

How do you run the financial side of your small business? How do you measure performance? Not have a background in accounting, QuickBooks software has been a very valuable asset to have. Not that the books are extremely complicated, but paying taxes with 10 part time employees can be a little complicated. We have racked our sales very closely over the past three years, because for some reason with coffee, there seems to be busy and slow season. For example, through tracking sales we have realized that during the summer we sell the most coffee. Spring is our slowest period. By tracking sales, we have been able to effectively order inventory to supply us through whatever the demand may be, at the same time not having too much inventory during the spring.

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