Coffee Shop Business Plan Essay

1704 WordsApr 5, 20117 Pages
Integrative Case, HannaH page 1 Integrative Case, HannaH By; Kimberly King-Mahaffey Professor Toiya Evans Finance 100 May 30, 2010 Integrative Case, HannaH page 2 Hannah Eisenstat had a business plan to own and operate a small business to sell coffee to patrons. The business started out with one owner Hannah being sole proprietorship venture. The business started out a bit weak while Hannah found once it was up and operating that the coffee did not produce the flavor she had anticipated and envisioned. A regular customer made an offer to become an investor offering an idea that would eliminate the small business into a larger company that would offer a better quality of coffee, but by doing this the owner would have…show more content…
(www.go4funding.com, 2010) When investing into a business that needs more than a million dollars if the owner needs an investor then a Venture Investor Capital would be an option. Hannah found Dixie Partners, a local venture capital firm. The firm agreed to invest $3 million needed to finance the construction of the facility large enough needed to roast the coffee beans for production. The firm in exchange would receive 50% share from the business. HannaH’s operations were strong enough in production that in eight years the company grew and had employed around 200 more people. Expansion was again needed, so Dixie again invested $4 million for $1,200,000 shares in 2003, and again $8 million for $1,500,000 shares in 2006. Having to make this decision also caused to have a loan term for renewal of five years, which was due in 2004, then again in 2007, additional shares of $400,000 were issued to the employees. What started as a small business vision turned into a large corporate type business having board of directors to Integrative Case, HannaH page 5 What started as a small business vision turned into a large corporate type business having board of directors to expand the distribution of the coffee through out the U.S. the financing would come through on IPO. The plan was to raise $20 million in new capital at

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