Do you want to start a coffee import business and need to write a business plan? If YES, here is a sample coffee import business plan template & feasibility report. If you are contemplating starting a business in the United States of America, then one of your options is to start a coffee import business. The truth is that anyone can start a coffee import business although it requires some serious startup capital.
Aside from that, it is indeed a profitable business venture because of the rate at which Americans consume coffee on a daily basis. Below is a sample coffee import business plan template that will help you write yours within record time.
A Sample Coffee Import Business Plan Template
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
1. Industry Overview
Coffee import business falls under the import and export industry. Coffee is a popular beverage and an important commodity that is consumed in all the countries of the world. As a matter of fact, several millions of peasant farmers in developing countries make their living growing coffee and selling to importers from developed countries.
Statistics shows that over 2.25 billion cups of coffee are consumed in the world every day and over 90 percent of coffee production takes place in developing countries – mostly South America, while consumption happens mainly in developed countries.
The two most economically important varieties of coffee plant are the Arabica and the Robusta; 75 to 80 percent of the coffee produced worldwide is Arabica and 20 percent is Robusta. Arabica beans consist of 0.8–1.4 percent caffeine and Robusta beans consist of 1.7–4 percent caffeine.
The fact that coffee is one of the world’s most widely consumed beverages, coffee beans are a major cash crop and an important export product, counting for over 50 percent of some developing nations’ foreign exchange earnings.
The coffee import export industry is much active in the united states of America, Canada and European countries. The industry generates several billions of US dollars annually from several registered coffee importers scattered all around The United States of America. This business is responsible for the employment of loads of people directly and indirectly.
Statistics shows that in the year 2000, coffee consumption in the United States was 22.1 gallons (100.468 liters) per capita and more than 150 million Americans (18 and older) drink coffee on a daily basis, with 65 percent of coffee drinkers consuming their hot beverage in the morning.
As a matter of fact, in 2008, it was the number-one hot beverage of choice among convenience store customers, generating about 78 percent of sales within the hot dispensed beverages category. Some of the factors that encourage entrepreneurs to start their own coffee import business could be that the business is thriving with loads of customers (retailers) willing to purchase coffee from you.
The coffee import export business is indeed a vast industry and there are loads of players in the industry hence its competitive nature. The fact that the industry in most cities is competitive does not in any way stop an aspiring entrepreneur who has keen interest in the industry to back out.
2. Executive Summary
Andrew Kings® Coffee Import Company is a US licensed importing and exporting business with strong bias in coffee importation. Although our business will be headquartered in Rio Rancho – New Mexico where we were able to secure a 40 by 40 feet warehouse, we have the plans to spread our distribution channel across major cities in the United States.
Andrew Kings® Coffee Import Company will be involved in importation of different types of raw coffee beans and neatly refined and packaged coffee products from South America and other countries of the world.
We are aware that there are several coffee import companies all around Rio Rancho which is why we spent time and resources to conduct our feasibility studies and market survey so as to offer more than our competitors. We have robust distribution network; strong online presence and our distributors are armed with the various payment options available in the United States.
Beyond the importation and distribution of coffee products from leading brands in the United States, our customer care is going to be second to none and our deliveries will be timely and highly reliable. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they patronize our products.
Andrew Kings® Coffee Import Company will ensure that all our customers are given first class treatment whenever they visit or order coffee products from us. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large their numbers may grow to. We will ensure that we get our customers involved in the selection of brands that they want us to distribute and also when making some business decisions that directly affect them.
Andrew Kings® Coffee Import Company will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
Andrew Kings® Coffee Import Company is Andrew Kings and his immediate family members. Andrew Kings has a B.Sc. in Business Administration, with over 18 years’ hands on experience in the retailing and import and export industry, working for some of the leading brand in the United States.
3. Our Products and Services
Andrew Kings® Coffee Import Company is in the import and export industry and we will be involved in the importation and distribution of a wide range of raw coffee beans and neatly refined and packaged coffee products from top coffee brands in South America and other countries of the world.
We are in the industry to make profits and we will ensure that we do all that is permitted by the law in the United States to achieve our business aim and objectives.
4. Our Mission and Vision Statement
- Our vision is to become the leading brand in the coffee importation business in the whole of Rio Rancho – New Mexico.
- Our mission is to establish a coffee products importation and distribution business that will distribute a wide range of coffee products at affordable prices to coffee retailers in Rio Rancho and other cities in New Mexico where we intend marketing our products.
Our Business Structure
Our intention of starting a coffee products importation and distribution business is to build a standard coffee importation and distribution business in Rio Rancho – New Mexico that will partner with major coffee farmers in South America and other countries.
We will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business. We will make sure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all our stakeholders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions that will be made available at Andrew Kings® Coffee Import Company;
- Chief Executive Officer
- Warehouse Manager
- Human Resources and Admin Manager
- Merchandise Manager
- Sales and Marketing Manager
- Information Technologist
- Customer Services Executive
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defining job positions for recruitment and managing interviewing process
- Carrying out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversee the smooth running of the daily office activities.
- Responsible for organizing the safe and efficient receipt, storage and dispatch of warehoused goods (coffee products)
- Responsible for liaising with customers, suppliers and transport companies
- In charge of planning, coordinating and monitoring the receipt, order assembly and dispatch of goods (coffee products)
- Responsible for using space and mechanical handling equipment efficiently and making sure quality, budgetary targets and environmental objectives are met
- In charge of coordinating the use of automated and computerized systems where necessary
- Responsible for keeping stock up to date and making sure inventories are accurate;
- Responsible for producing regular reports and statistics on a daily, weekly and monthly basis
- Ensures that proper records of goods are kept and warehouse does not run out of products
- Ensure that the warehouse facility is in tip top shape and goods are properly arranged and easy to locate
- Supervise the workforce in the warehouse floor.
- Manage vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
- Responsible for the purchase of coffee products for the organization
- Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
Sales and Marketing Manager
- Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Model demographic information and analyze the volumes of transactional data generated by customer purchases
- Identify, prioritize, and reach out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Document all customer contact and information
- Represent the company in strategic meetings
- Help increase sales and growth for the company
- Manage the organization website
- Handles ecommerce aspect of the business
- Responsible for installing and maintenance of computer software and hardware for the organization
- Manage logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
- Manage the organization’s CCTV
- Handles any other technological and IT related duties.
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Client Service Executive
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and information is supplied to customers when they make enquiries
Distribution Truck Drivers
- Assist in loading and unloading coffee products
- Maintain a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
- Keep a record of vehicle inspections and make sure the truck is equipped with safety equipment
- Assist the transport and logistics manager in planning their route according to a distribution schedule.
- Inspect vehicles for mechanical items and safety issues and perform preventative maintenance
- Comply with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
- Collect and verify delivery instructions
- Report defects, accidents or violations
6. SWOT Analysis
Our intention of starting out by importing coffee from only Brazil in South America and also distribute our goods (coffee products) only within Rio Rancho – New Mexico is to test run the business for a period of 4 to 5 years to know if we will invest more money, expand the business and then start importing coffee products from major coffee farmers in South America.
We are quite aware that there are several coffee import companies all over Rio Rancho and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
Andrew Kings® Coffee Import Company employed the services of an expert HR and Business Analyst with bias in export and import and retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.
This is the summary of the SWOT analysis that was conducted for Andrew Kings® Coffee Import Company;
Our location, the business model we will be operating on, varieties of payment options, wide range of products from top brands and our excellent customer service culture will definitely count as a strong strength for Andrew Kings® Coffee Import Company. So, also our management team members have what it takes to grow a business from startup to profitability in a record time.
A major weakness that may count against us is the fact that we are a new coffee importation and distribution business and we don’t have the financial capacity to compete with leaders in the industry who own large coffee farms in South America.
The opportunities for coffee products import companies is enormous due to the fact that studies have shown that coffee consumption in the United States was 22.1 gallons (100.468 liters) per capita and more than 150 million Americans (18 and older) drink coffee on a daily basis, with 65 percent of coffee drinkers consuming their hot beverage in the morning.
As a result of that, we were able to conduct a thorough market survey and feasibility studies so as to position our business to take advantage of the existing market for coffee products and also to create our own new market. We know that it is going to require hard work, and we are determined to achieve it.
Top on the list of some of the threats that will confront our business is state regulations for the import and export industry. For a business such as ours, government’s policy can greatly influence the business.
7. MARKET ANALYSIS
- Market Trends
If you are conversant with Coffee business in the United States of America, you will quite agree that coffee consumption has shown steady growth over the years and from all indication, the growth is not going to plummet. Coffee addicts would always go out of their way if possible, to stop by a coffee shop to drink a cup of coffee.
In recent time, the Coffee industry has been sustained by increased consumer spending, driven by higher disposable incomes and greater confidence in the overall economic outlook. As a matter of fact, the demand for coffee has increased at a faster rate than most segments in the foodservice related industry, as consumers increasingly seek convenience at an affordable price.
In addition, the industry has adjusted to the everchanging consumer preferences, especially those relating to health and diet.
Going forward, these trends are expected to continue shore up demand. As a result, major coffee importers will invest in expansion and international growth, strengthening the revenue generated in the industry. Usually, sales for coffee triples during winter season and in most cases small coffee bars struggle to meet the demand for coffees during this period.
Those who run coffee shops don’t struggle to attract clients especially if they are well positioned. Lastly, it is now a common phenomenon for import and distribution companies to leverage on technology to effectively predict consumer demand patterns and to strategically position their business to meet their needs.
8. Our Target Market
The coffee products industry has a wide range of customers; a good number of people consume coffee products. In view of that, we have positioned our coffee company to service businesses in Rio Rancho – New Mexico. We have conducted our market research and we have ideas of what our target market would be expecting from us.
We are in business import and distribute a wide range of coffee products from different coffee farmers and production companies to the following businesses;
- Retailers of coffee products
- Coffee kiosk operators,
- Coffee vending machine operators
- Coffee shops/drive through
A close study of the coffee industry reveals that the market is gradually becoming competitive. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the growing competition and we are prepared to compete favorably with other leading coffee products importers and distributors in Rio Rancho – New Mexico.
One thing is certain, we will ensure that we have a wide range of products available in our warehouse at all times. One of our business goals is to make Andrew Kings® Coffee Import Company a one stop coffee products import company. Our excellent customer service culture, timely and reliable delivery services, online presence, and various payment options will serve as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Andrew Kings® Coffee Import Company is in business to retail a wide range of coffee products in Rio Rancho – New Mexico. We are in the coffee products import and export industry to maximize profits and we are going to go ensure that we achieve or business goals and objectives.
In essence, our source of income will be importation of different types of raw coffee beans and neatly refined and packaged coffee products from South America and other countries of the world.
10. Sales Forecast
One thing is certain when it comes to coffee products importation and distribution business, if your business is centrally positioned coupled with effective and reliable vans / trucks and distribution network, you will always attract customers cum sales and that will translate to increase in revenue generation for the business.
We are well positioned to take on the available market in Rio Rancho – New Mexico and we are quite optimistic that we will meet our set target of generating enough income/profits from our first six months of operation and grow the business and our clientele base.
We have been able to examine the coffee products import and export industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.
Below are the sales projections for Andrew Kings® Coffee Import Company, it is based on the location of our business, the list of coffee products and other factors as it relates to coffee products distribution startups in the United States;
- First Fiscal Year (FY1): $240,000
- Second Fiscal Year (FY2): $450,000
- Third Fiscal Year (FY3): $750,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products, and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location for Andrew Kings® Coffee Import Company, we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice for coffee products retailers in Rio Rancho – New Mexico.
We hired experts who have good understanding of the retailing and import and export industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Rio Rancho – New Mexico.
In summary, Andrew Kings® Coffee Import Company will adopt the following sales and marketing approach to win customers over;
- Introduce our business by sending introductory letters alongside our brochure to coffee products retailers and key stake holders in Rio Rancho – New Mexico
- Ensure that we have a wide range of coffee products from different brand within and outside South America at all times.
- Make use of attractive hand bills to create awareness business
- Position our signage / flexi banners at strategic places around Rio Rancho – New Mexico
- Create a loyalty plan that will enable us reward our regular customers
11. Publicity and Advertising Strategy
Despite the fact that our coffee products importation and distribution business is well structured and well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote the business.
Andrew Kings® Coffee Import Company has a long-term plan of opening distribution channels all around the state of New Mexico and subsequently major cities in the US which is why we will deliberately build our brand to be well accepted in Rio Rancho before venturing out. Here are the platforms we intend leveraging on to promote and advertise Andrew Kings® Coffee Import Company;
- Place adverts on community based newspapers, radio and TV stations.
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
- Ensure that our we position our banners and billboards in strategic positions all around Rio Rancho – New Mexico
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Contact coffee products retailers by calling them up and informing them of Andrew Kings® Coffee Import Company and the products we sell / distribute
- Advertise our coffee import and delivery services business in our official website and employ strategies that will help us pull traffic to the site
- Brand all our official cars and distribution vans and ensure that all our staff members and management staff wear our branded shirt or cap at regular intervals.
12. Our Pricing Strategy
Pricing is one of the key factors that gives leverage to distribution companies and retailers, it is normal for retailers to purchase products from distribution companies that they can get at cheaper price. We will work towards ensuring that all our products are distributed at highly competitive prices compared to what is obtainable in the United States of America.
We also have plans in place to discount our products once in a while and also to reward our loyal customers from time to time.
- Payment Options
The payment policy adopted by Andrew Kings® Coffee Import Company is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Andrew Kings® Coffee Import Company will make available to her clients;
- Payment via bank transfer
- Payment via credit cards/Point of Sale Machines (POS Machines)
- Payment via POS machines
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for coffee products purchase without any stress on their part.
13. Startup Expenditure (Budget)
These are the key areas where we will spend our startup capital;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of Andrew Kings® Coffee Import Company in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The cost for hiring business consultant – $2,500.
- The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12 months at $1.76 per square feet warehouse facility in the total amount of $105,600.
- The total cost for warehouse facility remodeling (construction of racks and shelves) – $20,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills and maintenance of trucks / vans et al) – $180,000
- The cost for start-up inventory and logistics (the amount needed for the importation of different types of raw coffee beans and importation of neatly refined and packaged coffee products from South America and other countries of the world.) – $250,000
- Storage hardware (bins, rack, shelves, crates) – $3,720
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost of purchase and installation of CCTVs – $5,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
- The cost for the purchase of distribution vans/trucks – $60,000
- The cost of launching a website – $600
- Miscellaneous – $10,000
We would need an estimate of $500,000 to successfully set up our coffee products importation and distribution business in Rio Rancho – New Mexico.
Generating Funds/Startup Capital for Andrew Kings® Coffee Import Company
Andrew Kings® Coffee Import Company is a private business that is solely owned and financed by Andrew Kings. He has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
Part of the plans we have in place to sustain Andrew Kings® Coffee Import Company is to ensure that we continue to import and deliver quality coffee products, improvise on how to do things faster and cheaper. We are not going to relent in providing conducive environment for our workers and also the required trainings that will help them deliver excellent services at all times.
We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better. We will not waste time in adopting new technology, best practices and diversifying our services; expand our product and service offerings once the need arises.
Our key sustainability and expansion strategy as a business is to ensure that we only hire competent and technically sound employees, create a conducive working environment and employee benefits for all our staff members. We know that if we implement our business strategies, we will grow our coffee products importation and distribution business beyond Rio Rancho – New Mexico to other states in the U.S in record time.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of warehouse facility and remodeling the facility: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Packaging and Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Purchase of distribution vans: Completed
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Compilation of our list of coffee products that we will import and distribute: Completed
- Establishing business relationship with coffee farmers, coffee products production companies in South America and other countries of the world and coffee products retailers within the United States of America: In Progress