Are you about starting a cigar lounge? If YES, here’s a complete sample smoke shop business plan template & feasibility report you can use for FREE to raise money. A cigar lounge or cigar bar is a place where smokers go to buy their preferred cigar and smoke freely without the fear of being embarrassed, arrested or fined.
In recent times, you might agree that it is now illegal to smoke in public places. The World Health Organization (WHO), in conjunction with Governments of various Countries are clamping down on smoking in public places just in a bid to protect non-smokers from the harmful effect of smoking.
Right there in the Airports, Cinemas, Shopping Malls and Public places in general, you might have noticed the “Smoking Not Allowed” signs hung at various spots informing the general public that the area is a no smoking zone.
However, if you took your time to make enquiry, you would find that there are cigar lounges just around the corner. The truth is that banning smoking in public places is actually a blessing in disguise for people with the intention of starting a cigar lounge.
Little wonder we have cigar lounges being positioned in strategic places like airports, shopping malls, cinemas, et al. Although not all cigar lounge is opened to the general public. In some cigar lounges, you would be required to sign up as a member before you can have access.
A Sample Smoke Shop (Cigar Lounge) 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
The Cigar Lounges (Smoke Shop) industry comprises businesses known as smoke shop, cigar bars or lounges, where patrons can purchase and smoke cigars freely with fear or breaking the law of a country or city. Businesses in this industry usually provide limited food and alcohol services as a means of increasing their revenue generation.
In recent time, the Cigar Lounges industry has made a strong comeback in the united states over the last five years as a large increase in cigar consumption has boosted the demand for cigar lounges (smoke shops). In the face of regulatory hurdles in obtaining exemption from state indoor smoking bans, both industry participation and revenue have grown at rapid rates since 2010.
No doubt, as the economy continues to grow and improve over the next five years, more consumers will likely indulge in premium cigars at high-end smoke shops, helping the industry sustain its growth and widen profit margins. So also, with the United States recent steps toward normalization of relations with Cuba will definitely expand access to the country’s high-end cigars, providing an opportunity for the industry to maximize profits.
The Cigar Lounges industry is indeed a thriving industry in the United States, Canada and in most countries in Europe, Statistics has it that the Cigar Lounges industry in the United States of America, is worth $2 billion, with an estimated growth rate of 11.0 percent.
There are about 7,684 legally registered and licensed cigar lounges / smoke shops businesses scattered across the United States of America and they are responsible for employing about 17,980 people. The industry is an open industry hence a low level of market share concentration.
In order to invest wisely, you need to carry out a research on the industry or line of business you intend investing in. if you are opening a cigar lounge for the first time, it is important you conduct a thorough research so that you can be well informed and guided when making the choices of what you want from the array of options that are available to you.
Researching will open you up to the various opportunities you can leverage on and how you can access them. It’s not compulsory that you must be the one to carry out the research; you can pay professionals to help you garner the needed information.
Any entrepreneur who wants to start a smoke shop business in the US would definitely be confronted with tough competition out there.
The truth is that, you will not only compete with smoke shops / cigar lounges in your location or city, but you would be competing with every other entertainment options such as wine bars, night clubs, restaurants, casinos et al where cigars are retailed and can be freely smoked.
For instance, people go to bars to drink, smoke and socialize and they tend to get more when they go to night clubs or other entertainment hub. In night clubs, people do not only drink, smoke and socialize, but they also dance if they choose to and get entertained.
Lastly, it is important to state that as much as starting a smoke shop business can be profitable and rewarding; the success of any smoke shop / cigar lounge business in the United States is not automatic. The chances of new wine smoke shops to struggle within the first 6 months of launching can’t be ruled out.
As a matter of fact, it can take between two to five years before most cigar lounge and similar businesses can recover their initial investment. In order words, just like loads of new businesses, the statistics for cigar lounges do not favor the startups, you just have to have a long term investment plan if you intend starting your bar business.
2. Executive Summary
Sleek Cigar Lounge®, LLC is a neighborhood smoke shop / cigar lounge that will be located on the ground floor of one of the busiest airport facility in the United States of America – The Los Angeles International Airport, California. We have been able to secure a one-year lease of a vacant shop within the airport’s facility.
We are fortunate to secure a facility with an option of renewal for 5 years at an agreed rate. We are going to be involved in the sale of cigars, sale of tobacco-related accessories, sale of other tobacco products, sale of food and drink, mass marketing cigars and cigarillos, sale of premium cigars, providing a cigar-friendly smoking environment.
We will also be involved in the sale of assorted red and white wines, sale of beer and liquor, sale of distilled spirits, martinis and tobacco et al to the people of Los Angeles and visitors in a conducive environment that is specifically designed for socializing and networking and free from all forms of violence.
Sleek Cigar Lounge®, LLC is designed and constructed to meet both the health and safety standard as recommended by the local authority.
Our customers are going to be treated with good music at all times. We have made provision for live band, karaoke, country side music and jazz et al. This will be played at the background to create the ambience that our customers will cherish.
We are in business to make profits at the same to give our customers value for their money; we want to give people the opportunity to choose from the wide range of assorted cigars, tobaccos and drinks that are manufactured both in the United States of America and overseas.
Sleek Cigar Lounge®, LLC will go all the way to make available in our cigar lounge most of the cigar brands produced in the United States of America and in other parts of the world especially in countries like Cuba and Italy.
We aware that cigar lounges easily attract intellectuals and business people and we know that the airport is one of the places where we can easily tie down these people especially when they have to wait for their flights et al that is the reason why we have decided to start the first outlet of our smoke shop in Los Angeles International Airport which happens to be the second busiest airports in the whole of the United States of America.
We will ensure that all our employees are selected from a pool of qualified and customer centric people in and around Los Angeles – California and also from any part of the United States.
We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with other players in the United States and throughout the globe.
Sleek Cigar Lounge®, LLC is owned by Sleek Davenport and his family. Sleek Davenport has managed several smoke shops, bars and nightclubs in Los Angeles and Las Vegas prior to opening his own smoke shop.
He has the magic wand to attract people who go to cigar lounges and bars on a regular basis. The business will be co – managed by his trusted associate for many years, Moore Sam who coincidentally was recruited and trained by him 5 years ago in downtown Las Vegas.
3. Our Products and Services
Sleek Cigar Lounge®, LLC is going to operate a standard smoke shop that will make available most of the cigar products and accessories that can be found in a standard cigar lounge or bar in the United States. We will also ensure that we go all the way to make available assorted wines and alcoholic drinks in our smoke shop.
These are some of our product and service offerings;
- Sales of cigars
- Sales of tobacco-related accessories
- Sales of other tobacco products
- Sales of food and drink
- Mass market cigars and cigarillos
- Premium cigars
- Providing a cigar-friendly smoking environment
- Assorted red and white wines
- Beer and liquor
- Distilled spirits
- Sale of E – Cigars
4. Our Mission and Vision Statement
- Our vision is to establish a standard and secured smoke shop in Los Angeles, CA that will be the melting pot of all lovers of cigars, tobaccos, wine, alcoholic and non – alcoholic drinks.
- Our mission is to establish a smoke shop business that will make available all the brands of cigars, tobaccos, wine, and alcoholic drinks in the United States and other parts of the world at every given time to our highly esteemed customers and a place where people can network and socialize.
Our Business Structure
Sleek Cigar Lounge®, LLC is a business that is established to be a pacesetter when it comes to how standard smoke shop should be run in Los Angeles and even in the United States of America.
We have the goal of assembling a team of dedicated workforce who will give our customers excellent customer service at all times, a team that will ensure that we will continue to have repeated customers and a team that will indeed make us the melting pot for smokers and socialites in Los Angeles.
In view of the above, we have been able to follow suits on what is obtainable in standard cigar lounge in the United States and perhaps improve on the structure with time when the need arises. We will work hard to ensure that we only attract people with the right mindset to help us achieve our business goals and objectives in record time.
Below is the business structure that we will build Sleek Cigar Lounge®, LLC;
- Chief Executive Officer (Owner)
- Smoke Shop Manager
- Bartender / Baristas
- Accountants / Cashiers
- Procurement Officer
- Greeters / Customer Service Agent / Table Attendant
- Security Officers
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Creates, communicates, 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 providing direction for thee business
- 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; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- Defining job positions for recruitment and managing interviewing process
- Carrying out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Design job descriptions with KPI to drive performance management for clients
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Smoke Shop Manager:
- Responsible for managing the daily activities in the cigar lounge
- Ensure that the facility is in tip top shape and conducive enough to welcome customers
- Interfaces with vendors
- Reports to the Chief Executive Officer
- Attends to Customers complaints and enquiries
- Prepares budget and reports for the organization
- Responsible for Training and Development in the organization
- Responsible for procuring of supplies and equipment
- Handle any other duty as assigned by the CEO
Bartender / Baristas:
- Interact with customers; take orders for cigars, tobaccos, drinks and snacks.
- Plan and present bar menu to clients
- Check identification of the guest to make sure they meet age requirements for purchase of alcohol and tobacco products.
- Mix ingredients to prepare cocktails and other drinks.
- Mix drinks, cocktails and other bar beverages as ordered and in compliance with standard drink recipes.
- Prepare alcohol or non-alcohol beverages.
- Service Wine and Beer to guests.
- Arrange bottles and glasses to make attractive displays.
- Assess customers’ needs and preferences and make recommendations
- Make lists of supplies in conjunction with the smoke shop manager / management
- Prepare inventory or purchase requisitions as needed to replenish supplies.
- Ensure that the assigned bar area is fully equipped with tools and products needed for Mixing beverages and serving guests.
Accountant / Cashier:
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the company
- Serves as internal auditor for the company
Disc Jockey (DJ)
- Ensures that customers are entertained with the best of music per time
- Manage the sound system for the bar
- In charge of music collections
- Providing music at events.
- Responsible for developing music playlists.
- Interacting with public at parties.
- Responsible for mixing music tracks.
Greeters / Customer Service Agent / Table Attendant
- Open door and welcome customers
- Ensures that customers feel relaxed and at home
- Handle customers enquiries
- Assess customers’ needs and preferences and make recommendations
- Ability to sell or influence others for up selling and suggestive selling.
- Provide recommendations and suggestions to guest for choosing Drinks and Snacks.
- Serve customers in a friendly and helpful manner.
- Determine when a customer has had too much cigar and alcohol and if required refusing any further serving on a polite way.
- Demonstrate a thorough knowledge of cigar and alcoholic products, menus and Promotions
- Handle any other duty as assigned by the smoke shop manager
- Handle and move objects, such as glasses and bottles, using hands and arms.
- Clean up after customers and clean work area.
- Clear ashtrays as and when required.
- Wash glassware and utensils after each use.
- Maintain a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required.
- Ensure that toiletries and supplies don’t run out of stock
- Handle any other duty as assigned by the smoke shop manager.
- Ensure that the facility is secured at all time
- Control traffic and organize parking
- Give security tips to staff members from time to time
- Patrols around the building on a 24 hours basis
- Submit security reports weekly
- Any other duty as assigned by the smoke shop manager
6. SWOT Analysis
Sleek Cigar Lounge®, LLC is established with the aim of becoming the melting point for smokers and socialites in Los Angles which is why we have taken our time to critically analyze and conduct SWOT analysis to be able to identify areas we need to work on if indeed we want to achieve our business goal.
No investor would want to invest his or hard earned money without assessing the risks involved in the venture and also his or her capability to deliver and make profits from the business. The ability to make profits from any business and to favorably compete with competitors in the industry starts with the result you get from your SWOT analysis.
In view of that, Sleek Cigar Lounge®, LLC hired a business consultant / specialist to help her conduct SWOT analysis for the business and below is a summary of the result that was generated;
Our strength as a company is, excellence and detailed customer service. Wide range of assorted cigars, tobaccos, and alcoholic drinks both from the United States and other parts of the world. Excellent facility, excellent ambience and perfect location for a cigar lounge in metropolitan city like Los Angeles.
Our perceived weakness could be that we are new business, and we may not have the financial muscle to sustain the kind of publicity we want to give our business.
There are unlimited business opportunities available to smoke chop businesses in busy cities like Los Angeles; Los Angeles is one of the cities in the world where social life is at its peak.
Besides the airport facility where our cigar lounge is located is one of the busiest in the United States and it is open to loads of opportunities due to the influx of travelers via the airport. Another opportunity that we stand to leverage on is the fact that we can easily order any brand of cigar, tobacco, wine and drinks directly from the manufacturer with little or no stress.
Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new cigar lounge or wine bar in same facility or within same location where our target market exist and who may want to adopt same Business model like us.
7. MARKET ANALYSIS
- Market Trends
Despite the fact that the cigar lounges industry has long existed in the United States, it is starting to fall back into fashion.
Innovative flavors and different varieties of cigars have increased demand over the last five years. Recent data from the Centers for Disease Control and Prevention (CDC) clearly indicated that 40.0 percent of people who try smoking try flavored cigarettes or cigarillos. Consequently, this industry has jumped back into a growth phase.
In the early part of the millennium, cigar lounges especially e – cigar lounges became very popular and started popping up in many metropolitan neighborhoods across major cities in the United States of America. Cigar lounges now compete with the local hangouts such as wine bars, coffee shops and local bars.
The wine bar sensation offers the taste before you buy philosophy. No doubt, the Cigar Lounges industry will continue to improvise on ways to increase sales. They seek to remove the association of cigar with high – end clientele and overwhelming cigar lists and replace it with a more casual and relaxing atmosphere.
Many of these cigar lounges are furnished with nooks and cozy booths encased in rich colors and plush surroundings in hopes their guests will linger.
Cigar lounges look to embrace the intellectual stimulation linked to cigar and tobacco and offer an alternative to the smoke shop scene. The phlegmatic environment lends itself to a good socializing setting with a less crowded feel and more intimate appeal.
In recent time, smoke shops / cigar lounges have begun to incorporate a larger variety of alcoholic drinks and food choices as part of their product offerings. It is obvious that adding these product offerings help in creating alternate source of generating sales and increasing their overall income even if they struggle to sell their cigars and tobaccos.
8. Our Target Market
Before starting our cigar lounge business in Los Angeles – California, we conducted a market survey and feasibility studies and we are certain that there is a wide range of people who would patronize our cigar lounge on a regular basis.
In view of that, we have created strategies that will enable us reach out to various groups of people who are likely going to become our loyal customer. Below is our target market;
- Corporate Executives
- Taxi Drivers
- Business People
- Sports Men and Women
- Government Officials
- College Students
Our Competitive Advantage
We are mindful of the fact that there is stiffer competition in the cigar lounges industry in the United States of America; hence we have been able to hire some of the best business developer to handle our sales and marketing.
Part of what is going to be our selling point in Los Angeles is the fact that we operate a standard smoke shop, in a perfect location (one of the busiest airport facilities in the United States) for the kind of business that we run and also the fact that our cigar lounge facility is highly secured.
Another factor that will give Sleek Cigar Lounge®, LLC competitive edge is that we have enough packing space to accommodate the numbers of customers our cigar lounge can contain per time. We are not ruling out the fact that we have a dedicated and customer centric workforce that are willing to go the extra mile to give our customers full value for their money and time whenever the patronize our cigar lounge.
We are not ignoring the fact that we are among the few neighborhood cigar lounge in downtown Los Angeles that sells almost all the brands of cigar, tobacco, and alcoholic drinks available in the United States of America, crafted beers, distilled spirits, liquors et al and obviously, that will surely count towards our advantage in the market place and also the robust experience of our CEO and the smoke shop manager is also a positive for Sleek Cigar Lounge®, LLC.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups smoke shops, wine bars and nightclub businesses in the United States) 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.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Sleek Cigar Lounge®, LLC is established with the aim of maximizing profits in the cigar lounges industry and we are going to go all the way to ensure that we do all it takes to attract our target market. The sources of income for Sleek Cigar Lounge®, LLC are stated below;
- Sales of cigars
- Sales of tobacco-related accessories
- Sales of other tobacco products
- Sales of food and drink
- Mass market cigars and cigarillos
- Premium cigars
- Providing a cigar-friendly smoking environment
- Sale of assorted red and white wines
- Sale of beer and liquor
- Sale of distilled spirits
- Sale of martinis
- Sale of tobacco
- Sale of e – Cigars
10. Sales Forecast
One thing is certain when it comes to cigar lounge business, if your cigar lounge is cozy, relaxing, well stocked and centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in Los Angeles California and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.
We have been able to critically examine the cigar lounge market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in Los Angeles – CA.
Below is the sales projection for Crespo and Tina® Wine Bar, it is based on the location of our business and other factors as it relates to wine bars startups in the United States;
- First Fiscal Year-: $75,000
- Second Fiscal Year-: $200,000
- Third Fiscal Year-: $500,000
N.B: This projection is 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
Top of the list on our marketing and sale strategy document is generating a buzz for our cigar lounge via word-of-mouth and leveraging on road show.
Despite the fact that our first outlet is located inside Los Angeles Airport, the model of cigar lounge we intend running is a neighborhood bar hence we are not going to rely only on the conventional ways of marketing. We don’t have the plans to run paid adverts on Local TV stations, local radio stations or even local newspaper but we will sure maximize every other available means to promote our business.
Our unique selling proposition is that we have a collections of almost all the brand cigars and tobaccos produced in The United States in our cigar lounge, we also have assorted alcoholic drinks et al. In view of that, we are going to adopt the following marketing strategies to ensure that we do not only attract customers but generate repeated sales from them;
Part of the marketing and sales strategies that we will adopt are;
- Open our cigar lounge in a grand style with a party for all.
- Introduce our cigar lounge by sending introductory letters alongside our brochure to organizations, households and key stakeholders in Los Angeles – California
- Ensure that we have a wide range of cigars, tobaccos, wines, beers, liquors, distilled spirits, martinis and non-alcoholic drinks at all times.
- Make use of attractive handbills to create awareness and also to give direction to our cigar lounge
- Position our signage / flexi banners at strategic places all around Los Angeles
- Position our greeters to welcome and direct potential customers
- Create a loyalty plan that will enable us reward our regular customers
- Engage on road shows within our neighborhood to create awareness for our cigar lounge.
11. Publicity and Advertising Strategy
Sleek Cigar Lounge®, LLC is a neighborhood bar and we will ensure that we create the buzz that will make people in our area know about us and what we do.
We are quite aware that one of the effective ways of promoting our cigar lounge is to create special internal promotions which in turn will help us achieve our aim of leveraging on word of mouth publicity. Here are the platforms we intend leveraging on to promote and advertise Sleek Cigar Lounge®, LLC;
- 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, Badoo, Google+ and other platforms (music online forums) to promote our business.
- Ensure that our we position our banners and billboards in strategic positions all around Los Angeles – CA
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Contact corporate organizations, airport workers, business people, households, landlord associations and political parties by calling them up and informing them of Sleek Cigar Lounge®, LLC and the products we sell
- Advertise our cigar lounge business in our official website and employ strategies that will help us pull traffic to the site
- Brand all our official cars and vans and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.
12. Our Pricing Strategy
The prices of our cigars, tobaccos, wines, beers, and other alcoholic drinks et al will be what is obtainable in the market. In fact we will try as much as we can to sell below the industry’s average so as to attract loads of customers. We also have plans in place to discount our products once in a while and also to reward our loyal customers.
- Payment Options
At Sleek Cigar Lounge®, LLC, our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our pub;
- Payment by cash
- Payment via Point of Sale (POS) Machine
- Payment via online bank transfer (online payment portal)
- Payment via Mobile money
In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any difficulty.
13. Startup Expenditure (Budget)
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.
As for the detailed cost analysis for starting a cigar lounge business; it might differ in other countries due to the value of their money. This is what it would cost us to start Sleek Cigar Lounge®, LLC in the United of America;
- The Total Fee for Registering the Business in Los Angeles, CA – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services totaling – $1,200.
- Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- Cost for hiring Consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- Cost of accounting software, CRM software and Payroll Software – $15,000
- Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of – $105,600.
- Cost for facility remodeling – $25,000.
- Other start-up expenses including stationery – $500
- Phone and utility deposits – ($2,500)
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
- The cost for Start-up inventory – $16,027
- Storage hardware (bins, utensil rack, shelves, glasses case) – $3,720
- The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
- Cost for serving area equipment ( glasses, flatware) – $3,000
- Cost for store equipment (cash register, security, ventilation, signage) – $13,750
- Office equipment and furniture – $3,600
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
- The cost of Launching a Website – $600
- The cost for our grand opening party – $5,000
- Miscellaneous – $2,500
We would need an estimate of $250,000 to successfully launch our cigar lounge in downtown Los Angeles, CA. This amount includes the salary of all employees and the CEO (Owner) for 3 months.
Generating Funding / Startup Capital for Sleek Cigar Lounge®, LLC
Sleek Cigar Lounge®, LLC is a private business that is owned by Mr. Sleek Davenport and his family and they intend to finance the business alone. Although they have plans to make the bar manager part owner of the business after 5 or 7 years of services, but that does not stop him from reserving well over 80 percent stake of the business for himself and his family.
Since they are the sole financier of the business, they have decided to adopt the following means to generate start – up capital for the business;
- Generate part of the start – up capital from his personal savings and sale of his stocks
- Source for soft loans from family members and friends
- Apply for loan from my Banks
N.B: Mr. Sleek Davenport and his family have been able to generate $100,000 the breakdown shows that they generated $75,000 from their personal savings and sale of their stocks and they generated $25,000 soft loans from their family members and friends. The balance of $150,000 will be generated as loan facility from the bank.
14. Sustainability and Expansion Strategy
The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of starting Sleek Cigar Lounge®, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to properly position our cigar lounge, ensure adequate security, availability of various brand of cigars, tobaccos, alcoholic drinks and excellent customer service et al.
Sleek Cigar Lounge®, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List / Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: 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
- Renting of 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
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the Needed furniture, electronic appliances, office appliances and bar accessories: In Progress
- Creating Official Website for the Company: Completed
- Creating Awareness for the business both online and in the neighborhood: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party / launching party planning: In Progress
- Establishing business relationship with vendors – suppliers of all our needed cigars, wine, alcoholic and non – alcoholic drinks, tobacco and small chops et al: In Progress