l am seeking funding for a coffee house. Uniquely styled, colorful, 1700 sq ft single family home coffee house! Yes, I know it's not like your typical space and very different to the city of Jonesboro, Arkansas. I am native to Jonesboro and visit quite frequently to visit family.
I recognized the market for a coffee house in the low income area of Jonesboro after my college reunion. Yes, there are several locations to get some great coffee, but none with a connection to the community. After riding through the area, it was confirmation that it was necessary to bring this space to the community that I love.
After preparing the necessary documents, RhythmNCulture, LLC was established. My career was very much demanding which took away time to work on my passion- Creating spaces for the community. Fortunately my career mimicked my passion yet, I could not quite give it the attention needed. I had a decision to make. On February 15, 2023, I chose my passion!
Now comes the real thing, investing my 401k into RhythmNCulture ...YIKES!! Realistically, I will not have enough to budget. Prayerfully, there are enough resources to give it a try. I have secured the location as of February 24, 2023 utilizing the 401k funding!!!! Yay!! Purchasing the property has decreased the overhead cost. According to my research, rent costs are accredited for 50% of the operational costs allowing more funds for any necessary remodeling of location. According to my budget, the next major costs are inventory, refrigeration, and espresso machines. Thanks to some very supportive friends, marketing and promotional costs have been taken care of for the first 6 months.
Total startup cost has been budgeted to $27.258. The average price for an espresso-based coffee drink is $3.45 in 2018 and the average price for a cup of brewed coffee is $2.38. Based on the research and budgeting, my average operating income is expected to be at 2.5% of gross sales, potentially increasing with in-house roasting.
An added extra will be to partner with the local small pastry businesses to introduce food items to the customer base. The partnership will increase loyalty to the business and create a connection with the local community.