Hookah Bar Business Plan free essay sample

Cowboy HookahTM Business Proposal Executive Summary Cowboy Hookah is a hookah bar concept that will be located in Laramie, WY to serve as an alternative place for customers to relax and enjoy a cultural experience. The focus will be to bring in students from the University of Wyoming and community members as well as young professionals in the area. The bar will be located in downtown Laramie and be managed by a team of four owners. The business will generate revenues through the sale of flavored tobacco, non-alcoholic beverages and snacks. Cowboy Hookah will enter the market with a competitive advantage given that here are no hookah bars in Laramie. Cowboy Hookah projects to be earning profits by its first year of operation. Below are the projected gross income, total expenses and net income. The business projects growth of 50% the first year and 25% the next two years with more sustainable growth after that period. We will write a custom essay sample on Hookah Bar Business Plan or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Since the company is in the introductory stage it is expected to see a lot growth after opening. 1 . Objectives Cowboy Hookahs objectives for the first year of operations are: Effectively corner a niche market for a previously non-existent business. Ђ Turn in profits from the first month of operations. Maintain a 65% gross margin. . Keys to Success The keys to success will be: Store design that is deemed legally acceptable and will be both visually attractive to customers, and designed for efficient operations. Employee training to insure the best education and knowledge of products and preparation techniques. Marketing strategies aimed to build a solid base of loyal customers, as well as maximizing the sales of high margin products, such as our line of hookah products. 3. Mission Cowboy Hookah will give its best effort to create a unique place where customers can socialize with each other in a comfortable and relaxing environment while enjoying he best brands of smoking tobacco and products in town. We will be in the business of helping our customers to relieve their daily stresses by providing piece of mind through great ambience, convenient location, friendly customer service, and products of consistently high quality. Cowboy Hookah will invest its profits to increase the employee satisfaction while providing stable return to its shareholders. Company Summary Cowboy Hookah is a new company that provides knowledge and expertise in hookah smoking along with a lounge for people to relax in a cultural environment with their friends while enjoying smoking flavored tobacco. The concept for our hookah lounge centers around the community of Laramie and being available to the people for them within the next six months and hopes to create a modern, cozy, hookah bar with knowledgeable employees and guaranteed high quality service and products while at a reasonable price. The business will earn revenues through the sale of tobacco (multiple flavors), drinks (coffee, tea, and Juices), food (Pastries, hummus and chips, etc) and hookah products. The customers are expected to be those interested in hookah and hookah culture, and young (18-25 years old) students interested in a ommunity-oriented experience that is an alternative to bars serving alcohol and coffee shops. 4. Company Ownership Cowboy Hookah will be registered as a Limited Liability Corporation in the state of Wyoming. 5. Start-up Summary We will need initial start-up funding of approximately $265,000 to get our hookah bar up and running. The funding will be mainly through financing but we will need at least 20-30% through equity in order to have enough money in the deal to make this a favorable loan. We will maintain a cash reserve at startup in order to cover approximately two months of expenses. The expenses covered by this reserve will not include cost of goods sold as we will also have enough dedicated cash equivalents to purchase two months of inventory. Legal expenses for obtaining licenses and permits totaling $1 ,300. ЂMarketing promotion expenses for the grand opening of Cowboy Hookah 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. Insurance (general liability, workers compensation and property casualty) coverage at a total premium of $2,400. Premises remodeling in the amount of $20,000, which, we consider to be unk costs because it will not significantly increase the value of the property. Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).