Value Proposition (Finding issue based on value proposition, Describe the issues and how company works with the issues, Recommendation of the issues) based on the below's case. (1000words) (Points can be: Customer segment ,Channel, Key partners, Customer relationships, key resources, or any thing those you found for the issue)

Mobile Espresso Catering Business Espresso On Call 920 Cloverdale Ave, Victoria, British Columbia Espresso On Call (EOC) is an espresso specialty beverage bar caterer. We enhance meetings and special events with our full-service beverage bars delivered to the event site, fully equipped and staffed by our trained baristas. All of our espresso beverages are prepared with the highest quality espresso beans processed locally. We blend our rich espresso with assorted Ghirardelli chocolates and Torani flavored syrups to ensure customer satisfaction. EXECUTIVE SUMMARY According to the May National Coffee Drinking Trends (NCDT) report from the National Coffee Association (NCA), daily consumption of espresso-based beverages has nearly tripled in the past 8 years. Since then, past-day consumption of gourmet coffee beverages rose from 13 percent to 36 percent among 18-24-year-olds and from 19 percent to 41 percent for those between ages 25 to 39. When the survey addressed espresso-based beverages alone it found the increase in consumption rose from 9 percent to 22 percent for 18-24 age group and from 8 percent to 29 percent for the 25- 39 age group The consumption of drip coffee brewed at home has declined to half of all coffee drinkers. In contrast the numbers show an increase in consumption at the work place and other shared environments. This change from a no-frills private experience to an outer expression of individuality is being driven by millennials. It is the older millennials (age 25-39) who are most likely to drink espresso-based beverages, cappuccino, mocha, cold brew and nitrogen infused in the past week according to NCDT data. The next generation of consumers has a more personal relationship to the products and brands they support. The things they use reflect their larger worldview," the NCA wrote. Espresso On Call (EOC) is an espresso specialty beverage bar caterer. We enhance meetings and special events with our full-service beverage bars delivered to the event site, fully equipped and staffed by our trained baristas. All of our espresso beverages are prepared with the highest quality espresso beans processed locally. We blend our rich espresso with assorted Ghirardelli chocolates and Torani flavored syrups to ensure customer satisfaction. TARGET MARKET SEGMENTS Espresso On Call will focus on the following markets: Corporate clients who would be interested in serving espresso beverages at meetings, grand openings, trade shows, office parties and other special events. Millennials who would be willing to include espresso service at their parties, wedding receptions, and other special events. OBJECTIVES EOC has developed a list of three objectives to be achieved in the next three years. Achieve an excellent rating with Wedding Wire, the largest online marketplace connecting vendors with engaged couples and party planners. Realize gross revenues of at least $1M and a net profit of at least ten percent of gross revenues. Earn a reputation as good stewards of the earth with a commitment to reducing our waste and increasing our recycling efforts. MISSION Our mission is to provide our corporate and special event customers with the highest quality beverage services. We will always ensure friendly and professional staff that goes the extra mile to ensure that our customers have the ultimate coffee experience. KEYS TO SUCCESS We have determined that there are three key traits that will help EOC to attain its objectives. Our staff of amazingly trained baristas. Our ability to bring a quality service directly to our customers with trained staff who are prompt, clean, polite and who share our belief in the core values of our company. Our commitment to "green practices" of using reusable, compostable and biodegradable products. STARTUP COSTS Equipment costs needed for startup Computer Printer/copier/scanner/fax Software: MS Office, QuickBooks Furniture Complete espreso cart Basic espresso cart Espresso grinder Vita- Mix Touch & Go 2 blending station Rinse-O-Matic blender cleaner Smallwares 240 Bunn brewer Vita-Mix Drink Machine Advance Buffet tables Electra espresso machine Dolly, storage racks, bins Total $ 850 $ 200 $ 400 $ 1,500 $ 13,000 $ 7,500 $ 800 $ 925 $ $ $ $ 640 $ 450 $ 7,100 $ 1,200 $ 35,700 230 205 700 Other startup expenses include: Other expenses Office supplies Supplies inventory Espresso beans, additives Cups, paper goods Brochures, cards, stationary Graphic design Website development Legal/accounting Marketing materials/ads Insurance Lease deposit on van Customization/wrap of van Total startup expenses $ 375 $ 500 $ 700 $ 450 $ 225 $ 2,000 $ 8,000 $ 2.500 $ 2,000 $ 1,800 $ 1,500 $ 3,400 $ 23,450 In year three EOC will purchase an additional van and equipment for espresso service. Projected cost of the van is $45,000. We will make a down payment of $15,000 and carry a five-year loan for the remaining $30,000 at an interest rate of about 3.8 percent. COMPANY LOCATION either member for the use of their personal facilities. Keith's wife, Jane, is employed by EOC as the secretary/bookkeeper. Jane answers the phone, maintains the business and accounting records and works with the independent accountant to ensure compliance with the reporting and payment of all taxes and tax forms required PRODUCTS AND SERVICES Espresso is not a specific type of bean or type of roast. Rather it is based on the quality and consistency of the grind. Typically, a fine grind is preferred in order to maximize pressure used in the brewing process and to increase the maximum flavor of the beans. The smaller the grind, the greater the surface area for coffee to make contact with heated water thus producing a richer flavor. The main difference between espresso and coffee is the use of pressure. When making espresso, hot water is forced through a fine grind under pressure resulting in a thicker consistency, extraction of more gases and oils and concentrated flavor profiles. Espresso contains more caffeine per volume than most coffee beverages but is typically consumed in smaller quantities. By way of comparison, an eight-ounce cup of drip coffee has between 65 and 120mg of caffeine while a single ounce of espresso contains 30 to 50mg. Espresso beverages are thicker than coffee and have a foamy layer of crema on top containing a higher concentration of flavors. To make high quality espresso requires fresh beans, a quality roast and the right brewing equipment. EOC offers a rich, aromatic selection of delicious coffee-based beverages, regular or decaffeinated, including Italian-quality, dark roasted espressos, cappuccinos, lattes and mochaccinos. For the tealovers, we serve luscious chai latts, assorted herb teas, green and black tea. Each serving station consists of a 3- to 4-foot espresso machine cart and a 3-to 6-foot buffet table. We can provide multiple stations depending upon the number of attendees. We require a 6' x 6'area for set-up, and a dedicated 110 V (15 amp plug) within 25 feet of our cart. Doorways must be at least 32" wide to fit our configuration and elevators must be available for our use if we need to be located anywhere other than a ground floor. Wecan locate our cart either indoors or outdoors as long as power is within reach. Jane Jardin, Secretary Treasurer: Jane will perform the duties of secretary/bookkeeper for the firm. She will handle financial and administrative tasks and report to the President and Vice President. She will be assisted by William Steele, an independent accountant. Jane has an impressive resume that includes seven years in the finance office for the city of Victoria and ten years as an accountant assistant and payroll technician at Hewlett Packard. William Steele, CPA: Accountant providing services related accounting, taxes and management advisory services. William was instrumental in helping set up the company and in establishing the accounting system for the company. James Cutler, Attorney at Law: James assisted EOC in establishing the company and its tax status as a corporation. He continues to advise EOC in creating contracts with clients and handling employee issues. Alex & Associates: Consulting service specializing in developing espresso businesses. Vaneli's Handcrafted Coffee: Roseville coffee roaster that supplies fresh-ground espresso in several flavors thus ensuring a fresh and unique beverage every time. Vanell's will also provide ongoing training for EOC baristas as well as help in choosing and using espresso equipment. Kerry Kelly (Web Life Marketing): Social media marketing specialist will help EOC maintain its social media presence on Twitter, Facebook, Google Plus and Instagram. By monitoring our accounts and ensuring consistency in posting EOC will increase awareness, web site traffic and lead generation. MILESTONES Milestones Begin business plan Finalize logo design Begin work on website Purchase equipment LLC formed, corporation status filed with CRA, BN obtained Negotiate van lease Complete customization of van Complete business plan Begin operations Profitability Start Jun 1, Year 0 Jul 1, Year Jul 1, Year o Aug 1, Year 0 Aug 15, Year Nov 1, Year o Nov 15, Year 0 Dec 1, Year o Jan 15, Year 1 Dec 31, Year 2 PERSONNEL PLAN Year 1 $ 25,500 $ 18,000 $ 18,000 Year 2 $ 30,500 $ 30,000 $ 30,000 $ 18,000 $ 18,000 Barista 1 Barista 2 Barista 3 Barista 4 Barista 5 Barista 6 Administrative assistant J. Jardin: Secretary/bookkeeper A. Phillips K. Jardin Total people Total payroll Year 3 $ 40,000 $ 40,000 $ 40,000 $ 24,000 $ 24,000 $ 24,000 $ 24,000 $ 50,000 $ 75,500 $ 75,500 10 $ 417,000 $ 12,000 $ 24,000 $ 43.000 $ 43,000 7 $183,500 $ 18,000 $ 36,000 $ 71,000 $ 71,000 9 $ 322,500 FINANCIAL PLAN EOC is expected to grow dramatically over the next three years reaching profitability by the end of year two. We expect our gross profit margin to be a consistent 50 percent of revenue and our net profit to sales ratio to reach ten percent by the end of year three. The largest expense at 60 percent relates to labor both direct and indirect, and employee benefits. As EOC is formed as a corporation for tax purposes, the costs of labor include the salary of the company owners. The next largest expense is direct materials at 20 percent which covers the cost of coffee, pastries, flavorings, cups, napkins, etc. In our third year EOC will purchase its own van and equip it for mobile espresso service. We will also increase our staff of baristas thus enabling the expansion of service both geographically and in number of engagements. We expect our gross revenues and net profits to increase despite the added cost of loan service and personnel. Pro Forma Profit and Loss Year 2 825,000 Sales Year 1 395,000 $ $ Year 3 $ 1,100,000 Cost of goods sold: Material, supplies Service payroll Total direct costs $ $ $ 79,000 118,500 197,500 $ $ $ 165,000 247,500 412,500 $ $ $ 220,000 330,000 550,000 $ $ $ Gross profit Gross profit % 197,500 50% 412,500 50% 550,000 50% 3,570 Expenses Depreciation Administrative payroll Payroll taxes Employee benefits Sales & marketing Utilities/phone Insurance Fees/licenses Office expense Repairs/maintenance Legal/accounting Professional dues/subscription Website/web marketing Automobile/travel Lease: van Consultants Other Total operating expenses Earnings before interest and taxes $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ -$ 3,570 65,000 18,350 91,750 9,500 1,500 3,200 875 1,400 1,800 1.800 785 4,800 5,000 4,800 6,500 1,200 221,830 24,330 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 75,000 32,250 161,250 11,000 1,600 3,200 975 1,500 1,800 2,400 785 4,800 5,500 4,800 4,000 2,500 316,930 95,570 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 9,270 87,000 41,700 208,500 15,000 1,600 4,200 975 1,650 1,800 2,400 785 5,900 6,600 4,800 4,500 2,500 399,180 150,820 647 Interest expense Net earnings Income tax Net profit Net profit/sales $ $ $ -$ 24,330 $ $ $ $ 95,570 20,744 74,826 9% $ $ $ $ 150,173 41,817 108,356 10% 24,330 -6% Year 1 Year 2 Year 3 Projected Balance Sheet Current assets Cash in bank Account receivable Inventory Other current assets Total current assets Fixed assets Equipment $ 51,540 $ 2,000 $ 1,200 $ $ 54,740 $131,136 $ 1,800 $ 1,200 $ $134,136 $218,054 $ 2,200 $ 1,500 $ $221,754 $ 35,700 Van Less: depreciation Total long-term assets Total assets $ 3,570 $ 32,130 86,870 $ 35,700 $ . $ 7,140 $ 28,560 162,696 $ 47,700 $ 45,000 $ 16,410 $ 76,290 298,044 Liabilities & capital Current liabilities Accounts payable Current maturities loan Total current liabilities Long-term liabilities loan Van loan Total liabilities $ $ 1,200 $ $ 1,200 $ $ $ 1,200 $ 2,200 $ $ 2,200 $ $ $ 2,200 $ 2,400 $ $ 2,400 $ $ 26,792 $ 29,192 Paid-in capital $110,000 $110,000 $110,000 Net Income Retained earnings Total capital $ 24,330 $ -$ 24,330 $ 74,826 $ 24,330 $ 50,496 $108,356 $ 50,496 $ 158,852 Total liabilities & capital $ 86,870 $162,696 $298,044 Mobile Espresso Catering Business Espresso On Call 920 Cloverdale Ave, Victoria, British Columbia Espresso On Call (EOC) is an espresso specialty beverage bar caterer. We enhance meetings and special events with our full-service beverage bars delivered to the event site, fully equipped and staffed by our trained baristas. All of our espresso beverages are prepared with the highest quality espresso beans processed locally. We blend our rich espresso with assorted Ghirardelli chocolates and Torani flavored syrups to ensure customer satisfaction. EXECUTIVE SUMMARY According to the May National Coffee Drinking Trends (NCDT) report from the National Coffee Association (NCA), daily consumption of espresso-based beverages has nearly tripled in the past 8 years. Since then, past-day consumption of gourmet coffee beverages rose from 13 percent to 36 percent among 18-24-year-olds and from 19 percent to 41 percent for those between ages 25 to 39. When the survey addressed espresso-based beverages alone it found the increase in consumption rose from 9 percent to 22 percent for 18-24 age group and from 8 percent to 29 percent for the 25- 39 age group The consumption of drip coffee brewed at home has declined to half of all coffee drinkers. In contrast the numbers show an increase in consumption at the work place and other shared environments. This change from a no-frills private experience to an outer expression of individuality is being driven by millennials. It is the older millennials (age 25-39) who are most likely to drink espresso-based beverages, cappuccino, mocha, cold brew and nitrogen infused in the past week according to NCDT data. The next generation of consumers has a more personal relationship to the products and brands they support. The things they use reflect their larger worldview," the NCA wrote. Espresso On Call (EOC) is an espresso specialty beverage bar caterer. We enhance meetings and special events with our full-service beverage bars delivered to the event site, fully equipped and staffed by our trained baristas. All of our espresso beverages are prepared with the highest quality espresso beans processed locally. We blend our rich espresso with assorted Ghirardelli chocolates and Torani flavored syrups to ensure customer satisfaction. TARGET MARKET SEGMENTS Espresso On Call will focus on the following markets: Corporate clients who would be interested in serving espresso beverages at meetings, grand openings, trade shows, office parties and other special events. Millennials who would be willing to include espresso service at their parties, wedding receptions, and other special events. OBJECTIVES EOC has developed a list of three objectives to be achieved in the next three years. Achieve an excellent rating with Wedding Wire, the largest online marketplace connecting vendors with engaged couples and party planners. Realize gross revenues of at least $1M and a net profit of at least ten percent of gross revenues. Earn a reputation as good stewards of the earth with a commitment to reducing our waste and increasing our recycling efforts. MISSION Our mission is to provide our corporate and special event customers with the highest quality beverage services. We will always ensure friendly and professional staff that goes the extra mile to ensure that our customers have the ultimate coffee experience. KEYS TO SUCCESS We have determined that there are three key traits that will help EOC to attain its objectives. Our staff of amazingly trained baristas. Our ability to bring a quality service directly to our customers with trained staff who are prompt, clean, polite and who share our belief in the core values of our company. Our commitment to "green practices" of using reusable, compostable and biodegradable products. STARTUP COSTS Equipment costs needed for startup Computer Printer/copier/scanner/fax Software: MS Office, QuickBooks Furniture Complete espreso cart Basic espresso cart Espresso grinder Vita- Mix Touch & Go 2 blending station Rinse-O-Matic blender cleaner Smallwares 240 Bunn brewer Vita-Mix Drink Machine Advance Buffet tables Electra espresso machine Dolly, storage racks, bins Total $ 850 $ 200 $ 400 $ 1,500 $ 13,000 $ 7,500 $ 800 $ 925 $ $ $ $ 640 $ 450 $ 7,100 $ 1,200 $ 35,700 230 205 700 Other startup expenses include: Other expenses Office supplies Supplies inventory Espresso beans, additives Cups, paper goods Brochures, cards, stationary Graphic design Website development Legal/accounting Marketing materials/ads Insurance Lease deposit on van Customization/wrap of van Total startup expenses $ 375 $ 500 $ 700 $ 450 $ 225 $ 2,000 $ 8,000 $ 2.500 $ 2,000 $ 1,800 $ 1,500 $ 3,400 $ 23,450 In year three EOC will purchase an additional van and equipment for espresso service. Projected cost of the van is $45,000. We will make a down payment of $15,000 and carry a five-year loan for the remaining $30,000 at an interest rate of about 3.8 percent. COMPANY LOCATION either member for the use of their personal facilities. Keith's wife, Jane, is employed by EOC as the secretary/bookkeeper. Jane answers the phone, maintains the business and accounting records and works with the independent accountant to ensure compliance with the reporting and payment of all taxes and tax forms required PRODUCTS AND SERVICES Espresso is not a specific type of bean or type of roast. Rather it is based on the quality and consistency of the grind. Typically, a fine grind is preferred in order to maximize pressure used in the brewing process and to increase the maximum flavor of the beans. The smaller the grind, the greater the surface area for coffee to make contact with heated water thus producing a richer flavor. The main difference between espresso and coffee is the use of pressure. When making espresso, hot water is forced through a fine grind under pressure resulting in a thicker consistency, extraction of more gases and oils and concentrated flavor profiles. Espresso contains more caffeine per volume than most coffee beverages but is typically consumed in smaller quantities. By way of comparison, an eight-ounce cup of drip coffee has between 65 and 120mg of caffeine while a single ounce of espresso contains 30 to 50mg. Espresso beverages are thicker than coffee and have a foamy layer of crema on top containing a higher concentration of flavors. To make high quality espresso requires fresh beans, a quality roast and the right brewing equipment. EOC offers a rich, aromatic selection of delicious coffee-based beverages, regular or decaffeinated, including Italian-quality, dark roasted espressos, cappuccinos, lattes and mochaccinos. For the tealovers, we serve luscious chai latts, assorted herb teas, green and black tea. Each serving station consists of a 3- to 4-foot espresso machine cart and a 3-to 6-foot buffet table. We can provide multiple stations depending upon the number of attendees. We require a 6' x 6'area for set-up, and a dedicated 110 V (15 amp plug) within 25 feet of our cart. Doorways must be at least 32" wide to fit our configuration and elevators must be available for our use if we need to be located anywhere other than a ground floor. Wecan locate our cart either indoors or outdoors as long as power is within reach. Jane Jardin, Secretary Treasurer: Jane will perform the duties of secretary/bookkeeper for the firm. She will handle financial and administrative tasks and report to the President and Vice President. She will be assisted by William Steele, an independent accountant. Jane has an impressive resume that includes seven years in the finance office for the city of Victoria and ten years as an accountant assistant and payroll technician at Hewlett Packard. William Steele, CPA: Accountant providing services related accounting, taxes and management advisory services. William was instrumental in helping set up the company and in establishing the accounting system for the company. James Cutler, Attorney at Law: James assisted EOC in establishing the company and its tax status as a corporation. He continues to advise EOC in creating contracts with clients and handling employee issues. Alex & Associates: Consulting service specializing in developing espresso businesses. Vaneli's Handcrafted Coffee: Roseville coffee roaster that supplies fresh-ground espresso in several flavors thus ensuring a fresh and unique beverage every time. Vanell's will also provide ongoing training for EOC baristas as well as help in choosing and using espresso equipment. Kerry Kelly (Web Life Marketing): Social media marketing specialist will help EOC maintain its social media presence on Twitter, Facebook, Google Plus and Instagram. By monitoring our accounts and ensuring consistency in posting EOC will increase awareness, web site traffic and lead generation. MILESTONES Milestones Begin business plan Finalize logo design Begin work on website Purchase equipment LLC formed, corporation status filed with CRA, BN obtained Negotiate van lease Complete customization of van Complete business plan Begin operations Profitability Start Jun 1, Year 0 Jul 1, Year Jul 1, Year o Aug 1, Year 0 Aug 15, Year Nov 1, Year o Nov 15, Year 0 Dec 1, Year o Jan 15, Year 1 Dec 31, Year 2 PERSONNEL PLAN Year 1 $ 25,500 $ 18,000 $ 18,000 Year 2 $ 30,500 $ 30,000 $ 30,000 $ 18,000 $ 18,000 Barista 1 Barista 2 Barista 3 Barista 4 Barista 5 Barista 6 Administrative assistant J. Jardin: Secretary/bookkeeper A. Phillips K. Jardin Total people Total payroll Year 3 $ 40,000 $ 40,000 $ 40,000 $ 24,000 $ 24,000 $ 24,000 $ 24,000 $ 50,000 $ 75,500 $ 75,500 10 $ 417,000 $ 12,000 $ 24,000 $ 43.000 $ 43,000 7 $183,500 $ 18,000 $ 36,000 $ 71,000 $ 71,000 9 $ 322,500 FINANCIAL PLAN EOC is expected to grow dramatically over the next three years reaching profitability by the end of year two. We expect our gross profit margin to be a consistent 50 percent of revenue and our net profit to sales ratio to reach ten percent by the end of year three. The largest expense at 60 percent relates to labor both direct and indirect, and employee benefits. As EOC is formed as a corporation for tax purposes, the costs of labor include the salary of the company owners. The next largest expense is direct materials at 20 percent which covers the cost of coffee, pastries, flavorings, cups, napkins, etc. In our third year EOC will purchase its own van and equip it for mobile espresso service. We will also increase our staff of baristas thus enabling the expansion of service both geographically and in number of engagements. We expect our gross revenues and net profits to increase despite the added cost of loan service and personnel. Pro Forma Profit and Loss Year 2 825,000 Sales Year 1 395,000 $ $ Year 3 $ 1,100,000 Cost of goods sold: Material, supplies Service payroll Total direct costs $ $ $ 79,000 118,500 197,500 $ $ $ 165,000 247,500 412,500 $ $ $ 220,000 330,000 550,000 $ $ $ Gross profit Gross profit % 197,500 50% 412,500 50% 550,000 50% 3,570 Expenses Depreciation Administrative payroll Payroll taxes Employee benefits Sales & marketing Utilities/phone Insurance Fees/licenses Office expense Repairs/maintenance Legal/accounting Professional dues/subscription Website/web marketing Automobile/travel Lease: van Consultants Other Total operating expenses Earnings before interest and taxes $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ -$ 3,570 65,000 18,350 91,750 9,500 1,500 3,200 875 1,400 1,800 1.800 785 4,800 5,000 4,800 6,500 1,200 221,830 24,330 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 75,000 32,250 161,250 11,000 1,600 3,200 975 1,500 1,800 2,400 785 4,800 5,500 4,800 4,000 2,500 316,930 95,570 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 9,270 87,000 41,700 208,500 15,000 1,600 4,200 975 1,650 1,800 2,400 785 5,900 6,600 4,800 4,500 2,500 399,180 150,820 647 Interest expense Net earnings Income tax Net profit Net profit/sales $ $ $ -$ 24,330 $ $ $ $ 95,570 20,744 74,826 9% $ $ $ $ 150,173 41,817 108,356 10% 24,330 -6% Year 1 Year 2 Year 3 Projected Balance Sheet Current assets Cash in bank Account receivable Inventory Other current assets Total current assets Fixed assets Equipment $ 51,540 $ 2,000 $ 1,200 $ $ 54,740 $131,136 $ 1,800 $ 1,200 $ $134,136 $218,054 $ 2,200 $ 1,500 $ $221,754 $ 35,700 Van Less: depreciation Total long-term assets Total assets $ 3,570 $ 32,130 86,870 $ 35,700 $ . $ 7,140 $ 28,560 162,696 $ 47,700 $ 45,000 $ 16,410 $ 76,290 298,044 Liabilities & capital Current liabilities Accounts payable Current maturities loan Total current liabilities Long-term liabilities loan Van loan Total liabilities $ $ 1,200 $ $ 1,200 $ $ $ 1,200 $ 2,200 $ $ 2,200 $ $ $ 2,200 $ 2,400 $ $ 2,400 $ $ 26,792 $ 29,192 Paid-in capital $110,000 $110,000 $110,000 Net Income Retained earnings Total capital $ 24,330 $ -$ 24,330 $ 74,826 $ 24,330 $ 50,496 $108,356 $ 50,496 $ 158,852 Total liabilities & capital $ 86,870 $162,696 $298,044