T-Cake we will be heading our store to

T-Cake House is a partnership business which is invested up to $500,000. Each co-founder take 20% stake in this business which mean each person put in $100,000. Our primary strategy is to develop T-Cake House to be the most comfortable and tasty coffee shop for thousands of residents who live in San Jose and the neighborhood. With a strong investment and a solid strategy, the T-Cake House expects to earn the modest profit within the first year of opening. To achieve this target, the T-Cake House is based on the projected sales that are: Initial growth will be moderate as we have the awareness in this market.Initial equipment will stay in the service for an average 5 to 8 years. After 5 years, we will begin to invest in new equipments to replace damaged equipments.Marketing costs will not exceed 10% of sales.Residual profit will be re-invested in expanding the trademark by open the 2nd and 3rd store. The T-Cake House will be located in the center of the Evergreen Valley where it is surrounding by Evergreen Valley College, Silver Creek High School, and high class residence is mostly live at. Moreover, this location provides extremely high visibility and direct entry from Silver Creek Valley Rd. We projected to have $350,000 revenues in the first year of opening including 70% is used for operating the store such as: purchase equipments, ancillary items, pay wages for employees, monthly rent, an insurance, marketing fees, etc…We accept the small amount of profitability in the first year of opening is because we know our brand is completely new in this industry. That is why we spend our first year to build up the trademark by doing marketing, promotions to get customers’ attractions. With this goal, we plan to have 15% growth rate in year 2 and 30% growth rate in the next 2 years. We expected to have a net income projected to reach $200,000 in year 4 as sales increase and operation becomes more efficient.After 3 years of doing business, we plan to locate our 2nd store at mall. Products and qualities are still the same, but, the business model is totally different than the 1st store. This time, we will be heading our store to be a fast service store with everything will be served “to-go.” This model requires some products just used one time such as cups, spoons, forks, containers, and carrying bags. The special thing is, all the products that are listed will be responded to a go-green campaign which using all the materials that are environmentally friendly.