Assignment 19A – Idea Napkin No. 2

Idea Napkin No. 2 for a Coffee Shop in Lake Butler

1) About Me. I'm a 37-year-old wife and mother of 4 living in the small town of Lake Butler. It is kind of ironic that I want to open up a coffee shop, because I'm not a big coffee drinker, but I see the need for a coffee shop in my town. I am talented at cooking, especially baking. I am organized, a bit of a perfectionist, and have always been a high achiever. I love to travel and have been all over the US and to many other countries. I have been to many coffee shops here in the states and abroad, so I have a good idea of what I want in a coffee shop. I have a lot of work experience in business administration and will soon be finished with my bachelors degree in Business Administration from the University of Florida. I would ideally like to open the coffee shop and hire a manager to run it, as I am currently too busy to deal with the day-to-day operations of a business and also do not want to be tied down by a business. I think this would be a successful investment and it would add value to my community, and that is the main reason I would like to pursue this business opportunity.

2) What are you offering to customers? My company will offer customers a place they can get a good, quality cup of coffee and other hot drinks such as: mochas, lattes, cocoa, tea, etc. There are currently no other coffee shops in town, or within a 20 mile radius. It will offer a drive-up window for those who want to grab a quick cup of coffee in the morning or afternoon. It will also offer a small seating area inside for those who want to relax or socialize with friends or colleagues. I would also like to showcase local artists through displaying artwork, and perhaps even have local musicians perform at scheduled times. My coffee shop will also offer baked goods for patrons to enjoy with their beverages.

3) Who are you offering it to? My customers will consist mainly of people who reside or work in the Lake Butler area. This will include both males and females from 16-99 years old. We will include drinks from a low to high price range, depending on ingredients, so all income levels can afford to enjoy our products. My customers will consist working professionals, stay-at-home moms, high school students, retirees, and others.

4) Why do they care? You can look at the success of Starbucks, and other coffee shops across the country, to see the value of coffee shops. Many people love to get quality coffee and other hot beverages that coffee shops provide, but the people of Lake Butler currently have no place that serves this need. The only alternatives are making hot beverages at home or getting coffee at the local gas stations. My target customer will be someone who enjoys the high quality drinks they will have access to at a coffee shop. They will also be able to relax in a comfortable atmosphere while enjoying their drinks. There are also limited places to buy fresh baked goods in Lake Butler, so that will be another need that my coffee shop will address. It will also provide a comfortable place to gather with friends to socialize, which is also something that is lacking in Lake Butler. 

5) What are your core competencies? The main thing that sets my business apart is the fact that there are currently no other coffee shops in town. That alone makes it stand out. I would also like to customize my menu based on requests of my customers, so I know I will be providing what they want. I will also set high customer service practices and standards that will keep people coming back.

I believe these five elements flow together nicely and will be a good foundation for a successful business. I know that this opportunity exists and that it could be successful if I'm willing to put in the work.

The feedback that I received from the first idea napkin assignment didn't really offer any advice on improvements or changes I could make. They all found it hard to believe that no coffee shops exists in my town and agreed that this a good opportunity.

Assignment 20A – Growing Your Social Capital

It's Who You Know, Not What You Know

The following are the experts I selected for the coffee shop industry.

1. Expert on my Industry

I selected Starbucks as my industry expert. They are the most successful coffee chain in the world and would have valuable information to give on the industry. I'm still waiting for a response, but was hoping to find out a little more about what the most popular beverages are in my region. Knowing which products they sell the most and least of would help me to better select what to offer in my future coffee shop. I emailed them using the form found on their website (https://customerservice.starbucks.com/app/contact/ask_retail_stores/). Having Starbucks in my network would greatly expand my knowledge of the coffee industry. They would be a very valuable asset in helping me learn more about product preferences, retail locations, coffee suppliers, and more.

2. Expert on my Market

I chose Ellianos Coffee Company as my market expert. They have coffee shops in many smaller, southern cities (including two neighboring cities) so their market would be very similar to my market. They also have expertise on my industry. Ellianos was started by a husband and wife team of entrepreneurs in Lake City, Florida, and they currently have 14 coffee shops in the Southeast United States. Their coffee shops have double drive-up windows to offer quicker service (I thought that was a great idea). I contacted them through the contact form on their website, https://ellianos.com/contact/. I haven't heard back from them yet, but I asked about what types of criteria they look for when opening up a shop in a new location. I'm hoping to learn from their expertise on the area to see if a similar shop would be successful in my small town. With about 18 years of experience in the industry, I feel like they would be a very valuable source of information, but could also be potential competition since they are still opening new coffee shops in the area.

3. Supplier to my Industry

I decided to go with Grassroots Coffee as the supplier to my industry. I selected them for many reasons. One, they are located in Thomasville, Georgia, which is only about 2 hours away. Another reason is that they offer Fair Trade certified and organic certified coffee. They also offer many varieties of coffee and wholesale prices. They are experienced suppliers who currently sell to many Whole Foods Markets and Publix retail locations, as well as, to coffee shops, bakeries, and restaurants. They also roast and ship the same day so their coffee is always fresh. I contacted them through their website (https://www.grassrootscoffee.com/georgia-wholesale-coffee-roaster). I am still awaiting a reply, but hope to learn more about prices and other information pertaining to purchasing wholesale coffee.

This assignment helped me to better realize the importance of having experts in my industry as a part of my network. Their advice can be priceless when you are new to an industry. It also made me dig deeper to figure out what type of experts and information would help me the most. I think it's critical to network if you want to be successful in any business.

Assignment 18A – Create a Customer Avatar

"

"30-Something Mother of 3 Who Drives an SUV"

 

As you can see from the photos, the image I've developed of my prototypical customer is a mom with young kids. She typically wears yoga pants, sunglasses on the top of her head, she drives an SUV, and is completely exhausted most of the time. She has a college degree, but is currently staying home taking care of her little ones. She has 2 to 4 children. She needs coffee to give her the energy to get through her day. She puts on workout clothes in the morning because she plans to workout, but usually doesn't have time. She loves shows like Friends and Gilmore Girls. She strives to be a "supermom" doing everything she can to make sure her kids have a happy childhood. She is involved in all of her kids school and extracurricular activities. She has piles of laundry to do everyday and spends the majority of her time at home in the kitchen cooking nutritious meals for her family. Coffee is life for her and is the fuel that gets her through this exhausting phase of her life.

I have a lot in common with this avatar, which is probably why I selected this demographic. I'm an exhausted stay-at-home mom with 4 kids, and many of my friends are stay-at-home moms with multiple kids. Because I can identify with this demographic, I understand the things they like and the things they find essential, like coffee. Having conversations with my mom friends about their need for coffee and desire to have a local coffee shop is what lead me to my business idea of opening a coffee shop in our town.

Assignment 16A –What’s Your Secret Sauce?

Know Thyself

Describe five ways in which you think you have human capital that is truly unique.

• I have a high level of empathy that can help me relate to others.
• I am good with numbers and accounting.
• I am determined once I set a goal.
• I have years of experience in business and entrepreneurship.
• I am a mother of four so I am good at multitasking.

Interviews of the five people who know me best.

#1. My husband, Karl 
Karl's Interview
He says that empathy is one of my main strengths. He talks about how empathy can be useful in understanding others feelings and how that can be helpful in business.

#2. My mom
Mom's Interview
She talks about my integrity, my knowledge of numbers, and open-mindedness. She also says that I'm fair but firm, and likable.

#3 My dad (he is an entrepreneur himself and I help him with his business)
Dad's Interview (Please excuse the crunching sounds. My son was eating chips nearby 😜)
He says I'm goal oriented and determined to make my goals a reality. He also says I'm even-tempered, intelligent, and good with numbers.

#4 My sister, Megan
Megan's Interview
She says I'm a perfectionist and detail oriented. I'm empathetic and I'm good with people. She also says I'm good at running things, like my household and having my kids and family places on time. 

#5 My sister, Jenna
Jenna's Interview
She says I'm very organized and a high achiever. She also says I have high expectations and a no-nonsense attitude.

(Just for fun) My son, Ezra, age 4
Ezra's Interview
He agrees that I'm a good person, honest, smart, and he loves me. 💓

Conclusion.

I see myself very similar to how my family sees me. That probably has a lot to do with the fact that they let me know frequently what they think of me! My husband and I talk about my empathy a lot so that was not surprising that it was the first quality he thought about. It wasn't surprising that my parents both talked about me being good with numbers, because I currently help them with the accounting part of their business and my best subject in school was always math. I'm not surprised that my sisters focused in on my high achiever personality as I have always been that way. That goes along with the quality I mentioned in being determined once I set a goal. I wouldn't change anything on my list, but could add a few things based on what my family said about me. 

Assignment 15A – Figuring Out Buyer Behavior No. 2

Evaluating How Your Customers Evaluate Stuff

Alternative Evaluation (How they do their picking?)

• Interview #1 - The first person I interviewed said that they pick what coffee to buy based on the quality of the coffee and the name brand. They prefer Starbucks brand so they usually seek out that specific brand if shopping in the grocery store, or find a Starbucks location if they are in a place that has a physical location. This person seeks out the specific name brand (Starbucks) and high quality coffee.

• Interview #2 - The second person I interviewed said that they like to buy organic or "more natural" brands of coffee. They like to buy coffee from Trader Joe's or Whole Foods where they offer high quality, more natural choices. If they go out for coffee (which they rarely do because of inconvenience), they tend to look for local coffee shops. This person looks for high quality, natural/organic brands of coffee.

• Interview #3 - The third person I interviewed said that they prefer Dunkin' Donuts coffee if it is available. They sometimes buy this specific brand from the store, but sometimes they will try another brand of coffee if it's a good deal. This person has a preference for a specific brand but also decides based on price.

How/Where Do They Buy?

• Interview #1 - This person buys mostly from grocery stores, but also orders from Amazon. They sometimes go to Starbucks to get coffee. They use a debit card for most purchases.

• Interview #2 - This person buys mostly from natural grocery stores, sometimes local coffee shops. They pay with a debit card or cash. 

• Interview #3 - This person also mostly buys from grocery stores. They occasionally go out for coffee if there is a shop nearby, specifically Dunkin' Donuts. They also typically use a debit card.

Post-Purchase Evaluation

• Interview #1 - This person evaluates if their coffee purchase was a good one by the taste of the product. They mostly stick with Starbucks because they like the taste and sometimes regret trying a new brand. It is worth it to them to pay more for a better tasting and higher quality product.

• Interview #2 - This person also said they evaluate their coffee purchase by the taste of the product. They only regret the purchase if they don't like the taste. They like to try different brands and taste is the main factor in deciding if they will purchase that brand again. They also feel good about spending money on a healthier product even if it costs a bit more.

• Interview #3 - Additionally, this person evaluates their coffee based mostly on taste. They also like to get a good deal and feel good when they save money. They usually stick with the Dunkin' brand because they like the taste, and sometimes regret going with a cheaper brand if it doesn't taste as good.

Conclusion

Based on these interviews, it is clear that coffee is evaluated by the majority on taste. Only one of the three said they evaluated price. The other two are willing to pay more for a high quality cup of coffee. They all mostly purchase their coffee at a grocery store, with a debit card. One has a preference for a more natural/organic coffee, while the other two prefer to stick with well-known name brands.