Paperbacks Caf

Bookstore & Caf

Zachary Zanger

11211 S Dransfeldt Road Parker Valley Center Parker,

CO 80138
PAPERBACKS CAF MAY 2014

p. [Telephone]

paperbackcafeparker@gmail.com
[Web address]
1

Table of Contents
I.

Executive Summary ............................................................................................... 3

Highlights
Objectives
Mission Statement
Keys to Success

II.

Description of Business......................................................................................... 5
Company Ownership/Legal Entity
Location
Interior
Hours of Operation
Products
Suppliers
Service
Crew Members

III.

Marketing .............................................................................................................. 9
Market Analysis
Market Segmentation
Competition
Pricing

IV.

Financial Plan ....................................................................................................... 13

Start-Up Budget
Balance Sheet
Income Statement
Operating Expenses
Supply / Cost List

V.

Appendix............................................................................................................... 17
Competitive Analysis
Questionnaire

PAPERBACKS CAF MAY 2014

Executive Summary
Highlights

The Owner
o The owner, Zachary Zanger is qualified to run this store, because he has a passion for books and he
wants more students to realizes that reading can be more than just books for school, but it can unlock
a whole new world for a student with an imagination.
o Paperbacks Caf will be selling mainly new books, with the exception of some used books. Not only
that but Paperbacks Caf will also have a caf with bestselling coffee, with a free to enjoy stage where
talented local artists can hold performances.
Structure
o Paperbacks Caf is a LLC which will be renting space from a local strip mall, turning this bookstore
and caf into reality.
Target Market
o Paperbacks Cafs target market is currently students who are still in school, but more specifically it is
high school students who love reading, coffee, and or entertainment.
o This is a business to consumer business, where the goal is to get quality products into the hands of the
consumer, giving them the best possible experience.
Opportunity
o Competition
There are no new book stores in the parker area, the book stores that are currently in this
area are mostly all used books.
o Diversification
Paperbacks Caf will have better organization of the books to make everything easy to find.
Also, Paperbacks Caf will bring a whole new element of entertainment to parker by having
live performances on the stage, while having top rated coffee at the caf.
Financial Future
o Looking at the graph below, Paperbacks Caf is planning on having exponential growth within only
four years of operation.

Financial Overview
$450,000
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0

Sales
Net Profit
Expenses

2015

o
o

2016

2017

Though, to get Paperbacks Caf started it would require a $255,204 loan to begin the process. Also
the owner will put in $40,000 of his own money to help fund the business.
Start Up Cost: $121,371 for the first four months of operation.

PAPERBACKS CAF MAY 2014

Average Monthly Expenses: $24,000

Objectives

Financial Goal
o Paperbacks Caf will plan to pay back the startup loan within 5-6 years of operation with interest.
o Though quality customer services, we wish to increase our annual revenue above the projected
amount.
Business Goal
o Paperbacks Caf will provided an excellent customer experience through operational excellence,
treating ever customer with respect, knowing that we have to be better than the competition to earn
their continued support of the business.
o Also, expansion to other stores around Colorado is a long term goal within the next 10-15 years of
operation.
Mission Statement
o To glorify God by being faithful stewards of all that is entrusted to us: by sharing books, coffee,
entertainment, and an all-around good time.

PAPERBACKS CAF MAY 2014

Description of Business
Paperbacks Caf is a bookstore and caf that not only provides books at good prices, coffee that is better than the rest,
or even entertainment that cant be found anywhere in Parker; but it also builds up a community to be smarter and
better for future generations. To do so Paperbacks Caf will provide operational excellence through the cores rules,
leaving every customer satisfied.

Company Ownership/Legal Entity

Ownership
o Paperbacks Caf is a LLC (Limited Liability Company) hoping to expand to more than just one
owner as well as opening various stores in the future to neighboring towns and cities.
Licenses / Permits
o Bookstore
Parker Business License / Sales and Use Tax / Occupational Privilege
Colorado Sales Tax / Wage Withholding Account
Colorado Statement of a Trade Name
o Caf
Tri-County Food Establishment License
Type
o Paperbacks Caf is an independent business with hopes of opening at least one more store within a
ten fifteen year timespan.

Location
11211 S Dransfeldt Road - Parker Valley Center Parker, CO 80138

Why This Location?

o It is very accessible, and houses a very large area for parking, with easy in and out access for
customers.
o This location is large enough to house a decent amount of inventory while keeping enough room for
the actual bookstore and caf.
o Located: it is in the midst of two super stores and eateries. This makes it ideal if a student wants to
study and then grab something to eat. The surrounding stores will also draw more of Paperback
Cafs target market than any other location would.
o Being right on the corner this location allows Paperbacks Caf to have a perfect vantage point for
visible signage from any angle.

Interior
This specific design and layout will greatly set Paperbacks Caf far ahead of the competition offering new and
innovative ways to get your work done while enjoying great local entertainment.

Books
o

Being a bookstore it is the number one priority that the books that we carry are not only neat and
organized but also easy to find.

PAPERBACKS CAF MAY 2014

Caf
o
o

Taking this into account the best way to do this is to make a user friendly way for the
costumers to find the book(s) that they are looking for. There are two new and innovative
ways of doing so:
1. All of our books will be laid out in many different sub categories. For example, if a
customer is looking for a book on nutrition that book would be found under the
categories; health and fitness, then under nutrition. Every book will then be sorted
by the authors last name.
2. Even with the first system that is formerly listed it can still be challenging to find
the book(s) that the customer is looking for. Therefore, to make it easier there will
be both a physical and virtual layout of the store that has each category color coded
and labeled.
All the books will be placed on shelves where every book is facing outward making it easy to read what
its title is and whom the author is.

Work
o

The Caf is going to be one of the first things that the customer will take note of as they walk through
the doors. Thus, the presentation must always be clean and prepared for business.
Paperbacks Caf will also have a stage for locals to preform; music, poetry, rhythm, etc. This will
make the Caf much more than just a caf but it will become a place for fun gatherings and
entertainment. By having this attraction, it will greatly set apart Paperbacks Caf from all the other
competition.
This is not just a simple bookstore, caf, or even place to preform; but it is also a place where
individuals or groups can work on school work, or anything that requires a pen, paper, and WiFi.
In the future Paperbacks Caf hopes to have up to 8 functioning workstations. One
workstation consists of a computer, pens and other office supplies, and a personal light with
multiple brightness settings. Though, being new, this current location will only have one
workstation to start with, but Paperbacks Caf will have many tables to encourage group or
individual work while providing office supplies and free connectivity to WiFi.

Hours of Operation

Weekdays
o Monday-Friday
6 a.m. 9 p.m.
Weekends
o Saturday
9 a.m. 9 p.m.
o Sunday
Closed

Products

Books
o
o
o

There will always be a need for books whether it be the Paperbacks way or electronically; there will
always be something new and interesting to read and learn about.
Paperbacks Caf provides paper books and text books. Stocked with all the books that students need
for school and academics all in one central location.
Books are currently at an incline of 8%, teachers and students alike will always choose a paperbacked
book for highlighting and making notes in, which appeals to Paperbacks Cafs target market. Not

PAPERBACKS CAF MAY 2014

only students in specific but many people also enjoy the feeling of paper between their fingers instead
of a lit up screen grazing their fingertips.

Caf
The demand for a great brew of coffee is always exponentially growing, and with great coffee comes
great responsibility. This Caf will only ever serve the finest coffee provided by Thrive Farmers
Coffee, which is rated to be better than the two leaders, Starbucks and Dunkin Doughnuts.
This high grade coffee will make Paperbacks Caf stand out above the leading competition
and will provide a foothold in Parkers economy.
Entertainment
o Parker is not known for its abundance of things to do. Instead it is known for its safety and education
while lacking any form of entertainment. Paperbacks Caf wishes to provide an alternative
entertainment option compared to those that are not so beneficial to the students, also it makes for
something that cannot be matched in parker.
Having a stage allows new talent to rise with the possibility of being recognized and it allows
the community to grow together and build upon others talents.
o

Suppliers

Food Suppliers
o Thrive Farmers Coffee
This coffee is affordable but it is also one of the highest rated coffees there is for import.
Currently it is rated higher than Starbucks and Dunkin Doughnuts.
o Costco Pastries / Ingredients
They will be supplying whole frozen pastries, also they will be supplying ingredients for the
pastries that are home made at the coffee shop.
o SEARS
For machinery and appliances
Book / Other Suppliers
o IBPA Distributors and Wholesalers
o American Book Co.
This is the largest supplier in the nation and offers very competitive pricing to all the rest.
Paperbacks Caf will be using two suppliers because it broadens the scope of opportunity to
get different and cheaper books.

Service

The Core Rule Book

o There are five steps that any Paperback employee must follow. Failure to meet these standards will
result in punishment and or expulsion.
o Five Steps:
Keep eye contact with the customer as much as possible.
Smile genuinely to be warm and inviting for the customer to speak with.
While speaking to the customer make your voice fluctuate and sound interesting with
personality.
Connect with the customers needs or wants and learn more about them to create a personal
relationship.
Act or do whatever is in the employees ability to please the customer and make his/hers
experience a great one.

PAPERBACKS CAF MAY 2014

Paperbacks Caf will make long lasting customers by achieving operational excellence through the steps listed
above.

Crew Members

Management
o The owner of Paperbacks Caf will be the only manager until the opportunity to expand is presented.
The owner will manage all employees and operations of the business, also doing the financial reports
of the business.
Employees
o Paperbacks Caf will be staffed with three employees which will all work at different times of the day.
There will always be the owner and one employee at the store during all open hours.
o Employee Wages start at $8.50 per hour.
o Hours:
12 hours per weekday
10 hours per weekend
o Monthly Wages
Owner $3500
Per 5 hours of work a day for one month are $1980

PAPERBACKS CAF MAY 2014

Marketing
Market Analysis
Target Market:

Specific
o Paperbacks target customers are both male and female, between 7 th grade all the way up to collage,
though the specific focus is the high school population. These customers are going to be generally
good students that care about knowledge but also want a place to socialize with their friends while
studying. These customers are looking for a place to be with friends after school and do something
more productive than just wondering around town. Also, they enjoy coffee or small treats which are
provided by the caf.
Demographics
o High School Students in Parker
4,838 Students currently enrolled in Parkers public schools.
Legend High School

1,332 Students enrolled.

62 Full time teachers.

52 percent male and 48 percent female

Ponderosa High School

1,429 Students enrolled.

70 Full time teachers.

48 percent male and 52 percent female

Chaparral High School

2,077 Students enrolled.

101 Full time teachers.

50 percent male and 50 percent female.

Location
Housing

Most of Paperbacks target market is located in suburban areas, more times than
not, located near a local public school. Either being a high school, middle school,
elementary school, or preschool. These are epicenters for children and teenagers.
Apartments

Some customers live in apartments or other housing in which is mainly located in

or near a business development area.

Coffee Customers
40% of 18-24 year olds are drinking coffee each day.
Over 75% of U.S. adults drink coffee, and 58% reported drinking coffee daily.

Overall Industry:

Bookstores
o Nationwide bookstores are currently in an increase of 8%
The Industry is currently at a slow incline because things such as eBooks, audio books,
Nooks, and other electrical means are sweeping the market. Though, through our diversity
we will be able to attract not only the book crowd but also other crowds.
o Total revenue of all book stores is currently at $17 billion.

PAPERBACKS CAF MAY 2014

Coffee Shops
o 20,000 Local coffee shops currently in the United States.
o Total revenue is presently around $Ca10 billion.
o Nationwide the coffee industry is growing at 5%.

Market Segmentation

New Books
o 20% Buy brand new books that are newly printed.
Used Books
o 30% Buy used or slightly worn books to keep down the price.
Audio Books
o Most people who buy audio books also enjoy buying new and used books. Therefore, there is no for
sure percentage in the category.
Online books/Tablets
o 50% Buy online books for the tablets, portable devices, and or computers.
This is one of the fastest growing markets in the book industry, though it is hurting regular
paper backed book stores.

Market Segments
New Books
20%

Online Books
50%
Used Books
30%

Competition

See Appendix for a complete competitive analysis of the nearest competitors.

Indirect Completion
o Online Books
Online books have been taking the market by storm because of how easily assessable they
are. Though, there is still a demand for real books, Paperbacks Caf intents to make kiosks
with charging stations that are comfortable, if the customer wants to use a technological
device for reading.
o Audio Books
Paperbacks Caf will also have head phone and kiosks for people who choose this route.
Anyway to get them into the store is a good way.
o Library
This is the only competition in which we have no solution for other than our fun inviting
atmosphere which will be a major selling point.

PAPERBACKS CAF MAY 2014

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Pricing

Books
o

Books are held at a fare standard across the board of bookstores ranging anywhere from $20 all the
way to $100 based upon the size of the book and the type of bounding that the book is presented in.
To set Paperbacks Caf apart from the completion there will be various sales and coupons
offered throughout the year to keep customers coming through the doors and contumely
getting the name of the business into the mouths of the consumer.

Food
o

Coffee and pastries will also be offered at a competitive price. Though, the coffee will be offered at a
lower rate, than Starbucks and other coffee shops even though the coffee is rated higher. Pastries will
be the same as the competition.
Entertainment
o All entertainment will be free to perform and free to watch and or listen to. This also, will keep
customers coming through the doors increasing the chances of making sales. For larger acts where
Paperbacks Caf has to invest capitol into advertising, those performances will cost a slight admission
fee as well as a performers fee.

Advertising and Promotion

Word Of Mouth
o Word of mouth is critical for a small business, it can either make or break a business. If it is bad then
no one will even attempt to come to Paperbacks Caf, but if it is good it encourages more people to
come in for a visit. This will be obtained through operational excellence.
Social Media
o Paperbacks Caf will have both a Facebook page and twitter page. This will be a good way to have
people spread positive feedback in a centralized area. Also, it will allow easy access to information
about the store, such as events, sales, or entertainment.
Flyers / Postcards
o Postcards will be mailed out to residents within a two mile radius of the three high schools in Parker
Colorado; Legend, Chaparral, and Ponderosa. This will spread the word to more potential customers.
Also, the postcard works as a coupon for any item. This will draw people into the store to see what it
is all about.
Website
o The website is critical to the operation of the store. This is where Paperbacks Caf will keep a list of
all current books in stock and will also be a place where customers can order books if it is not
currently offered at the store. Also, customers will be able to have their own personal account where
they can earn rewards points toward a discounted or free item. They can also track their purchases
through the website.
Online Advertisements
o Paperbacks Caf will buy spots of location advertisement through google and Facebook that is
specific toward the target market. All expenses can be found in the finance section.
Questionnaire
o Before the company opens for business, the attached questionnaire and letter (See Appendix) will be
mailed to the same radius as the post cards. This will help Paperbacks Caf better fit the needs and
wants of the community.
Sign

PAPERBACKS CAF MAY 2014

11

The signs will be hung on the store itself with the logo and name, which will catch potential
customers eyes to draw them into the store.
Advertising Budget
o Paperbacks Caf will spend 5-7% of all revenue toward advertising which can all be found in the
financial section.
o

Strategy and Implementation

List of Advertisement In Order (Soonest to Latest)

1. Questionnaire (May)
2. Sign (May)
3. Social Media (May)
4. Website (June)
5. Flyers / Postcard (August)
6. Online Advertising (October)
7. Word Of Mouth (Always)

PAPERBACKS CAF MAY 2014

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Financial Plan
Start-Up Budget

PAPERBACKS CAF MAY 2014

13

Balance Sheet

PAPERBACKS CAF MAY 2014

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Income Statement

PAPERBACKS CAF MAY 2014

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Operating Expenses

Supply / Cost List

PAPERBACKS CAF MAY 2014

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Appendix
Competitive Analysis
Factors

Paperbacks Caf

Poor Richards Book Shoppe

Barnes & Noble

Products

Books, Music, Coffee,

Pastries, & Entertainment

New & Used Books

Books, Nooks, eBooks, toys,

music, & games.

Prices

Competitively priced for

books but below average
for coffee.

Fair pricing either at or under

online merchants.

Competitive pricing, but

controls a large section of the
market.

Quality

Standard book condition,

great coffee the best
coffee

Clean, Books are in good

condition even for being used.

Clean, crisp, brand new with

no rips, tears, or folded edges.

Customer Service

Outstanding, competitive
with Chick-Fil-A

Extremely friendly & helpful.

Friendly but spread thin across

the vast store. Also, the
computer does most of the
work.

Image

Clean, well kept, but yet

very modern

Used book store, cluttered,

books everywhere.

Clean, tightly, good

presentation, easy to find
books.

Location

Prime location next to

other stores

In the heart of downtown

parker.

In Aurora at southlands mall

(15-20 min from parker)

Atmosphere

Calm and cool, something

that teens will enjoy

Cozy, dim lighting, book filled.

Clean, spacious, clear lanes of

walking, wide open.

Appearance

Clean and organized with

a modern vibe

Rather Cluttered with books on

the inside and lacking good
signage on the outside.

Clean, wide open, coffee shop,

seating areas.

Sales Methods

Word of mouth and

advertisement

In store walk in help.

Online, by phone, or in store

walk in.

Credit Policy

N/A

You can recycle used books to

go toward another book from
15%-50% of this price.

All kind of credit is available at

this store and all items if
undamaged can be retuned up
to 14 days after the purchase.

Availability

A good selection of books

but also the ability to buy
online is an option

Most books are always in stalk,

any that you could want.

Online you can get almost any

books, in store they carry most
if not out of stock.

Management

LLC

LLC

Cooperation

Stability

New business

Fairly stable and has been open

for a few years.

Solid but decline the past few

years having to shut more and
more stores.

Marketing

Signs, flyers, website, and

business cards.

Sign on Main Street, flyers,

word of mouth.

Online, ads, commercials, and

sings.

Questionnaire

PAPERBACKS CAF MAY 2014

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