Oblivion CoffeeBar & Mercantile | Application Preview
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General Information
Business Registration Number: 92-2882180
Location: St. Cloud, MN, United States
Length of Operation: 1-5
Number of Employees: 1-10 Employees
Annual Gross Income: $250k to $500k
Annual Gross Expense: $250k to $500k
Open to Loans: NO
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Funding Usage
My building has had sewage backup in the basement 3 times since I obtained ownership on May 5th. Yesterday, I was told that my cast iron pipes have severe channel rot and will need to be either replaced or re-lined. The technician put in a referral for immediate assessment with a CCTV to visualize the extent of the rot. I haven’t been able to pay my prior $1700 invoice from the last snake and emergency cleanup, and now have another $1700 added on. The relining of the pipes can vary anywhere from $6000 to $15,000. I am struggling to pay my vendors for COGS and am in debt to them at about $13,000 already accruing interest for unpaid invoices. I’ve also been running my business without AC or heat to 3/4 of my building, which was another added expense for HVAC in the last 5 months. A new unit is needed on my rooftop as well as a new condenser and fan for my basement furnaces. There have also been several smaller repairs to the plumbing and HVAC that I haven’t mentioned but we’re paid for using my working capital of my SBA loan. I think that if these unexpected structural repairs and expenses haven’t arose, my business would be thriving. I don’t believe I am qualified for any more loans due to the nature of my credit now that the last few months have been a severe struggle.
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Business Plan
This next summer, my significant other of 6 years will be moving his business in my upstairs space. Currently I have a tenant contracted until June 2024. They are only renting 1/4 of the upstairs space and their rent has gone towards repair of the HVAC for that entire upstairs and my main floor kitchen. Unfortunately, that is the space that needs a new rooftop unit. We also would need to build a bathroom per the health department. My significant other owns a tattoo shop and both of our businesses combined will thrive off of each others clients. His clients will enter my business, can wait until their appointment and support my business, and head upstairs when they are done. Vice versa for his business- I would like to be able to use my kitchen space more, but do not have a hood vent for proper ventilation if we were to do our own baking. In the even further future, I would like to offer extended hours, live music, and obtain a liquor license for a wine bar in the evenings. My space is very non traditional for a coffeeshop. It is dark and moody, Victorian themed atmosphere offering space for customers to hangout for as long as they choose. It has almost become a destination spot of St. Cloud just because it is so vastly different from chains and other small coffee shops. I’m just looking to get back on my feet with these expenses. I’m proud to own a business, let alone have been able to purchase the building for a single female minority, but I am extremely fearful that my superstition will get the best of me- that this building is cursed. I want to be able to get the appropriate things repaired and running smoothly to become that destination in its entirety without having to build a modern building. The aesthetic of this building is what gives it its character and is the main reason I bought it. A saloon style bar was original to the 1911 undertaking business! I find that so bizarre and I love talking about the history of my building; I want to preserve its history the best I can.
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Self Identified Competition
My top 3 competitors are two big chain stores (Starbucks and Capital One/Peet’s Cafe) and a small business bistro called Jules Bistro. Compared to the chain coffee shops, I am polar opposite. I want to be able to sell my atmosphere as well as my product, therefore my atmosphere is vintage, Victorian, whimsical, dark yet bold colors, and homey. When I walk into all other competitions, it seems like the trend has been to go white farmhouse and bland. Everything is so simplified lately. It’s cold feeling to me, not welcoming. Which is what corporates want- they want their customer to be in and out. I want my customers to stay. I can build off of customers while they are here. If someone holds a meeting here and stays a while, they are more apt to purchase food or snacks after enjoying their coffee, and most likely another drink to go with that food. Jules Bistro, my 3rd competitor has veered into the direction of catering, a gourmet food menu, and alcohol events. Coffee for them has been put on the bottom of the list. I have customers that prefer the taste of my local roasters beans versus Jules Minneapolis based roaster and strictly come to my shop to support small business. It has all came down to preference of coffee and the atmosphere of each business. I use the historical aspect of the building to attract people to “come see this destination attraction”. As stated above, I have customers come strictly to my business for the atmosphere and local. The building attracts people itself because it’s so vastly different than other coffee shops. People come just to step in the door and take it all in, jaws drop.
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