Presented by the Small Business Advisory Group Franklin Pierce University Spring 2015

TERRA NOVA ORGANIC COFFEE ROASTERSPresented by the Small Business Advisory GroupFranklin Pierce UniversitySpring 2015

SMALL BUSINESS ADVISORY GROUP

Danielle Hare (Chair)Michael Petrowski

Jared TaylorRyan Lally

Yousef HasanHolly Nisbett

Lindsay SweetErin Lang

Abigail AndersonMolly Doyle

Sara MichaelsBrandon Knight

Jason Little (Faculty Advisor)

WHAT IS THE SMALL BUSINESS ADVISORY GROUP?The Small Business Advisory Group is comprised of Franklin Pierce students

who partner with the New Hampshire Small Business Development Center

(SBDC). The SBDC helps organizations and startup companies develop

business initiatives. The Franklin Pierce University Small Business Advisory

Group specifically works with the regional office based out of Keene, New

Hampshire and Rich Grogan, who is the Director of the regional office.

COMMITTEESFinancial

Michael Petrowski (Chair)Ryan LallyJared Taylor

Social MediaSara Michaels (Chair)Danielle HareBrandon Knight

DistributionHolly Nisbett (Chair)Yousef Hasan

WebsiteAbigail Anderson (Chair)Lindsay SweetErin LangMolly Doyle

WHAT IS TERRA NOVA ORGANIC COFFEE

ROASTERS?  Terra Nova Organic Coffee Roasters is an artisan organic coffee company which currently supplies wholesale coffee for cafes and sells retail coffee online and in select stores.

Terra Nova was incorporated in 2005 by previous owners John and Cindy Brewster of Gilsum, New Hampshire, who also owned Brewbaker’s Café.

In 2011, Jeff Murphy purchased both Brewbaker’s Café and Terra Nova Organic Coffee Roasters with his wife Eliza.

WHO IS JEFF MURPHY? In 2011, Jeff Murphy was finishing his undergraduate degree in Business and Managing Information Systems at Keene State College and Marlboro College Graduate Center, where his senior thesis was based on creating a business plan for a local foods café.

Murphy took ownership of the cafe in July 2011, and his new business plan was put into action.

They moved the roasting to their home in Surry, NH in 2012, where it is still currently operating.

WEBSITEAbigail AndersonMolly DoyleErin LangLindsay Sweet

DELIVERABLE: WEBSITE DESIGN

Design of whole new website

Integration of social media, company information, and shop

Enhancement and accessibility

THE PROCESS Weebly website builder

Used free template as much as possible

Upgraded to pro version to allow for more options Store products Additional pages

Added Terra Nova pictures and company information

WEBSITE POTENTIAL POSTS Picture Gallery

More locations of where to buy the beans

Locations to buy coffee

Events (farmers markets)

OLD WEBSITE

NEW WEBSITE

SOCIAL MEDIASara MichaelsDanielle HareBrandon Knight

TARGET SOCIAL MEDIA OUTLETS

Facebook Older audience: Represents the target market for Terra Nova Organic Roasters

Twitter Younger age bracket:16-30 years old Tech-savvy

Instagram Younger age bracket: 18-30 years old Familiar with technology who would rather see visuals than read posts

ANALYTIC TRACKING ON SOCIAL MEDIA

Facebook Facebook has built in analytics software that uses a simplistic approach in order for company pages to track their views and reach with each post

Twitter and Instagram Twitter and Instagram have not yet developed an analytics software package that they can use

Companies can solely track who they follow and who follows them through the current capabilities of the applications.

RECOMMENDATIONS: FACEBOOK

Biography: Discover a new world of fine coffee (from website)

About us: It is no secret that freshness and quality make a delicious cup of coffee, and that satisfied customers are the key to a healthy and viable company. Terra Nova roasts daily in small batches, and sends your order out straight away, so that your coffee is always fresh and wonderful when it arrives at your door.

Update posts each week

RECOMMENDATIONS: TWITTER

Create a twitter page for Terra Nova Organic Coffee

Follow Keene locals well as Keene State College students

Post updates daily as needed on roasting process and café specials

POTENTIAL TWITTER POSTS “A fresh shipment of all organic green coffee beans arrived this week, come by and grab a fresh cup of coffee!”

“You are what you drink, Fresh, Delicious and Totally Organic!”

“Life is too short for bad coffee.”

“Try our French Roast blend! Its delicious smoky flavor and smooth finish will start your day off right.”

DWELLTIME COFFEE

Small coffee shop located in Cambridge, Massachusetts

Close to higher education institutions

Attracts both a older and younger audience

RECOMMENDATIONS: INSTAGRAM

Create an Instagram account for Terra Nova Coffee

Incorporate photos

Post photos of the process because it is important for potential clientele to see where the product is coming from and how it is produced

POTENTIAL INSTAGRAM POSTS

Caption: “Replenish yourself with one of our delicious, creamy latte’s #latteart”

Caption: Roastery B/W #winterwonderland

Caption: “Fresh, organic beans ready to be roasted #redbarn”

Caption: “Our coffee is too good to spill #coffeeart”

Caption: “Drinking organic coffee may reduce your risk of chronic disease, extend your lifespan and improve the environment as well #funfact”

Caption: “Warm up from a chilly day with a refreshing, all natural cup of java #heaveninacup”

INSIGHT COFFEE ROASTERS Popular Instagram page in the industry for a small scale coffee roaster

Good example for Terra Nova to reference

BENEFITS OF SOCIAL MEDIA Facebook, Twitter and Instagram all help target and expand audiences more

effectively

Social Media allows you to receive instant feedback from your customers’ perspective

Improves market intelligence and ways to get ahead of your competitors

Easier to share content and increases business search ranking

Gives you the opportunity to increase brand awareness and reputation with little to no budget

2014 SOCIAL MEDIA MARKETING REPORT The third annual Social Media Marketing Report was released to the public

in March by a company called Social Media Examiner

3,342 small business marketers who recently started using social media were surveyed around the United States

The results show the benefits of using social media and how they impacted the businesses

SOCIAL MEDIA BENEFITS

Increased exposure

Increased subscribers

Provided marketplace insight

Developed loyal fans

Generated Leads

Improved search rankings

Grown business partnerships

Reduced marketing expenses

Improved sales

MOST EFFECTIVE SOCIAL MEDIA

FacebookTwitterLinkedinBlogsInstagramGoogle+YoutubeForumsNews sitesGeo-locationDaily deals

DISTRIBUTIONHolly NisbettYousef Hasan

PORTSMOUTH, NH AND BURLINGTON, VT

RECOMMENDED ROUTE IDEAS FROM CLIENT

Route #1- Vermont Stops: Walpole, Bellows Falls, Springfield, Claremont, White River Junction,

Lebanon, West Lebanon, Hanover, Norwich

Route #2- New Hampshire Stops: Marlborough, Peterborough, Wilton, Milford, Amherst, Bedford, Nashua,

Hooksett, Merrimack, Manchester, Concord, Hillsborough

Route #3- Massachusetts Stops: Brattleboro, Williamstown, Deerfield, Greenfield, Amherst, Hadley, East

Hampton, North Hampton

VERMONT ROUTE

VERMONT ROUTELocation Distance

(From Keene)Competitors(Coffee and Roasters)

Opportunities(Short Term)

Walpole, VT 17 Miles 3 Coffee Shops- 1 Roaster

Wholesale

Bellows Falls, VT 21 Miles 2 Coffee Shops- 1 Roaster

Wholesale

Springfield, VT 36 Miles 2 Coffee Shops WholesaleClaremont, VT 46 Miles 4 Coffee Shops- 2

RoasterWholesale

White River Junction, VT

61 Miles 1 Coffee Shop- 1 Roaster Wholesale

Lebanon, NH 64 Miles 9 Coffee Shop- 2 Roaster WholesaleWest Lebanon, NH 64 Miles 7 Coffee Shop- 2 Roaster Wholesale

Hanover, NH 66 Miles 8 Coffee Shop- 1 Roaster WholesaleNorwich, VT 81 Miles 7 Coffee Shop- 1 Roaster Wholesale

The advantage is organic coffee does not have large competition throughout these places.

Location OpportunitiesWalpole, VT Flat Iron Exchanges, L.A Burdick, Bellows Falls, VT Moon Dog Café, Koffee Kup

Bakery Inc, The Valley Café, Rita’s Coffee Shop

Springfield, VT The Java Cup, Boston Dreams, Java Baba’s, Angelina’s Market,

Claremont, VT Peet’s Coffee and Tea, Green Acres Fine food and Wine, Red Elephant Café, Grantham Café

While River Junction, VT Tuckerbox, Boho CafeLebanon, NH Jake’s Coffee CompanyWest Lebanon, NH Stone Arch Bakery, Dirt Cowboy

Café, Hanover, NH Umpleby’s Bakery Café, Lou’s

Restaurant & Bakery, Metro Bakery & Cafe

Norwich, VT Dan & Whits General Store, Allechante

NEW HAMPSHIRE ROUTE

NEW HAMPSHIRE ROUTE *= ORGANIC COMPETITION

Location Distance (From Keene)

Competitors(Coffee and Roasters)

Opportunities(Short Term)

Marlborough, NH 5 Miles 6 Coffee Shops- 1 Roaster WholesalePeterborough, NH 20 Miles 5 Coffee Shops- 1 Roaster WholesaleWilton, NH 33 Miles 16 Coffee Shops- 13

Roasters * WholesaleMilford, NH 78 Miles 4 Coffee Shops- 12

Roasters WholesaleAmherst, MA 48 Miles 7 Coffee Shops- 8 Roasters

* WholesaleBedford, NH 72 Miles 14 Coffee Shops- 7

Roasters WholesaleNashua, NH 49 Miles 6 Coffee Shops- 6 Roasters WholesaleHooksett, NH 57 Miles 11 Coffee Shops- 8

Roasters WholesaleMerrimack, NH 81 Miles 10 Coffee Shops- 7

Roasters WholesaleManchester, NH 65 Miles 14 Coffee Shops- 8

Roasters WholesaleConcord, NH 54 Miles 7 Coffee Shops- 7 Roasters WholesaleHillsborough, NH 29 Miles 3 Coffee Shops- 10

Roasters Wholesale

Location Opportunities

Marlborough, NH Zepplin & Kaleidoscope, Mystical Rose Café LLC.

Peterborough, NH Aesop’s Tables & Events, Twelve Pine, Bagel Mill, Nature’s Green Grocer, The Riverhouse Café

Wilton, NH Coffee Factory, Bonhoeffer’s Café and Espresso, White Mountain Gourmet Coffee, True Brew Barista

Milford, NH The Riverhouse Café, Black Forest Café & Bakery, Riverwalk Café and Music Bar, Instant Ambition

Amherst, NH Rao’s Café, Freedom Café, The Black Sheep, Cushman Market & Café, Wheatberry Bakery & Café, Cozy Corner Café

Bedford, NH Purple Finch Café, Extra Touch Gourmet Café, Hot Spot Café, Two Friends Café, Coffee Pause

Nashua, NH Riverwalk Café and Music Bar, Great Harvest Bread Co, Seedling Café, Coffee Coffee, Coffee Factory, Whole Foods

Hooksett, NH The Bridge Café on Elm, Ahh-Some Gourmet Coffee, Baked Downtown Café and Bakery, Café Indigo, Still In a Pinch Café & Bakery

Merrimack, NH Hot Rize Bagel Café, Great Harvest Bread Co, uBuyCoffee, Barista Pro Shop, Riverwalk Café and Music Bar, Extra Touch Gourmet Café

Manchester, NH The Bridge Café on Elm, Baked Downtown Café & Bakery, Republic, Midtown Café At The Beacon, Two Friends Café, Bagel Café, B&B Café and Grill, Rachel’s Coffee Corner, Fairwinds Gourmet Coffee

Concord, NH True Brew Barista, White Mountain Gourmet Coffee, Morning Dew Café, Café Indigo, In A Pinch Café & Bakery, Washington Street Café, The Crust and Crumb Baking Co.

Hillsborough, NH The Every Day Café, St. George’s Café, Prime Roast Coffee Co, Fiddleheads Café & Catering, The Bridge Café on Elm, Café la Reine

MASSACHUSETTS ROUTE

MASSACHUSETTS ROUTELocation Distance

(From Keene)Competitors(Coffee and Roasters)

Opportunities(Short Term)

Brattleboro, VT 19 Miles 6 Coffee Shops- 1 Roaster

Wholesale

Williamstown, MA

72 Miles 5 Coffee Shops- 1 Roaster

Wholesale

Deerfield, MA 38 Miles 6 Coffee Shops- 10 Roasters *

Wholesale

Greenfield, MA 34 Miles 6 Coffee Shops- 6 Roasters

Wholesale

Amherst, MA 48 Miles 7 Coffee Shops- 8 Roasters *

Wholesale

Hadley, MA 53 Miles 10 Coffee Shops- 7 Roasters

Wholesale

Easthampton, MA

58 Miles 11 Coffee Shops- 6 Roaster

Wholesale

Northhampton, MA

52 Miles 11 Coffee Shops- 2 Roaster

Wholesale

Location OpportunitiesBrattleboro, VT Mocha Joe’s Café, Amy’s Bakery Arts

Café, Blue Moose, Newfane Café & Creamery, Putney Food Co-op.

Williamstown, MA Tunnel City Coffee, Stewart’s Shop, Brewhaha, The Parlor Café, South Street Café, The Brown Cow Café, Java Joe’s Café.

Deerfield, MA Greenfield Coffee, Lady Killigrew, El Jardin Bakery, Mocha Maya’s Coffee Pub & Music Venue, Fox Towne Coffee Shoppe, Cushman Market & Cafe

Greenfield, MA Greenfield Coffee, Queen of CupsAmherst, MA Rao’s Café, Freedom Café, The Black

Sheep, LimeRed Teahouse, Newman Center Café, Mill River Café

Hadley, MA Northhampton Coffee, SIP Café and Coffee Bar, Mocha Emporium, The Roost

Easthampton, MA Manhan Café, Christine’s Bean Sprout Juce Bar & Café, Mt. Joe to Go, Haymarket Café

Northhampton, MA Woodstar Café, Northampton Coffee, The Roost, Tart Baking Co

OUR RECOMMENDATION Start out with New Hampshire route.

There is a little bit more competition, a lot of opportunities, and only 2 potential organic roastaries nearby.

If the New Hampshire route works out well, other routes should be considered.

Potential New Hampshire places would be good because they are near Keene.

Programs with Trader Joes, Whole Foods, or Hannaford can also potentially be easy to be a part of and beneficial to getting product to consumers.

FINANCIALMichael PetrowskiRyan LallyJared Taylor

FINANCIAL RATIO DEFINITIONSGross Profit Margin - a financial metric used to assess a firm's financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold.Profit Margin - the amount by which revenue from sales exceeds costs in a business

Operating Profit Margin - measurement of what proportion of a company's revenue is left over after paying for variable of production such as wages, raw materials, etc.Return on Assets - the amount of sales or revenues generated per dollar of assetsTotal Asset Turnover - the amount of sales or revenues generated per dollar of assetsInventory Turnover- measure of the number of times inventory is sold or used in a time period such as a yearCurrent Ratio - measures whether or not a firm has enough resources to pay its debts over the next 12 monthsQuick Ratio – measures the dollar amount of liquid assets available for each dollar of current liabilitiesDebt to Total Assets - the percentage of total assets that were financed by creditors, liabilities, debt.

FINANCIAL RATIOS

INCOME STATEMENT TEMPLATE

YEAR-END SALES REPORT TEMPLATE

CURRENT ROASTER Ambex YM 5

10-11 lbs. capacity

1.5 - 2 lbs. lost after roast due to evaporation

PROSPECTIVE FUTURE ROASTER

Probat (p12) Roaster

25 lbs. maximum capacity

Average price = $36,000

Produces 100 lbs. of beans per hour

HIRING A NEW EMPLOYEE

THANK YOU FOR BEING HERE!Any questions?

REFERENCESSource for 2014 Social Media Marketing Report http://www.socialmediaexaminer.com/SocialMediaMarketingIndustryReport2014.pdf

By: Michael T. StelznerPublished by Social Media Examiner