This is a business owner who has reached out to Slow Money NC.
Business Owner: Timothy Jones
Business Name: Liturgy Beverage Company
Location: 819 Midway Avenue, Durham, NC 27703
How did you hear about Slow Money NC?: Zach Faulisi from Pizzeria Faulisi in Cary recommended I talk to you all.
Tell us your story. What is your business idea? Tell us your plan. My name is Tim Jones and I am in the process of opening a coffee bar in Durham NC as a part of the new Durham Food Hall project. I’ve been in the coffee industry in the Triangle since 2009 and have always dreamed of opening my own space. After working as a manager for 4 years at a company called Jubala in Raleigh, I decided to launch my own business in Durham, where I live. The food hall is providing me with a lower initial start up cost and higher visibility location than if I were to start with a full-scale brick and mortar. We will serve a simple menu of coffee, tea and chocolate that highlights the terroir of the products served.
Please briefly describe your commitment to sustainable food systems in North Carolina.: While the products we are serving are all inherently imports (coffee, tea and cacao do not grow natively in NC) we are committed to sustainability and local ingredients where possible. Our focus as a company is “serving the work of the people” by specifically highlighting and serving products made by individuals (coffee/tea/cacao farmers) in sustainable ways. We will operate with a majority reusable/compostable/recyclable products, and use products made in NC where possible. Some of our projected vendors include; Haand ceramics, Homeland Creamery, Caballo Rojo Coffee Roasters, Videri Chocolate, Black and White Coffee Roasters, Crude Bitters and Hex Coffee Roasters.
What will your sales be? What do you anticipate your profits/your margins will look like? How will you make the money to pay this loan back?: We project revenue in the first full calendar year that we are open (2019) to be 343,787, with a Cost of Goods Sold to be $97,151 (28% of revenue) and a labor cost of $118,618 (35% of revenue). With fixed costs estimated at $96,443 (28%) we are estimating a projected profit of $31,575 (9%). The profit margin increases as the fixed costs remain the same and the revenue goes up.
Have you borrowed money before? How much did you borrow? From where? How long was the term? Is there a balance still due on that loan?: I’ve previously taken out and paid back a loan on a vehicle (5yr loan, paid back in 2yrs), and currently have a 30yr mortage on my house.
Do you have people who would vouch for your credit worthiness? Who are they?: If you mean a co-signer, no. But there are several people from whom I’ve borrowed money in the past who could speak to my ability/credibility to repay.
Tell us about your business background. Have you been in business before?: I started my company in 2015 doing coffee catering for weddings and other events and am no looking to expand it to a retail space. I’ve worked as a manager/trainer/director of operations in several different coffee businesses over the last 9 years. I’m currently the Director of Operations for two cafes in the Triangle, having previously helped open two different shops as well.
Are there other lenders involved in your project or business?: I have no commercial loans or backers. I’ve had some family and friends give me some money.
What is your timeline for this project? Would you like it to start in a month? 6 months? A year?: The food hall is projected to open in November of 2018. I’m trying to raise all money for the project by August.