Limited Liability Co. Cover Letter

Limited Liability Co. Cover Letter Lending Manager, Big National Bank I am writing to discuss your bank's investment in my new venture, Epic Coffee. This company will be a roaster/wholesaler of the best coffee and espresso beans on the planet, with a small cafe attached. The principles have extensive expertise in sourcing and roasting the finest beans on earth -- for example heirloom varieties of arabica and single lots of fair trade coffee from organic farmers.

Our expertise has resulted in numerous awards in city newspapers and magazines, and we believe that there is a substantial market for high-quality custom-roasted coffee both at the wholesale and retail level. Our startup funding requirements are only $50,000 and we expect to turn a profit within the first year based on the feedback we have received thus far from potential customers. We believe we can meet these needs with a line of credit, and offer the potential for mezzanine financing down the road as we look to expand.

We look forward to our appointment with you in order to outline our proposal in more detail. Company Background: The company will engage in three primary functions -- manufacturing, wholesaling and retailing. The first function will consist of processing raw coffee beans into roasted coffee beans. While the procedure is relatively simple, precision roasting in the hands of an expert can yield superior coffees.

The wholesale function will be conducted through standard phone/Internet channels, with local distribution being handled by the company and broader distribution handled through a courier company. The retail function will be conducted both online and in our cafe/store which will be located on site. We have chosen the limited liability company as our form of organization. This form had a number of advantages that we feel and critical to helping our business.

The first is that the tax rate for LLCs is lower than for partnerships or sole proprietorships. The second is that the company is a separate legal entity, thus reducing the legal liability of the owners. Each owner will be given a share in the business -- a total of three shares will be issued.

The LLC is also a good choice of ownership type for our company because expect to turn a profit by the end of the first year -- we will not need to declare losses against our personal income. Management Team There are three principles. The first has a background in coffee, having worked in multiple positions both as a barista and in production.

This person will be our main roaster, and has undertaken an internship with one of the nation's leading premium roasters in order to gain knowledge and experience for this venture. This individual will roast in the evening, and work the cafe in the afternoon. The second principle is the marketing expert. This person has extensive experience in underground marketing and social media. This expertise will be put to good use building the brand's profile, handling distribution and managing the mail orders. The third principle is the accountant.

The manager of the team will attend to all managerial, purchasing and accounting needs. As well, the third will work the cafe in the morning and contribute to the distribution function where needed. Marketing Plan The marketing mix can be used to understand our marketing plan. First and foremost, we have a premium product.

The quality will be one of the major selling points of our coffee -- it is simply better than that of anybody else currently on the market and we will be one of the top handful of roasters in the country. The price will reflect this. The premium prices we will charge -- in the range of $15 per pound, are commensurate with the price charged by other roasters of our caliber for their coffees. We will offer a slight discount from this for our wholesale business, but only slightly.

When cafes sell our coffee at retail, they will probably charge in the $1.75 range for a cup and $3.00-$3.50 for an espresso drink. With regards to place, the majority of our sales will be conducted either in our store or through the Internet. We expect that our store will handle a significant amount of the retail trade, especially since the cafe will attract customers. The Internet -- along with phone and email orders -- will handle the bulk of the wholesale business.

The promotional message will be based around the high quality of the coffee. We will support this with a considerable focus on building our brand. Specific coffees may be the focus of special promotions, but for the most part we seek to create a brand identity that coffee lovers will easily equate with high quality. We expect that our promotion will be primarily Internet based. We intend to create a buzz through social media and will use our page to market our brand and sell our coffees.

Beyond this, we expect that we will utilize both guerilla marketing strategies and conventional print advertisements (in local food and entertainment periodicals) to announce our arrival. We will have a grand opening party in order to generate further buzz. Financial Plan Projected financial statements for the first year are found in Appendix A. The company expects revenues of $200,000 in the first year. This is expected to increase to $500,000 in the second years. Cost of goods sold is relatively low for coffee, even at fair trade prices.

Our beans will cost more than conventional ones, but we are able to charge higher margins than are most coffee roasters because of our premium quality. We believe that general expense will.