New distribution business. Numbers?

[Jbaez]

Hello, my name is Juan and I am planning to open a new coffee distribution business (wholesale and online retail). I will be targeting hotels, restaurants, specialty stores, convenience stores, and any other venue that appeals to the organic, gourmet and specialty coffee business. I am already doing my share of reading and educating myself in topic and I have worked in the B2B world for more than 10 years, and although I will not be selling prepared coffee, nor roast it (it will be already roasted and packed according to client's preferences), I will be taking a simple barista course and learn about roasting, to learn the lingo.

I am working to prepare a solid business plan. In the beginning there will be between two or four people selling. My question is:

- Can someone tell me, at least an idea, of how much a start up of this kind can generate during the first year?

I know that it will depend on many factors, but I am trying to convince someone to get into the business with me, and I am certain that she will ask about numbers. I tried to explain to her that in start ups you cannot not have definite numbers, but she is really tough. Please advise. Thanks!

Regards,

 

[RodriguezKaffe]

I have an idea you might be interested in. I sent you a PM.

 

[nicniccoffee]

I have a great idea the same one im doing I will send you the links

 

[PinkRose]

Hello "niciccoffee" and "RodriquezKaffe"

Please read the Forums Rules page, particularly Rule #6 here:

http://www.coffeeforums.com/forum/announcements/5-rules-tos.html

Here at the Coffee Forum, we deal with plain ole' coffee, where all we have to be concerned with is caffeine.

I have to admit, I'm starting to have some "pyramid scheme" concerns regarding people trying to use the Coffee Forum to sell their products or find distributors.

We're keeping a watchful eye on the Forum, and people who are obviously spamming the Forum will slowly disappear.

You are certainly welcome to post messages or comments on other topics. (Remember - no ganoderma products!)

Your cooperation is appreciated.

Rose

 

[Jbaez]

Hellos guys! First of all I thank "PinkRose" for the reminder of the rules. To the other guys, if you read my post with attention, you'll see that I am asking for advise regarding a legitimate coffee business start-up, not for proposals on pyramid stuff or network marketing scams. Though I mention the word "idea" in my post, I believe that the context alone should be enough for you to understand that I am not asking the ones that you are offering. Thanks!

My humble regards!

Juan

 

[eldub]

Like sharks smelling blood……

 

[RodriguezKaffe]

Like sharks smelling blood?

So being a business going for an open opportunity makes me a shark? I don't think so I provided info and left the decision up to him. If I chased and convinced, I'd understand the term "shark".

You're confusing being a good businessman online and offline with being a shark. I see an open door, I take it. What I don't do is chase and try to convince people. Quite the opposite of a shark. Warren Buffet owned 5 Network Marketing companies. He obviously saw something and only makes billions. Far from a scam, it's more you all don't understand. Which is okay, you don't have to and you can take the info I give or leave it, just know anything beyond understanding the profession is your opinion, not fact. I don't go around calling your professions scams, so,why do it about networking marketing?

I didn't serve 8+ years as a Marine to get involved with a scam. Just because you don't understand it, doesn't mean you need to make up your own facts about networking marketing.

Stick to the facts or don't say anything at all. It's a simple business model and a good business model when understand correctly.

Maybe this educational YouTube video will help: Learn More (Click on the "Our Industry" tab)

So yes, my company is legitimate. Yes it's legal. Yes it works.

I understand the Gano rule and I'll follow it, which means I cannot talk about my coffee at all. That's fine though, 7 billion people on this planet, one forum isn't going to limit my business from growing. Also being a Mma/Fitness Consultant, that rule also makes about as much sense as banning a multi vitamin. some people can, some people can't. Something I thought was a personal decision.

 

[eldub]

Like sharks smelling blood?

So being a business going for an open opportunity makes me a shark? I don't think so I provided info and left the decision up to him. If I chased and convinced, I'd understand the term "shark".

You're confusing being a good businessman online and offline with being a shark. I see an open door, I take it. What I don't do is chase and try to convince people. Quite the opposite of a shark. Warren Buffet owned 5 Network Marketing companies. He obviously saw something and only makes billions. Far from a scam, it's more you all don't understand. Which is okay, you don't have to and you can take the info I give or leave it, just know anything beyond understanding the profession is your opinion, not fact. I don't go around calling your professions scams, so,why do it about networking marketing?

I didn't serve 8+ years as a Marine to get involved with a scam. Just because you don't understand it, doesn't mean you need to make up your own facts about networking marketing.

Stick to the facts or don't say anything at all. It's a simple business model and a good business model when understand correctly.

Maybe this educational YouTube video will help: Learn More (Click on the "Our Industry" tab)

So yes, my company is legitimate. Yes it's legal. Yes it works.

I understand the Gano rule and I'll follow it, which means I cannot talk about my coffee at all. That's fine though, 7 billion people on this planet, one forum isn't going to limit my business from growing. Also being a Mma/Fitness Consultant, that rule also makes about as much sense as banning a multi vitamin. some people can, some people can't. Something I thought was a personal decision.

I understand network marketing. (I have a degree in marketing management.) I have also watched you chase posters around the forums like a shark in a fish tank. I don't believe it takes anything except a bit of money to get involved with the pyramid marketing you are pushing. And a sucker and his/her money are soon parted, imo.

You keep bringing up your military service, but I'm not sure how that applies here. While I tip my hat to those who choose to serve, I'm not really enamored with our country's military adventurism being waged around the world at tax payers' expense.

 

[JumpinJakJava]

After reading the last few posts, I think we are going to need a "bigger boat" !:decaf:

 

[PinkRose]

What we used to call pyramid schemes, are now called network marketing. People need to be very careful and really research what they're getting into. Being in the Marines for over 8 years doesn't make a person any less likely to become involved in problematic endeavors. Someone who constantly mentions their military service and uses it as a shield to deflect criticism quickly loses credibility.

 

[RodriguezKaffe]

You keep calling it a scheme, do you have a story? Did you experience it or know someone?

I served proud. If me mentioning my service makes you nervous, then I'll stop. I also mention it because I've lead lots of Marines across the world, in OIF, OEF, humanitarian missions, etc. I have a few skill sets that transfer over into business very well.

 

[eldub]

I own a coffee roasting business. Many other members are also owners or employees of coffee related ventures. However, very few of us cruise the boards looking for potential customers or prospects. If we all chased business around the boards as you have been doing, this place wouldn't be near the valuable resource as it is for coffee related questions and concerns, IMO.

As far as your service goes, I just don't see how it has anything to do with the topics at hand.

 

[eldub]

As far as the idea of network marketing being a scheme goes, I get the impression that you know absolutely nothing about coffee. As a matter of fact, selling folks on network marketing appears to be your strong suit. And I don't see the value that multi level marketing adds to the product.

Ask any coffee pro on these boards what they think of the idea of taking one of the best beans in the world, adding foreign substances to it and then "micro-grinding" before sending off to the consumer. IMO, you aren't set up to attract coffee drinking customers, but rather dupes knowing nothing about coffee but desiring to be in business enough to buy into your marketing "scheme."

Btw, what exactly is "micro-grinding"? I've been in the coffee bidness for awhile and have never heard that term. Sounds more like a marketing concept to me rather than a coffee industry term. My guess is that it involves grinding coffee at a very fine setting. Unfortunately coffee ground extremely fine has limited applications, such as for espresso or Turkish coffee.

 

[RodriguezKaffe]

Well I did say I'm a Network Marketing Professional, not a coffee expert. Now, I know all about my coffee, and what makes it special, but other than that I don't have extensive coffee knowledge in other realms.

What our muli-level marketing model adds is the benefit of minimal costs (no big franchise fees), tax benefits (home based business claims), international potential (we are in 35+ countries), time and effort leverage, and residual income. All with a coffee business structure. Rather than finding 10,000 customers, find 10 customers. Then find 10 distributors and teach them to find 10 customers (or more) (10 distributors x 10 customers= 50 customers = leveraged time). Then teach them to find 5-10 distributors. Create a network of 1,000 distributors with 10 customers each, and now you've not only help launched many home based business and gave people the same opportunity you had, but now you've leveraged your time, you have your 10,000 customers and it keeps paying because you've also created new leaders in the business. The leverage, with the right leadership, will grow and create that solid residual income. Would you rather work and work and work to find customers? Or leverage your time, find 10 (or whatever you want) customers, partner with a small group of people, teach them the same, and use leverage. Everyone get's paid the same percentage. It's the volume you create, that you get paid on, that matters. Rather than paying for ads, the middle men, etc, the company pays the distributors. Yes, its hard. But let's be real.... nothing that's worth something is easy.

Starbucks is massive... and we all know their coffee is okay, at best. I know for fact, our coffee is better. Now, they have awesome advertising, which is probably why they are so massively successful. Specialty coffee is growing 20% every year... Coffee is the 2nd most traded commodity on Wallstreet, only second to oil. 255 million American drink coffee... It's a big industry and lots different people like lots of different coffee. What you like, other might not, and vise versa.

our coffee is a class 1 bean. Rated #1 in taste for the past 12 years too. We add healthy ingredients, to make it unique and be able to touch newer industries, like: home business, internet, health & wellness and weight loss industries. For you, it's obviously a no-go, but a lot of people like the idea of being able to be healthier and drink a great coffee at the same time.

Our coffee, when blended with the healthy ingredients and micro ground, is done in a deoxygenated chamber. Once done, it's put straight into the instant sachets and packed in the boxes. The first time that coffee sees, since being ground, air is when that customer or new distributor opens the pouch up. It basically makes it so our instant coffee tastes as fresh as possible. Not everyone has the special tools, or knowledge to make that perfect cup. We give people the next best thing.

A lot of care and science has gone into this coffee. It amazes me that anyone can knock it, without ever trying it. We have a $100+ million manufacturing facility. This isn't some random idea.





P.S [/B]1,000 distributor team pays about 10k/mo.
1,000 distributors with 10 customers each, is 10,000 customers.
10,000 customers on an average of $30/mo is $300,000 business volume.
$300,000 x 10% commission= $30,000/mo income from customers.

 

[PinkRose]

This reminds me of Amway. Lots of people were enticed by the prospect of becoming a distributor and getting a free Winnebago (which never happened)