BUSINESS PLAN

CRE8 ® Vinoteca/Art Gallery 

 

Business Plan – Executive Summary

Our business is called CRE8 ® Vinoteca/Art Gallery, and it  is a neighborhood wine bar/Art Gallery that will be located in Mid-City, Los Angeles. Looking for a facility centrally located and is close to the popular area of LA.

  • We are set to make available assorted red wines, white wines, roses and sparkling wines.

  • as well as nonalcoholic beverages

  • and lastly one crafted beer option, brewed by a local home brewer

  • Rotating 1 food truck available each night (example Taco Tuesday, Ceviche Friday etc)

  • designed to bring artists and patrons from all walks of life to a place where pleasure can be found in the simple things of life. A space that inspires good conversations in an easy, relaxed environment reminding one of home... 

  • The goal is to marry Art and Wine, a match made in heaven... A Wine Bar set in an Art Gallery

  • A birthplace of good conversations, new ideas and new friends.

  • A place where one, with a good glass of wine and surrounded by fine art, can get inspired to CRE8... hence the name

CRE8 ® Vinoteca/Art Gallery is designed and constructed to meet both the health and safety standard as recommended by the local authority. Our customers are going to be treated with good music at all times. We will make provision for live band, performances and jazz etc

This will be played at the background to create the ambiance that our customers will cherish.

We are in business to make profits at the same time give our customers value for their money; we want to give people the opportunity to choose from the wide range of wines as well rotate new comer artists as well as established artists from around the world to exhibit with us.

CRE8 ® Vinoteca/Art Gallery will go all the way to offer a worldwide selection of a wide range variety of high quality wines specializing in Italian varietals.

Our goal is to make every day a day of celebration, networking and socializing for as many people that will patronize our wine bar and Art Gallery. We will put plans in place to make our Wine Bar/Art Gallery lively 7 days a week from 5pm-1am 

We will ensure that all our employees are selected from a pool of qualified people living in and around Los Angeles – California.  We will make sure that we take all the members of our workforce through the required training that will position them to meet the expectation of the company.

Our Product

CRE8 ® Vinoteca/Art Gallery is going to operate a standard wine bar that will make available every changing products. We will ensure that we go all the way to make available assorted wines and drinks in our bar.

These are some of the products that will be found in our bar;

  • Serving wine for immediate consumption

  • Offering wine tasting for patrons

  • Assorted red and white wines 

  • ONE locally crafted Beer

  • Roses and sparkling wines

  • Non – alcoholic beverages

Art Gallery

  • rotating art exhibits from national and international new comers as well as established artists

  • art installations

  • video art

  • art openings

  • art talks

  • art forums

  • all sorts of art classes/wine tastings

  • live drawing classes

  • Indie Movie Premiers/Screenings 

Our Vision Statement

Our vision is to establish a hip, urban, classy, fun and unique environment through being the only wine bar and Art Gallery in all of Los Angeles, CA. Which will be the melting pot of art lovers and all lovers of wine, alcoholic and non – alcoholic drinks who appreciate being surrounded by art or simply want to enjoy a fine glass of wine.

  • Our Mission Statement

Our mission is to establish a wine bar business that will make available selected brands of wine and non – alcoholic drinks from around the world to our highly esteemed customers and a place where people can network and socialize.

  • Our Business Structure

CRE8 ® Vinoteca/Art Gallery is a business that is established to be a pacesetter in the United States of America. We have the goal of assembling a team of dedicated workforce who will give our customers excellent customer service at all times, a team that will ensure that we will continue to have repeated customers and a team that will indeed make us the melting pot for wine lovers and socialites in Los Angeles.

In view of the above, we have been able to follow suits on what is obtainable in standard wine bars in the US and plan on minimizing the structure. We will work hard to ensure that we only attract people with the right mindset to help us achieve our business goals and objectives in record time.

Below is the business structure that we will build CRE8 ® Vinoteca/Art Gallery ;

  • Chief Executive Officer (Owner)

  • Wine Manager

  • Sommelier / Bartender / Baristas

  • Accountants / Cashiers

  • DJ/Musicians 

  • Greeters / Customer Service Agent / Table Attendant

  • Cleaners

  • Security Officer

Roles and Responsibilities

Chief Executive Officer – CEO:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountability; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.

  • Responsible for providing direction for the business

  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy

  • Defines job positions for recruitment and managing interviewing process

  • Carries out staff induction for new team members

  • Responsible for training, evaluation and assessment of employees

  • Designs job descriptions with KPI to drive performance management for clients

  • Responsible for signing checks and documents on behalf of the company

  • Evaluates the success of the organization

Sommelier / Bar Manager:

  • Responsible for managing the daily activities in the wine bar

  • Ensures that the facility is in tip top shape and conducive enough to welcome customers

  • Interfaces with vendors

  • Reports to the Chief Executive Officer

  • Attends to Customers complains and inquiries

  • Prepares budget and reports for the organization

  • Responsible for Training and Development in the organization

  • Responsible for procuring of raw materials and equipment

  • Handles any other duty as assigned by the CEO

Bartender / Baristas:

  • Interacts with customers, takes orders for drinks and snacks.

  • Present small bar menu.

  • Checks identification of the guest to make sure they meet age requirements for purchase of alcohol and tobacco products.

  • Prepares alcohol or non-alcohol beverages.

  • Services Wine and Beer to guests.

  • Arranges bottles and glasses to make attractive displays.

  • Assesses customers’ needs and preferences and make recommendations

  • Makes lists of supplies in conjunction with the bar manager / management

  • Prepares inventory or purchase requisitions as needed to replenish supplies.

  • Ensures that the assigned bar area is fully equipped with tools and products needed for Mixing beverages and serving guests.

Accountant / Cashier:

  • Responsible for preparing financial reports, budgets, and financial statements for the organization

  • Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.

  • Responsible for financial forecasting and risks analysis.

  • Performs cash management, general ledger accounting, and financial reporting for one or more properties.

  • Responsible for developing and managing financial systems and policies

  • Responsible for administering payrolls

  • Ensures compliance with taxation legislation

  • Handles all financial transactions for the company

  • Serves as internal auditor for the company

Disc Jockey (DJ)

  • Ensures that customers are entertained with the best of music per time

  • Manage the sound system for the bar

  • In charge of music collections

  • Provides music at events.

  • Responsible for developing music playlists.

  • Interacts with public at parties.

  • Responsible for mixing music tracks.

Greeters / Customer Service Agent / Table Attendant

  • Opens doors and welcomes customers

  • Ensures that customers feel relaxed and at home

  • Handle customers inquiries

  • Assesses customers’ needs and preferences and make recommendations

  • Ability to Sell or influence others for up selling and suggestive selling.

  • Provides recommendations and suggestions to guest for choosing Drinks and Snacks.

  • Serves customers in a friendly and helpful manner.

  • Provides guidance to guests on resort activities, dining options and general resort and Regional information.

  • Determine when a customer has had too much alcohol and if required refusing any further serving on a polite way.

  • Demonstrates a thorough knowledge of food and beverage products, menus and Promotions

  • Handles any other duty as assigned by the bar manager

Cleaners:

  • Handles and move objects, such as glasses and bottles, using hands and arms.

  • Cleans up after customers and clean work area.

  • Clears ashtrays as and when required.

  • Washes glassware and utensils after each use.

  • Maintains a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required.

  • Ensures that toiletries and supplies don’t run out of stock

  • Handles any other duty as assigned by the bar manager.

Security Officer

  • Ensures that the facility is secured at all time

  • Controls traffic and organize parking

  • Gives security tips to staff members from time to time

  • Patrols around the building on a 24 hours basis

  • Submits security reports weekly

  • Any other duty as assigned by the restaurant manager

Gallery Manager:

  • Responsible for managing the daily activities in the art gallery

  • Ensures that proper records of art works are kept and our racks and warehouse does not run out of products

  • Ensures that the art gallery facility is in tip top shape and art works are properly arranged and easy to locate

  • Controls goods distribution and supply inventory

  • Supervises the workforce

Merchandise Manager

  • Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams

  • Responsible for the purchase of art works (paintings, drawings, prints, sculptures, photography and other merchandise) for the organization

  • Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors

Sales and Marketing Manager

  • Sources for avenues for us to exhibit our artworks and generate sales

  • Manages external research and coordinates all the internal sources of information to retain the organizations’ best customers and attract new ones

  • Models demographic information and analyzes the volumes of transaction data generated by customer purchases

  • Identifies, prioritizes, and reaches out to new partners, and business opportunities

  • Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.

  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients

  • Develops, executes and evaluates new plans for expanding sales

  • Documents all customer contact and information

  • Helps to increase sales and growth for the company

Information Technologist

  • Manages the organizations website

  • Handles the eCommerce aspect of the business

  • Responsible for installing and maintenance of computer software and hardware for the organization

  • Manages logistics and supply chain software, Web servers, e-commerce software and POS systems

  • Manages the organization’s CCTV

  • Handles any other technological and IT related duties.

 

Wine Bar/Art Gallery Business Plan – SWOT Analysis

CRE8 ® Vinoteca/Art Gallery is established with the aim of becoming the melting point for socialites and lovers of wines and Art in Los Angles which is why we have taken our time to critically analyze and conduct SWOT analysis to be able to identify areas we need to work on if indeed we want to achieve our business goal.

No investor would want to invest his or hard earned money without assessing the risks involved in the venture and also his or her capability to deliver and make profits from the business. The ability to make profits from any business and to favorably compete with competitors in the industry starts with the result you get from your SWOT analysis.

In view of that,  CRE8 ® Vinoteca/Art Gallery  together with an HR specialist generated a summary of the results to help conduct SWOT analysis for the business;

  • Strength:

Our strength as a company is excellence and detailed customer service. Wide range of assorted wine both from Italy and other parts of the world, beverages, and Art. Excellent facility, excellent ambiance and perfect location for a bar in metropolitan city like Los Angeles.

  • Weakness:

Our perceived weakness could be that we are new business, and we may not have the financial muscle to sustain the kind of publicity we want to give our business.

  • Opportunities:

There are unlimited business opportunities available to wine bar/Art Gallery businesses in busy cities like Los Angeles; Los Angeles is one of the cities in the world where social life is at its peak. Another opportunity that we stand to leverage on is the fact that we can easily order any brand of wine and drinks directly from the manufacturer with little or no stress.

  • Threat:

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new wine bar or even a night club or restaurant in same location where our target market exist and who may want to adopt same business model like us.

 

Wine Bar/Art Gallery Business Plan – MARKET ANALYSIS

  • Market Trends

In recent time, the societal shift away from alcoholic drinks toward healthier lifestyles is to a larger extent contributing to a steady decline in the amount of household spending allocated to trips to bars and nightclubs plus the fact that nobody wants to be caught driving while drunk

The recent market trend in the bar industry is such that the increase in the number of consumers choosing packaged beverages for home consumption rather than at bars or nightclubs is also on the increase. This trend is surely going to have lasting impacts on both the bar business and nightclub business alike. Even though the trend of wine bars in the United States was not well received in the 1980s, they began to gain popularity in the 90s.

In the early part of the millennium, wine bars became very popular and started popping up in many metropolitan neighborhoods across major cities in the United States of America. Wine bars now compete with the local hangouts such as coffee shops and local bars. The wine bar sensation offers the taste before you buy philosophy.

No doubt, wine bars put a new spin on wine tasting. They seek to remove the association of wine with high – end clientele and overwhelming wine lists and replace it with a more casual and relaxing atmosphere. Many of these wine bars are furnished with nooks and cozy booths encased in rich colors and plush surroundings in hopes their guests will linger and buy our Art which will be exhibited throughout the place.

Wine bars look to embrace the intellectual stimulation linked to wine and offer an alternative to the bar scene. The phlegmatic environment lends itself to a good socializing setting with a less crowded feel and more intimate appeal.

In recent time, wine bars have begun to incorporate a larger variety of food choices as part of their product offerings. Traditionally associated with cheeses and desserts, wine bars are looking to combine wine with appetizer-sized gourmet selections to increase the enjoyment their customers stands to gain when they patronize them.

The concept brings the tastes of fancy restaurants to a dressed-down setting. So also, it is now common to find restaurant owners and chefs take the opposite approach and use wine bars as an opportunity for expansion.

  • Our Target Market

Before starting our wine bar business in Los Angeles – California, we conducted a market survey and feasibility studies and we are certain that there is a wide range of people who would patronize our bar on a regular basis. In view of that, we have created strategies that will enable us reach out to various group of people who are likely going to become our loyal customer. Below are our target market;

  • Corporate Executives

  • Politicians

  • Celebrities

  • Socialites

  • Business People

  • Sports Men and Women

  • Government Officials

  • College Students

  • Tourists

Our Competitive Advantage

We are mindful of the fact that there are stiffer competition in the wines bars and nightclub industry in the United States of America; hence we will hire the best possible business developer to handle our sales and marketing.

Part of what is going to be our selling point in Los Angeles is the fact that we operate a unique mixture of a standard wine bar plus Art Gallery, in a perfect location for the kind of business that we run and also the fact that bar facility is highly secured. Another factor that will give CRE8 ® Vinoteca/Art Gallery competitive edge is that we have enough packing space to accommodate the numbers of customers our bar can contain per time, offering exclusive membership option, a selection of international wines at low, medium to high cost.. a wide selection for everyone.

We are not ruling out the fact that we have a dedicated workforce that are willing to go the extra mile to give our customers full value for their money and time whenever the patronize our Hot Spot.

We are aware  of the fact that we are the only wine bar in MidTown Los Angeles that sells a wide variety of wines, crafted beers, combined with unique, urban Art which will be to our advantage in the market place and also the robust experience of our Team at CRE8 ® Vinoteca/Art Gallery.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups wine bars and Art Gallery) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

 

Wine Bar Business Plan – SALES AND MARKETING STRATEGY

  • Marketing Strategy and Sales Strategy

Top of the list on our marketing and sale strategy document is generating a buzz for our Art Gallery/Wine Bar via word-of-mouth and leveraging on road show.

The model of wine bar we intend running is a neighborhood bar hence we are not going to rely only on the conventional ways of marketing. We don’t have the plans to run paid adverts on Local TV stations, local radio stations or even local newspaper but we will sure maximize every other available means such as social media to promote our business.

Our unique selling proposition is that we have a large collection of Italian wines, local bread beer and stunning art. In view of that, we are going to adopt the following marketing strategies to ensure that we do not only attract customers but generate repeated sales from them;

Part of the marketing and sales strategies that we will adopt are;

  • Open our wine bar in a grand style with a party for all.

  • Introduce our wine bar by sending introductory letters alongside our brochure to organizations, households and key stake holders in Los Angeles – California

  • Ensure that we have a wide range of wines, a few beers, and non-alcoholic drinks at all times.

  • Make use of attractive hand bills to create awareness and also to give direction to our Hot Spot

  • Position our signage / flexi banners at strategic places

  • Position our greeters to welcome and direct potential customers

  • Create a loyalty/Membership benefit plan that will enable us to reward our regular customers

  • Engage on road shows within our neighborhood to create awareness for our bar.

Sources of Income

CRE8 ® Vinoteca/Art Gallery is established with the aim of maximizing profits in the wine bar/Art Gallery and night club industry and we are going to go all the way to ensure that we do all it takes to attract our target market. The sources of income for CRE8 ® Vinoteca/Art Gallery are stated below;

  • Serving wine for immediate consumption

  • Offering wine tasting for patrons

  • Collaborating with Food Trucks

  • Sale of assorted red and white wines from around the world

  • Sale of local beer 

  • Sale of Roses and sparkling wines

  • Sale of Non – alcoholic beverages

  • Art (photography/paintings/sculptures/prints/clothing/accessories/candles/collection books/hand crafted jewelry/hand crafted furniture/mixed media)

Sales Forecast 

One thing is certain when it comes to wine bars, if your wine bar is well stocked and centrally positioned, you will always attract customers sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Los Angeles California and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.

We have been able to critically examine the wine bar market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in Los Angeles – CA.

Below is the sales projection for CRE8 ® Vinoteca/Art Gallery , it is based on the location of our business and other factors as it relates to wine bars start – ups in the United States;

  • First Fiscal Year-: $250,000

  • Second Fiscal Year-: $500,000

  • Third Fiscal Year-: $900,000

N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and we won’t be any major competitor offering same products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

  • Our Pricing Strategy

The prices of  our Wines, Locally Crafted Beers, and Non – alcoholic beverages will be what is obtainable in the market. In fact we will try as much as we can to sell below the industry’s average so as to attract loads of customers.

We also have plans in place to discount our products once in a while and also to reward our loyal customers.

We are well positioned to take on the available market in Los Angeles, CA and we are quite optimistic that we will meet our set target of generating enough income from the first six months of operation and grow the business and our clientele base.

  • Payment Options

Our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our pub;

  • Payment by cash

  • Payment via Point of Sale (POS) Machine

  • Payment via online bank transfer (online payment portal)

  • Payment via Mobile money

In view of the above we will chose banking platforms that will help us achieve our payment plans without any difficulty.

 

Wine Bar/Art Gallery Business Plan – Publicity and Advertising Strategy

CRE8 ® Vinoteca/Art Gallery is a neighborhood bar and Art Gallery and will ensure that we create the buzz that will make people in our area know about us and what we do. We are quite aware that one of the effective ways of promoting our Hot Spot is to create special internal promotions which in turn will help us achieve our aim of leveraging on word of mouth publicity.

Here are the platforms we intend leveraging on to promote and advertise CRE8 ® Vinoteca/Art Gallery ;

  • Encourage the use of word of mouth publicity from our loyal customers

  • Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook ,Twitter, LinkedIn, Google+  and other platforms (music online forums) to promote our business.

  • Ensure that we position our banners and billboards in strategic positions all around Los Angeles – CA

  • Distribute our fliers and handbills in target areas in and around our neighborhood

  • Contact corporate organizations, households, landlord associations and political parties by calling them up and informing them of CRE8 ® Vinoteca/Art Gallery and the products we sell

  • Advertise our wine bar/Art Gallery business in our official website and employ strategies that will help us pull traffic to the site

  • Brand all our official cars and vans and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.

Start – Up Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale we want to undertake. If we intend to go big by renting a place, then we would need a good amount of capital as we would need to ensure that all employees are well taken care of, and that our facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on our goals, vision and aspirations for our business.

The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a wine bar/Art Gallery business; it might differ in other countries due to the value of their money.

This is what it would cost us to start CRE8 ® Vinoteca/Art Gallery in the United of America;

  • The Total Fee for Registering the Business in Los Angeles, CA – $750.

  • Legal expenses for obtaining licenses and permits as well as the accounting services totaling – $1,200.

  • Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580.

  • Cost for hiring Consultant – $2,500.

  • Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.

  • Cost of accounting software, CRM software and Payroll Software – $15,000

  • Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of – $105,600.

  • Cost for facility remodeling – $25,000.

  • Other start-up expenses including stationery – $500

  • Phone and utility deposits – ($2,500)

  • Operational cost for the first 3 months (salaries of employees, payments of bills ect) – $30,000

  • The cost for Start-up inventory – $16,027

  • Storage hardware (bins, utensil rack, shelves, glasses case) – $3,720

  • The cost for counter area equipment (counter top, sink, ice machine, wine refrigerators etc.) – $9,500

  • Cost for serving area equipment ( glasses, flatware) – $3,000

  • Cost for store equipment (cash register, security, ventilation, signage) – $13,750

  • Office equipment and furniture – $4,000

  • The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $5,000.

  • The cost of Launching a Website – $600

  • The cost for our grand opening party – $5,000

  • Miscellaneous – $2,500

We would need an estimate of $300,000 to successfully launch our wine bar/Art Gallery in MidTown Los Angeles, CA. This amount includes the salary of all employees and the CEO (Owner) for 3 months.

Generating Funding / Startup Capital for CRE8 ® Vinoteca/Art Gallery

  • Investors

  • Apply for loan from my Banks

 

Wine Bar Business Plan – Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting CRE8 ® Vinoteca/Art Gallery is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to properly position our Wine bar/Art Gallery, ensure adequate security, availability of various brand of wines and art with excellent customer service.

CRE8 ® Vinoteca/Art Gallery will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

  • Business Name Availability Check

  • Business Registration

  • Opening of Corporate Bank Accounts

  • Securing Point of Sales (POS) Machines

  • Opening Mobile Money Accounts

  • Opening Online Payment Platforms

  • Application and Obtaining Tax Payer’s ID

  • Application for business license and permit

  • Purchase of Insurance for the Business

  • Renting of facility and remodeling the facility

  • Conducting Feasibility Studies: Completed

  • Generating capital from family members

  • Applications for Loan from the bank

  • Writing of Business Plan: In Progress

  • Drafting of Employee’s Handbook

  • Drafting of Contract Documents and other relevant Legal Documents

  • Design of The Company’s Logo

  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials

  • Recruitment of employees

  • Purchase of the Needed furniture, electronic appliances, office appliances and bar accessories

  • Creating Official Website for the Company

  • Creating Awareness for the business both online and in the neighborhood

  • Health and Safety and Fire Safety Arrangement (License)

  • Opening party / launching party planning

  • Establishing business relationship with vendors – suppliers of all our needed wine, alcoholic and non – alcoholic drinks, small chops and Artists

  • YouTube
  • Instagram