Risks, Summary


The risks involved with starting Randall Crater are:

  • Will there be a demand for the services offered by Randall Crater in New York’s East Hampton?
  • Will the popularity of the Internet continue to grow, or is the Internet a fad?
  • Will individuals be willing to pay for the service Randall Crater offers?
  • Will the cost of accessing the Internet from home drop so significantly that there will not be a market for Internet Cafes such as Randall Crater?

Company Summary

Randall Crater, soon to be located in East Hampton, New York, will offer the community easy and affordable access to the Internet. Randall Crater will provide full access to email, WWW, FTP, Usenet and other Internet applications such as Telnet and Gopher. Randall Crater will also provide customers with a unique and innovative environment for enjoying great coffee, specialty beverages, and bakery items.

Randall Crater will appeal to individuals of all ages and backgrounds. The instructional Internet classes, and the helpful staff that Randall Crater provides, will appeal to the audience that does not associate themselves with the computer age. This educational aspect will attract younger and elderly members of the community who are rapidly gaining interest in the unique resources that online communications have to offer. The downtown location will provide business people with convenient access to their morning coffee and online needs.

Company Ownership

Randall Crater is a privately held closed corporation. Randall Crater, the founder of Randall Crater, is the majority owner.

Start-up Summary

Randall Crater’s start-up costs will cover coffee making equipment, site renovation and modification, capital to cover losses in the first year, and the communications equipment necessary to get its customers online.

The communications equipment necessary to provide Randall Crater’s customers with a high-speed connection to the Internet and the services it has to offer make up a large portion of the start-up costs. These costs will include the computer terminals and all costs associated with their set-up. Costs will also be designated for the purchase of one black & white laser printer, a colour inkjet printer and a scanner.

In addition, costs will be allocated for the purchase of coffee making equipment. One espresso machine, an automatic coffee grinder, and minor additional equipment will be purchased from Cafe Brothers.

The site at Marigold Avenue will require funds for renovation and modification. A single estimated figure will be allocated for this purpose. The renovation/modification cost estimate will include the costs associated with preparing the site for opening business.

Start-up Expenses
Legal $500
Stationery etc. $500
Brochures $500
Consultants $2,000
Insurance $700
Rent $1,445
4-group Automatic Coffee Machine $10,700
Bean Grinder $795
Computer Systems (x11) $24,310
Communication Lines $840
Fixtures/Re-model $20,000
Total Start-up Expenses $62,290
Start-up Assets Needed
Cash Balance on Starting Date $24,000
Start-up Inventory $2,000
Other Current Assets $0
Total Current Assets $26,000
Long-term Assets $0
Total Assets $26,000
Total Requirements $88,290
Cale Bruckner $19,000
Luke Walsh $12,000
Doug Wilson $12,000
John Underwood $12,000
Total Investment $55,000
Current Liabilities
Accounts Payable $0
Current Borrowing $9,290
Other Current Liabilities $0
Current Liabilities $9,290
Long-term Liabilities $24,000
Total Liabilities $33,290
Loss at Start-up ($62,290)
Total Capital ($7,290)
Total Capital and Liabilities $26,000

Randall BP 2