Challenge

Delaware Nation Industries (DNI) was awarded the Native American Business Development Institute (NABDI) grant to explore the possibility of partnering with an established, successful coffee and breakroom supply company (“Coffee Company”). The purpose of this NABDI Grant funded study was to determine the feasibility of a business venture and its ability to create jobs and stimulate economic activity for the Nation.

More specifically, Capacity Consulting, Inc. was hired to define opportunities for a public sector sales division to increase profits and whether the Tribe should establish a coffee manufacturing facility to produce and distribute coffee products. The public sector sales division would fuel the production facility and stimulate the regional economy.

Process

The 6-month study coordinated with the established Coffee Company to provide accurate data and projections of a possible joint venture. Additionally, dozens of interviews were conducted with public sector employees to investigate whether an out-of-the-box approach to the public sector market was possible. A business plan was also provided to the Tribe for a startup coffee manufacturing and distribution center.

Recommendations

Expanding the Coffee Company’s operations to a Tribal facility was contingent on available market share within the public sector. While there is a public sector opportunity for the Tribe, it is minimal and will require the Tribe to pursue the established procedures for award application and/or pursue joint ventures and sub-contracting. Additionally, the assumed opportunity to supply breakroom supplies via federal contracts does not exist which significantly decreases the overall public sector opportunity.

Capacity Consulting, Inc. did not recommend that the Tribe pursue a business venture with the Coffee Company. Additionally, the Coffee Company’s current sales could not sustain a dedicated production facility; a public sector sales division would have potentially made it more feasible. However, to provide value and future opportunities for the Tribe, Capacity Consulting, Inc. provided a business plan and financial pro-formas for a startup coffee manufacturing and distribution center.