Client: Capitola Book Café
Wendy Mayer-Lochtefeld
1475 41st Avenue
Capitola, CA  95010
www.capitolabookcafe.com

SBDC Consultant: Wallace Berry
Central Coast SBDC
abebroker@cruzio.com

Company Profile - The Capitola Book Café, LLC has been a beloved local gathering place in Santa Cruz County for over 20 years, serving as a general bookstore with a small café and gift shop. In 2006 the owners decided to retire and employee Wendy Mayer-Lochtefeld approached the SBDC to research taking over the bookstore.

Challenges – Mayer-Lochtefeld sought to take over the store but had no idea of how to put together a purchasing proposal, raise investment funds or how to develop a workable ownership transition plan.

Actions Taken - Mayer-Lochtefeld began working with consultant Wallace Berry in March 2006 to review the financial reports and develop an acquisition strategy. Together they outlined three key areas to reach her goals. They were: (1) recruit a group of community investors to raise $175,000, (2) develop a business plan to streamline staffing, and (3) create a new store layout and a budget to make the improvements.

Results - In June 2006 Mayer-Lochtefeld brought her transition business plan to Berry for review and reported she already had verbal community investor commitments of more than $100,000. They also discussed offer scenarios since there were four interested employee buyers, and the transition process began. The Sentinel newspaper recently reported the community success story and highlighted the importance of including “partnerships with the community, writers and other businesses” when developing new business plans.