Laura Thompson
Crowdfunding Q&A

Cadence Coffee & Cycle

Seeking $15,000 for a combined coffee house and bike service/repair shop. What'll they think of next?

By - Nov 12th, 2015 01:33 pm
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Cadence Coffee & Cycle

Cadence Coffee & Cycle

Seth Ogden and Rick Goyette are partnering to start a combined coffee and bicycle shop. To help them get off the ground, they used the crowdfunding platform KivaZip and launched a campaign to raise $10,000 in micro-loans, and the drive met its goal. I talked to them about their new venture.

What is your business idea? 

Seth: Cadence Coffee and Cycle is a local coffee shop focused on brewing the most authentic coffee drinks with no added sugar or syrups and to provide quick bicycle services to the local Milwaukee community.

How did you come up with the idea?

Seth: I have a passion for local small businesses and have always wanted to start one of my own. Rick and I met through a mutual friend. Both of us wanted to start a local coffee shop and we both agreed on two things. One, there is a lot of knowledge and work that goes into an amazing cup of coffee and most coffee shops today have a low product standard. Instead of raising the standard, many coffee shops add syrups and spices to cover up the mediocre taste of their coffee. Two, we both love cycling and support others that choose to commute or exercise by bicycle.

Rick: We first started by wanting to build and operate coffee trikes at local farmers markets and events. Things just kind of took off from there.  Jordan [Missiaen] from 3rd Coast Bike Works was going to build our trikes but after we started to plan our project we realized it would be better to start a coffee shop and run the coffee trikes out of it. We also built a good relationship with Jordan and found out he was looking for a new space to open his custom fabrication shop. The idea for Cadence Coffee and Cycle was born.

How much money are you trying to fundraise?

Seth: We are looking to raise $15,000. The $10,000 from KivaZip and $5,000 from WWBIC [The Wisconsin Women’s Business Initiative Corporation].

What will the funds be used for?

Seth: The money we are raising will be used to secure our lease at the Pedal Milwaukee Building (3618 W. Pierce St, Milwaukee, WI 53215), next to the Urban Ecology center and Hank Aaron Trail. We will also use the money to buy inventory, some equipment and build out our café space (tables, chairs, etc.).

What services/strategies are you using to fundraise?

Seth: We are using KivaZip to show other lenders (WWBIC and FundMilwaukee) that we have the support of our family and friends. As Kiva’s “About” page says, “Kiva Zip uses an entrepreneur’s network as a measure of creditworthiness. Borrowers invite family and friends to start their fundraising. After reaching a designated threshold, the Kiva Zip community takes care of the rest. It’s a simple, transparent way to help small businesses.” We chose KivaZip because it gives us a way for friends and family to loan us money and a system for us to pay them back over 3 years with 0 percent interest.

In addition, we will also be applying for a loan with WWBIC and we will apply for grants from the city to help build out our space, create a logo and brand, and to build our space.

What kind of support are the Wisconsin Bike Fed and Third Coast Bike Works providing as you start this business? 

Seth and Rick: We are all complimentary businesses and see a benefit by having each other in the same building.  Jordan started his custom cargo bicycle business two years ago and has outgrown his current warehouse space. This is a great way for him to showcase his work and to stay active in the bicycle community. Jordan will be staffing and supplying the bicycle service station and helping bring in bike shop inventory. The Wisconsin Bike Fed was already located at the Pedal Milwaukee Building but desired to open a bicycle shop to serve and be more of a presence in the local Silver City community. Another big help has come from Tom Schuler. He owns the Pedal Milwaukee Building and has been more then accommodating with helping all of our businesses create and build a collective working space.

Are there any other organizations you are working with to start this business? 

Seth: Salvatore Strehlow from Colliers International has been our property broker and has spent numerous hours with our team looking for locations, attending team meetings, and helping us find funding. He is also an active member of the FundMilwaukee group and has invited us to attend their meetings. We have also joined the FundMilwaukee group and plan to reach out to them if we need additional funding.

We have also partnered with local coffee roasters Valentine’s Coffee and Anodyne Coffee. We plan to brew and sell both coffee roasts once opened.

Tom Schuler is the landlord and has been a great partner. He has been open to our ideas and is very supportive of our businesses.

Amber [Miller] at WWBIC has also been a huge support. She is helping us submit our WWBIC loan and also encouraged us to do our KivaZip campaign.

We have been working with Celia [Benton] from Layton Boulevard West Neighbors. She has been a huge help when it comes to getting small business grants and she has also helped by connecting us to the Layton Boulevard West community.

What are the risks you face?

Seth: Location… Currently there are no independent coffee shops in this neighborhood. We are in a busy area but not directly on a main road. We have heard from everyone we have talked to in the neighborhood that they desire a coffee shop and would be more than supportive.

Why do you think this project will be successful? 

Seth: We are very well connected with the local bike, coffee and entrepreneurship communities in Milwaukee and almost everyone we know is supportive of our idea. Also, our team is very well rounded. Seth has retail and food management experience. Rick has worked in coffee for over three years and trained baristas. Jordan has been working on bikes and at bike shops either doing mechanical work or fabrication for the last 8 years.

When do you hope it to be up and running? 

Mid-March, because the dead of winter is not the best time to open a coffee and bike shop.

Will the bicycle services or repairs be provided in the coffee shop itself or in a separate part of the building? 

All in one. You can get your bike worked on and drink a cup of coffee as you sit on your computer doing work. Open space concept.

Categories: Business, Crowdfunding

One thought on “Crowdfunding Q&A: Cadence Coffee & Cycle”

  1. Juli Kaufmann says:

    Love the concept and target location. You are talking with lots of good folks. I wish you best of luck. Thanks for pursuing your dreams so we can all benefit.

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