Creative Compound

Creative Compound

Executive Summary

Cavallino Capital, a financial industry disruptor, moves its homebase from Long Island NY, to Honesdale, an upcoming small town in Wayne County, Pennsylvania.  In an effort to find a small town not far out from the NY Metropolitan area, Honesdale PA proves to be the east coast’s next home for modern day industry disruptors.  A very welcoming town to young entrepreneurs like myself, providing numerous services, opportunities and workspaces for little to no cost gives small business owners a chance at kicking off their startups without the stress of high-priced property and living costs.

Honesdale PA has been preparing its revitalization plan prior to the covid pandemic to prepare for the influx of entrepreneurs that were making their way into the area seeking housing, work from home opportunities, high speed internet, and common work areas that were inviting to the younger business demographic. Cavallino Capital brings Honesdales newest Small Business Incubator, Creative Compound to Main Street in the heart of Honesdale.  The Creative Compound is a self sustaining co-working community providing innovators a common space to work, grow, and succeed.  

The Creative Compound boasts 4 floors of opportunity having a space for everyone to spark an idea. Our Main Street entrance will bring you into Anatomy Craft Coffee Bar, a unique style espresso bar bringing combing modern interest with traditional methods. Anatomy Craft Coffee Bar is stocked with two of the most unique coffee machines in the industry, an artisanal Sicilian medium roasted blend, Miscela D’oro, homemade gelato, local teas, and freshly made pastries and breads made in house by Wildflour Bakehouse; one of the many businesses being incubated within our space. Take a step up into our lounge and cafe that will put you in front of Smash Squared Slider Bar – a mock food truck placed right in the middle of our cafe putting out breakfast, lunch and dinner 7 days a week.  Our second-floor houses CAPES, a Childrens education center offering home schooling and tutoring for young education, as well a 12-desk computer room. Our computer room is equipped to handle basic desk work all the way up to high performance gaming. We offer different levels of computers to suit all needs. Floor three houses 3 private offices, occupied by our management as well as a graphic designer, and film accountant   We encourage our members to network among each other every day to further empower local business growth.  The majority of the building is turnkey, and we will be applying for small business loans and local grants in hopes that we can acquire funds to build out the basement into a music / photography studio, providing a haven for musicians to come create, relax, and build their professional EPKs. In a growing music & arts community, a one stop shop in downtown Honesdale will be a vital stop for local musicians and artists to create professional content at affordable rates.  

With the Creative Compound being Honesdale’s first public, downtown Small Business Incubator, we project that we will be the start of a creative & entrepreneurial movement, quickly becoming a small town for innovators, offering a self-sustaining community that doesn’t rely on corporate America for its sustainability.  We hope to preserve the small town feel while we become a known hub for business growth.

An Industry Of Innovative Disruptors 

The year 2020 in reality became survival of the smartest.  It was a free global break in life, in which a select handful of entrepreneurs thrived off the opportunity that created itself.  Corporate America, the same people who told us to always have three months of emergency savings, fell apart in weeks as worldwide business came to a screeching halt.  Big name companies moving out of their NYC high rises forcing employees to work from home with still no guarantee of return.  The millions of dollars spent in real estate by corporations is being saved, leaving large, overpriced offices vacant with no hope for new tenants, leaving no room for the next age of entrepreneurs.  

Modern disruptors are some of the smartest, most creative individuals resulting from creating business during a global pandemic while corporate America was falling apart.  Only a select few saw the opportunities to make room for this new round of innovation that was inevitable following the worst year in modern history.  Mom’s basement being the home base for most startups, leaves entrepreneurs stressed trying to get their income up on paper, rather than just sliding by.  Living in a town where rent for a small office will run you $1750+ / month, plus an average of $1800/ month for a one bedroom apartment, $450K average price for a single family home that will run you an easy $15K in yearly taxes.  The environment of a populated area is not sustainable for startups.  The stress put on individuals just to be able to pay the bills with no chance of creating a savings account is a serious barrier that needs to be broken.  It’s a barrier of innovation, the government not providing the opportunity for startups to sustain themselves will hold back the future of American business for decades.  

Innovative Distruptors were always among society, some of the biggest companies started in their garages or college dorms.  Big name technology has saturated the market in every single aspect of life.  You can’t go a day without bumping into a Facebook, Amazon, or Apple product.  Companies that started with one person and a dream during a time where the cost of living was more sustainable, are now some of the most powerful people in the world.  Some of us aren’t looking for that kind of enterprise with billions of dollars attached to our name, we’re just looking for a sustainable community where we can work, grow, and succeed, while being able to afford housing and expenses for us and our families to live comfortably. 

Innovative Disruptors would best be described as the 20-35 year old demographic who spends their days avoiding big business, not relying on government handouts, not collecting a paycheck and repaying banks for borrowed money, but who spend every day hustling to do business in a non traditional manner.  We’re creating multiple sources of income from capitalizing on a fast moving technological economy, realizing that we need to bring innovation a few steps back before it can continue forward.  Business ideas need incubation, modern entrepreneurs need a welcoming community to allow the growth of American innovation to happen in a post pandemic economy.

Creative Compound operating as a home base for Honesdale innovation allows us to be the first brand and space to target this specific demographic that has started to saturate the area.  We hold an advantage over a new industry leading us to not have any direct competitors anywhere in the surrounding area.

Business Description

Creative Compound operating as an S-Corporation will house multiple businesses all operating individually as DBA’s generating multiple streams of income under the Cavallino Capital Umbrella all within our 630 Main Street location. Companies that will be operating at Creative Compound:

Anatomy Cafe / Espresso / Gelato Bar & Lounge

Smash Squared -Craft “Build Your Own” Slider Bar, and local drinks

-Live Mic Ent. – Podcast / Broadcast Green screen studio for multi purpose streaming

-Co-Work Community – Multi Tier Co Work space with hot desks, monthly workstations, office suites, with office amenities and opportunities. 

Each of these businesses will operate as individual companies within the Creative Compound maximizing individual company profits and organization. Each company will attract some of their own individual audiences just as much as their audiences will mesh together.  We’re creating a central business area and the demographic we are hunting is our own self demographic.  

Our goals are to create a proof of concept, providing a work environment for entrepreneurs creating a network and community that is self-sustaining and profitable.  As our first year becomes successful, we will be looking to duplicate this concept in other small areas and turn America’s small towns into some of the most innovative areas across the country.

Our operations team is led by founder and owner:

Mike Foschino – Owner & day to day operations manager

27 year old entrepreneur with a unique set of knowledge and skills specializing in fast paced high stress environments thanks to his USAF training as an air traffic controller. Having been through multiple career fields and living experiences around the world, the level of education received is not something that could ever be taught in a classroom setting.  Known for putting together large events while organizing logistics, always problem solving while finding the easiest way to make things happen.  An overall hospitality expert with 13 years of customer service among multiple industries.  Currently owner of Cavallino Capital, Live Mic Music, and a dream to put his culinary skills to work outside of NY, Mike strives to take his knowledge and network into an area that appreciates it more than his current home, Long Island NY. As owner of the Creative Compound as well as several businesses within, Mike will be handling day to day operations of the building ensuring that all individual businesses are running smoothly among each other while the building as a whole is self sustaining and in perfect working order.  Cavallino Capital intends to bring local startups into the compound to offer knowledge, experience and an array of products to the downtown area.

Market Analysis

With the Creative Compound hosting multiple startups, each operational business will target its own market.   

Anatomy CafeBroad Audience

-Male / Female no target age range

-Family friendly menu with options for all ages accepting of all possible food intolerances

-The “Coffee on the go” passerby with easy access to a street level quick serve cafe

-The Morning regulars – catering to the individuals who will come in and enjoy a coffee and treat to stay in our street level lounge or our open space work area with handicap access from the lower level.

-The weekend town explorers – being in the heart of the quaint town, families, children and individuals taking a walk downtown, we provide quick easy access to handmade sweets and craft coffee

-The lunch break coffee – with the increase in work from homers that are moving into the area, we’ll strive to be a mid day pit stop destination for a quick pick me up

Smash Squared – More defined audience

-75% male 25% female target age range 16-55

-Local foodies, one of the largest expanding communities post covid looking for a taste of the local downtown area using some of the counties freshest produce

-Creative Compound Clients who are working within the building

-Residents looking for a new taste in town

-The night owl entrepreneurs- having a co working space operational through dinner hours will attract the startups looking for a workplace outside of normal business hours with an option for a late night meal and drink

-With hopes of obtaining a liquor license, we plan to sell local craft beer, wine and ciders, attracting the younger demographic of consumers who enjoy micro brews from their local areas.

Creative Compound Cowork Community – Specific Audience

Male / Female target age range 16 – 40

-Each age range will hold entrepreneurs at different stages of their ideas

-Industry Disruptors and work from homers in the local area looking for a place away from home to operate startup businesses with minimal overhead, high speed internet, and access to modern office equipment and necessities

-Students of the local area looking for a place to network with industry professionals, providing maximum opportunity for anyone who steps inside the Compound

-Local individuals among the self employed community looking for a welcoming space to host meetings, events, seminars and more

-Out of area business owners looking for an overnight accommodation in an industry community

Live Mic Ent. – Music & Arts Community

– Male / Female creatives target age range 14-30

-Individuals working in any aspect of the creative arts with future plans to provide a state of the art recording studio, photo studio, podcast & broadcast studio, hourly band practice spaces, and a creative lounge where artists can connect, relax and write

-Townships and event organizers looking for event production & entertainment for local happenings

-Start up musicians looking for a one stop shop to start or continue their creative career looking to take advantage of any of our music services 

Competitive Analysis 

o   Coffee

  • Black & Brass – a small grab and go coffee setting
  • Camp Umpies – a local deli offering a great meal alternative for our monthly clients
  • Moka Origins – a local roster who’s coffee we plan to source
  • Level Grounds – a destination coffee shop outside of the downtown area
  • Vinny’s Brooklyn Bagels – local bagel shop outside of the downtown area

o   Food

  •   Paulie’s – a fun night time destination spot for some staple fair food
  •   Scarfalloto’s – local diner catering to mostly locals in a quick homestyle setting
  •   Elegante’s – Local pizzeria for quick grab and go slices
  •   Twisted Rail – local drinkhouse / eatery
  •  Laurel’s – a local homestyle deli
  •   Branko’s – specialty sweets shop
  •  Ba & Me – ethnic specific eatery

o   Co-working

  • Stourbridge Project – an encouraging atmosphere to help promote small businesses in the local area

Creative Compound has a specific demographic of clients / customers, our clientele won’t interfere with any of the local business models in the direct surrounding area. 

Pricing StructureHot DeskWork Station Office Suite
Monthly Rate$200$350$500
Slots2572
Access7am – 7PM24/724/7
Phone BoothsXXX
Conference Room XXX
Kitchenette AccessXXX
Copy / Print StationsXXX
Dedicated Computer XX
Eatery Discount10%25%25%

 

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