Experts estimate that approximately 2.5 billion cups of coffee are consumed globally each day. Sales in the ready-to-drink market, which includes coffee shops, are expected to increase by 67% between now and 2022. Furthermore, coffee and other ready-to-drink shops exhibit incredible resilience in volatile markets, reducing some of the uncertainty associated with small business ownership. If you’ve been considering combining your love of coffee with your entrepreneurial spirit, it might be time to open a coffee shop.
What You’ll Need to Start a Coffee Shop
Aside from a love of that sweet java, you’ll need a few items to get your shop up and running. Here are some things you need think about when opening a coffee shop:
1.Create a coffee shop business plan.
Writing a business plan is one of the most important steps you’ll take toward opening your coffee shop. This document specifies:
What your company does and who it serves
How will it be profitable?
Your intended market (primary customer demographics)
Your adversaries
Estimated sales and revenue
Goals and milestones
Maintain a lean business plan.
We recommend writing a one-page pitch before diving into a traditional, long-form business plan. This allows you to quickly validate your business idea and get a good sense of who your market is, how you’re going to reach them, and how you’re going to differentiate yourself from your competitors.
Will you only serve pour-overs? Will you only use the most expensive coffee grinders and bean varieties?
Will you also offer baked goods on your menu?
This one-page pitch , similar to a thorough executive summary, is a faster, more efficient way to plan your business
2. Locate the ideal location for your coffee shop.
You’ll need the right location for your coffee shop if you want to be successful.
You’re looking for something that meets the following criteria:
a.centrally located and easily accessible
b.It is highly visible and receives a lot of foot traffic.
c.A space that corresponds to your vision
d.dream location will take time.
Keep in mind that effective restaurant spaces are in high demand and difficult to come by. It may take some time to find the ideal location, but for a business that benefits from easy access and casual traffic, it is worthwhile to take your time.
3.Design a floor plan
A well-thought-out and welcoming floor plan is essential for a coffee shop. Customers should be able to form a line, employees should have the materials they require within reach for quick access, and there should be a comfortable seating area. A good floor plan, like finding a good location, will take some time to create.
“walk yourself through every scenario you can think of.” “What should you have nearby if you’re making coffee?” What do you want in a seating area if you’re a customer? Visualize everything you can and start writing down your ideas.”
4.Put money aside for personal expenses.
When calculating startup costs, don’t forget to factor in your personal expenses as well as those of your business. Your entire time and energy will be devoted to your new business, which may not be profitable for six months, even if you start bringing in revenue right away.
So, plan ahead of time. Saving enough money to cover your personal expenses for at least six months, if not longer. You’ll need to decide whether you’ll be able to run your coffee shop while also working another job or side gig, or if you’ll be able to focus solely on your new venture.
You should also be familiar with the concept of cash flow. Given that more than half of all businesses fail are profitable on paper when they fail, you’ll want to make sure you know how much cash you’ll need on hand.
5.Do your homework before purchasing anything.
Keep a list or spreadsheet of all the startup expenses you’re looking at so you can compare prices while you’re in the planning and funding stages and working through your finances.
Before you buy, get at least two price quotes for each item so you don’t overpay for necessities or recurring costs. Make use of the internet to find the best prices on everything from comfortable chairs to espresso machines.
6.Network to your heart’s content
Having a great location and brewing excellent coffee will only get you so far. You must network in order to stay connected to the area and attract more customers. Consider becoming a member of the local chamber of commerce, a business association, or partnering with a local charity. Make yourself known in your community and secure committed partners long before you open your doors.
7.Create a marketing strategy before you open your doors.
You’re already behind if you start marketing the day you open. On the first day, you want people to be excited to come in. You should plan your marketing strategy and start advertising to potential customers several months before you open.
Consider these low-cost marketing options:
a.Collaboration with other local businesses by offering free coffee in exchange for on-site advertising.
Use social media to communicate directly with your customers.
b.Participate in local events by offering free specialty coffee samples in the run-up to your grand opening.
Make a small direct mail or email campaign in which coupons are distributed to local residents or businesses.
Inform everyone, including the media, about your plans to open the shop.
8.Give your business’s exterior some attention.
This can be a simple marketing tool that not only generates excitement but also helps to establish a brand for your location.
Don’t just look at the inside of the building.
You’re likely to be concerned about every detail of your shop, from what paintings to hang on the walls to the point of sale system (POS System) you’ll use. That being said, it is very easy to overlook the exterior of your shop or coffee cart, which is in direct contrast to selecting a location with high foot traffic.
“Pay attention to the landscaping, signage, and exterior appearance because that’s the first thing people see.” Some people base their decision to come in or not on their first impression of the building, so make it count.” .. Ivan Hoo
You will start to create a buzz in your community by creating a clean and unique exterior. People will begin to wonder who is establishing a business there. Everything you do to draw attention to your coffee shop can be used as a marketing tool.
9.Maintain a positive attitude
You will face challenges in getting your shop off the ground, just like any other business. When things aren’t going your way, it’s critical to maintain a positive attitude. It not only improves your outlook, but it also demonstrates strong leadership to your employees and a welcoming presence to customers.
Fake it if necessary. If you develop the habit of maintaining an optimistic attitude, even if it isn’t entirely genuine at first, you’ll eventually teach yourself to be upbeat and will keep those around you upbeat and ready to work.
10.Hire gradually
You need help with the register, customer service, and beverage preparation, but don’t hire too many people too quickly. Renson recommends hiring a few friends or neighbours to help you out for the first few weeks. Bring on new employees gradually, as needed.
It can be difficult to find reliable employees. You don’t know how well someone fits until they’re on the floor, no matter how well they do in an interview. Renson advises keeping a close eye on the register and not being afraid to let people go if they are hurting the business.