The coffee business has been growing steadily over the years. In fact, there are almost 60,000 coffee businesses across the US compared to just over 50,000 five years ago. But while the industry continues to rise, one thing has become apparent. People are now more concerned about the quality of coffee they take. Customers are shifting towards independent coffee shops that offer quality but affordable coffee. As such, there is probably no better time to open a coffee shop like now. But how do you go about it? Stick with me in the next few minutes as I guide you on how to start a successful coffee business.
Who Can Start a Coffee Shop?
While successful coffee brands like Starbucks make millions of dollars every year, most coffee startups actually fail. The industry is quite competitive, and profit margins for small businesses often stay tight for years before getting a breakthrough. If you are really not after a lot of money however, a good coffee business can get you a modest income. But even then, you don’t get your money easily in this industry. Running a coffee business demands a lot of hard labor. For one, you stand for the vast majority of your working days. You have to clean the shop and equipment often and speak to many people. You can accustom yourself to the business however by interning at another coffee shop for a few weeks. This way you gain vital experience that will help kick start your business with fewer challenges.
If you are certain that a coffee shop is the only business you want to open; invest in learning about the industry. Talk to coffee shop owners whose businesses are successful. Don’t ignore to consult people who are still struggling to run their shops. In most cases, the advice you get from people in the industry can turn out to be the best advice you ever got. They will soon be your competitors after all. Besides speaking to pros; research through magazines and online journals. There are factors that make businesses succeed or fail you only learn by digging deeper into research. For instance, you may want to learn about the legal permits, relevant regulations and laws governing businesses around your city from a professional.
Create Your Business Plan
A business plan helps you plan about your financial needs. It also helps you outline the tools and equipment you need to buy based on your budget. But of more importance, a good plan helps you plan about your expenses and how you will manage to run the business for the first few months. Some businesses actually take up to one year to register profits. And you need a plan to help you know how to navigate through challenges for as long as possible. But as you make your plan, have goals and a vision for your business. Smart goals and an achievable vision are some of the things that motivate business people to succeed.
Choose Services to Offer Based on Your Strength
Most businesses fall into the trap of wanting to attract all sorts of people into their business. They for instance attempt to impress college goers with free Internet and great coffee shop designs. They add a plethora of beverages and alcoholic drinks to attract more customers. Others simply make good decisions like trying to open an extra shop, but they do it at the wrong time. Instead, be smart and capitalize on your strengths. Attract your customers with something exceptional at your shop. With time, you will identify the people who love to drink at your place. And for such people, attract their loyalty with continued good services at all times.
Choosing a Location
In the big cities, finding a location for a coffee shop can be quite a difficult thing to do. Almost all the best locations to start a shop are filled with businesses. And the only places you seem to get almost always don’t look appealing. However, never lose hope in selecting a good location to start your business. In fact, you better hire a good broker to find a coffee shop space at an ideal location. Usually, a place with student housing, normal residences, businesses and buildings could be a great location to open your shop. The idea is to start the business, a distant a way from competitors but close enough for customers to spot your business and come your way.
Open the Shop
After you identify an ideal location, apply for a work permit from the local authorities and open your coffee shop. Ensure you have all the licenses and certificates needed however, so that you can run your business smoothly without any fear of any kind.