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How do I start a coffee shop business?
Starting a small business takes a lot of courage. But, as they say, courage does not pay the bills. To be successful – to stay in business – you need more than courage. You need a combination of hard work, skill, perseverance, and lots of luck.
Some things you need to consider:
- "How can I support my family while I build up by business?"
- "What are my abilities?"
- "Is there a market for the product or service I have chosen?"
- "How long will it take this business to reach the financial goal I have?"
You may want to read the article "How to Start a New Business Successfully" http://www.powerhomebiz.com/vol51/launch.htm , which lists six steps to launch a new business successfully:
1. Provide a benefit.
2. Determine the fit with your market.
3. Right timing is everything
4. Be ready to support your business
5. Develop a blueprint for success
6. Market, market, market
To give you ideas on what exactly do you need to start your own business, here are ten things you need to know before launching your own business “10 Things You Need to Know When Starting Your Own Home Business” http://www.powerhomebiz.com/052006/startingbiz.htm .
I recommend that you read the following books:
- What No One Ever Tells You About Starting Your Own Business : Real Life Start-Up Advice from 101 Successful Entrepreneurs
- Starting From Scratch: How To Start A Business When You Don't Have Money
- If You're Clueless About Starting Your Own Business and Want to Know More
- On the Move : How to Succeed and Survive As an Entrepreneur
- How to Make 1000 Mistakes in Business and Still Succeed
As for starting a coffee shop business, you may want to learn about how Starbucks made it -- because chances are high that your shop will be competing with this chain. From the article "Learning from Starbucks: 10 Lessons for Small Businesses" http://www.powerhomebiz.com/vol144/starbucks.htm
"Starbucks is a tremendous success because it capitalized on a concept that hadn’t existed before – the coffeehouse as a gathering place. It is not just a place to get a cup of gourmet coffee, but it has become a center for socializing and intellectual discussion, particularly among students and young urban professionals. Starbucks created a unique offering that was relevant and differentiated. It turned an ordinary and humble product into an extraordinary experience that customers are willing to embrace."
This is a business that requires capital - it cannot be started on a $5,000 budget. In fact, according to Bellissimo Coffee Infogroup, http://www.espresso101.com/coffee_faq.html you will need the following amounts to start your coffee shop business:
Coffee Cart: Usual start-up cost is $20,000–$25,000 to open and stock.
Kiosk: Depending on the size and what menu items are offered, it will usually cost between $50,000–$60,000.
Coffee Drive-Thru: The cost of opening a drive-thru espresso business operation can vary dramatically. We know of people who have opened very small units for less than $30,000. These units are usually manned by one operator, are on wheels, and skirted. A beautiful drive-thru can cost between $80,000–$180,000. There are many variables.
Sit Down: The cost of opening a sit-down coffee shop is comparable to the cost of opening an upscale drive-thru. Start-up costs for most 1200 sq. ft. coffee bars average $150,000 to $300,000.
You may want to read the following articles:
So, You Wanna Open a Coffee Shop http://www.restaurantreport.com/Departments/c_coffeeshop.html
EspressoBusiness.com (has a nice section on what to avoid in terms of coffee shop business) http://www.espressobusiness.com/
Coffee Shop Business Plan (this is not free but it is always best to start a business with a business plan) http://www.planmagic.com/business_plan/coffee_shop_business_plan.html
Links to various resources on starting a coffee business http://www.aboutcoffee.net/linkster/linkster.php?CID=9
For in-depth information, you may want to read the following books:
- Complete Idiot's Guide to Starting and Running a Coffee Bar (The Complete Idiot's Guide) by Linda Formichelli
- Start and Run a Coffee Bar (Start & Run a) by Tom Matzen, Marybeth Harrison
- How to Open a Financially Successful Coffee, Espresso & Tea Shop by Elizabeth Godsmark
- FabJob Guide to Become a Coffee House Owner (FabJob Guides) by Tom Hennessey
Coffee Shop Business Plan - Finding Your Usp
USP stands for unique selling proposition or point. It is the one thing that really makes one business stand out from another and without a USP your coffee shop business plan is worthless.
For starters, actually go to your competition. I know this doesn't sound like something you're going to enjoy doing, but consider it research. Go look and see how they have their establishments setup. See what kind of menus they have. A coffee shop is more than just coffee. The more competition you check out, the better an idea you'll have of how to compete.
Next, you want to study their ad campaigns. Everybody advertises differently based on their USP, but they all do have things in common. Look for those similarities. There are some basic things that you're going to want to convey to your target market. The primary things are:
The quality of the coffee and food
The atmosphere of the shop
The price
A lot of people say that there's not a big difference between one coffee and another. Those people are NOT real coffee drinkers. Trust me...there is a difference. If you're looking to cater to the guy driving an 18 wheeler on route 9, he's going to expect a different quality of coffee than the guy who has on a $2,000 suit and doesn't buy anything off the rack. You have to know who your target market is and what kind of coffee they're going to expect.
Finding your USP is really as simple as looking at your product, in your case, your coffee shop, and deciding what it is about it that makes it different from everybody else
About the Author
Find out the best tactics for your Coffee Shop Business Plan. Learn how to get your own coffee shop started for less than $25,000!!
Growing Your Business with Paid to Shop and Paid Online
