Coffee Shop Business Plan

A Coffee Shop Business Plan is what you need if you are thinking of starting your own coffee diner. Coffee is in big demand all over the world – in fact, it is the second greatest revenue generating product in international commerce, next only to petroleum. A coffee diner can therefore be very lucrative – but only if you do it right. If you don't, it'll only be a waste of your time, resources and money, and a setback for your dreams. So a comprehensive coffee shop business plan would help you to do things right from the very beginning.

Or perhaps you already own a coffee diner, and are wondering what you can do to boost sales. Or maybe you want to buy an already existing coffee business, and want to make sure that you run it right. You might even want to add a coffee angle to your existing business. Whatever your purpose, however you may want to become involved with the this business, you'll most likely want to have a coffee shop business plan in place before taking the first step.

There are certain vital questions to be considered. Will it be really worth it? Will you have adequate resources to see it through till you succeed? There are hundreds of varieties of coffee and coffee-based drinks; what drinks should you make? What equipment should you buy? What kind of location should you look for? Do you go it independent, or do you get a franchise from some big player? In short, you don't know too many things about the coffee business; where do you start? All reasons to have a Coffee Shop Business Plan in place.

First, you need to think about finance. Either you take a loan from the bank or you impress investors so they buy a stake in your business. In either case, you need to write an informed, coherent coffee shop business plan. This should include what you intend to do, how you intend to implement it, what kind of start-up finances you need, what level of sales you're looking at, and how you plan to pay the (private or institutional) investors back. For a drive-thru, you should need something between $40,000 and $150,000. for a full-fledged coffee diner, however, it could be anything between $60,000 and $350,000, depending on your scale of operation.

One piece of advice that a hotel management guru once gave to his readers is no less applicable to the coffee shop business. There are three things that are of the greatest importance in setting up a coffee diner – location, location and location. Nothing can be more important than that. Choose your potential site based on estimates about the possible daily footfall from the right kind of people. Opening a shop in a crowded location doesn't guarantee automatic success. You need to operate in a place that's crowded by the right kind of people.

When designing your shop, consult an architect who has some experience in the matter. Looks are important, but designing for looks alone will be a disaster. You need to hire someone who knows the in-s and out-s of the coffee shop business, to be able to design for maximum efficiency and practicality.

How do you go about making money? Remember that your ultimate target is profit, not volume of sales. It is not how much you sell, but how much you have left over after deducting costs. Prepare a coffee shop business plan to sell as many espresso-based drinks as you can, more than any other item. Because that's where the money is. You'll see more profit selling $500 worth of espresso than selling $900 of food or coffee beans. Cut to a minimum food items in you repertoire. Keep only pastries and similar stuff, and discard sandwiches, soups and any other item that does not demand a coffee to go with it.

Train your staff properly in the basics of espresso-style drink preparation. Most start-up coffee shop businesses fail because they don't do enough in this regard. Improved taste of your drinks and speed and efficiency of service can only follow substantial training.

Those are some of the reasons why it is vitally important to have a coffee shop business plan in place before you consider investing in the business. Some of the pitfalls that confront new and inexperienced entrants are – a lack of effective marketing strategies, impractical shop design, poor taste of product, a lack of focus etc. Planning ahead with expert guidance can get rid of most of these. The independent espresso business is growing at a huge rate at present, and if you do it right you can expect to look at a profit of anywhere between $50,000 and $250,000 per year.

Books & Reference Materials for Coffee Shop Business Plans & More

  • Start and Run a Coffee Bar
  • How to Open a Financially Successful Coffee, Espresso & Tea Shop
  • FabJob Guide to Become a Coffee House Owner
  • ESPRESSO! Starting and Running Your Own Specialty Coffee Business

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