Become a Coffee Entrepreneur: An Easy Guide to Starting Your Own Coffee Business
If you are like most millennials, the chances of starting your day with a cup of coffee are high. If you are like us, you might be considering the possibility of combining your love for coffee with your love for creating business opportunities. If this is the case, you are in the right place. The coffee industry is constantly growing. This is why you see small shops everywhere across cities, rubbing shoulders with big names like Starbucks!
Every coffee shop in the country tends to always be filled with customers having a great feel of coffee, lattes, espresso, beverages, pastries, and every other attraction in coffee shops.
Experts say that people consume about 2.5 billion cups of coffee daily. The ready-to-drink industry which includes coffee shops is expected to grow by up to 67% in the year 2022. It only makes sense that you’d want to tap into this booming market. Wondering what you need to start your coffee shop? Here are tips for you:
Research: you’ll need a lot of money and time to start a coffee shop. You must take your time to research and understand how to run a successful coffee shop. Learn best practices by reaching out to business owners to hear their experiences. Visit different shops to get ideas on what yours will be like. Their best and worst sides will help you determine your unique selling proposition. You also need to research your customer base; who are your targets? What are their demands? What’s the best time for them? Good knowledge of your customers will help with planning, choosing your prices, designing your menu, and every other aspect of the business.
Pick a concept: start thinking of a concept the moment you decide to open a coffee shop. Your concept is the theme of your café which gives your shop a competitive advantage over other cafés around. Here are some of the things to consider to determine your concept:
- Who are your target customers
- How much are those customers willing to pay for a cup of coffee?
- Do you wish to sell foods or snacks alongside coffee?
- Do you wish to offer sit-in or take out services?
Create your business plan: this is one of the most important steps you must take before you start your shop. The business plan must include the following:
- What business are you venturing into and who are your targets?
- How will you make a profit from this business?
- Your competitors
- Envision your revenue and sales prospects
- Set goals and milestones.
Don’t make the mistake of creating a regular, long-form business plan. You are better off with a one-page pitch. This will help you to make sense of your business idea quickly and give you the right perspective of your market. You’ll also understand how to reach your market and determine your USP with this plan.
Location: an idea of why coffee shops have become so popular will help you determine the right location for your business. You need to understand that coffee shops are considered great places for socialization and hanging out with friends. People also visit coffee shops to pass time, read, or surf the internet while enjoying a cup of their favorite coffee brew or a snack. You’ll find people from different demographics in coffee shops going about their daily businesses while patronizing the shop. This is why you need to select a central location for your shop. You must choose a convenient location for every customer. You must also consider the rental cost. We recommend that you settle for a space in front of a store as they are less expensive and easily accessible.
Look for the best supplies at highly competitive rates: review rates from different suppliers to know which of them offers the best deal. Remember that the type of coffee you sell may also be your unique selling proposition. Find out which brew your competitors sell and think about ways to make yours better at affordable rates. Source for a better deal for the same product. This way, you can be sure to offer quality at the best prices.