Over the past decade, the coffee shop industry is increasing rapidly. The coffee shop actually treated as a third place outside of work and home to relax. Coffee shop business is one of the best ways to turn your love for coffee into a profit-making business.
Though seemingly coffee shop business looks easy, it is not practically so. The coffee shop is similar to the restaurant business. You need a lot of dedication and creative planning to make it successful. More so, when you are trying to start with low or no money. However, if are ready to put in hard work, it is possible to make a profitable coffee business. Here below find a stepwise guide on starting a coffee shop business with little or no money.
Stepwise Guide to Start a Coffee Business with No or Almost No Money
Business Plan For Coffee Shop Business
The first most serious step that you will need to take is crafting a business plan. The coffee shop is a high-volume and low-transaction business. Crafting a right plan can only move your business towards success. Define your marketing strategy and how you will going to compete with other coffee shops in the locality. Determine your business objective and calculate an expected revenue return.
Developing a detailed business plan will also help you in arranging seed capital. Figure out your establishment cost with interior and equipment. Calculate the working capital cost of raw material, manpower, and miscellaneous expenses.
Research the Market
Take some time off and go for market research. Gather as much information as possible for a better understanding of the taste and demand of the customers in the locality. Getting traction in a competitive business like the coffee shop is vital. You will also need to have a clear understanding of how to get customers initially and a plan for keeping them returning and referring you to their friends.
Name Your Coffee Shop
If you look around nearby your locality or on online, one thing for sure, you will find all successful coffee shops have an attractive name. A catchy and unique name of your coffee shop is a must. Check this article to learn more about how to go about naming a business.
Location For Coffee Shop Business
The location of your coffee shop should be in an easily accessible place. Area demographic plays an important role in selecting space for the coffee shop. According to your plan consider the Square feet area. You will need to understand that the coffee shop is a business of impulse buying and also it’s treated as a destination.
Setting Up Coffee Shop
It is important to create a floor plan prior. Ask an experienced interior for this. You will need to consider places for sitting arrangements, workspace, cash counter, washing sink, and storage. Ensure that your coffee shop workstation layout is such that the barista hardly moves their feet in performing all their coffee making duties, and they are not competing for space with other staff members.
Place the cash counter on the front counter. Stand out of crowd. Try to give a comfortable atmosphere with a unique theme. Concentrate on the inside ambiance and take extreme care on it. A good comfortable sitting arrangement with trendy decoration, cool music, and WiFi connection definitely matters in the coffee shop business. Concentrate on operating procedure and maintenance of books of accounts. Pay attention to the exterior also.
Products For Coffee Shop Business
It is important to select the right products apart from coffee that you will be going to offer. You will need to promote multiple products from your coffee shop. Normally you can keep cakes, cookies, muffins, burgers, energy drinks, ice cream etc. It is advisable to cover the necessary categories, but with limited and strategic offers. Concentrate on pre-make food and leave the custom made to the coffee.
A successful coffee shop gets 40% weekly sale from only coffee. Another 60% comes from products other than coffee. Determine the flavors, size, and types of food that you will be selling from your coffee shop. Remember, every item you add to menu list, creates many multiples of management effort. Fix pricing. Always be careful about the quality of the food that you are offering.
Resources For Coffee Shop Business
While you are opening an independent coffee shop concentrate on fixing vendors. Getting the quality product at a reasonable price is important. Fix reliable vendor or supplier for getting smooth delivery.
As any retail service industry manpower plays a crucial role in the coffee shop business. Hire experience, skilled manpower with a pleasant character. Keep an accountant who is familiar with the point of sale software.
Takeaway Customers For Coffee Shop
Concentrate on takeaway customers. Remember that takeaway customers pay the same price as the sit-down customer, but without raising any of the occupancy costs.
- Understanding the needs you are really catering to your customers will help you to craft Your offer that keeps your customers returning.
- Offer loyalty card to your coffee shop customers. Such as buying five and get six one free.
- Be consistent in serving good quality food to your customers.
- It is advisable to craft a media kit before.
- Pay attention to in-shop branding activity.
- Concentrate on the brand building of your coffee shop.
- Go for some co-branding activity with another reputed brand like sports channel etc.
- Concentrate on media coverage
- Use social media platform carefully.
Opening a coffee shop is hard work. Running a profitable coffee shop is much harder than that. The only true passion for coffee can make this business really successful one.