Start a Cool Coffee House Business
How to Plan, Open & Run a Successful Java Shop or Cafe
Feb 16, 2008
Starting a coffee shop business and being one’s own boss can seem very romantic and glamorous. It’s easy to imagine peaceful days chatting with customers, hanging out in a beautiful location, making friends, and bringing in big money for doing a job that sounds fun: making delicious coffee or tea drinks and making people happy.
While it is good to have a positive outlook, one must also consider the possible downsides to being a business owner. What if the coffee shop business is not successful right away? What if finances are tight and there are no paychecks for a few months? What if longer hours are needed to run the business than originally thought? These are the kinds of things a future business owner needs to consider in the hard light of reality.
Following are ideas for forming the dream of how to start a coffee shop business into a realistic plan and, hopefully, a money making success.
Start with a Business Plan for the Coffee House
- Every new business owner-to-be should consider making a business plan, which is a report that shows everything possible about the planned business, including start up busness financing, and how it will operate.
- Potential coffee shop business owners can look online, at the library, or at a book vendor for information on making a formal business plan.
- A business plan includes everything about the business, including location (perhaps the most important decision), city regulations, start-up costs, an advertising plan, hourly cost of doing business (overhead), top income possible (considering customer seating, employees, etc.), and such.
- A business plan may be necessary for business financing with a bank loan, city approval, etc., as well as acting as a “map” for running the coffee business in the future.
Business Advice from a Coffee House Owner
According to Diane, owner of a busy medium-sized coffee shop in a small town in the Pacific Northwest, here are some key considerations when making a success of one's coffee house:
- Talk to your city and find out about impact fees, regulations, and permit obligations.
- Be in love with your product; get the best product you can get.
- Know your customers; know their wants and needs and the demographics of the clientele you will be serving.
- Be involved in your community; support the local sports programs with fundraiser advertising, for instance.
What Customers Like in a Local Coffee Shop
According to customers, some reasons for the popularity of this particular coffee house are:
- Friendly small-town service
- Good drinks and food
- Fun and funky atmosphere set in an old house
- Good location in the center of town
- Pleasant mix of background music
- Outside seating for sunny days
- Frequent customer reward stamp-cards
- Comfortable seating
- Free Wi-Fi for getting work and emailing accomplished
A business plan should address these types of issues and more. What will be the style of the new coffee business? How about decor? Music? Prices? Offerings? Furniture? Hours? Employees?
Other Things to Think About Before Starting One's Own Small Business
- Owning a business is often more work than it is glamorous.
- Expect to put in a lot of hours to get a business running, especially in the first year.
- Consider finances carefully. Permits cost money. Machinery breaks. Employees quit.
- Most new small businesses fail in the first year. Have a back-up plan or two, especially business financing.
- Rejoice at small steps like the first dollar earned, the first month making a profit, and the one-hundredth customer. These memories will help get through difficulties.Instant success is rare. Owners need tough skins and a can-do attitude.Watch new trends in the industry. Read "Who Moved My Cheese?," by Spencer Johnson, a short book perfect for entreprenuers. The book is about attitudes toward change in life, especially at work. (Amazon.com)
For more information on small business, see Best Funky Portland Coffee Houses, Advertising a Small Town Business, and Small Business Advertising Ideas.
Whatever sort of business one decides is the best fit for them, most all of the advice above is applicable. Be excited, be wise, and best of luck for success.
Resources
Special thanks to the owner of Battle Grounds Coffee House
 |
 |
 |
 |
