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 long hours are needed to run the business? These are the kinds of questions a future business owner will want to think about carefully.
Start with a Business Plan for the Coffee House
According to the U.S. Small Business Association (SBA), "Planning is critical to successfully starting and building a business." 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.
- Every potential business owner should consider making a business plan. This plan tells and shows everything possible about the planned business. This report will include start-up financing, daily operation plans, marketing ideas, and more.
- Potential coffee shop business owners can look online, at the library, or at a book vendor for information on making a formal business plan. The Small Business Association website has a good free Small Business Planner online.
- A business plan includes details about the business, including location (perhaps the most important decision), city regulations, start-up costs, advertising ideas, hourly cost of doing business (overhead), top income possible (considering customer seating, employees, etc.), and so on.
- A business plan may be necessary for city approval, business financing with a bank loan, 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 small town coffee shop in the Pacific Northwest, here are some key points for having success with a 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.
Article Update 2011:
Diane's coffee house continues to grow in popularity. Her business has now relocated to an larger building, just down the street from the original shop. Her cool coffee shop now offers a full deli menu, daily food specials, and weekly live music.
Resources
Special thanks to Diane, the owner of Battle Grounds Coffee House (personal interview at Battle Grounds Coffee)
The author, Janienne Jennrich, has operated a small business and has a degree in Consumer Psychology with an emphasis on Business and Marketing.
Janienne Jennrich - Janienne Jennrich, Topic Editor for Kids & Teen Parties and for Hair, is an award-winning freelance writer & webmaster.
