If you want to start a coffee shop, chances are that you will be starting more than just a business. Coffee shops are community centers and meeting points for people. This accounts for why starting a coffee shop is a good business to go into. If you want to start a coffee shop, as with any business, you will have to do a lot of careful planning to get started. Here is a step-by-step list for how to start a coffee shop.
1. Dream
Most businesses start with a dream and starting a coffee shop is no different. Think about what you want your coffee shop business to be. Maybe you want a community center with open mic nights or maybe a coffee-2-go shop where rush-hour commuters come in to grab their morning cup of Joe. Make sure that you have your dreams clearly developed before you delve into the business aspects to start a coffee shop.
2. Location
Choosing a good location is the most important aspect to start a coffee shop. Your location will also be directly related to your demographic. For example, if you plan to target college students, you will want to start a coffee shop near a university. When looking at locations, take into account existing competition, parking, and reality prices. Then get all the permits you need to start a coffee shop.
3. Make a Business Plan
You can’t start a coffee shop without a business plan. This is where you will lay out your ideas as well as the amount of money you need to start a coffee shop and how you will make profit.
Calculate how much money you’ll need daily just to break even. This means adding up all monthly expenses (lease cost, insurance, salaries, cost of goods, utilities, etc) then dividing that amount by working days. Then you can calculate how much coffee you’ll need to sell daily and at what cost.
4. Get Funding
Even if you think that you’ve calculated all expenses for starting a coffee shop, you will want to get at least 20% more than you’ve planned. This backup money can be used in case anything goes wrong.
5. Set Up Shop
Once you’ve filed your business with the county clerk or incorporated, you can negotiate the lease including aspects like insurance, parking, electrical systems, and any construction work.
Research the equipment needed to start a coffee shop and then make purchases. Install all equipment as well as flooring, tables, chairs, refrigeration units, and everything else you need to start a coffee shop.
Then, hire a skilled staff for your coffee shop. Before you open, it is recommended that you have a rehearsal opening to make sure that the staff is comfortable and everything is working properly.
6. Advertise
There are many ways to advertise a coffee shop from making business cards to inviting local groups to meet at your shop. Be creative and you’ll get the customers you need to successfully start a coffee shop.