O.k. entrepreneurs, listen up! Are you thinking about opening a coffee business, but you don’t know what to look for? Torn between a franchise and going solo as an independent coffee shop?
Opening up a coffee business has its highs and lows – and pros and cons, but what do you need to know before you begin to investigate the coffee business? Here are a few things you should consider before writing that check and diving in.
1. Go with a franchise or become an independent coffee shop owner? Unless you are a master roaster, have a ton of restaurant and café experience, can source your own beans and have the time and money to invest, your best bet would be to go with a franchised concept. Many coffee franchises offer a variety of complementary products and unlimited niche concepts. Remember, you still are a small business owner, and it is still your “locally-owned business.” There are just different ones scattered around town and around the country. The franchisor can supply you with the tools and the products, but it is ultimately up to you to take the initiative to make your business work. In many cases, a franchised concept also has greater brand recognition than an independent coffee business owner might have. Which leads us to the next thing to consider.
2. Do your homework! This may bring back memories of your parents hovering over you after school, but if there can be only one thing to do, it’s do your research! There are many franchised coffee concepts out there, which one suits your personality? Are the products good? Do you know anything about coffee beans? What makes a truly good cup of coffee? If you can’t answer these basic questions, then you have a lot of homework to do, my friend. Once you have found the concepts you are interested in, make a list of your top five and dive into your research. Utilize Google, visit a location if you can, find out as much information before you narrow down your choices. Once you have your choices narrowed down, you will then enter in a more detailed phase where the franchisor will set up regular phone calls, work through spreadsheets, teach you more about the business and how to get started. This is the time to ask all your questions to determine which concept is the right fit for you. In addition to the discovery process, many franchisors offer “Discovery Days” which allow you to visit the headquarters, taste the products and ask the staff detailed questions. Take advantage of this, sometimes this can make or break your decision.
3. Products! Products! Products! More important than location, the products that you will be serving are a top consideration for many potential franchisees. If you do not have a background in coffee or do not have a working knowledge of coffee, the advantage of going with a franchise system is that you will learn the tricks of the trade, have a dedicated staff that is focused on product development, quality and distribution. What makes one concept’s coffee different from another? Not every concept is going to be a “mini-Starbucks.” There are a lot of nuances to coffee, a lot like a fine wine, so doing preliminary research into the products you may be serving and learning about them to see if they are products worth standing behind and serving to your customers is of tantamount importance.
4. Self-motivation – Do you have it? Regardless of the title on your resume or business background, opening up a coffee business is hard work, just like any other job. Oftentimes, as the owner, you are the one who is ultimately responsible for your business’ success or failure. The coffee business should not be taken lightly. With hard work and dedication, many franchisees without real world business experience have succeeded where others with a long list of degrees and accreditations have not. Take time to learn from the franchisor, other franchisees who have been there, and realize that you really don’t know it all. If you are willing to put in the time, learn as much as you can, emulate the success of others, you will make your coffee business dreams a reality.
5. Do you have realistic expectations? The coffee business, like most businesses is constantly fluctuating. This is not a “sit here and wait for the customers to knock the door down” kind of business. If you choose to sign on with a franchise concept, realize that you hold the keys to success. As the one “in the trenches” you must be willing and able to adjust to changing market conditions and increased competition from other concepts and independents. This requires you to stay engaged in your community, be a master networker, and most importantly – stay positive and upbeat amid the business cycles. No one can make you succeed or fail, but yourself