Every day, Americans collectively drink over 400 million cups of coffee.This isn’t surprising, really. Everywhere you look, you’ll see at least one coffee shop, be it a Starbucks or a local brand. If you have a nose for entrepreneurship, you’re certainly smelling an opportunity here. With the copious coffee consumption, starting a coffee shop can be a smart move. To understand just how much Americans love their brew, take a look at this comprehensive collection of coffee statistics here.
As long as the shop sells good coffee, customers will come.But before you can actualize your plans, you need to draw a coffee shop business plan. If you don’t know how to do that, you’ve come to the right place. Read on for expert insight.
Identify Your Vision
Starting a coffee shop might seem like a pretty straightforward venture. Find a commercial space, brew the coffee, and start selling. Well, that’s largely true, but you need to start with a vision. Beyond turning a profit, what do you want to achieve with your business? Consumers love coffee shops that sell good coffee, yes, but you know what they love more? A coffee shop with a great story or mission.
If you’re starting a coffee shop that will serve your local community, perhaps you try to tackle a social issue as well. If there are lots of homeless people, for instance, you can pledge to donate a few cents for every cup of coffee your shop sell. Automatically, your vision becomes not only to sell great coffee but also to end homelessness in your community.
Understand Your Market
There are a couple of important aspects you need to know about the market your coffee shop will serve. What’s the nature of the competition, for example? There’s a good chance there are other coffee shops in your target market. This information enables you to find ways to differentiate yourself from the pack from early on.
Also, what’s the size of the target market? Even when there are a number of coffee shops, a large target market offers good opportunities for new coffee shops to find customers. But if the consumer market is so small, starting a coffee shop might not be the best idea.
Find a Fitting Business Name
Of course, your coffee shop needs a name. In fact, it needs a great name, because a great name is good for branding and marketing. As such, take your time to come up with various names and settle on the one that you think will give the shop a branding edge. You want a business name that’s relevant, easy to memorize, and shouldn’t belong to another business that’s already registered.
Draw Financial Plans
A business plan should flesh out the capital requirements and financial projections (short term and long term) of the business. This calls for some research and expertise since you want to have a clear idea of how much money you’ll need to set up the business and fund it until it’s profitable.
Financial projections will help you have an idea of how much money the business will be making at various times in the future.
A Coffee Shop Business Plan That Works
A coffee shop business plan is a must-have, whether you’re starting a tiny business or a large one. With this guide, you now know some of the most important details you ought to include in your plan.
Let’s drink (some coffee) to your impending success, and be sure to keep an eye on our blog for more advice.