How to Start a… Coffee Shop Business

A Guide to Starting My Own Coffee Shop

Morning commuters, stopping in for their first cup of coffee for the day. Friends pausing from the bustle of life to enjoy lattes and catch up. Students burying themselves in their studies, mugs of coffee and tea in hand. Business people stopping in with their laptops to enjoy a mocha and a sandwich away from the office. All of this a precursor to the evening entertainment, when an acoustic band plays for a packed house of coffee consumers, each enjoying a brownie or lemon bar or slice of pie on the side.

That is the magic of a coffee shop. It can transform a storefront into a neighborhood anchor where people converse and share and learn, all while enjoying the nuances of their coffees or teas or espresso-based drinks.

If you love coffee, and you enjoy being around people, if you thrive on multi-tasking and if there’s a hint of an event planner in you, than opening a coffee shop can be a fulfilling experience.

It can also be a profitable endeavor; according to the Specialty Coffee Association of America’s (SCAA) website, retail sales estimates suggest the total U.S. coffee market was $11.05 billion in 2005.

That’s a strong market to be in! You have a strong customer base in place. And as more Americans become educated about the variety of specialty coffees and espresso-based drinks that are out there to be enjoyed, the market will continue to grow.

Coffee is a good place to be. But it’s also a demanding niche that requires realistic expectations.

Says Susan Krug, a founder and co-owner of Ancora Coffee Roasters in Madison, Wisconsin, “A coffeehouse ownership is like any other successful business … it takes a determined focus, much effort, and a belief that your glass is always half full.”

Starting a coffee shop requires a good chunk of cash—it’s not unrealistic for start-up costs to exceed $100,000. It can require several months, even a year or longer, from deciding to open a shop to actually opening the shop. And the days can be long and demanding.

What You Need to Know:

As a coffee shop owner, you’ll wear multiple hats. You’ll be working as a marketing specialist, sales person, educator, barista and cashier, chef and baker, bus person, manager, purchasing specialist, and equipment mechanic—quite possibly all within the first hour of opening in the morning.

* You are charged first and foremost with supplying high quality drinks on a consistent basis to your customers. You will need to rapidly fill an order for a 16 oz. cup of coffee, (two 20 oz. lattes, one soy with caramel and no whip cream, the other skim with coconut and extra whip), a dry cappuccino and a decaf mocha, all before that morning rush extends out the door.

* You’ll need to keep a critical eye on all operations, ensuring that coffees don’t run low and that there’s an ample supply of beans in the grinder. You’ll need to keep coolers and display cases stocked, meaning that you had inventory and ordering all wrapped up on time.

* If a customer has a problem with her drink, or if an employee messed up an order in the register, or if one of the machines goes down, or if the wi-fi doesn’t seem to work on a customer’s laptop, you’ll need to solve all of these problems quickly and efficiently.

* Every day brings new marketing opportunities, and every day you must be a sales person as well as an educator, answering customer questions so you can better sell your product.

* It is hard work, and it’s time consuming work, and it’s exhausting work.

* You have the exceptional challenge, and reward, of keeping your customers happy.

* As a coffee shop owner, your day-to-day job is to offer superior customer service, keep a clean business, stay organized and follow a plan, and be ever-vigilant for opportunities to improve.

Coffee Shop Details

Startup Cost: $15,000 - $50,000

Potential Earnings: $40,000 - $90,000 per year

Typical Income Per Transaction: $1.00 - $4.00

Advertising: Local flyers, newspaper, frequent shopper card, community magazine, campus postings

Equipment: Coffee brewing equipment, espresso machines

Home Business? No

Staff? Required due to long hours open and 7 day a week operation. Labor is typically low cost

Via : www.explorestartups.com by Jeremy Reis

B. C. Forbes (1880-1954, American Publisher) : Don’t forget until too late that the business of life is not business, but living.