How to Open a Coffee Shop – Startup Cost, Equipment, Business Plan, Requirements
Are you interested in coffee shop business ideas? Do you want to start a coffee shop with no money? how much do coffee shop owners make? what equipment do I need to open a coffee shop? What is the best place to start up and how much money do I need? Read on.
Most people within the adult age in our country today and also around the world, start their day with a cup of coffee. If this is the case, then there must be some money to be made in this coffee business don’t you agree?
Coffee is the fastest growing industry in the world. There is no way you can regret starting your own coffee shop as far as you are delivering good coffee and customer services.
If you are like some people and you have been thinking for a while how you can cash in on this coffee consumption business and make some money for yourself, worry no more, the solution is here.
A coffee shop is an answer. If you have thought about opening a coffee shop and wished for an article that could treat the subject for you, you don’t have to look any further.
How do I open a coffee shop with a low budget? What do you need to have a coffee shop? How much money does it take to open a coffee shop? How much money can you make from a coffee shop? What is the necessary equipment needed for starting a coffee shop?
Opening a coffee shop can be a very good stream of income for the coffee shop owner. Here are some guidelines to follow to open a coffee shop.
Before we get into the guidelines, it is important to point out that there are different types of coffee shops that one can open. They are:
- The Mobile Coffee Food Truck
- The Coffee Kiosk
- The Coffee Shop with Seating
- The Coffee Shop with Seating and Drive-Thru
For each type of coffee shop that you wish to open, there are primarily three ways or methods to achieve that goal. They are:
· Through a Coffee Franchise
This method involves buying a franchise. In this way, the coffee company which would become the franchisor and you the franchisee would set up the coffee shop for you in a location of their choice for a franchise fee.
· Through Buying an Existing Coffee Shop
In this method, you seek out a coffee shop for sale. In this method, there are some things to be considered, such as the location of the coffee shop and its profitability.
· Through Starting your own Coffee Shop
This method involves starting out your own coffee shop from the scratch. In which you would have to choose a name and do the necessary business registration. This method takes the most effort, offers the most flexibility and indeed the greatest upside.
These are the basic methods through which you can set up your coffee shop. For all these, the fundamentals remain the same regardless of whatever type of coffee shop you choose and the method you decide to follow. Here are the guidelines and steps to follow to open a coffee shop.
1st Step: Get a Business Plan
To determine the success of the coffee shop, the first step to take is to get hold of a well laid out coffee shop startup business plan detailing your understanding of the coffee shop business, your understanding of your target market, your understanding of processes and strategies and your growth projections.
2nd Step: Choose a Location
Location is everything, the success and/or failure of the coffee shop will have a lot to do with the location of the coffee shop. The most important thing to consider in choosing a location for the coffee shop would be visibility and accessibility.
The coffee shop has to be in a location where it would be most visible and accessible to your potential customers. The next point to consider in choosing the location would be the cost of rent.
After due consideration for rent and other expenses, would the coffee shop still be profitable in that location? This is an important question to answer.
Competition should also be considered. The coffee shop, being a new enterprise should not be located in a place where there is stiff competition. Typical locations where there is usually stiff competition are malls.
3rd Step: Procure Equipment for your Coffee Shop
The next step is to procure the necessary and required equipment for your coffee shop. Some of the equipment required for your coffee shop would be such equipment as;
- Espresso Machine
- Coffee Brewer
- Coffee Grinders
4th Step: Procure your Ingredients
You would need to procure the required ingredients for making your coffee. The cost for procuring ingredients would be a recurring one because you would be buying ingredients for making your coffee over the lifetime of the coffee shop.
The required ingredients are:
- Drink ingredients such as syrups
5th Step: Create your Coffee Shop Floor
Create a coffee shop floor that promotes good ambiance and comfort for the customers and the workers.
6th Step: Employ Workers
When you have your coffee shop floor setup, the next step is to employ workers for the coffee shop.
7th Step: Watch your Expenses
To determine the success of the coffee shop you need to watch your expenses, expenses such as wages and worker’s compensation, utilities, insurance, and supplies should be kept at their minimum.
Take control of your life and start your own business. A coffee shop business would be a good and profitable business if run properly, as there is an already existing market that the operator can leverage on since he/she is not creating any new product aside what is already in the market.