coffee shop

How to Start a Gourmet Coffee Business

small business

Gourmet Coffee Business is popular with over 3 billion cups of coffee drank every day. Most are home brewed while others are sold in restaurants, pubs, hotels and coffee shops. An entrepreneur interested in opening a shop should have a passion for the business to succeed.

Size or scope of the business depends on funding and business plan. It is possible to start on a shoestring budget however the entrepreneur needs to save judiciously and carry out most aspects of the job.

Gourmet Coffee Business

Types of gourmet coffee

Coffee lovers have a choice of different flavors or grades of coffee. Coffee beans are seed of a cherry harvested from the coffee tree. There are basically two ways of extracting the seed wet or dry process.

Two types of coffee obtained from the process are Robusta or Arabica. Robusta are cheap priced highly caffeinated while Arabica is considered gourmet because of the amazing aroma, desirable flavor, and best taste. Available in many flavors Arabica gourmet coffee is either caffeinated or decaffeinated.

Flavors in Gourmet coffee

The type of flavor depends on the brewer’s choice. Gourmet style drinks include Kona, Giorgio, Javalution, Sanfransisco, Gevalia. Flavors include peppermint, chocolate, vanilla, almond, mint.

Things to consider in coffee shop

There are a few things to consider before opening a coffee shop. First write a business plan, carry out a feasibility study. Next understand what the competitors are doing and compare prices. Then learn the trade and approach a merchant or commercial bank for long term loans.

It is important to register a business name, find a good location for the shop, hire competent staff, find credible source of raw materials, and purchase equipment. Finally develop a marketing plan and open the shop for business.

Steps to start a Gourmet Coffee Business

  1. write a business plan
  2. carry out a feasibility study
  3. study the completion
  4. compare prices
  5. learn the trade
  6. approach a merchant or commercial bank
  7. register a business name
  8. find a good location
  9. hire competent staff
  10. find credible source of raw materials
  11. purchase equipment
  12. develop a marketing plan
  13.  

How to Open a Coffee Shop

1 Write a coffee shop business plan

The most important aspect towards starting a coffee shop is a business plan. A business plan covers aspects of profitability, funding, target market. Others include study of competitors, sales or revenue projections, milestones and goals.

To quickly validate the plan first draft a one page plan. This will offer a better insight to the challenges and pitch page. Make sure the plan has a clear objective on how to compete favorable and differentiate your services.

Define the structure, type of customer base and bean verity you wish to offer. If you can’t write a business plan there are many resources available. You can hire someone to write the plan or find free samples online.

Business plan parameters

  • profitability
  • funding
  • target market
  • study of competitors
  • sales or revenue projections
  • milestones and goals
  • challenges and pitch page
  • a clear objective
  • compete favorable
  • differentiate your services
  • define the structure
  • type of customer base
  • bean verity to offer

2. Coffee Shop Location

The wrong location will lead to instant failure even before the business starts. You can choose a location with already established coffee shops if you are ready to face the competition.

Another way is to find a busy location with lots of vehicular and human traffic. Make sure the location is easily accessible, highly visible with large space. Other good locations are near pedestrian locations, near offices or factories.

3. Design the shop

An attractive shop will encourage more patronage. Hire an interior decorator with knowledge of coffee shop business. Make sure the shop is attractive, comfortable and spacy.

Organize the floor space, seating area and aesthetics. On the other hand if there is no money to hire an interior decorator or design the floor plan online. There are good site to do this like floorplanner, giffy or autodesk homestyler.

4. Labor

Hire staff with prerequisite experience in the coffee business. Staff requirements are servers, brewer, manager and accountant or store manager. However a small coffee shop requires only 2 or 3 people to run smoothly. To save costs cut down on staff and perform many roles in the establishment.

5. Funding

Any startup require seed funding to move from conception to actualization. Start with personal target savings then approach friends and family. Use the comprehensive business plan to approach merchant or commercial banks.

Apply for long term low interest loans and provide part of amount and collateral. Other fund sources are investors, partners, venture capitalists, crowdfunding.

6. Business registration and raw materials

Source quality raw materials directly from coffee farms or through a wholesaler. Register the business as a limited liability company or sole proprietorship. Get tax identification number and insurance cover.

7. Coffee making equipment

Coffee making equipment for coffee shop owners depends on the funding. A cash strapped entrepreneur can start with a simple 2lb roaster. Coffee shop equipment are refrigeration system, containers, ovens and toasters. More are quality espresso machine, automatic drip coffee maker, cooking device, industrial coffee grinder and miscellaneous.

Coffee shop equipment

  • roaster
  • refrigeration system
  • containers
  • ovens
  • toasters
  • espresso machine
  • automatic drip coffee maker
  • cooking device
  • industrial coffee grinder
  • miscellaneous

Marketing

To attract customers to the shop you need an effective marketing strategy. Use electronic media like television, radio and internet. Others are flyers, posters, signboards, banners and billboards.

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