KEY CONSIDERATION
A brand new coffee shop opened up nearby. It is
really great. Great coffee. Super sandwiches. The ribs for dinner are fantastic.
And Joe and Ellen, the owners, are the nicest people in the world. They are
always there, ready with a smile. It really impresses me that they are the
servers in the coffee shop, and they always make sure that everything is ok.
They really run a nice place.
Did I mention they are always there? Always.
From 5:00am to whenever they close at night. I have yet to step foot in this
coffee house without seeing one of them, and usually both of them.
STRONGEST ADVANTAGE IN YOUR BUSINESS PLAN-COFFEE
SHOP
A coffee shop is an international institution.
Everyone has fond memories of the coffee house around the corner, the good
friends, the lively conversation.
STRONGEST DISADVANTAGE IN YOUR BUSINESS PLAN COFFEE SHOP
Did I mention Joe and Ellen? Honestly, the
hours can be a real killer. There is just no getting around the fact that you
will be working much longer hours than you are planning for. Even if you plan
for a breakfast/lunch coffee shop, slow times will demand longer hours. And
success almost demands longer hours too. There is just no getting around it.
Be sure to address, too, specifically how you
will deal with slow economic times. These times are simply a business reality,
and they kill most businesses. If you actually have a plan in place to deal with
such adversity, you will be way far ahead. Better yet, if you have experience
dealing with this type of adversity, it is an even bigger plus in your favor.
OVERCOMING THE DISADVANTAGE WITH YOUR BUSINESS
PLAN-COFFEE SHOP
Focus your efforts on a defined geographic area
and a defined market niche.
This is a local business. Out of towners will
have a hard time breaking into your neighborhood. While that is great news, it
is also expected that this is “your” neighborhood. You know the clientele; you
know the traffic flow; you know the demographics. And you can demonstrate all of
this to your banker.
Prove that you have the marketing background
and skill to make the coffee shop successful.
Hit the decks running with a full blown
marketing plan ready. More than anything else, this is what will demonstrate to
the lender/investor that you have what it takes to successfully operate a
successful coffee shop. Your lender may not especially enjoy Premier Costa Rica
Blend Coffee, but she will recognize a great marketing plan.
Devote a minimum of 5-8 pages of your coffee
shop business plan to your specific marketing plan.
- Identify your core clientele.
- Identify the number of your core clientele
in your immediate area.
- Have some initial ads or promotions
developed to demonstrate your skill in this area.
- If you have any local endorsements, flaunt
it.
- Present menus that you have developed.
- Detail how you will get free publicity --
this will be essential for your success.
Base your projections of valid, provable
statistics. No pie in the sky here -- it just won't fly. Business plans for
coffee shops need to be on solid footing.
Examine, too, what was at this location before
your business.
BUYING A COFFEE SHOP FROM ANOTHER OWNER. If
another coffee shop was there, why did they go out of business? It is nice for
them to say they are “retiring”, but unless they are eighty years old it is
not terribly believable. Be sure to get very verifiable bank statements and
tax records.
PICKING UP A COFFEE SHOP AT A CLOSED
LOCATION. This can spell real trouble. Find out why it failed. Make very
certain that you won’t be making the same mistake.
NEW LOCATION. Demographics. Demographics.
Demographics. Don’t believe the ones the mall owner gives you. Go get your
own.
OTHER PLUSSES FROM YOUR BUSINESS PLAN-COFFEE SHOP
This is a business that demands a broad
spectrum of knowledge and experience, from health department regulations to
parking and signage issues, and your business plan-coffee shop needs to
demonstrate your knowledge. There is no on the job training. If you are going to
successfully operate a coffee shop of any size, know your stuff before ever
approaching a lender or investor.
Dig for the local rules and regs that will
affect your business. Prove that you have done so, and you will be heads and
shoulders above all the Newbies.
YOUR LIKELY LENDER/INVESTOR FOR YOUR BUSINESS
PLAN-COFFEE SHOP
The SBA is usually your best bet.
If, however, you are planning on regional or
national expansion, or if this is NOT your first restaurant, check out
appropriate venture capital groups in your area. And be sure to check out the
newest development in venture capital: venture lending.
And if your coffee shop has real regional or
national potential, don’t discount venture capital investment. Not all venture
firms invest solely in high tech. There are hundreds that invest in consumer
oriented businesses.
Identifying Your
Business
There are many ways of defining
your business plan-coffee shop, all of them great, such as:
- Barista coffee shop
- cafe coffee shop
- gourmet collee shop
- coffee shop restaurant
- local coffee shop
- Dutch coffee shop
- Christian coffee shop
- espresso coffee shop
- Italian coffee shop
- Arabica coffee shop
- fair trade coffee shop
- organic coffee shop
- corner coffee shop
- mobile coffee shop
- French coffee shop
- java shop
- independent coffee shop
- coffee house
- coffee business
- coffee roasters
- coffeeshop
- coffee cafes
- espresso shop
- coffee store
- coffee club
- tea shop
Whatever you decide to call, or however you
describe it, your business plan-coffee shop will help get on your way.
