How to Start a Coffee House Business
Espressos, cappuccinos and mocha lattes; these are just a few of the specialty coffees that many consumers enjoy each day. While you may wonder how a small business can compete with a multimillion-dollar franchise, many customers prefer a local coffee house for the coziness, culture and ambience it can provide. For the savvy coffee house owner, this can mean big profits on a daily basis.
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Instructions
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Learn about the coffee industry. Attend trade shows and subscribe to periodicals to get the latest information about operating a coffee house.
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Consider working in a coffee house while you get your finances and paperwork together. A part-time job in a coffee house will provide you with the training you will need to operate your own coffee house. This will also give you some inside perspective about the business.
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Create your business plan. In order to qualify for a small business loan you will have to show the lender how you plan to operate the business. Your business plan should include costs for leasing or purchasing a building, supplies, equipment and furnishings, as well as your business license and insurance.
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Talk to a loan officer to see if you qualify for a small business loan. According to Espresso 101, as of October 2010 the average cost of a 1,200-square-foot, sit-down coffee bar was usually from $200,000 to $375,000. Depending on your credit score, you will typically need to put down 10 to 20 percent of this amount to qualify for your loan.
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Find a location for your coffee shop. Choose a location that is highly visible and has good traffic flow. Consider a location on the side of the road that has the highest traffic flow during the peak hours when your customers will want coffee. This will allow them to easily turn into your parking lot and get back out on the road.
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Launch your marketing plan. Alert your potential customers that your coffee house will soon open by advertising in local newspapers, handing out fliers and advertising through social media.
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Tips & Warnings
To avoid losing potential customers that may not drink coffee, but might enjoy a cup of tea or the pastries you serve, consider a business name that lets people know that you are more than a coffee house.
References
- Photo Credit kaffeecreme image by creative studio from Fotolia.com
