There are six basics that you will need to meet in order to greatly improve your chances of success. Without these basics, you will be closed before you know it.
1 – Have Sufficient Capital
Have at least six month’s expected revenue for working capital to draw from AFTER you open. Then have additional 3-6 months revenue in reserves to tap into should you need it. This can be a combination of lines of credit and cash in the bank. This is separate from other start-up capital.
2 – Have an Excellent Location, with Excellent Signage, Demographics and Traffic Count
This is probably the most overlooked element of this industry.
Time and time again, I see folks full of gusto and passion for this business, and for entrepreneurship only to pick a bad location for whatever reason. I was one of them. You cannot make a bad location a good one.
3 – Quality Products
Do not skimp on your products because something is cheaper. You will regret it because your customers will notice that you are no better than any chain or any other indie and your bottom line will reflect it.
4 – Have Consistency
Train your staff and keep them trained to make the best drinks in town. If you and your staff are trained prior to opening you are on the right track.
5 – Have Exceptional Service
You have to remember that every customer is GOLD and deserves a smile. Don’t ever forget that customers make it possible for you to make a living.
6 – Have A Plan
You need a business plan to PLAN your future in the specialty coffee business by. This plan can be used to present to your lender, landlord, possible investors or partners. If you fail to plan you plan to fail, plain and simple.
And when all of the above is under control, control your COGS, payroll and fixed expenses as best as you can and you are on a road to success!
In my Ebook titled “Tony’s Coffee Shop Business Plan”, I take you step by step from concept to opening your coffee shop. Along the way you have valuable information from a business plan tailored specifically for a coffee shop to my guideline extra that in itself is worth the price of the entire package. Do yourself a favor and don’t get into this endeavor without the guided help of a coffee professional. The coffee business is complex and has to be approached by a unique angle. Your profits will thank you!