If you are considering opening a coffee shop, coffee store, espresso bar, or starting a coffee business (I use all these terms interchangeably), then there are multiple factors to consider, and details to attend to, in order to maximize your chances for success. In this article I’ll be concentrating on how to develop your idea into an operating business.
How to position your business for success before you ever open your doors. I will address how to run that business and achieve profitability in an upcoming article.
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Most people begin planning their new coffee business based upon their “dream,” what they would ideally like to own. While this is a normal tendency, it may not be the most prudent way to start. Much time and energy can be wasted working on “your plan,” when in reality, you may not be able to afford what you desire.
As a consultant, I’ve seen this happen many times over the past 19 years. Often, new entrepreneurs get swept away by their dream, and end up over-extending themselves financially, only to run out of money before they can open their doors for business. Those who do manage to get open are typically left with little or no operating capital. Because few businesses open on Monday and are profitable on Tuesday, having sufficient operating capital will be necessary to pay your bills, employees, and yourself, until the business can generate some profit.