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You Can Brew Up A Winning Coffee Shop Business Plan

By Shaunta Pleasant
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Expert Author Shaunta Pleasant

Just about everyone loves a good cup of coffee, and there is no doubt that a well run coffee shop can be a lucrative and profitable enterprise.

As with many kinds of businesses, of course, the difficulty lies in the execution, and it is vital for anyone considering such a move to create a detailed and complete coffee shop business plan.

Using Your Coffee Shop Business Plan To Help Get Your Business Off Of The Ground

A coffee shop business plan will help the new business owner get the business off the ground by attracting the startup funding that will be needed to purchase or rent a piece of property, stock the kitchen, buy all the coffee makers and cappuccino machines and hire staff.

The coffee shop business plan will no doubt be the first document any lender wants to see, so it is important to put as much care into its creation as into the brewing of a perfect cup of coffee.

The Business Plan Will Detail How To Overcome Problems

The coffee shop business plan should include important information such as where the new coffee shop will be located, statistics on vehicular and foot traffic past the site, the cost of the monthly rent, and the cost of supplies.

In addition, it is important that the coffee shop business plan include information on how the business owner plans to attract and retain qualified employees.

Hiring enough qualified and customer service focused staff members can be a challenge for many businesses, and it is important for the business plan to provide details on how this common problem will be overcome.

The Measures to Take To Keep Cost Under control

It is also important that the coffee shop business plan include a section which details the cost of basic supplies, such as raw coffee beans, creamers, sugar, cups, stirrers, plates, etc.

These consumables will represent a significant cost, and it is important that the coffee shop business plan address the measures taken by the business owner to keep these costs under control.

Listing Your Competitive Advantage

It is important as well for the coffee shop business plan to include a section on current level of competition in the market, including competition from large chain coffee shops.

This section of the coffee shop business plan should also include information on the factors that will make this new coffee shop unique in the marketplace.


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Writing Your Coffee Shop Business Plan is Worth Beans!

By Tony Dicorpo
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Expert Author Tony Dicorpo

If you fail to plan, you plan to fail. Simple, short and to the point.

People ask quite often of the importance of a business plan when starting a coffee shop. My response is always a statistic: Most businesses fail within the first year due to lack of planning but coffee shops have a higher failure rate due to their nature. If you don't have anything to plan your course by, how can you move forward? Any business vision is blurry without a written plan.

Your plan takes time to write now, but it's designed to help you avoid costly mistakes later. The true value of creating a business plan for your endeavor is not the finished product, but in the process of writing it.

Experience has taught me that while planning to open a coffee shop, templates and generic plans will not help you much except for the typical form the plan should follow so be very careful. You need to make yours unique, and as coffee shop friendly and specific as possible.

When I wrote my original business plan I read and studied quite a few versions of them on the internet, and picked out sections I liked best. I rewrote it until I was satisfied and then gave it to my banker. He said it was the best business plan he had ever seen. So I put the plan to use and opened my coffee shop, and made lots of mistakes!

My banker loved it but he was not a small business person, nor anyone that was familiar with coffee shop operations. Had I wrote the plan realistically and pertaining specifically to a coffee shop I'd have avoided a bad location, incorrect demographics, lack of capital, and a lot of other mistakes.

You have to be realistic with your prospective numbers and in many ways you have to get creative, especially with marketing. The specialty coffee business is unlike a lot of other food service businesses because of its nature. Writing your coffee shop business plan will force you to think about your business in a way that you will always have to think about it: it's unique.

And just because you open your shop and may be open for a year doesn't mean you can put the plan away. You should always be tweaking it. Trust me you will always be a business person and thinking about what you can do different and new. Things change, markets change and trends change so your business has to change as well to adapt. Otherwise, you will be closed before you know it.

It bears repeating: If you fail to plan, you plan to fail. It's as simple as that! Be sure you have a specific business plan when starting a coffee shop. Your plan won't be worth beans otherwise!



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Coffee Shop Business Plan - The Basic Points You Must Cover

By James Blake
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Expert Author James Blake

Many coffee shop owners do not realize the importance of having a good coffee shop business plan. A business plan is basically a document that list down your competitive strategy and execution during the operations. Having a compelling strategy will inspire you to great heights in business success and having a good execution business plan will ensure that your castle is not built on clouds. It forces you to dream big and at the same time to come out with operations to make this dream a reality.

Having a well thought out business plan will give you an advantage over your competitors. It give any your potential bankers and investors a big boost in confidence in your vision. They realized that most of the coffee shop owners cannot put down their strategy into paper; mush to execute them well.

In general, the language in the coffee shop business plan should be factual and business like. You can use any prospectus of a listed company as a reference. You may say that you are not going for listing! You must realize that the investors are really looking for good deals and there is no better way to show them you mean business by having a world class business plan. Use graphs and government statistics to back up your research and this will give you instant credibility. A good business plan will basically cover two things, your business strategy and execution.

A. Strategy
A strategy is the goal you want to achieve in your business in the short run, which is the first one year and for the long run, which is 5 year. As this is a big topic by itself, I shall cover the few critical components briefly.

i) Target market
The first thing you must cover is your target market. This includes the demographics, where they eat and how affluent they are. Then you need to estimate the market size. This will depend on how big an area you think you can realistically cover.

ii) Competitions
No business exists by itself. If there really is none, that is a sign of no demand in the market. You must list down your nearest competitor in your chosen niche and their strengths and weaknesses. If you can, list down their revenue per month and estimated market share as well.

iii) Your Unique Selling Proposition (USP)
Your USP is how you position you business differently from other competitors. It answers the question of why your customers must be crazy not to do business with you compared with your competitors. It could be your quality food, your service, your cozy environments or your pricing. Give them a compelling reason why and they will flock to your coffee shop.

iv) Target location and rationale
The location you choose to start your business really depends on your USP. You may choose to do an upscale coffee shop and naturally, a nice and relaxed environment is important. The renovation costs and may skyrocket but you can charge more for your products. You may want to pick a shopping mall to cater for students or workers who wants to relax. If you choose to compete on speed and delivery, you are catering more on the morning crowd who wants a quick sip of coffee and quality food.

v) Management team/investors
In this section, you must list down who is in your management team or investors. An experienced manager or investors with more than twenty years running a coffee shop is more valuable than a new one. So, it makes sense to have someone who knows the operations well.

vi) Risk factors
All business carries some inherent risks. This may be the changing taste and demands, technology changes, legal and regulatory changes and new entrants. You must anticipate them and take the necessary actions to mitigate them.

vii) Exit strategy
You may provide some plan for exiting in two scenarios. First, you made a lot of money and plan to open more chains. Then, you need a lot of investor financing by selling some shares to them. Second, if the business fails, you may want to negotiate to shorten the lease on the shop and find ways to sell off the coffee equipments.

B. Operations
This part covers the detailed aspects of the day to day running of your coffee shop business. This is where the rubber meets the road and you must successfully execute to get your business off the ground.

i) Startup costs
These are the costs to get your business off the ground. These include renovation, coffee shop layout, cost of buying or leasing equipments and legal costs like license and permits. How much you need to spend depends on your USP you have targeted.

ii) Monthly revenue and expenses
After estimating the market size in your niche, you can estimate how many customers you can have as you monthly revenue. You can then estimate the monthly operating costs, which includes leasing, staff salaries and utilities. You must estimate how much cash you need to sustain for the slow months, especially in the early months of operations.

iii) Operations
This covers the day to day operations of you coffee shop such as operations hours, how many staffs are in the kitchen and serving customers as well as the type of furniture you need to buy. You may also detail down the types of kitchen utensils to buy and when the equipments need to be serviced.

iv) Marketing
You marketing methods will depend on your USP and the image you want to portray. If you plan to do an upscale type, you can send postcards or flyers to your local areas. You can also organize special events like birthday parties or meetings. You company logo and staff uniforms also must reflect this upscale image.

If your niche is speed and price, you may advertise in a billboard near any busses or transit railways. You may want to give out special discounts for regular customers.

v) Funding needs and sources of funds
You may start by using your own funds but as your business grows, you will need more financing. If the interest rate is favorable and you have been in business for over a year, you may approach banks for borrowings. If not, look for investors who are wiling to take some risks. Even if all else fails, you can still get your supplier to finance you in the form of discounts or longer repayments. See if you can qualify for any small business grants from the government.


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Brew Up A Great Coffee Shop Business Plan

By Shaunta Pleasant
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Expert Author Shaunta Pleasant

Starting and running a successful coffee shop can be a dream come true for any coffee lover, and the coffee business can be quite lucrative in the right hands.

When starting any business, however, it is important to give it the seriousness and careful planning it deserves. Few people can be successful at owning and running a coffee shop without lots of difficult planning, and one of the key elements of that planning is the creation of a professionally designed coffee shop business plan.

==The Coffee Shop Business Plan Is The First Document Any Potential Investor Will Want To See==

A business plan is one of the most important, perhaps the most important, of all business documents.

That is because the coffee shop business plan is the first document any potential investor will want to see. Before any lender will make a startup loan, he or she will want to get a good look at your business plan, and review it carefully.

Likewise, if you are planning to finance your new coffee shop by taking on investors, those potential investors will want to take a good look at the coffee shop business plan to determine what they are getting into, as well as to be sure that your new shop has a solid shot at success.

==Outline The Potential Of Your Business Plan==

It is important that your business plan outline not only the great potential of your new business enterprise, but any potential challenges or pitfalls as well. By being totally honest, you will gain the confidence of potential lenders and potential investors alike.

==The Business Plan Can Help With The Tax Planning Purposes==

In addition to its usefulness as a way to raise startup funds and funds for expansion, a good coffee shop business plan has many other uses as well. One of the most important non financial uses of a good business plan is for tax planning purposes.

No one likes to pay taxes, and paying taxes is often an unwanted side effect of running a profitable business. Proper tax planning, using the information contained in your coffee shop business plan, however, can help keep your tax liability to a minimum, and help your business grow, prosper and thrive.



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Coffee Shop Business Plan - 5 Big Business Plan Mistakes to Avoid When You Open a Coffee Shop

By Elisabeth Kuhn
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Expert Author Elisabeth Kuhn

So you're ready to open a coffee shop? Read on for five big mistakes to avoid.

1) Not having a business plan

Having a coffee shop may seem like a laid-back kind of business. But don't be fooled. There's work involved.

And you need a solid business plan to get the money to set it up.

And yes, even if you are planning to do most of it yourself, you'll need funds. So plan on having that coffee shop business plan ready and go talk to your bank.

2) Underestimating how much it will cost

There's much to be said for optimism, but estimating how much a start-up business will cost you before it becomes profitable isn't something where you should get carried away with visions of fast success.

Most businesses take quite a bit longer to become profitable than their owners expected. So plan for that.

If you underestimate the time it will take, your bank may well pull the plug. And where will you be then?

On the other hand, if you get profitable ahead of schedule, you'll be their hero!

3) Failing to know your market

Proper market research is really the first thing you should do. Just because there are lots of people hanging out in the coffee shops in your area doesn't mean that these places are profitable. It also won't mean that yours will be.

Find out what they like, how much they spend, and, yes, to the best of your ability, find out how profitable the other places really are before you open a coffee shop yourself.

4) Not planning a budget for marketing

Remember that line from "Field of Dreams"? "When you build it, they will come." Ask some business owners about how that one worked for them in real life!

Not too well, I would think. You need a solid marketing plan -- and the funds to put it into action if you want to hope to make your coffee shop successful.

5) Refusing to learn from those who have done it all before you

That may well be your biggest mistake. Don't be a lone wolf. Your most valuable resource are people who have already done what you're setting out to do, and have done so successfully. Take advantage of their experience and wisdom, and glean all the intelligence they'll let you have.

You'll save countless hours and dollars if you are willing to learn from those people. So make friends with some of your competitors and find out how they managed to make their businesses work. Did they have a coffee shop business plan when they first started. You can bet on it.

And there are even a few how-to manuals out there. Check them out.

Before you buy one, though, make sure that the author or authors actually have done what they write about. You want a guide by someone who has started a coffee shop from scratch, maybe even more than one, and has built it into a wildly popular place. If you find a guide like that, especially if it gives you a step-by-step process, grab it. It will help you avoid any number of mistakes.


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A Coffee Shop Business Plan - Brewed to Perfection

By Kevin T Hope
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Coffee Shop Business Plan

A coffee shop business plan is one of the first steps in starting a coffee shop business. Using existing models and templates can be a real time saver. Every business plan has key elements. These are the most common to elements:

An Executive Summary
An Objectives List
A Mission Statement
Established Keys to Success
Risks

The executive summary will define the type of coffee shop, the target market and in general terms, how this particular coffee shop plans to meet he needs of that market. It will also include financial projections as well as plans for obtaining financing and whether or not it will be incorporated. It may also include specifics regarding square footage, background of the founders, and a detailed conceptual description. It is what the name implies: a summary.

Objectives are the same as goals. This list tells the prospective coffee shop owner in specific terms, what he or she is aiming for:

Product focus
Atmosphere/Ambiance
Service to the consumer
Image in the community
Annual sales
Profit margin

Any business instructor will insist that specific goals be written down. This is a proven step to success and one that should never be omitted. They don't have to be written in stone. A certain amount of flexibility can be advantageous as conditions and markets change, but no destination is reached without knowing what it is or how to get there.

A mission statement is a more generalized goal set, usually including intangible things the business hopes to accomplish. Examples might be contributions to the local economy or to impact the lives of customers in a positive way spiritually or emotionally. There is a lot of leeway in establishing a mission and nothing set in stone. The mission statement comes from the heart of the business owner.

The "keys to success" section is a list of active steps the business owner believes will make his or her business thrive, and plans to execute. They might include things like:

Superior tasting product
Relaxing upscale interior design
Prime site location (with definition of what a prime site would be)
Ongoing aggressive marketing
Highly trained and friendly staff
Multiple revenue streams (list what they would be, ie. gift items, pastries, chocolates, teas, etc.
Dynamic website with online sales capacity

The character of the coffee shop as well as market research determines the list of keys to success. The goals have been established. Now this is the plan for reaching them.

Risk assessment may or may not be included in a coffee shop business plan, but it is a wise exercise in the least. If the focus of the coffee shop is closely linked to another service, such as Internet, the savvy entrepreneur will want to evaluate the longevity of that service. Will home Internet service become so inexpensive that an Internet based café won't make sense anymore?


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Brewing Up a Great Coffee Shop Business Plan

By Darrel Hawes
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Expert Author Darrel Hawes

Get Started Right

Starting a small business is a dream for many individuals, and the coffee shop business is one that has truly inspired many. It is important for you to make sure, however, that you start your business on the right foot and this would require that you come up with a coffee shop business plan that is going to guide you along the way. Here are some things that need to be considered whenever coming up with one of these business plans.

Put It All Down On Paper

First of all, you're going to need to put down every aspect of your business into the plan. This would include such things as what is necessary financially for you to get a business started, as well as the expenses of the coffee shop business on a monthly basis. Projections should also be determined through market analysis as to what you expect the business to earn over the course of six months, one year and even five years into the future.

Make Sure Your Plan Covers All Your Bases

The coffee shop business plan is not only going to be utilized in order to help to keep you on track with your business, it is also going to be a tool that is necessary for helping you to get any financing that will get your business up and running. Make sure that your business plan is well put together, and professional looking. This will not only help you to stay on track when reviewing it, it will make it more appealing to the lending institutions that will get you going.



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Coffee Shop Business Plan - Avoid Business Plan Mistakes When Opening Your Coffee Shop

By Darrel Hawes
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Expert Author Darrel Hawes

First Things First

Setting up your own coffee shop is certainly an exciting venture, but you're going to want to make sure that the business plan is rock solid from the start. As a matter of fact, your plan for your coffee shop business is one of the first and most important steps that needs to be taken in order to get your business up and running properly. The unfortunate thing is, many people tend to make some mistakes whenever putting together a detailed plan and this can really hurt you in the long run. Here are 3 things to avoid.

Get Your Finances in Order

The first thing that you should avoid is speculating as far as finances are concerned. A good coffee shop business plan should be based on market analysis and solid research. This is what the lending institutions are going to want to see whenever you take your plan in to be approved for financing.

Know Your Cash Flow

Secondly, you should understand the difference between cash flow and profits. This should specifically be outlined within the parameters of the business plan. Not only will this help you when getting financing, it will also help you to be reasonable with the goals that you set for your business.

Be Proactive

Finally, do not put off writing a detailed plan for your new coffee shop. This should be the first step that is taken and it should not simply be stuck in the middle of many other chores that need to be done. Once you have the plan in place, you will be in a much better position to continue working on your upcoming business.



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My Coffee Shop Business Plan - What Should it Contain?

By Rupert C Trubshaw
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Putting together a coffee shop business plan is just one of the many challenges facing any one who wants to start a coffee shop and is in need of funding, so what form and structure should it take?

While there are plans you can download, they will cost money that can be better spent elsewhere and they almost certainly not be tailored to the niche area or locality of your chosen site.

Your opening statement is a key, key part of any document you put together. It's a bit like hearing a new song on the radio. If you like the first bit, the chances are that your potential investors will hang around for the meat of your coffee shop business plan. The statement should cover your idea, management plans, profit projection and so on.

If your ideas are clear, then the next part, your mission statement - should be easier. Will you only serve coffee, what foods will you serve..and what objectives can you set yourself? Do you want to be the number one shop in a specific area? A mission statement will help focus your goals and ideas and it's a great way to impress potential investors with your ambition.

The financial plan will include your projections on costs and revenue. Don't forget that you might be able to get local grants and subsidies to encourage new business. You should also have details in mind for every 3 months of your first year, and a five-year plan. Again, this will help you focus on your ideas, structure and how you will make money in the long term.

Writing a coffee shop business plan along these lines will help focus your mind and give you some clues already as to if your start up might be a success.


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Coffee Shop Business Plan - Carefully Make One That Will See You Succeed

By Mercy Maranga
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Expert Author Mercy Maranga

Many people love to indulge in the occasional cup of coffee because of its taste or aroma. That is why there are many coffee shops around every corner that have been operating for many years. It is no easy task though to maintain and operate a successful business. You have to input a lot of time and effort. It is therefore necessary as with any other business to have a realistic and detailed business plan.

This will help you attract capital that you may need to buy stock or pay rent. You should have an opening statement that is captivating and clearly projects what your business is all about. This should talk about your idea, management plans etc in brief. A mission statement that reflects your objectives and goals will be the next thing you have to put in place. This shows where you want your business to be in a few years and shows your level of ambition.

The location of the business and what you intend to serve should be included. In addition, you should also state how you intend to hire and retain qualified employees. This is a sensitive and sometimes problematic part of the business that needs to be addressed in the business plan. You will have to come up with a way of solving these problems and you should also include a contingency plan.

The strategy that you intend to use in order to keep the costs of basic supplies like coffee beans, sugar, cups etc under control. Even if you are going to get the best rates available, you should not compromise on your quality. A section detailing the level of your competition in the market is important. In addition you need to show the uniqueness of your business which will help draw customers. When you have a coffee shop business plan, you will be able to cover all the aspects of your business that you may have forgotten.


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