• Home
  • Blog
    • Resources
    • Business Partner Magazine Archive
  • About Us
    • Cookie Policy
    • Disclosure Policy
    • Privacy Policy
    • Terms of Website Use
  • Contacts

Business Partner Magazine

Tips and advice for entrepreneurs, start-ups and SMEs

  • Business Success
  • Marketing
  • Finance
  • Employees
  • Technology
  • Start-up
  • Productivity
  • Communication

Thinking Of Starting A Cafe Business?

March 23, 2021 by Contributed Post

Click here to get this post in PDF

Too long to read? Enter your email to download this post as a PDF. We will also send you our best business tips every 2 weeks in our newsletter. You can unsubscribe anytime.

Enter your NameEnter your Email Address
Round brown wooden table in the cafeteria

The coffee shop industry rolled in about $11.5 billion last year, according to Dun & Bradstreet. It is also considered, along with the restaurant industry the most risky in the economy in terms of business. It is the industry with the highest rate of businesses at risk of closing. Therefore, before deciding to open a coffee shop you should know that it is a dangerous area and consider whether it pays to enter the industry or not. However, like most areas of business, when there is a passion and dedication to the craft, there is usually an element of success that follows. 

The amount of the investment depends very much on the size of the property and whether it is just a concrete shell. If major adjustments are required, there will be a need for a larger investment. When thinking of your budget, you must consider all aspects of the building of the cafe; such as what equipment you will want to use, what Cafe Furniture you may need and what food and drink you wish to sell. When building a business plan for a cafe you should strive for a return on investment within 3-4 years. This is to neutralize as quickly as possible the fear of the cafe’s inability to generate excess return. Coffee, like any business, the risk goes down because it is likely that in these years the business has established itself in terms of customers and financial strength. You will have already found from market research that there is hefty competition in this industry. So, what will make your business stand out from the others? Speciality coffees? Excellent WiFi? These are elements to consider. You should also establish a solid relationship with customers as it is believed that a high majority of coffee buyers are more likely to put their money into established coffee shop chains; which could be devastating if you are in close proximity to one. Therefore, analyze location thoroughly. 

Think with a successful mindset

To start with, an exceptionally good plan and good knowledge of finances will be important. From the rental of your building to your staff wages and then additional taxes, you need to ensure that you are on the right path to receiving a good ROI and no major losses. One of the most important factors in a coffee shop’s chances of success is the experience and management skills of the entrepreneur. Therefore, entrepreneurs who come from the field or with in-depth knowledge and understanding of the field have an advantage. This industry attracts a lot of people who come from outside the field, people who want to open a cafe as a sideline job, retirees, those returning from travel or the army, and upon first glance, it seems a very profitable idea. However, unlike a clothing store or shoes that are businesses that can be learned very quickly here, without skill and deep understanding of the field. You need to educate yourself on these areas and be knowledgeable, otherwise, people will go elsewhere for their professional barista-style coffee. 

You may also like: Top 5 Mistakes Made by Startups

Image source: Unsplash.com

Filed Under: Featured Posts, Start-up Tagged With: Featured Article, starting a business, startup

  • Facebook
  • Instagram
  • Pinterest
  • Twitter
  • YouTube

Disclosure

We earn commissions if you shop through the links on this page.

Recent Posts

  • 6 Top Tips About Business Disputes
  • How to Protect Your Business Against Cybercrime in 2023
  • Benefits and Risks of Using a Real People Finder
  • Interview With Asif Ali Gohar on the Hurdles of Starting a Business So Young
  • Navigating the Complexities of 18-Wheeler Settlements: A Lawyer’s Perspective

Categories

Archives

Digital Marketing Agency

ReachMore Banner

Tags

Accounting apps bitcoin brand business growth business skills business success communication cryptocurrency Customer Service Data design ecommerce Efficiency employees Featured Article finance finances Health and Safety infographic insurance Investing investment legal legal services legal tips Management Marketing marketing strategy Outsourcing productivity property Real estate sales security SEO Social Media software starting a business startup Technology Trading Training website workplace

Disclosure

We earn commissions if you shop through the links on this page.

Digital Marketing Agency

ReachMore Banner

Business Partner Magazine

Business Partner Magazine provides business tips for small business owners (SME). We are your business partner helping you on your road to business success.

Have a look around the site to discover a wealth of business-focused content.

Here’s to your business success!

Copyright © 2023 - Business Partner Magazine·