It’s been a few decades since Starbucks emerged from Seattle to take over the world and made a coffee shop on every corner the norm. As a result, the way Americans drink coffee has changed drastically. This has also created a window for entrepreneurs looking to start a business. While the big coffee chains have expanded, so have specialty, independently run shops. According to an article in the New York Times, Americans drink less coffee today than we did in the 1930s, but we’re drinking higher quality, better-brewed cups. As such, many entrepreneurs are wondering how to start a coffee shop to serve their own high-quality brews.
How to open a coffee shop in 7 steps
Wondering how to start a coffee shop of your own? These seven steps will take you through everything you need to know.
Step 1: Decide whether you want to open your own shop, a franchise, or buy an existing business.
When it comes to starting a business you usually have at least two ways to go about doing it, and with coffee shops, you’ve got three.
When it comes to how to open a coffee shop you can do one of the following:
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Completely start from scratch and open your own shop
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Open a coffee shop franchise
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Buy an existing coffee shop that’s for sale
Each of the options has its pros and cons and varying degrees of work required by you. If you choose to open a franchise you’ll be bound by many of the aspects of that franchise like the beans they use and the decor of the actual shop. If you buy another coffee shop you might have less construction to do to set up the space as a coffee shop. These options come with limitations as well. Once you determine which one you want to do, you can move on to the next step, which is coming up with a business plan.
Step 2: Create a business plan.
A well-thought-out business plan is key to creating any business, and a coffee shop is no exception. If you want to open a coffee shop, you probably already have a love of good coffee. To create a successful coffee shop you have to decide how you’ll get other people to love coffee as much as you do. A business plan will help get your ideas focused and in one place. Besides the basics of what your coffee shop will be and the products you’ll sell, a business plan also includes a marketing and sales plan, as well as financial projections.
An important consideration you’ll need to take care of in the early stages, and that you’ll include in your business plan, is to decide on the business structure you want your company to operate as. There are several business entity options you can choose, including a sole proprietorship, LLC, C-corp, and more—and the entity you choose will have both tax and legal implications for your business. It’s always a good idea to seek the advice of a business attorney when making these big decisions as you start your coffee shop. if you choose to open a franchise, you might already have a…
Read More: How to Open a Coffee Shop and Be Successful