Creating a great coffee shop business plan is essential if you want to encourage banks to part with their money and provide the necessary financing for your new venture. One of the most alluring smells in the world is that of freshly made coffee, which is why coffee shops seem to be very successful in many of the major cities.
Whilst coffee shops are continuing to thrive, a business plan is still necessary to show prospective financiers that you have thought the whole process through. Most importantly they will need to feel positive that they will get their money back with interest.
So what is a coffee shop business plan and what should it include? Well there are lots of questions you need to ask yourself and include the answers in the plan including:
- Are you planning to set up as a sole proprietor, a partnership or a limited company?
- Where is your coffee shop going to be located? The location is vitally important so do your homework and find out the impact on costs, the market need for a coffee shop in the area and what the competition is, if any.
- Are you planning on buying a franchise or are you going to set up a brand new coffee shop business?
- Do you have the finances in place to start the business? Will you need to get a bank loan or find finance elsewhere?
- What type of equipment will your business need? If you are starting a coffee only shop then you may just need items such as tables and chairs, a counter and a cash register. Your coffee shop business plan may include selling food so the equipment and inventories list may be more comprehensive. It may be you want some additional incentives for customers to visit the shop other than just food and drink. Books, magazines and even the internet can be used to attract visitors so again the equipment and inventories list will need to include these things.
- How many staff do you need?
- Do you have procedures in place to deal with day to day situations such as customer complaints or staffing issues?
These are just a few issues that will need to be addressed as part of your coffee shop business plan. Apart from showing banks or other lenders how serious you are about creating a successful business your plan will also show you where you want to go, and how you intend to get there.
The points outlined above offer up some questions for the immediate future, but your plan should also address your longer term strategy. For example do you want the coffee shop to become two or three or even an empire?
Your strategy needs to match your ambition whilst at the same time setting realistic goals. The bottom line is though, without a proper business plan in place before you start your new venture, the coffee shop is likely not to succeed unless you are very lucky.