If your interested in opening a small coffee stand, you’re in good company! Starting a small coffee business is one the fasting growing ways to get into the coffee business in the United States, Canada, and elsewhere.
Opening a small coffee stand can me more doable in for a variety of reasons:
- Having a small coffee business can have lower costs than traditional cafes.
- Having a small coffee stand can give you a taste of managing a coffee business on your own
- Having a small coffee stand can provide you with the basic skills to grow your business even further with confidence.
Starting a small coffee business can reduce the obvious risks involved with your personal financial investment. A traditional coffee business can cost you anywhere from 50K to 300K to open up. A smaller coffee stand can be purchased however – for under 20K (depending on a few other factors like lease options, equipment, etc.)
Yet reducing your initial costs by 60-70% percent can be appealing for many business owners that are afraid of sinking too much capital in their business without knowing whether it will work or not.
How to Start Your Small Coffee Stand
The following is a short, but essential list for those interested in starting their coffee business. If you would like more information and free articles covering a variety of similar coffee business topics, visit out coffee business blog. Also, consider asking a question in our coffee business forum.
Step 1: Educate Yourself With Coffee Business Expertise
When you are just starting out, you simply “don’t know what you don’t know.” And when it comes to your business investment (AKA: Your personal savings), you don’t want to put your investment in a vulnerable position. You should be learning as much as you can from other coffee business owners. Ask questions, learn from them, study them, and ask more questions again!
Step 2: Create Your Coffee Business Menu
It seems so simple, that most (really, most people) look this over. In their minds they “know what they’re going to sell” – coffee! But actually, it’s more complicated than that. Figure out which coffee you will serve and which things will you serve along side it? For example, will you serve bagels or muffins? Will you serve smoothies or tea? Who will your roasters be?
Step 3: Look For the Right Location – For You!
Picking the right location is essential for your success. You have the best coffee, the best coffee stand, and even the best baristas – but your business will still struggle, if the location stinks. This step requires a lot of leg work on your part because the dynamics are always changing and there are multiple elements to this step.
Your location elements:
Competition: Are their competitors (or substitutes) nearby? If so, how many and how close are they? How likely will they impact your business?
Your Coffee Business Lease: You can have a great location but if you sign an unfavorable lease – how will that impact your business? Many potentially amazing coffee business go down in financial ruin because they didn’t know or understand the process of signing their lease.
Demographics and Traffic Patterns:
Did you know that you can have a great location on the WRONG side of the road! Make sure that you look and research common traffic patterns for your coffee business.
Step 4: Your Coffee Equipment
Your coffee equipment shouldn’t be the last thing you should worry about – it should be among the top things you consider when starting your coffee business. Your coffee equipment will be expensive. Your coffee equipment will be the foundation of your business. So, while you may be tempted to cut corners and buy any used coffee espresso machine – you should take your time and do the research.
Step 5: Know Your Requirements
Whether you need a building inspection or a health inspection, or your permit requirements – you should do your homework. Every county may be different but most have a similar vein – to keep employees and customers safe.
Your Small Coffee Stand Business
What we recommend: Before spending any real money on your business, we always recommend to take the time and small financial investment to do the research. Find out what you need to know. What questions should you be asking? What should you be thinking about? We are confident that our Coffee Business Package does this in an easy-to-understand way.