Low-Cost Ideas for Starting a Coffee Shop Business With Little Money

Low-cost coffee shop ideas to start a coffee shop.

How To Start a Small Coffee Shop

With Less Money

Dreaming of starting a coffee shop but worried about having enough money?

You are not alone.

Many aspiring coffee shop owners wonder how they will overcome the lack of money to start their own coffee business.  Fortunately, we have seen some proven, low-cost ways to start a coffee shop.

Finding the right coffee shop idea that fits your budget is not always easy. Still, if you design your coffee shop concept purposefully – right from the beginning to save money – you can successfully start a low-cost coffee business with little money. 

On the other hand, starting a traditional coffee shop can be expensive. Some estimated coffee shop startup costs can run into tens of thousands of dollars and upwards of $250,000 to $300,000! These high-cost estimates can stop most coffee business dreamers right in their tracks.

However, starting a coffee shop doesn’t necessarily have to be expensive in every circumstance. In fact, there are ways to start a low-cost coffee shop successfully – and we've seen it!

The secret is thinking out of the box.

It takes a willingness to search for low-cost opportunities that make sense in your community.

Taking the time to brainstorm coffee shop ideas may be just what you need.

While coming up with the right coffee shop idea may not always be easy, we have seen enterprising people start their low-cost coffee shop businesses with little money.

Each of them has taken various steps to accomplish their goal with little or no money.

But it takes work, careful study, and “out of the box” thinking.  To start a coffee shop with no money, you're going to bring something special to the table. 

You're going to have to be:

• Bold
• Creative
• Have the ability to network
• Understand your market
• Determine your budget

In our Complete Coffee Shop Startup Kit, we interview a couple of coffee shop owners who started on a shoestring budget. They reveal great advice, tips, and recommendations that can be applied to your own low-cost coffee business startup.

Small Coffee Shop Ideas (Low-Cost)

Finding Low-Cost Coffee Shop Ideas

Let's consider the basics of serving coffee.

When we break it all down, starting a small coffee business can simply mean brewing coffee and serving it in a cup to anyone willing to pay for it.

Thousands and thousands of coffee entrepreneurs all over the world do this every day. So, let's take this basic formula and run with it.

Ultimately, a coffee business is about:  

• Brewing coffee
• Serving it
• Getting paid for it

Now, of course, you can make your coffee business as complicated and grandiose as you want, but when it comes to starting a coffee shop, that's basically it.  Brew. Serve. Get paid. 

Ultimately, you just need a few basic things: water, coffee, and some type of coffee brewer. Of course, this is a shoestring coffee business setup, but you get the idea.

Let's stay focused on simplicity:

Starting a coffee shop business does not have to be complicated. It does not have to be expensive. It does not have to be an unattainable dream because of money – or the lack of it.

I also want to emphasize that where you start, your coffee business will not likely end up. Instead, your coffee business will grow and evolve!

If money is the issue, start small (some of you may have to start really small – and that's okay!) Then grow out from there.

The important thing is just to start… just start wherever you are. 

Starting a business should not be taken lightly. It should be well-thought-through. You should do your research and write your coffee shop business plan before you start spending any money.

The more you plan, the less you'll spend. (Read that again.)

Remember, your coffee business can start as a straightforward and less expensive business. Then, as you grow out of your original coffee business, you will end up with a more elaborate coffee enterprise in time.

For detailed information on how to write a coffee shop business plan, read our article, How to Write a Coffee Shop Business Plan.

low-cost coffee business ideas

Low-Cost Coffee Shop Ideas

The Benefits of Starting a Low-Cost Coffee Business

Starting a small coffee shop will allow you to grow the grand coffee business you have always dreamed of but with less money and risk.

In addition to lowering your total costs, there are benefits in starting a low-cost coffee business, including the potential for growth, reduced financial risk, and the opportunity for you to “learn as you grow.” Below is a list of clear benefits of starting a low-cost coffee business:

While we may dream of opening a large coffee business, there are plenty of ways to start small. 

So, for now, let us dream big, think big, and start small.

In fact, let's continue!

Low-Cost Coffee Shop Strategies

First, we will discuss three basic strategies to reduce your coffee shop business costs. These strategies should typically lower your coffee business costs significantly or provide for improved planning, leading to less money being spent. Then, we follow these strategies with examples for you to consider when starting your low-cost coffee business.

Low-Cost Coffee Shop Strategy #1

Write a Coffee Shop Business Plan:

There’s never been a better strategy to save money than to write a coffee shop business plan. It doesn’t matter how small your coffee shop idea is; writing down a cohesive plan covering all your bases will save you money.

This can be a huge time saver, too.

Writing down your coffee shop concept, startup costs, and marketing plan in a comprehensive plan will give you a direct pathway forward.

Writing down your concept and the costs that go along with it will allow you to tweak or change your plan to fit your budget.

The process of writing your coffee shop business plan will:

• Help you develop a realistic coffee business budget.
• Solidify your coffee business concept.
• Help you settle on a coffee menu.
• Boil down a general location area you would like to serve.
• Outline your coffee branding, marketing, and promotion.

Low-Cost Coffee Shop Strategy #2

Reduce Your Coffee Shop Rental Costs

Your physical space will determine much of the coffee shop startup money that first goes into your coffee business.

The money it takes to rent a place, design, and build out your space can be significant – and may consume the bulk of your coffee shop startup budget.

Please focus on this simple but important element in starting a low-cost coffee business: The single most important low-cost coffee shop strategy is to reduce your financial burden right from the start.

Yes, this is simple, but not always easy.

You have to embed the philosophy of “low-cost” right from the beginning of your coffee shop planning.

Below, we list several coffee business concepts with this strategy in mind. This may include partnering with an existing company, starting a mobile coffee business, skipping out on real estate, and starting an espresso catering service that doesn't require office space.

Whichever way you go, if you embed this priority within your chosen coffee shop concept, save money right from the start!

For more information on starting a coffee shop with no money, read our article, Seven Ways to Start a Coffee Shop with No Money.

Low-Cost Coffee Shop Strategy #3

Simplify Your Coffee Shop Menu

Simplifying your coffee menu could dramatically reduce the cost of your coffee shop startup. Your coffee menu directly impacts how much your coffee shop will cost.

Consider everything that a menu determines:

• Physical space requirements
• Your coffee equipment needs
• Installation (Shipping, Contractor Costs)
• Labor costs
• Utilities
• Inventory (Purchase and Storage)

Go simple. Go lite. And go small.

Embed this priority of simplicity within your chosen coffee shop concept to save money right from the start!

Low-Cost Coffee Shop Business Ideas 

Low-Cost Coffee Shop Business Idea #1: 

Piggyback on an Existing Business

Many of the coffee businesses listed below piggyback on existing businesses.

Piggybacking on businesses already up and running has tremendous benefits. Creating a symbiotic relationship where both your coffee business and another established business can lower the costs for everyone while increasing the service, experience, and value customers get.

It's a win-win situation.

Depending on your coffee shop location, your customer base, and the type of business you work with, you could potentially develop a very successful partnership while lowering your startup costs.

Benefits to piggybacking on an existing business:

• Lower monthly rent – By utilizing an existing location, you can negotiate a lower rent and even possibly avoid other expenditures like security deposits and building maintenance.

• Established customer base – Depending on the nature of the other business involved and its location, you might have already established a customer base that can guarantee a steady flow of coffee-drinking customers.

• Lower overall costs – An existing business may reduce your overall startup and monthly operational costs (fixed and variable costs), including insurance, labor, security, utility payments, etc. 

Further Reading: How to Piggyback Your Coffee Shop Business

Low-cost Coffee Business Ideas

Low-cost Coffee Shop Ideas

Piggyback Examples For a Starting Coffee Business

You can work with an existing business by either serving their customers coffee or possibly expanding their customer base, as well as yours.

We see this all the time in coffee and other businesses.

Starbucks is doing this throughout the United States in grocery stores, banks, and Target stores. So it's a feasible concept that you can also borrow from an existing business in your city. 

In the examples below, you also indicate the median startup costs. These are simply estimated startup cost figures that will help you determine the costs for your coffee business. They do not include the costs of general business liability insurance, transportation, barista training, etc. The costs also do not include variable or fixed costs such as coffee, labor, or rent payments.

There are ways to save money on each coffee business idea and boost overall startup costs.

A Coffee Business and a Used-Book Store

Today, many independent bookstores are struggling to survive. Adding a coffee business within a bookstore can often generate the caffeine-fueled jolt it needs to bring in more customers. Renting a small space and attracting new customers within an existing bookstore can appeal to the used bookstore owner.

• Find a used book store in your area
• Visit and see if the bookstore location is the right fit
• If the location is right and their existing customer base can support your business, approach the bookstore with the idea of sharing/renting space
• Have a coffee shop business plan ready

Estimated Coffee Business Startup Costs: 

$4,000 – $12,000 (Coffee equipment, installation, build-out, utensils, legal and administrative expenses.)

A Coffee Cart and Independent Art Gallery

A catering-type coffee business that you can bring into an art gallery during a show or exhibition can be profitable. Most visitors to an art gallery usually have the discretionary funds to spend on a coffee cup while browsing. This coffee business can also be applied to small music venues or theaters.

A portable coffee cart can literally be anywhere! You can set up a location near:

• farmer's markets
• city park events
• bus stops & train depots
• music festivals

Providing a delicious cup of espresso-based drinks will provide a more pleasurable experience to customers at any of these locations and events.

Here’s what to do:

• Make a list of independent galleries (or venues) in your area
• Visit them and see if the gallery already serves coffee or wine
• Attend an event (or two)
• Talk with the owner
• Decide on the method of payment and rental options.
• Create a coffee shop business plan

Estimated Coffee Business Startup Costs: 

$3,500 – $10,500 (Coffee equipment, cart setup and installation, utensils, legal and administrative expenses)

A Coffee Business and a Music Shop

Nowadays, anyone can buy and download music to their phones and computers. But to those customers who want the experience of going to a music store, listening to music, and discussing music with staff, they all get something that they could never fully get online: a real-life experience.

The same is true for coffee, right? Anyone can brew coffee at home but instead go to coffee shops.

Offering the experience of coffee or related drinks at a music shop can be delightful. Brewing espresso-based coffee drinks at a music store can increase daily sales, create a new revenue stream, as well as propel visitors to stay longer. We had seen this idea work at Easy Street Records and Café in Seattle, looking to supplement their revenue with existing customers and bring in new customers with a café.

Here’s what to do:

• Visit local and independent music stores
• Determine if you like the space and if a coffee business would work at their location
• If so, spend a little time and determine if the area has enough traffic to sustain your business
• Approach the owner of the business and see if he or she would be interested in subleasing a space
• Develop your coffee shop business plan

Estimated Coffee Business Startup Costs: 

$5,000 – $15,000 (Coffee equipment, cart setup and installation, utensils, legal and administrative expenses).

A Coffee Business and a Newspaper Stand

A magazine stand brings in customers who want to buy information “on the go.” So why not add a “coffee to go” with that newspaper or magazine?

Adding your coffee business can increase sales, attract new customers, and provide a greater, fuller experience for existing customers.

We've seen this idea work successfully here in Seattle's University District at a café called Bulldog News. It’s an incredibly successful café and newspaper stand that remains relevant today.

• Visit local newspaper stands in your city
• Traffic is essential. Consider the foot/vehicle traffic before moving forward
• Consider the space involved and your needs to deliver coffee
• Approach the owner and ask if he/she would be interested
• Develop and write your coffee shop business plan

Estimated Coffee Business Startup Costs: 

$4,000 – $15,000 (Coffee equipment, build-out, and installation, utensils, legal and administrative expenses)

A Coffee Business and a Flower Shop

Flower shops get slammed around the holidays or special days out of the year, like Valentine's Day, Mother's Day, and Easter. But then there are quiet times for the remainder of the year.

Offering customers an espresso bar can attract customers throughout the entire year can increase daily sales. Additionally, it can pique greater interest in the “core flower business” while supporting your coffee business as well.

Being associated with a flower shop can provide your coffee business with steady foot traffic, repeat customers, and perhaps shared costs. We’ve seen this at several places, including our favorite local café & flower shop in Seattle called the Admiral Bird and Flower Shop.

Here's what to do:

• Visit local and independent flower shops in your area
• Determine which ones will fit with your business concept
• Look if they have the available space
• Approach the owner and see if your concept will make a good fit for them
• Develop and write your coffee business plan

Estimated Coffee Business Startup Costs: 

$3,500 – $15,000 (Coffee equipment, build-out, utensils, legal and administrative expenses.)

A Coffee Business and a Hair Salon

Have you ever walked into a hair salon to see a half-dozen people staring blankly at a magazine, waiting to get their hair done?

Why not offer a way to increase sales by selling their customers coffee? Not only will you completely change the ambiance of a hair salon, but you can gain access to a daily stream of people and customers who want coffee as they wait.

You will want to serve the hair salon customers, but you will also want to attract passersby customers.

• Consider looking at independent hair salons.
• If you find one you like, consider the traffic in the area.
• Review local zoning laws and health department regulations.
• Approach the owner and determine whether you and your business will make a good fit.
• Write a coffee shop business plan and submit a business proposal.

Estimated Coffee Business Startup Costs: 

$5,000 – $15,000 (Coffee equipment, cart setup and installation, utensils, legal and administrative expenses)

A Coffee Business in a Laundromat

If you have ever been to a laundromat, you’ll know why opening a coffee business near or inside one makes sense. People are dying of boredom, have cash, and are willing to spend their waiting time drinking coffee.

Depending on the layout of the specific laundromat, you might be able to open up a small business in one of the corners of their existing facilities. Of course, check your city's local zoning laws and health department regulations.

Additionally, positioning a coffee kiosk just outside the laundromat would be beneficial as well. If it is a bustling laundromat location, setting up a coffee stand near or inside a laundromat can give you a steady stream of customers throughout the day.

Here’s what to do:

• Review local zoning and health department regulations
• Visit local laundromat locations in your area
• Determine if the space and general location fit within your business concept
• Approach the owner and see if he/she would be interested in your business proposal
• Develop and write your coffee shop business plan

Estimated Coffee Business Startup Costs: 

$5,000 – $20,000 (Coffee equipment, cart setup and installation, utensils, legal and administrative expenses)

A Coffee Business and a Shared Work Space

Shared workspaces are often wonderful places for people to work in today’s new gig economy. As a result, many cities and towns are seeing a growth of the chain and independent workspaces that play a key role in many entrepreneurs' lives.

A coffee business that finds itself within a shared workspace can be very beneficial and successful. We have seen this coffee business open several times in Seattle. Throughout the U.S., there are obvious benefits to everyone involved – a shared workspace can offer their “tenants” coffee and generate higher income.

This symbiotic relationship can help your coffee business and make the workday appealing to people who use the workspace.

Here’s what to do:

• Visit any shared work spaces in your city
• Determine if they have space and customer base for your coffee business
• See if they would be willing to have your coffee business set up there
• Write a business plan and proposal and approach them

Estimated Coffee Business Startup Costs: 

$3,500 – $15,000 (Coffee equipment, cart setup/build-out, and installation, legal and administrative expenses)

A Coffee Business and an Independent Boutique

Many small and independent retail boutiques offer clothing, soaps, candles, art, crafts, and other appealing products to shoppers. Adding the availability of a coffee and espresso machine can improve their overall experience.

Depending on the traffic and location, a well-placed coffee business can do very well in such settings, improving sales for the boutique as well as generating a steady flow of happy shoppers to your coffee business.

Here’s what to do:

• Visit several independent boutiques
• Like the other businesses, determine whether any of them would make a good fit
• Check with local zoning and health laws
• Approach the owners and see if they would be willing to look at a business proposal
• Make sure you have a coffee business plan ready, too

Estimated Coffee Business Startup Costs: 

$3,500 – $11,000 (Coffee equipment, cart setup and installation, small wares, legal and administrative expenses)

Low-Cost Coffee Shop Business Idea #2:

Sell Coffee at Farmer’s Markets

Sometimes, dipping your toes in a coffee business makes better sense. First, it allows you to see if “starting a full-time coffee business” is what you really want to do (this could also include a coffee roasting business). 

One of the low-cost ways to set up your own coffee business with little money is by selling coffee at your local farmer's markets. Whether you are an amateur coffee roaster and wish to dip your toes in serving coffee or you want to be a multi-roaster retailer, selling coffee at farmers' markets is a win-win situation.

Many farmer's market visitors dream of having a delicious cup of coffee on weekend mornings. This demand would be where you step in by offering them your selection of different coffee roasts and freshly brewed coffee. You may also consider selling coffee online to help with your sales.

Local farmer's markets everywhere are looking for quality small coffee businesses. 

If this is appealing to you, consider the following:

• Look up farmers markets in your community (you might have several)
• Determine what kind of coffee business you will want to start (coffee stand, mobile coffee business, etc.)
• Visit your local farmer's market website, get on their list of vendors, and determine any requirements they might have
• Get the needed coffee equipment (depending on the venue for the farmers market).
• Create a coffee business plan for your farmer's market
• Start selling coffee!

Estimated Coffee Business Startup Costs: 

$4,000 – $11,000 (Coffee Equipment, cart or tent set up, utensils, legal and administrative expenses)

For more information on selling coffee at farmers' markets, read our article, How to Sell Coffee at Farmers' Markets. 

Low-Cost Coffee Shop Business Idea #3:

Start an Online Coffee Business

Selling coffee online is one of the least expensive options for starting a coffee business.

Selling coffee online from home can give you a tremendous opportunity to develop your coffee brand and your customer base and allow you the time to immerse yourself in the retail coffee world. 

With a small investment of about $300 – $500, your online coffee business could also be a powerful first step in opening your physical coffee business. For more information, check out our post, How to Start an Online Coffee Business.

Estimated Coffee Business Startup Costs: 

$500 – $3,000 (Website, Shopping cart, Marketing, Inventory, legal and administrative expenses)

Low-Cost Coffee Shop Business Idea #4:

Start a Mobile Coffee Truck (Coffee Trailer)

Starting a mobile coffee business is an excellent low-cost way of breaking into the retail coffee industry.

A coffee truck can be expensive but doesn’t necessarily have to be. It all depends on the available options that you have available. If you buy a new coffee truck or trailer, remember that you will have to spend money building out your space and installing your coffee equipment.

However, starting a coffee truck can significantly reduce your costs compared to opening up a full-fledged coffee bar or drive-thru coffee stand.

A mobile coffee business also reduces the real-estate costs that we spoke about earlier.

Despite it being a small coffee business, you should consider knowing all you can about the retail coffee industry. Your research and planning will help you to avoid big monetary mistakes. And reduce your startup costs overall.

At Coffee Shop Startups, we have plenty of resources for starting a mobile coffee business, including an ebook you can purchase on our shopping page.

Here are a few essential articles to get you started:

• How to Start a Coffee Truck Business
• How to Start a Coffee Trailer Business
• Do Coffee Trailers Make Money?

Mobile Event Coffee Selling

Set up a coffee truck business. There is a huge uptick in interest and growth in the mobile coffee business industry. Many organizations and events want to offer coffee to their customers.

Whether you're interested in attending concerts, festivals, or other events – selling coffee in a mobile coffee truck can be profitable and cost less than a traditional coffee shop. No doubt, this is a great low-cost coffee shop business option for you.

Having a coffee truck business could be an entertaining and feasible profit center to build your business around. From festivals, weddings, corporate events, and birthdays to parties and farmer's markets, event selling can be the key to your annual profits.

What to consider:

• Decide on your mobile coffee unit concept
• Prepare and write your coffee business plan
• Get your coffee shop equipment
• Develop your marketing and promotion strategies
• Apply to various festivals

Estimated Coffee Business Startup Costs: 

$9,000 – $90,000 (Coffee truck, coffee equipment, build-out and installation, utilities, legal and administrative expenses)

Low-Cost Coffee Shop Idea #5:

Start a Drive-Thru Coffee Stand Business

Starting a drive-thru coffee stand is an excellent way to reduce your costs and be a great low-cost coffee shop business. Depending on the type of coffee stand, you may also be able to move into the right location for you (and your customers).  

A drive-thru coffee stand can also have high costs, but as a mobile coffee truck, a coffee stand business can be considerably less than a full-fledged coffee shop or coffee bar. This is largely due to the potential build-out, monthly lease, insurance premiums, and less equipment.  

You can significantly reduce your real-estate cost with this option, though you will most likely have to pay some rent.

Here’s what to do:

• Read our post, 15 Steps to Starting a Drive-Thru Coffee Stand
• Search for the right location 
• Study The local zoning laws
• Rent or purchase your stand
• Buy your coffee equipment
• Develop your coffee brand

Estimated Coffee Business Startup Costs: 

$10,000 – $95,000 (Coffee equipment, coffee stand purchase or rental, your build-out, legal and administrative expenses)

Low-Cost Coffee Shop Idea #6:

Espresso Catering Business

Opening an espresso catering business is one of the least costly retail coffee businesses to start.

It also has one of the highest ratios of profits-to-costs than any other small coffee business you can open.

With an espresso catering business, you bring your coffee brewing skills to people (customers) who need them during a particular event or party. Then, with relatively little fanfare, you can be up and running with minimal coffee equipment too.

If you are looking to start a coffee business with no money, there are plenty of great reasons to look at opening an espresso catering business.

For starters, an espresso catering business allows you to have no lease or rent obligations. Additionally, as an espresso caterer, you maintain complete flexibility over your personal schedule.

Due to an espresso catering business's nature, you can often avoid many other fixed costs that a normal coffee business owner would incur.

An espresso catering business requires some cash investment to cover equipment costs and other incidentals. Additionally, you will also need to pay for variable costs such as roasted coffee, milk, milk substitutes, sugar, etc.

Additionally, since an espresso catering business is among the lowest cost coffee business ideas out there, you can provide yourself a good platform to grow your coffee business and profits over time.

Estimated Coffee Business Startup Costs: 

$4,500 – $15,000 (Coffee equipment, portable coffee stand or mobile kiosk, small wares, legal and administrative expenses)

Benefits of Starting an Espresso Catering Business

• Minimum startup costs
• Overall lower costs (labor, operational costs)
• No lease obligations!
• Wider customer outreach
• Flexibility to work during various events
• Possibility to grow your business
• Quick return on your startup money
• Sharing personalized coffee experience

Possible Events To Run Your Espresso Catering Businesses: 

• Company parties
• Christmas Parties 
• Weddings
• Corporate Meetings
• Church Events
• Fundraising Events
• Birthday Parties
• Anniversary Parties

Low-Cost Coffee Shop Ideas

Low-Cost Coffee Business Opportunities

We have listed several low-cost coffee shop business ideas above. As you can imagine, the price of these low-cost coffee business options varies for several different reasons. For example, your coffee business concept, menu, equipment costs, lease, rental options, etc., all impact your overall costs. 

Starting an espresso catering business can run you about $5,000 to $12,000. A coffee stand business can cost you $10,000 to 150,000 to get off the ground. A coffee truck business can cost you anywhere from $20,000 to $90,000.

The good news is that there are ways to reduce your up-front costs, as well as your ongoing operational costs and your one-time startup costs. But to do this effectively without compromising your coffee service, you must have a concrete starting point. And you need to develop a realistic budget. Once that is done, you can trim your costs down as much as possible.

However, remember that you can always grow your coffee business into the dream business you’ve always wanted, no matter how small you start.

Low-Cost Coffee Shop Ideas

Raising Funds for Your Coffee Shop

So now that we've covered some options for starting a coffee shop with little money, you might want to brainstorm on what low-cost coffee business direction works best for you at this time.

Even after considering these options, you might still think you don’t have enough money to start your coffee shop.

What can you do?

First, pick the most viable coffee shop option that you can fully get behind. Then, determine exactly how much this coffee shop option will cost. This can be done within your coffee shop business plan.

Next, consider just how much money you will need to raise. You may have to raise only a portion of the funds. However, you may have to raise all of the funds.

Once you know exactly how much money you will need (based on your coffee shop startup estimates), you then seek out funds in the following ways outlined below.

Small Coffee Shop Ideas (Low-Cost)

Your Coffee Shop Funding Mix

Borrow from friends and family

Borrowing from friends and family can be beneficial for many reasons. You may be able to work out better repayment terms and reduce your interest payments while still keeping your interest payment within the family. Consider writing out a clear loan agreement to sustain your relationship and friendship.

Apply for a business loan

Applying for a coffee shop business loan happens regularly. When applying for a bank loan, the bank will most likely want to see your coffee shop business plan.

Crowdfund your coffee shop

Crowdfunding is a growing trend among coffee businesses. We have personally seen many successful crowdfunding coffee shop campaigns that provided aspiring coffee shop owners with seed money, money to complete their build-out or buy equipment such as a coffee roaster.  

Look for investors

Depending on your social and professional network. You may be able to find an investor who can provide you with the upfront cash to start your coffee shop. Like a bank loan, your investor will want a clear written agreement on what they are getting back. It could be an interest or a percentage of your profits for a given amount of time. Ensure that you run the numbers and feel good about the agreement before signing on to this method.

Start a cooperative (co-op)

A cooperative is a relationship where like-minded people bring in their funds, labor, and experience to create an organization. A coffee shop co-op can be structured where all costs, responsibilities, and profits are shared. We've seen this in action in Seattle and have interviewed one of the co-owners of this unique business model. In this interview found in our Complete Coffee Shop Startup Kit, he details how to start a coffee co-op and suggests why this strategy works for him and the rest of his co-owners. 

Partner with someone

Every day, successful small businesses are started through partnerships. A well-formed partnership can allow two or more people to start a business by bringing in their assets, expertise, and money. Bringing on an extra person to help with any number of things that need to be taken care of can be beneficial. Just make sure that there are responsibilities for each partner is written out and agreed to.

Which Coffee Shop Funding Mix is Right For You?

As you can see, there are various ways to raise a portion or all of the funds needed to start a coffee business. You can borrow from friends and family, apply for a business loan, crowdfund all or a portion of your budget, look for investors, start a co-op, or enter into a partnership.

All of these are great options. You can do a funding mix that adds a percentage of some of these. Each has its advantages and disadvantages.

It should not take you very long to obtain the money you need with a diverse funding mix. To get started, write your business plan, develop your budget, determine where you are financially, and consider each of these funding options for your coffee shop.

Further Reading: How to Develop Your Coffee Shop Funding Mix

Small Coffee Shop Ideas (Low-Cost)

Low-Cost Coffee Shop Business Ideas

Related Questions:

Is a low-cost coffee business profitable?

Yes. A low-cost coffee shop can be profitable and bring in just as much revenue as a traditional coffee shop. However, it really depends on each coffee business itself.

For example, a bustling drive-thru coffee stand can generate income comparable to other brick-and-mortar coffee shops. A coffee cart or kiosk within a school or university can generate steady income daily.

While each coffee business is different and operates in a different location with a different menu and customer base, a low-cost coffee business can generate thousands of dollars weekly.

Of course, it depends on your coffee business concept, how often you’re working, the volume of sales, and your price points. Certainly, a low-cost entry point into the coffee industry does not have to indicate a low-profit business.

I will repeat it:

A low-cost coffee business DOES NOT EQUAL a low-profit business.

In fact, plenty of high-rolling coffee shops struggle to generate healthy profits and stay above water. This is because much of their income has to be put right back into the business's operating budget and a list of costs that need to be paid every month.

While a traditional coffee business may bring in more revenue, you often have to pay back the high cost of rent, the hourly wages of multiple baristas, insurance, utilities, inventory, and marketing. All of these eat away at your profits.  

We explore how much a coffee shop owner would make in our in-depth post, How Much Do Coffee Shop Owners Make?

Low-Cost Coffee Shop Ideas

Low-Cost Coffee Shop Ideas Summary

As you can see, there are plenty of low-cost ideas when it comes to coffee. You just have to keep a sharp eye and look for opportunities in your neighborhood.

Remember:

• Think outside the box
• Look for filling a need
• Develop novel partnerships
• Reduce your need for renting a space (or minimizing it)

Any combination of low-cost coffee shop ideas can work, as long as it appeals to your customer base.  Let's summarize the low-cost coffee shop idea list below.

• Sell coffee in independent boutiques.
• Retail coffee at farmer's markets.
• Start a coffee truck or coffee trailer business.
• Start an online coffee business.
• Open a coffee stand or espresso stand business.
• Piggyback on an existing business.
• Set up a coffee cart.
• Open a coffee kiosk business.
• Start an espresso catering business.
• Partner with newspaper stands and sell coffee.
• Set up an espresso machine inside a flower shop.
• Start a coffee business in a shared workspace setting.

Are You Ready To Get Started?

Unlock Your Dream Coffee Shop Business with Our Exclusive Coffee Shop Startups Kit!

Ready to transform your passion for coffee into a thriving business? Look no further! Our Coffee Shop Startups Kit is your key to brewing success. Here's why you can't miss this opportunity:

35-Lecture Coffee Shop Business Course: Our kit provides a comprehensive A-to-Z lecture series that covers what you should know and how to plan your coffee business. No more guesswork – follow our proven roadmap for success.

Comprehensive Coffee Shop Business Guide: Our kit includes a detailed, step-by-step guide that takes you from creating your concept to your grand opening.

Expert Interviews and Insights: Benefit from insider tips and industry secrets that successful coffee shop owners and experts share during one-on-one interviews. Learn from the best to stay ahead of the competition.

 Business Essentials: We provide business plan templates, checklists, and resources to streamline your startup process. From permits to menu planning, we've got you covered.

Cost-effective Solutions: Save time and money with our expert advice and budgeting tips. Maximize your ROI and minimize headaches.

 Adaptable to Any Setting: Our kit is designed to suit various locations and customer demographics, whether you're eyeing a trendy urban spot or a cozy corner in a suburban neighborhood.

Includes Exclusive BONUS Material!

👉 Order Now and Begin Your Journey!

Don't let the complexities of starting a coffee shop overwhelm you. Our Coffee Shop Startups Kit is your ticket to entrepreneurial success. Take the first step towards owning a profitable and fulfilling coffee business today.

Join the thousands of successful coffee entrepreneurs who started with a dream and a great plan. Your journey to coffee shop greatness begins right here!

Comprehensive. Proven. Affordable.

The Complete Coffee Shop Startup Kit

(Instantly Delivered To You)

Complete Coffee Shop Kit Sales Graphic

Coffee Shop Startups

Based in Seattle, Washington, USA, Coffee Shop Startups is dedicated to providing you with the most relevant information on how to start a coffee shop business successfully. Over the last 11 years, we've helped thousands of aspiring coffee business owners worldwide. We harness the experience, wisdom, and knowledge of many successful coffee shop owners to help you increase your chances of success and profits. We support business owners who want to start a coffee business by providing them with valuable information on starting their coffee business successfully.