Save Money When Opening a Coffee Shop
Save Money When Opening a Coffee Shop
Save Money When Opening a Coffee Shop
Starting a coffee shop takes money, but there are certainly ways to save money. In fact, finding ways to save money when opening your coffee business should be a high priority because if it’s not, your spending can run away with you.
Essential first steps such as researching, developing a concept, writing a coffee shop business plan, and developing a budget will be critical to any good start. However, there are other ways to be one step ahead of your coffee shop business costs.
Again, after developing your coffee shop budget and coffee shop funding mix, consider the following ways to save money when opening a coffee shop.
Related Reading: How to Start Your Coffee Shop on a Budget
How to Save Money Opening a Coffee Shop
Be a Budget Hawk
It’s easy for expenses to get out of control, so be a budget hawk. Location, remodeling, and coffee equipment can really get expensive.
Ask yourself at every turn:
- Do I need to spend this amount of money?
- Is there a less expensive way forward?
Before spending any money and jumping right in, take your time. Be a smart shopper. You will create a thriftier mindset by holding your purse strings tight, thinking smarter, and looking for ways to save.
Start Small (Position for Growth)
You may have an incredible vision of a large, multi-faceted coffee shop with a deep menu and large space. You might be envisioning a bakery, coffee roasting operation, and large menu. However, you may need to start smaller – for now.
Starting smaller may not have everything to do with money to start your coffee business. Starting smaller may be to help you grow into a better coffee business owner and manager. Sometimes, starting too large with anything might put you in a position where you “bit off more than you can chew.”
I’ve always believed that taking smaller, baby steps toward your coffee business dream can be more beneficial and profitable in the long run.
Remember that your evolution and growth are part of the process. Plenty of excellent coffee shop business concepts will position you to start smaller but position yourself for growth.
For example, you may consider setting up a drive-thru espresso stand or starting a coffee truck business.
Choose the Right Location
We’ve written extensively on the importance of choosing the right location – as it is ultimately one of the most significant decisions you’ll need to make. Choosing the right coffee shop location comes down to finding the best spot to reach your target market.
However, that potential coffee shop location can be expensive. Your geographical location will impact how much your startup and operational expenses will be. So, work hard to pick a general location that serves your target customer without breaking the bank.
Choose the Right Space
Choosing the right space is different from choosing the right location. The right space fits in within your location but can vary depending on the physical building or actual space. For example, you may decide to open a coffee shop on a particular street, but the actual space may depend on availability, competition, or terms of the coffee shop property lease.
The right space for you is impacted by:
- The terms of the property lease
- The physical condition of the lease
- Any needed remodeling or construction
- Price for that location (rent, deposits, trash, business district fees, taxes, etc.)
Choosing the right coffee shop location and physical space will be critical for you in decreasing your startup costs.
Limit Your Coffee Shop Menu
First, let me say that your menu drives your sales and, ultimately, your profits.
You’ll want to create a coffee shop menu that satisfies your target customer and drives enough sales for you to be profitable. However, limiting your menu does three essential things, in my opinion.
It reduces the amount of labor, space you need, and equipment costs.
Your labor, space, and coffee equipment needs must exponentially increase your startup and operational costs. First, you'll save on rent if you don’t require a considerable back house or kitchen. You'll save on equipment costs and rent if you don’t need the extra ovens, stoves, refrigerators, and storage space. Finally, if your menu is simple, you’ll likely need fewer back-house staff and a reduction in baristas, cooks, or bakers to produce what you’ll need.
Piggy Back Your Coffee Business
Leverage the power of cooperation with other existing businesses. By piggybacking your coffee startup with an existing business, you can reduce your coffee shop startups considerably. I’ve estimated that it’s not unrealistic to save anywhere between 40% – 60% of your initial startup costs and 40% of your operational costs.
We’ve written about the process and benefits of piggybacking your coffee shop. It remains one of the best ways to start your coffee business fast and with less money.
For example, a flower and plant shop and a coffee business may complement each other. Or an office building or freelance workspace may also need a coffee business to compliment their business. These existing businesses get to benefit from increased traffic, rental income, and providing their clients and customers with additional services.
Think Out of The Box
There is no right way to start a coffee shop. I think it’s important to think outside the box to save money and utilize ways to disrupt the standard way to open a coffee shop. This might mean starting small—either as an espresso catering business, a mobile coffee business, a drive-thru coffee stand, or getting into pop-up coffee bean sales and selling at farmers' markets.
Start an Online Coffee Business
Consider this: even before opening up a brick-and-mortar coffee business or starting a mobile coffee truck business, you might consider starting an online one.
Selling coffee online is probably one of the easiest and most effective ways to develop brand awareness. In addition, starting an online coffee business can help you develop your coffee expertise. You can develop a loyal customer base while making money, developing your brand, and working with local roasters.
For more information, read Five Steps to Open an Online Coffee Business.
Saving Money When Opening a Coffee Shop
Saving money when starting a coffee shop takes work, takes thoughtfulness, and research. It means looking before you jump into this adventure.
That is why we’ve created an affordable and very comprehensive coffee shop startup kit that will help you start your coffee shop business planning.
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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.
