100 Tips to Start a Coffee Shop Business

Tips to Start a Coffee Shop Business

Coffee Shop Startups

100 Tips To Start a Coffee Shop Business

Starting and opening a coffee shop business can be exciting and challenging at the same time. Since we get many emails about various topics, we wanted to create a list of tips on how to start a coffee shop that we hope can help get your thoughts focused on some of the topics surrounding retail coffee.

Whether you hope to start a coffee shop, mobile coffee truck or drive-thru coffee stand business, explore our tips and our coffee business blog.

Each tip below poses an opportunity for you to exercise your creativity in setting up your coffee shop. Keep in mind that this is not a complete list of starting your coffee shop, but we think it's a good start!

100 Tips to Start a Coffee Shop

(In no particular order)

Tips to Start a Coffee Shop

Tip #1: Determine Who Your Coffee Shop Customers Will Be

Understanding your market will help you determine your product, service, and competitive advantage. Knowing your coffee shop customers will help you sell more coffee, boost sales, and increase profits. Not all coffee shop customers are the same – some customers want a place to study or meet a colleague to work, while others want a quiet place to read a book or listen to live music. Determine what your customers want and offer that.

Tips to Start a Coffee Shop

Tip #2: Get Your Finances In Order

Starting a coffee shop business requires money, but you want to ensure that you have enough to pay the rent, food, and other essential expenses. Effective personal money management will be vital as you begin to expose yourself to the risk of a coffee business venture. You need two available money jars: one for your life's expenses and the other for starting your business. It would help if you considered separating these early.

Tips to Start a Coffee Shop

Tip #3: Understand Your Budget

As you get your finances in order, you will begin to realize how much you can personally contribute to your coffee shop startup. What's a realistic number that you can put into your business? Is it $5,000, $25,000, $75,000 or more? Knowing how much personal money you can bring to the table is essential to your financial security. Understand the cash you have to invest in a business and then determine how much you will need to borrow or raise to see the project to completion. In addition to your coffee shop funding mix, start developing your coffee shop budget early.

Tips to Start a Coffee Shop

Tip #4: Apply For an LLC

Before you open a bank account, you need to establish your business structure. There are different options to do it, like establishing a corporation or a partnership. However, the most typical one is setting up an LLC or a Limited Liability Company.

Tips to Start a Coffee Shop

Tip #5: Visit other coffee shops for fun

Visiting other coffee shops will help you understand what your competition is doing and what type of products they offer. Just visit a local coffee shop and take notes of what you like and don't like about them. This will help you crystalize your own coffee shop concept.

Tips to Start a Coffee Shop

Tip #6: Sample Local Coffee Roast Profiles

Where will you get your coffee from? If you are not roasting your beans, you will likely be working with a local coffee roaster. We recommend starting early and exploring new local coffee supplied by passionate roasters.

Depending on your geography, you might also decide to get your wholesale coffee beans delivered through the mail, especially if you like a particular brand or roasting profile.

Tips to Start a Coffee Shop

Tip #7: Learn About The Origin of Coffee

Owning a coffee shop requires an understanding of coffee and where it comes from. You would be surprised at how many coffee shop owners have yet to see the value in this.

Learning and eventually training your employees about different coffees and their origins is essential. It's hard to imagine walking into any specialty shop, from cheese, bread, to wine, and discovering that the owner or its employees don't know anything about the products that they are selling. Explore coffee from local roasters, attend seminars, coffee expos, coffee blogs, and consider attending “coffee cuppings,” for starters.

Tips to Start a Coffee Shop

Tip #8: Develop Your Coffee Shop Concept

Spend some time daydreaming about your coffee business. Imagine the space, ponder the themes, the colors, the customers (who are they?), serving your coffee and other items. Take pictures of coffee shops you like, check out Pinterest and Instagram, and think about things you would like to emulate in your coffee shop.

Additionally, start taking notes and keeping a notebook. These thoughts and flashes of inspiration will eventually need to be articulated in a coffee shop business plan.

For more information and inspiration, read 50 Great Coffee Shop Concept Ideas.

Tips to Start a Coffee Shop

Tip #9: Develop Your Mission Statement

Having a mission statement can help you keep your “eye on the ball” when things get busy, messy, and confusing. A mission statement can be a powerful touchstone to accomplish the vision you first set out.

Consider the mission statement of three huge businesses:

Uber: “We ignite opportunity by setting the world in motion.”
Microsoft: “To empower every person and every organization on the planet to achieve more.”
Starbucks: “To inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time.”

Big corporations don't like to spend time and money and any effort communicating trivial things. They see a mission statement as a powerful way to lead their business and steer their actions. This should be true for you when you set out your coffee shop. Take a moment, write down your mission statement and keep it with you.

Tips To Start a Coffee Shop Business

Tips to Start a Coffee Shop

Tip #10: Plan Your Coffee Shop Menu

Your coffee shop menu is the cornerstone of your business. It's the very first thing you should figure out after you decide to move forward with your coffee shop business. Your coffee shop menu will determine what your coffee shop budget looks like, your coffee equipment needs, and your physical space needs.

Tips to Start a Coffee Shop

Tip #11: Get to know local contractors

While this might not be the first thing on your coffee shop startup list, you should begin to put your “feelers” out there to find good contractors you'll most likely need. As a coffee shop, you will need to find reliable, honest, and knowledgeable contractors in plumbing, electrical work, and carpentry.

While you may seek the advice of others who are familiar with these trades, you want to have the work done by someone who is licensed, bonded, and insured in your state or country. Start asking around with existing coffee shops or restaurant owners. After you ask a few different business owners, you will begin to hear names of people to contact and names of contractors to avoid. So, start early.

Tips to Start a Coffee Shop

Tip #12: Examine Your Competition

You want to have a good idea of who your competition is. What are their strengths, and how can you uniquely position your coffee business to succeed in your marketplace?

Tips to Start a Coffee Shop

Tip #13: Observe What Coffee Shops Are Doing Right (and Wrong)

Consider what your local coffee shops are doing right to increase their sales, retain their customers, and boost their coffee shop branding.

On the other hand, what are they doing wrong? Make notes of this as you begin to develop a coffee shop business concept and make hard planning decisions. Many times, you can walk into a coffee shop and see something extraordinary happening. Determine what that is and figure out how you can adapt it to your business idea.

Tips to Start a Coffee Shop

Tip #14: Sample Food Vendors

When you decide on your coffee shop menu, begin sampling local vendors (bakeries, coffee roasters, among others) who offer wholesale accounts. Start early and cast a wide net. Experiment. Explore. Have fun!

And yet, be purposeful in your exploration. Determine wholesale costs, order minimums, delivery costs, and other essential items that pertain to these vendor relations.

Tips to Start a Coffee Shop

Tip #15: Choose Your Coffee Shop Business Name

While it's essential to develop a personal and locally identifiable name, you should make sure that you pick a coffee shop name that does not violate any trademarks. The name of your coffee shop business is essential. It's the first thing and last thing people will think about when they focus on your business.

After you have a few names in mind, consider sharing them with a couple of friends and family members. What do they think? Consider doing a Google search and determining if the name already exists or is in use. If a coffee business name already does exist, you may try to slightly change it to be uniquely yours and relevant to your locale.

Tips to Start a Coffee Shop

Tip #16: Attend a Coffee Event, Coffee Seminar, Festival, or Talk

If you are lucky enough to live in a city that hosts major coffee events or seminars, you should take advantage of it and attend! You want to invest in flying to the nearest one for the experience.

But if you do so, consider researching beforehand to make the most of your trip. Meeting vendors, talking with experts and coffee business veterans can be helpful and insightful. Attending a retail coffee business event can help develop contacts, hear and learn about trends, understand ongoing industry issues, and meet like-minded entrepreneurs.

Tips to Start a Coffee Shop

Tip #17: Get Your Website Domain Name

Every business needs a website. We recommend getting your coffee shop website domain first. Check sites like Bluehost that sell domain names and website hosting. Pick a website domain name that reflects your business name (if it's available).

Tips to Start a Coffee Shop

Tip #18: Create a Website For Your Coffee Shop

Getting your website up and running will be necessary. If you feel you do not want to share your idea with the world just yet, you can put up an “under construction page” while you work “behind the scenes” developing your coffee shop website.

To get started, read our article about how to set up a coffee shop website for your business.

Tips to Start a Coffee Shop

Tip #19: Setup Your Social Media Accounts

In addition to getting your website going, get your social media accounts up.

Social media can take up much time and not necessarily impact your sales directly (unless you are a mobile coffee shop business). I want to emphasize that social media development requires time, thoughtful attention, and action, but it should be done. For starters, get your Instagram and Facebook accounts open.

Tips To Start a Coffee Shop Business

Tips to Start a Coffee Shop

Tip #20: Speak Directly to Other Coffee Shop Owners

Coffee business owners have lots of advice. They are often willing to help answer questions about any number of subjects. In our opinion, they are the best resource for starting your coffee shop business.

We've created an excellent Complete Coffee Shop Startup Kit with multiple interviews from coffee shop owners and coffee business experts who can shed light on the path you may want to take with your own coffee business.

Tips to Start a Coffee Shop

Tip #21: Collect Emails Via Your website

Email marketing is nearly three times more effective than social media at directing your customers to take some action. Additionally, it only requires about the same amount of time and effort.

With emails, you can notify local supporters of your upcoming coffee shop grand opening and subsequent news. For example, after your coffee shop opening, you can inform customers about special drinks, prices, or special events.

Tips to Start a Coffee Shop

Tip #22: Count Customers Before Choosing a Location

Counting customers is simply the process of counting and estimating how many customers will visit your business based on existing foot and vehicular traffic.

Before purchasing your turn-key coffee business or starting from scratch, you should consider counting customers. Counting customers can help you make better decisions regarding your anticipated sales, coffee shop break-even point, and valuation of the coffee business itself.

Tips to Start a Coffee Shop

Tip #23: Write a Coffee Shop Business Plan

Your coffee shop business plan separates you from the dreamers. Having a coffee shop business plan in hand will be important when pitching your business to investors and property managers – and it will help you make better, more informed financial decisions.

A business plan isn't easy to write as it takes time and thoughtful decision-making. It is one of the first barriers to starting a coffee shop business.

We make it easier to write your business plan with our Coffee Shop Business Plan Guide and Template offered in our Complete Coffee Shop Startup Kit.

Tips to Start a Coffee Shop

Tip #24: Develop a Coffee Shop Business Budget

Before launching your coffee business, you need to develop a coffee shop budget. To flesh out your budgetary plans, you will need to add up your costs and apply that against your anticipated sales.

It's essential to have a solid budget before opening a coffee shop, as it'll help you prepare for any unexpected costs and avoid a financial disaster.

Many coffee shop entrepreneurs fail to do this even after spending thousands of dollars and being in too deep to back out without losing even more money. The best thing to do is to understand your budget, budget constraints, budget goals, and break-even point – right from the start!

Tips to Start a Coffee Shop

Tip #25: Look at Physical Locations

Start looking for potential spots for your coffee shop or drive-thru business. In choosing the best location for your coffee shop, keep in mind the need to access customers, tax considerations, real estate costs, labor, and other regulatory issues. Access to foot traffic, parking access, and other factors are essential to your coffee shop location.

Tips to Start a Coffee Shop

Tip #26: Examine Local Real Estate Costs

Many factors go into making the right decision with your property lease. Research your options. The wrong decision could potentially tie you into massive financial losses, setting your coffee shop up for failure before your coffee shop has the chance to succeed.

The cheapest leasing location may not be the best option for your coffee shop's success. That means the more expensive site may bring you more sales. You need to do your research and determine the costs versus sales benefits of your leasing decision.

Our Complete Coffee Shop Startup Kit has an excellent audio interview focusing on coffee business leasing topics that we strongly recommend you listen to. It provides a detailed discussion of essential leasing options.

Tips to Start a Coffee Shop

Tip #27: Talk to Neighboring Businesses Before Signing a Lease

Before signing a property lease agreement for your coffee shop, you can learn valuable information by visiting neighboring businesses. What are current or anticipated issues? Crime? Taxes? Competition?

It's highly recommended that you walk the neighborhood or business district and feel for the area. Ask a few questions. Tell neighbors that you are considering opening a business here and ask their impressions of the area. Visit the site at night and on the weekends to determine any differences in foot traffic, safety, and community vibe.

Tips to Start a Coffee Shop

Tip #28: Research Tax Codes

Tax rates can vary between city, county, and state. Sometimes, where those lines are can be confusing. As you begin to look for an area to set up your coffee shop business, make sure you understand each layer of boundaries, tax rates, and your reporting dates.

Tips to Start a Coffee Shop

Tip #29: Study Real Estate Trends

Since your rent and insurance will impact your monthly fixed costs, studying trends is essential, especially when you sign a coffee shop lease for a specified period of time. If you have time before you start your planning and open your coffee shop, it's recommended that you study real estate trends in the area. Construction projects, local tax, and regulation changes, neighboring property developments could impact your property taxes and lease payments.

Tips to Start a Coffee Shop

Tip #30: Local Health Department's Requirements

Having a positive relationship with your local health department will benefit your coffee business. Viewing them as a positive partner who can help you run your coffee business successfully – is essential. Take an opportunity to review your local health department's website.

If your local health department doesn't have enough posted information online, give them a call or drop by. Chances are they have dealt with many questions about opening a coffee shop or food eatery before and are ready to provide you with any necessary information.

Tips To Start a Coffee Shop Business

Tips to Start a Coffee Shop

Tip #31: Review Your Local Building's Department Guidelines

Ensuring your physical space is “up to code” is vital before signing your coffee shop lease. If you are planning on significant remodeling, you should speak to your local building department. See what requirements are needed before you sign your lease.

Just like with your health department, we strongly recommend that you visit your local building department to ensure that you are doing all you can to follow your building codes.

Tips to Start a Coffee Shop

Tip #32: Establish Your Business Structure

Establishing your legal entity allows you the tax benefits and legal protections you will need to start your business.

For example, by opening a limited liability company, you can open a bank account under your name. This will be an essential first step to protecting your business and finances and opening up essential bank accounts for your coffee shop business.

Tips to Start a Coffee Shop

Tip #33: Open a Business Bank Account

After you get your coffee company's LLC established (or some other business structure that works for you), you'll want to open a bank account early. Avoid co-mingling your money with your business funds. The IRS likes to keep their money (earnings and expenditures) clean and separate from their business.

Tips to Start a Coffee Shop

Tip #34: Know Your Coffee Equipment Needs

Choosing the right coffee equipment for your coffee shop is incredibly important. As mentioned earlier, your equipment needs are based on your menu, but they also depend on your physical space and budgetary factors.

Choosing the right coffee equipment and other equipment can be trickier than first imagined. Our hour-long audio conversation offers an insightful discussion (potentially saving you thousands of dollars).

Tips to Start a Coffee Shop

Tip #35: Apply for a Business License

After you get your LLC formation confirmation, you will then apply for your business license. You may do this soon after receiving confirmation that your corporation or business has been formed.

Tips to Start a Coffee Shop

Tip #36: Attend Coffee Cuppings Regularly

Get to know various roasted coffee profiles and consider serving the ones you like at your coffee shop. Attending coffee cuppings at local roasters will help improve the quality of the coffee that you want to serve. Additionally, coffee cuppings will enhance your palate and appreciation for various coffee roasts and blends.

Tips to Start a Coffee Shop

Tip #37: Buy an Espresso Machine

You need to invest in a good espresso machine, which ultimately is at the heart of your retail business operation. Of course, you will need a great coffee grinder and other coffee equipment, but having a dependable espresso machine – one that can be serviced easily – is critical.

We provide a great discussion on your coffee equipment you will want to hear in our Complete Coffee Shop Startup Kit. We cover everything from your espresso machine, coffee grinders and, more importantly – the approach you should take when starting your coffee business.

Tips to Start a Coffee Shop

Tip #38: Sell Excellent Coffee Beans

Have you ever met a wine shop owner who strives to offer mediocre wines? Nope. Have you ever met a beer shop owner just interested in selling average beer? That would be ridiculous.

Still, unfortunately, you can find plenty of “coffee shop” entrepreneurs selling crappy coffee.

I have a feeling that your coffee shop will be a lot different! And it should be.

After all, if coffee is your business, shouldn't you provide the best possible coffee beans you can find? I prefer going local and finding a wholesale coffee roaster that provides you with suitable coffee profiles and a good contract that benefits your business … and your customers!

Tips to Start a Coffee Shop

Tip #39: Consider Local Milk Companies or Dairy Farm

Milk is an essential element of your coffee business. While you can go to the store and pick up gallons of milk (as needed), you might be surprised by the good deals (and quality) of milk that come directly from your local dairies. Check out your local dairies and see what options they have for you. Wholesale price points matter, but so do quality and the taste of your coffee.

Tips To Start a Coffee Shop Business

Tips to Start a Coffee Shop

Tip #40: Know the Local Labor Laws

Local labor laws impact your business. Get to know all the rules and requirements you will need before you start and run your businesses. Get on local agencies' email lists and stay up-to-date by attending any seminars or forums they may offer.

Tips to Start a Coffee Shop

Tip #41: Explore Teas, Chai, and Syrups

Many coffee shops offer a variety of coffee blends, teas, chai, and syrups. You may live around some great local producers. If not, consider researching what other local coffee shops are offering. You might be able to make your syrups and chai. Additionally, consider getting your teas from local wholesalers.

Tips to Starting a Coffee Shop

Tip #42: Get to Know Local Baristas

The baristas you choose can propel or sink your coffee business. Start early and get to know local baristas in your area. Perhaps one day, they will be working for you in your coffee shop business. Reliable, personable, and great baristas are hard to find, so it's sure helpful to start earlier than later.

Tips to Start a Coffee Shop

Tip #43: Create Your Coffee Shop Logo

Having a coffee business logo that stands out and represents your coffee shop will be necessary. You may need to experiment a little and get several mock-ups before deciding on your final logo. Start early. Visit websites like 99Designs or UpWork.com to find an affordable graphic design service for your coffee shop.

Tips to Start a Coffee Shop

Tip #44: Develop Your Coffee Brand

Your coffee shop brand is critically important to your business as a whole and its inherent perception by your customers.

It creates a certain level of expectation, confidence while playing into your competitive advantage. Your branding needs to be defined by you – or it will be determined by your competitors or customers, which is what you don't want to do.

Tips to Start a Coffee Shop

Tip #45: Define Your Marketing/Promotional Goals

Figuring out your objectives will be vital as you write your business plan. Determine how you intend to reach your customer base. Understand that your marketing budget is ultimately limited and that you will need to do your best to communicate your grand opening and develop a buzz in your community. Begin creating a marketing strategy that will maximize your exposure to local customers.

Tips to Start a Coffee Shop

Tip #46: Get Familiar with Hiring and Labor Laws

You will most likely be hiring at least one employee, and most likely more than that. As an employer, you will need to be familiar with laws in your area (city and state laws). Visit your state's Department of Labor for more information.

Tips to Start a Coffee Shop

Tip #47: Decide On A Physical Location

Deciding on the “right” location will impact the success of your coffee shop business in the long run. However, choosing the right site needs to be juxtaposed with the costs of your lease (and the terms), the competition, foot traffic, and other factors.

Tips to Start a Coffee Shop

Tip #48: Review Your Lease Before You Sign It

Review your property lease. Twice. Three times. Your lease can either support your business or completely ruin your business. We encourage you to get help if necessary. At the very least, consider listening to our informative interview that is part of our Complete Coffee Shop Startup Kit.

Tips to Start a Coffee Shop

Tip #49: Determine Your Break-Even Point

Your coffee shop's break-even point is the line between losing money and making money. Determining your coffee shop's break-even point will be an essential part of your business planning. It impacts your pricing your management decisions, among others.

Tips To Start a Coffee Shop Business

Tips to Start a Coffee Shop

Tip #50: Consider Selling Alcohol

Selling coffee in the morning and alcohol in the evening has become a popular coffee shop concept lately. It allows you to reach a broader customer base and significantly increase your profit margins. However, selling alcoholic beverages might require getting additional permits and be more vigilant about the customers that visit you in the evening.

Tips to Start a Coffee Shop

Tip #51: Choose a POS System

Making money means making transactions. To process your transactions securely, safely, and without any problems, you're going to need a Coffee Shop POS system. A modern POS system will make transactions secure while helping you with your inventory management, marketing efforts, and customer trends. We like Lightspeed POS for coffee shops.

Tips to Start a Coffee Shop

Tip #52: Always Mitigate Waste

Reducing accidental spills, food waste, and expired goods will help avoid unnecessary costs. While there's always be some waste (for example, when dialing in coffee), you can significantly reduce your expenses related to wasted products.

Have barista trainings regularly and instruct your employees to use products smartly and economically. Also, study your POS system data and introduce innovative inventory management in your coffee shop. This together will allow you to reduce the number of expired items that don't sell.

Tips to Start a Coffee Shop

Tip #53: Serve Nitro Coffee or Cold Brew

A significant percentage of your patrons will also order cold brew drinks, especially during the summer. Will you serve it? Determining whether you will serve nitro coffee or cold beverages will be an essential part of your decisions as you plan out your menu items and buy coffee shop equipment.

Tips to Start a Coffee Shop

Tip #54: Invest in Coffee Education

Invest in your coffee shop startup knowledge. The more you know about coffee, the better product you will offer. Invite coffee educators to teach your baristas about coffee and coffee brewing techniques. Organize coffee education events for your customers to taste your coffee samples and learn more about the products you offer.

Our Coffee Shop Startup Kit provides you with an excellent resource to help you learn about coffee and the retail coffee business. Investing in your coffee business knowledge will help save you time and potentially lots of money down the road.

Tips to Start a Coffee Shop

Tip #55: Understand That Each Decision Has A Cost

When it comes to your coffee shop, each decision you make usually has a price tag—investing in developing your coffee shop business plan before you make any decision will save you money. But where do you get the information to know what decision to make?

How do you build an expertise-based framework to make decisions? We believe that you should interview as many coffee shop business owners as possible. Questioning and reflecting on the knowledge you gain can save you money. Therefore, research first, plan, and then execute your plan.

Tips to Start a Coffee Shop

Tip #56: Be Frugal With Your Money

You will be tempted to buy little things here and there for your business. Coffee tables, cups, paintings, etc. – some things that may be less important to the foundation of establishing your coffee business, than say, an espresso machine or a security deposit. If you feel like you need to start spending money, invest in exploring, researching, and learning about the coffee retail business. Be frugal but not cheap.

Tips to Start a Coffee Shop

Tip #57: Finalize Your Coffee Shop Menu

We can't stress this enough: Your menu will determine everything about your coffee business. So, figure out what you are going to serve – and then move forward from there. Adapt your equipment needs as you finalize your menu. If needed, change your coffee menu after studying your customer needs and your profit margins.

Tips to Start a Coffee Shop

Tip #58: Don't Buy Coffee Equipment Before You Know Your Menu

You do not want to invest your money before understanding your menu, budget, and space needs. Your menu usually determines the space and equipment requirements for your coffee shop. But if you found a smaller space than you planned initially, you need to revise your menu and probably hold off on buying coffee equipment.

Tips to Start a Coffee Shop

Tip #59: Determine Your Build-Out Costs

Some costs due to remodeling or providing your essential services may cost you significant amounts of money. Much of the coffee shop startup costs will come from the state of the space you plan on leasing. Will you have the funds to build out your cafe? If you don't, you may need to figure out how to access more money or look elsewhere. Either way, you should figure out your costs before you sign your property lease because once you do sign, you are committed.

Tips To Start a Coffee Shop Business

Tips to Start a Coffee Shop

Tip #60: Understand Your USP

When you start a business (even a retail coffee business), you want to know your competitive advantage. You want to be able to understand what your unique sales proposition is, or USP. We explore this topic in more detail in our Coffee Shop Business Plan Template and the other guides we provide in our Complete Coffee Shop Startup Kit. Figuring out your USP will help better position yourself (your business) in the marketplace.

Tips to Start a Coffee Shop

Tip #61: Look At Traffic In Your Proposed Location

How do you determine the best coffee shop location? Part of the equation to deciding which coffee shop location is right for you is making quantitative calculations of foot traffic and vehicular traffic.

Is your coffee shop or coffee stand going to be on the “correct” side of the street or highway during the morning rush hour? Is your coffee business going to be on the correction corner to capture foot traffic? Taking a look at the flow of customer traffic will be necessary for your business.

Tips to Start a Coffee Shop

Tip #62: Determine Your Paper Supplier

Your cups, lids, napkins, and stirrers add to your variable costs. If you don't shop around for the best prices, you could decrease your profit margins. Depending on where you live, you may or may not have a variety of options or choices.

Shop around early in the process and add your costs to your financial determinations. While you're at it, if you plan to have people sit down at your coffee shop or coffee stand, consider if you will need any ceramic mugs.

Tips to Start a Coffee Shop

Tip #63: Stay Active With Social Media

Create your social media accounts early and get the local community excited about your upcoming business. By getting your followers early, you can tap them during your grand opening announcement or crowdfunding efforts. Your social media efforts will help to increase your brand awareness and help hone your communication skills. Additionally, you can also utilize social media for job announcements, etc.

Tips to Start a Coffee Shop

Tip #64: Figure Out Your Plumbing

If you plan on opening a drive-thru coffee stand, you may have a small hurdle: where will you get your water? Some drive-thru stands have a foundation set up for easy access to plumbing and electricity. Others aren't so lucky. You will need to determine how you will get your water. Most self-contained coffee stands will need to haul their water. In addition, you will need to decide where/how you will get hot water, which will be necessary for your stand.

Tips to Start a Coffee Shop

Tip #65: Have a Friend Look Over Your Business Plan

Starting your coffee shop business plan as you move forward with your coffee business will be necessary. Have a friend look at it – thoroughly. Have them give you an honest opinion. Does your concept match your budget?

Tips to Start a Coffee Shop

Tip #66: Moving Your Coffee Drive-Thru Stand

Before you open your drive-thru coffee stand, you will need to develop two critical pieces: your physical stand and its location. You will need to ensure that your plumbing and electrical issues are figured out. Decide how you will store and transfer your coffee drive-thru stand to your location. The cost of transporting – and possibly storing – your coffee stand structure should also be explored beforehand.

Tips to Start a Coffee Shop

Tip #67: Look Closely at the Lease Options

If you are buying an existing coffee business, look closely at the future lease options. While elements of your coffee shop or espresso stand have real value (in physical assets, branding, and customer goodwill), the heart of the business is your lease.

Many people do not realize that your lease (and its terms) is often a separate negotiation – with the actual property owner. Get everything in writing, especially the terms of the lease. Additionally, it would help if you met with the property owner separately from the current owner.

Tips to Start a Coffee Shop

Tip #68: Determine Your Signage

Before your lease negotiations, you should have a general plan or idea about the signage in front of your business. You want to ensure that you have the flexibility of your property owner that provides you have comprehensive options for your signs and other displays.

Tips to Start a Coffee Shop

Tip #69: Determine Your Hours of Operation

There are several variables to consider when developing your schedule. Studying traffic, trends, and other factors – in addition to being flexible – will help.

Keep in mind that labor costs can add up quickly. One hour a day, multiplied by the number of employees you have, can be significant over the month. Having a solid plan before opening your cafe will help save you money.

Tips To Start a Coffee Shop Business

Tips to Start a Coffee Shop

Tip #70: Learn How to Schedule Your Baristas

You can do this long before you buy or own your own coffee business. Simply visit your local cafes and coffee shops or drive-thru stands. Ask what time they open, close, and when the next shift starts. If you do this at 3 or 4 locations (with similar businesses) in your area, you'll begin to see a pattern.

You don't need to reinvent the wheel, but you want to understand HOW to schedule your baristas. Schedule experienced baristas with those with no barista experience. This will help your baristas work as a team while building up their barista coffee skills.

Tips to Start a Coffee Shop

Tip #71: Review City Ordinances For Exterior Signage

Some municipalities, business districts, or property managers have restrictions on what kind of signs you can use. Every day businesses invest a lot of money in their signs only to realize that they are not allowed to be mounted for whatever reason.

Check with your city for signage regulations before you choose to buy a new sign. If you are purchasing an existing coffee business, consider that your sign may cost you extra taxes. For example, in the city of Seattle, you can be taxed for a sign that is not directly connected to your building.

Tips to Start a Coffee Shop

Tip #72: Check The Zoning For A Coffee Shop

Your building department will be able to confirm with you whether or not your business is permitted in a specific location. You should check with them before you sign your lease. Again, many coffee shop businesses have signed a lease or rented out a spot for a coffee drive-thru stand only to be stopped by the building department because the location does not suit the proper zoning.

Tips to Start a Coffee Shop

Tip #73: Develop a Coffee Shop Timeline

Having a timeline will be essential for you to open your coffee business. Create a simple coffee shop action plan with benchmarks and milestones. This action plan divides the process of starting a coffee shop into smaller, more achievable steps.

Tips to Start a Coffee Shop

Tip #74: Familiarize Yourself with Accounting And Bookkeeping Techniques

Getting your financials in order is the key to your coffee business health. You might be able to do the accounting yourself by learning what financial documents you need and what taxes to pay. However, don't hesitate to seek professional help as you don't want your papers to build up.

Tips to Start a Coffee Shop

Tip #75: Work on Financial Docs

Having your coffee shop financials ready and thoughtfully composed before you spend any real money will be a financial lifesaver. The most important financial documents from your business will be your proforma budget, profit and loss statements, and income statements.

Determining your financials in advance always seems a little tricky at first, but it can be done. In our Complete Coffee Shop Startup Kit, we walk you through how to create your proforma financials.

Tips to Start a Coffee Shop

Tip #76: Determine Your Coffee Shop Pricing

Your coffee shop pricing strategy will determine just how quickly you reach your break-even point and, thus, your profitability. Your pricing strategy should be an integral part of your business plan and growth strategy. In our Coffee Shop Startups Kit, we provide you the opportunity to learn the various price strategies available to all coffee shop business owners.

Tips to Start a Coffee Shop

Tip #77: Finish Your Business Plan

Some of you might have started your coffee shop business plan already. But then… you never finished it! Go back and dust it off, and finish your coffee shop business plan. It will play an essential role for property managers, owners, and investors. But most importantly, it will play a critical part in your strategy and implementation.

Tips to Start a Coffee Shop

Tip #78: Speak to an Insurance Agent

As a coffee shop business owner, you will need to get insurance for your coffee business. No business should operate without an insurance policy. General business liability insurance, fire and flood damage, equipment insurance, and other insurance coverage specific to your business should be thoughtfully chosen.

Tips to Start a Coffee Shop

Tip #79: Reach out to Potential Hires Early

Hiring the right people for your coffee shop or coffee stand takes time. Sometimes it takes longer than you think! So start networking early and determine which potential baristas would complement the coffee culture you are trying to create in your coffee business.

Tips To Start a Coffee Shop Business

Tips to Start a Coffee Shop

Tip #80: Invest in Barista Training

Training your baristas will be necessary for the overall success of your coffee business. Customers would choose a coffee shop with knowledgeable and friendly baristas, so invest in coffee education and barista training to consistently serve excellent coffee. Usually, coffee roasters provide free training for your staff if you have a contract with this particular roaster. If not, consider online barista training.

Tips to Start a Coffee Shop

Tip #81: Research Your Target Market

Researching your target market can help you develop your overall strategy for success. It would help if you did it early in your planning stages to build your coffee shop menu offerings, price points, hours of operation, business policies, hiring, adaptation to competition, etc.

Tips to Start a Coffee Shop

Tip #82: Consider a Mobile Coffee Operation

If you realize that the costs of opening a brick-and-mortar coffee shop business are too high, you can consider opening a mobile coffee shop. Mobile coffee businesses are cheaper to start, but they also allow you to vend in various locations.

Tips to Start a Coffee Shop

Tip #83: Invest in Accounting Software

Consider getting accounting software that works in conjunction with your POS system. Having accounting software early will help you ensure that your paperwork is for taxes and other internal data needed.

Tips to Start a Coffee Shop

Tip #84: Consider Getting a Bookkeeper

Getting a bookkeeper early in your planning will be essential. Start searching for your bookkeeper early. Get recommendations from other small businesses or coffee shop owners and conduct some interviews.

Tips to Start a Coffee Shop

Tip #85: Reassess & Analyze Your Cash Flow

Building out your coffee business takes money. Often unexpected costs arise, outstretching your budget and cash flow. Keep your eye on the anticipated funds you may have coming in – either through loans, credit, personal savings, income generated from your “day job,” or crowd-sourced funds.

Tips to Start a Coffee Shop

Tip #86: Consider Additional Revenue Streams

Suppose you walk into a Starbucks coffee shop. In that case, you will notice that nearly everything but the espresso machines are for sale (and actually, some Starbucks coffee shops do sell espresso machines – Just visit Roy Street Coffee on Seattle's Capitol Hill neighborhood!) To boost your revenue, do it the Starbucks way, add other types of revenue streams. My recommendation: know your customer, and don't go crazy with your inventory.

Tips to Start a Coffee Shop

Tip #87: Revisit, Add, and Edit Your Business Plan

Your business plan should constantly be reviewed and edited. Your Coffee Shop Business Plan is an organic document. That means it changes as your business evolves. Keeping your business plan updated means that you're constantly reviewing all aspects of your coffee business.

Tips to Start a Coffee Shop

Tip #88: Apply for your Local Business License (Different than your LLC)

In addition to setting up your LLC (or business structure), you will need to apply for your business license. Usually, this can be done at the same time as your LLC.

Tips to Start a Coffee Shop

Tip #89: Get Worker's Compensation Insurance

Contact your state's worker's compensation insurance agency and get your worker's comp insurance set up. Often, as you establish your business structure, the state will send you additional information on setting up your worker's compensation insurance.

Tips To Start a Coffee Shop Business

Tips to Start a Coffee Shop

Tip #90: Stay Organized (Get help if needed)

Your coffee shop business can take on a life of its own. Keep organized from the beginning and hire help if you need to keep your business and life in order. The best way to do this is by blocking out time regularly, preferably daily or weekly, to catch up on paperwork, receipts, among other things.

Tips to Start a Coffee Shop

Tip #91: Choose a Local Coffee Roaster

Earlier, we had you look at various coffee roasters to see what kind of profiles you like. If you are not going to roast your coffee beans, choosing the right coffee roaster will be on the top of your list. Start early. Meet with roasters and ask them to have a coffee cupping for you. Taste their coffee as a straight shot of espresso, an Americano, and Latte.

Tips to Start a Coffee Shop

Tip #92: Sell Unique Items At Your Coffee Shop

Besides whole coffee beans, you can sell any coffee-related items like coffee brewers, filters, and accessories. To increase your sales, consider selling unique items like local art, paintings, souvenirs, plants, or flowers.

Tips to Start a Coffee Shop

Tip #93: Hire For Personality, Not Experience

You may need to train your baristas regardless of their experience level. I believe that you should hire baristas based on their competence, reliability, and personality. Experience is important. There is no question that an experienced barista can help you through some busy times and rough patches. However, your baristas must have a personality that shines with your customers.

Tips to Start a Coffee Shop

Tip #94: Plan your Grand Opening

It's important to let your customers know when you're open. It's your job to get people excited about your new coffee business opening.

Plan a grand opening and invite everyone. Your coffee shop grand opening can last a couple of weeks, but you should have a specific day where you do something special for your customers. Reach out to bloggers, newspapers, neighbors, and friends to join you.

Tips to Start a Coffee Shop

Tip #95: Consider a “Soft Opening” Before Your Launch

I recommend doing a “soft launch” before you have your grand opening. For example, you can have a soft launch weekend to practice and run through all of the things you need to go through. After you have your soft launch and before your grand opening, you should assess your strengths and weaknesses.

Tips to Start a Coffee Shop

Tip #96: Be Flexible

Many of the mistakes coffee shop owners make when opening their coffee business is a natural reluctance to adapt to changing circumstances – even when they know it's the best decision to make. Be flexible with your decision-making.

Opening a coffee shop involves a little art, much adaptation, and an ever-growing knowledge base. Change course if necessary.

Tips to Start a Coffee Shop

Tip #97: Stay On Top of Your Paperwork

Once you start moving forward with opening up your coffee shop, it's easy to spend money. You should always stay ahead of the game by anticipating costs. Additionally, you should give yourself time and money (to hire people if needed) to help you stay on top of your accounting and bill payments.

Tips to Start a Coffee Shop

Tip #98: Consider Merchandise

People love to get local merchandise from coffee shops they like. Whether they are tourists or want to support your business, people will often buy your branded merchandise. Search for affordable T-shirt companies and have them available before your grand opening. Many startup costs can lead to budgetary overruns. While it's good to have extra merchandise, you want to be able to stay within your budget as well.

Tips to Start a Coffee Shop

Tip #99: Determine your Weekly Schedule

Opening, closing, deliveries, etc., all need to be thought through. Expect that your weekly schedule will always be packed with something to do, something to pick up, a delivery to be ready for… try to create a calendar that supports your sanity.

Tips to Start a Coffee Shop

Tip #100: Invest in Our Complete Coffee Shop Startup Kit

Our Complete Coffee Shop Startups Kit is a comprehensive resource and will be among the best first steps in starting your coffee shop business. 

Are You Ready To Get Started?

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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.