Coffee Shop Business Plan
When you go to open any business up, even a coffee shop, a business plan is something everyone needs to come up with. A business plan is a requirement for any business that is trying to get people to invest in them or to find someone to finance their business venture. A coffee shop business plan is like a road map for the business. There are several different sections to a coffee shop business plan:
Coffee Shop Business Plan: Required Sections
- Executive Summary: Overview of your coffee shop business plan
- Financial Section: In this section of your coffee house business plan you will include a minimum of two years worth of projected financial possibilities.
- Marketing Section: This section of your coffee house business plan identifies the business’ competition.
- Strategic Marketing Plan: This section of your business plan for your coffee house shows the plan of capturing the desired share of your particular market.
- Product & Service Offerings: The products and services your business will offer the public is mentioned in this section of your business plan for your coffee shop.
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Coffee Shop Business Plan: Attracting Investors
You will need to provide potential lenders and investors an overview of your coffee shop through your business plan that includes the structure of your coffee shop and its potential. You will need to include a brief history and then provide sales and trend history of coffee shops in your area. You will also need to provide the kind of business structure your coffee shop will take and that it most likely will be a retail establishment. Finally you will need to explain the legal structure your coffee shop will take, like if it is a sole proprietorship, limited liability company or a corporation. This section of your coffee shop business plan can be extremely crucial for successfully getting capital from lenders and investors for your coffee shop business. As you can imagine this section can determine if your coffee shop idea will take off or not, especially when you don’t have any capital of your own to invest into the coffee shop business.
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Coffee Shop Business Plan: Short Description
The next thing you will need to do for your coffee shop business plan is give a short description of your actual coffee shop. This should include facts like the square footage of the building, how many customers it will be able to hold, an idea of what the décor will be like, where you will locate your coffee shop and the type of seating your coffee shop will offer. You don’t need to go into a lot of detail here, but just give them an overview of all of these things. Your description of your coffee shop shouldn’t be any longer than three or four paragraphs in your coffee shop business plan. Think of this as an introduction to your coffee shop. A great example of a coffee shop business plan description would be – Explaining how your coffee shop business looks and feels to a blind person. Imagine your lender or investor is blind, because they usually are to your idea. You might have the world’s greatest idea for your coffee shop. You already know in your mind how you want your coffee shop to look like. You can imagine how the seating will be what the feel of it will be, but guess what you potential investor does not. Your coffee shop investor can’t read your mind. This is the section where you write your mind. You paint a picture of your idea in this section of your coffee shop business plan. But this is also a section where a lot of people over exaggerate. You need to paint the picture but keep it realistic.
Coffee Shop Business Plan: Products Offered
You will also want to include the details of the products that your coffee shop is going to offer in your coffee shop business plan. You should list all the different kinds of beverages that your coffee shop is going to have and if there will be takeout cups, stoneware service or both offered to the customers. You will also want to give a list of the kinds of foods and snacks that will be sold and if you will have menus for breakfast and lunch. Here again, you don’t need to go into a lot of detail. Just give them enough information so they understand the type of food and beverages you will be offering. Don’t go overboard in this section of your coffee shop business plan. Only offer what is realistic and feasible for your new coffee shop business.
Coffee Shop Business Plan: Misc Services
Next you should map out any kind of miscellaneous services that your coffee shop might have to offer in your coffee shop business plan. These services could include free Wi-Fi, an area for live performances, a meeting room or a banquet room, whether there will be books, newspapers and magazines sold in the coffee shop and other services you might be offering. Again, making sure not to overdo it in this section of the coffee shop business plan. I would love to offer barista classes for free to all of my coffee lovers in my coffee shop business plan to impress my investor, but it won’t be feasible for my new coffee shop business. Don’t offer services that don’t pay for themselves over time. Investors and lenders are very interested in the fact that your coffee shop business plan is feasible. Stating anything unrealistic in your coffee shop business plan can have a affect you might not desire. Free Wi-Fi for customers is something that will not add money to the bank directly but indirectly it will cause repeat customers so this is worth it but offering gold plated chairs to sit on will cost more than it will bring in. Keep free services under control in this section of your coffee shop business plan.
Coffee Shop Business Plan: Tie Everything Together
Finally, in the last section of your coffee shop business plan tie everything you’ve done so far together by explaining how your coffee shop’s features is going to benefit your customers and how it will be different from your competition. For instance, if there is no other coffee shop in the area that offers any kind of entertainment, but yours will, then this is a service that customers will benefit from by enjoying live entertainment. Also offering this will attract loyal customers of other coffee shop businesses to your coffee shop. Another example would be if your coffee shop offers special coffee that others in the area don’t. A major rule of success in any business is to have an edge over your competition. An edge is something that your business can do or has to offer that others don’t. The edge of your coffee shop business will cause customers to come to your coffee shop. If you don’t have an edge then there is no reason for people to leave their normal cup of Joe for yours. Another great example that is usually mentioned and generally is a must follow rule is “Location! Location! Location!”. Locations can be one of the best edges your coffee shop business can have. For example if there is a large amount of residential apartments and homes in an area but no coffee shop within a 10 mile vicinity of it, that would be a ideal coffee shop location. It’s human nature to go to the nearest store. If the nearest coffee shop is 20 miles away and you open your coffee shop business within 10 miles, that alone could be your biggest edge over your competition. But, a word from experience in this would be, to file an application with the local government in your area to make sure no one else can open a coffee shop within your area. Most upcoming business owners over look this fact and don’t even think this is possible, but it is. By paying a special fee to the state you can get this done and make sure your coffee shop edge stays with you. As you can see a coffee shop business plan can make or break your idea.
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