Archive for March, 2010

How to Create A Successful Coffee Business

When you finally decide to open up your own coffee business there are a lot of things that you need to consider, including your cashflow situation. You need to have some type of capital in order to start and sustain your coffee business for at least the first year.

Everything is expensive these days no matter what you decide to do. Starting a business is no exception but you can plan and carefully invest your money so you will not put yourself at the brink of bankruptcy.

Before you even open your doors the first day you need to have a plan for the next six months of business so you will estimate how much everything will cost you and how much you plan to spend. This type of planning is not easy to do and you may need to seek the advice of a business planning professional to help you create the best business plan for you.

In your business plan you need to include how you will obtain the money that you will need to start your new coffee business. This may be through a financial institution or a private lender. You may even qualify for a grant or government loan to assist you in your new venture. Regardless of which way you go, you will need to have a business plan that is well thought-out and organized before any one will consider loaning money to you.

Naturally, a financial institution will consider any new business as a high-risk business and what they put into that business may never be recoverable. That is why it is a good idea to put on your business plan how you plan to pay that money back. It’s also a good idea to put more than one solution to repayment in your business plan just in case one doesn’t pan out the way you thought it would. This will show the bank that you are less likely to be a bad credit risk and you have everything planned out and all the bases covered.

A coffee business can be a great passive income generator for you. You already know that or you wouldn’t be considering opening up one for yourself. Customers will come to enjoy your coffee everyday once you are open. Your coffee business can potentially make enough money to pay back your loans, pay your employees, and pay all expenses within the first year. You may then start seeing a profit in your accounts. You won’t see a profit immediately so don’t expect it for the first year. As the saying goes, you will need to spend money to make money.

A professional can help you with your initial business plan and then help you rewrite a business plan after the first six months of business to adjust for any changes that have occurred since starting your business. Some business plans do stretch out for twelve months but a six month business plan is more realistic.

A coffee business is a pretty low risk business and may not seem like a huge amount of expense to get started. But the start up expense will depend on a lot of factors including your equipment purchases and rental expenses. You will usually need to prepare the first and the last month lease payment as well as other initial deposits to open your business.

Author: Stewart Baker
Article Source: EzineArticles.com
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Dunkin Donuts Franchises Rise to the Top

Dunkin Donuts is best known for their baked goods, specifically their large variety of donuts and coffee choices. The first shop opened in Quincy, Massachusetts in 1950. Within years the company started growing rapidly, franchising as early as 1955. Today with slogans like “America runs on Dunkin,” they serve more than 3 million hungry customers each day and are highly successful and innovative with over 8,000 shops in over 30 countries.

Obviously when one thinks Dunkin Donuts they are going to recall the amazing baked goods and coffee providing a great start to any day. Unlike most donut shops, Dunkin’s provides a range from donuts and bagels to breakfast sandwiches. Furthermore, by recently adding new hot sandwiches and soups to their menu, the franchise is quickly expanding the services offered to their customers. In the future, the shop may no longer be viewed purely in the terms of breakfast and afternoon snacks, but also a viable option for a quick lunch or dinner. (more…)

Starting A Specialty Coffee Business – DIY Or Franchise?

So, You’ve been bitten by the coffee bug. It all began when you walked into a Starbucks and said to yourself “I can do that!”. You looked at a shiny machine that pushed steam through something you learned was called a ‘portafilter’. You saw syrupy looking coffee called ‘espresso’ slowly stream into a cup that was then filled with steamed milk. The barista added a flavor or two or maybe nothing, put a lid on it and asked for more than three dollars for a drink you knew cost a mere fraction of that. You did the math and thought, “No wonder they’ve made billions of dollars!” On top of that, the relaxing ambiance, the happy customer who just treated herself to a hot and tasty beverage (or maybe a cold one) all added up to something that made sense and got you excited to start your own coffee business.

Yes, Starbucks is an amazing success story and following their model or something like it appears fairly simple and very profitable. In fact, the gourmet coffee business is one of the fastest growing in the food and drink industry. In more than a few magazines, starting a coffee business has been suggested as one of the best choices as a successful business to start. Compared to other food and drink businesses, the startup costs are one of the lowest. Training is relatively simple and while espresso machines aren’t inexpensive (a typical three group espresso machine can cost around $15,000 and up and a grinder runs a few thousand) machines with good reputations (the best are made in Italy) will last for many years without needing to be replaced if they are properly cleaned and maintained.

The biggest issue to consider isn’t what brand of espresso machine to buy or whether you will buy coffee beans from a roaster or roast your own. The number one consideration is whether you will create your own business or buy a franchise. After you’ve logged dozens of hours on the internet, bought a few books, read dozens of magazines and worn out your walking shoes at a couple of tradeshows like Coffeefest or SCAA, it might seem that you’re ready to do this without help. But don’t be fooled. There is more to do than you can imagine in getting a coffee business off the ground and franchises are a fast track to getting there. In fact, franchises offer much more than a nice logo and a training manual. If you are on your own, making your business profitable in a short time frame is time consuming and costly. Lenders are much more willing to lend money to a proven model and a good franchisor will help you to get the financing you need. While they won’t offer the funds and can’t promise anything, their business model as well as connections and proven track record are great ammunition when asking for big bucks to start a business. Franchises also have worked the bugs out that you would have to work out yourself if you go it alone. If they are worth their salt, franchisors have tested the equipment, provide operations manuals as well as barista training and offer a big headstart to your marketing needs by having built brand equity – something that small business people overlook. It is true, with patience, perserverance and a little luck, you can develop a business on your own that is successful, but in today’s highly competetive specialty coffee industry, having a visible market presence off the ground gives you an edge and with that edge, the time it takes to become profitable can be much shorter.

If you’ve read this and still decide to go it alone, the best of luck to you. If however you’ve decided that buying a franchise is a wise business decision, you now have the daunting task of choosing one among a number of strong coffee franchises. My suggestion is to choose a franchisor with a great support system as well as a flexible franchise agreement. Many franchisors in a wide range of industries are strict and don’t allow the franchisee to put their personal touch on the business. One franchise that offers great support with maximum flexibility is Sonoma Coffee Cafe. There are many to choose from and doing your homework can’t be stressed enough, but choosing a solid coffee franchise like Sonoma Coffee Café can get you where you need to be in less time than if you do it yourself.

Author: Randy C Anderson
Article Source: EzineArticles.com
Provided by: Make PCB Assembly

Investing In A Coffee Shop?

When it comes to getting into the coffeehouse business, you need to decide whether to:

* Buy an existing coffeehouse; or
* Start a brand new coffee shop from scratch.

It is absolutely critical that you discuss each option with your accountant and as you can expect there are advantages and disadvantages with each.

Existing coffee shop:

The obvious advantage of buying an existing coffee shop is that it should be an established, successful business. (more…)

How to Start Your Own Coffee Business



Starting just about any business takes careful planning and sometimes failure before you get it right. It doesn’t always go smoothly and you may find that you are in way over your head. In order to start off on the right foot you may want to follow the steps below to lead you on the right path in starting your own coffee business.

Did You Know That 2,000,000 Entrepreneurs Get Money Every Year To Start Or Expand a Business?

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You need money to start your own coffee business, and a lot of it. How much depends a lot on which coffee franchise you are going to go with, how much money is needed to get your coffee shop ready and other miscellaneous investments that you will need to make along the way. You can look at an initial investment of $100,000 and more. The total amount depends again on all the expenses you think you will encounter in order to open and stay open for a few months. One great thing about starting your own coffee business is the variety that you have to choose from. You can select a traditional coffee shop, specialty coffee shop, a drive through coffee shop and more. You can make your coffee shop any way that you want to, as long as you have the money.

Another factor to consider is the coffee company that you plan to go with in your franchise business. You may like the taste of a certain brand and that is what you want to go with. That company may cost you more money but you will feel better promoting their coffee product and confidence is everything when you are in business for yourself. If you do not have confidence in your business no one else will either.

Did You Know That You Can Qualify For Grants Regardless Of Your Income Or Credit History?

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The best ways to determine where to put your new coffee business is to do your research. Some of the things to determine include:

* How many coffee shops are in the area you are considering?

* Which coffee company do they use?

* Do you plan to offer anything else besides coffee?

* What hours does the competition keep?

* Can you purchase any of the existing coffee shops open now?

* How much expected business does the coffee business see daily?

* Is it open on weekends?

When you purchase an existing coffee shop, your expenses may be lower because you pay a flat fee for the entire package. You save time by not having to find a place, figure out all the red tape, find and purchase equipment, hire staff, insurance expenses and more. This has already been done with an existing business.

Whether you start your own coffee business from scratch or purchase an existing one you can personalize it to make it yours and to offer the customers the coffee that you like best. The initial start up of the coffee shop may be expensive but if you plan and run it right you will be there for several years to come. You will have satisfied customers who will return faithfully for a cup from your little coffee shop down the street.

Author: Stewart Baker
Article Source: EzineArticles.com
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