* 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. Also, you won’t need to spend as much money fitting the store out, as you would in a start-up business and it is as close to a turnkey business as you can get. On the other hand, if you buy an existing business, you may be buying the problems of the outgoing business owner, for instance increased rent and overheads, a disappointing bottom line, etc. Of course though, you can minimize the risk by carefully considering the business and its full financials with your lawyer and accountant’s expert advice and direction.

Start-up business:

If you start your business from scratch, you can fit your space out as you like from day one. You are completely designing your store from scratch. On the other hand, start-up businesses are riskier because you don’t have a proven track record in the business as you have created it at that location, and it costs a lot more to start a brand new business as opposed to buying an existing one.

Be sure to thoroughly do your homework and research whenever you are considering an existing or start-up business – and remember to enlist a great accountant and lawyer to help you make the right decision.

Chances are you will probably require funding from an outside source to get your coffeehouse business off the ground. There aren’t too many people around who can fund a business on their own!

To secure the finance you need to turn your coffee shop dream into a reality, you’ll need a business plan. After all, the financial institution you hope will loan you money needs to know that you have a great business concept that is viable.

Even if you are fortunate enough to fund your own business, you will need a business plan!

You’ve probably heard of the term, “Fail to plan, plan to fail” right? Basically it means that failure is highly likely if you do not plan your business.

You need to know exactly where you want to take your business, and you need to come up with strategies to help you achieve those goals.

Your business plan will take into consideration absolutely everything: your mission statement, your market position, your finances, your sales projections, your marketing and advertising and your future plans – absolutely everything!

So, take some time to plan and avoid expense and stress in the long term.

Trace Beaney has collaborated on a guide to setting up a coffee shop, based on coffee shop owner Don Clarke’s years of experience in the industry. The guide has been reviewed by Cafe Culture Magazine. You can read this review at: http://www.howtosetupacoffeeshop.co.uk/review.htm

Your Free Top 10 Tips can be downloaded from the website, together with a copy of the current newsletter.

1. Good design is a major marketing tool. The way your shop looks will determine how many people are tempted to cross your threshold. People will make an instant decision as to whether to enter a coffee shop based on the effects of the shop’s lighting, colour scheme, furniture and atmosphere. Good interior design will persuade passers by to enter your shop.
2. Interior design will also give a prospective customer an idea of the cost involved in frequenting it – if you visit a 5 star hotel you know that you will be paying a large sum to stay there. Similarly, a customer will enter a well designed coffee shop prepared to pay a little extra for a coffee for the pleasure of being in a comfortable, pleasant environment.
3. Use an interior designer with a background in catering establishments. They will know how to design your shop to achieve the optimum amount of “selling” space.
4. Shopfitting companies will have in-house designers – this may be cheaper than hiring an independent interior designer.
5. Give your designer a clear idea of what you want in your shop. If necessary, take the designer to visit existing coffee shops and pick out the design features you want incorporated in the shop you are starting up.
6. Listen to your designer! They are experts and they watch the market and look at the trends in design. Your design should reflect market trends and not be guided by your personal taste!
7. Take exactly the same amount of care when selecting the design for your shop front and signage – your shop needs to be irresistible to passers-by!

Tracey Beaney

To download a copy of Don’s Essential Tips and a free copy of his newsletter, see: http://www.howtosetupacoffeeshop.co.uk/newsletter.htm Don’s book will shortly be available in Turkish, and is also currently being amended to suit the US market.