Starting a cafe or a coffee shop is one of the most popular business ideas of 2016, as every hipster who drinks coffee probably dreams or plans to open one.
But what they don’t know is that coffee shops are more than just rustic interior design and retro fixtures. It’s a business first and foremost and running a business, just like coffee, is a serious matter.
Considering opening a coffee shop has serious investment risks and poses a lot of questions before you even begin opening one.
There are many trustworthy business brokers in Victoria that you can contact to materialise your business, but before you do that ask these questions: Do you have sufficient amount of cash for the initial outing and another for the wages of your would-be employees? If money is not a problem for you, then read these practical tips to help you open your very own cafe.
1. Look For a Supplier
Before you begin your caffeine-filled dream business, you must first have a reliable supplier that will provide you with delicious and high-quality coffee beans.
Apart from the quality of the beans, make sure that your supplier always delivers on time and is accessible in different forms of communication, should complications arise.
2. Use Quality Equipment
Coffee-making equipment like espresso machines, milk steamers and grinders (not the LGBT dating app) are essential to creating the perfect cup of coffee. They say that when you both have quality coffee and coffee-crafting machines, you already won half of the battle.
3. Location, Location, Location
The mantra of real estate agents also holds true when starting a business. Oftentimes, the success of a business depends on its location.
Before buying or leasing a property for your future cafe, do your research and visit the area you’re eyeing. Observe its surroundings or the type of crowd that passes by.
Do people pass by often? Are there many businesses nearby that may give potential customers? In addition, visit the location at different times and on different days so as to really have an idea who your would-be customers are.
Also, check out if there’s a previous business that operated on that location and why it closed, so as to factor in whether the area has great potential.
4. Know Your Business
This is one of the most common mistakes wannabe entrepreneurs often make, which is entering a business without practical knowledge of the subject.
Sure, running a cafe seems easy and fun to do as the people you see running it often wears big smiles on their faces. But what you don’t know is that behind the cheerful demeanour, stress levels are through the roof — especially during peak hours.
Know the industry, research about the different varieties of coffee and how to operate your equipment. Be the expert and know every essential detail of your business.
5. Name Your Price
Pricing your products accordingly is the key to turning your business into a lucrative venture.
As said by All Business, “If everyone complains about your prices, they’re too high. If no one complains about your prices, they’re too low, if just a few people complain, they’re priced perfectly.”
Always keep in mind that the price of your coffee will more or less determine your overall profit, so it’s best to price them in a way that are accessible to your target market.