If you are thinking of opening a coffee shop, the first step is to do your background market research and write a coffee shop business plan to see if your idea is feasible. The business plan is more than a proposal for funding; it lists out steps that you will need to take to open your business. This way, you will know exactly what to expect and consider whether opening a coffee shop is the right thing to do.
You may wonder how much coffee shop owners make and there is no specific answer. The amount you will be taking home will be dependent on how fast you attract a steady customer base and break-even. This is why you need a coffee shop business plan to help you manage the costs associated with opening a coffee shop.
How long should a Coffee Shop Business Plan Be?
Coffee shop business plans could be anywhere from a few pages to hundreds of pages long depending on the size of the business. For smaller coffee shops, it is best to keep the plan as brief and precise as possible, especially if you want to present it to investors. Usually, investors do not want to spend time reading heavily detailed business plans rather they are looking for well-researched analyses.
The best way to make your coffee shop business plan appeal is to include photos, designs and site plans of the business. You should also include graphs and charts of the financial information, for example, the revenue projections and expenses. Here we will give you a sample of how you can break the business into sections to make it more appealing.
Here you will enter your business information starting with the legal name, the location you want and the website if you have one. If you already have a business logo, you can add it here as well, either at the top or bottom of the title page. You should also add your table of contents so that the person reading can quickly get to a section they are interested in.
Section 1: Executive Summary
The executive summary usually goes at the beginning of the plan but it should be written last. It is supposed to give a short but optimistic view of the business. The person reading the coffee shop business should be captivated and given the interest to learn more about the business.
The executive summary is not supposed to exceed two pages and should include summaries of all the other sections of the business plan.
Section 2: Business/Industry Overview
This section gives an overview of the coffee industry, the local market and why your business has a competitive advantage. This part is supposed to also have a marketing strategy.
Section 3: Market Analysis and the Competition
In this section of the coffee shop business plan, you are supposed to show how you have researched the market you are targeting and if there is enough demand for the goods and services you are providing. Here you need to have a competitive analysis, showing the assessment of the competition and how your business is going to compete.
You will also need to have a description of the target market and competitive analysis on different sections of the plan so that they are clear.
Section 4: Sales and Marketing Plan
This is the portion you will show how you will entice your customers to buy your goods and services. You will need to show the advertising and promotion strategies as well as pricing, sales, and service.
Section 5: Ownership and Management Plan
Here you will describe the legal structure and ownership and staffing requirements.
Section 6: Operating Plan
The operating plan includes retail space, equipment, inventory, and supply needs.
Section 7: Financial Plan
This is the most important section of the business, especially if you need to attract investors. Here you will show the projected income and forecasts of the business.
These are some of the things you need to include in the coffee shop business plan to attract investors you want for your business. Go back to the home page here. Also Read: Small Business Ideas for men & college students