5 Tips to Start a Successful Coffee Business

About 83 percent of American adults drink coffee and the average consumption is about 3.2 cups of coffee per day. According to Statista in 2013 there were 52,684 coffee shops in the U.S. alone. In 2016 this number has jumped to 55,246 coffee shops in total. After looking at the numbers, there is no doubt coffee is a good business to be in.

Image taken from Bplans. Number of coffee shop establishments in the United States.

5 Tips to Start a Successful Coffee Business

1. Create a Business Plan
A business plan is an essential road map to starting any business. This document explains clearly what your business is, how it will be profitable, your customer base, competitors, plans for growth and more.

Keep it short. If you're not requesting funding from a bank, a detailed business isn't necessary. Stick to a one-page plan-just enough to confirm your business model and map out your market. Check out these Free Cafe and Coffee Shop Sample Business Plans from Bplans for a jump start.

2. Location, Location, Location
A good location is important to the success of your coffee shop but you won't find it over night. Be patient and do some research. Look up what business was in that building before. Was it a coffee shop? Was it successful? Why did it fail? Next, become a spy. Count how many cars or people pass by at different times and different days. See if teens are hanging out near the location. Will there be enough parking for your customers? And lastly, make sure you're getting a reasonable rent or purchase price.

3. Shop Around
To make sure you're getting a good price on equipment and furniture, be sure to shop around for products. During the planning and funding stages, keep a spreadsheet of all the items you need and compare prices there. Use the internet as a tool to find the best prices on everything!

4. Start Marketing Before You Open 
You want people to know about your new business and be excited about your new business. If you begin to advertising the day you open, you are behind. Start marketing a couple months prior to opening with these affordable tactics:

• Pass out free samples at local events
• Drop off free coffee to local businesses with a flyer promoting opening day
• Set up a few social media channels 
• Inform the media about your plans to open

5.  Be Passionate and Hire Passionate People 

Customers want to buy things from happy people. Always present your product with a smile while being passionate about your business. Hire employees who smile and feel the same passion for your products and service and nurture them. Pay them well and encourage them to have just as big of dreams for the business as you do. 

If you've been thinking of combining your entrepreneurial spirit with your love of coffee, you know what they say, "there's no time like the present!"