Coffee is the second most preferred beverage in India only after tea. Although India produce only a small percentage (2.5%) of the world’s total coffee production but Indian coffee has already got a recognition in the foreign market for its exotic taste and nice aroma. It’s true that 80% of the coffee production is sent overseas, but in recent times its demand goes on increasing in our country also. Coffee shop business has proved to be a profitable venture with an increment of 10-20% every year. If you are planning to run a successful coffee shop for a healthy return and an alternative of earning in place of doing services, then it is very important for you to know in details about steps of starting this business.
First Step: Decide your Business Type
You can find many coffee shops in the Indian streets and most of them will be of some particular franchise. Big franchise’s like Barista, Café Coffee Day and others have captured a huge share of coffee shop business in India and around the world too.
So you need to decide whether you want to take a franchise of some famous brands or want to start your own brand of the coffee shop. Both the businesses have their own pros and cons, so you need to do a thorough market research and make a business plan before commencing your business.
Second Step: Do a Thorough Market Research
Although, starting a coffee shop business is a small business idea, but it will need a good amount of investment and to make your investment count worthy, you need to do a complete market research of the same. Think yourself as some kind of special agent or spy and find out every kind of possible information about the business. As mentioned earlier, find out the pros and cons of the business in both the business type along with the amount of risk and chance of getting success. Below are the few general pros and cons of the two different business options.
Pros of Taking Coffee Shop Franchise:
- Brand Name: As the franchise is already having a running business in the market and have earned the brand goodwill, so you easily get the benefit of the same.
- Promotion: The franchise will themselves do all kind of stuff to promote their product along with the decoration of the shop as per their guidelines.
Cons of Franchise Business:
- Management: The complete control of the management of your coffee shop business will be in the hand of the franchise. You can’t use your creativity to add value to your business.
- Profit Share: You will have to share a big portion of the profit earned by the franchise company.
Pros of Starting Your Own Coffee Shop Business
- Creativity: You can give your heart and soul to the business to run it successfully and use your skills and creativity to the business.
- Control: You will have complete control of the management and can run your coffee shop business on your own terms and conditions.
Cons of Opening Your Own Shop
- Risk: With coffee shop franchise you can use the brand name for the success of the business, but in the case of your own business, the brand will be completely new and it will take the time to attract customers.
- Promotion: As your brand will be a new one in the market, so you will need extensive promotion of your coffee shop business.
So both the business choices have its share of benefits and disadvantages, now you need to decide which one will be the best choice for your business. Below are the further steps.
Third Step: Getting a Perfect Location
The success of your coffee shop business completely depends upon the chosen location. The location should be near any busy marketplace or commercial sector and even malls are a good option. The coffee shop should be well exposed to the crowd.
Fourth Step: Capital Arrangement
As mentioned earlier, the coffee shop business might be a small business, but you will need a good amount of capital to begin it. However, you can take financial assistant from banks, but still, you will need to have enough of yours own.
Fifth Step: Hire the Best
The best rooster is what you will need to serve quality coffee. So, find out one who is the best in the line of the business and pay him well. You will also need to buy different equipment for the business, so it is suggested to get it from the best manufacturer.
Sixth Step: Recreational Options
If your capital permits, add some recreational option in your business like free WiFi service, some games like gaming consoles or computers to surf along with different food items like pastries or burgers etc. A big television is also a good option.
Seventh Step: Promotion
If you have take coffee shop franchise, then this step will be taken care by the company only, but for your own business, you need to promote your business extensively to create the buzz in the market about your launch and the hard work on promotion should never stop.
Eighth Step: Quality Service
A perfect mixture of professional but happy environment and quality service is the best secret of any business. Never let the quality of your product i.e. coffee or other items to deteriorate.
According to your market research, you need to fix the price of your product by striking a perfect balance between earning profit and the quality of the service. There is no chance of sacrificing any of the options.
Find out about the required legal formalities about starting the coffee shop business which will not be of much difficult or critical and you are ready to take your step towards step of being a business person.