Tips for writing a coffee shop business plan
Tips for writing a coffee shop business plan
A successful coffee shop can attract many beverage addicts to its door. In this highly competitive industry, proper execution is the key! You’ll want to know exactly what sets your shop apart from your competitors and how you’ll translate your competitive advantage to customers. A business plan is an essential tool that will help you establish your goals and create strategies to achieve your business’s milestones. Multiple factors go into creating a business plan for a coffee shop, from obtaining financing to finding suppliers and securing the right location. To make it easy, I’ve outlined the key areas you’ll want to focus on when creating a good business plan for your coffee shop.
Use the executive summary to lay out the fundamentals of your business. A great way to get started is to create a synopsis of your business using the Who What When Where How strategy. Who is the owner(s)? Introduce the owner(s) that will be bringing the business plan to conception. What type of atmosphere are you aiming for? Will this be a sit-down coffee shop providing Wi-Fi, take and go, etc.? When do you plan on reaching certain milestones for your business? Outline the milestones and goals you’re looking to achieve and when you plan on reaching them. Be realistic and outline a good plan of progression. Describe the location you have or would like to secure and why this location would be a good match for your coffee shop. Where will you be located? How will you bring your vision to life? Securing financing, additional training, and hiring a commercial broker are just a few examples of what you may need to help get your business running.
Your marketing plan should outline your target market, SWOT analysis, and marketing strategies. Brick and Mortar coffee shops are localized businesses. Who exactly are you aiming to target? Students looking for a quiet place to study? Drive-by commuters? A clearly defined target market shows potential investors and partners that you clearly understand your customer, thus effectively marketing them. A vital part of your business plan is your SWOT analysis. Take time to identify your company’s strengths, weaknesses, opportunities, and threats. Include your marketing strategy in the marketing plan section of your business plan. Identify each of your business’s goals and weaknesses and the exact steps you’ll take to overcome or achieve them. Be sure to include how you plan to get the word out about your coffee shop. Are you thinking of running an online social media campaign or relying on word-of-mouth advertising? Clearly state your strategy and how you will measure your strategy’s ROI.
Coffee shops provide so much more than just the typical cup of joe nowadays. Signature drinks, unique pastries, and one-of-a-kind customer service contribute to bringing traffic through the doors. While offering something extra is a great way to attract customers, keep in mind that a simple cup of coffee may not cut it in this competitive industry. Consumers are keen on their coffee consumption and, more than ever, have an interest in the quality, roast, and sourcing of their coffee. Getting educated on the basics of brewing or hiring an experienced barista will help give you a competitive edge.
The big picture! The operational plan looks at your business from a bird’s eye view with details intact. This is where you will want to elaborate on your business plan and revert to your executive summary with added points on your achievement process. Where will you be sourcing your products and supplies? How often? What is the cost? What is your hiring process? How many employees will you need? What is your expected budget? What license or permits do you need to operate your business? What are all of your startup costs? Where and how will you secure financing? When do you estimate you will be breaking even? Include your future financial projections.
What will your day-to-day procedures look like? The management section of your business plan will include your daily operations. What are your hours of service? Who will be responsible for what tasks, and what will qualify them to take on these duties? What type of training will employees receive?
Your business plan adds validity and structure to your business ideas. Make adjustments and changes as needed and use it as a standard reference to keep your coffee shop’s goals on track. Need help? I’ll be happy to jump on a call to bounce ideas. If you are looking to open a coffee shop in strategic Canadian cities like Vancouver, Calgary, Edmonton, Toronto, or Montreal, and need a business plan writing service, contact me here, and let’s talk.