| So you're ready to open a coffee shop? Read on for | | | | 4) Not planning a budget for marketing |
| five big mistakes to avoid. | | | | Remember that line from "Field of Dreams"? "When |
| 1) Not having a business plan | | | | you build it, they will come." Ask some business |
| Having a coffee shop may seem like a laid-back kind | | | | owners about how that one worked for them in real |
| of business. But don't be fooled. There's work involved. | | | | life! |
| And you need a solid business plan to get the money | | | | Not too well, I would think. You need a solid marketing |
| to set it up. | | | | plan -- and the funds to put it into action if you want to |
| And yes, even if you are planning to do most of it | | | | hope to make your coffee shop successful. |
| yourself, you'll need funds. So plan on having that | | | | 5) Refusing to learn from those who have done it all |
| coffee shop business plan ready and go talk to your | | | | before you |
| bank. | | | | That may well be your biggest mistake. Don't be a |
| 2) Underestimating how much it will cost | | | | lone wolf. Your most valuable resource are people |
| There's much to be said for optimism, but estimating | | | | who have already done what you're setting out to do, |
| how much a start-up business will cost you before it | | | | and have done so successfully. Take advantage of |
| becomes profitable isn't something where you should | | | | their experience and wisdom, and glean all the |
| get carried away with visions of fast success. | | | | intelligence they'll let you have. |
| Most businesses take quite a bit longer to become | | | | You'll save countless hours and dollars if you are willing |
| profitable than their owners expected. So plan for that. | | | | to learn from those people. So make friends with |
| If you underestimate the time it will take, your bank | | | | some of your competitors and find out how they |
| may well pull the plug. And where will you be then? | | | | managed to make their businesses work. Did they |
| On the other hand, if you get profitable ahead of | | | | have a coffee shop business plan when they first |
| schedule, you'll be their hero! | | | | started. You can bet on it. |
| 3) Failing to know your market | | | | And there are even a few how-to manuals out there. |
| Proper market research is really the first thing you | | | | Check them out. |
| should do. Just because there are lots of people | | | | Before you buy one, though, make sure that the author |
| hanging out in the coffee shops in your area doesn't | | | | or authors actually have done what they write about. |
| mean that these places are profitable. It also won't | | | | You want a guide by someone who has started a |
| mean that yours will be. | | | | coffee shop from scratch, maybe even more than |
| Find out what they like, how much they spend, and, | | | | one, and has built it into a wildly popular place. If you |
| yes, to the best of your ability, find out how profitable | | | | find a guide like that, especially if it gives you a |
| the other places really are before you open a coffee | | | | step-by-step process, grab it. It will help you avoid any |
| shop yourself. | | | | number of mistakes. |