Even if running a café business is your calling, dreaming about it is easier than getting it done. The harsh reality is that many coffee houses or cafés fail within the first year of opening. However, with a clear vision and concrete plan for your company, you can start on the right track. Use these tips on how to start your own cafe business to hit the ground running.
A Solid Understanding of the Industry
Opening a business requires a significant investment of your time and money, so you need to know exactly what costs and challenges to expect. Speak with and research other cafes. If possible, look into local shops that closed and try to understand what caused them to fail. The goal is to understand what customers they’re targeting, which marketing campaigns are working, and how each shop has found its niche in your local community. From there, you can develop a plan for your own business.
A Foolproof Business Plan
Every business relies on a solid business plan. A business plan is like a road map that you can use to run your business. It typically includes the expenses, projected profits, backup plans, policies, and general structuring you have in mind for your business. When you have a well-structured plan, it’s easier to get funding. To add more depth to your business plan, consider your marketing plans, a market analysis, staffing plans, and ideas for scaling in the future.
Location Is Key
The location for your business is critical. Your café needs to sell in a location where the foot traffic, access, and visibility are high. You also need to consider the competition in the area and ensure that you have something that will make you unique. Many cafes use murals or performance stages to stand out. Some entrepreneurs even situate their cafes inside shipping containers, taking advantage of novelty and sustainability to sell their brand.
Consider Your Food Options
Your café isn’t a café if it doesn’t offer snacks alongside its coffee and tea selection.
As you design your menu, keep your competitor’s food options in mind. While you don’t want to offer the exact same options, you still need to compete.
One way to set your business apart is to offer options for those with dietary restrictions. Keep in mind that a limited menu makes cleanup easier for your staff at the end of the night and expedites orders.
Hiring the Right Crew
One of our most important tips on how to start your own café business is to hire the right people. Select new hires who strike a balance between the right experience and the right attitude. Pick the people who know the importance of hard work and ask plenty of questions during training. With the right team, you can focus on bigger picture operations. Just remember that cafes often see high turnover, so even ownership may need to step in some days and keep the ship afloat.
