Are you looking for a great business idea? Maybe opening a coffee shop is a great way for you to start your journey in the business world. The thought of having your coffee shop in your place is exciting. So, if you think you are up to this kind of business then here’s some information. Especially the coffee shop start-up costs to help you get started.
Opening A Coffee Shop
Starting a business such as opening a coffee shop of your own is not easy. If you are thinking that having a small space and some equipment is enough to start this business, then you got these all wrong.
There are many things to consider to make this business possible, especially the coffee shop start-up costs. Here are the following factors that you should consider when you decide to enter into the coffee business.
Here are things that you have to create a financial estimate when opening a coffee shop:
Coffee Shop Space – This involves the building, your coffee shop exterior and interior design, utilities, insurance, maintenance, and proceeding rental fee. When it comes to the rental fees, you should remember that it should not go more than fifteen percent of your estimated sales.
Administrative Costs – Your administrative costs run-up to structuring your coffee shop business, inclusive of business license and legal fees.
Coffee Supplies – Well, you will not be able to start your coffee business without supplies such as your menu (beverages and food), utensils (cups, stirrers), coffee equipment, furniture, and more.
Branding – To reach your target customers and make your business known, you have to invest in marketing and advertisement. Setting up your website or social media accounts is very helpful to gain more customers and sales.
Labor Costs – When you start a business, you must hire some people to keep the business going. When you have employees, then you must budget the payroll.
Taxes – Businesses should pay their taxes on their profit, that is the income minus the expenses. If you are partners in this business, then you need to register your coffee shop business as LLC or partnership. Then you pay the income taxes with your shared profit.
Cash Flow – Managing cash flow problems is very hard especially when you are just starting your coffee shop business. The expenses can make your income go out fast, and sometimes there are no sales. So, you must have interim sources of cash to have a positive cash flow.
How Much is the Cost to Start a Coffee Shop?
So, the point here is the coffee shop start-up costs. How much is the estimated budget to start opening a coffee shop business?
Starting a coffee shop will cost at least 200,000 US dollars and it is kind of impossible to start this business with around 10,000 US dollars only. If you only have a 10K USD budget to start your coffee business then you have to take more risk, work, and luck to succeed in this business.
200K to 300K is a great estimated coffee shop start-up costs. It will be easier to start this type of business and succeed with these amounts. These are enough to run a coffee shop business. However, if you do not have a good business strategy then the success rate is low because you do not have a definite business plan.
If you are short in your budget, then you can start a coffee cart that costs around 20,000 US dollars. You can always start small then create your business strategy and gain loyal customers. If you have enough money to have your coffee shop, then it will be easier for you to manage it.
Another thing that you can do is to sell coffee online first while you are still earning the 200,000 to 300,000 US dollars estimated costs to start your coffee shop business. This is a good start as many Americans love coffee. You only need a small budget to start selling coffee online, it is enjoyable and challenging as well. Decide what type of coffee products you like to sell. Choose a trusted coffee supplier, and create your online platform to start selling coffee online.
Coffee Shop Franchise
Another thing that you can try when starting your coffee shop business is to try a coffee shop franchise. If you search on the internet, you will see different answers on “how much does it cost to open a coffee shop”?
However, if you research a specific official coffee franchise that is establishing their rates in verified costs, you will find that Dunkin Donuts is around 217K to 1.6 million US dollars. And Coffee Bean & Tea Leaf is around 185K to 362K US dollars to open a branch. These are just sample computations, but it provides information on what are their estimated costs to start a coffee shop. That is based on verified information sorted out over many store openings.
So, these are all the coffee shop start-up costs. But remember that your final price eventually depends on the concept of your coffee business, your menu, furniture, unique circumstances, and other important matters. If you have other ideas and want to share your thoughts, you can type them in the comment section below.
