How to Start a Coffee Shop

Do you love making coffee? Are you interested in creating warm and welcoming atmospheres? Do you have a strong desire to make it on your own in a small business? If you answered yes to these questions you are probably considering starting your own coffee shop.

Coffee shops can be a great way for a person to step out into the world of entrepreneurship, but they are not necessarily guaranteed success. There are many different factors that might contribute to a person's ability to start a successful coffee shop - things like shop location, competition, product pricing, and overhead. Marketing is also going to be a big deal for the vast majority of non-franchise shops since you are creating a new brand for people to consume along with your coffee. Part of Starbucks' success is partially due to their ability to create such a strong brand across the country.

But this short guide is going to focus a little bit more on the mechanics of starting your own coffee shop and a little less on the finer points of small business success. Here are ten things that are highly recommended for you to do before opening your business' doors:

1. Develop a business plan. If you want your coffee shop to succeed you are going to need a good plan to get it off the ground, and even then you are not guaranteed success. But having an actionable business plan will help you get your act together and move you along the path to success. If you don't know how to make up a business plan or what they all entail you can find lots of information at your local library.
2. Get licensed in your state to sell coffee. In some states you are going to need to need to get more than just a simple business license, you are also going to need to get licensed with the state department that governs coffee shops. In some states this could be the Department of Agriculture while in others it could be the Department of Health. Check you local laws to be sure that you comply with them. Most states will have business organizations that can help you with this process for free.
3. Find a place to have your coffee shop. This can be inside your home (if your location is prime and you have the proper zoning for your locality) or in a more traditional place like a strip mall or office building. There are advantages and disadvantages to each option so be sure to take some time and search for the best option for you and your business plan.
4. Set up a bank account for you business. This will aid you in doing two different things: keeping your business and personal finances separate and opening up a line of communication between you and a bank for loans and other financial services. Both of these are often very critical to the success of a small business and should not be overlooked.
5. Talk with an accountant to begin setting up your business' finances. As much as we love the services that the government provides they can be a real problem when it comes to taking our money to pay for those services. Accountants can help you avoid unnecessary taxes by helping you understand the tax law and setting up a system that takes full advantage of your rights as a citizen.
6. Determine your business model. Most states let you start a business as a Sole Proprietor, a Partnership, an LCC, or as a Corporation. You can talk with a lawyer or accountant to find out which business is going to provide you with the liability protection and tax burden that you need.
7. Get insurance. There are a lot of different things that could go wrong with your business and to your business. Fires, lawsuits, and other catastrophic events can leavea business and its owner is a very tough place. Insurance can help you bear the brunt of these types of calamities and keep your coffee shop afloat.
8. Start a website. It doesn't have to be the best website ever, it just doesn't have to suck terribly. If you really want to get a great website you can hire a college student who is majoring in graphic design. They will usually work for a lot cheaper than a seasoned graphic designer but they will still be highly trained and really good at what they do. Here is a really good web designer.
9. Get your equipment. By now you should already be well along your way to starting a coffee shop and it is time to start making all the purchases that you will need to make in order to actually make some coffee. This is where having a good relationship with your bank will come into play if you don't already have the cash to buy. You will probably need a loan to get this working.
10. Have fun! This really isn't a business step per se but it is realy important for those who are starting a coffee shop to get away from traditional jobs that have them working for someone else in a capacity that they don't really enjoy all that much. Having fun is at the heart of starting a really good coffee shop.

 Starting a coffee shop can be a rewarding experience for those that give it a try.  It is certainly not for the faint of heart and should always be seen as a business decision.  It is a lot of work and it is not an easy road to riches.  But for those that love coffee, starting their own shop can be a very positive experience.