Many coffee shop owners do not realize the importance of having a good coffee shop business plan. A business plan is basically a document that list down your competitive strategy and execution during the operations. Having a compelling strategy will inspire you to great heights in business success and having a good execution business plan will ensure that your castle is not built on clouds. It forces you to dream big and at the same time to come out with operations to make this dream a reality.
Having a well thought out business plan will give you an advantage over your competitors. It give any your potential bankers and investors a big boost in confidence in your vision. They realized that most of the coffee shop owners cannot put down their strategy into paper; mush to execute them well.
In general, the language in the coffee shop business plan should be factual and business like. You can use any prospectus of a listed company as a reference. You may say that you are not going for listing! You must realize that the investors are really looking for good deals and there is no better way to show them you mean business by having a world class business plan. Use graphs and government statistics to back up your research and this will give you instant credibility. A good business plan will basically cover two things, your business strategy and execution.
A strategy is the goal you want to achieve in your business in the short run, which is the first one year and for the long run, which is 5 year. As this is a big topic by itself, I shall cover the few critical components briefly.
i) Target market
The first thing you must cover is your target market. This includes the demographics, where they eat and how affluent they are. Then you need to estimate the market size. This will depend on how big an area you think you can realistically cover.
No business exists by itself. If there really is none, that is a sign of no demand in the market. You must list down your nearest competitor in your chosen niche and their strengths and weaknesses. If you can, list down their revenue per month and estimated market share as well.
iii) Your Unique Selling Proposition (USP)
Your USP is how you position you business differently from other competitors. It answers the question of why your customers must be crazy not to do business with you compared with your competitors. It could be your quality food, your service, your cozy environments or your pricing. Give them a compelling reason why and they will flock to your coffee shop.
iv) Target location and rationale
The location you choose to start your business really depends on your USP. You may choose to do an upscale coffee shop and naturally, a nice and relaxed environment is important. The renovation costs and may skyrocket but you can … Read More