Coffee Shop Business Plan – The basic point you must cover

Many coffee shop owners are unaware of the importance of having a good coffee shop business plan. The business plan is basically a document that lists the competitive strategy and execution of your operations. There is a compelling strategy that will inspire you to great heights in business success and have a well-executed business plan that will ensure that your castle is not built on the cloud. It forces you to dream big while out and manipulating, making this dream a reality

Having a well thought out business plan will give you an edge over your competitors. It provides confidence to your vision for any potential banker and investor. They realize that most coffee shop owners can not put their strategies on paper;

In general, the language in the coffee shop business plan should be both de facto and commercial. You may use any prospectus of a listed company as a reference. You might say you do not plan to go public! You have to realize that investors are really looking for good deals and there is no better way to show them what you mean by business there is a world-class business plan. Use charts and government statistics to back up your research, which will give you instant credibility. A good business plan basically involves two things about your business strategy and execution.

A. Strategy

Strategy is the goal you want to achieve in the short term, which is the first year and the long term, ie 5 years.

i) Target Markets

The first thing you have to cover is your target market. This includes demographic data, where they eat and how rich they are. Then you need to estimate the size of the market.

ii) Competitions

No business exists. If it is not, there is no sign of demand in the market. You must list your closest competitors and their strengths and weaknesses in the market of your choice.

iii) Your Unique Sales Offer (USP)

Your USP is how to position your business differently than other competitors. It answers why your customers must be crazy not to compare with your business with your competitors. It may be your quality food, your service, your comfortable surroundings or your pricing.

iv) Target Location and Reasons

The location you choose to start your business really depends on your USP. You can choose to make an upscale coffee shop, naturally, a good and relaxing environment is important. Refurbishment costs may soar, but you can charge more for your product. You can choose a shopping center to meet the students or workers you want to relax.

v) Management Team / Investor

In this section, you must list your management team or investor. Experienced managers or investors with more than two decades of operating coffee shops are more valuable than a new one.

vi) Risk Factors

All businesses have some inherent risks. This could be changing tastes and needs, technological change, legal and regulatory changes and new entrants.

vii) Withdrawal Strategy

You can provide an exit plan in both cases. First of all, you make a lot of money and intend to open more chains. Then, you need to sell a number of stocks to give them a lot of investors financing. Second, if the business fails, you may want to negotiate to shorten the lease on the store and find ways to sell coffee equipment.

B. Operation

This section covers the detailed aspects of the day-to-day operation of the coffee shop business.

i) Startup Costs

These are the costs of getting your business off the ground. These include cost of refurbishment, layout of the coffee shop, purchase or lease of equipment and legal fees such as permits and permits.

ii) Monthly Income and Expenditure

After estimating the size of your niche market, you can estimate how many customers you can own as monthly income. You can then estimate monthly operating costs, including leases, employee salaries, and utilities.

iii) Operation

This includes the daily operations of your coffee shop, such as hours of operation, how many staff and service customers in the kitchen, and the type of furniture you need to purchase.

iv) Marketing

Your marketing method will depend on your USP and the image you want to portray. If you plan to make a high-end type, you can send postcards or flyers to your local area. You can also organize special events such as birthday parties or meetings.

If your niche is speed and price, you can advertise on a billboard near any bus or transit rail. You may want to offer special discounts to regular customers.

v) Funding requirements and sources of funds

You can start with your own money, but as your business grows, you need more financing. If the interest rate is favorable and you have been in business for more than a year, you can obtain a loan from the bank. If not, look for investors who risk their lives. Even if all else fails, you can still have your supplier fund you at a discount or a longer repayment.


After completing the first draft, you may want to have a second opinion from an experienced person, such as a lawyer or an accountant. It may take you a few drafts before you can show it to investors. It is recommended that you modify it at least once a year to see if it still applies