Starting something new is very challenging and exciting. Of course, it can be scary, too. We are so insecure, and suddenly, we are looking for answers to a lot of questions. It is so easy to make an excuse for everything on our path and give up on starting.
Sometimes we ask ourselves – is it time to do something like that? Maybe we should keep going to that boring job, to earn more money, to be safer, and then we will start with the realization of our idea. But, at some point, when the fire of our desire is burning us inside, it is time to be brave and finally start.
So, use that fire, while it is so strong, and don’t look back. Step by step, you’ll make success. It is important just to start. Keep your motivation at the highest level. If you don’t know how to do that, Ponbee can help you to build your success.
Ok, now when we are brave enough, it is time to go through a 7 – step guide on how to start a coffee business like a pro:
- Research before you start
- Don’t forger SWOT analysis
- Define your target market
- The business plan is half of all effort
- The strategy is a must-have
- Don’t skip marketing
- Learn every day
Keep reading and find out more about each of those steps.
1. Research before you start
Before you start your coffee business, you have to do research and collect all the needed information. Of course, it is hard to have all the information, but collect as much as you can.
So, here are 3 parts of the market that you need to research:
- Competition
- Potential customers
- Suppliers
1.1. Competition
There is competition in every field. So, the coffee business isn’t an exception. It is important for you to know who they are and how you can be better than them. Find out all about their way of doing business, suppliers, customers, competitive advantage.
You can find out a lot about them through their website, from the official list of businesses, or from other research material. You can even ask them directly what you want to know. Don’t forget that you can cooperate with them, it is not forbidden.
For example, competitors can share with you all the blogs and sites that were useful for them in process of making tough decisions. It can be about how to decide which coffee machine is the best for you or how to find a good place for your business.
Don’t hesitate, you will be surprised how nicely asked questions and a big smile can open every door for you.
1.2. Potential customers
Be aware that you’re doing your business for your customers, not for yourself. So, you need to adapt everything to their needs and desires. Consequently, you need to find out all about their needs and desires, and find the best way to meet them.
An online survey is a good way for collecting information about potential customers. In that way, you can learn more about their economic situation, demographic characteristics, social environment.
1.3. Suppliers
Suppliers are very important in every value chain. You need to have very good raw materials, but that is not too expensive. Something that you can afford, but also that can satisfy your customers in the best way.
Make sure that you have more than one supplier. In that way, you can protect your business when there is a shortage of coffee beans, for example.
You can do your research online. Find all coffee bean suppliers in your area, compare their terms and pick every that is good for you. The same process you can repeat with coffee equipment suppliers or any other that is important for your coffee business.
2. Don’t forget SWOT analysis
SWOT analysis is a tool that will help you to develop your coffee business. It can show you the potential position of your business in the coffee market, as well as the direction of your movement.
It can be a base for defining the strategy for business management. It has four parts: strengths, weaknesses, opportunities, and treats.
2.1. Strengths
Strengths are things that can give you an advantage. They are something that you are really good at doing them. It can be your special way of making coffee, rare coffee beans, good workers, good place, etc. Make sure that your strength is something that your competitors can’t copy that easily, so you can always beat them in the competition game.
2.2. Weaknesses
Weaknesses are things in which your business isn’t that good. For example, maybe you don’t have that good employees, so when you recognize that, you can make your business better by sending them to courses or webinars. Investment in your employees is always a good thing.
2.3. Opportunities
Opportunities are chances, something that we can utilize from new situations.
For example, imagine that you don’t have the perfect way of making coffee, some part of that process isn’t going well. Suddenly, your espresso machine has a breakdown, so you need to find out another way of making coffee.
You come across the art of the pour over, try it and it gives you so much better coffee drinks. So, you solved a problem that you had earlier and find a way to repair your way of making coffee drinks. Win-win situation.
2.4. Treats
Treats are things outside of your business that can make damage to it. You need to have different plans as a solution for them.
3. Define your target market
You should know that everybody cannot be your target market. A target market is a group of people, with the pretty much same characteristics. Your business is designed for them. You need to satisfy their needs and wishes.
So, when you do research on potential customers, you can see which group of people is your target market. In that way, you can make buyer persona, and adapt your business to that type of customer.
You need to be as precise as possible. The more detailed you go it is better for your coffee business. For example, find out which type of coffee beans your target group adores. Maybe, it is South African coffee beans, so you need to find a supplier for South African coffee beans, and make the best coffee drink of them.
That is a way for taking your business to the next level and making your customers happy.
4. The business plan is half of all effort
The business plan is a document in which you can show your business objectives and ways to reach them. It can provide you money. This document shows to investors and financiers your cost-effectiveness and the possibility of debt repayment.
The business plan has 3 parts:
- Marketing
- Financial
- Operational
The business plan describes all parts of your business, and it can give you a bigger picture of it. It is not a static document, with time it changes, so you need to do updates regularly.
5. The strategy is a must-have
The strategy is a way of doing things. It is a plan of action that can help you to achieve whatever goal you are interested in.
When you know your goal, you need to see which way is the best for achieving that goal. Ask yourself what you want, why, how to get it, when you should do it, etc.
For example, your goal could be to make your customers really happy. Your customers like tasteful coffee. So, you need to find ways to add extra flavor to your coffee. Your strategy can be trying different combinations till reaching the happiness of your customers.
6. Don’t skip marketing
Whatever you do, never forget to do marketing! Marketing is an important part of your coffee business. It will help you to promote and sell your products and services. Also, it will help you to a position in the heads of your customers, which is very important.
You can start with the 4P concept – product, price, place, and promotion. Every part of this concept will help you to start your business properly and to continue it the same.
Also, open the page on social media to communicate with your customers and make a brand of your coffee business. If that is too much for you, then hire a marketing agency to help you with this part.
Think about hiring a business coach, that can help you, too.
7. Learn every day
As a founder of a business, you will need a lot of different knowledge. The more you know, the better will be your coffee business. Read books from various fields, listen to different podcasts, communicate with business people, go to places where you can absorb more new information.
Knowledge is one of the most valuable resources, and the good thing is that nobody can steal it from you.
Conclusion
As you can see, starting a coffee business is a complex and exciting process. You will face a lot of difficulties, but the feeling of overcoming them is the best. Also, having something on your own is incredible.
When you make the first step, don’t stop, just go forward. Believe me, you will find a solution for every problem and you will grow from it. Just be brave and do everything in your power to make a successful coffee business.
Believe in yourself and go for it. Good luck!
Interesting Related Article: “5 Reasons to Drink Coffee at Work“