Understanding Your Market
Not understanding the target market causes failure. Opening where few buy gourmet coffee ensures a short lifespan. Upsell and cross-sell to non-latte and espresso buyers.
Planning and Preparation
Failures result from poor planning and preparation. Research by visiting shops and observing operations. Talk to owners about brewing, marketing, selling coffee. Attend events and read extensively about the industry. Master brewing great coffee and learn marketing, bookkeeping.
Competition and Differentiation
High competition saturates many areas with independent and chain stores. Newer shops must stand out or fall behind. Running a shop looks easy but many working parts exist.
Management and Customer Service
Management issues trickle down to customer service. Have the right team to avoid problems. Be humble and patient doing business. Build strong fundamental knowledge.
Location and Logistic Considerations
Location matters. Choose based on customer demographics and traffic flow. Rent dictates location but don’t sacrifice good positioning.
Finances and Legalities
Seek attorney guidance. Have enough operating capital for emergencies and inventory. Maintain reliable inventories of beans, milk, sweeteners, cups, lids, straws. Sign proper leases with exit clauses and renewal options. Capitalize on the latest industry trends but avoid risky fads.