Looking to start a coffee business in Australia and don’t know where to start? How good would it be to get advice from an experienced coffee owner? You’ve landed the right place: in this post, we’ll share with you which steps we took to create not only our own coffee businesses but also we have seen many of our wholesale clients go through as well.
To begin a new cafe: be open to learning. The reason is, each café is a unique venture. You will be able to learn and grow alongside with your “newborn”, as you see your baby bloom and become a grown-up rockstar coffee shop.
How to start a Coffee Business: Step-by-Step Guide
To start a coffee business, follow these simple but success guaranteed steps.
Step-1 Begin the work inside yourself.
Your primary motivation to start a coffee business derives from your high ROI hopes. However, shortcomings are common during the initial period. I’ll advise you to be optimistic and stay hydrated.
So, here is a list of challenges that you’ll face:
- To understand that there is a high rate of failure in this market. And despite that, be able to see opportunities to thrive, to think of yourself among those few businesses that’ll succeed.
- You are likely to, at some point, run out of money, resources, or customers. When that happens, many will try to recall how they had advised you not to go for the cafe business. At this point, you need to be determined that you’re only to be successful.
- Your profit is the product of your efforts. So focus on working hard and serving with quality instead of counting money and worrying every day.
Having read that until now… Are you feeling more motivated to start a coffee business?
Congrats….!!! You’ve established a growth cafe mindset inside your mind.
With enough resources, focus and hard work, you WILL be a prosperous café owner. And now you’re ready to move towards more practical steps.
Step-2 Do your Research
You’re obviously already doing your research. That’s why you’re here with reading this article.
However, now you need to extend it. So, include the followings in your research:
- Study other cafe’s success and failure stories to reason their consequences.
- Meet more cafe owners, get advice, and carefully reflect on the general strategies.
- Get to know how much financial investment it takes to start a coffee business in Australia. By the way, last week’s post is all about it. It might be a good ready if you are looking to start a new cafe business.
- Get an estimation of the time your small cafe will take to flourish.
- Know the needs of cafe customers, especially what they miss at most cafes, including quality.
Step-3 Brainstorm your Cafe Business Brand Identity
Your cafe business must be unique and sought after. So, once you’ve reckoned your business concept, think about the theme and echo of the cafe’s identity.
It’ll help you stand out. Be creative besides keeping the demand of your customers in view.
Step-4 Manage your Funds to start a coffee business
If a cafe business owner’s revenue has won your heart to switch to a coffee business, you must have researched about the cost of business as well. So, now you need to arrange for your finances.
You can invest your savings, get loans from the state, funds providers, or your friends as well.
Step-5 Find the Most Suitable Location for your Cafe
Your cafe’s location decrees your coffee business success. The time is to see which location serves the best for your cafe — a cheaper one saves money but cuts on revenue.
I never compromise on the cafe’s location. Hence, you should also go for a location that brings a lot of foot traffic to invite customers — more fruitful.
Step-6 Draft your Business Plan
Surprised???? Why have I mentioned the Business plan in step five?
As an expert in the coffee industry, I’ve discovered that you can better plan your business after choosing the location. Your selected location uncovers the competition for your coffee business.
So, here you’ve to leave no stone unturned to be prominent and busy at the same time. Thus, you can better sketch your business name, vision and mission along with the strategy.
Step-7 Complete your Business Registration and Licensing
The time has arrived when you should appear as an allowed coffee business. For this purpose, register your coffee company and get a license for smooth operations.
Step-8 Hire A Consultant to add the skills you lack
One of the most neglected parts of a coffee business start-up is not hiring an industry expert. Either cafe owners forget about it, or they put it aside because of expenses.
In my opinion, a stitch in time saves nine. Despite being a skilled café owner, I sometimes consider hiring an expert who advises me occasionally. Either with marketing, finances or more technical aspects that I don’t have so much in-depth knowlefge.
If you can’t afford full-time hiring, get a part-time or occasional advisor. He’ll advise you, train you and your staff, besides planning your cafe menus and operations.
Step-9 Design your Cafe
Soon you’re about to inaugurate your cafe. But, design it first.
Your coffee shop designing will also comprise interior, exterior, sitting arrangements, etc. To extend space for customers’ sitting, don’t compromise on your kitchen space.
For an effortless, on-time serving, your staff must get enough room to access the gears and serving counter. Likewise, also infuse your brand theme in your cafe.
Step-10 Hire your Staff and Get it Trained.
Nothing beats education. So, learn all about the coffee business and get your staff trained before opening your coffee shop.
In this regard, your hired coffee consultant can play a role. So, discuss with him the barista training needs.
Also enrol yourself in online training programmes. I ensure not to miss any valuable course or webinar, etc.
Step-11 Build Business Relationships with Coffee Suppliers.
Your coffee suppliers are the experts who can advise you for free with their decades of experience besides helping you get premium quality coffee beans and other necessities. Staying in touch with the coffee industry experts serve your business interest.
Therefore, I’ll suggest you partner with the most friendly and versed people from the industry. Similarly, keep on maintaining good business relationships with your rivals too. Virtue wins more!!!
Step-12 Order your Cafe Essentials Checklist.
From hard to soft, everything is essential for your cafe. While moving towards the concrete existence of your cafe, you are to purchase the cafe supplies from trusted suppliers. Here are some must-haves:
- Coffee Beans
- Coffee Grinder, Coffee Brewers and Espresso Machine
- Frothing Pitchers and Thermometers
- Ice Machine
- Hot Water Dispenser
- Display Case
- Compartment Sink
- Food supplies
The list will go on. Don’t forget to buy your POS.
Step- 13 Open your Cafe and Adapt the Right Selling Strategy
With a beating heart, firm confidence, and upped chin, you’re ready to open the doors of your cafe for your customers.
How many will visit you? Perhaps 10 for a few weeks. Yet, my strategy can help you more if you follow:
- Cafes hardly deliver over 80% quality. Aim to give 100% and maintain it. You’ll get considerable followers in the future.
- What if one comes to buy one cup but buys doughnuts, cakes or muffins as well? Promoting multiple sales can earn in multiple for you.
- Integrate takeaways services as well. Soon, you’ll be serving customers for the takeaways and sit up at the same place — XX sales.
- Not all cafes fail because of getting no customers. Sometimes it comes with a higher demand and supply gap. In such a case, when it’s time to be vigilant, specify your staff duties and hire more.
Step- 14 Market your Business
I’ve converted many cafes from “zero to hero” because of marketing. Your cafe theme is your brand identity. The marketing allows this identity to reach the public.
So, advertising through multiple channels sets an air of authority and drives you out of being anonymous. As a result, you earn recognition.
Step- 15 Be Determined, Hard Working and Rising
Want to see your coffee business striving after 5 years? It’ll come through being persistent and working hard. It’s what lets you be an aspirant — it makes all the difference.
Final Thoughts: Time is Ideal to Start Coffee Business
Well crafted plans and perseverance are essential to keep going when you start a coffee business. Be headstrong to succeed in the coffee business. GOOD LUCK!