In recent times, coffee consumption has increased which has led to the emergence of lot of entrepreneurs into coffee business. A research suggests that more than 80% of Indian coffee is exported, depicting that the production and consumption of coffee in India is rapidly increasing. Therefore, coffee and coffee shop has been developed as an individual business itself which has started contributing to the country’s economic growth.
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Necessity of a Coffee Shop
Coffee shops are places where people come for not just drinking coffee. Moreover, they visit coffee shops to meet, read or write in a peaceful and refreshing environment. They also prefer coffee shops for other purposes like meetings, dates, board game events, etc.. These days’ live sports screenings are also conducted by coffees shops to provide a better experience for the fans, and this also helps in the marketing of the coffee shop. Attending meetings at a coffees shop is becoming a trend now, as it helps in impressing the other party of the status that one holds.
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Creating a Coffee Shop Business Plan
As there is increase in utilisation of coffee, the idea of establishing more and more coffee shops is also gaining pace. Every business needs a plan to make its activities better and organised before and after it comes out in the market. Some of the ways one can make a business plan for their coffee shop are as follows:
a) Business Layout
What is the most important aspect of any business plan? For any business plan you need to understand the purpose and analyse the market and its trend that you target for your business. Post analysis of the market you need to distribute the responsibilities among the hired skilled team. Then you need to consider the budget under the planning to fulfil monetary needs for every action. These layouts help during the time of economic crunch or emergency before the launch of a coffee shop or later.
b) Analysis of Competitors
While you enter any kind of industry, you always need to be aware of the competitors that you would come across. This will allow you to analyse the power of competitors and the revenue that they generate every month. With that it becomes quite easy to plan the methods of earning profits. The location of the coffee shop can also benefit for earning profits. If the area of the coffee shop is near the audience that can afford the prices of the coffee shop, you may be able to get to the breakeven cost in lesser time. If the location does not help in earning enough production cost then it becomes difficult to earn from the market. Thus, being close to the competitors can be used as a motivation to grow in the market with a healthy competition.
c) Examine the Internal and External Factors of the Plan
The internal and external factors are basically the SWOT examination of the organisation. Strength, Weakness, Opportunities and Threat analysis is important for any plan, as it helps in making the base of the coffee shop business strong. If the strength is understood then it will become easy to keep them forward and to use it for marketing the business. After strength comes the weakness on which the business can work on, if examined with care. This prepares them to take care of any situation that falls under the weakness category. The external factors include Opportunities and Threats. The opportunities analysis can be done after the coffee shop starts earning profits. Once the business starts functioning it becomes easy to analyse the opportunities that come along the way. Same is with the threats; they can be analysed before and after the business starts earning in the market. Before the business starts the threats can be analysed by understanding the working of the competitors and how the similar market works.
d) Cost Analysis
The budget set for any business depicts how well the functions of the organisation be conducted. If the planning and budget do not coordinate, then the actions will be hindered or become faulty due to lack of proper allocation. Thus, the over planning or less planning might affect the coffee shop. The cost analysis also set a standard of the production cost with the earning cost. The profits margin can thus be set accordingly. Therefore, for coffee shop business plan or any business plan cost analysis is a must.
The points mentioned above shall prove to be helpful in analysing the business plan for any industry. The ultimate goal behind it is to create a brand image out of the firm and to commercialise it to the core. By doing this the consumers are attracted more and the word of mouth strategy helps in expanding the business. For cost functioning, business loans are also one of the options that can be used in the running business or at the beginning of the business to help fulfil all the requirements during the establishment of the coffee shop.