Starting a Coffee Shop: what do I need to know

[Pendon]

Hello guys! I'm about to open my own small coffee shop and would like to know what I need to know about the pitfalls. I have a business plan, I have already looked after the premises and am going to register an LLC. My friend also makes wonderful pasta cakes, I would like to sell them in my coffee shop. Do I need to hire a manager or can I manage on my own at first? Perhaps someone already has experience and you can share it?

 

[secretagentdad]

Hell yeah.
Just do it bro. Run it for the sake of running it first so you learn your shit.

I’m planning on trying to open one to one day.

 

[Ryuzaki]

Hello guys! I'm about to open my own small coffee shop and would like to know what I need to know about the pitfalls. I have a business plan, I have already looked after the premises and am going to register an LLC. My friend also makes wonderful pasta cakes, I would like to sell them in my coffee shop. Do I need to hire a manager or can I manage on my own at first? Perhaps someone already has experience and you can share it?

If you hire a manager and you haven't done the work in this particular coffee shop, who's going to teach the manager to do the particular things that are unique to this particular shop? Who's going to write the operating procedures for opening, closing, cleaning, whatever?

It wouldn't surprise me if you couldn't find someone who's specialty on their resume is "I've managed coffee shops before, it's my thing", but then you have to wonder why they aren't still doing it. And they won't be trainable. They'll be arrogant and trying to train you.

You're going to have to get in the trenches and figure everything out, document it, then train your replacement. Otherwise you'll be too divorced from operations to know what's going on, working or failing, why the revenues and profits aren't matching up, etc.

 

[Pendon]

Hell yeah.
Just do it bro. Run it for the sake of running it first so you learn your shit.

I’m planning on trying to open one to one day.

Thanks, bro! I will do that! I appreciate your support and wish you good luck either

If you hire a manager and you haven't done the work in this particular coffee shop, who's going to teach the manager to do the particular things that are unique to this particular shop? Who's going to write the operating procedures for opening, closing, cleaning, whatever?

It wouldn't surprise me if you couldn't find someone who's specialty on their resume is "I've managed coffee shops before, it's my thing", but then you have to wonder why they aren't still doing it. And they won't be trainable. They'll be arrogant and trying to train you.

You're going to have to get in the trenches and figure everything out, document it, then train your replacement. Otherwise you'll be too divorced from operations to know what's going on, working or failing, why the revenues and profits aren't matching up, etc.

Yes, you are definetely right. First, I have to figure everything out myself, set it up and structure it, draw up a clear action plan, and then hire staff. Thanks for the tip, even though I'm leaning towards that too. Thanks for support

 

[freshpeppermint]

Hell yeah.
Just do it bro. Run it for the sake of running it first so you learn your shit.

I’m planning on trying to open one to one day.

Hey you mentioned you plan on starting one. Do you hope to run it like full-time or it being passive?

I feel as if most local businesses don't make that much money, do they? Like you need huge amount of money upfront to run it, have employees and ROI I am assuming wouldn't be as good as say owning a portfolio of large niche sites or agency where you sell backlinks, SEO services, marketing. If your making good money from SEO and online stuff, why bother doing these small offline things??

Do you guys know how to find out how much local businesses in your area make? Like Local coffee shops, tea shops, restaurents, pet shops.

 

[Samwise89]

Do you guys know how to find out how much local businesses in your area make? Like Local coffee shops, tea shops, restaurents, pet shops.

You can snoop around for your area on BuySellBiz. Figure out the average multiple for the industry, take the sale price, divide it by the multiple, and you'll have the monthly profit.

 

[secretagentdad]

Hey you mentioned you plan on starting one. Do you hope to run it like full-time or it being passive?

I feel as if most local businesses don't make that much money, do they? Like you need huge amount of money upfront to run it, have employees and ROI I am assuming wouldn't be as good as say owning a portfolio of large niche sites or agency where you sell backlinks, SEO services, marketing. If your making good money from SEO and online stuff, why bother doing these small offline things??

Do you guys know how to find out how much local businesses in your area make? Like Local coffee shops, tea shops, restaurents, pet shops.

Prolly won’t make much money.
I’lle have a cool spot to hang out with my friends though.
I think ur crazy if you start something like that looking to make money.

 

[zak]

Do you guys know how to find out how much local businesses in your area make? Like Local coffee shops, tea shops, restaurents, pet shops.

I'd start by talking to some local business owners. The direct approach often works best.

 

[Pendon]

I have an update, guys. I have already registered my company(by the way it took less efforts and time as I got used that paperwork usually takes a lot of time - I did it online). Also thanks to your advice I decided not to hire anyone at least now - I made everything on my own in order to understand the process and after some time give certain and strict instructions for the staff. Now my friend and I are doing a great job together - I take orders, prepare coffee, communicate with clients, keep documentation, and she cooks wonderful pastries, and the queue for cakes to order is already a month in advance

 

[Hanuman]

and she cooks wonderful pastries, and the queue for cakes to order is already a month in advance

Wish you all the best. It may probably not seem like the right time to ask this question, but what's stopping your friend from going all alone in this? Or, do you have a subcontracting arrangement with her?

 

[Pendon]

Wish you all the best. It may probably not seem like the right time to ask this question, but what's stopping your friend from going all alone in this? Or, do you have a subcontracting arrangement with her?

Thank you for your support! Yes, you are absolutely right - I see that she is growing and her success leads her to running her own pastry-shop I will be happy for her! But for now we have this arrangment - she is pregnanat now and opening own business right now - is not what she really wants to do