You’re ready to be your own boss. You’ve done your homework. You know you want to launch your own business. And you’ve determined that coffee, more than anything, is your passion. These are the first steps toward successful business ownership.
But there’s one major thing standing in your way: your business plan. Without it, you won’t be able to secure financing, get your coffee shop set up, and start earning revenue. A business plan is a critical component in the launch of any business, small or large.
In this article, we will outline the necessary components of a successful business plan for a coffee shop. With these insights, you can launch the coffee shop of your dreams sooner than you think!
The Outline
According to the Small Business Association, a traditional business plan should have nine core sections:
- The Executive Summary
- The Company Description
- A Market Analysis
- An Organizational Structure Outline
- A Service or Product Description
- A Marketing and Sales Pitch
- A Funding Request
- Financial Projections
- An Appendix
All of these elements are commonly found in a standard business plan, though some business owners may opt to add to or simplify their list per their business needs. Here is how to fill out the details of your business plan for a coffee shop, by section:
1. Executive Summary
This outlines the values set forth by your business. Unlike some of the other sections noted below, this section is fairly standard across all business plans. Don’t feel like you need to add any industry lingo, as your executive summary should be high-level.
2. Company Description
This notes the specific ways you expect your business to serve the market. Be specific and help your reader envision your coffee shop. Describe the size of your business, your hours, and more. These will help paint a mental picture and guide your investor through your coffee shop business plan’s optimism.
3. Market Analysis
This shows you’ve done your homework and can identify specifically how your business will succeed where others fail. Your business plan for a coffee shop should take into consideration other coffee shop franchises, coffee coffee-drinking habits of your target audience, sales metrics, and more.
More than anything, the market analysis in your coffee shop business plan should show you truly understand this industry.
4. Organizational Structure Outline
This notes specific personnel who will be involved in running your business. It also notes whether you will be set up as an S or C corporation, an LLC, or a general partnership. There is nothing in this section that needs to be coffee shop business plan specific. But it does need to show you understand business, in general.
5. Service or Product Description
This helps investors understand what you will sell. You plan to deal in roasted coffee beans. Describe where you will source them from. Describe the varieties you will sell. Get your investor excited about tasting your one-of-a-kind product. The key to a successful coffee shop business plan is to pique the senses.
6. Marketing and Sales Pitch
More than anything, this shows you know how to talk about your product in a way that can get the market excited for it. Coffee is fairly easy to market, but it’s hard to market uniquely. Layer special elements about your brewing style or the flavors you will offer. Anything that makes you unique from the competition will help devise solid coffee shop business plans.
7. Funding Request
This specifically outlines how much capital you will need to launch your business. It also notes your plan for paying off this debt. There is nothing unique about this section as it pertains to a business plan, coffee shop or otherwise. Just be detailed and specific.
8. Financial Projections
These calculations should indicate you have a keen business sense. With these projections, you should be able to prove a return on investment for your funders. Coffee shops can offer a great return on investment, so this is a critical part of your successful coffee shop business plan.
9. Appendix
This should collect any additional information that’s necessary for your application, such as credit histories, equities, and more.
Align with a Trusted Coffee Shop Franchise Family
When putting together your successful coffee shop business plans, it’s important to show that you are going to launch a sure thing. And there is no better way to do that than to franchise.
Ellianos Coffee is a network of successful coffee shop franchise locations throughout the southeastern United States. Our franchise owners love being part of the Ellianos family. Find an Ellianos Near You!
