Successful Coffee Shop Business Plan

Need a Proven Coffee Shop Business Plan? We’ve Got It.

Are you eager to learn how to open a coffee shop the right way and wondering about the costs involved? Before diving into the coffee business, you need to do your homework and distill your research into an exceptional coffee shop business plan.

Having assisted entrepreneurs across 30 states to open more than 300 independent coffee shops, we know that a business plan is essential for success. Our guide, "7 Steps to Success in the Specialty Coffee Industry," includes an editable business plan template with every purchase, setting you up for success from the start.

Investing time and effort in developing your business plan is crucial. The more comprehensive your plan, the better prepared you'll be to run a successful coffee shop.

## The Elements of a Successful Coffee Shop Business Plan

Creating an exceptional business plan is like crafting a roadmap for transforming your coffee shop startup idea into a thriving reality. If you’re seeking outside financing, a compelling business plan is an absolute necessity.

A strong business plan forces you to answer all the questions needed to set up your coffee shop for success. Done right, your plan becomes a reference manual for running a thriving coffee shop.

Your plan should include the following six sections plus a cover page. Most sections should take up a page or two but not much more – you’re not writing a book! Financial data, however, often takes a few pages.

### Section 1: Executive Summary

The executive summary should actually be the last section you write. This one-page summary highlights and condenses key points from each section of your business plan.

Devote a few sentences to each section. Make them unique and interesting. Every word counts. This is your chance to tell the story of your business. Next to the financial data, it is the most important part. It is the first page that bankers and potential investors will review.

After you write the executive summary, share it with bankers or business consultants, then revise your plan based on their suggestions.

### Section 2: Business Description

Write a brief description of your proposed coffee shop. Include the:

- Business name

- Location

- List of products or services – draft a potential menu

- Target market

- Law firm that reviews contracts

- Pictures of the space

- Floor plan

- Leasing arrangements

### Section 3: Management Profile

Describe your management team and their qualifications in the management profile. If you are the primary manager, summarize your resume. Highlight any restaurant or coffee shop experience you have. If you lack direct experience, emphasize transferable skills and accomplishments.

If you have managers or partners, include their education, employment record, skills, and accomplishments. Don’t forget to highlight business consultants. Investors gain confidence from advisers with a proven track record.

### Section 4: Information about the Coffee Industry and Your Competition

The coffee market in the USA continues to grow with many potential customers underserved, especially in rural areas. Conduct research into both the coffee industry and your community. Your marketing analysis should examine:

- Industry trends

- Key financial measures in the industry

- Local competitors – not only other coffee shops (both chains and independents) but also potential substitutes for coffee (ice cream, smoothies, etc.)

- Demographics and demand in your community

- Consumer coffee sales sensitivity to economic cycles

### Section 5: Marketing Strategy

In your marketing plan:

- Explain what will set you apart and why customers will choose to buy from you (your unique selling proposition)

- Describe the location of your coffee shop and the type (walk-in, drive-thru, kiosk, etc.)

- Identify target customers (geography, age range, income, interests, etc.)

- Outline marketing strategies you will use to attract customers

### Section 6: Financial Data

Your financial plan outlines the assets, liabilities, and cash flow for your coffee shop. Bankers will examine this section to determine the financial health of your potential business. This section requires three documents:

1. **A Cash Flow Statement**

    - The cash flow statement helps determine your business’ ability to pay its bills in the short term. It outlines the initial investment, level of sales needed to break even, expected expenses, and any money received from outside sources.

2. **An Income Statement (P&L)**

    - In simplest terms, the income statement or P&L shows total sales and expenses for the year. Most information needed to fill out this statement comes from the cash flow statement.

3. **A Balance Sheet**

    - The balance sheet summarizes assets, liabilities, and net worth at a particular point in time using the formula: total assets - liabilities = net worth.

Once you’ve completed the cash flow and income statements, the balance sheet is a matter of filling in the blanks: total assets include assets (cash and inventory) plus fixed assets (equipment minus depreciation). Liabilities include accounts payable and long-term debt.

## The Proven Coffee Shop Business Plan Template

As an award-winning coffee roaster with a team of coffee shop startup consultants, Crimson Cup has the expertise to guide you from drafting an exceptional business plan through choosing a location and marketing your coffee shop. Our education and training programs were cited by Roast magazine as a factor in choosing Crimson Cup as their 2016 Macro Roaster of the Year.

We train hundreds of baristas and coffee shop owners each year at our Crimson Cup Innovation Lab – the largest SCA-Certified Premier Training Campus in the Midwest.

## Going Beyond the Coffee Shop Business Plan

Greg Ubert, founder and president of Crimson Cup, wrote the book on successfully opening and running a coffee shop. The Crimson Cup team has helped hundreds of entrepreneurs become successful coffee shop owners.

“For many potential owners, writing their first coffee shop business plan can seem overwhelming,” Greg said. “We’re happy to share our experience and walk you through the ins and outs.”

Greg’s book, *Seven Steps to Success in the Specialty Coffee Industry*, serves as the foundation for our 7 Steps to Coffee Shop Startup Success process, which has helped hundreds of entrepreneurs open and run successful coffee shops.

We provide all the support you need to open a coffee shop – without expensive franchise fees or royalties. You don’t even need to sign a long-term contract to buy our coffee.

More than just a short-term course on drink preparation or running a coffee shop, we offer hands-on training and ongoing guidance for both baristas and business owners.

With decades of experience in running coffee shops, our coffee shop startup consultants can help you go beyond the business plan to:

- Choose the right location

- Lay out your shop for optimal success

- Create a menu that customers will love

- Hire and train staff

- Attract customers with low-cost grassroots and social media marketing techniques

- Serve great-tasting drinks with award-winning coffee and high-quality coffee shop supplies

- Prepare to thrive in good times and bad

In conclusion, a successful coffee shop business plan is essential for anyone looking to enter the coffee industry. By following these steps and utilizing proven templates and guidance, you can set your coffee shop up for success from day one. Whether you're a novice or an experienced entrepreneur, our comprehensive approach ensures that you have the tools and support needed to thrive in the competitive world of specialty coffee.