Coffee shops are probably one of the most favourable places people choose to go. Whether it’s to work, study, meet up with friends, go on a date, get breakfast or even simply relax. Cafes are a known go-to place for all ages so you can count on customers walking in daily.
Plus cafes are a great business to start with as a newbie entrepreneur. You can go for 4 item menus and get at least one barista to help you out. With that menu size and extra help, you can cater to at least 3 customers at a time.
So if you’re thinking about opening a cafe, you can check out everything you need to know down below!
How profitable is a small cafe?
Opening a small cafe is a pretty profitable business. Most small to medium-sized cafes make around $60,000 to 160,000 a year. Depending on your location, advertising strategy, product quality and overall branding, profits may vary.
But owners usually get around 2% to 6% of the overall sales which is pretty good considering the amount of labour a small cafe endures.
What should I major in if I want to open a cafe?
Regardless of what course you get, you can still open and run a successful cafe. But courses that can come in handy when owning a cafe are business management, culinary arts, marketing and entrepreneurship.
These courses will give you the upper hand when it comes to running a business, managing finances as well as knowing the importance of your products.
What skills do you need to run a cafe business?
Certain skills can help you out tremendously when running a cafe business. Having these skills will give you better odds of making a heftier profit at the end of each day. So before opening a cafe, consider honing these skills:
- People skills
- Leadership skills
- Financial management skills
- Creativity
How do I start a small cafe?
It’s not as simple as it sounds to open a small cafe, but it also doesn’t have to be difficult. As a starting entrepreneur, you might not know what processes to start and end with but that’s completely normal. To help you out, you can use the step-by-step guide down below:
Step one: Know the market
Start off by knowing all about the cafe industry. Doing so can give you the upper hand as you run your business. Know who you’re up against, the standard price margin, trends and so on.
Step two: Come up with a menu
After knowing all about the market, you can now come up with your menu. knowing the market can enlighten you on standard menu items such as lattes, americanos, cappuccinos, cold brews, puff pastries and so on.
With that knowledge, you’ll know what people look for in a cafe. And since you know what your competitors offer, you can come up with a more exciting menu while keeping standard cafe items.
A great thing to add to your menu is something you specialize in. For instance, if you make tasty strawberry shortcakes, you can add that to your menu and sell them per slice. Having specials on your menu can make it easier for new customers to know what to try.
Step three: Get suppliers
To run a successful business, you need reliable suppliers. Once you’ve completed your menu, you can now make a list of ingredients and materials needed. When looking for suppliers, make sure to get reputable ones.
Getting trust-worthy suppliers can prevent you from getting scammed and you can bet to receive quality items. Plus this will give you fewer things to worry about when running your business.
Step four: Come up with a brand
Now it’s time to come up with a personality for your business. Coming up with a brand is more fun than it is stressful. In this step, you get to choose your brand icon, brand name, brand colour, theme and approach.
Step five: Register your business and get all vital permits and documents
It’s now time to make it official! Get your business registered to run a legal cafe. And once you get approved, get all the necessary documents and permits.
These are important so make sure to come complete. This will prevent your business from closing down due to incomplete documents or running with no permits.
Step six: Get business insurance!
Last but not least, get your business insured! This is an essential thing some businesses overlook. But wise businessmen know better and get the insurance their business needs.
This can protect your business from various dangers that can not only cause setbacks but can potentially close your business down.
Getting business insurance can protect you from lawsuits, financial losses and damages from accidents and calamities. You can hire an insurance broker to help you get the best insurance for your business.