Okay we have a great location picked: only drive thru one a major commuter road w/ space for a small retail shop inside. I have a great supplier who works with other small coffee shops in the state. I have the plans laid out and everyone thinks its great idea.
But for renovations/supplies/ect its coming out 300k. Is that a horrible idea?
I have reached out to local agencies and haven’t found grants and I don’t feel comfortable asking family.
I’m torn between you only live once/this is my dream and omg I want to throw up.
Is this your first venture in this kind of business? If yes, consider a food stall or delivery business first, move up to coffee truck, and then coffee shop.
I did a deep dive on coffee shops and almost started one. First and foremost is their a median it barrier that is a big problem. Also too much traffic creates issues. Is it close to business or industrial buildings where people will go to work. Is it on the AM or morning side of the road for traffic? Coffee shops can succeed so I wouldn’t be scared to do it. I just wouldn’t start with that type of costs. Find a cheaper way to start off. Used equipment, cheaper building, leased land, and if you are going to build on leased land try and at least do a 3-5 year contract and try to get a mobile home type unit so you can move it. Overall this can succeed, you just need to start off cheaper and make sure you have all your ducks in a row. Also the coffee business is not the same as the general food and restaurant, it’s much more stable because you are a part of someone’s daily routine.
It isn’t clear whether you are buying a property or if it’s all expenses.
You are either want to run a construction/renovations company, or you want to run a coffe shop.
Buy an existing coffee shop, or rent an existing coffee shop.
Run the numbers on how it all works. Then run the numbers again, but cut your income by 20% and increase your expenses by 20%. Now decide if it’s a good choice.
Can you go smaller and do a food truck and make it fancy, do pop up shops, and get on third party delivery apps and do some marketing with in person and online surveys and instant clicks
You probably will need a million…
If this is Downtown NYC? Sure!
If this is BFE Laramie Wyoming? Terrible idea.
But we don’t know enough and if you’ve provided 100% of what you have, you don’t know enough.
I’m 43 and have been running a service business for 20 years. When I was 19-23 I worked with a man whose company I copied with his blessing in another state. He taught me everything and when I was making my plans to move, he told me to remember 1 thing when planning out the start of the company. “Plan on things taking twice as long and costing twice as much as expected.” Did I take that advice to heart? No. Did I find out the hard way he was correct? Absolutely yes. Make sure you have your numbers and time period down then add a nice cushion on both numbers
Have you ever worked in a coffee shop? Also, if 300k is for renovations and supplies, what happens if and when the renovations go overbudget or they find something unexpected that needs to be fixed before renovations continue? Would you have enough capital for that? Then do you have enough capital to pay workers or even yourself for that matter? Lots of businesses go under when they’re undercapitalized.
Look location affects the costs to open normally. If you are in a major city, then 300k is reasonable. If you are in the burbs, it should be a maximum of 150k. I know cafes that have opened for under 70k.
Bruh you better have a big ass marketing budget. And a crazy hook and product.
Now figure how to cut cost all around . What’s necessary reslly what could wait etc . And like someone already said if you have to ask you probably need to figure out your numbers