After some advice please...

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Olivia K

  • #1
    Hi everyone my name is Olivia and I am 22 years old from Derby in England. Both myself and my partner have some money to invest. We want to start a coffee shop maybe. I am really needing some advice on how to start this please.
    My partner does not know I have come on here as he is too proud to ask so I am researching it myself.
    He is a coffee fanatic and together with my marketing background think it would be a good match.
    I am still open to other ideas as well. Also it doesn't have to be in Derby either so will see. We are still thinking to maybe do it abroad but could obviously only set it up in the EU.
    I really need to help desperately so would love to speak to people about this.
    Thanks, Olivia xx
     
    L

    lositom

    Free Member
    Jan 27, 2014
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  • #2
    There are lots of things to consider and there will be financial commitments. For example

    Premises (lease terms, rents, business rates, utilities, alarms, phones etc.)
    Insurances
    Kitting it out (shop/café fittings - furniture, equipment - including specialist machines, décor etc.)

    Are you both intending to work there full time? What are you expecting profits to be? How long can you afford to work there without taking money whilst the business is growing?
     
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    O

    Olivia K

  • #3
    Hi lositom and thank you soo much for the reply. I know there are lots to consider and we need to plan lots before we decide. We would both work there yes. I have no expectations on profits at all so would need to look into that. I would also say that in the 1st year we would not expect to draw much income from it so maybe I could do other work on the side.
     
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    lositom

    Free Member
    Jan 27, 2014
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  • #4
    I would imagine that a café would be a full time job+. Open 7 days a week and long hours. Would you have time and energy to work on the side?

    I love the idea however but know very little about this particular business - other than buying the odd coffee!

    Other things to work out are your target markets - for example, would you open early for commuters to buy their coffee and pastries for the train into work, or would you offer builders' breakfast, or parents to meet up after school drop off and before school pick up, or maybe kids' afterschool sandwich packs...?

    What will make you stand out from the competition? How good is your coffee, cakes or whatever? You'll need to accurately calculate overheads in order to work out a pricing strategy. Are you going cheap and cheerful? or luxury? or somewhere in between?
     
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    O

    Olivia K

  • #5
    Hi thanks, we want top/high end as my partner is amazing with coffee and drinks and I can bake and am good with marketing.
    The problem is still not sure where to open it but I am thinking we don't want to serve alcohol or open at night. It's just not our market. I have plenty of ideas and design styles are on my blog where I am going to collate all ideas etc to fully look into this before committing.
    Alternatively I would be willing to invest in something else but really don't know what.
    I am soooo confused I know, sorry just started to look into this now as no longer want to work for anyone. xx
     
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    lositom

    Free Member
    Jan 27, 2014
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  • #6
    That's exactly how I work - if it seems like a good idea then it's worth doing the research.

    What is your blog? can you PM it? (or post it here of course!)

    I think a coffee shop would be hard work both financially and with regards to time commitments. That's not a bad thing of course but I have no idea what your financial situation is (am I have no need or right to know).
     
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    Olivia K

  • #7
    I know well I will keep researching lots as I am going to work for myself, I give it 12 months hopefully sooner.
    My blog is at oliviapreneur.blogspot.co.uk/ but only just started it but under the decor post you can see what style I want it to look like. xx
     
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    Olivia K

  • #9
    TomJ83 said:
    Hello @Olivia K. I have checked your blog and it feels like you're committed to this. That's good. Have you though about what business type you would want to choose, if you decide to start your business in the UK.

    Awesome thanks soo much for this I will check it out, I know of the gov.uk website but have not seen this link yet!
    I was only told this week about my money that I will have to invest so I have only just started my blog so thanks for saying I am committed as I really am. This is my time to sort my life out so I don't have to work for anyone else!
    Lots to think about though and I am open to lots to make money! xx
    Click to expand...
     
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    Kev2017

  • #11
    Great to hear from another person from Derby!

    I'm a Derby based business coach and would love to help out with this. Would you like to come to the office with your partner (as long as he doesn't mind my instant coffee!) for a chat?
     
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    MOIC

    MOIC

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    • Nov 16, 2011
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  • #12
    What budget have you allowed to invest?

    What experience do you both have in running a business and working in a coffee shop, or as a barista?

    Apart from coffee, what else would you look to sell (and do you have experience in these products)?

    My advice would be to prepare a business plan with an accountant AND someone who has experience in running the type of coffee shop you are planning to open.

    Getting the financials right would be my first concern.

    The second would be to provide something different to what is currently available in the (researched) location you decide to open in, based on quality, quality and quality.

    Deciding on the right location for your type of business/products will take time and plenty of research to ensure your target market will appreciate what you will be offering.

    A good idea would be to work in a coffee establishment, to understand the business and gain experience. Employing experienced baristas is also a must.

    Don't rush into it.

    Good luck.
     
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    Deleted member 283937

  • #13
    There are lots of good points made in the previous comments. They are right there are lots of things you have to think about and consider before you open a coffee shop.
    Location, equipment, employment law, marketing (you've got that covered)planning permission, target market ......... the list goes on!
    The most important thing you have to get right is location, as this is the only thing you can't change. Therefore getting the location right is crucial to your success. My advice is don't underestimate how many people you have to get through your door each day.
    As a route to self employment if you set up a great cafe it can be a very rewarding career path.
    Best of luck with it.
     
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    Chris Ashdown

    Free Member
    • Dec 7, 2003
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  • #14
    Something to consider

    The shop needs to be probably in the centre of town where all the other big names ;and to make a large amount of sales you need to really copy the leaders

    Town centre shops are very expensive and will normally have long leases of 10 years with maybe a five year break option, Lease rates anything between £25000 and £50,000 per year plus building insurance

    Rates about just under half the rent cost

    Shop fittings and equipment probably another £50,000, It soon adds up and shop fittings are really expensive (my friend recently upgraded his fish fryers and fridge at £80,000)

    Shopping centres often demand you open 24/7 and not allowed to close outside centre hours

    If successful then expect one of the big firms to open up close by and try and grab your customers

    Good luck
     
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    Noah

    Noah

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    Sep 1, 2009
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  • #16
    Olivia K said:
    My partner does not know I have come on here as he is too proud to ask
    Click to expand...
    With respect, this makes me nervous. I think your first objective is to convince your partner to understand that everybody needs help; without a change in attitude, he is going to make painful mistakes that may well kill what is already a challenging business.
     
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    Mark T Jones

    Mark T Jones

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    Nov 4, 2015
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  • #17
    The failure rate is high in the F and B sector. One of the key reasons for this is that indies come in with the notion that if they provide a decent product and ambience the customers will beat a path to their door

    The reality is that you need to either provide what the passing customers want, or to find the customer who will appreciate (and pay for) what you provide and either go where they are or brin* them to your door

    My reccomendation would be that you find a business plan template (many banks and accountants provide them) and start to work on it paying particular attention to cashflow projections and marketing
     
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