So many people have dream of opening their own coffee shop every year. The advantage is enormous. You can be your own boss and you can interact with people while having your favorite cup of coffee. Too many people underestimate complexity of the tasks ahead. To thrive, you need to learn and manage the business risks. You need to research and come out with an interesting concept that your competitor is not doing right now.
Many employees take the plunge into entrepreneurship after being allured by the charm of having the restaurant decorators coffee shop lifestyle. However, many of them do not fully understand what they are getting themselves into and end up losing their savings nest. You need the high level of energy and confidence to start a new business but it can also blind you to the potential pitfalls.
Statistics show that many independent and franchise shop owners are barely making it on a month to month basis even when they are working long hours. It is not long after opening their door to customers that they realize that they are giving themselves another job with long hours but low pays. Another essential skill most business owners are ill-equipped with is the decision making skill. The pitfalls of coffee shop businesses are aplenty and almost every one has the potential to become disastrous. It can be costing the owners a lot of money. Likewise, there are a few success factors that you must be aware of.
The most crucial mistake every owner make is to have too big a plan. At almost every opportunity, the coffee shop owner always thinks about further expansion plan without first stabilizes the existing business first. When you get the principles right, it is possible to expand from there. What normally happens is that the business owner will spend their money on things that do not contribute directly to their business. They also do not have their eyes on the critical business drivers such as cost controls and getting the concept right. As a business owner, you have to learn how to budget your money wisely according to the revenue generated.
In short, a lot of coffee shop owners do not even have a budget. Many people have underestimated the budget necessary to carry out the concept they have in mind. If funding is an issue, it does not make sense to open the shop in the first place. Secondly, you have to exhaust all avenue of financing if self capital is not enough.