So, you are ready to build your new coffee business. Like any similar endeavor, it is a great idea to build your business plan – first to provide a roadmap of where you are going and then to help with your financing, if that is what you plan to do. Here at Hard Bean, we think business plans are so important, we help you write them by providing an outline. However, it is important for YOU to do the research on the industry, to decide what you want the focus and the mission of your business to be (No, it is not just to sell a lot of coffee) and to project the financial growth of the business.
A good general business plan, and one that we like, will contain the following:
- An Executive Summary: This will talk about what the company is; why you will be successful; how the Hard Bean program will help you get started; ownership experience; the mission of the business; choice of location and how you plan to hire and maintain employees; high – level financial information.
- The Coffee Industry: There are many resources to learn about the history of coffee, coffee shops and the size of the market. Answer the question…why is this a good industry in which to build a business and how will my business fit in.
- A Market Analysis: What is the industry outlook and your target market; what does your competitive research show; trends in the industry and how you will benefit; how will you be better than your competitors.
- Your organization: Legal structure of your company, organizational chart, who will run the business.
- Products you will sell: Types of coffee, other drinks; how you will change your offering with changes in consumer tastes.
- Marketing plan/strategy: Talk about how you will find customers and keep them; why consumers will want to buy your coffee product; online and social media marketing plans.
- Source of Funds: Talk about how you intend to finance the business; your funding requirements; how much funding you will need to get to a breakeven point; how you will use your funds – equipment, product, employees salaries, how you will pay off your debt.
- Financial projections: Will show the bank or other interested parties that your business has a great chance of growing and succeeding; provide pro-forma income statements, balance sheets, cash flow projections and capital expenditures for the next 5 years; graphs and charts are good here.
- Appendix: Here is where you provide supporting documents like….resumes, credit history of owners, store layout; pictures of other stores, product descriptions and pictures.
We encourage every potential Hard Bean Coffee owner to take the time to carefully consider the investment in a coffee business and determine if the program offered by Hard Bean is a good fit for their personal, professional and financial goals. Thinking through and developing a great business plan is a good way to make sure your Coffee Shop venture will produce a fun and profitable business.