Plan

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Plan a Coffee Shop Budget "When preparing to travel, lay out all of your clothes and all of your money. Then take half the clothes and twice the money." Susan Heller The alternate title for this guide is "top reasons that coffee businesses fail." Nowhere is this more true than with our #3 entry: be sure to have enough capital . Starting a new retail coffee business is neither easy nor inexpensive. As the old adage implies it does take money to make money. But how much is enough? You need to have a carefully planned coffee shop budget. According to the Small Business Administration, 50% of small businesses fail in the first three to five years. Studies show the top two reasons for failure are management inexperience and insufficient capital. As you plan a budget, it is reasonable to expect that your starting capital will total in the hundreds of thousands of dollars. Every business is different, so just how much will depend on you, your market and complexity of your plans. Unless you're opening a small location with a minimalist design, $50,000 is likely insufficient. $250,000 is a good minimum goal for suburban North America in 2015. Flashy cafes in prime urban locations can cost $1,000,000 or more to launch.
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