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Starting a Coffee Shop – How Much Does It Cost?

Do you want to know exactly how much it cost to start a coffee shop business? If YES, here is a detailed cost analysis for starting a coffee shop and raising finance.

Having provided you with a:

  1. Coffee Shop Industry Overview
  2. Market Research and Feasibility
  3. Coffee Shop Business Plan
  4. Coffee Shop Marketing Plan
  5. Coffee Shop Name ideas
  6. Coffee Shop Licenses and Permits
  7. Cost of Starting a Coffee Shop
  8. Coffee Shop Marketing ideas

We will consider how much it cost to start a coffee shop business from scratch including the operating costs.

How Much Does It Cost to Start a Coffee Shop Business?

When it comes to starting a coffee shop business, loads of factors influences the amount that will be required to successful launch the business. Factors like the location you intend starting the business, the type of coffee house you want to open, the size of the coffee house you want to open, and of course the state of the economy as at when you intend starting the business.

No matter where you intend starting your coffee shop business, you would be required to fulfill most of the items listed below;

  • The Total Fee for Registering the Business – $750.
  • Legal expenses for obtaining licenses and permits as well as the accounting services totaling – $1,300.
  • Marketing promotion expenses for the grand opening of your coffee house in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • Cost for hiring Consultant – $2,500.
  • Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of – $52,800.
  • Cost for Shop remodeling – $10,000.
  • Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
  • The cost for Start-up inventory – $16,027
  • Coffee beans (12 regular brands and five decaffeinated brands) – $6,000
  • Coffee filters, baked goods, salads, sandwiches, tea, beverages, etc. – $7,900
  • Retail supplies (napkins, coffee bags, cleaning, etc.) – $1,840
  • The cost for office supplies (one month) – $287
  • The cost for Espresso machine – $6,000
  • The cost for Coffee maker – $900
  • The cost for Coffee grinder – $200
  • Food service equipment (microwave, toasters, dishwasher, refrigerator, blender, etc.) – $18,000
  • Storage hardware (bins, utensil rack, shelves, food case) – $3,720
  • The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
  • Cost for serving area equipment (plates, glasses, flatware) – $3,000
  • Cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • Office equipment and furniture – $3,600
  • The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
  • The cost of Launching a Website – $600
  • The cost for our opening party – $5,000
  • Additional Expenditure (Business cards, Signage, Adverts and Promotions et al): $5,000

Going by the report from the market research and feasibility studies, you would need an estimate of about $140,000 to successfully set up a small scale coffee bar business in the United States of America. The amount includes the salary of all employees and the CEO (Owner) for 3 months.

If you want to start a medium scale coffee shop in the United States of America, you would need nothing less than a million dollars. And if your intention is to start a large scale coffee house in the United States of America, then you should look towards generating over 2 million dollars as your start – up capital.

Financing Your Coffee Shop Business

It is often said that money is the blood of any business. No doubt raising start – up capital is perhaps one of the major concerns for entrepreneurs; it can be challenging raising capital to launch a business idea. Your idea must be workable and promising for you to secure finance from financial institutions or from angel investors.

The first thing to put in place before sourcing for start – up capital for your business is to draft a detailed business plan. With a good business plan, you can easily convince investors to invest in your business. The truth is that no bank can give you a loan if you don’t have a good and workable business plan. Besides, investors will not take you seriously if you don’t have a business plan on ground before launching out to source for start – up capital.

There are several options when it comes to raising money to finance a start – up business. Some of the options are;

  • Raising money from personal savings and sale of personal stocks
  • Raising money from investors and business partners
  • Applying for loan from bank
  • Pitching your business idea and applying for business grants and seed funding from donor organizations and angel investors
  • Sourcing for soft loans from family members and friends.
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