Who Do I Share My Business Plan With?<\/strong><\/p>\nBecause a business plan is exactly what it sounds like \u2013 the plan for your business \u2013 you need to take special care to keep it private.<\/p>\n
You do not want just anyone to know how you intend to make money and make yourself unique in the market. If a competitor were to find it, they could steal your ideas and make them a reality in their own shops before you even have yours started. Obviously, this is not what you want.<\/p>\n
Keep the sharing of your business plan limited to those employed in your company, including your lawyer and accountant.<\/p>\n
You may also decide to share it with your family. It may be easier for them to support you on your new journey if they see that you have put some time and energy into mapping out your path.<\/p>\n
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Step Four: Make it Legal<\/strong><\/p>\nThis part of the process can be scary for some entrepreneurs. Legalese can be seen as complicated, intimidating, and even threatening to some who are getting started.<\/p>\n
Do not let the fact that you do not know all of the answers right this second stop you from taking action on the steps you do understand and seeking out the answers to the next piece you need.<\/p>\n
Decide on a Business Structure<\/strong><\/p>\nYour coffee shop, just like any business, will need an official business structure for you to get started. This structure affects finances and operation. The best thing you can do if you are uncertain about what structure to apply for is to consult professionals who can guide you along your way. In this case, you might seek out a business mentor, lawyer, and\/or an accountant.<\/p>\n
Sole Proprietorship<\/em><\/p>\nSole Proprietorship is the default of any single person exchanging a product or service for money. This structure is particularly well-suited for someone who is just starting out, but it is the least protective of all structures.<\/p>\n
Limited Partnership<\/em><\/p>\nLimited Partnerships are for businesses with multiple owners who are keeping a simple structure. Only one partner has unlimited liability while the others have limited liability and control.<\/p>\n
Limited Liability Partnership<\/em><\/p>\nLimited Liability Partnerships are for businesses with multiple owners who opt for a slightly more complex structure. Limited liability is offered to all owners.<\/p>\n
Limited Liability Company<\/em><\/p>\nA Limited Liability Company structure is especially protective of its owners \u2013 as long as all rules are followed. It also does not require members to pay corporate tax, although they do need to pay self-employment tax.<\/p>\n
Corporation<\/em><\/p>\nThere are multiple different corporation structures (C Corp, S Corp, B Corp, Close Corporation, Nonprofit Corporation). Corporations can raise money through stock and in some cases are actually taxed twice. Talk with an accountant about the various types of corporations and whether or not one of them is right for your coffee shop.<\/p>\n
Cooperative<\/em><\/p>\nCooperatives often have some sort of board of directors where leaders can vote on the direction of the company. Monies generated through cooperatives are given to the user-owners.<\/p>\n
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Register Everywhere! <\/strong><\/p>\nThere are multiple ways you need to register your business before you can get started. This may seem overwhelming, but take a deep breath and plow through it because you will be done with your set up and running your business in no time.<\/p>\n
Register with Your State<\/em><\/p>\nYou will need to register your coffee shop with your state. This is typically a simple task to complete. You may need to file several documents, depending on your state. Some states require what is called an Operating Agreement to be signed before you get started, but not all states demand this.<\/p>\n
Register with Your County<\/em><\/p>\nDepending on your city or township, you may need additional local permits to operate your business. As a coffee shop, it is highly likely that your local authorities will want you to register in some way.<\/p>\n
Register for a Federal Tax ID Number<\/em><\/p>\nUnless you are operating as a sole proprietor, you will likely need an Employer Identification Number to file taxes and set up your bank account (coming up next!). This is an easy application done on the IRS\u2019s website.<\/p>\n
Setting Up a Separate Bank Account<\/strong><\/p>\nIf you did not need an operating agreement to register your business with your state, you will more than likely need one now. It is important to keep your business financially separate from your personal finances so that you do not become personally liable in case you ever find yourself in legal business misfortune.<\/p>\n
Step Five: Establish Funding<\/strong><\/p>\nOnce you know how much money you need to get started, you need to decide how you will come up with it. Coffee shops can range in size and financial need, so there is no right or wrong answer surrounding whether you need funding or how to best get it.<\/p>\n
Borrow it!<\/em><\/p>\nBorrowing money from a lender is a perfectly reasonable solution to your need for money. Pay attention to how much interest potential lenders are asking for and whether the amount is worth it to you or not.<\/p>\n
You may also need to actually apply for loans, so be sure to give yourself extra time in case lenders need to review your application, references, or finances.<\/p>\n
Ask for it!<\/em><\/p>\nSometimes, people believe in a product or service so much that they are willing to fund it in exchange for a percentage of equity of the business itself. These people are investors; they are investing their money into you and your idea.<\/p>\n
Different investors will want different returns on their investment, so make sure you are crystal clear on the exact terms of your agreement before you sign anything.<\/p>\n
Apply for it!<\/em><\/p>\nYes, you can actually apply<\/em> for free money \u2013 what a world we live in! Certain businesses may be qualified for what is called a grant. There are various different types of grants out there \u2013 governmental grants, state grants, and sometimes even local communities will offer grants to businesses. Check out grants.gov if you are looking for federal grants and ask your local authorities for more information about state or local grants.<\/p>\nEarn it!<\/em><\/p>\nWhile some business owners are financially able to give all of their time, effort, and money to a business without expecting any immediate return, that is certainly not the case for everyone.<\/p>\n
Many entrepreneurs start their business endeavors while working another part-time or full-time job. While it may be difficult for you to work while you try to operate a coffee shop, if you do not have any other options, this may be a requirement for your dreams to become reality.<\/p>\n
Alternatively, you may need to have a conversation with your family about whether or not they can support you while you invest yourself in the startup phase of your business. If they can carry your weight for a little while, you may end up being able to carry theirs in the future.<\/p>\n
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Step Six: Build Your Inner-Circle<\/strong><\/p>\nSetting up the right support system is a fantastic move to make when starting any business. Your coffee shop will need professionals to guide you as well as people who believe in it to encourage you.<\/p>\n
Attorney<\/em><\/p>\nFind a lawyer you work well with. This person can walk you through starting up your coffee shop and also assist you if you run into any trouble once you have started out.<\/p>\n
This may be an expensive investment, but just think about all of the money in legal fees you will be saving by setting your business up the right way.<\/p>\n
Tax Professional<\/em><\/p>\nWith everything else you will need to figure out and do in the startup phase of your business, it is truly in your best interest to hire a credible accountant.<\/p>\n
This person can help keep track of taxes and finances so that you do not need to be quite so stressed. Make sure to hire an accountant who you are comfortable asking questions of. You may not understand some of what they do along the way and you will want to work with someone who is willing to teach you as you dive into this new endeavor.<\/p>\n
The Backbone of Your Team<\/strong><\/p>\nBoard of Directors<\/em><\/p>\nYou may or may not need a board according to your business structure, but the idea is valuable even if it is not required. Having a solid group of people backing your company who have various experiences, expertise, and perspectives can only help your business be pushed to the next level.<\/p>\n
Guides<\/em><\/p>\nIf you are not interested in a formal board of directors, you would likely still find value in having a few specific guides who can offer their support to you along your journey.<\/p>\n
As with the board, make sure your guides offer you a vast range of perspective and expertise. If you only receive guidance from people who think like you, the only person you will be hurting is yourself.<\/p>\n
The True Inner-Circle<\/strong><\/p>\nCo-workers<\/em><\/p>\nThe true inner-circle of your inner-circle is going to be the people you work with. As a coffee shop owner, there may be times when they are the only people your customers see or deal with. You need to be particular with who you hire as employees even from the very beginning.<\/p>\n
Customers<\/em><\/p>\nYes, your customers are certainly part of your true inner-circle. In fact, you would not exist without them!<\/p>\n
Keeping your customers always at the forefront of your mind is a great way to remember that your business exists to serve them. <\/em>If you were only making coffee you like to drink or decorating with decorations you want to see, others might not be so interested in coming to your establishment.<\/p>\nInstead, always focus on the customers and their needs and desires. Do as much as you can to constantly serve them and you will be well on your way to owning a successful coffee shop.<\/p>\n
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Step Seven: Go Above and Beyond<\/strong><\/p>\nSpeaking of serving your customers, do not ever stop at only giving them what they ask for.<\/p>\n
Instead, try to consistently provide more <\/em>than what they ask for. Try to envision what they might need before they ask or even before they personally know.<\/p>\nThere are many ways to provide extraordinary service as a coffee shop:<\/p>\n
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\n- Give customers as much time as they require \u2013 some days there may be more questions than others<\/li>\n
- Offer free samples to customers who are not sure what to order<\/li>\n
- Teach your customers about coffee when they visit your business<\/li>\n
- Give large quantities (and often!)<\/li>\n
- Remember as many names and orders as possible<\/li>\n
- Work whatever hours they are most interested in having a coffee shop open for<\/li>\n
- Use your down time to clean up tables or clean equipment<\/li>\n
- Compliment your guests \u2013 they will remember it!<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
While this is not the marketing section of our article, it is worth noting that providing this kind of service is really the best marketing that you can do.<\/p>\n
This type of marketing is personal, meaningful, and <\/em>it is tough work! However, it will truly make all of the difference for your business. Once the word gets out that your coffee shop is not just \u201cgood,\u201d but \u201cthe best coffee shop they have ever been to,\u201d customers will be flocking to see what you are all about!<\/p>\nStep Eight: Market Yourself Constantly<\/strong><\/p>\nHopefully you are not too tired out from all of the work of serving you need to do for step seven, because step eight is just as important.<\/p>\n
If you are finding yourself already operating at max capacity, this might be a good time for you to hire some help. It might just be the most valuable decision you can make for your business to have an employee solely focused on marketing your coffee shop.<\/p>\n
Give, Give, Give<\/em><\/p>\nWhile we were already fairly clear that serving constantly is the best form of marketing, it is worth repeating in the official marketing section.<\/p>\n
Even your online and offline marketing can provide some sort of value. The worst thing you can do is use all of your marketing energy and money to tell people to come to your shop. This does not give them anything\u2026 <\/em>in fact, it asks<\/em> something of them.<\/p>\nInstead, give to them \u2013 even in your marketing! Teach them something, tell them a heart-warming story about your business beginnings, make them laugh with something funny that happened at the store that day, share an incredible offer, contest, or discount.<\/p>\n
Give to your people constantly and eventually, (though not all at once!) they will give back to you too.<\/p>\n
Traditional Marketing<\/strong><\/p>\nWhen people think of marketing, they typically think about knocking on doors, hanging up signs, buying local commercials, and sending mail to everyone in the area.<\/p>\n
These tactics all have value and should not be discounted just because we have many more avenues to market to potential customers these days.<\/p>\n
What might be helpful, to make sure you are efficient with your time and energy, would be to ask a few of your target customers where they are most likely to see and\/or receive an advertisement. If all of your target customers watch local tv, commercials might be your best bet. If none of them watch tv, but they all get ice cream at a particular ice cream shop, it might be better to invest in some higher quality flyers or posters to place there.<\/p>\n
Digital Marketing<\/strong><\/p>\nThe internet is a wonderful place for you to continue to provide value.<\/p>\n
While you can and should give of yourself to your customers when they are in your coffee shop, giving of yourself to potential customers online widens your reach exponentially.<\/p>\n
This can be accomplished through many ways. Some restaurant and shop owners find it easiest to teach their customers something of value either through a written blog post or a recorded video.<\/p>\n
It can be frustrating to get a decent reach but not have your local sales increase. If you find your digital presence is picking up steam, consider selling to your online followers in some way. This could be a product delivered or a course downloaded.<\/p>\n
There is nothing wrong will making sales online as long as you continue to serve your local community well. In fact, the more streams of income you have into your coffee shop, the better!<\/p>\n
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No More Steps \u2013 Just Action<\/strong><\/p>\nOne of the most important steps for any potential coffee shop owner is actually to stop reading about the steps to get started and finally take action. Don\u2019t get us wrong \u2013 we are thrilled you read through our steps for starting your coffee shop in the best way possible.<\/p>\n
However, this is the most important section out of everything you read.<\/p>\n
Now is the part where you need to get started. Whether you do so with complete confidence or fumbling along the way, just take one step forward. It may not always feel like the most graceful experience, but if it is necessary to make your coffee shop dreams turn into reality, then it is certainly one that is worth it.<\/p>\n\n\n