# New business advice please :)



## AdamAngel (Oct 24, 2016)

Hi Guys

I will try and keep this short and sweet but I need some advice. For the past 3 years, my wife and I have saved and saved and researched as much as we can. We have been actively looking for a shop for the past year and finally we are in discussions. I have run a business (not coffee industry) for 12 years. I started this from nothing to a big brand with great profits. My wife is a teacher and works very hard. I am not one with qualifications in an academic fashion, however I am very pro-active, hard working, focused and more. We have been to seminars, coffee shows/exhibitions, sourced all suppliers, fittings etc etc so in many ways, we are good to go!

The location we have found is within a new development of 300 homes and only 4 retail shops being built to service the community. There are no other coffee shops or cafe's around which is great. The demographic is working middle class, mainly made up of scientists, doctors and young families. The average age is 35 with an approx 8000 residents. The shop will be a brand new shop in a brand new community. We plan to set the shop up like most other creative and diverse coffee houses with all the regular artisan coffee, music nights, breads, cakes etc...only an A license, we do not want to cook, only prepare and serve.

I have also done some experience in a coffee shop to learn about table service, stock take, coffee making etc but I guess I am worried about the success of the business. It goes without saying, we will provide a great service and product with a smile, this will be a nice big lifestyle change for us. We are aware of the hours needed to establish the brand and we are not afraid of the hard work.

After calculating the stock costs, fixed costs and staff, I find it hard to guestimate how many transactions I can expect per day. I appreciate that each shop is different depending on location, trade/flow/competition but being in this location I think we stand a great chance to have a healthy amount of daily transactions. There are also 2 schools just opened (primary and secondary) as well as a huge business park build next to the town to accommodate the residents.

Any advice based on your view and experience will be greatly appreciated.

Thank you guys.

Ad.


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## BertVanGoo (Nov 20, 2015)

Hi Ad,

I can't add much in terms of running a coffee shop, as yet to do that, but at the moment I'm going through the same thing. I've worked backwards and seen what all my overheads and costs will be and then seen how many sales a day I will need to make to break even.

I have and will again do a footfall count of how many people walk by and going to ask around the area to see if there is actually a need. I've already spoken to an estate agent and a couple of people I know live by it. The estate agaent thinks it's crying out for a place, and it's generally been news I've wanted to hear bar one lady who works with my mum, that was a little negative.

Again, it's not a great deal of information, but there are some others on here who are great with their advice so hopefully they may be able to add to this?


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## AdamAngel (Oct 24, 2016)

Hi Bert

Thanks for even taking the time in adding to the thread mate. Sound just like me, I have done the exact same, I have even asked staff at my local coffee house which is in the exact same geographic as the shop I am going for. I guess there is that element of risk and that wall you hit when all the research has been done and looking good but you just need to go for it! Where are you thinking of opening?

Like you, we have sourced everything, and I mean everything. All we need to do is sign a lease, order and incorp the company. This has been going on for 3 years passively and 1.5 years actively. Finally we have £30k saved with some extra we can tap into should we need. We currently work and have savings for starting capital so this entire move is our risk financially and we wont need to borrow.


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## Glenn (Jun 14, 2008)

Hi Adam

I'd advocate getting proper advice from a specialist coffee consultant (and can put you in touch with a couple depending on location)

This would be money well spent and better than the collective advice of a forum.

PM me with the details and I will reply fairly swiftly.


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## jamster (Feb 6, 2014)

A practical tip: see if you can identify a coffee shop of broadly similar characteristics somewhere else in the country. It may take a bit of Googling but shouldn't be impossible. Find the owners and ask some cheeky questions. Most people are more helpful than you think. Failing that, sit outside it for a day and count the customers.


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## jamster (Feb 6, 2014)

I do agree with Glen though - professional advice can make the difference between a rocky start and a steady start.


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## AdamAngel (Oct 24, 2016)

Hi mate

I sent you a PM last week, please can you check and get back to me?

Thanks.


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## Tewdric (Apr 20, 2014)

Sounds like an ideal place for a family friendly shop. Don't underestimate the parents-of young-kids destination and meet-up venue potential.

It might go against the grain but a play area might help. If parents to of pre school kids are made welcome and given a small, fenced, safe soft play area where the toddlers can be left while they sit around and chat you might be on to a way of filling the middle of the day voids.

Super quick to-go cups and instant lush breakfast snacks for commuters to take with them in their cars have to be worth looking at too. Seen how long the queues are for the Golden Arches drive they at 7.30 in the morning?


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## jable1066 (May 6, 2015)

I would concur that getting some professional advice would certainly go a long way as there'd undoubtedly be things you've not thought of! As would a contingency fund for the eventuality that things may go a bit pear shaped to begin.

That being said, I think the danger of having a large contingency would be that you may get emotionally invested and may not know when to tow the line and say enough is enough. Have a clear and realistic plan for the worst case scenario and stick to it. Estate agents will say anything to close a deal so take what they say with a pinch of salt.

I take it you've negotiated rent etc. with the landlord? It'd be worth seeing if you can get a rental break if you're potentially going to add value to his/her property.

Like has been mentioned, I'd calculate all costs and then leave a margin of error - probably can't go wrong saying +/- 10%. From there, work out how much it costs to open your doors on a daily basis. Then it's a case of gauging whether or not you think you can make that, which is where market research and visiting similar shops will come into play. Work out how much you need to live and base your wage off this. There will no doubt be a compromise and you will put way more work in than what can be realised in monetary terms, but it's worth paying a wage that makes life bearable!

Me and my partner did a hell of a lot of research, talking through the finances and even putting an offer on a cafe. However, we reasoned that whilst it may have been financially viable, we weren't leaving ourselves with a lot of wiggle room if things went wrong. We'd be investing a huge amount of capital for potentially 70 hour work weeks, stress and minimum wage. We decided to pull out in the end and stick with mobile coffee/catering for the time being and put our money elsewhere.

I wish you well in your adventure, and I am a tad enviable!

JB


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