# Business advice needed please



## Braysea (Oct 14, 2008)

Hi there,

After debating for a while about setting up a coffee shop, and assessing my risks...mainly the huge financial investment, I am possibly on the verge on taking the plunge next week!! However, rather than going all the way and signing a lease on a premises, I've come across an opportunity which i hope will be a great one, and a great way for me to test the water. A very short term lease has become available in several units, based in a central location in my local city, and my vision is to set up a coffee kiosk there, for the christmas months (October until the end of January). Is this insane?

I'm a trained barista and passionate about coffee. I've been a manager of a v.busy cafe for someone else for 4 and a half years, and have dreamt of my own place all that time. Where i currenlty work is well known for good coffee, but it is not the cafes' primary focus. In the city that i'm hoping to set up in, the usual chains are all that is on offer, basically NO decent coffee. I aim to bring 'Flat whites' and the fanatstic quality that are everywhere in NZ and Australia. I'm confident in my ability to manage and produce pretty decent coffee, but would like some advice from anyone about if this is a wise business move.

The way i see it, its an opportunity to test the market and to get a reputation whilst hopefully looking for a more permanent premises. I'm not likely to make much money at all in that time, but initial costs and overheads won't be nearly as drastic as setting up in a shop. I kind of like the idea of working from scratch and building my way up, start with just me and my machine!! I may decide at the end of it that running my own business is not for me (but I think this is unlikely) but at least i will have given it a go without losing too much.

I'm viewing several of the units that are available tommorow, and if i like them, then its decision time....hand in my notice of my well paid, secure long-term job and follow the dream....its daunting (but exciting).

Frank and honest advice needed please, i need a reality check! I believe in it, but want to assess the risks first.

Many thanks for reading this,

Charlie


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## Hugo (Aug 3, 2008)

IMO...

It all hinges on the location and price you're considering signing on. Nearly every cafe on the market is a failed business in one way or another, the majority overpriced or badly located or both.

Either it's a good location asking a price and rent that can work, in which case get on with it.

Or it's not, in which case don't sign under any circumstances.

Opening a kiosk instead is unlikely to prove anything relevant to a different location and different product and may eat into your finances if it doesn't work.

It's going to be scary and you're sounding defeatest. Not a good mix.


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## LeeWardle (Nov 16, 2008)

I take it that you have savings etc to rely on for living expexpenses/personal bills (Mortgage etc) becasue you won't clearmuch profit to start with.

As Hugo says location & price of the lease are the main factors to think about along with rates.

God luck, and let us know how you get on.

Lee


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## sandykt (Dec 3, 2009)

Good luck, I hope it goes well for you.


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## Edd (Jul 7, 2010)

Hows things progressing?


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