Coffee is an ever growing business. Around 65% of office workers drink an average of three cups per day, and many of us just aren’t productive without it. It means that there’s lots of café which are booming, but there are also lots of coffee shops for sale for those who are looking to jump on the coffee bandwagon and carve out their own little slice of the market.
Location, location, location
The important thing when starting a business which relies largely on walk in trade is that you’re based somewhere with a high level of footfall so that the potential for trade exists in the first place. Many coffee shops for sale are in areas where they wouldn’t be viable businesses, and there has previously been a failed café in that location. Do your research and get to know the areas you’re looking at. You don’t want to be too close to your competition, but equally if you’re stuck in the middle of nowhere you probably won’t get any clients at all.
Small towns can often be a better bet than people realise, as the chance of competition is significantly reduced. Trade might be slower, but if you’re the only vendor for miles around and you offer a great service then word of mouth will very much be your friend.
While you might have a significant budget to get set up, this will often go down a lot more quickly than you would have liked. Remember that not only will you need to cover your mortgage or rent, you’ll also have bills, equipment to buy, stock to fill your shelves and employment costs. Budget very carefully and don’t blow everything on good looking coffee shops for sale without thinking about the other areas where you’ll need to spend to get it up to scratch.
Is this the industry for you?
Finally, if you’re looking for coffee shops for sale as a first business venture, you should give some serious thought about whether it is the right type of business for you. It tends to be quite a hands on role, and you’ll significantly reduce costs if you’re not only the owner but also a full time employee of the business.
Do you know much about the coffee trade? Are you prepared to work hard? Think about how much work goes into being an employee and remember that you’ll have all that to think about on top of the stresses of being a business owner.