Producing a business plan is a clear way to demonstrate the seriousness and intent of your company. It maps out your commitment as a business owner and can be used as a benchmark to measure the success of your coffee shop.
There are many ways to create a coffee shop business plan, and we offer essential tips and areas of expertise to get you started.
Why You Need a Business Plan
Not only does a business plan show your dedication as a business owner, but it is also essential to keep your business on track for success.
A business plan is there for you to map out and explore all realistic possibilities, from the strengths to your competitor threats. Without one, it can be challenging to know if your business is succeeding.
A business plan provides a clear direction for your coffee shop as well as highlighting any challenges and competition in your path. With this information at your side, you can work out in advance what solutions you may need for any problems you may encounter, which will enhance your chances of success as a business owner.
How to Create Your Business Plan
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If you would like to learn more about the benefits of franchising when starting your own coffee shop business, take a look at our blog below where we explain how franchising works.
Understand Your Audience
Firstly, you need to know who your business plan is for. There are many reasons why you might create a business plan. For example, it might be to help establish how your coffee shop will function. However, knowing who your audience is will help you create an experience tailored to your customer to help ensure a busy and successful store.
If you need investors to start your coffee shop, you might be aiming your business plan to lenders or a bank. This is often a requirement for them to give you a loan. It will act as a form of persuasion to show that you know how to operate your business.
On the other hand, your coffee shop business plan may be used to attract new employees, especially for more senior roles such as managers and business partners. Without a business plan, there isn't any way to form an accurate judgement of your business from an external position.
Keep It Concise
Your business plan provides detailed information about your business, but overloading the document with too much detail that isn’t directly relevant can hinder the document.
Try to keep the information that is necessary to the reader at the forefront of the creation process. It is also essential that you avoid making it too lengthy and that you don't overcomplicate it, as this may distract from your business plan’s main objective, and will become overwhelming to read.
It needs to be a usable document that you can refer to, and others can easily understand.
Attach Supporting Documents Separately
Providing evidence to support your business plan can, and should, be included. Instead of having it in the text's main body, you can attach any information you may need as an appendix. These might include documents such as:
- Data from market research in evidence of your points
- Financial assumptions or forecasts
- Technical specifications
- Product literature
Make an Executive Summary
A key feature of a business plan is the executive summary. This stands as an independent document found at the start of the business plan. As the name suggests, it offers a brief overview of the entire business plan.
It will need to provide the reader with a clear reason behind creating the business plan and a summary of all the critical points involved. It is often regarded as the ‘first impression’ of your business plan and can go a long way in the final decision. Usually, if the executive summary impresses, the rest of the plan is read to confirm this decision.
The executive summary should be positioned at the start of your business plan. However, you will most likely create this section after you have completed the entire business plan. This is so you have all the facts and data to hand to create an impactful and accurate summary.
Stick to the Facts
An essential part of creating a business plan for your coffee shop is to ensure you have thoroughly researched your business and its competitors.
You want to provide a plan that is realistic and not over-optimistic. Over exaggerating your business’ potential is transparent and quickly detected. Evidence should support your goals, and this is why you may want to include it in the appendix.
Remember, the business plan is also for you to refer to, so you want to make the goals attainable to ensure it is used and is helpful to your business.
You will also need a section dedicated to risks and potential competitors to your coffee shop. An assessment of risks will need solutions to show you are prepared.
Check for Any Weak Areas
As you read through your coffee shop business plan, it is essential to try and read from the perspective of who you are showing it to.
- What weak areas will they highlight? How can you solve those issues?
- Is it a realistic plan based on actual facts? Are there areas that are over-emphasised that need reviewing? Do you have sufficient evidence for your aims?
- Ensure you have covered areas of risk and how you would find a solution.
Focus on Presentation
If you are presenting your business plan to a third party, a good presentation is crucial. However, you should maintain it even if the business plan is just for you because it needs to be accessible and easy to read.
You may want to consider including the following:
- A cover
- A contents page
- The executive summary
- Appendix with additional information to support your points
Always Ask For a Second Opinion
This is especially vital if you are showing your business plan to another professional for approval. Let your friends or advisers review it for their input, especially on areas that don't seem believable or might be too complicated to understand from an outside perspective.
If you are set on opening a coffee shop but want the advantages of franchising, why not discover more about the opportunities at Esquires Coffee? Click on the link below and find out how franchising could offer you the perfect foundation to start your own coffee shop business.
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