Advice on Starting A Coffee Business

One of the main reasons for starting a business is to make money. If you want to make some real money with the coffee retail business, you must follow steps that will lead to that goal.

Location

This will be the most important factor in your success or lack of it. You may have the best coffee in the world, but if the prospective customers can’t see you, or your access is not convenient, your chances of success will be greatly reduced. Some espresso bars gross $2000-$3000 a day, 70% of this revenue coming from espresso-based drinks, and the owners of these establishments put in their pocket (or purse) about $25,000 a month in profits!

If you have an excellent location, and assuming that you do everything right, you can expect to gross anywhere from $20,000-$30,000 in your second month of operation and end up the first full year with over $500,000 and reach over one million on your third year. Assuming that your rent is $3000-$8000 per month, this should leave you with 30%-40% of your sales after the break-even point. Therefore, if your rent is $3000 and you gross $20,000 your break-even point will be approximately $12,000 and your earnings about $3000-4000 from the $20,000. You can figure how much you will make from $500,000 a year or more.

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