Food & Farm Businesses

Greetings! I’ve learned so much about your dreams and what you want to create with your businesses and I’m really inspired and hopeful about what I’ve seen. So many great ideas and such a wealth of talent in every corner of our state.

And when I hear those dreams what I’M REALLY PASSIONATE ABOUT IS making sure you get there. That you launch your business and you are ready for what comes next. That’s why we work so hard at the Village to get advice, research and insight into your hands quickly – as well as connect you to experts – BEFORE you launch that business.

Now if you’ve already launched and you’re running a business, we can still help. We just jump in at whatever stage you’re at. So as I reflect on all of you fine people and your efforts to bring a passion to reality, what strikes me the most is, “How can I help you “de-risk” your business?”

Chris Carr
Founder & CEO, Launch Mechanic, Village

Remember that word – “de-risk?” It comes up often in the world of investing. But basically what it means is to take steps to make a business decision LESS risky. In other words, de-risking your business means you’re more likely to succeed when you do launch.

So how do you do that? There are hundreds of steps you can take, and planning is everything. But the most important de-risking step you can make has to do with ensuring and optimizing income, and minimizing expenses.

In today’s blog we’ve researched some specific steps you can take to de-risk your coffee shop business. While we are focusing on coffee shops, you can take what you learn here and apply the principles to any business.

Good luck with your coffee shop business dreams, and let us know how else we can help. 🙂

All the best,

Chris

STEP 1

Know What the "Coffee Shop" Small Business Landscape Looks Like.

WANT TO KNOW HOW TO SURVIVE YOUR FIRST YEAR IN BUSINESS WITH YOUR FIRST SHOP?
If you’ve been dreaming about opening up your own coffee shop for years and you feel like this is your year, you’re not alone. But let’s be real.

As of 2022, there are 65,410 coffee shops in the United States. In the last five years, the US has seen a 2.4% growth in the number of coffee shops each year.

Having said that, in the first five years in business, more than half of independent coffee shops will close and 99% of small coffee shop closures have nothing to do with the quality of their coffee.

What’s the secret of the 1% that do survive? Side hustles. A Coffee-Shop-Side-Hustle is a way for your business to generate additional income that is outside — but related to – your existing stream of regular coffee shop income.

So this is your assignment BEFORE you launch your coffee shop. Whether it be catering or selling your in-house roasted beans online, how can you find alternative sales to keep your cafe alive in 2023?

Need some inspiration? Read on to Step 2!

Info sourced here.

STEP 2

Research What the Best Side Hustle Is

NEED SOME IDEAS FOR AN INCOME-GENERATING SIDE HUSTLE FOR YOUR COFFEE SHOP?
Check out this (edited by Chris) list of ideas to figure out what side hustle you can establish to keep your coffee shop thriving!

YOU MUST DO THIS ANYWAY: Know your P&L. What’s your biggest expense & how could this be reduced? What days/times are your busiest? Is there an opportunity to introduce a new product/sale item/discount to ramp up your quieter periods?
INCENTIVIZED CATERING: Offer businesses in the area free coffee every day if they use you as their office caterer.
REWARD YOUR CUSTOMERS: The more coffee you drink in a month, the lower the price gets. The price starts at $4 /coffee, but drops by $0.50 for each 20 coffees you consume in a rolling month. If you drink 40 coffees a month, they’re at $3.00. Drink 120 a month and they’re $1!
RENT YOUR KITCHEN OUT FOR OTHER FOOD ENTREPRENEURS, FOOD TRUCKS OR LOCAL RESTAURANTS: If you are closed during set hours a week, make that kitchen space work for you when you’re not using it!
OUT OF THE BOX! Offer dogsitting services in an adjacent space. Get your coffee, drop off your dog in the morning and pick them up at night!

Check out this longer list of ideas!

STEP 3

Need Some Startup Capital? Try Applying for a Grant.

VERIZON SMALL BUSINESS DIGITAL READY IS ON POINT HELPING SMALL BUSINESS OWNERS

$$ ALL SMALL BUSINESSES! Check out the latest grant opportunity with Verizon SBDR (Small Business Digital Ready) by signing up today! Grant opened March 1 and closes on May 12, 2023. Complete two courses and unlock your opportunity to apply!

Register Here

STEP 4

It's True. You Really Don't Know What You Don't Know.

HERE’S YOUR OPPORTUNITY TO LEARN AND BECOME AN EXPERT ON RUNNING AND GROWING A COFFEE SHOP BUSINESS.

Coffeeshopstartups.com I’m not necessarily recommending that you buy this training package from coffeeshopstartups.com, but I am recommending that you review what’s in the table of contents and course selections. Just thumb through all of the topics listed in the workshops and videos and you will quickly realize there is much to know and research BEFORE you make the leap! What stands out to you? Where are your knowledge gaps?
Crimsoncup.com It is so helpful to go into this new venture – opening your own shop – knowing fully what you are getting yourself into financially. Crimson Cup spills the beans here, identifying what the costs are of running a coffee shop.
Startupsavant.com One of the best ways to plan for success, is to understand how other successful shops made it. Here is an informative and inspirational article, “ 9 Innovative Coffee Startups to Watch”.

STEP 5

Produce Your Own Financial Statement

DO THIS NOW SO YOU KNOW EXACTLY WHAT YOU ARE UP FOR.

Live Event! April 3, 2023, 4-6PM: Ask the Expert. Step-by-Step Financial Projections

Have you been trying to get a grip on your business finances but just haven’t had the time? Here’s your chance to work with someone to get it done – for free!

Description: Many businesses take time to ramp up and become profitable, however if the economy doesn’t support that you basically have an expensive hobby. Understanding the financial position of your company is essential to your ability to grow, access capital, and your overall long-term success. In this “Ask the Expert” session, we will walk through our Financial Projections template, including Gross Margin and Profit and Loss calculations, to help you understand what all the numbers mean. We’ll cover financial management terminology and key indicators of business financial health.

Register Here

STEP 6

Resources for Business Help & Guidance

FEEL LIKE IT COULD HELP TO HAVE YOUR OWN PERSONAL COACH, ADVISOR OR ADDITIONAL TECHNICAL ASSISTANCE? HERE ARE SOME FREE RESOURCES…

Community Navigator Program
Contact us! We’re here at the Village and ready to help!
The Basics of SEO Optimization. Get Discovered! is a FREE beginner course that will help you unravel the mystery surrounding SEO and get a better sense of how it can help your small business. Learn how to:
- Evaluate and improve your website’s SEO
- Understand what organic traffic is and why/how to attract it to your site
- Create a website that search engines can find, index, and understand its content
- Develop “keywords” and “tags” for your website that can raise your website’s ranking.
- This course is “evergreen!” Take it anytime, anywhere, and at your pace.