Opening a cafe is easy. Just like any other business, you need some capital to invest and in no time, you’ll be the proud owner of your dream cafe. The real challenge is to be able to run it successfully in order to generate profits every month. This is where the majority of people fail.
So, before starting a cafe, you should think hard about why you want to open the business.
If it’s to make a profit, you may be wise to consider what you’d do if you don’t manage to hit the projected sales target and/or your operating expenses end up being higher than budgeted. In other words, if there are no or very little profits to be made, would you still want to open the cafe?
If your reason stems from your passion and ability to make great coffee, cakes and other menu items, then you should proceed to the first point and think about whether you can make a profit from the business.
Unless you want to lose money and eventually have to close down the cafe, it’s advisable to reflect upon the real reasons of why you want to enter the cafe business. The answers will help to shape your business plan where you can then assess whether the whole venture is viable.
One way of doing this is to have two lists. The first one can be as long as possible, where you just write down all the reasons that come into your head. The second list should summarize the first list into your top 3 most important reasons for wanting to open a cafe business. If possible, try to zoom in until you have the Number 1 reason.
Although the reasons may evolve over time, this exercise is useful as it forces a new entrepreneur to really think about the business and all the pros and cons of starting it.
hi! I just discovered this site. It has been my dream to open a cafe and this year, I’m really hoping I can finally make it a reality. I’m going to read through all the articles here to learn more and to prepare myself. Thank you so much.
Good luck with your new cafe timm.
I want to start a cafe to make a living by doing what i know best, which is baking homemade cakes, pies and almost anything that comes out of the oven. A friend mentioned that i should really be focused on making money, but that’s not my primary concern.
Should money be the top priority when starting up a cafe?
Good question MrsBecky. A lot of new cafe owners come across this issue.
You may be starting a cafe to let customers taste your delicious treats but do bear in mind that you’re also starting a business by opening the cafe, and the objective of all businesses is to make money. Even if it’s not your main aim initially, you should set your sights on it as your cafe may not survive if you’re unable to pay the bills.