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.