Startup fairytale or horror stories!

[jrojas576]

I have seen a lot of startup planning on the forums (including myself) and have seen a lot of lack of knowledge primarily in the finance section. People (including myself again) thinking they can open a coffee shop or espresso bar with an unrealistic budget say $20k.



Maybe some members would like to share their startup story either good or bad to give everyone else a realistic picture of how difficult it is (which I see quite well now and tip my hat while on my knees to those who have been both successful and unsuccessful to go through such a journey).



My new plan for a very small shop is at $40k so far and growing……. Rapidly unfortunately. But I am getting my stuff together and I’ll be able to pull through within 18 months to have doors open if all goes well (which you all know, the road isn’t flat).

Sorry for the tacky title haha

 

[CoffeeJunky]

http://www.coffeeforums.com/forum/c...rs-cafes/13202-open-coffee-shop-need-adv.html

 

[chast]

I have know quite a few startups that opened on 20K-30K and have grown

 

[jrojas576]

Can you share any of their stories with us? Im sure a lot of us including myself would benefit from this.

 

[CoffeeJunky]

I have know quite a few startups that opened on 20K-30K and have grown

Its not impossible if you know what you are doing but chances are very slim or take very long time to be successful.

I have a friend who started his business with used coffee cart for 6500. Remember this is different from mobile coffee shop. And he put this in his trailer. He actually did many events. Any events he can find without having to play much or only participated in revenue share type of arrangement. He made few hundred dollars per event to few grand. This takes tons of planning and many hours of calling and setting up.

He did that for about 2 years and ended up having enough to open a permanent location.

There are people who bought failling coffee shop for dirt cheap and made it to work but that also took many many hours of marketing which includes community event participation, school fund raising event, hosting events and doing many breakfast catering.
Yes... it is possible you can have a coffee shop for 20-40k but you will work like a dog, and you will spend many many sleepless days and nights. I have been there and done that. NOT FUN or do I recommend.

 

[chast]

to be successful hard work, long hours, good location, positive attitude and great products you will succeed. Even if you had a free and clear 200K to invest does not mean you will be successful. An established bakery for more than 20 years moved to a new location and added a cafe to the existing business, dropped just under 200K, 7 month build out and permit waiting. Folded in one year.

Many businesses started in garages and on the kitchen table with less than 500.00 and have grown into money making businesses. Facebook is a good example JMO

 

[slurp]

to be successful hard work, long hours, good location, positive attitude and great products you will succeed.JMO

Bingo, no matter how much money you spend you need the above!!!!!

I can tell you construction and permitting ALWAYS takes longer than planned.

 

[CoffeeJunky]

Bingo, no matter how much money you spend you need the above!!!!!

I can tell you construction and permitting ALWAYS takes longer than planned.

Everything takes longer then planned.

 

[John P]

Here's my reality.

I worked in finance for about four years, was too boring for me, left and delivered pizza for nearly 10 years before my wife (whom I married 7 years into my delivery gig) and I opened our shop. She was finishing college and about to go to graduate school for education.

So in 2001, just a few short months after getting married, we attended classes through the Small Business Development Center at our local Community College, and formed our corporation. Over the next three years, we started by frequenting local shops and taking notes. We both worked, and made sound investments. We traveled to the best shops in the pacific northwest, while attending the CoffeeFest trade show in Seattle for a couple of years in a row and taking as many classes as possible. In addition we looked at coffee shops overseas for design ideas, and contacted a lease consultant and started looking for spaces.

During the 18 months and 3 sets of negotiations on different properties until we found the right location, space, and lease for our business, we spent $1500 on a Mazzer Mini and a small, prosumer espresso machine and tested dozens of different and espressos from various roasters throughout the country. When we got to our top ten, we did all blind testing, took notes, scored, tested again, and picked our roaster and espresso. We scoured Ebay, and local restaurant supply shops for wares and equipment. We saved thousands of dollars by finding cases of great ceramics. We bought our ice maker, espresso machine, and refrigeration equipment new, as we didn't want to guess on how good it was. My wife negotiated deals with overseas companies for all our our tea supplies as well as printing for our cups. It was a busy time.

We traveled and met with our roaster, our machine manufacturer, and continued to hone our skills. We signed our lease at the beginning of 2004, hired a contractor to do our build out, both left our current jobs a few months after that, and (roughly) some $100K (from savings and an equity line of credit on our house), we opened that summer. It's been over ten years now, and we are proud of our accomplishments.

A word to the wise, unless you have an awesome and extremely supportive wife like I do, don't open a small business. Both of you have to be all in or it will be a dangerous undertaking.