Coffee, a popular beverage worldwide, is a primary source of caffeine consumed by millions in different forms. Whether it’s hot long black or iced latte, coffee is like a fuel that gets people going. According to some study, a regular coffee drinker takes at least 3 cups of coffee a day.
After oil, coffee is the second largest commodity traded in the world. The coffee industry is now worth $100 billion.
Because of the growing demand for coffee, it only makes sense for entrepreneurs to venture into a coffee business. However, a solid business plan is necessary to greatly improve the chances for success.
Before you open your coffee business, have these 3 things in mind:
High Competition
The competition among coffee retailers is very high. There’s a growing number of independent coffee shops, so it would be quite a challenge to stand out and to attract regular and loyal clients. Besides serving the best and specialty coffees, come up with a good marketing plan or strategy.
Target Market
Knowing your target market allows you to determine which products are best to offer in your coffee shop. Your target market may include regular coffee drinkers, coffee shop lovers, and coffee bean buyers.
Fickle Customers
Ficke customers are those who change interests, tastes, and loyalties frequently. They are hard to connect with. To resolve this issue, you can sell personalized or specialty products based on who they are and what they want. You may also consider implementing a customer loyalty program which motivates your customers to continue purchasing your products. In return, they receive discounted or free products.
Bottomline
While opening a coffee business can be extremely profitable, you will encounter a number of problems like the 3 mentioned above. A well-thought business plan is your vehicle to reach your business objectives.
Also read: Top Trending Industries in Singapore
