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OCM (OnCoffeeMakers.com) was started in 2007 with the first webpage about coffee machines. And for a number of years, we focused on helping people find their desired coffee machine (we still are helping folks with that! So, if you are looking for coffee machines for office or restaurants - check out the link). 

In 2010, we started getting enquiries on restaurant marketing and we start to help food and beverage brands with their marketing. Below are campaigns and events that we have done over the years: 

OCM's campaigns: F&B Marketing Ideas by OCM 

OCM's Events: F&B Industry events by or with OCM

Check out this restaurant marketing guide to learn more about the many campaigns and companies we have worked with. 

Since then, we have also created many marketing workshops and classes for the F&B industry . Many of these modules are still running in tertiary institutions such as Temasek Polytechnic Skillsfuture Academy and also ITE College East COC classes, below are some snippets of our lectures and workshops: 

OCM’s F&B workshops: Food and Beverage Marketing Lectures | Workshops - click to watch classes on customer journey map, JTBD and more. 

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For insights into the coffee (F&B) industry: OCM LinkedIN 

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A guide on how to start a small coffee shop in the philippines news.

For most coffee enthusiasts, starting their own coffee shop is a lifelong goal. Dreaming of running a coffee shop is one thing, but turning it into a reality requires much effort—and money. Fortunately, there are thrifty ways to open a cafe with a low budget in the Philippines. All you need is dedication and the willingness to achieve your dreams.

In this article, we'll show you how to start a small coffee shop and make your café dreams a reality!

How to Open a Café with a Low Budget in the Philippines

1. prepare a business plan..

Before you start operating a coffee shop or any other business, you must have a well-thought plan. Business plans are essential so that you have a guide to help you stay on track with your goals for sales and other operational milestones.

Your coffee shop business plan should include goals, ideas, sales and marketing plans, and a forecast of how your business will do. Besides these, your plan should also identify your business structure. Are you going to be the sole owner? Or will you have partners in opening your small coffee shop? Such specifics are the bedrock of your company's future success, so you shouldn't ignore them. These can assist in measuring and managing your primary areas of concentration and determining whether or not your company is making a profit.

2. Choose the type of coffee shop you want to launch.

Next, you need to figure out the type of coffee you want to build. For a startup café, consider pop-up or mobile coffee shops.

A pop-up coffee shop is one of the most versatile and inexpensive to launch. This type of low-budget coffee shop doesn’t operate in a fixed location. For the site, anywhere with lots of foot traffic (fairs, festivals, train and bus stations, etc.) is a workable area. Mobile coffee shops are an excellent way for entrepreneurs to test the waters in the coffee industry. This way, you can find out if people are interested in what your coffee shop has to offer and decide if you want to open in a permanent location.

You may also consider a small fixed location for your coffee shop. Renting a place is one thing, but for a more cost-effective choice, start with building a stall in front of your house. Some new small coffee shops are built in the owners' front yards because they typically only require a small amount of space (a brewing station and a place for customers to sit and chat). By doing this, you can cut back on rent and other recurring expenses.

3. Find a suitable location for your small coffee shop.

Location is everything when you’re opening up a business. Carefully decide where you want to open your small coffee shop so that you can choose the best location to attract customers. As we’ve mentioned, you can cut back on some expenses if you build your café within your residential area. If it's not possible, look for rental spaces in areas with lots of foot traffic. You'll gain customers as long as there are people in the vicinity.

4. Decide on a coffee shop theme.

While it’s not necessary, themed coffee shops have grown in popularity in recent years. Using a theme, you can easily create a brand and image for your coffee shop, especially if your theme is unique and eye-catching. Even people who don't typically drink coffee will try to order a brew just to admire the shop's aesthetics.

Opening a small, themed coffee shop can be daunting. But, with the right research and proper resources, you’ll be able to build one even with a tight budget. Here are some coffee shop themes you can work with:

If you like vintage furnishings, greenery, wood, and exposed brick, you'll feel right at home in a rustic coffee shop. Choose timeless pieces and cozy seating if you're going for a small coffee shop with a speakeasy or boutique vibe. To get into the spirit of things, you can even give items on the menu names that have a rustic feel.

If you're looking for something lively and exciting, a chic boho theme is the way to go. You can do this easily with a few well-chosen carpets, crocheted curtains, fairy lights, and wooden furniture. Also, combine earthy tones with neutrals or warm colors with cool colors to make a unique bohemian color scheme for your low-budget café.

Pop Culture

Another excellent way to reach people interested in popular culture would be to open a cafe themed after a popular work of fiction, music, film, or television. An example is a popular BTS-themed cafe in Quezon City called Purple 7 Cafè . The interiors of this coffee shop are beautifully planned. It has numerous photogenic nooks and crannies, perfect for a BTS fan. The café has a quiet elegance that makes it appealing not only to fans but also to people who are interested in design.

5. Prepare the materials needed to open a low-budget coffee shop.

By now, you should start searching for the materials and equipment you need for your future coffee shop. So, here are the essential materials you need for a startup coffee shop:

Coffee Beans

Naturally, coffee is necessary for opening a coffee shop, and you wouldn't want to serve beverages made with instant coffee. Customers who love coffee don't just want a cup of joe; they want an immersive experience, and you can give them that by stocking your shop with high-quality beans.

The best coffee beans aren’t that hard to find, and one innovative idea for starting your small coffee shop is to offer unique blends made from savory beans. The Philippines is home to various premium coffee beans , each producing its unique flavor when brewed. Some of the most popular beans grown in the country include Kapeng Barako, Robusta, and Excelsa. Consider using these coffee beans to brew blends so your customers can experience the exquisite flavors of Philippine coffee.

Brewing Equipment

Once you’re done curating your selection of coffee beans, it’s time to canvass for brewing equipment.

Brewing equipment is necessary to jumpstart your low-cost coffee business. When deciding which equipment to choose, consider your skills. Are you a novice, an experienced person, or somewhere in between? Even though you can learn how to use a coffee maker, the learning curve will be shorter if you first evaluate your abilities. If you're a beginner, you may start with drip coffees, French presses, and AeroPresses. However, if you already have the necessary knowledge, you might start with more advanced machinery, such as espresso machines that can brew multiple cups of coffee.

Check out our collection of coffee shop equipment for sale in the Philippines to help you decide on your very first brewing equipment.

Other Coffee Shop Accessories

If you’ve checked coffee beans and brewing equipment off your checklist, you can now look for other coffee shop accessories like cups, straws, tables, and chairs. These items may seem small, but they significantly impact how to open a cafe with a low budget in the Philippines. It's essential to find a reliable and affordable supplier for things like coffee shop cups and straws, which need restocking. For tables and chairs, you need to ensure they will last a long time and make your customers feel comfortable, so they will return for more.

6. Don’t forget to register your business.

Legally, you can't run a business unless it's been registered. So, as a final advice, we suggest you register your company. Part of being a business owner is seeking legal counsel to know how to set up your small coffee shop. Additionally, you may go through the Bureau of Internal Revenue and Department of Trade and Industry websites to learn more about business registrations.

Benefits of Starting a Coffee Shop

With the pandemic easing and more people venturing outside, many coffee shops are re-opening and opening across the country. In addition to easing pandemic restrictions, there are other good reasons to get your coffee shop business plan in motion as soon as possible. So, here’s why you should start your café shop in the Philippines:

Become your own boss

Gaining financial independence and being your own boss is the pinnacle of success. With a business of your own, you don't have to worry about the 9-to-5 grind that plagues many people's lives. You'll have a complete say over every aspect of the business, from planning to day-to-day operations, allowing you to unleash your full creative potential.

Get more profit

With your own business, you’ll be able to earn more income. Starting a business involves risking your own money and thinking of innovative ideas for a coffee shop. The key to making a good profit from your small coffee shop concept is keeping startup costs low, which you can do by thoroughly investigating all available options. With the right plans and resources, you’ll be able to earn a profit in no time.

Support local coffee farms

As you support your dreams, you’ll also support local businesses, such as farms producing local coffee. Most startup coffee shops obtain their coffee beans from local suppliers because they’re more cost-effective and of superior quality. By doing so, you will assist those who wish to promote their products while gaining popularity yourself.

Start Planning the Coffee Shop of Your Dreams

Planning your dream coffee shop takes time, money, and resources. Before you can begin operating one, you must carefully consider all the aspects of starting a small coffee shop. Just keep in mind that creating a coffee shop doesn't require a lot of money. All it takes is determination, patience, and the will to become your own boss.

What are you waiting for? Start planning the coffee shop of your dreams now!

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Starting a Café Business: Essential Steps Guide

• Post author: Mervin Manalo
• Reading time: 17 mins read

Did you know that the coffee shop industry is booming in the Philippines? With coffee culture on the rise, starting your own café business can be profitable and rewarding. But where do you begin? How do you ensure your café stands out in a crowded market?

This comprehensive guide will walk you through the essential steps of starting a café business, from researching the industry to designing your café and launching it successfully. Whether you are a coffee enthusiast or an entrepreneur looking for a new venture, this guide is your go-to resource for turning your café dreams into reality.

Key Takeaways:

• Research the coffee business and learn from successful café owners
• Define your café’s vision and atmosphere
• Create a comprehensive business plan and choose a suitable location
• Find reliable suppliers and source commercial equipment
• Design your café and create a menu that reflects your vision

Doing Your Research and Defining Your Vision

Starting a café business requires thorough research to understand the industry and learn from successful coffee business owners. By immersing yourself in the world of cafés, you can gain valuable insights and discover what sets the best establishments apart.

Visiting cafés and analyzing customer needs and preferences can help you define your café’s vision and how it will stand out from competitors. Take note of the ambiance, menu offerings, and customer service in different cafés to identify what works well and what could be improved.

Collecting photos, menus, and design ideas can inspire the atmosphere and style of your café. Saving these visual references will help you communicate your vision to designers and architects when creating your café’s unique identity.

Understanding your target customer base and their needs is crucial for planning your menu, pricing, and overall business strategy. By listening to your potential customers and conducting surveys or focus groups, you can tailor your offerings to their preferences, ensuring higher customer satisfaction.

Learning from Coffee Business Owners

One of the best ways to gain valuable insights into the coffee business is by learning directly from successful café owners. Contact local café owners and ask if they would be open to sharing their experiences and advice. Many café owners are happy to help aspiring entrepreneurs and share their knowledge.

To maximize your learning experience, prepare thoughtful questions and be open to different perspectives. Ask about their journey, challenges they faced, marketing strategies they implemented, and any critical lessons learned.

Engaging with coffee business owners can gain invaluable industry knowledge and avoid common pitfalls. Learning from their experiences can provide a solid foundation for starting and running your own café business.

Defining Your Vision

Defining your vision is a critical step in starting a café business. It sets the direction for your café and influences every aspect of its operations. Your vision encompasses the atmosphere, theme, target audience, and unique selling points that will differentiate your café from the competition.

Take the time to reflect on what you want your café to represent and the type of experience you want to create for your customers. Write down your goals, mission statement, and values guiding your café’s operations and interactions.

A well-defined vision will help you make informed decisions and attract the right customers who resonate with your café’s identity. It will serve as a compass, guiding your actions and ensuring consistency throughout your café’s journey.

Creating a Business Plan and Choosing a Location

Starting a café business requires careful planning and strategic decision-making. A well-crafted business plan is a foundation for guiding each stage of your café’s development and managing its operations.

Your business plan should include:

• A compelling summary that highlights your unique selling proposition and vision for the café.
• A thorough local market analysis that identifies your target market, competitors, and potential challenges.
• A well-defined team structure outlining the roles and responsibilities of each team member.
• A comprehensive marketing plan that outlines how you will promote your café and attract customers.
• Realistic financial projections that cover expenses, revenue streams, and profitability.
• A carefully thought-out location strategy that considers factors such as foot traffic, visibility, demographics, and local community preferences.

Choosing the right café location is crucial for the success of your business. A prime location can attract more customers and generate higher sales. Consider the following factors when selecting a café location:

• Foot traffic: Choose a location with high pedestrian traffic to increase the visibility and accessibility of your café.
• Visibility: A café with good visibility from the street can attract passersby and create curiosity.
• Demographics: Analyze the area’s demographics to ensure your café aligns with the preferences and needs of the local population.
• Local community preferences: Research the community’s preferences for coffee and café experiences to tailor your offerings accordingly.

Before signing a lease for your café location, it’s essential to understand the terms and conditions thoroughly. Consulting a lawyer specializing in retail leases can help you navigate the legalities and ensure you make informed decisions.

Creating a solid business plan and choosing the right location are vital steps to set the stage for your café’s success. By carefully considering your target market, competition, and location factors, you can create a strong foundation for your café and attract loyal customers.

Finding Suppliers and Sourcing Equipment

Finding reliable suppliers for your café is essential for ensuring a smooth operation. From high-quality coffee beans to fresh produce and essential items like milk and bread, sourcing suitable suppliers is crucial to serving your customers the best products.

Creating a Detailed List

Start by creating a detailed list of all the supplies you will need for your café. This should include everything from coffee beans, tea leaves, and milk to utensils, plates, and cleaning supplies. A comprehensive list will help you stay organized and ensure you don’t miss any essentials.

Pro Tip: To avoid missing any items, think through your entire menu and the various components needed to bring each dish or beverage to life.

Researching Suppliers

Once you have your list, it’s time to start researching suppliers. Look for suppliers that align with your business philosophy, such as those focused on fair trade, sustainable sourcing, or organic products. Don’t forget to consider the reputation and reliability of each supplier.

You can start by contacting local farmers, roasters, and distributors. Attend trade shows or industry events to connect with potential suppliers and evaluate the quality of their products. Get recommendations from other café owners or hospitality professionals who have experience working with reliable suppliers.

Sourcing Commercial Equipment

Sourcing the proper commercial equipment is another crucial aspect of starting a café business. From coffee machines and blenders to refrigerators and cash registers, equipping your café with the necessary tools is essential for daily operations.

When sourcing commercial equipment , consider your specific needs and budget—research different brands and models, comparing their features, durability, and pricing. If you’re on a tight budget, explore options for leasing or financing the equipment.

Tip: Collaborate with suppliers who can recommend the right equipment for your café’s needs, ensuring that your kitchen is equipped with reliable, energy-efficient, and easy-to-maintain tools.

Comparison of Supplier Options

By carefully researching and selecting suppliers that align with your café’s vision, you can ensure a steady supply of high-quality ingredients and essential items. Additionally, investing in reliable commercial equipment will contribute to the smooth functioning of your café’s operations, allowing you to serve your customers efficiently.

Designing Your Café and Creating a Menu

The design of your café is a vital aspect that can attract customers and create a unique and memorable atmosphere. By understanding the preferences and tastes of your target customer base, you can design your café in a way that resonates with them. Whether you opt for a modern, retro, sophisticated, family-friendly, or health-focused ambiance, the key is to create an environment that appeals to your customers.

An efficient workflow and a customer-friendly ordering process should also be considered when planning your café’s layout. By optimizing the space and ensuring smooth operations, you can provide a seamless and enjoyable experience for your patrons.

When it comes to menu creation, it is essential to develop a menu that not only aligns with your café’s vision but also offers a variety of appealing options. Consider incorporating gluten-free, vegan, and vegetarian choices to cater to a broader range of preferences and dietary needs. Striking a balance between customer satisfaction and profitability is critical. By providing an enticing menu that reflects your café’s unique identity, you can create a truly memorable dining experience.

Here is an example of a well-designed café menu:

By carefully considering the design of your café and creating a menu that reflects your vision, you can create an inviting space that leaves a lasting impression on your customers. Remember, the design and menu are essential elements that contribute to the overall experience and success of your café business.

Starting a café business requires careful planning, extensive research, and attention to detail. Following the essential steps outlined in this guide can build a solid foundation for a successful café business.

Defining your vision and creating a comprehensive business plan will help you focus on your goals and navigate potential challenges. Choosing the right location, sourcing reliable suppliers, and obtaining top-quality equipment is crucial to running a successful café.

Designing your café with a specific theme and creating a menu that reflects your vision will attract customers and leave a lasting impression. By delivering exceptional customer service and providing a memorable experience, you can develop a loyal customer base and thrive in the competitive café industry.

Launching a café business is an exciting endeavor requiring passion, dedication, and perseverance. With the proper preparation and a commitment to excellence, you can bring your dream café to life, stand out from the competition, and establish a thriving business that brings joy to coffee lovers in your community.

How can I start a café business?

To start a café business, you need to conduct thorough research on the coffee business, define your vision, create a comprehensive business plan, choose a suitable location, find reliable suppliers, source commercial equipment, design your café, create a menu, hire the right staff, develop a marketing plan, and plan a successful grand opening.

How can I research the coffee business?

Research the coffee business by contacting owners and visiting cafés to understand what works and doesn’t. Analyzing customer needs and preferences can provide valuable insights for your café.

What should be included in a business plan?

A comprehensive business plan should include a summary, local market analysis, team structure, marketing plan, financial projections, and location strategy.

How do I choose the right café location?

Consider factors such as foot traffic, visibility, demographics, and community preferences when choosing a café location . Thoroughly understand the retail lease terms and consult with a lawyer before signing.

How can I find reliable suppliers for my café?

Create a detailed list of supplies and research suppliers that align with your business philosophy. This will ensure you are well-prepared and find reliable suppliers for coffee beans, milk, bread, fresh produce, and other necessary items.

What should I consider when sourcing commercial equipment?

Consider your specific needs and budget when sourcing commercial equipment , such as coffee machines, blenders, refrigerators, and cash registers. Think about whether leasing options or loans would be beneficial for your business.

How important is the design of my café?

The design of your café plays a crucial role in attracting customers and creating a unique atmosphere. Understand the tastes and preferences of your target customer base to design your café accordingly.

How should I create a menu for my café?

Create a menu that reflects your café’s vision and offers a variety of appealing options, including gluten-free, vegan, and vegetarian choices. This will ensure customer satisfaction and profitability.

How do I plan a successful grand opening?

Plan a successful grand opening to showcase your hard work and start building relationships with your customers. Utilize social media, Google Maps, and other platforms to promote your grand opening and attract customers.

What are the essential steps for starting a café business?

Starting a café business requires thorough research, defining your vision , creating a comprehensive business plan, choosing the right location, finding reliable suppliers, sourcing commercial equipment , designing your café, creating a menu, hiring the right staff, developing a marketing plan, and planning a successful grand opening.

How can I ensure my café business is successful?

Following the essential steps outlined in this guide can build a solid foundation for a successful café business. With the proper preparation and dedication, you can bring your dream café to life and create a memorable experience for your customers.

Source Links

• https://www.sevenmiles.com.au/blogs/editorial/how-to-open-a-cafe
• https://coffeeshopstartups.com/how-to-start-a-coffee-shop-in-30-steps/
• https://www.forbes.com/advisor/business/how-start-coffee-shop/

About HICAPS

Over the years, HICAPS has helped bakers and businesses make delicious products by offering ingredients like  ChiffonAide Cake Oil ,  Magic Whizk Whipping Cream ,  Red Velvet Flavor Emulco , and  Instabake Brownie Mix .

HICAPS also provides tools and resources to valued partners, such as the free  “How to Increase Your Sales Amidst the Pandemic”  E-book and free dealer locator that helps look for  baking ingredients near me .

Want more free tips and tutorials? Follow us on Facebook at  Hicaps Mktg Corp.  and on YouTube at  HicapsTV . Want to be one of our valued partners?  Fill this form out.

We are looking forward to talking to you soon!

• About the Author
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Mervin Manalo is a Chemical Engineer who graduated from De La Salle University in Manila, Philippines. He has over 20 years of experience in the food industry and currently serves as President and CEO of HICAPS Mktg. Corp., a provider of prime baking ingredients.

He also attended a mini MBA program at Guthrie-Jensen, which helped him broaden his business knowledge and skills. Under his helm, HICAPS expanded its business and helped more clients grow thru the years. He loves technology and new trends and is always looking for ways to improve his products and services.

• Boost Your Baking Business with AI
• How to Start a Home Baking Business in the Philippines: A Step-by-Step Guide
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Quick Guide On How To Start Coffee Shop Business In The Philippines

Coffee shops are a good business idea in the Philippines because there are so many coffee lovers in the country. Even more, it’s a good opportunity to offer other foods and products. You would be surprised to know that many customers visit a coffee shop, sometimes not because of the coffee but of the food, pastries, and also the ambiance.

In the Philippines, a coffee shop is more than serving coffee. It’s a place to study, hang out with friends, relax, enjoy good food, and many more. It’s a place where people meet over good coffee. Thus, it could be a lucrative business idea. Here, we made a quick guide you could use if you’re considering starting a coffee shop business in the Philippines.

How To Start a Coffee Shop Business In The Philippines:

1. come up with a business plan..

A good business plan lays out your business’s structure and objectives. It becomes a reference tool to keep the business on track with sales targets and operational milestones. It can help measure and manage your priority areas of focus and see if your business is losing or doing well.

2. Decide if you’ll franchise or start from scratch.

Since coffee shops are a hit in the country, it’s no wonder that there are many coffee shops offering franchises. If your want to go big, you can look into how to franchise J.Co Donuts & Coffee . If you want something local, you can consider franchising Figaro Coffee . There are many more options, it’s just a matter of reaching out and researching.

If you decide to start from scratch, then your next step is prepare the costs.

3. Prepare for the expenses.

According to a 2022 article from MoneyMax , starting a small 30-sqm coffee shop without a kitchen in a city can cost roughly P950,000 for the equipment, location, and business permit. It would cost you around P600,000 in monthly operational expenses.

If you plan on something as big as 150 sqm with a full kitchen, that would cost you around P4.5 million. However, these costs shouldn’t discourage you at all. There are many inspiring coffee shop owners who started their business from their homes, condo units, or even just in their parking lot.

4. Decide What Type of Coffee Shop

Next, you decide what type of coffee shop you want to build. This is mostly dependent on your budget and availability, like if you’re only planning to do this part-time or full-time. You should also determine your location.

Aside from opening a typical cafe, other types include coffee carts or kiosks at a mall, pick-up, deliveries, pop-ups at food fairs, etc.

5. Legally register

You shouldn’t miss your responsibilities and legally register your business. It’s important to seek legal advice at this point but here are some of the common legal requirements your business needs:

• Barangay Registration
• Business permit & Mayor’s permit
• Department of Trade and Industry registration
• Register your business in the Bureau of Internal Revenue (BIR)

6. Start purchasing your equipment and appliances.

The furniture and other things you need are mostly dependent on the type of coffee shop you like. These will probably take the most of your investment capital, so think wisely before buying. You can also consider second-hand items as long as they’re functioning well.

Here are some of the basic equipment you need:

• Automatic drip coffee maker
• Espresso machine
• Industrial coffee grinder and blender
• Oven toaster
• Refrigerator

7. Start re-calculating and making projections

After you have bought everything you need, look at your budget and re-calculate. Start calculating your monthly operational costs vs your expected profits. Adjust your business plan if necessary.

The last part is, of course, lots of hardwork and determination! Don’t forget to boost your marketing skills and make noise online to gain attention. Like in any business, be hands on and take the time you need to learn more business lessons. Good luck!

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How to Start a Coffee Shop Business in the Philippines

The coffee shop industry in the Philippines is thriving, with over 2,752 cafes and coffee shops in 2020. This growing demand presents a lucrative opportunity for aspiring entrepreneurs to enter the coffee shop business . Whether you dream of running a cozy neighborhood café or a bustling coffee hotspot in a prime city location, starting a coffee shop business requires careful planning and execution . In this step-by-step guide , we will explore the essential elements of starting a successful coffee shop venture in the Philippines .

Key Takeaways:

Why start a coffee shop business.

For those with a background in the coffee industry, opening a coffee shop allows them to unleash their creativity and explore new beverage creations. Additionally, owning a coffee shop makes individuals a part of the vibrant coffee culture in the Philippines and offers flexibility in managing their time and spending quality moments with their families.

Entrepreneurship and Income

Impact and creativity, dream and coffee culture, flexibility, how to start a coffee shop business in the philippines (7 simple steps).

By following these 7 simple steps, you’ll be on your way to starting a successful coffee shop business in the Philippines . Remember to prioritize quality, customer service, and uniqueness to differentiate your coffee shop from the competition. Good luck!

How to Open a Café with a Low Budget in the Philippines

If you’re looking to open a café in the Philippines without breaking the bank, here are some steps to follow:

1. Start with a Solid Business Plan

An effective business plan is crucial for any aspiring café owner, particularly when operating on a low budget . Outline your goals, target market, financial projections, and marketing strategies in detail. A well-structured plan will help guide your decision-making process and attract potential investors or lenders.

2. Find a Cost-Effective Location

3. source affordable equipment, 4. optimize your menu.

Develop a menu that focuses on affordable yet delicious offerings. Prioritize ingredients that are locally sourced and budget-friendly. By maximizing cost-effective ingredients, you can maintain quality while keeping your pricing competitive.

5. Emphasize Efficiency and Productivity

6. utilize low-cost marketing strategies.

Maximize the use of free or low-cost marketing channels to promote your café. Leverage social media platforms, create engaging content, and encourage customer reviews and recommendations. Collaborate with local influencers or communities to boost your online presence without significant financial investment.

7. Build Customer Loyalty

Focus on providing exceptional customer service and creating a welcoming atmosphere in your café. Offer loyalty programs, discounts, or incentives to encourage repeat visits and attract new customers through word-of-mouth. Engage with your community by hosting events or partnering with local organizations.

Developing Your Menu for a Coffee Shop Business

Creating an enticing menu is a crucial aspect of running a successful coffee shop business . Your menu should not only showcase a variety of specialty coffee options but also offer delicious food items that complement the overall coffee experience.

When deciding what coffee drinks to include in your menu, consider whether you want to focus on serving specialty coffee . Specialty coffee is made from high-quality beans and brewed using specific techniques to bring out their unique flavors. It’s important to invest in the right coffee beans and brewing equipment to ensure the best cup of coffee for your customers.

Coffee Menu Suggestions:

To enhance the overall coffee experience, pair your coffee drinks with food items that complement the flavors and aromas of the beverages. Consider offering a selection of pastries, sandwiches, salads, and even brunch items.

Food Menu Suggestions:

Remember, the key to attracting and retaining customers is to focus on providing high-quality coffee and delicious food. Invest time and effort in sourcing ingredients, training your staff, and creating a welcoming ambiance to enhance the overall coffee shop experience.

Marketing Strategies for a Coffee Shop Business

Social media, free wi-fi email capture.

One effective way to capture customer information and build long-term relationships is by offering free Wi-Fi in your coffee shop. Require customers to provide their email addresses or log in via social media to access the internet. This allows you to develop a database of customer contacts for future promotional campaigns and email newsletters.

Facebook Advertising

Facebook advertising is a cost-effective way to target specific demographics and reach potential customers in your local area. Create engaging ads that highlight your unique selling points, such as specialty coffee blends, cozy ambiance, or mouthwatering pastries. Monitor the performance of your ads and make adjustments based on audience engagement and conversions.

Maintaining Customer Satisfaction in a Coffee Shop Business

Maintaining customer satisfaction is crucial for the success of your coffee shop business. To ensure that your customers keep coming back for more, here are some key strategies to focus on:

Deliver High-Quality Coffee Beverages

Host events to engage your community.

Hosting events is an excellent way to keep your café top of mind in your community. Consider organizing coffee-tasting sessions, latte art workshops, or live music performances. These events can create a sense of belonging and add value to your customer’s overall experience. It’s an opportunity to foster a stronger connection with your customers and showcase your expertise in the coffee industry.

Train Your Staff for Friendly and Attentive Service

Human interaction plays a vital role in customer satisfaction. Train your staff to provide friendly and attentive service, ensuring that each customer feels valued and appreciated. Encourage your employees to engage in good conversations, suggest personalized beverage options, and go the extra mile to meet customer preferences and needs. Positive interactions can significantly enhance the overall customer experience and build customer loyalty.

Building a Successful Coffee Shop Business: The Importance of Planning and Execution

Building a successful coffee shop business requires careful planning and effective execution . By following a strategic roadmap and paying attention to key factors, you can increase the chances of creating a thriving coffee shop that stands out in the competitive market.

1. Develop a Solid Business Plan

A well-structured business plan is the foundation for a successful coffee shop business. Start by outlining your goals, target market, financial projections, and marketing strategies. Conduct thorough market research to understand the demand for coffee shops in your area and identify any gaps or untapped opportunities. This will help you tailor your business plan to meet the specific needs of your target audience.

2. Find the Perfect Location

Choosing the right location is crucial for the success of your coffee shop. Look for areas with high foot traffic, such as commercial zones, business districts, or near universities or colleges. Consider factors like accessibility, parking availability, and proximity to complementary businesses. A well-chosen location can significantly impact the visibility and profitability of your coffee shop.

3. Create an Inviting Ambiance

4. craft an impressive menu.

The menu is one of the core elements of a successful coffee shop business. Offer a variety of high-quality coffee drinks, including specialty brews, espresso-based beverages, and seasonal options. Complement your coffee selection with a range of delicious food items that cater to different dietary preferences. Present your menu in an enticing and visually appealing way to entice customers to try new offerings.

5. Implement Effective Marketing Strategies

Utilize various marketing channels to promote your coffee shop and attract customers. Leverage the power of social media platforms like Instagram and Facebook to showcase your coffee offerings, engage with your audience, and run targeted advertisements. Consider offering free Wi-Fi and implementing an email capture system to build a customer database and drive repeat business. Collaborate with local influencers, host coffee-tasting events, and offer loyalty programs to further enhance your marketing efforts.

6. Prioritize Customer Satisfaction

By focusing on these key factors and executing your plans effectively, you can build a successful coffee shop business that attracts loyal customers and stands the test of time.

Starting a coffee shop business in the Philippines can be a rewarding and profitable endeavor. By following our step-by-step guide and investing time and effort in planning and execution, you can significantly increase your chances of success. It’s essential to stay focused on providing high-quality coffee and creating a welcoming atmosphere that keeps customers coming back for more.

Additionally, make sure to develop a menu that showcases your specialty coffee offerings and pairs them with delicious food items. Implement effective marketing strategies, such as utilizing social media platforms, offering free Wi-Fi with email capture, and leveraging Facebook advertising , to reach a wider audience and attract more customers.

Why should I start a coffee shop business?

How do i start a coffee shop business in the philippines.

To start a coffee shop business in the Philippines , follow these 7 simple steps:

3. Identify a suitable location.

6. Create a coffee and food menu.

How can I open a café with a low budget in the Philippines?

1. Find a small and affordable space.

4. Utilize social media and word-of-mouth marketing to promote your café.

How do I develop a menu for my coffee shop business?

What marketing strategies can i use to promote my coffee shop business.

1. Establish a strong presence on social media platforms.

4. Collaborate with local businesses for cross-promotion.

How can I maintain customer satisfaction in my coffee shop business?

Maintaining customer satisfaction is crucial for the success of your coffee shop business. Focus on consistently delivering high-quality coffee beverages, as this is the primary reason customers visit coffee shops. Host events relevant to your community to keep your café top of mind. Train your staff to provide friendly and attentive service, as good conversations and positive interactions can enhance the overall customer experience and increase customer loyalty.

What is the importance of planning and execution in building a successful coffee shop business?

• Mar 14, 2019

How Much Does It Cost to Start a Coffee Business in the Philippines?

Updated: Dec 21, 2021

What is it like to break free from the 9-5 grind? Well, here’s the thing: you can’t really know for sure if you don’t try. But here’s the other thing: it’s one thing to say it, and another thing to do it.

In short, it’s hard. Especially when we’re talking business, when there’s a lot of money involved. Sadly, not everyone can just whip out a wad of cash and get into business. For many of us, money is most definitely an object.You know that you want to do it, but you don’t know how, or if you even can do it.

On this post, we’re looking at a real-life cost breakdown of starting a coffee business in the Philippines to help you get started with your own.

3 Ways to Start a Coffee Business in the Philippines

If you want to start your coffee shop in the Philippines, you have at least three ways to go about it.

First, you can franchise. There’s a whole breadth of established coffee brands should your heart desire to franchise. Popular brands such as Starbucks, The Coffee Bean & Tea Leaf, Tim Hortons’, UCC, and the like are all open for franchising. Many first-time entrepreneurs are encouraged to franchise because deployment is typically easy and low-stress. Plus, the business model is already established. However, the cost is anywhere from 6 to 12 million pesos, a sizable investment that has no guarantees ROI-wise. More importantly, there’s little flexibility on the concept and innovation.

Second, and perhaps the least popular in our list, is buying an existing coffee shop. You’d be surprised that there are entrepreneurs who actually buy established and well-performing coffee shops. Who can blame them? It’s the safer, much easier route. There are a handful of great reasons why you’d want to do this, chief among them is the opportunity to deliver specialty and good-quality coffee. However, it’s hard to find a very profitable business that is out for sale. What’s more, you’ll be bound to the existing branding, vision, and design and remodeling it will likely come out to be even more expensive than simply starting your own.

Finally, there’s the option of building a coffee brand from the ground-up. This offers aspiring café-preneurs to build something truly their own—from branding, culture, business model, food menu, and everything else.  Starting your own coffee shop gives you free hand and flexibility on business model, brand, design, language, and more. Because there’s no pre-existing branding to deal with, you’re free to be original, market on a specific concept, and place good focus on delivering great coffee. Of course, it’s worth noting that all these will be time-consuming and difficult to execute, especially for entrepreneurs without much experience in the food and beverage experience.

On this post, we’ll be using the third option as example. How much money is required for you to build a coffee shop in the Philippines?

Cost Breakdown: Starting a Coffee Business in the Philippines

Let’s get one thing straight: creating your own coffee shop will set you back money-wise. Be prepared to shell out a considerable sum. Without any further ado, here’s our rough cost breakdown of how much it costs to start a coffee business in the Philippines.

Small Cafe with No Kitchen

Specifications

Location - central business district

Food - reheating only

Floor Area - 30 sq m

*variable depending on cafe hours

Business Permit - PhP 50,000

Fit Out - PhP 450,000

Equipment - PhP 450,000

Rent* - PhP 45,000

Monthly Staff Cost** - PhP 77,500

Marketing Spend - PhP 10,000

Utilities - PhP 10,500

Supplies - PhP 101,250

*assumed PhP 1,500 per sq m

**remuneration may vary

Monthly Revenue* - PhP 337,500

*assumptions

-90 cups per day

-PhP 150 average spend with food

-PhP 13,500 daily revenue

Net Income Before Taxes - PhP 93,250

ROI - 10 months

Medium-sized Cafe with Small Kitchen

Food - small kitchen

Staff* - 10

Floor Area - 50 sq m

Fit Out - PhP 750,000

Equipment - PhP 750,000

Rent* - PhP 75,000

Monthly Staff Cost** - PhP 182,500

Marketing Spend - PhP 20,000

Utilities - PhP 17,500

Supplies - PhP 198,450

Monthly Revenue* - PhP 661,500

-126 cups per day

-PhP 210 average spend with food

-PhP 26,460 daily revenue

Net Income Before Taxes - PhP 168,050

ROI - 9 months

Large Cafe with Full Kitchen

Food - full kitchen

Staff* - 12

Floor Area - 150 sq m

Fit Out - PhP 2,250,000

Equipment - PhP 2,250,000

Rent* - PhP 225,000

Monthly Staff Cost** - PhP 217,500

Marketing Spend - PhP 30,000

Utilities - PhP 52,500

Supplies - PhP 472,500

Monthly Revenue* - PhP 1,575,000

-210 cups per day

-PhP 300 average spend with food

-PhP 63,000 daily revenue

Net Income Before Taxes - PhP 577,500

ROI - 8 months

The above numbers can feel overwhelming and discouraging, largely because it came from a bigger-scale original coffee brand breakdown. If you wish to build a smaller coffee business, you may do so, and it will cost you far less.

Still, a few million pesosare nothing to scoff at. For many of us, that amount can already make up for one entire lifetime savings.  There are several ways to come up with that initial cost. Your options are not limited to applying for a business loan. You can partner up with another entrepreneur or pitch to an investor to get financial backing. You can obviously finance the whole thing right out of your pocket.

Bottom-line: It’s your dream coffee shop. Surely, you’ll find a way.

Of course, there’s always the option to apply for a business loan in the bank.

Over to You—Ready to Start Your Coffee Shop?

Now that you know how much starting a coffee business in the Philippines costs, are you ready to start your coffee shop?

When you are, we urge you to take a free 30-minute consultation with one of our coffee business experts. In the call, you’ll get access to high-level insights on building a business in the coffee industry.  Book a session with us HERE and let's get to work.

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Coffee Shop Business Plan Template & PDF Example

• July 22, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful coffee shop. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your coffee shop’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a coffee shop business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the food and beverage industry, this guide, complete with a business plan example, lays the groundwork for turning your coffee shop concept into reality. Let’s dive in!

Our coffee shop business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the shop’s operations, marketing strategy, market environment, competitors, management team, and financial forecasts.

• Executive Summary : Offers a quick look at your coffee shop idea, market research , your team, and money plans.
• Coffee Shop & Location: Talks about the design, special features, and why the spot is great for customers.
• Operations: Describes how your shop runs daily, like hours, staff roles, and your menu items with prices.
• Key Stats: Gives numbers on how big the coffee shop world is and what’s trending.
• Key Trends : Points out new things in coffee shops, like eco-friendly practices or tech for ordering.
• Key Competitors: Looks at other coffee places nearby and how your shop is different.
• SWOT: Lists strengths, weaknesses, opportunities, and risks for your shop.
• Marketing Plan : Ideas for getting the word out and keeping customers coming back.
• Timeline : Major steps and goals from starting up to the first year.
• Management: Highlights Info on your leading team and their roles.
• Financial Plan : Predicts financials for 5 years, like how much you’ll make, spend, and keep as profit.

Coffee Shop Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary presents a concise overview of your coffee shop’s business plan, encapsulating the essence of your establishment and its offerings. It should articulate your market positioning, the variety of coffee and related products you offer, its location, size, and a brief on the daily operations.

This section should also delve into how your coffee shop will carve its niche within the local community, including an analysis of the number of direct competitors in the vicinity, identifying who they are, as well as highlighting your coffee shop’s unique selling points that set it apart from these competitors.

Moreover, information about the management and co-founding team should be included, elaborating on their roles and the value they bring to the coffee shop’s success. Additionally, a synopsis of your financial projections, including anticipated revenue and profits over the next five years, should be provided here to offer a clear view of your coffee shop’s financial strategy.

Coffee Shop Business Plan Executive Summary Example

Business Overview

The  business overview  section should detail the coffee shop’s specific features, including its size, seating capacity, and concept. This is where you explain what makes your coffee shop unique, such as its focus on specialty coffees and local artisanal pastries, and how it operates.

Example: “Bean Haven,” located in the bustling Midtown area, spans 2,000 square feet and can seat 40 customers. It stands out with its range of gourmet coffees and fresh pastries, all sourced from local suppliers. The shop’s modern POS system ensures efficient service, enhancing the overall customer experience.

Market Overview

In this section, analyze the local and national coffee shop market. Discuss the size of the market, growth trends, and consumer preferences. This analysis should position your coffee shop within the broader industry context and highlight its potential to meet current consumer demands.

Example: Bean Haven enters a U.S. coffee shop market valued at $45.8 billion. In its neighborhood, known for a dense population of young professionals, Bean Haven’s focus on health-conscious options and its role as a community hub align with shifting consumer preferences, setting it apart from six main competitors in the area.

Management Team

This section outlines the experience and roles of your management team. Detail how their background and skills contribute to the success of the coffee shop.

Example: Bean Haven is led by a CEO with 10 years of experience in café management, overseeing daily operations and supply chain efficiency. The CFO, with a background in hospitality sector marketing, handles the shop’s financial strategies and marketing campaigns, ensuring robust business operations.

Financial Plan

Here, present your financial goals and projections. Include revenue targets and profit margins, providing a clear picture of your coffee shop’s financial aspirations and health.

Example: Bean Haven aims for $830,000 in annual revenue with an 11%  EBITDA  margin by 2028. This goal is supported by a focused approach on high-quality offerings, strategic marketing, and community engagement, positioning Bean Haven for success in the  competitive  market.

For a Coffee Shop, the Business Overview section can be neatly divided into 2 main slides:

Coffee Shop & Location

Talk about your coffee shop’s look and feel, highlighting cozy seats and nice lighting that make it welcoming. Mention its location, noting how easy it is to get there, like being close to shops or having easy parking. Explain why this spot is great for attracting customers.

Operations & Offerings

List the kinds of coffee and other items you sell, including snacks or light food. Discuss pricing, making sure it matches the quality of what you’re selling and suits your target customers . Share special features of your shop, such as using local products or offering unique coffee flavors. Mention any deals or events you have to keep customers coming back.

Industry Size & Growth

In the Market Overview of your coffee shop business plan, begin by exploring the size of the coffee industry and its potential for growth. This analysis is key to understanding the breadth of the market and pinpointing opportunities for expansion.

Key Market Trends

Next, discuss current trends in the coffee market, like the growing demand for specialty coffee, the appeal of ethically sourced and organic beans, and the innovation in coffee brewing techniques. Highlight the interest in offerings that cater to diverse preferences and dietary needs, such as plant-based milk options and artisanal blends, as well as the increasing importance of sustainability in the coffee industry.

Competitive Landscape

A  competitive analysis  is not just a tool for gauging the position of your coffee shop in the market; it’s also a fundamental component of your business plan.

This analysis helps identify your coffee shop’s unique selling points, which are essential for differentiating your business in a  competitive  market.

In addition, competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.

Identifying Your Coffee Shop’s Competitors

The first step in conducting a competitive analysis for your coffee shop is identifying your direct and indirect competitors. Direct competitors include nearby coffeehouses or chains that offer similar services and products, while indirect competitors might encompass local juice bars, tea houses, or even convenience stores selling coffee.

Utilize tools like Google Maps to map out competitor locations and understand their distribution across your area. Online platforms like Yelp, Google Reviews, or social media channels provide invaluable insights into customer reviews and ratings, shedding light on competitor  strengths and weaknesses . For instance, if a rival coffee shop receives praise for its artisanal coffee blends and cozy ambiance, it signifies a notable strength.

Coffee Shop Competitors’ Strategies

To gain a deeper understanding of the competitive landscape, analyze various facets of your competitors’ strategies:

• Coffee Menu Offerings:  Assess the range and uniqueness of coffee offerings. For instance, if a local competitor, “Brew Masters,” is gaining traction with exotic single-origin coffees or specialty cold brews, it highlights a potential trend or gap in the market for distinctive coffee blends.
• Service and Ambiance:  Consider the ambiance and customer service. Perhaps a competitor, “Sip & Chill Café,” is known for its relaxed atmosphere and friendly staff, enhancing the overall customer experience.
• Pricing Strategy :  Compare your pricing with competitors. Are your coffee prices aligned with those of other local cafes, or do you position yourself as a premium establishment akin to “Gourmet Grinds,” offering artisanal blends at a higher price point?
• Marketing and Branding:  Analyze how competitors market their brand. Do they rely heavily on social media campaigns, influencer collaborations, or community events? Understanding their marketing tactics can help refine your promotional strategies.
• Innovative Offerings and Technology:  Look for innovative approaches. Are competitors embracing technology for online ordering or loyalty programs? For example, “TechBeans Café” might leverage an efficient app-based ordering system, catering to tech-savvy customers.

What’s Your Coffee Shop’s Value Proposition?

Defining your coffee shop’s  unique value proposition  is critical. Perhaps your establishment specializes in single-origin, ethically sourced beans, or you have a signature blend that customers rave about. Emphasize these unique offerings to distinguish your brand in the market.

Consider market gaps and evolving customer preferences. If there’s a growing preference for sustainable practices or an increasing demand for specific coffee types (organic, fair trade, etc.), tailoring your offerings to meet these needs can position your coffee shop favorably amidst competitors.

Tailoring your offerings to your location is essential. A coffee shop in a bustling business district might emphasize quick service and convenience for professionals on the go. At the same time, a suburban café could focus on creating a warm, family-friendly environment to attract locals seeking a relaxing spot for gatherings or leisurely coffee breaks.

Start by doing a SWOT analysis for the coffee shop. Point out Strengths (like skilled baristas and a variety of coffee options), Weaknesses (such as high running costs or lots of competitors), Opportunities (for instance, more people wanting unique coffee experiences), and Threats (like economic changes that might reduce how much people spend on coffee).

Marketing Plan

Then, make a marketing plan that shows how to draw in and keep customers. This could include ads aimed at the right people, deals to save money, an active and interesting online presence, and getting involved in the local area.

Marketing Channels

Utilize various marketing channels to reach and engage your audience effectively.

Digital Marketing

• Establish a Strong Online Presence:  Leverage social media platforms like Instagram for visually appealing coffee shots, TikTok for engaging short videos, and Twitter/Facebook for engaging with customers and sharing updates.
• Email Marketing:  Build an email list and send newsletters featuring new coffee blends, upcoming events, or promotions. Offer incentives for signing up, such as a discount on the first purchase.
• Website and SEO:  Develop a user-friendly website showcasing your menu, the story behind each coffee blend, and a blog section for brewing tips or coffee-related content. Optimize for local SEO to attract nearby customers.

Local Advertising

Connect with the local community to increase foot traffic:

• Flyers and Local Print:  Distribute eye-catching flyers in nearby offices, community centers, and partner businesses. Advertise in local newspapers or magazines to reach a broader audience.
• Community Engagement:  Host events like cupping sessions, live music nights, or art exhibitions to create a gathering space. Partner with local artists, musicians, or charities to foster community connections.
• Partnerships: C ollaborate with neighboring businesses, such as bakeries, bookstores, or gyms, for cross-promotions or joint events.

Promotional Activities

Attract customers with enticing offers and loyalty programs:

• Special Deals:  Launch seasonal or themed promotions to attract customers. For instance, during colder months, promote warm beverage options with discounts, or offer a summer-themed menu with refreshing iced coffees or specialty drinks.
• Loyalty Programs:  Implement a rewards system where customers earn points for every purchase. These points can be redeemed for free drinks, merchandise, or even exclusive experiences. This encourages repeat business and fosters a sense of loyalty among customers.
• Referral Incentives:  Encourage your existing customers to refer friends and family by offering incentives. This could be in the form of discounts or free beverages for successful referrals. Word-of-mouth remains a powerful tool in the coffee industry.

Sales Channels

Optimize  sales channels  to maximize revenue and customer satisfaction.

In-Store Upselling

Maximize each customer’s visit:

• Upsell Specialty Items:  Train baristas to suggest specialty drinks, pastries, or merchandise based on customers’ preferences or current promotions.
• Merchandising:  Display branded merchandise like travel mugs, brewing equipment, or specialty beans near the checkout counter to encourage additional purchases.

Subscription Services

Offer subscription-based models for regular income and customer retention:

• Coffee Delivery Subscription:  Introduce a coffee delivery subscription service where customers receive their preferred coffee blends regularly at a discounted rate. Customize subscription options based on frequency and quantity to cater to diverse preferences.
• VIP Memberships:  VIP memberships can provide exclusive benefits such as early access to new blends, members-only events, or personalized recommendations. These memberships create a sense of belonging and offer additional value to loyal customers.

Mobile Ordering and Pickup

Facilitate convenient ordering and pickup options:

• Mobile App Ordering:  Develop a user-friendly mobile app that allows customers to browse your menu, place orders, and make payments seamlessly. Offer incentives such as loyalty points or app-exclusive deals, to encourage app usage.
• Curbside Pickup:  Implement a curbside pickup option, allowing customers to order ahead and collect their beverages without leaving their vehicles. This convenience factor can attract busy individuals or those seeking contactless service.

Strategy Timeline

Lastly, set up a detailed timeline that marks important steps for the coffee shop’s start, marketing actions, growth in the number of customers, and goals for getting bigger. Make sure there’s a clear plan and goal for moving the business forward.

The Management section focuses on the coffee shop’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the coffee shop toward its financial and operational goals.

For your coffee shop business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your coffee shop’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your coffee shop business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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Complete Guides to Write Cafe Business Plan Step by Step

Great cafes combine exceptional coffee, a welcoming environment, and delectable treats to snack on while relaxing. The cafe is a low-risk business model with lower start-up costs and overhead than larger restaurants, but carving a niche for your cafe in the market and charting a path to success are critical considerations. There’s probably another cafe nearby, so how will you stand out? That’s why you need a cafe business plan. 

How to Write a Cafe Business Plan?

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The steps below will show you how to create a business plan that will help your cafe succeed.

Begin with Your Vision

A business plan is the first step toward making your cafe-ownership dream a reality, so dream big by sketching out your vision for your future cafe or coffee shop. What will the design of your cafe be? What kind of decorations will be used? What will its location be? Which items are you planning to sell? Who will go there? 

Take inspiration from your favorite cafes, images you’ve seen, favorite films or books, and even your travels. Then write it all down or pin it to a wall to make an inspirational mood board. It will be extremely motivating to look up at your initial vision and be reminded of the finish line as you spend hours working on your business proposal about coffee shop.

Research on Other Business Plans

Before you start writing your masterpiece, look at business plans from your industry, such as cafes, coffee shops, and quick-service restaurants. Examine how they structured their business and ensure that your cafe is on the right track.

Real-life cafe business plan examples from small business owners are also extremely valuable. Find current or former coffee shop owners, or even franchise owners, in your area and ask them how they succeeded and what they would do differently. 

While you’re at it, ask for recommendations for someone like an accountant to help you write your coffee business plan. Even if your future competitors are local business owners, they may be willing to share their experiences.

Creating a Business Plan Template

A blank page can be intimidating, but there are numerous cafe business plan samples available online to assist you in getting started. Below already outlined the basic sections you should include in your business plan below, along with additional tips on how to flesh each one out.

The Executive Summary

When a reader opens your business plan, the executive summary will be the first thing they see. This provides a high-level overview of all of your business plan’s sections. A well-written executive summary coffee shop will get you in the door, so read an example of business plan about coffee shop to get a sense of how the summary is worded and how all of the information is presented. There are a lot of cafe description samples to help you.

Consider who will read your business plan and tailor the opening paragraphs to your audience, just as you did for the customers who will visit your soon-to-be-opened cafe. Your executive summary is the most important marketing tool your cafe has as you prepare to open.

Read also: 3 Social Media Marketing Tools to Help Your Campaign Succeed

How will Your Cafe be Successful?

The second section provides answers to questions such as “What problem does your cafe solve?” and “How will your cafe contribute to the solution?” Perhaps there isn’t a coffee shop or cafe in a busy shopping center near you. Perhaps a downtown restaurant has recently closed.

This summary gives a quick overview of your industry, where your cafe will be located, and how it will stand out. Will your airport-area shop specialize in breakfast sandwiches? Do you want to sell your famous local pie? You’ve envisioned the success of your future cafe. Make certain that the readers of your business plan understand this as well.

Examine Your Competition

The following section of your business plan is known as the competitive analysis. It explains how your cafe will compete with other food and beverage businesses. Your competitors include nearby restaurants, coffee shops, and even public gathering places such as movie theaters. So now is the time to conduct competitor analysis coffee shop by visiting potential competitors and noting who their customers are, what’s for sale, and how much it costs.

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Understanding pricing strategies for similar businesses will help you determine how much you should charge for your coffee, pastries, sandwiches, and whatever else you’re selling in order to remain competitive in your market. Cafes and coffee shops can have high gross margins, but small cafes have notoriously low operating incomes (profits) due to high overhead costs.

However, if you take the time to conduct a thorough analysis of your competition, your cafe will have a better chance of success. By describing how your cafe will compete with similar businesses, you will persuade your reader (and, more importantly, yourself) that your goal of opening a restaurant or cozy cafe is both realistic and sustainable.

Examine Your Target Market

Your future customers are known as your market in your business plan, the number of potential customers is known as your market size, and how you’ll reach them is known as your marketing plan.

In your cafe or restaurant business plan , you will then divide your market into market segments. If your coffee shop or cafe is near an elementary school, for example, a market segment could be parents or caregivers who stop by for high-end coffee after dropping their children off at school. Or college students sipping espresso while studying for exams.

You can zero in on how to reach each type of customer by segmenting your market. As part of your market analysis coffee shop, your marketing plan (how you will advertise to your target market) will be outlined in your business plan.

What You Intend to Sell and How You Intend to Sell It

Now that you know what your competitors charge, you can develop a pricing strategy for your cafe. Be clever when developing your menu and pricing. Because you’ll be buying in bulk, try to use the same ingredients in a variety of dishes. 

Don’t be afraid to experiment. If you charge less for a croissant and coffee combo than for those items separately, you will encourage customers to buy more and reduce food waste. You’ll almost certainly end up changing your menu once you open for business. 

However, for the purposes of a business plan , you’ll need to know how much you intend to charge for the coffee or soup you intend to sell, which you’ll figure out by breaking down the ingredients required to make each item and researching your competition.

Make a Marketing Strategy

Your marketing plan can be integrated into your sales plan or a separate section. Will you post your specials on social media every morning? In addition to marketing, this is a great section to explain your plans for customer retention. It’s easier than ever to reward and keep the customers who will frequent your cafe with a cafe point of sale system.

Read also: 6 Examples Marketing Mix Example Coffee Shop Business

Structure of Ownership

Your company’s ownership structure will be included in your business plan. Explain how much experience you and your partners have and why you’re the right person (or people) for the job.

Your Business Strategy

Include information about your facilities, employees, equipment, and supplies in this section. Consider the direct costs of rent, barista wages, coffee beans, and technology. Try to squeeze as many services as you can out of a single tool, such as a POS system that allows your customers to check out, your part-time employees to clock in, and your cafe’s inventory to be managed.

Estimate how frequently you’ll need to replenish ingredients like flour and eggs. Consider your operating costs carefully during the business planning stage. Wherever possible, save money and don’t skimp on essentials like your espresso machine.

Planning Your Finances

You are now ready to create a financial plan coffee shop. This is typically the most time-consuming and crucial section of your business plan, particularly for lenders and investors. It should contain a summary of your startup costs, an income statement, projected cash flow, a balance sheet, and a break-even analysis.

Though creating a business plan may appear difficult, keep in mind that it is an important step to take before opening a cafe. A cafe can be successful is proven by a well-thought-out business plan.

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Capital for Small Coffee Shop in the Philippines

Coffee is a high demand beverage nationwide but has become a lifestyle beverage in the Philippines within the last few years.  According to Business Mirror , nine out of ten Filipino households regularly consume the hot coffee beverage.  Opening a coffee shop in the Philippines would be very ideal since the demand for coffee has increased.

Table of Contents

Two options for opening a coffee shop are purchasing a franchise, or to build from the ground up.  The capital needed to purchase a franchise coffee shop in the Philippines ranges anywhere from 182,000 to 445,000 pesos.  In order to build a coffee shop from the ground up in the Philippines will range between 245,000 and 900,000 pesos.

Should you purchase a franchise coffee shop or build a coffee shop from the ground up?  Either way, you will have a few areas of opportunity, which affect the capital needed to open a coffee shop. These include customer base and advertising, recipes, choice of vendors, and coffee shop design.

Franchise vs Ground up

On the other hand building a coffee shop from the ground up will give you more freedom.  Not only will you get the maximum profits the coffee shop makes, but you will the be one calling all the shots.

Customer Base and Advertising

When you purchase a franchise, you also get your advertising, marketing, and promotions completed for your coffee shop.  These will include any television and radio commercials, website and billboard ads, seasonal beverages, or sandwiches.

If you decide to advertise via social media, you can hire just a few people who can help manage your business’s social media pages. This will get the advertising done as well as save you from having to work those long hours at night.

There is nothing like trying something new.  When it comes to building a coffee shop from the ground up, you also get to decide what types of beverages and food you will serve in your shop, which gives you the opportunity to expand your customer base.  You are also able to experiment and invent new items for your menu.

Choice of Vendors

Building a coffee shop from the ground up would mean that you get to pick and choose the vendors you personally want to work alongside you.  The pro is that you can get what you need in your allotted budget.  The con is that you may not have the quality or the availability of the products you are looking for as you try to build your business.  However, as you grow, you can always change things up.

Coffee Shop Design

Additional considerations:.

Hiring a Staff

The Philippines once was a third world country but is now a developing nation.  With this in mind, it will make choosing a location for your coffee shop less stressful. As you will have your choice of prime locations, you will be able to serve many customers.

Frequently Asked Questions

If you decide, you can purchase an existing coffee shop.  This may be ideal since the location and customer base is already established for you.  Another benefit is having access to the financial history of the coffee shop.  If you negotiate with the seller, you may even be able to keep the current coffee equipment. Also, you may benefit from the stress-relieving factor that all of the major decisions have been made for you.

As I saw smaller and even some larger coffee shops in the neighborhood slowly lose customers to these giant coffee chains and slowly close up shop, I knew that I had to start getting creative…or go out of business.

Stick around, browse through my helpful blog and resources and enjoy your stay! With lots of LATTE LOVE!

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Related posts, tips for designing an effective coffee shop website, tips for choosing the right location for your coffee shop, top coffee shop pos systems, most effective ways to increase foot traffic to your coffee shop, best ways to market your coffee shop online.

Coffee Shop Business Plan

• Food Business Ideas

If you are planning to open a coffee shop business then, the basic and foremost thing is to prepare a realistic and detailed business plan. It will be beneficial in number of ways: It helps you to accomplish your desired goals and objectives, to make important decision easily and effectively in no time and to attract potential investors and lenders.

It is necessary that your coffee shop business plan attract investors and lenders. This should tell them about your goals and objectives, how you will be able to achieve to desired goals and objectives, management plan, marketing plan, financial plan, etc in brief.

Below is sample business plan for a coffee shop:

Taste blender

Business Plan for the Period

Starting January 2008

Business Overview

Business history : Taste blender is a new coffee shop, located in Old Town. We provide you best coffee, tea, cappuccino and frozen cappuccino. Currently there is no other coffee shop in this area. Our target audiences are students, friends, artists and families of all ages.

Vision and Mission Statement : Taste blender is the first coffee shop in Old town. Our mission is to serve best product at very reasonable price with pleasant atmosphere, which can be afforded by everyone easily.

Objectives : Our primary objectives over the next year are:

• Introduce homemade cookies, brownies and cakes.

• Renovate our space in Old Town.

• Offer free delivery service in schools, office, home.

• Create cozy and friendly environment.

Ownership : Taste Blender is a general partnership between Tessa and Michaela Mason.

Location : Taste Blender is located in Old Town, New York.

Products and Services : Description of Products and Services:

• Taste Blender will offer high quality coffee, tea, cappuccino and frozen cappuccino at a very reasonable price. All drinks are made with high quality ingredients

• Our next plan is to introduce homemade cookies, brownies and cakes. You can find car title loans with no income verification online if you need cash upfront to start your business.

Industry Overview

Market Research : There is no other coffee shop in Old Town.

Size of the Industry: Coffee shop industry is nationally very big, but in Old Town the nearest one is more than 6 or 7 miles away.

Industry Outlook : We can say that, our coffee has uniqueness, which will lead our business towards success and with the new innovations we will make changes in our ingredients and introduce new recipes.

Marketing Strategy

Target Markets: Our target audiences are students, friends, artists and families of all ages, who want to relax at nice, quiet and cozy place.

Description of Key Competitors : Our biggest competitor is “The perfect cup” with a “Tea room”.

Analysis of Competitive Position : Our friendly environment and low pricing strategy will be the key to our success.

Pricing Strategy :

• We will offer four sizes of drinks, small $2.00, medium $2.50 and large $3.00.

• Our cookies and brownies will sell for $1.50 each.

Promotion Strategy: We intend to advertise on Internet, television and newspaper.

Management and Staffing

Management Team : Tessa and Michaela will share their responsibilities equally.

Staffing : We will hire about three or four waiters.

Labor Market Issues : We will hire high school students who are looking for part time or full time job. In this area there are number of high school students looking for work.

Implementation Plan : Implementation Activities and Dates:

• Begin building renovation 12/08

• Complete renovation 2/15/08

• Begin preliminary advertising 2/15/08

• Purchase and setup equipment 2/15/08

• Open for business 3/1/08

Financial Plan : Your financial plan will begin with balance sheet, then your income statement and in last is your cash flow statement.

Conclusions : After making your coffee shop business plan the last part is conclusion. Conclude your entire coffee shop business plan, read and proofread your business plan in order to get error free draft.

iSource Biz provides custom and professional business plan writing services. For more information, please visit

Business Plan Business Plan Writers

by Ayaz Haider To get further help and information on market & investment research, you can visit: http://www.isourcebiz.com http://blog.isourcebiz.com URL: http://www.isourcebiz.com

Tags: Business business plan coffee coffee shop business

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How Much It Costs To Own A New Cafe? (6 Countries?)

If you’re dreaming of opening a coffee shop the first questions you’re probably asking yourself are: How much does it cost to open a coffee shop?

There’s no hard and fast answer on how much it costs to start a coffee shop. Your costs will depend upon the type of coffee shop you want to open, the costs of retail space in your community and many other variables.

How Much It Costs To Start A Cafe In USA?

Here are some ranges for the costs of opening various types of coffee businesses in USA:

• Coffee kiosk: $60,000 to $100,000
• Mobile coffee food truck: $50,000 to $100,000
• Coffee shop with seating: $80,000 to $250,000
• Coffee shop with seating and drive-thru: $80,000 to $275,000

If you already own a suitable building or have a complementary business such as a bakery, your costs might be much lower. If you want to add a brew bar to your coffee shop, add about $5,500 to $20,000 to your initial costs. In addition to start-up costs, you should have cash on hand to cover all of your operating expenses for the first six months.

Read the full article from  www.crimsoncup.com

Start-up Cost To Own A New Cafe In UK?

The lowest amount you could probably get away with is £20k. A big coffee shop on the high street could easily cost you £50k and of course, you could spend even more if you want to.

These are just rough estimates and there will be many more things to spend your money on but we hope it gives you a rough idea.

• £2,500 – £10,000 for espresso equipment
• £1,000 – £2,500 for dishwashers
• £1,000 – £2,000 for flooring
• £500 – £2,000 for ceiling
• £100 – £500 for painting
• £500+ general building work
• £500 – £3,000 for AC
• £250 – £1,000 for crockery
• £250 – £2,000 for a till
• £500 – £1,500 for accountancy
• £500 – £2,000 for a solicitor
• £500 – £1,500 for insurance
• £1,000 – £3,000 for initial stock
• £100 – £2,000 for signs and marketing
• plus working capital, deposit, rent, rates, planning applications, change of use, professional advice etc etc

Read the full article from  www.howtostartacoffeeshop.co.uk

Starting Your Own Coffee Shop: Opening & Running a Successful Coffee Business

How much it costs to start a cafe in singapore.

To start a decent cafe in Singapore, we are looking at a minimum sum of S$120,000 to S$150,000. The amount can vary quite a bit depending on the scale of your cafe. Some cafe owners spent S$120,000 while there are others who pumped in more than S$250,000.

The odds are very much stacked against independents who do not have sufficient financial capital and liquidity, the proper experience of running an F&B establishment, bargaining power, as well as the right connections to sustain their businesses. Moreover, many new hipster cafes are too often more hype than substance by focusing too much on the aesthetics and miscellaneous furbishing instead of working on the more important factors like food and service.

Read the full article from  www.ladyironchef.com

A Cafe Startup cost In Malaysia

First things first, you have to be financially secure to start a cafe. Investing in a cafe business will cost you at least RM500,000 to RM600,000 to cover your location rental, deposit, labour costs, equipment and supplies, amongst many other things.

That’s not all. Competition in the cafe and F&B industry is quite high these days so the chances are, you may not be making a lot of money starting out.

Read the full article from  says.com

How to Start a Cafe Plus Business Plan

• Everything you Need to Know About Starting a Cafe.
• Plus get a 425+ Page SBA Approved Lender Directory!
• 9 Chapter Business Plan (MS Word) - Full Industry Research - Included In the Guide!
• Same Day Shipping (If order is placed before 5PM EST)! Delivered as CD-ROM.
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How Much It Costs To Start A Cafe In Australia?

Starting up your business in Australia is a big investment, and needs to be taken very seriously. Besides the existing competitions between surrounding cafes (more than a thousand in Brisbane alone) and budgeting for land space, there are many more factors which can alter the cost needed.

That being said, all costs are still depending on individual cafes (as all cafes are special and unique), but the basic expenses are still more or less the same. To have a better overview, below is a list of main expenses, broken down to stages.

The total cost will round up to approximately 200k to 500k, so plan, plan, and plan again for your business!

Read the full article from  surpass.com.au

Start-up Costs For A Small Café In Japan

Here is the information to start a small cafe in Tokyo:

• 8-seater café in Meguro-ku with 2 staff, took 15,000,000 JPY in start-up costs (about $185,000 / £119,000). Monthly sales goal of 2,000,000 JPY ($25,000/£16,000), with current estimated sales at 680,000 JPY ($8,500/£5,300).
• Café with 20-seats in Setagaya-ku, 4 staff. 10,000,000 JPY cost at start-up ($125,000/ £79,000). Monthly sales goal 1,800,000 JPY ($22,600/£14,000), current estimated sales of 1,512,000 JPY ($19,000/£12,000).
• Café in Ishikawa prefecture with 28-seats and 2 staff took 8,000,000 JPY to get started ($100,000/ £63,000). No monthly goal stated, but current estimated sales of 600,000 JPY ($7,500/£4,700).

Read the full article from  alittleshopintokyo.blogspot.my

Think Twice Before Starting A Cafe

As you can see, there is no a fixed cost to start a new cafe but it is quite hard to own a cafe no matter where you are!

If you still consider starting a cafe business, we highly recommend you to read our article on  What You Need To Know To Start A Coffee Shop?

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How to Start a Pisonet or an Internet Cafe Business in the Philippines

The Internet Cafe was a godsend for those who needed work done online while on transit. It had only been around two years since the broadband technology was made available to the world.

The Philippines was still catching up with digital technology. Not many had smartphones yet because the early prototypes were expensive and faulty. The Blackberry was the status symbol for those who could afford. Today I could get things done from my smart phone. All I need is a place with Wi-Fi service.

By 2014, mobile technology officially displaced the desktop as the primary source of online traffic. Laptops, tablets and smart phones are evolving at a high rate. They are designed to manage more work and perform a wider variety of tasks than ever before.

Then you have the growing number of apps flooding the market. From gaming to fitness to hailing a cab, you can find an app for anything you want to be done.

With all the advances in digital technology and the Internet, one would be inclined to think that an Internet Cafe business in the Philippines would go the way of the dinosaurs.

Well, think again.

In the same way that technology evolves to find ways to make life and work easier and more convenient, the Filipino entrepreneur will always find the means to make a lucrative business model even better and offer more value.

Introducing the Pisonet.

Have you heard of the Pisonet? You’re probably reading this article because:

• You’ve heard of the Pisonet and wanted to start one out.
• You haven’t heard of the Pisonet and would like to learn more from your friends at tycoon.ph.
• You haven’t heard of the Pisonet, but the term itself is quite intriguing.

If you haven’t heard of the Pisonet, you’re not alone. Most people I’ve talked to have no clue what it is all about. But having the word “Piso” as the first syllable already connotes a value-based enterprise. And you are indeed correct!

Table of Contents

What is the Pisonet?

For some reason, my first encounter with new business ideas is always in Makati. This time I was in Makati Avenue when I received a call from an associate that I needed to scan and send a document to a potential client.

I went inside the first Internet Cafe I came across. It looked like the typical Internet shop yet strangely different. The computers resembled more like an arcade game or the slot machines in a casino.

Maybe the best way to describe how the computers looked would be an ATM with a provision for a keyboard. You can’t see the PC because it is housed in a wooden enclosure with a built-in slot.

According to the store manager, to activate the machine, you have to drop coins.

How much do these casino-like, Internet shops charge? One peso for every four minutes!

The Pisonet is the newest godsend to those who need access to a PC while on transit.

You can see more Pisonet-type Internet Cafe business in the Philippines. I’ve seen a number of them set up inside a subdivision or neighborhood. Many entrepreneurs convert the front part of their homes into a Pisonet.

But what is the difference between a Pisonet and an Internet Cafe?

Difference Between a Pisonet and an Internet Cafe

Other than their appearance, the biggest difference between a Pisonet and the traditional Internet Cafe is their price.

The Pisonet is a more customer and budget-friendly version of the Internet Cafe. It is a welcome change for office workers who only need a few minutes to accomplish tasks and students who have little means of paying for a full hour’s use of the Internet.

Before the Pisonet became popular, you would have to pay the Internet Cafe the minimum charge per hour even if you only used their facilities for 10 minutes. An Internet Cafe would charge around 30 to 60 Pesos per hour.

The Pisonet started gaining traction in 2010. You may have noticed that a few years later, some Internet Cafe outlets began lowering their minimum charge to 30 Pesos per half hour.

Still, you get more value by patronizing a Pisonet. An hour’s use of a Pisonet’s computer will only cost you 15 Pesos!

So do you want to start a Pisonet or an Internet Cafe business in the Philippines? If you do, read on! We have some valuable information that you need to know!

Preparing a Pisonet or Internet Cafe Business Plan

The first step in your pursuit of an idea is to prepare a Business Plan. Everything sounds good in theory until you subject the idea to different conditions and scenarios.

A Business Plan is not a crystal ball; it will not tell you if your venture will succeed 100%. But if becomes an important reference for making crucial business decisions. It will give you clues on whether you should pursue the idea or not.

Related:  Top 10 Home-Based Business Ideas and Opportunities for 2017

If you don’t know how to make a Business Plan, outsource it to someone who does. But generally, the information you need to know are as follows:

• Does the Pisonet venture have a ready market for its services?
• How much capital do I need to put up a Pisonet?
• What is my break-even point?
• How many sales should I target every day?
• What are my risks?

A Business Plan consists of 3 types of studies:

• Market Study
• Financial Study
• Marketing Study

In this article, we will only focus on the Market and Financial study. Only when you find the Pisonet venture feasible or viable should you perform a marketing study. You should find out first if there are end users for your service and if so if you could afford to put one up.

Is There a Market for a Pisonet or Internet Cafe Business in the Philippines?

Critics of the Pisonet or Internet Cafe business will point out to the increasing use of mobile devices as the main reason why this venture will not make money.

Tell that to the average Filipino gamer.

You’ll be hard-pressed to find a Filipino without a smart phone or a tablet. Mobile devices are mass-produced, and you can buy them anywhere. Flooding the market with different types and brands of mobile devices brings their prices down. 100% sure, the gamers you see in these Pisonet shops own mobile devices.

But they still prefer the Pisonet because you can’t beat the experience of playing from a PC that is built for gaming. It is also an activity they can share with their friends.

You also have to consider the statistical fact that 95% of Internet users in the Philippines prefer pre-paid services to post-paid subscriptions. 80% avail of the lowest-tier Internet service plans or from 1 to 3 Mbps.

If you want to get work done faster or assure a drop free Skype call with a client, it would be a good idea to head off to the nearby Pisonet. Internet service providers or ISP’s offer attractive packages to entrepreneurs that will assure their customers of high-speed surfing and stable video streaming experience.

This is the reason why you will often see home-based workers or telecommuters conduct their business at Pisonets. The Philippines has one of the most expensive yet worse Internet services in the world . The Pisonet is an affordable way to run your business by taking advantage of their higher bandwidth, faster speeds and back up services.

How Much Will It Cost to Start a Pisonet Business?

Despite losing its lead to mobile devices and seeing its global sales take a plunge since 2011, the price of the personal desktop or PC continues to range on the high side.

An entry-level PC for gaming would cost 15,000 Pesos. It should have the following features:

• AMD A4 6300 up to 3.9GHz Turbo
• 500GB/ 6GB Hard Drive
• 4GB DDR3 1600MHz Memory
• Built-in onboard HD 8370D 760MHz Graphics
• Front case mounted 12cm LED lighted fan
• Rear case mounted 8cm Black fan
• 650W power supply
• Multimedia headset with built-in microphone
• Creative SBS A60 multimedia 2.0 speakers
• A4 Tech keyboard
• A4 Tech optical mouse
• Free software installed

This type of PC can also be used to conduct office work, but you have to buy original programs for MS Windows. Some stores will include a licensed copy for 6,000 Pesos. Of course, you will also need to install original anti-virus software

All told, be prepared to spend approximately 25,000 Pesos per PC. Of course, each PC should have its own cabinet with slot and chair. Thus your total cost per PC would be:

Other pieces of hardware you would need are:

• Inkjet Printer/Copier/Scanner – 7,000 Pesos
• Fax Machine – 6,000

If your Business Plan presents the Pisonet as a viable venture, you should still start out small. This way it will be easier to manage and uncover problems in your business model.

A Pisonet with 5 computers will cost you:

If you plan to set up your Pisonet in your home, you will have to spend for leasehold improvements. For minor improvements, a good benchmark would be 10,000 Pesos for a square meter. You should always maximize the available area for revenue-generating activities.

Assuming 1.6 square meters per workstation, for five desktops, you would need approximately 10 square meters of space. Overall, based on a 70% allocation for revenue-generating activities, your total floor area for the Pisonet should be 15 to 20 square meters.

At 10,000 Pesos per square meter, you should budget 150,000 to 200,000 for leasehold improvements. Leasehold improvement should also factor in expansion plans. The setup should allow you to increase the number of PC stations if the business is booming.

Remember, you have to make sure your Pisonet is air-conditioned. A 20 square meter area should not require more than a 1.5 HP air condition. If your budget allows, go for an inverter type unit because it will save you in power bills. Remember, with a Pisonet; the air-conditioner will be running full-time during its period of operation.

A 1.5 split type air-conditioner will cost you around 20,000 to 25,000 excluding the cost of installation.

Related:  The Real Cost of Starting a Small Business in the Philippines

If the cost of capitalizing a Pisonet is higher than you expected, do not be discouraged! In the first place, these figures are only estimates. If you have experience in construction or know someone who does, you can drastically lower leasehold improvements.

What are the Monthly Costs of Running a Pisonet?

Setting up your Pisonet from home will entail improvement costs, but in the long run, it will save you from paying rent. Of course, if you want an accurate determination of your profitability, you should incorporate an estimated figure for rent in your income statement.

Like any other business, you will incur monthly expenses when running a Pisonet. Here is an estimate summary of expenses for a Pisonet business with five computers:

The cost of Internet bandwidth in the Philippines has dropped considerably in the last five years. The figure indicated here covers 10Mbps plus the cost of a landline subscription.

How Can I Fund My Pisonet?

Funding a business can be a make or break situation. Even if your financial study shows it is a feasible idea, if there’s no capital, there is no business.

When it comes to raising capital, you have to be creative and explore a variety of options:

• Bootstrapping – This is probably the riskiest approach because you are funding your business idea with your life savings. If this were your decision, it would be best to have a full-time job to have a source of income. You will need an influx of money to support your business and your day-to-day expenses.
• Get Partners – If you have people you believe you can trust to have onboard as partners, offer them 49% equity at the most so you will still have majority control. Contributions can be in the form of equipment (PCs, workstations) or straight cash. Make sure these are people you can work with. Oftentimes, relationships get compromised because of business.
• Get Investors – Unlike partners; investors do not have to be involved in the day-to-day operations of the Pisonet unless specified in the agreement.
• Business Loan –  Some banks offer small business loans to entrepreneurs. Just keep in mind, banks offer high lending rates, have strict qualifying guidelines and issue tight contracts.
• Negotiate Terms – Computers are a depreciating asset and subject to brisk wear and tear. In fact, that is one of your biggest problems as a Pisonet operator.

Kids can be unforgiving when using the PC for gaming. Instead of buying, negotiate for lease terms with PC suppliers.

There are also suppliers of PC’s that have already been built for use in a Pisonet. Some suppliers are open to lease terms. This will allow you to pay out from sales and lower your initial cash outlay.

What’s more, you can sell the units back to the supplier and get new ones at the end of the term.

Before making a decision on leasing or buying Pisonet-ready PCs from a vendor, review the specs of each unit and see if these are capable of supporting operations.

If you are not sure, ask a friend who is knowledgeable about computer hardware to review the specs, inspect and test the units being offered.

What Should Be Your Target Sales?

Given the following assumptions:

• Charge – 1 Peso per 4 minutes Internet time
• Number of PCs – 5
• Operating Hours – 8
• Work Days – 30

The maximum sale a PC can generate is 120 Pesos per day. If all five computers are working full capacity, you can make 600 Pesos per day or 18,000 per month gross sales.

At 18,000 Pesos per month, you will be able to cover your monthly costs. But it is not realistic to expect your Pisonet to be working full capacity every day. You will have peak hours and slack hours just like any other business.

How Can You Increase Sales?

10Mbps can still accommodate five more PCs. So by increasing the number of PCs, you improve your chances of earning more money without significantly adding to your monthly expenses.

But you have to keep track of your financials to make sure adding more PCs is warranted. Otherwise, you’ll be stuck with non-performing assets.

You can also sell other items in your Pisonet:

• Pre-paid cards
• Cell Phone load
• School Supplies
• Trading Cards
• Comic Books

Or offer services:

• Graphic Design for marketing collaterals and calling cards
• Computer instruction
• Photo Imaging or Retouching

The idea is to find ways to maximize the revenue-generating potential of your Pisonet. Give people more reasons to visit your Pisonet than just Internet surfing and gaming.

Related:  10 Biggest Digital Marketing Mistakes Made by Entrepreneurs

A Pisonet remains an innovative business idea that brings more value to the traditional Internet Cafe model. But given its low-cost approach, the challenge facing the entrepreneur is to maximize sales volume.

You should start out small until your learning curve begins to slope and you’ve identified the pain points of the business. It may take awhile to generate traction, but expansion should be your ultimate goal.

When your business starts to improve its profit position, give more to your customers by upgrading the computers and enhancing their experience. If you are in good standing with your supplier, you can easily get generous concessions for better computers. In a tightly-competitive industry, customer retention strategies should be held in the same regard as new customer creation.

Roel Manarang is a seasoned entrepreneur who helps businesses succeed through design and digital marketing. With over 10 years of experience, he has assisted 170+ global companies. Roel is the founder of Workroom , a digital marketing company, and Tycoon Philippines , an acclaimed business and finance blog. Find him on LinkedIn .

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11.4 The Business Plan

Learning objectives.

By the end of this section, you will be able to:

• Describe the different purposes of a business plan
• Describe and develop the components of a brief business plan
• Describe and develop the components of a full business plan

Unlike the brief or lean formats introduced so far, the business plan is a formal document used for the long-range planning of a company’s operation. It typically includes background information, financial information, and a summary of the business. Investors nearly always request a formal business plan because it is an integral part of their evaluation of whether to invest in a company. Although nothing in business is permanent, a business plan typically has components that are more “set in stone” than a business model canvas , which is more commonly used as a first step in the planning process and throughout the early stages of a nascent business. A business plan is likely to describe the business and industry, market strategies, sales potential, and competitive analysis, as well as the company’s long-term goals and objectives. An in-depth formal business plan would follow at later stages after various iterations to business model canvases. The business plan usually projects financial data over a three-year period and is typically required by banks or other investors to secure funding. The business plan is a roadmap for the company to follow over multiple years.

Some entrepreneurs prefer to use the canvas process instead of the business plan, whereas others use a shorter version of the business plan, submitting it to investors after several iterations. There are also entrepreneurs who use the business plan earlier in the entrepreneurial process, either preceding or concurrently with a canvas. For instance, Chris Guillebeau has a one-page business plan template in his book The $100 Startup . 48 His version is basically an extension of a napkin sketch without the detail of a full business plan. As you progress, you can also consider a brief business plan (about two pages)—if you want to support a rapid business launch—and/or a standard business plan.

As with many aspects of entrepreneurship, there are no clear hard and fast rules to achieving entrepreneurial success. You may encounter different people who want different things (canvas, summary, full business plan), and you also have flexibility in following whatever tool works best for you. Like the canvas, the various versions of the business plan are tools that will aid you in your entrepreneurial endeavor.

Business Plan Overview

Most business plans have several distinct sections ( Figure 11.16 ). The business plan can range from a few pages to twenty-five pages or more, depending on the purpose and the intended audience. For our discussion, we’ll describe a brief business plan and a standard business plan. If you are able to successfully design a business model canvas, then you will have the structure for developing a clear business plan that you can submit for financial consideration.

Both types of business plans aim at providing a picture and roadmap to follow from conception to creation. If you opt for the brief business plan, you will focus primarily on articulating a big-picture overview of your business concept.

The full business plan is aimed at executing the vision concept, dealing with the proverbial devil in the details. Developing a full business plan will assist those of you who need a more detailed and structured roadmap, or those of you with little to no background in business. The business planning process includes the business model, a feasibility analysis, and a full business plan, which we will discuss later in this section. Next, we explore how a business plan can meet several different needs.

Purposes of a Business Plan

A business plan can serve many different purposes—some internal, others external. As we discussed previously, you can use a business plan as an internal early planning device, an extension of a napkin sketch, and as a follow-up to one of the canvas tools. A business plan can be an organizational roadmap , that is, an internal planning tool and working plan that you can apply to your business in order to reach your desired goals over the course of several years. The business plan should be written by the owners of the venture, since it forces a firsthand examination of the business operations and allows them to focus on areas that need improvement.

Refer to the business venture throughout the document. Generally speaking, a business plan should not be written in the first person.

A major external purpose for the business plan is as an investment tool that outlines financial projections, becoming a document designed to attract investors. In many instances, a business plan can complement a formal investor’s pitch. In this context, the business plan is a presentation plan, intended for an outside audience that may or may not be familiar with your industry, your business, and your competitors.

You can also use your business plan as a contingency plan by outlining some “what-if” scenarios and exploring how you might respond if these scenarios unfold. Pretty Young Professional launched in November 2010 as an online resource to guide an emerging generation of female leaders. The site focused on recent female college graduates and current students searching for professional roles and those in their first professional roles. It was founded by four friends who were coworkers at the global consultancy firm McKinsey. But after positions and equity were decided among them, fundamental differences of opinion about the direction of the business emerged between two factions, according to the cofounder and former CEO Kathryn Minshew . “I think, naively, we assumed that if we kicked the can down the road on some of those things, we’d be able to sort them out,” Minshew said. Minshew went on to found a different professional site, The Muse , and took much of the editorial team of Pretty Young Professional with her. 49 Whereas greater planning potentially could have prevented the early demise of Pretty Young Professional, a change in planning led to overnight success for Joshua Esnard and The Cut Buddy team. Esnard invented and patented the plastic hair template that he was selling online out of his Fort Lauderdale garage while working a full-time job at Broward College and running a side business. Esnard had hundreds of boxes of Cut Buddies sitting in his home when he changed his marketing plan to enlist companies specializing in making videos go viral. It worked so well that a promotional video for the product garnered 8 million views in hours. The Cut Buddy sold over 4,000 products in a few hours when Esnard only had hundreds remaining. Demand greatly exceeded his supply, so Esnard had to scramble to increase manufacturing and offered customers two-for-one deals to make up for delays. This led to selling 55,000 units, generating $700,000 in sales in 2017. 50 After appearing on Shark Tank and landing a deal with Daymond John that gave the “shark” a 20-percent equity stake in return for $300,000, The Cut Buddy has added new distribution channels to include retail sales along with online commerce. Changing one aspect of a business plan—the marketing plan—yielded success for The Cut Buddy.

Link to Learning

Watch this video of Cut Buddy’s founder, Joshua Esnard, telling his company’s story to learn more.

If you opt for the brief business plan, you will focus primarily on articulating a big-picture overview of your business concept. This version is used to interest potential investors, employees, and other stakeholders, and will include a financial summary “box,” but it must have a disclaimer, and the founder/entrepreneur may need to have the people who receive it sign a nondisclosure agreement (NDA) . The full business plan is aimed at executing the vision concept, providing supporting details, and would be required by financial institutions and others as they formally become stakeholders in the venture. Both are aimed at providing a picture and roadmap to go from conception to creation.

Types of Business Plans

The brief business plan is similar to an extended executive summary from the full business plan. This concise document provides a broad overview of your entrepreneurial concept, your team members, how and why you will execute on your plans, and why you are the ones to do so. You can think of a brief business plan as a scene setter or—since we began this chapter with a film reference—as a trailer to the full movie. The brief business plan is the commercial equivalent to a trailer for Field of Dreams , whereas the full plan is the full-length movie equivalent.

Brief Business Plan or Executive Summary

As the name implies, the brief business plan or executive summary summarizes key elements of the entire business plan, such as the business concept, financial features, and current business position. The executive summary version of the business plan is your opportunity to broadly articulate the overall concept and vision of the company for yourself, for prospective investors, and for current and future employees.

A typical executive summary is generally no longer than a page, but because the brief business plan is essentially an extended executive summary, the executive summary section is vital. This is the “ask” to an investor. You should begin by clearly stating what you are asking for in the summary.

In the business concept phase, you’ll describe the business, its product, and its markets. Describe the customer segment it serves and why your company will hold a competitive advantage. This section may align roughly with the customer segments and value-proposition segments of a canvas.

Next, highlight the important financial features, including sales, profits, cash flows, and return on investment. Like the financial portion of a feasibility analysis, the financial analysis component of a business plan may typically include items like a twelve-month profit and loss projection, a three- or four-year profit and loss projection, a cash-flow projection, a projected balance sheet, and a breakeven calculation. You can explore a feasibility study and financial projections in more depth in the formal business plan. Here, you want to focus on the big picture of your numbers and what they mean.

The current business position section can furnish relevant information about you and your team members and the company at large. This is your opportunity to tell the story of how you formed the company, to describe its legal status (form of operation), and to list the principal players. In one part of the extended executive summary, you can cover your reasons for starting the business: Here is an opportunity to clearly define the needs you think you can meet and perhaps get into the pains and gains of customers. You also can provide a summary of the overall strategic direction in which you intend to take the company. Describe the company’s mission, vision, goals and objectives, overall business model, and value proposition.

Rice University’s Student Business Plan Competition, one of the largest and overall best-regarded graduate school business-plan competitions (see Telling Your Entrepreneurial Story and Pitching the Idea ), requires an executive summary of up to five pages to apply. 51 , 52 Its suggested sections are shown in Table 11.2 .

Are You Ready?

Create a brief business plan.

Fill out a canvas of your choosing for a well-known startup: Uber, Netflix, Dropbox, Etsy, Airbnb, Bird/Lime, Warby Parker, or any of the companies featured throughout this chapter or one of your choice. Then create a brief business plan for that business. See if you can find a version of the company’s actual executive summary, business plan, or canvas. Compare and contrast your vision with what the company has articulated.

• These companies are well established but is there a component of what you charted that you would advise the company to change to ensure future viability?
• Map out a contingency plan for a “what-if” scenario if one key aspect of the company or the environment it operates in were drastically is altered?

Full Business Plan

Even full business plans can vary in length, scale, and scope. Rice University sets a ten-page cap on business plans submitted for the full competition. The IndUS Entrepreneurs , one of the largest global networks of entrepreneurs, also holds business plan competitions for students through its Tie Young Entrepreneurs program. In contrast, business plans submitted for that competition can usually be up to twenty-five pages. These are just two examples. Some components may differ slightly; common elements are typically found in a formal business plan outline. The next section will provide sample components of a full business plan for a fictional business.

Executive Summary

The executive summary should provide an overview of your business with key points and issues. Because the summary is intended to summarize the entire document, it is most helpful to write this section last, even though it comes first in sequence. The writing in this section should be especially concise. Readers should be able to understand your needs and capabilities at first glance. The section should tell the reader what you want and your “ask” should be explicitly stated in the summary.

Describe your business, its product or service, and the intended customers. Explain what will be sold, who it will be sold to, and what competitive advantages the business has. Table 11.3 shows a sample executive summary for the fictional company La Vida Lola.

Business Description

This section describes the industry, your product, and the business and success factors. It should provide a current outlook as well as future trends and developments. You also should address your company’s mission, vision, goals, and objectives. Summarize your overall strategic direction, your reasons for starting the business, a description of your products and services, your business model, and your company’s value proposition. Consider including the Standard Industrial Classification/North American Industry Classification System (SIC/NAICS) code to specify the industry and insure correct identification. The industry extends beyond where the business is located and operates, and should include national and global dynamics. Table 11.4 shows a sample business description for La Vida Lola.

Industry Analysis and Market Strategies

Here you should define your market in terms of size, structure, growth prospects, trends, and sales potential. You’ll want to include your TAM and forecast the SAM . (Both these terms are discussed in Conducting a Feasibility Analysis .) This is a place to address market segmentation strategies by geography, customer attributes, or product orientation. Describe your positioning relative to your competitors’ in terms of pricing, distribution, promotion plan, and sales potential. Table 11.5 shows an example industry analysis and market strategy for La Vida Lola.

Competitive Analysis

The competitive analysis is a statement of the business strategy as it relates to the competition. You want to be able to identify who are your major competitors and assess what are their market shares, markets served, strategies employed, and expected response to entry? You likely want to conduct a classic SWOT analysis (Strengths Weaknesses Opportunities Threats) and complete a competitive-strength grid or competitive matrix. Outline your company’s competitive strengths relative to those of the competition in regard to product, distribution, pricing, promotion, and advertising. What are your company’s competitive advantages and their likely impacts on its success? The key is to construct it properly for the relevant features/benefits (by weight, according to customers) and how the startup compares to incumbents. The competitive matrix should show clearly how and why the startup has a clear (if not currently measurable) competitive advantage. Some common features in the example include price, benefits, quality, type of features, locations, and distribution/sales. Sample templates are shown in Figure 11.17 and Figure 11.18 . A competitive analysis helps you create a marketing strategy that will identify assets or skills that your competitors are lacking so you can plan to fill those gaps, giving you a distinct competitive advantage. When creating a competitor analysis, it is important to focus on the key features and elements that matter to customers, rather than focusing too heavily on the entrepreneur’s idea and desires.

Operations and Management Plan

In this section, outline how you will manage your company. Describe its organizational structure. Here you can address the form of ownership and, if warranted, include an organizational chart/structure. Highlight the backgrounds, experiences, qualifications, areas of expertise, and roles of members of the management team. This is also the place to mention any other stakeholders, such as a board of directors or advisory board(s), and their relevant relationship to the founder, experience and value to help make the venture successful, and professional service firms providing management support, such as accounting services and legal counsel.

Table 11.6 shows a sample operations and management plan for La Vida Lola.

Marketing Plan

Here you should outline and describe an effective overall marketing strategy for your venture, providing details regarding pricing, promotion, advertising, distribution, media usage, public relations, and a digital presence. Fully describe your sales management plan and the composition of your sales force, along with a comprehensive and detailed budget for the marketing plan. Table 11.7 shows a sample marketing plan for La Vida Lola.

Financial Plan

A financial plan seeks to forecast revenue and expenses; project a financial narrative; and estimate project costs, valuations, and cash flow projections. This section should present an accurate, realistic, and achievable financial plan for your venture (see Entrepreneurial Finance and Accounting for detailed discussions about conducting these projections). Include sales forecasts and income projections, pro forma financial statements ( Building the Entrepreneurial Dream Team , a breakeven analysis, and a capital budget. Identify your possible sources of financing (discussed in Conducting a Feasibility Analysis ). Figure 11.19 shows a template of cash-flow needs for La Vida Lola.

Entrepreneur In Action

Laughing man coffee.

Hugh Jackman ( Figure 11.20 ) may best be known for portraying a comic-book superhero who used his mutant abilities to protect the world from villains. But the Wolverine actor is also working to make the planet a better place for real, not through adamantium claws but through social entrepreneurship.

A love of java jolted Jackman into action in 2009, when he traveled to Ethiopia with a Christian humanitarian group to shoot a documentary about the impact of fair-trade certification on coffee growers there. He decided to launch a business and follow in the footsteps of the late Paul Newman, another famous actor turned philanthropist via food ventures.

Jackman launched Laughing Man Coffee two years later; he sold the line to Keurig in 2015. One Laughing Man Coffee café in New York continues to operate independently, investing its proceeds into charitable programs that support better housing, health, and educational initiatives within fair-trade farming communities. 55 Although the New York location is the only café, the coffee brand is still distributed, with Keurig donating an undisclosed portion of Laughing Man proceeds to those causes (whereas Jackman donates all his profits). The company initially donated its profits to World Vision, the Christian humanitarian group Jackman accompanied in 2009. In 2017, it created the Laughing Man Foundation to be more active with its money management and distribution.

• You be the entrepreneur. If you were Jackman, would you have sold the company to Keurig? Why or why not?
• Would you have started the Laughing Man Foundation?
• What else can Jackman do to aid fair-trade practices for coffee growers?

What Can You Do?

Textbooks for change.

Founded in 2014, Textbooks for Change uses a cross-compensation model, in which one customer segment pays for a product or service, and the profit from that revenue is used to provide the same product or service to another, underserved segment. Textbooks for Change partners with student organizations to collect used college textbooks, some of which are re-sold while others are donated to students in need at underserved universities across the globe. The organization has reused or recycled 250,000 textbooks, providing 220,000 students with access through seven campus partners in East Africa. This B-corp social enterprise tackles a problem and offers a solution that is directly relevant to college students like yourself. Have you observed a problem on your college campus or other campuses that is not being served properly? Could it result in a social enterprise?

Work It Out

Franchisee set out.

A franchisee of East Coast Wings, a chain with dozens of restaurants in the United States, has decided to part ways with the chain. The new store will feature the same basic sports-bar-and-restaurant concept and serve the same basic foods: chicken wings, burgers, sandwiches, and the like. The new restaurant can’t rely on the same distributors and suppliers. A new business plan is needed.

• What steps should the new restaurant take to create a new business plan?
• Should it attempt to serve the same customers? Why or why not?

This New York Times video, “An Unlikely Business Plan,” describes entrepreneurial resurgence in Detroit, Michigan.

• 48 Chris Guillebeau. The $100 Startup: Reinvent the Way You Make a Living, Do What You Love, and Create a New Future . New York: Crown Business/Random House, 2012.
• 49 Jonathan Chan. “What These 4 Startup Case Studies Can Teach You about Failure.” Foundr.com . July 12, 2015. https://foundr.com/4-startup-case-studies-failure/
• 50 Amy Feldman. “Inventor of the Cut Buddy Paid YouTubers to Spark Sales. He Wasn’t Ready for a Video to Go Viral.” Forbes. February 15, 2017. https://www.forbes.com/sites/forbestreptalks/2017/02/15/inventor-of-the-cut-buddy-paid-youtubers-to-spark-sales-he-wasnt-ready-for-a-video-to-go-viral/#3eb540ce798a
• 51 Jennifer Post. “National Business Plan Competitions for Entrepreneurs.” Business News Daily . August 30, 2018. https://www.businessnewsdaily.com/6902-business-plan-competitions-entrepreneurs.html
• 52 “Rice Business Plan Competition, Eligibility Criteria and How to Apply.” Rice Business Plan Competition . March 2020. https://rbpc.rice.edu/sites/g/files/bxs806/f/2020%20RBPC%20Eligibility%20Criteria%20and%20How%20to%20Apply_23Oct19.pdf
• 53 “Rice Business Plan Competition, Eligibility Criteria and How to Apply.” Rice Business Plan Competition. March 2020. https://rbpc.rice.edu/sites/g/files/bxs806/f/2020%20RBPC%20Eligibility%20Criteria%20and%20How%20to%20Apply_23Oct19.pdf; Based on 2019 RBPC Competition Rules and Format April 4–6, 2019. https://rbpc.rice.edu/sites/g/files/bxs806/f/2019-RBPC-Competition-Rules%20-Format.pdf
• 54 Foodstart. http://foodstart.com
• 55 “Hugh Jackman Journey to Starting a Social Enterprise Coffee Company.” Giving Compass. April 8, 2018. https://givingcompass.org/article/hugh-jackman-journey-to-starting-a-social-enterprise-coffee-company/

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Eschewing traditional salvaged and vintage decor, the Bulka Cafe and Bakery breaks out of the coffee house mold, instead favoring earthy and modern aesthetics. In fact, the Crosby Studios design looks more like a garden utility building or a summer home. On the ceiling, the pipes are exposed but painted white, a contemporary take on an industrial look. For a darker yet subtle effect, the solid wood floors and the tabletops are stained gray with a special shaded oil finish. The rear wall has more punch, painted with a high-contrast geometric pattern. The other walls are carved out with floor-to-ceiling glazed windows, bringing in natural light and views of the park.

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