How to Start a Coffee Shop With No Money: 6 Options
Are you an entrepreneur and you have some money issue? If you say yes! Many entrepreneurs have the same issue that is money.
We discussed that our earlier post that name is starting a coffee shop business and then we get the same question from many readers. Ok, that’s good we get it. But how to start a coffee shop with no money?
I have to admit it’s a really difficult question. If you want to know the short answer that is really possible that with no money. Yes, it’s possible, but it will not be easy.
For long answer.
Let’s begin.
#0. Getting Started
You know earning a money that it’s not easy, right? Well, if we want to start any type of business with no money, we will need someone help.
I have to be honest that getting help anyone will not be easy, especially if the subject is money. We have to convince them. To do this we must absolutely be sure what we are doing.
Even if you have a perfect idea about a coffee shop or café business, it’s may not be enough to convince them. You will need an excellent business plan.
Why Business Plan So Important for Coffee Shop Business
It’s important because we have to convince them 100% percent that it will be good business and they will not give them money to you for nothing.
We want a money for coffee shop business, right? But, do you know how much money you need to start your own coffee shop? They will want to see it. Also, they will want to see after you get their money you can able to success in your coffee shop. A business plan can answer all that question. So, start to write your coffee shop business plan.
Let’s say we wrote our business plan and that would be really good. What’s the next step? How to get our money that we need.
#1. Angel Investors
Angel investors who are looking to invest their money for start-up or early stage any type of business. You are a perfect situation to invest. If you are looking money you should really think that option.
What is The Process
Getting investment for your coffee shop or café business can consume a long time. And the most important to this process that you should meet the right person.
When you find the right person or organization they will not only invest in your business. Some angels also mentoring/coaching your business to achieve your goals.
Generally, the process ( Applying- Meeting-Investment ) it takes 4-6 months.
How Much Money I Can Get For My Coffee Shop
Well, it depends on how much money you need. Typically it’s around $50,000$ – $100, 000 but remember it’s always changing business to business it can be higher or lower.
#2. Crowdfunding
Let’s say you need $150,000 to open your own coffee shop and you don’t have that money. You will need an investor, right? Well, getting all that money from one investor can be difficult. But, what if I say you can get that money from 1500 investors? It looks easier to achieve to 1000$ to invest your coffee shop, right?
Ok. How to do this? You can do this with crowdfunding. Today, helping with the internet crowdfunding became very popular. And it’s a really good idea for entrepreneurs to find capital.
Process?
Let’s see what is the process – Basically – for crowdfunding.
- First, you create your project and share to people. You can use the internet sites ( gofundme, kickstarter, foodstart, IndieGoGo) to share your project for getting capital.
- People will invest your project.
- If you achieve your goal you will get your money that you need to start your coffee shop.
Advantages
- If you have a really good idea or concept you will easily find a capital from these platforms.
- Generally, you do not share your company that you want to start. You can offer gift cards, discount, free coffee to people to invest. That offers also good for marketing.
- People can share their opinion, feedback for your start-up coffee shop and that can be helpful to improve your business.
Bottom Line
When you achieve your goal, you will payment to sites of the total amount. It’s changing site by site. Average fees around %5-15.
#3. Bank Loans
My personal opinion that finding capital to your start-up coffee shop business or coffee house from bank loans that is the most challenging situation. Banks want to be sure that you can able to get back to the money that they gave.
After you write your business plan for your coffee shop, you can apply banks for small business loans. If they like your plan they can borrow some money to open your business.
#4. Personal Business Network
To find investors, you can use your personal business network. If you think open a coffee shop business, you probably know someone in that industry, right?
You can show them your business plan. If they believe that is a profitable business, they can invest their money for your business.
#5. Friends
You can simply want help from your friends to open your coffee shop. Those people already know you. And trust you. It’s always a good idea that wants help from friends.
#6. Family
Ok. This option looks really obvious. When the subject is the family they will probably want to help. Even if you don’t have an excellent plan they can still help you. Don’t hesitate to ask your family.
Conclusion
When you don’t have money or enough money, opening a coffee shop business can more difficult. But, remember you are not the only one in that situation. It’s a really common situation for entrepreneurs.
If you have a good idea just write a great business plan for this. And then use those options that we gave it to you in this article. If you have any question or you want to share something with us, you can comment below.
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Good luck everyone.
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