by Leah and Elina Furman Published April 7, 1997 read more Small Business Brainstorms	Mmmmm! A steaming mug of coffee — you can already smell its aroma and feel the velvety richness tingling your taste buds. Go ahead, admit it — your pulse quickens at the mere thought of that glorious concoction. Java gourmands have been coming out of the closet in droves since the early 1990s, and gourmet coffee sales have risen a sharp 33 percent. According to the National Coffee Association, Americans consume over 400 million cups of coffee on a daily basis. That's a lot of joe, Jack. What we have here is a national caffeine-swilling frenzy. And entrepreneurs are capitalizing on the American java jones big-time. You've now got your coffee ice-cream, coffee candy, coffee specialty stores, coffee newsletters, coffee of the month clubs, coffee conventions, coffee books, and conventions about coffee books. Is it any wonder that a café is coming to every street corner near you? Pretty soon, schools nationwide will be sounding a new anthem, something to the effect of "home of the coffee and the land of the crave." If you ever considered opening your own java emporium, seize the day, because success has never smelled so much like coffee. Raking in the Dough The income potential, on average, can amount to $500,000 gross sales annually, with an initial investment of $250,000. Sales may vary depending on location, shop size, and number of customers.
Location can make or break a coffee shop, so choose wisely.	Start-Up Costs and Financing: $80,000 - $250,000 for sit-down coffee shop $200,000 for franchise $15,000 for push-cart Small business loans (1-800-U ASK SBA), bank loans. Associations: The following industry associations are a valuable source of information. Joining an association entitles you to special offers and you'll be the first to receive ground-breaking industry news — membership does have its privileges. National Coffee Association of U.S.A. — 120 Wall Street, New York, NY 10005. 212-344-5596 National Coffee Service Association — 111 East Wacker Drive, Chicago, IL 60601. Specialty Coffee Association — 1 World Trade Center, Ste. 800, Long Beach, CA 90831. 310-983-8090 Market Research & Selecting a Location: Location can make or break a coffee shop, so choose wisely. You'll need to set up shop in a high foot-traffic area to get a broad customer base. The customers you'll be targeting are generally between 23 and 45 years of age, in the middle-to-upper income brackets. Keep in mind that women make up a large percentage of coffee consumers. Assessing the proper clientele will require that you acquire some demographics on your target area. These vital stats should include population density, purchasing power, eating and spending habits as well as median income. The U.S. Census Bureau and your local chamber of commerce will be your best friends when scouting such info. But never underestimate the value of field research. After narrowing your options to a few select locales, explore the areas to get better acquainted with the general populace. Talk to nearby store owners to learn more about the neighborhood patrons. Do they meet your criteria? Highly populated commercial zones will amount to higher rent, but if you factor in the open-handed spending practices of the average resident, it may all balance out in the end.
Talk to nearby store owners to learn more about the neighborhood patrons. Do they meet your criteria?	License and Insurance: Before opening up your cafe, you will have to acquire a business license, check out city zoning ordinances, and get a clean bill of health from the health department. Insurance is also a must. Protect your business by purchasing standard business insurance and liability coverage, which will protect your establishment in case of food poisoning. Equip Yourself: Essential equipment includes an espresso / cappuccino machine; commercial scales and coffee mills; display jars, cases, and shelves; ceramic mugs, glasses and paper cups. If food figures into your menu, acquire an industrial fridge, eating utensils, and dishware. Stocking Up: The name of the game is coffee, and the better the quality, the greater the sales. Variety is the key when ordering coffee. Flavored, blends, decaffeinated, and dark roast are staples of any café. When purchasing from a supplier, ask about their best-sellers. And never stockpile the inventory in case of a shortage — coffee loses flavor very quickly, so keep your order between 500 and 750 pounds of coffee. A Dazzling Decor: Thirst is important, but let's face it — in the coffee game, image is everything. Today's gourmet coffee houses are a refuge from the daily grind and littered streets. The café's ambiance can attract a slew of customers and will have them begging for seconds. Keep the atmosphere trendy but cozy. Couches, old books, and funky wall colors will enhance your shop's image. Salvage old tables and chairs by painting directly over the wood. Or hire an artist to transform dilapidated furniture into today's hottest look — shabby chic.
WEB RESOURCES: U.S. Small Business Administration Online A terrific resource with information about the Small Business Act, tips on starting and financing your business, local resources, and much more. Restaurant Suppliers Coffee and Espresso Equipment Coffee Suppliers Too Much Coffee Man	Cast & Crew: A small staff of two or three employees can be all it takes to satisfy your customers' thirst for the brew. Neither is it uncommon to find a shop owner manning the counter and giving regular customers the old meet & greet. Hire only a few employees until you get a better sense of the traffic flow generated by your shop. You can always bring more helping hands on board at a later time. Your staff should become very familiar with your shop's coffee selection, so make sure they consume mass quantities. Customers want the inside scoop on the latest varieties and will look to your staff to recommend their favorites. Encouraging your employees to sample the wares will not only give them the energy to work diligently, but will also provide an invaluable referral service to your customers. Get the Word Out: Fliers, word of mouth, and special offers (buy one drink, get one free) can get your shop the attention it deserves — and won't cost you an arm and a leg. Sometimes patrons will order one drink and take up a table for hours at a time. Don't look down your nose, you can't buy this kind of advertising! Passersby will notice that your café is filled to the max, and will assume your shop is the best around. Use the local talent to stage shows from art to music to poetry. Once you've got the act, the news release will be printed in the local paper free of charge (ask about the Calendar of Events section). Stock up on extra chairs and tables — you'll need them. Trade Publications: Coffee Intelligence and Coffee Annual — George Gordon Patton & Co., 182 Front Street, New York, NY 10038. Coffee Technology — Michael Svetz, Avi Publishing Co., 250 Post Road, Westport, CT 10016. Tea and Coffee Trade Journal — PO Box 71, Whitestone, NY 11357. World Coffee and Tea Magazine — McKeand Publications Inc., 636 First Avenue, West Haven, CT 06516. Leah and Elina Furman are freelance writers living in Chicago, and are the authors of The Everything After College Book, to be released by Adams Media in the fall of '97. Leah and Elina invite readers to visit their homepage at members.tripod.com/~ElinaF. © 1997 Leah Furman and Elina Furman. All rights reserved.