Starting my own roastery...

Talk about your favorite cafes, local barista events, or plan your own get-together.

#1: Post by youss1988 »

So my goal is by the end of the year, start my own small roastery.
Now trying to figure everything out, planning stuff and working on a website.

You guys maybe have advice for a new starter? Also like where to look for the green beans

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#2: Post by Almico »

Step1 - Write a business plan...

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#3: Post by Peppersass »

What's in a business plan:

- Executive summary - If you can't briefly describe the opportunity and how you will capture it, you have a problem.)

- Market - Products to be offered (types of coffee, coffee equipment, coffee accessories, coffee bling), one or more cafes?, territory (local, regional, national, etc.), customer profile, number of prospective customers, addressable subset of same, communications strategy (advertising, search engines, social media, word-of-mouth, etc.)

- Competition - List of who in your territory is doing what you plan to do. What are their markets, products and business model? Are they succeeding? If yes, how will you beat them? If no, how will you avoid a similar fate?

- Product - What goes into making/obtaining your product(s)? What will make your products better than other similar products? What are the physical space requirements? Sources of raw material and equipment? What expertise is required? Other labor and training requirements? Steps and time needed to get to production?

- Business Model - New customers over time, % that repeat, CAC (customer acquisition cost) vs LTV (long term value of avg customer), order size/frequency, avg quantity, product mix, pricing per unit volume, costs per unit volume, overhead, capital expenditures, etc.

- Financial Projections - All the business model assumptions sorted into a 3-5 year projected P&L and cash flow statement. Should yield time to profitability and capital required to get there.

This is off the top of my head, not a business textbook, so it could be missing some things. Some items may apply to your business more than others. Addressing the ones that do will be crucial for success. The plan should be updated at least annually or when material (critical) changes occur or new information is obtained.

One thing I tell entrepreneurs to do before they write a business plan: Remember that it's really all about you and your goals. It's easy to get lost in the plan details and forget about that. Before you write the plan, decide what you want your business and your life to look like 5-10 years from now. Are you making money and having fun? (I had a business mentor who told me it all boils down to those two things.) Which is most important to you -- i.e., what's the balance between money and fun for you? Your business needs to deliver these in the proportion that's right for you. Will this be your life-long endeavor, or will you cash out when it succeeds and move on to other things? (Or if you're really lucky, spend the rest of your life on the beach sipping pina coladas.) In almost all cases, you need an exit strategy, even if it's "do this until you die." Once you understand what it is you really want and what the endgame looks like, you can work backwards from there all the way to the beginning to define the steps required to get where you want go in the long run.

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#4: Post by Almico »

Most excellent, Dick. I'm opening a new coffee bar soon, which has the same business model as my current one, but I'm also considering moving my roaster to a 1300sqft warehouse space and upping my game by going either supermarket retail and/or wholesale. That endeavor needs a new business plan.

There are lots of questions that need answering when starting a business. It's better to have good answers instead of bad answers. You want clear futures instead of mutual mystification. Phrases like, "and we'll go from there" or " we'll cross that bridge when we come to it" have no place in starting a business. A thorough business plan is the proper tool to suss out the best answers to all the questions.


#5: Post by MntnMan62 »

I have to ask a question of the OP. There are lots of people who roast their own beans for their own use. They have experimented and understand how to roast, the process involved and how to end up with a quality batch of roasted beans of all different types from a light roast to dark roasts and espresso roasts. And in the process of roasting your own beans you try lots of different sources of green beans. So, I guess the question to the OP is have you ever roasted your own beans and if so, where did you get your beans?

And the recommendations to have a good business plan are essential if you need to arrange financing. Actually, a business plan would be pretty darn helpful even if you aren't seeking financing.