You do not have to be a coffee fun to start a coffee joint. In fact a coffee shop can be an excellent entrepreneurial idea and if you are passionate about running this venture, it could give you a decent monthly income.

How much does it cost to open a coffee shop? This question usually resurfaces whenever people consider starting up this business. While some people think that all you need are the premises and the product then the customers will find their way to your coffee joint, it may not be as simple as it is put. It involves lots of sacrifice and planning if the big picture is to be realized.

There are lots of factors that together will give you the total cost that you will have to incur if you are to start a coffee shop. Just like any other business, setting up a coffee shop is all about risking. The last thing you would want is to have your investment drain away just like that. The following factors will give you a good orientation of what you need to be put into place for a smooth start and running of your business.

The Location

This is a critical factor that if well handled, can give your business the mileage that it requires. You need to get a strategic place that has a good flow of customers. Ensure that you balance the rental aspect and the prime location of the area.

Coffee Shop

Everyone would love to be in the limelight but few can afford that. Plan it such that your rent does not exceed 15% of your projected sales. The rental expenses should range from $1500 to $2000. Remember as you move towards the center of the city, you will need to pay more for the same space or even a smaller one.

The Furnishing Costs

The furniture and the internal ambience are very important for the customers. If you are to retain the customers, and create a name for yourself, you need to exceed the expectations of the clients. Get the right furniture and the appropriate machines that will be used in the coffee shop. You will need blenders, espresso machines, refrigerator, coffee grinders, bean bags, sofas, tables, arm chairs and lots of other items.

The cost of furnishings should not exceed 40% of your gross sales. In monetary terms, the cost should not exceed $15,000. The machine qualities need to be excellent so that you can start on the right footing. Second hand machines can also be a viable alternative. You can get them at $7,000 which is about half cost of the new ones.

Utility Expenses

You need to look at the water, electricity and garbage collection costs. In the coffee shop, you may end up using more of these utilities than at home. An appropriate budget for them would be 35% of the total sales. This should range between $3,000 and $6,000.

The Services and Products to Offer Clients

No coffee business can begin without there being the ingredients required such as cookies, caffeine drinks, muffins, biscuits, croissants and many more. These supplies do not usually take much of the cost. In fact they may end up consuming about $4,000 per month. You can even source them from wholesalers at about a discount of 20%-30%.

Now you have your coffee business ready. You need to practice accountability and integrity if your business is to survive to see its first birthday.

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