Can I do it with $30,000?

Question

I wanted to start a small coffee shop and currently have $30,000 in savings. Although I am still developing the business plan and budget, I am afraid that this won't be enough even if I lease a property. Does anyone have any good idea? What would be the average budget to start this type of business?

Answer 1

$30,000 is small for a coffee shop, unless you envision a really small coffee shop in a more rural setting where prices of rent is cheaper

According to Bellissimo Coffee Infogroup, http://www.espresso101.com/coffee_faq.html you will need the following amounts to start your coffee shop business:

Coffee Cart: Usual start-up cost is $20,000–$25,000 to open and stock.

Kiosk: Depending on the size and what menu items are offered, it will usually cost between $50,000–$60,000.

Coffee Drive-Thru: The cost of opening a drive-thru espresso business operation can vary dramatically, from the the very small units for less than $30,000 to anywhere between $80,000–$180,000 depending on how the shop looks.

Sit Down: The cost of opening a sit-down coffee shop is comparable to the cost of opening an upscale drive-thru. Start-up costs for most 1200 sq. ft. coffee bars average $150,000 to $300,000.

Answer 2

$30,000 is good enough for a small coffee shop. I had my own pizza store many years ago. I also started with $30,000.

Entrepreneur Magazine has a start-up manual called "Coffee Shop". It has all the information you need to start a coffee shop business.

Good luck.

Answer 3

That's a little low, but you could seek out an SBA loan, and use this for about a 50% down payment. You might also consider buying an existing property. The current owner might be willing to "owner finance."