Running a Coffee Shop

[Epiphany74]

I'm considering buying a coffee shop as a change of pace from my hectic job in advertising. I've found an existing coffee shop for sale and it looks like a bargain. What are the positives and negatives of being the owner manager of a coffee shop?

[gammaray]

The positives are you are your own boss, you set the pace of the environment and decide when (if at all) you want to work.

The downsides are, VAT, Payroll, stock management, food Hygiene Regs, staff management, employment law, accounts.....etc. In short you have to be all things to all men. Even if you don't do these things yourself you have to have a degree of understanding so as to know if the people you are paying to take these presures away are actually doing the job properly.

I'm self employed (actually, I'm employed by a company that I own) and I wouldn't have it any other way.

A word of warning about your potential purchase. Anything that seems to be a bargin is usually a dead weight around the vendors neck, and you need to find out why. If your buying it as a going concern get at least three years trading accounts and give them to an accountant to check over to see if the turnover is either falling, growing or static year on year. Also if possible get a copy of the lease (if the business is in leasehold premises) and check when the rent reviews are and any breaks in the lease. You don't want to be opening the doors for the first time and facing a huge rent rise that you hadn't planned for. and, sound obvious but check the competition.

[123paul]

Being self employed is not all that its carcked up to be. I have been working for myself for 5 years now & I have never worked so hard. A week does not go by that I don't wish i was on someone elses time!

[Eels]

A coffee shop could become a real labour of love - creating that perfect atmosphere, enticing regular, Central Perk-style clientele, becoming a social hub ...

It could also be an exhausting, draining, stress-packed lifestyle. The buck stops with you - employee calls in sick? You have to wait tables all day ... staff disagreements? You have to arbitrate ... someone trips and scalds themselves? You're going to be met with the claim ... a customer develops a reaction after eating a nut-contaminated cake? Bad news ...

The list is endless, but that's life with your own business. It's all on your shoulders - if you can handle that then go for it, but don't bank on it being less hectic!

[Steve_Luts]

Hi Epiphany,

Is there a genuine reason why it is for sale, and why it is a bargain? Have you had a good accountant go over the books?

Don't get me wrong - I wish you well. Its nice to have ambitions to break out and do something on your own - I have worked freelance for 10 years and never looked back, although I have been tied to one client for a long time.

However, my biggest worry would be the barriers to entry you would encounter due to the likes of Starbucks, Coffee Nation, Costa Coffee et al, god luv 'em! The coffee shop industry in this country is dominated by all these big players, and the large footfall of people they get is more focussed on buying into the brand/lifestyle image that they (purport to) project. I'm not saying its right, but I personally know people who won't drink at Costa Coffee over Cafe Nero, for some kind of brand value. I know its crazy - but with coffee shops these are the kind of things people buy into - its nowt to do with the taste of the skinny mocca latte..unfortunately!

You may have turned up somewhere where the multinationals aren't in the market, but otherwise I would be wary of going head to head with them.

If it is viable though, and you have spotted a gap in the market, I wish you all the best.

Steve

[Epiphany74]

Thanks Guys.

I'm not sure that made my decision any easier - but it was a great reality check! I am, as the Americans say, conflicted about the issue.

Paul ... sorry you're having a hard time. Everyday I work for my boss I wish I was doing it for myself. So I guess work is just crap, regardless of who it is for. That's why the lottery is still going strong!

Steve ... I'm in Northern Ireland and we remain light on multi national coffee corporations - Starbucks is still a novelty!

Thanks again everyone.

[gammaray]

The last two posts all raise intersting points Epiphany74, but how you manage these challanges is the key to how succesfull your business will be. Red tape is red tape. Any business will be swamped with it but the good news is there are plenty of people around that offer help. The Federation of Small Businesses for example have regional helplines and advisors on hand from anything from employment issues to re negotiating rent reviews. It is hard work but the thought I carry around with me is that all the hard work is for my own benefit, not the benefit of someone elses company. That is a terrific motivator. I also have as much time as I need for family too. Generaly speaking there is safety in being an employee, but no where near the buzz you get from running your own show. I say Go for it!