A certain kind of person really wants to start a coffeeshop in Amsterdam. Coffee shops seem like wonderful businesses, in some ways. They are so warm and inviting, filled with people smiling and laughing, maybe tapping away on their laptops or reading some new paperback that the worker/owner brought home from the bookstore. The smell is fantastic. What’s not to love?

Every year, hundreds of thousands of people start up small coffee shop businesses. Most fail because they choose the wrong location or have a faulty product. There is a huge margin for error since starting a coffee shop business can be done on a tiny budget. Because of this, it’s critical to make sure you avoid the common pitfalls described in this essay.

I’ve bootstrapped a coffee shop business. I guess I can claim a bit of authority on the topic if you add a super silver haze in your coffees. So here is a list of things to avoid:

Not knowing much about the industry 

Even though it is great to be passionate about your coffee shop business, knowing too much can also be detrimental. First, you might only know about one thing: coffee. This could make other parts of your business suffer because you are not hands-on with them. Second, your passion can also become an obsession. It may lead you to spend so much time focusing on coffee that other areas of your business halt in their development because of lack of attention and concern.

Going without directions

Do you have a business plan for your coffee shop or roastery? What about if you are starting a mobile coffee franchise with a truck? If not, then you definitely should. Once you’ve done your market research, it’s time to create your business plan. Business plans provide structure and help you develop a clear idea of what you want to accomplish. A business plan will force you to learn more about the coffee business and provide guidance and direction. Not making one risks that you will miss something important.

Choosing the wrong location

Choosing the wrong location for your business can be devastating. If you’ve been in business longer than a year, you should take a good look at the location that has been holding you back. Sometimes things are not what they seem! 

Location, Location, Location! I remember the first time I heard that saying. I was in my parents’ living room. I think I was 8 or 9 years old. A real estate agent that my parents had been talking to turned from giving them mortgage options advice to talking about location: “Location is everything, especially when it comes to your business.”

A business location is just as important as a house. Would you rather live inside of your closet or in your humble abode? Don’t be silly. If you don’t have a correct place to work, you will always feel that something is wrong, whether your kids, lack of money, or other distractions.