The UK’s hospitality industry is facing a unique struggle at the moment, as energy and supply costs continue to rise for smaller independents. But even with these new challenges, independent hospitality enjoys more consumer appetite than ever before – something especially true for coffee, and independent cafés.
With such high demand for good independent coffee brands across the country, it is no surprise that the market has become extremely competitive. For the new business owner on a budget, what can you do to lift your new venture off the ground?
Settle on Your Niche
Every successful business has its USP, or Unique Selling Point. This is the singular element of the enterprise that sets it apart from its competition, and that inspires more custom from the business’ target demographic. This can manifest in a number of ways, from especial attention to a facet of customer service to a niche provision or service altogether.
In terms of opening a café, the USP often comes in the form of the café’s design and purpose itself. For example, a café might model itself on a specific geographical area or time period; alternatively, it might focus on the provision of rare and high-quality coffee blends. It might even deploy a unique quirk that disrupts the market, as the growing number of ‘cat cafes’ across the country seek to achieve.
Your café’s proposed niche should be central to the planning of your business. It should form a crucial aspect of your brand’s identity, and should feature prominently in any marketing efforts you deploy to get the word out – increasing return without inflating advertising costs.
Funding
The best way to mitigate the cost of starting a new business is to offset those costs to future profits. Financing the opening of a business will always be difficult, but can be made easier through the seeking of loans and financing opportunities that you can subsidise after launch.
A small business loan can be essential to boosting your funding, and enable you to make relatively expensive purchases – such as barista coffee machines and furniture – early on. You might also attract interest from local investors, who could supply funds in exchange for a portion of the business. But either way, securing funding requires a clear and concise business plan.
Research, Research, Research
There are many areas for you to research while planning your new café venture – almost all of which can have a tangible impact on the cost and profitability of your venture. Location is one such key consideration, with an important balancing act to be struck between the high rent costs of popular areas and the high footfall they bring. You should also devote significant efforts to competitor research, in order to better understand the lay of the land for your new business.
