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Coffee Roaster Business Plan

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Beanisimo Coffee

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Beanisimo Coffee is a start up Salem, Oregon based coffee roaster that has developed a line of premium coffees and espressos. Beanisimo Coffee has been formed as an Oregon S Corporation by the founder Frank Jones. Frank has brought old world Italian traditions and recipes to meet the market need for premium coffees.

Keys to Success Beanisimo Coffee has identified three keys that will be instrumental to its success. The first is the need to develop the finest coffee available. The second requirement to develop a top notch customer service organization that exceeds customer expectations. The last element is to employ strict financial controls. The development and implementation of finance and accounting controls will help ensure fiscal success.

Target Market Segments Beanisimo Coffee has identified three distinct customer segments that it will actively pursue. The first group is made up of coffee houses, drive thru establishments, and espresso carts. This customer segment has 187 potential customers and is growing at a 7% annual rate. The second group is restaurants with 107 possible customers and is growing at an 8% annual rate. The last segment is grocery stores that sell unprepared beans to their customers in either whole bean or ground forms. This segment has 97 potential customers and a 7% growth rate.

Management Beanisimo Coffee is being lead by Frank Jones. Frank has a strong educational background and a wealth of applicable industry experience. Frank received his Bachelor degree and MBA from Willamette University. Frank has worked at several coffee shops, and has worked in Italy as a coffee roaster under the wing of an Italian master roaster.

Through a combination of a solid business model, strong educational credentials, and proprietary coffee roasting techniques, Frank will be able to turn Beanisimo Coffee from a start-up business to a significant market player in the high-end coffee market in the Willamette River Valley. Sales for year two are forecasted to be $312,000 rising to $355,000 in year three. Net profit is projected to be 7.58% for year two and will jump to 9.58% in year three.

1.1 Mission

It is Beanisimo Coffee’s mission to offer the finest selection of coffees. By using the customs from a 54-year-old Italian master roaster, Beanisimo Coffee’s products will surpass all of its competition. A strong customer service ethic will support the fantastic product.

1.2 Objectives

Beanisimo Coffee’s objectives are to build brand awareness and customer service excellence, while increasing sales. Beanisimo Coffee intends to utilize the following strategies to achieve these objectives:

• Develop a high-quality menu of different coffee blends.
• Provide an excellent service experience, anticipating the needs of the customers and delivering the best service.
• Leverage the old traditional Italian roasting methods to increase market penetration with the finest product available.

1.3 Keys to Success

Beanisimo Coffee has identified several keys which will be instrumental in the success of the company.

• Develop the finest product.
• Exceed customer expectations.
• Employ strict financial controls.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

2.1 company ownership.

Beanisimo Coffee is an Oregon S Corporation. The primary stockholder and founder is Frank Jones.

2.2 Start-up Summary

The following equipment will be needed for the start up of the company:

• Three workstation computers and one central file server.
• Two laser printers.
• Computer software: Microsoft Office, and Peachtree Accounting.
• Assorted office furniture and equipment.
• Assorted buckets, labels, bags, labels, and hooks.
• Topre Izmir perforated drum roaster.
• Heat based bag sealer.
• Hobart scale.

Beanisimo Coffee offers a wide range of specially blended and roasted coffees. Beanisimo Coffee will be using customs passed down from a 54 year old Italian master coffee roaster. Beanisimo Coffee first will select and cup the coffee, then blend different beans before roasting.

The key to a wonderful bag of roasted beans is the blending of different coffee beans. Coffee beans are a global commodity. There are many different types of beans, distinctive in the genre of plant that the bean comes from as well as the region that the bean is grown. Beyond these distinctions, beans are still a commodity.

Blending different types of beans makes huge differences. Beanisimo Coffee is privy to decades old blending recipes from old world Italy.The roasting technique also plays a role in the taste of the coffee.

Beanisimo Coffee will offer a wide range of coffees including:

• Italian Roast
• French Roast
• Columbian Dark
• African Roast
• Bistro Blend
• Decaf- available in the following blends: Bistro, Sumatra, French and Italian Roasts
• Espresso and Decaf Espresso

Each coffee is available in one pound and five pound packages, in both whole bean and ground versions. Every product that Beanisimo Coffee produces attempts to be the best in its respective product category based on quality and taste.

Market Analysis Summary how to do a market analysis for your business plan.">

Beanisimo Coffee has decided to concentrate on three distinct customer segments. The first is coffee houses/drive thru/espresso carts, restaurants, and the last is grocery stores. Each of the customers is distinct. The first segment prepares beverages for their clients, as does the second group along with meals, and the third segment sells the whole bean and ground coffee unprepared to their customers.

While the coffee industry as a whole has been stagnate for a while, the high-end gourmet coffee market is still growing. This can be attributed to a number of factors including the maturing and increased sophistication of the American palette. Beanisimo Coffee faces competition from several competitors who focus on convenience or price as opposed to product quality which is the strength of Beanisimo Coffee.

4.1 Market Segmentation

Beanisimo Coffee has segmented their market into three distinct customer segments:

• Coffee houses/drive thrus/carts: These customers are purchasing coffee beans for the preparation and sale of coffee and espresso based drinks. Their establishments serve a wide variety of coffee and espresso beverages to customers that visit the coffee houses, drive thrus, or cart based servers.
• Restaurants: These establishments are purchasing coffee and espresso to serve to their retail food customers.
• Grocery Stores: These customers are purchasing the beans for either prepackaged, or bulk, resale to their customers. The grocers do not prepare the drinks for the customers like the other customer segments, they only sell the Beanisimo product as is purchased from Beanisimo Coffee.

Below is some demographic information of the end consumers of the above customer segments.

U.S. Demographic Coffee Consumption Patterns 2001- 2002 U.S. Coffee Drinking Trends Survey (according to the National Coffee Association):

• Men and women consume the same number of cups per day.
• Women are more excited about varieties and source of relaxation (social).
• Men like that coffee helps them “get things done.”
• Women are more price conscious than men.
• 18-25: prefer high caffeine, hot or iced drinks, all high octane, richer blends.
• 30-60: prefer premium and espresso with half the caffeine. Lite blends and half-caffeinated grew approximately 7% in 2001.
• 64% of all coffee is consumed at breakfast; 28% between meals; 8% at all other meals.
• Sweetened or plain: 35% drink coffee black; 65% add sweetener and/or creamer.
• The average daily coffee drinker consumes 3.1 cups per day.
• In 2002, there were 29 million people who drank gourmet coffee every day. Gourmet is defined as specialty coffee (premium), espresso-based beverages (cappuccino, latte, café mocha, espresso), or frozen and iced coffee beverages.

4.2 Target Market Segment Strategy

Beanisimo Coffee will be focusing on the three previously mentioned customer segments because of their desire of having a high-quality product.

The coffee shops/drive thrus/carts segment often appreciates the finest quality coffee/espresso product. Restaurants are another customer segment that is attractive because they have a constant need for coffee and coffee/espresso is a common beverage served with meals, especially when people eat out.

Additionally, restaurants are a year round business that serves coffee at all times during the day. Lastly, Beanisimo Coffee will target grocery stores which sell coffee in unprepared forms to a wide range of customers. Grocery stores are a natural customer since many people buy the bulk of the food they consume during the week from a grocery store, including coffee.

4.3 Industry Analysis

Global Coffee Market: Coffee is the second-largest commodity traded after oil, with the worldwide retail coffee market being a $56 billion industry.

The coffee belt is roughly bounded by the Tropics of Cancer and Capricorn and is mainly comprised of 28 countries. The top-ten coffee-producing countries are, in descending order: Brazil, Vietnam, Columbia, Indonesia, Mexico, Ethiopia, India, Guatemala, Ivory Coast, and Uganda.

During the 1990’s, Vietnam moved from fourth largest to second largest producer of coffee in the world, with most of its production in robusta beans. Coffee is available in several forms: bean, ground, liquid, and soluble: powdered, granules, freeze-dried. Worldwide, with the exception of North America, people prefer instant coffee and coffee is mainly prepared at home.

Top coffee-importing countries as a % of world supplies:

Top coffee-consuming regions (by pounds consumed per capita per year):

* Does not include the UK, which only consumes 5 pounds per capita per year.

U.S. Coffee Market: The total U.S. coffee market is projected to exceed $25 billion in 2002:

The overall U.S. consumption of coffee has stagnated in recent years. However, consumers’ purchase of gourmet coffee (specialty and premium) is increasing, according to the National Coffee Association.

Consumers are choosing to drink higher-grade coffees, moving away from price-based purchasing to trends that focus on increased quality in a wide variety of products. In the U.S., the coffee market has been segmented into two major categories: mass-market and specialty coffees.

• Mass-Market: Mainly lower-priced product sold through grocery retail outlets and convenience stores. Mass-market coffee consumption is declining approximately 5% per year as people of all ages embrace out-of-home specialty coffees. Grocery retail outlets are providing the consumer with more premium coffee choices and are partnering with specialty coffee roasters capturing an increasing share of the mass-market sales channels.

Before the success of the specialty coffee retailers in the 90’s, coffee was a breakfast drink and choices were caffeinated or decaffeinated. The incredible success of the specialty coffee retailer can be attributed to introducing coffee as a social drink and providing the consumer with new unimagined choices of coffee drinks while introducing and conditioning the consumer to the taste of specialty coffees.

Trends within the Industry:

• In the U.S., Specialty coffee sales grew 38% from $7.76 billion in 2000 to $10.71 billion in 2001, comprising 30% of the market. Thanks in large part to the marketing efforts of Starbucks, specialty coffee has become mainstream. It is the primary growth driver in the otherwise flat or declining coffee industry. Specialty coffee, which was once limited to coffee shops, is now available in a wide variety of mass-market channels.

4.3.1 Competition and Buying Patterns

Beanisimo Coffee several different competitors:

• Allan Brothers: This Oregon based company operates as both a roaster as well as running coffee houses in Salem, Eugene, and Corvalis. The price point for their coffee is midway. The quality is decent, particularly at its price point.
• Caffetto: This company widely distributes their roasted coffee throughout the Willamette River Valley. The quality and price point is pretty low. This company’s coffees are attractive if the customer is very price sensitive and need an inexpensive product.
• Assorted varieties distributed by food service vendors (e.g., Food Service of America and Sysco): These varieties are offered at a mid-price point with a low product quality. What you do get with these offerings is individual serving sizes. For a lot of restaurants this is advantageous, but the costs is carried over to the customer for this feature.

The buying patterns for customers is based on convenience, cost, and quality. Some customers are willing to pay more for the convenience of individual sized servings and the benefit of buying coffee from their existing food product vendor. For others coffee is just one more thing on the menu and quality is not that important. Lastly, there are many companies that recognize high quality coffee and espresso and will not settle for anything less.

Strategy and Implementation Summary

Beanisimo Coffee will leverage its competitive edge of the highest quality product to quickly gain market penetration.  This competitive edge is sustainable because it is based on the traditional roasting techniques of an old Italian master roaster. Beanisimo Coffee’s marketing effort will be based on the communications that assert that Beanisimo Coffee has by far the best products. Beanisimo Coffee will be vocal in their assertion of the message that while its coffee costs a bit more, the variance is not material and the difference in quality is immeasurable. The sales strategy will work on converting perspective customers into long-term customers by emphasizing high-quality products and high levels of customer service.  This strategy recognizes the fact that even though the company may have the best product, without excellent customer service the organization will not succeed.

5.1 Competitive Edge

Beanisimo Coffee’s competitive edge is its market leading product quality. By leveraging personal relationships, Beanisimo Coffee has gained the recipes and knowledge of an old Italian master roaster. Part of Beanisimo Coffee’s secret is the old world roasting techniques, part of the winning formula is the art of blending different green beans to come up with special recipes. Green coffee beans are a commodity, therefore any variations in one company’s coffee to another is based on roasting techniques if they are using the same types of beans. Beanisimo Coffee is able to stand out among its competitors by using time tested blends of different green beans to come up with compelling final products. This competitive edge is sustainable in the sense that this information that Beanisimo Coffee possesses is a trade secret and not available to other roasters. This will ensure Beanisimo Coffee will always have the finest products.

5.2 Marketing Strategy

Beanisimo Coffee’s marketing strategy will communicate to the target customer segments that its product clearly exceeds all of the competitors. The strategy will employ several methods to communicate the message. The first will be a print advertising campaign. Several different sources will be used including a local restaurant industry journal as well as a regional coffee shop trade publication. Advertisements in these publications will be effective in reaching the target audience.

A second method that Beanisimo Coffee will use to “get out the word” will be by having several different cuppings. A cupping is analogous to a wine tasting where many different varieties are tasted, compared, and analyzed. The cuppings will be a perfect opportunity for Beanisimo Coffee to have prospective customers taste the difference between its products and the competition. To develop awareness of the superior product offerings, Beanisimo Coffee must offer a superior level of customer service to support the products. Beanisimo Coffee recognizes that you cannot solely compete on product alone, that much of the transaction involves excellent customer service.

5.3 Sales Strategy

The sales strategy recognizes the need for the company as a whole to back up its superior product offerings with excellent service. This mantra is important because if there was not a service organization to back up the product, there would be no customers after the second or third purchase. Consequently, the sales strategy will focus on customer support and making the customer’s experience with Beanisimo Coffee as positive as possible. This strategy will use account managers that look after individual customers, ensuring that their needs are being met. The account managers will be responsible for a certain number of existing accounts as well as will be provided the resources to attract new accounts.

5.3.1 Sales Forecast

The sales forecast, described graphically in the following charts, is conservative in order to prevent unrealistic expectations and to help ensure the achievement of these goals. Sales will grow slowly but incrementally. As a start-up organization, it is realistic to expect that it will take time to grow the customer base so that it is at a sustainable level.

As mentioned in the previous section, account managers will be used to service existing customers as well as generate new accounts. Having account managers with a vested interest in the satisfaction of the customers will help ensure disciplined sales growth. Without account managers, the management believes that it would be too easy for customers to “fall through the cracks.”

5.4 Milestones

Beanisimo Coffee has developed several milestones that will serve as a goal to which the entire organization will strive to achieve.  All of the milestones are measurable allowing the responsible department to track progress and assess their ability to reach the milestone.

• Business plan completion.
• First major account: This will be the first large account that provides the company with a material recurring revenue stream.
• Profitability: For the accounting/finance department, this is a significant milestone.
• Revenue exceeding $300,000.

Web Plan Summary

A website will be used to provide information regarding Beanisimo Coffee and the offered products to current and prospective customers. The site will be used for informational purposes, it will be not initially used for commerce purposes. Once the organization has been operating for a while they will reconsider the demand for coffee to be sold via the website.

6.1 Website Marketing Strategy

The marketing strategy for the website will attempt to develop awareness for the website thereby directing people to the site for more information regarding the complete line of coffees and espressos that Beanisimo Coffee offers. Beanisimo Coffee will make submissions to search engines such as Google! to ensure that when a perspective customer types in “gourmet coffee” or some other such key word that Beanisimo Coffee’s site is high up on the list of hits. In addition to search engine submissions, all of Beanisimo Coffee’s promotional material will have the URL for the website, encouraging people to visit the site.

6.2 Development Requirements

As mentioned before, the website will be used as a source of information. Because it will not, at least initially, have an e-commerce component to it, the development requirements will not be that significant. Beanisimo Coffee will leverage the technical expertise of a computer science graduate student (who typically work at below market wages) to develop the informational site.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Frank Jones, the founder and driving force of Beanisimo Coffee will be the main component of the management team. Frank received his Bachelor of Arts  and MBA from Willamette University. Frank has worked as a barista at several different coffee houses, and with an Italian master roaster who took him under his wing and showed him all aspects of the business. After one year in Italy Frank returned to the states and began to work on a business plan for a coffee roasting company.

7.1 Personnel Plan

Responsibilities within Beanisimo Coffee will be delegated as follows:

• Frank: Business development, some accounting, some sales, and roasting.
• Sales manager: This person is responsible for the sales effort and will be the account manager for all of the accounts initially and will develop new sales accounts as well.
• Sales: As the business grows a sales person will be hired for account management responsibilities as well as some new sales development.
• Shipping: One person will be hired for the position of shipping and delivery. For delivery within the Willamette River Valley, deliveries will be made by the company vehicle. Other shipments that are of greater distance from Beanisimo Coffee will be sent via UPS. This position will coordinate all aspects of order fulfillment.
• Support staff: This position will employ initially one person in a capacity of supporting operations in a multitude of ways based on need. At times they will help support production and shipping.
• Administrative support: This position will help with some of the accounting activities as well as other administrative support functions.

Financial Plan investor-ready personnel plan .">

The following sections will outline important financial information.

8.1 Important Assumptions

The following table details important Financial Assumptions.

8.2 Break-even Analysis

The Break-even Analysis indicates that approximately $19,000 will be needed in monthly revenue to reach the break-even point.

8.3 Projected Profit and Loss

The following table will indicate Projected Profit and Loss.

8.4 Projected Cash Flow

The following table and chart will detail information regarding Cash Flow.

8.5 Projected Balance Sheet

The following table displays the Projected Balance Sheet.

8.6 Business Ratios

The following table shows important Business Ratios, specific to Beanisimo as well as the industry as a whole.

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Coffee Roaster Business Plan Template

Written by Dave Lavinsky

Coffee Roaster Business Plan

You’ve come to the right place to create your Coffee Roaster business plan.

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Below is a template to help you create each section of your Coffee Roaster business plan.

Executive Summary

Business overview.

Cosmopolitan Coffee is a premium coffee house that serves the finest organic coffee sourced from sustainable growers around the world. Our name, Cosmopolitan Coffee, represents our global search for coffee beans that not only satisfy every coffee aficionado, but also allow us to serve our world by being mindful in our sourcing of those coffee beans.

From sweet and smooth-bodied Brazilian coffee beans to the fruity, berry notes of African coffee beans, we select and roast only those beans that will offer the highest degree of rich coffee results. Our coffee roasters produce small batches of freshly-roasted coffee beans on a regular basis and we produce holiday coffee flavors during special seasons of the year.

We will primarily sell our coffee blends through our website or wholesale retailers (i.e. grocery stores). However, we will also operate a small café where we will sell several coffee drinks so customers can try out our premium blends before buying our beans in bulk.

Cosmopolitan Coffee is led by José Fernandes who immigrated to America as a teen. Throughout his whole life, he has had a passion to create the perfect coffee, a passion that was started and fueled by family tradition. He moved to America several decades ago, bringing with him the coffee bean roasting methods created by his grandfather in Brazil. Now he is finally starting his own business where he can share his family recipes and his love for premium coffee.

Product Offering

The following freshly-roasted coffees are served at Cosmopolitan Coffee:

• Light, floral coffee flavors – African or Costa Rican coffee beans
• Medium, nutty coffee flavors – South American coffee beans
• Dark, fragrant and rich coffee flavors – Vietnamese coffee beans

Holiday/seasonal coffees include:

• Light, cinnamon coffee notes – South African coffee beans
• Medium, chocolate coffee notes – Papua New Guinea coffee beans
• Dark, spicy coffee notes – Southeast Asian coffee beans

We will sell these blends on our website, in our café, and in local grocery stores. We will also operate a café that sells several coffee drinks that use our blends and recipes including:

• Iced coffee

Customer Focus

Cosmopolitan Coffee primarily serves the residents living and working in the Chicago, Illinois area. However, we will also serve anyone who comes across our website after hearing about us or coming across our marketing efforts. Our café serves the immediate community within a two mile radius of our location.

Management Team

José began working in a Chicago coffee roasting company ten years ago, where he acquired operations, marketing and management skills during the years of his employment. José also graduated from North Central College, where he majored in culinary services.

Success Factors

Cosmopolitan Coffee will be able to achieve success by offering the following competitive advantages:

• Ingredients and menu: Our coffee beans are freshly-roasted for optimal flavor, resulting in premium coffees. Traditional coffee flavors are always on the menu, including light, medium and dark coffees. In addition, unique holiday flavors, such as spicy, chocolate, or fruity coffee bean flavors are offered as seasonal specials. No other coffee roaster company offers the wide variety and flavors as does our company.
• Management: The unique family coffee-roasting heritage of José Fernandes guarantees that each batch of coffee beans are roasted to perfection. José is also highly-experienced in the operations and management of a coffee roasting company and brings a warm and welcoming atmosphere to the neighborhood.
• Certified organic and sustainable: Only certified organic coffee beans are roasted at Cosmopolitan Coffee. All coffee beans are grown on sustainable farms to avoid damaging the crops or harming the farmland on which the beans are grown. No direct competitor offers organic or sustainable products.
• Location: Our location is perfectly suited to neighborhood residents who walk or drive to our coffee house. Additionally, professionals and executives who work nearby can easily locate our company. Drivers who commute can also find our location with ease, as we are located directly off the speedway. Each of the customer segments create advantageous opportunities for strong company growth within the next three to five years.
• Relationships: José welcomes the community by using our location as a gathering place for customers, friends and families to relax, converse and enjoy one another’s company.

Financial Highlights

Cosmopolitan Coffee is currently seeking $500,000 to launch. The funding will be dedicated for overhead, build out and design, working capital, marketing expenses, and inventory. The breakout of the funding is below:

• Café/Roastery Build Out: $200,000
• Marketing and Advertising: $50,000
• Inventory and Supplies: $50,000
• Three Months Of Overhead Expenses (Rent, Salaries, Utilities): $100,000
• Working Capital: $100,000

The following graph outlines the pro forma financial projections for Cosmopolitan Coffee.

Company Overview

Who is cosmopolitan coffee.

  From sweet and smooth-bodied Brazilian coffee beans to the fruity, berry notes of African coffee beans, we select and roast only those beans that will offer the highest degree of rich coffee results. Our coffee roasters produce small batches of freshly-roasted coffee beans on a regular basis and we produce holiday coffee flavors during special seasons of the year.

Cosmopolitan Coffee History

Cosmopolitan Coffee is led by José Fernandes, who immigrated to America as a teen, bringing with him the coffee bean roasting methods created by his grandfather in Brazil. José learned how to roast beans to the perfect point of flavor perfection. After immigrating, he worked in a coffee roasting company, where he learned how to manage, market and successfully operate a coffee roasting business before he started Cosmopolitan Coffee.

José incorporated Cosmopolitan Coffee as an S-Corporation on May 1st, 2023. The company is currently being run out of José’s home office but will move to a commercial location once the lease has been finalized.

Since incorporation, Cosmopolitan Coffee has achieved the following milestones:

• Found a location for the roastery and signed a letter of intent to lease it.
• Developed the company’s branding image, social media, and website.
• Began recruiting key staff.

Cosmopolitan Coffee Services

Industry analysis.

The coffee roaster industry has been rapidly growing due to increasing consumer demand for fresh and fully flavorful coffee. Consumers crave more than packaged coffee beans, packaged ground coffee, or individual coffee pods; they are seeking coffee that is the savory result of freshly-roasted coffee beans. Coffee made from freshly-roasted coffee beans carries a distinctive aroma, smooth and full-bodied flavor, and, surprisingly, offers nutritional value, as well. Antioxidants and nutritional compounds within the beans are carried into coffee, adding healthful benefits that contribute to the increasing consumer demand for coffee made from freshly-roasted coffee beans.

According to Grand View Research, the market trends for coffee roasting companies is predicted to grow at a strong CAGR rate of 6.3% from now until 2030. Freshly roasted coffee beans, when brewed soon after roasting, produce premium coffees that are especially appealing to those consumers who have a discretionary income level. The higher price of premium coffee has led to a new demographic of coffee consumers: those who don’t view price as the primary factor of their purchases, but view flavor as the primary driver for coffee selection. As prices rise in the future, the premium coffee prices will maintain their hold on coffee aficionados who insist on their daily coffee pleasure.

As consumers look for organic foods in the next five years, certified organic coffee will be sought and the purchase of organic coffees is expected to continue to grow. Consumers will also continue to seek coffee beans that have been hand-picked in sustainable coffee farms to ensure the land will be safe from overuse or damage as the coffee beans are harvested.

Customer Analysis

Demographic profile of target market.

The demographics of the area are as follows:

Customer Segmentation

Cosmopolitan Coffee will primarily target the following customer profile:

• Pedestrians
• Coffee aficionados

Competitive Analysis

Direct and indirect competitors.

Cosmopolitan Coffee will face competition from other companies with similar business profiles. A description of each competitor company is below.

Whole Bean Roasting Company

Whole Bean Roasting Company is a direct competitor, however it is seven miles away from our location. The coffee roasting company has only one coffee bean roaster and serves mild to dark freshly-roasted coffees. The company has no stated emphasis on serving certified organic coffee or using coffee beans from sustainable farm sources. Whole Bean Roasting Company sells breakfast and lunch items in addition to coffee, such as breakfast rolls, donuts, muffins, sandwiches and wraps.

Go Coffee Go

As part of a family-owned, city-wide chain of ten coffee shops, Go Coffee Go is located three miles from Cosmopolitan Coffee. The coffee shop offers no indoor seating, with a focus on serving walk-up customers only. Go Coffee Go sells blended brands of coffee at low prices for light, medium and dark coffees. Coffee is sold in medium, large and extra-large coffee cups with plastic coffee cup lids. Although this coffee outlet is nearby, the competitor sells generic coffee bean blends that do not compare to the coffee flavors of our company. There is no emphasis on organic coffee or sustainable growing methods.

Le Entourage Bistro

This small, French-themed restaurant serves breakfast, lunch and dinner and is located four miles from Cosmopolitan Coffee. An extensive menu features French and American foods in a romantic atmosphere. Premium coffees and espresso drinks are offered on the menu; however, no coffee beans are roasted on-site. Prices for coffees and espresso drinks are priced at higher levels and served in china cups or espresso shot glasses. Although this indirect competitor serves primarily as a restaurant, customers are within the demographics of Cosmopolitan Coffee.

Competitive Advantage

Cosmopolitan Coffee offers several advantages over its competition. Those advantages are:

Marketing Plan

Brand & value proposition.

Cosmopolitan Coffee will offer the unique value proposition to its clientele:

• Offering premium coffees made from coffee beans freshly roasted in-house.
• Located in an optimal community for residents, commuters and workers.
• Offering certified organic coffee beans harvested on sustainable farms.

Promotions Strategy

The promotions strategy for Cosmopolitan Coffee are as follows:

Social Media

José Fernandes will create the company’s social media accounts and invest in ads on all social media platforms. The company will use targeted marketing to appeal to our target demographics.

Cosmopolitan Coffee will create a website that includes a splash page, directing customers to interactive pages. One page will demonstrate the process of coffee bean roasting, and one will contain a video from José discussing his background and family history. Seasonal coffee flavors and specials will also be introduced.

Partnerships with Local Businesses

Cosmopolitan Coffee will align with businesses in the area to introduce the coffee experience at our company. This marketing strategy will include free coffee tastings for employees during breaks, “Coffee Talks” by José, and free-coffee vouchers for employees who visit our company for the first time.

Pre-Opening Events

During the month prior to our launch, names of commuters will be collected for a drawing to be held on our opening day. Seven winning names will be drawn by José to receive free coffee at Cosmopolitan Coffee for one full year.

Cosmopolitan Coffee’s pricing will be appropriate for the high-quality coffee and level of service associated with a premium coffee bean roasting experience. Customers will feel they have received great value and a superior product.

Operations Plan

The following will be the operations plan for Cosmopolitan Coffee. Operation Functions:

• José Fernandes will be the Owner of Cosmopolitan Coffee. He will oversee the general operations of the roastery and café and help roast the premium blends until he has a full team of baristas and roasters on staff.
• Max Smith will be the Café Manager and will focus on training staff and serving customers.
• José will hire an administrative team to help with the administrative, accounting, and marketing aspects of the business.
• José will also hire several baristas and roasters to make premium coffee for our customers.

Milestones:

Cosmopolitan Coffee aims to achieve the following goals in the next six months.

• 6/1/202X – Finalize Lease Agreement
• 7/1/202X – Design and Build Out Underway
• 8/1/202X – Design and Build Out Completed
• 9/1/202X – Hire and Train Staff
• 10/1/202X – Grand Opening
• 11/1/202X – Reach break-even

Financial Plan

Key revenue & costs.

The key revenues for Cosmopolitan Coffee will come from the sales of our premium blends (through our website, café, and partner grocery stores) and coffee drinks in our café.

The major costs include labor expenses, rent, marketing expenses, and the cost of inventory.

Funding Requirements and Use of Funds

Key assumptions.

The following table outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the business loan.

• Number of Customers Per Day: 50
• Average café Menu Item Cost: $5.00
• Average Order per Customer: $10.00
• Average Coffee Bean Order per Customer: $25.00
• Annual Lease: $60,000

Financial Projections

Income statement, balance sheet, cash flow statement, coffee roaster business plan faqs, what is a coffee roaster business plan.

A coffee roaster business plan is a plan to start and/or grow your coffee roaster business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Coffee Roaster business plan using our Coffee Roaster Business Plan Template here .

What are the Main Types of Coffee Roaster Businesses?

There are a number of different kinds of coffee roaster businesses , some examples include: Retail Coffee Roastery and Wholesale Coffee Roastery.

How Do You Get Funding for Your Coffee Roaster Business Plan?

Coffee Roaster businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Coffee Roaster Business?

Starting a coffee roaster business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Coffee Roaster Business Plan - The first step in starting a business is to create a detailed coffee roaster business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your coffee roaster business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your coffee roaster business is in compliance with local laws.

3. Register Your Coffee Roaster Business - Once you have chosen a legal structure, the next step is to register your coffee roaster business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your coffee roaster business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Coffee Roaster Equipment & Supplies - In order to start your coffee roaster business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8 . Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your coffee roaster business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Coffee Roaster Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their coffee roaster businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a coffee roaster business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your coffee roaster business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start a coffee roaster business, or grow your existing coffee roaster business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your coffee roaster business in order to improve your chances of success. Your coffee roaster business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Coffee Roaster Businesses

With regards to funding, the main sources of funding for a coffee roaster business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings is the other most common form of funding for a coffee roaster business.

Finish Your Business Plan Today!

If you want to start a coffee roaster business or expand your current one, you need a business plan. Below are links to each section of your coffee roaster business plan template:

Executive Summary

Your executive summary provides an introduction to your coffee roasting business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of coffee roaster business you are operating and the status. For example, are you a startup, do you have a coffee roaster business that you would like to grow, or are you operating a coffee roaster business in multiple markets or regions?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the coffee roaster industry. Discuss the type of coffee roaster business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of coffee roaster business you are operating.

For example, you might operate one of the following types of coffee roaster businesses:

• Retail Coffee Roastery : this type of roastery sells roasted coffee to individual consumers, either online or through a brick-and-mortar storefront.
• Wholesale Coffee Roastery: this type of roastery sells roasted coffee to other businesses, such as grocery stores, restaurants, hotels and resorts.

In addition to explaining the type of coffee roaster business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, total number of bags of coffee sold, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the coffee roaster industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the coffee roaster industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your coffee roasting business plan:

• How big is the coffee roaster industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your coffee roaster business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your coffee roaster business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individual consumers, grocery stores, restaurants, hotels and resorts.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of coffee roaster business you operate. Clearly, individual consumers would respond to different marketing promotions than grocery stores, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most coffee roaster businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.  

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other coffee roaster businesses.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes coffee shops and grocery stores. You need to mention such competition as well.

With regards to direct competition, you want to describe the other coffee roaster businesses with which you compete. Most likely, your direct competitors will be roasteries located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What types of coffee do they sell?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide better roasted coffee?
• Will you provide features or services that your competitors don’t offer?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a coffee roaster business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of coffee roaster company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to selling roasted coffee, will you sell brewed coffee, sell teas, provide barista event services, or provide any other products or services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your coffee roaster company. Document your location and mention how the location will impact your success. For example, is your coffee roaster business located in a busy retail district, shopping plaza, mall, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your coffee roaster marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your coffee roaster business, including purchasing supplies, performing inventory, marketing, roasting coffee, and selling and/or delivering coffee.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sell your 1,000th bag of coffee, or when you hope to reach $X in revenue. It could also be when you expect to expand your coffee roasting business to a new city.

Management Team

To demonstrate your coffee roaster business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing coffee roaster businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing coffee roasteries or successfully running small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you gain one new customer per month or per quarter (as a wholesaler), or will you sell 100 bags of coffee per day or per week (as a retailer)? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your coffee roaster business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a coffee roaster business:

• Location build-out including design fees, construction, etc.
• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your roastery location lease or descriptions of roasts you are working on.

Putting together a business plan for your coffee roaster is a worthwhile endeavor. If you follow the template above, by the time you are done, you will have an expert coffee roasting business plan; download it to PDF to show banks and investors. You will really understand the coffee roaster industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful coffee roaster business.

Coffee Roaster Business Plan FAQs

What is the easiest way to complete my coffee roaster business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Coffee Roaster Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of coffee roaster business you are operating and the status; for example, are you a startup, do you have a coffee roaster business that you would like to grow, or are you operating a chain of coffee roaster businesses?

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Coffee Roaster Business Plan

Free Business Plan Template

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• Fill in the blanks – Outline
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How to Write a Coffee Roaster Business Plan?

Writing a coffee roaster business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Products and services:.

• For instance, you may include roasted coffee beans and private labeling as products & services and mention custom blends as USP.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

• Specialty coffee roaster
• Artisanal coffee roaster
• Wholesale roaster
• Contract roaster
• Retail roaster
• E-commerce roaster

Describe the legal structure of your coffee roaster business, whether it is a sole proprietorship, LLC, partnership, or others.

Mission Statement:

Business history:.

• Additionally, If you have received any awards or recognition for excellent work, describe them.

Future Goals:

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

• For instance, cafes, coffee shops, restaurants, hotels, or offices would be an ideal target audience for a coffee roaster business.

Market size and growth potential:

Competitive analysis:, market trends:.

• For instance, sustainability and ethical sourcing has a growing market now; explain how you plan on dealing with this potential growth opportunity.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your coffee roaster business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your products:

Mention the coffee roaster products your business will offer. This may include products like,

• Single-origin beans
• Unique blends
• Flavored coffee
• Decaffeinated coffee

Describe each product:

Provide a detailed description of each product you provide.

Quality measures:

Additional services:.

In short, this section of your coffee roaster plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

• For example, single-origin focus, ethical sourcing, or customization could be some of the great USPs for a professional coffee roaster business.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your coffee roaster business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your coffee roaster business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & machinery:.

Include the list of equipment and machinery required for coffee roasters, such as coffee roasters, green coffee storage, cooling tray, grinding equipment, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your coffee roaster business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your coffee roaster business, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should summarize your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

• This exercise will help you understand how much revenue you need to generate to sustain or be profitable.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more.These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the coffee roaster, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your coffee roaster business plan should only include relevant and important information supporting your plan’s main content.

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This sample coffee roaster business plan will provide an idea for writing a successful coffee roaster plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our coffee roaster business plan pdf .

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Frequently asked questions, why do you need a coffee roaster business plan.

A business plan is an essential tool for anyone looking to start or run a successful coffee roaster business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your coffee roaster company.

How to get funding for your coffee roaster business?

There are several ways to get funding for your coffee roaster business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your coffee roaster business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your coffee roaster business plan and outline your vision as you have in your mind.

What is the easiest way to write your coffee roaster business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any coffee roaster business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Learning center series

What makes a good coffee roaster business plan?

• Published on March 12, 2024
• by Turgut Arisoy
• Last updated: 4 days ago

In the vast landscape of coffee businesses, crafting a solid roaster business plan is not just any old option, it’s your survival kit. Ever looked at the daily consumption stats?

Over 2.25 billion cups of coffee devoured around the globe every day. That's nearly enough to fill 900 Olympic swimming pools with steaming mocha delight!

Yet, amidst this behemoth consumer demand, many coffee roaster operations still teeter and totter. Not because they lack an inviting aroma, but largely from an absence of a tailored, strategic business plan.

“What is a good coffee roaster business plan?” If that question has been gnawing at your consciousness, then buckle up. This post is set to serve you the nitty-gritty essentials of creating the near-perfect plan— the proverbial ‘shot of espresso’ in outsmarting your competition. It’s time to truly brew success with your coffee roaster business.

America's Coffee Craze ☕️ Nearly 3 in 4 Americans drink coffee per day (73%) .

The Blueprint to a Successful Coffee Roaster Business Plan

Step 1: understanding the coffee roasting market.

Coffee roasting is more than an art; it’s a booming industry. You’re not just dabbling in coffee beans and their aroma; you’re diving into a multi-billion-dollar industry inhabited by countless competitors. Can you carve out your niche in this bustling market? To do so, a clear comprehension of the coffee roasting market becomes paramount. At Metrobi, we specialize in optimizing coffee logistics and distribution , ensuring your unique blends reach their destinations efficiently and reliably.

For starters, get to know your customers. They come in all forms – cafe owners, retail customers, wholesalers. Each has unique tastes, preferences, and price points.

Understanding competitors is equally crucial in this landscape. Identify the major players, what they do well, and where they falter. This doesn’t imply launching into a copycat strategy but acquiring cues to stand out.

Pay attention to trends too. The coffee market, like many others, is influenced by global and local trends. For instance, single-origin coffee has seen a surge in demand due to discerning customers. Are there similar opportunities to capitalize on?

Coffee and Health 🌿 48% of people agree that drinking coffee benefits their health .

Step 2: Identifying Your Unique Selling Proposition

Once you’ve got a handle on the market, it’s time to distinguish your coffee. What sets your roasts apart? Perhaps it’s the beans, the roasting process, or your commitment to sustainability. Whatever it might be, this unique selling proposition (USP) adds an irreplaceable dimension to your brand.

Manifest this USP into everything you do – from your packaging to your marketing. A potent USP can be a game-changer that turns coffee connoisseurs into loyal customers. More than enthralling your customers, it can make competition irrelevant, allowing your business to break away from the rest.

Coffee Shop Loyalty ☕ 51% of people purchase coffee from a coffee shop at least once a week.

Step 3: Creating a Comprehensive Business Model

Regardless of your business type, a comprehensive business model is the backbone of your enterprise. With your USP identified, it’s time to sketch out how you’ll sell, distribute, and market your coffee, and who to. Are you primarily targeting cafés or end consumers? Will you adopt a brick-and-mortar, e-commerce, or mix of both models? Answering these questions will streamline your operational strategy. Additionally, it will help outline revenue sources, expenses, and your pricing strategy. An extensive business model mitigates unforeseen challenges and preempts strategies for growth and expansion.

To ensure your coffee roastery business succeeds, it’s crucial to incorporate detailed business planning, including thorough market research and a clear understanding of coffee costs.

A comprehensive business plan should cover all key elements: an executive summary highlighting your aim to produce high-quality coffee; a marketing plan outlining strategies to reach your targeted customer segments; profit and loss statements to forecast financials; considerations for sales tax as your business grows; and operational plans for using commercial roasters.

This foundational document guides every decision as a business owner, from choosing between being a coffee roaster wholesaler or focusing on direct sales, to determining the right marketing approach for your unique coffee roasteries.

Why Most Coffee Roaster Businesses Fail

Lack of market understanding.

One of the main reasons for the failure of numerous  coffee roaster  businesses is the inability to grasp the market intricacies they are attempting to participate in. The coffee market is not limited to brewing; it involves dealing with coffee growers, understanding the complex chain from farm to cup, grasping coffee species and varietals, and keeping pace with ever-evolving consumer preferences.

Multiple Cups a Day 🍵 36% of people drink 3 to 5 cups of coffee a day.

Inadequate Business Planning

Another common failure point is poor planning. Many kickstart a coffee roasting business based solely on passion and limited hands-on experience, neglecting the essentials like a solid business plan, realistic budget, and crucial timelines. Without a comprehensive plan, it’s challenging to ascertain the right roasting equipment, understand inventory needs, identify potential clientele, project sales, calculate overhead costs, and forecast profitability. Ambiguity in these areas can lead to a disaster.

Poor Financial Management

The inadvertent financial management surfaces as another key failure reason. The operational costs of a coffee roasting business can accumulate quickly, from procuring high-quality beans and installing the right roasting and packaging equipment, to managing inventory, rent, utilities, and staff salaries. It’s also crucial to budget for marketing initiatives, potential downturns, regulatory compliance, and unexpected expenses. Moreover, one must decipher the nuances of pricing the product rightly to ensure profitability without scaring away potential consumers. Overlooking these elements can lead to a financial crisis, hampering business growth.

Brewing Up Growth ☕️ The global Coffee Roasters market is projected to grow at a 7.1% compound annual growth rate (CAGR) between 2023 and 2030 , with a market worth of USD 1.93 billion in 2022.

Understanding Profit Margins in a Coffee Roasting Business

Revenue streams in a coffee roasting business.

The backbone of your coffee roasting business is the revenue streams you choose to tap into. There’s no single solution – success comes from a blend of multiple approaches.

Different ways to generate income

Consider the obvious methods: selling raw beans direct to consumers, supplying local cafes, or even providing bespoke roasting services. More industrious roasters might move into offering barista training or collaborating with artisan bakeries to create coffee-infused goods.

A successful blend of revenue streams pays attention to market demand and customer preferences. Regularly assess what’s contributing the most to your bottom line, testing new products and services to find what resonates with your target market.

Maximizing profitability

Don’t confuse activity with profitability. It’s easy to get caught up in the buzz of new offers, but the key is to scrutinize each venture for its potential return on investment. Every initiative should add significant revenue potential or drive customer loyalty to justify its existence. In short, if it doesn’t make money, it doesn’t make sense.

Cost Analysis

No business runs cost-free. A thorough understanding of your ongoing costs is crucial to securing your profit margins.

Breakdown of common costs in a coffee roasting business

Running a coffee roasting business takes more than a roaster. You need high-quality beans, packaging, shipping infrastructure, premises, and, of course, a diligent team. Each aspect contributes to your overheads, meaning you have to continue bringing in sufficient revenue to meet these costs – and, ideally, go beyond them.

Always keep an eye on your balance sheet. Recognise the impact of your major costs. Rent, wages, the price of raw materials – these, among other things, dictate your break-even point and profit potential. Understand their individual impact with deep dive analytics, tracking the ebbs and flows of each cost component.

Strategies for managing and reducing costs

Efficiency is king in a coffee roasting operation. While you can’t avoid costs, you can certainly strive to manage them.

Monitor and investigate any significant cost increases. Review supplier contracts regularly to ensure the best price and seek to optimise your internal operations. Aim for a lean and efficient setup – remember, every dollar saved is an additional dollar of profit.

But remember – cost-cutting should never sacrifice the quality of your product or service. Securing your reputation for quality is paramount to long-term success. In the end, maintaining quality might be the most significant strategy for managing costs in the long run, by fostering customer loyalty and repeat business.

This understanding of revenue streams and cost structures creates a clear framework for profitability potential of a coffee roasting business. Armed with this knowledge, you can take steps to secure and grow your profit margins.

Leading Roasting Technique 🔥 The largest segment in the Coffee Roasters market is the Semi-direct Fire with Half Hot Air Style , holding a share over 65%.

What is a Coffee Roaster Business?

The role of a coffee roaster.

The food-service universe holds companies of all sizes, from multinational giants to single-person operations. In the realm of coffee, a coffee roaster business is a principal player, working behind the scenes to shape the flavor profiles of the coffee that we savor daily. As roasters, these businesses are the guardians of quality, the alchemists transforming green seeds into aromatic brown beans that excite the senses of coffee lovers worldwide.

Coffee roasters are the bridge between the coffee farm and your morning cup, responsible for bringing out the best flavors from the quality raw material. Roasters partner closely with coffee growers, purchasing raw green coffee beans which they then carefully roast to bring out varied flavors and characteristics. The connection between roasters and growers is indispensable, contributing to the traceability and sustainability of our coffee supply.

The Process of Coffee Roasting

Coffee roasting is an art as much as it is a science. It is a complex process involving several principles from chemistry and thermodynamics and requires precision and skill to master.

In essence, coffee roasting is the process of heating green coffee beans in a coffee roaster to transform them into roasted coffee products. The roasting process is what produces the characteristic flavor of coffee by causing the beans to change in taste.

The beans are kept moving throughout the entire process to keep them from burning. As they are roasted, they’ll first turn a yellowish color and the beans will begin to smell grassy. The beans then darken to a light brown and will begin to smell like coffee. After the first crack, the roast can be considered complete at any time according to taste. The further the beans are roasted, the more they lose the inherent tastes of their origins and take on flavor from the roasting process.

Just as winemaking can be broken down into grape-growing and wine-producing, so too coffee can be viewed in two stages: coffee farming and coffee roasting.

Why Start a Coffee Roaster Business?

If you’re flirting with the idea of launching a business, why not consider diving into the coffee world, more specifically, running a coffee roasting business? Pull up your sleeves. Let’s get into the heat of it.

The Growing Demand for Specialty Coffee Industry

Drinking coffee has morphed from a simple morning routine to an intricate experience savored by passionate java enthusiasts. It’s coffee time, and it’s not just about any coffee, but more about pursuing unique, ethical, and skilfully brewed cups – the birth of the specialty coffee market.

While large franchises like Starbucks dominated the industry in the past, today, committed coffee lovers are seeking out local, artisanal roasters who offer unique experiences and flavors. This growing preference for quality over convenience is blowing the doors wide open for specialty coffee roasters. With Metrobi, these businesses can extend their reach, as we offer delivery services across more than 20 U.S. cities, including Denver , ensuring that even the most distinctive coffee flavors find their way to enthusiasts everywhere.

Not only is the demand for specialty beverages on the rise, but the demographics of coffee drinkers are also broadening. Millennials are driving the increase in coffee consumption, with most willing to pay a premium for high-quality brews.

Equally important is the shift towards ethically sourced coffee. Consumers are increasingly concerned about the ethics behind their cups. They are aware that by purchasing from small-scale, local, and ethical roasters, they are supporting sustainable coffee farming practices.

Top Beans on the Block 🏆 The global top three Coffee Roasters manufacturers hold a share over 20% of the market.

The Potential for High-Profit Margins

Undeniably, the coffee business can be a profitable venture if done right. Taking it up a notch by delving into roasting opens another realm. There is potential for high-profit margins when you roast your beans, primarily because you’re controlling the whole process from bean to cup, skipping the middleman. Metrobi aids in expanding your reach by facilitating delivery services across over 20 cities in the US, including offering immediate delivery options in Miami .

Unlike cafe businesses that deal with high overhead and slim margins, a roastery tends to have relatively lower operating costs. Plus, the pricing of roasted beans is often based more on quality than competitive pricing, allowing for larger margins if the product is well received. Discover how our guide unveils viable approaches for a lucrative coffee roasting venture , ensuring a roadmap to sustained success and scalability.

Moreover, as preferences for gourmet, single-origin, and fair-trade coffees continue to grow, consumers are willing to pay more for high-quality, ethically sourced beans. Therefore, the potential to maintain healthier margins is built into the very nature of the market.

This provides an opportunity for those ready to undertake the journey – it’s not just about selling beans, but a rich experience, a unique story, and a taste that leaves an impression.

Coffee Roaster Business Plan: Market Analysis and Future Trends

Current market trends, the newest trends in coffee roasting.

The coffee industry is under constant evolution that is influencing the roasting segment as well. From the demand for eco-friendly practices to the rise of artisanal coffee, consumers’ preferences are reshaping the market landscape. Understanding these trends is crucial in formulating a successful business plan.

In light of these prevailing trends, many businesses are reassessing their operational models and aligning it with the changing coffee world. For instance, many coffee roasters are turning towards organic beans and cleaner roasting methods, responding to the growing call for sustainability.

European Coffee Culture 🌍 Europe is the largest market for Coffee Roasters, holding a share of about 40% .

Leveraging Industry Trends for Business Success

Current trends are not just markers of industry development, but opportunities for growth and success. Being aware of these trends allows businesses to stay competitive and responsive. For instance, if the demand for single-origin beans is on the upswing, incorporating these into your roasting profile can help attract discerning customers. Similarly, offering roast-to-order services could be another route to explore, as it caters to the industry trend of personalisation and freshness.

Future Outlook

Spotting future trends in the coffee roasting industry.

It’s crucial not just to keep an eye on the current scene, but also the horizon. A carefully researched prediction of future trends puts you one step ahead of the market curve. For instance, experts are foreseeing a rise in demand for traceable coffee as consumers become more conscious of the origin of their brew. This means that businesses may need to start closing the gap between growers and customers, perhaps by offering more information about the beans’ journey from farm to cup.

Preparing Your Business for Future Growth

As the saying goes, “The best way to predict the future is to create it.” With that in mind, it’s time to consider how your business can adapt to – and influence – the future of the coffee roasting industry. This could involve investing in cutting-edge roasting technology, partnering with coffee growers to ensure sustainable practices, or even shaping customer tastes with innovative flavor profiles.

A Toast to Your Coffee Roasters’ Success: Concluding Thoughts

Perfecting your coffee roasting business plan isn’t about jumping hoops but understanding the nuances. A compelling vision, robust financial projection, detailed marketing strategy, and effective risk management are your ingredients to a richer, deeper, more successful plan. Now that you’re equipped with this knowledge, it’s your brew of the day that matters.

Remember, your business plan is the lifeblood of your coffee roasting venture. It guides your path and helps secure investments. Keep it flexible, keep it informed, and always tailor it to your business’s unique roast.

So, what’s boiling next for you? Time to review that business plan, isn’t it? Are you ready to refine the elements we’ve discussed and swirl your business in the direction of success? Let’s keep that pot brewing.

Have you identified the unique element that sets your coffee roasting business apart yet? A unique roast, perhaps?

Keep the fire burning, coffee entrepreneurs. Remember, every great coffee roasting empire started with one courageous step. Take yours. Brew tomorrow, today.

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How to Start a Coffee Roasting Business: 9 Steps to Success

Coffee beans are actually the pit of coffee cherries. They’re green, hard and un-brewable in their raw state. A coffee roasting business roasts green coffee beans to light (city), medium (full city) and dark (full city+) roast levels so that they can be brewed. Roasters may sell their roasted coffee directly to individuals, or through coffee shops, grocers and other retailers. If you want to find out how to start a successful coffee roastery business, this article covers the basics you'll need to know, from crafting a business plan, to startup costs, to common business licenses required in the coffee industry.

Recommended : Read our full, in-depth  How to Start a Coffee Shop Business guides, inspired by coffee professionals, they will help make your coffee dreams real, from sourcing beans to hiring baristas, choosing the best POS system , forming an actual company, and everything in between.

Learn how to start your own Coffee Roasting Business and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a coffee roasting business by following these 10 steps:

• Plan your Coffee Roasting Business
• Form your Coffee Roasting Business into a Legal Entity
• Register your Coffee Roasting Business for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Coffee Roasting Business
• Get the Necessary Permits & Licenses for your Coffee Roasting Business
• Get Coffee Roasting Business Insurance
• Define your Coffee Roasting Business Brand
• Create your Coffee Roasting Business Website
• Set up your Business Phone System

We have put together this simple guide to starting your coffee roasting business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Coffee Roasting Business Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your coffee roasting business?

Business name generator, what are the costs involved in opening a coffee roasting business.

The startup costs associated with opening a coffee roasting business are significant. In addition to commercial space, business owners must also purchase:

• A coffee roaster, which can cost up to $25,000 or more
• Green coffee, which usually costs ~$3.00 to $4.50 per pound but is bought in large bags (e.g. 50-kilogram (110-pound) sacks)
• Packaging supplies (a few cents per bag or box)
• A POS system
• Labels (a few cents each)
• A heat sealer, which may cost anywhere from $30 to $300 or more
• A coffee grinder, which might cost between $500 and $1,000

Businesses will also need a computer and internet access to accept orders, and a vehicle to make deliveries.

There are two ways that business owners who have limited capital can significantly reduce their startup costs.

First, business owners can “contract roast.” In contract roasting, a business pays a rental fee to use a more established roaster’s facilities. The roaster of the established company may also be involved in the roasting process. The roasted coffee is sold under the renting roaster’s brand, regardless of whether another roaster is involved. This solution not only greatly reduces startup expenses, as there’s no need to purchase a roaster, heat sealer or coffee grinder, and it lets inexperienced business owners lean on the expertise of more experienced roasters.

Alternatively, roasters can start with lower-priced equipment. Driftaway Coffee is an established commercial roaster that roasted its first commercial batches with a Behmor 1600 -- a roaster that’s marketed to hobbyists and typically sells for far less than $1,000. Businesses can also purchase less-expensive grinders and heat sealers.

What are the ongoing expenses for a coffee roasting business?

The ongoing expenses for a coffee roasting business include:

• Purchasing green coffee
• Purchasing fuel for the roaster (which may use propane, natural gas, electricity or another fuel source)
• Buying packaging supplies
• Rent and utility costs
• POS System monthly/annual fee
• Employees’ wages
• Shipping and delivery costs
• Equipment service calls

Who is the target market?

A coffee roasting business’ ideal customer is a business that sells a lot of specialty coffee. Coffee shops, certain grocery stores and a few boutiques may go through a lot of coffee. While these types of wholesale customers won’t pay as much as individuals who pay retail prices, wholesale customers provide a more stable income stream.

How does a coffee roasting business make money?

A coffee roasting business makes money by selling roasted coffee to individuals (retail) and businesses (wholesale).

Retail prices for roasted coffee are often between $12 and $20 for 12-ounce bags. Wholesale prices are often $6 to $12 per pound. The quality of coffee is one of the main factors that determine where within these ranges a roaster’s prices fall. (A few roasters have prices outside of these ranges.)

Lots of roasters offer retail bags in sizes other than 12 ounces, but most roasters use 12-ounce bags as their main retail package. They do this because about 25 percent of green coffee’s weight is lost in the roasting process, so 1 pound of green coffee becomes approximately 12 ounces of roasted coffee. Prices can be varied based on the reports generated by the POS system . If there is a significant demand for a product, the price may be increased. 

How much profit can a coffee roasting business make?

A coffee roasting business’ profit potential depends on how many outlets into which it can get its coffee. A roaster that has coffee in lots of retail locations may earn hundreds of thousands of dollars, or more, each year. However, many don’t make quite this much, but bring in closer to tens of thousands of dollars annually.

How can you make your business more profitable?

A coffee roasting business can increase its coffee sales and add additional revenue streams by opening up its own coffee shops. 

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your coffee roasting business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Establishments that prepare or work with food are randomly inspected by the local health department on a regular basis. These inspections will check for compliance with local health laws, typically related to prevention of contamination. Here are some tips for faring well on a health inspection .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Certificate of Occupancy

A coffee roasting business is generally run out of a regulated location (e.g. Any location that passes a local health Inspection). Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.

• If you plan to lease a location for Coffee Roasting
• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a coffee roasting business.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.

Fair Trade Certification

In order to be qualified under an Fair Trade certification , the company must submit to fair trade supply chain audits as well as paying fair trade price premiums for the quality of bean supplied.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Coffee Roasting Business needs and how much it will cost you by reading our guide Business Insurance for Coffee Roasting Business.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a coffee roasting business

One of the most effective ways of marketing a coffee roasting business is by offering cuppings. Cuppings are professional coffee tastings, and they provide a great opportunity for potential customers to connect with a roaster and learn more about their coffee.

How to keep customers coming back

A coffee roasting business must be able to differentiate itself from other coffee roasters. A business might do this by:

• Specializing in a certain roast level or coffee from a specific region
• Purchasing coffee via direct trade and sharing the stories of farmers who grew the coffee
• Supporting initiatives by providing exclusively Fair Trade, Organic Certified or Rainforest Alliance Certified coffee

In addition to these strategies, coffee roasting businesses should also emphasize providing freshly roasted coffee. Coffee loses aroma and flavor over time, so freshly roasted coffee tastes better than older, stale coffee. Many roasters state the roast date on their bags to show that the coffee inside has been recently roasted.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

People who are considering opening a coffee roasting business should be creative, and also passionate about coffee. Creativity helps when coming up with new blends, which requires combining different coffees in unique ways and also inventing blend names.

Additionally, roasters should be comfortable with basic scientific concepts. Roasters don’t need a formal degree in science, but they should be comfortable with biology, physics and chemistry because roasting coffee involves each of these fields:

• Choosing good coffees requires a knowledge of growing conditions, cultivars and varieties of coffee beans (biology)
• Selecting and setting up a roaster requires an appreciation for thermodynamics (physics)
• Deciding which roast profiles are suitable for each coffee requires an understanding of how the heat applied in roasting affects the chemical structure of coffee beans (chemistry)

It’s also helpful if roasters are comfortable multitasking. Roasting a single batch of coffee takes between 10 and 15 minutes. In order to maximize efficiency, roasters often complete other tasks while batches are roasting -- but they must still keep an eye on any coffee that’s roasting to ensure it’s roasted properly.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a coffee roasting business?

As a coffee roasting business owner, you’ll spend a lot of time roasting and packaging coffee. In a typical day, you may:

• Sort and weigh green (unroasted) coffee out into batches (often 5 to 20 pounds)
• Roast batches of coffee
• Sort and weigh roasted coffee into retail and wholesale packages (often 12-ounce and 5-pound bags)
• Accept and fulfill orders using a POS system
• Clean the roastery

Deliveries to wholesale customers are often made weekly.

At least monthly, and perhaps more often, you’ll receive shipments of green coffee and send invoices to wholesale customers.

What are some skills and experiences that will help you build a successful coffee roasting business?

Roasting coffee requires a lot of knowledge about coffee and the roasting process. Roasters should be familiar with everything from the cultivars of coffee and growing regions to how to cup coffee and when to increase heat during roasting.

Both the Roasters Guild and the Specialty Coffee Association of America offer classes on coffee and roasting.

Business owners who want to learn to roast coffee without paying for formal classes can apply to work as a profile roaster at an area coffee roasting company. Profile roasters don’t come up with new roasts, but they roast coffee according to the parameters set forth by a head roaster. This can be a good introduction to the fundamentals of roasting, especially if the head roaster is willing to teach and answer questions.

Sweet Marias , an online retailer of green coffee, also has a lot of free resources. These are targeted toward home roasters, but can also be beneficial to novice roasters who are exploring opening a commercial roastery.

What is the growth potential for a coffee roasting business?

A coffee roasting business can be a small, local business or it can be a large national company. Two large companies that both started as small roasteries include Starbucks, which sells its roasted coffee through its cafes and retailers, and Green Mountain Coffee, which doesn’t have cafes.

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Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

How and when to build a team

As a coffee roasting business grows, there are four key positions to hire people for:

• Sales and marketing, which grows a roastery by seeking new customers
• Packaging, which packages up roasted coffee
• Delivery and customer service, which delivers packaged coffee and answers customers’ inquiries
• Profile roasting, which roasts coffee according to set parameters

The first three positions let you focus on finding new coffees, developing new blends and growing the business. Hiring a profile roaster ensures coffee will still be roasted if you become sick and provides you with an opportunity to take a vacation.

Useful Links

Industry opportunities.

• Solar Roast Coffee Roasting Franchise Opportunity
• Coffee Roasting franchise
• Franchise Opportunities

Real World Examples

• A Pioneer within the Coffee Roasting Industry
• How 3 Coffee Roasters Got Their Start
• Successful Small Batch Coffee Roasters

Further Reading

• To Roast or Not to Roast
• How to Start a Coffee Shop Business
• How to Break into the Coffee Roasting Business
• Making a Career in Coffee Roasting
• Tips When Starting a Coffee Roasting Business
• Tips from Professionals on Growing Your Coffee Roasting Business

Entrepreneur Interviews

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Coffee Roasting Business

Back to All Business Ideas

How to Start a Coffee Roasting Business

Written by: Esther Strauss

Esther is a business strategist with over 20 years of experience as an entrepreneur, executive, educator, and management advisor.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on April 25, 2021 Updated on March 13, 2024

Investment range

$15,250 - $80,600

Revenue potential

$280,000 - $1.7 million p.a.

Time to build

1 - 3 months

Profit potential

$85,000 - $120,000 p.a.

Industry trend

Are you a coffee fanatic? Do you love the smell of freshly roasted coffee? Then starting a coffee roasting business could be the right choice for you.

Coffee is the fourth most consumed beverage worldwide, with nearly two-thirds of American adults drinking coffee every day, according to the National Coffee Association. Millennials are willing to spend a bit more for their daily caffeine fix, with 70% of their coffee consumed being gourmet. 

But how can you start your own coffee roasting business? The answer is to start with step 1 below!

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Before you start dreaming of coffee roasting success, it’s important to understand the industry so that you can see where you fit best. 

Pros and cons

To get a balanced view of the coffee roasting industry, let’s look at both the positives and the negatives. 

• Growing interest in specialty drinks, brews and varieties
• Easily scalable business model
• Help people get going to start their day!
• Be your own boss — choose your own beans and working hours
• Becoming a good roaster requires training
• Finding a suitable roasting location may be difficult due to the fumes and emissions

Coffee roasting industry trends

Coffee is popular throughout the world, but Americans are the most committed drinkers, consuming 517 million cups a day, according to the National Coffee Association.(( https://www.ncausa.org/Portals/56/PDFs/Communication/20220315_media_highlights.pdf?ver=Xz7bwWmt8eAtyGxkFp30bg%3d%3d ))

A look at Google Trends shows interest in coffee roasting has been consistent over the last five years.(( https://trends.google.com/trends/explore?date=today%205-y&geo=US&q=coffee%20roasting ))

Industry size and growth

• Industry size and past growth – The US roast coffee market is worth $74 billion, about a fifth of global revenue, according to German data firm Statista.(( https://www.statista.com/outlook/cmo/hot-drinks/coffee/roast-coffee/worldwide )) 
• Growth forecast – The global roast coffee market is expected to expand around 5% annually through 2025. Demand for coffee roasters is also predicted to grow 6% through 2026 following a pandemic-driven decline, market analyst Research and Markets says.(( https://www.researchandmarkets.com/reports/4602370/coffee-roaster-market-growth-trends-covid-19 ))
• Number of businesses – There are over 2,000 coffee roasters in the US(( https://coffeebeaned.com/coffee-roaster-maps/ ))
• Number of people employed – More than 5,000 jobs for coffee roasters are expected to be created over 10 years to 2028.(( https://www.zippia.com/coffee-roaster-jobs/ ))

Trends and challenges

Some of the latest trends in the industry include:

• Roasted coffee subscription model, with consumers getting high-quality beans shipped straight to their door on a regular basis.
• Introduction of value-added coffee-based RTD and flavor-added coffee

The industry faces some challenges such as:

• Short shelf life of roasted coffee
• Wide use of instant coffee

Consumer spending

• Average consumer spend – The average person in the US consumes at least two cups of coffee a day, spending around $2,000 a year.
• Potential customer base – 66% of Americans 18 years and older drink coffee.
• Average prices – A cup of coffee in the US costs an average of $2.70.(( https://www.usnews.com/news/blogs/data-mine/2015/09/29/americans-pay-an-average-270-for-coffee-while-tipping-20-percent ))

What kind of people work in coffee roasting?

Zippia.com is useful for this section.

• Gender – More than 75% of coffee roasters are male.(( https://www.zippia.com/coffee-roaster-jobs/demographics/#gender-statistics ))
• Average level of education – Nearly 60% of coffee roasters have a bachelor’s degree.(( https://www.zippia.com/coffee-roaster-jobs/demographics/#degree-level-types ))
• Average age – Almost half of coffee roasters are over 40 years old.(( https://www.zippia.com/coffee-roaster-jobs/demographics/#age-statistics ))

How much does it cost to start a coffee roasting business?

To start a coffee roasting business, you’ll need between $15,000 and $80,000, but the average investment is about $50,000.

Let’s see what your investment gets you: 

You’ll need a handful of items to successfully launch your coffee roasting business. 

Online retailer Amazon has a range of coffee roasting equipment including both basic and professional machines. Most other supplies can be found at local stores or from Amazon as well. Finding a reputable green coffee supplier is the most important part of this step. You can check out suppliers such as Benchmark and Intercontinental Coffee Trading .

How much can you earn from a coffee roasting business?

The key, of course, is how much coffee you sell and at what price. The World Economic Forum estimates that roasters typically make $0.44/lb of roasted beans. An estimated $8.73/lb cost and a wholesale selling price of $9.40/lb results in a 7% profit margin.(( https://www.weforum.org/agenda/2020/10/economics-coffee-cup-costs-break-down/ )) 

In your first year or two, you could work from home without any staff, bringing up your profit margin to around 30%. If you roast one 110-pound bag of coffee a day for five days in a week and sell your roasted coffee for $10/lb, you’d earn more than $280,000 in annual revenue and around $85,000 in profit, assuming that 30% margin.

As your brand gains recognition, you could increase your capacity to five 110-pound bags a day and extend operating hours to six days a week. At this stage, you’d rent a commercial space, hire staff and invest in a bigger roaster, reducing your profit margin to 7%. With annual revenue of $1.7 million, you’d make a tidy profit of more than $120,000.

What barriers to entry are there?

While starting a coffee roasting business may seem straightforward, there are a few barriers that you should be aware of: 

• Finding a suitable roasting location due to smoke and fumes
• The initial learning curve can be steep, from sourcing beans to roasting
• Gaining brand recognition can be difficult in a crowded market  
• Securing relevant permits and abiding by regulations

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Step 2: hone your idea.

Now that you know a bit more about the industry let’s start refining your business idea. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Before you become a coffee roaster, you’ll need to find out who your competition is. Are they beginning roasters like yourself, or are they an established brand? Are there a lot of local roasters in your area? Who buys their beans? 

Knowing these answers will help you find your unique value proposition that you can share with potential customers. 

You might also be able to learn about the beans they source, their roasting process, and the equipment they use. All this information will help you to capture your market share of the coffee industry. 

What? Determine your products

There are four color categories for roasted coffee beans, according to the National Coffee Association — light, medium, medium-dark, and dark. 

Light is generally preferred for milder coffee varieties, medium for stronger flavor, medium-dark for a slight bittersweet aftertaste, and dark for pronounced bitterness like espresso.

You should consider creating a niche for yourself by specializing in one or two of these roasted coffee categories. This could jumpstart your word-of-mouth marketing within your niche market.

How much should you charge for roasted coffee?

How much you charge will depend on the products you sell and the costs involved in the process. Beans vary in price depending on their origin, weather, and supply & demand, but on average, a coffee roaster can sell a pound of beans for $10 – $15. 

Ensure that your product prices leave you with a healthy profit margin so that the fluctuations in green coffee bean prices won’t erode your profits. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Identifying your target market is important because these are the customers to whom you will tailor your marketing strategies.

Do you want to target restaurants, cafes, or even sell directly to the public? Will you target high-end retailers, or do you want to make your coffee more affordable? These are some of the questions you can ask yourself while identifying your target market. 

By having an idea of who your customers will be, you can create a brand and marketing plan that will resonate with them. 

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out a storefront or production facility. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Coffee Roasting Business Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “coffee” or “beans”, boosts SEO
• Name should allow for expansion, for ex: “Bold Bean Roasters” over “Single Origin Roasters”
• Avoid location-based names that might hinder future expansion

Discover over 210 unique coffee roasting business name ideas here . If you want your business name to include specific keywords, you can also use our coffee roasting business name generator. Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Coffee Roasting Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: A brief overview of the coffee roasting business, highlighting its key elements and objectives.
• Business Overview: Detailed information about the coffee roasting business, including its mission, vision, and key values.
• Product and Services: Explanation of the types of coffee products offered, the roasting process, and any additional services provided.
• Market Analysis: A thorough examination of the coffee market, identifying target customers, trends, and potential growth opportunities.
• Competitive Analysis: Evaluation of competitors in the coffee industry, analyzing their strengths and weaknesses.
• Sales and Marketing: Strategies for promoting and selling the coffee products, including target marketing and promotional activities.
• Management Team: Introduction to the key members of the management team, outlining their roles and qualifications.
• Operations Plan: Details on the day-to-day operations of the coffee roasting business, from sourcing beans to the roasting process and distribution.
• Financial Plan: A comprehensive financial forecast, including startup costs, revenue projections, and profit margins.
• Appendix: Supplementary materials such as supporting documents, market research data, and any additional information relevant to the business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to coffee roasting. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your coffee roasting business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just needs to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2023

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans : This is the most common method, but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans : The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants : A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Venture capital : Offer potential investors an ownership stake in exchange for funds, keeping in mind that you would be sacrificing some control over your business.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal : Self-fund your business via your savings, the sale of property or other assets, and support from family and friends.

Bank and SBA loans are probably the best options, other than friends and family, for funding a coffee roasting business. You might also try crowdfunding if you have an innovative concept. 

Step 8: Apply for Coffee Roasting Business Licenses and Permits

Starting a coffee roasting business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your coffee roasting business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.  

You may want to use industry-specific software, such as Artisan , Cropster , or DEAR   to manage your inventory, purchasing, costs, and waste management.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

For your coffee roasting business, the marketing strategy should focus on highlighting the quality and uniqueness of your coffee beans, your roasting process, and the flavor profiles of your products. Emphasize your commitment to sourcing sustainable, high-quality beans and the artisanal aspect of your roasting. Here are some powerful marketing strategies for your future business:

Kickstart Marketing

• Professional Branding : Your branding should reflect the artisanal, premium quality of your coffee, from your logo to your packaging and overall aesthetic.
• Direct Outreach : Network with local cafes, restaurants, and specialty food stores to introduce your products and explore wholesale opportunities.

Digital Presence and Online Marketing

• Professional Website and SEO : Develop a website that showcases your coffee varieties, shares the story of your brand, and sells your coffee online. Use SEO best practices to optimize for search terms related to specialty coffee, artisan roasting, and online coffee sales.
• Social Media Engagement : Utilize platforms like Instagram, Facebook, and Pinterest to share beautiful images of your roasting process, coffee beans, and the people behind your brand.

Content Marketing and Engagement

• Coffee Education Blog : Share articles about coffee sourcing, the roasting process, brewing guides, and the stories behind your coffee varieties.
• Customer Reviews and Testimonials : Feature positive feedback from customers and businesses that use your coffee.
• Video Content : Create engaging videos that take viewers behind the scenes of your roasting process and share insights into what makes your coffee special.

Experiential and In-Person Engagements

• Coffee Tasting Events : Host coffee tastings for the public or potential wholesale customers to sample your range of coffees.
• Participation in Food and Coffee Expos : Attend food and coffee expos to showcase your products and connect with a wider audience.

Collaborations and Community

• Partnerships with Local Businesses : Team up with local bakeries or restaurants for coffee pairings or collaborative products.
• Community Engagement : Get involved in community events, sponsor local activities, and collaborate with local artisans to build brand recognition.

Customer Relationship and Loyalty Programs

• Subscription Services : Offer a subscription model where customers can receive a regular delivery of fresh coffee.
• Loyalty Rewards for Repeat Customers : Implement a rewards program for customers who frequently purchase your coffee.

Promotions and Advertising

• Targeted Online Advertising : Use digital advertising platforms to target coffee enthusiasts, gourmet food lovers, and business owners.
• Email Marketing : Keep your customers informed about new coffee releases, special events, and educational content through a regular newsletter.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your coffee roasting business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your coffee roasting business could be:

• Offer unique coffee blends only found in your roastery
• Invest in the most eco-friendly coffee roasting machine
• Create an efficient coffee subscription plan
• Expand your services to coffee consulting and training

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a roastery, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in coffee roasting for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in coffee. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.

Step 12: Build Your Team

If you’re starting out small from home, you may not need any employees and roast the coffee beans yourself. But as your business grows, you will likely need workers to fill various roles. Potential positions for a coffee roasting business would include:

• Coffee Roasters – handle the roasting operations
• Salespeople – sell to coffee shops and retailers
• Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Coffee Roasting Business – Start Making Money!

Keep in mind, not all coffee roasts are the same. It’s important that you know the difference between light and dark roasts. It’s also wise to determine from the start what kind of coffee roast you want to do and sell. You might want to do just the light roast or focus on medium-dark and dark roasts.

This is how you can set your business apart from the competition and increase your chances of success. Offering your own unique product or innovating on an existing product will help jumpstart your word-of-mouth marketing. 

You’re now ready to start your entrepreneurial journey with your coffee roasting business!

• Coffee Roasting Business FAQs

According to the World Economic Forum , a coffee roaster will typically see a net profit of roughly $0.44/lb or 7.1%. These figures are based on a cost of $8.73/lb and a wholesale selling price of $9.40/lb. The net profit margin is similar if you sell to a retail audience as well.

RK Drums , on the other hand, suggests that home-based coffee roasteries have a net profit margin closer to $7/lb.

While you can learn the process of roasting coffee in one weekend, perfecting the process will take you much longer. But like anything, the more you practice your roasting, the better you’ll get at it. It’s this process of perfecting your craft that will allow you to stand out from your competition and create a successful business.

The short answer is, it depends on your state. There are a number of licenses that your coffee company may need, which include a general business license and an EPA permit. You might be able to avoid getting an EPA permit if you’re operating at a low capacity, but it’s best to make sure what your local limits are.

The most popular coffee roast can vary based on regional preferences and individual taste. However, medium roast coffee is often considered the most popular choice among coffee drinkers worldwide. Medium roast strikes a balance between preserving the coffee’s inherent flavors and developing the roasty, caramelized notes associated with darker roasts.

Several factors influence the flavor and aroma of roasted coffee beans. These include the coffee bean’s origin, variety, and processing method. Roasting profile, including temperature, duration, and degree of roast, plays a significant role. Additionally, factors such as the roast level, moisture content, and even the brewing method impact the final taste and aroma of the brewed coffee.

Coffee roasters use a range of temperatures during the roasting process. The initial stage involves gradually raising the temperature, typically starting around 180-200°C (356-392°F) and progressing to higher temperatures. The specific temperatures and duration depend on the desired roast profile and the characteristics of the beans being roasted.

Yes, coffee typically benefits from a resting period after roasting, known as degassing or off-gassing. During roasting, carbon dioxide gas builds up within the coffee beans. Allowing the roasted beans to rest for a period of 12 to 48 hours allows the excess gas to escape, resulting in a smoother and more balanced flavor. 

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Coffee Roasting Business Name
• Create a Coffee Roasting Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Coffee Roasting Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Coffee Roasting Business - Start Making Money!

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How to open a coffee roasting company?

Want to start a coffee roasting company but don't know where to begin? Then you've come to the right place!

Our comprehensive guide covers everything related to opening a coffee roasting company - from choosing the right concept to setting out your marketing plan and financing your business.

You'll also learn how to assess the profitability of your business idea and decide whether or not it can be viable from a financial perspective.

Ready to kickstart your entrepreneurial journey? Let's begin!

In this guide:

• What is the business model of a coffee roasting company?
• What is the ideal founding team for my coffee roasting company?
• Is there room for another coffee roasting company on the market?
• How should I position my coffee roasting company on the market?
• Where should I base my coffee roasting company?
• What legal form should I choose for my coffee roasting company?

How much money do I need to start a coffee roasting company?

• How will I promote my coffee roasting company's?
• How do I build my coffee roasting company financial forecast?
• How do I choose a name and register my coffee roasting company?
• What corporate identity do I want for my coffee roasting company?
• What legal steps are needed to start a coffee roasting company?
• How do I write a business plan for a coffee roasting company?
• How to raise finance for my coffee roasting company?

What to do after launching my coffee roasting company?

Key takeaways, understanding how a coffee roasting company works.

The very first step when exploring a business idea such as starting a coffee roasting company is to make sure you understand how the business operates and makes money (which is what we call the business model).

This will not only give you an initial idea of how profitable the business can be, but it will also enable you to make sure that this is the right business idea for you, given your skills, start-up capital and family or personal lifestyle, in particular.

The best ways to get to grips with the coffee roasting company's business model are to:

Talk to coffee roasting company owners with experience

Work a few months in a coffee roasting company already in operation, take a training course.

Experienced coffee roasting company owners have valuable insights and can provide practical advice based on their firsthand experiences. 

They've likely encountered and overcome challenges that a newcomer might not anticipate. Learning from other’s mistakes can save you both time and money and potentially increase your venture’s chances of succeeding.

Obtaining work experience in the industry can be a crucial factor in confirming whether you truly want to start a coffee roasting company, as it provides insight into the day-to-day activities.

For instance, if the working hours are longer than expected or if other business requirements don't align with your personal lifestyle or preferences, you might reconsider your entrepreneurial goals.

Even if you've decided that this business idea is a good fit for you, gaining work experience will still be valuable. It helps you better understand your target market and customer needs, which is likely to be beneficial when launching your own coffee roasting company.

Obtaining training within your chosen industry is another way to get a feel for how a coffee roasting company works before deciding to pursue a new venture.

Whatever approach you choose to familiarise yourself with the business, before going any further with your plans to open a coffee roasting company, make sure you understand:

• What skills are required to run the business (compare this with your own skills)
• What a typical week in the business is like (compare this with your personal or family life)
• What is the potential turnover of a coffee roasting company and the long-term growth prospects (compare this with your level of ambition)
• Your options once you decide to sell the business or retire (it's never too early to consider your exit)

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Assembling your coffee roasting company's founding team

The next step to opening your coffee roasting company is to think about the ideal founding team, or to decide to go in alone.

Starting and growing a successful business doesn't have to be a solo journey and setting up a coffee roasting company with several co-founders is generally easier. The business benefits from a management team with a wider skillset, decisions are made together, and the financial risk is shared among the partners, making the journey more collaborative and less daunting.

But, running a business with several partners brings its own challenges. Disagreements between co-founders are quite common, and these can pose risks to the business. That's why it's crucial to consider all aspects before starting your own business.

We won't go into too much detail here, as this is a complex topic that deserves its own guide, but we do recommend that you ask yourself the following questions:

What is the ideal number of co-founders for this venture?

Are you on the same wavelength as your potential partners in terms of vision and ambition , how will you deal with potential failure.

Let's look at each of these questions in more detail.

To answer this question you will need to consider the following:

• What skills do you need to run the business? Are you lacking any?
• How much startup capital do you need? How much do you have?
• How are key decisions going to be made? - It is usually advisable to have an odd number of partners (or a majority shareholder) to help break the tie.

Put simply, your co-founders contribute skills, capital, or both. Increasing the number of partners becomes advantageous when there is a deficiency in either of these resources.

Your business partners should share the same short and long-term vision, be it business expansion or social responsibility, to avoid future frustrations and simplify decision-making. Different views are natural, but alignment is ideal.

In any case, you should think of having an exit mechanism in place in case one of the partners wants to move on.

We wish you nothing but success when starting up and growing your coffee roasting company, but it's always wise to have a backup in case things don't go as planned.

How you deal with a potential failure can vary significantly based on the relationship you have with your business partner (close friend, spouse, ex-colleague, etc.) and the personal circumstances of each of you. 

For instance, starting a business with your spouse might seem appealing, but if it doesn't succeed, you risk losing 100% of the household income at once, which could be stressful.

Similarly, going into a partnership with a friend can put pressure on the friendship in the event of failure or when you need to make difficult decisions.

There is no wrong answer, but it is essential to carefully evaluate your options before starting up to ensure you're well-prepared for any potential outcomes.

Conducting market research for a coffee roasting company

The next step in launching a coffee roasting company is to carry out market research. Let's take a look at what this involves.

The objectives of market research

The objective here is very simple: to assess the level of demand for your business and whether there is an opportunity for it to thrive in your chosen location. 

The first step will be to check that the market is not saturated with competing offers and that there is room for a new player: your coffee roasting company.

Your market analysis will also help you identify a concept and market positioning that has every chance of being successful in your target market, thereby helping increase your business's chances of success.

Carrying out market research for your coffee roasting company will also enable you to better understand the expectations of your future customers and the most effective ways to communicate with them in your marketing plan.

Analyse key trends in the industry

Your market research should start with an industry analysis in order to gain a good understanding of the main players and current trends in your sector.

Once you've delved into the current state of the market, it will be time to assess what proportion of your target market can be seized by your coffee roasting company. To do this, you will need to consider both the demand and supply side of the market.

Assess the demand

After checking out the industry, let's shift our focus to figuring out what your potential customers want and how they like to buy.

A classic mistake made by first-time entrepreneurs is to assess demand on the global or national market instead of concentrating on their target market. Only the market share that can be captured by your company in the short term matters. 

Your demand analysis should seek to find answers to the following questions:

• Who are your target customers?
• How many are there?
• What are their expectations?
• What are their buying habits?
• How much budget do they have?
• What are the different customer segments and their characteristics?
• What are the main distribution channels and means of communication for reaching each segment?

The aim of the demand analysis is to identify the customer segments that could be targeted by your coffee roasting company and what products and services you need to offer to meet their expectations.

Analyse the supply side

You will also have to familiarize yourself with the competing coffee roasting companies on the market targeted by your future business.

Amongst other things, you’ll need to ask yourself:

• Who are the main competitors?
• How many competitors are already present?
• Where are they located?
• How many people do they employ?
• What is their turnover?
• How do they set their prices?
• Are they small independent businesses or national players?
• Do they seem to be in difficulty or are they flourishing? 
• What is their market positioning?
• What types of products and services do they offer?
• What do customers seem to like about them?

The aim of the competitive analysis is to identify who your competitors will be and to gather information that will help you find a differentiating commercial positioning (more on that later in this guide).

Regulations

Conducting market research is also an opportunity to look at the regulations and conditions required to do business.

You should ask yourself the following questions:

• Do you need to have a specific degree to open a coffee roasting company?
• Do you need specific licences or permits?
• What are the main regulations applicable to your future business?

Given that your project is at an early stage, your focus should be to ensure that there are no roadblocks from a regulatory standpoint before you deep dive into the planning process.

Once your project is more advanced, you will have the opportunity to talk about regulation more in-depth with your lawyer.

Concluding your market research

By the time your market research is completed, you should have either:

• Pinpointed an untapped business opportunity,
• Or arrived at the realisation that the market is saturated, prompting the search for alternative business ideas or models.

If the conclusion is that there is an opportunity in the market to cater to one or more customer segments currently underserved by competitors, that's great!

Conversely, if you come to the conclusion that the market is already saturated, don’t panic! The good news is that you won’t spend several years working hard on a project that has little chance of success. There is no shortage of business ideas either - at The Business Plan Shop, we have identified more than 1,300 potential business ideas!

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Choosing the right concept and positioning for your coffee roasting company

Once your market research is completed, it's time to consider the type of coffee roasting company you want to open and define precisely your company's market positioning in order to capitalise on the opportunity you identified during your market research.

Market positioning refers to the place your product and service offering occupies in customers' minds and how they differ from competing products and services. Being perceived as the premium solution, for example.

There are four questions you need to consider: 

How will you compete with and differentiate yourself from competitors already on the market?

Is it better to start or buy a coffee roasting company already in operation, how will you validate your concept and market positioning.

Let's look at each of these in a little more detail.

When you choose to start up a coffee roasting company, you are at a disadvantage compared to your rivals who have an established presence on the market. 

Your competitors have a reputation, a loyal customer base and a solid team already in place, whereas you're starting from scratch...

Entering the market and taking market share from your competitors won't happen automatically, so it's important to carefully consider how you plan to establish your presence.

There are four questions to consider here: 

• Can you avoid direct competition by targeting a customer segment that is currently poorly served by other players in the market?
• Can you offer something unique or complementary to what is already available on the market?
• How will you build a sustainable competitive advantage for your coffee roasting company? 
• Do you have the resources to compete with well-established competitors on your own, or would it be wiser to explore alternative options?

Also, think about how your competitors will react to your arrival in their market.

An alternative to opening a new business is to take over a coffee roasting company already trading. 

Purchasing an existing coffee roasting company means you get a loyal customer base and an efficient team. It also avoids disrupting the equilibrium in the market by introducing a new player.

A takeover hugely reduces the risk of the business failing compared to starting a new business, whilst giving you the freedom to change the market positioning of the business taken over if you wish.

This makes buying an existing coffee roasting company a solid alternative to opening your own.

However, buying a business requires more capital compared to starting a coffee roasting company from scratch, as you will need to purchase the business from its current owner.

Regardless of how you choose to establish your business, it's crucial to make sure that the way you position your company aligns with the expectations of your target market.

To achieve this, you'll have to meet with your potential customers to showcase your products or services and get their feedback.

Explore the ideal location to start your coffee roasting company

The next stage in our guide on how to start a coffee roasting company: choosing where to set up shop.

Setting up your business in the right location will have a direct impact on your chances of success, so it's a good idea to think things through before you launch.

To help you decide where to set up your business, we recommend considering the following factors:

• Visibility and foot traffic - For a retail business like a coffee roasting company, it is important to be in a location with high visibility and foot traffic to attract customers.
• Parking space, road and public transport accessibility - Customers need to have easy access to the location, whether by car or public transportation. This also includes ample parking space for customers who choose to drive.
• Proximity to target customers - The location should be near areas with a high concentration of the target market, such as business districts, colleges, or residential areas.
• Competitor presence - It is important to consider the presence of competitors in the area. While some competition can be beneficial, too much can make it difficult to stand out.

These criteria will need to be refined according to the specific features of your project.

After weighing the factors mentioned earlier, it's crucial to focus on your startup's budget. Look for a location that suits your business needs while being affordable, especially in the short term.

One of the issues that will also come up is the long-term future of your location, particularly if you opt to rent your premises rather than buy. In this case, you will need to consider the conditions for renewing the lease (duration, rent increases, etc.).

Lease agreements vary widely from country to country, so make sure you check the terms applicable to your situation and have your lawyer review your lease before you sign.

Decide on a legal form for your coffee roasting company

It's now time to think about the legal structure for your coffee roasting company.

The legal form of a business simply means the legal structure it operates under. This structure outlines how the business is set up and defines its legal obligations and responsibilities.

What are the most common legal structures?

Naturally, the names and intricacies of business structures differ by country. However, they typically fit into two main categories:

Individual businesses

Individual businesses are usually a good fit for self-employed individuals and freelancers who want limited administrative work. These types of entrepreneurs are commonly referred to as sole traders or sole proprietorships.

As mentioned above, the main benefit of being a sole trader is that minimal paperwork is required to launch and operate the business. Tax calculations are also relatively simple and annual accounts are not always required (and when they are, usually don't need to be audited) which saves a bit of time and money on bookkeeping and accounting fees.

Decision-making is also easy as the final decision is fully dependent on the sole trader (even if employees are hired).

However, being a sole trader also has drawbacks. The main disadvantage is that there is no separation between the individual running day-to-day operations and the business.

This means that if the business were to file for bankruptcy or legal disputes were to arise, the individual would be liable for any debts and their personal assets subsequently at risk. In essence, sole traders have unlimited liability.

This also means that profits earned by the business are usually taxed under the personal income tax category of the sole trader.

Another drawback is that sole traders might find it harder to finance their business. Debt (bank loan for example) is likely to be the only source of external financing given that the business doesn't have a share capital (effectively preventing equity investors from investing in their business).

Companies are more flexible and more robust than individual businesses. They are suitable for projects of all sizes and can be formed by one or more individuals, working on their own or with employees.

Unlike individual businesses, companies are recognised as distinct entities that have their own legal personality. Usually, there is also a limited liability which means that founders and investors cannot lose more than the capital they have invested into the business.

This means that there is a clear legal separation between the company and its owners (co-founders and investors), which protects the latter's personal assets in the event of legal disputes or bankruptcy.

Entrepreneurs using companies also gain the advantage of being able to attract equity investment by selling shares in the business.

As you can see companies offer better protection and more financing options, but this comes at a trade-off in terms of red-tape and complexity.

From a taxation perspective, companies are usually liable for corporation tax on their profits, and the income received by the owners running the business is taxed separately (like normal employees).

Normally, companies also have to produce annual accounts, which might have to be audited, and hold general assemblies, among other formalities.

How should I choose my coffee roasting company's legal setup?

Choosing the right legal setup is often simple once you figure out things like how many partners you'll have, if you hire employees, and how much money you expect to make.

Remember, a great business idea can work well no matter which legal structure you pick. Tax laws change often, so you shouldn't rely too much on getting specific tax benefits from a certain structure when getting started.

You could start by looking at the legal structures most commonly utilised by your competitors. As your idea evolves and you're ready to officially register your business, it's a good idea to confirm your choice using inputs from a lawyer and an accountant.

Can I switch my coffee roasting company's legal structure if I get it wrong?

Yes, you have the flexibility to change your legal setup later, which might include selling the existing one and adopting a new structure in certain situations. Keep in mind, though, that this restructuring comes with additional expenses, so making the right choice from the start is usually more cost-effective.

To answer this key question, we first need to look at the resources you'll need to launch your coffee roasting company and keep it running on a daily basis. Let's take a look at what that entails.

Since each venture is distinct, providing an average budget for starting a coffee roasting company is impossible.

We strongly advise careful consideration when reading estimates on the web. It’s best to ask yourself the following questions:

• Is my project similar (location, concept, planned size, etc.)?
• Can I trust where this information is coming from?
• Is the data fresh or stale?

Your thinking behind the investments and human resources required to launch and operate the business will then enable you to cost each item and include them in your financial forecast (which we'll look at later in this guide).

Once complete, the forecast will give you a precise idea of the initial investment required and profitability potential for your business idea.

Startup costs and investments to start a coffee roasting company

Let's start with the investments. To set up a coffee roasting company, initial working capital and investments can include the following items:

• Coffee Roaster Machine: This is the most essential equipment for a coffee roasting company. It is used to roast the green coffee beans and gives the coffee its distinctive flavor. Depending on the size of your operations, you may need to invest in a commercial-grade coffee roaster machine.
• Grinder: A grinder is used to grind the roasted coffee beans into different sizes, depending on the brewing method. A quality grinder is important for achieving consistent and high-quality coffee. You may need to invest in multiple grinders for different types of coffee beans or brewing methods.
• Packaging Equipment: To package and seal the roasted coffee beans, you will need packaging equipment such as bags, labels, and a sealing machine. The packaging equipment should be able to preserve the freshness and aroma of the coffee beans. You may also need to invest in a labeling machine to ensure accurate and professional labeling of your products.
• Storage and Shelving: A coffee roasting company needs to store and organize a variety of coffee beans, packaging materials, and equipment. Investing in storage and shelving solutions will help you maximize space and keep your products organized and easily accessible.
• Delivery Vehicle: If you plan on delivering your roasted coffee beans to customers or retail stores, you may need to invest in a delivery vehicle. This could be a small van or truck, depending on the volume of your deliveries. It is important to keep the vehicle in good condition to ensure timely and efficient delivery of your products.

Of course, you will need to adapt this list to your company's specific needs.

Staffing requirements to operate a coffee roasting company

You'll also need to think about the staff required to run the business on a day-to-day basis.

The human resources required will vary according to the size of your company.

Once again, this list is only indicative and will need to be adjusted according to the specifics of your coffee roasting company.

Operating expenses of a coffee roasting company

The final point to consider when analyzing the resources required is the question of operating costs.

Operating expenses for a coffee roasting company may include:

• Staff Costs: Your employees will be one of your biggest expenses, including salaries, wages, and benefits such as health insurance and retirement plans.
• Accountancy Fees: You will need to hire an accountant to help you manage your finances, prepare taxes, and ensure compliance with financial regulations.
• Insurance Costs: You will need to have insurance for your business, including general liability insurance, property insurance, and workers' compensation insurance.
• Software Licenses: You will need to purchase licenses for software programs to help you with tasks such as inventory management, payroll, and accounting.
• Banking Fees: Your bank may charge fees for services such as checking accounts, credit card processing, and wire transfers.
• Raw Materials: As a coffee roasting company, your main raw material will be coffee beans. You will need to budget for the cost of purchasing high-quality beans from suppliers.
• Packaging Materials: You will also need to purchase packaging materials such as bags, labels, and boxes for your roasted coffee beans.
• Utilities: Your business will have ongoing expenses for utilities such as electricity, gas, and water to power your roasting equipment and keep your facility running.
• Rent: If you are not roasting coffee beans at home, you will need to budget for the cost of renting a commercial space for your roasting operations.
• Marketing and Advertising: You will need to promote your coffee roasting company to attract customers. This may include expenses for social media advertising, print materials, and hosting events.
• Maintenance and Repairs: Your roasting equipment will require regular maintenance and occasional repairs, which should be factored into your operating expenses.
• Shipping and Delivery Costs: If you are selling your roasted coffee beans online or to wholesale customers, you will need to cover the cost of shipping and delivery.
• Training and Education: To stay competitive in the coffee industry, you may need to invest in ongoing training and education for yourself and your employees.
• Office Supplies: You will need to purchase office supplies such as paper, printer ink, and pens for your administrative tasks.
• Tasting and Sampling Costs: As a coffee roasting company, you may need to participate in trade shows and events where you can offer samples of your coffee. This will require budgeting for the cost of coffee beans and supplies for these events.

Here also, this list will need to be tailored to the specifics of your coffee roasting company but should be a good starting point for your budget.

Creating a sales & marketing plan for your coffee roasting company

The next step to start a coffee roasting company is to think about how you are going to attract and retain customers.

You need to ask yourself the following questions: 

• What actions can be leveraged to attract as many customers as possible?
• How will you then retain customers?
• What resources do you need to allocate for each initiative (human and financial)?
• How many sales and what turnover can you expect to generate in return?

How you will attract and retain customers depends on your ambition, the size of your startup and the nature of your exact concept, but you could consider the following initiatives.

Your sales forecast may also be influenced by seasonality related to your business type, such as fluctuations during busy holiday periods, and your competitive environment.

Build your coffee roasting company's financial forecast

The next step to start your coffee roasting company: putting your financial projections together.

What is the financial forecast for a coffee roasting company?

A forecast is a quantified decision-making document that shows the initial investment required to open a coffee roasting company and the company's potential profitability and cash flow generation over the next 3 to 5 years.

As you think about your coffee roasting company idea, the main role of financial projections will be to help you decide whether it makes sense to create the company.

Building a financial forecast helps determine the amount of initial financing required to start your coffee roasting company.

In fact, creating financial projections is the only way to assess the amount of initial financing you'll need to open your coffee roasting company, and to make sure your project makes economic and financial sense.

Keep in mind that very few business ideas are financially viable. At The Business Plan Shop, we've seen nearly a million business start-up ideas, and we estimate that less than one in four is economically viable.

Your forecast will therefore require your full attention and constant revision, as your project matures. It's also a good idea to simulate different scenarios to anticipate several possibilities (what happens if your sales take longer than expected to ramp up, for example), so you're ready for all eventualities.

When seeking financing, your forecast will be incorporated into your business plan, which is the document you will use to present your business idea to financial partners. We'll come back to the business plan in more detail later in this guide.

Creating and updating your coffee roasting company's forecast is an ongoing process. Indeed, having up-to-date financial projections is the only way to maintain visibility over your company's future cash flow and cash position.

Forecasting is, therefore, the financial management tool that will be with you throughout the life of your company. Once you've started trading, you'll need to regularly compare the difference between your actual accounts and your forecasts, and then adjust them to maintain visibility over your future cash flows.

What does a financial projection look like?

The following financial tables will be used to present your coffee roasting company's financial forecast.

The projected P&L statement

Your coffee roasting company's forecasted P&L statement will enable you to visualise your coffee roasting company's expected growth and profitability over the next three to five years.

The projected balance sheet of your coffee roasting company

The projected balance sheet gives an overview of your coffee roasting company's financial structure at the end of the financial year.

The cash flow projection

A cash flow forecast for a coffee roasting company shows the projected inflows and outflows of cash over a specific period, providing insights into liquidity and financial health.

Which solution should you use to make a financial forecast for your coffee roasting company?

The easiest and safest way to create your coffee roasting company forecasts is to use an online financial forecasting software , like the one we offer at The Business Plan Shop.

There are several advantages to using professional software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You have access to complete financial forecast templates
• You get a complete financial forecast ready to be sent to your bank or investors
• The software helps you identify and correct any inconsistencies in your figures
• You can create scenarios to stress-test your forecast's main assumptions to stress-test the robustness of your business model
• After you start trading, you can easily track your actual financial performance against your financial forecast, and recalibrate your forecast to maintain visibility on your future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you are interested in this type of solution, you can try our forecasting software for free by signing up here .

Choose a name and register your coffee roasting company

The next phase in launching your coffee roasting company involves selecting a name for your company.

This stage is trickier than it seems. Finding the name itself is quite fun; the difficulty lies in finding one that is available and being the first to reserve it.

You cannot take a name that is similar to a name already used by a competitor or protected by a registered trademark without inevitably risking legal action.

So you need to find a name that is available, and be able to register it before someone else can.

In addition, you will probably want to use the same name for:

• Your company’s legal name - Example LTD
• Your business trading name - Example
• The trademark - Example ® 
• Your company’s domain name - Example.com

The problem is that the procedures for registering these different names are carried out in different places, each with their own deadlines:

• Registering a domain name takes only a few minutes
• Registering a new trademark takes at least 12 weeks (if your application is accepted)
• The time taken to register a new business depends on the country, but it's generally fast

You will therefore be faced with the choice of: either registering everything at once and hoping that your name will be accepted everywhere, or proceeding step by step in order to minimise costs, but taking the risk that someone else will register one of the names you wanted in the meantime.

Our advice is to discuss strategy with your legal counsel (see further down in this guide) and prioritise your domain names and registered trademarks. You'll always have the option of using a trade name that's different from your company's legal name, and that's not a big deal.

To check that the name you want is not already in use, you should consult:

• Your country's business register
• The relevant trademark registers depending on which countries you want to register your trade mark in
• A domain name reservation company such as GoDaddy
• An Internet search engine

In this area too, your legal counsel will be able to help with the research and formalities.

Develop your coffee roasting company's corporate identity

The next step to launching a coffee roasting company: defining your company's visual identity. 

Your corporate identity defines how your company's values are communicated visually. It makes you unique and allows you to stand out visually from your competitors and be recognized by your customers.

Defining your corporate identity can easily be done by you and your co-founders, using the many free tools available to generate color palettes, logos and other graphic elements. Nevertheless, this task is often best entrusted to a designer or agency to achieve a professional result.

Your coffee roasting company's visual identity will include the following elements:

Brand guidelines

Business cards, website theme.

The goal is to have stakeholders identify your business logo quickly and relate to it. Your logo will be used for media purposes (website, social networks, business cards, etc.) and legal documents (invoices, contracts, etc.).

The design of your logo must be emblematic, but it's also important that it can be seen on any type of support. To achieve this, it should be easily available in a range of colors, so that it stands out on both light and dark backgrounds.

The brand guidelines of your coffee roasting company act as a safeguard to ensure that your image is consistent whatever the medium used.

Brand guidelines lay out the details like the typography and colors to use to represent your company.

Typography refers to the fonts used (family and size). For example, Arial in size 26 for your titles and Tahoma in size 15 for your texts.

When it comes to the colors representing your brand, it's generally a good idea to stick to five or fewer:

• The main colour, 
• A secondary colour (the accent),
• A dark background colour (blue or black),
• A grey background colour (to vary from white),
• Possibly another secondary colour.

A rare paper medium that continues to survive digitalization, business cards are still a must-have for communicating your coffee roasting company contact details to your customers, suppliers and other partners.

In principle, they will include your logo and the brand guidelines we mentioned above.

Likewise, the theme of your coffee roasting company website will include your logo and follow the brand guidelines we discussed earlier.

This will also define the look and feel of the main visual elements on your website:

Understanding the legal and regulatory steps involved in opening a coffee roasting company

The next step in opening a coffee roasting company is to take the necessary legal and regulatory steps. 

We recommend that you be accompanied by a law firm for all of the steps outlined below.

Registering a trademark and protecting the intellectual property of your coffee roasting company

The first step is to protect your company's intellectual property. 

As mentioned earlier in this guide, you have the option to register a trademark. Your lawyer can assist you with a thorough search to ensure your chosen trademark is unique and doesn't conflict with existing ones and help select the classes (economic activities) and jurisdictions in which to register your trademark. 

Your lawyer will also be able to advise you on other steps you could take to protect your company's other intellectual property assets.

Drafting the contractual documents for your coffee roasting company

Your coffee roasting company will rely on a set of contracts and legal documents for day-to-day operations. 

Once again, we strongly recommend that you have these documents drawn up by a lawyer. 

Your exact needs will depend on the country in which you are launching your coffee roasting company and the size of the company you are planning. 

However, you may wish to consider the following documents at a minimum: 

• Employment contracts 
• General terms and conditions of sale
• General terms and conditions of use for your website
• Privacy Policy for your website
• Cookie Policy for your website

Applying for licences and permits and registering for various taxes

The licenses and permits needed for your business will depend on the country where you are establishing it. Your lawyer can guide you on the regulations relevant to your activity.

Similarly, your chartered accountant will be able to help you register for taxes and take the necessary steps to comply with the tax authorities.

Writing a business plan for your coffee roasting company

The next step in opening a coffee roasting company is to draw up your business plan.

What is a coffee roasting company's business plan?

A business plan serves as a comprehensive roadmap outlining the objectives, strategies, and key components of your venture. 

There are two essential parts to a business plan:

• A numerical part, the financial forecast we mentioned earlier in this guide, which highlights the amount of initial financing needed to launch the business and its potential profitability over the next 3 to 5 years,
• A written part, which presents in detail the project of creating a coffee roasting company and provides the necessary context to enable the reader of the business plan to judge the relevance and coherence of the figures included in the forecast.

Your business plan helps guide decision-making by showcasing your vision and financial potential in a coherent manner.

Your business plan will also be essential when you're looking for financing, as your financial partners will ask you for it when deciding whether or not to finance your project to open a coffee roasting company. So it's best to produce a professional, reliable, and error-free business plan.

In essence, your business plan is the blueprint to turn your idea into a successful reality. 

What tool should you use to create your coffee roasting company business plan?

If you want to write a convincing business plan quickly and efficiently, a good solution is to use an online business plan software for business start-ups like the one we offer at The Business Plan Shop.

Using The Business Plan Shop to create a business plan for a coffee roasting company has several advantages :

• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete startup business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can create scenarios to stress test your forecast's main assumptions
• You can easily track your actual financial performance against your financial forecast by importing accounting data
• You can easily update your forecast as time goes by to maintain visibility on future cash flows

If you're interested in using our solution, you can try The Business Plan Shop for free by signing up here .

Financing the launch of your coffee roasting company

Once your business plan has been written, you’ll need to think about how you might secure the funding required to open your coffee roasting company.

The amount of initial financing required will of course depend on the size of your coffee roasting company and the country in which you wish to set up.

Financing your startup will probably require you to obtain a combination of equity and debt, which are the primary financial resources available to businesses.

Equity funding

Equity refers to the amount of money invested in your coffee roasting company by founders and investors and is key to starting a business.

Equity provides your company with stable, long-term (often permanent) capital. It also demonstrates the commitment of the company's owners to the project, since these sums can be lost in the event of bankruptcy.

Because the equity invested by the founders may be lost if the project doesn't succeed, it signals to investors and other financial institutions the founders' strong belief in the business's chances of success and might improve the likelihood of obtaining further funding as a result.

In terms of return on investment, equity investors receive dividends paid by the company (provided it is profitable) or realise capital gains by reselling their shares (provided they find a buyer interested in the company).

Equity investors are, therefore, in a very risky position. They stand to lose their initial investment in the case of bankruptcy and will only obtain a return on investment if the business manages to be profitable or sold. On the other hand, they could generate a very high return if the venture is a financial success.

Given their position, equity investors are usually looking to invest in business ventures with sufficient growth and profitability potential to offset their risk.

From the point of view of the company and its creditors, equity reduces risk, since equity providers finance the company and are only remunerated in the event of success.

From a technical standpoint, equity consists of:

• Share capital and premiums: which represent the amount invested by the shareholders. This capital is considered permanent as it is non-refundable. In return for their investment, shareholders receive shares that entitle them to information, decision-making power (voting in general assembly), and the potential to receive a portion of any dividends distributed by the company.
• Director loans: these are examples of non-permanent capital advanced to the company by the shareholders. This is a more flexible way of injecting some liquidity into your company than doing so as you can repay director loans at any time.
• Reserves: these represent the share of profits set aside to strengthen the company's equity. Allocating a percentage of your profits to the reserves can be mandatory in certain cases (legal or statutory requirement depending on the legal form of your company). Once allocated in reserves, these profits can no longer be distributed as dividends.
• Investment grants: these represent any non-refundable amounts received by the company to help it invest in long-term assets.
• Other equity: which includes the equity items which don't fit in the other categories. Mostly convertible or derivative instruments. For a small business, it is likely that you won't have any other equity items.

The main sources of equity are as follows:

• Personal contribution from the founders' savings.
• Private investors: business angels, friends and family.
• Crowdfunding campaigns to find investors or collect donations (usually in exchange for a gift).
• Government initiatives such as loans on favourable terms to help partners build up their start-up capital.

Debt funding

Another option for partially funding your coffee roasting company is to borrow.

By definition, debt works in the opposite way to equity:

• Debt needs to be repaid, whereas equity is permanent.
• Lenders get a contractually guaranteed return, whereas equity investors only generate a return if the company is a success.

When a company borrows money, it agrees to pay interest and repay the borrowed principal according to a pre-established schedule. Therefore, lenders make money regardless of whether the company is profitable and their main risk is if the company goes bankrupt.

To limit their risk, lenders are usually conservative and cautious in their approach. They only finance projects where they are confident that they will be repaid in full.

Companies borrow in two ways:

• Against their assets: this is the most common way of borrowing. The bank finances a percentage of the price of an asset (a vehicle or a building, for example) and takes the asset as collateral. If the company cannot repay, the bank seizes the asset and sells it to limit its losses.
• Against their future cash flows: the bank evaluates the company's financial forecast to estimate its borrowing capacity and assesses the conditions (amount, interest rate, term, etc.) on which it is prepared to lend, taking into account the credit risk posed by the company.

It's difficult to borrow against future cash flow when setting up a coffee roasting company, because the business doesn't yet have historical data to reassure lenders about the credibility of the forecasted cash flows.

Borrowing against assets is, therefore, often the only option available to entrepreneurs. What's more, the assets that can be financed with this option must be easy to resell, in the unfortunate event that the bank is forced to seize them, which may limit your options even further.

In terms of possible sources of borrowing, the main sources here are banks and credit institutions. Bear in mind, however, that each institution is different, both in terms of the risk it is prepared to accept and in terms of how the risk of your project will be perceived and what items it will agree to finance.

In some countries, it is also possible to borrow from private investors (directly or via crowdlending platforms) or other companies, but not everywhere.

Things to remember about financing a coffee roasting company

There are various ways you can raise the initial financing you need to open your coffee roasting company. A minimum amount of equity will be needed to give the project credibility, and bank financing can be sought to complete the package.

Launching your coffee roasting company is the beginning of an exciting entrepreneurial adventure, and the culmination of your efforts to turn your idea into a reality. But this is also when the real work begins.

As you know, nearly half of all new businesses fail, so you'll need to do everything you can to make your business sustainable right from the start.

Estimating the future financial performance of a coffee roasting company inevitably involves a degree of uncertainty. That's why we recommend simulating several scenarios: a central case with the most likely scenario, an optimistic case, and a pessimistic case designed to test the limits of your business model.

Normally, your company's actual financial performance, observed after you start trading, should fall somewhere between your pessimistic and optimistic cases.

The important thing will be to quickly measure and compare this actual performance with the figures in your forecast to see where you stand, then update the forecast to re-estimate the future cash flows and cash position of your coffee roasting company.

This forward-looking financial management exercise is the only way to know where you stand and where you're going. And, when your figures fall short of expectations, to quickly implement actions to turn things around before the company runs out of cash.

There's nothing more dangerous than waiting until you have your accounts, which takes up to nine months after the end of your financial year (if you are in the UK, abroad your mileage will vary), to then realize that you're not on the right track and that your coffee roasting company won't have enough cash to operate over the next twelve months.

This is where using a forecasting solution that integrates actuals vs. forecast tracking, like The Business Plan Shop's financial dashboards do, can simplify the financial management of your business and help reduce the risk associated with your start-up project.

• To open a coffee roasting company you need to go through each of the 15 steps we have outlined in this guide.
• The financial forecast is the tool that will enable you to check that your project can be profitable and to estimate the investment and initial financing requirements.
• The business plan is the document that your financial partners will ask you to produce when seeking finance.
• Once you have started trading, it will be essential to keep your financial forecasts up to date in order to maintain visibility of the future cash flow of your coffee roasting company.
• Leveraging a financial planning and analysis platform that seamlessly integrates forecasts, business plans, and real-time performance monitoring — like The Business Plan Shop — simplifies the process and mitigates risks associated with launching a business.

We hope this practical guide has given you a better understanding of how to open a coffee roasting company. Please do not hesitate to contact our team if you have any questions or if you would like to share your experience of setting up your own business.

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Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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How to Start a Coffee Roasting Business in 2024: 5 Expert Tips

Starting a coffee roasting business is a big undertaking and not something you should decide to do lightly, but it might not be as daunting as it sounds. We know roasters who started in their backyards roasting for friends and family. We’ve even heard about a college student running a roasting business out of their dorm with a custom-made roaster.

We’re not suggesting it’s an easy thing to do, but there are actually relatively few essential pieces to starting a roasting business compared to starting some other kinds of businesses. It’s even feasible – although not recommended – to run a roasting business as an individual. In this guide, we’re going to go through the steps required and teach you how to start a coffee roasting business. You won’t be gunning for Starbucks’ market share any time soon, but you have to start somewhere! Let’s dive right in:

• Before You Start Your Coffee Roasting Business…

Before we get into the specific details, we think it’s a good idea to take a step back and set a few things straight. First of all, there are many paths to success in most endeavors, and a roasting business is no exception. We don’t claim that this is the only way to do it, but we think, for most people, the steps we put forth here are a reasonable start.

Second, there is a huge range of scales that a roasting business could operate on. The college student we mentioned in the beginning certainly had his own roasting business, but he sold less than 100 pounds of coffee a month. A professional scale roaster with a 25-pound roaster could surpass 100 pounds in a single day.

Top 5 Tips For Starting a Coffee Roasting Business:

• 1. Make a business plan

This is an essential step, and “start a coffee roasting business” doesn’t count as a business plan. You need to figure out how much money you will need and how much you’re willing to invest.

• Green coffee
• A heat sealer

This is the absolute bare minimum and doesn’t cover regulatory fees or licensing fees that vary tremendously depending on where you’re located.

The two biggest cost items on that list are the roaster and the premises. Coffee roasters can be very expensive if you want a professional scale machine. San Franciscan is a manufacturer of professional-grade coffee roasters, and their 1 lb roaster costs about $11,000! That is far too low of a capacity to produce any serious amount of coffee, and a 25 lb roaster is proportionally more expensive.

Many people get started with cheap roasters since the barrier to entry is so much lower. It is tempting to purchase a relatively cheap roaster, but know that you pay more for a smaller sized roaster in the long run. More roasting capacity means you will reach break-even sooner even though the initial cost of a large roaster is higher. Read our guide to choosing a home coffee roaster here !

The second-largest cost is the location where you will do the actual roasting. Rent prices vary depending on where you live, but there are also the costs of getting your premises inspected. Many countries and US states have different requirements, but most require you to operate out of a food-safe kitchen, and getting approval costs money.

The rest of the list is fairly cheap by comparison, but you should research the costs of the equipment you’re interested in using to get an estimate of the total startup cost. A very rough estimate that takes into account the price of green beans and all of the equipment suggests that you can expect a gross profit of $5 per pound of green coffee you purchase. Once you estimate your startup cost, you can use this profit estimate to calculate how long it will take for you to break even – assuming you can find people to buy your coffee.

And that brings us to step two.

• 2. Build an audience

This is probably the hardest part of starting any new business, regardless of what you’re trying to sell. Starting a coffee roasting business actually has an advantage in this regard since there is already a large audience of coffee drinkers out there. The challenge is to get them to try your coffee, and that isn’t easy.

A great way to build an audience more quickly is to focus on selling your coffee wholesale to local restaurants and cafés . Using the local connection is often enough to get your foot in the door with some businesses. If you offer your coffee at a discounted rate to start, you might be able to get your coffee sold to a large audience. This is essential for growth.

Wholesale accounts are the most reliable way to generate continuing revenue because the orders will be large and consistent. On the other hand, you need to keep up with large order volumes even if you only have a single wholesale account. If you’re starting out with a small roaster, you need to consider any client’s requirements carefully. A large order from a local restaurant sounds great but won’t do you any good if you can’t meet their expectations.

It’s worth mentioning that thinking outside the box can be beneficial. When you’re looking for large clients, don’t limit yourself to restaurants or cafés only. These are great options, but hotels, office buildings, grocery stores, and local markets are all good candidates as well. Think about what businesses around you drink coffee in large volumes and reach out to them. The worst-case scenario is they decline, and it only takes one to get your business off the ground.

If you start on a roaster with under a 5-pound capacity, you probably won’t be able to sell to big clients. In this case, selling online is an option. Online sales require a website, so you’ll need to hire a developer if you’re not comfortable with technology. Modern website building tools make it very easy to create your own website with minimal knowledge required. It’s worth checking these out if you want to have an online presence.

• 3. Leverage social media

This is related to the last step but is different enough to warrant it’s own section. Building an audience from nothing requires legwork and creating contacts in the industry, but maintaining your audience and growing it beyond your local shops requires something more. In today’s world, social media is a great tool for new businesses looking to expand their reach.

We think it is essential for an up-and-coming coffee roaster to have an Instagram account and a Facebook page. More people connect on Facebook than any other platform. If you already have local customers, having them follow you on Facebook gets them to engage with your brand and increases the visibility you have to other potential customers.

Instagram serves a similar but slightly different purpose. Coffee can be visual, and Instagram is a great way to tap into a different userbase than Facebook. Coffee has almost universal popularity across many demographics, so targeting all ages and types of coffee drinkers is possible and important.

There are so many ways to use social media to promote your new roasting business that you really are only limited by your creativity. Running giveaways in exchange for follows is a popular technique and, most importantly, gets people to try your coffee. Word of mouth is powerful, and on the back of a lively social media presence can dramatically increase your customer base.

• 4. Perfect your craft

Until now, we’ve glossed over a rather important point: learning how to roast coffee takes time. Roasting coffee is a skill, and getting to the point where you can roast high-quality coffee consistently will take a lot of effort. It’s easy to get caught up in the logistics of running a business and forget about the core feature: the coffee.

This will sound like a cliché, but if you don’t have good coffee , the best marketing, networking, and business plan in the world won’t make you a success. The easiest way to build and keep an audience is to make stellar coffee. Most professional roasters come with automation features that help you get your roasts just right, but there is a steep learning curve. Knowing how to make changes to the roast profile is one thing, but knowing how those changes will influence the taste only comes with practice.

Another aspect of making excellent coffee is making sure people know the best way to enjoy your coffee. We think providing educational material about how to brew your coffee can go a long way to connecting with customers. Dedicating part of your website to brew guides, roast descriptions, and general information about the coffee-making process builds your authority in the coffee world and helps encourage people who visit your website to try your coffee.

• 5. Be prepared for setbacks

This is generic advice, but it’s important enough to warrant its own number. Starting a business is all about spending long days making little money and solving big problems. Whatever the image you have in your head of what it will be like, odds are there will be things to deal with that you never anticipated. Being able to persevere and get a little closer each day to your ideal picture of a roasting business is essential.

You will have to manage your inventory, agreements with green coffee bean providers , client relationships, website management, order processing, and that’s to say nothing of the actual roasting! Just one of these tasks is enough to warrant a full-time job, and this isn’t even an exhaustive list.

If you can find a partner to start your roasting business with, your life will be much easier. A partner can take on some of the work and serve as encouragement and support when things start to go awry. Having a business partner comes with its own challenges, so choose who you work with wisely. A good partner is the easiest way to increase your chance of success.

This guide only scratches the surface of what you’ll face starting a roasting business. Our intention here isn’t to provide you with a comprehensive overview of every detail but instead to give you a sense of what goes into starting a coffee roasting business at a high level.

We hope that you have a better sense now of what it takes and some of the challenges you’ll face if you decide to start a roasting business. Roasting coffee isn’t easy by any means, but there is a relatively low barrier to entry compared to other businesses. Still, to really succeed will take hard work, people skills, and an unparalleled passion for delicious coffee .

Featured image credit: gedsarts, Pixabay

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Coffee Roasting Business Plan Example

JUL.17, 2018

Do you want to start a coffee roasting business?

Starting a coffee roasting business is one of the best decisions you can ever make given the increasing popularity of coffee uptake. According to statistics from the National Coffee Association, the number of Americans consuming coffee has reached the peak since 2012. Figures indicate over 64% of Americans aged 18 and above have a cup of coffee on a daily basis with a further increase expected which is attributed to the popularity of gourmet drinks. A business  plan coffee roaster is a superb business idea that is poised for success so long you plan adequately. Coffee roasting is more than just a business, it’s an art. Being passionate about your craft and having a good business plan coffee roaster is the secret to succeeding in this business.

Executive Summary

2.1 the business.

The coffee roasting business will be registered as Blonch Coffee and will be located in Harlem neighborhood of New York City. The business will be managed by Maria Rodriguez who is a professional and licensed Q Grader.

2.2 Management Team

Maria Rodriguez, Owner and Proprietor of Blonch Coffee is a licensed and experienced Q Grader with extensive experience in the U.S coffee industry. Prior to starting coffee roasting business , Maria worked for high profile coffee brands across the United States and participated in numerous local, regional and international coffee tasting events.

2.3 Customer Focus

In order for the business plan coffee roaster to succeed, Maria has carefully studied the market and relied on her vast industry experience to come up with an appropriate approach that Blonch Coffee will use to reach out to the target market.

2.4 Business Target

Before starting her own business plan coffee roaster , Rodriguez did extensive market research coupled with her intricate knowledge of the business to identify the right business target. The key is to find creative marketing approaches to effectively reach out to the customer target.

Company Summary

3.1 company owner.

Maria Rodriguez is an experienced Q Grader whose successful career in the coffee making and tasting industry spans over two decades. Having worked for various top brands across the U.S. and participated in high profile events, Maria definitely has what it takes and hands-on skills of how to start a coffee roasting business .

3.2 Aim of Starting the Business

The coffee culture is constantly evolving for this reason, the demand for roasted coffee has increased significantly. Not only is coffee taken as a daily beverage, specialty coffees have now become the norm. Discerning coffee lovers are keen on quality coffee which lays a huge emphasis on how people drink and perceive coffee. To be part of this new exciting culture change, Maria Rodriguez thought of starting a coffee bean business that adopts a unique and transformational approach of coffee roasting.

3.3 How the Business will be Started

With over 20 years of experience in the coffee industry, Maria Rodriguez has a deep understanding of emerging coffee roasting trends and customer expectations. Given her involvement in the industry on a day-to-day basis, she knows what is required to start a successful business plan coffee roaster . To actualize her plan, Maria has worked closely with a team of experienced financial experts to formulate a comprehensive financial analysis and business plan coffee roaster that will guide the entire setup and operation of the business.

Services for Customers

Blonch Coffee has specialized in sourcing, roasting, packaging and organizing delivery for uniquely customized and specialized coffee products. The business offers a wide array of blended and roasted coffees which have been prepared from different kinds of coffee beans. Starting a coffee roasting company poised for success depends on how well blending is done for various kinds of beans.

Blonch Roasters intends to offer a wide range of coffee specialties which include:

• Bistro Blend
• Espresso and Decaf Espresso
• African Roast
• French Roast

Marketing Analysis of Coffee Roasting Business

Coffee is the second most popular traded commodity in the world after oil. The worldwide coffee retail market is a whopping $56 billion industry. Nowadays, coffee consumers prefer taking high-grade coffees with increased focus on quality and unique blending of beans. In the U.S. the coffee market industry has reached unprecedented levels of growth and for this reason, Blonch Coffee plans to rely on an objective coffee roasting business plan to set up its operations. To succeed in this business plan coffee roaster , extensive market analysis has been carried out to identify opportunities available to support business growth. Studying local trends and having a deep understanding of the local coffee roasting market will help Blonch to strategically position its brand.

5.1 Market Segment

In order for Blonch Coffee to achieve its targets, the coffee roasting business will focus on offering various kinds of products and services. Identifying the targeted customer segments is an important step Blonch Coffee has to deal with before as part of the plans to start coffee roasting business . After identifying the right market segment, the business plan coffee roaster can then come up with creative marketing strategy for business in order to woo customers.

5.1.1 Coffee Brewing Premises

One of the largest potential customers for Blonch Coffee is coffee brewing facilities which heavily rely on coffee products on a daily basis to serve their customers. These customers buy roasted coffee beans for the purposes of preparing and selling coffee and espresso drinks. This category includes Coffee Shops , Restaurants, drive-through and Bakeries. With the increasing uptake of coffee, selling directly to various coffee businesses is a sure way of boosting revenues for the coffee roasting business. Because these businesses require coffee products on a daily basis, this is a lucrative market Blonch Coffee must make an effort to reach out to.

5.1.2 Corporates

To start a successful coffee roasting business, you cannot afford to ignore the corporate market which is one of the biggest consumers of coffee products. New York City is a corporate and financial hub with thousands of organizations plying their trade in the city. Office coffee is a popular trend in offices and Blonch Coffee is positioned in a strategic New York neighborhood with easy connections to New York’s Financial District whether a majority of corporates have their offices. Aside from catering for offices, other institutions include schools, hospitals and factories among others.

5.1.3 Retail Specialty Shops

Coffee is a popular item that is stocked in various gourmet and gift shops. People nowadays love and appreciate coffee products as gifts which creates a great opportunity for Blonch Coffee to make unique products that are attractive to retailers focusing on selling specialty and gourmet coffee.

5.1.4 Mail Order

Mail Order coffee is increasing in popularity as many people now order for coffee online. This is an incredible way of boosting revenue for Blonch Coffee as the business can produce coffee for shipping to various places across the U.S. and worldwide. When you start your own coffee roasting business , you must be willing to go beyond the traditional market.

5.1.5 Grocery Stores

Grocery stores buy beans from coffee roasters in bulk for the purposes of resale or prepackaging to their customers. Unlike coffee shops, grocery stores don’t prepare coffee drinks for their customers.

5.2 Business Target

Blonch Coffee has an excellent opportunity to offer its services in the greater New York area thanks to the changing perceptions about coffee. New York is a large city with many coffee bean roasting business establishments, but that doesn’t prevent Blonch Coffee from making an impact.  Using a diversified product range and a good business plan coffee roaster , the business hopes to realize an annual sales increase of 20-30% per annum.

5.3 Product Pricing

Before coming up with product prices, Blonch Coffee has carried out an extensive market research that takes into account the prices of competitors. In order to stay afloat, the business has carefully priced its products to compete favorably.

With the right marketing strategies in place, Blonch Coffee has an exceptional chance to appeal to customers and consistently grow revenue margins. Each marketing strategy is aimed at reaching the target customers with awesome products that exceed client expectations. When planning how to start coffee roasting business , there must be an effective marketing strategy in place in order to remain relevant in a fast growing industry.

6.1 Competitive Analysis

Blonch Coffee plans to come up with a business model that will effectively guide its day-to-day operations and ensure customer expectations are fully met. Even though there are numerous coffee roasting businesses in New York, Maria Rodriguez knows how to start a coffee roasting business and put in place the right mechanisms to remain ahead of competitors.

6.2 Sales Strategy

For Blonch Coffee to meet its sales and revenue goals, the following strategies will be implemented to help advertise the business.

• Print Advertising Campaigns is one of the most effective sales strategies that reaches out to a mass target audience. The business intends to print brochures and put advertisements in local dailies as well as local coffee trade publications and journals. By doing this, the local community is made aware about the coffee roasting business.
• Get the word out and organize an opening party to introduce the business to customers and industry stakeholders. A cupping event is ideal as it allows guests to taste, compare and analyze different varieties of coffee. This is a perfect opportunity for prospective customers to sample what Blonch Coffee has to offer.
• Digital advertising is the new kid on the block. Social media channels such as Facebook, Twitter and Instagram among others are excellent ways of sending out word about the coffee roasting business. Online advertising such as Google Ads allow for localized advertising which is aimed at the local target.
• Attend industry related trade shows and exhibitions with an aim of marketing the coffee roasting business. This is an effective sales strategy that connects the business with right people who will be instrumental in growing revenue margins.

6.3 Sales Forecast

To achieve its goals, Blonch Coffee has come up with a sales forecast to show the coffee roasting business intends to meet its financial goals. Using a comprehensive business plan coffee roaster , the business knows which areas to focus on to achieve financial success.

Personnel Plan

In order to realize its goals, Blonch Coffee intends to hire a team of qualified and experienced staff to manage day-to-day operations of the business. How to start a coffee roasting company and run it successfully depends on the caliber of staff hired. A good business plan coffee roaster should incorporate a personnel budget to enable the business plan coffee roaster know how much will be spent on salaries.

7.1 Personnel Plan

To effectively run business operations, Maria Rodriguez who is the Owner and Proprietor of Blonch Coffee will be in charge of running the coffee roasting business on a daily basis. To ensure smooth running of the business plan coffee roaster , the following staff will be employed in various departments.

• Business Development and Sales Manager
• 2 Support Staff
• 1 Admin Assistant
• 1 Shipping Executive

Successful applicants will undergo training to familiarize themselves with business plan coffee roaster operations.

7.2 Average Salaries

Blonch Coffee plans to pay its staff the following salaries within the first three years of operation.

Financial Plan

Blonch Coffee has come up with a comprehensive financial plan that will be instrumental in driving success and business growth. In this business plan coffee roaster of how to start coffee roasting , Maria Rodriguez will use her savings to start the business but will be assisted by two investors. In addition, a business plan for a bank loan will be secured to help finance the budget deficit to meet expenses. For a business to be successful, there must be a good plan to guide operations and finances. Below is key financial data for Blonch Coffee.

8.1 Important Assumptions

The financial forecast for Blonch Coffee is based on the assumptions below.

8.2 Brake-even Analysis

Blonch Coffee Brake-even analysis is illustrated in the graph below.

8.3 Projected Profit and Loss

Profit and Loss information for the coffee roasting business is calculated on a monthly and annual basis as shown below.

8.3.1 Monthly Profit

8.3.2 Yearly Profit

8.3.3 Monthly Gross Margin

8.3.4 Yearly Gross Margin

8.4 Projected Cash Flow

Below is a summary of Pro forma cash flow, subtotal cash spent, subtotal cash received, subtotal cash spent on operations and subtotal cash from operations.

8.5 Projected Balance Sheet

Below is a Projected Balance Sheet for Blonch Coffee that shows capital, assets, liabilities, current liabilities and long term assets.

8.6 Business Ratios

The following is the Ratio Analysis, Business Ratios and Business Net Worth for Blonch Coffee.

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Coffee Roasting Business Plan Template & Guidebook

Have you ever wondered what it takes to start a coffee roasting business? If so, then you're in the right place. Whether you're currently operating a coffee roasting business or want to start one, check out this step-by-step guidebook to writing a coffee roasting business plan.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Coffee Roasting Business [11 Steps]
• 25 Catchy Coffee Roasting Business Names:
• List of the Best Marketing Ideas For Your Coffee Roasting Business:

How to Write a Coffee Roasting Business Plan in 7 Steps:

1. describe the purpose of your coffee roasting business..

The first step to writing your business plan is to describe the purpose of your coffee roasting business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a coffee roasting business:

At [Coffee Roasting Business Name], our purpose is to provide high-quality, fresh-roasted coffee to our customers. We strive to source the finest coffee beans from around the world and carefully roast them to bring out their unique flavors and aromas. We are committed to offering a wide range of coffee blends and roasts to suit different tastes and preferences. Our mission is to provide our customers with a delicious and satisfying coffee experience that is unparalleled in quality and flavor. We aim to be the leading provider of fresh-roasted coffee in our region.

2. Products & Services Offered by Your Coffee Roasting Business.

The next step is to outline your products and services for your coffee roasting business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your coffee roasting business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your coffee roasting business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your coffee roasting business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a coffee roasting business?

To run a coffee roasting business, you will need the following equipment, supplies, and permits:

• A coffee roaster, such as a drum roaster or air roaster
• A variety of green coffee beans from different regions and sources
• Grinding and brewing equipment, such as a coffee grinder and espresso machine
• Packaging materials, such as bags and labels, for storing and selling your roasted coffee
• Website and online store to showcase your products and allow customers to purchase online
• Business cards and marketing materials
• Professional liability insurance
• Any necessary permits or licenses, such as a business license or food service permit if required by your state.

5. Management & Organization of Your Coffee Roasting Business.

The second part of your coffee roasting business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your coffee roasting business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Coffee Roasting Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a coffee roasting business varies based on many different variables, but below are a few different types of startup costs for a coffee roasting business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your coffee roasting business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your coffee roasting business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your coffee roasting business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Coffee Roasting Business Plans:

Why do you need a business plan for a coffee roasting business.

A business plan is a document that outlines the goals and objectives of a business, as well as the strategies and tactics that will be used to achieve those goals. It is important to have a business plan for your coffee roasting business because it helps to focus the efforts of the company, communicate the business's goals and objectives to potential investors, and provide a roadmap for the business to follow. Additionally, a business plan can be used to help secure funding from investors or lenders, who will want to see that the business has a solid plan in place before they provide funding.

How to write a business plan for your coffee roasting business?)

To build a business plan for your coffee roasting business, start by researching your industry, competitors, and target market. Use this information to define your business's goals and objectives, as well as the strategies and tactics that you will use to achieve those goals. Next, create a financial plan that outlines your projected income, expenses, and profit. This should include a projected income statement, cash flow statement, and balance sheet. Once you have all of this information, you can use it to create a comprehensive business plan that outlines the goals and objectives of your business, as well as the strategies and tactics that you will use to achieve those goals. A well-written coffee roasting business plan contains the following sections: Purpose, Products & Services, Marketing Plan (including Marketing Strategy), Operations/Management Plan (including Operations/Management Strategy), Financial Plan (including Financial Forecasts), and Appendixes.

Can you write a coffee roasting business plan yourself?

Yes, you can write a coffee roasting business plan yourself. Writing a business plan is a valuable exercise that can help you clarify your business idea, identify potential challenges and opportunities, and develop a roadmap for success. While there are many resources and templates available to help you write a business plan, the process of creating one is ultimately up to you.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

How to Start Your Own Coffee Roasting Business

Main Sections In This Post Steps To Starting A Coffee Roasting Business Points to Consider Resources Knowledge Is Power Featured Video

This article provides insights into the intricacies of running a coffee roasting enterprise, including a comprehensive start-up guide.

Discover essential resources for your coffee business’s initiation and operational phases. Given the depth of information, consider bookmarking this page. If it proves helpful, do share!

Let’s get started with the steps.

Steps to Starting a Coffee Roasting Business

Below are the steps to starting a coffee roasting business.

Each step is linked to a specific section, allowing you to jump to your desired section or scroll to follow the steps in order.

• An Overview of What You’re Getting Into
• Coffee Roasting Business Overview
• Researching Your Coffee Roasting Business
• Looking at Financials
• Choosing A Business Location
• Creating Your Mission Statement
• Creating A Unique Selling Proposition (USP)
• Choose a Coffee Roasting Business Name
• Register Your Company
• Create Your Corporate Identity
• Writing a Business Plan
• Banking Considerations
• Getting the Funds for Your Operation
• Software Setup
• Business Insurance Considerations
• Supplier Considerations
• Physical Setup
• Creating a Website
• Create an External Support Team
• Hiring Employees

1.  An Overview of What You’re Getting Into

Is Coffee Roasting Your True Calling?

There is a vital aspect to triumphing in entrepreneurship, and that aspect centers on you!

Understanding your inner drive for owning and managing a business is paramount.

Passion: The Fuel for Success

Passion serves as the cornerstone for triumph in your very own enterprise. It acts as the propelling force that drives you forward.

When challenges arise, your passion ignites a relentless search for solutions. Conversely, without it, you might find yourself seeking an escape route.

Assessing Your Passion

How fervent are you about the prospect of owning your own coffee roasting business?

A Fascinating Perspective

Picture a life with no constraints, where financial resources are abundant, and you have the means to sustain yourself indefinitely.

Money plays no part in shaping your future.

The Decisive Question

In such a scenario, would you start a coffee roasting business?

A “Yes” Reveals Your True Calling

An affirmative response signifies your genuine passion for owning and operating a coffee roasting business, indicating that you are indeed on the right path.

When “No” Beckons Further Exploration

If your answer is negative, it prompts another important inquiry:

Pursue Your True Passion

What alternative path would you prefer to venture into? Perhaps, it’s time to explore that passion and consider pursuing it instead.

In a Nutshell

In conclusion, unwavering passion for your chosen venture is paramount to success.

For More, See How Passion Affects Your Business . Also, see, Considerations Before You Start Your Business to identify key points for a new business owner.

2. Gaining an Overview of Owning a Coffee Roasting Business

Next, let’s spend some time on key issues to give you an overview of what to expect from owning and running your business.

a.) A Quick Overview of Owning a Coffee Roasting Business

A coffee roasting business transforms green coffee beans into roasted beans, which are then used to brew fresh coffee.

Daily tasks for this business include selecting and purchasing quality beans, monitoring the roasting process, ensuring consistency in flavor profiles, packaging, and distributing the finished product.

Keys to Success in a Coffee Roasting Business:

Building a Customer Base To thrive, businesses need loyal customers. Engage with local cafes, marketplaces, and individual buyers to introduce your unique roasts and cultivate relationships.

Managing Staff An efficient team is essential—train staff in roast profiles, customer service, and safety protocols to ensure consistency and quality.

Managing Cash Flow Effective financial management ensures you can cover expenses, especially during the initial phases when the business might not be profitable.

Control Costs Balance is key. Minimize expenses, but never at the expense of compromising the quality of your roast or the satisfaction of your customers.

Adapting to Change The coffee industry, like all sectors, evolves. Stay updated on new roasting techniques, market trends, and technological advancements to remain competitive.

Handling Revenue Fluctuations Seasonal variations or market changes can affect sales . Prepare by diversifying products or exploring new market segments.

Competitive Strategy Identify your competitors’ strengths and weaknesses. Offer what they don’t, and always strive to improve your offerings to stand out.

Meeting Customer Expectations: Customers expect consistently delicious coffee with distinct flavor notes.

Regularly sample and adjust your roasts, ask for feedback, and ensure your beans are always fresh to meet these expectations.

b.) Coffee Roasting Business Models

A Quick Overview of Coffee Roasting Business Setups

Traditional Roastery

These are brick-and-mortar establishments focused primarily on roasting beans.

They often sell wholesale to cafes, restaurants, and retailers. Investment is higher due to equipment and space needs, but potential volume can justify costs.

Direct-to-Consumer Online Roastery

This model is based on an online platform. Roasters sell directly to end-users, bypassing middlemen.

It allows for targeting a broader audience and leveraging digital marketing techniques.

Café-Roastery Combo

These are coffee shops that roast on-site. It’s a dual model: selling coffee beverages and roasted beans.

The fresh roast becomes a unique selling point for the café , attracting enthusiasts seeking the freshest brew.

Subscription Roastery

Focused on recurring sales, this model offers subscribers fresh beans regularly.

It ensures a steady flow of income and builds a loyal customer base.

Mobile Roastery

A new trend is roasteries on wheels, often set up in trucks or vans.

They offer flexibility in location, attending events or markets, and require a smaller initial investment than traditional roasteries.

Choosing the Right Model

Choosing the right business model from the beginning is crucial, as switching your model later is more challenging.

Identifying a profitable and high-demand niche for your coffee roasting business is essential.

c.) Making Your Coffee Roasting Business stand out

Unique Branding

Create a memorable brand identity. This includes your logo, color scheme, and packaging. Making a lasting impression can turn casual buyers into loyal customers.

Origin Stories

Source beans from unique regions and highlight their backstories. Sharing the tales of farmers and the beans’ journeys adds a human touch to your coffee.

Roast Customization

Offer custom roasting levels for individual customers. Let them choose between light, medium, dark, or any specific profile they desire.

Sustainability Focus

Emphasize eco-friendly practices. Use biodegradable packaging, source beans from sustainable farms, and reduce waste in operations.

Educational Workshops

Host workshops and classes on coffee tasting, bean origins, and home brewing methods. Educate your customers, turning them into coffee connoisseurs.

Community Engagement

Participate in local events, sponsor community activities, and collaborate with local businesses. Being active in your community can set you apart.

Limited-Edition Roasts

Release seasonal or limited-time roasts. It creates anticipation and urgency, enticing customers to buy before stocks run out.

d.) Add on Ideas for a coffee roasting Business

Coffee Accessories

Sell brewing equipment like French presses, grinders, mugs , and filters. By offering everything a coffee lover needs, you make their shopping experience convenient.

Subscription Boxes

Introduce monthly subscription boxes combining roasts, brewing tips, and perhaps a surprise accessory.

Gift Bundles

Curate gift sets with select roasts, chocolates, and other complementary items. It’s an easy pick for those seeking gifts for coffee lovers.

Brewed Coffee On-Site

If space allows, offer freshly brewed cups of your roasted coffee. It’s a great way for potential bean buyers to sample before they purchase.

Flavored Roasts

Experiment with flavored beans like vanilla, caramel, or chocolate . It adds variety to your product range.

Loyalty Programs

Introduce a loyalty card or points system. Rewarding regular customers encourages repeat purchases and brand loyalty.

Coffee Tasting Events

Organize weekly or monthly tasting events. It’s a chance for customers to explore new flavors and for you to receive direct feedback.

e.) Questions You Need to Consider for Your Coffee Roasting Business

Business Model Choice

What type of coffee roasting business model are you considering?

Work Distribution

Will you personally handle all the work, or are you considering hiring a team?

Management Decisions

Do you plan to manage the operations yourself, or are you considering hiring a dedicated manager?

Partnerships and Investments

Are you looking to collaborate with partners or attract investors to back your venture?

Business Location

Do you envision starting your coffee roasting operations from home, or are you more inclined towards a commercial location?

Operational Mode

If you’re considering a physical presence, is it a brick-and-mortar setup, or do you intend to function predominantly online?

Vision for Growth

Have you chalked out your long-term goals? Where do you see your business in the next 5 to 10 years?

Product Diversification

Do you plan to focus solely on coffee beans, or are there other related products you intend to introduce?

Sourcing Strategy

Where will you be sourcing your coffee beans from? Are you leaning toward local farms, international suppliers, or a mix?

Target Audience

Who is your primary customer? Are you catering to individual coffee enthusiasts, wholesale buyers, cafes, or a combination?

Regulatory Compliance

Are you aware of the local regulations and licenses required for a coffee roasting business in your area?

Financial Planning

How will you finance the initial stages of your business? Do you have a detailed budget and financial forecast?

By thoroughly addressing these questions, you’ll be better equipped to navigate the challenges and complexities of starting and sustaining a successful coffee roasting business.

f.) Pros and Cons of Owning a Coffee Roasting Business

Pros of Owning a Coffee Roasting Business

Be Your Own Boss

You have the autonomy to make decisions and set the direction of your business.

Decision-making Power

You can call the shots and implement strategies you believe will benefit the business.

Creative Freedom

You can innovate, experiment with different roast profiles, and bring new products to market.

Potential for High Revenue

A coffee roasting business can make a substantial profit with determination and a strong strategy.

Flexible Working Hours

Once established and with a reliable team, you can choose when and how you work.

Control Over Working Environment

You decide your roasting space’s ambiance, tools, equipment, and aesthetics.

Deep Connection to Coffee Culture

Engage directly with a passionate community of coffee enthusiasts and be a part of the vibrant coffee culture.

Direct Impact on Product Quality

You have the final say on the quality and flavor profiles of the coffee you produce.

Cons of Owning a Coffee Roasting Business

Responsibility Overhead

Every challenge and issue falls on your shoulders, and the solutions must come from you.

Irregular Income

Especially in the early days, stable and regular income can be elusive.

Challenging Initial Phases

The start-up phase demands extensive effort, time, and resources without guaranteed success.

Customer Retention

Attracting and maintaining a loyal customer base is an ongoing challenge.

Long Working Hours

Starting a business often requires working beyond regular hours, sometimes even on weekends.

Success Pressures

The weight of ensuring the business thrives can be mentally and emotionally taxing.

Initial Investment

Setting up a roasting facility, procuring beans, and other start-up costs can be substantial.

Constant Change

The coffee industry, like any other, is evolving. Staying updated and adapting can be challenging.

Business Risks

Any venture has inherent risks, from market fluctuations to supply chain disruptions.

Equipment Maintenance

Roasting equipment can be delicate and expensive. Regular maintenance and potential repairs can be costly and time-consuming.

Staying Ahead of Competition

The coffee roasting industry can be competitive. Differentiating yourself and staying ahead requires continuous effort and innovation.

For more, see Pros and Cons of Starting a Small Business.

3. Research

Conducting In-Depth Research for Your Coffee Roasting Business

Before embarking on any other steps, conducting thorough research is paramount for the success of your coffee roasting business.

Equipped with quality information, you will be well-prepared for what lies ahead, avoiding surprises.

Seek Wisdom from Seasoned Experts

One invaluable approach to obtaining the best information is connecting with individuals with vast experience in running a coffee roasting business.

Their insights are dependable and can prove priceless.

Leveraging the Experience of Coffee Roasting Veterans

Engaging in conversations with these seasoned professionals presents an opportunity to tap into their extensive knowledge and years of experience in the industry.

Their wisdom can be your guiding light.

A Resourceful Article for Identifying the Right Mentors

I have crafted an article containing valuable ideas to assist you in finding the right people to approach.

It delves into approaching potential mentors in an acceptable and non-threatening manner.

The steps go beyond the scope of this post, but I highly recommend reading the full article from the link provided below to gain comprehensive insights into the coffee roasting realm.

See An Inside Look Into the Business You Want To Start for all the details.

Remember, equipping yourself with knowledge through thorough research and guidance from experienced mentors can be a pivotal factor in the triumph of your coffee roasting venture.

Overview: Understanding Your Target Audience for a Successful Coffee Roasting Business

Knowing your target audience holds significant advantages, enabling you to tailor offers that resonate with potential customers in the coffee roasting industry.

By comprehending your target market, you can deliver products and services that cater to their specific interests, boosting overall appeal and customer engagement.

Target Market Ideas:

• Coffee Enthusiasts: Individuals passionate about diverse coffee flavors, brewing techniques, and specialty blends.
• Cafés and Restaurants: Establishments seeking high-quality, locally roasted coffee beans to enhance their menu offerings.
• Home Brewers: Coffee aficionados interested in sourcing premium beans for their brewing endeavors.
• Specialty Retailers: Stores focused on offering premium coffee products to a discerning customer base.
• Eco-Conscious Consumers: Individuals who prioritize sustainability and seek ethically sourced, environmentally friendly coffee options.
• Corporate Clients: Companies looking to provide artisanal coffee experiences for their employees and clients.
• Health-Conscious Consumers: Individuals seeking organic, low-acid, or health-focused coffee options.
• Gourmet Gift Shoppers: Those searching for unique and luxurious coffee-related gifts for special occasions.
• Event Planners: Professionals organizing gatherings and events where high-quality coffee services are valued.
• Foodservice Providers: Suppliers serving coffee needs in hospitals, hotels, airports, and other institutions.

For more, see How To Understand Your Target Market.

4. Looking at Financials:

Financial Considerations for Your Coffee Roasting Business

This section offers an overview of essential financial aspects, including startup costs, monthly expenses, revenues, and profits for your coffee roasting business.

Startup Costs:

A successful launch hinges on accurately estimating the startup costs.

Careful planning ensures a smooth journey from inception to opening day.

Underestimating the costs could lead to insufficient funds and hinder your business’s opening, while overestimating may raise concerns about the venture’s viability.

The overall startup cost will vary based on factors such as the scale of your operation, chosen location, equipment type (new or used), potential employee hiring, and leasing or rental arrangements.

To create an estimate, compile a detailed list of all necessary items and obtain price quotes.

You may uncover additional expenses to incorporate into your projection as you conduct research.

For more detailed information, refer to my article on Estimating Startup Costs.

Sales and Profit:

The ultimate success of your coffee roasting business largely depends on the following key factors:

• Product and Service Popularity: The appeal and desirability of your coffee products and services among consumers.
• Market Demand: The level of demand for your offerings within the target market.
• Effective Marketing: Your ability to market and promote your business to reach the right audience.

Profitability:

Profitability involves more than just the profit earned per sale. It necessitates careful consideration of various expenses, such as rent, payroll, and overhead costs.

Your business must generate sufficient sales to cover monthly expenses and provide a sustainable income to ensure overall success.

You can pave the way to a profitable coffee roasting venture by diligently managing costs and optimizing sales strategies.

For More, See Estimating Profitability and Revenue

Sample Financial Lists As a Starting Point

Below are three overly simplified sample financial lists to give you a broad overview of the areas to focus on.

1. Estimated Costs to Start a New Coffee Roasting Business in the USA:

• Roasting Equipment: $10,000 – $150,000
• Packaging Equipment: $2,000 – $25,000
• Initial Inventory (Green Coffee Beans): $5,000 – $20,000
• Location Lease (Deposit + First Month): $2,000 – $10,000
• Branding & Marketing Materials: $1,000 – $10,000
• Business Licenses & Permits: $500 – $2,500
• Insurance: $1,000 – $5,000
• Website & Digital Setup: $500 – $5,000

Total Estimated Startup Costs: $21,500 – $227,500

2. Estimated Monthly Expenses for a Coffee Roasting Business in the USA:

• Location Lease: $1,000 – $5,000
• Utilities (Water, Electricity, Gas): $200 – $1,000
• Employee Salaries: $4,000 – $15,000
• Bean Inventory: $2,000 – $8,000
• Packaging Supplies: $500 – $2,000
• Marketing & Advertising: $500 – $5,000
• Loan Payments: $200 – $2,000
• Miscellaneous Expenses: $300 – $1,500

Total Estimated Monthly Expenses: $8,700 – $39,500

3. Sales and Profit Outline:

Let’s assume a moderate daily sale of 100 bags of roasted coffee at $15 each.

• Monthly Sales (assuming 25 working days): 2,500 bags x $15 = $37,500
• Cost of Goods Sold (Beans, Packaging): 2,500 bags x $5 = $12,500
• Gross Profit: $37,500 – $12,500 = $25,000
• Net Profit (after subtracting the upper limit of monthly expenses): $25,000 – $39,500 = -$14,500

Given this example, it’s clear that selling at $15 per bag, with the above expenses, the business will operate at a loss.

The business could consider adjusting the selling price, reducing expenses, or increasing sales volume to reach profitability.

These fictitious examples provide you to understand the issues to consider when planning to start your coffee roasting business.

Adjusting costs makes a significant difference in whether the business will be successful.

A slight shift in profit per sale on high-volume sales will make a difference in your overall profits.

Also, note many new businesses take time to become profitable because it takes building a customer base, building a reputation, and fine-tuning operations.

Your figures will be different. Every situation is different, and many factors come into play.

Research and consider getting professional advice when calculating your business’s startup costs, expenses, and potential revenues and profits.

5. Choosing The Right Business Location

Finding the Perfect Location: Key to Coffee Roasting Business Success

Choosing the right location can be the make-or-break factor for your coffee roasting business.

Demand vs. Failure:

Selecting a location with little to no demand for your coffee products and services can lead to failure even before your business takes off.

Competition Concerns:

On the other hand, operating in an area saturated with coffee roasters may hinder your ability to carve a share in the market.

Balancing Act: Demand and Competition

Ideally, aim for a location that balances demand and an acceptable level of competition.

Affordability Matters:

While a highly populated area can offer greater exposure, carefully assess whether the extra expenses will translate into profitability.

Profitability and Budgeting:

Conversely, opting for a more affordable location should not compromise your potential to generate sufficient sales.

Crucial Factor for Success:

In summary, choosing the right location is pivotal for the success of your coffee roasting venture.

For more about business locations, see Choosing The Best Location for Your Business.

6. Create Your Mission Statement

Overview: The Power of a Mission Statement for Your Coffee Roasting Business

A mission statement is a valuable tool that aids in defining your business’s purpose.

It serves as a guiding compass, keeping you on track while reminding you of the primary value you offer to your customers and the community.

Examples of Mission Statements for a Coffee Roasting Business:

• Example 1: “Our mission is to meticulously source and expertly roast the finest coffee beans, delivering a rich and satisfying coffee experience that elevates our customers’ daily moments.”
• Example 2: “At XYZ Coffee Roasters, our mission is to promote sustainability by ethically sourcing organic coffee beans and crafting premium blends that ignite a passion for exceptional coffee in every cup.”
• Example 3: “We are dedicated to fostering a sense of community through our artisanal coffee creations, nurturing a space where coffee enthusiasts can gather, connect, and savor the art of roasting.”

Conduct thorough research to make an informed decision that sets the stage for a thriving business.

For more, see, How To Create a Mission Statement

7. Creating A Unique Selling Proposition (USP)

Overview: Unleashing the Power of Unique Selling Proposition (USP) for Your Coffee Roasting Business

A Unique Selling Proposition (USP) is a potent tool that aids in identifying and crafting a distinct feature that sets your business apart.

It enables you to create something special that resonates with your target audience.

Examples of USPs for a Coffee Roasting Business:

• Example 1: “Our coffee roasting business stands out with our exclusive selection of single-origin, fair trade beans, ensuring every cup supports sustainable practices and empowers coffee farming communities.”
• Example 2: “At XYZ Roastery, our USP lies in our small-batch, handcrafted roasting process, delivering unparalleled freshness and flavor, elevating coffee enthusiasts’ sensory experience.”
• Example 3: “Discover the difference in every sip with our coffee roasting business. Our USP centers on custom blends, tailor-made to cater to individual tastes, promising a personalized coffee journey for each customer.”

8. Choose a Business Name

Choosing the Perfect Name for Your Coffee Roasting Business

An appealing and fitting business name is vital for your coffee roasting venture. Aim for something catchy, easy to pronounce, and memorable.

Your chosen business name will likely remain unchanged throughout your ownership, so careful consideration is crucial.

Ensure the name aligns with an available domain for your online presence and that another business does not already register it.

30 Creative Ideas for Your Coffee Roasting Business Name:

• BrewMasters Roastery
• AromaCraft Coffee Co.
• JavaJunction Roasters
• Roast & Revel
• BeanVoyage Roastery
• Artisanal Beanscape
• BoldBrew Coffee Works
• PrimeRoast Roasters
• FlavorSmiths Roastery
• BeanBliss Roastworks
• RoastHaven Craft Coffee
• SipCrafters Roastery
• HeritageBeans Roasters
• BrewHorizon Coffee Co.
• Gourmet Grind Roastery
• BeanVerse Roasters
• RoastScape Specialty Coffee
• CraftRoost Coffeeworks
• BrewMasters’ Reserve Roastery
• EssenceRoast Coffee Co.
• SavorRoast Roasters
• Arabica Artisans Coffee
• RoastWise Specialty Beans
• CaffeineCrafters Roastery
• PureBean Roasters
• RoastHarmony Coffee Co.
• DivineBrew Coffeeworks
• Roastology Craft Roasters
• JavaJive Roastery
• BeanZen Coffee Co.

Allow these creative coffee roasting business name ideas to spark your imagination as you craft a distinctive and original name for your venture.

For more, see the following articles:

• How To Register a Business Name
• Registering a Domain Name For Your Business

9. Register Your Company

Ensuring Your Coffee Roasting Business is Legally Compliant

Importance of Legal Compliance:

Ensuring your coffee roasting business operates within the bounds of the law is crucial for its long-term success and sustainability.

Compliance with legal requirements helps avoid penalties, legal disputes, and reputational damage.

Consulting a Professional for Legal Setup:

Consider seeking advice from a legal or financial professional to guarantee that your business is legally structured in the most advantageous manner.

This step ensures you maximize tax benefits and limit personal liability.

Common Types of Registrations for a Coffee Roasting Business:

• Sole Proprietorship: A simple and common option where you, as the owner, are personally responsible for all aspects of the business.
• Limited Liability Company (LLC): Offers personal liability protection while maintaining a simpler setup than a corporation.
• Corporation: Provides separate legal identity from the owners, shielding personal assets but requiring more complex legal formalities.
• Partnership: When two or more individuals co-own the business, sharing responsibilities and liabilities.

Permits and Licenses for a Coffee Roasting Business:

• Business License: A general license required to operate any business legally.
• Health Department Permit: Ensures compliance with health and safety regulations for food-related businesses.
• Roaster’s Permit: Specific to coffee roasting businesses, allowing you to roast and sell coffee legally.
• Seller’s Permit: Enables you to collect sales tax from customers.
• Fire Department Inspection: Ensures compliance with fire safety regulations.
• Zoning Permit: Verifies your business location is correctly zoned for commercial operations.
• Environmental Permits: Environmental permits may be necessary if your coffee roasting involves waste disposal or emissions.
• Trademark Registration: Optional but valuable for protecting your brand identity.

By proactively addressing legal requirements and obtaining necessary permits and licenses, you can run your coffee roasting business smoothly, instilling confidence in both customers and authorities.

Seeking professional guidance ensures a well-structured and legally compliant setup for your venture.

Registration:

• How to Register Your Business
• How To Register a DBA
• How to Register a Trademark
• How to Get a Business License

Business Structures:

• How to Choose a Business Structure
• Pros & Cons of a Sole Proprietorship
• How To Form an LLC
• How To Register a Business Partnership
• How To Form a Corporation
• How To Choose a Business Registration Service

10. Create Your Corporate Identity

Creating a Strong Corporate Identity for Your Coffee Roasting Business

In the world of coffee roasting, a Corporate Identity (Corporate ID) is a visual representation that embodies your business.

A comprehensive Corporate ID comprises your logo, business cards, website, business sign, stationery, and promotional items.

Maintaining a consistent and professional design across these elements is crucial, as it leaves a lasting impression on new and existing customers.

A well-crafted Corporate Identity for your coffee roasting business communicates your brand’s values, quality, and uniqueness, fostering trust and loyalty among your target audience.

Presenting a cohesive and appealing identity enhances brand recognition and reinforces your presence in the competitive coffee market.

You can see our page for an overview of your logo , business cards , website , and business sign , or see A Complete Introduction to Corporate Identity Packages.

11. Writing a Business Plan

Crafting a Comprehensive Business Plan for Your Coffee Roasting Business

The Importance of a Business Plan

A business plan holds immense significance for your coffee roasting venture.

It serves multiple purposes, from securing funding and attracting investors to providing a guiding framework during startup and ongoing operations.

A Vision in the Making

Creating a business plan involves time and effort as you envision your coffee roasting business’s future.

Every detail requires thoughtful planning and articulate expression.

A Blueprint for Success

Despite the dedication required, the effort invested in your business plan is worthwhile.

Once completed, it becomes a compass, revealing the essential elements for a successful start and a clear roadmap for day-to-day operations.

Multiple Approaches for Business Plan Creation

Remember that you have various options when embarking on your business plan journey.

You can write it from scratch, seek professional assistance, utilize a template, or utilize business plan software.

Active Involvement is Key

Regardless of the approach, active participation is essential, especially if you opt for professional assistance.

Your unique perspective ensures a distinctive and effective business plan communicating your coffee roasting business’s essence and management strategy.

An Evolving Document

As your coffee roasting business gains experience, your business plan may evolve and require optimization.

Regularly reviewing the document and making necessary adjustments to align with operational changes is prudent for continued success.

Stay adaptable and open to improvements as your business grows in the dynamic coffee industry.

A Fictitious Business Plan for “Bean Brilliance Coffee Roasters”

Executive Summary

Business Name: Bean Brilliance Coffee Roasters

Location: 123 Java Street, Seattle, WA

Objective: To offer artisanal, ethically sourced coffee beans roasted to perfection, targeting coffee connoisseurs and local cafes in the Seattle area.

Vision: Become Seattle’s most recognized and trusted provider of quality coffee roasts by 2025.

Business Description & Structure

Type: Specialty Coffee Roasting Company

Ownership Structure: Sole Proprietorship, owned by Jane Doe

Products Offered: A variety of single-origin and blended roasted coffee beans.

Market Analysis

Target Audience:

• Individual coffee enthusiasts
• Local cafes and bistros
• Online shoppers across the U.S.

Competitive Analysis:

• Coffee Connect Roasters: Established brand with a wide distribution network.
• Urban Roast Co.: A local favorite with a strong focus on single-origin beans.

Market Need:

While Seattle has a thriving coffee scene, there’s an increasing demand for ethically sourced, artisanal roasted coffee beans.

Sales & Marketing Strategy

Brand Positioning: High-quality, artisanal roasts from ethically sourced beans.

Promotion Techniques:

• Social media campaigns focusing on the coffee journey.
• Partnership with local cafes for pop-up tasting events.
• Offering subscription boxes for regular online customers.

Distribution:

• Direct sales from the physical storefront.
• Online sales with nationwide shipping.
• Bulk sales to local cafes.

Operations Plan

Location: A storefront with an in-house roasting facility at 123 Java Street, Seattle.

Suppliers: Ethical coffee bean suppliers from Africa and South America.

• Probat P12 Coffee Roaster.
• Packaging and sealing machines.
• Espresso machine for in-house sampling.

Management & Organization

Owner & CEO: Jane Doe, with 5 years of experience in the coffee industry.

• Roasting Expert: John Smith.
• Sales and Marketing Head: Emily Brown.
• Operations Manager: Robert White.

Financial Projections

Startup Costs: Estimated at $180,000, including equipment, initial inventory, and store setup.

Projected Monthly Expenses: Approximately $30,000 (including rent, salaries, utilities, and raw materials).

Projected Monthly Sales:

• Year 1: $50,000
• Year 2: $65,000

Break-even Point: Estimated by Month 8.

Challenges & Risks

• Fluctuation in green coffee bean prices.
• Competition from established roasters.
• Ensuring consistent roast quality.

Mitigation Strategies:

• Diversifying suppliers.
• Continual training for the roasting team.
• Offering unique blends to stand out.

Conclusion & Future Plans

Bean Brilliance Coffee Roasters aims to become recognized in the Seattle coffee scene within its first year.

The business envisions a vibrant growth trajectory with plans to introduce coffee workshops, expand the product line, and explore café partnerships.

Remember, this fictitious business plan serves as a basic example for a coffee roasting business.

Each plan should be tailored to the specific business, location, and market conditions.

For information on creating your business plan, see, How to Write a Business Plan.

12. Banking Considerations

Setting Up Financial Accounts for Your Coffee Roasting Business

When establishing your coffee roasting business, consider selecting a nearby bank that specializes in serving business owners.

The Importance of a Separate Business Account

Creating a distinct business account is essential as it segregates your business expenses from personal spending.

This separation streamlines expense tracking and simplifies bookkeeping. Moreover, it provides vital documentation in the event of a tax audit.

Nurturing a Professional Relationship with Your Banker

Developing a professional rapport with your banker can be advantageous.

They can offer valuable advice and financial services tailored to your coffee roasting venture, expediting processes such as loan applications.

Facilitating Payment Processing

To enhance customer convenience, you may want to explore options like applying for a merchant account or a similar setup.

This allows your coffee roasting business to accept credit and debit card payments, catering to a broader range of customers and boosting sales opportunities.

By opting for specialized financial services and establishing strong banking relationships, your coffee roasting business can efficiently manage its finances and facilitate seamless transactions, contributing to your overall success in the industry.

For more, see, How to Open a Business Bank Account. You may also want to look at, What Is a Merchant Account and How to Get One.

13. Getting the Funds for Your Operation

Securing Funding for Your Coffee Roasting Business

If you require financial assistance to launch your coffee roasting business, the tips in this section can prove invaluable in securing a loan.

Exploring Funding Options

Obtaining the necessary funds to initiate and sustain your coffee roasting business is essential.

Multiple funding avenues are available, such as traditional lenders, private loans, investor partnerships, asset sales, and using collateral.

Meeting with a Loan Officer: Considerations

When meeting with a loan officer, preparation is key.

Demonstrate your understanding of the coffee roasting industry, outline your business plan, and showcase your ability to repay the loan.

Be ready to discuss the specifics of your coffee roasting venture and its potential for success.

Sample List of Documents for a Business Loan Application:

• Comprehensive Business Plan detailing your coffee roasting venture’s goals, financial projections, and strategies.
• Proof of Business Ownership or Legal Structure documents.
• Personal and Business Credit History.
• Financial Statements, including Income Statements and Cash Flow Projections.
• Proof of Collateral (if applicable).
• Personal Identification, such as Driver’s License and Social Security Number.
• Bank Statements to demonstrate financial stability.
• Past Tax Returns.
• Industry-specific Licenses and Permits.

By considering these factors and presenting the required documents, you increase your chances of obtaining the necessary funding to start and operate your coffee roasting business successfully.

See, Getting a Small Business Loan for more.

14. Software Setup

Software Considerations for Your Coffee Roasting Business

Researching the right software is crucial to streamline your coffee roasting operations effectively.

Implementing a program from the outset avoids the complexities of switching to a new system after your data is already in use.

Tips for Evaluating Software Options:

• Demo Availability: Look for software providers offering demos to experience the functionality firsthand. Additionally, delve into reviews and online forums to learn from others’ experiences with the software.
• Financial Tracking and Tax Preparation: Research software solutions tailored for tracking expenses and preparing financial documents for tax filing. Consult with your bookkeeper or accountant to identify the most suitable accounting software for your coffee roasting business.

List of Software Options for a Coffee Roasting Business:

• RoastMaster: A comprehensive coffee roasting software offering roast profiling, inventory management, and sales tracking.
• Cropster: Specialized for coffee professionals, providing roasting profiles, green coffee inventory, and quality control features.
• Artisan: An open-source coffee roasting software with data logging and analysis capabilities.
• Aillio Bullet R1 Software: Proprietary software for controlling the Aillio Bullet R1 coffee roaster, offering roast data and profile management.
• QuickBooks: Widely used accounting software catering to financial tracking and tax preparation needs.
• Xero: Cloud-based accounting software with features for expense tracking and financial reporting.
• Square for Retail: An all-in-one platform for point-of-sale, inventory management, and sales tracking.
• Airtable: A flexible database and project management software that can be customized to suit coffee roasting business needs.
• Cropster Hub: An online platform connecting coffee producers, roasters, and buyers, facilitating seamless communication and collaboration.
• Kounta: A POS software tailored for coffee shops and roasters, offering inventory and sales management.

By carefully evaluating these software options, you can make informed decisions that align with your coffee roasting business requirements, ensuring optimal efficiency and growth in the competitive coffee industry.

Software Considerations for a Coffee Roasting Business.

Check out Google’s latest search results for software packages for a coffee roasting business.

15. Get The Right Business Insurance

Insurance Considerations for Your Coffee Roasting Business

Incident Preparedness:

Incidents can strike unexpectedly, underscoring the importance of securing the right insurance coverage before any activities commence at your coffee roasting business.

Comprehensive Coverage:

Consider insurance plans that safeguard your customers, employees, yourself, visitors on the premises, and your valuable property.

Professional Liability Protection:

Professional liability insurance is vital to shield you from lawsuits related to your coffee roasting business operations.

Expert Guidance:

Engage a competent insurance broker to navigate the complexities of insurance policies and ensure you have adequate and suitable coverage.

List of Insurance Concerns for a Coffee Roasting Business:

• General Liability Insurance: Protects against third-party claims for bodily injury or property damage arising from your business activities.
• Product Liability Insurance: Covers potential lawsuits resulting from defective products causing harm to consumers.
• Workers’ Compensation Insurance: Mandatory in many states, this coverage provides benefits to employees injured during work-related activities.
• Property Insurance: Safeguards your physical assets, including roasting equipment, inventory, and business premises, against perils like fire, theft, or natural disasters.
• Business Interruption Insurance: Provides financial support during temporary closures due to covered incidents, assisting with ongoing expenses and lost revenue .
• Commercial Auto Insurance: Necessary if your business uses vehicles for deliveries or other purposes.
• Professional Liability Insurance: Essential for protecting against claims of professional negligence, especially when offering coffee consulting or training services.
• Cyber Liability Insurance: Guards against data breaches and cyber-attacks, protecting sensitive customer information.
• Employment Practices Liability Insurance (EPLI): Covers legal costs related to employee claims of discrimination, harassment, or wrongful termination.
• Fidelity Bond Insurance: Protects against employee dishonesty or theft of company funds.

By addressing these insurance concerns, your coffee roasting business gains robust protection and peace of mind, enabling you to focus on delivering exceptional coffee experiences to your customers without unnecessary worries.

For more, see What to Know About Business Insurance . You can also browse the latest Google search results for coffee roasting business insurance .

16. Select Suppliers

Building Strong Supplier Relationships for Your Coffee Roasting Business

Crucial Supplier Partnerships

In coffee roasting, cultivating robust relationships with suppliers is paramount for your business’s success.

A reliable and trustworthy supplier plays a pivotal role in achieving your goals.

The Perks of a Reliable Supplier

Working with a dependable supplier comes with numerous advantages.

Competitive prices from your supplier allow you to offer cost savings to your customers, boosting your profit margin.

Seamless Business Operations

Moreover, a reliable supplier ensures you always have the necessary coffee stock, facilitating smooth and uninterrupted business operations.

Mutually Beneficial Arrangements

Treating your suppliers respectfully and ensuring their financial benefit contributes to a positive working relationship.

As you mutually benefit, the partnership grows stronger.

Establishing and nurturing strong supplier partnerships guarantees a steady supply of high-quality coffee beans, essential for delivering top-notch products to your customers.

A robust supply chain and positive supplier relationships empower your coffee roasting business to thrive in the competitive market, positioning you as a trusted and successful player in the industry.

For More See, How To Choose a Supplier.

17. Physical Setup

The physical setup or layout is crucial for operational efficiency in a coffee roasting business.

The roasting area should be well-organized, with ample space for roasting equipment, storage, and packaging.

An accessible and aesthetically pleasing customer area enhances the overall coffee experience.

Efficient flow and clear zoning between roasting, packaging, and customer spaces contribute to smooth operations and a welcoming ambiance.

Setting up the right signage is essential for a coffee roasting business.

Strategically place signs at relevant locations like parking lots, exits, and special areas alongside the main business sign.

Well-designed signs direct people efficiently and exude professionalism.

Eye-catching signs can attract foot traffic and drive sales.

Ensuring clear and consistent signage helps customers easily navigate your coffee roasting space, enhancing their overall experience.

Office Setup:

An organized office is vital for effectively managing your coffee roasting business. As a business owner, you’ll spend a significant portion of your time in the office, handling various tasks.

Ensure your office is fully equipped with all necessary tools, equipment, and technology to manage operations efficiently.

A well-organized office fosters productivity, streamlines administrative tasks, and facilitates smooth communication with customers, suppliers, and team members.

Having everything you need within reach ensures seamless decision-making and contributes to the success of your coffee roasting venture.

See, Here are Considerations for The Setup of Your Office, for tips and ideas to make your office work for you. Also, have a look at our article About Company Signs.

18. Creating a Website

The Advantages of a Website for Your Coffee Roasting Business

Having a website for your coffee roasting business offers numerous benefits. It serves as a digital storefront, accessible to customers anytime, anywhere.

Building Brand Awareness

Potential buyers can explore your coffee products and services, fostering brand awareness.

With a well-designed website, you can showcase your unique offerings and share your coffee roasting story, building trust and credibility with your audience.

Enhancing Convenience

Online ordering and contact forms streamline customer interactions, enhancing convenience and encouraging more frequent purchases.

Engaging with Customers

A website enables you to engage with coffee enthusiasts through blogs, social media integration, and email newsletters, nurturing lasting relationships and driving business growth.

A website is a powerful tool to establish an online presence, connect with your target audience, and expand your coffee roasting business’s reach in the competitive digital landscape.

For more, see How to Build a Website for Your Business .

19. Create an External Support Team

Building an External Support Team for Your Coffee Roasting Business

Creating an external support team of professionals is invaluable for your coffee roasting venture.

These experts provide valuable advice and services while operating independently from your payroll.

Flexible Services

You can utilize their expertise per-project, contractual, or hourly.

As you work with certain individuals regularly, viewing them as your team enhances your understanding of their significance and encourages adding more members as needed.

Time for Cultivating Relationships

While not all team members need to be in place before starting your coffee roasting business, cultivating professional relationships takes time.

Continuously working on expanding your support team is essential.

Key Members of Your Support Team

Your external support team may comprise an accountant, a lawyer, a financial advisor, a marketing specialist, technical advisors, consultants, and other industry-specific experts.

A strong external support team ensures you can count on their expertise and guidance whenever you need it, ultimately contributing to your coffee roasting business’s success and growth.

For more, see, Building a Team of Professional Advisors for Your Business.

20. Hiring Employees

Staffing Considerations for Your Coffee Roasting Business

Managing Workload in the Early Stages

During the initial stages of your coffee roasting business, handling tasks yourself might seem feasible, especially to avoid payroll expenses.

Hiring Employees for Growth

As your business expands, managing all aspects single-handedly might become overwhelming. Hiring employees becomes necessary to improve productivity , provided you find the right people for the job.

List of Jobs for a Growing Coffee Roasting Business:

The following are job positions or outsourced services you may want to consider as your coffee roasting business grows and becomes successful:

• Roastmaster: Responsible for overseeing the coffee roasting process and ensuring consistent quality.
• Production Assistants: Assist in roasting, packaging, and inventory management.
• Sales and Marketing Team: Focus on promoting your coffee products, expanding customer reach, and building brand recognition.
• Customer Service Representatives: Handle customer inquiries, orders, and support.
• Delivery and Logistics: Manage timely and efficient delivery of coffee orders to customers and retailers.
• Accountant/Bookkeeper: Maintain financial records, manage payroll, and handle taxes.
• Quality Control Specialist: Ensure the coffee meets the highest quality standards.
• Coffee Sourcing Specialist: Locate and establish relationships with coffee bean suppliers.
• Maintenance and Equipment Technicians: Responsible for maintaining and repairing roasting equipment.
• Graphic Designers and Content Creators: Develop marketing materials and online content to engage customers.
• IT Support: Oversee technical aspects, website maintenance, and digital operations.

As your coffee roasting business flourishes, establishing a well-rounded and skilled team ensures smoother operations, enhanced productivity, and the ability to meet increasing demands in the competitive coffee market.

For more, see, How and When to Hire a New Employee.

Points To Consider

Hours of operation:.

Here are some common hours of operation to consider for a coffee roasting business:

• Monday to Friday: 7:00 AM to 6:00 PM
• Saturday: 8:00 AM to 4:00 PM
• Sunday: Closed
• Offering extended hours on certain days, such as staying open until 8:00 PM on Thursdays or Fridays to accommodate evening customers.
• Adjusting operating hours based on seasonal demand, such as opening earlier in the summer or during holidays.
• Considering longer hours or special openings for events like local festivals, community gatherings, or special promotions.

The specific hours of operation will depend on factors such as the target audience, location, and local competition.

Researching and understanding your customers’ preferences is essential to determine the most suitable hours for your coffee roasting business.

Regularly evaluating and adjusting operating hours based on customer feedback and market trends can contribute to the success and growth of your business.

A List of Equipment and Supplies to Consider for a Coffee Roasting Business:

Roasting Equipment:

• Commercial Coffee Roaster: The primary tool for roasting green coffee beans. They come in various capacities, from small batches to large-scale roasters.
• Green Coffee Bean Loader: Automates the feeding of green beans into the roaster.
• Cooling Tray: Quickly cools roasted beans to stop the roasting process.
• Destoner: Removes any stones or debris from the roasted beans to ensure quality.
• Roast Profiling System: Allows for consistent roasting by monitoring bean temperature and other factors.

Storage & Packaging:

• Green Bean Storage Bins: To store unroasted beans.
• Roasted Bean Storage Containers: To keep roasted beans fresh until packaging.
• Packaging Machine: Fills, seals, and possibly weighs bags of roasted beans.
• Nitrogen Flush System: Injects nitrogen into bags to push out oxygen, ensuring freshness.
• Labeling Machine: Adds brand labels and information stickers to packages.
• Heat Sealer: Seals bags of beans after they have been filled.

Quality Control:

• Sample Roaster: Roasts small batches of beans for quality checks.
• Agtron/Colorimeter: Measures roast levels of beans for consistency.
• Cupping Bowls and Spoons: For coffee tasting sessions to assess roast profiles.
• TDS Meter: Measures the strength of coffee extractions.
• Grind Particle Analyzing Equipment: Ensures the grind size consistency of the beans.

Grinding & Brewing (if offering tasting or direct sales):

• Commercial Coffee Grinder: Grinds roasted beans for brewing.
• Espresso Machine: Brews espresso for tasting and quality checks.
• Drip Coffee Maker: For brewing standard coffee.
• Water Filtration System: Ensures clean and consistent water for brewing.

Miscellaneous:

• Fire Extinguishers: Safety is paramount, especially with roasters.
• Ventilation System: To manage the heat and fumes produced by the roaster.
• Digital Scales: To weigh beans, ensuring consistency in packaging and brewing.
• Storage Racks: To organize both green and roasted beans.
• Cleaning Supplies: Brushes, vacuum systems, and other tools for maintaining equipment cleanliness.

This list provides a comprehensive look at the essential equipment for a coffee roasting business, but specific needs might vary based on the business’s size and specialty focus.

Marketing Considerations

In the coffee roasting business, attracting customers is essential for success. Initially, as a new operation, gaining visibility may be challenging.

However, building a strong reputation over time and gaining marketing experience will make it easier.

Marketing your coffee roasting business is an ongoing endeavor.

The more you invest in effective marketing techniques, the more revenue you can generate.

While you don’t always need a marketing agency, you can always explore marketing opportunities to bring awareness to your business and attract potential customers.

Promoting your coffee roasting venture will ensure its growth and success in the competitive industry.

See our article How To Get Customers Through the Door

Potential B2B Partnerships for Your Coffee Roasting Business:

• Local Cafes and Bistros: These establishments can offer your roasted beans to their clientele. In return, they promote their venues as preferred coffee shops.
• Bakeries: Freshly baked goods pair wonderfully with coffee. Partnering can lead to bundle offers.
• Office Spaces: Regular deliveries of fresh beans for office coffee machines can brighten any workplace.
• Local Hotels: Offer exclusive coffee blends for hotel guests.
• Bookstores: Many bookstores feature coffee corners. Offering your beans can enhance their customer experience.

Reward Mechanism: Offer bulk discounts, exclusive blends, or co-branded marketing efforts.

Marketing Offers:

For New Customers:

• Sample Packs: Offer a selection of your best roasts in smaller packages.
• First Purchase Discount: Provide a 10% discount on their initial order.
• Coffee Subscription Trials: A month of discounted or free shipping for first-time subscribers.

For Existing Customers:

• Loyalty Program: Collect points with every purchase and redeem for free coffee.
• Exclusive Blends: Seasonal or limited-time roasts available only to loyal customers.
• Referral Discounts: Offer discounts when they refer friends or family.

Sample Ads:

• “Discover the World in Every Sip!” Dive into Bean Brilliance’s artisanal coffee roasts. Shop now!
• “Elevate Your Morning Ritual!” Try our ethically sourced, perfectly roasted beans.
• “Taste the Adventure!” Our new mountain blend is out. Limited stock. Order today!
• “Wake Up to Pure Brilliance!” Subscribe to our monthly coffee box and never run out of magic.
• “Coffee That Tells a Story!” Experience the journey of our beans from farm to cup.

Simple Marketing Ideas:

Effective Ways to Promote Your Coffee Roasting Business:

• Coffee Tastings: Organize events where people can experience your roasts firsthand.
• Local Sponsorships: Sponsor local events or clubs, offering coffee at meetings or gatherings.
• Collaborative Pop-ups: Team up with local businesses for mutual promotion.
• Social Media Campaigns: Share the story behind each roast, farmer testimonials, and brewing tips.
• Engage in Community Events: Be a part of farmers’ markets, fairs, or other community gatherings.

For more marketing strategies and insights, explore our dedicated marketing section and find tailor-made advice for coffee roasters.

Evaluating Your Skills for Running a Coffee Roasting Business

It’s crucial to focus on your skill set and assess if you possess the necessary abilities to run a successful coffee roasting business.

Recognize skill gaps and decide whether to learn those skills or hire someone with expertise.

Essential Skills for a Coffee Roasting Business Owner:

• Coffee Roasting Expertise: Proficiency in the art and science of coffee roasting to produce high-quality, flavorful coffee.
• Business Management: Ability to oversee daily operations, financial planning, and strategic decision-making.
• Marketing and Sales: Knowledge of effective marketing strategies to promote coffee products and attract customers.
• Quality Control: Ensuring consistent quality in coffee roasting processes and final products.
• Customer Service: Building strong customer relationships and providing exceptional service.
• Supply Chain Management: Efficiently managing coffee bean sourcing, inventory, and supplier relationships.
• Entrepreneurial Spirit: A passion for innovation, adaptability, and seizing growth opportunities.
• Communication Skills: Effective communication with employees, customers, suppliers, and partners.
• Creativity: Developing unique coffee blends and exploring new coffee products.
• Problem-Solving: Addressing challenges and finding solutions to enhance business operations.

Evaluating your skill set and acquiring the necessary skills or hiring the right team ensures your coffee roasting business thrives and delivers exceptional coffee experiences to your customers.

Expert Tips

Examining expert tips benefits both seasoned professionals and novices in the coffee roasting industry.

Experts may discover more efficient methods or gain fresh perspectives on techniques.

Novices can acquire invaluable insights to enhance their skills and expand their knowledge base, fostering growth and success in their coffee roasting journey.

See the latest search results for expert coffee roasting tips to gain tips and insights.

This section presents valuable resources relevant to the coffee roasting business, offering the latest and most popular industry information.

Whether you’re in the startup phase or already operational, these resources aid in better understanding the coffee industry and provide essential tips to enhance your business.

Stay informed and continuously improve your coffee roasting venture with these valuable sources.

Trends and Statistics

Examining industry trends and statistics is highly advantageous for a coffee roasting business.

It provides valuable insights into consumer preferences, market demands, and emerging opportunities.

Understanding industry trends empowers informed decision-making and strategic planning, fostering growth and competitiveness in the coffee roasting market.

See the latest search results for trends and statistics related to the coffee roasting industry.

Coffee Roasting Associations

Trade associations offer significant advantages for a coffee roasting business, including access to industry news and networking opportunities.

Participation in association events further enhances these benefits, facilitating valuable connections and up-to-date information for industry professionals.

See the search results related to coffee roasting associations.

Top Coffee Roasting Business

Examining established coffee roasting businesses provides inspiration to identify gaps in the industry that you can implement in your own venture.

It also helps uncover overlooked aspects of your business, allowing you to enhance and innovate, fostering continuous improvement and success.

See the latest search results for the top coffee roasting businesses.

The Future of the Coffee Roasting Industry

Researching the coffee roasting industry’s future offers significant advantages for aspiring entrepreneurs.

It provides insights into upcoming trends, consumer preferences, and market dynamics.

Understanding the industry’s future equips potential coffee roasters with valuable knowledge to make informed decisions and thrive in a competitive market.

See the search results for the future of the coffee roasting industry.

Researching industry prices before starting a coffee roasting business offers valuable insights into market trends and competitor pricing.

Understanding industry prices helps aspiring entrepreneurs set competitive pricing strategies, make informed financial decisions, and position their business for success in the coffee roasting market.

See the latest coffee roasting prices.

Coffee Roasting Businesses for Sale

Pros and Cons of Buying an Established Coffee Roasting Business

• Immediate Revenue: Acquiring an existing coffee roasting business allows you to earn revenue from the day you take over.
• Bypassing Startup Phase: Buying an established business means you skip the often challenging and time-consuming startup phase.
• Proven Business Model: You have the advantage of knowing that the business works, reducing the risk associated with starting from scratch.
• Financial Insights: Understanding the existing revenue, profit, and expense data gives you a clear picture of the business’s financial health.
• Existing Customer Base: An established coffee roasting business has an existing customer base, saving time and effort in building one from scratch.
• Built Reputation: The business has already built a reputation in the market, which can provide a valuable head start.

Disadvantages:

• Higher Cost: Acquiring an established business often comes with a higher cost due to the goodwill and the value of the existing customer base.
• Customer Retention Challenges: If you want to make significant changes to the business, there could be challenges in retaining existing customers.
• Inheriting Reputation: When purchasing a business, you inherit its reputation, including any negative aspects.

Even if there are no exact matches for a coffee roasting business for sale, exploring the market within the industry can provide valuable insights and potential opportunities.

Businesses for sale: See the latest results for a coffee roasting business and others related to this business model.

Franchise Opportunities Related to a Coffee Roasting

Pros and Cons of Buying a Coffee Roasting Franchise

Purchasing a coffee roasting franchise offers both advantages and disadvantages, making it essential to consider before starting a business.

Exploring franchise opportunities might unveil related coffee roasting options you hadn’t thought of.

• Proven Business Model: Follow a well-established plan created by the franchise’s corporate office, providing a proven path to success.
• Leveraging Reputation and Marketing: Benefit from the franchise’s existing reputation and marketing efforts, enhancing brand recognition.
• Comprehensive Knowledge: Receive detailed insights into the business’s operations before diving in.
• Corporate Support: Enjoy support from the corporate office, offering guidance and assistance.
• Higher Costs: Acquiring a franchise can be expensive due to initial and ongoing franchise fees.
• Limited Autonomy: Making significant changes often requires approval from the corporate office, limiting entrepreneurial freedom.
• Product and Service Restrictions: You must adhere to approved products and services, limiting customization options.
• Operational Constraints: Operate the business strictly according to the franchise agreement.

Exploring related coffee roasting franchise opportunities can provide additional insights and potential business options within the industry.

See the latest search results for franchise opportunities related to this industry.

Knowledge Is Power if You Use It!

Knowledge is a powerful tool when applied effectively in the coffee roasting business.

A wealth of valuable information is available online to assist you throughout your research, startup, and operational phases.

Follow the links in the following sections to access industry insights that can empower your coffee roasting venture and contribute to its success.

Stay informed and make informed decisions to thrive in the coffee industry.

A Day in the Life

“A Day in the Life of a coffee roasting business owner” provides valuable tips and insights from industry professionals, offering an overview of what to expect in the coffee roasting industry.

Gain valuable insights and prepare for the daily challenges and responsibilities of owning and operating a coffee roasting business.

See the search results related to a day in the life of coffee roasting business owners.

Coffee Roasting Business Owners Interviews

Interviews with business owners in the coffee roasting industry provide valuable information and insights.

Investing time in this section allows you to gain diverse perspectives and essential knowledge about the industry, helping you understand what to expect and make informed decisions for your own venture.

See the search results related to interviews of coffee roasting business owners.

Coffee Roasting Publications

Publications are valuable for staying updated with the latest information about a coffee roasting business.

They offer industry insights, trends, and news, informing you and equipped to make informed decisions for your coffee roasting venture.

See the search results for Coffee Roasting publications.

Coffee Roasting Forums

Coffee roasting forums enable you to participate in hot-topic discussions and build industry relationships.

By interacting with forum members, you gain valuable customer perspectives, fostering a deeper understanding of the market and industry, and leading to invaluable insights for your business.

See the latest search results related to Coffee Roasting forums.

Courses related to Coffee Roasting are excellent for learning and enhancing your skillset while staying up-to-date with the industry.

These courses provide valuable knowledge and insights to help you thrive in the coffee roasting business.

See the latest courses related to Coffee Roasting , and our management articles to provide insights and tips on managing Your business.

Coffee Roasting Blogs

Subscribing to coffee roasting blogs offers valuable ideas and industry updates. By exploring various blogs, you can curate a collection of informative sources.

Stay updated with a constant flow of valuable information to aid your coffee roasting business while managing your subscriptions to ensure optimal relevance and value.

Look at the latest search results for coffee roasting blogs to follow.

Staying updated with the Coffee Roasting industry through news outlets is essential.

Set up alerts for timely notifications on new media coverage, ensuring you remain informed and aware of industry developments.

Coffee Roasting News

Videos about the coffee roasting industry provide valuable tips and insights. Additionally, exploring related videos recommended by YouTube can uncover new perspectives and topics you may not have considered before.

Stay informed and expand your knowledge through video content.

See the links to YouTube Videos Below.

• Videos related to starting a coffee roasting business can be found here.

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How to Start a Coffee Roasting Business - 9 Steps to Success!

• by Mike Hughes
• February 01, 2024
• 12 min read

QUESTION: Do you know what the global coffee industry is valued at as of right now? Take a guess. Okay, we’ll tell you: a staggering $500 billion! Not only that, but the demand for coffee roasters is forecast to grow 6% through 2026!

If you fancy being among the 6%, then this article is for you. Perhaps you’re a coffee shop owner thirsting to roast in-house. Or a home roasting hobbyist looking to make the leap to coffee entrepreneur.

On those gro unds,  CoffeeRoast Co. presents the essential steps to starting a successful coffee roasting business . From the top...

1. DEVELOP YOUR COFFEE KNOW-HOW

Coffee craft.

To become a coffee roaster , not surprisingly, you’ll need a solid grasp of all things coffee and at least one or two years experience.

Above all, to become proficient in the roasting process, methods, and techniques. But also to understand how to select the right green beans, different brewing styles, and tasting skills.  One of the best things you can do in that respect is attend one or more professional courses or workshops.

In the U.S., both the Specialty Coffee Association [SCA] and Coffee Roasting Institute [CRI] offer a variety of educational resources geared toward becoming a roast master.

The SCA’s sensory skill module, in particular, covers recognising defects in green/roasted beans as well as discerning coffee characteristics such as acidity, body, and aftertaste.

Coffee Industry

Before launching a new roasting business, it’s imperative to carry out in-depth market research. In order to gain insights into who to sell your roasted beans to and how to sell them.

Not to mention, doing your thing differently or better, how to stand out from the crowd of other roasteries. Firstly, define your target customers; their needs and preferences. Then analyze your major competitors; their strengths and weaknesses.

Find your coffee roasting niche

After collecting the necessary data and information, the next stage is to figure out how to tread your own path as a professional roaster.

Ask yourself questions such as: How much will you charge for your roasted coffee? Will you stick to roasting single-origin beans or create blends? Will you sell to wholesalers, retailers, or individuals? Will you offer services like coffee subscriptions, training, or consultancy?

Keep a record of all the specifics as you’ll need them later.

Remember also that the coffee universe is ever-evolving. Tastes change. Techniques trend. Rivals pop up or close down. Because of this, you should continually finesse your roasting knowledge, skills, and experience.

At the same time as keeping up-to-date with developments in the industry and staying one jump ahead of competitors.

2. ESTABLISH YOUR COFFEE ROASTING BRAND

Unless you go down the route of a coffee roasting franchise, your roastery will need its own unique brand. One that’s instantly recognizable, memorable, and trustworthy.

At the same time as resonating with your target audience, and setting your business apart from the competition.

Brand identity specifically is the ‘face’ of your brand. It’s meant to shape the most positive impression of your roasting brand in the minds of your coffee-drinking customers.

That starts with deciding a brand name for your new coffee roasting company. Then, among other things, a logo, a tagline, your business’ core values and unique selling proposition, and your brand personality.

Take Florida's Koffee Kult specialty coffee roaster, for instance. Their name’s distinct and catchy. In keeping with which, their slogan ‘Be One of Us’ is more a message making folks who buy their roasts feel like they’re joining a coffee religion!  Whether in words, pictures or both, your brand should be reflected in the roasted coffee products you sell and any services you offer.

From the design of the packaging for your roasted beans to that of the business cards for your roastery. And, the number one rule of branding, communicated consistently.

3. GATHER YOUR ROASTERY TOOLS & SUPPLIES

Exactly what inventory’s required depends on the size and scope of your roasting operation as well as your bank balance.

Here’s a round-up of the standard raw materials and hardware needed to roast coffee professionally:

Green Beans

The kind of green coffee beans you choose will have a considerable impact on the characteristics of the final cup. Not to mention, on your bottom line.

Therefore, never skimp when shopping for unroasted beans. Plump for the freshest, highest quality ones you can afford. And ideally, those that are sustainably grown, organic, and ethically sourced.

Before  buying green beans to roast and sell, decide which you’ll focus on. This means experimenting with beans from different coffee-producing areas, processing methods, and so on.

You want two or three reliable suppliers. Courtesy of specialty coffee shops, online vendors, importers, brokers, or by direct trade with farmers.

Coffee Roaster

The centerpiece of your roasting enterprise,  coffee roasting machines come in all manner of types, sizes, prices, and levels of automation.

When starting out in the coffee game, there’s nothing wrong with using a countertop home roasting appliance. Save having to upgrade later though, smart to invest in a model that can scale with your business.

The go-to pick for commercial coffee outfits being drum roasters with a capacity of 2.2lbs and up.  In addition, you may need to factor in installation and configuration of the unit by a qualified technician.

Roasting Software  – For hooking up to compatible coffee roasters to help monitor production, planning, quality control, and other aspects with Artisan and Cropster popular picks.

Sample Roaster  – For roasting smaller amounts of beans to judge the quality of your roasts before upsizing the batch.

Moisture Reader  – For sensing the water content of beans (green coffee particularly) to provide clues as to how their quality might change over time and how they’ll react in the roaster.

Bean Probe  – For sampling roasting beans so you can smell-check their aroma and, under a spotlight, view their shade by eye.

Color Meter  – For finding out the true degree of roast to better help consistency of your roasts

Weighing Scales  - For measuring out your green beans before roasting, ground coffee before taste testing, and roasted beans before packing.

Coffee Grinder  – For  grinding whole roasted beans to try out your roasts for use in regular coffees and/or espresso.

Coffee Maker  – For checking the suitability of your roasts with different  brewing methods .

Cleaning Materials

It’s vital to keep your roastery equipment in good and safe working order. Amongst the essentials, stuff like a wire brush to remove chaff and other debris. Specially formulated spray or powder to shift built-up coffee oils and other gunk. Plus a shop or industrial vacuum cleaner.

Safety Articles

Roasting coffee beans isn’t without its risks; smoke and fire, for two. Besides taking the proper precautions, always have on hand items such as a well-stocked first aid kit, fire extinguishers, gloves, and dust masks.

Storage, Packaging & Shipping Supplies

You’ll have to get hold of enough containers to store your beans. To stash green coffee, that usually means burlap sacks. For roasted beans, one-way valve packs while they degas and opaque airtight canisters for afterwards.

Kept that way in a cool, dark, dry spot, your precious coffee seeds will stay fresher and more flavorful for longer.

To mail out customer orders, you’ll need a bulk of bags; own branded and preferably recyclable. Something like bubble wrap or packing peanuts to protect your roasted coffee in transit.

A heat sealer to fasten the bags shut so the beans don’t degrade until opened. Besides which, delivery boxes, labels and pre-paid postage, for example.

4. SECURE A LOCATION FOR YOUR COFFEE ROASTERY

From wherever you run your coffee roasting business, of course, it needs to be big enough to comfortably accommodate your entire roastery setup. With adequate room to properly store your beans (roasted and unroasted) and to roast, grind, brew, and pack. Not forgetting office space for admin tasks.

Provided it ticks all the boxes, early on to help keep costs down, you might consider operating from home. Indeed, many a pro coffee roaster got their start there, in a basement or garage.

As your roastery business grows though, and especially if you need to onboard staff, chances are you’ll need to lease (or purchase) commercial premises. Be it a storefront or a warehouse facility.

5. ARRANGE PERMITS & LICENSES FOR YOUR ROASTING BUSINESS

Not the most exciting nor the speediest aspect of having your own coffee roasting business. To operate legally though, it’s crucial to come by the required paperwork and comply with health and safety laws and regulations. Otherwise, you risk a hefty fine or your roastery shuttered for good.

Precisely which licenses and permits you’ll need will mean checking with local, state, and federal authorities. Here’s the more common ones:

EPA Air Permit  – Issued by the Environmental Protection Agency where roasters roast more than 1 million pounds of green beans per year.

FDA Registration  – Certain food facilities must register with the Food and Drug Administration then undergo regular random inspections by the local health department.

General Business License  – One-size-fits-all document that gives permission to operate a business.

Legal Entity Setup  – To establish the name of the business and its structure/form (sole proprietorship, partnership, corporation, or Limited Liability Company [LLC]).

Employer Identification Number  – When recruiting employees and reporting employment taxes, apply for a unique EIN from the IRS.

Seller's Permit  - Authorization to collect sales tax from customer transactions before remitting to the appropriate taxing authority.

Resale Certificate  – Exempts the holder from paying sales tax on goods purchased from another business to be resold.

Certificate of Occupancy  – Being granted a CO ensures the commercial building conforms with zoning and building codes.

Obtain Business Insurance

Often compulsory, getting properly insured safeguards against claims arising from your coffee roasting business.

There are several sorts of plans and levels of cover:

General Liability  – All-round coverage for personal injury, property damage, and more.

Commercial/Business Property  - Protects company premises and its contents in case of loss or damage.

Business Owner's Policy [BOP] – General liability plus business property insurances bundled into one.

Equipment Breakdown  – Provides for replacing or repairing work machinery.

Workers' Compensation  – Medical and salary benefits for employees/staff sick or hurt on the job.

Fair Trade Certification

As a roastery business, it’s worth looking at getting Fair Trade Certified.

Roasted beans that meet Fairtrade Standards can demonstrate your commitment to a fair wage and treatment for coffee producers. Quite apart from the chance to earn greater returns and customer support in the long term.

Just bear in mind that to qualify, your roasting outfit will be subject to supply chain audits and you’ll pay a premium for Fair Trade coffee beans.

6. COSTING & FUNDING YOUR NEW COFFEE ROASTING START-UP

Calculate startup costs.

To open your own coffee roastery may not be as costly as that of, say, a café but you’ll still need a chunk of capital.

The initial lay out for a coffee roasting start-up varies widely. Ranging anywhere between $10,000 and $150,000 with the average investment in the ballpark of $50,000.

Running through the basic upfront spends:

Coffee Roasting Machine  – Generally your single biggest expense, roasters drop from a couple hundred bucks for a decent home roaster to tens of thousands for monster-sized commercial-grade equipment. Added to which, possible installation, maintenance, and servicing costs. And not counting the cost to fuel the roaster, be it by electric, propane, or firewood.

Green Coffee  – Depending on the quality and variety, bulk-bought raw beans go from $1 to $15 per pound. Prices change from month to month, but $3 to $4.50 is typical. Also note that whilst you perfect your roasts, expect a good amount of wastage.

Physical Space  - Roasting professionally from home, you can suppose your mains water and power utility bills will go up. Having a commercial roastery will entail paying rent or taking out a mortgage; either way, you can safely assume you’ll have to put down a sizeable deposit. Whether running your roasting business from home or otherwise, you may also need to sink money into construction or renovations.

Employee Pay  – Likely as not, you’ll handle much if not all of the legwork yourself when you first get going in the roasting business. As you expand though, be prepared to take additional labor costs into account.

Marketing  – To broadcast your coffee roasting business to the world, you’ll need to reserve a budget for branding and advertising.

Documentation  – Although the costs differ massively, reckon on regulatory fees for licensing and permitting. And extra for insurances policies, certificates, company registration and the like.

Raise Startup Costs

If you don’t have savings, assets to sell or simply unwilling to self-fund, you’ll need to finance your coffee roasting business by other means:

Bank Loan  – The norm, though receiving the green light will call for a comprehensive business plan and a sound credit history.

SBA Loan  – Borrowing from a third-party lender with the line of credit backed by the Small Business Administration.

Government Grant  - Federal financial assistance programs for sponsoring ideas and projects.

Venture Capital  – A VC firm contributes funds in exchange for an ownership stake in the new business.

Crowdfunding  – From average Joes and Janes to angel investors donating to the fundraiser’s cause.

Family & Friends  – Requesting monetary support from loved ones.

7. HATCH YOUR COFFEE ROASTING BUSINESS PLAN

No self-respecting entrepreneur would go into commerce without a well-laid business plan. Sure, it takes a bit of time to put together, but it serves to map out your new coffee roasting venture.

In point of fact, if you’re hoping to score big bucks in startup funding for your roastery, odds-on you won’t get it without a killer business plan.

These are the basics of what should appear in a business plan:

Executive Summary  – A short overview, written last, of the key points in your roastery business plan.

Company Description  – Detail your coffee business’ vision, mission statement, goals/objectives, performance measures, and such like.

Products & Services  - Catalog which roasted coffee products you’ll offer, plus any subscription or related services.

Business Structure  – Outline the ownership of your roasting company, as well as how it will be organized and managed.

Employee/Staffing Requirements  - Describe your roastery’s hiring needs including how many workers (contract, salaried, or otherwise), what positions, and any training.

Market Analysis  – Break down your business’ target audience and main competitors.

Sales & Marketing Strategies  – List advertising campaigns to attract customers to your roasting business and merchandising initiatives to help sell your roasted beans.

Financial Outlook  - Sketch out 6+ months of sales projections, a break-even analysis, startup and running costs, profit and loss estimates, and whatnot.

8. GET YOUR COFFEE ROASTING BUSINESS ONLINE

Nowadays, building a presence on the Net for any business is crucial for a host of reasons. Not least to showcase your brand, educate with coffee roasting content, as well as engage with customers new and old.

Most of all, as a pro roaster, you’ll be able to sell your roasted beans online together with breaking into international markets.

Set Up Your Coffee Roasting Company Website

Versus commissioning a web designer and developer if you’re tech shy or on a strict budget, DIYing a basic website has become reasonably straightforward. Granted, creating an e-commerce store for the sake of selling is somewhat more complex, expensive, and time consuming.

Before anything, you’ll need to register a domain name. Really, one matching the name of your roasting business. Next, sign up for web hosting. After that, set up a website builder.

The most popular being WordPress, Weebly, WIX, Squarespace, and Shopify. Then, based on your earlier market research, it’s a matter of designing, developing, optimizing, and deploying your site.

Leverage Social Media

Completely free or pretty economical, you’d be missing a serious trick if your up-and-coming roastery wasn’t on social media. Among the biggest platforms are Facebook, LinkedIn, Instagram, Pinterest, X (formerly Twitter), YouTube, and TikTok.

With more emphasis on real-time interaction, yo u can tap into a fan base of new coffee-loving prospects.

Lots of different types of content can be shared on social media – short text posts, infographics, articles, photos (pre-recorded and live streams), testimonials, webinars, quizzes and polls, contests and free tries, special deals, and teasers and announcements.

What’s more, it’s a breeze to set up a shop on each of Facebook and Instagram for selling your roasted coffee.

Just don’t forget to link your various social media channels to your website.

9. SHOUT OUT YOUR COFFEE ROASTERY

You can have the best coffee roasting business on the planet but if no-one knows about it, you won’t go far. Even then, there are countless other roasteries out there vying for custom. Precisely why you need to do everything you can to put your roasted beans in front of folks.

Marketing efforts normally take a while to gain traction. So, in the interests of raising brand awareness and building an audience, begin hyping your brand sooner rather than later.  Get people excited, drum up interest, and maybe pre-orders. Followed by full-on promotion after launching to expand the reach of your roastery business and drive sales.

These days, most coffee roasters get the word out by using a combination of modern-day online marketing and good old-fashioned advertising and PR:

Internet Marketing

Done right, digital marketing can work miracles for plugging your coffee roasting brand on the web.

To highlight a mere handful of types:

Content Marketing & SEO – Create, publish, and share blogs, videos, posts, podcasts, and other material online; often used in conjunction with Search Engine Optimization.

Pay-Per-Click Marketing  - Advertise online and pay for each click a PPC ad receives.

Social Media Marketing  – Not least influencer marketing to collaborate with SM users who have substantial followings.

Email Marketing  – Send promotional messages and newsletters to subscribers.

Business Listings  – Register your roastery on the likes of Google Business Profile, Yelp, and LinkedIn as a simple, zero-cost, and underrated way to increase the visibility of your roasting business.

Traditional Marketing

Online marketing may have upstaged more conventional advertising but it still has its merits.

Some ideas to boost publicity and connect with new customers the old-school way:

Signage  – If you’ll have a retail outlet for your roasted beans, put up signs there to grab the attention of passersby.

Promos  – Spark interest by offering loyalty programs, discount vouchers, prize-winning competitions, or complimentary samples of your roasted coffee as giveaways.

Flyering  – Hang, hand out, or door-drop leaflets throughout your local community, especially in areas with high foot traffic.

In-Person Sales  – Pitch your roasts at farmers’ market, trade shows, conventions, and similar events; besides looking for partnership opportunities with grocers, restaurants, and caterers.

Cuppings  – Host free  coffee tastings at your roastery or elsewhere around town.

THAT'S A WRAP

Launching a coffee roasting business is a golden opportunity for those with a passion for java and an entrepreneurial spirit.

In fact, knowing your craft as well as choosing the right beans and roasting machine is half the battle. The rest is a question of getting business savvy.

Most notably, carving out a niche and a brand for your roastery, satisfying health and safety regulations, plus crunching the numbers. Then, before lift-off, to begin marketing your roasted bombshells to the world.

If you’ve ever started a coffee roasting business, feel free to weigh in with any lessons learned in the comments box underneath.

Otherwise, as the heart of your future roasting empire, how about checking out our collection of  commercial drum roasters .

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• Business Plans Handbook
• Business Plans - Volume 04
• Coffee Roaster Business Plan

Coffee Roaster

BUSINESS PLAN

VENEZIA COFFEE ROASTERS

14600 Waterfront Drive Kennebunk, ME 04043

Two seasoned coffee roasters found their niche in a seemingly saturated market. This plan illustrates that their specialty lies not only in their roasting methods, but also in their socially responsible business practices. Their mission is to balance the needs of their customers, their environment and the coffee growers. Venezia Coffee Roasters' detailed financial tables showcase the preparation needed to make them a competitive small batch coffee roaster in the New England region.

STATEMENT OF PURPOSE

Description of business, goals and objectives.

• PRODUCT AND SERVICE

SPACE, EQUIPMENT AND LOCATION

Market information/marketing, competition, financial data.

Venezia Coffee Roasters seeks loans totaling $56,000 to: purchase equipment and inventory, rent working space, and perform the necessary renovations and improvements, and provide adequate working capital. This sum, together with an additional $23,000 investment from friends and family, will be sufficient to launch a profitable small-batch gourmet coffee roasting company. The initial form of organization will be sub-chapter "S" with a buy-sell agreement among the founders. The company's mission is to be known as the premiere small-batch coffee roasting wholesalers in southern Maine.

We have over two years experience in the specialty coffee roasting business. Venezia coffees will include only the best ingredients roasted to perfection with pride and careful attention to detail. Venezia's service will be unparalleled offering weekly interaction with its customers. Venezia will guarantee seven-day-a-week maintenance and repair service. Not only will our packaging be environmentally sensitive but it will ensure optimum freshness which surpasses our competitors. In keeping with our environmental ethics, Venezia will be the only roaster in Maine to employ an afterburner to reduce the air pollutants normally associated with the roasting process. Venezia will be able to offer all these advantages and remain competitively priced.

With the ever increasing demand for specialty coffee, Venezia will fill a specific niche in the market. Venezia coffees will appeal to the discerning coffee drinkers who insist on quality, consistency and affordability. Venezia coffee roasting company will be successful due to steady growth with profitability by the third year accomplished by providing a superior coffee with unequalled service to our customers.

How did we choose the name Venezia? Venezia draws on the Italian influence and history in specialty coffees. It lends itself well to a more sophisticated audience such as our target market.

Venezia Coffee Roasting Company will small-batch roast only the finest, top grade beans from around the world. Careful attention will be paid to all stages of the product's development, beginning with purchasing the highest quality beans. We will small-batch roast to assure the optimum peak of flavor when roasted. We will blend coffees which complement each other in acidity and body. We will flavor coffees using the best available extracts and flavorings. State-of-the-art packaging will be used to assure a long shelf life (approximately one year) and attractive and informative labeling will be used to entice and educate the consumer about our product.

Our concern is that we be as environmentally conscious as possible. We will use an afterburner on the roaster to reduce the amount of air pollutants normally associated with the roasting process. Our packaging will be recyclable or made from recycled materials. Our packing material too will be recycled.

We will become involved with the Coffee Children Association to help promote a greater return, financially, to the countries from which the coffee originates.

We want to have a working environment that promotes a feeling of pride and enthusiasm.

Venezia will target four markets:

• Retail Specialty Shops - Gourmet, Gift
• Coffee Brewing Establishments - Bakeries, Coffee Shops, Restaurants
• Office Coffee - Schools, Offices

We will provide coffee to the discerning coffee drinkers. We will be environmentally and socially conscious which will appeal to that same market. We will provide the necessary brewing, grinding and display equipment for the relevant businesses. We will contact a roasters' authorized repair service company to provide the maximum service ford that equipment. We will deliver weekly to provide the end user with the freshest product possible. We will place the expiration date on each bag to further insure freshness. We will roast only what we will sell within that week.

Each account at Venezia will enjoy seven-day-a-week service for all mechanical concerns. Along with the regular weekly contacts with each account by our sales representative Venezia will have a service contract set up with CSX of Portland, Maine, to cover weekends and holidays.

As a seed company, Venezia has secured six accounts averaging 300 pounds per week. Our goal is to close ten accounts by the end of the first year. The total amount of sales per week will be 500 pounds or better. We will do a mailing in the Portland area offering introductory specials to give our name exposure and to entice consumers. We will participate in as many community functions as we can possibly handle in an effort to get name recognition and to educate the consumer about our coffee. Initially, tastings in all retail locations will be held regularly. A mailing for office coffee will be sent to surrounding schools and offices. We will capture some of the Christmas business at the gift shops by offering one-pot portions, ground and whole bean, which sell well in customized gift baskets. We will increase our sales by the end of the second year by approximately ten percent. Our name will have greater recognition by that time providing us with more referrals. By the end of year two we will be able to offer our own gift boxes and baskets for all occasions. We will target several of the surrounding businesses for their Christmas gift business. We will increase business by another 250 pounds per week by the end of the third year. At this time we will have hired an additional sales/delivery person to reach that goal through all the avenues previously described. Special emphasis will be placed on capturing corporate gift business.

Both Maria and Jennifer hold college degrees. Maria owned and operated a successful house painting business for five years. She has strong production skills. Jennifer was head chef and kitchen manager at Pineland Farm Restaurant for six and a half years. She has strong organizational skills. Both Maria and Jennifer have over two years cumulative coffee roasting experience. Jennifer was manager of sales and production at Pawtucket Coffee Roasting Company. Maria was the coffee roaster for ten months at the same place. While employed at P.C.R. both Maria and Jennifer learned all of the different facets of running a coffee roasting wholesale business. Within the fifteen months that Jennifer was manager of P.C.R. she tripled sales, bringing sales up to an average of 750 pounds per week. Maria and Jennifer attend Specialty Coffee Association of America Seminars when possible. They confer with experts such as John Collers, President of the Coffee Association and owner of Collers Office in New York City, and Daniel Krull, owner of Sam Coffee Company in Brooklyn, New York. Jennifer is an active member of the East Coast Women's Network and uses that organization as a business resource. Kim Bonn, office manager of Cromwell Financial Services in Portsmouth, NH, consults with both Maria and Jennifer. Don Shute, a retired executive of IBM and EDS also consults with both women. Both Maria and Jennifer have a working knowledge of IBM and Apple Computers. They have taken adult education classes to better familiarize themselves with these platforms. They feel confident, since they have already successfully run a coffee roasting business, that they can make Venezia a profitable and long lasting business in the area.

We have the required technical and marketing skills to get this company up and running. We have experience in ordering, roasting (production), delivery and most importantly, sales. We anticipate hiring one or two employees in year three. The first position would be as a sales/delivery person. We will split the work duties as it demands. Maria will primarily be responsible for the production end and Jennifer for the service and sales end. Each will fill-in where necessary. Bookkeeping will be shared. We have hired Karen Allen, an enrolled agent to handle taxes, and general accounting-strictly part time. We will consult with lawyers concerning incorporating issues.

Maria and Jennifer have worked together for the past two years in varying degrees. They share similar philosophies about work and life and have discussed in depth where they envision Venezia to go and how it will get there. Between us we have the necessary labor skills. When it comes time to hire new employees we feel confident we can train for any position. We continue to further our skills and knowledge by attending roasting and cupping seminars given by John Ewell, president of the Coffee Corner in Boston, MA.

PRODUCT & SERVICE

We will offer coffee roasted weekly to locations within the New England area. We will offer numerous varietals, blends, and flavored coffees along with nearly as many decaffeinated coffees and blends. Our product will be packaged in an airtight, heat-sealed, one-way air valve, polypropylene bag which will either be produced from recycled plastic or be recyclable. The bags will be hand stamped. Labeling will include information concerning contents about artificial and natural flavorings, origin of beans, and type of roast. Each bag will be freshness dated. We will give our suggestions for best brewing and storage. We will offer one pot portion bags along with half-pound, one-pound and five-pound bags. For brewing establishments we will provide brewers which we will install, maintain and repair as needed. We will offer promotional items such as tee shirts, paper cups, ceramic mugs, travel mugs, home grinders, French press pots, bumper stickers, etc. We will offer a money back guarantee. If for any reason the customer is dissatisfied with our product they need only return the unused portion and we will refund all their money.

Our product is extremely reliable, and safe. Any pesticides or residues from the decaffeination process are burned off in the roasting process.

With all the careful attention paid throughout the development of our product we know that Venezia coffee will yield the best cup of coffee for the end user. Freshness will be our number one concern. We are proud to be a Maine based company and feel it should add to the overall appeal of our product.

We feel that we have developed our product experience during our employment at our packaging, will be radically different from that of P.C.R.'s. Although we have not yet tested this new packaging we know through reading and observing the competition that it will be the future of packaging. We will be using a different kind of roaster than our competition, however, the process will be similar. We are confident that the roasting experience we have will translate to this other kind of roaster. As part of the service provided upon purchasing the roaster we will receive training on the new machine.

Responsibilities

Jennifer will contact each account early in the week to determine amounts and types of varietals to be roasted. Maria would then roast the coffee for those orders, blend, flavor and package the product. Then Jennifer will deliver via a delivery vehicle within the three day turnover that we allow to process an order. Orders that would fall outside of the hundred mile radius will be delivered by UPS.

Once the plant is fully equipped with the roaster we will start production immediately. Generally it takes about three hours to fill an order from raw bean to packaged product. We have five standing accounts waiting for our production facilities to open.

Jennifer will be purchasing the beans, enabling her to have a first hand knowledge of what will be roasted. A small-batch roaster, such as the one we will be using will allow us to keep a close eye on the development of the bean during the roasting process. Each varietal and each crop within that varietal has a different moisture content. It is that water content that determines the amount of roasting time needed. Since we will not have an automated roaster we will be able to adjust each roast accordingly, yielding an even roast which has been allowed to develop to its optimum flavor peak.

Coffee roasting is an exciting and wonderful process. It is simple in theory. The beans must be heated, kept moving so no burning or tipping occurs, and they must be cooled, or quenched at the precise moment to stop the roasting process. Under-roasted coffee tastes pasty, coffee roasted too long and at too high a temperature will be thin-bodied, burned and industrial-flavored. The roaster that we will be using has a drum which rotates above a gas flame. Typically the air in the drum will be heated to about 500 degrees fahrenheit and by manipulating the air flow the temperature can be steadily maintained throughout the roasting process. For the first five minutes or so the beans will tumble around and lose water weight which accounts for the 15%-18% total weight loss. When the internal gases in the beans heat up and the pressure becomes too much for the bean, they will explode creating the first of two snapping sounds heard during the process. Later when the internal temperature of the bean reaches about 400 degrees fahrenheit, the oils in the beans will begin to develop, a process known as pyrolysis. The beans will then begin to show a marked darkening in color and the second snapping will be heard. Allowing a small amount of time for the beans to cool, they will then be emptied into a metal bin where they will be air cooled. The last few minutes of the process can make the difference between a full city roast, a French roast, an espresso roast, or sadly, a worthless roast. By roasting as close to that amount which is actually ordered each week we will be able to maintain the freshness factor. By expiration dating the bags, we will be able to rotate stock accordingly.

Coffee beans can be bought through a number of brokers. There are ports in New York, Louisiana, and California. We will be using Express Freight Service, Inc. for delivery of the beans from port to our business. The average turn around time for delivery of beans is five working days. Labels, flavorings and most other supplies can all be delivered within ten working days. The initial printing of any advertising or labels will take longer to allow time for proofing, but once it is all set up delivery time is reasonable. We will have all the basic printed material ready to go before we open for business.

Orders will generally be delivered in the delivery vehicle, or by UPS. We will have routes to cover the various areas. Generally Jennifer will make the deliveries, since she will be acting as the sales representative. In so doing she can field any questions or problems the customers might have on a weekly basis. While making deliveries she can make sales calls along the way to try and increase the volume for those routes.

Venezia understands the importance of a good working relationship between ourselves and our customers. The service begins the moment we introduce and educate the consumer about our product. We are willing to customize our displays and equipment to accommodate the different space limitations and needs of each customer. We feel it is important to give the customer a working knowledge of specialty coffee and the specific brewing equipment they will be using.

In whole bean retail locations we will conduct regular tastings to introduce our product and educate the end user. We will offer attractive and informative promotional items and strategies to help establish a new customer base for the retailers.

Venezia knows that any down time for our customers due to mechanical problems of our equipment can be expensive for both parties. Venezia will have a regular maintenance program in place to troubleshoot and predict possible problems and take appropriate precautions. In the event that a mechanical problem does arise Venezia's service contract with a Conley authorized repair company will insure prompt attention to and resolution of the problem. In addition to the service contract with Conley, Venezia will employ back-up brewers as a temporary solution. Either way our customers will be provided with round-the-clock service. This service coverage is unrivaled by our local competitors.

Each week the sales representative from Venezia will contact each account not only to take orders but also to field any questions, promote new products and listen for problems.

Initially we would need the space provided by a two car garage (approximately 320 square feet). We would need plumbing with a two bay sink. We would need a gas hook-up, and the ability to vent a six inch pipe. We would require zoning for light industrial.

We will need a small batch roaster with an afterburner, scales, a delivery vehicle, shelves, work tables, a telephone, a computer, seven brewers, five grinders, a heat sealer, and office furniture.

We are considering another location somewhere between Portland and Acadia, Maine. We would prefer easy access to the main freeway. The location needs to be zoned for light manufacturing. We have looked at a place which fills all of our criteria while meeting our budget qualifications.

The trend in the coffee business now supports Venezia's plan. A big emphasis on gourmet and specialty coffees has been increasing and is reflected in a rapid increase of coffee shops. The West Coast's influence on the coffee market has effected consumer's appreciation of fine coffees making super-market coffees much less appealing. This statement is supported by various newspaper and trade journal articles.

Coastal Coffee Company, which has enjoyed huge success on the West Coast, has recently shown interest in expanding their operations to the East Coast (Boston) thus supporting our conclusion that the gourmet coffee trend is here to stay.

For servicing reasons we will initially focus on the local market, that would encompass an area of approximately one hundred miles in radius extending from mid-coast Maine to the Vermont/New Hampshire border and south to the southern metropolitan Boston area. Over time we will target regional and national markets through a mail-order strategy.

Like some of our competitors we will be using the finest beans and flavorings available. It would be senseless to invest all the time and money into such a fine product and then not protect it. That is why Venezia's one-half-pound, and one-pound bags are constructed of high barrier laminates with a one-way air value to allow the natural by product gas, carbon dioxide, to escape while preventing oxygen, and water contaminates from entering. The bags are heat-sealed but can be easily opened and have resealable zippers. All of these features combined will lengthen the shelf life appreciably. Typically the shelf life of coffee stored in the popular, less expensive, plastic-lined, paper bags only retain their freshness for about six weeks. Venezia's packaging will extend the shelf life to a full year. None of the other local roasters offers such packaging. From a retail perspective, the bag will retain a cleaner appearance over time since no natural oils will seep through and stain the bag.

Venezia's labeling will be very informative, offering advice on brewing and storing techniques as well as describing the type of beans, the flavoring extracts, and the type of roast. Unlike our competitors our coffees will have an expiration date affixed to each bag. This added information will further guarantee freshness to the end user.

In this time of environmental awareness we are proud to be able to offer state-of-the-art packaging that uses 80% less material in its production while offering the consumer a reusable container.

Venezia Target Markets

Primary markets.

• Donut Shops
• Restaurants
• Gourmet Food Shops
• Upper-End Gift Shops

Secondary Markets

• Offices with an average of twenty five employees

Market Description

Venezia will operate in the southern Maine area targeting high volume upper-end bakeries, restaurants, and specialty food shops. The geographic area includes coastal New Hampshire, and southern Maine. As quoted from "The Basis Business and Industry Profile of Specialty Coffee House/Cafes" supplied by Cleveland State University, "according to a recent National Association of the Specialty Food Trade (NASFT) report on the specialty food consumer, gourmet coffee consumers are an educated, affluent group. Overall, 22.1% of Americans purchased specialty coffee. Most gourmet coffee consumers live or work in large urban communities. However, their most significant attribute is education level. Persons with some college education are 11% above average in their consumption of gourmet coffee. Consumers that have completed college are 49% above average in their consumption. Since education is highly correlated to income, it is not surprising that specialty coffee consumers earn above average salaries. Most specialty coffee consumers are affluent, earning above $35,000 per year." We contacted the Bureau of Census whose latest statistics show that the median family income in Portland, ME. is $34,837 and $34,344 in Portsmouth, NH. The percentage of people holding Bachelor's degrees or more in Portland, ME is 29.6 and in Portsmouth, NH is 26.6. According to a researcher for the Maine State Department of Tourism, their major target market is people over fifty five, college educated, and earning over $55,000 per year. This influx of consumers of this profile increases our target market pool.

Our direct competitors are Pawtucket Coffee Roasting Company in Jamesville, ME, Colling Roasters, in Portsmouth, NH. Also breaking new ground is Mecca Coffee Roasting Company, in Portland, ME and to some extent, Valley Coffee Roasting Company, in Stowe, VT.

Since Venezia is the newest coffee roasting company we obviously lack the name recognition that all the other competitors now enjoy. However, to our advantage, we have learned from them the crucial importance of producing consistent high quality products and delivering superior service. We model ourselves after Coast Coffee Company because they insist on using only the best grade beans with careful attention to every other aspect of the coffee roasting and distribution process. It is evident in all their marketing that they are constantly aware of the value of their excellent image and reputation.

The small roasting companies in this area with whom we are in direct competition have taught us the importance of the service end of the coffee roasting business. It is not enough to produce a good coffee. It is imperative to pay close attention to the needs of the retailers, and to the consumer.

Valley Coffee Roasting Company has shown us how quickly a company can expand. They effectively canvassed the entire New England area. There is hardly a person in the New England area who has not heard of Valley Coffee. Valley was once the exclusive coffee drinkers' coffee, now you can get a cup in any Mobil Gas Station or convenience store in New England. The fallout from their indiscriminate expansion has given companies such as Venezia a new niche to fill. Venezia will offer a quality specialty coffee for retailers catering to a more sophisticated and informed audience. In light of the rapidly expanding specialty coffee market and although there are several coffee roasters in the immediate area there still remains a void Venezia can fill. Our goal is to produce a consistent high quality product and provide our customers with reliable, friendly, and expedient service. We want to protect our image and so we will be discerning about the establishments with whom we will do business. We will have written guidelines to ensure that our image is that of a reliable coffee roaster. Venezia will operate as an environmentally and socially responsible company. We will use an afterburner in the roasting process to reduce air pollutants, a step which none of the aforementioned local competitors have taken. We will recycle and re-use any product possible in producing and shipping our coffee. We will not compromise on quality to reduce costs, that would defeat our mission.

Venezia plans a controlled, and methodical, growth process. In our gradual growth we will be able to fully integrate each new business into ours with as much attention as may be needed without having to sacrifice service to the existing accounts. It has been to our benefit to watch Valley Coffee Roasting Company expand too quickly and show us the downside of unbridled growth.

Capital Equipment List

Breakdown of Variable and Fixed Costs

Monthly Breakdown of Cost of Goods Year One

*Raw Bean Quotes Given as of Sept. 1, 1994

Colombian Supremo 154 lb. bag $2.50 lb. Total $385.00 Costa Rican 132 lb. bag $2.63 lb total $347.00 Ethiopian 132 lb bag $3.25 lb Total $429.00 Kenya AA 154 lb bag $2.85 lb Total $440.00 Sumatra Mandehling 132 lb bag $3.30 lb Total $435.00 Decaf Colombian (Meth. Chlor.) 132 lb bag $2.66 lb Total $351.00 Decaf Costa Rican (Meth. Chlor.) 132 lb bag $3.03 lb Total $400.00 Decaf Sumatra Mandehling (Swiss Water) 132 lb bag $3.42 lb Total $452.00

Monthly Breakdown of Bags, Labels and Flavorings — Year One

1/21b Bags = .26, 1 lb Bags = .32, 5 lb Bags = .35, Labels = .06

Pricing Analysis - Calculating the Break-Even

S = FC + VC

FC = Fixed Costs in Dollars VC = Variable costs in Dollars X = Projected pounds sold $6.50 = Average pound selling price

Calculating Break-Even For Year One

S=FC/GM Where GM= Gross Margin Expressed As A Percentage of Sales

Cost of Unit ($6.50 - VC of Unit ($2.83)=Gross Margin Per Unit ($3.67)

(17,084) ($6.50)=$111,047.00=Break-Even Dollar Sales

* Note: a 5% increase due to an estimated 5% increase in cost of goods in year two.

Calculating Break-Even For Year Two

S=FC/GM Where GM = Gross Margin Expressed As A Percentage of Sales

Cost of Unit ($6.50) - VC Per Pound ($3.00)=Gross Margin Per Unit ($3.50)

Break-Even lbs. = FC $63,668.00= 18,191

Gross Margin Per Unit $3.50

Break-Even Sales in Dollars=(18,191) ($6.50)=$118,241.00

Venezia Monthly Sales Projections in Dollars

Income Statement Three Year Summary

* Includes Pre-Start-Up

Explanation of Categories

Cost of Goods = Raw Beans + Pick-Up Charges + Bags + Labels + Flavorings Rent/Utilities/Insurance = Rent + Electric + Water + Telephone + Gas + Fuel + Health Insurance + Car Insurance + Business I Professional Services = Legal + Accounting + Maintenance + Outside Services Taxes + Federal + Medicare + Social Security + State + Other Interest and bank loan is based on a $56,000.00 loan at 10% over seven years. Operating Expenses = Supplies Capital Purchases = Roaster + Brewers + Grinders + Scales + Heat Sealer + Delivery Vehicle + Computer Miscellaneous = Subscriptions + Start-Up Costs Information On Worker's Compensation Class Code # 8006; Sale of coffee, tea or groceries Per $100.00 of Payroll = $4.67 Also add 20% surcharge For year three one part time employee at $7.00/hour 20/hours/week with surcharge = $632.00

Employee Responsibilities

Employee #1 = Managerial/delivery/sales position

Employee #2 = Production

Employee #3 = Delivery/sales position

Employee #4 = Production position

Employee #5 = Bookkeeping/administrative position

Employee #6 = Production position

Anticipated Estimated Sales In Pounds Per Week and Month Year One

Payment Schedule

Balance Sheet Month One Year One

Balance Sheet Month Twelve Year One

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