Planning to start a coffee business

[Michael A. Warner]

Hey all, 

I am planning to start a small coffee shop in my city. I am a big fan of espresso. So, I thought why not sell it. There is great happiness associated with doing a business that you like. But the thing is, I am not on a big budget. I know that if we are going to start a business, it is crucial to keep aside some liquid cash to fund the business at least for a year. But, since I am new to the business, I don't know how much liquid fund should I have to keep aside. Usually, commercial espresso machines cost $6000 and, I will need another $5000 to invest in property and furnishing. So, I have a total investment of $15000 in my hand. How much of it should be kept aside? Can someone please give me a rough estimation of how long it will take a business to grow? And, in case if I want to finance the machines and other equipment, what are the best options available for me? 

[Leo Poon]

Originally posted by @Michael A. Warner:

Hey all, 

I am planning to start a small coffee shop in my city. I am a big fan of espresso. So, I thought why not sell it. There is great happiness associated with doing a business that you like. But the thing is, I am not on a big budget. I know that if we are going to start a business, it is crucial to keep aside some liquid cash to fund the business at least for a year. But, since I am new to the business, I don't know how much liquid fund should I have to keep aside. Usually, commercial espresso machines cost $6000 and, I will need another $5000 to invest in property and furnishing. So, I have a total investment of $15000 in my hand. How much of it should be kept aside? Can someone please give me a rough estimation of how long it will take a business to grow? And, in case if I want to finance the machines and other equipment, what are the best options available for me? 

 To be honest, 15k won’t be enough for a coffee shop. The rent and deposit will already cost that much depending where you located. You still haven’t calculated the cost of renovations. Equipments beside espresso machine, furnitures, insurance, utilities, product cost, labor cost, taxes. Most businesses don’t even make money in the first few years. So I don’t suggest going into business because you like coffee. It will most likely turn out to be a hobby that costs money than a business that makes money.