We appreciate you for having an entrepreneur’s vision and there is no second thought about that. At the same time, you need to have some skills, to begin with, one. But do you know? Starting a coffee shop does not require great knowledge and that will help your business dream come true. You can start a coffee shop and do not worry about the investment as we will help you with financing.
But, before that let us throw some light about the coffee shop business and how do you go about getting a small business loan for a coffee shop.
To start with any business, you need to have funding and you will always worry about how to get funding. There are several ways in which you can arrange for the money. Let us list them for your better understanding. However, you must choose to apply for a small business loan which will be an effective way to start a business. Let us brief you about why small business loans and how to get them in this blog.
Before we start with the details let us analyze some statistics about coffee production and business in India. India follows Vietnam and Indonesia in producing a large volume of coffee. Karnataka produces 1152 Kgs per hectare of Coffee annually. Independent cafes market value is expected to increase to 83 billion rupees by 2020 in India.
Above all, 40% of the young Indian population consumes coffee and they depend on the coffee shops. Thus it is worth investing in this business and you are sure to make a profit.
Now you know the source to approach for a small business loan. Follow the steps given below to apply for a small business loan for a café.
Market knowledge is the key to take your business to success. Yes, you cannot start a coffee shop in a place where there is no customer demand. Therefore identify a place where there is a need for a coffee shop. For instance, start a shop where there are people around and who are interested in coffee. People in Kerala prefer tea than coffee so you need to identify the market where your coffee shop can generate profit.
Soon after understanding the market, make a business plan. This is important to understand your position including the knowledge you have, the things you require to start a business. The business plan must include a plan about the location, people, materials required and the cost.
Then decide on the location based on your plan. This means you need to set up your café in a posh location when you have the ability to set up with all luxuries. On the other hand, select a location where middle-class people live if you are going to make a minimum investment.
Now, comes the most critical factor and that is the cost. Cost estimation is the key to get a small business loan. Consider the following factors to calculate the loan amount.
After you know how much you want, you need to get your documents ready. However, we do not ask you for paperwork. Bare minimal documents like your identity proof, address proof, shop license, credit score, bank financial statement, PAN card, source of income proof, and passport size photographs must be uploaded for us to verify before we process your loan application.
You are now ready to start your coffee shop. Wishing you good luck!