In today’s post, I’d like to share 10 reasons to start a coffee business. Keep in mind this is just my opinion and we can agree to disagree.
First off, there are many types of coffee businesses. You could:
- Start a coffee shop
- Private label your own coffee and sell it online
- Join a Coffee MLM Company
- Start a mail order coffee business
- Create a YouTube channel or blog about coffee
- Wholesale coffee to other entrepreneurs
- Develop your own brand from scratch
- And much more!
Picking the business model that works for you is a personal decision. You could make money or lose money using any of these business models. Individual results will vary, so choose wisely.
Top 10 Reasons to Start a Coffee Business
Here are the top 10 reasons to start a coffee business.
# 10: Mass Market Item
Coffee is a mass market item. From what I read online, more than 83% of the world’s population drinks coffee. Considering there are about 7.8 billion people worldwide, 83% is a LOT of people.
Coffee is something most people already use. That means you don’t need to bring a new product to the marketplace and get people to create a new spending habit.
Coffee is one of the most popular beverages in the United States. Americans on average consume two cups of coffee on a daily basis. Coffee consumption seems to increase with age, with 18 to 19 years old consuming about one cup of coffee per day, and Americans aged 70 years or older consuming over three cups of coffee per day.
# 9: High Demand Product
Regardless of how bad the economy gets people will still drink their coffee each day. For most people, having their cup of coffee is an important part of their day. People will give up LOTS of things before they give up their daily coffee. How about you?
Coffee is not just a drink. It’s a global commodity. As one of the world’s most traded products-second in value only to oil-the coffee industry employs millions of people around the world through its growing, processing and trading.
# 8: Consumable Item
Coffee is a consumable item. It’s something people use up and reorder, month after month. This leads to repeat sales. One loyal customer who orders your coffee every month is very valuable to you. Plus, selling products that need to be reordered monthly are much better than selling a product that is a one-time purchase.
Americans consume 400 million cups of coffee per day making the United States the leading consumer of coffee in the world.
# 7: Great Margins
Coffee has great margins. In some cases, you can mark up your product 30 to 50 percent and even more. If your coffee is a specialty product, you might have a 100% markup.
One pound of roasted coffee beans will translate into about 15 cups of 16 ounce (475 ml) brewed coffee for a store. At a price of $2.80/cup, that translates into a yield of $42.00/lb of coffee.
Source: World Economic Forum
# 6: Extra Income
Another great reason to start a coffee business is to generate some extra income. You can start your business part-time, as a side hustle, while you keep your day job. You can have some great tax deductions, learn new skills, and supplement your current income. You can stay part-time until your business income surpasses your job income.
Starting an e-commerce shop and selling coffee online can be a lucrative and rewarding business that you can manage all from the comfort of your own home. If you have an entrepreneurial spirit, a passion for coffee, and the drive to see your brand succeed, there’s no reason you can’t be successful at selling coffee online as a side hustle.
Source: Joe’s Garage
# 5: It’s Fun
Selling coffee is fun! It’s nice putting a smile on someone else’s face by selling them something they want to buy! Plus, when you do something you love you will never work a day in your life!
“A job that you love gives you extra motivation to meet your goals, and when you do, the sense of accomplishment is outstanding.”
# 4: Call Your Own Shots
Another good reason to start a coffee business is to call your own shots. Some people are just not cut out to work for someone else. When you own a business, the buck stops with you. You get to make the decisions and run the business the best way you see fit.
There are plenty of challenges that come with operating your own business. For many people, though, the rewards of running a business far outweigh the difficulties. In fact, 76% of those who decide to run their own small business are “somewhat happy” or “very happy” with their decision, according to a 2020 survey conducted by Guidant Financial’s Small Business Trends Alliance.
Source: The balance
# 3: Work from Home
Depending on which business model you choose, you can run your coffee business from your home. This helps keep your overhead and expenses low. Plus, you can eliminate your commute and work in your pajamas (if you want to).
If you’re used to spending hours in traffic to and from work every day, some of the most exciting advantages to starting a home-based business are your newfound freedom and the retrieval of lost time. When you can run a business out of your own home, you have those extra hours to regain control of your personal life.
# 2: Build an Asset
One of the best reasons to start a coffee business is to build an asset. If you build your business right, so it eventually runs without you, you can sell it for a nice profit, and have your big payday, when you are ready to cash out. Or, you can hire someone else to run it for you and enjoy the profits as a silent partner.
“Your income directly relates to your efforts.”
# 1: World-Wide Opportunity
Selling coffee can be a worldwide opportunity, especially if you have your own brand or sell online. If you can find a way to be different in the marketplace, the options are endless. Who knows, you might end up shipping your coffee to Thailand, China, or South America. That’s the power of the internet!
More than thirty million bags of coffee are exported annually. In addition to this, around 30-40% of the world’s population consumes coffee every day, and more than 500 billion cups are consumed a year.
My Favorite Coffee Business
My favorite coffee business is HB Naturals. In addition to their Smart coffee and CBD coffee, they offer about 90 other natural and organic products. You can join as an independent sales rep for free. You do not need to collect payments, keep an inventory, or make deliveries. You just share your personalized link with others, make sales, and get paid.
You get paid daily. You get 8 free websites and a free email marketing system. You earn 20 to 50 percent commissions on your personal sales. Plus, you have a business that ships to more than 100 countries. If you’d like to learn more about HB Naturals, you can visit my website here.
In conclusion, there are many good reasons to start a coffee business. Plus, there are many ways to do it. While most people would initially consider a coffee shop as their first option, there are cheaper, less risky alternatives you can pursue. Like any business, there is potential risk, so please do your due diligence, listen to your advisors, and trust your instincts.
What are your thoughts? What are the top reasons you can think of to start a coffee business? Leave a comment below to let me know what you think. I look forward to hearing from you.