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.
Source: Statista
# 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.
Source: BlackGoldMovie.com
# 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.
Source: E-Imports
# 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.
Source: allBusiness
# 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.
Source: Alibaba.com
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.
Final Thoughts
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.
Chuck Holmes
20+ Year Network Marketing Professional
Top Earner & Top Recruiter
Email: mrchuckholmes@gmail.com
P.S. Learn how to grow a successful network marketing business. Secret tips, training, and practical ideas. Free training delivered by email.
One of the best industries to venture into is food; it never runs out of sales, and people keep coming back. Coffee is one of the beverages most people can’t go a day without it. A day is not complete without a cup of coffee.
Therefore, this makes it a good business, at whatever level you run it. If you are thinking of a coffee shop, a busy road might be a good spot, even though there are several options to explore. Like any other business, it comes with its own share of risks. Doing extensive research is a must for the success of any business. Do your research well. Thanks for sharing this great business idea.
Yes, you can’t go wrong with food or coffee. No matter how bad the economy gets, people will still drink their coffee. Even if the zombies show up, people will still drink their coffee.
Coincidentally sipping coffee as I read this. Your article has got me thinking. Starting a small home-based coffee business of my own is a pretty neat idea actually. I personally know people in my community who are avid coffee drinkers and cannot imagine starting their day with anything else and they are also those who like to experiment with new ideas and try new things. It may be something I enjoy doing as I am a coffee lover myself. With winters fast approaching here, I think I could really make something out of it. Online social mediums would be a great way to get people on board. Thanks for the share. It truly was very informative and interesting.
Yes, coffee business is good business!
When I started reading this article I thought this would be the first article where I disagree with Chuck! Because there are like 1000000 brands or companies that already sell coffee. But then I’ve continued to read… Then it hit me… This is actually not a bad idea! Why would it be bad? You need to find the best available product (coffee) and you need to have a strategy on how and where to sell it. Will you make a brand from scratch and share it everywhere (social media, etc…)? Will you start a mail ordered business? Coffee is indeed a mass-market item! I personally would choose the lowest possible profit but the best quality coffee because I would prove myself to my customers in that way. The brand would get known that way. You can use this business to gather more people for your mail list, and because they trust you now, you can offer them other products as well. Really interesting topic, Chuck!
Yes, there are an unlimited amount of ways to start a coffee business.
Just by reading this article, I started craving a cup of coffee. I totally relate with the sentence about coffee being the most important part of the day. I can’t even think of starting my day without a great cup of coffee. Opening a business of coffee does sound like a lucrative option; especially when you’re a coffee addict like me! This way you get to sell what you love the most and it will really help you sell the product with passion and conviction. Coffee businesses indeed have a very large customer base, there are coffee lovers all around the world which give all the more reasons to start selling coffee. I agree with you it being a great side hustle and an effective way to supplement your job income. It was a very interesting article! 🙂
Can’t go wrong with coffee. Coffee can be a lucrative business.
Well if you are thinking of starting some kind of business, you can’t go wrong with coffee. This brewed drink is loved all over the world and it has reached a point which is considered as essential as food. Because of this you are not introducing some new product to the marketplace. Also I agree that even in the worst economic scenario, people are going to still consume coffee each day. What’s more, even in this apocalyptic pandemic context, people are still drinking coffee. It is a great idea to develop your business from the comfort of your home.
I love coffee and recommend it as a business, for all of the reasons you stated in your comment.
This is one of the coolest blogs I read today. This might sound absurd, but I actually started seeing the possibility of starting a coffee business. Though you have mentioned the reasons to start a coffee business, I think this might help any new business idea. Say, if you have an idea to open a new bookstore, the above list will help you understand the market and other possibilities.
I didn’t even think of starting a coffee business in the WFH module, but with your help, it’s now clear. I think I’m actually going it a try, and if it succeeds, I’ll keep you posted.
I appreciate how you included passive income streams as well for the coffee business. Thank you!
Yes, the coffee business is big business, even in the work from home industry. Heck, even while I write this comment I am working from home and drinking coffee!!!
The key is to find something with a legitimate demand in the marketplace, that makes sense to you. There are so many different possibilities with coffee.
Many drink coffee. There are coffee shops on every corner. Some types of coffee are expensive while others affordable. Not all types are sold. Some may be too strong or too weak for a personal taste. Not everyone can find what they find most satisfying. Because of this, they dream of opening their own coffee shop. If this is the case, Chuck Holmes, lays out good reason why someone should do that, or pick one of these other strategies to make money with coffee.
For all of the reasons you mentioned, starting a coffee business is a good idea for a lot of people.
Today, the internet has made life easy for people. One can do almost anything that he wants through the internet. This article highlights some inspirational reasons for people like me, who are studying or doing any sort of business. Through the internet, one can grow his business from local to international.
It is even easier in the coffee business to trade online to other countries.
I get inspired by business ideas where there is less effort and high return. Everyone would love to do such business where you have to work from your home, in your pajamas, and make money. I am glad to understand the idea that the coffee business can also be operated while at home.
Yes, the internet has made it quite easy for anyone to start an online business, whether it’s coffee or something else.
I have learned a lot of new things from this informative article you wrote. I never knew that the population of people who take coffee is this much. The fact that the market is big enough for everyone makes me want to go into the coffee business. So while taking my morning coffee, I could make money without much stress and capital. This is a great work-from-home business idea.
Yes, coffee is competitive, but offers a ton of opportunity if you can carve out a good niche, or do something better than another company does.
Thank you for this! This article is very informative, it gave me a glimpse of idea about starting a coffee shop business. I’ve always dreamt of having my own coffee shop especially when the pandemic started, and this article made me realize that this is actually a neat idea. This kind of business is perfect for students, like me, since it does not require a large investment, it can be done at home (as what the article stated), and of course, it can be enjoyed by almost all everyone in different age range. The only key to establishing a coffee shop business, knowing that there are already a lot in the market, is to be unique, innovative and creative. I’ll take this article as a sign for me to work on my own coffee shop business, someday! Until then, I’m keeping my fingers crossed.
That’s awesome that you wanted your own coffee business. There are so many ways to do it. Just follow the advice in this article and there is no doubt in my mind you will find a business model or idea that works for you.
I’d also suggest you start out part-time so you can test out the idea, before you invest lots of money.
I like the business idea. Coffee will always be needed and is not only something that most people start the day with but also something that is always great for social or business gatherings. As that, it truly is in high demand. Wow, 400 million cups of coffee per day sounds like an insane amount. And it is a great way to create income because of the low investment but high returns of profit. If I would get into a private business of my own, coffee would indeed be one of the first ones that would come to mind. It is a great business opportunity indeed.
I second that. The coffee business is big business. It is extremely competitive, but even if you only carve out a small market share, you can still build a very good business. Plus, it’s secure. You won’t see the coffee business go away any time soon.
Yes, the coffee business offers huge opportunities. It might not be a good fit for everyone, but for the right person the sky is the limit.
Awesome article, Chuck!
I knew that a lot of people drink coffee but I didn’t realize that over 80% of the world population does!
When you put it like that, it makes me want to start my own coffee business as a side hustle, because why miss out on easy, enjoyable profit, right?
If I ever do decide to give it a go, I know just the resource to consult.
Coffee baby…
Sip, sip, cha-ching!
Give the people want they want. Coffee is something MOST people want.
Why not create a business around that?
Wow, very interesting! Starting a coffee business actually never crossed my mind, I think that most people subconsciously cross out that idea because coffee is all around us and most of us think there’s no room left for beginners. But especially during this pandemic, working from home and being your own boss sounds like a great idea, and, as you said, it’s a worldwide opportunity, because people all over the world consume it daily, On top of that, if the business develops it can be a side job and in some way a source of passive income, which I think in these uncertain times is something many of us are considering or looking for. Last but not least, one can start building this business without too big of an investment right away, you can work your way up gradually as it develops. All in all, cool idea!
To me, having a home-based coffee business is the way to go because you can start part-time and there is normally only a small financial investment. This limits your financial risk and allows you to learn as you go. For most people, that is a better option than investing six or seven figures in a new business without knowing how it will turn out.
It’s funny. I sometimes moonlight in a van with a cousin of mine. We pick up different packages and we go around delivering some stuff.
One of the clients we had sells coffee through the internet. He has a Facebook page and delivers it worldwide.
When we picked up the packages, he was not even there, his son gave us all the packages. It’s definitely an attractive market.
That’s awesome that you know someone with a successful coffee business. With social media, and the internet, anyone in any country can start a global business. It’s actually quite exciting.
In these difficult times of COVID, I think the coffee business is the best idea. Thank you for sharing it. I love the idea as everyone enjoys coffee and I can sell it while sitting home. I love drinking coffee as it helps me to focus on my work. So, I believe some other people must love the coffee the same way I do. Definitely, there is no bad reason for putting a smile on someone’s face. I liked the point where you discussed the great margins of coffee. It really helped me figure out the markup percentage. Lastly, I totally agree that coffee is considered a high-demand product, it would help earn extra cash. I was thinking about starting a business, and I guess the coffee business it is!!
You can almost never go wrong with a coffee business. The reasons you said in your comment hit the nail on the head. High demand, good markups, and the fact that people can’t go without their daily cup of coffee makes it a great niche.
Starting a coffee business is a neat idea that has not crossed my mind before this article. Creating a unique brand and business from home is a great possibility that everyone can achieve. The top reason in my opinion is the demand and markup that the industry already has. Almost everyone enjoys a cup of coffee and supporting a small business brand. In today’s world flexibility is very important when it comes to creating a business or working. A coffee shop business sounds like a great idea to pursue for anyone looking to start their own business even without a large investment.
Yes, working from home with your own coffee business is the way to go, in my opinion, because of the low overhead. Most traditional coffee businesses that require and office space and employees require a HUGE initial and ongoing investment most people don’t want, and can’t afford.
I like the idea of starting your own coffee business like this through a direct sales company. I feel like the risks are quite a bit less than if you were to go into a brick and mortar business. The fact you can do all of this from home is tremendous for a person like myself, who is a single Mother of 4. Being able to work this business around our busy schedules would be amazing. Also, that this is a world wide opportunity, vs just people in the city you open a shop, and the people passing through. This would definitely be something to look further into.
Thanks for the comment. Yes, starting your own online coffee business, especially with MLM, is substantially less, plus it has all the upside potential. Starting a regular brick and mortar coffee shop is very expensive. Plus, you will work an incredible amount of hours and there is no promise your business will succeed. With MLM, you have all the upside potential without the risks.