In your industry analysis, you need to provide an overview of the coffee business.
While this may seem unnecessary, it serves multiple purposes.
First, researching the coffee shop 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. For example, if there was a trend towards decaffeinated coffee consumption, it would be helpful to ensure your plan calls for plenty of decaffeinated options.
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 shop business plan:
- How big is the coffee shop business (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 house. You can extrapolate such as figure by assessing the size of the market in the entire country and then applying that figure to your local population.