KIN NAM cafe'

KIN NAM cafe'

Sunday, December 11, 2011

WHY DO COFFEE SHOPS FAIL

WHY DO COFFEE SHOPS FAIL ?? HOW TO PREVENTED OR MINIMIZE IT part 3-B
by Russel. W

Hi….

•No or poorly business plan and management, cash flow, over cost, no or lack of advertising

All of this issue I write in one because they are connected each other. Before we start open the coffee shop, we need to make the business plan including the management system. This important because this is your blue print in run the coffee shop, you will need to plan everything from how you make people can recognize your place and become your loyal customer. What kind planning you have if your business in the situation not so many customer or if in the good situation, how you maintain it. How you grow the business is another issue you need to plan it. After you already have the main business plan, you need to plan about the management system.

Management system meaning how you manage everything like how your work system, staff (if have), stock, cost, cash flow and promotion. Without this everything will start mess up, your work become unprepared, your staff will uncontrolled and they will difficult to give the best performance. Your stock will uncontrolled and you will lost a lot of money because over stock (don’t forget mostly stock in beverage have expired time) or if you not enough stock, will cost you in run the business (the bottom line can make customer disappointed and lose them). Then if everything messes up, you can’t control the cost. Your business will become high cost and it will start make more problems. One of that your cash flow will start have problems too. The question is, how we can run the business without enough or empty cash flow. How we can do promotion or advertising if we don’t have any budget to do it. And without promotion or advertising how we can promote to make people recognize our place and become our customer. And the end he business will become more bad and the bottom line the business (coffee shop) will fail and close.

My advice, does your big homework before you open the coffee shop. Open coffee shop is very easy as long as you have the budget, the problem is how to run the business to become success or not fail. No matter how big or small the coffee shop, we need the business plant and management system if we don’t want to be failed. Remember no matter big or small coffee shop, if fail it will be same = losing money. If we not understand how to do it, ask people that expert in this line, read books or maybe follow seminar (if have). All of this is not difficult, just use your time and everybody can do it if they want to do it. My tips when you make the business plan and management systems “always use common sense, make it simple but detail and friendly use”.

Next time I will continue about reason part 4, one reason look like so simple but one of the main key to make your business can success or not fail.






Russel. W is consultant at KIN NAM café.
For more information visit http://franchisekinnam.wordpress.com/ and https://www.facebook.com/kinnamcafe or kinnamcafe@gmail.com for any question.

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