Small business startup! Any advice appreciated!

[R3alJim Shady]

Hey vape friends,

I've decided to take the (small) leap and start a coffee roasting business.

I got an insanely good price on a commercial grinder, so I decided I can start this side business with minimal investment. I've created a Facebook page which I'll share with my family and a select group of close friends to do a test run.
My plan is to offer a limited amount of a single origin every month and customers can specify roast level, amount, and ground or whole bean before the order cutoff date or until all the product is accounted for. I also want to offer local delivery in order to avoid postage fees.

I've commissioned my brother to build me a 5 lb. capacity roaster with the intention of expanding eventually (he's amazingly mechanically inclined). My father is in graphic design so he'll design a logo for the bags and my mother is an accountant so she can help me with the books. I'm literally roasting out of my garage to start so there is absolutely no overhead.

Any small business owners care to comment on my business model/plan? Any advice would be much appreciated since this is my first and only venture. Thank you!



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[hashtagvapemail]

My advice would be to have an exit strategy from the beginning. I know this sounds terribly negative, but really think about this, what are the conditions that would lead you to abandon the business, and how would that look (what would you do, how would you liquidate, etc.).

You need to be very clear on what your exit conditions from the business are. As a business owner you will believe in it, far beyond when others do, and you will spend so much time working on it that you won't ever want to let go. This is exactly why many times opening a small business will bankrupt a family. Because they love it and they don't want to give up. They don't have a clear 'quit now' signal and they go down with the ship, and there is no honor in that (I'll say from experience!)

You need to think about this beforehand and have specific criteria when you agree it's time to shut the doors to avoid the business taking your family down with it. The plan for what to do if you decide to close is not so important, just have some high level idea what that will look like.

The conditions that lead to that decision, which will change over time, are incredibly important and should not be vague. You should always be able to point to a list of conditions and say, "If these happen, I'm shutting it down".

I would also advise that you need to do full accounting from the beginning, it's very easy to lose financial control of a business, and realize as you go that the business will reach the point where your ability to earn will not bring in enough cash to prop it up. Business level bills require business level income which is generally much higher than what most small business owners have. You can't pay business level bills with normal people level money.

If you have those firmly in mind, figure out how much you're willing to just dump into it with no return, double check that it's enough in your opinion, and if it is go for it! It's really hard, but it's really rewarding and you learn a whole lot.

Just make sure that it doesn't ever become something that threatens your family's ability to take care of its own financial needs, or damage your relationships. That second one can be very difficult due to the level of emotion involved and engagement of the people.

 

[UncleRJ]

When I first read this, my first thought was how awesome it would be to live downwind from you so I could smell your production process.

Then I got to thinking

Since you are pretty scaled down at the moment, would it be at all possible to put your equipment on some kind of trailer and go and do your thing at flea-markets and other outdoor events?

Let the smell bring them to you where they could see you roast and grind close up and personal as well as purchase your product?

 

[R3alJim Shady]

My advice would be to have an exit strategy from the beginning. I know this sounds terribly negative, but really think about this, what are the conditions that would lead you to abandon the business, and how would that look (what would you do, how would you liquidate, etc.).

You need to be very clear on what your exit conditions from the business are. As a business owner you will believe in it, far beyond when others do, and you will spend so much time working on it that you won't ever want to let go. This is exactly why many times opening a small business will bankrupt a family. Because they love it and they don't want to give up. They don't have a clear 'quit now' signal and they go down with the ship, and there is no honor in that (I'll say from experience!)

You need to think about this beforehand and have specific criteria when you agree it's time to shut the doors to avoid the business taking your family down with it. The plan for what to do if you decide to close is not so important, just have some high level idea what that will look like.

The conditions that lead to that decision, which will change over time, are incredibly important and should not be vague. You should always be able to point to a list of conditions and say, "If these happen, I'm shutting it down".

I would also advise that you need to do full accounting from the beginning, it's very easy to lose financial control of a business, and realize as you go that the business will reach the point where your ability to earn will not bring in enough cash to prop it up. Business level bills require business level income which is generally much higher than what most small business owners have. You can't pay business level bills with normal people level money.

If you have those firmly in mind, figure out how much you're willing to just dump into it with no return, double check that it's enough in your opinion, and if it is go for it! It's really hard, but it's really rewarding and you learn a whole lot.

Just make sure that it doesn't ever become something that threatens your family's ability to take care of its own financial needs, or damage your relationships. That second one can be very difficult due to the level of emotion involved and engagement of the people.

Great advice here! Thank you.

I forgot to mention this is a side gig for me. Until I feel the business will support me and my family I won't be quitting my full time job. I'm keeping it very small for now so I won't get in over my head.

If it ever becomes large enough to where I can make coffee roasting my full time job I think your advice will apply. Thank you for taking the time!



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[R3alJim Shady]

When I first read this, my first thought was how awesome it would be to live downwind from you so I could smell your production process.

Then I got to thinking

Since you are pretty scaled down at the moment, would it be at all possible to put your equipment on some kind of trailer and go and do your thing at flea-markets and other outdoor events?

Let the smell bring them to you where they could see you roast and grind close up and personal as well as purchase your product?

This is an idea with which I've toyed quite a bit! The way I roast now I can only produce one pound every 15-20 minutes and I have to hand crank to stir the beans as they roast so that may be out for now.

Once I have a roaster with a larger capacity the whole flea market idea will be an excellent one. I plan to get a roaster that uses propane, so the machine would absolutely be portable!

Good idea, Uncle!



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