Business Idea

Start A Coffee Brand

About

Starting a coffee brand requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell coffee, or selling coffee online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$80B
revenue (monthly)
$2K
starting costs
$43.4K
gross margin
25%
avg product price
$2
time to build
240 months
growth
Direct sales
business model
E-Commerce
time investment
Full time

About

Starting a coffee brand requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell coffee, or selling coffee online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$80B
revenue (monthly)
$2K
starting costs
$43.4K
gross margin
25%
avg product price
$2

 

time to build
240 months
growth
Direct sales
business model
E-Commerce
time investment
Full time

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $0 $7,000
Employee & Freelancer Expenses $151 $352
Website Costs $223 $7,215
Business Formation Fees $5,600 $20,400
Equipment & Supply Expenses $66 $700
Retail Business Expenses $1,250 $11,650
Inventory Expenses $350 $14,750
Software Expenses $162 $3,094
Advertising & Marketing Costs $75 $5,286
Food Business Expenses $125 $1,000
Total Startup Costs $8,002 $71,447

Successful Businesses

Business URL Rank
Black Rifle Coffee Company blackriflecoffee.com #37,711
Bizzy coffee bizzycoffee.com #165,938
Joe's Garage Coffee joesgaragecoffee.com #179,479
Wandering Bear wanderingbearcoffee.com #263,097
Kauai Coffee kauaicoffee.com #501,526
Coffee Over Cardio® coffeeovercardio.com #552,296
STōK Cold Brew Coffee stokbrew.com #552,618
Melitta USA melitta.com #591,047
Cuvée Coffee cuveecoffee.com #712,208
Coffee & Bagel Brands coffeeandbagels.com #718,243
Lacas Coffee Company lacascoffee.com #719,746

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Meaningful business connections You never know who you will meet as a coffee brand. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
Easy to encourage "impulse buy" In the coffee brand, you have a much higher chance of encouraging your customers to buy on impulse - you can easily alter the price, placement, packaging, and promotional value to influence the decision of your buyer.
Unlimited income potential With starting a coffee brand there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.
Amazing perks and discounts Working in the coffee brand comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts.
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Longer Sales Process A coffee brand can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
Low margins The gross margins for your coffee brand are typically around 25%, which can make it more challenging to incur new expenses and maintain profitability.
High employee turnover In the coffee brand, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Taxes As a coffee brand, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
Niche Market A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.

Marketing Ideas

  • 1

    Direct Sales

    Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

    For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

  • 3

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.