Office Space Expenses

$0

$7,000

Employee & Freelancer Expenses

$151

$352

Website Costs

$223

$7,215

Business Formation Fees

$600

$4,700

Equipment & Supply Expenses

$63

$200

Retail Business Expenses

$1,250

$11,650

Inventory Expenses

$350

$14,750

Advertising & Marketing Costs

$75

$4,786

Food Business Expenses

$125

$1,000

Software Expenses

$150

$2,420

Total Startup Costs

$2,987

$54,073

Nespresso

nespresso.com

3,369

Coffee Machines, Capsules & Accessories

buynespresso.com

69,757

Whole Latte Love

wholelattelove.com

72,170

Espresso Machines

seattlecoffeegear.com

74,482

CoffeeBean

coffeebean.com

117,148

revital U

revitalu.com

173,849

Door County Coffee & Tea Co.

doorcountycoffee.com

204,455

Cameron’s Coffee

cameronscoffee.com

301,901

Bid on Equipment

bid-on-equipment.com

418,881

EverGreen Capsules

evergreen-capsules.com

462,662

SF Bay Coffee

sfbaycoffee.com

468,245

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 capsule business. 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 capsule business, 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.

Control of workload

With starting a coffee capsule business, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.

Unlimited income potential

With starting a coffee capsule business 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.

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 capsule business 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 capsule business are typically around 25%, which can make it more challenging to incur new expenses and maintain profitability.

High employee turnover

In the coffee capsule business, 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 capsule business, 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.

High overhead expenses

With starting a coffee capsule business, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.