Office Space Expenses

$0

$7,000

Website Costs

$213

$6,715

Business Formation Fees

$550

$2,500

Equipment & Supply Expenses

$63

$200

Retail Business Expenses

$1,250

$10,450

Inventory Expenses

$350

$14,750

Software Expenses

$150

$2,794

Advertising & Marketing Costs

$75

$5,286

Total Startup Costs

$2,651

$49,695

Keurig

keurig.com

37,586

Coffee Roaster

bluebottlecoffee.com

53,076

Fellow

fellowproducts.com

88,865

Dutch Bros

dutchbros.com

125,733

Verve Coffee Roasters

vervecoffee.com

144,382

BLK & Bold Specialty Beverages

blkandbold.com

150,112

Sweet Maria's Home Coffee Roasting

sweetmarias.com

152,654

Sprudge

sprudge.com

154,704

Coffee Crafters

coffeecrafters.com

243,960

Seven Coffee Roasters

sevencoffeeroasters.com

286,344

Ceremony Coffee Roasters: Order Coffee, Find Cafés, Shop Gear, Learn

ceremonycoffee.com

293,013

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.

Rewarding work

Starting a coffee roasting business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.

Scalable

With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.

Meaningful business connections

You never know who you will meet as a coffee roasting 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.

High margins

The gross margins for your coffee roasting business are typically around 35%, which is considerably high and allows you to grow your business and manage costs easily.

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.

High employee turnover

In the coffee roasting 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 roasting 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.

No safety net

Typically, as a coffee roasting business, you do not receive a consistent pay-check and instead earn money based on your transactions each month. During the slow periods, you typically take away less since the job is based on commission. It's important to budget accordingly for the slow times.

High overhead expenses

With starting a coffee roasting 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.

You may need to charge sales tax

If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out this article