A coffee roasting business roasts green coffee beans to various roast levels. Recent market research has shown that the global coffee roaster market is increasing at a CAGR of 4.24% for the next six years.
Therefore, launching your coffee roasting business in 2022 can be profitable. Coffee roasters use large machinery, including a roaster and grinder, to turn the beans into a finished product. To start a coffee roasting business, research the market and find who else is roasting in your target area.
Then, find out where coffee sellers in your area are getting their supplies. You also need to know how many coffee shops are in your area.
Then, decide if you want to sell the coffee to individuals or to a coffee shop. Alternatively, you can sell the coffee in your coffee shop or deliver it to elite lodging establishments and restaurants.
Starting a coffee roasting business requires a great deal of effort, dedication, and most importantly passion.
If you're interested in how to sell coffee roasting , or selling coffee roasting online, you can use this page as a guide for everything you'll need to know.
Want to learn more? You can check out our full guide on how to start a coffee roasting business ➜
|Min Startup Costs||Max Startup Costs|
|Office Space Expenses||$0||$7,000|
|Business Formation Fees||$550||$2,500|
|Equipment & Supply Expenses||$63||$200|
|Retail Business Expenses||$1,250||$10,450|
|Advertising & Marketing Costs||$75||$5,286|
|Total Startup Costs||$2,651||$49,695|
|BLK & Bold Specialty Beverages||blkandbold.com||#150,112|
|Sweet Maria's Home Coffee Roasting||sweetmarias.com||#152,654|
|Seven Coffee Roasters||sevencoffeeroasters.com||#286,344|
|Ceremony Coffee Roasters: Order Coffee, Find Cafés, Shop Gear, Learn||ceremonycoffee.com||#293,013|
|Mill City Roasters||millcityroasters.com||#358,089|
|Big Island Coffee Roasters||bigislandcoffeeroasters.com||#466,053|
|Insight Coffee Roasters||insightcoffee.com||#496,545|
|Temple Coffee Roasters||templecoffee.com||#531,096|
Pros & Cons
|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](https://www.thebalancesmb.com/do-i-need-to-collect-sales-taxes-in-my-state-398913)|
Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.
Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.
The affiliate typically gets a unique link where clicks and conversions can be tracked.
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.
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.
Hey! 👋 I'm Pat Walls, the founder of Starter Story.
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