Some Obstacles That Could Hinder Starting A Cafe Business

Despite of the well-established market demand

, starting a local cafe business is a more difficult that it seems. Many limiting factors and business obstacles can prevent a would-be entrepreneur in starting a cafe business. The primary limiting factor is of course the capital requirement, which may vary depending on the location, the building, the size of operation and the taxes involved. The size of operation includes the number of employees, the types of cafe equipment and the number of branches.

For small-scale entrepreneurs, the best option is to start a single local cafe branch. This type of small operation can include just a handful of employees such as cooks and waiters/waitresses. The owner can double as the manager and cashier of the cafe. In this manner, the business will be more manageable and the owner can have the direct or hands-on control of the day-to-day operation of the cafe. For someone who is new to this type of business, many things can be learned through hands-on micro-management of a start-up cafe business.

By directly managing a start-up cafe business, the owner will be able to see details in the business operation that are otherwise inaccessible. Decision-making can be more responsive and fast because the owner always has the last say as compared to managers who are just employees and do not have the same authority as the owners. The cost can also be minimized in this manner because an owner-manager can temporarily afford to sacrifice his/her own monetary compensation especially during hard times just to allow the business to survive and while the business is growing.

Another significant obstacle in starting a cafe business is competition. Regardless of the type and scale of business, competition will always be present. No matter how initially unique a business might be, competition will eventually develop. Competition comes from other business establishments nearby that cater to the same or similar customers. Aside from other cafes, restaurants and fast food chains can also be considered as competitions simply because they take slices from the market pie.

Many strategies can be implemented to make a start-up cafe business more competitive. These could include a intensive advertising, establishing unique identity, better customer service and high quality beverages and food. Lower prices can also provide some competitive edge but these should not be over-emphasized. Of course, prices can be adjusted within reasonable ranges without compromising the profitability of the cafe business.

Whether a cafe business will start small or big, competitiveness should always be the main focus. It is the main factor that will not only allow a business to survive but to grow and thrive.

by: Johnathon F Black

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