Raison D'etre

Raison d'etre is a french phrase which literally means "reason to be", or what do you want to be.
This is perhaps the most important question you can answer when deciding to start a coffee business. There are many different answers and motivations that all impact your decision making once your business is up and running. Admittedly I get focussed on financials, but I also run a business that roasts and serves Fair Trade Organic coffee, composts everything ourselves, sources our power from renewable resources, donates dollars and hours to many local charities and causes, and attempts to be responsible members of our community. I want to list some different motivations along with how that choice will impact your business going forward.

1. Passion: this term is perhaps the most overused word in coffee, which I typically reserve for teenaged girls dreaming of werewolves and vampires battling for their affection. For me passion implies a short attention span and a short career in coffee. Someone who describes themselves as passionate is likely looking to seek out the newest trends and adopt them quickly. This strategy will by necessity incur much higher training and capital costs and unless that is replaced with much higher sales, a lower profit margin. Try using LOVE instead of Passion. See how it fits? Love remains even when your business is a little saggy, needs improvement and even annoying. (Just ask a married person) You never give up on a love...ever! A company founded on a love of coffee in my mind is much more likely to endure the vagaries of the market, and will likely be seen by the owner as a long term life's work and not a passionate whim.

2. Sustainable: this term may be the second most overused word in coffee. It is usually applied to companies that are attempting to benefit community, farmers, employees, the environment and any other number of beneficiaries you can think of. As I mentioned in my prelude to this post, my company would probably fall quite easily into this category but with an important caveat...you can't be sustainable if your business is not financially sustainable. YOU CAN'T BE SUSTAINABLE IF YOU'RE NOT FINANCIALLY SUSTAINABLE! You can't help anyone if you're business is insolvent in a year.

3. Owning a coffee shop looks like fun!: Everyone who visits a cafe, (especially a great one) thinks they would love to own one just like it. There is something very appealing in picturing yourself in a pleasing, bustling environment, surrounded by intellectuals, students, film makers and musicians. The reality is that you don't get to choose your customers (my customers happen to fit the examples, good for me) they choose you. Cultivating a cafe culture requires countless hours of work, which is interrupted by plugged toilets, stock shortages, employee absenteeism, and lack lustre sales. If you think owning a coffee shop looks like fun and you have a passion for coffee, beware. Instead you'd be better off Loving coffee and thinking owning a coffee shop looks like a lot of work.

4. I want to teach people about great coffee: There are some incredibly knowledgeable folks out there who have a ridiculous amount of information bidding it's time inside their cranium, looking for an excuse to make an appearance. Giving, well meaning, awesome teachers, terrible business people. Unless your business IS teaching people about coffee in a classroom/lab area, this is a bad reason to start a coffee business. Here's a little anecdote to show you the pitfalls of taking on the role of single handedly changing your local market. Several years ago my company was supplying a local health food store with organic coffee. We tried to introduce CO2 Organic Decaf because I thought it tasted better than Swiss Water. The owner (not the brightest bulb) couldn't get it through his head that CO2 wasn't a chemical, but a gas that we expired about once every 10 seconds. Every time we delivered the CO2 Decaf, I would have the same conversation and he'd be grumpy. Then I came up with the perfect solution...I started selling him the Swiss Water that I thought didn't taste as good, and he was happy. There is an old saying in coffee that goes like this: Q How should I drink my coffee? A The way you like it. Guiding customers to make the better choice is a great strategy, telling them how to drink it is a terrible one.

5. I'm a great barista and I want to run my own shop: I happen to think all committed baristas should own their own shops. As a barista, you should be fully acquainted with the less than glamourous side of espresso, if not the paperwork side. You are one of the main reasons I'm taking the time to write this blog. While your skills behind the cash register and espresso machine may be impeccable, the money is made in the back office. Leverage your skills by attracting other quality baristas, and step back to learn the business side of cafes. Know your break even...cold. You should be able to recite your daily, weekly and monthly break evens, and massage your costs to yield desired results once your are familiar with your expected revenues. For goodness sake, take time to read my pointers on negotiating a lease, and managing your capital costs before you even consider writing a business plan. Remember Love, hard work, good intentions, community, education and skills all factor into a successful start up cafe.