Newbie looking for some guidance

[coffeevt]

Hello,

We are in the process of a mid-career change and dreaming of starting a small-batch roasting company out of our home in Vermont. I am having trouble finding some trusted sources on reasonable margins to expect once a business such as this is up and running? We would be roasting for wholesale to area stores, as well as retail to online customers and subscriptions. If any of you have any real-world data or insights that you would be willing to share, we would really appreciate it. We fully understand that many variables will affect the margins, but rough estimates will be helpful for us at this stage. Thanks in advance.

 

[NabeCoffee]

My recommendation is to look into the price of raw beans, and go to a wholesale website and search as though you are a large company looking to buy wholesale. Deduct all your factors of making them and that will give you your margins. Good luck!

 

[Musicphan]

Hello,

We are in the process of a mid-career change and dreaming of starting a small-batch roasting company out of our home in Vermont. I am having trouble finding some trusted sources on reasonable margins to expect once a business such as this is up and running? We would be roasting for wholesale to area stores, as well as retail to online customers and subscriptions. If any of you have any real-world data or insights that you would be willing to share, we would really appreciate it. We fully understand that many variables will affect the margins, but rough estimates will be helpful for us at this stage. Thanks in advance.

Just a forewarning... the market is pretty saturated and super tough. To wholesale, most states will not allow you to do under cottage laws. So most likely, this means you are renting a wholesale space to operate. Look on Loopnet.com for rates in your area (typically quoted in price per sq foot per year). Regarding margins, it depends on the type of coffee you are offering... rot gut grocery store at $8 or specialty at $25 a bag. Your main two costs in coffee are the coffee and bag - the cost can be found online. Honestly, I don't give out #'s because there are too many variables and if you serious about starting a business this is scratching the surface of things you will need to know.

 

[TerkumOsber]

Don't worry, we've all been newbies at some point. It's great that you're looking for guidance. When it comes to navigating this field, I'd say start by exploring what interests you. The demand is projected to grow 10% in the next 10 years , so it's a promising area to get into. Maybe try out some online courses or join a local workshop to get a feel for it. Networking is also key, so don't be shy about reaching out to folks already in the industry.Another thing that helped me when I was starting was diving into forums and online communities like this one. You can learn a lot from other people's experiences and advice. And don't forget to stay curious and ask questions—it's the best way to learn and grow in any field.And one last thing—don't get discouraged if things seem overwhelming at first. Everyone progresses at their own pace, and every little step forward counts. Just take it one day at a time, and soon enough, you'll feel more confident navigating this exciting journey.

 

[Coffee_Mad_Man]

Hello,

We are in the process of a mid-career change and dreaming of starting a small-batch roasting company out of our home in Vermont. I am having trouble finding some trusted sources on reasonable margins to expect once a business such as this is up and running? We would be roasting for wholesale to area stores, as well as retail to online customers and subscriptions. If any of you have any real-world data or insights that you would be willing to share, we would really appreciate it. We fully understand that many variables will affect the margins, but rough estimates will be helpful for us at this stage. Thanks in advance.

Do you already have a network of potential to guaranteed customers? From a lot of the posts on these forums, this is the number one thing I've seen repeated from those who have started a coffee business, without a reasonably guaranteed customer base it's difficult to succeed in the space.

There are some interesting tips in these threads too:

https://www.coffeeforums.com/threads/running-a-successful-coffee-shop.18275/ (More around the thinking to be successful than setting up a coffee shop advice from the OP: DanielLopez)

https://www.coffeeforums.com/threads/new-in-the-coffee-shop-business.23800/ (Noorjahan's post is helpful, I've left a post with untested tips which may still be useful)

I realise you posted this last year so curious how things are going @coffeevt.

All the best
CMM