How to Start a Cafe Business

India is most popularly known for its tea and coffee. The popularity of the cafe business is increasing even more because of some magic in coffee’s taste. This magic is nothing but caffeine which helps us in relaxing our stress.

Every year its consumption is increased by 10% around the globe. Nobody wants to be in stress for a more prolonged period, so to deal with they are drinking coffee.

As the number of people who drink coffee is increasing, in the same way, its business is also becoming very profitable.

Today with the help of this article we will tell you about How to Start a Cafe Business and How to Start Selling Coffee and Tea.

In this article, we will also tell you about, How can you select the location for this business, How can you get a license to do this business, How can you take a loan for this business, How can you market this business, etc.

So let’s begin the process of understanding How To Start a Cafe Business…

Table Of Contents

To start a cafe business, you will first need a place from where you can start your business. Keep in mind that, the place should not be far from the city or must not belong to a place where there is already soo many Cafes are already available.

The next important thing is the ingredients to make coffee. You can buy coffee items from any grocery/wholesale store nearby you. You will have to buy coffee packets, sugar, ginger, Cardamom, and all these things from the grocery store.

The next important thing you will have to arrange is milk for your business. For this, you will have to ask any dairy/ milk seller around your cafe. so that he can easily deliver your milk on time. After this, you will need some goods to make coffee for your business.

You will need a coffee maker for this. If you want, you can buy it directly from the market or You can also buy this machine online. For buying this machine online you can visit a few official websites such as IndiaMart, eBay, Amazon, Croma, etc. to buy it online.

After buying the machine you can easily start your business. You can make coffee for the people with this machine and make a batch to earn a profit. The most important thing to do in every business is to choose an easily accessible place.

If you select the right location for your business, then there is a lot of possibility of executing your business towards touching the sky.

How to Select a Location for Cafe Business

To start a cafe business, you have to decide on a place where there is a huge crowd of people or more people keep coming and going. You can see places like malls, places like students hubs, nearby business parks, within the city, nearby traffic signals, etc. for this.

People come to malls and roam a lot and get thirsty so that they can get benefit from it. you can also decide the place around a big office company, where people visit these places a lot or you can open your cafe in any market also, where there are a lot of people coming and going.

The more people will notice your business the more they will stay. You can open your shop at any one of the above-mentioned places. So that you will never need to close your business and this will never gonna disappoint you.

Now moving towards another important aspect of starting a business, which includes license, registration, and approvals so that nobody can create any type of conflict in the future.

Now, we’ll tell you which registrations and licenses are important for starting your cafe business.

Registration & License for Cafe Business

For starting your cafe business below given licenses and registrations are a must. When it comes to business you should always have these approved licenses. Below given are the required registration & license details for your cafe business:

Current Account ( For Business Transactions).
Shop License (Gumasta License).
Msme Registration
Udyog Aadhar
FSSAI License

If you want to run your cafe without any police hassle or any legal action, then you need to get a license for this.

How to Open a Current Account for Cafe Business

To receive payment under your Cafe business name you must have a current account under your business name. This account will help you to receive the payment directly into your current bank account. For getting a current account for your Cafe Business you will need a shop license.

For issuing a shop license you will need your identity proof such as (An Aadhaar Card, Voter Id Card, Driving License, Etc.) and a Pan Card. If you have any of these documents available, then you can easily apply for your business current account in any nearby bank.

These are a few reliable global banks for opening business current accounts:

SBI Bank
ICICI Bank
HDFC Bank
AXIS BANK
BOI Bank

How to Get an MSME Certificate for Coffee Business

To register your Coffee business under govt. Policies and their scheme, you can register under MSME facilities. MSME stands for Micro, small medium, and enterprises. It is a type of enterprise managing government that helps you to get govt. Loan schemes and benefits etc.

To get your own MSME certificate for your coffee business you can go to the Website and apply for an MSME certificate.

How to Get FSSAI License for Cafe Business

To start any type of edible business you must have a fssai license. FSSAI License Stands for the Food safety and standards authority of India. This license provides you the approval for the good of edible products sold by you.

FSSAI License is not required for businesses that have an annual turnover of fewer than 12 lakhs or if their production capacity falls below 100 kgs per month. Such businesses only require an FSSAI Registration.

Vending edible goods without this license is a punishable offense. For starting your cafe business, this license is the first document that must be approved.

To get your cafe business FSSAI License you can simply log on to the Website and start selling approved good quality coffee and tea.

How to Start Milk Selling Business, Own Dairy- License, Loan, Profit

How to Get a Udyog Aadhaar Certificate for Cafe Business

To get a loan for your Cafe business from govt. You should first, register your business as udyog aadhaar certified. It will help you apply easily to any type of govt- loan scheme and get subsidies in the form of bank loans.

To get a udyog aadhaar certificate for your cafe business you log on to the Website and apply for the Udyog Aadhaar Certificate.

How to Get a Shop License for Cafe Business

To get a shop license for your cafe business you have to first select a location for selling coffee and tea. If you’re renting any market place then, you have to get a rent agreement where your cafe name should be mentioned.

Once you get that place, you have to get a banner for your Cafe that has your business name and address on it.

A copy of your rental agreement and a photo of your business with the banner is enough for getting a shop license.

To get a Gumasta license, you have to first go to the official website of your state or you can simply visit the nearby office.
After that, you have to register your business there.
After a few days of registering, your Cafe Business Gumasta license comes to your house.

After reading this, you can apply to get a shop license for your Cafe business. Now, If you do not have money to start this business then you can take a loan for your business.

Loan Against Cafe Business

In the Business of Selling coffee and tea and starting from your cafe, the investment cost is medium, you just have to buy a coffee machine that needs maintenance and care for better production of coffee and you can start your business.

The price of a coffee machine costs around Rs. 999/- to Rs. 1,00,000/- [$19 – $1599].

To get a Cafe business loan, you can apply in any type of fin serve service or bank. Many countries even accept Gold Loans on behalf of reference.

Before starting your Cafe business, you will have to give the necessary information in your loan file, Such as your needs and how much money you require, the time of repayment, etc. Then you have to deposit your file in the department.

As soon as your loan is passed, all the money will be deposited into your bank account.

How to Advertise Cafe Business

Marketing of a business is the most important thing to do in every business. If you market your business properly, then you get a lot of profit from it. If you want to advertise your cafe business, you have two ways to do this:

First of all, you have to contact your nearby shopkeepers and tell them that you have started a Cafe nearby. If they need they can contact you at your number.
You can also provide them with a sample of free coffee. You have to reach all the nearby shopkeepers and contact them.

Once you get in touch with the shopkeepers, they will buy Coffee from your cafe.

Apart from this, You can list yourself on a website like Indiamart, Alibaba, eBay, etc. to start your business online.
After that people will come to your cafe by themselves, to buy coffee from you.

You can also create your Business Facebook page to start online marketing. Where you can post the best photos of your cafe and put them on your page. You can also market your business on Instagram.

You can get a lot of benefits in marketing from Instagram. Because more than half of the world’s population is using Instagram. For this, you have to first create an Instagram account for your business.

After this, you can market your business by sharing your own cafe’s photo.

To do offline marketing, you can get some posters and banners related to your business. So that the people of your local can know that you started the Cafe business.

Now we know how much money you have to invest in your business so that your business starts well. So let’s understand Investment Required to Start Cafe Business.

Minimum Investment to Start Cafe Business

In the cafe, firstly you will spend very little, to get the necessary items for the shop such as a coffee maker machine or coffee-making equipment which you will easily get from the market in around Rs. 5,000/- to 70,000/- [$699 to $899].

After this, you will need a cup to give coffee to the people. Which you get very easily for around Rs. 200/- to Rs. 600/- [$5 to $20].

Then you will need some decoration items for your cafe shop. So that people can get attracted by seeing your cafe shop from a distance. These items will cost you around Rs. 199/- to Rs. 19,999/- [$10 to $99].

After this, you will need chairs and tables for the people in your shop. Which can cost you around Rs. 5,999/- to Rs. 15,999/- [$70 – $200].

You will need investment, in the beginning, to open a good and professional shop, after that you will not have any investment in it.

So it will cost you Rs. 1,00,000/- to Rs. 1,50,000/- [$599 – $1599] to start this business. After investing this much money, your business will start running very well.

Approximate Profit in Cafe Business

If you sell at least 200-300 cups of coffee in a day and each cup of coffee costs Rs. 10 [$0.12], then you will be able to generate at least Rs.2000/- to Rs. 3,000/- [$25 to $40] per day.

With which you can earn at least Rs. 60,000/- to Rs. 90,000/- [$759 – $1,199] a month. You can earn so much money in this business very easily.

If you do marketing your business well, then you start getting lakhs of rupees a month in it. You can earn lifetime benefits in this business.

Hoping, you have completely read the article about How to Start Cafe Business.

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