TCMBA #15 - Coffee Business Model Innovation
One of my favorite topics came up in our very first Community call this week:
Business Models!
I think that choosing a business model is one of the most creative things you can do.
We tend to think about this from the perspective of “how it’s been done,” but we can (and should) divert from the well-trodden path!
Café + Roastery + Wholesale + E-commerce ≠ Success
Not necessarily, anyway.
There are now myriad ways to slice and dice your business, pulling from what you’re passionate about and what impact you want to have.
Could you have a Café and E-commerce site only? Of course!
—> You could outsource your roasting and dig into becoming a lifestyle brand. Sell the vibes of your gear, coffee, and in-café experience.
Could you Import and have E-commerce? Definitely!
—> Maybe you source roasted coffee from origin and turn it into a ready-to-drink (RTD) product that you sell exclusively online.
And it’s never too late to pivot!
I’ve said it before and I’ll say it again.
"This is how we’ve always done it” is one of the most dangerous phrases in business!
Whether you’re starting on a new venture or retooling your business model, here’s what you need to consider:
What’s the size of the opportunity?
What’s the cost of the operation?
Break down the revenue you think is achievable based on market data or your own business data.
Then, document the entire business process form beginning to end. Each activity in that process should have a cost associated with it (both upstart cost and ongoing cost).
Is there a huge gap between the opportunity and the operation?
That’s good if it’s positive.
That’s not so good if it’s negative.
But don’t lose hope! There could be ways to optimize or pivot again to make the idea work.
Again, there’s an opportunity for more creativity.
Need more help? You can give the Community a try or check out my 1:1 coaching packages (more on that below).
When you’re ready for help, here’s how we can work together:
Follow me on LinkedIn for more free content.
Access weekly group coaching in The Coffee MBA Community.
Need deeper support? Work with me 1:1.
Want a speaker for your event? Reach out to discuss.
