Avoid Common Pitfalls In A Coffee Shop Business

Many business minded entrepreneurs get into the coffee shop business without being prepared to face problems that almost every business person will encounter in the coffee business. It is not unusual to see new coffee-houses close up after only a year in business. Many people try to get in the coffee industry but only a few will succeed and make real profit.

Don’t be discouraged to start your own coffee business because of probabilities, but must be aware of some common pitfalls so you can avoid costly mistakes. By knowing these pitfalls that can cause the demise of your new coffee-house, you will be able to avoid making mistakes, and prepare a back-up plan in case you are confronted with common problem in the coffee shop business.

Not knowing enough – Not knowing enough about a certain industry you plan to get into may cause you to fumble around in the process of discovering how to run a business. This uncertain type of management and guesswork can lead to lost earnings, more operational costs, and mistakes than can be detrimental to your coffee shop business. Study the coffee industry by attending seminars or courses, read informative material about the industry before jumping into a business blindly.

No direction – A business plan will force you to learn more about the coffee business and provide guidance and direction. Not making one risks that you will miss something important. You will cover all areas when you create a business plan like management, budgeting, marketing, training, where to get equipment, construction, your menu, etc. You become educated about the business you plan to invest in. A business plan is also needed in case you have to borrow capital from a bank.

Wrong location – Deciding on the wrong location can really set you back and may cause you to close up thin 2 years or less. Location is important because being out-of-the-way or hidden in an obscure corner of your town won’t get you any customers. You need a location with high foot traffic, visibility from the road and a huge market of coffee junkies. Don’t make the mistake of scrimping on rent if it means being located wisely.

Money problems – Be sure to have enough money saved up aside from the money you will use to open a coffee shop business. You will need extra money for supplies, marketing, wage, and unforeseen expenses for the next 6 months at least. Don’t make the mistake of assuming you will make a lot of money right away. Save some cash for the rainy days until you get more regular customers.

Serving bad coffee – Serving bad food can happen to many restaurants but for a coffee shop to serve bad coffee is like a death sentence. There are a number of factors that can contribute to this problem. One is buying cheap coffee beans from an unreliable supplier. Another is using cheap coffee machines that can’t brew coffee like it should. Another is getting bad quality grinders. Don’t scrimp on buying good coffee beans and heavy-duty and reputable coffee machines that can produce good tasting coffee.

No marketing – It is a big mistake to scrimp on marketing your coffee shop business. Aggressive marketing can be costly but it will also help you earn a lot of money. Without marketing you will only get a handful of customers and very little earnings. Don’t make the mistake of relying on word of mouth only because talk won’t get you the mileage you need to make real profit.

Loans for Those With Bad Credit Explained

Can You Get a Loan If You Have Bad Credit?

Has the car broken down? Does the baby need a new medicine? Has a bill suddenly come due? Any of these things can happen to anybody, and they often require an infusion of cash immediately. How can you go about getting the cash you need if you have bad credit or no credit. You will have to consider taking a loan for those with bad credit. Of course, you need to understand exactly what a loan for those with bad credit is and the best way to go about getting one.

Times Are Tight But Lending Is Good

Do not even consider going to a traditional lender such as a bank or credit union. They rarely make small cash loans, and if they do it is because the borrower has a good steady income, low debt load, and squeaky-clean credit scores. So many people have taken bad hits on their credit scores because of these financially unstable times, private lenders have stepped in to lend where the traditional lenders will not. These lenders will charge rather high interest rates and will often ask for quick repayment, but if you are armed with a little bit of knowledge, you should be able to make a good deal to get the cash you need.

Before You Go Shopping

You will need to have bona fide government, picture identification. You will need your social security card. You will need pay stubs or a bank direct deposit statement. Lenders like to see steady employment of at least three months. You will need proof of residency such as a utility bill with your current address. Lenders like to see a bank account, usually direct deposit checking. Once you have your credentials gathered, you can start shopping.

Go Shopping for Your Loan for Those with Bad Credit

You may see lenders in our local neighborhood, but your best bet would be to go online. If you punch personal loan for those with bad credit into your browser, you will find pages and pages of lenders who may be willing to lend to you. Personal loans for those with bad credit are usually available from $100 to $1500 depending on your income.

Pick and Choose

Since you have all those lenders in front of you, you should shop to find the ones with the lowest interest rates and the most comfortable repayment terms. Personal loans such as this often require repayment within 2 weeks to a month. Your lender will provide the details. Sometimes, if you cannot pay within that time frame, you can roll the debt over into the next term, but be careful. That will incur more fees and interest rates and you could soon find yourself in really bad debt.

Help Beyond Getting a Loan

If you find yourself in a situation where you need to take a personal loan more often than you like, you may want to approach a financial adviser who can help you sort out the some of the problems that you may be confronting on an all-too-often basis. Constantly taking out high interest personal loans can really suck the money out of your financial well-being. Many church, civic and governmental groups offer such services.

Go For It

If you know what you are doing, just remember that the more loans you take out and the more faithfully you repay them, your credit history is going to get better and better. This will allow you to request loans in larger amounts if you need them. If you keep your payments on time and steady, you will build your credit history to the point you may no longer need to go for small personal loans.

Facts About Personal Loans For People With Bad Credit

Until a few years ago, it was practically impossible for people with bad credit to get an unsecured personal loan. Banks, credit unions, and other traditional lenders just did not want to get involved in making small loans to folks with poor credit. Traditional lenders do not have a monopoly on the lending business any longer.

Borrowers With Bad Credit Should Shop Around

Before taking a bad credit personal loan, it would behoove a borrower to do do a little shopping for a lender, just as they would shop around for a car or a pair of shoes. Interest rates and repayment terms can vary widely from lender to lender. The internet is a good place to start the shopping process. Making applications over the internet can show the shopper bids within a few minutes from most lenders. Get at least five bids before you decide on which lender to use. Never take the first offer. With many lenders, you may be able to complete the entire process, from making an application to having the money put into your bank account, completely online.

Borrowers With Bad Credit Must Satisfy a Few Requirements

Non-traditional lenders, recognizing a large market for making loans to folks with poor credit, are coming forward to help those who need an infusion of cash to get through financial hard times or to deal with unexpected emergencies. These lenders pay little, if any, attention to the credit histories of borrowers. They do ask for certain information: Proof of identity. Proof of residency. Proof of Social Security Number. Proof of an active bank account. And, most importantly, proof of employment. These requirement can vary widely from lender to lender.

Borrowers With Bad Credit Should Not Expect Huge Loans

Non-traditional lenders, because of the risk involved, usually lend money in the $500 to $1,000 range. However, some lenders may offer as much as $15,000 under certain conditions. These lenders also must demand rather high interest rates, this is also because of the risk involved in making personal loans to people with bad credit ratings. Before you take any loan, you should carefully calculate exactly how much you need to help yourself financially and how much you can afford to pay when payments are due.

Checklist for People With Bad Credit Seeking Personal Loans

If you are facing a financial crisis or must have money to cover unexpected needs, keep these matters in mind before you make any loan applications.

1) Borrow only what you really need, scrutinize your budget to figure out exactly how much you can afford to repay and in what time frame. Do not forget to include interest rates in your calculations.

2) Use the internet to get bids and make applications. Look carefully at interest rates and repayment schedules. Never take the first offer.

3) Have your documentation in hand: Bona fide picture ID. Social Security Card. Proof of residency. Proof of active bank account. Proof of employment.

4) Understand that loan amounts cannot be too generous and that interest rates are rather high. These constraints exist because of the high risk involved for lenders.

Understanding the basics of unsecured personal loans for people with bad credit, as outlined above, will help you be a wise borrower. Just remember to keep your loan request modest and make your repayments on time. Be careful and satisfy the terms of the loan. Loans of this nature can even help boost your credit scores.