Is it a good idea to start a new coffee roasting business?
Q : `The market seems to be saturated with available products, but, that is all we know how to do well, How do I find out whether there is still space in the market for a new coffee brand?A : Simple - test, test, test
If I want to start a home business of roasting coffee and selling it online, what home roaster should I buy?
Q : I've done it with a popcorn popper. A restaurant owner recently expressed an interest in purchasing some so I was thinking of upgrading my hardware.
A : This is tricky, since many states do not allow "home roasting" equipment as they put out chemicals. I own a coffee roasting business so I can tell you this with a high level of expertise.
You need to check with both your state and county laws before you buy anything. It would really suck for you to pay out a couple of grand and then get a ticket for air pollution! Also, you may have to pay sales tax on internet sales depending on what state you are in. You also need a business licence to sell anything.
If you get the go ahead, then get a small drum roaster, it really tastes so much better than air roasters (you may as well use a popcorn popper!) The drum roasters are around $1,000.00. We recommend the Euroroast. But there are a lot out there. Don't go with cheap ones, as they will fry after several batches. Home roasters will only roast about 8 oz at a time. It is pain, and very, very messy. The clean up for any roaster is about 30 minutes after each batch (due to the sticky chaff). If you don't clean it out, you will get a fire (which your homeowners insurance will not cover, and if you rent, you risk a law suite if you don't have written permission from the owner to use a home roaster).
Also keep in mind you will need to source green beans (you will need to buy a full bag weighing about 130 lbs at no less than $2.00 per pound).
If you still really want to roast, but the information I have provided you with seems like a headache (which it is), then I HIGHLY recommend that you find a local roaster (they are in almost every state) and have them toll roast for you for a small fee. You don't have to worry about the nasty roasting operation, and you can still roast the coffee to your specifications. However, you still have to have a small business licence.
I don't personally recommend that anyone go into the coffee business right now. The market is fully saturated on-line. You are better off finding a coffee you love (by requesting samples around $1.00 each) and purchasing it.
Are there any grants for coffee roasting business?
Q :
A : It is hard to find grants to start a business. Unlike the myths that some perpetuate, federal government and even private foundations hardly give grant money for a for-profit business.
Nonetheless, you can go to the Catalog of Federal Domestic Assistance (CFDA) http://www.cfda.gov and Grants.gov http://www.grants.gov - these are two sites created by the federal government to provide transparency and information on grants. Browse through the listings and see if you can find any grant that would support a for-profit venture.
Even if you buy books on "how to get grants" or list that supposedly has information on grants -- all of them are mere rehash of what CFDA has, albeit packaged differently. But still the info is the same - hardly any grants for starting a for profit business.
Even SBA does NOT give out grants. From the SBA website http://www.sba.gov/expanding/grants.html
"The U.S. Small Business Administration does not offer grants to start or expand small businesses, although it does offer a wide variety of loan programs. (See http://www.sba.gov/financing for more information) While SBA does offer some grant programs, these are generally designed to expand and enhance organizations that provide small business management, technical, or financial assistance. These grants generally support non-profit organizations, intermediary lending institutions, and state and local governments."
Most of the federal grants are given to specific target groups with specific requirements (e.g. minority business owners involved in transportation related contracts emanating from DOT - Grant#20.905 Disadvantaged Business Enterprises Short Term Lending Program
Grants are also often given to non profit groups or organizations involved in training or other similar activities (grant 59.043 Women's Business Ownership Assistance that are given to those who will create women's business center that will train women entrepreneurs
For private grants, you may want to check the Foundation Center's Foundation Grants for Individuals Online. It's a subscription based website ($9.95 per month) but their opening blurb only says that the database is ideal for "students, artists, academic researchers, libraries and financial aid offices." Entrepreneurs are apparently not one of them, so I take it they also don't have listings of private foundations who give grants to would-be entrepreneurs.
Is it a good idea to start a new coffee roasting business? » coffee roasting business » coffee roasting business
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