Read an article today from a well respected authority suggesting "hot businesses to start today"…. One of those "hot" ideas….."start a coffee shop". A what?!?! You’ve got to be kidding! With Starbucks and 10 other major brands on every corner in every community, how can that be a hot business idea?
Starbucks has taken a hit lately for overwhelming the mom and pop shops and making it impossible to compete. However, Starbucks should be applauded by coffee shop owners and those dreaming of starting one. Why? Well…Starbucks created the premium coffee craze and proved the model that a business that sells coffee, and essentially only coffee, can succeed. Starbucks created the coffee house culture. They got people worldwide to pay nearly $2.00 for a cup of coffee when just before people paid a quarter.
So, what does the success and proliferation of a major player in the space mean to us entrepreneurs like us? And why would anyone in their right mind suggest that starting a coffee house today is a "hot" business idea today??
The answer…..When a major player comes in and literally creates a market with a formula that is proven to work…they also open up the market for others to come in and offer specialty, niche, or themed offerings that a mature marketplace might be interested in trying as an alternative. And therein lies the opportunity.
So just when you think a market is "owned" by a few major players and there is no room for anybody else, think about ways to strongly appeal to a well-defined and targeted segment of the overall market with specialty offerings.
As a sidebar….anybody interested in starting a StartupNation branded coffee house? Makes sense to us. In fact, it was part of the original StartupNation business plan and we have trademarks covering the brand for this purpose dating back several years now. The time could be right to put this in motion. It would be a place for entrepreneurs and small business owners within communities to get their day started, share ideas, support each other, do business together, and get that morning cup of joe to get the day started right.
Let’s Start It Up!