Coffee roasting millionaire, it is possible. I have discovered that you can get into the coffee roasting business very inexpensively. Americans, and pretty much everyone around the world, love their coffee. In just about every major city there is a community of people – hobbyists and businesses alike – who roast and sell coffee. Admittedly most are not millionaires, but that is only a reflection on how big they think. It is not too complicated. Basically to get started you buy raw beans, roast them, package them, and then sell the coffee either ground or as roasted beans. The entry costs to roasting and bagging coffee are fairly low and there is a mountain of information available online and elsewhere to show you how to do it. The hardest parts of this – and most every other – industry are the marketing and sales. Roasted coffee sales have a large market and you are not required to have a ton of experience, or capital, to get started. How much you grow your business is entirely up to you.
The raw beans are then roasted to just the right flavor.
Coffee Roasting Business For Sale
While researching this chapter I found one coffee roasting business for sale online for $98,000. The one-man company had gross sales of $216,000 and a net profit $66,000 the previous year. This is a 30% net profit and he was selling wholesale only. The margins could be even better for retail but he would have more costs. The sales ad stated the owner only sells wholesale to coffee houses and restaurants. He roasts one day a week and delivers two days a week with one part time employee. It looks like there is definitely room for growth. His roaster does fifty lbs. of coffee in fifteen minutes and could easily handle up to $120,000 of roasted coffee to sell a month before he needed more equipment. That is an annual gross sales limit of about $1,440,000 a year with the equipment already owned by a company selling for under $100,000.
Coffee Roaster’s On Way to Million Dollars
Many ways to enjoy coffee.
I also know a couple in Florida whose coffee roasting business is on track to do $300,000 a year by their third year. Their start-up cost was only a couple thousand dollars; they bought a website and a roaster from someone needing to get out of the business because of poor health. These two small coffee businesses are still in the process of getting their owners $1,000,000 in the bank. Here is a story of a coffee company that has already delivered millions of dollars to the owners.
$340,000,000 in 14 Years
In 1992, newlyweds John and Kim Puckett raised money to start the first Caribou Coffee shop in Edina, Minnesota. The Puckett’s sold their controlling interest in the company in 1998 for $120 million. It took them six years to make $120,000,000. This is not a direct comparison to the roasting business, because they also had coffee shops. Coffee roasting and coffee shops are two different businesses, but they can be done individually or together. An additional footnote is Caribou Coffee was sold again in December of 2012 for $340,000,000. Of course how can any discussion of coffee go by this day and age without mentioning Starbucks? But forget Caribou or Starbucks, the coffee market is so large you can cut a little chunk out and no one would even notice while you become a millionaire.
Continued Research into The Coffee Business
I plan to continue to do more research into the coffee business. I am talking to some coffee shop owners and digging into other businesses related to coffee. If you have questions of your own let me know, make a comment or e-mail me. I can make sure I include your thoughts into my interviews when I get them. Don’t forget you must believe you can get $1,000,000 someday. If you think you will need financial partners, it does not hurt to start lining them up too. Remember you can start a business even if you have no money with help from others.
Hi,
I was in the coffee roasting/manufacturing business for over 27 years. 17 of those years I was the 100% owner of a very successful operation in the New England area. I am embarking on my second journey into the coffee industry as we speak and actually have been speaking to people quite recently about consolidating a significant amount of smaller roaster’s and then I will oversee them, while the founder’s or owners continue to do what they do best. I am definitely in agreement with your assessment that you can be extremely successful in this industry. That is why I am commenting on this post, which I never do. I can be reached for further discussions @ jleary60@hotmail.com. I also have a post about my experiences in the roasting business you may want to take a look at. Go to this address and see what you think!
http://iamgoingtocommentonjustaboutanything.blogspot.com
Good comments, Thanks, Mike
Hi Michael,
I always want to involved with roasting coffee business.
Especially, recently because I lost my 20 years career job and left us only one income to support entire our family. The idea/passion is stronger than ever.
We can only come up around 30k to start our new business.
Can we:
1. purchase a small roaster and to start roasting at our own house ?
2. Do we need to get license and permit to roast at home?
3. Do we need FDA approval to roasting coffee?
Thank you for your answer in advance.
Regards,
George
George,
If you haven’t done so already, I can put you in touch with someone who is selling 2 roasters at about 20k per. Also you could call San Franciscan Roaster Co. and talk to Bill. He always knows of used ones for sale. One piece of advice for you is to know your market, your demographics and your competition. Coffee can be just as cutthroat as any other business, and the big boys, (Peets, Starbucks etc) have economies of scale on their side when you try retailing.
George,
I am not a coffee roasting expert, but the answer to all of your questions are out there.
Here are some thoughts:
-Purchasing a small roaster (used) would be a good way to get familiar with the coffee roasting end of the business to see if it is what you enjoy.
-$30,000 is probably enough to start this business, but money is available for a good business plan and a confident entrepreneur if it is not enough..
– I would first research the business and make a plan without regard to how much money you have. Once you have a plan you will know what you need and you can pursue investors if you need them
-The bottom line is do your research, make a plan, then execute.
Good luck and keep us posted,
Mike
Dan,
I do not know of a list of coffee roasting businesses for sale. If I wanted to buy one, I would find businesses with google and approach them as a buyer. Everything is for sale. Even if you do not find one, this could be a very good exercise to make contacts and learn more about the business. Ask everyone you talk too who else they know in the business, this would expand your network even more.
There are companies that teach you how to open a coffee business. You might look into that too. Good luck