Research Report On Starting A Coffee Business In Canada Essay


Discuss about the Research Report on Starting a Coffee Business in Canada.



A problem-solution recommendation report is a document that seeks to identify and analyze a real life problem, suggests potential solutions and expresses conclusions from the research findings giving recommendations on ways to overcome a problem matter (Guffey et al, 2009).

Many people have a dream of starting up their own businesses and being their own boss at a point in life but for most people, it remains a dream due to the many obstacles faced in starting a business let alone keeping it running and profitable.

The starting of a new coffee business is the problem that this report seeks to solve. The report seeks to solve the problem of starting a coffee shop in Canada. The primary purpose of this report is to identify the challenges that we will face in starting and running a coffee business. Some constrains in starting our coffee business are; sourcing for capital, identifying a strategic location for the business premises. The report outlines the steps needed and the challenges to be overcome from starting a new business venture from scratch to making it a highly successful business. These problems are discussed in details in this paper.

Inadequate Start-up Capital

Start-up capital is the amount of cash and other assets required by an entrepreneur to open a new venture (Allen, 2015). A large population of people willing to start a business are not capable because of high costs requirement.

This is mostly common to young people like us who have little or no source of income of their own. This is largely due to the great deal of time spent in school hence most depend on their parents for upkeep. To realize our dream of starting our coffee we need adequate and proper funding. When starting from scratch, there are many things that need to be developed which include things like furniture, websites, logos and staffing. Renting of the business premises which needs to be strategic in order to attract a large number of customers requires a substantial amount of cash as well as developing a brand for our coffee business. Financial risk plays a huge in small businesses like ours and therefore ensuring and maintaining a healthy cash-flow is important.

Stiff Competition

According to Merriam-Webster competition in business is effort of two or more parties to do better than the other. They act independently to win customer in a market. New business finds it difficult to compete with existing large businesses. These big businesses may eventually bully the new businesses forcing them out of business. In our coffee business scenario, we have large organizations that enjoy large economies of scale hence they incur a smaller per unit cost compared to our newly started business.

These existing businesses also have gained more knowledge in operating that sort of business, know the market better and probably can adapt to changes in market trends quicker than the new business. The existing businesses also have an upper hand in the market because they have already established brands and this makes it even more difficult for the small firms to compete in the market.

Marketing of the New Business

Marketing is one of the most essential functions of a successful business. We have to come up with a proper marketing technique that will best suit the needs of our business. Marketing channels range from print media advertising, online advertising, and social-media adverting. We need to come up with a means of advertising that is cheap because of the financial constraint and at the same time, the mode chosen should be able to cater for the marketing needs of our business sufficiently.

Assembling a Business Team

When starting our coffee business, we need to assemble a team with good management skills and requisite experience. Employees will be the core of the growth of our business because if our customers fell well served by our employees, it will create customer loyalty and this will eventually result to our business having a huge base of loyal customers. The strategic business team should comprise of the manager to the junior most worker in the organization. To assemble such a team requires due diligence by the recruiting agency to ensure that the business has the best personnel available in order to help in its growth and development agenda.

Finding the Right Business Location

Finding the right business location at a right price is a daunting task to most start-up business. Strategic location of a business enterprise is one of the major determinants of how successful a business enterprise will be. The location chosen for our business should be populous meaning that there will be many potential customers in the area (Wyshak, 2014). An example of good location for our business would be along a busy street in a town or a corner shop around a major junction. A good location of the business will drive up sales hence resulting to higher profit margins.

Unforeseen Business Challenges and Expenses

An entrepreneur should prepare for unforeseen and undesirable business outcomes that are likely to happen in the future (Cowan, 2012). These unexpected outcomes likely to face my business are;

  • Inconsistent government policy
  • Loss of market share
  • Inadequate stock or inventory
  • Bad debts from customers
  • Loss of core staff members
  • Unexpected lawsuits

If this unexpected scenario are not handled properly can ruin our plan to start and build a successful and profitable coffee business.


As a result of the above problems and challenges that we have identified during our research as possible hindrance to our starting a successful coffee business, the recommend the following solutions to be applied in dealing with the identified challenges:

  • To solve the problem of inadequate start-up capital, we need to identify alternative sources of capital such as borrowing a loan from bank .The capital unavailability can also be dealt with seeking for a potential investor to inject funds to our business or seeking the assistance of friends and family members (Gallander, 2002).
  • The issue of completion can be dealt with through continuous innovations. This is done by re-designing our products to tailor the needs of our clients. This will help clients to prefer visiting our coffee shop as opposed to that of our competitors. One of the ways of differentiating products is through serving our customers in unique branded cups. Competition can also be dealt with through high regard for our customers’ needs and continuous marketing of our brand (Gray, 2012).
  • The challenge of marketing can be dealt with by adopting cost effective marketing techniques like the use of social media marketing.
  • To assemble a strong team of employees which can deliver results to our coffee business is by establishing stringent employee recruitment mechanisms to enable in picking only the best.
  • The challenge of finding strategic location for our business will be solved be actively looking for premises which are located in prime areas but which are also affordable.
  • To overcome unforeseen occurrences which may affect the business negatively, we need insure our business against risks such as risk of loss and risk of fire. Establishing proper internal risk control mechanisms will also enable reduce the risk of the occurrences happening.


From the research we carried out on the problems that would result to failure of our coffee business in Canada, we can make the following conclusions:

  • The business stands a good chance of success with sufficient capital available for our business.
  • There is great amount of competition in this industry and therefore its necessary that we put in strategies as recommended above to cope with competition


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