This Woman Started A Coffee Shop With P6,000 Capital | Real Stories Real People | Anna Magalona | OG

Summary

The speaker shares their entrepreneurial journey, starting a coffee business with a modest P6,000 capital amid the pandemic as a backup plan. Initially facing skepticism and challenges, they leveraged social media to gain traction, eventually expanding to a physical store and franchising opportunities. The story highlights the importance of resilience, quality, and customer service, offering advice to aspiring entrepreneurs to start online and invest in knowledge for business success.

Takeaways

• 💼 The speaker started a coffee business with a small capital of P6,000 while working as a credit and finance solutions manager in Makati.
• 🌐 The pandemic prompted the speaker to consider a backup plan, leading to the idea of starting a low-maintenance, easy-to-prepare coffee business that could be launched online.
• 📈 The initial challenge was to sustain the business and attract customers without a clear understanding of the target market or effective marketing strategies.
• 🚫 Despite discouragements and setbacks, such as coffee being stolen during delivery and car troubles, the speaker persevered with the business.
• 🔄 After several trials, a perfect coffee blend was achieved, suitable for online sales, which was then promoted on social media platforms like Facebook.
• 📈 Positive customer feedback and word-of-mouth helped in developing additional flavors and menu items, enhancing the brand's appeal.
• 🏪 The establishment of a small physical kiosk under a condominium boosted credibility and attracted more customers, leading to interest in franchising.
• 📊 By the end of 2021, the business expanded to 15 branches, starting from a home-based operation with a basic coffee maker and minimal supplies.
• 💰 The business's best-selling products include Vietnamese style coffee at P70, a brewed coffee with condensed milk, and Spanish latte made with Arabica beans.
• 🌟 The speaker emphasizes the importance of mission and vision in creating job opportunities and offering affordable, quality coffee to customers.
• 📚 The speaker advises aspiring entrepreneurs to start online businesses, invest in knowledge, and focus on effective marketing during the pandemic.
• 📧 The script concludes with an invitation for listeners with inspiring stories to share them via email and to subscribe to a YouTube channel.

Q & A

What was the initial capital used to start the coffee business?

The initial capital used to start the coffee business was P6,000.

What was the speaker's profession before starting the coffee business?

The speaker was a credit and finance solutions manager at a software company in Makati.

How long was the speaker employed at the software company?

The speaker was employed at the software company for almost three years.

Why did the speaker consider starting a coffee business during the pandemic?

The speaker wanted a backup plan in case they got laid off or faced other disruptions to their work due to the pandemic.

What was the speaker's background that helped in starting the coffee business?

The speaker had a background in Marketing from college, which they were able to apply in the coffee business.

What were some of the initial challenges faced by the speaker in running the coffee business?

Some initial challenges included identifying the target market, discouraging feedback from people, and logistical issues like coffee being stolen and car problems.

How did the speaker overcome the challenge of marketing the coffee business?

The speaker started posting on Facebook and sharing with friends, which helped people to love the coffee and know more about the brand.

What was the first physical presence of the coffee business?

The first physical presence of the coffee business was a small kiosk set up below their condominium.

How many branches did the coffee business expand to by the end of 2021?

By the end of 2021, the coffee business had expanded to 15 branches.

What were the speaker's best-selling coffee products?

The best-selling coffee products were the Vietnamese style and Spanish latte.

What is the speaker's advice for those wanting to start a business during the pandemic?

The speaker advises starting online, as people are on the web daily, and to invest in oneself and knowledge to make the business a success.

How can people share their inspiring stories similar to the speaker's?

People can share their inspiring stories by emailing them at [email protected].

Outlines

00:00

🚀 Entrepreneurial Journey with a P6,000 Coffee Start-Up

The speaker narrates their experience starting a coffee business with an initial capital of P6,000 amidst the pandemic. They were a credit and finance solutions manager in Makati but sought a backup plan due to job insecurity. Leveraging their marketing background, they chose coffee due to its simplicity and love for the beverage. Despite initial challenges like theft during delivery and car troubles, they persevered, eventually finding a winning coffee blend. They expanded their business online, gained popularity through social media, and even opened a physical store, attracting franchise inquiries and growing to 15 branches by the end of 2021. The speaker emphasizes the importance of treating customers well and providing quality service, reflecting on the mission to create job opportunities and offer affordable, quality coffee.

05:01

🌟 Navigating Business Opportunities in the Pandemic

In the second paragraph, the speaker offers advice for aspiring entrepreneurs during the pandemic, recommending starting an online business due to the increased web presence of consumers. They stress the importance of self-investment in knowledge and marketing to ensure business success. The speaker invites others with inspiring stories to share them via email and encourages viewers to subscribe to the OG YouTube channel, highlighting the value of community and shared experiences in entrepreneurship.

Keywords

💡Capital

Capital refers to the money used to start or operate a business. In the video's context, the speaker mentions starting with a capital of P6,000, which is the initial investment for their coffee shop venture. This is a crucial concept as it sets the foundation for the business's growth and the challenges faced in maintaining it with limited resources.

💡Pandemic

The term 'pandemic' refers to an outbreak of a disease that occurs over a wide geographic area and affects an exceptionally high proportion of the population. In the script, the pandemic is mentioned as the catalyst for the speaker's decision to start a backup plan, which eventually leads to the establishment of the coffee business. It illustrates the impact of global events on individual livelihoods and entrepreneurial decisions.

💡Backup Plan

A 'backup plan' is an alternative course of action or strategy to be implemented if the primary plan fails. The speaker sought a backup plan due to job insecurity during the pandemic, which led to the idea of starting a coffee business. This concept is key to understanding the motivation behind the entrepreneurial journey shared in the video.

💡Marketing

Marketing is the process of promoting, selling, and distributing a product or service. The script discusses the challenges of marketing a new brand and attracting customers, which is essential for the business's survival and growth. The speaker's efforts to market their coffee through social media and physical presence exemplify the importance of marketing in establishing a brand.

💡Target Market

The 'target market' is the group of potential customers toward whom a product or service is aimed. The speaker mentions the difficulty in identifying the target market initially, which is a critical step in tailoring products and marketing strategies to meet customer needs and preferences.

💡ROI (Return on Investment)

ROI stands for 'Return on Investment' and is a measure used to evaluate the efficiency of an investment. In the script, the speaker reflects on the need to replace a car battery before achieving ROI, highlighting the financial challenges and considerations that come with starting and running a business.

💡Franchise

A 'franchise' is a business operation that is granted the right to sell a company's goods or services in a particular territory. The script mentions people showing interest in franchising the coffee business, indicating a growth opportunity and a sign of the business's success and credibility.

💡Branding

Branding is the process of creating a unique name, symbol, or design that identifies and differentiates a product or service from others. The speaker's use of cups and labels to market their coffee is an example of branding, which is essential for creating brand recognition and loyalty.

💡E-commerce

E-commerce refers to the buying and selling of goods or services using the internet, as well as the transfer of money and data to execute these transactions. The speaker's decision to launch the coffee business online is an example of e-commerce, which has become increasingly important, especially during the pandemic when physical stores faced restrictions.

💡Mission and Vision

A 'mission' is a statement of the company's core purpose, while a 'vision' is a description of what the company aspires to achieve in the long term. The speaker mentions their mission and vision to create job opportunities and offer affordable, quality coffee, which reflects the values and long-term goals guiding the business.

💡Investment

Investment refers to the use of money in order to achieve benefits in the future. The speaker advises investing in oneself and one's knowledge to make a business successful, emphasizing the importance of personal development and resource allocation for entrepreneurial endeavors.

Highlights

Started a coffee shop business with an initial capital of P6,000 despite doubts about the feasibility.

The speaker had experience as a credit and finance solutions manager before starting the business.

Leveraged knowledge from a marketing background to apply in the new business venture.

The pandemic prompted the need for a backup plan, leading to the idea of starting a coffee business.

Chose coffee as the business due to personal interest and its simplicity in preparation.

Started the business with a blank canvas approach, focusing on basic math and learning as they go.

Faced challenges in sustaining the business and attracting customers.

Initially struggled to identify the target market and faced discouragements from others.

Encountered logistical issues with product theft and car troubles during delivery.

Had to consider whether the business was viable before reaching a return on investment.

Found a successful coffee blend after several trials and errors.

Utilized social media to promote the coffee and gain customer interest.

Developed additional flavors and items based on customer feedback and interest.

Opened a small physical store to increase credibility and attract more customers.

Explored franchising opportunities to expand the business further.

Started with minimal investment in equipment and supplies to test the market.

Highlighted the best-selling products, the Vietnamese style and Spanish latte, and their unique features.

Shared personal realizations and the mission to create job opportunities and offer affordable quality coffee.

Emphasized the importance of customer service and the value of treating customers well.

Offered advice for starting a business during the pandemic, focusing on online presence and self-investment.

Invited others to share their inspiring stories through email and promoted the OG YouTube channel.

Transcripts

We started with a P6,000 capital.

People are really doubting, why is it really six thousand?

It's very expensive to open a coffee shop.

i was a credit and finance solutions manager at  a software company in Makati.

I was employed there for almost three years.

Basically I was working with several clients and teams.

Actually that was one of my you know dream job before because I was able to learn a lot in there.

I was able to apply what I've learned from my college course when I was in Marketing.

Last August 2020, you know when the pandemic hit, I wanted something that could be a backup plan

if in any case I would get laid off or whatever happens to my work.

I was thinking to myself what could be a backup plan.

I really wanted to have my own business

But what business could I start with that  it's very low maintenance, easy to prepare  

and easy to launch online?

I thought of coffee because I love coffee and coffee is quite easy to prepare.

And I started it since I had no idea about running a business —everything was like a blank canvas.

It's just as long as I know how to do the basic math, it could work for me during that time.

And then just you know eventually work my way

The next challenge here is how will  you sustain it how will you get more customers,

how will you market your brand well.

Because the building phase was the hard part,

I wasn't able to identify my target market yet.

There were discouragements from people like,

"You're just lost right now. You will not continue that business."

I was having thoughts—will there  be other people aside from my family  

and friends to purchase from me?

As I was personally delivering the coffee,

some of it were stolen inside my car.

Then suddenly, the car won't start.

I had to run to a battery shop to jumpstart the car.

The car's battery needs to be changed.

So I was thinking, "II have not reached my ROI

but I need to buy the car's battery which costs around P5,000-P6,000."

"Is this business really for me?"

After several trials and errors

I was able to have that perfect blend where  it's good enough to sell online.

I started posting on Facebook, sharing it to all of my friends.

People were able to love the coffee.

People were able to know more about us.

So that is when we were able to develop additional flavors —additional items on the menu.

We were able to save a bit to put up  our own physical store below our condominium.

It was a very small kiosk but people were able  to see us physically.

So it kind of boosted our credibility as well

and that helped us gain more customers

And also people were interested to franchise our business, to know more about our business.

And then that's where we able to venture it out and close the year 2021 with 15 branches.

We started with only P6,000 because we  did not have a physical store back then.

We just operated in our condominium.

And then that P6,000 we bought a basic home coffee maker that's just around P800 to P1,000,

and packs of cups and labels on it for us to market and put our branding.

We also bought one kilo of coffee grounds and a few milk and sugar syrup.

So i think that was enough to start with selling at least 50 to 100 coffee cups.

Our best sellers are Vietnamese style and Spanish latte.

So the Vietnamese style is at P70 right now.

It's a brewed coffee  served with condensed milk.

It's inspired by the authentic Vietnamese coffee but we just tweaked a little

with the Filipino version of sweetness.

And then we also have the Spanish latte as one of our bestsellers.

It's a bit more premium compared to Vietnamese latte

because we used Arabica beans being done with  commercial espresso machines.

I had a lot of realizations especially during  my But First Coffee journey.

I get to stick with our mission and vision which is to create job  opportunities for people

—help people start their own business.

I get to offer people with good quality at the same time affordable coffee.

You don't need to break the bank  just to get good coffee.

I really value our customers and I really want them to experience  good quality of service from us.

That's why you know sometimes it's not all about the money,

sometimes what matters the most is how you treat them.

My advice for those who want to put up a  business in this pandemic is

I would definitely recommend you to start online because every day people are on the web

and they can see your products and services

—as long as you're able to market it very well.

Invest on yourself, invest in your knowledge, invest everything that you can to make your business a success.

If you have an inspiring story like this one,  email us at stories.only [email protected].

And don't forget to subscribe to OG's YouTube channel. Thank you for watching!