SEO tips for beginner's 2022

Case study on the premium coffee company

Coffee 2016

Andrea Illy is CEO of the global premium coffee company that bears his family’s name. As one might expect, he is passionate about coffee – its science, its health benefits, its taste, its beauty. Illy also has a dream that someday soon the coffee market might be transformed into something approaching the market for wine. Where connoisseurs discuss the fine points of various origin coffees and blends, where customers are willing to pay a premium for the finest examples of the coffee-making art, and where the growers, roasters, and baristas will be compensated fairly for the expertise they contribute to every cup.

Unfortunately, the current coffee market differs from such an ideal. Coffee growers in most parts of the globe work at a bare subsistence level. One bad harvest (made all the more likely by the ravages of climate change) or a sudden decline in the commodity price of coffee can drop them below subsistence to hunger. Even in good times, growers have little incentive to improve their operation – they have minor contact with the roasters or customers and no knowledge of how their crops get translated into the cup. This disadvantages not only the grower but also the consumer – coffee sourced from good quality beans are hard to find.

lly believes that the solution to the sad state of affairs is to initiate a “virtuous circle” that draws the grower, the roaster, the barista, and the customer together. Growers with better knowledge of the market will work to improve their crops or experiment with new varieties. Roasters and preparers will educate their customers as to the qualities of various beans, roasts, and preparations. Customers, in turn, will be willing to pay more for the best beans and that premium will be sent back up the chain to pay for even more quality and variety. And so on.

Certainly, there have been some positive signs. Indeed, many observers argued that a “third wave” of transformation in the coffee market was already starting. (The first wave is said to have occurred when Maxwell House and Folgers made coffee a mass commodity, the second wave when Starbucks initiated a move to quality and higher prices.) Specialty coffee roasters had worked to build cafes and brands around origin-based beans sold directly to the roasters without reference to the commodity prices of coffee. With these third-wave roasters, every coffee came with a story of its origins and growers could count on occasionally eye-popping premiums for their beans.

As yet, specialty coffee represented a small sliver of the overall market and there were other signs that it might not ever grow beyond a small circle. New trends like coffee-based drinks and single-portion coffee in pods (e.g. K-cups, Nespresso) actually shifted more of the value-added towards roasters without a premium for growers. A consolidation was taking place among mass roasters that were even sweeping-up third-wave roasters in its wake. Observers argued that could lead to greater uniformity with even less emphasis on origin-based, direct-traded coffee.

Illy’s hope is that someone would come up with an innovation that would solidify the beginnings of the third wave and help reshape the market. Such a change would not necessarily have to involve illycaffè; Andrea Illy believes as the world’s premium brand, an increased emphasis on quality in the market would only help his company. The most important thing was to make the coffee supply chain more equitable and coffee better-tasting.

10 tips for becoming a successful entrepreneur

Here is a collection of 10 of our all-time best pieces of advice to help you make it as an entrepreneur.

1. Have a solid business plan

Planning plays a crucial role in any business's success. A business plan is a good place to start – defining your skills and weaknesses, what you offer, how it’s unique, and how you plan on growing your offering. What’s more, try to prepare yourself mentally and practically for anything that could go wrong and how you would deal with it. For example, what happens if you get injured? What if clients pay you a month late? What if a weather disaster affects you? Or a trusted supplier goes bankrupt?

2. Prepare for financial challenges

Most of the 600+ small businesses start-up surveys said that cash flow was by far their biggest challenge. Deal with cash flow blows by saving for a month’s worth of expenses or by getting creative with how you lower your overheads.

You could offer clients a discount if they pay a deposit or the full amount upfront, or even an incentive – e.g. pay 10% less if you deliver your product or service a week earlier. Whatever you do, be extremely careful of debt – this is one of the biggest killers of small business success.

3. Be frugal – remember you’re a start-up

Resist the temptation to splash out on fancy offices, expensive equipment, and over-the-top marketing. Your company’s livelihood depends on what’s in your wallet so every rand and cent must be triple-checked. Maintain a low overhead and manage your cash flow effectively. For one of our 1001 days survivors Jamie Pike, this meant foregoing a physical shop at first and selling his wares at a market; for design duo Jesse James it meant sharing their premises with other small businesses.

4. Don’t be afraid to ask for help

There are loads of resources out there for networking, knowledge sharing, and advice. Networking is not just for new business opportunities; it can be a wonderful source of support and fresh ideas. Attend events such as Leaders (free masterclasses)  Don’t hesitate to ask for advice from those around you (such as your intermediary, bank manager, landlord, or neighboring businesses),  or online forums and Facebook community groups in your area.

5. Put your faith in a trusted mentor

It can be a family member, former boss or colleague, or even a trusted online source or blog. A mentor is an invaluable sounding board – someone who’s been where you are; someone with whom you can have regular, non-judgmental check-ins. 61.9% of respondents in our survey didn’t have mentors – however, those that did say that they found mentors to have a significantly positive impact on their businesses.

“My mentor pushed me beyond my biggest fears”, said one female entrepreneur who took part in our survey. “It’s not somebody who will take over”, agrees Cooked Inc’s Mariam Jakoet Harris. “It’s someone who’s going to nurture and help you.” 

6. Marketing on a shoestring budget

Marketing your new business is extremely important but doesn’t have to cost the earth. Social media is your friend – creating your business page on Facebook is free and will help your online search ranking. So is submitting your website URL to search engines like Google and Bing – it’s completely free.

Also, keep an eye out for community Facebook groups – some will require a small advertising fee while others allow you to advertise your business on certain days of the week. The bottom line with marketing is to try anything and everything. You won’t know what will work for you until you try it.

7. Look after number one

Entrepreneurship is a lifestyle – the days of 9-to-5 are over. That’s not to say that you must work yourself into the ground. Exercise regularly, eat healthily, and find the time to relax or you’ll end up being less productive. Of our survey respondents, 64% said that they had to give up precious time with their family and friends due to work responsibilities. Working on your time management skills will help you clear enough time in your day to spend with loved ones. 

8. Build a team that shares your vision

It’s simple: great people make a great company. As your business grows, you might need to hire staff. Firstly, take the time to interview people thoroughly to ensure that they fit your culture and share your values. Secondly, it can be hard to let go but it’s important to learn how to delegate tasks. Finally, don’t expect people to be your clones. Be open to new opinions and suggestions. It’s always good to get fresh perspectives on old ways of working. 

9. Never stop learning

Starting your own business is a constant process of growth and learning. It’s important to enrich yourself with both practical and emotional skills. Take a look at free or low-cost e-learning resources such as the Hubspot Academy, Udemy, and Inc.edu.

Sharpen your project or time management skills, learn a new software program or teach yourself how to run your own social media campaigns. You can also work on your management, presentation, and motivational skills. If you travel a lot, podcasts and things like TED talks are great ways to inspire and educate yourself.

10. Safeguard your venture

The best entrepreneurs don’t seek risk, they seek to mitigate risk. Small business insurance is one of the best ways to look after your livelihood, and it’s more affordable than you think. Make sure that your precious stock and premises are covered in an emergency such as a fire or theft.