Opinions please on roastery options!

[JitteryCoffee]

Okay friends, I'd like some advise, opinions, and words of advise if you don't mind. I'll try and keep this brief but give you enough info to understand the situation:

So i've been home roasting for over 4-5 yrs, just this past January ('09) I made it official, got a business license, and put together a website. Since then things have been really taking off. I roast everyday on my 1# behmor to keep up with demand. My website has allowed me to ship all over the U.S. And a facebook page I created for the business has sparked quite a buzz in the community. I think it's time to carry the momentum, buy a bigger roaster to keep up with the demand already in place, and get an actual location to work out of (instead of my side porch). I have two primary goals for the upgrades: 1) better efficiency for the demand already in place. 2) start going after wholesale accounts in the city and on the internet. 3) make my presence known in the community and capitalize on the interest already in place.

So here I am today:
My roaster is being built as we speak. I ordered a 3kilo USRC because i've heard great reviews and comments about them from members of several different discussion boards. It should be ready early to mid December. It's big enough to suite my needs (to start anyway), great price, and great customer service.

Being on such a tight budget i've had to think WAY outside the box in terms of where to set up my roastery. I've come across two opportunities:

1)There is a lady who is opening a coffee house here in town that i've discussed “partnering” with. I pitched the idea of letting me rent a corner of her space to set up my roaster. She gets an onsite roaster, industry insider, and more or less an advisor. And I get a built-in wholesale account and a space to work out of. She also gets the benefit of having a built-in customer base (ppl who have been waiting for me to have a place where they can get my coffee!). I told her I could commit to a year and hopefully by then would be able to move out, to a space of my own. I also made it clear my objective would be to serve her with great coffees, advise on various coffee topics, and continue to secure other wholesale accounts. I would not work the espresso bar at all, but would be available for demonstrations, and talk coffee with patrons. I also discussed Private Labeling with her, her logo and info on a bag so patrons could buy various coffees by the pound and thus diversifying her and my profits. She loves the idea.
The pros: Cheap/cost efficient start up. Better visibility than if I were to just open up a warehouse. Built in wholesale account. Will have a place for current patrons and friends to come get my coffee.
The cons: This lady knows very little about the coffee industry. Communication has been poor the last couple of weeks as we get closer and closer to the opening of her shop. If this lack of communication is indicative of the future i'm nervous. Despite strong urgings from me, she still insists on getting a fully automatic espresso machine. THAT i'm not comfortable with at all. I'm afraid true coffee enthusiasts won't take her seriously and will associate me with sub par coffee. If they can't get my coffee served correctly then how will they know how good it truly is??
2)Option 2 is an office space located in the industrial side of town. A lady who owns several music lesson businesses is renting out an office space within one of her locations. It's a tiny tiny office with just enough room for my roaster, a desk, and some shelving for storage, etc...
Pros: Cheap/cost efficient startup. For taxes purposes its in a unincorporated city/county with dirt cheap taxes. It would be a great place to focus primarily on wholesale. Only a 6 month lease.
Cons: No visibility (which might be a better thing so I could focus on business more). SMALL space.

So I don't know. From a business and practical stand point the coffee house seems like the better deal. From a coffee snob stand point i'm nervous about the equipment and lack of knowledge from the owner down and how that would affect my business's image. If I get into the office space, then I have total freedom and control to do what I want with the space and dirt cheap taxes.

Opinions?? toughts??

[juliekw1]

I like the idea of a shop, this give you exposure, and people love seeing a coffee roaster in action. I would do some gentle coaching in advertisement.
_________________
Julie Weaver

[natasha_p]

Hmn.... I'm going for Option 1. You are right about being nervous and being hesitant about the partnership, but I think the exposure will be good for you in the long run. Anyway, it's just a year. You will still be able to keep your loyal patrons, who truly know you make great roasted coffee. And besides, you will still have your own products exclusively, something that's separate from the partner's blends.

Option 2 sounds a good idea, too.

Anyway, either way, I'm sure everything will work for you. Do update us on this one! Good luck!

[JitteryCoffee]

HEY! I forgot that i posted this question here until i came across it! Doesn't look like this forum is too active. Anyway..update...

The potential "partner" still hasn't opened up. She claims she's working on it.

Man am i glad things worked out the way they did. I finally told her i couldn't wait on her shop anymore and leased a small warehouse outside the city. That was SEVERAL months ago and like i said, she's still not open. I've got several healthy wholesale accounts and the website retail is taking off. Things are good!