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My Thoughts on How Smaller Roaster's can Compete and Thrive in This Highly Competitive Business!

If you have been in this business long enough, you understand the daily challenges you face as a small business in the coffee roasting industry. You don't have to tell me I've been there, done that.
As I have stated before in this blog, I am an active consultant and am always seeking opportunities to help your business become more profitable, keeping your overhead low and stay in the game, protect you customer base and become a leader in your niche! I will always be available to do that, and if you choose that path, I certainly hope you contact me, because I guarantee you I can help!
As I look at this industry as a whole though, it makes a whole lot of sense to consolidate. I live in the New England area and recently did an analysis for a company about how much fragmentation there is in just this one small area of this country. There are over 40 small to medium sized privately held roasters in a 300 square mile area, and what most are doing is banging each other over each others heads to gain more customers at the expense of their competitor's. This in my mind is a complete waste of resources and quite frankly counter-productive and even more importantly costly!
I am sure you understand the concept that it costs much less to maintain an existing customer as it is to land a new customer. That pretty much goes for any business, but this one in particular because, of the cost amount of direct competition there is out there. There are only a finite number of customers to get, and the ratio makes it extremely difficult to effectively grow your business which shows real measurable results.
I believe the way to attack this type of competitive atmosphere is to eliminate it! What I am talking about is a simple mindset. Wouldn't it be better to join forces and create something that has more critical mass that effectively eliminates this counter productive way of doing business? I am talking about a good old fashioned roll-up! Consolidate companies! That's right become partner's not competitor's. I think 5 or 6 or 7 smaller company's that merge, is a much stronger and sustainable model than what I am presently seeing in today's marketplace! Now I am not talking about relinquishing control of your present business, in fact, I guarantee that every company that looked at this model would benefit greatly by doing what I am proposing. Wouldn't you, as a business owner, rather have 15% of say a $75 million dollar company than have 100% control of a 8 or 9 million dollar business?
Well I have people I work with that have put me in charge of doing just that. We are not looking to buy your company per se, we are looking to create a much larger company that operates autonomously from one another, yet they are all stakeholder's dependent on their size of the slice of the pie to become stockholder's in something much greater than what you presently own! If this doesn't make sense to you, as a business owner, entrepreneur, you really should rethink your future.
I am actively seeking small to medium sized coffee roaster's that are willing to get in on the ground floor of such a concept. Not only will it negate the beat each over the head mentality, it benefits everyone from added buying power, allows each company to focus on the one thing they do best and benefit from other company's that do something maybe, a little bit better than yours does. Now, I am also actively seeking company's that want to outright sell also, but this roll up model's time has come. In fact in my mind it is long overdue.
If you are own a coffee roasting business and any of this makes the least bit of sense to you, contact me. I can be reached through comments here, through my profile on Linkedin, or through email
I promise I won't take up a lot of your time but be sure, the first action takers always retain the most leverage! Just think about it, this happens in every industry from banking to computers to sneaker companies etc... This idea has come for this industry and I have the contacts, money sources and experience to make this really work!
Have a great weekend and thank you for your continued loyalty in reading this blog! I really appreciate it. Don't forget to sign up to my list on the right hand column of this blog. If you do you will receive some great information from time to time that I don't post on this blog! Thanks again, Joe

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