SiliconCape Initiative Startup Profile: Cape Coffee Beans

Silicon Cape will be featuring a business from our Startup community. If you would like your company profiled please fill out the form here.

Todays’ featured community startup is Cape Coffee Beans. A recent highlight for the company was being named as one of the Top30 in this year’s eCommerce Awards.

Company Name

Cape Coffee Beans

Website Name

https://capecoffeebeans.co.za

Who are you and what do you do?

Phaedon – Founder of Cape Coffee Beans

Cape Coffee Beans is an eCommerce site dedicated to South African coffee lovers. We work with local boutique and artisanal coffee roasters to make their coffee beans available online to the whole country. Freshness is very important when it comes to coffee so we collect the beans only after a customer orders and then deliver using a courier service so that what our customers receive is just a few day sold. We also sell basic home brewing equipment like coffee grinders & the Aeropress so that you can get everything you need for a delicious cup of coffee on the site.

Is this your first company?

First as a founder

How were you inspired to start your business?

After having worked for one of the big South African eCommerce players, I was very aware of the challenges of doing eCommerce profitably in SA, particularly with a small budget. I took some time to identify a product category that I felt met the right conditions:

1) A narrow niche with passionate consumers

2) A product category that I myself was passionate about

3) A good delivery weight to value ratio

4) Low SKU complexity – not too many products from each supplier

5) High likelihood of repeat customers

6) Low likelihood of returns

What are the biggest hurdles you have faced in starting a business?

I think Cape Coffee Beans’ challenges are what you would expect for a niche eCommerce play:

1) Bandwidth is always a constraining factor – there are always a million things to do and only so many hours in the day.

2) Getting the word out – as we all know, just because you built it, doesn’t mean the audience will come. We’re always looking for creative ways to reach more coffee lovers.

What do you consider to be the biggest challenge for entrepreneurship in the context of South Africa?

I think the first challenge is that we have fewer local, seasoned veterans to turn to for advice. There are only a few really successful startup entrepreneurs around but having said that, I think there’s an incredible network of peers emerging.

The second challenge, though not one that is relevant to Cape Coffee Beans right now, is raising money. One can argue about whether the cash is there or not but it’s harder to connect cash with an idea in SA than it is in the US or Europe.

The final big challenge is just the size of the audience. The amount of people online and with sufficient spending power to be customers of any eCommerce or tech startup is still very small (though growing rapidly). That means that building businesses that are dependent on scale is extremely challenging. Personally I think that’s what makes niche eCommerce plays like Cape Coffee Beans more attractive as they don’t require as much scale as some other online business models.

What are your views on the tech ecosystem in South Africa?

I’m incredibly excited about the eco-system that’s emerging in SA and particularly Cape Town. There are lots of talented people rolling up their sleeves and starting businesses and more and more organisations cropping up to support them. I have little doubt that the eco-system here is going to continue to develop to the benefit of local entrepreneurs, even if it’s still in its early stages of growth.

What is your vision for your company in the next 6 months?

In the next 6 months, Cape Coffee Beans will continue expanding its range by working with more local roasters and bringing on more home brewing equipment. We’re also going to starting looking at subscriptions and offerings tailored to small offices. At the very least, we want to provide startup entrepreneurs a way to stay well-caffeinated with great local coffees!

What skills do you require to make your business successful?

I think right now it’s about being a jack of all trades with the willingness to persevere in all departments. I don’t have the luxury of delegating the less interesting stuff to anyone.

What advice would you give to aspiring entrepreneurs?

1) Get some foundational training first. Big corporates, other startups and other entrepreneurs can give you a lot of the lessons you need in a more pleasant way than the school of hard knocks.

2) When it’s time, get comfortable with “good enough” and put something out there. It’s about trying things and learning, not about creating perfection.

3) I believe you need to understand how all aspects of your business work. Roll up your sleeves and get into the detail on everything, even if later on down the line you delegate/outsource it. Blind spots are dangerous.

Quickies to add: (one liners – fun)

What app can’t you live without?

Wunderlist

What book are you currently reading?

The Art of Non-Conformity

What is your productivity hack?

Empty inbox – every day

Favorite coffee shop to work from?

Loco Lounge in Harfield Village

How do people get hold of you?

Cape Coffee Beans:

https://capecoffeebeans.co.za