How to start Tea Business in India (7 Steps Ultimate Guide) 2020

How to start Tea business

Hi, and welcome to startuptadka.com, today we will see how to start Tea Business and How to grow it, Investment needed and Scaling, etc.

Table of content

  1. Market Research 
  2. Locations
  3. Investment 
  4. Make a Business plan 
  5. Tie up with Business 
  6. Have an Online Presence 
  7. Scaling 

1. Market Research

Market research is very important before starting any business because it helps in deciding which product you should sell, how much price you should keep for your Tea, can you survive against your competitors and many other questions.

You can get an answer to all of those questions, aftermarket research. So make sure that you do market research. 

2. Location

Location is one of the most important factors if you are starting any offline Business and places near Offices and stations can be ideal for your Business. 

You can also just take a look at other tea stalls in your area and you can find out where there is more demand.

3. Investment

An average making cost of per cup tea is 2 to 5 RS and you can easily sell it to 10 to 12 Rs it means you can easily generate 5 to 7 RS of profit per cup of Tea you sell. 

If you just sell 100 cups at 10 RS each per Day then your daily income will be 1,000 RS and your monthly revenue will be 30,000 which can easily recover your investment.

I have assumed a very little amount of cups per day in this example and it is easily achievable. You might have heard of Yewale Tea they are one of the biggest players in this industry, their every Franchise sells up to 1,000 to 2,000 cups daily, 

So now you can imagine that even if you sell a very low amount of cups per day then also you can be profitable and you can recover your investment within 1 or 2 Months 

You can start tea business with very low investment as well, like 5,000 to 10,000 but I think 30 to 50 Thousand is a decent investment so that you can also spend money on branding, marketing, and infrastructures like Chairs, tables, cups, saucers, and stove or gas. 

If you will invest 30 to 50 thousand then it will be a standard and branded shop rather than a little Tea stall. 

Shop rent 

5 to 10 thousand depending on your area 

Teacups and saucers 

2,000

20 Chair = 400 each 

8.000

4 Table = 4,000 each

20,000

Stove and gas  

2,000 

Utensils = Kettle and others 

1,000

Electricity Bills and others 

1,000

Branding and Marketing and other 

6,000 

Total 

Max = 50,000 and Min = 30,000

4. Make a Business plan

Expenses = Before starting any business you should calculate all the expenses, and after that how much profit you will get so that you can set your price accordingly.

Upsell and Downsell = Choose which product you will sell a upsell or Downsell, you can easily sell products like = Biscuit, Toast, and other bakery products.

You can also get some ideas of upsell and downsell from your competitors.

Find Wholesaler = Wholesalers play a very big role in making your business profitable, SO find wholesaler which will give you raw materials like Tea leaves, Milk, Sugar, etc. Before directly buying from any wholesaler meet 8 to 10 wholesalers so that you can get the market price of those products and which wholesaler is giving a lot of discounts. 

5. Tie up with Business

Making networks is one of the great strategies to grow your tea Business, So make tie-ups with other Businesses like offices, local stores, etc. 

Almost every Indian drinks tea at least once a day, So while working tea can be like an energy drink for office employees, So you can tie-up with companies and ask them that can we provide tea to their employees. 

6. Have an Online Presence

Even if you don’t have any online business, you should have an online presence on Google my Business and one website, So that if someone searches a tea shop near me then he can get your shop name and he can come to your shop. 

And not just that to have a website will also help to show you as a brand in front of your customers.  

Just choose your tea shop name and then hire someone or learn DIgital marketing and build a Website 

7. Scaling

If you want to grow this Business all over India and if you want to become a successful Businessman not a tea shop owner then you can start giving franchise of your Business to people, who want to start tea shop and make money. But before that, you should make your Business Profitable and sustainable.

So that you wouldn’t be facing issues after starting Franchise. Many popular brands in this industry have their Franchise Business Brands like Yewale Tea, Chaayos, CCD all of them are doing a great job in their franchise Busines and Making a lot of money from it.