Most of the people in India start their day with a cup of tea. This is the reason why India is the second-largest producer of tea in the world. But do you know, by doing business with this tea, you can move forward in the path of progress? If you also want to start a similar business in which the cost is less and the profit is more, then read this article of ours.
Tea Stall Business Plan – 2022 : Know How to Start a Tea Shop Business
Table of Contents
Everyone is aware of how much tea is liked in our country. This special love of people for tea is what makes the tea business the most beneficial. This is a profession for which you do not need any prescribed qualification. You can earn a lot of profit by running a tea shop or setting up a business selling tea. This business can also be started as a start-up for the first time doing business. Setting up a business tea shop or starting its franchise business can prove beneficial, but it largely depends on where you want to open a tea shop.
How to Start Tea Business?
1. Identify Target Customers
Tea business can be started with low investment, targeting customers in big and small towns and remote villages. Tea business is considered a small business idea, which can be run by any person without any major difficulties. However, business owners must identify the types of customers who live or work in specific locations and areas.
2. Starting a Tea Shop or Franchise Business
The amount invested in this sector decides whether you want to open a business tea stall or do a franchise business. Tea stalls can be opened with less investment as compared to the franchise business, as there is no need to invest much money in it. The franchise business model helps business owners to promote and sell different types of tea, with tea served from a tea bar or over the counter. Some popular types of tea include green tea, herbal tea, cardamom tea, black tea, iced tea, aroma tea, saffron tea, tandoori tea, etc.
3. Requirements for Starting a Tea Stall Business
The process of making tea cannot be complete without utensils, equipment, and raw materials. To make it, utensils, kettle, serving glass, glass holder, LPG cylinder, stove, milk, sugar, water, tea leaves, spices, etc. are needed. Apart from this, the workers working in tea stalls also have to distribute tea in many places like shops, markets, offices as per the requirement.
4. Location of Tea Stalls
The success or failure of any business depends on the place where the business is established. This is the reason why it is advisable to do thorough research before selecting any location for a tea shop or franchise business. However, a tea stall does not require a large space. But a tea bar requires an area of about 500 square feet to store equipment, utensils, and raw materials. Also, the arrangement of people’s seating can be done according to the available place and place.
5. Giving Legal Legitimacy to Your Tea Stall Business
To give legal form to any business, it is necessary to take certain permissions and licenses from the relevant authorities. Let’s know about them-
5.1 Determining the Name of Your Tea Stall Business
While determining your business name, ensure that the name does not match any company or business already registered in India. Always choose a name for your business that is most unique and that is easily remembered by people.
5.2 Company Registration
Small to medium-sized tea stalls can be set up as sole proprietorship or partnership firms, if possible. If the business also includes other partners, it can be registered as a Limited Liability Partnership (LLP) or a Registered Private Limited Company.
5.3 MSME / SSI registration
You can take advantage of government schemes and subsidies under the MSMED Act, 2006 by registering your business as a Micro, Small, and Medium Enterprise (MSME) or Small Scale Industry (SSI).
5.4 Obtaining a Trade License
Business licenses or trade licenses are state-specific. This means that these can be procured only from the states from where the tea business will be established or run.
It is mandatory for any business, enterprise, or business entity engaged in the manufacture, processing, production, or distribution of food articles to obtain a license from FSSAI.
Tea Business Plan in India
Any tea shop owner or franchise owner needs a well-prepared business plan. A business plan outlines the business background, related information, and related activities, which are related to financial institutions such as Public Sector Banks, NBFCs, Micro Finance Institutions (MFIs), Small Finance Banks (SFBs), and Region Rural Banks (RRBs). Helps in securing funds or loans from institutions.
A T-Business Plan includes information related to working capital investment, budget, labor/workers/employees information, marketing, and advertising strategies (for franchise business), equipment, machinery used, and raw materials. should be included.
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