Tea Business Plan in India this Year

Written by startup news

September 13, 2022

Tea Business Plan in India

Looking for more than just the basics on how to build a perfect tea business plan in India this year? You have come to the right place. Keep on reading the full article to get rid of all your worries regarding this startup.

Hello dear reader, hope you are having a wonderful day and looking forward to get all your doubts erased regarding tea business plan in India. As you may have already know that tea in India is not simply a beverage, a drink you take to get your senses working. Tea in India is an emotion. Not just in India, tea is preferred by a lot of other countries as well. So if you are looking for a startup idea in India, setting up a tea business can be quite beneficial for you. Before starting any business, it is essential to understand the basic concept of the business. Do not worry, in this article we will answer all your basic concerns regarding the said startup.

 

Spot the Business Opportunity before Building your Tea Business Plan

As you might already know that India is the second largest producer of tea in the whole world, the primary producer is China. It is no surprise that India consumes 70% of the production. This means an average Indian consumes 2 cups of tea every day. Adults can consume more than 2 cups on an average. Now you can decide for yourself if this job is profitable or not in the long run.

Not only for metropolitan cities, this startup is beneficial for small towns as well. If you are thinking about investing in a tea business, do not worry, our article have the right tea business plan for you.

How to make the Right Tea Business Plan in India

The first thing you are going to do is to create the right kind of business model. You need to know in the beginning, the business you want to set up in the future. For example is it a stall or a proper tea bar, the products you are going to sell in the future, what is going to be your pricing, how you are going to buy insurance, what is going to be your profit margins, what will be your assets along with how the customers are going to buy your products.

What our team suggests is that do not forget to give proper attention to your business plan. A proper business plan is what going to take you very far in this business run.

Do Proper Marketing Research

Before starting your business, you have to know the kind of marketing you are going to get involved with. You need to survey and thoroughly research the market to understand how you are going to get a proper customer base for your business.

You have to track the area where you can get the right kinds of customer, the variety of tea the customers prefer the most, the beverage they usually order in a cafe or a tea stall, what is the pricing customers are the most comfortable with and what they are looking specifically in their beverage.

Do not forget to engage in conversation with people who are involved in similar businesses. You have to understand what you are getting your hands into, this will enlighten you regarding what are going to be your requirements for the said business.

Your next aim should be to know your competitors in the market. To quote a famous saying, “keep your friends close and your enemies closer.”

What are going to be your basic Requirements

The requirements solely depend upon the planning regarding your tea business. Keep in mind whether you are going to open a cafe or a tea stall. For a small tea stall, you will not need large investment.

You will not need expensive material for setting up a tea stall. You simply need to generate a “desi” vibe, so the customers naturally get attracted to your tea stall.

An investment between INR 40,000-50,000 is suitable to go for in the beginning for a tea stall.

Similarly, a cafe will need more investment if you are thinking about setting one up. Specially for metropolitan cities, you will have to pay proper attention to the interior, the equipment, the furniture and the material required to make the cafe look aesthetically pleasing and authentic.

If you are interested in setting up a cafe, you might need investment from 40 lakhs to 50 lakhs.

Special tip from our team is to give proper attention to the aesthetics of your tea stall, if you are going to open one and specially to your cafe. You must have seen several cafe out there which looks so aesthetically pleasing that a person can’t help but to visit the cafe or the tea stall. You must have yourself felt getting drawn to such stalls and cafe, so make sure to give proper attention to the aesthetics.

What is a Profit Margin

The following data is given here for your reference.

Cost for a cup of tea per day:

  • For 30ml of milk- Rs 1
  • 10-gram sugar- Rs 0.50
  • Tea Masala 4 gram- Rs 0.30
  • 2.5 gram tea powder- Rs 0.75

Even if you will add extra cost to this, a cup will cost you around 3.5-5 INR. If you sell a cup for 10-20 INR, you will get a profit margin of Rs15.

For a tea bar, you can make an even larger profit. Your profit can range from 55-60 Rs for a cup in a cafe. Once you have established a cafe, you can make an even higher profit in the coming future.

Enhancing your Tea Business Plan

A well thought out plan is what is going to take you very far. You have to know if you want to run your business individually or you want to establish a partnership. Get the license for the tea stall or cafe and plan the taxes very carefully.

You have to learn to give proper thought if you want to get an ownership of a franchise. Franchises have become a great option for a business over a period of time. If you get involved with a franchise, you become part of a already established brand name. Another benefit is that you will get to use the resources from the main company.

Look for the Area Requirements

For starting such businesses, you have to start with a crowded and a popular location. You can choose to go for a market, school, or college because you will find much crowd in such places and the customers will be naturally more in number. It is advisable to select a large area such as 600 sq. Ft. and which is the center of attraction for the customers.

Proper Marketing

Now it is time to spread awareness about your business. If your products are good quality, there will be no problem in marketing your products. You should plan a decent customer base first, then send out flyers and pamphlets to promote your business. You can also use the strategy of creating a stable customer first and offer them discount as well.

How to Improvise

According to the reviews of your customer base, you can introduce different kinds of tea to attract various  customers. Snacks and light food goes well with tea. You can also go for innovative ideas such as providing delivery services to your customers.

Now that you have gone through all the steps by which you can start your own tea shop or a cafe in India, you can start preparing your own tea business plan fearlessly. Do not worry, with time your business will take off and you will be able to earn a fortune. Just don’t stop and keep on going forward!

 

I hope you found this article on tea business plan in India extremely helpful and highly informative. If you want to read similar content in the future, you can comment on our website. You can also comment what other articles you would like to read in the future. 

If you are interested in a handyman job, you can check out our article on handyman small business ideas by clicking here. 

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