How to Start a Juice Shop and Secure Financing for It

Due to growing health consciousness in India, and the country’s hot and humid climate, the demand for fresh fruit juices is on the rise. As a result, starting or expanding a juice shop can be a smart business idea. However, this requires careful financial planning, including getting funds for equipment, inventory, rent at an attractive commercial centre, working capital, and marketing.

To manage these important costs, consider taking a business loan for a juice shop. This way, you will secure the capital needed to bring your business idea to life.

Opening a juice shop can be a lucrative business venture, especially with the rising demand for fresh and healthy drinks. Here is how to set up a juice shop:

1. Choose Your Business Model

The first step is deciding on your business model. You need to determine whether you want to run a fresh juice bar or a pre-packed juice business. 

If you are starting out with a limited budget, a fresh juice shop is a great option to begin with. You can always expand later and introduce pre-packed juices as your business grows. 

2. Create a Seamless Business Plan

A thoughtfully designed plan is essential for guiding your juice shop to success. Your plan should include:

• The type of juice shop you want to open

• Expected revenue and profit margins

• Operational expenses

• Marketing strategy 

• Analysis of competitors in your area and beyond

• Opportunities to scale up 

• Expansion and diversification avenues 

• Branding ideology and USPs

3. Choose the Right Location

Location plays a crucial role in the success of a juice shop, whether you want to restrict yourself to deliveries or not. Choose a place that has a high population and easy access. Consider locations like:

• Near parks or gyms where people go for physical activities

• Close to college campuses where students have refreshments

• In busy commercial areas with plenty of offices

• In central districts with well-connected delivery routes

4. Get the Necessary Licenses and Registrations

To legally operate your juice business, you will need to obtain the right licenses and registrations. Some of these include:

• Food Safety and Standards Authority of India (FSSAI) license

• Goods and Services Tax (GST) registration

5. Design Your Menu

A thoughtfully designed and varied menu will appeal to a broad customer base. Here are some ideas to consider:

• Unique mixed fruit juice combinations

• Fresh juice with added pulp for extra texture

• Blends of fresh fruit and vegetables

• Fizzy juice drinks with soda

• Healthy smoothie bowls with granola and fruits or vegetables

• Addition of shots like wheatgrass, protein and more 

• Options across dairy and non-dairy additions

6. Purchase Essential Equipment

To operate your juice business effectively, it is crucial to have the right equipment. Some key items you will need include:

• Commercial-grade juicers 

• Cold press slow juicers 

• Fruit and vegetable peelers

• A cash register and billing machine

• High-quality blenders

• An ice machine for cold beverages

• Tables, chairs and a pleasing décor if you plan to have a seating area

For your juice shop startup in India, you will need to get various licenses and registrations. Here are the essential ones:

Business Registration

To start a fruit juice business, register it with the appropriate authority. Choose a legal entity like:

• Limited Liability Partnership (LLP)

• Partnership

• Sole proprietorship

• Company

You can register as the following:

• One Person Company (OPC)

• Private limited company

• LLP with the Registrar of Companies

• Partnership with the Registrar of Firm

• Sole proprietorship

Business License

Get a Non-Objection Certificate (NOC) from your local authority, like from your municipal council. 

GST Registration

If your juice business is covered under the GST law in India or operates through an e-commerce platform, you need to get a GST registration.

FSSAI License

Register with the Food Safety and Standards Authority of India (FSSAI) based on your turnover and manufacturing capacity. You must also test bottled juices to keep up with food labelling regulations to guarantee they are safe to consume.

MSME Registration

Fruit juice businesses with an annual turnover of less than ₹250 Crores and investments below ₹50 Crores are eligible for MSME registration. By registering, you can access many benefits, like easy access to financing. 

Trademark Registration

Though not mandatory, it is advisable to apply for trademark registration. This protects the brand name and logo. A new or existing juice business with a unique name should consider trademark registration to protect its originality. 

To manage the costs associated with starting this business, you can get a loan for a juice shop.

Why You May Need Financing

You may need a loan for opening a juice shop for the following reasons:

• Daily Ingredients

You will need to allocate funds for a range of fresh produce, such as fruits, vegetables, dairy, sugar, seeds, spices, and more. If you are offering specialised options like vegan or organic juices, the cost of sourcing high-quality ingredients may be higher. 

• Equipment

Starting a juice business requires essential equipment like high-quality juicers, glasses, and bowls. If you plan to offer smoothies, you will need blenders and other specialised machines. You will also need a refrigerator to store perishable ingredients, such as fruits and vegetables.

• Other Costs

Managing payroll, paying electricity bills, rent, and other such liabilities can be challenging, especially during lean periods. You can explore loan options for your juice business to cover these necessary costs.

• Expanding Your Business

If you notice increased revenue and demand in your area, you may want to expand by opening more branches. To fund this growth, explore financing options that can provide the capital needed to expand your juice business effectively.

Business loans can provide multiple advantages for entrepreneurs and business owners. Here are some benefits of obtaining a business loan:

• Quick Access to Funds

Most financial institutions disburse loans quickly after you apply. This allows you to manage costs without delays. You can get the funding at competitive interest rates and flexible repayment options.

• Managing Operational Costs

Loans help cover day-to-day expenses like salaries and bills. This ensures smooth operations, even during busy or slow periods.

• Supporting Business Growth

Loans help expand and grow your business by providing the necessary capital. With the funding, you can open new locations, upgrade your technology and equipment, or launch new products.

• Saving on Taxes

Interest on business loans is tax-deductible. This lowers your overall tax liability and helps save money in the long run.

You can consider applying for a business loan through Bajaj Markets. This platform allows you to compare various lenders and apply with minimal formalities. Here are the interest rates that some partner lenders offer:

Disclaimer: The mentioned rates are subject to change at the lender’s discretion.

Different lenders set different eligibility criteria that you need to fulfil to get approval for your juice shop loan. However, these are the basic criteria:

• Age Range: Between 21 and 60 years

• Nationality: Indian with a strong CIBIL score

• Applicable to: Self-employed individuals in non-professional roles, such as traders or manufacturers

• Business Categories: Includes partnerships, LLPs, and private limited enterprises

• Professional Background: At least 1 year of operation in the current business and a total of 5 years of overall experience

• Financial Requirement: Annual income exceeding ₹1.5 Lakhs as reflected in the ITR

You will also need to provide some paperwork to get approval for a loan for a juice shop. Here is a list of the documents:

• Identity Proof: Passport, PAN/Aadhaar card, Voter’s ID, Driving licence

• Address Proof: Lease agreement, Aadhaar card, utility bills, passport

• Income Proof: Bank statement (last 6 months), ITR, income computation, Profit and Loss (P&L) statement and balance sheet (previous 2 years)

• Business Proof: Sole Proprietorship Declaration, Partnership Deed, certified copy of the Memorandum and Articles of Association

To secure financing for a juice shop in India having a strong credit profile can be helpful. Lenders assess both your personal credit score and company credit reports to determine loan eligibility and terms. 

Your personal credit score, provided by credit bureaus like TransUnion CIBIL, ranges from 300 to 900. A score above 750 is often considered very good and can increase your chances of obtaining favourable loan terms. Such a score usually reflects an overall positive credit history, including timely repayments and credit utilisation. 

The Company Credit Report (CCR) is also vital. It offers a comprehensive overview of your company or business’ credit history, including credit exposure and repayment behaviour. The CIBIL Rank, derived from the CCR, ranges from 1 to 10, with 1 being the best. A lower rank indicates better creditworthiness, improving your chances of loan approval. 

Maintaining a strong personal credit score and CCR is essential to secure a business loan and establish your juice shop.

With just a few steps, you can get a business loan through Bajaj Markets. Here are the steps to apply:

1. Visit the Bajaj Markets website

2. Go to the ‘Business Loan’ page under ‘Loans’

3. Click on the ‘Check Offers’ button located in the right corner of the page

4. Fill in the basic details in the application form

5. Click on ‘Check Your Offer’ to proceed