Planning to start or expand a juice shop? Learn the key steps to start your business and secure the funding you need for growth!
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.
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:
Lenders |
Interest Rates Starting from |
Bajaj Finance Limited |
14% p.a. |
IIFL Finance |
16.50% p.a. |
FlexiLoans |
18% p.a. |
KreditBee |
18% p.a. |
Lendingkart |
19.20% p.a. |
Ambit Finvest |
20% p.a. |
Protium |
20.50% p.a. |
Indifi |
22% p.a. |
Credit Saison |
22% p.a. |
Aditya Birla Finance Limited |
22% p.a. |
InCred |
24% p.a. |
UGRO Capital |
24% p.a. |
AYE Finance |
29.50% p.a. |
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)
With just a few steps, you can get a business loan through Bajaj Markets. Here are the steps to apply:
Visit the Bajaj Markets website
Go to the ‘Business Loan’ page under ‘Loans’
Click on the ‘Check Offers’ button located in the right corner of the page
Fill in the basic details in the application form
Click on ‘Check Your Offer’ to proceed
The Indian Government offers a number of schemes for Micro, Small, and Medium Enterprises (MSMEs). You can benefit from these schemes and get funding for your juice business. Here are some schemes to consider:
Prime Minister Employment Generation Programme (PMEGP)
The PMEGP aims to help start and expand small businesses and MSMEs in India by providing financial support. For the manufacturing sector, the maximum project cost allowed is ₹25 lakhs, and for the service or business sector, it is ₹10 lakhs.
This scheme can help fund the setup of a juice business, allowing you to cover equipment, location, and operational costs.
Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTMSE)
The Ministry of MSME and Small Industries Development Bank of India (SIDBI) created CGTMSE to offer collateral-free loans to micro and small enterprises. Businesses can get loans of up to ₹5 Crores without the need for any collateral.
This scheme can help you secure funding for your juice business without the need to pledge any assets
Yes, juice and smoothie bars in India can be quite profitable. Compared to other food businesses, the raw ingredients required here are relatively inexpensive. You to sell the drinks at a higher price with a substantial markup.
Starting any business demands careful consideration. Some of the factors you need to consider include the business plan, associated costs, menu options, and getting the right equipment. Choosing the right location is also key. Look for places where people seek healthy refreshments, like near gyms, parks, offices, or colleges.
The best ways to attract customers to your juice shop include:
Offering a variety of juices and smoothies
Using high-quality ingredients
Investing in appealing décor and stylish cups, glasses and bowls
Maintaining strict cleanliness and hygiene
Before starting your juice shop, consider these potential risks:
Limited flexibility and creative control
High competition, as it is a popular business
Seasonal demand, with lower sales during winter