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Tea is available in abundance in India, which makes it an economical business idea. To start, you need minimum capital, manpower, and infrastructure. Here is a tea business plan to initiate.

A Step-by-Step Guide to Starting a Tea Shop Business

Mentioned below is the step-by-step guide that may help you establish a tea shop business in India:

  • Initialising the Tea Stall Set up

Undoubtedly, establishing a proper tea stall in India is an ideal way to form a profitable business. This is because tea is a popular beverage loved by almost everyone. Due to this reason, tea stalls at any location drag the attention of multiple customers. 

  • Planning and Targeting Audience

Although the tea stall business is a small enterprise, it still requires an effective business plan comprising thorough market research. You need to plan the kind of tea stall you need to establish and determine the target audience. 

Also, you need to determine whether the stall will be selling only tea or some food items as well. Planning and targeting the audience also comprises determining the design of the tea stall and deciding the price of tea, biscuits, snacks, etc. 

  • Ownership of Tea Shop

The business owner plays an important role in determining the policy and roadmap of the business. In addition, they should have the skill and right to make strategic decisions so that their business flourishes without hassles. 

In India, with the rise in tea stall businesses, many big companies are offering franchise opportunities to individuals planning to establish a tea stall business. So, you can commence your own tea stall or get a franchise, depending on your financial capacity and other resources.  

  • Location 

While making a tea business plan, another important factor to keep in mind is the location of the tea stall. This comprises the locations where tea is in demand on a daily basis, such as hospitals, office areas, courts, railway stations, etc. 

Given the high demand, owning a tea stall in such areas can be more profitable than in areas with low demand. 

  • Establishment

Establishing a tea stall needs some general utilities, which are highly essential. These utilities comprise vending machines, ingredients like tea leaves, sugar, milk, etc., along with things like kettles, cups, stoves, chairs, and tables or benches. 

 Furthermore, as a business owner, you have to decide the type of tea you want to sell. Some popular kinds of tea comprise masala tea, green tea, cardamom tea or Elaichi chai, herbal tea, black tea, iced tea, aroma tea, kesar tea, etc.

  • Investment/Raising Funds for the Tea Shop

In general, the investment in a tea stall business in India depends on its nature, size, tea stall design, and so on. However, a basic investment of at least ₹1 Lakh is usually required while establishing any tea stall business. 

 This amount encompasses all the necessities for establishing a tea stall business. You can apply for a business loan to get the required funds.

  • Legal Documentation

With the increasing number of tea lovers, the tea stall business has been increasing at a staggering pace in every corner of India. Even though setting up a tea stall is quite effortless, it is mandatory to undergo legal documentation to avoid unwanted legal consequences. 

  • Registration

Registration of a tea stall business means obtaining a trade licence from the state government wherein you want to establish the tea business. If it is a small to medium-scale tea stall business, you can register as a sole proprietorship or partnership firm. 

Now, in case there is a ‘partner’, the firm will be registered as a Limited Liability Partnership (LLP) or Private Limited Company.

  •  Licence

Obtaining a Food Safety and Standard Authority of India (FSSAI) licence is necessary. It is mandatory for all businesses involved in the production, processing, or distribution of food items. Without this licence, the business can come across a plethora of problematic situations, which may ruin its prospects.

  •  GST Registration

Besides getting registered, it is also mandatory for a tea stall business to get the Goods and Service Tax (GST) registration. This is because every business needs to register themselves under the GST Act, as stated in the current GST Law in India. 

 

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Eligibility Criteria for Getting a Business Loan to Start a Tea Shop

The following are the eligibility parameters to get a business loan for starting a tea shop:

  • The applicant should be an Indian citizen

  • The applicant needs to be a self-employed individual 

  • Age of the applicant must be between 25 years and 65 years 

Having a crystal-clear idea about the tea shop business plan may help an individual who is planning to establish this business. However, before making a plan, it is necessary to determine the financial structure. 

In addition, follow the step-by-step guide as stated above to establish your tea business successfully. If needed, get instant business loans from Bajaj Markets and ensure your business is never short-funded.

FAQs for the Tea Shop Business Plan

What is the basic planning required to start up a tea stall business?

Before establishing a tea stall business, sufficient planning is necessary. The business plan comprises choosing the location, targeting the audience, establishing the stall, investment, registration, and so on. Furthermore, it is necessary to get insurance to protect the business.

Is the tea stall business profitable?

On average, people consume more than 2 cups of tea daily, so it could be a prospective business idea to get started. 

Moreover, investments in a tea stall are usually inexpensive. This is because it has small requirements like utensils, gas systems, milk, tea leaves, etc., for preparing tea. Hence, the tea stall business can be substantially profitable if managed properly.

What is the legal documentation required for a tea stall business in India?

To commence a tea stall business, you have to consider its legal documentation process. Some legal documents required comprise the Food Safety and Standard Authority of India Certificate, GST registration, companies’ registration, trade licence, insurance policy, and so on. 

What is the minimum funding required for starting a tea stall business?

There is no need for any costly raw materials or utilities while commencing a tea stall business. Hence, no large sum of money is required. However, while starting a tea stall business, you have to invest a minimum sum of ₹1 Lakh.

What kind of locations are best for starting a tea shop?

Location is one of the most important factors that an entrepreneur should keep in mind while establishing a tea stall business. Generally, a tea stall may attract many customers if its location is in areas like parks, hospitals, railway stations, colleges, offices, courts, etc.

What are the expected profit margins for a cup of tea?

The cost to prepare a cup of tea ranges between ₹3 to ₹5. Now, if a tea business sells that tea for ₹8 to ₹10, they will be able to gain a substantial profit of at least ₹5. A business may even keep the selling price of the tea to ₹15 or ₹20 as per the location. As such, the expected profits depend on the price at which you sell and how much it costs for you.

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