Importance of Tea Business
Most people in India start their day with a cup of tea. Everyone has their own habits of drinking tea. Some want tea in bed, some after brushing their teeth, some at the breakfast table and some sip tea while reading the newspaper. Drinking tea is a part of our Indian nature. Whether it is father returning home from work or brother studying till late night, tea refreshes everyone’s mood. Not only this, there is often a crowd of people at the tea stall outside the office. Some like ginger tea, some like cardamom tea, some like spice tea and some like lemon tea. Now, while the Prime Minister of the country also says that he used to sell tea in his early days, the importance of the profession of making tea and serving tea to people is increasing. Be it a bus journey or an air journey, our love for tea never breaks. When Bollywood actors come on TV and tell which tea they drink, their fans also become sentimental. The craze for tea in India is so huge that even educated engineers have opened tea startups.
How to start your own tea cafe
Overview of Tea Business in India
First of all, let us know how big is the tea business in India. After China, our country i.e. India is the second largest tea producer country in the world. We Indians drink so much tea that in the year 2020 alone, 1.210 million tonnes of tea was consumed in India. By the year 2026, it will reach 1.40 million tonnes. Apart from this, India is also a big exporter of tea and in 2017 we were at the forefront in exporting tea. Here, West Bengal and Assam have the highest tea production. 80% of the tea produced in India is consumed here and the rest is sent out. So usually an Indian drinks two cups of tea a day on an average rate and this is the reason why the Indian tea industry is worth 10 billion dollars and is growing every year. A 2015 report stated that the Indian café and tea bar market had reached ₹1820 crore and was growing at the rate of 20% annually.
profit in tea business
So if you are also fond of drinking tea and have a passion for serving tea to people, then you can open your own tea stall, tea bar or tea cafe and earn a good profit by becoming a part of this billion dollar industry. And now if we talk about how much profit is there in a cup of tea? So the thing is that whenever it comes to any business, the first thing that excites us is profit. And in India, tea is a part of lifestyle, so making money from this business is not a big deal here. In the present day, that is, in today’s time, go to any city, a cup of tea is not available for less than ₹ 10. In this regard, if a simple calculation is done, then the cost of a cup of tea would be up to ₹ 3. Even if ₹ 5 is assumed and you are selling tea for ₹ 10, then also the margin is 50%. So if you sell a minimum of 200 cups of tea per day, your net profit per month will be Rs 30000. This means that the more the sales, the more the profit.
Steps to Becoming a Successful Tea Entrepreneur
So let us now know how to start a tea business to become a successful entrepreneur:
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Getting a license : It is important to get a license. Getting the right license before doing any work protects you from legal issues, because peace of mind is very important in business. Because many times you must have seen or read in the news that while removing encroachment, vendors doing their business on the roadside are removed. That is why if you are a license holder, you can make a claim or ask for compensation. If it is a small scale business, then you can get a license from the Nagar Nigam or Municipal Office of your area and if it is a large scale business or you are opening a tea bar, then you can get a license from FCCI and a fire safety license from the fire department.
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Right location : Now let’s talk about the right location. The location of any business matters a lot for its success or failure. So if you want to open a tea stall or a tea bar, choose a place where people keep coming and going, like a market place, office area or a square. And if you are planning a tea bar, then a shopping mall or a big residential area can be a better option. Obviously, you will have to do a little market research for this and after choosing the location, you will also have to take care of the comfort of the customers. Yes, for many people, tea is not just about drinking a cup of tea. Some like to gossip with tea, while some people even finish business meetings. Couples also come on dates and friends also come to have fun. That is why if your tea stall is spacious, has a good space, then people will spend more time there and remember that the public reaches more where they see a crowd. Well, if you have chosen the option of opening a tea bar, then you can also keep a washroom facility. Apart from this, decoration color and basic hygiene will boost your business. Ultimately everyone likes to maintain standards in their life.
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Feedback : Now let’s move ahead and talk about feedback, that is, taking feedback is always considered a good way. There are two ways to do tea business. First, either you make good tea yourself or second, you hire a good tea maker. In both these cases, it is important to take feedback before launching your product in the market. First invite your friends, relatives and your well-wishers for tea, then serve them tea and take their feedback. If the feedback is positive then you are good to go and if there is a need to improve something then do that and if the people you have invited for tea are among your trusted people then you can also discuss your business idea with them, who knows you may find an investor or business partner.
Creating a Brand Name for Your Business
So after doing all this, now comes the turn of the name, it is important to have an eye catching name. Business is all about an identity. When any person starts doing business, then along with good income, his second biggest motive is fame, that is why if you want your business to become your identity, then a brand name is very important. If we talk about some famous tea joints in India, then you will find many names like Chai Yos, Chai Sutta Bar, Chai Villa which have made tea lovers crazy about them. A brand name is also important because tomorrow if you are able to progress in business, then people will want to join you and also invest in your business and if this happens, then you can also earn royalty by giving franchise, isn’t it a good option!
Ensuring successful operation
And now along with this, there is a need to pay attention to some things, that is, it is also important to take care of the basics among the big things. To make tea, you will need all these ingredients like kettle, LPG cylinder, stove, serving glasses, glass holder, milk, sugar, water, tea powder or masala. Now their selection will also depend on how big your business is and who your target customers are. Nowadays fashionable and trendy things are available in all these things, which will give an authentic look to your tea bar or cafe, which will make your customers feel good. Anyway, today’s youth wants to experience something different and unique.
Diversifying your tea menu
Now let’s talk about variety in business which is very important. On hearing the name of tea, the most basic recipe of tea comes to mind, but if you keep variety in tea then you will be able to reach more customers. Along with basic tea, there are many options available in the market like lemon tea, honey ginger tea, saffron tea, masala tea, malai wali tea, lemon grass tea and people need to see something new around them, they definitely try it once. So in such a situation, if the taste of the cup of tea served by you gets on people’s tongue, then they will definitely become your regular customers and will also give suggestions to people about your tea. Remember, mouth marketing is the biggest publicity.
Legal structure and marketing
Whether small or medium, tea stall business can be registered as sole proprietorship or partnership firm and if any partner is evolving then business can also be registered as LLP or Limited Liability Partnership and Private Limited Company. This registration is done under the Registrar of Companies Ministry of Corporation Affairs of Central Government. Now when it comes to loan, whether loan is available for tea stall or tea bar, then the answer is absolutely yes, nowadays there is loan facility for almost any business. If you go to the bank after making a detailed project report or DPR of your business, then you can get a loan. Some points that should be kept in mind while making DPR are Introduction to Project and Industry, Present Condition of the Business, Marketing and Selling Plans, Cost of Project and Cost of Production and Profitability. By the way, you can also take the help of a CA or lawyer to make DPR. Also, if you have registered in the small scale industry under Micro Small and Medium Enterprise (MSME), then you can also get subsidy from the government under MSMED Act 2006. You can see all the details about government schemes by visiting msme.gov.in. Now if we talk about marketing, then do not give up on social media at all. This means that in the age of internet and online marketing, your social media and online presence is very important, that is why if you are starting your business, then from day one, definitely create a page and channel on Facebook, Instagram and YouTube where you can post videos of tea, reviews and experiences of your customers. Ever since Google has given the Near Me facility with searching options, people are using it a lot, so in such a situation, if you come in the search result, then the chances of business growth will also be high.
Conclusion: Starting Your Own Tea Business
So after knowing about all these things, now comes the matter of investment. The tea business is so easy that you can start it with ₹5000 and how much you have to go up depends on your business scale and type of services. If your service and quality of tea is good then there is no dearth of tea drinkers in India. Therefore, there will never be a need to look for customers. Nowadays people are also doing home delivery of tea. Take the tea business only, in big cities like Delhi, Gurugram, Mumbai, Faridabad, Noida and Bangalore, their overall turnover is up to ₹70 crores. That is why with the right business plan and dedication, you too can be successful.
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