Tea Shop Business Plan

• 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.