From Çay in Turkey and Cha in Korea to Chai in India and Russia, the language of tea is universal, and the power it holds in bringing people together knows no bounds. Like millions of people worldwide, Indians too start their day with a hot beverage such as tea and coffee, and while coffee too is consumed by Indians with fervour, it is often chai that brings contentment like no other.
It was found that for every cup of coffee consumed in India, there were thirty cups of tea consumed. On average, an Indian consumes up to two cups of tea daily, and this number could increase depending on the weather and their mood. This itself sets the foundation for starting a tea shop business in India.
With the prospects that the tea business offers, it is recommended that you start a tea shop business in India. As an entrepreneur, starting a tea shop business can be the most flexible business idea since no particular level of investment is required. You can start a tea shop business with any budget. If you are looking to start your own business in 2022, you must consider setting up a tea shop business plan.
This article will talk about everything you must know to start a tea shop business in India and lay down a tea shop business plan that can act as a guide to setting up your own tea shop business in 2022.
Table of Contents
Understanding the Tea Shop Business Market in India
As we speak about starting a tea shop business in India, it’s essential for us to first look at the tea shop business market in India. Tea is popularly known as ‘chai’ in India which is the second-largest producer of tea globally. This country holds the title for highest tea consumption in the world. In India, nearly every person in both rural and urban areas consumes tea, thanks to its taste and health benefits that accrue to individuals. We can all agree that starting a tea shop business is a great way to set up your own independent small business.
What Are the Requirements To Start a Tea Shop Business in India?
The basic requirements for starting a tea shop business in India are as follows:
- Boiler, i.e. machinery or equipment used to make tea
- Ingredients to make tea (such as tea leaves, tea powder, sugar, and milk)
- Utensils (such as tea-making pans and teacups)
- Chairs, tables and benches
Things to Keep in Mind Before Starting a Tea Shop Business in India?
We could all agree that tea is one of the oldest known beverages globally. Before you get down onto the field and start your tea shop business, here are a few things you must know.
- Understanding Tea Leaves – Anyone entering the tea business in India needs to learn about the different herbs involved in making different types of tea, such as Green Tea, Yellow Tea, Black Tea, White Tea, Oolong Tea, and so many more. You need to have a basic understanding of the different kinds of tea leaves involved in making tea.
- Understanding Key Competency – Before you set up your tea shop business in India, you must understand your key competencies. You must be able to define your primary audience and be well aware of your unique selling point. You should decide whether you have a space in the market to make good profits.
- Understanding Target Audience – The next most important component you must keep in mind is your target audience. Whether it’s a small tea shop business or a large one, you should keep in mind your target audience. Formulating a unique marketing and promotional strategy for your tea shop business is of significant importance.
- Planning Your Storage – The most crucial part of running a tea shop business in India is the aspect of storage and procurement. You need to handle all your raw materials in such a way that they are not infested until you deliver them to the final customer.
How Should I Register My Tea Shop Business in India?
Every business must be registered under legal authorities and licensed by respective regulatory bodies. The licensing conditions will be a type of business model such as sole proprietorship, partnership, company, etc. Hence, registering a tea shop business includes obtaining a trade license from the state where you operate your tea shop business.
The tea shop you set up must have a Food Safety and Standard Authority of India (FSSAI) certificate. In India, this certificate is mandatory for every business engaged in the production, manufacturing, processing, and distribution of food or other food-related products. Hence, you need to register your tea shop business and procure an FSSAI Certificate as it acts as proof of your business and a source of security while giving you other business benefits.
On the other hand, apart from obtaining an FSSAI certificate, it is also mandatory for you to obtain a GST (Goods and Services Tax) certificate. According to the current GST law laid down by the Indian Government, every new tea shop business must register itself under the GST Act of India. While talking about GST Registration, we should also speak about MSME registration. MSME, which stands for Micro-Small and Medium Enterprises, is a regulatory board at the apex of all small and medium scale businesses in India. However, you don’t need to register your tea shop business as an MSME. You can avail financial assistance from the various schemes offered by the Ministry of MSME to run your tea shop business in India.
We hope that this article has helped highlight all the important areas you must look into while planning to start your own tea shop business. It is crucial that you have a well-thought-out tea shop business plan in place and have all other resources concerning raw materials, capital, finance and labour planned before starting your tea shop business in India.