Tea is a popular drink in many countries. Besides being sold in various flavors, tea is also available with and without caffeine. The various antioxidants it contains also make it of high nutritional value. Starting a tea business can be a way to share this product with many people while making a profit. To do this, you can open an online shop, set up a shop, or create your own tea brand.
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Method 1 of 3: Creating a Tea Brand
Step 1. Evaluate existing brands
Creating your own brand is one way to start a tea business. You will buy unpackaged tea leaves from a supplier and make your own packaging and branding. In some countries with a strong tea drinking culture such as England, there are product brands that have been around for a long time.
- Research the brands, find out the factors that make them successful. Several companies market their tea products as nutritious drinks.
- While you're doing your research, look for gaps in the market or ideas that no one else has thought of.
Step 2. Create a clear image for your brand
While researching existing brands, formulate a clear picture of the factors that will differentiate your tea from other products. Clarity of vision will be very important to help you through difficult times in the future. Perhaps, you will market your tea as an alternative product to sugary drinks or drinks with unique and exotic flavors that can be consumed every day as a substitute for coffee.
- Once you have a clear vision, find a place in the market to promote your product and define your target audience.
- You should also be able to describe the unique things that make your tea brand different from the others.
Step 3. Develop a business plan
The important thing that all new business people need to do is create a clear and focused business plan. Planning is essential for establishing core values and business identity and mapping out your plans for success. Typically, a business plan will start with an executive summary and be followed by a company summary. Today, there are several online sites that can help you to develop a business plan in a basic template and provide sample documents to follow. Here are the things that should be included in the business plan:
- Goods and services. This section details what your business will sell, what your products are, and the reasons for selling them.
- Summary of market analysis. Here, write down the results of the market research that has been done and identify the specific area that will be the place for your product.
- Strategy and implementation summary. This section should provide a clear description of how you will grow your business. Start by getting your product to market and then detail your plan for growth with a clear timeline and targets.
- Management summary. In this section, detail how your business will be managed, what management style will be adopted, and how it will affect the culture and operations of the company.
- Financial plan. Here, you will have to make a financial description. Break down all the financing parameters, income and breakeven points for both, and indicate when you will be able to make a profit.
Step 4. Find a tea leaf supplier
You can buy tea leaves with or without packaging. Keep in mind that you will probably only repackage and sell them as soon as you receive them. Putting the tea leaves in the tea bags one at a time will take some time, but if you want to make them look and feel like home products, it can be a great option. Know exactly what kind of goods you will receive and ask for samples before the order contract is signed.
- First, find out about suppliers operating globally or locally near where you live. Use databases on the internet to start your search.
- Look for tea leaves that are sustainably produced and environmentally friendly so that you can run an ethical business and make it part of your brand identity.
- Visit trade festivals, read trade publications, have discussions with people from the tea industry. Knowledge and experience like this can be invaluable.
Step 5. Design and order product packaging
Once you have a clear supply route, move on to the next phase of product development which is designing the packaging and branding. You can hire a product and graphic design expert to do this. This stage will most likely have to be done using a high-quality computer so that all manufacturers can produce it.
- Remember that, in the early stages, you have to start small. Therefore, ask for a small number of samples and do a little promotion first.
- Since packaging will be the primary way for lay people to identify your brand, do this part with care. Try holding focus group discussions with people you trust to get honest input.
- Think about function as well as form. Do some research on the internet, seek advice from a professional designer.
Step 6. Make one sample tea box
Once the design plan for your brand has been drawn, create a sample or two with it. You should use the tea you are going to sell and package it the way you want it. After that, use the sample to promote your tea business in local shops and teahouses to spark interest and get a network of contacts before you sign a big order contract with a supplier.
- A product prototype allows you to test its durability and get an impression of its functionality and appearance.
- A prototype will also make others take your business more seriously. Your product has become a physical reality, not just wishful thinking. Having items you can hold and use will make a big difference to your business.
Step 7. Decide how you will make the sale
Once you have a clear picture of the brand you want, you will have to determine how to sell it. Would you just sell it on the internet, take orders and ship them anywhere in the world? Or will you sell it to local tea shops and shops? Or maybe both? Given how sales are a major part of your business, it's important to think about it as deeply as possible with a clear plan and target audience.
- Creating a website is easy enough to do, but nowadays there are tons of tea shops online. Therefore, think of ways to make your site look unique.
- If you plan to sell your product locally in person, make sure you do a demand interest survey first. Bring your samples, visit some local teahouses and shops and ask if they are interested in getting a new supplier.
Step 8. Register your business
Before you start a business, first find out all the business requirements and regulations in your local area. As this section can get very complicated, you should consult a legal expert who specializes in small and medium-sized businesses to ensure that all bureaucratic regulations are properly taken care of.
You will have to officially register your business name and apply for a Trading Business License (SIUP)
Step 9. Market tea on the internet and in person
Once you are ready to sell, start marketing the product. A marketing plan must be prepared from the time you develop a business plan. Try to market your brand in such a way as to accentuate the desired identity. Think about ways you can connect with potential buyers and look for things that can set your product apart from the rest.
- Using social media marketing campaigns can be an effective way to differentiate your product from other, older tea brands.
- A strong and consistent presence on social media can help define a product's brand identity. Also include recipes and facts about tea to expand your output.
Method 2 of 3: Starting an Online Tea Business
Step 1. Research the market
Before you make any decisions about starting a new business, do a thorough research of the global tea market and the wider tea business world. Search the internet for stories and statistics that can give you a broader view of tea. You will be able to get an overview of market conditions, where there is potential for growth, and where there is stagnation or decline. You can also look for the long-term development potential of an already successful tea business.
- Look for case studies of tea companies on national and international business and financial websites to learn about successful businesses.
- If you're starting an online business and want to sell your products overseas, it's important to get a broader perspective as early as possible.
Step 2. Decide what your business will do
In an ever-evolving entrepreneurial environment, determining the differentiating factors is critical. Like selling tea products with high-nutrition, luxury, or exotic slogans, identifying the specific corner of the business and running it is an important step. Think about what will make your business unique and different.
Step 3. Develop a business plan
After the steps above, you must draw up a clear business plan. Since the tea business can be a simple buying and selling business, you should make a clear and focused plan. Include the things that will make your business unique, write down the goals and strategies you will use to achieve them. Include all the necessary details as tightly as possible.
- Make a clear timeline with specific targets you want to achieve by certain dates.
- An example of a specific target would be the website's founding date and the period in which you will start earning profits.
- It is important to have a clear and achievable business plan, especially if you plan to get funding from a bank to support the initial costs of setting up.
- Look for examples of tea business business plans on the internet.
Step 4. Research the necessary legal requirements
As part of preparing a business plan, you must know and understand all legal requirements regarding the establishment of a new business. Examples are interest and taxes. Don't skip this stage because you need to get it right. Therefore, you should consult with a legal expert who specializes in starting new businesses.
- For an online business, you must think of ways to protect your customers' privacy and financial information.
- In Indonesia, online trading is regulated in Law no. 7 of 2014 concerning Trade.
Step 5. Find a supplier
Usually, the best and most popular teas come from the leaves, bark and roots of plants grown in China, Africa, and India. While you can get tea from many other places in the world, it is not necessarily as good quality as that grown in these three regions. Contact a company that has experience in exporting tea to various countries in the world.
- Make sure the suppliers fully know what kind of tea you want and agree on the nominal price before signing the contract.
- You can also consult with other tea business people to find out more about the reputation of certain suppliers.
Step 6. Create a website
The next stage is to create a website that will be the face of your store. Make it as attractive as possible because, on the internet, you will only have a few seconds to capture the attention of potential customers. Study other successful websites and try to follow these basic principles:
- Make navigation simple, fast and intuitive. Use a template so that all pages on your site have the same basic model.
- Create a clean page with just one or two typefaces using a white or pale background. Don't use video, images, or audio unless you really need it to reinforce product identity.
- Design it so that the buying process is just a few clicks away.
Step 7. Promote your business
Once your site is published with products ready to sell, attract as many visitors as possible. Try using pay-per-click (Pay-Per-Click, PPC) advertising to get new visitors. PPC ads appear directly on search engine pages so you can avoid the long process of moving your site to the top of search results. You can also use PPC advertising to test for the most effective keywords.
- Once you know which keywords appear most frequently, you can put them all over your site to optimize their appearance in search engines.
- Use analytical tools to assess site performance and find out where visitors are coming from.
Method 3 of 3: Opening a Tea Shop
Step 1. Research local teahouse locations
Tea is a product that is flexible enough to be sold directly or via the internet. If you want to open your own tea shop, follow the same steps as starting an online business. However, there are certain things that need to be adjusted. Since a shop will be a business with a fixed location, in researching the market, you need not only to look at global sales but also conditions in the local environment or location that will be used for your business.
- Look around and evaluate places that have the potential to make a teahouse a success. Think about the neighbors and other businesses that are already there.
- The presence of tea shops near the desired location indicates a high level of demand. However, this didn't mean the demand would be enough for two teahouses.
- The costs or sinking costs and liabilities for this type of business may be higher than for an online business. Therefore, research the local market in depth.
Step 2. Find the location
After you determine the potential area, look for a location that will be your place of business. Since this decision can determine the success or failure of your business, don't take it in a hurry so you won't regret it. Store locations will require walking paths, parking, and easy visibility and access.
- Also check whether there are teahouses nearby that can be purchased to save on furniture costs. However, it could be that the teahouse is being sold due to its bad location. Therefore, research the facts and conditions first.
- Keep in mind that when you are negotiating a rental fee, anything is negotiable. Don't stray from your goal and don't take risks if you don't like the owner of the place.
- Seek advice from legal experts regarding rental contracts and agreements.
Step 3. Draw up your teahouse business plan
The preparation of this plan is carried out using the same principles as the business plan for establishing an online tea business. Make a plan that is clear, concise, and achievable with the results of in-depth and detailed research. Development plans, goals, and strategies will vary for each store, but a clear timeline with estimated break-even dates and initial profit-taking periods should still be included and accounted for.
- Other points that can be included are the date of signing the lease, the date of purchase or supply of all necessary equipment, and the date of commencement of the promotion.
- Just like before, you can search and read examples of teahouse business plans on the internet.
Step 4. Build relationships with suppliers
As with online stores, you will need a solid and reliable supplier. Having a good supplier is very important for a physical store. If there are visitors who come and you don't have stock, don't expect them to come back. In the beginning, when you still don't know how many people will come to your shop, prepare a large stockpile.
Choose your tea carefully; test as many products as possible. There are many varieties of tea available; the one you choose will help shape your shop's identity
Step 5. Meet all legal requirements and secure the necessary funding
Register your business with local government offices and have a proper business bank account. Consult a legal expert who specializes in small businesses. Don't take risks with legal and financial manipulation.
- Bearing in mind that legal requirements will vary by region, make sure you consult a legal expert.
- Also find out all the necessary licenses and permits such as food hygiene and health certificates for you and your staff.
Step 6. Determine what will set your shop apart
Once the shop is ready to open, you need to be clear about how it looks and what will make it unique. In addition to having certain types of tea, you may also want to have a certain appearance and atmosphere that can attract the attention of potential customers. Decorations, music, and staff can make an important impression on shoppers.
- Tea and coffee shops can get regular customers who will provide a consistent income. While it's not easy to get to, if you can find a niche that hasn't been filled, the results will be great.
- As with the decor, don't neglect the equipment you'll be using to make tea and coffee. You can have a beautiful teahouse, but success will be difficult to achieve if the drinks are not good.
Step 7. Promote your shop before it opens
Promotions should be tailored to the type of business and target consumers and can be done on the internet, magazines, newspapers, or television. If you are opening a local teahouse, do promotions in the area. Try using promotions over the internet, on social media, with special offers to attract customers at the start.
- In an increasingly saturated market, it's important to emphasize what makes your teahouse unique and special.
- Think of the various ways in which tea can be marketed to attract different types of potential customers. Some people will be attracted by the properties of tea, some by its uniqueness and novelty.
- Update ads regularly to keep the brand fresh and attract new customers.
