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written by Khatabook | October 6, 2021

Learn About Starting a Tea Stall Business in India

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Tea is considered a traditional beverage in India, as it is a well-known fact that India is the second-largest producer as well as the distributor of tea globally. Establishing a tea stall business in India is one of the most profitable ventures. To start a tea stall business, it is not required to fund a large amount of investment or raw materials, due to which it is one of the easiest, quickest, and seamless running businesses all over India. On average, Indians consume around 70 cups of tea in a month which is approximately more than 2 cups per day. As the tea stall business is one of the easiest running businesses, it has a high market competition rate.

Did you know? 

Assam is the largest tea-producing state in India and the second largest in the southern state of Tamilnadu.

Initialising the Tea Stall Set up

The tea stall business in India is one of the greatest ideas to set up a profitable business. Tea is the favourite beverage of every Indian, due to which the tea stall at any location will attract customers. However, to set up a tea stall business in India, there are a number of factors that need to be considered:

Also Read: Establishing a Tea House Franchise in India

Planning and Targeting Audience

Tea stall business is considered a small business idea; however, it needs great planning to establish this idea, which includes market research and targeting the audience. The type of the tea stall also needs to be planned, whether the stall is going to sell only tea or might be able to vastly up the scale to sell food items along with tea. Planning and targeting the audience also includes deciding the tea stall design, setting the price of the tea, tea stall price, etc.

Ownership

With the increase in the tea stall businesses in India, a number of companies are ready to offer a franchise to a person who is considering starting up a tea stall business in India. An individual can open their own tea stall business on the basis of his experience. On the other hand, taking a franchise is the safer side for beginners.

Location

The location of the tea stall business is one of the most prior things to be considered. The tea stalls that are established near hospitals, courts, railway stations, etc., are comparatively more profitable than those tea stalls that are established in a local area. Therefore, the determination of the location is a major aspect of setting up a successful business.

Establishment

The establishment of a tea stall required some of the basic utilities, which are considered to be the necessary tea shop setup. These utilities include a cooking pan, sugar, milk, glass, gas, tea leaves, etc. Moreover, the chair and table are additional investments that are needed in the establishment of a medium-scale tea stall setup.

Basic Investment

The investment of a tea stall business basically depends upon the scale of the business, tea stall design, etc. However, the basic investment that is required in a tea shop set up is ₹1 Lakh. This amount includes all of the basic necessities that are required for the establishment of the tea stall business in India.

Legal Documentation

The tea stall business in India is increasing widely and greatly among every little corner of cities. The setting up for tea stall business is quite easy as well as it is quite necessary to safeguard the establishment. Therefore, there is a number of legal documentation that is required by the owner to have in hand to protect the tea stall business from a number of hurdles.

Registration

The registration of a tea stall business requires brief consideration of whether the business is a sole proprietorship or under a partnership firm. The tea stall setup is a small-scale or a large-scale business, under a partnership, that needs to be registered, either as a limited liability partnership or private limited corporation. A registered company or stall has a high chance of growing in the market as well as running seamlessly without any hurdles. 

Licence

A tea stall business is a food selling store that requires a licence from the Food Safety and Standard Authority of India (FSSAI), Which gives a full-fledged authority for the seller to produce, process, and distribute the food item without any hassle. Without a Licence, the stall is prone to a large number of problems that might arrive in the future.

MSME/SSI

Micro, Small, and Medium Enterprises (MSME) or Small-Scale Industry (SSI) registration is very much important for the tea stall setup. These registrations are based upon the schemes and the conditions adjourned by the government and the guidelines of the MSME Act, 2006.

Insurance

To protect the tea stall business from any disaster or incident, proper insurance is necessary. Having insurance protects and safeguards the risk factor of the business. Moreover, it provides relief to the owner, as it works as a financial aid during the time of requirement. 

GST Registration

A GST number is a compulsory need or legal documentation that is required for the smooth running of the business. The GST law defines several terms and conditions that are authorised by the Government of India.

Funding and Loan

The tea stall business is one such business that requires a low amount of investment. On the basis of all the raw materials required for the establishment of a tea stall, the minimum investment that is required for the start-up is ₹1 Lakh. Collecting such an amount of money is easy for a majority of people. On the other hand, many of them may not be able to collect such an amount, for which they can opt for a bank loan. It is required to consider and acknowledge the existing schemes of the bank loan. However, borrowing such an amount from a trustworthy person is a better option in comparison to bank loans.

Also Read: How to Start a Tea Time Franchise

Modernisation

Today’s world is the world of modernisation, due to which this tea stall business in India can be taken up to a certain level by establishing an online website for ordering. Building up a quality website to attract customers to order tea online is a great and innovative idea. Moreover, modernisation can also be used for the promotion of the tea stall business. The promotion and marketing through the Internet will boost the selling rate as well as enhance the reputation. Online featuring and promoting is the greatest way to get connected to a bigger and wider range of audiences. Though, the quality of the product is the basic thing that will increase as well as keep the audience rate constant.

Conclusion

Tea is one of the favourites and traditional beverages of India. Starting up a tea stall business is one of the smartest ideas. A tea stall business does not require a large amount of investment because the basic utility of a tea stall is tea leaves, milk, sugar, gas, etc. Therefore, the total amount of the investment is ₹1 Lakh which could be arranged easily by borrowing or collecting through the monthly income. However, before starting up a tea stall business in India, a lot of planning, research, proper registration, and insurance are required for the smooth and seamless running of the business.

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FAQs

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

Ans:

Before starting up a tea stall business, a lot of planning is required, which includes the decision of the location, targeting the audience, establishment of the stall, a proper investment along with which the registration of several legal documents is required. Applying insurance to safeguard and protect the business.

Q: Is the tea stall business profitable?

Ans:

An average Indian drinks more than 2 cups of tea in a day which sums up a quality business idea as the customer is flexibly fixed with the market. However, the investment in the tea stall is not very expensive as the basic requirements are the utensils, which is a one-time investment, and the raw materials, including milk, tea leaves, gas, etc., for the preparation of the tea. Therefore, a tea stall business is highly profitable if run in a proper and managed way.

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

Ans:

To start up a tea stall business and run it smoothly, there are a number of legal documents that are required to be considered. Some of the legal documentation required is the Food Safety and Standard Authority of India Certificate, Trade Licence, GST registration, companies’ registration, Insurance, and MSME/ SSI registration.

Q: What is the minimum fund required for starting a tea stall business?

Ans:

A tea stall business does not require any expensive raw material or utilities. The basic requirement of a tea stall business is milk, sugar, tea leaves, utensils, etc., which do not require a large amount of money. Therefore, the minimum fund required to start up a tea stall business is ₹1 Lakh.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.