Selling tea can be quite profitable, if you do it right. But we have also seen many tea businesses not reaching their greatest potential or even their first year trading anniversary!
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If you have been researching, feeling confused how to start, with small budget and / or maybe doing this on the side, this is for you.
So how much to set up a new tea business? The amount of investment depends on a number of factors:
- Do you plan to sell tea online or in a store front - tea shop, or a cafe with tea items, or only on-sell to shops like deli?
- Are you planning to on-sell other branded tea?
- Are you planning to have your own branded tea?
- Do you wish to hold stock?
- Do you have / need staff to start?
As a tea small business, I can tell you that start up costs can range anywhere from as little as $500 to $20,000+.
It all depends on what you are trying to accomplish.
And, let's not forget what you invest should generate a positive return. Sometimes we forget you pay for what you get, and at the same time, is there a TRUE demand on this item - have you tried to measure the potential of this product?
Tea is a competitive market overall. The tea commodity market is flooded with zillion options and unfortunately crappy, cheap teabags dominates the market.
When we first started 10 years, we did a SWOT analysis, tried to learn and sketch out a half-decent business plan. We researched for about 6 months, checking out potential competitors, seeing suppliers and drinking tonnes of tea.
But more importantly, we saw a gap. There were lots of pretty tea sites, ok, many were not pretty and in fact, amateurish, but the important thing is most were not SELLING tea, they were only showing tea products on websites like pretty brochures.
Australia is VAST and most areas are under-serviced when it comes to quality tea. With the advance technology of internet ecommerce, and Australia Post, we can reach these thirst tea lovers. So our business was born.
So there is no one fixed answer to how much it costs to set up a tea business. Many factors are involved. A shopping cart software can be from $500 to $50,000. You could choose to pay yourself a wage, or not. These are needed to be considered as well.
Get the essential steps to create your tea business now. Sign up for the Tea Biz Fast Start online course below.