Start-up Funding | |
Start-up Expenses to Fund | $18,550 |
Start-up Assets to Fund | $45,413 |
Total Funding Required | $63,963 |
Assets | |
Non-cash Assets from Start-up | $30,413 |
Cash Requirements from Start-up | $15,000 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $15,000 |
Total Assets | $45,413 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $0 |
Long-term Liabilities | $53,633 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $0 |
Total Liabilities | $53,633 |
Capital | |
Planned Investment | |
Owners | $10,330 |
Other | $0 |
Additional Investment Requirement | $0 |
Total Planned Investment | $10,330 |
Loss at Start-up (Start-up Expenses) | ($18,550) |
Total Capital | ($8,220) |
Total Capital and Liabilities | $45,413 |
Total Funding | $63,963 |
Jasmine Teahouse will specialize in premium teas, fine chocolates, and gift baskets. Our full “teahouse” experience is complemented by an assortment of loose teas, premium chocolates, tea accessories and gift baskets, all suitable as souvenirs and gifts for our tourist customers. Our goal is to be a destination store for visitors, and a resource for locals seeking gifts, new experiences, and knowledge of tea.
52 kinds of tea
Our tea-tenders will know the best brewing temperature and time for each of the 52 kinds of teas we offer. These include straight black teas such as Assam, Ceylon, Darjeeling and Keemun, blends like Chai, Earl Grey, and our own creations, like “New London Garden Party,” a Ceylon/Vanilla/Jasmine blend. We will also offer a range of green teas, which are becoming more popular with the proliferation of local sushi restaurants. Jasmine Teahouse’s no-caffeine herbal infusions range from flavored rooibus to fruit blends and medicinal brews (chamomile, ginseng, etc.).
All of these teas are available hot, iced, or loose for customers to take home and brew at their leisure.
Pastries To complement our beverages, we will offer a small selection of freshly-baked pastries from a local bakery. Our alliance with this bakery allows us to offer high-quality baked goods at a reasonable price, in exchange for co-advertising. These items are not intended as a staple of our overall profit structure, but help us to create the whole-service feeling of a real teahouse, without investing in cooks, bakers, or kitchen equipment. Based on market research, we believe that up to 2/3 of our sit-down clientele will order a cookie, piece of cake, scone, muffin, or savory croissant with their tea. Not offering such treats could lose us customers.
Chocolates In keeping with our upscale, indulgent feeling, we will sell premium chocolates such as Godiva, Scharffen Berger, and Garrison, as well as environmentally-friendly ones like Dagoba and vegan chocolates. We will offer a limited selection of truffles and dipped chocolates (like chocolate covered cherries, orange peel, and candied ginger), and a wider array of loose bars and chocolate gift baskets.
Coffee We are a teahouse; we focus on tea. Since we are not intending to compete with coffee giants such as Starbucks, we brew only one kind of coffee daily, to satisfy those accompanying true tea lovers on their visits to our store.
Tea paraphernalia Tea paraphernalia includes specialty teapots, teaballs, decorative tea tins, “art of tea” books, and various small, seasonal, non-food, tea-related items.
Gift Baskets We offer a selection of pre-made gift baskets, and will work with customers to create custom baskets for any occasion. Our tea tins come in a range of sizes and designs, and we will keep at least five colors of baskets and liners in stock at all times.
The Tea Market
The American tea market is growing rapidly. Tea sales have increased 165% since 1990, with the number of tea rooms offering sit down service rising about 15% to about 1,500 shops. The number of tea rooms selling loose tea and accessories rose over the same period to about 200 shops.
American interest in tea certainly owes some of its increase to the proliferation of gourmet coffee shops around the country in this same period. Most of working America has accepted the idea of expensive hot beverages as affordable luxuries, thanks to the marketing efforts of Starbucks, Seattle’s Best, and so on. At the same time, fashion is always on the move – now that fancy coffee drinks are so widely accepted, savvy consumers are looking for new, more unique treats to enjoy. Starbucks estimates that 7% of its $12 billion annual sales currently come from tea.
Spurred by studies touting tea’s health effects, and increasing familiarity with Asian and South Asian cuisine and its tea customs, American consumers have been turning towards tea as a more original, more “natural” affordable luxury. In addition, the cultural connection of tea with all things “civilized” (largely from American understandings of British high tea) has made tea knowledge, including the choice of a favorite teahouse, a mark of sophistication among many American middle class women.
Simsbury itself is a rural town getting slowly gentrified, and gradually adopting the sophisticated tastes of its tourists. Recent moves towards organic farming in several of the surrounding towns reflect the changing tastes and priorities of local residents. Local high schools have seen dramatic increases over the last 10 years in the percentage of juniors and seniors enrolled in courses for college credit – newer residents are much more concerned with education than their predecessors, as the community’s affluence grows. All of these trends bode well for the success of an upscale teahouse.
The Chocolate Market
Annually, $408 million of premium chocolates such as Godiva, Scharffen Berger, Ghirardelli and local private labels such as Garrison’s are sold throughout America. Despite the 19% per year growth rate from 1996-2002, the U.S. chocolate market has not yet matured, leaving room for continued growth. Europeans consume twice as much chocolate as Americans, with a per capita consumption of 22.4 pounds vs. 12.2 pounds. It is estimated that the premium chocolate market will grow from 408 million dollars per year in 2002 to 1.2 billion dollars per year by 2005.
Market Size
Locals Hartford County’s population is 885,000 people, with 80,000 living within a 5 mile radius of Simsbury Center. Of these, 37%, or 30,000, are between the ages of 25 and 60 – our target age group. Given our upscale comestibles selection and prices, and based on U.S. census data for local income levels, we estimate that roughly 2/3 of these of these people have pre-existing brand loyalties or economic constraints that would discourage them from visiting our teahouse. Our local target market is therefore roughly 10,000 people. Tourists According to a 2001 study by the Connecticut Center for Economic Analysis (U. Conn), Connecticut’s travel and tourism industry generated gross revenues in 1999 in excess of $4.9 billion, or almost 4% of Connecticut’s 1999 estimated gross state product. The same study found that travel and tourism is one of the fastest growing industries in Connecticut. Simsbury itself benefits economically from tourist visits all year round, with our combination of scenic outdoor activities and seasonal cultural events. Based on data from the Simsbury Chamber of Commerce, we estimate a potential market of at least 100,000 tourists annually for our business.
While we anticipate a split between locals and tourists, all members of our target market are between the ages of 25 and 60, and have a moderate to sizable disposable income.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Local Residents | 5% | 10,000 | 10,500 | 11,025 | 11,576 | 12,155 | 5.00% |
Tourists | 3% | 100,000 | 103,000 | 106,090 | 109,273 | 112,551 | 3.00% |
Total | 3.19% | 110,000 | 113,500 | 117,115 | 120,849 | 124,706 | 3.19% |
Jasmine Teahouse will provide the local upper-middle-class community with a place to socialize, indulge themselves with fine teas and pastries, and find unique chocolates and tea for gifts. For tourists, Jasmine Teahouse will be a destination stop in their tour of the town, whether as a break from shopping, a warm-up visit after skiing, or a place to buy unique gifts as souvenirs of their holiday.
These customers will be glad to pay the price premium for our products in exchange for the high quality, great taste, and sense of prestige they receive. In fact, higher prices for some items (Assam golden tippy versus regular Assam) may encourage higher sales – these kinds of customers eagerly accept the idea that higher prices equal higher quality, and want to buy “only the best,” regardless of whether their palate is educated enough to appreciate the subtle differences.
The tea market is relatively new in rural and suburban areas such as Simsbury. Currently, locals and more sophisticated tourists looking for a cup of coffee or tea can either go to the local Dunkin Donuts or Peaberry’s cafe, or travel up to five miles out of town to reach the nearest Starbucks. None of these options is geared toward the tea drinker, and none of them offer the convenience or upscale feeling, let alone knowledgeable service, available at Jasmine Teahouse.
Teahouses have long done well in urban areas; Tealuxe in Boston and the Russian Tea Room in New York are both internationally renowned. In smaller tourists areas, however, smaller, more eclectic teahouses have also done very well in recent years. The Berkshires, a tourist area roughly 50 miles north of Simsbury with a similar tourist base, now has over 15 specialty teahouses throughout the county. In talking with the owners of three of these establishments, we have learned that their proximity to cultural events, shopping districts and fine restaurants has brought in hundreds of walk-in tourists monthly, while advertising with local hotels and bed and breakfasts boosted their clientele only slightly. Word of mouth, visibility, and year-round tourist appeal are very important for a teahouse’s success in areas like Simsbury.
Premium Chocolate Sales
In the Hartford area, the premium and near-premium chocolate market is made up of three major competitors: Godiva, Munson’s and Lindt. Both Godiva and Munsons sell their products out of their own stores, while Lindt’s products are sold through retailers such as Target. Lindt is beginning to expand in the market with 90 stores as of 2003, the nearest one in Westport, CT. With the higher than expected growth rate in the premium chocolates market, retailers like Godiva are expected to open new locations. Due to the nature of the business it is hard to gauge the overall net sales of these privately held companies. Godiva, owned by Campbell, has reported that their sales in the confectionary division are $484 million. Their overall sales have remained flat with the exception of their Godiva division, whose sales increased by 9.7%. With the economy on the rebound, Campbell’s expects Godiva’s sales to be much stronger in 2004. Lindt has reported that their chocolate sales world wide are expected to grow 7 to 10% a year with a high growth rate in the U.S., due to an increase in the number of stores.
According to chocolate statistics, Americans purchase 3.1 billion pounds of chocolate a year. This translates into $13.7 billion dollars. Briefly stated, these outlets fall into the following categories:
Jasmine Teahouse offers only premium chocolates.
In the gourmet teahouse industry, competition depends on quality of teas, knowledgeable teatenders, and cultivation and education of a loyal customer base. Consumers used to Lipton teabags and other low-quality, tea-dust offerings in grocery stores are amazed at the range of tastes, textures, and fragrances from real, high quality tea. Offer them a good cup, and they will usually return for the rest of their lives. However, getting them to enter your store in the first place can be a major challenge.
Our potential customers vary in knowledge of tea, and are seeking a wide range of experiences and products.
Local Socializers The middle and upper-middle class women of Simsbury and surrounding towns currently have no place where they can go to be spoiled at a moderate price outside of a full restaurant. Starbucks, at 5 miles away, can be inconvenient, noisy, and overcrowded with teenagers. Local restaurants can also be noisy, and require a large chunk of time and money for an outing. This market segment is seeking a cozy, comfortable, upscale/exclusive locale with a similar clientele, where they can meet friends, have some good food and beverages, and stay as long or as short as they want. Our challenge with the socializers is to create a buzz from the very beginning that we are exclusive, pleasant, and high-quality, without generating such overcrowding that we lose our intimate feeling.
Comestible Gift Buyers Currently, the only upscale comestibles in the Simsbury area suitable for gifts are organic meats and local cheeses from surrounding boutique farms – tasty, but certainly not romantic. Husbands and wives looking for something different from the standard bouquet can currently choose a cheap box of chocolates from the grocery store, or hoof it to the city to try to find something more indulgent. We will offer local residents a convenient, attractive, and always-satisfying gift buying experience at a reasonable price, with a bit of cachet.
Tourists Tourists vary widely in their reasons for visiting Simsbury, but they generally share a sophisticated urban palate, a moderately high disposable income, and a desire to “discover” quaint local charm. They are seeking high-quality foods, beverages, gifts, and service. While here, they much prefer local, small-scale businesses to larger chains (like Dunkin Donuts), but want to be assured of quality. Our challenge with tourists is being visible enough to be noticed, without losing our local charm. Once such a visitor has tried our teahouse, they will definitely want to return.
Other Potential Customers:
We will combine heavy print advertising with special events and targeted promotions to introduce Simsbury’s residents and tourists to Jasmine Teahouse, and to premium teas in general. Repeat sales depend on consistently high quality products and service. We will thus train every part-time teatender in the proper storage, brewing, and serving of our 52 kinds of tea.
Our teas and chocolates are offered at a price premium that discourages customers seeking cheap, low-quality goods. This not only enhances the feeling of prestige customers get when patronizing our teahouse, but also ensures that customers will have similar expectations of service and quality, based on their socio-economic class. The status and sophistication indicated by suggesting an outing to Jasmine, or a gift basket with our logo on it, will soon become valuable in themselves.
Key Competitive Strengths
Competitive Weaknesses
Our primary weakness is that we are a new business competing against established chains, for customers who may not know how great our products are. To significantly build sales, we must not just find new customers – we must take customers away from existing stores and from their coffee-drinking habits. We can accomplish this only by offering a superior selection of teas and chocolates, and focusing on high-quality service and full service delivery.
Our marketing strategy needs to accomplish two things: first, to make potential customers aware of Jasmine Teahouse’s opening and location; second, to educate potential customers as to what a teahouse is, and why it is so wonderful. Clearly, with committed tea drinkers, the first will suffice. However, for the rest of our target market, we must strategically define ourselves as the answer to the many different things each group is seeking. Our highly visible location in the historic shopping district of downtown Simsbury will encourage walk-in traffic.
The marketing budget will not exceed 3% of our gross annual sales.
Tea Drinkers Appeal to their gourmet palates:
Socializers Appeal to their sense of prestige and good taste. Within the local market, we will initially target women looking for an intimate social gathering space. A cozy chat over a cup of tea is just right for exchanging gossip, planning outings, or simply relaxing and pampering oneself.
Gift Buyers Focus on our wide gourmet selection and convenient location:
Because Jasmine Teahouse is a new entity, we understand that we will have to prove our company’s worth to upscale tea and chocolate buyers in order to earn their respect and business. Our Sales Forecast depends on establishing a loyal customer base who visits our teahouse at least once every month; we expect a few committed tea drinking “regulars” who will come in more than once a week. In order to achieve this kind of repeat business, every customer, whether on the first visit or their hundredth, will be treated graciously and with respect.
Part of our mission is to educate our customers about tea and tea brewing; however, this must only be done in a respectful fashion. Our knowledge is a resource, and must never be used to make a customer feel uncomfortable or ignorant.
Tea Profiles In addition to our extensive menu describing all 52 teas, the Greys have developed a “Tea Profile” card for new tea drinkers, or customers looking to broaden their tea experience. These cards include questions about taste preferences which will help our teatenders guide the customer to a tea they will enjoy. Our teas vary widely in taste, aroma, smokiness, fruit, and pungency, and very few people will enjoy them all equally. A customer who finds his or her personal tastes met is much more likely to be a repeat customer than one who simply orders a popular tea.
“Tea Tasting” Plates Every week we will offer a different selection of our teas as a “tasting:” 4 to 5 small cups of different teas, labeled and described, with appropriate pastry accompaniments. These plates will allow customers to try new kinds of tea without committing to a full pot. These tastings will be priced at 1 1/2 times the price of a regular pot.
Special Events In addition to our monthly tea tasting parties, Jasmine Teahouse will offer customers the option of reserving the entire teahouse for a party or special event. We anticipate business for bridal and baby showers, as well as a few children’s birthday parties.
The following table and chart give a highlight of our forecasted sales. We expect sales to start off conservatively and increase extensively during the Christmas, Valentine’s Day, Easter and Mother’s Day holidays.
Jasmine teahouse expects average sales of just over $16,000 per month for the first year, as we build name recognition and status in the community. In the second and third year we look to see increased sales of roughly 10% per year, as we gain a larger percentage of the market share and increase our customer base beyond Simsbury and into the connecting towns.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Hot Teas | $52,400 | $62,000 | $66,000 |
Iced Teas | $22,400 | $24,000 | $25,500 |
Pastries | $14,400 | $15,000 | $16,000 |
Chocolate | $88,000 | $92,000 | $100,000 |
Tea Paraphernalia | $3,000 | $3,200 | $3,400 |
Gift Baskets | $3,895 | $4,000 | $4,200 |
Loose Teas | $10,150 | $10,920 | $13,104 |
Total Sales | $194,245 | $211,120 | $228,204 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Hot Teas | $15,720 | $18,600 | $18,480 |
Iced Teas | $7,168 | $7,680 | $7,650 |
Pastries | $9,504 | $9,900 | $10,240 |
Chocolate | $39,600 | $41,400 | $43,000 |
Tea Paraphernalia | $1,500 | $1,600 | $1,666 |
Gift Baskets | $1,558 | $1,600 | $1,596 |
Loose Teas | $4,060 | $4,368 | $4,980 |
Subtotal Direct Cost of Sales | $79,110 | $85,148 | $87,612 |
We are a small company owned and operated by Earl and Lady Grey, husband and wife, as a Limited Liability Corporation. Lady is the designer and marketer of the products, and Earl manages the store. As mentioned above, both partners have extensive experience in this and related industries, and will be leveraging their knowledge of tea purchasing, brewing, and marketing, as well as knowledge of running small upscale beverage business, to create success for Jasmine Teahouse.
Our management style reflects the participation of the owners; we are not very hierarchical, and encourage all employees to learn as much as possible about all aspects of the business. The company respects its community of co-workers, and will treat all workers well. As a family business, we understand that our teatenders, cleaners, and other help are not just workers; they are people with their own lives, personalities, and hopes. In such a small town, it is likely that many customers will know our part-time teatenders (probably local students and housewives) personally, so it is important to us that they enjoy their jobs and feel well-rewarded for their work.
The Personnel Plan chronicles the growth of the organization to approximately 4 employees in the first 3 years. Future years may require a few additional people besides those indicated, depending on the growth of the company.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Earl Grey | $24,000 | $30,000 | $35,000 |
Lady Grey | $6,000 | $12,000 | $14,000 |
Part-time tea-tenders | $13,600 | $14,000 | $14,500 |
Total People | 4 | 4 | 4 |
Total Payroll | $43,600 | $56,000 | $63,500 |
Our Financial Plan is based on sound research into similar businesses in similar communities, and cost estimates obtained for equipment, rent, and other operating expenses. As an owner-operated business, we have some leeway in adjusting our own compensation if sales are low in a given month, but our forecasts are conservative. Our top financial priorities in the first three years are repaying our long-term loan, paying our employees fairly, covering our expenses on time, and generating a modest profit.
We are opening this shop because we love tea, we love tea drinkers, and we will enjoy all the hard work we must do to maintain the business. We do not expect to get rich doing this, but we do anticipate steadily increasing profits and net worth as Jasmine Teahouse becomes well-known and establishes a loyal clientele.
Sales growth will be aggressive the first 18 months as we sharpen our merchandise assortment, size scales, and stock levels to better meet our customer’s requirements. We anticipate a sales increase of roughly 10% during our second year of operation.
Marketing expenses are budgeted at approximately 3% of total sales.
We will invest residual profits into reducing debt.
Company expansion, while not a necessity, will be an option if sales projections are met and/or exceeded. The location we have chosen contains an additional area we can annex for extra seating if and when it becomes necessary, for a small additional rental charge.
Tax and interest rate assumptions for this plan are on the following table. In addition, there are some non-financial assumptions guiding our forecasts. We assume:
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 9.50% | 9.50% | 9.50% |
Long-term Interest Rate | 9.25% | 9.25% | 9.25% |
Tax Rate | 30.00% | 30.00% | 30.00% |
Other | 0 | 0 | 0 |
Our break-even analysis is based on our cost and price structure for the first year. As we grow, the fixed costs will grow in proportion to the number of employees. We should surpass our Break-even point early on.
Break-even Analysis | |
Monthly Revenue Break-even | $11,612 |
Assumptions: | |
Average Percent Variable Cost | 41% |
Estimated Monthly Fixed Cost | $6,883 |
The following table shows our profit and loss projections for the next three years. We will become profitable early in the first year, with net profits continuing to rise as sales increase. Sales and Marketing expenses include the costs of all advertisements, plus promotions like the monthly tastings and 1/2 off coupons for tourists. Depreciation reflects a straight-line depreciation of our long-term assets over 10 years.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $194,245 | $211,120 | $228,204 |
Direct Cost of Sales | $79,110 | $85,148 | $87,612 |
Other Costs of Goods | $0 | $0 | $0 |
Total Cost of Sales | $79,110 | $85,148 | $87,612 |
Gross Margin | $115,135 | $125,972 | $140,592 |
Gross Margin % | 59.27% | 59.67% | 61.61% |
Expenses | |||
Payroll | $43,600 | $56,000 | $63,500 |
Marketing/Promotion | $5,400 | $6,000 | $6,000 |
Depreciation | $1,380 | $1,380 | $1,380 |
Rent | $18,000 | $19,000 | $20,000 |
Utilities | $8,010 | $8,200 | $8,600 |
Monthly disposable supplies | $1,200 | $1,200 | $1,200 |
Insurance | $5,000 | $5,000 | $5,000 |
Payroll Taxes | $0 | $0 | $0 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $82,590 | $96,780 | $105,680 |
Profit Before Interest and Taxes | $32,545 | $29,192 | $34,912 |
EBITDA | $33,925 | $30,572 | $36,292 |
Interest Expense | $4,513 | $3,721 | $2,894 |
Taxes Incurred | $8,410 | $7,641 | $9,606 |
Net Profit | $19,622 | $17,830 | $22,413 |
Net Profit/Sales | 10.10% | 8.45% | 9.82% |
Our projected cash flow is outlined in the following chart and table. The table shows our planned loan principal repayment. We will be responsible for collecting and repaying sales tax at the 6% rate charged by Connecticut.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $194,245 | $211,120 | $228,204 |
Subtotal Cash from Operations | $194,245 | $211,120 | $228,204 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $11,655 | $12,667 | $13,692 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $205,900 | $223,787 | $241,896 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $43,600 | $56,000 | $63,500 |
Bill Payments | $117,261 | $135,040 | $140,758 |
Subtotal Spent on Operations | $160,861 | $191,040 | $204,258 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $11,655 | $12,667 | $13,692 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $8,938 | $8,938 | $8,938 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $181,453 | $212,645 | $226,888 |
Net Cash Flow | $24,446 | $11,142 | $15,008 |
Cash Balance | $39,446 | $50,589 | $65,597 |
All of our tables will be updated monthly to reflect past performance and future assumptions. Future assumptions will not be based on past performance but rather economic cycle activity, regional industry strength, and future cash flow possibilities. We expect solid growth in Jasmine Teahouse beyond the year 2005.
The accompanying pro forma Balance Sheet shows our steadily increasing net worth, as we pay off our loans.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $39,446 | $50,589 | $65,597 |
Inventory | $7,400 | $7,964 | $8,195 |
Other Current Assets | $6,605 | $6,605 | $6,605 |
Total Current Assets | $53,451 | $65,158 | $80,397 |
Long-term Assets | |||
Long-term Assets | $13,808 | $13,808 | $13,808 |
Accumulated Depreciation | $1,380 | $2,760 | $4,140 |
Total Long-term Assets | $12,428 | $11,048 | $9,668 |
Total Assets | $65,879 | $76,206 | $90,065 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $9,782 | $11,217 | $11,601 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $9,782 | $11,217 | $11,601 |
Long-term Liabilities | $44,695 | $35,757 | $26,819 |
Total Liabilities | $54,477 | $46,974 | $38,420 |
Paid-in Capital | $10,330 | $10,330 | $10,330 |
Retained Earnings | ($18,550) | $1,072 | $18,902 |
Earnings | $19,622 | $17,830 | $22,413 |
Total Capital | $11,402 | $29,232 | $51,645 |
Total Liabilities and Capital | $65,879 | $76,206 | $90,065 |
Net Worth | $11,402 | $29,232 | $51,645 |
Business ratios for the next three years are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5812, Eating Places (including cafes and tearooms), are shown for comparison.
The following table outlines some of the more important ratios from the Eating Places industry. The final column, Industry Profile, details specific ratios based on the industry as it is classified by the Standard Industry Classification (SIC) code, 5812.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 8.69% | 8.09% | 5.24% |
Percent of Total Assets | ||||
Inventory | 11.23% | 10.45% | 9.10% | 2.72% |
Other Current Assets | 10.03% | 8.67% | 7.33% | 32.59% |
Total Current Assets | 81.14% | 85.50% | 89.27% | 41.88% |
Long-term Assets | 18.86% | 14.50% | 10.73% | 58.12% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 14.85% | 14.72% | 12.88% | 21.75% |
Long-term Liabilities | 67.84% | 46.92% | 29.78% | 29.17% |
Total Liabilities | 82.69% | 61.64% | 42.66% | 50.92% |
Net Worth | 17.31% | 38.36% | 57.34% | 49.08% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 59.27% | 59.67% | 61.61% | 55.74% |
Selling, General & Administrative Expenses | 52.78% | 52.47% | 50.50% | 37.46% |
Advertising Expenses | 0.00% | 0.00% | 0.00% | 2.06% |
Profit Before Interest and Taxes | 16.75% | 13.83% | 15.30% | 1.50% |
Main Ratios | ||||
Current | 5.46 | 5.81 | 6.93 | 0.81 |
Quick | 4.71 | 5.10 | 6.22 | 0.51 |
Total Debt to Total Assets | 82.69% | 61.64% | 42.66% | 53.68% |
Pre-tax Return on Net Worth | 245.84% | 87.13% | 62.00% | 2.39% |
Pre-tax Return on Assets | 42.55% | 33.42% | 35.55% | 5.16% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 10.10% | 8.45% | 9.82% | n.a |
Return on Equity | 172.09% | 60.99% | 43.40% | n.a |
Activity Ratios | ||||
Inventory Turnover | 10.67 | 11.08 | 10.84 | n.a |
Accounts Payable Turnover | 12.99 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 28 | 30 | n.a |
Total Asset Turnover | 2.95 | 2.77 | 2.53 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 4.78 | 1.61 | 0.74 | n.a |
Current Liab. to Liab. | 0.18 | 0.24 | 0.30 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $43,669 | $53,941 | $68,796 | n.a |
Interest Coverage | 7.21 | 7.85 | 12.06 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.34 | 0.36 | 0.39 | n.a |
Current Debt/Total Assets | 15% | 15% | 13% | n.a |
Acid Test | 4.71 | 5.10 | 6.22 | n.a |
Sales/Net Worth | 17.04 | 7.22 | 4.42 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Hot Teas | 0% | $1,500 | $2,500 | $3,000 | $3,000 | $3,200 | $4,000 | $6,000 | $6,200 | $6,500 | $6,000 | $5,500 | $5,000 |
Iced Teas | 0% | $2,500 | $3,000 | $3,800 | $3,400 | $2,000 | $1,400 | $800 | $600 | $500 | $900 | $1,500 | $2,000 |
Pastries | 0% | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 |
Chocolate | 0% | $3,000 | $5,000 | $8,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 | $14,000 | $7,000 | $9,000 | $7,000 |
Tea Paraphernalia | 0% | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 |
Gift Baskets | 0% | $200 | $220 | $225 | $250 | $300 | $300 | $800 | $200 | $600 | $200 | $400 | $200 |
Loose Teas | 0% | $600 | $500 | $500 | $600 | $700 | $950 | $1,100 | $1,000 | $1,000 | $1,100 | $1,000 | $1,100 |
Total Sales | $9,250 | $12,670 | $16,975 | $15,700 | $14,650 | $15,100 | $17,150 | $16,450 | $24,050 | $16,650 | $18,850 | $16,750 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Hot Teas | $450 | $750 | $900 | $900 | $960 | $1,200 | $1,800 | $1,860 | $1,950 | $1,800 | $1,650 | $1,500 | |
Iced Teas | $800 | $960 | $1,216 | $1,088 | $640 | $448 | $256 | $192 | $160 | $288 | $480 | $640 | |
Pastries | $792 | $792 | $792 | $792 | $792 | $792 | $792 | $792 | $792 | $792 | $792 | $792 | |
Chocolate | $1,350 | $2,250 | $3,600 | $3,150 | $3,150 | $3,150 | $3,150 | $3,150 | $6,300 | $3,150 | $4,050 | $3,150 | |
Tea Paraphernalia | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | |
Gift Baskets | $80 | $88 | $90 | $100 | $120 | $120 | $320 | $80 | $240 | $80 | $160 | $80 | |
Loose Teas | $240 | $200 | $200 | $240 | $280 | $380 | $440 | $400 | $400 | $440 | $400 | $440 | |
Subtotal Direct Cost of Sales | $3,837 | $5,165 | $6,923 | $6,395 | $6,067 | $6,215 | $6,883 | $6,599 | $9,967 | $6,675 | $7,657 | $6,727 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Earl Grey | 0% | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
Lady Grey | 0% | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 |
Part-time tea-tenders | 0% | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,400 | $1,400 | $1,000 | $1,400 | $1,000 | $1,400 | $1,000 |
Total People | 3 | 3 | 3 | 3 | 3 | 4 | 4 | 3 | 4 | 3 | 4 | 4 | |
Total Payroll | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,900 | $3,900 | $3,500 | $3,900 | $3,500 | $3,900 | $3,500 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 9.50% | 9.50% | 9.50% | 9.50% | 9.50% | 9.50% | 9.50% | 9.50% | 9.50% | 9.50% | 9.50% | 9.50% | |
Long-term Interest Rate | 9.25% | 9.25% | 9.25% | 9.25% | 9.25% | 9.25% | 9.25% | 9.25% | 9.25% | 9.25% | 9.25% | 9.25% | |
Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $9,250 | $12,670 | $16,975 | $15,700 | $14,650 | $15,100 | $17,150 | $16,450 | $24,050 | $16,650 | $18,850 | $16,750 | |
Direct Cost of Sales | $3,837 | $5,165 | $6,923 | $6,395 | $6,067 | $6,215 | $6,883 | $6,599 | $9,967 | $6,675 | $7,657 | $6,727 | |
Other Costs of Goods | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $3,837 | $5,165 | $6,923 | $6,395 | $6,067 | $6,215 | $6,883 | $6,599 | $9,967 | $6,675 | $7,657 | $6,727 | |
Gross Margin | $5,413 | $7,505 | $10,052 | $9,305 | $8,583 | $8,885 | $10,267 | $9,851 | $14,083 | $9,975 | $11,193 | $10,023 | |
Gross Margin % | 58.52% | 59.23% | 59.22% | 59.27% | 58.59% | 58.84% | 59.87% | 59.88% | 58.56% | 59.91% | 59.38% | 59.84% | |
Expenses | |||||||||||||
Payroll | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,900 | $3,900 | $3,500 | $3,900 | $3,500 | $3,900 | $3,500 | |
Marketing/Promotion | $1,500 | $300 | $300 | $300 | $300 | $300 | $600 | $300 | $600 | $300 | $300 | $300 | |
Depreciation | $115 | $115 | $115 | $115 | $115 | $115 | $115 | $115 | $115 | $115 | $115 | $115 | |
Rent | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | |
Utilities | $621 | $621 | $621 | $621 | $621 | $621 | $621 | $621 | $621 | $621 | $900 | $900 | |
Monthly disposable supplies | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
Insurance | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | $417 | |
Payroll Taxes | 20% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $7,753 | $6,553 | $6,553 | $6,553 | $6,553 | $6,953 | $7,253 | $6,553 | $7,253 | $6,553 | $7,232 | $6,832 | |
Profit Before Interest and Taxes | ($2,340) | $952 | $3,499 | $2,752 | $2,030 | $1,932 | $3,014 | $3,298 | $6,830 | $3,422 | $3,961 | $3,191 | |
EBITDA | ($2,225) | $1,067 | $3,614 | $2,867 | $2,145 | $2,047 | $3,129 | $3,413 | $6,945 | $3,537 | $4,076 | $3,306 | |
Interest Expense | $408 | $402 | $396 | $390 | $385 | $379 | $373 | $367 | $362 | $356 | $350 | $345 | |
Taxes Incurred | ($824) | $165 | $931 | $709 | $494 | $466 | $792 | $879 | $1,941 | $920 | $1,083 | $854 | |
Net Profit | ($1,923) | $385 | $2,172 | $1,653 | $1,152 | $1,087 | $1,849 | $2,052 | $4,528 | $2,146 | $2,528 | $1,993 | |
Net Profit/Sales | -20.79% | 3.04% | 12.80% | 10.53% | 7.86% | 7.20% | 10.78% | 12.47% | 18.83% | 12.89% | 13.41% | 11.90% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $9,250 | $12,670 | $16,975 | $15,700 | $14,650 | $15,100 | $17,150 | $16,450 | $24,050 | $16,650 | $18,850 | $16,750 | |
Subtotal Cash from Operations | $9,250 | $12,670 | $16,975 | $15,700 | $14,650 | $15,100 | $17,150 | $16,450 | $24,050 | $16,650 | $18,850 | $16,750 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 6.00% | $555 | $760 | $1,019 | $942 | $879 | $906 | $1,029 | $987 | $1,443 | $999 | $1,131 | $1,005 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $9,805 | $13,430 | $17,994 | $16,642 | $15,529 | $16,006 | $18,179 | $17,437 | $25,493 | $17,649 | $19,981 | $17,755 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,900 | $3,900 | $3,500 | $3,900 | $3,500 | $3,900 | $3,500 | |
Bill Payments | $124 | $3,870 | $8,353 | $13,013 | $9,840 | $9,544 | $10,222 | $11,969 | $10,762 | $18,814 | $7,471 | $13,279 | |
Subtotal Spent on Operations | $3,624 | $7,370 | $11,853 | $16,513 | $13,340 | $13,444 | $14,122 | $15,469 | $14,662 | $22,314 | $11,371 | $16,779 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $555 | $760 | $1,019 | $942 | $879 | $906 | $1,029 | $987 | $1,443 | $999 | $1,131 | $1,005 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $745 | $745 | $745 | $745 | $745 | $745 | $745 | $745 | $745 | $745 | $745 | $745 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $4,924 | $8,875 | $13,616 | $18,199 | $14,964 | $15,094 | $15,896 | $17,201 | $16,850 | $24,057 | $13,247 | $18,528 | |
Net Cash Flow | $4,881 | $4,555 | $4,377 | ($1,557) | $565 | $912 | $2,283 | $236 | $8,643 | ($6,408) | $6,734 | ($773) | |
Cash Balance | $19,881 | $24,436 | $28,814 | $27,256 | $27,822 | $28,733 | $31,016 | $31,252 | $39,895 | $33,486 | $40,220 | $39,446 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $15,000 | $19,881 | $24,436 | $28,814 | $27,256 | $27,822 | $28,733 | $31,016 | $31,252 | $39,895 | $33,486 | $40,220 | $39,446 |
Inventory | $10,000 | $6,163 | $5,682 | $7,615 | $7,035 | $6,674 | $6,837 | $7,571 | $7,259 | $10,964 | $7,343 | $8,423 | $7,400 |
Other Current Assets | $6,605 | $6,605 | $6,605 | $6,605 | $6,605 | $6,605 | $6,605 | $6,605 | $6,605 | $6,605 | $6,605 | $6,605 | $6,605 |
Total Current Assets | $31,605 | $32,649 | $36,723 | $43,034 | $40,896 | $41,100 | $42,175 | $45,192 | $45,116 | $57,463 | $47,434 | $55,248 | $53,451 |
Long-term Assets | |||||||||||||
Long-term Assets | $13,808 | $13,808 | $13,808 | $13,808 | $13,808 | $13,808 | $13,808 | $13,808 | $13,808 | $13,808 | $13,808 | $13,808 | $13,808 |
Accumulated Depreciation | $0 | $115 | $230 | $345 | $460 | $575 | $690 | $805 | $920 | $1,035 | $1,150 | $1,265 | $1,380 |
Total Long-term Assets | $13,808 | $13,693 | $13,578 | $13,463 | $13,348 | $13,233 | $13,118 | $13,003 | $12,888 | $12,773 | $12,658 | $12,543 | $12,428 |
Total Assets | $45,413 | $46,342 | $50,301 | $56,497 | $54,244 | $54,333 | $55,293 | $58,195 | $58,004 | $70,236 | $60,092 | $67,791 | $65,879 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $3,597 | $7,915 | $12,684 | $9,523 | $9,205 | $9,822 | $11,620 | $10,122 | $18,571 | $7,025 | $12,941 | $9,782 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $0 | $3,597 | $7,915 | $12,684 | $9,523 | $9,205 | $9,822 | $11,620 | $10,122 | $18,571 | $7,025 | $12,941 | $9,782 |
Long-term Liabilities | $53,633 | $52,888 | $52,143 | $51,399 | $50,654 | $49,909 | $49,164 | $48,419 | $47,674 | $46,930 | $46,185 | $45,440 | $44,695 |
Total Liabilities | $53,633 | $56,485 | $60,059 | $64,083 | $60,176 | $59,114 | $58,986 | $60,040 | $57,796 | $65,501 | $53,210 | $58,381 | $54,477 |
Paid-in Capital | $10,330 | $10,330 | $10,330 | $10,330 | $10,330 | $10,330 | $10,330 | $10,330 | $10,330 | $10,330 | $10,330 | $10,330 | $10,330 |
Retained Earnings | ($18,550) | ($18,550) | ($18,550) | ($18,550) | ($18,550) | ($18,550) | ($18,550) | ($18,550) | ($18,550) | ($18,550) | ($18,550) | ($18,550) | ($18,550) |
Earnings | $0 | ($1,923) | ($1,538) | $634 | $2,288 | $3,440 | $4,527 | $6,376 | $8,427 | $12,955 | $15,102 | $17,629 | $19,622 |
Total Capital | ($8,220) | ($10,143) | ($9,758) | ($7,586) | ($5,932) | ($4,780) | ($3,693) | ($1,844) | $207 | $4,735 | $6,882 | $9,409 | $11,402 |
Total Liabilities and Capital | $45,413 | $46,342 | $50,301 | $56,497 | $54,244 | $54,333 | $55,293 | $58,195 | $58,004 | $70,236 | $60,092 | $67,791 | $65,879 |
Net Worth | ($8,220) | ($10,143) | ($9,758) | ($7,586) | ($5,932) | ($4,780) | ($3,693) | ($1,844) | $207 | $4,735 | $6,882 | $9,409 | $11,402 |
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Do you know India is the highest tea consuming country globally and the second-largest producer of tea in the world after China? Seeking for the profitable Tea shop business plan then you are in the right article. You can establish the tea shop as per your investment also you can consider buying a franchise for tea business. Tea is the oldest form of beverage that is consumed all around the globe. And seeking a business opportunity by opening a tea shop can be a profitable and valuable niche. Moreover gaining benefits and attracting customers by making them aware of some wholesome reasons with some healthier form of tea such as herbal and green tea. Opening a tea shop is a profitable and self-rewarding business.
Well, this exclusive article includes a detailed guide on how to start a tea shop business in India. Additionally, it includes a business plan guide , cost, profit margin. Depending on your investment range and capability, you can install the store in any size. Also, you can consider buying a franchise. Well everybody is aware of the fact that every time is tea time in India. And people definitely prefer tea over coffee. And it is stated that the Indian population consumes 30 cups of tea for every cup of coffee. An Indian adult on average drinks at least 2 cups of tea in a single day and some times it increases 4 to 5 per day, weird but true!
Step 1:tea business opportunities.
A tea shop business is not only perfect for unban cities but is equally profitable in rural areas as well. Truly, Tier II and Tier III cities have shown comparable demand as metro cities depending on the territory and population density.
Tea shop business plan is easy to start not only for men but women as well who are amenable to become financially independent. However, this business is solely based on hard work, direct customer interaction, and long working hours. By acknowledging the prevalence of the tea it is ensured that the tea shop business is a definite business and is a complete success if done with the accuracy and hard work.
It is essential to create an effective business modal depending upon your investment capacity. With a wider vision, you can open your tea shop in two business models. One is a small tea stall and another is a tea bar.
Well, it cannot be denied that the small tea stalls sell low-cost tea to the customers along with other snacks. And seldom these stalls do not provide even sitting arrangements. These tea shops can range the price of a per cup tea typically Rs 5 to 10. Well if you are willing to opt for these small tea shops then you can offer tea in paper cups or Khulad along with some snacks such as bread toast, omelets, noodles, etc. This low-cost model will cost you even less than 50000 cash.
Another business model involves the tea bars on the physical location that provides a safe and comfortable sitting arrangement and pleasant ambiance. Broadly, tea bars are a bit sophisticated, furnished, and air-conditioned stores. This business model sells tea at a premium price and also offer various flavors of tea along with coffee. Maximum tea shop offers ice-tea, green tea, bubbles tea, cardamom tea, and aroma tea and various multiple flavors and add on in the menu, with various other likable snacks and food items. Well, these are comfortable and not just a tea stall but invites customers to spend time or have any official meeting on a cup of tea.
The investment capital in this business model is quite moderate. There are many favorable slants that need to be focused before opening this model. Generally, the initial investment depends on the rent of the property and the infrastructure building. The initial amount required to invest is at least Rs 30 Lakh cash in hand to open a tea bar in the metro cities.
With the modern approach and development, the demand for tea bars is highly increasing. And various companies are now offering franchise business opportunities to new entrepreneurs. If you are willing to start your business with a brand name and definitely franchise is the more desirable option for you. With an established brand name, a good number of customers come that means you get the direct benefit of the brand value from the very first day. But remember you require a good investment for that after all you are going for brand value.
However, if you are willing to open the store with a small investment or you want to develop your own brand, then you must go for own business. And if you hold some previous experience in retail then go for this. But franchise would be recommended as this the safest option for you, so choose wisely.
Tea bars offer a good sitting arrangement and tranquil ambiance and they will offer different tea flavors such as
In the outset, the essential part is to calculate the gross profit of one cup of tea you sell from your store. Well, it is clear that the above stated two different business models commit varying profit margins. Of course, you cannot expect a high-return from a low-cost model. Additionally, in your commercial plan, you need to determine the overhead cost to calculate the net profit.
Whereas in the low-cost model, you can expect a 100% entire margin from a single cup of tea. Moreover, the cost is really very low and a good amount of money can be expected with the estimation of the store ensuring sufficient footfalls.
When it comes to the tea bar business model the gross profit margin is considerably higher as compared to the low-cost model. As this model includes different types of tea, you can sale raw tea, food items, soft drinks, chocolates, and even gift items apart from normal tea from the store. But as the return is higher the pay also gets higher and overhead costs too that include rent, utilities, employee salary, ingredients, etc.
In every business location always play a crucial role in order to build a profitable tea shop business in India. Tea is a regular run in India and you can observe the tea shops and spot location for you tea shops such as the nearby commercial locations, offices, colleges, shopping centers as well as markets as they are the best places to open tea stall, just learn your easy accessibility and targeted crowd area. Just observe your targeted number of the pedestrian and the place you spot is the perfect location for this business. You can get tea lovers all around the world as people enjoy tea with their loved ones, family, or relatives.
To establish your tea bar with above-stated facilities, you necessitate at least 600 sq ft area for the tea bar, where you can prepare you pleasant and comfortable set-up with your exact sitting arrangement and good interior which is comfortable for your all customer types.
If you are willing to go for tea stall make sure that your tea stall is easily accessible and set on nearby commercial locations, colleges, shopping malls, markets, etc. Additionally, you can go for the movable van tea shop business so that you can change your location whenever you spot a business opportunity.
Registration of Firm: The most important step is to register the company with anyone of the business entities like Proprietorship, Partnership, Pvt. Ltd. company with Registrar of Companies (ROC), Public Ltd. Co., the Limited Liability Partnership or the Co-operative Society.
GST Registration: You require GST number as it is mandatory to run Tea Shop Business; therefore, you have to apply for the GST registration
Trade License: you need to obtain a trade license from the local authorities. To obtain the Trade License. Purpose of Traded License is to ensure that no one is conducting any unethical business practices or any legal trade. You will need to obtain a Trade License and GST Registration .
Eligibility for Trade License:
MSME/SSI Registration: MSMS registration will help you to opt for government schemes and subsidies regarding your business.
Trade Mark: Will help you to secure your tea brand name by simply registering for the trademark.
Food Safety and Standard Authority of India (FSSAI): tea stall business fall under the categories of food processing business; therefore, you must have to take the FSSAI license .
Fire license: Safety comes first and the tea stall business definitely deals with the fire equipment, therefore, you have to take the fire license for safety purposes.
A small tea shop or either big but often keeps the need-based utensils and ingredients. And remember while initiating tea bar, you will need to acquire at least 600 Sq Ft of retail space including the toilet facility.
Unless you can go for the shop-in-shop option too. Well decorating the tea shop is not a big task if you decorate the inside shop area with a simple and sophisticated design. Well, it is the fact that comfort is the customer’s priority so make it yours too by providing a comfortable sitting arrangement. Additionally, keep keen observation in the interior and pay attention to the detailing such as Floor, walls, colors, and lighting.
Well you can go for all traditional marketing strategy such as:
At the very first you will find a lot of websites selling tea online on the internet. In this online generation, you need to have your website to attract your customers and show your availability.
Owning a tea shop business in India is a very common business in India. However, it needs a lot of planning to make it a great success. Well, this exclusive article is entirely dedicated to the coffee shop business plan with high demand. This step guide is best to understand the niche and the pattern to run tea shop business. Like any other business, this business also requires a high amount of dedication smartness and hard work. And all set for profit.
I hope this article will help you to know the tea shop business plan adequately with a brief. Do let us know in the comment section how you liked this article and if you have any queries or suggestions, you can ask them by commenting below.
To read more click on to- How to Start Your Own Cafe Business In India
Written by Dave Lavinsky
If you’re looking to start or grow a tea room , you need a business plan. Your plan will outline your business goals and strategies, and how you plan on achieving them. It will also detail the amount of funding you need, and if needed, present a case to investors and lenders regarding why they should invest in your business.
In this article, we’ll explain why you should invest the time and energy into creating a tea room business plan, and provide you with a tea room business plan template and sample business plan that includes an overview of what should be included in each section.
Download the Ultimate Tea Room Business Plan Template here >
There are many reasons to write a business plan for a tea room , even if you’re not looking for funding. A business plan can help you see potential pitfalls in your business strategy, as well as identify opportunities you may not have considered. It can also help you track your progress and adjust your plans as needed.
That said, if you are looking for funding, a business plan is essential. Investors and lenders want to see that you have a solid understanding of your industry, your customers, and your competition. They also want to know that you have a realistic view of your financial situation and how much money you’ll need to get started.
While every business plan is different, there are 10 essential components that all tea room business plans should include:
Company description, industry analysis, customer analysis, competitor analysis, marketing plan, operations plan, management team, financial plan.
Keep in mind that you’ll need to tailor this information to your specific type of tea room business , but these 10 components should be included in every plan.
The executive summary is the first section of your business plan, but it’s often written last. This is because it provides an overview of the entire document.
In the executive summary, briefly explain what your business does, your business goals, and how you plan on achieving them. You should also include a brief overview of your financial situation, including how much money you’ll need to get started.
For organizational purposes, you could create headings for each main section of your business plan to highlight the key takeaways.
For example, your tea room executive summary might look something like this:
[Insert Company Introduction / Short Summary]
[Insert Business Goals & How You Plan To Achieve Them]
[Insert Industry Statistics on the Size of Your Market]
[Insert Overview of Competitors & Your Competitive Advantage]
[Insert Information About The Marketing Strategies You Will Use To Attract Clients/Customers]
You can add and/or remove sections as needed, but these are the basics that should be included in every executive summary.
The next section of your tea room business plan is the company description, where you’ll provide an overview of your business.
Include information about your:
With regards to the company overview, here you will document the type of tea room business you operate. For example, there are several types of tea room s such as:
For example, a tea room description might look something like this:
We are an X type of tea room business.
If an existing company: Since launching, our team has served X customers and generated $Y in revenue.
If startup: I conceived [company name] on this date. Since that time, we have developed the company logo, found potential space, etc.
This is just an example, but your company description should give potential investors a clear idea of who you are, what you do, and why you’re the best at what you do.
The next section of your business plan is the industry analysis. In this section, you’ll need to provide an overview of the industry you’re in, as well as any trends or changes that might impact your business.
Questions you will want to answer include:
For example, your industry analysis might look something like this:
The size of the tea room industry is $XX billion.
The industry is expected to grow at a rate of X% over the next 5 years.
It is currently growing at an annual rate of 5%, with the global market for tea estimated at $XX billion in 20XX.
Major trends affecting the industry are the popularity of healthy living and the popularity of tea as a health beverage.
This is just an example, but your industry analysis should give potential investors a clear idea of the overall industry, and how your company fits into that industry.
The next section of your tea room business plan is the customer analysis. In this section, you’ll need to provide an overview of who your target customers are and what their needs are.
You want a thorough understanding of your target customers to provide them with the best possible products and/or services. Oftentimes, you will want to include the specific demographics of your target market, such as age, gender, income, etc., but you’ll also want to highlight the psychographics, such as their interests, lifestyles, and values.
This information will help you better understand your target market and how to reach them.
For example, your customer analysis might look something like this:
The demographic (age, gender, location, income, etc.) profile of our target tea room customer is as follows:
– Age: 25-44
– Gender: Female
– Location: Urban
– Income: $50,000-$100,000
Our core customer interests are as follows:
– Health: They are interested in living a healthy lifestyle and incorporating health beverages into their diet.
– Relaxation: They view tea as a way to relax and destress.
– Socializing: They enjoy tea as a way to socialize with friends.
– Wellness: They are interested in achieving/maintaining a healthy balance in their life.
This information will help you better understand your target market and how to reach them. It will also help you create marketing materials that speak to your target market’s needs and interests.
In summary, your customer analysis should give potential investors a clear idea of who your target market is and how you reach them.
The next section of your business plan is the competitor analysis. In this section, you’ll need to provide an overview of who your major competitors are and their strengths and weaknesses.
You want to make sure that you have a clear understanding of your competition so that you can position yourself in the market. Creating a SWOT Analysis (strengths, weaknesses, opportunities, threats) for each of your major competitors helps you do this.
For example, your competitor analysis might look something like this:
XYZ Company is our major competitor. Its offerings include this, this and this. Its strengths include XYZ, and its weaknesses include XYZ.
Your competitor analysis should give potential lenders and investors a clear idea of who your major competitors are and how you compare to them.
The next section of your business plan is the marketing plan. In this section, you’ll need to provide an overview of your marketing strategy and how you plan on executing it.
Specifically, you will document your “4 Ps” as follows:
For example, your marketing plan might look something like this:
We offer the following products/services:
We will use a premium pricing strategy to establish ourselves as the highest quality brand.
We will serve customers directly and through a partnership with XYZ company.
As you can see, your marketing plan should give potential investors a clear idea of your marketing objectives, strategies, and tactics.
The next section of your business plan is the operations plan. In this section, you’ll need to provide an overview of your company’s day-to-day operations and how they will be structured.
Your operations plan should be detailed and concise. You want to make sure that potential investors have a clear understanding of your company’s day-to-day operations and how they are structured.
You will also include information regarding your long-term goals for your operations and how you plan on achieving them.
For example, your operations plan might look something like this:
Our company’s daily operations include XYZ.
Our company is structured as follows:
Each department is responsible for XYZ tasks.
Our long-term goals for our operations are to achieve the following over the next five years.
Date 1: Goal 1
Date 2: Goal 2
Date 3: Goal 3
Date 4: Goal 4
Your operations plan should give readers a clear idea of your company’s day-to-day operations, how they are structured, and your long-term goals for the company.
The next section of your business plan is the management team. In this section, you’ll need to provide an overview of your management team and their experience.
Your management team ideally includes individuals who are experts in their respective fields. You want to make sure that lenders and investors have a clear understanding of your management team’s qualifications and experience, and feel they can execute on your plan.
For example, your management team might look something like this:
Our management team is comprised of the following X individuals with the following experience.
Team member 1’s qualifications and experience include XYZ.
Your management team should give potential lenders and investors a clear idea of who is on your team and how their qualifications and experience will help your company succeed.
The final core section of your business plan is the financial plan. In this section, you’ll need to provide an overview of your company’s financials.
Your financial plan should give potential investors a clear understanding of your company’s financials. While you may include a summary of this information in this section, you will include full financial statements in the appendix of your business plan.
For example, your financial plan might look something like this:
Our company’s projected revenues over the next five years are $XYZ.
Our company’s projected expenses and net income over the next five years are $XYZ.
This is just an example, but your financial plan should give potential investors a clear idea of your company’s financial projections.
The final section of your business plan is the appendix. In this section, you’ll need to provide any additional information that was not included in the previous sections.
This may include items such as:
By including this information in the appendix, you are allowing potential investors and lenders to learn more about your company.
In summary, writing a tea room business plan is a vital step in the process of starting and/or growing your own business.
A business plan will give you a roadmap to follow. It can also help you attract investors and partners.
By following the tips outlined in this article, you can be sure that your business plan will be effective and help you achieve your goals.
Wish there was a faster, easier way to finish your business plan?
With our Ultimate Tea Room Business Plan Template you can finish your plan in just 8 hours or less!
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The growing demand and popularity of tea make any tea-related business a lucrative and rewarding profession.
Anyone with a passion for tea can start a tea shop. However, a detailed business plan is essential to raise funds for it and transform it into a profitable venture.
Need help writing a business plan for your tea shop? You’re at the right place. Our tea shop business plan template will help you get started.
Free Business Plan Template
Download our Free Tea Shop Business Plan Template now and pave the way to success. Let’s turn your vision into an actionable strategy!
Writing a tea shop business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:
An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.
Here are a few key components to include in your executive summary:
Ensure your executive summary is clear, concise, easy to understand, and jargon-free.
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The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:
This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.
The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.
Here are a few tips for writing the market analysis section of your tea room business plan:
The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:
In short, this section of your tea shop plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.
Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:
Overall, this section of your tea shop business plan should focus on customer acquisition and retention.
Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your tea shop, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.
The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:
Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.
The management team section provides an overview of your tea shop’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.
This section should describe the key personnel for your tea shop, highlighting how you have the perfect team to succeed.
Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:
Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.
The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.
Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.
Remember, the appendix section of your tea shop business plan should only include relevant and important information supporting your plan’s main content.
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This sample tea shop business plan will provide an idea for writing a successful tea shop plan, including all the essential components of your business.
After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our tea shop business plan pdf .
Frequently asked questions, why do you need a tea shop business plan.
A business plan is an essential tool for anyone looking to start or run a successful tea shop. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.
Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your tea shop.
There are several ways to get funding for your tea shop, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:
Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.
There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your tea shop business plan and outline your vision as you have in your mind.
A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any tea shop business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .
The following are the key components your tea shop business plan must include:
Marketing strategy is a key component of your tea shop business plan. Whether it is about achieving certain business goals or helping your investors understand your plan to maximize their return on investment—an impactful marketing strategy is the way to do it!
Here are a few pointers to help you understand the importance of having an impactful marketing strategy:
About the Author
Upmetrics Team
Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more
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Table of Contents
Unique selling point, mission statement, marketing strategy, target market, customer profile, competitor analysis, benchmarking, channels to use, financial information, financial projection, financial management with countingup.
You may experience a variety of costs when setting up or running a small tea company, so you decide to search for additional sources of funding . You may also look to set out a strategy for your business and want a way to routinely check if you are following that trajectory. To fulfil both of these aims, putting together a business plan is very useful.
To cover the sections you will need for a business plan for tea a company, this guide includes:
The first section of your business plan should set out what the company is and what it aims to achieve.
To make a compelling argument for your business in your plan, highlight your USP (unique selling point) . It is the thing about your tea that is special, whether that is the ingredients or process, for example. The key difference in your product from any other is a central pillar of your company.
Business plans also often include a mission statement in their business overview. This outlines what the aims are and where the potential is for growth. The goal could be to become a household name in UK tea within the next five years, for example. Having an aim could help steer the business in the right direction beyond seeking investment or loans.
To prove that your business is likely to succeed, a marketing strategy is often included in plans. It sets up your company to present its ability to get your product into the cups of customers.
Your target audience (or market) are the people who you want to become your customers. To find out who they should be, it may be beneficial to carry out market research . An example could include surveying members of the public and asking about their tea habits.
After conducting your research, you could benefit from insight into the similarities between your target audience. To show your perfect customer in your business plan, you can put together a customer profile (sometimes called customer avatar).
A summary for a hypothetical customer can include:
Based on your tea’s main draws and your target audience, you should be able to put together your brand . Explain the name you have chosen, the logo (if you have one) and the way you would like to present the business. This can include the colours you want your business to use, for example.
Another crucial section for a business plan is competitor analysis. By identifying some other businesses to compete with, it shows that you are in a position to.
This may involve researching the other companies’ products. One helpful method for your industry is called benchmarking, which is when you take another product and directly test it against your own. In your case, purchasing and analysing their teas might mean you can make sure yours will taste better, for example.
Based on the research of the audience and competition, you should have an idea of how to get customers to buy your tea. By outlining the marketing channels you intend to use, it displays to investors and lenders that you are likely to use the finance they give you effectively. For example, perhaps target younger people and none of your competitors use TikTok, plan to use that platform to advertise.
In your business plan, you should calculate and show all of the expected costs for what you would like to do. You could include expenses for any marketing activities, getting a location, equipment or manufacturing. When looking for funding, lenders or investors would likely ask specifically where their money would go. Having a fully costed and transparent business plan may make your venture more appealing.
To show the expectations for your business, you can put together a sales forecast . Estimate the number of sales you expect to receive and multiply it by your sale price to get a projection of the cash coming in. Often covering the first month, quarter or year. Be realistic and, if possible, back it up with research. One example is to look at the foot traffic at the store location.
To make sure that your financial information is managed and recorded accurately, it may be helpful to set up a separate business account. This allows you to see exactly what is going in and out of the business.
You may also need to record your expenses and make sure that they are all in order, so you can look back at the months to check the health of the business and file taxes correctly.
Countingup is the business current account with built-in accounting software to help make financial management as simple as possible. Its expense categorisation feature means that your costs can be automatically displayed to show which areas of the business they come under. This will help when moving forward with your plan and growing the business.
The Countingup app also includes a receipt capture tool, which means that any services you use can be paid for and easily added to your expenses. Use the phone camera to scan your receipts into the system from anywhere. Seamless, simple, and straightforward!
Start your three-month free trial today. Find out more here .
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Creating a comprehensive business plan is crucial for launching and running a successful bubble tea business. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your bubble tea business’s identity, navigate the competitive market, and secure funding for growth.
This article not only breaks down the critical components of a bubble tea business plan, but also provides an example of a business plan to help you craft your own.
Whether you’re an experienced entrepreneur or new to the food and beverages industry, this guide, complete with a business plan example, lays the groundwork for turning your bubble tea business concept into reality. Let’s dive in!
Our bubble tea business plan is crafted to address all vital components necessary for a detailed strategy. It highlights the business’s operational procedures, marketing tactics, market landscape, competition, management structure, and financial outlook.
Fully editable 30+ slides Powerpoint presentation business plan template.
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The Executive Summary introduces your bubble tea shop’s business plan, offering a concise overview of your shop and its offerings. It should detail your market positioning, the variety of bubble tea flavors and related products you offer, its location, size, and an outline of day-to-day operations.
This section should also explore how your bubble tea shop will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your shop’s unique selling points that differentiate it from these competitors.
Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the shop’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your shop’s financial plan.
When constructing the executive summary for your bubble tea business, it’s imperative to present concise yet comprehensive details about your establishment. This encompasses your shop’s name, its strategic location, and a brief on daily operations.
These insights not only serve to introduce your business but also highlight its distinctive attributes. The Unique Selling Proposition ( USP ) is pivotal, setting your bubble tea shop apart from the competition. This could be your emphasis on authentic recipes, the introduction of eco-friendly practices, or innovative beverage creations. Your USP is the essence of your executive summary, captivating your target audience and underscoring the exclusive value your shop brings to the table.
Example: “Blissful Bubbles,” situated in the lively Arts District of Metro City, occupies a cozy 800 sq. ft. corner on Vine Street. Opening its doors from 10 AM to 10 PM, it offers an eclectic mix of bubble tea varieties, from traditional milk teas to exotic fruit infusions. Its USP lies in the commitment to sustainability, using only biodegradable materials and ethically sourced ingredients, appealing to environmentally conscious consumers.
A solid understanding and articulation of the market dynamics are essential for the market analysis section. It should underscore the burgeoning potential of the U.S. bubble tea industry, supported by relevant statistics such as market valuation and growth forecasts. Discussing market trends like the shift towards health-conscious offerings or the integration of cultural authenticity provides a glimpse into the evolving industry landscape and your shop’s place within it.
The competitive landscape is equally crucial. In your executive summary, identify major competitors and delineate how your bubble tea shop is uniquely positioned. Whether through unparalleled taste experiences, superior customer service, or innovative loyalty programs, this section is your chance to highlight how your shop will shine in a competitive setting.
Example: Amidst the flourishing U.S. bubble tea scene, valued at $1.0 billion with an 8.6% growth rate from 2023 to 2030, “Blissful Bubbles” emerges as a sanctuary for bubble tea aficionados in Metro City. Competing against five local establishments, it sets itself apart with its dedication to environmental sustainability and a diverse menu that caters to both traditionalists and adventurous palates.
The collective expertise and background of your management team are invaluable to your business. Highlight the significant qualifications and experiences of your team members in this part of the executive summary.
This might include the entrepreneurial spirit of your CEO or the culinary creativity of your beverage director. Showcasing the team’s depth of knowledge not only strengthens credibility but also assures potential investors and partners of your bubble tea shop’s potential for success.
Example: “Blissful Bubbles” is led by dynamic duo, Jordan Kim and Taylor Cruz. Jordan, a seasoned entrepreneur with a passion for sustainable businesses, oversees the strategic direction, while Taylor, with their innovative culinary background, curates the shop’s unique beverage menu, together driving the vision of a modern yet conscientious bubble tea experience.
The financial overview should succinctly encapsulate your financial ambitions and projections, including revenue goals and profitability margins, offering a lucid perspective on your shop’s financial future.
Example: Targeting $760,000 in annual revenue by 2028 with a 13% profit margin ( EBITDA ), “Blissful Bubbles” is poised for robust growth. The financial roadmap is centered on strategic investments in sustainable practices and a compelling menu, supported by targeted marketing and community engagement, setting the stage for lasting profitability and recognition in Metro City’s vibrant culinary scene.
For a Bubble Tea Shop, the Business Overview section can be effectively divided into 2 main parts:
Briefly describe the shop’s physical environment, emphasizing its design, ambiance, and the welcoming atmosphere it offers to customers. Mention the shop’s location, highlighting its accessibility and the convenience it offers to customers, such as proximity to educational institutions, shopping centers, or ease of parking. Explain why this location is advantageous in attracting your target clientele, focusing on high foot traffic areas or regions lacking in bubble tea options.
Detail the range of bubble tea options and related products offered, from classic flavors to innovative and seasonal specials. Discuss your supply chain strategy, ensuring it supports the consistent quality of ingredients, like premium teas and organic fruits. Outline your pricing strategy , making sure it reflects the quality of products provided and aligns with the market you’re targeting. Highlight any special offers, loyalty programs, or sustainable initiatives that provide added value to your customers, encouraging repeat business and community engagement.
In the Market Overview of your bubble tea shop business plan, start by examining the size of the bubble tea industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities. Highlight how the global appreciation for bubble tea has led to a vibrant and growing market, with a diverse customer base eager for new and innovative beverage experiences.
Proceed to discuss recent market trends , such as the increasing consumer interest in healthier beverage options, exotic flavors, and customizable drinks. For example, highlight the demand for bubble tea varieties that cater to dietary restrictions (like vegan or sugar-free options) and the introduction of organic and locally sourced ingredients. Also, note the rising popularity of themed bubble tea shops that enhance the customer experience beyond just beverage consumption.
A competitive analysis is not just a tool for gauging the position of your bubble tea business in the market and its key competitors; it’s also a fundamental component of your business plan.
This analysis helps in identifying your bubble tea business’s unique selling points, essential for differentiating your business in a competitive market.
In addition, the competitive analysis is integral to laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.
The first step to understanding your market position is to identify who your competitors are. Start by mapping out local bubble tea shops and cafes that offer bubble tea as part of their menu. For example, if your specialty is authentic Taiwanese bubble tea, your direct competitors would include nearby shops that focus on traditional bubble tea recipes, as well as larger chain cafes that offer bubble tea among other beverages. It’s also important to consider indirect competitors, such as coffee shops or dessert bars that might offer a limited selection of bubble tea flavors.
Utilize online tools like Google Maps to understand the geographical spread of your competitors. Platforms like Yelp and TripAdvisor can provide customer reviews and ratings, offering insights into what customers appreciate or dislike about these competitors. For instance, if multiple reviews praise the innovative flavors and quick service at “Bubble Bliss,” these are competitive strengths to take note of.
To analyze your competitors’ strategies effectively, consider the following aspects:
Reflect on what unique value your bubble tea business brings to the table. Perhaps it’s your exclusive matcha bubble tea blend or your commitment to organic, sustainably sourced tea leaves.
Explore market opportunities by listening to customer feedback and keeping an eye on industry trends. For instance, the increasing interest in healthy, low-sugar bubble tea options could be a niche if your competitors haven’t yet tapped into this demand.
Your location plays a role too: A downtown bubble tea shop might focus on catering to the lunchtime office crowd with fast service and loyalty programs, while a suburban location might thrive by creating a community hub for local gatherings and events.
First, conduct a SWOT analysis for the bubble tea shop, highlighting Strengths (such as a diverse menu with unique and authentic flavors, and a strong focus on customer experience), Weaknesses (including potential high initial setup costs or the challenge of maintaining quality with seasonal ingredients), Opportunities (for instance, the growing demand for innovative and healthier drink options, and the ability to expand into catering or online ordering), and Threats (such as fluctuations in the prices of key ingredients or the increasing number of competitors in the market).
Next, develop a marketing strategy that outlines how to attract and retain customers through engaging and visually appealing online content, promotional offers for new flavors or loyalty rewards, active participation in local events and festivals, and partnerships with local businesses or schools. Emphasize the importance of building a brand that resonates with your target market , utilizing platforms where your audience is most active, like Instagram or TikTok, to showcase your products and shop atmosphere.
Utilize various channels to reach and engage with potential and existing customers.
Establish a robust online presence:
Connect with the local community:
Engage potential customers through enticing offers:
Maximize revenue streams and enhance customer satisfaction through effective sales strategies .
Enhance sales during customer visits:
Leverage technology for seamless transactions:
Foster customer loyalty and repeat business:
Finally, create a detailed timeline that outlines critical milestones for the bubble tea shop’s opening, such as finalizing the location, securing suppliers, completing the interior setup, and launching a soft opening. Include key marketing campaigns to build anticipation before the opening and after, tracking customer growth, feedback implementation, and potential expansion or menu diversification objectives, ensuring the business progresses with clear direction and purpose.
The Management section focuses on the bubble tea business’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the bubble tea business toward its financial and operational goals.
For your bubble tea business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.
The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your bubble tea business’s approach to securing funding, managing cash flow, and achieving breakeven.
This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.
For your bubble tea business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).
Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds
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Tea is one of the most widely consumed beverages in the world. With the growing demand for unique tea blends and flavors, it's no surprise that tea store businesses are booming. The global tea market size was valued at $52.12 billion in 2019 and is expected to reach $81.15 billion by 2027, growing at a CAGR of 5.8% during the forecast period.
If you're interested in opening a tea store business, there's no better time than now. However, launching a business of any kind can seem daunting. That's why we've put together a 10-step checklist to help guide you through the process of starting your own tea store business.
From evaluating the market and demand for tea to establishing an advertising and marketing plan, we'll cover everything you need to know to get your business up and running. Whether you're starting small or looking to expand a current business, these steps will help you create a solid foundation for success.
So, grab a cup of your favorite tea and let's dive in!
Before starting a tea store business, it is essential to evaluate the market and demand for tea in the area. Conduct market research to determine the current trends, customer preferences, and competition. Look for potential customers, including nearby offices, residential areas, schools, and universities. Get to know the types of tea that customers prefer and at what price points. Knowing the market and demand for tea will help in making informed decisions about the store's location, inventory, and pricing.
Identify the target audience for the tea store business, as this will determine the type of tea to offer and the marketing strategy. The audience can vary from health-conscious individuals who prefer herbal tea to business people who need a quick caffeine fix. Once the target audience is determined, it will be easier to decide on branding and marketing initiatives.
It is also essential to assess the competition in the area. Look for other tea stores, coffee shops, and cafes. Explore their strengths and weaknesses, such as type of tea offered, price points, ambiance, and customer service. Knowing the competition will help in creating a unique selling proposition, differentiating from competitors.
Finally, determine the economic viability of the tea store business. Look for potential sources of funding, such as bank loans or investors. Assess the cost of renting or buying a space, buying inventory and equipment, hiring staff, and marketing expenses. Create a financial projection to estimate the expected revenue, expenses, and profits.
| Tea Store Business Plan ADD TO CART |
Before starting any business, it is important to have a clear vision and goals in mind. This holds true for a tea store business as well. Defining business goals and financial objectives is crucial for a successful launch and long-term growth of the business.
The first step in defining business goals is to identify the purpose of the tea store business. Are you looking to provide a relaxing environment for customers to enjoy their tea? Do you want to specialize in unique tea blends and flavors? Or are you focused on providing a health-conscious menu? Long-term goals should also be considered, such as expanding to multiple locations or franchising the business.
Next, create specific and measurable goals that align with the purpose of the business. Examples could include reaching a certain number of daily customers, achieving a revenue target within a specified timeframe, or receiving positive reviews and feedback from customers.
Financial objectives are primarily focused on revenue, profit, and expenses. It is essential to have a clear understanding of the financial aspects of the business to ensure its long-term viability. Financial objectives should be created based on the goals of the business.
Expected revenue and profit goals should be set, taking into account the costs associated with operating the business. This includes rent, employee salaries, equipment costs, and the cost of tea and other supplies. Understanding these expenses and adjusting prices accordingly is essential for achieving financial objectives.
Creating a business plan and financial model is incredibly important when starting a tea store business. It helps you understand your market, competition, and financial projections. Here are some crucial chapters that your business plan should include:
Along with the business plan, you should also create a financial model that outlines your financials in detail. This will help you understand your startup costs, revenue streams, and break-even point. Here are some key components of a financial model:
Creating a solid business plan and financial model is essential for the success of your tea store business. It helps you stay focused, organized, and realistic about your goals and expectations. If you are unsure about how to create one, seek guidance from a professional or mentor who has experience in the tea industry.
One of the critical factors to consider when starting a tea store business is securing the necessary funding. You need to have sufficient funds to set up your storefront and buy equipment, inventory, and supplies to ensure your business runs smoothly. Here's how to secure the funding needed to launch your tea store business:
Location is a crucial aspect when it comes to opening a tea store business. You need to determine whether you want to set up the store in a physical or online location. Each option has its pros and cons, and you need to analyze them before making a final decision.
Physical Location:
Online Location:
In conclusion, choosing the right location for your tea store business can make or break its success. We hope that these tips and tricks will help you make an informed decision and set up a store that will attract customers and generate revenue.
Opening a tea store business can be an exciting venture, but it's important to follow the right steps to ensure success. As a pro business consultant, I recommend researching local regulations, permits, and licenses before getting started. This step can help you avoid legal issues and ensure that your business is operating legally in your city, state, and country.
By taking the time to research local regulations, permits, and licenses, you'll be setting your tea store business up for success from the start. Don't overlook this important step in starting your business, as it can save you time, money, and legal issues in the long run.
Now that you have chosen your tea store location and have obtained permits, it is time for the fun part - designing your store interior! Keep in mind that your store's layout and equipment should be a reflection of your brand and target audience.
After designing your store interior, it is time to get the necessary equipment for your tea store. You will need:
With your store interior design and equipment in place, you are one step closer to launching your tea store business. Congratulations!
One of the crucial steps in starting a tea store business is sourcing and ordering the right merchandise and tea. It is important to have a wide variety of tea types and accessories to offer to customers. Here are some chapters to help guide you through the process:
Before ordering any tea or merchandise, it is important to determine your target market. Is your tea store business catered towards health enthusiasts? Tea aficionados? Students? Once you have a clear understanding of your target audience, you can then make informed decisions on what types of tea and merchandise to stock.
Once you have a clear understanding of your target market, it's time to source tea and merchandise suppliers. There are numerous suppliers both domestically and internationally. Research different suppliers to find the ones that offer the best prices, quality, and selection. Consider attending industry trade shows to meet suppliers in person.
Once you have determined your target market and found your tea and merchandise suppliers, it's time to order and manage your inventory. It is important to keep track of inventory levels to avoid shortages or overstocking. Consider investing in inventory management software to help keep track of stock levels.
By following these steps, you can effectively source and order the right merchandise and tea for your tea store business. Remember to regularly review and adjust your inventory to meet the changing needs of your customers and market.
Advertising and marketing is a vital aspect of any business, and for a tea store, it is even more critical. Marketing will ensure that your target audience knows about your products, and advertising will help you stand out from the competition. Here are a few steps to follow when creating an advertising and marketing plan for your tea store business:
By following the steps outlined above, you can create an effective advertising and marketing plan for your tea store business. Remember to analyze and adjust your marketing efforts regularly to ensure your strategies are working effectively.
If you’re passionate about tea and have always dreamt of owning your own tea store, now is the time to make that dream a reality. With a little hard work, effort, and planning, starting your own tea business could be, not just your dream come true, but also a profitable venture in the long-term. Here are the steps you should follow to launch a successful tea store business.
The tea business has a broad range of niche areas that you can explore, such as organic teas, herbal teas, specialty teas, and blends. Choose your niche depending on your target market and the kind of products you wish to sell. For instance, if your target audience is health-conscious consumers, you may want to focus on organic and herbal teas.
Creating a business plan is essential for any business and the tea business is no exception. Your business plan should include a description of your tea business, the target market, products you plan to sell, finances, marketing plans, and other relevant information. It is advisable to seek professional guidance in crafting a solid business plan.
Depending on your location, you may require specific licenses and permits to operate your tea business. Do thorough research to determine the necessary permits and licenses you need and acquire them before opening up your business.
Your tea business's location is vital as it can significantly impact your store's success. Consider a location near your target audience, easily accessible, and has ample parking spaces.
Identify tea-related suppliers such as tea growers, importers, and wholesalers. Do your research to get quality tea leaves and accessories for your store. Establish business relationships with them to ensure quality products and timely deliveries.
The store layout and decor should align with your brand identity and target audience. Choose an aesthetically pleasing and welcoming ambiance that invites and keeps customers coming back.
Your payment processing system should be reliable and secure to process customers’ payments. Do research and choose a point-of-sale system that suits your tea business.
Identify the required roles such as cashiers, servers, and tea professionals, and create job descriptions. Hire employees based on their skills, experience, and qualifications. Train your employees to ensure that they deliver exceptional service and increase customer satisfaction.
Marketing is crucial for your tea business’s success. Develop a marketing plan that includes social media, advertising, and promotions. Determine the best media channels for your tea business, taking into account your target audience.
Launch your tea business with a grand opening event that creates buzz and excitement. It would be helpful to have tastings, giveaways, and other promotions to attract customers and generate interest in your business.
Opening a tea store business can be a rewarding venture, especially with the increasing demand for tea all over the world. The global tea market size is projected to grow to $81.15 billion by 2027, indicating some great opportunities in the tea industry.
We hope this 10-step checklist has provided you with a broad idea of what it takes to launch a tea store business successfully. By evaluating the market and demand for tea, defining your business goals and financial objectives, creating a detailed business plan, and securing the necessary funding, you can create a solid foundation for your tea store business.
From sourcing the right physical or online location to designing the perfect store interior, sourcing and ordering merchandise, and establishing a sound advertising and marketing strategy, you will be well on your way to opening and running a successful tea store business.
All the best as you dive into the world of tea retailing!
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Starting a tea business can be an exciting, innovative, and creative venture. But without a comprehensive plan to guide your efforts, it can also quickly become overwhelming. That's why we have created the #1 Tea Business Plan Template & Guidebook, the ultimate resource for entrepreneurs looking to tap into their inner barista and create a successful tea business. With our comprehensive guidebook and template, you'll be able to access all the information you need to make your business a success.
Get worry-free services and support to launch your business starting at $0 plus state fees.
1. describe the purpose of your tea business..
The first step to writing your business plan is to describe the purpose of your tea business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.
It also helps to include a vision statement so that readers can understand what type of company you want to build.
Here is an example of a purpose mission statement for a tea business:
Our mission at Tea Co. is to deliver the highest quality tea to our customers through health-focused, innovative products, while maintaining ethical and sustainable sourcing practices. We strive to create a positive impact in our community and beyond, inspiring tea lovers everywhere to enjoy the art of tea responsibly.
The next step is to outline your products and services for your tea business.
When you think about the products and services that you offer, it's helpful to ask yourself the following questions:
You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.
If you don't have a marketing plan for your tea business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals.
A good marketing plan for your tea business includes the following elements:
Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations.
In it, you should list:
In order to run a tea business, you will need the following equipment, supplies, and permits:
The second part of your tea business plan is to develop a management and organization section.
This section will cover all of the following:
This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.
Typically, expenses for your business can be broken into a few basic categories:
Startup Costs
Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a tea business varies based on many different variables, but below are a few different types of startup costs for a tea business.
Running & Operating Costs
Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.
Marketing & Sales Expenses
You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your tea business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.
A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your tea business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses.
Here are some steps you can follow to devise a financial plan for your tea business plan:
Why do you need a business plan for a tea business.
A business plan is an essential roadmap for business success. It outlines a business's goals and how it plans to achieve them. For a tea business, a business plan will help guide decisions about the types of tea to carry, how to market the business, how to manage finances and where to source raw materials. A business plan can also be used to attract potential investors and secure financing for expansion.
You should seek advice from a business adviser or consultant who has experience in the tea industry. They can help you create a business plan tailored to the tea industry and provide guidance on the best way to approach potential investors, suppliers and customers. Additionally, there are many online resources available to help with creating a business plan for a tea business.
Yes, it is possible to write a tea business plan yourself. Writing a business plan can be a time-consuming and challenging process, but it is possible with the right tools and resources. A business plan should include an executive summary, market analysis, competitive analysis, product and service offerings, operations, marketing and sales plan, management team and financial projections. Additionally, it should contain other important information such as desired funding sources, potential legal issues and potential risks associated with the proposed tea business.
We're newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.
Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.
From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.
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Opening a tea shop is a great idea for tea enthusiasts who want to turn their passion into a business. However, it is vital that proper planning is done before embarking on this venture. One of the essential aspects of a tea shop business is building a sound financial model. Without a proper financial plan , a business can struggle to stay afloat, yet with a realistic analysis and projection of the business finances, it becomes easier to make smart decisions that will help the business grow and achieve financial success. This article will provide you with a step-by-step guide on building a financial model for a tea store that will help you understand the tea business financial analysis , and provide a tea store revenue model , tea store profit projection , tea shop financial statement , tea business financial planning , tea store income statement , tea store financial performance , and tea store cash flow forecast .
One of the most important aspects of Tea Store financial planning is projecting sales revenue. The Tea store revenue model takes into account various factors such as the Launch Date, Sales Ramp-Up Time, Walk-In Traffic & Growth Assumptions, Customer and Purchases Assumptions, and Sales Seasonality to estimate future sales revenue.
The launch date of your Tea Store business is highly important. It sets the pace for all future activities and serves as a deadline for your planning and preparations. It's important to give yourself enough time to make all necessary arrangements to ensure a smooth launch.
The Tea Store financial model template provides an assumption for business launch month. Choose the date when your Tea Store business will start running. You may assume to launch your business in the middle of the year while the financial model starts in January. This can be useful if you need to prepare and schedule activities and costs related to the Tea Store business launch.
By choosing a realistic launch date and following the tips and tricks above, you can set your Tea Store business up for success from the very start. Don't underestimate the importance of a well-planned and executed launch!
When forecasting sales for your tea business, it's important to consider the ramp-up time to the sales plateau. This is the period during which sales gradually increase until they stabilize at a certain level.
The ramp-up period varies for each business, and can be influenced by factors such as location, marketing efforts, and competition. To determine your tea store's ramp-up period, analyze data from similar businesses in your industry. Depending on the specifics of your business, the period can range from a few months to over a year.
By forecasting your tea store's ramp-up time and sales, you can develop a detailed tea business financial plan, which includes a tea store cash flow forecast, tea store revenue model, tea store financial statement, tea shop financial projection, tea store income statement, and tea shop financial analysis. This plan will help you to gauge your tea store financial performance and manage your tea store profit projection effectively.
After the ramp-up period, the average walk-in daily traffic of visitors on weekdays is 50 during Mondays and Tuesdays, while Wednesday and Thursdays have a visitor count of 75, and Friday-Sunday is expected to reach a traffic count of 100.
This is an important assumption because it helps in determining the estimated sales potential of the tea store each day of the week. With a higher number of visitors on specific days, we can optimize our resources in terms of inventory, staffing, and other operational aspects.
The average walk-in traffic growth factor by years in the future is estimated at an incremental rate of 5% every year. These inputs allow us to calculate the future walk-in traffic for the next five years accurately.
In conclusion, factoring in the average walk-in daily traffic by weekdays is a vital aspect of building the financial model for the tea store. This input helps in determining the estimated sales potential of the store and optimizing its resources accordingly.
Understanding the conversion rates from tea store visits to actual sales is an important aspect of a tea business financial analysis. For instance, if 100 customers visit the tea store every week, how many of them will become new customers?
Based on the tea store revenue model, the percentage of new customers could be around 30%. This means that 30 of the 100 customers will buy tea leaves or other tea products for the first time. Meanwhile, what is the percentage of repeat customers?
According to tea shop financial statement, the percentage of repeat customers can be as high as 60%. This means that out of the 30 new customers, 18 of them will come back and buy tea again.
Besides, the number of purchases each repeat customer will have per month is also an important assumption in the tea shop financial plan. With the tea shop profit projection, it is estimated that each repeat customer will buy 1-2 packets of tea leaves every month.
By understanding the visit-to-sale conversion rates and repeat sales inputs, tea business financial planning can be improved. This can be especially beneficial in terms of creating a tea store cash flow forecast, tea shop financial projection, and tea store financial performance reports.
At our Tea Store, we sell a variety of different tea products that belong to specific product categories. To make it easier to understand our sales mix assumptions, we have entered them by product category lever.
For example, if we look at our Green Tea product category, we assume that it will account for 30% of our sales mix. Meanwhile, our Black Tea category is projected to make up 40% of our sales mix. Then, we have our Fruit Infusion category with 20% of the sales mix, the Herbal Infusion category with 5% of the sales mix, and our Specialty Tea category with 5% of the sales mix.
When entering our sales mix assumptions by product category, it helps us to better understand where our sales are coming from and how we can optimize them. We have projected our sales mix for the next five years, by product category.
In our tea store, we sell a variety of tea products such as black tea, green tea, herbal tea, and oolong tea. Each product belongs to a specific product category. It is much easier to enter assumptions on the product category level rather than the product level. This way, we can estimate the average selling amount for each product category and use it to calculate the average ticket size.
For example, let's say we estimate the average selling amount for the black tea category to be $10 for the first year and $11 for the second year. Similarly, for green tea, we estimate the average selling amount to be $12 for the first year and $13 for the second year.
Using the sales mix, which is the percentage of each product category sold, and the average selling amount of each category, the model will calculate the average ticket size. For instance, if the sales mix is 30% black tea, 40% green tea, and 30% herbal tea, then the average ticket size would be:
Average ticket size = ($10 * 0.30) + ($12 * 0.40) + ($8 * 0.30) = $10.80
As a tea business owner, it's important to consider seasonality when projecting sales and creating a financial plan for the upcoming year. Sales seasonality refers to the fluctuation in revenue that occurs throughout the year due to factors such as weather, holidays, and events.
For example, during the warmer months, sales of iced teas and fruit infusions may increase, while in the winter, sales of warm drinks like hot tea and cocoa may be higher. It's important to analyze previous sales data to determine the average sales per day for each month, and then adjust for seasonal factors accordingly.
Using a tea store revenue model, create a tea shop financial projection that takes into account sales seasonality to create a realistic estimate of sales and profits. By carefully analyzing and adjusting for seasonal factors, you can create a tea shop financial plan that sets your business up for success
| Tea Store Financial Model Get Template |
In order to establish and maintain profitability and long-term success of a tea business, it is necessary to have an effective financial plan. A crucial element of any good financial plan is having an accurate operational expenses forecast. A comprehensive operational expenses forecast should account for all key expenses of operating a tea store, including:
Operating Expense | Amount (per month) in USD |
---|---|
Cost of Goods Sold by Products % | $1,000 - $2,500 |
Employee Salaries and Wages | $1,500 - $4,000 |
Rent, Lease or Mortgage Payment | $2,500 - $6,000 |
Utilities | $500 - $1,500 |
Other running costs | $1,000 - $2,500 |
Tea shop financial plan should include a Tea store cost of goods sold, which is the cost associated with producing or obtaining the products sold by a store. This includes the cost of raw materials, direct labor expenses, and other expenses necessary for the creation of the product. The COGS is calculated by subtracting the cost of goods sold from the store's revenue.
Tea business financial analysis requires identifying the COGS percentages for each product category. It is crucial to understand what product categories bring the most revenue and what product categories bring the least revenue. For example, if the tea store revenue model shows that the highest revenue comes from green tea, the COGS percentage for the green tea category should be carefully analyzed to see if it can be lowered.
Tea shop financial statement and Tea store income statement should include a COGS percentage for each product category. The COGS percentage for the product category shows how much of the store's revenue goes towards producing the product category. Tea store profit projection relies on the COGS assumption, and it is important to maintain accurate COGS percentages.
Tea store cash flow forecast is an essential part of Tea business financial planning, and it is important to understand how changes in COGS could affect the cash flow. If the COGS percentage for a product category is too high, it may be necessary to reduce the prices for that product or adjust the COGS percentage for that product category.
Employee Salaries and Wages represent a significant portion of the Tea Store revenue model. To keep Tea business financial planning under control, we have made some assumptions:
Firstly, we will name our staff members/positions as follows:
Secondly, the Tea store profit projection assumes hiring plan for the tea shop financial plan:
Lastly, we need to have Full-Time Equivalent (FTE) staff annually:
By keeping these assumptions in mind, we can create an accurate Tea store income statement, Tea store financial statement, Tea store financial projection, and Tea store cash flow forecast to ensure financial performance growth and stability.
One of the biggest expenses for a tea store is the rent, lease or mortgage payment of the store space. It is important to plan and set aside enough finances for this expense to ensure the smooth running of the business.
Assuming a tea shop financial plan, the rent, lease or mortgage payment for the store can be calculated based on the location and size of the store. For example, a prime location in a busy city may have higher rent fees compared to a quieter location.
The tea store revenue model must be developed while considering the rent, lease or mortgage payment assumptions to ensure a profitable business. Based on this model, the tea business financial analysis can be done to project the tea store profit projection.
A tea store financial statement must be prepared which includes a tea store income statement, tea shop financial projection and tea store cash flow forecast to monitor the financial performance.
When creating a financial plan for a tea shop, it is important to consider the various utilities and costs associated with running the business. These include rent, electricity, water, gas, and internet, among others.
For instance, if tea business financial planning revealed that rent is one of the biggest expenses, you may consider opening your tea shop in a cheaper location. Similarly, you may try to reduce electricity costs by switching to more energy-efficient light bulbs or appliances.
Tea store cash flow forecast can help you to better understand how much you can afford to spend on utilities each month. By projecting your Tea store revenue model and estimating expenses, you can see how much money you will have left over for other needs.
It is important to keep these utility costs in mind when creating Tea shop financial statement, and to track your spending in order to understand your Tea store financial performance. By doing so, you can avoid overspending on utilities and ensure that your tea shop remains profitable in the long run.
Aside from the basic expenses such as rent, utilities, and employee salaries, there are certain other running costs that need to be taken into account when building a financial model for a tea store. These other costs include:
It's important to account for these costs in your tea store financial plan, as they can significantly affect your tea store profit projection . By doing so, you can better estimate your tea store revenue model and keep track of your tea store financial performance . Additionally, creating a tea store cash flow forecast and tea store income statement can help ensure that you have a solid tea business financial planning .
As a crucial part of the Tea Store financial model, the Financials Forecast provides valuable information on the projected financial performance of the business. This includes a thorough analysis of revenue, costs, expenses, profit, and cash flow over a specific period. The Forecasts show the projected Profit and Loss statement, Sources, and Uses report of funds. The financial forecasting process implements tea shop financial planning and helps business owners develop a plan and make informed decisions based on the Tea Store financial projection.
Once we have built revenues and expenses projections , we can check the Profit And Loss (P&L) from revenues down to net profit. This will help you to visualise 'Profitability' such as Gross Profit or EBITDA margin.
For a tea store, the income statement will include revenue from sales of tea, food products, and other retail items. The expenses will include rent, employee wages, inventory costs, and other operational costs. By subtracting expenses from revenues, we can calculate the net profit projection .
With a clear understanding of the tea store's financial performance , we can develop a financial plan that identifies opportunities for growth and optimizes operations for long-term success.
The sources and uses of funds statement within the financial model in Excel for Tea Store provides users an organized summary of where capital will come from Sources and how this capital will be spent in the Uses. It is important for the total amounts of sources and uses to be equal to each other. The sources and uses statement is particularly critical when the company is considering or going through a recapitalization, restructuring, or mergers & acquisitions (M&A) procedure.
When creating a Tea Shop Financial Plan, one must include a Tea Store Revenue Model, Tea Business Financial Analysis, Tea Store Profit Projection, Tea Shop Financial Statement, Tea Store Cash Flow Forecast, Tea Business Financial Planning, Tea Store Income Statement, and a Tea Shop Financial Projection. By having these key financial documents in place, you will be able to closely monitor your Tea Store Financial Performance and make necessary adjustments to your business operations with ease.
With a detailed financial plan in place and strategic business decisions, your Tea Store can effectively generate revenue and provide a quality customer experience in the competitive tea market.
Building a financial model for a tea store is a crucial step in ensuring the success of your business. From developing a tea shop financial plan to estimating your tea store revenue model , tea business financial analysis , and projecting your tea store profit projection , a well-crafted tea shop financial statement can help you make informed decisions that will set your tea store up for financial success. Additionally, a carefully crafted tea store cash flow forecast is an essential tool when making important financial decisions, such as investing in new equipment, expanding your store, or hiring additional employees. Armed with a solid tea business financial planning strategy, your tea store income statement can also help measure your financial performance and determine key areas for improvement. By following these steps and creating a comprehensive tea shop financial projection , you’re on your way to building a sustainable and successful business.
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If you want to start a tea shop or expand your current tea shop, you need a business plan.
The following Tea Shop business plan template gives you the key elements to include in a winning Tea Shop business plan.
You can download our Business Plan Template (including a full, customizable financial model) to your computer here.
Below are links to each of the key sections of your Tea Shop business plan: I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan
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Tea Shop Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan
Check Our Tea Cafe Pro-forma Template. Excel template – robust and powerful. This is your solid foundation to plan your business model. Five year tea cafe financial projection excel for fundraising and business planning for startups and entrepreneurs. Key financial charts, summaries, metrics, and funding forecasts built-in. Created with the mind of the tea cafe business. Used to evaluate a tea cafe business before selling it. Unlocked – edit all – last updated in Sep 2020. Generates profit loss projection for the tea cafe, p&l forecast, break even analysis, and financial metrics in GAAP/IFRS formats automatically.
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NOTE: Single-User pertains to a limited Single User License where the template can only be used by one single user; while Multi-User is a license for users sharing the template with up to 20 members. Please refer to Terms of Use and License and Permitted Use for clarification.
TEA CAFE EXCEL PRO FORMA TEMPLATE KEY FEATURES
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Track your spending and staying within budget Have you written a vague idea of cash inflows and cash outflows on the back of a napkin? All is well and good. Looking at the pro forma income statement for startup will give you a snapshot of the past business performance, but it won’t show the future in terms of the Projected Cash Flow Statement. With a cash flow statement forecast, you can plan future cash inflows and cash outflows and compare it to the budget, which can be invaluable information.
External stakeholders, such as banks, may require a regular forecast. If the business has a bank loan, the bank will ask for a Tea Cafe Startup Financial Model regularly.
Avoid Cash Flow Shortfalls Unexpected Cash Flow Statement Proforma shortfalls can cause significant damage to your business, and it may take months to recover. Negative Cash Flow can appear if you don’t continuously track the incoming cash and outgoing of your business. Fortunately, you can solve Pro Forma Cash Flow Projection shortfalls with a bit of effort. Forecasting your Cashflow Forecast will help you identify — and plan for — market fluctuations, sales seasonality, and other cases that can lead to unpredictable Cash Flow Statement For 5 Years. Pro Forma Cash Flow Projection can even help you visualize Cash Flow Statement Projection trends with the help of automatically generated charts and graphs.
Update anytime With Pro Forma Template Excel you can easily adjust inputs at the launch stage and throughout the further activities of your store to refine your forecast.
Saves you time Financial Model In Excel allows you to spend less time on finances and more time on your products, customers and business development
Works for startups Financial Projection Model Template creates a financial summary formatted for your pitch deck
REPORTS and INPUTS
Financial Statements Our Tea Cafe Pro Forma Template has a pre-built integrated financial statement structure that contains all the primary financial statements (Balance sheet, p&l forecast, and cash flow forecast) and creates financial forecasts for the next five years automatically.
This integrated financial statement structure has pre-built proformas, financial and managerial reports, and financial ratios. Users can choose the presentation of financial information in GAAP or IFRS format for their convenience.
Financial KPIs In the Budget Financial Model you can visually track your key financial indicators (KPIs) for 24 months and up to five years. The model all KPIs you might need for your company: – EBITDA/EBIT shows your company’s operational performance; – CASH FLOWS show your company’s inflows and outflows; – CASH BALANCE this is the forecast of cash in hand you will have.
Valuation This Pro Forma Projection has a valuation report template that will allow users to perform a Discounted Cash Flow valuation with just a few rate inputs in the Cost of Capital.
CAPEX This Tea Cafe Pro Forma Template consist a CapEx calculation with pre-built formulas helps users calculate the volume of capital expenditures using numbers in the pro forma profit and loss statement and balance sheet.
Top Revenue The top line and bottom line are two of the most important lines on a company’s income statement projection. Investors and analysts pay special attention to the company’s revenue and profits and carefully monitor any changes regarding these financial metrics from quarter to quarter and year to year.
The top line of the profit and loss proforma refers to a company’s revenues or gross sales. Therefore, when somebody says that the company has ‘top-line growth,’ it means that the company is experiencing an increase in gross sales or revenues, which should positively impact other company’s financials and overall performance.
Loan opt-in The loan amortization schedule template in this Tea Cafe Profit Loss Projection reflects the schedule of repayment of the loan. It shows detailed information about the company’s periodic payments or installments that comprise of principal amount and an interest component. These elements are shown in the loan amortization schedule template for the period till the end of the loan term or up to which the full amount of the loan is paid off.
Liquidity KPIs Working Capital. The working capital financial metric reflects the money you need for short-term operations. Working capital shows the difference between current assets and current liabilities.
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Excel – Single-User: .xlsx Excel – Multi-User: .xlsx Free Demo – .xlsx
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By: Author Tony Martins Ajaero
Home » Business ideas » Food Industry » Bubble Tea Shop
Are you about starting a bubble tea shop ? If YES, here is a complete sample bubble tea shop business plan template & feasibility report you can use for FREE . Bubble tea is a tea that is sweet and refreshing and that originated in the early 1980s in Taiwan.
There are different names by which bubble tea is known and they are pearl milk tea, boba tea, and Zhen zhu nai cha. Bubble tea is so named because of bubbles that were produced during the shaking process when the tea is being made; also, another reason is its bottom cup which is shaped like a dome.
This Asian drink usually has little balls that are squishy – tapioca pearls – in nature and goes through the drinker’s straw. Going into the bubble tea business requires the entrepreneur to be innovative and creative when mixing blends or thinking up base for the tea.
However, as this is not a popular business you will need the help of a business consultant to help you conduct a market research on the viability of this business.
It is from the findings of the consultant that will help you determine if the business is worth starting up or if it should remain just a business idea. After getting positive feedback from your business consultant, you will need to write a business plan for your bubble tea business
1. industry overview.
Even though Americans are regarded as a coffee society, bubble teas are fighting to ensure that they grab the attention of the American and make them switch to drinking bubble teas. The tea which originated from Taiwan in the early 1980s have seen people who are health conscious dump their other drinks for it.
According to a data report collated by Foursquare, the bubble tea business has increased in popularity as more people were visiting bubble tea stores in 2015 to get or drink bubble teas or to buy the ingredients that would enable them make their own bubble teas at home.
However, even though more people are now switching over to bubble tea, it is yet to reach the scale of some giant coffee stores in the united states of America. Coffee chain stores like Starbucks and Dunkin’ Donuts for instance have over 13,000 and 8,000 stores respectively in the United States of America.
There are also existing tea stores in the United States but they sell non-bubble tea and are yet still far behind the coffee stores, this fact makes it hard for bubble tea to grab a strong hold of the market, as the few bubble tea stores do not have a strong brand presence.
According to statistics, Americans are more of a coffee than tea people, drinking 8 fluid oz. of coffee per day, and only one-third of tea. This fact also places bubble tea on an uncertain level, as it would be hard to break the American coffee tradition.
However, this is not to say that all is doom and gloom for bubble tea, as most beverage drinkers point to the fact that bubble teas offer a refreshing variety as it can be a smoothie or a tea. Also, the fact that there is no caffeine in bubble tea makes it a favorite for those who do not want caffeine in their beverages.
In the United States of America, bubble tea stores are mainly located in the West Coast due to the large number of Asian and Asian-American communities. For instance, in most Asian restaurants in Los Angeles, bubble tea products are often on the beverage menus.
Even though, most of bubble tea’s growth are mainly concentrated in few regions, there is still room for growth, especially as the attention of the media has been caught and as well as much is being done on social media platforms to promote bubble tea.
Due to the fact that bubble teas have started gaining wide acceptance in the United States of America, we are establishing our bubble tea business so as to offer our various customers quality tea as well the choice of having different flavors. We have our customized truck in place to cater to all our customers in parks, and other public places.
Our bubble tea business is located in a strategic location that is not saturated thereby offering us the opportunity of attracting more customers. Also, we are located in a place that is easy for customers and employees to conveniently have access to.
We have carefully considered our competition here in Mississippi and are rest assured that we would stand out from them due to our quality products and services with affordable pricing and also due to the fact that we have laid down publicity strategies that will be effective in making us stand out once implemented.
Due to the fact that we intend to serve our bubble tea in different varieties and also that we believe in having a professional package, we are therefore investing in specialized bubble tea making equipment such as shakers, sealers, and an electric induction heater. We also have invested in quality small equipment such as stirrers, sugar dispensers, tea jugs and a Point of Sale (POS) Machine.
Even though bubble teas are a specific niche, there are still different flavors that our customers can choose from; this is why we have developed a menu that will accommodate different bubble tea flavors to accommodate any of our customers’ wish.
Because we know how important it is to use only quality equipment in making bubble tea , we intend to source for our ingredients from Taiwan. Our purchasing manager has carried out the necessary research on this and has identified quality suppliers and vendors that fit our budget.
Our employees are the face of the business and so we not will only pick competent employees to help run the business but also be able to communicate the brand effectively to our customers. Also, our employees will be trained on how to make bubble tea that are of Teelicious’ standards.
Teelicious Bubble Tea is owned and operated by two sisters Jackie and Robin Turee. Jackie owns a degree in Business Management, whilst Robin has experience in the beverage industry. Both will be bringing their experience and expertise to bear on the business.
Teelicious Bubble Tea is a tea establishment that deals in all flavors and types of bubble tea. We will sell our bubble tea as a bottled beverage ready-to-drink product. Our bubble tea will be an unusual substitute to traditional tea whilst still providing all the best experience to our different customers.
Teelicious Bubble Tea’s intention is not to make only revenue but also to make sure we have a healthy margin always. Also, we do not intend to sell bubble tea alone as we intend to deal in various products that are associated with bubble teas as well as offer services that are in line with bubble tea and any other bubble tea related business that is permissible under the laws of the United States of America.
Therefore some of the products and services are;
Our Business Structure
Teelicious Bubble Tea is a tea company that has been established to make profit as well as favorably compete with its competitors; however, for this to be achieved, we have to ensure that we get our business structure right, as this will go a long way into determining if we will achieve our goals and objectives or not.
Therefore, in getting our foundation right, we intend to get competent and experienced staff that thoroughly understand this business and also have the experience necessary to help us achieve our goals and objectives. The employees we intend to hire must also understand our core values, what we stand for and also be able to communicate this effectively to others as well as to the lower cadre staff.
Due to the fact that we intend to make, sell and serve bubble tea as well as certain ingredients that would be needed for those who intend to make this tea for themselves, we would need several employees assigned to different positions that will cover all the products and services we intend to sell here at Teelicious Bubble Tea.
Below is the business structure that we intend to build at our Teelicious Bubble Tea company;
Chief Executive Officer
Quality Assurance manager
Human Resources and Admin Manager
Purchasing Manager
Accountant/Cashier
Inventory Manager
Store Manager
Marketing and Sales Team
Customer Service Executives
Truck Drivers
The bubble tea business is a great business concept that will see us creating a niche and become recognized in the market. However, due to the fact that we pride ourselves on professionalism, we have decided to hire a business consultant to critically look at our business concept and let us know if we have any chances of survival in this business.
The business consultant intends to use the SWOT ( Strength, Weakness, Opportunities and Threats ) analysis to determine what we were likely to go through in the course of starting and running the bubble tea business in Mississippi. Below is the result that was gotten from the analysis that was conducted on Teelicious Bubble Tea;
There are several strengths which we possess and which will be beneficial to our bubble tea business. First off, we have a strong distribution channel which will ensure that our bubble tea penetrates and is in reach of our customers who are far away.
Secondly, we have employed efficient and competent employees who understand the beverage market and know what it will take to take us to the top. Also, our owners who have the required experience needed to ensure that we become the brand we intend to be.
Our weaknesses stem from the fact that this is not a known segment and so there will be more difficulty breaking into this market and attracting the needed customers especially from the carbonated drinks share market. Also, we would be battling with other healthy drinks in the market in order to create an identity and stand out.
We have several opportunities that are available to us and they abound in the fact that we intend to continually introduce new products and innovations. Also, we are building a brand that we want to ensure is attractive to global investors and partners.
Due to the fact that every business experiences threats, we expect to experience strong competition from new competition in same location or around us. Also, we also expect issues such as people claiming to have health issues from taking our product.
Regardless of the threats we are going to face, we are optimistic that we would come out tops as we have laid down strategies to ensure we are proactive to these issues.
More people are now health conscious and so there are less people going for carbonated drinks and more people going for healthy alternatives such as smoothies, milk and fresh fruit juices. This has caused more already established carbonated drink companies to go into the production of these healthy alternatives so as to maintain a share of the target market.
Even though this trend barely touches the bubble tea market but anyone in this business will need to be proactive as regards researching new flavors and types that will excite the existing customers while attracting new customers to patronize the business.
Another trend in the bubble tea business is the fact that most bubble tea businesses have gone beyond just making and selling bubble teas to customers , but they have also come up with recipes and DIYs for customers who would want to make these bubble teas for themselves at home.
Also, to garner more publicity for bubble tea, most bubble tea stores have gone beyond selling these tea in basic stores but have ensured that the tea is now sold via van to people in the parks and in other public places, this has raised awareness for bubble tea.
The fact that we are living in an internet age has a great impact on any business particularly the bubble tea business. The website is a good place to advertise and promote bubble tea, as well as social media platforms such as Instagram, Facebook, and Twitter.
Also, there are now mobile apps that will allow customers know when there is a new recipe, and also provide tips and advice and even information regarding bubble tea.
As more people are getting increasingly aware of what they take in and are conscious about their health, more people are shifting towards healthy drinks and bubble tea is one of them. This means that there is a huge target market waiting to be grabbed.
This is not a drink that can be limited to just a certain age range, as it can be taken by almost everyone. Our strategic location in Mississippi has ensured that we are favorably close to several of our target markets. We however conducted a market research that would allow us make informed
The market research would help us define our target market by demographics and psychographics. Therefore, we are going to be selling our bubble tea and its allied products or services to the following group of people;
Our competitive advantage
Our aim of starting Teelicious Bubble Tea is to ensure that we are the preferred bubble tea business in Mississippi and in the whole of the United States of America. We have our set strategies that will ensure that we can not only make our intended profit but also that we can favorably compete with our competitors.
It is for these reasons that we have drafted several competitive advantages that will enable us remain unique and also set us apart from other bubble tea competitors.
Our first competitive advantage is to ensure that our bubble tea truck gets customized with a vending machine as this will allow us have prepared bases in place and also serve our customers in public places without wasting their time. Our truck will also be well equipped with POS Machines for those who do not have cash on hand to pay.
Another competitive advantage we have is the fact that we are constantly churning out new recipes that will create different flavors and type of the bubble tea. We want our customers to remain intrigued with the different flavors that we have to offer.
Asides, from the different flavors we intend to offer, we also intend to ensure that the ingredients used in making our bubble tea are of top quality.
Another competitive advantage we have is our excellent customer service which we offer to all our customers. We know how important having loyal customers are to a business and so through our strategy, we intend to retain more than 80% of our customers while also aiming to attract new ones through our publicity and advertising strategies.
Finally, we have the best employees that are not only experienced but competent as well. We intend to make sure that our employees are not only paid adequately but that they also undergo continuous training that will ensure that their skills are enhanced.
Teelicious Bubble Tea is a bubble tea store that has been established to make different flavors of bubble tea for our various customers and also to ensure that revenue is made and profit maximized from the different products we intend to make for our customers.
Teelicious Bubble Tea therefore intends to generate income by selling the following products to its customers;
The fact that people are now being conscious about what they drink is a testament to the fact that the demand for bubble tea is about to surge better than before.
This is why our offering of quality bubble tea, our different flavors as well as our positioning in the market has made us quite optimistic that we would not only generate enough revenue but that we would meet up with our target within a year of running our bubble tea business .
Having looked critically at the beverage industry, we have seen that the bubble tea is a great niche for us to go into and having analyzed our chances with the help of a reputable business consultant here in Mississippi, we are quite certain that we will not only grow but thrive in this market.
Our business consultant gathered data and information from the field to help us arrive at the following sales projections below. The assumptions are based on certain factors such as location and type of business. Below is the sales projection prepared on behalf of Teelicious Bubble Tea:
N.B : The above projections were done based on several assumptions as regards location and also what is obtainable in the industry. Some of the assumptions used in carrying out these projections were based on the fact that there won’t be any major economic downturn and that also there won’t be any arrival of a new competitor between the periods of projections.
Any change in these assumptions would likely lead to a change that could be either cause the sales projections to be higher or lower than the stated figures.
Deciding our marketing and sales strategy is very important to us as we understand that without marketing we will be unable to sustain the business and grow it to the level that we intend. Due to the importance of marketing and sales, we intend to conduct a thorough marketing analysis that will enable us understand the market we intend going into and the best way to penetrate.
Asides from helping us understand our target market, the marketing research would also help us better structure our business so as to be able to be proactive whilst dealing with our customers and their varying demands. Having the right marketing strategy would also help set us apart from our competitors and also allow us to favorably compete with them.
Not getting the marketing strategies right could lead to a lot of customers leaving and potential ones not willing to come in and so we have engaged the services of a reputable marketing consultant who not only understands the beverage market but is also knowledgeable on what to do to enable us have the customers that we might need for our bubble tea business.
The marketing consultant will work together with our marketing and sales team to ensure that all strategies drafted are effectively implemented as well as in accordance with our core values as a company.
We also will not neglect the internet as a means to market our products and services at Teelicious Bubble Tea because we are aware of the wide reaching effect the internet has. Therefore, the marketing and sales strategies that we intend to adopt for Teelicious Bubble Tea are;
The aim of conducting publicity or advertising for Teelicious Bubble Tea is to create customer awareness for our bubble tea and their related products, while also ensuring that we establish a brand that will become a top market leader in this segment of the industry.
We therefore intend to explore every means of promoting Teelicious Bubble Tea to our customers – existing and potential.
Because we want very strong publicity and advertising strategies for our brand, we intend to engage the services of a top consultant here in Mississippi who has the reputation and experience that will be necessary for the growth of Teelicious Bubble Tea.
Our aim is to ensure that we are not only known in Mississippi but in the surrounding states and eventually in the whole of the United States of America. Therefore some of the platforms we intend to use in promoting Teelicious Bubble Tea are;
When it comes to setting a price for a product, several considerations are taken such as the quality of the product, how much it took to produce the product and the running expenses incurred in the process of producing the product. There are variant powders and syrups that are used for bubble tea that are of different quality, and so the higher the quality of ingredients used, the higher the price would be.
Because we get most of our products from Taiwan, we also have to factor in shipping costs when setting the price for our bubble teas or the ingredients used in making the tea. We however would like to assure our customers that we intend to ensure that our bubble teas are very affordable and pocket friendly.
Also, in the first two months of business, we would give our customers a discount when they purchase our tea as this we believe will be a way of attracting more customers to our business.
Because we understand that our customers will want to have access to different payment options when they purchase from us at Teelicious Bubble Tea, we have come up with different payment platforms to accommodate all our various customers.
Therefore the payment options that will be made available to all our customers for any of our products and in any of our outlets are;
The above payment options were carefully chosen for us by our bank after a careful consideration on our kind of business, and will work with no hitches for any of our customers.
Every business needs start-up capital to be able to use in financing some aspects of the business till the business is able to sustain itself, and make profit.
Therefore for our bubble tea business, we intend to spend most of our capital to stock up on raw materials, get a truck as well as pay our employees and the bills we might incur during certain points of running the business, The key areas we therefore intend to spend our start-up capital on are;
From the above report, we would need an estimated amount of $250,000 to be able to start and successfully run our bubble tea business here in Mississippi. The amount basically covers our employees’ salaries and utility bills for a period of three months. It also covers overhead expenses such as bubble tea making equipment.
Generating Funding / Startup Capital for Teelicious Bubble Tea Business
Teelicious Bubble Tea is a family business run by two sisters, Jackie and Robin Turee. We want the business to be in the family and for that reason we have decided against going for external investors that might want to become partners with us during the course of generating capital.
We have therefore decided to limit our sources of capital to just this four sources. Below are the sources we intend to generate capital from;
N.B: From our personal savings, we were able to generate the sum of $20,000 . We got the amount of $20,000 as soft loans from friends.
We approached the SBA for a little that was approved for us to the tune of $60,000. We also have approached our bank for a loan of $150,000 and have submitted the necessary documentation and have been assured that our application will soon be approved; after all necessary documents have been checked.
The aim of every business is so as to make enough revenue and eventually profit that will sustain the business throughout its lifecycle. To achieve this, certain factors such as having competent employees, minimizing cost and reinvestment of profit as well as having loyal customers is very essential.
Not employing the right staff can be detrimental to one’s business, because not only will the staff not understand what it is the company wants to achieve but they will also not be able to meet up to the productivity quota that the company requires.
It is for this reason that we intend to employ only employees that are competent and also understand what we stand for as a company. We will ensure that our employees are adequately compensated both intrinsically and extrinsically.
As we continue to produce quality bubble tea for our customers, we know that overtime our running costs will be reduced a bit, allowing us to minimize cost and maximize on our profit, which we intend to re-invest back into the company so as to boost its bottom line, ensuring that we remain in business for a long time to come.
Finally, our customers are very important to us for without them, we wouldn’t be in existence, and so we are ready to listen to our customers’ feedback and complaints and ensure that they are promptly attended to. We also intend to ensure that our loyal customers are effectively rewarded with discounts and other incentives especially when they refer other customers to us.
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Marketing Plan. Traditionally, a marketing plan includes the four P's: Product, Price, Place, and Promotion. For a tea shop business plan, your marketing strategy should include the following: Product: In the product section, you should reiterate the type of tea shop that you documented in your company overview.
Legal business aspects — Register for taxes, open a business bank account, and get an EIN. Production setup — Set up your production facility with the necessary equipment for blending, packaging, and labeling. Online store — Set up an e-commerce platform to sell your teas directly to consumers.
Upstate Tea has a shop open for tea tastings, where teas are available in various quantities, including 3 teas for $3.00, a pot of tea for $2.00 per person, and prices vary for teas sold by the ounce with a 2 oz minimum. Tea tastings are available for $3.00 per person, and a pot of tea costs $2.00 per person.
Read: Best Tea Brands. 5. Choosing Your Business Model. You need to select a business model for your tea business. There are various tea business models one can choose based on the target market, product offerings, and customer preferences. Here are some common business models used in the tea industry: Retail Tea Shop
Open for Business. 1. Choose the Name for Your Tea Business. The first step to starting a tea business is to choose your business' name. This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable.
The owners are contributing $10,330 of investment to the business. We need a total of $63,963, and are seeking a long-term loan of $53,633; we plan to pay this loan back in full within 6 years, at a 9.25% interest rate. Long-term Assets, $13,808. Refrigerated Chocolate Case: $3,500. Tea Racks: $2,300.
Another business model involves the tea bars on the physical location that provides a safe and comfortable sitting arrangement and pleasant ambiance. Broadly, tea bars are a bit sophisticated, furnished, and air-conditioned stores. This business model sells tea at a premium price and also offer various flavors of tea along with coffee.
Date 3: Goal 3. Date 4: Goal 4. Date 5: Goal 5. Your operations plan should give readers a clear idea of your company's day-to-day operations, how they are structured, and your long-term goals for the company. Create a winning business plan quickly & easily with our Ultimate Tea Room Business Plan Template.
Writing a tea shop business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan: 1. Executive Summary. An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and ...
Based on your tea's main draws and your target audience, you should be able to put together your brand. Explain the name you have chosen, the logo (if you have one) and the way you would like to present the business. This can include the colours you want your business to use, for example.
2. Tips for Building Tea Business So, you've decided to move forward with two leaves and a bud, and you're ready to start selling. What are some of the first steps you can take to build the foundation for a solid tea business? Plan your tea line: Remember, particular groups of people like particular types of tea.
How to Write a Tea Room Business Plan in 7 Steps: 1. Describe the Purpose of Your Tea Room Business. The first step to writing your business plan is to describe the purpose of your tea room business. This includes describing why you are starting this type of business, and what problems it will solve for customers.
Determine the start-up costs involved in setting up your tea production business, including equipment, sourcing teas, and packaging. Develop a comprehensive production plan, outlining the cultivation, harvesting, and processing methods for your teas. Establish supply chain relationships with small farms and growers around the world to source ...
2. Draft a tea room business plan. 3. Develop a tea room brand. 4. Formalize your business registration. 5. Acquire necessary licenses and permits for tea room. 6. Open a business bank account and secure funding as needed. 7. Set pricing for tea room services. 8. Acquire tea room equipment and supplies. 9. Obtain business insurance for tea room ...
Business Plan. Creating a comprehensive business plan is crucial for launching and running a successful bubble tea business. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your bubble tea business's identity, navigate the competitive market, and secure funding for growth.
Step #6: Research local regulations, permits, and licenses. Step #7: Design store interior and acquire necessary equipment. Step #8: Source and order merchandise/tea. Step #9: Establish advertising and marketing plan. Step #10: Launch tea store business. 1. Evaluate The Market And Demand For Tea.
How to Write a Tea Business Plan in 7 Steps: 1. Describe the Purpose of Your Tea Business. The first step to writing your business plan is to describe the purpose of your tea business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking ...
One of the essential aspects of a tea shop business is building a sound financial model. Without a proper financial plan, a business can struggle to stay afloat, yet with a realistic analysis and projection of the business finances, it becomes easier to make smart decisions that will help the business grow and achieve financial success.
Use this free Tea Shop business plan template to easily create a great business plan to start or grow your business. ... customizable financial model) to your computer here. Below are links to each of the key sections of your Tea Shop business plan: I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis
This is your solid foundation to plan your business model. Five year tea cafe financial projection excel for fundraising and business planning for startups and entrepreneurs. Key financial charts, summaries, metrics, and funding forecasts built-in. Created with the mind of the tea cafe business. Used to evaluate a tea cafe business before ...
Let's go through the content of each section in more detail! 1. The executive summary. The first section of your tea room's business plan is the executive summary which provides, as its name suggests, an enticing summary of your plan which should hook the reader and make them want to know more about your business.
Marketing promotion (grand opening promotion and general business promotion) - $7,000. Bubble tea making equipment - $15,000. Cost of storage equipment and hardware (shelves, racks, bins, cash register, security gadgets) - $15,000. Cost of purchasing a fairly used van - $30,000. Cost of launching a website - $500.