How to Start a Tea Wholesale Business? [Investment, Steps]

As one of the leading tea exporters globally, tea is an inseparable part of almost every Indian’s life. While the country enjoys a desirable fondness of the tea, thinking of the tea wholesale business is a great idea to consider. The nourishment and refreshment that tea provides is appreciated beyond borders; therefore, it can be counted as one of the best wholesale businesses to start.

So, if you are thinking about how to start a wholesale business then this guide covers all the information on how to start a wholesale business at home.

1. Research, Discussion, and Planning

The first step towards a successful wholesale business idea is to properly conduct the research, discussion and planning of that business. Before setting up your tea wholesale business, the research should cover the entire spectrum of market opportunities and an analysis of your competitor’s performance. You have to gain in-depth knowledge about the several varieties of tea in the market, their blends, names, brews, medicinal benefits, and origins.

Knowledge of the steps involved in the processing of tea is another vital skill to have. Apart from these factors, you need to consider other factors like location, investment, storage, and returns.

In order to research better about the potential success of the new wholesale business ideas, you can also conduct SWOT (strengths, weaknesses, opportunities, threats) analysis.

2. Choose An Appropriate Location and Investment Source

Since you’re thinking about how to start a business selling wholesale items, you need not necessarily choose a location near a production site.

For wholesale business ideas, you need to choose a location with good transportation links to send and receive your products from the distributors and the retailers with ease. After choosing an appropriate location for your setup, you can confirm the investment in your tea wholesale business.

The investment mainly depends on your business plan and business scale. The investment figures can vary from Rs. 50,000 to Rs. 30 lakhs from a metropolitan city perspective. Location, interiors, machinery, decor, staff, and other factors define the budget. With limited investment resources, opening a wholesale business in a village will be very easy.

For earning a profit, you can bring variety to the types of tea you offer and use customer feedback to improvise the menu. With proper strategy, you can easily have Rs. 15 to Rs. 20 as profit margin per cup, while the monthly turnover can range from Rs. 60,000 to Rs. 1 lakh.

Thus, location and investment are crucial factors in knowing how to start a business selling wholesale items.

3. Obtain The Necessary Licenses And Permits

Since tea is a food product, it usually involves some sort of licensing and permits. These are a few of the permits and licenses you require for your tea wholesale business.:

• FSSAI Certificate: Food Security And Safety Authority of India
• EIN: Employer Identification Number
• GST: Goods and Service Tax
• Company registration
• MSME/SSI Registration
• Trade License

Acquiring the correct licenses is an essential step in fulfilling these new wholesale business ideas.

Also Read: Tea Brands in India

4. Hire The Adequate Staff

The answer to the question of how to start a wholesale business won't be complete without hiring adequate staff. Since employees are an integral part of any business’s success, the next step after obtaining licensing is hiring competent staff.

The staff you hire must be dedicated, hard-working, and know the tea business’s intricate details. Since this kind of work may be more physical, the workers must be capable and willing to carry out all the physical activities efficiently.

5. Networking Is Necessary

If you wish to know how to start a wholesale business, networking must be emphasised in due process. In today’s world, where everyone is connected through social media, networking assumes an important role in getting your business started. A good connection with your vendors and competitors plays a huge role in determining the success of your wholesale business ideas. A good network helps you gain different perspectives about several things in the business and provides you with valuable insights.

6. Associate With Manufacturers

While thinking about how to start a wholesale business, associating with tea manufacturers is a must.

Since this is one of the best wholesale businesses to start, it is vital that you become the distributor of a particular company that is looking for such links in your area, as one can only become the distributor of one tea company. This serves the interest of both the manufacturer and the wholesaler to find a comfortable situation. After keeping a fair margin of their own, you, as a wholesaler, could supply the products further. This could also be a wholesale business in the village.

7. Connect With The Retailers

After you have associated with manufacturers, the next step on your journey is to connect with your retailers. The connection with manufacturers may prove futile if you don’t have any retailer or distributor to sell to. Thus, retailers and distributors form an important part of this business chain of the tea wholesale business.

8. Marketing Strategy Is A Must

The next step of how to start a wholesale business is to have a marketing strategy that would boost the sales of your wholesale business ideas. This marketing strategy could be two-fold, where both online and offline mediums can be given due attention. The two phases of the marketing strategy could be as follows:

• Offline strategy

Through the use of offline strategy, one could increase their presence in the areas within proximity. This offline strategy depends on the word-of-mouth marketing principle.

By serving your existing customers, the quality product makes your wholesale business one step closer to success. This offline strategy also comprises various schemes, gifts, samples, and other offers.

• Online strategy

No matter how effective the offline strategy may prove to your business, you are surely missing out if you are not exploring the options of an online marketing strategy. This online strategy widens your reach in public and helps your business connect with a more extensive section of people, which ultimately results in more profits and more sales. Thus, marketing can work as a catalyst if worked upon correctly; effective use of both online and offline strategies can significantly boost your business growth.

Thus, it is quite evident that a wholesale business in the tea industry could prove to be one of the fastest-growing businesses in the future. The ever-growing demand for tea as a beverage in the country paves the way for the tea business to succeed. If you seek endless opportunities and scope in your business, then the tea wholesale business is the one you are looking for!

Also Read:

1) How to start a furniture manufacturing business?
2) How to Start a Furniture Upcycling Business?
3) How to start a business of eco-friendly & organic cleaning products?
4) How To Start An E-waste Recycling Business?

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FAQs

Q. Is a wholesale tea business profitable in India?

Ans. Yes, the wholesale tea business is quite profitable in India due to the huge demand for tea as a beverage amongst Indian people. Especially as a wholesale business, a tea business can prove to be quite successful.

Q. What are the licenses you require for your tea wholesale business?

Ans. You must acquire licenses like FSSAI, EIN, GST, ownership of the company etc.

Q. Is offline marketing strategy sufficient for boosting business growth?

Ans. Online marketing strategy helps to grow your business beyond the existing boundaries of your physical proximity to customers. If you wish to expand your business in the truest sense, you must adopt an online marketing strategy to grow your brand’s online presence.

Q. What could be an ideal location for setting up your wholesale business?

Ans. An ideal location for a wholesale business would be the one that facilitates easy transportation for the goods and services.

Q. How can SWOT analysis help your wholesale business?

Ans. It helps to understand whether the particular tea wholesale business is suitable for your particular location.