Tips to Start a Small Tea Business

Tea is the second most consumed drink after water, thus making it a viable business where there are opportunities. Additionally, a significant population of consumers has embraced the health benefits of different teas, such as green tea, black tea, and matcha tea. More importantly, tea demand is rising, and the global tea market is anticipated to be approximately $266.7 billion by 2025. 

How do you even get started in the tea business? Keep reading as we explain tips and steps to venture into this business. 

2 Important Things to Consider Before Starting a Tea Business

1. Evaluate if the business is right for you

Before applying for any permits and investing your money into any business, you must decide whether it’s viable. Additionally, you’ll have to answer some questions, such as:

a) How well do I understand different types of tea or the tea business in general?
b) Who is my ideal target customer?
c) Is my preferred location good for the tea business?
d) What is the expected profit margin?
e) How do I stand out in the market? How do I carry out my marketing?

2. Where do you source your tea from?

Before starting a small tea business, you should at least have an idea of where you’ll source your tea or tea products. 

Usually, you can purchase it from a tea manufacturer or wholesale tea supplier

Another critical factor that comes into consideration while buying wholesale tea is the quality and types of tea you’ll get. Additionally, you must consider the various forms (loose-leaf tea, bagged tea, and powdered tea) of the tea your supply of choice offers. 

Read more on tips to consider when buying bulk wholesale tea

What steps are required to Start a Small Tea Business in the US?

Here are 10 tips/steps to start a small tea business:

1. Choose a business name for your business
Apart from your products, a business name will give that particular tea business an identity.

What is most important at this point is choosing a business name that reflects your tea business's desired brand or identity. Consider a short, unique, and catchy business name. Additionally, check your desired business name against the trademark database and ensure you can get a domain name for a business website.

2. Create a business plan

You need to develop a business plan for your desired tea business. It helps you understand your market as you come up with a “blueprint” on how you’ll run the business. Additionally, a business plan is a key requirement when raising capital for your business.
It should focus on aspects such as:

  • Market analysis
  • Product and services to be offered
  • Competitive analysis
  • Operational plan
  • Financial plan

3.Choose your business structure

Your business structure determines how your tea business is taxed and the liability and business registration requirements you should meet. Legal business structures in the US include sole proprietorship, partnership, Limited Liability (LLC), C Corporation, and S Corporation.

4. Register your tea business for taxes

The next step entails getting an Employer Identification Number (EIN) and choosing your financial year from the Internal Revenue Service (IRS). However, if your business falls under sole proprietorship, you don’t need the EIN: you can use your social security number instead.

5. Register for a business bank account

EIN is often required to open a business bank account; once you have it, you can proceed with registration. You’ll also need documents to support proof of address and your company’s Article of Incorporation.
You can as well apply for a credit card strictly for your business. It helps you separate your business and personal expenses.

6. Fund your business

You need to know how you’ll finance your tea business. You can self-fund your business using personal savings, but there are other options if you need to raise more money. They include loans, grants, crowdfunding, angel investments, etc.

7. Apply for the necessary licenses and permits 

You’ll need a few licenses and permits to run your tea business. They have licenses that ensure safety during food preparation. This may vary from state to state and from city to city. Therefore, ensure you check the requirements within your business residence. 

You’ll also need Fire Department Approval to install a fire alarm system. 

Note: At the federal level, you’re required to have licenses and permits from Occupational Safety and Health Administration (OSHA).

8. Get insurance for your tea business

You need certain insurance policies to protect your tea business against unexpected events. Among essential types of insurance include commercial liability insurance, general liability insurance, and worker compensation insurance.

9. Acquire the necessary equipment and customize your business premises

Depending on the type of tea business you plan to run, you’ll need to acquire some essential things such as furniture, teaware, cookers, etc. You’ll also need tea inventory; therefore, you can engage a tea supplier at this point.
You’ll also need to customize and brand your tea business premises or shop.

10. Build a team

Depending on the size of your tea business, you’ll need a few employees to help you run some activities. That means you’ll need to hire people to build a team. It’s good you hire people who understand the tea business or are willing to learn.

11. Launch your tea business

Once all the above steps are done, you’re set to launch your business as you execute your marketing strategy.

In Need of a Reliable Tea Supplier?

Bluesea Tea is ready to support your business journey by being a reliable tea supplier of various types of teas, including black, white, oolong, and green teas. We supply these teas in two main forms, i.e., loose leaf and tea bags. Additionally, we have organic matcha powder

Besides meeting all requirements in our tea production processes, we believe in providing organic tea products. Our farms are located in China, where tea is part of the culture. You should consider familiarizing yourself with Chinese tea culture