Do you want to start a tea production company from scratch? Or do you need a sample tea production business plan?
You don’t need to be a tea lover to know that every packet of tea comes with a tea bag, whether it’s plain or herbal tea. But just for the sake of information, tea bags are the small lightweight bags used to contain the contents of the tea, to allow the tea to be brewed without emptying the contents into the brewing water.
Tea bags are made from silk, filter paper which is partly vegetable fibre and partly wood and also soil which is made from starch obtained from maize. you can start a tea bag production business and make a large profit as there are many tea manufacturing companies to which you can supply tea bags; including direct sales companies.
In this article I will discuss the process involved in starting your own tea bag production company; including the best ways to market your tea bags and make more sales.
How do I start a tea bag business? sample business plan
1. conduct feasibility market studies: the tea bag is not an everyday item; that is something people cannot go a day without using, for example, food and basic household items. That’s why you should carry out market research on the demand for tea bags before you start your production business.
Make sure you have a list of at least twenty potential buyers to start with. If possible, after the first batch of production, you should not produce more unless you ask for it, because most tea companies will prefer to make tea bags tailored to your business.
2. write a business plan: after confirming that there is a viable market for tea bags in your location, it is time to write a clear plan of how your business will start, operate and grow in the coming years. put all the information vital to the growth of your business in your business plan; including your finances, advertising plan, branding, taxes and the amount of revenue you expect to earn in the first few years of starting the business.
3. Register your business: the business process is fairly easy depending on the requirements established for registration of the business by the state in which the business will be located. To make the process faster, you can pay a lawyer to help you register the company.
4. get a location for your company: the location will simply be a basic space where the machinery for the production of the tae bag will be placed. It will also serve as a production factory and perhaps a storage warehouse before the products are shipped to the buyers.
5. buy the tea bag production machines: there are machines that are used to make the tea bag production process easier and faster. like the tea bag sealing machine and the tea bag production machine. The best place to order these machines is in Europe, especially in Germany and Italy.
Some popular companies you should know are Teapack company located in Germany and IMA located in Italy. These machines have the capacity to produce about 150 to 250 tea bags in a minute. In addition, you need to find regular suppliers of raw materials you need for production; such as silk, filter paper and dirt in large quantities.
6. produce your first samples: as mentioned above, the tea bag is not something you produce and take to market to sell, because you can end up not earning a penny if you do not find your target market. That’s why I suggest you produce only one batch of teabags of various shapes and types to serve as a sample for the companies that are your potential customers. Don’t make the mistake of mass producing, when you don’t have a market to supply the product.
7. send proposals to your potential buyers: during the research stage, I mentioned that you should make a list of at least twenty customers for your products; it’s time to contact them and let them know what you have to offer. you can send them proposals with samples of the tea bags you have and give them the option of choosing their own custom design for mass production.
You can offer them discounts only for their first order, after which you will invoice them at the normal rate on subsequent orders. The bottom line is to get them to place their first order, and you have to give them an advantage that will make them leave the current company by providing them with tea bags to buy from you.
Who are your potential buyers?
Knowing your potential buyers gives you a kind of preview, as it will give you an idea of who your target market is and how you can approach them with a proposal.
Individuals: not everyone is in this category; there are some people who love to buy higher quality tea leaves, buy tea bags separately and add only the amount they need when they are ready to brew some tea. They are your potential buyers but you do not expect bulk orders from them.
Tea production companies: this is their main target for bulk orders. There are many companies involved in tea production: green tea, herbal tea, lemongrass tea. whatever type of tea they produce; you can be their main supplier of tea bags. also remember that most direct sales or network marketing companies are involved in producing healthy brands of tea. You can also make them your target market for orders.
At this stage of this article, I mentioned the basic ingredient needs for tea bag production, also listed and explained the steps needed to start your own tea bag production company and who your potential customers or buyers are. The main breakthrough in this business will come if you can get many customers who can place bulk orders for your products on a regular basis.