Do you want to start a tea production company from scratch? Or you need a sample tea production business plan template? If YES, then i advice you read on.
You don’t need to be a tea lover to know that all tea packs come with a tea bag; whether it is an ordinary tea or herbal. But just for information sake, tea bags are the small light bags that are used to hold the tea contents, to enable the tea to brew without emptying contents into the brewing water.
Tea bags are manufactured from silk, filter paper which is partly vegetable fibre and partly wood and also soilon which is made from starch gotten from corn. You can start a tea bag production business and make huge profits since there are lots of tea manufacturing companies you can supply tea bag to; including direct sales companies.
In this article, I will discuss the process involved in starting your own tea bag production company; including best ways to market your tea bags and make more sales.
Starting a Tea Bag Production Company – Sample Business Plan Template
1. Carry Out Viability Market Research-: Tea bag is not an everyday item; that is item that people can’t go a day without using them, for instance food stuffs and basic household items. That is why you need to carry out market research on the demand for tea bags before you start your production company.
Make sure you have a list of at least twenty potential buyers for starters. If possible, after the first batch of production, you shouldn’t produce anymore unless on order because most tea production companies will prefer custom made tea bags to be manufactured for their company.
2. Write a Business Plan-: After confirming that there is a viable market for tea bag in your location, it is time to write a clear plan of how your business will start, run and grow in the next few years. Put all vital information for your business growth into your business plan; including your finance, plan for advert placement, brand, tax and how much income you are projecting to make in the early years of starting the business.
3. Register Your Business-: The process of company is quite easy depending on the requirements provided for company registration by the state the business will be located in. To make the process faster, you can pay a lawyer to help you will the process of company registration.
4. Get a Location for Your Company-: The place will just be a basic space where the machineries for production of the tae bag will be placed. It will also serve as a production factory and maybe a storage warehouse before the products are shipped to buyers.
5. Purchase the Tea Bag Production Machineries-: There are machines that are used to make the tea bag production process easier and faster. Such as the tea bag sealing machine and tea bag production machine. The best place to order for these machines is from Europe especially in Germany and Italy.
Some popular companies you must 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 minute. Also, you need to find regular suppliers for raw materials you need for production; like silk, filter paper and soilon in bulk quantity.
6. Produce your First Samples-: As I mentioned earlier, tea bag is not something you produce and take to the market to sell, because you may end up not making a dime if you don’t located your target market. That is why I suggest you produce just a batch of tea bag of various shapes and types to serve as sample to companies that are your potential clicks. 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 have to make a list of at least twenty customers for your products; it is time to contact 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 just to make them place their first order after which you bill them at the normal rate at subsequent orders. The bottom line is to get them place their first order, and you have to give them an advantage that will make them leave the present company supplying them with tea bags to buy from your company.
Who Are Your Potential Buyers?
Knowing your potential buyers gives you a sort of break through as it will give you an idea of who your target market is and how you can approach them with a proposal.
- Private Individuals-: Not everybody is in this category; there are some individuals that love to buy tea leaves in bigger qualities, purchase tea bags separately and add just the quantity they need whenever they are ready to brew some tea. They are your potential buyers but don’t expect bulk orders from them.
- Tea Production Companies-: These are your biggest target for bulk orders. There are many companies that are into tea production: green tea, herbal tea, lemon grass tea. Whichever type of tea they produce; you can be their major supplier for tea bags. Remember also that most direct sale or network marketing companies are into production of healthy tea brands. You can also make them your target market for orders.
At this stage of this write up, I have mentioned the basic ingredients needs for the production of tea bags, I also went ahead to list and explain the steps involves with starting your own tea bag production company and who your potential customers or buyers are. The main break in this business will come if you can get plenty clients who can place bulk orders for your products constantly.