If you are starting a tea company, it is likely that you will require a business plan at some point. The experts at Pro Business Plans have extensive experience working with tea companies to prepare plans for investment and strategy. This article provides information on what is generally included and how it is structured.
There are several things to consider when starting, growing, or acquiring a tea company . The specific details will depend upon what area of the supply chain that you are focused on. For instance, some tea companies specialize in the agriculture side, whereas others focus on import/export, retail, or consumption by offering a café style environment. There are dozens of business models for the tea industry, but the points for consideration often span across every aspect of the plan.
The business model section of a tea business plan outlines exactly what your company does to generate a profit and how it is uniquely different than its competitors. Some tea companies specialize in the importation of products, for instance, and label their own brand such as Lipton or Tazo. Others may create a relaxing environment to enjoy tea and light snacks such as a café setting. Whatever the details of the business model, investors will seek to understand the scope of your positioning. This may mean having a great lease on a good location or building a strong brand that targets an untapped market niche.
When it comes to the value proposition, companies that experience the highest level of success are those that target some unidentified market opportunity. For instance, a team importer that targets people with specific health disorders or a tea lounge that has secured a ten-year lease in a dense shopping area with high income consumers. The value proposition is a core feature to positioning the company and sustaining its profitable position in the market.
The operations section of a tea business plan is aimed to breakdown how the company will deliver its value proposition and make a profit. A tea company that attempts to gain some philanthropic positioning by making the claim of donating a percentage of revenue to charity may be incapable of supporting such claims. Therefore, it is important to demonstrate that the operations support both delivery and profit from the value proposition supporting the underling business model.
The marketing strategy for a tea business plan also depends on the specific nature of the company and its business model. A wholesale tea company that sells directly to retailers may focus on building its brand awareness and attending trade shows . A tea retailer may focus on direct to consumer marketing internationally, where as a local tea shop may focus on direct marketing within a defined zip code. Nonetheless, there are a few shared characteristics to the marketing plan of all tea companies that should be addressed at least at the holistic level in the business plan.
Regardless of the business model for your tea company, it will inventively require a launch campaign or brand restructuring if you are new to market or acquiring an existing business. This means that you will need to plan out how you will enter the market and rapidly alert all prospective customers of your entrance into the market. The importance of this increases if you are a consumer facing brand, which most companies invest millions into the development of a new brand through a combination of product placement , public relations, and mass advertising.
Once the brand has launched, it is likely that ongoing promotions will be needed in order to consistently generate new business. There are several methods that companies follow in order to perpetuate their promotional campaigns. Some companies focus on mass advertising, whereas others emphasize regional marketing or direct to consumer advertisements. In general, tea companies that have a wider audience where the brand is important will focus on broader marketing efforts. Those with a more defined market, where the final sale is made such as a retailer or tea café, may focus more on direct marketing like Facebook or AdWords pay-per-click.
The financial projections for a tea business plan may be requested by investors if you are seeking venture funding or banks if you are seeking a loan. The most effective and reliable method to perform such projections is to base them on the prior performance of your tea company. If you lack a historical operating performance, it is ideal to use comparable companies in your industry or aggregate industry data. In general, it is also important to be highly conservative when forming the financial projections, as any reviewers will discount bold assumptions.
The revenue forecasts for a tea company should be justified with a detailed list of assumptions that your company will consider when preparing the plan. This includes a combination of factors such as the expected adoption rate, growth rate projections, and the price that people are willing to pay. When possible, third party information should backup assumptions made in the financial projections. While this seems like a common sense point, many people base revenue forecasts by their emotion of what their company will do rather than rational logic.
The budget projections of the company will be most advantageous if you’re seeking investment. Most intelligent investors will seek to understand where their capital is being allocated and how it will influence the company. They may want to know, for instance, what portion is being allocated to salaries relative to investments in machinery that can be easily liquidated. However, it is important to outline a clear and conservative picture of what is actually needed rather than placing a budget that may more conservative to the prospective financier.
Regardless if you are opening a new business, or expanding an existing one, having a business plan can help you to make more informed decisions and manage your money. It is also required by many lenders as part of your loan application.
This business plan template is updated annually to reflect the most up-to-date information on how to create a profitable operation. It was created by Chase Hughes, our CEO, and has evolved over hundreds of client engagements over the past 10+ years to become the backbone of operations and management for 1,000s of entrepreneurs.
Project future revenues using real industry data
Fully-compatible with Microsoft Excel and Word.
Critical information for operating and running the business.
Annually updated market research specific to your market.
A Business Plan is a description of the business, market, and expected financials. Plans may be used to increase sales and profitability, outperform competitors, and used to obtain bank loans or investor funding.
For startup founders and small business owners, the Business Plan is a fundamental resource for managing the business and making educated business decisions about the company’s future.
There’s no need to reinvent the wheel, though. There’s a standardized set of information and variables for most small businesses including the financial model, market research, and basic business overview that most executives are familiarized with.
Summary of what it does, how it operates, key staffing and operations procedures, risk & success factors, and management team bios.
Third-party information on the market size, key trends, growth rates, and competition both overall and for a specified region.
Complete financial projections including Revenue, Cost of Goods Sold, and Operating Expenses to produce Profit & Loss statement, Cash Flow statement, and Balance Sheet.
Comprehensive plan including market launch, social media, promotional strategies, pricing strategy, and web presence.
This is a functional model you can use to create your own formulas and project your potential business growth. Instructions will be included on the front page.
