How to Start a Tea Business – The Ultimate Guide

tea pot for a tea business


Starting a tea business in the UK can be a daunting task as there is a lot of information out there.

Some information may even be contradictory which only leaves people more confused and unsure about taking the plunge.

That’s why we have put this comprehensive guide together which covers common questions relating to starting a tea business, as well as a guide on how you can start your own tea business.

You’ll find out how to source a reliable wholesale tea supplier, whether a tea business is profitable, the importance of an online presence and much more.

Let’s dive into this value packed post!

How Much Does it Cost to Start a Tea Business?

pouring a loose tea into glass mug


This completely depends on how you want to set up your tea business. You could sell your tea from a physical store or you can sell it online through a website. Alternatively, you could do both.

Going down the physical store route will set you back a considerable amount depending on the premises you choose. Including buying the stock you could be looking at costs anywhere from £50,000 – £100,000+.

If you choose to sell your tea using an online store, all you need to do is set up a website, buy some inventory and off you go. This could cost less than a few thousand pounds.

Is the Tea Business Profitable?

Your profitability will all depend on how well your business is doing but in terms of profit margins, they are quite high for tea.

Once you have figured out your overhead costs and your expected sales, you can create a pricing strategy that will cover the costs and generate profit. You will need to remain competitive with other tea sellers or they can undercut your prices and take your customers.

Where to Buy Tea For Your Business?

You will need to find a specialist tea supplier who can provide you with high quality tea for your customers to enjoy.

Luckily for you we supply tea on a wholesale basis. With our extensive range of loose leaf teas, many of which are award-winning, you’re sure to find the right products for your tea business.

How to Start Your Own Tea Business

pouring tea into a mug


Here is our guide on how you can start your own tea business.

Understand Your Niche and Choose Your Products

You need to decide what kind of tea you want to sell e.g. specialty blends, herbal or flavoured teas.

If you have done your research in the beginning stages then you’ll already know which niche you’re operating in and who your target market is.

Knowing this part is so important, if you don’t understand your customers and what they like then they won’t buy from you.

Create a Business Plan

Making a plan for your business gives it direction and focus, both vitally important for business success. Detail your idea and start to draw out a timeline for accomplishing tasks.

These tasks could include:

  • Obtaining permits or licences
  • Finding a supplier
  • Creating the branding
  • Registering your business
  • Profit & Loss sheets

When you set a task with a completion date it gives it a higher probability of being completed.

Research Your Market and Competition

Research is something that is done before, during and after you launch your tea business. That’s because there are always changes within any industry so you need to keep your ear to the ground and assess how it may affect your business.

You need to look into the current tea market to understand what is selling and who is supplying it. Understanding your competitors and ideal customers can give you the competitive advantage you need.

Source Suppliers

You’ll need to find trustworthy wholesale tea suppliers who can provide quality products for reasonable prices.

Which is exactly what we do.

We’re one of the best loose leaf wholesalers in the UK and we supply a wide range of businesses from our extensive selection of products. See how our suppliers go through tea production here.

Our loose leaf tea is available in many tea varieties including:

Many of our teas have won Great Taste awards thanks to their innovative blends and splendid tastes.

LEAF TEA Products

Choose Packaging Materials & Design

A business needs a brand and part of your brand identity is packaging that is eye-catching and reflects your brand aesthetic.

Choose a brand design that will stand out from other competitors. Analyse what packaging they are currently using and assess how you can produce better quality products.

Set Up an Online Presence

Whether you’re opening a physical store or not you’ll still need to have an online presence. In today’s world people draw their attention to what happens online.

Ensure your business is there right in front of them so they can see the wonderful products you’re selling.

We recommend you build a website or ecommerce store to promote your business so you can track orders, and interact with customers.

Leaf Tea – Wholesale Tea Suppliers

We hope you enjoyed this guide on how you can start your own tea business. We understand what is involved with starting a tea business and making it a success.

If you’re ready to take the next step and get your business off the ground, or maybe you already have a tea business, then we would love to supply you with high quality loose leaf tea.

We supply many businesses with a variety of loose leaf tea that is enjoyed daily by their loyal customers.

Contact us today and see what packages we can provide your tea business with.