The process of cultivating tea is a centuries-old tradition. It is full of patience, toil, and earnestness. However, every heads has a tail, every good has its bad.
The tea business has its fair share of Pros and Cons.
Pros of The Tea Business
Income: Tea is loved by everyone, needed by the masses, and tons. This business has no reach limit and the fruits of your labor can, theoretically, be reaped forever.
Demand: The tea business is growing year over year and is known to be relatively recession-proof due to the fact that demand is increasing.
Impulse buying: It is much more likely that you will be able to encourage your customers to buy on impulse because you can easily adjust the price, placement, packaging, and promotional value to influence them to buy on impulse.
Flexibility: Work as you like, according to the rewards you want. As long as you enjoy the work and have some initial experience, you can start off small and manage all aspects of the business on your own if you like it.
Low-maintenance customers: In this industry, customers are fairly appreciative and low maintenance. In this way, you will be able to manage your stress levels and be able to focus on growing your business rather than worrying about it.
Taxes: Self-employment taxes can be quite high, of which you have to pay yearly. It’s important to know that these taxes are going to be paid every year, so the business should be well worth it.
Revenue Stream: Unlike most businesses, revenue and results are easily achievable and with greater success. As long as you follow all the steps outlined & complete them to brilliant execution.
You can also check this out The Caffeinated Market and the Booming Trend of Coffee Shop Startups
Cons of The Tea Business
Equipment malfunctions: Stuff breaks down, no matter what. Having an equipment failure in the field is harsher since we have automated that process; manual work will take longer periods of time resulting in a slower pace. It is recommended that maintenance is a must.
Learning curve: Those who are born into it, know it. Those who aren’t will have to learn, you do not have the luxury of a playbook, you have to learn from scratch. Every decision you make comes down to you.
Time: By starting a tea business, all responsibilities and decisions are taken by you and only you. This is not necessarily a con; work life is demanding. This can cause restrictions & distractions on friends and family as well as adding on to the pressure of running a new business.
Low margins: New expenses and maintaining steady profits are concerning & tough as a new tea business has a gross margin of 60%, typically.
More challenging to earn passive income: It can be challenging to make passive income. Oftentimes, the revenue you bring in is limited by the time you have in the day.
Impatient customers: You can offer an engaging user experience but the customers are mostly impatient. Customers will not care if you have a new business and be mindful of that, if they aren’t pleased they won’t be returning. Customer retention becomes obsolete.