How to start a small Business with low investment of Rs.1,00,000 like Tea shop and bakery
Starting a small teashop and bakery business with a budget of ₹1,00,000 requires careful planning and a focus on cost-effective strategies. Here's a step-by-step guide to help you get started:
Step 1: Business Planning1. Choose Your Business Model- Home-based: Sell online via WhatsApp, Instagram, and Swiggy/Zomato (if available).
- Small roadside stall: Ideal for high-footfall areas like markets, offices, colleges.
- Small rented shop/kiosk: A low-rent space can attract walk-in customers.
2. Define Your Target Customers- Office workers, students, and daily commuters.
- Local residents looking for fresh bakery items and tea.
3. Select a Unique Selling Point (USP)- Special tea flavors (masala, ginger, lemon, herbal).
- Freshly baked cakes, cookies, and muffins at affordable prices.
- Unique combo offers (Tea + Muffin, Chai + Samosa, etc.).
Step 2: Budget Breakdown (₹1,00,000) Expense Category and Estimated Cost (₹) *Rent & Deposit (if applicable) 15,000 - 25,000 *Basic Equipment (stove, utensils, oven, fridge) 25,000 - 30,000 *Raw Materials (tea, milk, sugar, flour, eggs, etc.) 15,000 - 20,000 *Packaging & Branding (cups, boxes, signboard) 10,000 *Marketing (flyers, social media ads) 5,000 *Miscellaneous (gas, electricity, transport) 10,000.
Step 3: Legal Requirements- FSSAI License (Food safety) – ₹500–₹2,000
- Shop Act License (For a rented space) – ₹1,000–₹5,000
- GST Registration (If annual turnover exceeds ₹20 lakh)
Step 4: Set Up Your Shop- Home-Based: Start from home and sell via online orders, WhatsApp, and Instagram.
- Small Stall/Kiosk: A low-rent space near offices, colleges, or markets is ideal.
- Shared Kitchen: Rent a part of an existing bakery to reduce costs.
Step 4: Menu PlanningTea & Beverages- Masala Tea – ₹15
- Ginger Tea – ₹20
- Lemon Tea – ₹20
- Coffee – ₹30
Bakery Items- Tea Cakes (Chocolate/Vanilla) – ₹50 per piece
- Cookies (Butter/Choco Chip) – ₹10–₹20 per piece
- Muffins – ₹30–₹50 each
- Cream Rolls – ₹40–₹60 each
Snacks- Samosa – ₹15
- Pakora – ₹20
- Bun Maska – ₹20
Step 5: Setup & Equipment- For Tea Stall:Gas stove, kettle, cups, strainers, storage containers.
- For Bakery:Small oven, mixing bowls, measuring tools, fridge for storage.
- Furniture:Small counter, chairs/tables (if needed), disposable cups/plates.
Step 6: Marketing & Customer Engagement- Social Media: Use WhatsApp, Instagram, and Facebook to promote offers.
- Word of Mouth: Offer free samples to nearby offices and local stores.
- Combo Offers: Tea + Muffin at ₹50 to attract customers.
- Local Partnerships: Collaborate with offices for daily tea supply.
- Online Orders: Join Swiggy/Zomato (if home-based).
Step 7: Profit Estimation- Daily Sales Target: ₹2,000–₹3,000
- Monthly Revenue: ₹60,000–₹90,000
- Profit Margin: 30%–50% (after costs)
- Break-even Point: 3–6 months