How to Start a Bubble Tea Business?
Are you a fan of boba tea, wanting to make your own boba? Or maybe you spotted the growing popularity of this delicious beverage and decided that this is a great idea for a business? If you answered “yes” to any of these questions, then here are some tips and answers to help you set up your own bubble tea business.
Bubble tea business - independent or a franchise?
The first decision that you have to make is whether to franchise or go independent. In both cases there are benefits and drawbacks.
Going independent gives you more freedom - you can create your own design for your bubble tea shop, and build your own business model. However, in this case you are taking more risk, as you simply do not know whether your plan will work out. In this case your success mostly depends on how good you planned your business.
Choosing a franchise gives you an opportunity to follow an already successful plan - thus the risk will be much lower. In our Sharetea franchise program, for instance, you are provided with training, tips and constant support both during the start up of your bubble tea business, and while running it. Moreover, choosing a franchise means that you will get to work under a recognised brand - something which attracts customers for sure!
What should I do next?
If you have already decided, the next step is to write a business plan/sign up for a franchise program and choose your location.
Most business plans consist of these 7 elements that you need to think though:
an executive summary
company description
products and services
market analysis
marketing strategy
financials
budget
If you want to succeed in an independent business, you will need a strong business plan. However, if you are not a specialist, writing up a good strategy may be challenging - if at this point you will find yourself overwhelmed, you can still switch to a franchise.
If you chose a franchise, you need to apply for it - the process can consist of several steps. Our franchise program, for example, has 8 steps, where applying is just the first one, so it is important to do it as soon as possible.
There are several factors which should be considered when choosing a location for your bubble tea business, namely:
Type of venue
Demand for your product in the area
Your budget capabilities
Accessibility for suppliers
Safety
You should consider all of these factors, and try to approach them one-by-one. For instance, in our franchise model you first choose and restrict simply a larger area for your business, and pick the best fitting location in the later steps of the process. This way you can meet all these points, without having to think about them all at once.
How much does it cost to start a bubble tea business?
It is hard to estimate the costs of starting any business - the costs will vary depending on the area, size and type of the venue and its accessibility, as well as on the costs of marketing which may vary in different regions but they also depend on your business plan and on your brand recognition. However, we have estimated how much it costs to start a bubble tea business in our franchise. In order to set up your Sharetea shop, you will need at least $100,000 of liquid capital, as well as $300,000 of total investment.
So, now you are fully aware of how to start your bubble tea business! If you are still unsure, read our predictions on the future of bubble tea, where we discuss the matter of whether bubble tea business is going to be more profitable.