How To Start A Tea Business - Expense and Profit Calculator
tea business at home

How To Start A Tea Business – Expense and Profit Calculator

The tea business is one of the most profitable businesses that can be built with low investment. You are probably here to find out how to start a tea business from home, right? In the beautiful country of Pakistan, a small tea business is making its mark. This special business is all about bringing people together over a cup of tea. It’s a place where the love for tea and the love for people come together.

Located in a busy part of town, this small tea business aims to make tea a delightful experience. It takes the traditional tea we all know and adds exciting new flavors. Every cup of tea they serve is carefully prepared, like a tasty piece of music, using special leaves and spices to create something unique.

The people who started this business are full of energy and big dreams. They’re passionate about making great tea and sharing it with everyone. They want to change how people think about tea in Pakistan, and they’re doing it by working hard and being creative.

Join us as we discover this small tea business in Pakistan. We’ll journey into the world of tea, culture, and togetherness. It’s a story of how a tiny company is making a significant impact, one cup at a time, in the heart of Pakistan. This guide will provide a detailed roadmap to kickstart your small tea business, from budgeting and location selection to the necessary appliances and expected profits.

Budgeting and Initial Investments

Budget Allocation: Determine the amount of capital you’re willing to invest. A small tea business can start with a modest budget, allowing you to expand as you gain traction gradually.

Licenses and Permits: Research the necessary support and permits to operate a Pakistan tea business. This may include health permits, business registration, and any local permits required.

Procuring Inventory: Allocate funds for tea leaves, assorted herbs, and necessary packaging. Consider a small working capital for day-to-day expenses.

Appliances and Equipment

Tea Brewing Utensils: Invest in quality teapots, kettles, infusers, and strainers. These are the backbone of any tea business.

Storage Containers: Purchase airtight containers to store different types of tea leaves. This ensures freshness and maintains the quality of your inventory.

Display and Serving Equipment: Depending on your business model, you may need counters, shelves, and serving trays for a café-style setup. If you plan to sell teas, consider packaging materials like jars, pouches, and labels.

Location Selection

Selecting the ideal location for a small tea business in Pakistan is a pivotal decision that can greatly influence its success. A comprehensive understanding of various factors is essential in this endeavor.

Foot Traffic and Visibility: 

Firstly, considering the cultural affinity towards tea in Pakistan, it’s imperative to target areas with a high footfall of potential customers. Urban centers like Karachi, Lahore, and Islamabad offer a diverse customer base and higher disposable income, making them prime candidates. Additionally, proximity to educational institutions, offices, and markets can provide a steady flow of clientele. Choose a location with high foot traffic, like a shopping area or a commercial center. Visibility is key to attracting potential customers.


Accessibility and ease of transportation are crucial aspects, ensuring that pedestrians and vehicles can easily reach the location. Ensure your chosen location is easily accessible to your target audience. This includes considering parking facilities and public transportation options.

Rental Costs:

Rental costs and overheads should also be taken into account, ensuring that they align with the business budget.

Competitive Analysis: 

Research your competition in the area. Avoid setting up shop too close to established tea businesses, but be wary of locating too far from potential customers.

Profitability and Marketing:

Pricing Strategy: Set competitive prices based on your cost of goods, overheads, and desired profit margins. Consider offering occasional promotions to attract new customers.

Let’s do some stats to show you how you can earn a good profit from your tea business.

1 Kg of milk produces 6 cups of tea.

so, 40 Kg milk will produce 240 cups of tea.

a tasty cup of tea usually sells in Rs.30/teacup

At the start, keep a target to sell teacups in a day. Lets’s tear this match into more pieces. If you deliver 12 hours a day then you would need to sell only 20 cups per hour that is not a hard job. A good brochure, Facebook and verbal advertisement can get you 20 clients per hour. if you are able to successfully sell 20 cups an hour then in 12 hours you will sell 240 of teacups.

Tea Business Profit Margin

Tea business has a great profit margin. It can generate more than 5 Million Rupees per month if done in right way. Below is a simple feasibility report of the tea business profit margin.

Total Sale:

240 teacups * Rs.30/teacup= 7200 (sale)

Total Expense:

40 Kg milk = 40 kg * 80/kg = Rs. 3200

Sugar + raw tea + other little expenses = 500 approximately/per day, per 240 cups

Rs. 3700 (expense in Total per day)

Net Profit:

7200-3700= Rs. 3500 ( Net Profit per day with 240 cups of tea)

If you don’t understand the calculations you can watch the video above or Here.

This is the whole process to start a successful tea business.


Branding and Marketing: 

Create a distinct brand identity through a memorable name, logo, and theme. Utilize social media platforms, local advertising, and word-of-mouth to reach a wider audience.

Customer Engagement:

 Provide excellent customer service and gather feedback to improve your offerings. Engage with your customers through loyalty programs or events.

 Arshad Khan “Chai Wala” – Brewing Success in Pakistan

tea business

In a world where opportunities often seem elusive, success stories like that of Arshad Khan, affectionately known as “Chai Wala” (Tea Seller), stand as a testament to the power of determination, talent, and the digital age. Arshad Khan’s journey from a humble tea vendor to an internet sensation and entrepreneur has captured the hearts of many in Pakistan and beyond.

The Beginnings

Arshad Khan’s story began in the narrow alleyways of Itwar Bazaar in Islamabad, Pakistan. Born in 1998, Arshad hailed from a modest family with limited means. At a young age, he embarked on the arduous path of selling tea to support his family. Little did he know that this humble occupation would pave the way for his meteoric rise to fame.

The Viral Sensation:

In October 2016, a local photographer named Jiah Ali captured a candid photograph of Arshad Khan while preparing tea. The striking image of his piercing blue eyes and rugged features quickly caught the attention of social media users. Within days, Arshad Khan became an overnight sensation, with the photograph garnering millions of views and shares across various platforms.

From Street Corner to Stardom:

Capitalizing on his newfound fame, Arshad Khan embraced the opportunities that came his way. He ventured into modeling, appearing in various fashion shoots and commercials. His distinctive look and charm resonated with audiences, leading to numerous brand collaborations and magazine features.

Entrepreneurial Endeavors

Arshad Khan’s journey did not stop at modeling. Recognizing the potential of his brand and the demand for quality tea, he launched his venture, “Arshad Khan Chae Wala.” This tea café in Islamabad quickly gained popularity for its high-quality teas and inviting ambiance.

Arshad’s commitment to excellence and customer satisfaction played a pivotal role in the success of his business. He diversified his menu, offering a range of teas that catered to different tastes and preferences. Arshad Khan transformed his small tea stall into a thriving enterprise through dedication and hard work.

The Digital Age and Beyond

Arshad Khan’s success story symbolizes the transformative power of social media and the digital age. He transcended socio-economic barriers through a single photograph and proved that talent and potential can be found in the unlikeliest places. His journey serves as an inspiration for aspiring entrepreneurs and individuals striving to overcome obstacles.

Arshad Khan’s journey from a modest tea seller to a prominent entrepreneur and internet sensation is a testament to the limitless possibilities that lie within each individual. His story is a beacon of hope for those who dare to dream and work tirelessly towards their goals. Arshad Khan, the “Chai Wala,” has not only conquered the tea business but also the hearts of people worldwide, leaving an indelible mark on Pakistan’s entrepreneurial landscape.


Starting a small tea business in Pakistan can be fulfilling, offering a chance to share your passion for tea with a community of enthusiasts. With careful planning, a clear budget, and attention to detail, you can create a thriving business that brings joy to your customers and financial success. Remember, success in the tea business often comes down to the quality of your product and the experience you provide, so always strive for excellence. Good luck with your tea business venture!

Read Also: 30 Most Successful Small Business Ideas In Pakistan





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