Priyanshi Tea stall: A street startup in Dehradun KISS-1001(Click here)
Name Priyanshi Tea Stall.
Location: Rajpur Road, Dehradun.Uttarakhand,India.
Owner Profile: Mr Akhilesh
Year established: 2010.
Akhilesh was a Fine arts teacher in a reputed college in Dehradun. There, he commanded a lot of respect in the community but, the salary was not enough even for meeting daily household expenses. Which leaving no scope of any savings. But later he got a with DMRC and shifted to Delhi, while his father uses to live in Dehradun in their home at Rajpur Road, near Mussoorie diversion.
About 5 years into a job with DMRC-Delhi, which was well paid (Approx Rs. 40000/- PM) his father started facing some health issues. The situation got critical and forced Akhilesh to shift base to Dehradun, in order to take care of his ailing father.
Thus, he was left jobless (As had to leave the Delhi job) and yet had the burden to feed his family (2 Kids, wife and Parents) and meet the expenses of his father’s treatment.
With pressure to earn money a passion of an entrepreneur he went forth and started his entrepreneurial journey by setting up a tea stall with one bench and two chairs.
The initial investments were basically some home furniture, a shop set up with own hands at own land and few cutlery items. The total monetary cost including the raw material was 2500/-, with fixed assets met by home furniture.
The business started giving returns from its very first day. Mr Akhilesh always focused on quality and customer relationship. These two main factors lead him to this amazing journey of Street Start-ups.
Failure and Opportunity:
Akhilesh failed to maintain the work-life balance while doing the job, which leads him to leave the job. This failure gave him an opportunity to stand up and Start his Street start-up.
As discussed with him, he has luckily met with no major failures and glitches in operating the business. At that time, he was confident that when self is honest, the product is good and customer relations are taken care of, things automatically fall in place in your favour.
Why it is a Start-up:
The business which is not an extended part or an offspring of an existing business can be termed as a startup. Therefore, the idea may or may not be new but the challenges faced during the journey and the innovations in tackling the same add real value. All the necessary condition for an Indian startup are being fulfilled by Akhilesh’s tea shop.
Size of Business:
Akhilesh started this tea shop with the research that this place has several good colleges nearby and their students could be a good customer segment. In the initial years of operation, the sales of the shop were good enough. Presently they do a sale of double of the size from initial years. During the year 2014-2016, he reached up to thrice per day as of initial years, but due to some legal issues, he had to reduce the size of the shop to half.
Cost of Setting up:
The tea shop was established with only Rs 2500/- investment that went into the purchase of raw material and some basic assets to set up the exterior and interior of the shop. Other fixed assets like a chair, benches, stove, gas cylinder, tea making pot etc. were carried from home. After that within a few years, all the fixed assets have been bought by the money generated through sales only.
Raw material- 50 % of Revenue
Rent-0 (Self Owned)
Water-0 (From home supply)
Misc expenses: 150/-
Maintenance cost: 120/-
Akhilesh and his wife are very content with their present earnings and status. All their family expenses, which are approx.
They dream to open a bigger cafe at a good location, with a variety of F&B options to customers with great ambience. To maintain the reasonable price, approachability and affordability.
For this the couple wishes to experiment with experiential weekend dining (Street food only) at great locations, to cater to the middle/upper-class customer segment that can pay for the value of food and ambience offered. They plan to experiment this with Team Kaathkuni at their Purukul Site.
The business is giving good returns and the number of customers is ever-increasing.
Positive word of mouth and homely atmosphere provided by the couple works in their favour, which attracts the Student crowd as well the well-paying adult customers to their shop. Half of their clientele is a repeat customer. The family has enough money to invest in their children’s future and education. Akhilesh considers himself good with money management and is confident that he can give valuable lessons and learnings to budding entrepreneurs and startups on how to manage money efficiently.
Cash Management :
Akhilesh easily manages the family expenses (with some savings) along with some capital to re-invest in the tea shop.
A rough figure is given below to understand the planning and execution accuracy.
|Family expenses (Per month)||27 % of revenue|
|Shop Operating costs (Per Month-working days 28 on average)||49 % of revenue|
|Other misc /maint expenses||3 % of revenue|
Monthly Cash Flow: Taking an average of 28 days of operation
Team Kaathkuni would proudly call this startup an Impact startup. This tea shop is not only providing good quality F&B to the customer, at a budget
There are numerous stories of some of the youngsters who got inspired by the couple.
They are and ideal examples of a decent well-respected family, breaking off from the shackles of “What will the society say” barrier and creating a venture which helps them meet their financial needs respectfully. Akhilesh proudly suggests, “There is nothing like a small/odd job. In continuation of that, he will rather appreciate an MBA student setting up a Peanut Vending Street startup, rather than slogging off in Pacific Mall the whole day as a salesperson in a showroom”.