What are the risks and problems encountered when investing in tea?

1. Cash risk.

What are the specific manifestations of cash risk? The cash risk is manifested in the fact that the closing balance of the profit on the income statement is large, but in reality, the closing amount in the cash statement of the enterprise is so small that it is basically zero or even negative. Managers think that the profit on the books is cash, but in fact this is not true.

2. Continuing operation risk.

As time goes on, the original managers of the enterprise will slowly age, and the age and busy management of affairs will make them less and less able to do their jobs as they once did. Going concern risks arise when the founder or owner dies, becomes ill for an extended period of time, or becomes incapacitated.

3. Financing risk.

At a certain stage, the original owner is no longer able to continue to provide the required funds. In particular, fast-growing companies often face the risk of financing with tight funds. They will raise funds from various sources, such as the promoter's share increase; offering to the public or looking for unsecured loans; Financial institutions subscribe to shares or provide term loans, etc.

The problem stems from the fact that there are pros and cons to each way of obtaining capital, and if the operator is not good at learning from each other's strengths and weaknesses, it will be difficult for me to move forward.

Although the prospects for the development of the tea market are good, even if the profits of tea franchise are very considerable, but at the same time the risks it causes should not be underestimated, should be paid attention to, as long as these tea franchise risks are prevented in the actual entrepreneurship, entrepreneurs can create more and more profits and value.

Here are several strategic risks that can exist in the tea industry:

1.Unstable quality: The quality of tea will vary due to environmental factors such as climate and season, which will have an impact on consumers' purchase intention and loyalty.

2.Declining market demand: If consumers' preferences and lifestyles change, resulting in a decline in their demand for tea, this will have an impact on tea producers and sellers.

3.Fierce competition: The competition in the tea market is fierce, and the means of war, advertising and publicity are abused, and enterprises are facing survival pressure.

4.Adjustment of policies and regulations: Changes in policies and regulations have an important impact on the production, import and export, sales and other links of the tea industry, and enterprises need to make strategic adjustments in a timely manner according to relevant policies.

5.Natural disasters: Natural disasters such as floods and other emergencies may also have a significant impact on the tea industry, causing tea production to suffer heavy losses.

Hello boss, here is the biggest technical risk for tea: first, pests and diseases. The second is that the climate is not good, these two points will affect the survival rate of the tea trees in the handshed, and the yield problem in the future, the third is the problem of marketing, and the input and output are disproportionate.

The risk of overcapacity is the biggest problem facing Bipai in China's tea industry. Tea leaves, refers to the leaves and silver buds of the tea plant. Also known as tea, 槚 (jiǎ), 茗, 荈 (chuǎn).

It generally refers to the leaves of the evergreen shrub tea tree that can be used to make tea, as well as the beverages brewed from these leaves, and later extended to all herbal teas brewed with plant flowers, leaves, seeds, and roots, such as"Chrysanthemum tea"Wait; It is brewed with various medicinal herbs"Herbal tea"etc., also known as Lei Ya in Chinese literature. In some countries, tea is also made from the leaves of other plants such as fruits and herbs, such as:"Fruit teas"。