Sales of herbs or herbal medicinal products have grown significantly in recent years. Starting this business has great prospects. More and more people especially from developed countries switch from conventional pharmacy to herbal medicine. Starting a herbal business is promising but you need a good business model. The positive experience drives this business up a lot. To start this type of business, you need to have prior knowledge of traditional medicine like be a herbalist, or a Herbal medicine degree.
You need to do deep research and create a business model for the product, the price, the promotion, and distribution. Planning and research are some of the key factors for a successful business because there is a lot of competition in the market. Here in this post, we will discuss briefly how to start a herbal medicine business and excel in this business.
How to Start A Herbal Medicine Business
The Name of the Business
Know Your Herbs
Plan Your Business
Form A Legal Entity
Marketing of Herbal Medicine
Obtain Necessary Permits And Licenses
How To Promote Your Herbal Business
Frequently Asked Questions
Souvik Dey
How to Start A Herbal Medicine Business
The Name of the Business
The name of the business is very much important. Naming a company can be challenging and time-consuming. Your company name is an important part of your company’s identity. Once you understand what you want your company then start thinking about words that describe your industry also think about words that describe your competitors.
Plain words make it very difficult to differentiate your company from competitors. You’ll want your company’s name to evolve as trends evolve, so be careful to identify the trends and avoid following them.
Know Your Herbs
Before starting into a herbal business, you should have a basic knowledge of herbal remedies and their applications. You need to know about each herb that you are using. And Ensure that your products are both safe and effective. You have to decide which herbs you want to grow.
In general, it’s a good idea to focus on a select few when you’re growing for the market rather than offering a huge selection. Only use organic fertilizers, as they help plants grow healthier. The owner must have knowledge on the herbal medicine uses, just identify the herbal medicine plants and can have a herbal medicine garden to expand their product range.
Here is the list of herbal medicine plant that's common :
- Chamomile
- Echinacea
- Feverfew
- Garlic
- Ginger
- Gingko
- Ginseng
- Goldenseal
- Milk thistle
- Saint John's wort
- Saw palmetto
- Valerian
Chayanika Goswami
Plan Your Business
Cost
A clear herbal medicine business plan is essential for a successful entrepreneur. The cost of starting this type of herbal medicine business differs greatly depending on the business model. The easiest and cheapest way to start this type of business is to purchase the medicinal herbs through a wholesaler and then resell these herbs online. Opening a permanent store to sell medicinal herbs requires a person to have access to much more capital. The largest expense for those who decide to grow their medicinal herbs is the land.
Depending on your herbal medicine business model, you will have to pay monthly for rent, utilities, seeds, inventory, and labour.
Target Audience
A herb business can have many different kinds of clients or customers. Customers are interested as living a natural healthy lifestyle, some might want it for their ailments, while some might already have experience with herbal medicine.
Charge of Customers
It depends on your product’s quality, uniqueness, and where you choose to sell. Business owners with unique products have much more flexibility in setting their prices. The herbal medicine shop business usually have flexible prices for the medicine, while if the owner is starting a herbal medicine business online then they can set fixed prices for the products.
Profit
Medicinal herbs businesses that re-sell bulk herbs typically charge 30% or more over their costs. Businesses that grow medicinal herbs can also plant culinary herbs to diversify their customer base. All owners of medicinal herbs businesses can create “value-added” products.
Strength
When it comes to strength as a company, you have a wide range of herbal medicines and teas for different ailments that can meet the needs of a wide range of consumers. The herbal medicine in India is booming as many people prefer organic medicines especially during the Covid 19 Pandemic.
Souvik Dey
Form A Legal Entity
The most common business structure types are the sole proprietorship, partnership, limited liability company(LLC). Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your medicinal herbs business is issued.
Marketing of Herbal Medicine
Herbal medicines are available in various dosage forms such as tablets, extracts, dried plants, and others. The global herbal medicines market is segmented based on type, the medical market is segmented based on product type, application, and geography. The Global Herbal Medicine Market is expected to register a CAGR of 5.88% to reach USD 1,29,689.3 Million by 2023. According to the National Center for Biotechnology Information, 2015, the World Health Organization (WTO), reported that around 70% to 80% of people globally rely on herbal sources for their treatment.
- Marketing via email was one of the first digital advertising methods, but it’s still one of the most effective.
- Pay close attention to federal, state, and local regulations. The herbal medicine industry has been subject to many investigations regarding product marketing and benefits.
- Partner with local health-related businesses. Producers will have the most credibility in their communities.
- Establish a product website.
Obtain Necessary Permits And Licenses
To manufacture Ayurvedic / Herbal products in India, we need a license from AYUSH and not from FSSAI.
Below are 3 types of manufacturing licenses issued by AYUSH :
- Complete Manufacturing License - It is a full-fledged manufacturing license. In this case, you will be both marketing and manufacturing the product. Thus you will have to set up your own manufacturing unit. You will have to fulfil all the requirements stated by the state authority of AYUSH.
- Loan License - It is a manufacturing license where you loan a manufacturing unit of a third party manufacturer to make your products. Thus you will not have to own a manufacturing unit.
- Contract/ Third party manufacturing - is a License where you will use the manufacturing license of a third-party manufacturer to manufacture the product. You will be just marketing the product. Thus you don't have to own any manufacturing unit and don't have to get any license.
Open a Business Bank Account
Opening a separate bank account for the business is essential for personal asset protection. The herbal medicine business owner can then get a credit card for their business account so the personal and business expense are separate. Have a business bank account also makes it easier for accounting and tax filing. Besides that, it also helps in understanding the financial performance of your herbal business.
Chayanika Goswami
How To Promote Your Herbal Business
Product Knowledge
When we speak of herbs, it is very important to have a basic knowledge of what you are going to sell. It is of utmost importance to know each herb that is going to be a part of your business plan.
Knowing Your Market
Creating your herbal product and putting it on your website is not enough to grow your business. You need to identify the ones you are making your product for. Your products need to solve the problems of the target audience. Presenting your product to the wrong group of people will only hold back your business from growing.
Guiding And Communicating
Herbal products are needed by consumers when their concerns are related to health. You will stand a better chance of selling your products if you can guide them about the products and their uses. This will instantaneously earn the much-needed trust of your customer which is always a positive aspect in marketing your business.
Affordable Pricing
You need to keep in mind that the products you are selling don’t suffer from the issue of overpricing. The urge to keep the products underpriced is helpful for any business owners, you have to vary much care about that you have not faced any losses.
Branding Via App
Having an app for your business not only creates a digital marketing channel but also stand out from the competitors.
Offers Coupons And Discounts
This is a great way to attract the first batch of customers and lift your business from the ground when you are just a beginner. Offering too much will increase the consumer's unhealthy expectations. So make the marketing plan with great efficiencies.
Active On Social Media
Advertising via social media costs very little and offers other benefits as well. In this way, consumers get involved in the process of marketing your herbal business. You must regularly update your social profiles and the posting of content that are engaging and interesting.
Avantika Bhardwaj
Frequently Asked Questions
How to start herbal products business in India?
Things to consider before starting a herbal product business:-
- Market Research.
- Know your herbs.
- Licensing & Registration.
- Location.
- Marketing.
How do I get Ayush license?
The Procedure to Obtain Licence for herbal products in India:-
- Visiting the Website.
- Review of Documents.
- Approval by the Commissioner.
- Obtaining the License.
What is Ayush certification?
Quality Council of India has been engaged for voluntary certification of quality of Ayurveda Siddha Unani (ASU) products. AYUSH Standard and AYUSH Premium Marks are awarded for products moving in the domestic and international market respectively.
How does a medicinal herbs business make money?
Medicinal herbs business owners make money by selling herbs.
What are the expenses for a medicinal herbs business?
Depending on your business model, you will have to pay monthly for rent, utilities, seeds, inventory, and labor.
What are some skills and experiences that will help you build a successful medicinal herbs business?
The owner of the medicinal herbs company needs to have an understanding of the proper use of medicinal herbs or must be a herbalist. If not the owner can get a herbal medicine degree or join a online herbal medicine courses.
What is the growth potential for a medicinal herbs business in India?
With the on-going Covid 19 Pandemic there has been a massive growth of natural products and healthier alternatives to more common medical issues in the India.
How to make herbal medicine?
To make herbal medicine, the herbalist must have knowledge on types of herbal medicine.
Author: Souvik Dey
Source : https://startuptalky.com/herbal-medicine-business/
Date : 2021-07-30T16:30:00.000Z