How To Start an Organic Store Business? [Investment, Profit]

. 10 min read
How To Start an Organic Store Business? [Investment, Profit]

Table of Contents:

1. How Can I Start An Organic Business In India?

2. How To Start Organic Products Business In India?

3. How To Start Organic Store In India? Step-By-Step Guide.

4. How To Start Organic Store?

5. Organic Products Business

6. Key Takeaways

7. FAQs on Organic Products Business

1. How Can I Start An Organic Business In India?

You have chosen to live an organic lifestyle fulfilled with the best of products and goods. But now you wish to convert the same into a long term business plan, so how will you go about it? The culture of going organic has become rapidly faster in India, hence, leading to more and more local and international brands to come up with locally sourced or produced goods. May it be food, health, skincare or cosmetics, if you are looking for the labels which say-

  1. Organic
  2. Cruelty-Free (Not tested on animals)
  3. Vegan
  4. Eco-friendly
  5. All Natural

Then you are captivated with the love of nature-based products. Dreaming about opening an organic product store is like the "It" trend amongst millennials and other marketing conglomerates. Read on closely as we spill the deets.

2. How To Start Organic Products Business In India?

Before we talk about the types of stores and general business tips, let us understand the basic definition of organic products. Organic Products Business refers to the method by which agricultural and lifestyle products are grown or manufactured. The major market division of Organic India(n) Products deal with food stocks. Organic products are compulsory to be free from any type of-

  1. Pesticides
  2. Fertilisers
  3. Preservatives
  4. Animal Testing
  5. Synthetic Herbicides

With the dawn of pandemic and digitisation taking over, people are opting for shopping organic products online via multiple portals.

3. How To Start Organic Store In India? Step-By-Step Guide.

Before you start googling about the best organic products in India, it's important to follow these steps to start an organic store.

Step 1- Prepare a solid business plan that covers all the perks and strategies that includes everything from execution to an exit plan.

Step 2- Include all your goals with this venture, whether it'll be a full-time commitment or just a trial & error business period.

Step 3- Research in-depth about the current market scenario, company type, product line details, investments, initial financial setbacks, etc.

Step 4- Pitch your plan to potential investors, request business partnerships, figure out banking, and loan-related solutions if needed.

Step 5- Business registration comes next. Manage your business's tax status and figure out the licenses and permits that your state government can allot you.

Step 6- Understand your licenses, for example, a certification from the Organic Trade Association will help you officially. Other licenses include- licenses and food permit, Employer Identification Number (EIN), LLC, Corporation, etc.

Step 7- Locality plays a prime role in the making or breaking of any business. Whether you want a crowded locale, newly developed area, or easily accessible via public transport, depending on the rent or lease, pick your location.

Step 8- Determine the type of organic product you want to sell, as often organic gets classified into food. What will you sell mainly?; or will your store be a mix of organic everything.

Step 9- Critically analyse your startup cost, as organic products are more expensive than your regular supermarket ones. Stocking your shelves with the right stuff is what defines your target market.

Step 10- Open a business bank account and get an official business ATM card during the beginning for a smoother track of online and offline transactions.

Step 11- Figure out your marketing strategies both online and offline. Be it word of mouth, social media marketing, or flyers in the local newspaper. A good marketing strategy will get your word going around the locality.

Step 12- Hire minimalistic staff who will help you with initial stocking and management, along with maintenance costs like- refrigerations and electricity.

Step 13- Find the best suppliers or distributors and also contact major organisations that favour organic products. It will help you get better purchasing deals in bulk.

Step 14- Price your products attractively and educate your staff on the benefits and uses of stuff in your store. Authentic efforts will lead to fruitful results.

Step 15- Choose portals like OkCredit for account management, OkShop for digitising your store for free, or OkStaff to manage staff salary and attendance.

4. How To Start Organic Store?

If you've been wondering how to start organic food business in India, then check off the following things on your list before getting started:

  1. Get Your Licenses and Permits in Place for your organic products business.
  2. Pick a Prime Location for your Organic food store business.
  3. Hire Reliable Staff/Employees.
  4. Take Special care of Customer Experience
  5. Stock Your Shelves (Upfront or Mandatory Investment)
  6. Offer Reasonable Pricing
  7. Advertise your Organic Store both Online & Offline. Also include benefits of organic products versus non-organic products.
  8. Track & Manage your Organic Store Accounting with OkCredit.

5. Organic Products Business

Check out the examples list of organic products that will help you understand the business of organic produce in India completely.

  • Organic Food Products- The biggest stakeholder in the Indian market is the organic food store division. It is the most prominent and growing sector in the organic part. India ranks as the single highest producer of organic foods across the world. So opening an organic food and beverage store might be your best bet to begin.
  • Organic Beauty Products- Another huge market to explore. More and more people are turning to organic cosmetics and skincare to protect the environment. Numerous brands come up with lotions, handmade soaps, bath salts, lipsticks, and more that are cruelty-free and made from natural products. It is a booming sector in India for the last couple of years.
  • Organic Harvest Products- It's one of the prime methods used in organic farming or agriculture. Locally produced foods, pulses, cereals, rice, and wheat is a huge buyers market in the metropolitan area. Organic farming in India is supported by the government of India as an integral part of the Make In India campaign.
  • Bio-Organic Products- Bio-organic products are the ones that are cultivated and manufactured according to the rules of the EU Regulation. It includes processed foods, skincare, medicines, teas, haircare, and more.
How To Start Organic Store?
  • Organic Baby Products- Even reputed companies are going for organic baby products stock. Mothers are very particular about the kind of skin products and packaged foods they feed their children. This sector is booming due to numerous companies entering and competing in the Indian market. If you dare to be exclusive, you can stock up your store with organic baby products- like clothing, canned foods, nutrition, and hair.
  • Organic Farming Products- Since more and more people are becoming health conscious with the pandemic and lifestyle disorders this quarantine brings, it is a highly profitable business in India. From daily vegetables to fruits, organics are taking the lead due to being free of pesticides, preservatives, or man made fertilisers.
  • Organic Hair Products- Indians are highly invested in good quality hair care products, and what's better than organic. Terms like organic, ayurvedic, and all-natural automatically create a positive mindset in people's minds. You can find an abundance of companies curating-
  1. Natural shampoos
  2. Conditioners
  3. Tonics
  4. Serums
  5. Organic hair oils
  6. Ayurvedic hair packs
  7. Hair vitamin tablets and so much more.

This field is a business in itself and could be invested in a successful organic business.

6. Key Takeaways

Whether you have your own production venture for organic products or outsource via multiple resources for your organic products business; with the right market tips and tricks up your sleeve, you can convert this venture into a long-term business. Let us know in the comments if we missed any tips.

 We hope our article turned out to be useful for you. For more such informative content, you can visit these linked articles as well:
Glass Manufacturers In India E-Scooter Manufacturers In India Saree Manufacturers In India
Medical Equipments Manufacturers India Valve Manufacturers In India
LED Light Manufacturers In India

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FAQs on Organic Products Business

Q. How much does it cost to start an organic grocery store?

Ans- An initial investment of 7 to 10 Lakh rupees is needed to start an organic products business in India. It includes your space rental, staff salaries, inventory management, and monthly operational costs.

Q. Is organic food business profitable in India?

Ans- Yes, the Organic food business is one of the highly profitable ventures in India. It has a high-profit margin and high-scale opportunity bracket compared to other businesses.

Q. How do I start an organic store?

Ans- To start an organic business in India you need official certification authorised by Organic Trade Association. Next, you have to file for Employer Identification Number or EIN, then you've to finalise your entity type. Apply for GST Registration if your annual turnover exceeds over 20 Lakh annually.

Q. What are organic products?

Ans- Organic Products Business have to use approved substances and protect natural resources. The manufacturing of organic products involves sustainable agricultural practices that avoid the usage of harmful chemicals and fertilisers. Organic products are mainly of three types:

  1. Organic food products
  2. Organic clothing
  3. Organic personal care products

Q. Is the demand for organic food growing?

Ans- Yes, the demand for organic food has grown drastically over the last decade for being chemical-free and hygienic than generic products.

Q. What is banned in organic food production?

Ans- The list of products that are banned in the organic products business are:

  • Pesticides
  • Fertilisers
  • Preservatives
  • Caffeine
  • Fructose
  • MSG
  • Industrial Solvents
  • Irradiation Processing
  • Synthetic Food Additives

Q. Where can I sell organic products in India?

Ans- Some of the popular places to sell organic products online in India:

  1. Alibaba
  2. Amazon
  3. Flipkart
  4. Godrej Nature's Basket
  5. Big Basket
  6. ShopClues
  7. Snapdeal
  8. Satavic Farms
  9. Pure & Eco India
  10. Local Restaurants

Q. Is Organic Farming Profitable?

Ans- Yes, Organic Farming is a profitable agricultural process in India. It offers a huge profit margin compared to the standard and generic market products.

Q. What are examples of organic foods?

Ans- Organic food examples include the following:

  • Fruits
  • Vegetables
  • Rice
  • Pulses
  • Meats
  • Processed Foods
  • Crackers
  • Drinks
  • Soft Drinks
  • Dairy Products

Q. Why is organic food more expensive?

Ans- Organic food products are pure, refined and take a longer duration to grow. As it is still a developing venture sourcing and supply is poor in India, hence, organic food is more expensive.

Q. How can I start an organic business in India?

Ans- There are certain formalities and permissions which are to be finalised before you start your business. In order to understand how to start organic business in India you must know the following steps:

  • A permit from Health Department
  • You need to file for EIN (Employer Identification Number)
  • You must get your store certified by Organic Trade Association
  • GST Registration
  • A bank account for your business

Q. What are the challenges in the organic products business?

Ans. Some challenges in the organic products business are:

  1. The organic business in India is still at a nascent stage.
  2. Awareness has to be created.
  3. Organic products are usually costlier than normal ones.
  4. E-commerce brands are competing with organic stores.