How to Start an Herbal Medicine Business?

If you’re seeking to set up an herbal medicine business, then congratulations! You have visited the correct page. In this segment, even the person who has no experience in the Ayurveda field can find a way to start and make their herbal medicine business run successfully. We have prepared step-by-step methods for guiding the readers to start an herbal medicine business.

After reading this article, you’ll become capable enough of running an herbal business. Take a look at these step-by-step methods.

Create a business plan

Making a clear plan on a paper is compulsory prior to the beginning of a business. All the creativity or innovations were firstly designed on paper and afterward implemented practically. Having a proper plan will aid you to map out the particulars of your business and find out the unknowns.

In a business plan, entrepreneurs should consider some important topics like:

Name of the business

Selecting a good name for your business is a bit complicated and challenging. The name of your business has a direct or indirect effect on the customer’s mindset. Like if you want to choose a name for an Ayurvedic brand, and then it must be somewhere related to the earth, nature, life, herbs, or anything that leaves a positive impact on the reader’s psychology. Also, design a unique and appealing logo for your brand.

Find out the products

Note down the product names you want to deal in. Enlist the Ayurvedic products which are more demanded in the market such as skincare products for beauty enhancement, medicinal products for treating diseases, and check which diseases are more common in your city, state, or country. For instance, if there is more usage of cosmetic products then you can begin with herbal face wash, creams, soaps, shampoos, etc.

Set target market

See if you want a retail or wholesale business. Medicinal herb businesses have certain types of customers. Retail customers are those who are interested in living a healthy and natural lifestyle and also possess experience in the usage of herbal medicines. However, you can do wholesale and expand your business by supplying herbal products to Ayurvedic store retailers.

What will be the startup cost?

Knowing about the startup cost is a crucial thing to get decided. You can decide startup costs on the basis of your business model. Either you will be a manufacturer or using a third-party manufacturer company, or will be working as a wholesaler or supplier will give you an estimate for the capital required at the beginning.

Establish a legal business entity

The most usual business structures are- sole proprietorship, limited liability company (LLC), partnership, and corporation. By forming legal business entities such as corporations, or LLC, you will protect yourself from facing any hurdles personally in the case your medicinal herbs business is sued to the court.

File for various taxes

You have to pay all the state and federal taxes before the opening of your business. It is an integral process of a business startup. For this, you have to apply for an EIN which is a simple and free procedure.

Get license and permits from various authorities

To prevent any hefty fines and closure of your company, it’s necessary to take licenses and permits from the regulatory authorities. Different business models need different permits like in the case of herbal product manufacturers; one should take a manufacturing license from the AYUSH department and build the structure as per guidelines of AYUSH. Similarly, if you want to sell Ayurvedic medicines, you need FSSAI registration/ license and GST number.

Create a business website

With a good name and logo, you have to create a website representing your business. All legitimate businesses have their own website to expand their business worldwide. The size of your business and industry doesn’t matter when it comes to taking your business online.

Many entrepreneurs hesitate to build their business websites as they don’t have any experience in the website building process. But there is no need to worry as numerous website builders are now available in the market. You can associate with them and own your own website.

Type of business you wish to initiate

Now the main point that needs to be discussed is the type of business you are interested in. For new entrepreneurs who do not have any experience in the field of Ayurveda may choose any of the following business:

Third party Ayurvedic manufacturing

With the third-party manufacturing business, you can manufacture herbal products from other manufacturers. By this, you can save a huge sum of money required for the installation of manufacturing equipment and setting up the industry.

A large number of third-party manufacturers are available in India, some best manufacturers’ are- Aveda Ayur, Biolife Remedies, Welnex Bio, Medlab Pharmaceuticals, Texas Pharmaceuticals, and Medicare Remedies. All these companies provide third-party manufacturing of Ayurvedic medicines with the best quality and services.

Clinical Franchise

If you can hire an Ayurveda B.A.M.S doctor and establish a clinic, then you can start an ayurvedic medicines business by getting a clinical franchise of an Ayurvedic brand such as Life Aveda, Dabur, Patanjali, etc.

A good Ayurvedic brand will support you in every possible way to make your clinic successful. The company will provide you daily pamphlets, banners, and aids in online marketing on social media.

Herbal Medicine Distributorship

By becoming a distributor of an Ayurveda company, you will be able to sell the herbal products of that Ayurveda Company at your location. We often see various Ayurvedic stores open in our city under the brand name of any famous company. This is also a beneficial ayurvedic business technique for making satisfying profits and prestige. Numerous Ayurvedic brands are designating distributors all over India. You can contact a few renowned Ayurvedic brands such as Himalaya, Dabur, Life Aveda, Patanjali, etc.

Dispensing doctors

For the Ayurveda BAMS doctors, who wish to sell herbal products under their own name or brand, “Dispensing doctors” is the best. In this business model, doctors can get herbal products directly from the manufacturer in loose packaging or in the packaging of their own brand.

With this business model, you can fulfill the purpose of your own products without investing a large amount of money in the manufacturing equipment.

CONCLUSION

The use of Ayurveda is consistently increasing in the whole globe for the cure of acute as well as life-threatening chronic diseases. In this ongoing trend, launching a business linked to Ayurvedic medicines is genuinely a revenue-creating opportunity. You can start with the above-given business opportunities in the field of Ayurveda by associating with a good Ayurvedic brand.