How to Start Organic Food Store Business in India

A poorly chosen location will lead to more capital being spent on sales and promotion, educating your customers, discounting of products, and lead to lessening your profits in the long run. Try to start business in a prime location. People are willing to spend on organic products, and where there isn’t much competition.

2. Documentation

Depending on the location, you may need to negotiate prices with your landlord provided you are renting the place out. You will also need to sign or apply for a lease agreement.

3. Apply for necessary permits and registrations

There are a few formalities that need to be completed before you begin operations:

• Any entity that seeks to enter the organic food business requires a permit from the Health Department.

• The entity is also required to apply for a PAN.

• The entity must also procure a certificate for its store from the Organic Trade Association.

• The entity must also apply for an Employment Identification Number (EIN).

• The entity must either be a sole proprietorship, a partnership or a limited liability company.

• The entity must also be GST registered if expected annual turnover is over Rs. 20 Lakhs.

• The entity must also possess a bank account.

4. Financing Initial Investments

On an average, gaining an entry in the organic food business takes around Rs. 10 Lakhs, which includes a deposit for the rented location, running costs for paying salaries, operation and inventory costs for the products, furnishing and interior decoration for the store. It is often recommended to apply for startup loans as they offer many attractive features that are beneficial for businesses. Startup business loans have lesser interest rates, easier pay ups without additional costs for early repayment, and many other benefits that help your business grow.

5. Deciding what to sell/produce

Organic crops must be grown without the use of synthetic pesticides, herbicides, fertilizers, and bioengineered genes (GMOs). Organic livestock have to be raised in living conditions accommodating natural behaviors and be fed organic feed and forage. They may not be given antibiotics, growth hormones, etc.

6. Setting up the right price

Finding out the right price requires ample amounts of calculations and market research. A price too low, might increase sales volume but leave you unable to cope up with the costs. Prices set too high will make price-sensitive customers turn around and never return. Hence right pricing is essential for any organic food business.

7. Manpower and Management

The success of any business relies on optimal manpower required for various functions. Bigger stores might also need to be equipped with CCTV cameras to control theft. You must also maintain optimal quality of your products and adapt to the changing needs and preferences of your customers.