Introduction & background:
“Opportunity is like sunshine if you wait too long, you will miss them”
There will be some types a business which develops rapidly from starting stage & have good future one of such industry is “organic food industry”
Organic food industry started in Chennai from 2015 onward with good response and till date, there is a lot of opportunities available to enter into these kinds of business.
Is There good Business opportunity in opening organic provision store?
There will be lot of difference between product purchased from normal provision stores and organic provision store, for example: in case of honey if you purchase from provision store you will be getting “Honey Extracted from beekeeping farms ” which is process of collecting honey from beekeeping farms, while honey you get from natural sources such as forest & mountains and produced & collected by natural process. You should have Understood what is organic products.
Pricing difference normal honey extracted from bee farm .250-300 / Litre
Honey from natural sources – Rs 600-1000 Liter.
Organic store in Chennai can be started with investment less than Rs 10 lakhs with a good variety of product & quality.
Approximate Cost structure to start organic provision store with 200 square feet
- Lease amount: Rs.100000-200000.
- Interior & racks –Rs.150000-200000.
- Computers & billing – Rs.50000.
- Investment in products & stocks – Rs. 200000-350000
- Organic store business registration Charges – Rs. 22000
The organic product will be generally having good profitability of minimum 20 %.
Sales 30 days 600000
Cost of Products @ 80 % Maximum 480000
Salary 2per 8000 *2 16000
Net profit 74000.
It is Easy to start your organic store with minimum legal registration just go for basic proprietorship firm registration process which can be done by registering MSME registration/ SSI registration/ Udyog Aadhaar registration. If your Business is having multiple owners go with partnership firm registration.
How to Give proper Recognition to your Business?
- Some organic store fails due to wrong selection of product and over stuffing with provisions available at normal stores, I had given some of the illustrative products you can have
Some of the products you can sell
- Natural & organic grown millet & flour
- Handcraft which would be available from villages.
- Food product sourced from natural source eg. mountains, forests etc
- Fresh milk
- Edible oils processed by natural process.
- And all of the products which are produced naturally or organically
Top 10 points to start and run organic food store successfully?
- At initial stage provide offers at low price
- Located, moderate traffic location (high traffic/low traffic not suitable ). Eg: You can choose sub-roads.
- Spend time to explain about products you sell even after they decided to purchase
- Suggest best suitable options available.
- Spread message on social networking sites about your shop and keep your follower’s attention always.
- Target to get new client through word of mouth this can be possible only if you have satisfied existing customer
- Let the customer know why they pay a premium price for the organic products.
- Maintain sufficient amount of stocks required for 15 days, don’t buy more stocks because for the reason you get them at a cheap price.
- Financial aspects – Make sure you have completed Income tax return filings on time.
- Comply with all the relevant tax registration such as GST registration for food business
Expansion of business:
Once you are convenient for the all the products you deal with, and you have proper detailed information you can go for expansion by adding additional stops & launching the product under your own brand.
Branding plays & important role in long-term and pricing
Patanjali business sales reached only because of proper branding & marketing channel.
Still, you worry about your business start then all these to help you in setting up your organic shop with all necessary business registration.