Introduction & background:

“Opportunity is like sunshine, if you wait too long, you will miss them”

There will be some types of business that develop rapidly from starting stage & have a good future, one of such industry is the “organic food products industry”

The boom for organic food products started in Chennai in 2015 and onward with good response and there was rapid growth in this industry as the years go, there are a lot of opportunities available to enter into these kinds of business.

Is There a Good Business opportunity for opening an organic provision store?

There will be a lot of differences between products purchased from normal provision stores and organic provision stores, for example: in the case of honey if you purchase from a provision store you will be getting “Honey Extracted from beekeeping farms” which is the 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 are organic products.

Pricing difference normal honey extracted from bee farm .250-300 / Litre

Honey from natural sources – Rs 600-1000 Litre.

An organic store in Chennai can be started with an investment of less than Rs 10 lakhs with a good variety of products & quality.

Approximate Cost structure to start organic provision store with 200 square feet

1. Lease amount: Rs.100000-200000.
2. Interior & racks –Rs.150000-200000.
3. Computers & billing – Rs.50000.
4. Investment in products & stocks – Rs. 200000-350000
5. Organic store business registration Charges – Rs. 22000

The organic product will generally be having good profitability of a minimum of 20 %.

Illustration

Sales 30 days,                                                         600000

Less: cost

Cost of Products @ 80 % Maximum,                480000

Rent                                                                        15000

Salary 2per 8000 *2                                            16000

Electricity                                                               10000

Expenses                                                                 5000
Net profit                                                            74000. 

 

Initial Stages

 

It is Easy to start your organic store with minimum legal registration just go for sole proprietorship firm registration process which can be done by registering MSME registration/ SSI registration/ Udyog Aadhaar registration/ Udyam registration. If your business is having multiple owners, go with partnership firm registration.

    

How to give proper Recognition to your Business?

1. Some organic store fails due to the 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

1. Natural & organic-grown millet & flour
2. Handcraft, which would be available from villages.
3. Food products sourced from natural sources e.g. mountains, forests, etc
4. Fresh milk
5. Edible oils are processed by natural process.
6. And all the products which are produced naturally or organically

 

Top 10 points to start and run an organic food store successfully?

1. At the initial stage, provide offers at low price
2. Located, in a moderate traffic location (high traffic/low traffic not suitable). Eg: You can choose sub-roads.
3. Spend time explaining about products you sell, even after they decided to purchase
4. Suggest the best suitable options available.
5. Spread messages on social networking sites about your shop and keep your follower’s attention always.
6. Target to get a new client through word of mouth, this can be possible only if you have satisfied existing customer
7. Let the customer know why they pay a premium price for organic products.
8. Maintain a sufficient amount of stocks required for 15 days, don’t buy more stocks because for the reason you get them at a cheap price.
9. Financial aspects – Make sure you have completed Income tax return filings on time.
10. Comply with all the relevant tax registration such as GST registration for the food business

Expansion of business:

Once you are convenient with 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 & an important role in long-term pricing

A substantial increase in Patanjali products was possible only because of proper branding & marketing channel.

Still, if you’re worried about your business to start then all these to help you in setting up your organic shop with all necessary business registration.