How to Open Organic Food Store in India

We have observed a surged demand for organic food products in recent years. People are now keener about consuming food ingredients like vegetables, spices, etc., that have been organically grown without using fertilizers or pesticides. These natural food products are generally better for human health and hence the demand. Unfortunately, there is a crisis of organic product stores in every neighborhood in India. If you wish to open a food store dedicated to organic products, the scope of income and business development is quite high.

Under the present market scenario, it is a wise decision to begin your organic food store. People with health concerns are mostly prepared to pay extra for naturally grown food items. The Indian market for organic food has grown by 25% in the last 3-years. We expect further growth in the business as cautiousness builds among people about the benefits of organic food.

Steps of Starting an Organic Product Store

While planning to start an organic food store in India is a wise decision, it is not easy to execute. Successfully executing the business operation requires exhaustive planning, understanding the concept of organic food, support of the local organic farmers, and choosing the right store location.

Here we have the steps of opening an organic product store in India, in brief, to make the journey hassle-free for you.

1. Store location:

As a part of business planning, you need to research the market demand for organic food products and set up your store in a suitable location where the demand is high. A successful organic food store requires critical location selection and securing the store location with proper documentation and store registration. 

Negotiate your terms with the space landlord and finalize a rent. Prepare the rental agreement, pay the lease and get the legal tenure for the space to set up your store. 

2. License and Permits:

Before you open your store, you need to secure all the below licenses and permits from the respective Governing bodies to establish a legitimate business.

• The necessary permit from the local Health Department
• An organic food store certificate from the Organic Trade Association.
• Apply for the Employer Identification Number or EIN
• Register for a company structure, whether it will be LLC, partnership, or sole proprietorship
• Get your GST registration Certification and TAN number
• Open a business bank account or current bank account
• File your professional tax

Once you have acquired all these licenses and permits, you are free to start your business in India.

3. Choosing the Organic Food you Wish to Sell:

You need to understand your products before selling. The organic food business needs you to decide on the types of organic food items you are willing to sell at your store. Of course, what product you choose depends on its market demand in your neighborhood and the profitability. It is also dependent on the availability of distributors for that organic food item, their terms for product delivery, and payment terms.

4. Product Pricing:

Deciding a product is not the end of the job. You have to calculate thoroughly and price your products such that it covers your expenses and also doesn’t seem too high for the market. A survey on competitors in the market can help with the pricing.

5. Manpower Hiring:

You need optimal manpower to run your store. Interview staff with basic knowledge of organic food and its benefits so that they can honestly handle the store sales, operation, promotions, and finances. 

6. Store Management:

One of the most important parts of running an organic food store is its management. You need to ensure product quality at all times. Moreover, the business requires communication with your distributors to ensure a smooth supply.

7. Store Promotion:

Even an organic food store requires smart promotion. Initiate the marketing with word of mouth and slowly promote your products over social media platforms or leafleting.

8. Budgeting and Execution:

By now, you understand the concept of organic food, market demand and have a complete setup for selling the products. But a business requires budgeting to run smoothly.

Take an estimate of your capital investment and operational cost for the first year of opening the store. Consider the rent, salaries, transportation and supply cost, utility bills, etc. Match the budget with your product pricing and prepare a sales estimate.

To execute the business plan, you need to understand your options for financing. You can always get a bank loan to initiate the business. Many financial establishments will offer you options of EMI payment to ease the process.

Final thoughts on Starting an Organic Product Business

Organic product stores are in demand in India. You can always leverage the health consciousness of people to supply them with high-quality and beneficial organic food products.

The business is profitable if you understand the market well. One has to be on good terms with the organic food suppliers to procure the items at a justified price and earn profit by selling them, even at an affordable rate.