Herbal Medicine Products Business Plan (Sample Template For 2021)
Herbal Medicine Products Business Plan (Sample Template For 2021)
Herbal medicine is one commodity that is useful in all parts of the world
and of course those that are in the business of producing herbal medicines
and related supplements, are known to generate sales repeatedly if the
business is properly managed. Again, economic downturn hardly a ects
the consumption of herbal medicine and teas because it is a healthy
substitute for chemical based medications.
If you want to start this business, then you should conduct your market
research and feasibility studies (https://www.pro tableventure.com/steps-
write-feasibility-study-report/). You also need to write a good business plan
(https://www.pro tableventure.com/guide-writing-business-plan/) that
would help you raise your seed capital, set up the business, sort out tax
and market your products.
The truth is that it is one thing to have a fantastic idea cum business plan,
but another thing for the business plan to translate to pro ts, which is why
it is important to assemble a team of experts to work with if you want to be
successful with your herbal medicine business. Below is a sample herbal
medicine products business plan template that will help you successfully
write yours.
If you are a close observer of happenings in the Herbal Medicine and Tea
Production industry, you will agree that the industry has contracted over
the past ve years. Despite positive consumer trends, including a rise in
health consciousness, the industry faltered at the start of the period due to
decline in general tea consumption.
Statistics has it that in the world, there are about 227 licensed and
registered herbal medicine and tea production companies directly
responsible for employing about 1,018 employees. The industry rakes in a
whooping sum of $595 billion annually with an annual growth rate
projected at -2.3 percent between 2012 and 2017. It is important to state
that Bigelow, Hain Celestial Group and Unilever are the establishments
with the lion shares of the market in this industry.
Market share concentration has declined slightly over the past ve years as
smaller players have entered the industry. In 2017, IBISWorld estimates
there will be 225 producers operating in this industry. The product lines of
the major brands, such as Lipton and Celestial Seasonings, typically
comprise high-volume branded products.
Lastly, if you are looking towards leveraging on the shift in medications and
treatments to generate huge income, then one of your best bet is to start a
herbal medicine and tea production company. One thing is certain about
starting your herbal medicine and tea production business, if you are able
to conduct your market research and feasibility studies, you are more likely
not going to struggle to sell your products because there are consumers
out there who are ready to buy from you.
2. Executive Summary
Nature© Herbal Medicine Production, Inc. is a licensed herbal medicine
and tea production company that will engage in the production of varieties
of herbal medicine and tea and it will be based in Altoona – Pennsylvania.
Our facility will be customized to t into the kind of ideas we have of how a
rst class herbal company should look like and we have been able to
secure permits from all relevant departments in Pennsylvania.
The demand for herbal medicine and tea is not going to plummet any time
soon, which is why we have put plans in place to continue to explore all
available markets around the cities where we intend retailing our products.
Our strongest selling point at Nature© Herbal Medicine Production, Inc. is
the unique taste of our products. There is hardly any customer that will
make use of our products who would not want to come back and make
more purchase.
Nature© Herbal Medicine Production, Inc. will at all times demonstrate her
commitment to sustainability, both individually and as a rm, by actively
participating in our communities and integrating sustainable business
practices wherever possible. We will ensure that we hold ourselves
accountable to the highest standards by meeting our client’s needs
precisely and completely.
Importing herbs
Blending herbs
Packaging herbal teas and medicinal teas such as Rooibos tea, Mate tea,
Chamomile tea, Senna tea, Ginger tea and other herbal teas
As part of our plan to build a top ight herbal medicine and tea production
business in Altoona – Pennsylvania, we have perfected plans to get it right
from the onset which is why we are going the extra mile to ensure that we
have competent employees to occupy all the available positions in our
company.
We will ensure that we only hire people that are quali ed, honest,
hardworking, customer centric and are ready to work to help us build a
prosperous business that will bene t all our stake holders. As a matter of
fact, pro t-sharing arrangement will be made available to all our senior
management sta and it will be based on their performance for a period of
ten years or more depending how fast we meet our set target.
The picture of the kind of herbal medicine and tea production business we
intend building and the goals we want to achieve is what informed the
amount we are ready to pay for the best hands in the industry as long as
they are willing to work with us.
Below is the business structure that we will build Nature© Herbal Medicine
Production, Inc.;
Plant Manager
Responsible for overseeing the smooth running of the herbal medicine and
tea production plant
Part of the team that determines the quantity and avors of herbal
medicine and tea that are to be produced
Maps out strategies that will lead to e ciency amongst workers in the
plant
Responsible for training, evaluation and assessment of plant workers
Ensures that the steady ow of both raw materials to the plant and easy
ow of nished products through wholesale distributors to the market
Ensures operation of equipment by completing preventive maintenance
requirements; calling for repairs.
Ensures that the plant meets the expected safety and health standard at all
times.
Merchandize Manager
Manages vendor relations, market visits, and the ongoing education and
development of the organizations’ buying teams
Helps to ensure consistent quality of herbs and other raw material used in
the production of herbal medicine and tea
Responsible for the purchase of raw materials and packaging materials
(bottles, and plastics et al)
Responsible for planning sales, monitoring inventory, selecting the
merchandise, and writing and pricing orders to vendors
Accountant/Cashier
Ensures that all contacts with customer (e-mail, walk-In center, SMS or
phone) provides the client with a personalized customer service experience
of the highest level
Through interaction with customers on the phone, uses every opportunity
to build client’s interest in the company’s products
Manages administrative duties assigned by the store manager in an
e ective and timely manner
Consistently stays abreast of any new information on the company’s
products, promotional campaigns etc. to ensure accurate and helpful
information is supplied to clients when they make enquiries
6. SWOT Analysis
We want to build a top ight herbal medicine and tea production company
hence, we were able to engage some of the nest business consultants in
Altoona – Pennsylvania to look through our business concept and together
we were able to examine the prospect of the business and be sure we have
what it takes to run a standard herbal medicine and tea production
company that can compete favorably in the industry.
In view of that, we were able to take stock of our strengths, our weakness,
our opportunities and also the threats that we are likely going to be
exposed to in Altoona – Pennsylvania and even in the United States of
America as a whole. Here is a of what we got from the conducted SWOT
Analysis for Nature© Herbal Medicine Production, Inc.;
Strength:
Weakness:
The fact that we are setting up an herbal medicine and tea production
business in a city with other herbal companies and importers might likely
pose a challenge for us in breaking into the already saturated market in
Altoona – Pennsylvania. In essence our chosen location might be our
weakness. But nevertheless, we have plans to launch out with a big bang.
Opportunities:
Threat:
The threat that is likely going to confront us is the fact that we are
competing with already established herbal companies in Altoona –
Pennsylvania and also there are other entrepreneurs who are likely going
to launch similar business within the location of our business.
Of course, they will compete with us in winning over the available market.
Another threat that we are likely going to face, is unfavorable government
policies (https://www.pro tableventure.com/regulation-policies-hurt-
business/) especially as it relates to the importation of herbal medicine and
teas into the United States of America.
7. MARKET ANALYSIS
Market Trends
The industry has grown steadily over the last ve years as herbal
companies have adapted to the rapidly changing consumer preference and
lifestyle. External factors such as per capita herbal medicine and tea
consumption and per capita disposable income will impact industry’s
performance.
Households
Corporate Executives
Sports Men and Women
Everyone who resides in our target locations.
So also the varieties of herbal medicine and tea avors that we produce,
our large distribution network and of course our excellent customer service
culture will de nitely count as a strong strength for the business.
Lastly, our employees will be well taken care of, and their welfare package
will be among the best within our category in the industry, meaning that
they will be more than willing to build the business with us and help deliver
our set goals and achieve all our aims and objectives. We will also give
good working conditions and commissions to freelance sales agents that
we will recruit from time to time.
N.B: This projection was done based on what is obtainable in the industry
and with the assumption that there won’t be any major economic
meltdown and there won’t be any major competitor o ering same
products as we do within same location. Please note that the above
projection might be lower and at the same time it might be higher.
Nature© Herbal Medicine Production, Inc. has a long term plan of opening
outlets in various locations all around the United States of America and
also to sell our franchise which is why we will deliberately build our brand
to be well accepted in Altoona – Pennsylvania before venturing out to other
cities in the United States of America.
We have put in place business strategies that will help us run on low pro ts
for a period of 6 months; it is a way of encouraging people to buy into our
brand.
Payment Options
Here are the payment options that Nature© Herbal Medicine Production,
Inc. will make available to her clients;
In view of the above, we have chosen banking platforms that will enable
our client make payment for the purchase of our products without any
stress on their part. Our bank account numbers will be made available on
our website and promotional materials.
Aside from that, you are expected to purchase and service your
distribution trucks, pay your employees and your utility bills. These are the
key areas where we will spend our startup capital;
The total fee for registering the Business in the United States of America –
$750.
Legal expenses for obtaining licenses and permits as well as the accounting
services (software, P.O.S machines and other software) – $1,300.
Marketing/promotion expenses for the grand opening of Nature© Herbal
Medicine Production, Inc. in the amount of $3,500 and as well as yer
printing (2,000 yers at $0.04 per copy) for the total amount of – $3,580.
The cost for hiring Business Consultant – $2,500.
Insurance (general liability, workers’ compensation and property casualty)
coverage at a total premium – $2,400.
The cost for payment of rent for 12 months at $1.76 per square feet in the
total amount of $105,600.
Other start-up expenses including stationery ($500) and phone and utility
deposits ($2,500).
Operational cost for the rst 3 months (salaries of employees, payments of
bills et al) – $100,000
The cost for Start-up inventory (assorted herbs, additives and packaging
materials et al) – $80,000
Storage hardware (bins, rack, shelves, food case) – $3,720
The cost for counter area equipment (counter top, sink, ice machine, etc.) –
$9,500
The cost for herbs, blending and packaging equipment – $20,000
The cost for store equipment (cash register, security, ventilation, signage) –
$13,750
The cost for the purchase of furniture and gadgets (Computers, Printers,
Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
The cost of launching a website – $600
The cost for our opening party – $5,000
Miscellaneous – $5,000
Generate part of the startup capital from personal savings and sell of
stocks
Source for soft loans from family members and friends
Apply for loan from the bank
We know that if that is put in place, we will be able to successfully hire and
retain the best hands we can get in the industry; they will be more
committed to help us build the business of our dreams.
Check List/Milestone
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