5 Advises For A Young Entrepreneur In The Health Food Industry
Holding a Diploma in Export Import Management from Welingkar Institute of Management, Rishabh is a visionary and a health enthusiast who incepted Naturevibe two years ago, and is also currently the Managing Director of Euroasias Organics.India’s rising population and an increase in the rate of chronic diseases are leading to the expansion of the health food industry in India at a faster pace. With the evolution of time, people are getting more aware of their wellbeing. They are now choosing to pay for healthy foods than paying their hospital bills. The industry has gained popularity in the last decade because of its effective and impressive results. A FICCI-PWC report, ‘The changing landscape of the retail foodservice industry’ identifies ‘health and wellness’ as one of the factors driving the Indian food services industry, which totalled Rs. 3,37,500 crore in 2017. The food services business is expected to grow to Rs. 5,52,000 crore by 2022.
Undoubtedly, many startups are cashing in this fitness trend. Many young entrepreneurs are jumping in the health food business, however, there are a few things one must keep in mind before starting their venture in this industry.
Thorough Knowledge of the Industry: Health food industry is mostly known to be synonymous to only organic foods but it is important to know that this industry constitutes of natural foods, whole foods, superfoods and dietary supplements.
Organic foods are produced by the standard of organic farming while whole foods are plant foods, which are consumed with minimal refining and processing. Superfoods are highly rich in nutrients; they can be plant-based, dairy-based or meat. All three of them make a super healthy package. It has numerous benefits as it cures heart diseases and other health problems. Dietary supplements are substances that add nutrients and reduce the risk of other health problems like osteoporosis or arthritis. They are usually in the form of pills, capsules, powders, gel tabs, extracts, or liquids.
It is a vast industry that involves incredible facts and figures.
Before entering the industry, one must gain thorough knowledge of each kind of health food. The production process, the manufacturing and the supply knowledge play a vital role when it comes to the setting up your own ventures. One must identify the target groups for each kind of product.
Analyze your Finance & Manage the Risks Effectively: To setup any business venture, it is imperative to analyze the finance under the pre-planning stage. Drafting an efficient and effective plan is important to calculate the risk involved and the contingency plan for mitigating those risks. Financial planning is of utmost importance as it decides the strength and scale of the business. Deciding the scale is an important step, as it requires developed strategies and evaluation of the existing competitors. This stage may also require roping in an investor, depending on the scale of the business.
Secure Validation: Today, when everyone claims to sell natural foods, it is important to secure the necessary certifications. This will not only ensure the quality of the product but will also vouch for the safety and precautions taken at the time of manufacturing the products. For example, it is necessary to be certified by the ‘Indian organic’ body, which certifies organic products, farmed in India. There are other organic certification bodies like USD, FCCI, and many others.
Ace Marketing Strategies: Marketing is a function of a business where you market the product to reach the right target audience. Marketing encapsulates strategizing ways and platforms to reach to the end consumer. It is important to identify such platforms at the beginning of a marketing campaign else business resources such as time and money might go to waste. Campaigns should be attractive and creative so that they can stand with the big and established brands. Selling and growth of the company depend on the marketing strategy. Weak marketing strategies might lead the company in danger.
Packaging: Another important factor involved in developing a successful product is the packaging. If someone is manufacturing organic and natural products but using non-sustainable materials in packaging, then the messaging will go wrong. The packaging has to complement the nature of the product. It should contain all the required information of the product, company’s name, logo, manufacture date and feedback contact.
To conclude, the growth of the health food industry is witnessing a positive trajectory. This is the right time to enter the market with natural and innovative solutions for modern health problems. Building a new business esp. in the already booming food industry can be tough, but do not be discouraged. Do not shy away from seeking the help of others who are more experienced in this field and learn from their mistakes. It all starts with a dream, and success will follow. By its very nature, growing a new business is a gradual process; however, with inspiration plus perspiration, you can realize the fulfilment of big dreams.
Before entering the industry, one must gain thorough knowledge of each kind of health food. The production process, the manufacturing and the supply knowledge play a vital role when it comes to the setting up your own ventures. One must identify the target groups for each kind of product.
Analyze your Finance & Manage the Risks Effectively: To setup any business venture, it is imperative to analyze the finance under the pre-planning stage. Drafting an efficient and effective plan is important to calculate the risk involved and the contingency plan for mitigating those risks. Financial planning is of utmost importance as it decides the strength and scale of the business. Deciding the scale is an important step, as it requires developed strategies and evaluation of the existing competitors. This stage may also require roping in an investor, depending on the scale of the business.
Secure Validation: Today, when everyone claims to sell natural foods, it is important to secure the necessary certifications. This will not only ensure the quality of the product but will also vouch for the safety and precautions taken at the time of manufacturing the products. For example, it is necessary to be certified by the ‘Indian organic’ body, which certifies organic products, farmed in India. There are other organic certification bodies like USD, FCCI, and many others.
Drafting an efficient and effective plan is important to calculate the risk involved and the contingency plan for mitigating those risks
Ace Marketing Strategies: Marketing is a function of a business where you market the product to reach the right target audience. Marketing encapsulates strategizing ways and platforms to reach to the end consumer. It is important to identify such platforms at the beginning of a marketing campaign else business resources such as time and money might go to waste. Campaigns should be attractive and creative so that they can stand with the big and established brands. Selling and growth of the company depend on the marketing strategy. Weak marketing strategies might lead the company in danger.
Packaging: Another important factor involved in developing a successful product is the packaging. If someone is manufacturing organic and natural products but using non-sustainable materials in packaging, then the messaging will go wrong. The packaging has to complement the nature of the product. It should contain all the required information of the product, company’s name, logo, manufacture date and feedback contact.
To conclude, the growth of the health food industry is witnessing a positive trajectory. This is the right time to enter the market with natural and innovative solutions for modern health problems. Building a new business esp. in the already booming food industry can be tough, but do not be discouraged. Do not shy away from seeking the help of others who are more experienced in this field and learn from their mistakes. It all starts with a dream, and success will follow. By its very nature, growing a new business is a gradual process; however, with inspiration plus perspiration, you can realize the fulfilment of big dreams.
