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How To Start A Herbal Medicine Business | Plan | Procedure | Fee | Eligibility


Get help from an experienced legal adviser. Schedule your consultation at a time that works for you and it's absolutely FREE.

How To Start A Herbal Medicine Business

Starting herbal business might seem easy enough at first – after all, one could even grow many of his own ingredients or start out small as a hobby business.

There are many important considerations for keeping his labeling and marketing efforts on the right side of those laws and regulations. One also needs to find reliable, sustainable vendors for his ingredients, and carefully consider his formulation strategies to make sure he has a unique product that will stand out.

License Needed To Sell Herbal Medicine

This depends on location. In many states for example there are no specific herbal licenses needed to work on a sales floor in a shop, but one would need to open a supplement store or run a business to provide certain alternative healing therapies. Most of the people that run supplement stores usually have marketing degrees or certificates in other health-related areas or have studied nutrition things of that nature.

As requirement of license vary from state to state so one should go to his local small business association and inquire. They will be able to tell him what license one needs and permits the type of business he wants to run would need.

Before Starting a Herbal Product Business , Consider These Following Things

If one is thinking of starting a herbal business, consider these following things.

Market Research

A herbal business is just similar to any other business. Before starting any other business, the first and foremost thing to do is to conduct a market research. One is required to know about the target audience, the challenges and trends in this sector. Knowing one’s market will increase the success rate of your herbal business.

Know Your Herbs

Before venturing into a herbal business, one should have the basic knowledge of herbal remedies and applications. One needs to know about each herb that one is using. Ensure that one’s products are both safe and effective. One also needs to understand the contradictions and possible interactions of the herbs that one will be using.

Licensing & Registration

Contact one’s city and state revenue departments and get the licenses necessary to run a herbal business. Follow FDA labeling requirements for one’s herbal business. FDA labeling is required to designate them as food supplements rather than medicines. Research about the herbs which the FDA considers unsafe, such as ephedra, and do not sell them.


Set up a space for your herbal business. If one will be growing herbs, lease or buy a plot of land, as well as fertilizer and seeds. If one will be retailing herbs, lease a storefront in a part of town frequented by your target market, such as an affluent area with yoga studios and natural food stores. Outfit your retail location with shelves for inventory, books and accessories such as mortar and pestle sets.


There are various marketing strategies you can use in promoting your business. Market your herbal business with the help of advertising in venues that appeal to your target market. Connect with naturopaths and other holistic health practitioners who recommend herbal products to their clients. Also, create a creative and informative website describing your products and services.

Costs Involved In Opening A Medicinal Herbs Business

To start this type of business, the easiest and cheapest way is to purchase medicinal herbs through a wholesale distributor and then resell these herbs online. This kind of setup would require getting the proper licenses, a website, bulk herbs, and packaging material. Someone could start this type of business for less than $300 if he or she already owns a computer. Someone can easily rent a booth at a farmers market or fair and sell directly to customers for only a little more money.

 In order to sell medicinal herbs, opening a permanent store requires a person to have access to much more capital. The biggest expense is rent, which can be thousands of dollars a month. In addition, if someone wants to go this route, they will need to invest in inventory, store fittings, utilities, insurance, and everything else which comes with running a retail location. Potential medicinal herb business owners that are interested in operating a retail location want to consider one of the medicinal herb retail franchises which are available.

Land is the largest expense for those who decide to grow their own medicinal herbs. Land costs vary depending on the location and the quality of the land. Potential business owners who do not currently own land may wish to rent land at first to save money. Besides the cost of the land, costs include seeds, tools, water, and labor. Greenhouses and polytunnels can cost hundreds or thousands of dollars, but can extend your growing season. In order to label herbs as "organic", growers have to apply for at least one certifying organization in the US for an organic certification. The certification process can cost up to $1500. Transporting products to market is an additional expense.


Get help from an experienced legal adviser. Schedule your consultation at a time that works for you and it's absolutely FREE.

Vipan Singh
Vipan is known for his passion for diversity and his work with corpseed. In his spare time, he is involved with numerous charitable activities and considers his greatest achievement to be the fact that he helps Startups and Entrepreneurs to scale up