Are you about starting a herbal medicine company? If YES, here is a complete sample herbal medicine products business plan template & feasibility report you can use for FREE. Okay, so we have considered all the requirements for starting a herbal medicine business. We also took it further by analyzing and drafting a sample herbal medicine products marketing plan template backed up by actionable guerrilla marketing ideas for herbal medicine companies. So let’s proceed to the business planning section.

Why Start a Herbal Medicine Business?

If you are interested in leveraging on the existing love for herbal products, then you should consider starting an herbal medicine production company. The fact that people are interested in taking less chemical or non-chemical medications made from plants makes this type of business a viable and profitable one.

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 affects 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. You also need to write a good 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 profits, 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.

A Sample Herbal Medicine Products Business Plan Template

1. Industry Overview

Companies in the herbal medicine industry are known to blend and package plant infusions made from leaf, root, fruit or flower that comes from a plant other than the tea plant. They also produce herbal and nutritional supplements. Please note that this industry does not include iced and ready-to-drink herbal teas.

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 five 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.

Nonetheless, rising awareness surrounding the health benefits of herbal tea and the improving economy have bolstered demand for the industry in the latter half of the period.

Consistent demand from the aging population is partly attributable to intense marketing on the part of industry operators in an effort to boost awareness about the health benefits of herbal teas. The industry is expected to grow over the next five years. Continuing health trends and the aging population will boost domestic demand.

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.

A recent reports published by IBISWorld shows that the Herbal Medicine and Tea Production industry has a medium to high level of market share concentration. In 2017, the top four companies in the industry are expected to generate 70.7 percent of the industry’s revenue. Furthermore, the top two companies in the industry, Unilever Group and Hain Celestial Group Inc., account for 50.8 percent of the industry’s revenue.

Market share concentration has declined slightly over the past five 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.

Because of our corporate business goal of becoming one of the top 3 herbal medicine production companies in the united states of America, we are willing to invest in some of the finest professionals we can find and also we have set plans in place to acquire the best of equipment when it comes to setting up a standard herbal company.

Our facility will be customized to fit into the kind of ideas we have of how a first class herbal company should look like and we have been able to secure permits from all relevant departments in Pennsylvania.

Nature© Herbal Medicine Production, Inc. is set to redefine how herbal medicine and tea production business should be run, not just in Altoona – Pennsylvania, but also in the whole of the United States of America. This is why we have put plans in place for continuous training of all our staff and also liaising with stake holder in the industry to contribute our quotas in the way equipment should be designed to meet the ever changing demands of the industry.

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 firm, 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.

Nature© Herbal Medicine Production, Inc. is a family business that is owned and managed by Alison Wester and his immediate family member. Alison Wester is going to be the Chief Executive Officer of the business, he has a first Degree in Pharmacy and an MBA from Harvard Business School. He has over 12 years’ experience working as a pharmacist and medical researcher in one of the leading pharmaceutical production companies in the United States of America.

3. Our Products and Services

At Nature© Herbal Medicine Production, Inc. we will engage in the following activities in order to maximize profits for the business;

  • 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

4. Our Mission and Vision Statement

  • To be amongst the top 3 leading herbal medicine and tea production companies in the United States of America before our 10th anniversary.
  • To build an herbal medicine and tea production company whose products will cure the sicknesses it is been used for and to ensure that our brand becomes a household name all across the United States of America.

Our Business Structure

As part of our plan to build a top flight 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 qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all our stake holders. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff 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.;

  • Chief Executive Officer (Owner)
  • Plant Manager
  • Human Resources and Admin Manager
  • Merchandize Manager
  • Sales and Marketing Manager
  • Accountants / Cashiers
  • Cleaners

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (Owner):

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, appraising job results and developing incentives
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization

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 flavors of herbal medicine and tea that are to be produced
  • Maps out strategies that will lead to efficiency amongst workers in the plant
  • Responsible for training, evaluation and assessment of plant workers
  • Ensures that the steady flow of both raw materials to the plant and easy flow of finished 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.

Human Resources and Admin Manager

  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Defining job positions for recruitment and managing interviewing process
  • Carrying out induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Oversee the smooth running of the daily office and factory activities.

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

Sales and Marketing Manager

  • Manages external research and coordinates all the internal sources of information to retain the organizations’ best customers and attract new ones
  • Identify, prioritize, and reach out to new partners, and business opportunities et al
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Develops, executes and evaluates new plans for expanding sales
  • Documents all customer contact and information
  • Represents the company in strategic meetings
  • Helps increase sales and growth for the company


  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides management with financial analyses, development budgets, and accounting reports
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the organization
  • Serves as internal auditor for the organization

Client Service Executive

  • 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 effective 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

Production Workers/Machine Operators:

  • Responsible for blending and packaging herbal medicine and teas
  • Handles labeling of bottled herbal products
  • Responsible for mixing, pressing and encapsulating raw herbs ingredients into pill or tablet form.
  • Operates herbal medicine and tea production machines
  • Assists in packaging and loading bottled herbal medicine and teas into distribution trucks
  • Any other duty as assigned by the plant manager.

Distribution Truck Drivers

  • Assists in loading and unloading bottled herbal medicine and teas
  • Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
  • Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment
  • Local-delivery drivers may be required to sell products to stores on their route, obtain signatures from recipients and collect cash.
  • Transport finished goods and raw materials over land to and from manufacturing plants or retail and distribution centers
  • Inspects vehicles for mechanical items and safety issues and perform preventative maintenance
  • Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
  • Reports defects, accidents or violations

6. SWOT Analysis

We want to build a topflight herbal medicine and tea production company hence, we were able to engage some of the finest 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:

When it comes to strength as a company, we have a wide range of herbal medicines and teas for different ailments that can meet the needs of a wide range of consumers. We have state of the art facility and equipment that has positioned us to meet the demand of products even if the demand tripled over night.

Another factor that counts to our advantage is the background of our Chief Executive Office; he has a robust experience in the industry and also a pretty good academic qualification to match the experience acquired which has placed him amongst the top professionals in the United States of America.

  • 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:

Mainstream retailers are progressively stocking herbal teas as consumer demand heightens. Aggressive media promotion has supported belief in the health benefits of herbal medicine and tea consumption, and the aging population and rising per capita tea consumption will contribute to growth.

Hence the opportunities available to us are unlimited. Loads of people consume herbal medicine and herbal tea on a daily basis and all what we are going to do to push our products to them is already perfected.

  • 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 especially as it relates to the importation of herbal medicine and teas into the United States of America.


  • Market Trends

If you are conversant on happenings as it relates to medications, you will agree that in recent time, loads of people are beginning to switch from conventional medicine to herbal medicine because of the health benefits. As a matter of fact, the sale of herbal medicines and teas has increased tremendously.

The industry has grown steadily over the last five 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.

8. Our Target Market

When it comes to the sale of herbal medicine and tea, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who love non-conventional medicine and those who would want to try them out. We are in business to produce herbal medicine and tea for the following groups of people;

  • Households
  • Corporate Executives
  • Sports Men and Women
  • Everyone who resides in our target locations.

Our competitive advantage

Part of what is going to count as competitive advantage for Nature© Herbal Medicine Production, Inc. are supply contracts, ability to alter goods and services produced in favor of market conditions and of course economies of scale. We are not ignoring the vast experience of our management team, we have people on board who are highly experienced in the business.

So also the varieties of herbal medicine and tea flavors that we produce, our large distribution network and of course our excellent customer service culture will definitely 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.


  • Sources of Income

Nature© Herbal Medicine Production, Inc. is established with the aim of maximizing profits in the industry and we are going to go all the way to ensure that we do all it takes to sell our products to a wide range of customers. That is where we intend generating income for the business.

10. Sales Forecast

We are well positioned to take on the available market in Altoona – Pennsylvania and every city where our herbal medicine and tea will be sold and we are quite optimistic that we will meet our set target of generating enough profits from our first six months of operation and grow the business and our clientele base.

We have been able to examine the herbal medicine and tea production industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below is the sales projection for Nature© Herbal Medicine Production, Inc., it is based on the location of our business and other factors as it relates to medium scale herbal medicine startups in the United States;

  • First Fiscal Year: $250,000
  • Second Fiscal Year: $450,000
  • Third Fiscal Year: $750,000

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 offering 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.

  • Marketing Strategy and Sales Strategy

Prior to choosing a location for Nature© Herbal Medicine Production, Inc. we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available market in the cities where we intend positioning our business.

We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time and also for our products to favorable compete with other leading herbal medicine and tea brands.

We hired experts who have good understanding of the industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Altoona – Pennsylvania and throughout the United States of America.

In summary, Nature© Herbal Medicine Production, Inc. will adopt the following sales and marketing approach to sell our products;

  • Introduce our herbal medicine and tea brand by sending introductory letters to residents, merchants and other stakeholders both in Altoona – Pennsylvania.
  • Open our business with a party so as to capture the attention of residents who are our first targets
  • Engage in roadshows in targeted communities from time to time to sell and promote our products
  • Advertise our products in community based newspapers, local TV and radio stations
  • List our business and products on yellow pages’ ads (local directories)
  • Leverage on the internet to promote our herbal medicine and tea brands
  • Engage in direct marketing and sales
  • Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Despite the fact that our company is a standard one with a wide range of herbal medicine and tea that can favorably compete with other leading brands in the United States, we will still go ahead to intensify publicity for all our products and brand.

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.

Here are the platforms we intend leveraging on to promote and advertise Nature© Herbal Medicine Production, Inc.;

  • Place adverts on both print (community based newspapers and health magazines) and electronic media platforms
  • Sponsor relevant community programs
  • Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, et al to promote our brand
  • Install our billboards in strategic locations all around major cities in the United States of America
  • Engage in roadshows from time to time in targeted communities
  • Distribute our fliers and handbills in target areas
  • Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing our products.
  • Ensure that all our staff members wear our customized clothes, and all our official cars and distribution vans are customized.

12. Our Pricing Strategy

The prize for cup or bottle or packet of herbal medicine and tea and similar products depends on the content. In view of that, our prices will conform to what is obtainable in the industry but will ensure that within the first 6 to 12 months our products are sold a little bit below the average price of various herbal medicine and tea brands in the United States of America.

We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our brand.

  • Payment Options

The payment policy adopted by Nature© Herbal Medicine Production, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Nature© Herbal Medicine Production, Inc. will make available to her clients;

  • Payment via bank transfer
  • Payment with cash
  • Payment via credit cards / Point of Sale Machines (POS Machines)
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer
  • Payment via bank draft

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.

13. Startup Expenditure (Budget)

Starting a standard herbal medicine and tea production company is indeed capital intensive because the amount required to set up the production plant is enormous. The bulk of the startup capital will be spent on leasing or acquiring a facility and also in purchasing herbs especially from other parts of the world.

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 flyer printing (2,000 flyers 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 first 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

We would need an estimate of $300,000 to successfully set up our herbal medicine and tea production business in Altoona – Pennsylvania.

Generating Startup Capital for Nature© Herbal Medicine Production, Inc.

Nature© Herbal Medicine Production, Inc. is a family business that is owned and financed by Alison Wester and his immediate family members. They do not intend to welcome any external business partners which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

  • 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

N.B: We have been able to generate about $100,000 (Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Nature© Herbal Medicine Production, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to retail our wide range of herbal medicines and tea a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.

Nature© Herbal Medicine Production, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

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

  • Business Name Availability Check: Completed
  • Business Registration: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Securing Point of Sales (POS) Machines: Completed
  • Opening Mobile Money Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Leasing of facility and construction of standard production plant: In Progress
  • Conducting Feasibility Studies: Completed
  • Generating capital from family members: Completed
  • Applications for Loan from the bank: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Printing of Packaging, Marketing/Promotional Materials: In Progress
  • Recruitment of employees: In Progress
  • Purchase of the needed herbal medicine and tea blending and packaging machines: Completed
  • Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business both online and around the community: In Progress
  • Health and Safety and Fire Safety Arrangement (License): Secured
  • Opening party planning: In Progress
  • Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress
  • Purchase of delivery vans: Completed