How much Investment is required starting Ayurvedic Marketing Company?

Ayurvedic marketing company is one of the most profitable businesses in current time. Increasing demand of ayurvedic and herbal products is creating new opportunities for existing Ayurvedic Companies as well as for new ayurvedic marketing set-ups.

Check out: How to start Ayurvedic Marketing Company?

In this article, we will cover investment required to start ayurvedic marketing company. Investment required for starting ayurvedic marketing company depend at many factors like number of products want to launch, cost of these products, minimum batch size etc. Investment required in marketing company is less as compare to manufacturing company because marketing company required less infrastructure and capital required.

There are three types of investments required to start Ayurvedic Marketing Company.

• Fixed Capital Investment
• Working Capital Investment
• Investment for Inventory

Fixed Capital Investment:

Fixed capital investment is investment required for fixed assets like office, furniture’s, office material etc. As we have discussed above investment is less in marketing company as compare to manufacturing company. No minimum space requires, no special licenses or registrations. You can start marketing company with only registering company and/or taking GST number.

If you have own land and building then fixed capital will be different than if you will start it in rented premises. If you want to purchase a land or building, land cost will vary depend at location and area of that particular land. If you have limited finance then you should start with rented premises.

Fixed Assets includes:

• Office Building
• Office furniture and accessories
• Computer and other office requirements
• Licenses and documentation expenses
• Other requirements if any

Adding all these investments will produce fixed capital investment.


Working Capital investment:

Working Capital investment is required for liquid assets like salary, wages, paying bills, loan instalments, advertisement & promotion expenses etc. Working capital investment is required till a company/firm start to generate enough profit that is adequate for paying for all liquid assets.

Working capital investment depends at many factors like:

• Rent of office
• Loan amount if any
• Minimum wages given at that area to workers
• Number of workers and staff
• Salary of technical and educated staff
• Marketing Budget
• Cost of electricity, water and other services
• Other miscellaneous factors

If you start at small level with one or two staff/workers then working capital will be less as compare to when you start at large scale. Area in which you are starting and if rent and other services is less then working capital will also be less in that case.

Liquid Assets includes:

• Skilled and Technical Staff/Employee Salary
• Non Skilled worker’s wages
• Office rent if any
• Maintenance expenses
• Bank loan EMI if any
• Marketing Budget
• Monthly Bills
• Other expenses if any

Working capital will vary every month/day/week. Some time it will be higher and some time it will be lesser depend at working conditions, environment, climate etc.
Estimation of all expenses requires running an organisation will be helpful in calculating working capital.


Investment for Inventory:

Inventory investment plays an important role in marketing company. Most of inventory for marketing company is Stock. Investment at inventory helps to prevent shortage of goods in market and helps in providing better services.

Read Related: How to maintain stock register?

Inventory management is broad subject and can’t explain deeply in this article. You can study in detail about inventory management by clicking here

Inventory investment depends at factors like:

• Number of products you want to market
• Minimum quantity that could be manufactured at third party manufacturing basis/Contract manufacturing basis
• Cost of each product
• Promotional and marketing material inventory
• Other miscellaneous factors

After considering all above facts, you can calculate your inventory required for starting ayurvedic marketing company.