Globally, spice shops bring in billions of dollars annually. Starting the herbs and spices business is not as difficult as it may seem. Using vertical farming technology, you can start a spices and herbs garden in your backyard.
When your spices and herbs mature, you can process them easily and package them for sale locally or online.
Starting a spices business requires a great deal of effort, dedication, and most importantly passion.
If you're interested in how to sell spices, or selling spices online, you can use this page as a guide for everything you'll need to know.
Want to learn more? You can check out our full guide on how to start a spices business ➜
|Min Startup Costs||Max Startup Costs|
|Office Space Expenses||$0||$7,000|
|Employee & Freelancer Expenses||$151||$352|
|Business Formation Fees||$5,600||$20,400|
|Equipment & Supply Expenses||$66||$700|
|Retail Business Expenses||$1,250||$11,650|
|Food Business Expenses||$2,125||$36,000|
|Advertising & Marketing Costs||$75||$5,286|
|Total Startup Costs||$10,002||$106,447|
|Monterey Bay Spice Company||herbco.com||#118,042|
|My Spice Sage||myspicesage.com||#388,124|
|The Spice Lab||spices.com||#446,262|
|Shop Quality Wholesale Spices You Can Trust||olamspices.com||#518,712|
|A Spice Above||aspiceabove.com||#726,172|
|Curio Spice Co.||curiospice.com||#842,419|
Pros & Cons
|Flexibility||You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.|
|Scalable||With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.|
|Meaningful business connections||You never know who you will meet as a spices business. This could be the start of an incredible business opportunity!|
|High customer retention rates||Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.|
|Gain exposure and experience||This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!|
|Unlimited income potential||With starting a spices business there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.|
|Low margins||The gross margins for your spices business are typically around 40%, which can make it more challenging to incur new expenses and maintain profitability.|
|High employee turnover||In the spices business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.|
|Taxes||As a spices business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.|
|You may need to charge sales tax||If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out [this article](https://www.thebalancesmb.com/do-i-need-to-collect-sales-taxes-in-my-state-398913)|
|Time commitment||With starting a spices business, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business.|
|Difficult to build trust with your customer||With starting a spices business, there can be minimal face-to-face interaction, which means it can be a lot more difficult to establish trust with your customers. You'll need to go the extra mile with your customer to grab their attention and business.|
Word of mouth
Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.
Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.
According to Nielsen, 92% of people trust recommendations from friends and family.
Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.
Social Media Advertising
Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.
According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.
Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.
Pay Per Click Advertising
Pay-per-click (PPC) is a performance-based marketing method that allows you to show specific ads for services or products oriented to a very defined target, with the goal that the user visits your website or landing page.
Hey! 👋 I'm Pat Walls, the founder of Starter Story.
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