People always want to be fitter and healthier, and that’s made the demand for supplements huge! Supplements (or nutraceuticals, as they are more formally known) are big business, but what does it take to start your own supplement company? We’ll go through the steps, from business basics to industry insights to show you how to create your own supplement business. You may be surprised to see that it’s not as complicated as you think!
Start with These Business Basics
Let’s begin with some fundamental steps that an entrepreneur would need to take to start any business. First and foremost, you will need to secure financing from a traditional bank loan or an alternative lender. Assuming you can get the capital, you need to launch your startup, you’ll need to determine how your business will be structured (incorporated, LLC, etc.) Decide on a name and register your business with your state, and get a tax identification number. Then move on to physical locations and projects like setting up a business phone line and buying a domain name.
Figure Out Which Supplements You Want to Sell
There are countless supplements you could sell, but you would be making a mistake to start your own supplement company and attempt to sell all of them. It’s far better to specialize in one area, whether it’s weight loss, brain and focus support, help with joints and bones, prenatal…. the list is endless. Make a clear plan of what you want to sell, and identify supplements that you don’t want to deal with.
Begin Market Research
Whether you’re planning on having a traditional brick and mortar store or work online, you need to have a clear understanding of the marketplace you will be targeting when you create your own supplement business. Do your homework and analyze the performance of potential competitors. Make sure there’s a sustainable market for the supplements you want to sell, and adjust your business plan if the research doesn’t support what you plan to do.
Find a Supplement Manufacturer
To start your own supplement company, perhaps the single most important decision you will make is finding your supplement manufacturer. You need a company that has a good reputation and a proven track record of success and dependability. It’s important to understand their physical set up, warehousing system, and ability to handle large orders. You must also be certain that they source quality raw materials for the supplements they produce. Be certain they are NSF and FDA certified and that they can blend, tablet, encapsulate, coat, and package your products.
Like any small business, it takes determination, perseverance and knowledge to successfully start your own supplement company. Make sure you have all your startup business plans and paperwork properly filed. Understand your market and potential customers and competitors to build a great business plan. Partner with a reputable supplement manufacturer who can handle the volume of orders that you will need fully and efficiently. Once all these steps are in place, advertise and announce to the world that you’re in the supplement business and ready to sell!