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How Much Does it Cost to Start a Supplement Company?


Starting your own supplement company can be a very profitable venture, but it does come with some costs. This article will outline the main expenses you can expect to encounter when starting your own supplement business.


Costs to Start a Supplement Business Overview

The average cost to start a supplement business ranges between $5,000 and $10,000. These costs increase if you plan to manufacture your products or hire a contract manufacturer.

The main costs associated with starting a supplement company include:

  • Business registration
  • Business insurance premiums
  • Establishing an inventory
  • Opening an office or workspace
  • Hiring consultants and other professional advisors
  • Marketing and advertising expenses
  • Managing ongoing costs

Let’s take a look at each in some detail.

Business Registration

The first step in starting your supplement company is registering your business with the state where you will be operating. This is typically a relatively straightforward process but requires a small fee. You also must obtain the proper permits, licensing, and certifications such as a Certificate of Analysis from the FDA, Good Manufacturing Practices registration, and cGMP certification.

The average costs for these are:

  • Business registration fee: $50-$500
  • FDA Certificate of Analysis: $250-$1,000
  • Good Manufacturing Practices registration: $3,000-$5,000
  • cGMP certification: $5,000-$10,000

Business Insurance Premiums

As with any business, it is essential to carry adequate liability insurance to protect yourself from potential lawsuits. The cost of this insurance will vary depending on the size and scope of your business. Typical supplement companies need at least $1 million in coverage.

The average business liability insurance cost is $500-$2,000 annually.

Establishing an Inventory

If you plan to sell products directly to consumers, you will need to establish an inventory of products. The inventory cost will depend on the type of products you plan to sell and how many you will need to keep in stock. It can range from a few hundred dollars to several thousand.

The average cost of inventory is $500-$5,000.

Opening an Office or Workspace

If you plan to sell products online, you may be able to operate your business from home. However, if you plan to sell products in retail stores or have a brick-and-mortar location, you will need to lease or purchase office or retail space. The cost of this space will depend on the size and location of the property.

The average cost of office or retail space is $1,000-$5,000 monthly.

Hiring Consultants and Other Professional Advisors

As you get your business off the ground, you may need to hire consultants or other professional advisors to help with specific tasks or projects. These can include accountants, attorneys, graphic designers, and web developers. You’ll also need professionals to guide you during the FDA approval process. The cost of these services varies based on the type of consultant you hire, and the scope of work.

The average cost of hiring a consultant is $100-$200 per hour.

Marketing and Advertising Expenses

To generate interest in your products, you’ll need to invest in marketing and advertising to generate interest in your products. This can include online ads, social media campaigns, PR, and event sponsorships. The cost of these activities will vary depending on the type of marketing you do and how much you spend.

The average cost of marketing and advertising is $500-$5,000 per month.


Managing Ongoing Costs

In addition to the initial startup costs, there are also ongoing costs associated with running a supplement company. These can include warehousing and shipping costs, employee salaries, and inventory expenses. The cost of these items will vary depending on the size and scope of your business.

The average cost of ongoing expenses is $5,000-$10,000 per month.



Starting a supplement company can be a relatively inexpensive endeavor, but there are still some significant costs to consider. These include business registration fees, insurance premiums, inventory costs, office or retail space expenses, and marketing and advertising expenditures. With careful planning and budgeting, you can get your supplement company off the ground without breaking the bank.