Starting a supplement company can be lucrative, but it’s important to know what you’re getting into before you make the leap. This article will walk you through the steps necessary to start a successful supplement company. So whether you’re looking to create a line of supplements or just want to become a distributor for an existing brand, read on.
Here are ten steps you can take to get started on building your very own supplement business.
Ten Steps to Launching a New Supplement Business
1. Choose Your Type of Supplement Business
The first step in launching a supplement business is to identify the type of supplement business you want to launch. You might choose from the following types, among others:
Vitamins and Minerals: These include popular supplements like vitamins C and D, as well as minerals like calcium and magnesium.
Herbal Supplements: Herbal supplements are made from plants and used for their healing properties. Common herbs used in supplements include echinacea, ginseng, and garlic.
Protein Supplements: Protein supplements are popular among athletes and bodybuilders as they help to build muscle mass. Common protein supplements include whey protein and casein protein.
2. Name Your Supplement Business
Give your supplement business an identity so people will consider it a well-known and respected brand. You can take the name of your supplement business from your industry, focus on a geographical location, or use your name among other options.
The main goal of naming your supplement business is to make it sound appealing and trustworthy so people will want to buy from you.
3. Determine Your Supplement Business Model
There are several possible types of business models for a supplement business, including:
- Contract manufacturer: You can produce supplements for other companies to brand and sell. You’ll need to develop relationships with raw material suppliers and invest in the necessary manufacturing equipment.
- Online retailer: You can sell supplements online through your ecommerce store or third-party marketplaces like Amazon. You’ll need to find reliable suppliers and invest in marketing your store.
- Brick-and-mortar retailer: You can sell supplements through brick-and-mortar stores. You’ll need to find retail space, develop relationships with supplement distributors, and stock your shelves with products.
No matter which model you choose, ensure that it aligns with your business goals and the products you offer.
4. Choose a Legal Form for Your Business
By incorporating your supplement business, you will limit your liability. You can incorporate as a Limited Liability Company (LLC), a C Corporation (C-Corp), or an S Corporation (S-Corp). Or you can operate as a sole proprietorship.
The business structure you choose for your supplement business will determine the taxes you pay and which state or federal tax forms you need to file.
Read our article comparing the most common supplement business structures.
5. Write a Supplement Business Plan
All supplement business owners should develop a business plan.
A business plan is a document that outlines the goals, strategies, and operations of a business. It can be used to secure funding from investors or lenders, as well as to guide the day-to-day operations of the business. The business plan should include the company’s products or services, market analysis, financial projections, and management team.
When developing your supplement business plan and strategy, you should think about the following questions your customers might have:
- What types of supplements do you offer?
- Where do you get your supplements from?
- How are your supplements made?
- Who is your target market?
- How do you plan to market and sell your supplements?
- What are your long-term goals for the business?
- What are the risks and challenges associated with your business?
- How much money do you need to get started?
- When will you be profitable?
Answering these questions will help you develop a clear and concise business plan.
Read our article about how to write a supplement business plan.
6. Apply for the Necessary Permits and Licenses
You may need to obtain required licenses and permits before launching your supplement business.
For example, in the United States, businesses that manufacture supplements must register with the FDA. If you sell supplements online, you’ll need to get a business license from your state’s Department of Taxation and Finance.
You must also register your supplement business as a legal entity with the state where you plan to do business. You can simply file an online form through your Secretary of State website.
Registering with the federal government is also essential so you can properly pay taxes for your business. You will also need an Employer Identification Number (EIN), which you can apply for at the IRS website if you plan to hire employees.
Read our article about obtaining the proper supplement business licenses.
7. Determine Your Budget & Apply for Funding as Needed
In developing your supplement business plan, you will figure out how much funding you need to start and grow your business.
If you have funds to invest in your supplement business, you may consider taking advantage of that. In addition to your funds, other forms of potential funding for your supplement business include traditional bank loans, SBA loans, credit cards, angel investors, and family and friends.
Read our article about the costs associated with starting a supplement business to help you determine if funding is needed.
8. Get the Technology & Software Needed to Run Your Business Efficiently
When you start your supplement business, it’s essential to have the right technology in place to maximize efficiency. You need a computer with Internet access and accounting software for tracking expenses and revenues.
You may also want to invest in software specifically designed for the supplement industry. Supplement company software can help with product formulation, manufacturing, quality control, inventory management, and eCommerce.
Read our article about the technology and software you need to run a supplement business.
9. Market Your Supplement Business to Potential Customers
Before selling your products, you must let the world know you exist. The first step is to create a website so people can learn more about your products and how they benefit them.
After you launch your website, start promoting it through social media channels like Facebook, Instagram, and TikTok. Also, consider networking with other people in the supplement industry through social media and blogs so they can help share your business.
You also need to start gathering the materials needed to execute your promotions strategy, which is your strategy for attracting new customers. Supplement businesses should consider the following promotional strategies.
- Sponsoring events or donating to charity organizations
- Offering free samples to potential customers
- Hosting webinars or providing informative blog content
- Developing an affiliate marketing program
- Creating compelling product packaging
- Creating a strong social media presence
- Investing in search engine optimization (SEO) for your website
- Conducting market research to understand your target audience
- Creating marketing collateral like sales sheets and product catalogs
- Working with influencers and thought leaders in your industry
Read our article about how to market your supplement business for more tips.
10. Get New Customers & Grow Your Business
When you promote your products, you’ll start to get interest from potential customers.
Make sure you’re ready to serve these customers. Also, be sure to establish systems to ensure consistency and reduce costs. And be sure to find and train the right people to help you grow your supplement business.
Read our article about how to effectively grow your supplement business to learn more.
Starting a Supplement Business FAQs
Why Start a Supplement Business?
The supplement industry is growing quickly. The global supplements market is expected to reach $278 billion by 2024!
There are many reasons why you should start a supplement business. Some of the benefits include:
- The supplement industry is growing quickly and offers entrepreneurs many opportunities.
- You can be your own boss and control your business.
- You can make a difference in people’s lives by helping them improve their health.
- There is much room for creativity in the supplement industry.
- You can potentially make a lot of money if you start a successful supplement business!
What are Some Tips for Starting a Supplement Business?
Here are a few tips for starting a supplement business:
- Find a niche: Don’t try to be everything to everyone. It’s important to find a niche market and focus on serving it well.
- Develop a high-quality product: Your product needs to be competitive in the marketplace. Make sure it is safe, effective, and meets customers’ needs.
- Create a strong brand: Your supplement business needs a brand customers can trust. Focus on creating a professional logo and website design.
- Promote your products: You need to promote your products to potential customers through marketing and advertising.
- Get started today: Don’t wait to start your supplement business. The sooner you get started, the sooner you can start seeing results!
Where Can I Find a Simple Checklist for Starting a Supplement Business?
A simple checklist to use when starting a supplement business is as follows:
- Choose Your Type of Supplement Firm: This should be based on what you are best at and how much experience you have. Remember to always keep your interests, skills, and experience in mind.
- Name Your Supplement Business: This should be done carefully, as your brand is important for attracting the right customers. A simple, memorable name will go a long way.
- Choose a Legal Form for Your Business: Whether you choose to become a sole proprietorship, partnership, LLC, corporation or another option will depend on your business. Ensure that you are aware of all the implications of each type.
- Determine Your Supplement Business Model: Determine how your business will make money. Will you sell products, services, or a combination of both?
- Write a Supplement Business Plan: Your business plan will also help you determine what your start-up costs will be and will provide a roadmap with which you can launch and grow.
- Apply for the Necessary Permits and Licenses: In most locations you will be required to apply for a business license and/or permits before you can begin operations.
- Determine Your Budget & Apply for Funding as Needed: You will need to know how much money you have to spend on all of your business-related expenses before opening any doors. If needed, apply for a small business loan or other funding options.
- Get the Technology & Software Needed to Run Your Business Efficiently: You need to have the right tools in place to succeed. Implement software that will help you manage your time, contacts, and business operations in general.
- Market Your Supplement Business to Potential Customers: A solid marketing plan will be crucial to your success. It should focus on attracting the right customers so that you can provide them with the products they truly need.
- Get Customers & Grow Your Business: Once you have a solid marketing plan, it's time to actively pursue and secure those who could benefit the most from your products.
Summary
Starting a supplement company can be a great way to help people improve their health and wellness. When starting a supplement company, there are many things to consider, such as choosing the right type of business, developing a high-quality product, creating a solid brand, and promoting your products. Following these tips can set you up for success in this growing industry.