Today, people are constantly searching for new ways to improve themselves. For some, this means supplements. Once an athlete has his diet, nutrition, and lifestyle in check, dietary supplements can help take workouts, recovery, and progress to the next level. Some professional athletes such as Tom Brady take their influence to the next level by starting their own supplement business.
Let’s take a look at a few tips collected from experienced industry professionals about why and how to start a new supplement business from scratch.
Why Start a Supplement Business?
Because of the demand for high-quality supplements and the fact that sales metrics for this industry are trending upward, now may be a good time to consider opening your own business.
The Supplement Industry
The supplement industry is strong, large, and offers a lot of potential. This is true for in-store supplement sales at health stores, which have been growing at a rate of 4.5% each year, and online. Online sales are even more impressive, growing at around 12% per year. Combined, the in-store and online supplement industries account for over $30 billion in sales each year and support more than 100K businesses.
Now that you see the potential in this industry, it is time to create a plan and take action. Learn more about starting your own supplement company with the tips below.
How to Begin…
Determine What Products are In-Demand
When trying to enter into the supplement industry, it’s important to remember that there is something out there for everyone. Because this is true, spend time getting to know the market and figuring out what is in demand. If you are ready to take on the competition. Consider a popular weight loss supplement.
You can also go the other way and try to find a gap in the market. This is going to help ensure your business stands out from the others. Conducting market research is essential before deciding what type of product or products you want to offer. Some of the best types of market research include talking to people at health centers and gyms, surveys, and social media polls. These tools will help you figure out what type of supplements people are interested in purchasing.
Figure Out Who Your Audience Is
Unfortunately, many new entrepreneurs overlook this crucial step. They try to start a business with no target customers. You have to figure out who would want to or be interested in purchasing your product. If you have a vague target audience, such as “health-conscious men,” you aren’t going to gain much traction. You also need to avoid determining your target audience after choosing a product.
When you define your target customers properly, you will easily answer the following questions:
- Who is your target audience?
- What type of needs or pain points do they have that you should focus on?
- Where are these people shopping?
- Where is your target audience obtaining information about the products they purchase?
- Can you solve the problem your target audience has?
One of the best ways to find the answers to the questions above is by asking people that you know in the market segment.
Consider the Costs of Opening a Supplement Business
You can start a supplement business for around $5,000. However, if you have more capital available, it will be easier to compete in this industry. While this is true, if you have an initial $5,000 investment, you can typically get around 150 bottles of the supplement product you want to sell, a professionally designed label and logo, insurance, and a website.
When it is time to choose a manufacturer for your supplements, you should try to find one that is FDA-registered, NSF-certified, and GMP-certified. It’s also necessary to make sure your manufacturer will provide you with a certificate of analysis for each batch. This is going to prove what ingredients are used in the batch. Many manufacturers are more expensive to work with than others. While this is true, they usually provide guaranteed products that your business can stand behind and feel confident when selling to your customers.
As you can see, there are several factors to consider when it comes to opening a supplement business. Be sure to keep the information here in mind to know what to do and what to expect. Also, remember this is a saturated and competitive industry, so you need to put time and effort into finding a space where you “fit.” Do your research, be prepared, take risks, but always be sure to make good decisions while you’re at it.