By 2028, the supplement industry is expected to be worth more than $270 billion. Clearly, there is a lot of money to be made in this market. If you want to get in on the action, then it’s important that you know where to start.
Starting a supplement company takes a lot of work and time. But all of that effort could pay out nicely.
So how exactly does one start a supplement company? We’re glad you asked!
Keep on reading and we’ll take you through everything that you’ll want to know about getting your own supplement company off the ground.
1. Identify Your Target Audience
No matter what industry you’re in, you need to identify your target audience before you can do anything else. And this is especially true when it comes to vitamins and dietary supplements.
Are you making supplements for children, young adults, or the elderly? Are these supplements for men or women or both?
What kind of health concerns are you looking to address? Are you trying to alleviate insomnia or are you making protein powder?
By knowing who you are selling to, you will be able to carve out your niche and better market your business.
Ideally, you’ll have a very specific idea of who your ideal customer is. You’ll know their interests, values, average income, gender, age, and lifestyle.
2. Comprehensive Competitor Analysis
Once you know what you’re making and who you’re selling to, it’s time to find out who your competitors are. How do they market themselves? How good are their products?
See what you like and don’t like about these companies. Look at their marketing and social media campaigns and see what the public thinks about them. As a new company, you’ll get to learn from the mistakes of your competitors.
Maybe your competitors are ignoring a segment of the market. Maybe they are leaning too heavily to one gender, leaving room for you to market to an untapped demographic.
3. Making Your Own Supplements
Now it’s finally time to actually make the product. Come up with a formula with precise doses of the proper raw ingredients. Look for the best sources and prepare your final price quotes.
Test your raw materials and prepare to evaluate your research and development batch.
You can then run a pilot batch on your production equipment. After your finished product has been evaluated, you can issue a certificate of analysis.
4. Identify the Right Supplement Manufacturer
It can be intimidating to find the right manufacturer. You need to make sure that you ask potential manufacturers as many questions as you can think of. The more information you can gather, the better.
It’s in your best interest to pick a supplement manufacturer that is based in the United States. These businesses understand the American regulatory standards and are more trustworthy than foreign manufacturers.
5. Creating Your Supplement Label
Many consumers are not that well educated when it comes to vitamins and supplements. This is why it is so important that you have a clear and catchy label.
You also need to make sure that your label abides by all of the regulations set forth by the United States Food and Drug Administration (FDA).
You want your label to follow your mission statement and reflect the values of your brand.
It’s good to have a doctor associated with your label, such as with KaraMD Pure Burn XS.
6. Naming Your Dietary Supplement Company
You want to keep your supplement name short and sweet. It should be relevant to what you sell and be easy to say. See what your competitors call themselves and understand why they went with those names.
You also want to make sure that no other company has your name. Run potential names through Google and see what comes up.
7. Fulfillment Plan – How Will Your Product Reach Your Customers?
This is another reason why it is so important for you to understand your target demographic. Do they shop at supplement stores? Do they prefer a general convenience store?
Or are they more likely to buy on Amazon or even something like Etsy?
Ask your manufacturer to help you with storage and assembly. They can even likely help you with shipping.
8. Start Selling!
After putting in all of this work, it is finally time to start selling! You want to first create a price structure that is going to work best for you.
At the start, you will probably have very thin margins. You might even lose money on each sale. But if you price too high then you might risk not getting any customers.
After you get strong word of mouth, you can then use that leverage to start finding better and better vendors.
The Importance of Knowing How to Start a Supplement Company
Hopefully, after reading the above article, you now have a better idea of how to start your own supplement company. As we can see, there are a lot of steps involved in the process. But by following our guide, you will be able to start your own successful company and profit from this booming industry.
The important thing is to stick to your brand’s values and use high-quality ingredients. This will help you build a strong customer base and allow your company to grow and expand.
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