Most American adults and over 33% of children use dietary supplements, and these numbers are only set to rise. The pandemic made people aware that taking care of their health was vital, and more of them have been turning to supplements to make up for areas they’re lacking in.
This means that there’s never been a better time to get into this industry. Consumers are always on the lookout for affordable and effective supplements, so this is your chance to fill a hot niche.
Read on to find out how to start a supplement company so you can kickstart your new career path.
Research and Identify Your Niche
Is starting a supplement company a good idea? Yes, but there’s a huge range when it comes to the products, so you need to do some research and identify your niche first.
Take a look at existing supplement companies and see what they’re doing. We guarantee there are gaps and opportunities, as no single brand can cover every area sufficiently.
Once you’ve identified these things, you can narrow down the niche or market segment you want to target. For example, you might want to create supplements only for men, women, or children.
Then, find a unique selling proposition (USP) for your products. For instance, if you want to cater to wealthier or more health-conscious clientele, your USP can be premium ingredients.
Develop a Business Plan
Without a plan, you won’t have good direction. Plus, it can serve as a roadmap for your company’s growth and success. If you need funding (more on this later), your business plan can also help convince investors to give you money.
In this document, you should outline your company’s vision and mission. Detail the target market, product line, and marketing strategies, as well as your distribution channels and financial projections.
Seeing all of this on paper can give you a broad picture of what needs to be done to set your business up for success.
Formulate Your Products
Before starting a supplement company, you’ll need marketable products first. Chances are, you aren’t a scientist yourself, so you’ll need to consult with experts to ensure your supplements match up to your claims.
To develop your supplement formulations, work with nutritionists, formulation specialists, and other scientists. They’ll help you ensure that the products are safe, effective, and most importantly, comply with relevant regulations and guidelines.
The FDA regulates dietary supplement products, so you have to follow these guidelines to the T to make sure you don’t get your supplements pulled. These regulations don’t only apply to the products themselves either; things like labeling, claims, and advertising are regulated too. So it’s a good idea to employ the services of a lawyer to cover all your bases.
Choose a Business Structure
An important part of how to start a supplement business is to choose a structure. The most common ones are sole proprietorships, partnerships, or limited liability companies (LLCs).
It can be difficult to sort through the details on your own, so the aid of a lawyer is beneficial here too. You can also make an appointment with a business advisor.
Choose a Company Name
There are numerous supplement company names out here, so you need to stand out. The name will also shape your branding (colors, logos, images, etc.), so think carefully about what words will represent your business.
If you’re having trouble, then consider the company vision and mission you’ve written down in your business plan, as well as your target market and niche.
Run some online checks to ensure you’re not choosing an already-taken name.
Register Your Business
Once you’ve decided on a business name, it’s time to register your brand with the appropriate governmental authorities.
Plus, you’ll have to obtain the necessary licenses and permits to legally operate as a supplement company. This may entail FDA registration, local business licenses, and compliance with labeling and packaging regulations.
If you decide on an LLC, as many entrepreneurs do, then Business Anywhere can take care of the entire business registration process. Our services are quick, and they’ll take all the stress off your shoulders.
Source High-Quality Ingredients
When you get the go-ahead to start your supplement company, you can source high-quality ingredients by identifying reputable suppliers or manufacturers.
Take time to vet these businesses by asking detailed questions. Ensure they meet strict quality control standards and can consistently deliver the quantities you need.
Consider Your Branding and Packaging
Earlier, we mentioned your company name should resonate with your vision and mission, as well as your target audience. This means your logo should be compelling so that the product labels and packaging reflect the value and positioning of your business.
Don’t try to DIY things, as a professional designer can efficiently create a cohesive and memorable look for you. You can tell them all the above information, in addition to the brand colors you want, and they can take it from here.
Set Up Distribution Channels
You may have fantastic supplements on your hands, but how are you going to get them to your customers? Many entrepreneurs start with selling through their own websites, but there are many other options available too.
For example, you can partner with local retailers to reach the local market. Or you can use third-party fulfillment services to reach an even bigger market.
Whatever you choose, develop a robust marketing and sales strategy that effectively promotes your products and reaches your target customers.
Having a strong online presence is beneficial. In addition to running your professional website, you should also be active on social media channels by utilizing search engine optimization (SEO) and content marketing. Engage with your audience and prioritize exceptional customer service.
Know How to Start a Supplement Company
Now that you know how to start a supplement company, you can jump into an industry that’s sure to keep growing in the future. And if you already have a passion for health and fitness, then even better, as you’ll get to serve clients with your knowledge and expertise.
You can always make the process easier by having professionals handle the business formation side of things. For instance, we at Business Anywhere provide registered agent and online notary services, and we even provide virtual mailbox services too. Entrepreneurship has never been so easy!
If you’d like comprehensive business formation services, then sign up with Business Anywhere today.
