Self-improvement is never going to go out of style, and one of the most common ways people seek to improve their routine is by adding a nutritional supplement. Supplement businesses are responsible for creating, designing, and selling the product, though they do not typically handle manufacturing it. In-store sales at health stores are growing, as are vitamin and supplement sales online.
The grand total of annual revenue for these two industries is over $30 billion annually. If you’re looking to start your own company and want to take advantage of a growing market, investing in supplements might be right for you. Let’s go over some of the basics for anyone hoping to get into the supplement business.
Create a Business Plan.
A strong, clear business plan is essential no matter what industry you’re looking to break into. When you’re creating your business plan, keep in mind that making sure your objectives and key results are consistent and communicated between the different departments of your company is essential to run efficiently.
Your OKR’s are, ultimately, the underlying principles that your business is based on and the goals that you want to achieve. You’ll want to identify your start-up costs and what your operating costs will be for at least your first year, create or source a line of products to sell, and come up with a name and branding for your business.
Your branding and design can help you stand out in a crowded market, so don’t cut corners. Whether you’re funding your business yourself or seeking a loan from a bank, a well-researched business plan will be your road map along the way.
Understand your Product and Audience.
Think about what types of supplements you plan to sell and then research what demographics would benefit most from that supplement. If one of the primary benefits of your product is weight loss, for example, it would make sense to target those who are interested in exercise. If your supplement can help mitigate the effects of aging, you may want to invest in marketing your product to seniors.
It’s about understanding your customer and getting to know what their wants and needs are. You can reach your audience in a variety of ways. Creating a blog about your supplements is a great way to show their effects. You can also appear at trade shows, hire spokespeople to promote your product on social media, or advertise using a pay-per-click model to drive traffic to your website. The important thing is knowing where to direct your resources.
Finding a Supplier and Marketing your Product.
In all likelihood, you will not be the one manufacturing your product, so it’s important to partner with a trusted manufacturer with expertise in the industry. You’ll need to identify what type of formulation you’re planning to sell your supplements in as well. For example, softgels are popular with consumers and it isn’t difficult to find high-quality softgel contract manufacturers online.
You’ll want to focus on ingredient quality, efficient QC and QA departments, and on finding someone who can handle the volume you’re looking to purchase. Some manufacturers do have minimum orders, so if your business is on the smaller end, you may need to order in bulk in order to get a fair deal on your product. Once you’ve got everything in order, take advantage of every opportunity to sell your product. Create unique labels and branding and promote yourself on social media, anything to get your name out there.
The supplement industry is strong and growing stronger, presenting a premium opportunity for any entrepreneur looking to create a new business. While there are significant start-up costs, the potential for profit is extremely high, and it’s not too difficult to get yourself started.
Since you’re unlikely to be manufacturing your own product, once you identify a supplier, your focus can be on your profitability and branding. If you do your research, invest in high-quality products, and develop a unique brand, the supplement industry can be extremely lucrative.
