4 Steps to Launching Your Own Supplement Company
The supplement market is on track to reach $194.63 billion by 2025. There is still plenty of room to enter and thrive in this expansive industry, but many entrepreneurs are unsure of where and how to get started.
Let’s take a closer look at the process of building a dietary supplement company.
1. Identify Your Market
Every business starts with an idea. You may think your idea is genius, but are people actually interested in it? Is there a demand for your proposed product?
Before you invest any real money into your business, you need to determine whether there’s a demand for your product and a market for it.
Then, you’ll need to identify your market. Here are a few questions that you’ll need to answer:
- Who are your customers?
- What are your customers’ needs and problems that you can fix?
- Where do your customers buy their products?
- Where do your customers get information about the products they use?
- Can you solve your customers’ problems?
Many entrepreneurs overlook this crucial first step. Don’t make the same mistake. If you don’t identify your audience, you won’t know who to market your products to.
2. Perform Competitor Analysis
Another crucial step is to perform a competitor analysis. The supplement industry is huge, and you’ll have a lot of competitors. The goal is to replicate your competitors’ success while avoiding their mistakes.
Essentially, you want to look at what your competitors are doing, and try to improve on what they offer. There are a few ways to do this, such as:
- Offering better prices
- Finding an overlooked customer segment
- Adding or deleting ingredients
If you hope to compete and succeed with your company, you need to outdo your competitors. The only way you can do this is to analyze their operations.
3. Developing a Plan for Manufacturing
Supplements are physical products, which means that you’ll have to develop a plan for manufacturing your products.
Most importantly, you’ll need to look for a:
- Factory that can produce your products
- Material supplier, such as Wisepowder, to source your ingredients
- Testing facility to test for quality and verification of your ingredients
Alternatively, you can find a turnkey manufacturer that offers both manufacturing and secondary services, such as testing, packaging, labeling and distribution.
Take your time with this step to make sure that you choose the right companies and suppliers. Working with a reputable and FDA-compliant manufacturing facility will also give consumers more confidence in your brand.
4. Branding and Marketing
Brand development is crucial, and your marketing plan will make or break your business.
Your product’s label is more important than you might think. It should convey your brand in every way, from the fonts you choose to the colors and language you use.
Additionally – and more importantly – you need to ensure that your labels are FDA compliant to follow the agency’s nutrition label guidelines. All active and inactive ingredients should be listed, and you’ll want to make sure that you’re following the requirements regarding health claims (you can’t make any health claims).
It may be advisable to work with a lawyer when developing your branding, marketing and labels to ensure that you’re following the law.