10 Critical Steps for Starting Up Your Own Supplement Company
You love being healthy and your goal is to help everyone around you stay in tip-top shapeÖ sound like you? If you've always dreamed about running your own supplement business, your time is now. But it's not just fun and games - it's hard work. Here are the 10 steps you need to follow to get your supplement company off to a good start.
By 2023, the UK nutritional market is predicted to reach $15 billion, rising at a compound annual growth rate (CAGR) of six percent (Businesswire). This is a direct result of our increased awareness of how important health and wellness is. There is always a new product launching in the sector, and adverts are really driving consumer awareness of products. Therefore, itís clear to see that supplements are no longer used exclusively by body builders or because of a deficiency. So, if you are tempted by this lucrative, growing industry that presents plenty of scope for new supplement companies, read on to find out more about what steps to follow when starting your own.
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10 critical steps for starting up your own supplement company
Starting a supplement business is no easy ride but it can, of course, be incredibly rewarding. Key to the success of your supplement company is being able to market and distribute the products, all while providing excellent customer service, handling financial affairs and dealing with any legal issues. To ensure you get off to the best possible start, follow these 10 steps.
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1. Identify an in-demand product that will add value to peopleís lives.
There are countless different types of supplements out there and, before you go any further, you need to be sure which one(s) you want to produce. Certain markets are likely to be more lucrative than others. The best place to start is to choose a product that is valuable and helps customers achieve their goals and fulfil a purpose. Obvious markets include weight loss, muscle gain, improving memory and, of course, combatting a deficiency.
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2. Consider who your market is going to be.
Once youíve completed step one, itís time to determine what the characteristics of your target customer are. Without getting a clear picture of what your target customer will be, itís possible that your endeavour will fail before itís even taken off. To make this process that bit easier, you might want to think about:
- What characteristics the target customer has
- Why they need the product
- If the product can fulfil those needs and whether there will be any obstacles to this
- Where they usually buy supplements from
- How they find out about products e.g. online, magazines
If youíve considered all these points, youíre on your way to the next step. Remember, if you have any uncertainties about any of the above, itís a good idea to conduct surveys or hold focus groups. A good example of a market that isnít too competitive is wholesale protein powder.
3. Think about your competition.
Even if you create an incredible product, you wonít get very far if itís too similar to your competitors. You need to be able to convince your target customer that you offer something unique. Think about your competitorsí price, target consumer, marketing and value claims (what they say their products can do).
Therefore, bearing these factors in mind, you might want to consider offering products at a lower price to entice customers (as long as you can still make a healthy profit).
You could also target your products at a pool of customers that are frequently overlooked by your competitors and market your brand in a unique way that captures their attention.
Lastly, you can ensure that your product labels make claims that canít be found on your competitorsí products.
4. Make a customer acquisition plan.
One of your main concerns will be attracting customers to your business, and some acquisition methods will be more effective. Finding out what these are and focusing on them will maximise your profits.
These could include media buying, direct sales, blogging, in-person marketing and pay-per-click advertising.
5. Start creating your supplement.
According to industry experts and contrary to popular belief, itís a much better idea to create the supplement after completing steps 1Ė4. Youíll be able to formulate a more successful product after establishing your target market and competition. Ask yourself: what feature of your product will make it stand out when it comes to marketing?
6. Form a relationship with a supplement manufacturer.
If youíre completely new to the industry, it can be difficult to secure a manufacturer. Therefore, donít underestimate the importance of having a detailed business model and a solid business idea.
When choosing your supplement manufacturer, consider how affordable they are, but more importantly, their reputation and quality. Check that no complaints have been filed against them and that they answer all your questions quickly and effectively.
7. Market, market, market!
Create product labels, a website and a social media presence. You might want to get help from a professional designer to make sure your website stands out from the competition. Another way to grow your business online is to create an eBay or Amazon account.
Labels should be eye-catching and accurate. You can find more information about the labelling of food supplements in the UK on the Gov.uk website here.
Get in touch with local businesses to get word out of your new business. Head to local gyms and health clubs to distribute leaflets and business cards.
8. Ensure the business has all legal grounds covered.
Make sure all your products adhere to regulations and legislation. Only consider products that have certificates of analysis to confirm that theyíre safe. Consider getting a lawyer to help with any issues with the set-up process.
9. Think about how you will distribute the products.
After the manufacturing process is complete, you will have to distribute your product to customers. Often, the manufacturer will help you with this. You could give free samples to local shops; itís unlikely that theyíll refuse. Then, if theyíre a success with customers, youíll probably receive an order.
10. Start selling!
This may sound obvious, but itís important to select products that actually work. Only sell sports supplements that do what they say on the label. So, if you trial new products and they donít achieve the desired effect, donít have them in your catalogue.
Also, make sure to keep well stocked. Nothing frustrates customers more than not being able to buy a product when a store runs out. Otherwise, how can you expect them to see your brand as reliable and continue to choose you over competitors?
Are there any supplement franchise opportunities?
When starting our own supplement company, remember to follow these 10 crucial steps to success. For those of you who aren't ready to develop your own range of supplements, why not consider franchising with one of these top supplement companies in the UK? You can benefit from an established brand, proven business model and lots more!
Becky Martin, Point Franchise ©
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