10 Steps for Starting a Dietary Supplement Company
So you decided to start a dietary supplement company. Now what? You might find yourself researching formulations, deciding between tablets or capsules, and so on. Starting a dietary supplement company can be a daunting task, but by following these 10 steps, you can set yourself up for success. From finding the right regulatory consulting company to finally having a framework to start selling your product, you’ll be well on your way to launching a successful business. Whether you specialize in vitamins, herbal supplements, organic supplements, or amino acid capsules, with the right foundation in place, you can create a thriving business in this growing industry.
Now, let’s review the 10 steps to start your dietary supplement company!
1. Hire a Regulatory Consultation Company
If you’re looking to start a dietary supplement company, one of the first steps you need to take is finding and hiring a reputable regulatory consulting company. Navigating the complicated world of regulatory compliance on your own can sometimes come at a cost. Starting a supplement company means following the FDA 21 CFR Part 111 rule which details the manufacturing, packaging, labeling, and holding regulations of all supplement companies. A good regulatory consulting company will have a team of experts who are familiar with the dietary supplement industry and can help you with the facts panel, label review, label compliance, and label claims. They will also advise you on the best ways to ensure product safety, assess compliance risks, and point you in the right direction with marketing.
2. Pick a Niche
Next up, determine what niche market you can strategically sell to. This can be a difficult task, but it’s essential to the success of your business. Once you’ve determined your niche, you can finalize your brand name and logo to match. Critically thinking about what niche you want to compete in, will help you hone in on what sets you apart from other supplement companies, your branding, and who your target audience is.
Need help sorting through your thoughts?
1. Start by looking for products that are unique and that you’re passionate about.
2. Once you’ve found a few potential markets, research the competition and find a way to stand out from the crowd.
3. Define and review the target audience for your product.
4. Keep your finger on the pulse of the latest trends and developments in the dietary supplement industry.
3. Perform Competitor Analysis
One of the keys to success in the dietary supplement industry is staying ahead of the competition. This can be a challenge, as there are always new products and companies entering the market. However, by taking the time to do a competitor analysis, you’ll be able to identify opportunities and threats and adjust your business strategy accordingly.
Here are a few tips to help you do a competitor analysis.
1. Identify your top 3 main competitors and their key marketing strategies.
2. Take note of their formulas and use them as a reference point or inspiration when formulating your capsules or tablets.
3. Keep track of their product offerings, pricing, and promotions.
4. Monitor their social media channels and website traffic.
5. Analyze their customer reviews and feedback. (Tip: What are unhappy customers saying about their products? How can your product bring more value to them?)
6. Stay up-to-date on industry news and trends.
4. Determine the Number of Products and SKUs for Launch Day
The number of products you should sell and the number of SKUs (stock keeping units) in your product line will depend on a few factors, including your target market and your business goals. However, it’s important to remember that selling too many products can be just as detrimental as selling too few. This is because you need to be able to provide quality customer service and support for all of your products. If you’re not sure how many products to sell, start by evaluating your target market and your resources. From there, you can make a decision that will help you achieve your business goals.
5. Decide on a Private Labeler, White Labeler, or Custom Manufacturer
Now it’s time to decide on what type of manufacturer you will be using for your business. There are a few key differences between private label, white label, and custom manufacturing.
Private Label for Your Dietary Supplement Company
With private labeling, you can create a unique product that’s tailored specifically to your needs, build a strong brand that stands out from the competition, and control your inventory so you never run out of stock. You will be able to send your specifications to your private label company, giving you a say in the production and packaging of your supplements.
White Label for Your Dietary Supplement Company
Do you want to start your own business, but you don’t have the time or money to invest in manufacturing and producing your own products? White label manufacturers can help take some of the burden off of your shoulders. They will have a variety of brandless products for your choosing. You simply provide them with your logo and packaging designs and the white label team takes care of the rest. By branding products with your own logo and packaging, you can create a completely unique look for your business without having to do any of the heavy lifting of formulating a product yourself.
It can be tough to find a reliable and trustworthy white label manufacturer that can produce high quality dietary supplement products with your own unique branding. You will want to make sure that the products you’re putting your name on are made with the highest quality ingredients and in an FDA-approved facility. You also need to be able to trust the manufacturer to keep your branding and product design confidential.
Custom Manufacturing for Your Dietary Supplement Company
It can be hard to find a dietary supplement manufacturer that can create a product that meets all of your specific needs. Custom manufacturing guarantees that your product will be made exactly how you want it, from the formulation to the labels, to the packaging. This manufacturing option is likely to be the most expensive route, but here you will have the most control over the production of your nutraceuticals.
With that being said, you will need to have a detailed vision of how you want your end product to look. It may take several attempts before your ideal product is produced and packaged to your specifications. This means you need to have strong communication with your custom manufacturing company which could mean a longer wait for your end product.
At Nutrareps, we provide high quality consulting services that can help reduce communication time and help you reach the ideal product formulation that you are seeking to launch. We have all of the resources you need to create the perfect product, and our team is available around the clock to answer any questions you may have.
With Nutrareps, there’s no need to spend hours researching different ingredients and contacting multiple suppliers. We’ve done all of that for you, so you can focus on what’s important – launching your new product! Contact us today and let us help get your product off the ground!
6. How Are You Going to Ship Your Dietary Supplements?
Compliance requirements will vary depending on your business and fulfillment model. You’ll also need to make sure you’re compliant with all applicable laws and regulations regarding supplements. If you plan on shipping products yourself, you’ll need to invest in shipping and labeling supplies. If you use a third-party fulfillment company, they will handle all of the details for you with a monthly fee and per unit ship cost. Either way, it’s important to be aware of the requirements so that you can plan accordingly.
7. Choose a Manufacturing Partner
Earlier we went over the different types of manufacturers. Now, it’s time to choose one that best fits your business needs.
When choosing a manufacturer, there are several factors to consider, such as your niche, MOQs (minimum order quantities), fulfillment needs and product type. For example, if you’re selling powders, capsules or tablets, you’ll need to find a manufacturer that specializes in those products. Once you’ve taken all of these factors into account, you’ll be able to narrow down your options and choose the best manufacturer for your business.
Trying to source the perfect manufacturer for your product can be difficult. But don’t worry, we’re here to help! We have a wide network of manufacturers that we’ve worked with for years and can help you find the perfect one for your product.
Let us take the hassle out of sourcing a manufacturer so you can focus on developing your product and bringing it to market. We’ll work with you every step of the way to make sure you get the best possible deal and quality from our manufacturing partners. Contact us today to get started!
8. Create Your First Product
When choosing your first product, there are several factors to consider, such as your formula, label design, and label compliance. Formulating a new product can be a complex process, so it’s important to work with a knowledgeable manufacturer who can help you create a high-quality product. Once you have your formula ready, you’ll need to design a label that is both aesthetically pleasing and compliant with all applicable laws and regulations. These two factors are crucial in ensuring that your product is successful in the marketplace.
9. Promote Your Product
Choosing the right marketing platform(s) is an important step in starting your dietary supplement company. There are many different platforms to choose from, so it’s important to determine which ones will work best for your products and your budget: Amazon, Facebook, marketing funnels, or direct marketing through your own websites like Shopify or WordPress. You could even hire a third-party website developer and marketing agency to help with website development, SEO, social marketing, paid ads, and data analytics. Once you’ve selected your platform(s), you’ll need to create a marketing plan and budget. This will help you determine how to best promote your products and reach your target market.
10. You Are Ready to Start Selling!
Once you’ve formulated your products and created your marketing plan, it’s time to start selling. You can sell your products online, through brick-and-mortar retailers, or both. If you’re selling online, you’ll need to create a website and choose a payment processor. If you’re selling through brick-and-mortar retailers, you’ll need to find stores that are willing to carry your products. Regardless of how you choose to sell your products, it’s important to price them competitively and offer stellar customer service.
Conclusion
With these 10 steps, you’ll be well on your way to starting a successful dietary supplement company. Just remember to find a reputable manufacturer, choose and formulate your first product, plan for fulfilling orders, formulate a marketing plan and budget, and start selling!