Has it ever crossed your mind to start a supplement company? If you are from the fitness industry or are a fitness freak yourself, you will know the importance of supplements in bodybuilding. You can make the business a fruitful one if you have some great business sense and if you have good knowledge about fitness products.
The supplement industry is expected to be one of the lucrative businesses of 2018 and may incur yearly revenue of over 60 billion dollars by 2021. You can start a supplement business quite easily and cost-effectively. However, a lot of effort has to be put in to develop your own formula, work with manufacturers, outsource label and bottle creations, and build a sustainable brand.
If you don’t know where exactly you are coming from and what exactly you want to sell, you can end up being kicked out from the market soon enough. In this article, we will bring all of the aspects of a supplement business together and help you accomplish your goals.
You can create a successful supplement company if you:
Before you make a business plan, you will have to decide the type of supplements you want to produce and sell. Although there are a variety of options, not all have great profitability. It is quite easy to copy popular brands that are on the market.
You have to select products that have market value and have good nutritional goodness. Your brand should be able to differentiate itself from other supplement lines that have generic ingredients, such as whey protein, multi-vitamin, glutamine, creatine, and amino acids.
However, make sure your products address the general issues people face, including muscle mass gain, weight loss, boost stamina and memory, or deal with specific nutritional deficiencies.
The tip is you have to decide on a cutting-edge, unique product on one side and produce the common supplement line simultaneously. So when the customers who come to buy your unique product should not have to look elsewhere for other products that add to their supplement plan.
Once you have established an idea about what you want to produce, you have to create your buyer persona. Buyer persona means determining the characteristics of your target customer, who they are, what are they like, what they do, their age group, their gender, and their health habits.
You have to identify your buyer characteristics accurately to produce bang on results. When defining your customers, answer these following questions accurately:
You have to learn how your customers’ source information about products, such as online, magazines, existing gyms, fitness centers, or any other outlet. You have to see if you can use these platforms to market your products. These questions will help you define your target market. You can also take help from marketing consultants and conduct surveys or focus on groups for your research work.
In order to set your business apart and be successful at it, you need to look at your competitors closely. You have to convince your target market that your product is better than your competitors’; having a good product is not enough alone. To find the differentiator, you have to understand how your opponents operate first and play their cards in the industry. Several factors will help you find the right information; here is a list of the elements that you must take into account:
Once you have the answers for each question, you have to differentiate yourself in each element and set yourself apart from your competitors.
For instance, you can target those customers that your competitors have overlooked or you can get yourself a certification that your competitors don’t have and create authentic brand value, or you can remove unwanted ingredients from your products and price it cheaper than others.
Once you have determined what should be your brand proposition and unique selling point, it is time for you to create your supplements. If you believe that it is much easier to create the product first and then determine the above steps, you are wrong. The best process to follow is first understanding the market, the trend, and your customers, then personalized product that fits the purpose and needs best.
Think about the unique qualities of your product that you will like to accentuate. You have to not only meet the needs of your customers but also have to offer more. You can follow your competitor’s process (established ones only) of product creation. However, leave space for creativity, expansion, and growth.
Although you are the mastermind behind product development, you will need someone who would manufacture the product by following you to the ‘T’. Since you are new in the business, let your manufacturer help you in defining the steps ahead.
If you have a clear business model and product design, finding a reputable and relevant manufacturer, who is willing to and can move your business forward, should not be difficult. Things you need to consider when choosing your manufacturer:
Distinguish your brand by adding marketing keys, such as create great product labels, build a great brand website, and start an online presence through social media. Make sure your product name is unique, yet easy to remember. Make sure your business logo and label are attractive and simplistic.
Consult a professional team of web designing and graphics experts to help you design and create best, high traffic generating websites and logos.
Once everything is set, i.e., your product line, your marketing strategy and your list of customers, and just before you begin selling your products, you must establish your business as a legal entity. You should hire or consult an attorney who will walk you through the different types of businesses you can form and their pros and cons.
You have to cover all the bases, including obtaining legal licenses and food permits stated by your state corporation or municipality authorities. The permits and licenses to be obtained differ from business to business and state to state. Especially since you are entering into food and nutrition industry, you have to abide by the state laws related to food, health, and hygiene.
Marketing is a continuous and evolving process. You cannot stop with one round of marketing efforts. It should be stimulating, changing, recurring. You should also understand there is no right or wrong way for customer acquisition. It doesn’t mean what works for you will work for another and vice-versa.
However, some of the common and popular marketing strategies that most businesses implement these days include traditional methods (direct sales, newspapers, brochures, pamphlets, and flyers), influencer marketing, pay-per-click advertising, social media marketing, SEO and blogging, and video marketing. (1)
You can choose one or all of the above marketing tools. The more, the better. However, compare the results until you find the ones that best suit your purpose and budget.