A Simple 10 Step Guide on Starting a Supplement Company

Thinking of starting your own line of supplements? But are you aware of the regulations you have to follow or the labeling guidelines provided by the FDA? Fret Not! Take a look at our step-wise guide to help you wade through the process of starting your very own supplement company!

1. THE SIMPLE 10-STEP GUIDE For Starting a Dietary Supplement Company

2. Starting a supplement company calls for a much larger skill set and efficient orchestration and synchronization of many functions like distribution, marketing, legal matters, sales, and more. With strategic planning and implementation, you can launch your own dietary supplement brand in a relatively short period of time. Let’s walk through how to start your own supplement line from scratch. 2 What Should You Know Before Starting a Successful Supplement Company?

3. A majority of new entrepreneurs make these 3 common mistakes: 3 Step 1 – Identify Your Target Audience They don’t define their target customers OR They establish target customers after making the product Or, they have vague target customers (e.g. Is "health conscious woman" viable as a target customer group?) Avoiding these mistakes as a brand owner will play a critical role in the success of your supplement brand!

4. Clearly define your target audience Who are they? A group of people that are either united by (at least one) Common Activity Profession Health Issue Where do they buy their products? Specific retail outlets, healthcare practitioners, distributors, websites, catalogs, and events. 4 To build well-defined target customer groups, you should be able to answer these 5 questions: What are the needs waiting to be fulfilled or pain areas that you can focus on? Identify the constraints your prospective customers face while making decisions and work backward. (e.g. Do vegans lack adequate choices of joint health products?)

5. Where do they obtain information about their products? Identify devices and platforms such as websites, social media, television or mobiles, etc. and use them for engagement. 5 Will I be able to solve my target customer's problem? Target only those problems that have reasonable or affordable solutions. To build well-defined target customer groups, you should be able to answer these 5 questions (cont’d):

6. 6 Step 2 - Decide on Your Customer Acquisition Model Experiment with multiple tools and compare results. Keep realistic expectations. Let your instinct be your guide! E-commerce platforms like Amazon Select the method that works best for you and your product. Analyze the required efforts against the cost and profitability. Blogging Pay per Click Media buying Setting up your store Direct Sales Trade Shows Options include, but are not limited to the following activities:

7. Make your product stand out by replicating your competitors’ successes, but avoiding their mistakes. Use our resource to record the following information about your competitors and their products and then plan your game: 7 Step 3 - Comprehensive Competitor Analysis Price - Be prepared for paper-thin margins. Remember – large volumes often go to the lowest bidder. New customer segment – Find a class of customers to whom the product was never marketed in ways they can relate with (e.g., Athletes, seniors and people with restrictive diet – supplements for the lactose intolerant). Find an ingredient to delete – Think of making a product without an undesirable ingredient that normally exists because it has come from a certain source. Find details within the product development process that other firms haven’t tapped and grab the opportunity!

8. Work with a qualified manufacturer and leverage their experience & certified facilities. 8 Step 4 - Making Your Own Supplements Start with the key features you want to advertise and then work backward. Borrow some of the best ideas from your competitors, but always start with your vision first. Identify your target audience, see how your competition is catering to it and then go for a unique alternative that goes a step beyond while working out the formulation. If you don’t know the right ingredients or proportions of ingredients to create your supplements, ask a reputable supplement manufacturer to help you finalize your formula. Remember –

9. Develop a business plan and use these guidelines to identify the right supplement manufacturer : 9 Step 5 – Identify the Correct Supplement Manufacturer Question the manufacturer to get relevant information – Ask questions about Their years of experience, references, certifications, specifications, number of testing rounds, etc. Product and processes - Ingredient quality, efficiency of QC and QA departments, minimum order quantity, use of industry-specific graphic designers, etc.

10. 10 Identify the Correct Supplement Manufacturer (cont’d) Carry out a background check on the identified manufacturer, check reviews on websites like BBC and Ripoff Report Your manufacturer should be cGMP certified from NSF or NPA Your manufacturer should offer constructive criticism or push back on your ideas Check manufacturer’s leadership team details on their website/ social media

11. 11 Are they a turnkey manufacturer ? If so, what services do they offer? Turnkey services typically result in significant cost savings and shorter-than-average product lead times since all aspects of the manufacturing process are occurring “under one roof” Choose a  U.S. based supplement manufacturer as they are well-versed with stringent US regulatory standards How quickly does the manufacturer get back to you? Receiving dedicated and prompt service is of paramount importance. Be wary of the unusual emphasis on the honors and awards on their website or when you speak to them on the phone as they might not necessarily represent the quality and integrity of the manufacturer’s team Check the manufacturer’s knowledge and experience about the regulatory environment of the dietary supplement industry Identify the Correct Supplement Manufacturer (cont’d)

12. 12 Step 6 – Creating Your Supplement Label An eye-catching, quality  dietary supplement label is critical for your product’s success in the increasingly competitive nutraceutical market. Your label should be – FDA compliant and follow FDA Nutrition label guidelines Emphasizing your product’s USPs over the competitors’ Simple yet visually distinctive with special attention to the color

13. 13 Creating Your Supplement Label (cont’d) Also, Budget sufficient time for designing, proofing and printing dietary supplement packaging and labels - avoid any impact on your time to market due to processing errors Work with a design firm with in-depth knowledge of the supplement industry Consult with your contract manufacturer and legal counsel before claiming your product as “ Made in America ” on your supplement packaging

14. 14 Step 7 – Naming Your Dietary Supplement Brand As it is the first calling card, give due diligence when selecting a name for your dietary supplement product. Some of our suggestions are: Short, sweet and relevant health supplement business names Have defined color palette that helps consumers recall your product faster than that of your competitors’ A unique and consistent voice relevant to your consumer group and the target audience will add value WHAT’S IN A NAME?

15. 15 Naming Your Dietary Supplement Brand (cont’d) You should be cautious while finalizing your supplement names. Ensure that: The supplement names you are considering are unique None of the names you are considering are similar to products being sold by your direct or indirect competitors The names you are considering have no negative connotations attached to them.

16. 16 Step 8 – Finalize Your Supplement Marketing Plans Leverage social media Increase your brand recognition and customer loyalty by identifying smart supplement hashtags and consistently including them in your posts. Save significantly on your advertising cost and see the boost in the conversion rates Identify and tap cross-promotional opportunities Capture a vast potential market by searching and exploring different customer segments for a single product line. E.g., Vegan products can also be promoted to vegetarians, flexitarians and traditional customers

17. 17 Step 9 - Fulfillment Plan - How Will Your Product Reach Your Customers? Efficient fulfillment plans enable your supplements to reach your target customers at the right time and are crucial in today’s day and age where companies like Amazon-Prime fulfill customers’ wish lists in 2 business days Check whether your manufacturer can help you with storage, kitting, assembly, shipping and distribution Finalize your decision based on specific manufacturer requirements such as cGMP storage

18. 18 Step 10 – Begin Selling! Create a pricing structure Decide how you want to sell your nutritional supplements – team up with gyms, weight-loss clinics and doctors, sell online through e-commerce platforms like Amazon Initially convince sites and store owners by offering them a small number of supplements for free. It will help you reach your target customers and result in return sale

19. 19 Supplement Industry Regulations and Agencies You Should Know About Key Agencies FDA  (Food and Drug Administration) FTC  (Federal Trade Commission) Third Party Organizations NSF  (National Sanitation Foundation) USDA  (US Department of Agriculture) QAI  (Quality Assurance International) Project Non-GMO ConsumerLab.com LGC Key Agencies FDA  (Food and Drug Administration) FTC  (Federal Trade Commission) Trade Associations CRN (Council for Responsible Nutrition) NPA (Natural Products Association) AHPA (American Herbal Products Association) UNPA (United Natural Products Alliance) Dietary Supplement Regulations Food Drug and Cosmetic Act of 1938   Dietary Supplement Health and Education Act of 1994  ( DSHEA  ) FDA Guidance   The FTC and Native Advertising

20. 20 Go Forth into the Supplement Industry! Congratulations! You have made it to the end of the guide! Now, get ready to start your journey towards creating your own (successful) dietary supplement line! Do your homework Weigh all options and Most important – be prepared!!

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