Starting a dietary supplement company can be extremely rewarding, and the barrier to entry is much lower than many might imagine. However, it is still a tightly regimented business, and you have to be able to deal with all the challenges that come with it. A lot of people who come in this business have great ideas, but it takes much more to be able to compete in this field.

In this article, we’re going to look at a few things you should know before you start a supplementation company.


1). You Have to Find a Viable Product that is in High Demand

The supplementation business is extremely competitive, and unless you’re able to stand out, you’ll have trouble getting sales. The good news, however, is that there are new compounds that are discovered every day, and this could give you a chance to differentiate yourself. 

You also want to pick a niche that has proven demand. Examples include weight loss, sleeping aids, or products to build muscle mass. Another niche that is growing in popularity right now is nootropics, which are drugs and supplements aimed at increasing cognitive ability. Try to find a niche that works for you, and also try to pick one where you have some sort of expertise.


2). Choose Between Private Label and Custom Supplements

Another thing you will need to consider is which approach you will take to manufacturing. Two common options are either creating custom products or going with a private label company.

If you choose to go with a private label product, things might be easier, but you’ll have a lesser margin and less control. Not to mention that your formula won’t be proprietary. With custom products, on the other hand, you can choose what you want to put in the product, and really create formulas that will allow you to stand apart in the market.

If you decide to go that route, it’s important that you know what type of equipment you’ll need to get started. The biggest piece of equipment you’ll need will be an automatic capsule filling machine. Automatic capsule filling machines do the job fast and you can find great units for as little as $31,400. You will then need to start looking at things like grinding and mixing equipment, tablet pressing machines, packaging equipment, and other types of equipment depending on what kind of products you plan on selling.


3). Understand Regulations

This is probably the most important thing when trying to sell supplements. Dietary supplements are regulated by the FDA and the FTC. The first thing you have to know is that any marketing or packaging claims have to be truthful and backed by scientific evidence. Also, supplements cannot be sold with treatment or curative claims. This means that you can’t say that a supplement can cure a disease or that it can be used to replace a prescription drug.

Also know that you will need some special licensing if you intend to manufacture your own supplements, and will have to meet the guidelines set forth by the Dietary Supplement Health and Education Act of 1994. This is why we strongly suggest that you speak with a business attorney before you start, and also make sure that you get the coverage needed.

Starting a supplement business can be complex, but if you come in informed, you’ll be able to avoid a lot of mistakes that could end up hurting you. Make sure that you’re well aware of all the rules and regulations governing the industry, and have a solid plan in place before you start.