Health and wellness has long been one of the richest consumer industries in the world. In fact, at the end of 2018, health and wellness was the runner up to technology as one of the industries expected to grow the most over the next decade. What does this mean for the aspiring entrepreneur? Creating a business in health and wellness is a smart move.
There are many types of businesses you can start in this field – a few options include consulting, training, nutrition, and selling products, just to name a few. One of the easiest and most profitable health and wellness businesses you can own is a supplement company.
Types of Supplement Companies
There are many ways to sell supplements. The one you choose will probably depend on how much capital you have available and your particular skills and knowledge. For example, if you already have an existing storefront, you might be looking to expand your inventory with supplements. In this case, these products would probably be just a small part of your business model.
However, if you’re starting your company from scratch, you’ll need to find a model best suited to you. One example is a health and wellness website. Many people who successfully run these have blogs devoted to one niche or another and sell their supplements right there from that platform. They might blog about weight loss, muscle gain, disease prevention, or women’s health. The key is to find a specialty that interests you so you won’t get tired of talking about it.
In selling products online, you can either choose to buy bulk amounts and store them or order individual items as your customers buy them. The first way will cost more upfront, but probably save you more in the long run. And the last way will cost more and may take too long to get to the customer unless your supplement company dropships.
What is private labeling?
In addition to deciding where to sell your product, you’ll also need to decide whether to label it yourself or just sell as a distributor for the company. If you do decide to label them yourself, there are some important things you need to know. When selling private label supplements, you have a little more autonomy on how the product is marketed and distributed. In other words, it’s your brand and you’re in charge of it.
The way it works is that you purchase bottles of supplements with no branding and put your own on them. Most companies will apply the labels for you and some will even design them for you for a nominal fee. Either way, you’re giving your own name to someone else’s product, so make sure you’re getting something you believe in.
What costs are involved in starting a supplement business?
Some experts estimate that you can successfully open a supplement business for around $5,000. In this estimate, they include several items, but keep in mind that these costs may be very different for you. Your main expense is the supplements themselves. These will, of course, be very different between companies. While the $5,000 estimate includes about 150 bottles of product, most suppliers require you to purchase a minimum of 500.
Other costs include liability insurance, a website, and label design. As you can probably imagine, each of these costs can vary a great deal. The type of insurance policy you buy will likely depend on how you’re selling the product and the size of your business. But the average cost of a business policy is around $400 a year. Websites and label design can cost you next to nothing if you can find the right budding designers. Or they can cost you a fortune if you choose to go with a professional with many years of expertise. In order to keep all your costs low, shop around for the best prices and seek expert advice on making the best decisions for your business.