My friends father might want to start his own supplement company and start selling it at a local gym.
What does it take to start a company?
As in:
How much money?
How much science/biology knowledge?
Any advice?
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Thread: Starting a Company
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01-07-2007, 06:35 PM #1
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01-07-2007, 06:54 PM #2
- Join Date: Mar 2005
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All I can tell you is a lot because first of all it needs to be a state of the art facilty (I hope all that make our supplements are), meaning brand new machines, processors, and so on. Then the state or whoever has to approve it for it to be able to mass produce any supplements, then you need product recipes (not really) but if you want to make ppl buy the product you need some serious advertising meaning a lot of $$$$ needs to be put into it.
Basically I'm talking about maybe $50 million or more. After all you can't make supplements in your garage.
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01-07-2007, 07:00 PM #3
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01-07-2007, 07:29 PM #4
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01-07-2007, 07:34 PM #5
most companies do not manufacture their own products, they simply outsource formula's.
this is definitely the route to go in a start up business since practically nobody will front you enough to maintain a facility your first 10-15 years.
products don't need outrageous marketing or advertising. simply using productive business procedures and allowing for exposure is the best way to do it. small sample packs etc.
i would get a PHD too and have a partner who majors in finance or entrepreneurship.
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01-07-2007, 07:35 PM #6
I disagree. The machinery needed to package or cap ingredients should not be too expensive. As for advertising, take Controlled Labs for example. If you can establish a respected presence on a forum like this, there is no need for major advertising. Anyway, good luck with your new company, and I hope you are successful.
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01-07-2007, 07:41 PM #7
- Join Date: Jan 2002
- Location: Atlanta, GA
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First off, it's very important to understand that this is a very, VERY crowded industry. There is a lot of competition that will not hesitate in the least to copy your product. This is especially important to understand if your company is going to be differentiator/first mover and bring the game to new levels with innovative products.
Basically, though, the rules that govern all businesses apply to this industry. You'll need solid strategic planning, financial management, marketing, and management. You'll need an outlay of capital (probably in the form of credit) to cover start-up costs and any property, plant, and equipment that you might buy. Most companies don't buy any plants or equipment, though. Instead, they outsource the production to manufacturing firms. Still, you'll likely need capital for the start-up costs to get you going.
If you don't have the necessary knowledge for certain aspects of this business, hire someone that does. If you don't know how to formulate innovative products but that's one of your objectives, hire some guy(s) for R & D.
If you want to talk more about it, feel free to e-mail me or contact me through our myspace page.
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