Starting a Supplement Company

[ManWithNoName93]

OP, Mike has granted you with a wealth of information DO NOT PASS THAT UP! I'd read that over and over again and let that sink deep in.

To me is seems like you thought some things through, but not everything. There are a lot more factors than just coming up with the "perfect" ingredient profile for a preworkout. Like others have mentioned factors such as legality, raw materials, marketing, overhead, etc. Right now research is your best friend. Research, research and research everything you can find out about ingredients and dosages. With that also being said, I think a preworkout as your first product is a bit risky. The market is flooded with hundreds upon hundreds or preworkouts. Would would make me as a consumer want to purchase your brand new preworkout as compared to what's available on the rest of the market? Starting out in this industry (or any business) doesn't come cheap, so you definitely need to be prepared for that. You mentioned about having a group of marketing students looking into top preworkouts and such. Do you work at a college of some sort? If so, or if you have connections to a college, what if you consult someone who has a degree in dealing with such ingredients and maybe form a partnership with them so they can back you up on the scientific side of this project.

[or_yourlivingtodie]

I'm young and have time to f*** up then recover from it.

with the current economy....you sure about that?

gonna cost you a pretty penny to step foot into the supp world, you sure you have that kind of money to blow?


do you have a reliable source for raws? do you have a contract manufacturer? do you have the money to pay for a cgmp manufacturer who will do all the QC testing on raws? do you have any marketing experience? do you have the $ to compete with marketing like muscle tech and those big companies?

[workhard9]

This man is PREACHIN, OP.

If I viewed this opportunity as my future career, yes. I would follow what he is saying. Mike said it too, if you expect to own a successful supplement company, expect to be broke. I do not expect to make a living off of this supplement line. I'm a college student looking for a way to save money and pay for school. You might laugh at the idea of me saying this will save me money, however, I'm going to buy supplements anyways so I might as well get them at wholesale price even if that means putting in a little extra work. If I make 30 containers that cost me $14.97 to make (including plastic jar, lid, and scoop), then sell them to friends at $25 a piece, that's a $300 profit and groceries for 6 and a half weeks are paid for. Also, I haven't told the story yet of where I got the capital to buy the initial batch of ingredients. Here's where I got it:

Weidman v. Silva 2 was on. Some buddies and I were watching the fights at a local sports bar and I bet one of them $5 that Weidman would win by tko, he said Silva by ko. Well, under the unified rules of MMA, Silva breaking his leg is a TKO so I won $5 bucks. During the fight, I kept saying I wanted to win the $5 bucks but wasn't 100% certain Weidman would win again so my buddies were telling me that it was only $5 bucks and it wouldn't make a difference in my life. I told them that I'd flip the $5 into $1000, only using the initial $5. So, I went to the gas station after the fight, bought a lottery tickets, and profited $16 which now gave me $21 bucks. At Christmas time, there was a White Elephant gift exchange that I was going to but forgot to buy a present. On the way there, I stopped at bought a gift+wrapping paper for $12 bucks with the $21 in cash I had in my wallet because it was all I was carrying at the time. At the gift exchange, I went with a mystery box that had an gift card to a website in it for $50 bucks. The supps I bought cost more than $50 though, so I thought I was going to break the deal I made with my friends. As I go to pay, it alerts me that I had a $22 cash back bonus available for using a discover card, dropping the price to $56. Since I only spent $12 on the gift, I still had $9 left over which paid for the initial batch of ingredients. The first batch will be enough to make 100 complete servings so I will have 10 to myself and be able to sell 3, 30 serving containers for $25 a piece. From there, I plan on using the $75 in revenue to purchase a larger batch and selling 4 containers. Then I will sell 5, 6, 7, and so on, until I have acquired $1000 or give up on selling the supplements and invest the money in something else, until I reach my goal. Regardless, I'm going to flip $5 into $1000 no matter what I have to do.

[workhard9]

OP, Mike has granted you with a wealth of information DO NOT PASS THAT UP! I'd read that over and over again and let that sink deep in.

To me is seems like you thought some things through, but not everything. There are a lot more factors than just coming up with the "perfect" ingredient profile for a preworkout. Like others have mentioned factors such as legality, raw materials, marketing, overhead, etc. Right now research is your best friend. Research, research and research everything you can find out about ingredients and dosages. With that also being said, I think a preworkout as your first product is a bit risky. The market is flooded with hundreds upon hundreds or preworkouts. Would would make me as a consumer want to purchase your brand new preworkout as compared to what's available on the rest of the market? Starting out in this industry (or any business) doesn't come cheap, so you definitely need to be prepared for that. You mentioned about having a group of marketing students looking into top preworkouts and such. Do you work at a college of some sort? If so, or if you have connections to a college, what if you consult someone who has a degree in dealing with such ingredients and maybe form a partnership with them so they can back you up on the scientific side of this project.

Thanks for your input man, I'm definitely going to conduct a ton of research. And to answer your question, I am currently a student. I'm making as many connections as possible with biology, chemistry, biochem, biomed engineering, chem eng, marketing, finance, accounting, etc. as possible. My main group of friends is pretty assorted in terms of major and all of them are willing to and already helping.

[bigswole30]

The companies I have now aren't why you should have listened. The fact I started with just a retail store, created a private brand, turned into huge websites, then used THAT money to start the companies I have now, is why you should have listened. All without a single investment of outside cash.

If you want one simple reason to not do a pre workout, logistics. Think on it for a bit and if it doesn't trigger a reason why that's an issue, then you have a ton more research to do.

I started with a preworkout and only 144 bottles. I now own 3 very successful lines and a manufacturing facility. Do not shoot the kids dreams down. It CAN be done!

With that being said listen to Mike an research until you are BLUE in the face.

[bigswole30]

I realize that... And I'll probably fail in doing this but that's an experience worth having. I would rather try and fail than fail to try. At least that way I'll gain some knowledge, experience in what not to do, and some other life lessons as well. I am completely aware at the difficulties of it but even if my product line stays local and it's just me and my buddies using a custom preworkout, I'm fine with that. It's more the experience I'm striving for rather than success on my first go at this.

Never think that you will fail. When I started failure was not an option. You have to believe and be willing to do whatever it takes.

[bigswole30]

When I started my company with 100 bottles here is how it worked.

Bought 144 bottles and had a label created. Got insurance on my product and here we go. I would call excess of 100 stores a day asking to send them samples and information on the product. We took a very grass roots approach. We sold through this and ordered 288 bottles on our next run. We decided against selling to online vendors bc we did not have the marketing to get the attention from e-tailers such as bb.com. Stores really liked this approach because they could make increased margins.


As our company grew we started researching how we could manufacture in house. We were not satisfied with most manufactures turn around times. We contacted a consultant and began that process. It took about a year all while continuing to focus on selling to independent retailers.

By the end of 2012 we had 7 figure sales and our products were sold in over 250 stores and in several other countries. We began manufacturing in 2013 which opened many more avenues. We also launched our first national brands which is sold through major distribution and by several large international distributors.

I am not saying all this in order to boast but to let you know I started much like you are mentioning. Our initial investment was about $2,500. We have grown every month since our inception. We now own numerous lines (one which is sold on BB.com) and several more very recognizable companies. It all started with a dream and a mentality that failure was not an option.

Take all the advice on here and research. Do not jump into anything.

PS,

MY first product was a Jack3D knock off. Far from innovative

[LoudyRowdy]

.....MY first product was a Jack3D knock off. Far from innovative ....

and you are?? Fina Flex?

[bigswole30]

and you are?? Fina Flex?

That would be a negative sir.

[newtothelift]

This is what I love about Americans, you have that get up and go attitude. You just wake up one day and think "I'm going to start a supplement company" as if there's nothing to it.

Anyway, personally I'd go more down the health food route. Buy loads of milled oats wholesale, put them in nice packaging and create a load of hype around the product, then sell them with at least 300% mark up to foodies and bodybuilders that are dumb enough to pay ridiculous money for something that costs next to nothing in the supermarkets.
I thought of this when I noticed my "Carb gainer" was just maltodextrin at a price 3 times higher than I could have got it for... I fell for it. Just repackage basic food products and sell them to people with more money than sense.

Best idea yet!

Call it something like

"Hyper Oats"

[bigswole30]

my only other guess would be PNI...but why stay hidden?

Out of respect for the forum rules. We are not sold on here.

[LoudyRowdy]

Out of respect for the forum rules. We are not sold on here.

Fair enough... but to answer OP's question, would you recommend someone to get into the supplement business?

[bigswole30]

[QUOTE=LoudyRowdy;1207058671]Fair enough... but to answer OP's question, would you recommend someone to get into the supplement business?[/QUOTE

I would never tell someone not to chase a dream. People called me an idiot in 2003 when I started at VPX. Now I live the dream :-)

When I started my company I took a very grass roots approach which is VERY different then the road taken by most. I didn't have any true start up money. What I did have was a desire to succeed and a decade of experience.

Being as we manufacture we work with many start ups. I have seen several go on to be very successful.

[Mike McCandless]

PNI. Like I said, if he got started he would break about a million rules trying to do it with no budget. If you started anytime since 2009, you were in the same boat. Things are different now as they were just a few years ago. This kid has massive gaps in knowledge on what's going on.

If you have a line being sold on bb.com you're supposed to claim it in your signature. I wouldn't TOUCH being a manufacture in this regulatory environment.

[Mike McCandless]

This you as well? http://vydox.com/#sthash.SHiRVXSh.dpuf

[bigswole30]

This you as well? http://vydox.com/#sthash.SHiRVXSh.dpuf

No, that is not us. I am very familiar with that company though and their shady practices.

I co own Omega Sports but I also own 6 other brands so I don't openly post about any.

[workhard9]

I started with a preworkout and only 144 bottles. I now own 3 very successful lines and a manufacturing facility. Do not shoot the kids dreams down. It CAN be done!

With that being said listen to Mike an research until you are BLUE in the face.

Congrats on the success man, that's great to hear!

[workhard9]

I would never tell someone not to chase a dream. People called me an idiot in 2003 when I started at VPX. Now I live the dream :-)

When I started my company I took a very grass roots approach which is VERY different then the road taken by most. I didn't have any true start up money. What I did have was a desire to succeed and a decade of experience.

Being as we manufacture we work with many start ups. I have seen several go on to be very successful.

Is the lab still around that started you off with the 144 containers? And I see you mentioned you manufacture as well so I'll search around for your facility. Thanks again for the encouragement man!

[bigswole30]

PNI. Like I said, if he got started he would break about a million rules trying to do it with no budget. If you started anytime since 2009, you were in the same boat. Things are different now as they were just a few years ago. This kid has massive gaps in knowledge on what's going on.

If you have a line being sold on bb.com you're supposed to claim it in your signature. I wouldn't TOUCH being a manufacture in this regulatory environment.

Editing this comment as I have ZERO desire to cause drama on these boards. Way too busy for that

[bigswole30]

Is the lab still around that started you off with the 144 containers? And I see you mentioned you manufacture as well so I'll search around for your facility. Thanks again for the encouragement man!

There are numerous companies that offer smaller minimums but we went with a stock formula. I did not start with a custom formula such as yours.

[workhard9]

PNI. Like I said, if he got started he would break about a million rules trying to do it with no budget. If you started anytime since 2009, you were in the same boat. Things are different now This kid has massive gaps in knowledge on what's going on.

If you have a line being sold on bb.com you're supposed to claim it in your signature. I wouldn't TOUCH being a manufacture in this regulatory environment.

1.) What rules would require a budget, grante I am able to order supplements from a manufacturer?

2.) You say I have massive gaps in knowledge. Think back to when you started your line... Did you know everything you do now? That's why I'm not officially forming at LLC. for a while. I'm literally just in the "testing out if I like the preworkout" stage and nothing beyond that. I'm not jumping into the market yet.

3.) Everyone knows regulations kill business, but why wouldn't you touch a manufacturing facility? Didn't you say the only companies making a decent margin are those that are vertically integrated?

[123apk]

Best idea yet!

Call it something like

"Hyper Oats"

This.

The cheapest oats just on their own cost at least 5 times as much as oats from the store. Not gonna get rich from oats alone, although doing bulk quantity bags could pay off. If something is added to them, even something pretty basic then it gives them added value. The other brands appear to add protein in some form, which is probably a good idea.
Veggie sources of protein and carbs are probably a cheap and easier route to go down, I can't imagine pea protein is that hard to make, it could potentially just be a byproduct of the food processing industry. There seem to be a lot more companies producing plant-based supplements than I saw a few years ago.

[workhard9]

There are numerous companies that offer smaller minimums but we went with a stock formula. I did not start with a custom formula such as yours.

I'm still searching for those so hopefully I'm successful in finding them. And that's good advice too, I didn't consider going with a stock formula.

[bigswole30]

I'm still searching for those so hopefully I'm successful in finding them. And that's good advice too, I didn't consider going with a stock formula.

Just as a FYI. Everything Mike is saying is 100% spot on. I just wanted to show the other side that it can be done. We are still learning new things daily and I have been in the industry since 2001. Mike and I used to beef when he was 1 Fast 400 back in early 2000's so I have followed his success and he has accomplished a lot and has a wealth of knowledge.

Just remember many people will tell you something can't be done and a lot of the times it is out of their own insecurity and fear of trying to do it themselves. Every successful company once started with just an idea.

[LoudyRowdy]

Coming soon GBCN

Good Bro Coalition Nutrition

[workhard9]

Just as a FYI. Everything Mike is saying is 100% spot on. I just wanted to show the other side that it can be done. We are still learning new things daily and I have been in the industry since 2001. Mike and I used to beef when he was 1 Fast 400 back in early 2000's so I have followed his success and he has accomplished a lot and has a wealth of knowledge.

Just remember many people will tell you something can't be done and a lot of the times it is out of their own insecurity and fear of trying to do it themselves. Every successful company once started with just an idea.

Yeah, I don't expect people to believe in my dream. It's not their dream to believe in. Thanks for all your knowledge and encouragement man.

[Mike McCandless]

Yeah the regulatory is tough. I know it must be a task with your other website and all the bulk powders.

I like your attempt at a jab. Not sure this is a road you want to go down with me, especially since I'll have free reign to attack brands bb.com doesn't carry. It's Sunday morning in the south so I think there is a law against me going on the attack prior to 12pm.

[bigswole30]

I like your attempt at a jab. Not sure this is a road you want to go down with me, especially since I'll have free reign to attack brands bb.com doesn't carry. It's Sunday morning in the south so I think there is a law against me going on the attack prior to 12pm.

I did not mean that as a jab in the least? ? Why so controversial? It was a true question in regards to the process that must go into that type of manufacturing. Read above statements in other post Mike where I am complimenting you and your success?


PS- I am not on here to cause "drama" so I will remove the comment.

[Segansational]

The supplement industry has become a race to the bottom. The only companies making any sort of real profit margin are totally vertical. Margins have become VERY slim in our industry. Companies have cut back on their formula's in order to save costs as the distribution model is a bit screwed right now. People do math and go, "OMG it cost 15 bucks to make this item and it sells for 30". They're making a killing. Yeah, except it gets sold to a distributor, who sells it to a retailer, who sells it to a consumer. Everyone taking their piece along the way.

I can say that the most I've ever been paid on a yearly salary was 40k, ever. Even to right now. I live in an 1100 sq/ft home with almost nothing in it. I went 6 years without a pay check. Now, I did sell an online business for a lot of money back in 06, that helped. I'm always banking on a big pay day down the road. That is a VERY risky method and often fails. I love starting things, building them, selling them, repeat. It's more about the challenge. My point, if you want to have a successful supplement company, prepare to be broke.

Repped for true insight.

[VinnyPazRules]

what a crap formula jeez I could make a better one of the top of my head. Beat alanine, citraline malate, agamatine, tmg, phosphatidic acid