Axiom's Supplement Company

[axiom]

Hmm.. honestly, this is a serious industry.. health isn't a joke so, just jumping in doesn't seem right to me. Bit irresponsible.. So I do think someone has to be knowing a lot of stuff to provide value instead of just reselling formulas.. Much to learn and this evolve fast with lots of competition.

Such a 'sexy' business to be in seemingly, especially after seeing these success stories on this forum.

I do respect that. However, prolonged 'research', in any industry, is simply a reason to delay taking action. You put a minimum viable product into the market and see how it reacts -- tweaking along the way or perhaps scrapping whole thing. In my case, 2-3 weeks was plenty of time to conduct research on the ingredients I was looking at, buy and test them myself, and get a feel for how the market would respond. Anymore than that and I would have been wasting my own time.

 

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[Gymjunkie]

I do respect that. However, prolonged 'research', in any industry, is simply a reason to delay taking action. You put a minimum viable product into the market and see how it reacts -- tweaking along the way or perhaps scrapping whole thing. In my case, 2-3 weeks was plenty of time to conduct research on the ingredients I was looking at, buy and test them myself, and get a feel for how the market would respond. Anymore than that and I would have been wasting my own time.

Question is: Would you buy a supplement from a guy like you if you knew his back story like this.

If you would, great. If you wouldn't..

So yeah, it is a fine line I guess. Responsibility vs Paralysis.. tough to balance..

 

[DClaiborne]

How's everything going? Still chugging along?

 

[SEBASTlAN]

From the silence I deduce he is killing it

 

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[camcam]

No more updates?

 

[axiom]

Ladies and gents, I apologize for the time lapse here. I know I've said that before. Things have just been very, very busy in my life. Just know that my silence hasn't been due to the business sinking, because it hasn't. I made this thread to help people in the same exact situation I was in a year ago -- addicted to business with no idea where to start.

Hopefully this post will answer any questions you may have about my first real foray into the vast and confusing world of business. It will concern my supplement business, but also all of the opportunities it has opened up for me outside of the industry.

So without further ado, here's where we're at this point with the supplement company:

• August 2015 was our best month. 3 products, $10,000 in profit. Primarily Amazon sales, site picking up a bit.
• Once again, surprise surprise, inventory issues have been the bain of my existence the last couple of months. Products put on backorder, unexpected spikes in sales, etc. have caused a lot of trouble for me. This has actually probably been the biggest issue I've faced so far. Such is the danger of inventory-based businesses. Also, because you have to stock up on product don't expect to make much of a profit for a very long time. Eventually, you'll get to the point where inventory is sorted out and it will pay off. But for at least six months, its doubtful you'll be able to take much money out of the business at all. Keep this in mind.
• Back to normal now in terms of inventory, but sales have taken a semi-large hit. Confident I can get them up again quickly, so not too worried.
• Looking at a fourth product -- a custom formulation -- that has proven to be an incredibly profitable product area. It's unique, with no direct competitors in sight, though the idea has proven itself in other areas of the supplement market. I am very optimistic about this product and believe it could be the product that goes viral if I play my cards right. Time will tell, gents.
• Looking over the thread, I recall a couple people telling me how expensive PPC is, especially for such a highly competitive market. They were absolutely correct about this. I spent (wasted) away a huge portion of my profit margin for a long time trying to get PPC down. I'm sure there is still a way to make it profitable -- may consider hiring a professional on Upwork -- but for now I'm relying on social media marketing primarily. Not to mention the brand engagement you can build on platforms like Twitter and Instagram is unparalleled.
• Going off the point above, I'm focusing most of my attention on building an actual relationship with my customers. This is absolutely key, I've found. If you have conversations with your customers like a regular human to human interaction, you are setting yourself up for success. The more you behave genuinely interested in your customers' needs and desires, the more customers become customers for life. And guess what? In a strictly monetary sense, it is far more profitable and cheaper to gain long-term customers than it is to acquire new ones.
• I recall some people were questioning the quality of the supplements I was selling -- understandably so as the supplement market is filled with scams and snake oil. In fact, I truly appreciate those who asked me the hard questions, as it forced me to change my thought process. I switched from a fairly monetary-based mindset to more of a value providing mindset. And for that, I am eternally grateful. Back when I started this thing, I believed I was doing it to provide as much value as I could. But that wasn't the real reason. It was part of it, sure. But not all or even most of the reason. Now, though, I am 100% convinced that the only businesses that last in the long term are the ones who's top priority is helping their target market to the best of their ability. And now I can proudly say that the level of customer satisfaction for my supplements is absolutely astounding to me. My first product has roughly 140 reviews now, with over 4.6 stars. I've had several customers tell me that my products have changed their lives for the better. Hearing this kind of thing makes me nearly (not quite) indifferent to the sheer profit side of the business. No longer am I of the mindset that I have to make several truckloads of the green stuff to be successful. If that happens, all the better. But that is no longer my top priority and I am happier because of it. Best part? I feel even more ambitious every day. I spring out of bed at 5:30 with no desire to touch that snooze button. It is exhilerating.
• Want a piece of advice? It's been said by multiple people on this forum, but I don't care. It's worth repeating. Here it is: learn copywriting. If you are serious about starting a successful business, there are no ifs, ands, or buts to be uttered. Copywriting -- knowing what makes your target market tick and make the purchase -- is by far the most important skill I've learned. Copywriting is a perfect concoction of art, science, and psychology. I've become very proficient at it and I can honestly say it is one of the biggest difference makers in business. No matter how good your product is, it will flop horribly if you can't sell it. I've already listed some good resources on this thread, but here's how I built and am still building the skill myself: I signed up as a freelancer on Upwork. I didn't join for the money -- though it does provide a nice bit of side cash flow -- I joined to hone the hell out of my copywriting skills. And the progress I've seen in myself has been incredible to reflect upon. I firmly believe that even if I owned a multi-million dollar business, I'd still freelance just to continue building upon my selling skills. Speaking of, if any of you fellow fastlaners needs some copywriting done, I'd love to help you guys out.
• And finally, the biggest news to report on this business. A man contacted me through my site, commenting on how my first product helped him tremendously and inquiring on bulk orders. This is the first time I've had an opportunity to sell in bulk, and I had to haphazardly make up some soft bulk price quotes. Now we are in talks about selling my product(s) through retail, which is an absolute game changer. Nothing is certain as of yet, but I remain very optimistic.

That's the rundown of where I'm at with the business that I based this thread around. But now I'd like to talk a bit about the opportunities throwing myself out into the cold, harsh winds of business has afforded me.

• I am currently in the midst of starting another business. Not willing to divulge any details at this point, minus the fact that it is B2B, which has always been a huge goal of mine. B2B is traditionally far less sexy than B2C -- say in the tech industry or the supplement industry -- but the profits are absolutely insane. Its a whole different ballgame, gents. This business is slowly taking over my day as my supplement business becomes more and more automated. Met some contacts through the supplement business (from various routes, primarily by chance) that have given me an invaluable amount of guidance, help, and possible business deals. There is no quicker way to becoming an expert than learning from the experts themselves. Don't make the mistake of believing you can do it all on your own because you will waste a lot of time and a lot of money in a world where those are two of the rarest resources to be had.
• I have begun writing with the goal of being published. I am fully aware that writing is not fastlane, and I am absolutely fine with that. I write because I love to write. I write literary fiction (think Gatsby, Catch 22, On the Road, etc.) which is inherently a risky business in the modern era compared to genre writing. I've finished a novel, roughly 60,000 words am in the middle of editing it now. Through my foray into the B2B business I mentioned above, I have met a guy from LA who has ties to the publishing business. I'm confident enough in my storytelling ability that I am fully confident I will eventually get published -- no matter how many times I have to rewrite it. This is not to get rich. Far from it. This project is simply something I love working on, and that's what matters. I've already begun work on my next book.
• Based on the above, I'm also beginning to lay down the bricks for a third company -- albeit far in the future. A publishing company. I'd love to get involved in the industry, even though it is extremely risky. This hasn't come very far as of yet, but I am working on it.

The point of these last three bullets, although not related to the topic of this thread, is to stress the importance of simply biting the bullet and jumping in the mix. At a certain point, you need to stop all of the reading and researching, and go full throttle into the world of business. Even if my supplement company doesn't reach the million dollar point -- even if it crashes and burns -- I will have no regrets whatsoever. The amount of random opportunities I have been afforded by starting this company are borderline incomprehensible to me. It feels like it cannot be a coincidence. The business I started has already paid off multiple times over in the currencies of experience and connections.

I'll end it there for now, as I've spent far too much time rambling. I hope those of you reading this thread take something from it, because I sure have and I'm the one who started it. I'll post here again, although I can't promise when. But for now, its time to rise and shine. Time to get back to work, ladies and gents.

 

[stepstone]

Make sure you are operating as an LLC, S-Corp etc and that you doing everything strictly by the book in terms of your corporate setup. I have been running a supplement company for almost a year now and you need to make sure in case something does go wrong you can't be held personally liable. If someone does decide to sue I can guarantee you your company will be named in the suit along with the manufacturer. Do some reading on piercing the corporate veil and make sure you are following all applicable rules like adequate capitalization and following corporate formalities. This is a pretty good overview http://www.nolo.com/legal-encyclopedia/personal-liability-piercing-corporate-veil-33006.html.

There are pros and cons comparing LLC to S-Corp. To operate a supplement business, how did you decide which type to open? Thanks.

 

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[youngtrep]

There are pros and cons comparing LLC to S-Corp. To operate a supplement business, how did you decide which type to open? Thanks.

Both provide similar liability protection. I went with an LLC for its simplicity. There are some tax savings related to an S-Corp but my accountant and I agreed it wasn't worth the extra paperwork at this stage.