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EXECUTION Eskil's Progress Thread: Starting a Supplement Business from Scratch

Discussion in 'Progress/Execution Threads' started by Eskil, Aug 16, 2012.

  1. Eskil
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    Eskil Legendary Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    Alright, the time has come! This will be my progress thread for a new Fastlane business I am starting – a nutritional supplement product/business. I will do my best to post here with updates on what I am doing. Hopefully this can become another thread that others can learn from (whether they are getting into the supplement business or not), and perhaps I can get your guys’ thoughts and inputs here on some things along the way.

    Let me first clarify what I am going to be doing. When I say “nutritional supplement business” I mean that I will develop first one, and eventually more, nutritional supplement products under my own brand. The brand will be focused on general health – in the life-extension, general health improvement, anti-aging, multi-vitamin market. But instead of trying to be another cookie-cutter A,B,C,D,E multivitamin, my first product will approach this with a slight twist…

    The product will be a 100% all-natural, nutritional supplement – and not “yet another multivitamin”. It will contain 7 main active ingredients and one or two supporting ingredients for increased efficiency.

    [​IMG]

    The seven active ingredients are a powerful pack of already widely known, true and tested ingredients that all have been proven to actually improve overall health in various different ways. These ingredients are already selling well in the supplement market today – but usually sold separately under generic brands.
    My USP is that I offer these altogether in one convenient, daily dose. :)

    Ingredient #1
    Anti-aging / Heart health and cardiovascular benefits / May slow the onset of Alzheimer's disease.
    It is also believed to reduce inflammation, and to give your immune system a healthy boost.

    Ingredient #2
    The strongest anti-oxidant found in nature. Anti-aging / Promotes heart health and cardiovascular benefits / Believed to inhibit or slow certain forms of cancer.

    Ingredient #3
    Heart health / Blood pressure / Anti-aging / Parkinsons disease, and more. Widely known for its positive effects in the human cardiovascular system. This ingredient is actually an enzyme that already exists in our bodies - but deteriorates as we get older. Maintaining stable levels of this ingredient has proven to be a great way of keeping your body healthy longer.

    Ingredient #4
    Anti-aging / Lowers cholesterol / Lowers bacterial growth / Reduces arthritic and digestive inflammation / Skin health. This ingredient has been used in Eastern traditional food and medicine for over 1000 years. There is no doubting this ingredient’s many benefits, and a daily intake of it may contribute to your health in more than one way.

    Ingredient #5
    Anti-aging / Heart health / Immune strength. This ingredient has been clinically proven in studies to directly benefit heart health. It is also an essential nutrient that the cells in our bodies depend on in order to extend their own natural lifespan.

    Ingredient #6
    Blood pressure regulator / Anti-aging / Clinically proven weightloss aid / Bone mass increase / Nerve damage repair (Parkinson's disease).

    Ingredient #7
    Diabetes and blood sugar aid / Blood pressure regulator / Lowering LDL (bad) cholesterol, while increasing HDL (good) cholesterol / Increase lean body mass


    This Fastlane business fulfills all the N.E.C.T.S commandments:

    Need: The supplement industry is a $30 Billion+ industry in the U.S. alone, and is grown steadily. With increased private health-insurance and medical care costs, people are seeking their own ways to do preventive care through vitamins, supplements, diet, and exercise. Now, before I go full steam ahead with this first product – my first test will be to verify that the market actually NEEDS and wants my formula. Because I know that as useful as the product may seem in theory – only the market can tell me for sure. So my first big step now is to set up a presell page to collect leads, and also to get a very small batch manufactured for cheap that I can send out to the first buyers for some feedback, after they have tested it. :)

    Entry: Even though in theory, “anyone” can have a supplement made – it still takes significant work, determination, and some financial investment to research the production of a nutritional supplement and get it off the ground properly to market. I have already spent a few months doing research for my ingredients to find the right combinations, market needs, benefits, correct daily dosages of each, etc.

    Control: I will be almost entirely in control of every aspect of this business. The only thing somewhat out of my control would be depending on manufacturer’s for the actual production – but my ingredients are common enough to where if one manufacturer were to fail on delivery – there are plenty of other manufacturer’s to choose from.

    Scale: The Need also delivers the Scale here. I will start out with direct online sales, but my goal is to enter retail chains when I have reached a comfortable sales volume level online.

    Time: There is definitely high enough margins here for me to automate this business. I will be mostly in control to start, but the plan of course is to gradually outsource every element of the business – from customer support, distribution, sales, and eventually management.

    Wish me luck guys...
     
  2. TheTruth
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    TheTruth Gold Contributor Read Millionaire Fastlane Speedway Pass Summit Attendee

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    Good stuff Eskil, this will be fun to follow


    That being said, I have a lot of questions:


    - Will this be in pill form? If so how are you going to make it easily digestible? (most pills don't get digested by humans, so this factor alone could make me never look at the product again)


    - How will I be sure that the ingredient's don't cancel each other out and thus giving me only partial benefits from the product? (Have you done research to see if all the ingredients can be digested and absorbed if taken together?)


    - Have you created a basic prototype of your own and tried it out to see if you experience any benefits?


    - Are all the ingredients from natural sources? Organic?


    Can't wait to hear the answers!
     
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  3. wade1mil
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    wade1mil ¯\_(ツ)_/¯ Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    Speed++ for taking action and getting started!

    It looks like you have a well thought out plan. I don't know anything about the supplement business at all, but I have a question for you. You said “PRODUCT - Product Description” will be a 100% all-natural, nutritional supplement – and not “yet another multivitamin”.

    This makes me think of Company A and Company B competing for business. When asked what Company A is doing different than Company B, they say they offer a better product and better customer service. When asked what Company B is doing different than Company A, they say they offer a better product and better customer service. In reality, there is nothing different and they will be forced into competing on price.

    You say not “yet another multivitamin,” but how? And I'm sure than almost every supplement business is going to claim "our ingredients are the best" or something along those lines. What is your USP? How will you be unique? Why buy from you?

    Good luck Eskil!
     
    Last edited by a moderator: Feb 28, 2013
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  4. MakeItHappen
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    MakeItHappen Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

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    I will love to follow your progress in this thread! I heard that the margins can be really high in this market. What margins are you expecting?
     
  5. TheTruth
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    TheTruth Gold Contributor Read Millionaire Fastlane Speedway Pass Summit Attendee

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    Right on Wade!

    He said that his USP is that he is combining all the standalone ingredients into 1.

    That being said, I am with you on that not being enough to convince me.

    Why couldn't a big competitor crush him right? ... that is why I am excited to hear his answer to my original post :)



     
    Last edited by a moderator: Feb 28, 2013
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  6. wade1mil
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    wade1mil ¯\_(ツ)_/¯ Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    I saw that. I'm just afraid that's what everyone he competes with is going to claim that as well. We want his company to crush the competition!
     
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  7. Vic
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    Vic Contributor Read Millionaire Fastlane

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    Good stuff Eskil, I have always been interested in this space, it will exciting to follow your progress. I think your angle of life extension is a good key communication point.
     
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  8. OsmanS
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    OsmanS Contributor

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    Great idea, keep us updated. One thing though, I really don't like the logo text font
     
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  9. Eskil
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    Eskil Legendary Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    To answer your questions:

    - Yes, this will be in pill/capsule form. You are right in that absorption can become an issue with some pills, but that is also why I have included an 8th (and crucial) ingredient that actually helps with absorption. ;)

    - Yes I have researched their compatibility as well, and also been given confirmation from more than one pharma lab tech that the formula would work in combination.

    - I am still at the stage now where the first batch will be produced - and yes, I do intend to try it myself. In fact, I plan on taking this supplement and actually using it on a regular basis. :)

    - Yes, with the possible exception of possibly 2 of the ingredients (depending on what the lab comes back with) - they are organically sourced.
     
  10. Eskil
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    Eskil Legendary Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    Thanks wade!

    As far as the Company A vs B thing... yeah I am not saying that I will be 100% unique and that no one could copy this. A large company like the one that makes Centrum vitamins could easily copy the formula. But I don't really care. Because it is very much about branding - and one of my goals is to create brand loyalty, by being the first to offer this particular 'package deal'.

    When I say "not another multivitamin" I am referring to the fact that I am not making one of those A,B,C,D,E vitamin things you see in every grocery store.
     
    Last edited by a moderator: Feb 28, 2013
  11. Eskil
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    Eskil Legendary Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    What I want to do is test some pricing, but if I end up at a price point where I see a lot of other specialized supplements are selling for - I should be at somewhere around 600-800% ROI.
     
  12. Eskil
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    Eskil Legendary Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    Yeah, I understand your concern with this. But to re-iterate where I'm at with this: This market is so massively huge (and growing) that even if competitors come in (and some of the big boys might) then I'm not too concerned about that. I believe there is enough business for everybody - not to mention that you can also take some supplements internationally (as long as you can adhere to their local regulations for food and drug laws of course).
     
  13. Eskil
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    Eskil Legendary Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    I appreciate the input, although I'm gonna be a stubborn one on this one, lol. (And who am I to speak... me and MJ were the ones trying to convince Likwid24 to change his logo on the Paint Brush Cover) Lol...

    But actually, I have gotten nothing but praise so far for my logo (designed it myself) and I really like it, so I'm sticking to it! :) Sorry bro.
     
  14. Eskil
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    Eskil Legendary Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    Oh and here is my company / brand description. I wrote this a while back to give myself direction and define a sense of what my brand should be about:

    "The brand will represent high quality supplements containing carefully chosen, natural ingredients – safe for various human and household pet markets. The initial product focus will be towards the niches related to anti-aging, life extension, immune system, and general health improvement."

    Mission statement:
    The purpose is to provide natural and well-rounded, quality supplements that deliver exceptional nutritional value and strong health benefits

    Big fancy words.....ooooh. :)
     
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  15. Eskil
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    Eskil Legendary Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    Action steps for tomorrow:

    Continue work on a couple of pre-sell pages I have been working on. This while I am waiting for a final quote from the manufacturer, and to use time wisely in the meantime - I plan on deploying a market test, similar to the market test described in this old thread.

    I will take "orders" of the product and collect leads of prospects, but redirect them to an "Out of stock" type message. The main purpose of this test will be to:

    - split-test various label designs to see what my target demo responds to
    - split-test pricing levels

    I know the test won't be fully accurate since nobody can fully complete a purchase but nonetheless - it should give me some pointers to follow.

    Packaging and labeling for supplements can make a difference so I want to make sure it's right. I have 12 different label design concepts ready for testing, and in the next few days I might also set up a poll here for you guys to vote on. ;)
     
    Last edited by a moderator: May 6, 2018
  16. Mike39
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    Mike39 Gold Contributor Read Millionaire Fastlane Speedway Pass

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    You may want to come up with a phrase or code word to use in placeof you companies name on here or before long this thread will rank ahead of your website in the serps haha, a lesson learned from my personal experiences :D
     
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  17. Eskil
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    Eskil Legendary Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    Hmmm... Very good point! I will actually edit my posts now! :) Thanks for the reminder...

    EDIT: Ok now that's done.. but the name is still inside people's quotes here, Lol.. guys? Mind editing the name out where you are quoting me? :) :)
     
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  18. Likwid24
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    Likwid24 Legendary Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    Awesome Job Eskil!

    The supplement Industry is something I've been very interested in for a long time. I can't wait to see how this unfolds and I'll definitely be following every step of your progress. I have a few ideas. I think that you'll be VERY interested in one of them. Maybe we can work on something together in the future. :D

    Where did you find your manufacturer? Did you wind up going overseas? Are you still shopping around? I can speak to my manufacturer today if you need me to. I'm sure he knows of a few places in China.
     
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  19. Eskil
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    Eskil Legendary Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    I'm excited to hear your ideas man. Shoot me an email when you have time. ;)

    As for a manufacturers, you can find a few through Google. I initially talked to 5-6 different companies but they either had higher MOQs than I was willing to start out with, some were really slow to communicate (which to me, is a red flag if I'm gonna be doing business with them extensively), or there were other ones with terms I didn't like. But luckily - our good pal Mr. PatrickP helped me out and gave me a contact who was willing to work me for what I wanted.
     
  20. Eskil
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    Eskil Legendary Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    Quick update:
    Got a new quote today from the manufacturer, but turns out they got some amounts in the formula messed up (which was my fault), so I'm waiting back from them to get the correct quote.

    I also worked more on the split-test pages this weekend.
    To narrow down the label designs from 12 to 3 (for the market test), I will probably enlist your guys' help to suggest your thoughts. :) (stay tuned!)
     
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  21. Eskil
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    Eskil Legendary Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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  22. Brander
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    Brander Bronze Contributor

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    The first thought I had - How do I know that all these ingredients all together will work the same as taking them separately? Can they negate each other if taken together?

    I know you answered this, but any guarantees and case studies on the sales page to counter this objection would go a long way.
     
  23. Eskil
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    Eskil Legendary Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    I hear you, and my sales page(s) will definitely include more detail on this for people who might be concerned about the same thing.
     
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  24. Eskil
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    Eskil Legendary Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    Well, I sure learned a few things after starting this thread... :)

    1) What I like and what other people like can sometimes be vastly different, Lol...
    2) Never assume that most people will like something you think will work just fine

    Based on feedback here, I will make a couple of very different versions, more toned down, etc. Might even change my logo *gasp* since so few people seem to like it... (the toughest pill to swallow, but oh well, nbd).

    But that being said - I will still run tests with some of these (and also against some new drafts I make) to my real market and see the response.

    Thanks for all your input and votes!
     
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  25. wade1mil
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    wade1mil ¯\_(ツ)_/¯ Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    One of the hardest things to do, yet one of the most important :)
     
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