Negosentro|Starting Your Own Supplement Business|If you have come to the point that you have decided to start your own supplement business, then you are only a few short steps from making this idea into a reality. Just like any other business startup out there, it is important to go over the necessary steps that you will have to take to ensure that your new business has a plan, is registered through the proper channels, and completely legally compliant in all matters. Below you will find some helpful tips to get started, so be sure to grab a paper and pencil to jot these ideas down.
Planning Your Business
Some of the greatest supplement businesses, like Tony Horton at Power Life, started with a simple, yet clear, path for success. It is important for you to define what your path might be and what you would like to do to achieve your goals. What you will need to do is start with a simple business plan. Here are a few questions you should consider when making your business plan:
- What are your startup costs? Be sure to understand what you need to get going and what you may need in the future to keep your business afloat while you are still trying to get traction.
- Who will be your target market? Of course, due to the nature of your business, it is easy to say something like, “fitness people.” However, consider what type of fitness people you are approaching. Is your supplement best for people trying to gain more mass or muscle? Is your supplement more to help overweight people lose their weight and get fit? It is important to consider who your target market will be.
- How long until you break even? Every business starts with a limited amount of cash. The startup cash on hand will be used to pay for inventory and other debts. You will need to plan how much you need to sell in order to reach your break even point. The break even point is when the amount of income you are making is even with the amount of money you are spending for your business.
- What is the name of your business? You probably already have an idea for what you would like to call your business, but be sure to consider finding a name that fits what you are selling. It also does not hurt to run your name by a few focus groups.
Legal Entity and Taxes
In order to keep your business legit and flowing correctly, it is important to establish your business as an entity. For example, if you were to be sued by an unhappy client, you would be personally liable for any damages if your business is not an entity. However, if you were to establish your business as something like a limited-liability company (LLC), then all liability will fall onto the LLC instead of you personally. There are also many other legal entities aside from LLC, but the LLC is perhaps the better choice for the business you are looking to start.
The next step you need to make sure you take care of after establishing your legal entity is to be sure to file for your taxes. There are a variety of state and federal tax laws that you will need to look into before starting your business. Your first step should be to apply for an EIN.
Bank Account and Accounting
Once you have finished establishing your business legally and with the proper taxation underway, the next step to getting your business afloat is to set up a business bank account and begin the proper accounting. Keeping your personal finances separate from your business finances is a critical component to owning a business. Also, keeping a detailed log of your expenses and income every day will make sure that your tax return is filled properly and on time.
Once you have got through all these steps, you will be well on your way to opening your supplement business. While these may not be all the steps you need to consider when opening your business, they will certainly help you get started. If you have further questions or doubts, be sure to reach out to a professional.