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Start-up in food supplement industry : how to write your business plan ?

Start-up in food supplement industryHow to write your business plan: through this article, we have chosen to address the question that food supplement start-up must ask themselves.



There is no brand positioning strategy here, which we had the opportunity to detail in the article “How to create a food supplement brand in 3 steps”. In this text, we focus on the concerns of start-up who would like to launch their food supplements brand.



Thus we provide some answers to one of the first questions asked by food supplement start-up: HOW TO WRITE YOUR BUSINESS PLAN ?



To know how to write a business plan for a food supplement brand, we will detail the cost part and the timing part of the design and manufacturing of a food supplement.



1/ The costs to be expected for the manufacture of a food supplement

It is always difficult to estimate the price of a food supplement formula as it depends on many factors: the costs of the raw materials chosen, the galenic of the food supplement and its packaging (powder in capsule, powder in doypack, liquid in a bottle, in a stick, in a single dose, soft capsule, gummies, etc.), the type of manufacturer (its equipment, its minimum order quantities), the type of formula (personalized or standard), the quantities ordered, etc. Suffice to say that, to obtain a price, you must already be ready to place the order.



When you are a start-up and you begin to study a project, it is essential to have an idea of the budget, even approximate, to define the overall envelope to be planned.



From our experience, we can indicate that the manufacturing of a food supplement can have an industrial cost from €4 to €10 (per finished product of one month cure). This range, certainly quite variable, gives you a first order of magnitude.



You can refine this range based on the following :



a) The price increases depending on the galenic* chosen


Gummies Kares-up



b) The price increases according to the choice of ingredients : 


ingredients gummies kares-up



c) The price decreases with the quantities ordered :


quality gummies kares-up


2/ The forecast timing for the design and manufacture of a food supplement



It all depends again on your requirement for the differentiation of your brand/formula.



  • We recommend starting with a strategic analysis of your market. Indeed, it is important to note that a brand has a much faster return on investment if it is well positioned in relation to its market, that is to say if it meets a need according to the criteria required by the consumers.



In addition, the return on investment is faster if the brand takes an unoccupied place in a market segment. Let us point out in passing that, to position yourself optimally, it is necessary to carry out a marketing study**.

Depending on your budget and your timing, it can be quick and concise, while still being effective, which is what Kares-up offers you. It takes around 2 months for this stage, including one or two return trips with the brand.




  • The design stage comes next. It can be avoid if you select a catalog formula.



However, only an innovative catalog formula for which you may negotiate exclusivity will be differentiating and bring added value (with a minimum quantity to be manufactured).



Otherwise, allow 1 to 2 months (depending on complexity and galenic) for the development of your personalized formula. For example, a capsule will be much quicker to develop than a liquid formula (and also less differentiating).



  • Integrate the validation of the regulatory compliance of your formula, its claims and your labeling, depending on the distribution country. For France, this step is obligatory.



It takes approximately 1 month and can be integrated into your schedule as a hidden time.



  • Manufacturing also depends on your galenic.



Allow 2 months for capsule production, 3 months for a liquid single dose, 4 months for gummies.




As a conclusion, the timing of development and manufacturing of a food supplement is approximately in this range :


gummies Raphaëlle Da Costa

**We cannot recommend this step highly enough, which adapts to your budget and your timing and which is essential to guarantee the success of your brand launch. The investment you make will be largely offset by the turnover generated from the launch.




You are now better informed to know how to build a business plan for a food supplement brand.




If you are a start-up and you wish to launch a food supplement business, please notice that we will have the opportunity in a future article to provide you with very pragmatic insight into the regulatory context surrounding your new activity: What should you do? What should you check before marketing your food supplement? (formulation, certifications, file submission, monitoring, etc.).




Finally, do not hesitate to contact Kares-up for any questions related to a food supplement creation project.




Raphaëlle DA COSTA
Founder of Kares-up




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