The global health and wellness market is a $4.2 trillion industry and it is forecast to keep growing. With thousands of products to choose from, addressing hundreds of different health and lifestyle needs, the health product industry can be both exciting and lucrative. These five tips can help you launch your health product startup.
1. Make Sure You Have Enough Starting Capital
Any new business needs ample cash to get started, but this can be particularly vital for a health product company. Research and development can take years and if you are selling a product regulated by the FDA the approval process can cause your product launch to take even longer. You will want to make sure you have enough start-up funds to keep your business operating until you begin to turn a profit.
Make sure you draft a compelling business plan. You will need your business plan to convince investors and lenders to fund your project. It can be useful to employ the services of a business advisor with experience in the health products industry to help you get started.
2. Identify Your Niche
There are thousands of health products on the market. Choose a product that is suited to your knowledge and interests, that there is a growing market for and that is not already saturated with competitors. If you or a loved one have experienced a health issue that you are passionate about finding a solution for, this may be a good starting point for brainstorming product ideas. Once you have figured out some products you have an interest in selling, do some market research to ensure that there is profit potential for the products you are considering and that there are not already too many competitors selling it.
Consider examining the bestseller lists at popular retailers such as Walmart and Amazon. Pay attention to what potential customers are sharing on social media. Investigate what the hot products in retail stores and infomercials are. Keep in mind that some trends can be short-lived and new products take a while to launch, so use current trends as a guide, but make sure your product will not be out of fashion before it even reaches the shelves.
3. Identify Your Target Market
Figuring out who you are going to sell your products to is as important as figuring out what products you are going to sell. It may be tempting to try to sell to everyone, but it is difficult to develop an effective marketing strategy for such a broad audience. Typical markets for health products include athletes, fitness enthusiasts, people with specific medical conditions or dietary needs and those trying to lose weight. It can be useful to identify a subgroup within those larger groups to market your product. For example, if your product boosts endurance, you might do better marketing it to marathon runners than sprinters.
4. Figure Out How To Attract Customers
Customers can not purchase your product if they do not know about it. Successfully marketing your product to new customers is vital. Word of mouth can be a powerful marketing tool. Consider providing samples or free trials for your product and then asking those customers to share their experience on social media or write reviews. Reviews, such as these PrebioThrive reviews, can help distinguish your product from other similar products in the marketplace. Recruiting bloggers or starting your own blog can also be a good way to get the word out. It is generally best to market your product on multiple channels, rather than relying on a single way to reach customers.
5. Analyze Your Competitors
Figuring out what your competitors are doing well and what they can improve on can help you avoid your competitors' mistakes, emulate their successes and help you determine ways that you can make your product stand out. Areas to pay attention to include what price they are selling their products for, who they are selling their products to, what ingredients they are using and where they are sourcing those ingredients from. You may be able to set your product apart by selling at a different price point, focusing on an underserved market or adjusting the ingredients you use to better fit current market conditions and consumer preferences.
As consumers continue to demand health products to meet their lifestyle needs, the market will continue to expand. These five tips can help you capitalize on this growing demand and create a thriving new business, while also helping people improve their health and wellbeing.