Supplement companies can make a lot of money very quickly if they’re positioned properly with attractive branding and are riding on the back of a rising trend. Supplements can also be produced in tablet or pill form very easily with relatively small facilities or by outsourcing the manufacturing to an inspected and certified factory. Investors are aware of the potential of a well-rounded supplement company, but they’re also familiar with the pitfalls of investing in a health-related startup that winds up failing in the long-term. To gain investor trust in this sector you’ll have to do some initial groundwork. Here are four strategies you can use to show that your supplement business is worth investing in:
1. Provide Proof of Profitability
Investors want to see more than just plans and ideas – they want tangible metrics, analytics, and revenue reports. Thus, the most sure-fire way to get investors on your side is to continually raise profits for several months or years consecutively. Reducing overhead and expenditure can help increase the amount of revenue you’re able to keep and report as profit. For example, supplement producers can find used scientific equipment and instruments for sale online instead of buying or leasing brand new machines.
2. Generate Interest and Social Sharing
Investors usually don’t like to jump on board with something until it has already picked up some steam of its own. Essentially, they’re looking for social proof and proof of concept, which simply means that they want to see evidence of your brand having at least a marginal level of success in the early goings. Thus, building a strong social following and distributing promotional content around the web are some of the best ways to impress investors.
3. Ensure Quality Assurance
Getting your supplements inspected and certified can help convince investors that you’re selling a safe and reputable product. Without this kind of assurance, it can be difficult to obtain significant financial backing due to the risks involved in funding and being associated with a potentially unsafe supplement. Fortunately the supplements industry has plenty of companies that will test and certify your product for a fee, so that’s definitely a worthy investment to make.
4. Find an Untapped Niche
Being a leader in a burgeoning niche is a great way to get investors excited about working with your company. There are thousands of herbs and nutritional products out there just waiting to be packaged into supplements, so it’s just a matter of figuring out which ones are trending right now and capitalizing on their momentum.
Is Your Company Really a Good Investment?
Ultimately, it all comes down to whether your company is actually a good investment. The savviest investors are typically the richest, and those are the kind you want to attract. However, those can also be the hardest to convince, because they want to be sure that their money is going to being earning a respectable return. Thus, you have to look at your company’s performance from the perspective of a prospective investor and take steps to develop it accordingly.