Start A Natural Health Product Business - Business Ideas
A natural health products business covers many products, including foods, supplements, drinks, and weight management products. Typically, natural health products go into the production of drugs.
It is easy to imagine why you would want to start your own natural health products business. First, health and wellness are hot topics right now. Everyone wants to be happy and healthy regardless of background, culture, or economic status. Second, the natural health products industry will exhibit a CAGR of 5.3% and reach over 32 billion in the next few years.
Therefore, the natural health products business can be a profitable venture. To maximize profitability, focus on providing health products that solve the problems experienced by your target customers.
Starting a natural health product business requires a great deal of effort, dedication, and most importantly passion.
If you're interested in how to sell natural health product, or selling natural health product online, you can use this page as a guide for everything you'll need to know.
Want to learn more? You can check out our full guide on how to start a natural health product business ➜
Key Stats
Startup Costs
| Min Startup Costs | Max Startup Costs | |
|---|---|---|
|
Employee & Freelancer Expenses |
$151 |
$352 |
|
Website Costs |
$223 |
$7,215 |
|
Business Formation Fees |
$600 |
$4,700 |
|
Equipment & Supply Expenses |
$66 |
$700 |
|
Retail Business Expenses |
$1,250 |
$11,650 |
|
Inventory Expenses |
$350 |
$14,750 |
|
Advertising & Marketing Costs |
$75 |
$5,036 |
|
Software Expenses |
$150 |
$2,420 |
|
Total Startup Costs |
$2,865 |
$46,823 |
Case Studies
•
$75K/mo
•
$300K/mo
•
$80K/mo
•
$35K/mo
Successful Businesses
| Business | URL | Rank | |
|---|---|---|---|
|
|
Swanson Vitamins |
swansonvitamins.com |
16,035 |
|
|
Native |
nativecos.com |
38,209 |
|
|
Pharmaca |
pharmaca.com |
56,435 |
|
|
Prohealth |
prohealth.com |
77,943 |
|
|
Nature's Sunshine |
naturessunshine.com |
96,441 |
|
|
Natural Healthy Concepts |
nhc.com |
104,029 |
|
|
Brain & Health Supplements |
brainmd.com |
123,055 |
|
|
Welcome to the Natural Medicines Research Collaboration |
naturalmedicines.therapeuticresearch.com |
135,057 |
|
|
TRC Healthcare |
therapeuticresearch.com |
139,823 |
|
|
Nature's Way |
naturesway.com |
150,002 |
|
|
Ayush Herbs |
ayush.com |
163,887 |
Pros & Cons
| Pros | Description |
|---|---|
|
Flexibility |
You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own. |
|
Scalable |
With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers. |
|
Meaningful business connections |
You never know who you will meet as a natural health product business. This could be the start of an incredible business opportunity! |
|
High customer retention rates |
Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer. |
|
High margins |
The gross margins for your natural health product business are typically around 65%, which is considerably high and allows you to grow your business and manage costs easily. |
|
Easy to encourage "impulse buy" |
In the natural health product business, you have a much higher chance of encouraging your customers to buy on impulse - you can easily alter the price, placement, packaging, and promotional value to influence the decision of your buyer. |
| Cons | Description |
|---|---|
|
Motivation of employees |
If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees. |
|
Longer Sales Process |
A natural health product business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers. |
|
High employee turnover |
In the natural health product business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment. |
|
Taxes |
As a natural health product business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it. |
|
Niche Market |
A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience. |
|
Time commitment |
With starting a natural health product business, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business. |
Marketing Ideas
-
1
Direct Sales
Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.
For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.
-
2
Word of mouth
Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.
Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.
According to Nielsen, 92% of people trust recommendations from friends and family.
Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.
-
3
Social Media Advertising
Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.
According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.
Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.
Hey! 👋 I'm Pat Walls, the founder of Starter Story.
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