Insider Tips on Financing a Nutritional Supplements Business

Nutritional Supplements

Recent studies have shown that patients who are given specific dietary supplements, such as omega-3, as part of their hospital stays, have shorter overall stays and reduced disease symptoms. Experts estimate that using nutritional supplements as part of a health care regime can save patients, hospitals, and insurance companies billions of dollars each year. 

That makes nutritional supplements an up and coming trend in standard medical care. Entrepreneurs looking to get ahead of the game should understand how the nutritional supplement business works and how to leverage the right financials to make the business grow.

In this article, we’ll look at the complexities with financing a nutritional supplement company and mistakes to avoid.  

Market Research

As for any business, doing market research before investing in a nutritional supplement business is critical for the success of the venture. Market research can help investors understand regulations, identify potential markets and discover medical trends that may impact their product’s success, such as physician attitudes and insurance company interest. 

Some key areas investors should research include state and federal regulations related to food, dietary supplements and over-the-counter drugs in their market area, any existing competitors, prices and margin expectations, distribution channels and medical trends. Market research can also provide insights into marketing approaches or strategies that have been effective for similar products.  

Supply Chain and Product Safety

The safety and quality of nutritional supplements is of utmost importance. The supply chain process must be cemented prior to launching the start up. An established, high quality supply chain will ensure the safety and integrity of the products as well as upholding brand reputation. 

Quality control measures need to be implemented throughout each step of production including sourcing raw materials, storage, transport, manufacturing and packaging. It is essential that these regulations are followed to guarantee safety, quality and brand integrity. Consumers demand safety and reliability in their nutritional supplement products so it is imperative for companies to have reliable supply chain processes. 

Without this level of quality assurance, consumers cannot trust that the product is safe or accurately reflects the company’s brand image.   Doctors and hospitals cannot risk their reputations on anything less than top quality patient products. As such, throughout the supply chain, there needs to be nutritional supplement product testing.

Sufficient Capital

Without adequate capital, entrepreneurs are unable to take full advantage of the opportunities that arise and are in danger of doing permanent damage to their profitability. Without sufficient capital, an entrepreneur may be forced to make difficult decisions such as cutting corners on quality or scaling back operations, which can lead to considerable risks and long-term consequences. Moreover, investors may be wary of investing in a business that is under capitalized and not able to fully capitalize on its opportunities. 

Look for cost saving opportunities in government grants and marketing.  Because supplements are growing in popularity in the medical arena, start ups do not need as much money behind their research and development or their sales as was once true.


The nutritional supplement industry benchmarks show a rapidly growing market. Latest figures indicate that the global dietary supplement market was worth an estimated $128 billion in 2019 and is expected to reach $220 billion by 2027, representing a CAGR of 7% during this period. This growth can be attributed to increasing awareness about health benefits of these supplements and rising disposable incomes in developing countries. 

Furthermore, numerous grants and incentives offered by governments to increase the production of nutritional supplements is also driving this market. More and more, nutritional supplements are being viewed as having a significant overall cost savings in medical treatment expenses. 


In most countries, nutritional supplement companies must license their products in order to sell them legally. Countries such as the United Kingdom and the European Union have very strict regulations for nutritional supplements, requiring a license before selling any product. In the United States, certain states have special regulations that require additional licenses or make it difficult for companies to distribute their products within those state lines. Without proper licensing, a company may face fines, have its products removed from the shelves, and even face consumer lawsuits. As such, it is important for any company selling nutritional supplements to acquire the necessary license before beginning operations.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.