Does It Cost Millions to Start a Supplement Company?

**Musclepapa John** · 02-11-2015, 09:06 AM

Some talk on the web about DLB & Rob Bailey possibly getting in the supplement business with their own brand. I think its a good idea as I know companies doing third party manufacturing even one NPC bikini competitor who as a chemical engineer started manufacturing her own priority blends and now does third party manufacturing.

Interestingly though Bob Chic noted on the web yesterday that, "Its MONEY thats the issue ( or lack of)....its extremely expensive to start up a supplement business, with the majority of it going to advertising and marketing." In response to someone claiming a startup would need $100K for marketing Chic responded, "LOL...well...that would be a good start...but not even a dent into having any real shot at launching a company. Were talking MILLIONS these days...and thats no guarantee, or course."

They have the millions to do it, but does it cost that much?

HTW · 02-11-2015, 09:16 AM

Fuck no !! Start an LLC and give me $20,000 and I'll kick out a product or two.

**Musclepapa John** · 02-11-2015, 09:57 AM

Originally Posted by DMX

Fuck no !! Start an LLC and give me $20,000 and I'll kick out a product or two.

Might it fail though due to your lack of capital? I've seen lots of companies developed seemingly for no other reason than to milk seed capital for income and then shutdown or sell off as with everything from supplement companies to reality shows.

I know if someone is rather fraudulently looking for a mark they will always be attracted to the ones with the biggest purse, but in the end I don't know that capital investment alone increases the likelihood of long term success.

**Musclepapa John** · 02-11-2015, 10:03 AM

Also starting a company that produces or distributes a third party manufactured line of products that don't require FDA approval I'd think is far less costly than doing something like VPX where you actually do your own R&D and production in-house. Most of the supplement business startups we see today isn't the latter I suspect.

**Musclepapa John** · 02-11-2015, 10:19 AM

Russell Weiner, owner of Rockstar energy drink and son to talk show host Michael Savage started the brand in 2001 after earning his BA in political science. he is one of America's richest 250 Americans with net worth over 2.5 billion.

Here is a vid of his "boat" the ROCKSTAR a 161ft Trinity valued at on $21 million after it was damaged in Miami last November after a draw bridge fell on it. He's more heavily invested in real estate. Bill Gates yacht value is $400 million by comparison.

HTW · 02-11-2015, 10:24 AM

99% of supp companies use other companies to make their products . And of course you'll need more than 20k to make it successful . But to start a company , don't need much . DLB wouldn't need any money to market their products . Use her social media to create the buzz . That's what rich piana did. You can buy his 5% products online at one place only. Then "used" his popularity to hope that independent nutrition stores inquired and brought his products in the store. Bob chic is clueless on what it would cost to create a supp company . And of course I would need over a million to advertise in the dying magazine business, sponsor every MD show and forum page, create 25+ products out of the gate, lease an over priced office space, buy or lease an overpriced company vehicle, put booths up at every major expo, sponsor 15 people , pay some nerds as sales reps, etc....

**Musclepapa John** · 02-11-2015, 10:42 AM

^lol. What? No corporate yacht, helicopter or jet?
Every good corporate plan builds in some padding for the luxury items and party people and then there is bankruptcy reorganization available to do it all over again.

**Professor X** · 02-11-2015, 12:25 PM

Originally Posted by Musclepapa John

The ROCKSTAR a 161ft Trinity valued at on $21 million after it was damaged in Miami last November after a draw bridge fell on it.

Damn, can you spell "Insurance Fraud"?

I wonder how much he paid an operator to drop that bridge on the boat?

**Curt James** · 02-11-2015, 12:40 PM

Originally Posted by DMX

99% of supp companies use other companies to make their products . And of course you'll need more than 20k to make it successful . But to start a company , don't need much . DLB wouldn't need any money to market their products . Use her social media to create the buzz . That's what rich piana did. You can buy his 5% products online at one place only. Then "used" his popularity to hope that independent nutrition stores inquired and brought his products in the store. Bob chic is clueless on what it would cost to create a supp company . And of course I would need over a million to advertise in the dying magazine business, sponsor every MD show and forum page, create 25+ products out of the gate, lease an over priced office space, buy or lease an overpriced company vehicle, put booths up at every major expo, sponsor 15 people , pay some nerds as sales reps, etc....

This is why I like you. lol

**Musclepapa John** · 02-11-2015, 12:46 PM

Originally Posted by Professor X

Damn, can you spell "Insurance Fraud"?

I wonder how much he paid an operator to drop that bridge on the boat?

Florida Department of Transportation had already declared the private bridge functionally obsolete and the local municipality had approved nearly $12 million in repairs and upgrades prior to this happening.
http://www.miamiherald.com/news/loca...le4247864.html

**Curt James** · 02-11-2015, 12:50 PM

^^^^ Perfect cover! ;-)

**Musclepapa John** · 02-11-2015, 12:53 PM

Originally Posted by Curt James

^^^^ Perfect cover! ;-)

lol, with a net worth of $2.5 billion I think he could pull the plug on a $20 million yacht and it not hurt much

**Professor X** · 02-11-2015, 01:05 PM

Originally Posted by Musclepapa John

Florida Department of Transportation had already declared the private bridge functionally obsolete and the local municipality had approved nearly $12 million in repairs and upgrades prior to this happening.
http://www.miamiherald.com/news/loca...le4247864.html

\
Hey, nobody said he was stupid.

The man who can gain that much money, is smart enough to read the same info you did.

**Musclepapa John** · 02-11-2015, 01:15 PM

Originally Posted by Professor X

\
Hey, nobody said he was stupid.

The man who can gain that much money, is smart enough to read the same info you did.

LOL. $2.5 billion off an energy drink is indeed smart

**Poptart** · 02-11-2015, 07:09 PM

LOL...well...that would be a good start...but not even a dent into having any real shot at launching a company. Were talking MILLIONS these days...and thats no guarantee, or course."

That's a completely ignorant statement or it's being taken out of context. Millions? Give me a break. I know quite a few supplement companies that were started for a lot less than a million, hmmm, let me see Species? Pretty sure Dave didn't have an extra mil hanging around? I know for a fact Aaron and PJ didn't have a million or close to it when they launched Blackstone and then Prime. And you can probably add BSN to that mix as well.

DMX's comments are dead on…… Bob C is a putz…...