Step 1: Formalize The Concept
When you have your concept thought out, the next step is to formalize it and determine exactly how you want to turn it into a reality.Writing down your thoughts can make it easier for you to comprehend all of the questions and concerns regarding your concept. Having a business partner is really beneficial because it ensures that you and your partner are on the same page and that you are both aware of what your goals are for the brand. Additionally, it may prevent you from investing in the wrong way. How you tackle any problems that may arise with your brand will decide your company's success as a whole. Because of this, you will need to establish a positive and growth-oriented attitude and have the ability to articulate a unique vision for your company.
Step 2: Research Your Market
It's critical to determine your target audience before launching a new brand. If you don't know who your consumers are, how to get in touch with them, or what they're searching for, your business might fail even if you're the greatest idea or vast knowledge of what you do. Learn (not copy) from your competitors. Product creation should always begin with an in-depth knowledge of your target market and a laser-like concentration on how to get a product to market. Be sure to explore the market to determine if your concept is new and unique to you and your team or if it is already being used by someone else. It's vital to notice not just what products are already on the market similar to yours but also how those products are being marketed, what pricing models are being used, and any other relevant information that might assist you in developing a product launch strategy.
Step 3: Research Key Ingredients
Once you have conceptualized the idea and done market research to compare competition's ingredients and quality, the next step is to look for key ingredients you want to use in your product. For instance, if you plan to launch a moisturizer, you'd want it packed with ingredients that deliver intensive moisture to the skin to keep it hydrated and fresh. Your research should revolve around ingredients such as science-backed studies to ensure there are no issues with the legality of their purpose in the first place. We recommend finalizing the top 3-4 ingredients as going with a high number of ingredients will lead to increased cost.
Step 4: Focus On Product Development
There are many factors to consider in the product development stage. It would be best if you dcided what top 3-4 ingredients will be used in your unique formulation and what should be their percentages, strength, and dosage. You'll also have to decide what should be the final form of your product since you have many options, e.g. tablets, liquid, cream, capsules.
Step 5: Focus On Unique Selling Points
Your target audience makes a buying decision based on what they see. For instance, a vegan won't buy a skincare product that uses goat milk for a moisturizing effect. Even the “Made In USA” stamp on products means high quality. The outstanding health and safety requirements that the United States of America sets on its manufacturing facilities help build trust among consumers. One consumer research found that 80% of people who buy American goods feel that the products are manufactured under better working conditions than those made in other countries. In fact, consumers don’t hesitate to pay 10%-20% for a USA-made product simply because of high safety and quality standards. Therefore, you need to choose what should be your selling points, e.g. Cruelty-Free, Halal, Dermatologically Test, Diversity-Owned, or Vegan Capsules, etc.
Step 6: Decide On Business Model and Manufacturing Strategy
Since the decisions about your business model and your manufacturing model go hand in hand, it is essential for you first to select the appropriate business model for your requirements and then select a manufacturing model that is tailored to your company. After all, before you can choose how to organize your manufacturing strategy, you need to have an accurate estimate of the quantity of the products that your brand will sell. For instance, you can go with a natural supplement manufacturer, wholesale skin care private label services, or custom manufacturing services. Because starting a manufacturing operation might require a significant cash investment, it could be best to go with private label or contract manufacturing.
Step 7: Find A Reputable Contract Manufacturer And Start The Discussion Phase
Finding a reliable contract manufacturer could be a painstaking task. So, do your due diligence before choosing the right contract manufacturer. It means discussing everything from formulation, ballpark costs (starting budget could be as low as $3,000 for the first product), and other factors that go into the contract manufacturing process. And please make sure to sign a Non-disclosure Agreement (NDA) before sharing your formulation.
Step 8: Contracting Phase
It is imperative to discuss specific responsibilities with your contract manufacturer, such as formulation calculations, stability studies, label & packaging design & content, determining the expiry date of products, shipping, Certificate of Analysis (COA) and others. While you can ask your contract manufacturer to take care of everything for you, just keep in mind that it will cost you more. The best approach for a brand owner would be to share the load of a few responsibilities – it’ll reduce the overall cost and help them gain experience in their respective market.
Step 9: Conduct Market Testing
Instead of putting all eggs in one basket and trying to go ALL IN, you have to ensure the product is actually going to work. This is where market testing comes into play. For instance, if you are selling custom skincare products, try to go for small scale production from a reputable contract manufacturer instead of a production order of a big batch of skincare products. Dip your toes in the water and see if it works. Here are some of the advantages of market testing:- The ability to accurately identify the target audience
- Feedback from targeted customers that is objective and critical
- An understanding of the actual demand for the product and the modifications that need to be made before the product is launched in full-scale production
- A better insight into what the customer is willing to pay for your product
- Insight into the demand for your product
- An understanding of how to make changes to your advertising and marketing plans
Keep in mind that market testing may be done on a scale that is as little or as large as is appropriate for your company and your finances. It is usually best to begin on a modest size with a manufacturer that operates on a smaller scale. In short, investing your time and resources into doing good market testing involves going through a period of trial and error. But in the end, it will make your business more efficient and profitable without exposing it to the risk of suffering substantial losses.