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Sports Nutrition Business - Which Location in USA?

ManuelMMMManuelMMM subscriber Posts: 1 Member
Dear all,

I am planning to start my own business in the field of sports nutrition (B2C) using (r)evolutionary ingredients.

Where do you see the best location to start such a business? I thought about LA, NYC and generally all the big cities down the coasts (also including Houston and the ones at the big lakes).
Some background information:

• The customer focus is on health-, body- and environmental cautious people, most likely
upper middle class or higher (30-50y).
• Distribution is planned via Internet and a factory sale. Later I will approach local gyms and
body shops. The concept of a fully equipped retail store has to be evaluated later.
• Major raw material supply is most likely coming from the southern states or Canada.
• Production will be via contract manufacturing or only the last (unsophisticated) production
step will be carried out in my facilities.

I have also a question concerning Financing:
I am not yet at the point of being able to provide a proper calculation but I would like to know if there exists any rule of thumb for the industry?

I have saved $50k so far and will be able to add another $50k (slightly increasing) annually. It was always my objective to start my business without any external funding but from what I have learned in my first internet researches, I am very far from something solid. There might be the chance though to gain support from the company I am currently working for – since I know the management and the companies’ ethics I would prefer that over any other external investor.

Looking forward to your inputs.



  • Options
    Ryan O'BlenessRyan O'Bleness administrator Posts: 1,137 Site Admin
    edited March 2017
    @ManuelMMM, I think looking into the bigger markets is a good idea, but those markets are also going to be much more competitive and hard to break into. After doing your market research and target audience analysis, I would maybe look into launching in populous cities, but those outside of the top 15 or so. Maybe not New York City, LA or Chicago, but maybe look into places like Denver, Detroit, Boston, Nashville, Portland, etc. 

    I guess it depends on a couple of factors. First and foremost, you have to make sure there is a demand for such a product in the city you launch in. Secondly, if you have to live in this city to get your business off of the ground, make sure it is a place that fits you and where you think you'll be happy in. Third, identify at the competition in each city. Fourth, figure out the compliance rules that must be met for your product in that state, as well as from federal governing bodies, such as the FDA. I would also look to see if the city you choose has businesses you could partner with and cross-promote each other's products, as well as any grassroots marketing opportunities. 

    You may even want to start remotely, selling the products online, and then you can capture data from your website and analytics tracking that tells you what geographic areas and cities are buying your products most. You could add a question about location to the form that customers fill out when purchasing online. With that data, you'll know which city you can launch a brick-and-mortar store in. Of course, you would need to follow all proper e-commerce protocols, with security as the top priority. You'll also need to be in compliance with any shipping regulations regarding dietary substances. 
    Ryan O'Bleness
    Community Manager
    StartupNation, LLC
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