Tim's BrainQUICKEN Startup

[JRL]

Tim said that all it took him was 2 weeks and $5,000 of credit card debt to have a site up and running and a product ready to be sold (BrainQUICKEN).

Anybody know how he did it? I'm more concerned about how he found the product and whether he private labeled, drop-shipped, etc.

Thanks in advance

[mad111]

Hi,

I second that. I too am thinking about marketing a nutritional supplement but am curious as to one finds a manufacturer -- and one who can find the right ingredients, and who uses stringent quality controls, makes sure the product meets label claims, etc.

Thanks in advance for any help.

[Vagabond]

hey guys,

theres some advice thats been given on the boards about this... def search or look into it a bit.

$5000 is more than enough to get you mostly on your way. I am in the development phase, have had samples to be made, am working on the labels now and will begin manufaturing of the inital product within a couple weeks.

whether or not you can have the product ready for sale within 2 weeks is possible or not i dont know... also don't know how smart that is...

you can find hundreds of formulas you can private label or you can work with a "contract manufacturer" some will only encapsule or press whatever formula you have.. some will only allow you to work with their current inventory, some will let you supply raw materials and some will have consultants you can work with... those are ideal. id say most will work with whatever formula you have and will look into getting the raw materials for you, not all will have consultants though.

The LLC is a bit of a process and can be quite expensive in some states. i.e. $500 filing fee in Illinois... here in NY is costs $200. But in NY you have to file 2 public notices about your LLC formation which is pretty ridiculous and a complete waste of my $450.

Its a good idea to talk with an accountant and a lawyer and since youre selling an ingestible product liability insurance is prob mandatory. right now im trying to find out exactly what my liability would be and if i need insurance right now. Since i'm just starting I don't really have tons of cash and assets to protect so as long as my personal assets are not liable I will prob wait to make sure I have a product that sells.

Shipping you can use fulfillment centers or do it yourself. I plan on doing it myself initially.

[mad111]

Hi Vagabond,

Thanks so much for your help. If you happen to have any contract manufacturers you'd recommend I'd love to hear about them.

Regardless, good luck with your project. Keep us posted as things grow and get up to speed!

Thanks again.

[TimW]

Originally Posted by Vagabond

But in NY you have to file 2 public notices about your LLC formation which is pretty ridiculous and a complete waste of my $450.

Its a good idea to talk with an accountant and a lawyer and since youre selling an ingestible product liability insurance is prob mandatory. right now im trying to find out exactly what my liability would be and if i need insurance right now. Since i'm just starting I don't really have tons of cash and assets to protect so as long as my personal assets are not liable I will prob wait to make sure I have a product that sells.

That's what an LLC does...protects your personal assets from liability. You're looking at marketing an ingestible product. If just ONE person has a reaction, that $450 will be the best money you ever spent.

[zoot]

I once created an LLC in New York and when researching the publication clauses I found that that you are not absolutely required to publish. It's only if you want to sue someone.

You can even defend your LLC against a lawsuit without having published but if you want to initiate one you must have the publishing taken care of. Your risk is if the statue of limitations is drawing near for the suit you want to file.

The technical language sounds scarier. It says you have to publish within 120 days or you are suspended. What does it mean to be suspended? You can't bring an action to the courts of New York. However, you can get the suspension anulled at anytime by simply publishing and then you can sue away.

[Vagabond]

Originally Posted by zoot

I once created an LLC in New York and when researching the publication clauses I found that that you are not absolutely required to publish. It's only if you want to sue someone.

You can even defend your LLC against a lawsuit without having published but if you want to initiate one you must have the publishing taken care of. Your risk is if the statue of limitations is drawing near for the suit you want to file.

The technical language sounds scarier. It says you have to publish within 120 days or you are suspended. What does it mean to be suspended? You can't bring an action to the courts of New York. However, you can get the suspension anulled at anytime by simply publishing and then you can sue away.

maybe theres a technicality but with living is such a litigious society I don't want to take any chances and spend 100x the publication expenses to battle it out in court. plus, apparently having an LLC doesnt automatically guarantee personal liability protection if certain criteria arent established or maintained.

Things like separate checking accounts and finances, detailed operating agreement etc. even if youre a sole-member LLC like mine. There might be a time you are forced to prove your LLC is truly a seperate entity to get liability protection.

[Vagabond]

Originally Posted by TimW

That's what an LLC does...protects your personal assets from liability. You're looking at marketing an ingestible product. If just ONE person has a reaction, that $450 will be the best money you ever spent.

I absolutely agree but thats what my $200 filing fee was for... who actually reads those public notices in the paper? A useless requirement like that is just another thing that hinders starting a small business. The process should be as easy and cheap to begin as possible... $450 that couldve been spent on PPC marketing, or getting direct mail pieces printed.

[JRL]

Thanks for all your responses.

I'm an Accountant and I can tell you that while an LLC does protect you from personal liability in most cases, the courts can still pierce the corporate veil if you're found negligent, fraudulent, etc. Basically, an LLC, a "C" Corp., an "S" Corp., etc., doesn't protect you from being a moron.

Vagabond - would you mind divulging a little more information with respect to where to find private label items?

Thanks in advance!

[Vagabond]

JRL - thanks for that. when i read that there were exceptions to the personal liability i wasn't sure if that meant in respect to certain industries or what that exactly meant... but you've pretty much supported what i've been hearing. im still going to have a lawyer sign off on the label to make sure that liability wise im totally covered.

actually private label items are pretty easy to come across...

literally you can just google "private label supplements" "private label dietary supplements"

for contract manufacturing.. "contract manufacturers dietary supplements"

or check out thomasnet.com for contract manufacturers and companies that private label. many companies do both.