How to Start a Subscription Company

How to Start a Subscription Company

Subscription companies are a new, exciting market!


It’s still early in the subscription company industry so it’s a great time to create your own. From razors to vitamins to stickers, you can make a subscription out of any product.

But the subscription market is heavily regulated so you’ll need to follow the law closely. Here’s what you need to know…


1. Start your company

If you’re operating a business without registering as an LLC or Corporation, you’re taking a big risk. Your personal assets can be taken to pay your business debts. That means you can lose your car, house, and bank account on a product injury, a bad business deal, or a freak accident. Is it likely? Probably not. Is it worth all that risk to save a few hundred bucks on registering? Definitely not. Register your company with the state and follow certain formalities, so only your company assets are at risk.

Youʼll start by completing the state paperwork to register your entity. First, you'll need to decide what kind of entity is the best fit for you. If you haven't decided yet, check out our guides to Sole Proprietorship, Partnerships, LLCs, C Corporations, and S Corporations.

Now you're ready to register. If you are registering an LLC, the form is usually called Articles of Organization. If youʼre forming a Corporation, the form is called Articles of Incorporation. You can find these on your stateʼs corporation agency website. Youʼll also need to choose a registered agent, principal place of business, and business purpose. Keep in mind that all of this information, including your address, will be public.

Tip: Call in your business attorney if you’re not sure which entity is the right fit for your company.


2. Lock down your brand

A trademark allows you to own your brand. It means you're the only company who can use your company name, logo, slogan, domain name, personal name, product name, or hashtags. Here's why it's key: without it, you can be sued, forced to rebrand, or have your customers stolen by copycats.

Trademarks give you the exclusive rights to use the name nationally. So if someone else registers your trademark, they’ll own the rights to your name nationally. You'll only be able to use it in your geographic region (typically your city). That's not ideal!

Think about how many brand pieces feature your company name: your website, social media, business cards, products, marketing materials, press links, inventory, etc. If you want to operate nationally, you'll need to change all of that + pull back all inventory with the brand on it, or possibly pay monetary damages. You'll lose customers, money, and valuable momentum.

Bottom line: if you’re building a brand, you need to own your trademark.


3. Find your products

If you’ve read our popular blog post, How to Start a Business, you have a plan for what you’ll sell. Let’s take it a step further. Ask yourself:

Will you make these products?

What supplies or ingredients do you need?

How much does it cost to make the products?

Where will you buy the products?

At what price will you buy the products?

At what price will you sell the products?

Make sure the numbers add up before you commit to your products and supply system.


4. Create a website

It’s 2018 so you need a gorgeous branded website to attract customers + convert them to buyers. You’ll also need a personalized subscription terms + conditions to secure your customer service policy.

Thinking it doesn't matter? Think again! Your online policies have a big impact on customer happiness and your bottom line. Plus, they'll need to meet certain legal requirements to prevent fines and lawsuits. It’s especially important for subscription companies because some states, like California, have laws about what your policies must say.

Your policy tells customers what they need to know about signing up for your subscription. You'll want to spell out the rules for placing orders, how they’ll ship, and how to cancel your subscription.

Fun fact…those FAQ pages may be helpful but they’re not binding on customers. You need to create a feature that requires customers to agree to your Terms of Use before placing an order.

Need a subscription terms? We offer a simple subscription policy that hooks up your website with exactly what it needs. If you want to talk more about subscription policies, start with a free consultation.


5. Promote your company

There are so many ways you can market your brand. You can use instagram, Facebook, Snapchat, Twitter, YouTube, email newsletters, and influencers to promote your brand online. Find out where your customers are online and join them!

You can also check out tradeshows and trade organizations for your industry.



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