How to Start a Soap Making Business & 11 Tips for Success

If you want the best tips on how to start a Soap Making Business and be successful, this article will really help you.

It explains a lot about Soap Making as a business and exactly what to do and how to be successful.

 

Why Start a Soap Making Business Opportunity

Perhaps you’ve heard this request as you’re walking out the door to do your weekly shopping.

Hey, we’re almost out of soap. Would you mind picking up some soap while you’re out?

Sure, you reply, no problem and so out the door you go to your local retailer.

Just as you’re about to check out you remember that final request and so you head over to the personal hygiene aisle where deodorants, hair shampoos, conditioners, etc. all line the shelves.

There amongst all of these personal hygiene products are the various soaps available for sale.

The soaps lining the shelf offer you choices.

There are bar soaps, liquid soaps, shower gels, body washes, fragrant soaps, non-fragrant soaps, aromatherapy soaps, etc.

Who knew that buying soap could be so difficult and require so many decisions?

What’s a shopper to do?

 

Importance

As we approach the topic of how to start and succeed with a soap-making business, perhaps a quick discussion about different types of body cleansing products would be helpful.

The main purpose of soap is to help get rid of the dirt that may be on the body’s skin.

The action of bar soap is to dislodge the mixture of dirt, sweat, and your body’s natural oils that settle in on the skin.

The bar soap breaks apart this oily layer and along with the action of the water rinses the various particles away from your skin.

Body wash provides the same action but may contain other ingredients that are added to the product to help treat some common skin conditions.

Body wash also addresses any dryness of the skin or flakiness and helps to unclog the pores of the skin.

Body wash can also restore to the skin needed moisture that may have been lost when the bathing process has been completed.

The action of shower gel cleanses the skin but does not have the action of the body wash in that it does not have any moisturizing ingredients.

Shower gel can be defined as a thinner and as such does not remain or cling to the skin.

Regardless of what soap or form of soap you use, the ultimate purpose of the cleansing action of soap is to rid the body of dirt, grime, and promote the body’s skin to create natural oils.

Washing the body is important to the health of the human body’s biggest organ…the skin.

 

Personal Story

When growing up the holidays were a significant part of our family life.

Underneath the tree was a variety of differently decorated packages that were gifts from one family member to another.

Coming from a family of 7, the number of packages bulged out from beneath the tree and spread out to the surrounding area of the decorative skirt and beyond.

I remember one Christmas morning at the age of 14, I received probably the most exciting gift that a young 14-year-old boy could receive.

It was a bar of soap. However, it wasn’t just any ordinary bar of soap it was soap on a rope and the brand name was Hai Karate.

After watching all of the various commercials about Hai Karate and the fragrance causing the women to go crazy, I couldn’t wait to put the commercial to the test.

Of course, there’s probably not enough soap on a rope or fragrance that will overcome my lack of self-confidence, being overweight, and dressing like a complete nerd.

At least I was clean.

 

11 Tips to Becoming Successful with a Soap Making Business

 

1: Wake up and Smell the Suds 

You have enjoyed making bars of soap and people have complimented you not only on the packaging that you’ve used but the beautiful fragrance of the gifted soap.

You’ve decided to take their advice and start a business.

However, before you lather off and make the world a cleaner and fresher smelling place, it is important to wake up and smell the soap suds.

Specifically, the difference between a hobby and a business is as night and day.

The hobby is more of a pastime and a welcome distraction. Business, on the other hand, is about making, marketing, finding customers, and selling that product, etc.

In other words, a business is more intense, and its success is dependent upon your hard work.

Therefore, yes you enjoy making soap; however, remember that the majority of your time is going to be spent marketing and selling rather than making soap.

 

2: One Soap Bar at a Time

The first major step that should be taken when starting to create your business and achieving success is to formulate a business plan.

A business plan is a narrative that outlines the vision and mission of the business owner. It is a well-thought-out plan of action to make the company successful.

Elements of the business plan should include an executive summary, marketing plan, the customer need to be addressed, potential employees, etc.

It is the blueprint of how the business will operate.

The plan can also identify what the strengths, weaknesses, opportunities, and threats are as it relates to the company.

The business plan is a dynamic document and can be changed or modified as needed to adjust to varying circumstances.

There are online templates that can be followed as an example.

 

3: Red Ribbons

Just as your soap packaging may be decorative and tied with various colors of ribbons, there are red ribbons associated with the start of your business.

These red ribbons are the possibility of needed permits and licenses required to operate as a business.

Therefore, it is important to check within your state of operation as to what business licenses, permits to operate, zoning laws, etc. are for your community.

It is critical to address these issues in the now so that when sales and revenue are generated, it doesn’t come back to haunt the business owner in penalty fees, noncompliance issues, etc.

 

4: Equipment

Perhaps, the equipment that you utilized to fulfill your enjoyment of the hobby of soap making was already found in your home.

However, if stepping your hobby up to the business level, you may sooner than later need to invest in more industrialized equipment to facilitate the process of making your soap.

At a minimum, you have most likely used a blender, microwave, various molds, mixing cattle, labelers, and wrappers.

Soap-making equipment for business use can sometimes be found in local stores or on the internet.

Options include new or used equipment that is in good shape.

Also See: How to Get Into Copywriting to Make Money and Assets to Buy in Your 20s.

 

5: Branding

An important part of any business is brand name recognition.

Specifically, the ideal scenario for a soap-making business owner is your product coming to mind when soap is used or needed.

Therefore, as a budding soap business entrepreneur, it is important to have a uniqueness to your soap product.

This can be through the variety of fragrances that are offered, the way the product is wrapped in special unique packaging, or perhaps just the added elegant touch of the bar of soap is wrapped with a unique colored or patterned ribbon.

Another option to distinctively package a bar of soap is through a decorative box.

Through packaging, the fragrance, uniqueness of the bar of soar, etc. all lead to carving out your niche in the soap-making business.

 

6: Vendors

An important part of any business is to have a reliable and cost-effective supplier of the various ingredients that are needed to make a product.

The soap business dependence on suppliers is just as equally important.

It is important to find a supplier who will work with you on a timely basis and is reliable in fulfilling their orders.

Also, business competition is a great way to keep everybody fighting for your business.

It is best not to lock yourself into one supplier all the time. Partner with these business vendors and see if reduced pricing can be accomplished.

Any reduced pricing for the ingredients that doesn’t compromise the quality of the product will help increase your profitability.

 

7: Inventory

An important part of any business is inventory. This can be accomplished by keeping track of what bars of soap seem to be more popular than others.

Tracking can be accomplished through various software programs and when a particular bar of soap gets to a certain inventory level, this should generate a work order for that particular bar of soap to be generated.

 

 

8: Pricing

When it comes to pricing you want to make sure that you balance the tight rope between overpricing and underpricing your product.

The best way to do this and remain competitive is to look at the pricing of your competitors for a soap that is fairly equal in design, fragrance, etc.

Another way to set the correct price is through cost analysis.

In other words, what does it cost you in time, ingredients, use of equipment, overhead issues, etc. to make one bar of soap?

When these figures are calculated then add on your profitability margin. This profit per bar can range anywhere from 10% on up.

Remember not to price yourself out of the market.

Talking about starting businesses, below are some businesses to start that can bring in good money if done right:

• How to Start a Lip Gloss Business
• How to Start a Knitting Business
• How to Start a Pet Sitting Business
• How to Start a Lawn Care Business
• How to Start a Transportation Business
• How to Start a Painting Business
• How to Start a Lash Business
• How to Start Commercial Cleaning
• How to Start an ATM Business

 

9: Marketing

Marketing is one of the significant pillars in the successful operation of a business.

The constant thinking of the entrepreneurs should be is how to get in front of potential customers and stay in front of existing customers?

Marketing strategies can include using your product and allowing the fragrance to permeate your sphere of influence, giving away samples of your product as often as you can, getting in front of large groups of people, etc.

If you have an advertising budget you can advertise online, print media, radio, etc. Of course, the best advertising is by word-of-mouth.

It is also important to be in front of people as much as possible. Involvement with local associations or groups within your community can be beneficial.

Some of those groups, comprised of business leaders, could include being a member of Soroptimists, Rotary, and Kiwanis Club, etc.

This will allow you the opportunity to meet and greet other business owners and promote your product whenever given a chance

 

10: Location

There are many options for a new business to consider when thinking about locating a business for its customers.

The traditional location would be a bricks-and-mortar store in which the store is located near other places of business that enjoy considerable foot traffic.

The advantages of a physical store would be a presence within your community and the disadvantages would be overhead costs.

Another would be an online presence. You would need an inviting and well-developed website with a considerable engaging narrative about your product utilizing certain keywords.

These keywords, when searched by customers, will hopefully direct them to your website. Additionally, with a website, you would need high-resolution pictures of your product.

Also, if zoning laws allow and there are no homeowner’s association restrictions, the individual may be able to offer their product from their home.

As the final option, it could be a combination of all of these venues.

 

11: Insurance

Insurance is like carrying an umbrella even when it is not raining.

During those non-rainy times, the umbrella is not needed. However, when it rains you are prepared.

For your business, you need the umbrella of insurance.

It is best to talk with your insurance agent and take out needed coverage to protect you and the company from various issues that may arise in the operation of a business.

Especially, in the cosmetic and health and beauty industry, there is always a chance that a particular ingredient within the product may cause or seem to cause an allergic reaction.

Therefore, a robust insurance policy must be taken out on you and your business.

 

Conclusion

As of late, the emphasis on personal hygiene and in particular the washing of hands has become a significant emphasis in our society.

The reality is that soap is soap and helps to wash away the dirt and grime from all parts of our body.

On the other washed hand, for some individuals, especially those in the soap-making business, soap is seen as more than just the washing of the body.

For them, washing with soap is an experience.