How to Start Soap Making Business with Nearly Nothing

Do you want to start a soap making business with low investment? If so, read this article to know the steps you need to follow in starting a profitable business in soap manufacturing with nearly nothing

To most people especially women, handmade soap making is a creative hobby. One can turn this hobby into a successful business venture investing small money. In addition to this, this business can also be started at home. The demand for handmade soaps is increasing because more people are scared of using commercial soaps that contain toxic chemicals.

The demand is expected to grow in coming years. Hence, if you looking forward to starting a business with little money from home, soap making is worthy to be considered.

Here below, we list down the basic steps you must follow if you are serious in making money making soaps for existing soap artisans or even for a newbie.

10 Steps Business Plan Guide to Start a Soap Making Business

1. Do Some Market Research

The first thing one must consider while starting a small business is the demand for the selected product in the local community and the buying behavior of the local people. Conducting market research to collect relevant information regarding the demand and supply status locally is a must.

Soap is a fast moving consumer product. It is one of the most dynamic products in the FMCG industry. Hence, you need to be always in touch with the taste and demands of buyers.

Industry pundits predict the volume of soap consumption is expected to cross US$ 24 Billion by 2022. The soap industry in the USA alone generates more than $25 billion in revenues annually.

There are more than 630 companies big and small which operate in the United States at present.

2. Learn the Process of Making Soaps

how to start soap making businessIf you are already a soap maker, you can skip this chapter. For a beginner, it is extremely important to learn and practice soap making before selling to customers.

There are many ways of making soaps. However, broadly most soap makers follow three kinds of processes. They are the cold process, hot process, and melt and pour process.

All the processes though have their own positives and negatives. You can choose one of these processes or a combination of the two or more according to your formula.

For making soaps, you need to procure some equipment. Scale, thermometer, Immersion blender, containers, spoons and spatulas, gloves and goggles, soap molds, etc. are the basic types of equipment you need to buy. Your recurring purchases include oils, fragrances, glycerine base, butter, micas, lye, etc.

3. Decide the Type of Soap to Make

There are plenty of soap types that you can make. It is advised by most successful soap makers is to start with one specific type of soap in the starting phase. Your decision regarding the type of soap should consider certain aspects regarding the demand, type of distribution network like direct, wholesale or retail, institutional selling like hotels, resorts, hospitals, etc. You also need to decide whether your soap will be plant based or animal based.

You can also select niches as per industry requirement like baby soaps, pet soaps, olive oil soaps, shaving soaps, mystical soaps, etc.

4. Create a Business Plan

A business plan, though ignored by most beginners, is extremely critical to start and run a business venture. That holds true for soap making too. Check this guide on how to write a business plan or you can take help from business plan software tools to create your business plan for your soap making company.

5. Select the Name of your Soap Company

Take some time off and brainstorm with different names that can perfectly fit your theme of soap products. One thing not to forget is to check whether there is a similar domain is available or not. Check this guide and know more about the different steps to follow in naming your soap business.

6. Register Your Business

Every state and country offer different types of business formation structures. If you are a beginner with a low budget, start as a proprietorship entity. However. if you are starting on a larger scale and looking for certain benefits, talk to professionals and then decide which one will be the best suited for you. For example, if you are from the United States, forming an LLC will provide you with extra benefits at some extra cost.

7. Licenses and Permits

Talk to your local concerned authority and understand the licenses and permits need to obtain start and run soap making business. Trademark is another thing you might be interested to have if you want to protect your brand.

Associations like The Handcrafted Soap and Cosmetic Guild offers members an insurance program for soap makers in the United Staes, Canada.

8. Setup Soap Making Workplace

You need to ensure space however small it is mainly for three categories of work. One is the administrative work, second is the space for making soaps, and the third is the storage space. If you are making soaps from home, your kitchen will do the purpose.

9. Software and Apps

Having some basic software will not only help you in the smooth running of the day to day work but also will help in understanding your company health status with few clicks. The most important software you must have is Accounting and POS software. There are also integrated soap making software available online.

10. Promote Your Soap Products

If you are staring with a low budget, you have to careful in promoting your soap making business so that not much money is spent. Check this article to know about low-cost ways of promoting a small business. Talk to a professional and create a unique logo for your company.

Create a website of your own by following this guide. You can also check the free website builders to create your website. If you are looking forward to tapping online customers, create an online store or list your product in marketplaces like Amazon, Etsy, etc.