Liquid soap making business includes a wide range of processing, packaging and marketing operation. The business also demands extensive market research and marketing strategy. Liquid soap is a consumable item and the demand for it is increasing in rural and urban area both. Total annual soap sale by branded companies is estimated at 14000 tones, while a total soap market is considered to be about 126000 tones.
Liquid soap includes a variety of soaps like liquid detergent, body wash, car wash, hand wash, baby soap, dish wash etc. Every types demand different types of licenses and permissions from different Govt. authority. Entrepreneur having knowledge about chemical consumable industry or having experience in this field can initiate this venture with substantial capital investment.
Plan for Liquid Soap Making Business
Create a comprehensive business plan for liquid soap making business. Determine the type of liquid soap that you will be making. In initiating a manufacturing business it is recommended to have a sample project report in hand. Calculate startup budget with fix and working capital needed. Consider the expenses for legal compliances. Clearly fix your marketing and promotion strategy and expenses. Check the water ph balance of the location where you are going to establish the unit. Choose an attractive catchy name of your product.
Legal Compliance for Liquid Soap Making Business
In initiating liquid soap making business you will need to obtain several licenses from different authorities.
- Fix your company’s ownership pattern and register your business in ROC
- Obtain Pan Card
- Obtain Trade License from Local authority.
- Apply consent clearance for both establish and operation to Pollution Control Board.
- Apply for ISI Mark at Bureau of Indian Standards (BIS) as amended from time to time pertaining to quality, safety and performance.
- Apply for Factory License to your State Govt. authority.
- Obtain sales tax registration from state sales tax department.
Machinery and Raw Material for Liquid Soap Making Business
Start the business in small scale. As your business grows shift to full scale production. Select and purchase machines according to the required production out put. It is advisable to start with a semi-automatic plant establishment. You will need to have mixing unit with stirrer with definite rpm. Filling and sealing unit specialized for packaging. You will need to establish a water treatment plant to treat hard water into soft water.
As per your formula gather raw materials. Purchase only quality raw material from the reliable vendors. Quality product only can be made from quality raw materials. Concentrate on packaging materials with the quality of shelf appeal and ease of use. Attractive leak proof containers will add value to your finish products.
Marketing Ideas for Liquid Soap Making Business
- As liquid soap is a consumer durable item it demands huge brand promotion.
- The most effective media to attract house wives are television and FM Channels.
- Focus on understanding the customer segments in both a data sense and a very human way.
- For extensive market penetration you need to establish a strong dealer network.
- Do some outdoor advertising activities like hoarding, events.
- Concentrate on catch line. It should be clearly describing the product.
- Create online presence of your business.
- Harnessing customer data to understand preferences, buying trends, and shortfalls in conversion or satisfaction are critical.
- Offer annual sales promotion incentive to your channel partners.
- In advertisement focus on the benefits of its usage.
“For Further Reading”
HOW TO CREATE WEALTH and JOBS Through LIQUID DETERGENT PRODUCTION: Micro Enterprise Option in Liquid Detergent Production (Human Survival , Home Based Income and Micro Enterprises series Book 2)