Starting a soap company, like any
business, requires a lot of research,
planning and preparation. Most
likely you already make
homemade soaps if you are
considering starting a soap
company. Handmade soaps are
growing in appeal because of the
growing movement for all natural
and organic products. Consumers
also are seeking to buy locally. In
addition to the handcrafted, local,
and natural appeal, handmade
soaps often are given as gifts in
baskets for special occasions and
holidays.
Difficulty:
Moderately Challenging
Things You'll Need:
Business plan
Legal documents
Insurance
Soap-making equipment
Digital scale
Packaging
Interactive e-commerce
website
Instructions
1. Research carefully your
business idea. Based on your
research, put together a
businesses plan. Include a
mission statement, description
of your business, analysis of the
market, analysis of the
competition, current financial
documents, projected financial
outlook and any documents
you will need to establish your
business.
2. Establish your business as a
legal entity. Soap companies
may be required to have
special licensing in certain areas.
Consult your local Small
Business Administration office
or a lawyer to ensure that you
have filed all of the necessary
documents at the local, state
and federal levels.
3. Research possible insurance
options. Because you will be
selling a personal care product,
you will want insurance to
protect yourself from claims.
Consult a local insurance
provider to determine your
options based on your business
model.
4. Acquire any soap-making
equipment you may need to
take your soap production to a
larger scale. Purchase books on
soap making if you are
unfamiliar with the process.
Gain a level of proficiency
before selling any of your
product. Basic equipment may
include bowls, mixer, measuring
cups, spoons, double boiler, and
molds. Locate a source for your
ingredients. If your products are
all natural, consider finding a
local farm as a source of your
herbs and fragrances. Use the
local source to market your
product. You also will need a
digital scale and creative
packaging. Purchase supplies
for packaging and experiment
until you find a creative way to
present your soap.
5. Locate venues to sell your
products. Farmers markets,
craft markets, retail stores, local
day spas and bed and
breakfasts are all potential
markets. Meet with the owners
face to face to discuss your
soaps and pitch them on the
benefits of using your soaps in
their service businesses.
6. Design a website with the
assistance of a web designer.
The website should be an
interactive e-commerce
website. Provide a way to
purchase the soaps online.
Include a forum to create a
community atmosphere on
your website. Use the feedback
on the forum to improve your
soaps. Blog regularly to keep
your content fresh and provide
your customers with
information about your soaps
and the handcrafted soap
industry.
