New year, new business!
If you’ve been toying with the idea of turning your soap making hobby into a real business, consider this your sign.
This is the perfect way to make a little extra money on the side while doing something you enjoy. Plus, most professional businesses start out as a side hustle, so who knows where this business might go!
So let’s break down exactly how to start your own soap business!
Contents
- How Much Does it Cost to Start a Soap Business?
- 1. Do You Have Your Soap Recipe Perfected?
- 2. Market Research
- 3. What is Your Unique Selling Point?
- 4. Create Your Company Name
- 5. Branding and Packaging
- 6. Find Your Suppliers
- 7. Regulations
- 8. How Are You Going to Reach Your Audience?
- Conclusion
How Much Does it Cost to Start a Soap Business?
Starting a soap business doesn’t have a fixed cost, as it largely depends on what you are spending your money on and the businesses scale.
The basic costs you need to consider include soap ingredients, equipment, CPSR assessments, and where you plan to sell your products, such as an online website or at markets.
But if you want to have a more developed business, you will need to also factor in packaging, branding and marketing costs.
By starting small and scaling up, it is possible to keep initial costs manageable.
1. Do You Have Your Soap Recipe Perfected?
Before we get into how to start a soap making business, let’s look at the fundamentals. Can you make soap?
I know it sounds obvious, but make sure you are confident in your abilities! If you want to test yourself, try some of our many soap recipes! From cold process recipes, to melt and pour recipes and hot process soap recipes, we’ve got loads for you to try!
Don’t just copy other soap makers! This is a crowded market so create something unique that will stand out.
Test Your Recipe
The handmade soap should be at the centre of everything you do. Create your product and test, test, test until it is perfect!
Don’t just test the soap yourself and I’m not talking about giving it to your friends and family. Try giving the soap to friends of friends, or the public so you can get an honest opinion from someone that isn’t afraid to hurt your feelings!
You need honesty, otherwise your product won’t be the best it can be!
2. Market Research
It is important to understand early on who you are going to sell your products to. This is going to influence a lot of your decisions along the way, as your ultimate goal is to reach your target market.
Your target audience can be anyone from your friends and family to a specific demographic. Narrow it down as much as you can. The broader the range, the harder it will be to find the right people.
Who Are Your Competitors?
In the soap making world, competition is everywhere.
It's crucial to identify your competitors so you can understand what they sell, where they sell it, what works for them and what they are missing.
Once you’ve done that, you can identify their strengths and focus on what you can do better to attract customers to your brand instead of theirs!
Where Are You Going to Sell the Product?
In a world where online shopping is so popular, you might think that that is the only option. But it’s not!
While having a website is great, you could also sell your soap in stores, to friends and family, and in markets.
Think about who is going to be buying your soap, what is the best way to reach them and which method of selling you are most comfortable with. There’s no point using TikTok shop if you have no idea how to use it or selling at markets if you struggle to sell face to face.
3. What is Your Unique Selling Point?
A unique selling point (USP), is the one clear thing that makes your business different and better than the alternatives. It is the main reason someone should choose you instead of competitors.
So what could your USP be?
It can be hard to find a truly unique selling point in this market. But there are a few different places to start from.
You could start by looking at the location you are selling in. Are there any other soap companies? Maybe focus on standing out from them first, if you are selling locally.
Another way to figure out your USP, is by solving a problem for consumers. Are your products for people who struggle with acne prone skin? Are they made for sensitive skin types?
Alternatively, you can focus on a certain niche like being 100% eco friendly, only selling organic soaps, having really creative and artsy soaps, or using unconventional ingredients.
It’s so important you find a great USP. It’s how you will stand out in the market!
4. Create Your Company Name
Take a long time to think about this and try to not be too restrictive. You never know what your company might expand into in the future! So don't limit yourself with your brand name.
For example, don’t put ‘soap’ in the name if you may expand to candle making or skincare. Similarly, avoid using your town/city in the name if you may move in the future.
Nowadays, there are loads of tools to help you come up with a brand name like AI. But make sure it makes sense for your branding and make sure it is unique!
It is really important to check that no one else has that name trademarked and no one owns the website name! If someone else owns the name, you’ll have to think of something else. You can check for a trademark on the government website here: Search for a trade mark - GOV.UK
5. Branding and Packaging
Your brand is who the company is as a whole. It communicates your values, personality, and what customers can expect from you. When building your brand, it’s essential to design a logo that reflects your business identity.
Consistency is key! Your branding should be cohesive across all platforms, including your website, packaging, social media, and marketing.
Your packaging doesn’t have to be expensive, sometimes less is more! However, this depends on your brand style. If your brand embraces maximalism and bold design, then more is more! It’s also important to consider your niche. For example, if your brand focuses on being eco-friendly, your packaging choices should reflect this, such as avoiding unnecessary plastics.
Finally, your brand design, logo, and packaging should align with your pricing. If you plan to charge higher prices than competitors, your branding should reflect quality and value. Likewise, don’t create a luxury brand if you are going to charge very low prices, it can be confusing for customers.
6. Find Your Suppliers
Not only do you need suppliers that will provide high quality products, but they also need to be reputable, trustworthy, transparent suppliers that will be there for you along the way.
At The Soapery, we help hundreds of small businesses! We offer high quality ingredients at a fair price and we are ready to answer any technical questions you have about products, sourcing, ethics, sustainability, processing and more!
7. Regulations
Now I know this is the most boring part, but it is so important to follow all of the regulations to sell soap!
But wait! Have you perfected your recipe? If you haven't, go back to the start and make sure you are happy with your final recipe. Once you go through all of the regulations, it will be hard to make any changes!
If your recipe is 100% ready to go, let’s look at the regulations…
So what regulations are there?
Here’s a list:
- Product labelling
- Restricted Ingredients
- Cosmetic Product Safety Report (CPSR)
- Notify the Office for Product Safety and Standards
- Good Manufacturing Practice
- Product Information File
- Batch Records
- What Information Must be Available to the Public Upon Request?
Don’t be overwhelmed by this list, our guide linked above will help you through each stage. But most importantly, don’t avoid doing these things! They are the most important part of getting your homemade soap business up and running!
8. How Are You Going to Reach Your Audience?
Last but not least, it’s time to market your products.
Now you know what you’re selling, who you're selling to and where you're selling your products, it’s time to figure out how to connect with the right people and convince them to make a purchase!
For example, for a younger online audience, social media marketing is most effective. If you're selling in the local area, consider print advertising and participating in local events.
Final Thoughts
Now you are ready to start the new year with a bang! There’s no better time to turn your ideas into reality and start building something you’re proud of.
It may seem like a lot to tackle, but take it one step at a time. Don’t be too hard on yourself if things don’t go the way you planned. There will be problems along the way, but it’s about learning from them and growing!
It will be worth it in the end, when you have a successful side hustle or even a fully functional business!
So start with step one and perfect your soap recipe!
Continue Reading
Now you know how to start your own successful soap business, why not continue reading?
- Want to start your own skincare business? Read our in depth guide here!
- Learn new soap recipes with our alkanet root soap recipe here!
- Interested in using essential oils? Read about the best essential oils for soap making here!
Let us know how your soap making business is going in the comments!
