You are probably wondering how to start a natural soap business from home. Here’s some information that would help a great deal.
As we become more educated and more aware of our environment, we tend to scrutinize more into the products that we are using. Are they kind to our skin? Are there any cancer-causing ingredients and are they environmentally friendly?
Who is suitable for this business?
You should have an interest in crafting a handmade product, hands-on, and you’ll need a sensitive nose for discovering scent combinations that your customers will love!
Who is the target market?
Customers who appreciate the quality and luxurious nature of your product, or those who only buy organic or vegan products. Customers who want to know the ingredients in the soap they use. Your customers also depend greatly on the niche you wish to target.
Before you kickstart:
1. Find your niche
As mentioned above, it is important to find your target niche. Each niche has their different requirements for their soap, in terms of design and the ingredients.
2. Learn how to make soap.
Before you can succeed at selling soap, you must become an expert at making it, and refine the technique and formula you want to use. Let your family try the soap. Is it easy to use? Does it smell nice? Does it dry the skin?
Once you are ready, you can start your business plan.
Starting Your Business Plan:
- Decide on your Niche
Before you dive into the soap making business, you’ve got to set yourself apart. The best way to find a niche? Put yourself in your customer’s shoes. Some popular niche markets include wedding favors, organic and baby.
- Develop your special formula
Once you know how to make a soap, it’s time to develop your own special formula. If you want to create a product that stand out from the others, experiment with ingredients like scents, colors, designs, and moisturizers until you create a soap that you think is unique and high-quality.
- Ingredients and Supplies
Start sourcing for a supplier to start your soap business. Shop and compare their price, quality and customer service. There are various soap suppliers in Singapore, to name a few: Singapore Soap, and Massage Supplies. We are not affiliated or in anyway related to them.
- Name your business and branding
Your company name should reflect your line of products. It should be catchy, memorable and marketable. Your company name does not have to include the word “soap”. You can always add “soap” to your tagline.
– Embossing the soap with letters or other forms
– Wrapping the soap in special papers or ribbons
It is important to let your consumers know what ingredients you use to make your soap and not to make any medical or promising claims on your labels.
The following information must appear on an information label: name and place of business (or “manufactured for…”, warning and caution statements if necessary.)
- Determine your price
Price your product so you are making a profit. Take note of the sales channels that you wish to sell or distribute your products to, the margins they are taking. If you are planning to sell it wholesale, the selling price will have to be half of your retail price.
The simple calculation of your products should be:
(Cost Of Goods + Shipping + Labour + Overheads) x 2 = Wholesale price
Wholesale price x 2 = Selling price
Cost of goods: The ingredients of your soap
Shipping: The shipping cost of your ingredients in making the soap
Labour: Even if you are not paying someone to make your soap, you will still need to pay yourself
Overheads: The electricity, water, machines etc for making the soap
- Sales Channels
Think of where you want to sell your soaps. You can start with your family and friends. This is also the best opportunity to gather feedback and information on how to improve your packaging, products design, and pricing.
Online channels: Etsy, Shopee, Qoo10
Offline channels: Public Garden, MAAD (Market of Artists and Designers), Chillax Market
Offline sales channel is a good channel to sell and market your products. It is also the best time for you to take a genuine and sincere interest in your customers and keep your focus on them and their skincare needs. Tell and show them how your products will benefit them. This is the pleasure of meeting your customer one-to-one to sell with your passion. By providing a good service, your customer can promote your products to their family and friends. This is also the time to gather face to face feedback and opinions directly from the customers.
It is fun to make soap, but it is important to set yourself different from other competitors. Don’t be the cheapest soap in the market, making soap is a laborious job, you need to be paid enough for your hard work. Remember to avoid impulsive spending online. Only buy what you need and in small quantities initially. Only splurge if you have a big order from the customer.
Remember, you’re selling an aesthetic experience*. Make sure you stay in contact with your customers, and that they know how to reach you. Ask all of your customers for email addresses, and get their permission to send out a monthly e-newsletter, so you can send them information on your new products, discount codes. Keep working on it and focus on growing your email list!
*An aesthetic experience arises in response to works of art or other aesthetic objects.