Yes, a soap business, when done right, can be very profitable.
Making soap isn’t new. Some sources trace the origination of homemade soap all the way back to 2800 B.C., when ancient Babylonians handily mastered soap making from fats boiled down with ashes.
The demand for this hygienic necessity will always be high, and there’s a growing interest in natural and homemade varieties of soap.
According to Google Trends, global searches online for “soap” have grown steadily since 2018.
In addition to the obvious interest for soap made with natural ingredients, the focus on zero-waste and environmentally friendly products increased over the years.
Where do I start?
Making soap is a fun hobby that can turn into a full-time business. Homemade soaps, especially those that use organic ingredients or beautiful designs, are a hit with many customers since they are an inexpensive luxury and a popular gift-giving idea.
When I started making soap, there were only a few soapmaking businesses, and we had a great support network. Things changed completely when the covid pandemic started. Lots of people lost their jobs and soap makers popped up everywhere. Some are still going, but most of them closed down. Why did that happen?
They failed because their business model was not strategically planned enough. They did not take the time to be silent and listen to their true calling. For most, it was just a temporary solution, or means to an end.
Making soap is one thing, but selling it is hard work and requires many hours of hard work and commitment. It involves getting your branding right, find your niche, find your target audience, stay ahead of the rapidly increasing new soap businesses, marketing, social media, setting up and manage your company among many others!
To run a successful soap business, you will have to:
- Understand the industry.
- Conduct market research and feasibility.
- Decide which niche to concentrate on.
- Know your major competitors.
- Get insurance.
- Get the necessary professional certification.
- Protect your intellectual property with trademark, copyrights, and patents.
- Get the necessary legal documents you need to operate.
- Write a business plan.
- Prepare a detailed cost analysis.
- Raise the needed startup capital.
- Write a marketing plan packed with ideas & strategies.
- Brainstorm possible ways to retain clients & customers.
- Develop strategies to boost brand awareness and create a corporate identity.
- Create a suppliers/distribution network.
Tips to start, and run a successful soap business.
Always use high quality ingredients and to keep costs down buy them in bulk.
Try and develop your own brand which should state something about you.
Packaging and labelling are very important.
Pricing can make or break your business.
Always have samples available, smelling is by far the best way to attract interest.
To be successful at selling soap, you need to understand your market, and how to reach it. Spread the word about your soaps whenever and however you can, but target your primary market in particular.
Common advertising possibilities include:
- Social media
- Advertisements online and in traditional media
- Business cards
- Sales displays
If you are interested in starting your soap business, we have many options and different packages available.