Taking My Business to the Next Level (help!)

[jtbailey1030]

I'm hoping to get some advice from those of you who have been in my shoes and can look back now to where I am.

I've been in business for a little over a year. I currently sell wholesale to 5 retail locations, am gaining a presence online, do craft shows, fundraisers, and other events. I am nearing the point where I'm wondering if it's worth my time to continue to make my soap or if I should outsource, still using my own recipes, so that I can spend more of my time on marketing and sales.

I am serious about making my business successful, but I'm not sure when I should begin to do this. Is it as simple as when I just can't make enough soap by myself or is there other logic to it? Will outsourcing be cheaper than making it myself? I've googled companies out there and have some ideas, but if anyone can name some they have personally used and are happy, I'd value that input as well.

Any thoughts, advice are welcome! Thank you!

 

[Meganmischke]

I am going to first say I don't sell. That said, I have owned a successful business. I sold the business 2 years ago.

If you have only been at it for a year, I don't think your business has reached it's potential. Is outsourcing something that you imagined when you began? What exactly do you consider outsourcing? When I think outsourcing I imagine someone in a foreign country making your goods cheaper than you can.

What do you sell, soap? I guess I would need to know more about your business plan and goals. I don't know if anyone here has outsourced other than hiring help.

 

[shunt2011]

My question would be why are you even thinking of out-sourcing? The reason many of us started business with soapmaking is so that we could make soap. For me the thought of out-sourcing would be why bother. If I don't have the joy of making my product then I'm out...I didn't start soapmaking to start a business, it just happened after time. It's somthing I consider my therapy and something I've put a lot of time and effort into and has actually made some money this year. If you aren't making the product then you are just running a factory in my eyes. These are just my thoughts though.

 

[Meganmischke]

Just another thought, maybe outsource the marketing or something else to free up your time. I personally would want to at minimum directly oversee the production end. The goods are what your company is based on. I would hate for you to compromise quality in exchange for marketing time. Maybe quality won't change but it is a risk.

 

[shunt2011]

Just another thought, maybe outsource the marketing or something else to free up your time. I personally would want to at minimum directly oversee the production end. The goods are what your company is based on. I would hate for you to compromise quality in exchange for marketing time. Maybe quality won't change but it is a risk.

Exactly this. If you are making enough money to think about out-sourcing that's what I would choose to outsource.

 

[The Efficacious Gentleman]

Aye, maybe take someone on to clear up, package, handle certain incoming mail, that sort of stuff.

Also, look at ways in increase production by increasing batch size - not sure how big your batches are at the moment, but there might be something to look in to there.

 

[jtbailey1030]

Thanks for all of your responses.

I think I agree with all of you. By outsourcing, I was thinking hiring a larger, all-natural soap company, to produce MY recipes on a larger scale. Right now, I'm making batches 10 lbs at a time using acrylic slab molds. I don't have a ton of space in my basement. I just bought another 5 lb mold this week which will help a bit.

My idea was to free up my time making it and using my energy to focus on marketing and getting into more store locations. That's my goal...to get my product into more businesses. I love doing craft shows but it's never going to bring in enough money for me to be able to continue to stay home. I don't want to go back to teaching. I don't need to make as much as I did as a teacher, but just enough to help supplement what my husband makes.

I do not want to compromise the quality of my soap. That's what people love about it. Maybe I just need to make more at a time so my batches last longer.

Thank you!

 

[dixiedragon]

I think it might be helpful for you to keep a log for a few weeks and carefully take note of how much time you spend on different tasks. Then see which of those you would be able/willing to have someone else do.

I am wondering if hiring part time help might work? For me, making soap is just not that time consuming. It's kind of like pot roast - there's a lot of time waiting and watching, and not that much time actually doing.

 

[shunt2011]

You absoultely need to make larger batches if you plan on doing larger sales. I pour 4- 5lb molds each time I make a soap. And will sometimes use my 12 lb molds too. Also, if you outsource your product then personally, it's no longer a handmade artisan product in my opinion. Don't know how long you've been selling but it can take 2-3 years for a lot of businesses to break even or make money. There is a large cost to ramp up production to larger batches. Especially if you are buying molds. Fortunately my husband has made most of mine. Also, if you want to make a business out of it you need to put a lot of energy and work into it. I know I've had many weeks where 7 hours sleep was a bonus.

 

[The Efficacious Gentleman]

If you are making a profit and can keep at the level, look at what you would need to expand - renting space somewhere, fitting it out with what you would need to produce the soap that you need to. Work your socks off (as I'm sure you are) until you have enough, or even look at help from the bank if you want to - then expand your production.

Otherwise, based on your other thread, you will be "making" private label soap for people by having another company make (no speech marks) private label soap for you. You will essentially be a re-seller of a private label product. Personally, not a route I would go down.

 

[JustBeachy]

Just my added thoughts, as I think you've gotten some great advice. Too many times people think that by doubling the business they can double their profits. While at times that is feasible, when you start looking at outsourcing, hiring and all the other wonderful things that come with growing a business, the profit margin takes a hit. You need to insure that the increase in sales is enough to offset the increase in costs. That's usually not a straight line projection. You can find yourself selling twice as much product for only a minor gain in net profits.

The easiest answer is bigger pours. It takes as long to mix and pour a 20 lb batch as it does a 10lb. More time to label and package, but nothing drastic.

Good luck with the expansion. Hope it all works out well.

 

[MarisaJensen]

IMHO...

I would hire someone to help with any phone, administrative office work as well as labeling and packaging your products. You will find that you will have more time to make soap. I would invest in bigger molds, and maybe an artist place for you to expand your production. I wouldn't outsource the soap* making, perhaps the labels yes, but not my product.

SoapEquipment.com is a great website that might help you. You can ask them to make custom molds and cutters to make your production go much faster.


I find it a rewarding experience when I've made the product myself and know the quality is at my standards versus someone else making the entire product. Trust me, you can do it. Like JUSTBEACHY said, it doesn't take any longer to make a 20lb batch vs a 10lb batch. I say try to increase to 40LBS (if you can) and you will see a difference in your inventory very quickly.

Edited to fix an error.*

 

[jtbailey1030]

You guys are all great. Thank you for the wisdom and wonderful input.

I definitely do not want to sacrifice the quality and hand it off to someone else. Going to ramp up production and invest in larger molds.

Thank you!

 

[navigator9]

You might want to take a look at Ariane Arsenault's larger batch production methods. This girl is amazing and does it all by herself!

Part 1 http://youtu.be/q6fjQDgpiy8?list=UUMsQ78CkU5UtkA73jGcom3A

Part 2 http://youtu.be/PS8HEAUaNwg

 

[houseofwool]

I have serious lust for those molds. If 2015 is as good as this year, they are on my short list of things to upgrade.

 

[The Efficacious Gentleman]

I have serious lust for those molds. If 2015 is as good as this year, they are on my short list of things to upgrade.

I was looking at them and thinking of my woodworking abilities.......possible, that is for sure

 

[JustBeachy]

I was looking at them and thinking of my woodworking abilities.......possible, that is for sure

Haha, was thinking the same thing. It's the same principle as the molds I posted instructions on building. It'd be a snap to build these. As well as the matching loaf splitter.