Hey every1, I need advice asap I want 2 start a business in making handmade soaps from home to sellwithin my community nothing too big to begin with but is it really that costly to buy the ingredients and tools? I've got a free start up a business course this wed, and would need as much info as i can get .
Want tostart a business
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Overthemoon
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Soap making in and of itself is not the cheapest thing in the world, moreover it takes time and lots and lots of soaping before you are going to make a sellable product. It is not realistic to be thinking about a business when you haven't actually even made a batch of soap.
I would discourage you from starting this type of business, since it does not sound like you have done any research. It typically takes at the very least TWO YEARS of research and development to ensure that you are producing a reliable (and safe) product.
After the investment of 2 years of research, it will probably have costed you at least $3000 in supplies. Business start-up costs are about $5000 if you want to do it right, therefore its not just one of those shoe-in type businesses you can start up out of the blue...
You are better off making a screen-printing business making your own tshirts which can be started for under $1000 and requires much less research and development.
After the investment of 2 years of research, it will probably have costed you at least $3000 in supplies. Business start-up costs are about $5000 if you want to do it right, therefore its not just one of those shoe-in type businesses you can start up out of the blue...
You are better off making a screen-printing business making your own tshirts which can be started for under $1000 and requires much less research and development.
It's definately not cheap for the ingredients and tools. What is the most costly is your time. Making soap isn't something you can just "do". Like Ian said, there other businesses you can do from home that don't take the huge amount of time to learn, test, sample, cost of different tools and supplies as making soap. I've been reading and learning for quite a while and still don't feel comfortable with attempting making a bar of soap.
Deda
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After many many years of making soap I decided to start making soap as a business. The first 2 years, before I started actually selling, I spent between 7K and 10K each year in development, testing, equipment and all the other lovely things you need to start a business.
IMHO there are no shortcuts.
Last year, I finally made a profit. Not a huge one, and I haven't recouped my expenses from the first 2 years, but a profit just the same.
IMHO there are no shortcuts.
Last year, I finally made a profit. Not a huge one, and I haven't recouped my expenses from the first 2 years, but a profit just the same.
I have been making soap and researching almost daily on the subject for two years. I could officially say that if I wanted to sell it, I easily could. It took a lot of notes and trial and error batches, and I cringe thinking about some of the paperweights that I called soap in the beginning. I choose not to sell because I can't see myself profiting anything. I don't have time to make ten 4lb batches with a variety of scent to sell it on a small local basis. Maybe one day, if I can make ten 15lb batches at a time, then I will look further into it. But by my math, I wouldn't even make $2 an hour after all expenses are considered. Sorry to be another downer - but you really should learn to make soap before deciding to sell it. The product will be better and you will have more repeat customers because of that. Good luck, enjoy the business course 
This is a generic thing I've been posting when people are considering selling soap. There's a lot to consider. I suggest soapmakers wait a year at least before selling. It's not meant to be discouraging or anything, but will hopefully give you an idea of all that selling entails.
What are your state & local regs on selling? You'll need a tax ID. Do city zoning laws forbid you from manufacturing in your home? Do you have liability insurance? Some venues require vendors to carry their own liability insurance. You should have it anyway to cover your own assets. Do you need to register as a business with your city, county and or state? Even if you're not required to, you should, in order to protect your personal assets in case of a law suit. Will manufacturing in your home make your homeowner's insurance null & void?
How long have you been making soap & B&B products, & how long have you been testing them? Do you know what your products are like a year down the road? Do you know what the shelf-life is of each of your products? Are you well-educated on INCI labelling & cosmetic regs? If someone's child has an allergic reaction to one of your products & the parents decide to file suit what will you do? Do you have insurance to cover that?
Do you have bookkeeping skills, & can you use accounting software? Will you do your own business taxes or can you afford to have someone else do your business taxes for you?
Consider your responsibility for your products. Consider how many people can come in contact with your products. Your responisibility grows exponentially. It's not just the person who purchased your, say soap. It's everyone who comes in contact with it - the person who purchased, their immediate family, friends of each family member, the extended family members who come to visit. Are you ready for that level of responsibility for what you create?
Many times I have had people buy soap & say it's too pretty to use. People will use your soap in their drawers as sachets, or leave them on the bathroom counter for month & months just to enjoy the scent. Sometimes they stash them away for months to give as gifts. The question then is, "What will your soap be like in 6 months or 8 months or a year? If you haven't waited it out, you don't know.
I purchased a competitor's soap at our local coop. In less than 6 months it smelled rancid, & I tossed it. That angered me:
1. I wasted my money
2. That handcrafted soap was a reflection on the entire handcrafted soapmaking community. Are her customers going to assume that all handcrafted soaps smell funky after a few months?!!
You need to know all the regs. What pushes your soap from soap into the "cosmetic" class & what does that mean as far as cosmetic regs? What pushes your lotion or cream into the drug arena, & what are the regs regarding that?
After you've gotten all that under your belt, what are your state & local regs on selling? You'll need a tax ID. Do city zoning laws forbid you from manufacturing in your home? You'll need liability insurance & that's NOT cheap! Will manufacturing in your make your homeowner's insurance null & void?
These are only a handfull of things to consider. You have a long learning curve ahead of you. You need to learn to formulate & test your formulas. That means researching each ingredient you plan to use - oils, butters, scenting materials (FO's, EO's), & research any additives you plan to use to avoid those that are known sensitisors, or outright harmful to use. While researching, you'll need to figure out which info is reliable & which isn't.
You'll need to learn when to use preservatives & which one you need for each type of product you make. Your lotions & creams should be tested to make sure the preservative you chose is really working.
Then, there's packaging & labelling. You'll need to learn the proper way to label your products using INCI nomenclature.
So, I don't mean to sound discouraging, & as you already know, there's a lot to consider before selling. I just like to put that out there for other new people to see & consider.
Lots of people rush into selling without having all their ducks in a row, or even caring to try to. I'm just passing along what I've learned & what other soapmakers shared with me in the beginning when I wanted to sell right away.
The added benefit of waiting a year is that when you sell, you'll feel confident talking to your customers about your products, & you'll have good sound info to give them based on all the research & testing you did through that year.
What are your state & local regs on selling? You'll need a tax ID. Do city zoning laws forbid you from manufacturing in your home? Do you have liability insurance? Some venues require vendors to carry their own liability insurance. You should have it anyway to cover your own assets. Do you need to register as a business with your city, county and or state? Even if you're not required to, you should, in order to protect your personal assets in case of a law suit. Will manufacturing in your home make your homeowner's insurance null & void?
How long have you been making soap & B&B products, & how long have you been testing them? Do you know what your products are like a year down the road? Do you know what the shelf-life is of each of your products? Are you well-educated on INCI labelling & cosmetic regs? If someone's child has an allergic reaction to one of your products & the parents decide to file suit what will you do? Do you have insurance to cover that?
Do you have bookkeeping skills, & can you use accounting software? Will you do your own business taxes or can you afford to have someone else do your business taxes for you?
Consider your responsibility for your products. Consider how many people can come in contact with your products. Your responisibility grows exponentially. It's not just the person who purchased your, say soap. It's everyone who comes in contact with it - the person who purchased, their immediate family, friends of each family member, the extended family members who come to visit. Are you ready for that level of responsibility for what you create?
Many times I have had people buy soap & say it's too pretty to use. People will use your soap in their drawers as sachets, or leave them on the bathroom counter for month & months just to enjoy the scent. Sometimes they stash them away for months to give as gifts. The question then is, "What will your soap be like in 6 months or 8 months or a year? If you haven't waited it out, you don't know.
I purchased a competitor's soap at our local coop. In less than 6 months it smelled rancid, & I tossed it. That angered me:
1. I wasted my money
2. That handcrafted soap was a reflection on the entire handcrafted soapmaking community. Are her customers going to assume that all handcrafted soaps smell funky after a few months?!!
You need to know all the regs. What pushes your soap from soap into the "cosmetic" class & what does that mean as far as cosmetic regs? What pushes your lotion or cream into the drug arena, & what are the regs regarding that?
After you've gotten all that under your belt, what are your state & local regs on selling? You'll need a tax ID. Do city zoning laws forbid you from manufacturing in your home? You'll need liability insurance & that's NOT cheap! Will manufacturing in your make your homeowner's insurance null & void?
These are only a handfull of things to consider. You have a long learning curve ahead of you. You need to learn to formulate & test your formulas. That means researching each ingredient you plan to use - oils, butters, scenting materials (FO's, EO's), & research any additives you plan to use to avoid those that are known sensitisors, or outright harmful to use. While researching, you'll need to figure out which info is reliable & which isn't.
You'll need to learn when to use preservatives & which one you need for each type of product you make. Your lotions & creams should be tested to make sure the preservative you chose is really working.
Then, there's packaging & labelling. You'll need to learn the proper way to label your products using INCI nomenclature.
So, I don't mean to sound discouraging, & as you already know, there's a lot to consider before selling. I just like to put that out there for other new people to see & consider.
Lots of people rush into selling without having all their ducks in a row, or even caring to try to. I'm just passing along what I've learned & what other soapmakers shared with me in the beginning when I wanted to sell right away.
The added benefit of waiting a year is that when you sell, you'll feel confident talking to your customers about your products, & you'll have good sound info to give them based on all the research & testing you did through that year.
No worries, thats what we are here for! Soap Business
A soap business is simple and can speedily be beneficial. Soap making is a enjoyment hobby and many soap makers wonder if they could sell some of their soap. If you like doing the steps essential to run a business, you may enjoy turning a hobby into a business.
A soap business is simple and can speedily be beneficial. Soap making is a enjoyment hobby and many soap makers wonder if they could sell some of their soap. If you like doing the steps essential to run a business, you may enjoy turning a hobby into a business.
dagmar88
Well-Known Member
Have you actually read any of the comments above, Arch?
A soap business isn't anywhere near simple.
In fact any business where you're both manufacturer and retailer isn't.
Soap making is a craft that takes years to perfect and being able to produce sellable soap doesn't provide you with the essential business skills.
Most soap businesses are just too small to hire anyone; so you'll have to worry about businessplanning, marketing, branding, webdesign, accountancy, taxes, local & national laws and regulations etc.
The business will consume enourmous amounts of money before your able to sell your first piece of soap.
Just think of a professional working space, equipment, years of daily research, numerous test batches, in Europe official safety assessment, the proper insurances...
So, if your interested in making money fast, your in the wrong place...
A soap business isn't anywhere near simple.
In fact any business where you're both manufacturer and retailer isn't.
Soap making is a craft that takes years to perfect and being able to produce sellable soap doesn't provide you with the essential business skills.
Most soap businesses are just too small to hire anyone; so you'll have to worry about businessplanning, marketing, branding, webdesign, accountancy, taxes, local & national laws and regulations etc.
The business will consume enourmous amounts of money before your able to sell your first piece of soap.
Just think of a professional working space, equipment, years of daily research, numerous test batches, in Europe official safety assessment, the proper insurances...
So, if your interested in making money fast, your in the wrong place...
Maybe in India it's easier... it's nothing like that here.
dagmar88
Well-Known Member
:? Well, over there you could let a bunch of 10 year olds do all the work for you, as long as you don't let them work in dangerous places or factories for more than 6 hours a day, 6 days per week, and pay them 25-50 cents daily...
Or you can just buy a couple of kids from their parents and 'adopt' (enslave) them so you're legally allowed to let them prepare lye solutions...
So I guess it's easier yes...
Or you can just buy a couple of kids from their parents and 'adopt' (enslave) them so you're legally allowed to let them prepare lye solutions...
So I guess it's easier yes...
donniej
Well-Known Member
Any business is simple compared to opening a nuclear power plant
In comparison even to opening a casino, restuarant or day care I'd say soap is easy...
In comparison even to opening a casino, restuarant or day care I'd say soap is easy...
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