Soap Making Business

Would you like to turn your hobby into a soap making business?

Why Would You Bother Listening to Me?

Although I am a quite talented soap maker (which hopefully is reasonably evident throughout the pages of this site) my real job is as a qualified accountant here in Australia.

So when I am talking about how to start a small business I do have the qualifications and experience to back up what I am saying!

Having said that, as with most of the information you will find on the net, I would still advise you to read it through with a grain of scepticism.

Take from it what seems reasonable to you, but please, please, please - take your plans for your business to a local accountant for advice BEFORE you invest too much of your hard earned money in a new business venture!

The failure rate for small startup businesses is phenomenal, particularly in the first twelve months of operation and a little bit of preparation and following good advice can make a huge difference!

Where to Start?

Learn your craft.

I can't emphasise that enough. Learn your craft and refine your product offerings to the point where you are able to produce high quality soap or bath products at a reasonable cost.

Undertake the Planning Process for Your New Business Seriously

If you are going to turn your hobby into a small business, you need to take it seriously!

That means that you will need to invest a considerable amount of time in developing a business model and researching your market. You will need to work out what you are going to sell, who you are going to sell it to and how and where you will sell your goods.

• Will you target high income earners (i.e. luxury soaps) or low to middle income earners and families?
• Do you intend to open a store?
• If so, will your store be online or offline?
• Or will you sell at markets or offer your products to other store owners on consignment?
• Maybe you will want to consider a party plan model or selling by mail order.

Setting Up a Business

Do you know what you need to do to meet all of your legal obligations when you are starting a small business?

In this section you will find information about selecting a legal structure for your business, how to register a business name and how to manage your relationship with the tax office.

Finding Suppliers and Supplies

Handmade Soap Packaging

How are you going to present your products for sale? Are you going to wrap each individual bar of soap or are you going to keep your packaging to a minimum?

Do you need to dress up your products to meet the requirements of your target customers?

Setting the Budget for Your Soap Business

I strongly suggest that you spend a bit of time developing a budget for your new business, and then do everything you can to stick with it!

It is very easy to spend money buying equipment, molds and soap ingredients, not to mention all of the other business you are likely to encounter. In the start-up phase, there is not likely to be a great deal of money flowing into the business and you may soon find yourself running out of money!

Pricing Your Products

Pricing your products is critically important to your business. If you price them too high, you might not achieve the level of sales you need to break-even, price them too low and you might end up loosing money.

Marketing and Advertising

Depending on the business model you chose (how you intend to sell your soap and to whom), you may need to develop a marketing plan and implement an advertising program to get the word out about your new business.

Record Keeping for Your Business

As you are starting a small business, you will be required to maintain accurate records of all of your business transactions.

Software for a Soap Business

Are you looking for software to help you to run your soap making business? Perhaps software that can help you to manage your inventory or develop new recipes?

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