Start A Soap Making Business - Business Ideas
Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.
Are you looking for an easy business you can start from home? Soap making is a relatively easy cottage business you can start today.
Soap is one of the products you will find in every household. Therefore, soap is a product that will remain in demand, making soap making business a lucrative idea.
To start a soap-making business from home, research the competition and choose the niche your business will focus on. You can make scented soaps mixed with essential oils or non-scented soaps for washing utensils.
Choose a business name and create a business plan indicating your entity type, mission statement, and soap marketing strategy.
Starting a soap making business requires a great deal of effort, dedication, and most importantly passion.
If you're interested in how to sell soap, or selling soap online, you can use this page as a guide for everything you'll need to know.
Key Stats
Startup Costs
Min Startup Costs | Max Startup Costs | |
---|---|---|
Office Space Expenses |
$0 |
$7,000 |
Equipment & Supply Expenses |
$66 |
$700 |
Inventory Expenses |
$50 |
$9,750 |
Software Expenses |
$12 |
$575 |
Advertising & Marketing Costs |
$0 |
$3,000 |
Website Costs |
$13 |
$215 |
Specific Industry Expenses |
$0 |
$500 |
Total Startup Costs |
$141 |
$21,740 |
Case Studies
Successful Businesses
Business | URL | Rank | |
---|---|---|---|
|
Suchi's Handcrafted Skincare Products |
facebook.com/SuchisSoaps/ |
4 |
|
Kiss My Crown Essentials |
kmcessentials.square.site |
4,517 |
|
Modern Soapmaking |
modernsoapmaking.com |
310,741 |
|
Royalty Soaps |
royaltysoaps.com |
330,636 |
|
Goat Milk Stuff |
goatmilkstuff.com |
570,103 |
|
BARAKA SHEA BUTTER |
https://barakasheabutter.com/ |
641,902 |
|
Little Soap Company |
littlesoapcompany.co.uk/ |
1,386,502 |
|
Willow and Sage Magazine |
willowandsage.com |
2,192,323 |
|
Back Porch Soap Company New York City |
backporchsoap.com |
4,456,463 |
|
SOAP Refill Station |
getmosoap.com |
4,543,511 |
|
Soapmaking Business |
soapmakingbusiness.com |
5,386,977 |
Pros & Cons
Pros | Description |
---|---|
Flexibility |
You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own. |
Ability to start your business from home |
It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning! |
Rewarding work |
Starting a soap making business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about. |
Scalable |
With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers. |
Meaningful business connections |
You never know who you will meet as a soap making business. This could be the start of an incredible business opportunity! |
Quick build time |
The average time it takes to build your product is quick - typically around 7 months. This will allow you to bring your product to market faster. |
Cons | Description |
---|---|
Crowded Space |
Competition is high when it comes to your soap making business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies. |
Low margins |
The gross margins for your soap making business are typically around 65%, which can make it more challenging to incur new expenses and maintain profitability. |
Work can be inconsistent |
As a soap making business, the amount of work assigned to you and schedule tends to be more inconsistent, which may make your income less stable. It's important to set boundaries and budget accordingly based on the amount of work you plan to have. |
Lack of benefits |
With a soap making business, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming. |
Taxes |
As a soap making business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it. |
No safety net |
Typically, as a soap making business, you do not receive a consistent pay-check and instead earn money based on your transactions each month. During the slow periods, you typically take away less since the job is based on commission. It's important to budget accordingly for the slow times. |
Hey! 👋 I'm Pat Walls, the founder of Starter Story.
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