Want to start a soap manufacturing business from home or on small scale? Here in this article, we list down all the steps to start a soap-making business including cost, investment, manufacturing process, licenses, and machines.
The business is very profitable. And as your business grows, you can scale up at any moment in time. With a few pieces of equipment and raw materials, you can start this business. Additionally, the business demands a small amount of startup capital investment to start.
If you have some spare time, you can start a soap manufacturing business just today. Additionally, you can operate the business on a part-time basis.
Who Can Start Soap Making Business?
The business is perfect for simply anyone who wants to earn money from home. However, people having a creative mind will do definitely great in this business.
Additionally, the business is perfect for women and ladies. Housewives and moms can also earn handsome money from their spare time. Even college students or university students can start a soap-making business from home with little investment.
10 Steps to Start Soap Making Manufacturing Business
1. Understand the Types of Soap to Make
If you look at soap by its use, we can broadly categorize the soap industry into three categories. They are beauty soaps for personal use, laundry soap for cleaning clothes, and dish soap for cleaning utensils.
There are manufacturers who also deal with pet cleaning soaps and small guest soaps that you find in hotels and guest houses. In addition to this, the herbal soap market is also growing throughout the world.
If you are starting as a beginner, it is advised to select a specific category and step ahead.
2. Learn The Process
After you decide the type of soap you are going to make, it is important to learn the process. In starting this business, learning the soap-making process is most crucial. Additionally, you will need to practice the process several times to get an accurate result.
There are many institutes and soap makers who run vocational courses in soap making. You can contact them and learn. If you want to fine-tune your skills in making soap online, There are many master trainers who offer online courses on platforms like Udemy.
3. Determine Target Audience
This is a product-based business. Therefore, you must identify your target audience for your product. There are various different types of soaps you can make and sell. These are herbal soap, baby soap, glycerine soap, liquid soap, toilet soap, beauty soap, etc.
4. Create a Soap Manufacturing Business Project Plan
If you are serious about starting a soap manufacturing business, it is essential to prepare a business project plan. This project plan not only works as a roadmap for future business activities but also helps in arranging funds from financial institutions and banks.
5. Register your Business
It is mandatory to register a soap manufacturing company if you plan to start and run a legally compliant business. There are various business structures one can adopt as per the size and scale of the business in India.
Some of the popular structures are sole proprietorship, partnership, and private limited company. Select the company structure that fits you best.
There are a number of licenses one need to procure to start and run a soap manufacturing business. In India, presently GST registration is a must.
6. Cost & Investment to Start Soap Manufacturing Business
The cost of starting a soap manufacturing unit will depend on the size and the scale of production of soap items. The minimum area required to manufacture soaps will be around 500 sq. ft to 750 sq. ft. The startup investment of starting a small-scale soap manufacturing business in India is a minimum of Rs 10 Lacs.
7. Arrange Funds
If you are short on funds, you need to apply for funding with financial institutions. There is a wide range of places where one can apply for financing a business. You can check our article on how to get loans for small businesses to learn more.
8. Procure Equipment & Ingredients
You will need to procure the required equipment and utensils. Check what items you already have. Additionally, you will need to procure the ingredients or raw materials for the business.
Procure the packaging material also. Furthermore, pay attention to the packaging. Packaging must be attractive and durable. Also, you can try some creative packaging options.
9. Where To Sell?
First of all, you can sell your soaps to your relatives and friends. Additionally, you can go for institutional selling. You can approach the hotels, spas, resorts, and beauty salons.
You can sell the items from the local retail outlets on a consignment basis. However, the most legitimate option is online selling. Sell from the online marketplaces. Additionally, you can open your own online store with a small amount of investment.
10. Promote Soap Manufacturing Business
There are a lot many ways of promoting small businesses with less budget. Create a website and business pages on social media platforms and promote your products.
Rupak is the founder of MUVSI. He is a small business consultant by profession. His mission is to make people know how to make money and understand personal finance for a better living.