Love making soap? You can turn this hobby into an additional income field, or even a main livelihood. Handmade soaps, especially those that use organic ingredients or have attractive designs, are now being hunted by consumers because of their cheap prices. The soap is often used as a gift. For your home business to be successful, you must make quality soap, control prices and supplies, and market the product.
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Method 1 of 2: Starting a Business
Step 1. Learn how to make soap
Before you start selling soap, you'll need to master the manufacturing technique, and create different soap formulas. Soap can be made in two ways, namely hot and cold.
- Generally, soap is made cold. To make soap the cold way, you must mix the lye solution with fat or oil and then print it. After that, wait a few weeks for the soap to form.
- To make hot soap, you have to cook the soap. With the hot method, you don't have to freeze the soap for a long time. In addition, it will be easier for you to add aroma and color to the soap. However, hot soap making and molding is more difficult.
- If you're new to soap making, try taking a soap-making course in your area. The course may be held by art clubs, shops, or soap makers.
Step 2. Create a unique soap formula
Granted, you can make soap with just a few "must" ingredients, but you can get creative by fiddling with the formulas in the manufacturing process. To make your soap a success, try experimenting when making soap. Try using different perfumes, dyes, and skin moisturizers until you find a unique, high-quality formula.
Step 3. Get supplies for making soap
To make soap, you will need some special equipment and a workspace. You can start making soap in the kitchen, or rent a dedicated space. As your business grows, you may need additional equipment, but to start making soap, you will need the following equipment:
- Blender
- Microwave
- Mixing kettle machine
- Label making machine
- Packaging machine
Step 4. Develop your product
Make sure your product has marketability and is sought after by consumers. Think about who your soap consumers are, and which niche market you will cater to. For example, you can make animal-free soap, to meet the needs of consumers who care about animal rights. You can also make soap with natural ingredients for consumers who prioritize a healthy lifestyle. Consider taking the following steps:
- Give the company a name that is catchy and easy to remember.
- Using a special design mold.
- Printing letters or other shapes on the soap.
- Pack the soap with paper or pretty ribbon.
- Create a company logo.
Step 5. Find a raw material provider
If you are going to make large quantities of soap sustainably, you will need a steady supply of oils, fats, perfumes, dyes, and other ingredients. Even though you can buy your own soap ingredients, you will be able to save money and energy if you order raw materials from a seller who can deliver the ingredients to your address. Find the following suppliers of soap raw materials:
- Oil
- Perfumes and dyes
- Soap making equipment
Step 6. Get professional help
When you're ready to start a business, it's a good idea to consult with accountants, tax consultants, and lawyers for insight into the legal and financial aspects of doing business. While you may need to set aside money and time for consultations, these professionals can make your business easier. In addition, by consulting, you can avoid mistakes that can be very detrimental to the company.
Learn about small business bookkeeping apps, such as Quickbooks. These applications can be very helpful for you to track inventory, sales, invoices, and orders for goods. Study the app even if you don't work with a professional accountant
Step 7. Register your business
To start a soap making business legally, you must register a business entity with the relevant parties. How to register varies, depending on your location.
- The Department of Cooperatives and SMEs can help you start a business. They can help you find loans and investors, fill out the necessary forms, get insurance, and more.
- Also contact small and medium business associations in your area for support for starting a business.
- If you plan to pay employees, contact the tax office to arrange PPH 21 for employees.
Method 2 of 2: Achieving Success
Step 1. Prepare a sufficient stock of goods to fill the order
Don't let you run out of stock when you receive an order, but on the other hand, don't waste your money on making soap that never sells. When you're just starting out, you may need to make small batches of soap, but don't forget to track sales so you don't run out of stock when your order arrives.
- Package and label the soap so it's ready for sale anytime.
- Follow the rules that apply in your area regarding labels. For example, BPOM requires that the labels of food and non-food products circulating in Indonesia must be written in Indonesian.
Step 2. Determine the price of the product based on the market and the product you are selling
For example, you might charge a higher price for "luxury" soap, and sell everyday soap at an affordable price. Pay attention to the price of soap in your area, and set a price equal to or higher than the market price, depending on your sales tactics.
- Consider giving customers special prices or bonuses. For example, you could give a discount on bulk orders, or offer a "buy two, get one free" bonus.
- Do not set prices that are too high or low. Instead, set the price according to the cost of production (such as raw materials, transportation costs, etc.), and take a small profit. If sales go up, you can increase your prices too, but don't set the price too high when you start your business.
Step 3. Advertise your soap
For your business to be successful, you must understand the market and know how to reach it. Spread the word about your soap whenever and wherever you are, but focus promotion on your target market. Try using commonly used promotional methods, for example:
- The word of mouth method, or word of mouth.
- Social media
- Online and offline advertising
- Name card
- storefront
Step 4. Find a way to sell soap directly
Handicrafts such as soap can be easily sold at various markets and events. Don't be afraid to travel to sell soap to a wider market. Try selling at the following events:
- Arts and crafts market
- Farmer's market
- Celebration
Step 5. Sell soap on the internet
Nowadays, consumers shop and search for information using the internet, even though they end up buying products face-to-face. To succeed in business, be prepared to sell products on the internet. Apart from selling soap through your personal website or sites like Etsy, you should also market your products through social media.
When selling products over the internet, consider costs and shipping methods. Consider whether the customer will need to pay for postage, and whether you will provide various shipping options (such as regular delivery, special express, etc.)
Step 6. Sell soap in shops
You can try leaving soap at someone else's shop, or consider opening your own soap shop. If you're opening your own store, you'll need to find a store location, negotiate rental and insurance costs, determine store opening hours, and consider other things.
