business plan project on soap

• Sample Business Plans
• Retail, Consumers & E-commerce

Soap Making Business Plan

Low startup costs, high margins, and a diverse market make soap-making an excellent business choice, especially for those who enjoy DIY projects and artistic expression. However, starting a business without proper planning can make you feel overwhelmed at times.

Need help writing a business plan for your soap making business? You’re at the right place. Our soap making business plan template will help you get started.

Free Business Plan Template

Download our free soap making business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write a Soap Making Business Plan?

Writing a soap making business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

• Introduce your business: Start your executive summary by briefly introducing your business to your readers.
• This section may include the name of your soap making business, its location, when it was founded, the type of soap making business (E.g., handmade soap making, natural soap making, commercial soap making), etc.
• Market opportunity: Summarize your market research, including market size, growth potential, and marketing trends. Highlight the opportunities in the market and how your business will fit in to fill the gap.
• Product and services: Highlight the product line you offer your clients. The USPs and differentiator products you offer are always a plus.
• For instance, your product line may include handmade soaps, organic soaps, scented soaps, soap bars, liquid soaps, and lotion bars.
• Marketing & sales strategies: Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring customers, etc.
• Financial highlights: Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.
• Call to action: Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

Say goodbye to boring templates

Build your business plan faster and easier with AI

Plans starting from $7/month

2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

• Business description: Describe your business in this section by providing all the basic information:
• Handmade soap making business
• Organic soap business
• Private-label soap-making business
• Liquid soap business
• Commercial soap making business
• Describe the legal structure of your soap making company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.
• Owners: List the owners of your soap making company. Describe what shares they own and their responsibilities for efficiently managing the business.
• Mission statement: Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.
• Business history: If you’re an established soap making service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc.
• Additionally, If you have received any awards or recognition for excellent work, describe them.
• Future goal: It’s crucial to convey your aspirations and vision. Mention your short-term and long-term goals; they can be specific targets for revenue, market share, or expanding your business.

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

• Target market: Start this section by describing your target market. Define your ideal customer and explain what types of products they prefer. Creating a buyer persona will help you easily define your target market to your readers.
• For instance, a company offering private-label soaps might target a hotel chain, spa chain, or retail store that wants to offer its own branded soap products.
• Market size and growth potential: Describe your market size and growth potential and whether you will target a niche or a much broader market.
• Competitive analysis: Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your products from them. Point out how you have a competitive edge in the market.
• Market trends: Analyse emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.
• There is a growing demand for natural and organic products, so explain if you manufacture or sell organic soaps, and if not, what you plan to do next.
• Regulatory environment: List regulations and licensing requirements that may affect your soap making company, such as business registration, packaging and labeling requirements, ingredient regulations, environmental regulations, etc.

Here are a few tips for writing the market analysis section of your soap manufacturing business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

• Lotion bars
• Shampoo bars
• Liquid soaps
• Organic soaps
• Scented soaps
• Handmade soaps
• Quality measures: This section should explain how you maintain quality standards and consistently provide the highest quality products.
• This may include regular quality checks, testing pH levels, compliance with regulations, excellent manufacturing practices, and testing the final product for fragrance, texture, and performance.
• Packaging and labeling: Discuss your final product’s packaging and labeling options, including sustainable and eco-friendly packaging options. Explain how you meet regulations by providing relevant information about your packaging process.

In short, this section of your soap making plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

• Unique selling proposition (USP): Define your business’s USPs depending on the market you serve, the equipment you use, and the unique products you provide. Identifying USPs will help you plan your marketing strategies.
• For example, handmade and natural ingredients, unique fragrances, creative shapes and designs, and eco-friendly packaging could be some of the great USPs for a soap making company.
• Pricing strategy: Describe your pricing strategy—how you plan to price your products and stay competitive in the local market. You can mention any discounts you plan on offering to attract new customers.
• Marketing strategies: Discuss your marketing strategies to market your products. You may include some of these marketing strategies in your business plan—social media marketing, Google ads, brochures, email marketing, content marketing, and print marketing.
• Sales strategies: Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include direct sales calls, offering competitive pricing, seasonal discounts, product customizations, and attending trade shows and events.
• Customer retention: Describe your customer retention strategies and how you plan to execute them. For instance, introducing loyalty programs, offering free samples, personalized service, etc.

Overall, this section of your soap making business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your soap making business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

• Staffing & training: Mention your soap making business’s staffing requirements, including the number of employees or production staff needed. Include their qualifications, the training required, and the duties they will perform.
• Operational process: Outline the processes and procedures you will use to run your soap making business. Your operational processes may include soap production, inventory management, sales and marketing, shipping and fulfillment, customer service, and administrative tasks.
• Equipment & machinery: Include the list of equipment and machinery required for soap making, such as mixing and blending equipment, heating equipment, cutting and molding equipment, safety equipment, etc.
• Explain how these technologies help you maintain quality standards and improve the efficiency of your business operations.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your soap making business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

• Founder/CEO: Mention the founders and CEO of your soap making company, and describe their roles and responsibilities in successfully running the business.
• Key managers: Introduce your management and key members of your team, and explain their roles and responsibilities.
• It should include, key executives, senior management, and other department managers (e.g. operations manager, quality control manager.) involved in the business operations, including their education, professional background, and any relevant experience in the manufacturing industry.
• Organizational structure: Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
• Compensation plan: Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.
• Advisors/consultants: Mentioning advisors or consultants in your business plans adds credibility to your business idea.
• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your soap making services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

• Profit & loss statement: Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement. Make sure to include your business’s expected net profit or loss.
• Cash flow statement: The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
• Balance sheet: Create a projected balance sheet documenting your soap making business’s assets, liabilities, and equity.
• Break-even point: Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.
• This exercise will help you understand how much revenue you need to generate to sustain or be profitable.
• Financing needs: Calculate costs associated with starting a soap making business, and estimate your financing needs and how much capital you need to raise to operate your business. Be specific about your short-term and long-term financing requirements, such as investment capital or loans.

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the soap making industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your soap making business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample soap making business plan will provide an idea for writing a successful soap making plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our soap making business plan pdf .

Related Posts

Pharmacy Business Plan

Retail Store Business Plan

400+ Sample Business Plan Example

Convenience Store Business Plan

Guide on Format of a Business Plan

How to Write a Business Plan Step-by-Step

Frequently Asked Questions

Why do you need a soap making business plan.

A business plan is an essential tool for anyone looking to start or run a successful soap making business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your soap making company.

How to get funding for your soap making business?

There are several ways to get funding for your soap making business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your soap making business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your soap making business plan and outline your vision as you have in your mind.

What is the easiest way to write your soap making business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any soap making business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

Turn your business idea into a solid business plan

Explore Plan Builder

Plan your business in the shortest time possible

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Create a great Business Plan with great price.

• 400+ Business plan templates & examples
• AI Assistance & step by step guidance
• 4.8 Star rating on Trustpilot

Streamline your business planning process with Upmetrics .

• Sample Plans
• Retail, Consumers & E-commerce

Soap Making Business Plan

Have you decided to launch your own soap production business? Explore this step-by-step guide and download the mentioned template to create an investor-friendly business plan for your soap making company in just 8 easy steps.

Soap has been a household essential for centuries and every day, people look for the perfect bar—whether it's for skincare, fragrance, or just a little luxury in their routine.

Moreover, with the growing demand for quality soaps and handmade, natural bars, the soap manufacturing industry is booming and worth over $46 billion in the US.

So, there’s no better time to jump into this creative business venture.

However, it requires a solid business plan to bring your unique ideas to life, build a strong foundation, and stand out in the competitive market.

Need help writing one? Not to worry!

Explore this soap making business plan template that walks you through all the key steps to develop a comprehensive yet effective business plan. But before that...

Why Do You Need a Soap Making Business Plan?

Whether you're an experienced soap maker looking to expand an existing business or a newbie aiming to establish a new soap production company, a well-crafted business plan is essential.

A soap making business plan is not just a professional document; it's a roadmap for planning, managing, and growing a soap making company.

Here are a few key reasons why you need a soap making business plan:

• Defines your business goals, target market, ownership structure, marketing plans, and strategies to achieve long-term success.
• Attracts potential investors or lenders and secures funding by presenting how your business will generate revenue and profits.
• Helps you set SMART (specific, measurable, achievable, relevant, & time-bound) goals, track your progress, as well as revise your strategies as needed.
• Allows you to articulate your unique value proposition and highlight what sets your products apart from competitors.
• Provides a framework for making strategic decisions while expanding your product line, entering a new market, or adjusting a pricing strategy.

All in all, a soap making business plan serves as a detailed blueprint that guides you through every aspect of your soap making journey and its sustainable growth.

How to Write a Soap Making Business Plan?

Writing a professional soap making business plan involves several key steps to encapsulate your business concept.

Here's a guide on how to draft each business plan section in detail:

1) Executive summary

An executive summary is a quick, concise overview of the entire soap making business plan that offers a high-level introduction to your business.

In fact, it’s the first section that every potential investor or stakeholder will read to get a better idea of your soap making company.

If they don't find it interesting or compelling enough, they won't read it further and might reject your business proposal. So, ensure that you keep your executive summary simple, brief, and persuasive.

Ideally, you must include the following details in this section:

• Business concept and its purpose
• Mission and vision statements
• Soap production industry & target market
• Unique value propositions
• Marketing and branding approach
• Financial projections

In short, the primary goal of this section is to capture the readers' interest and encourage them to learn more about your business.

2) Business overview

The business overview section is a detailed description of your soap making business and what it’s all about.

It includes everything about your business, from its foundational facts to futuristic goals and growth plans that every potential financial backer needs to know.

To plan this section, consider answering these questions:

• What's the legal structure and registered name of your business?
• Where's your soap production company located? And why have you selected that place?
• What type of soap making business do you own? (handcrafted, organic, wholesale, private label, or specialty soaps)
• Who are the company owners or partners?
• When and why did you start this business? What milestones have you achieved till now?
• What are the short-term goals and long-term objectives?

Answering such questions will help you present your business concept in detail and provide a clear snapshot of your soap making company. So, keep it concise and impressive.

3) Market analysis

The market analysis section provides an in-depth understanding of the soap making industry, including the market trends and target audience.

This will help investors or stakeholders get valuable insights into the specific market niche, the demand for soaps, potential customers you expect to serve, and top competitors.

So, you'll need to conduct thorough market research and incorporate the following essential components in this section:

• Industry overview
• Market size and growth potential
• Target market segment
• Key competitors (other artisanal soap makers & larger natural brands)
• SWOT analysis
• Regulatory environment

Moreover, try to develop a buyer persona to better understand the ideal customer needs and preferences. Here's an example:

4) Sales and marketing plan

Your sales and marketing plan outlines the strategies you'll use to promote your soap making business, generate sales, and grow your customer base.

As a soap maker, you need to develop strategies that cater to your target market and the unique selling points of your product offerings. These strategies also help you attract and retain your customers.

The following are the marketing tactics and sales techniques you may use for your soap making business:

• Promote on social media platforms
• Participate in local craft fairs
• Engage in direct sales at markets or wholesale to retailers
• Develop an SEO-friendly e-commerce website
• Collaborate or partner with influencers and boutique stores
• Advertise in local newspapers & magazines

In addition to that, consider describing any special offers, loyalty programs, or seasonal promotions that encourage repeat purchases and draw new buyers.

5) Products and service offerings

This section highlights what your soap making company intends to offer and how it will meet the target market's needs.

So, start this section with a precise description of your main products, along with their benefits, unique features, and the value they bring to customers.

List out the different types of soaps or other cleansing products you intend to offer. For instance:

• Moisturizing bars
• Exfoliating soaps
• Specialty soaps
• Seasonal collections
• Limited-edition products

After that, showcase your additional products (gift sets, soap dishes, bath accessories, or lotions) or services (customization or subscription options).

If possible, try to include your product images or design mockups to make your business plan visually appealing and more engaging.

6) Operations plan

The operations plan offers practical insights into the day-to-day activities and processes required for the smooth functioning of your soap business.

So, try to cover all your operational intricacies and clarify how they directly impact the quality of your products.

Consider including the below elements in your operations plan:

• Staffing needs and training
• Soap production process (along with techniques & equipment used)
• Supply chain management
• Quality control measures
• Packaging and storage
• Order shipping and delivery

Adding these details to your plan will help you lay out a strong foundation for your business operations, which will eventually help you manage your business effectively.

7) Management team

A well-organized and experienced management team is important for the overall success of soap making business.

Why? Because it highlights how your company will be led, how responsibilities will be managed, and how your team will work together to achieve business goals.

While framing this section, introduce your key team members, such as the founder, production manager, operations executive, and quality control supervisor. Also, describe their experience and duties within the company.

Next, present your organizational structure that defines how roles and responsibilities are allocated within your company.

You may create a hierarchical structure for your  soap production business as shown below:

By clearly showing authority, you show investors or stakeholders that your team is responsible for driving the company’s vision and managing business operations.

If applicable, mention your advisory board members or consultants who add credibility to your business and support your plan.

8) Financial plan

The financial plan is an essential section of your soap making business plan as it's a comprehensive overview of your financial health and viability.

Typically, it includes several financial statements and projections broken out both monthly or quarterly. As well as it shows how your soap business will achieve its financial goals within the next few years of operation.

So, you need to cover all these reports in your soap making financial plan:

• Business startup costs
• Sales & revenue forecasts
• Operating expenses

Profit and loss statement

• Cash flow projections
• Balance sheets
• Break-even analysis

Further, summarize sensitivity analyses for the different types of scenarios and clearly outline how much funding you need as well as how you plan to use it.

And don't forget to mention your repayment plan for the borrowed amount, including interest and timeline.

Here’s an example of a few financial projections that you may refer to formulate yours:

Cash flow statement

Balance sheet

By developing a comprehensive and realistic financial plan, you demonstrate your business's growth potential and profitability in the long run, allowing potential backers to make informed decisions.

Download the Soap Making Business Plan Template

So, are you ready to start drafting your own soap making business plan? But need help with that? Well, look no further; here's our soap making business plan template PDF to get started.

This advanced template has been prepared especially for entrepreneurs who need extra support in soap production business planning. Import the data into the editor and revise it as per your specific needs.

Now, that's a wrap! We've discussed all the key elements of a soap making business plan, such as an effective executive summary, thorough market analysis, compelling marketing strategy, and realistic financial projections.

So, it should be easier for you to write a comprehensive business plan for your soap making company.

But if you still need some extra guidance on presenting your plan, consider using a modern AI business plan generator such as Bizplanr .

It helps you prepare an actionable plan efficiently and quickly. All you need to do is answer a few easy questions and its robust AI assistant will generate your plan in minutes!

Get Your Business Plan Ready In Minutes

Answer a few questions, and AI will generate a detailed business plan.

Generate your Plan

Frequently Asked Questions

What are the key milestones to include in my business plan?

Include these key milestones in your business plan:

• Timeline for new product launch
• Major marketing campaigns for customer acquisition
• Growth plans for entering into new markets
• Specific business valuation goals

How do I create a financial plan for a soap making business?

Consider following these steps to create a financial plan for your soap making business:

• Estimate the initial expenses and startup costs
• Project sales revenue (how many units of soap you expect to sell)
• Calculate the Cost of Goods Sold (COGS)
• Determine fixed and variable costs
• Evaluate all the cash flows
• Develop profit & loss statement
• Conduct break-even analysis

If you want to develop effective and realistic financial projections for your soap making business, use advanced financial forecasting software.

What should I include in the executive summary of my business plan?

You should include the following components in your business plan executive summary:

• Business concept and vision
• Industry overview & target market
• Marketing strategies

How to get funding for your soap making business?

While getting funding for your soap making business, consider:

• Creating a professional business plan (including financial projections, market analysis, and a detailed strategy for growth and profitability)
• Finding potential funding resources (such as bank loans, private investors, government grants , and crowdfunding)
• Developing a compelling pitch (highlighting market opportunities and your business's unique aspects)
• Gathering necessary documents (like credit reports or legal papers)
• Building strong relationships with potential investors or lenders
• Applying for loans or investments

Can I start my soap making business without a formal plan?

Of course! You can start a soap making business without having a formal plan, but it may lead to a few challenges, like lack of guidance, financial risks, and missed opportunities.

In contrast to that, having a professional plan helps you guide your growth and increase your chances of success.

As the founder and CEO of Upmetrics, Vinay Kevadiya has over 12 years of experience in business planning. He provides valuable insights to help entrepreneurs build and manage successful business plans.

Follow Vinay Kevadiya

Related Sample Plans

Pickleball Business Plan

Catering business plan

Shoe Store Business Plan

Soap Making Business Plan Template

Written by Dave Lavinsky

Soap Making Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and small business owners create business plans to start and grow their soap-making businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a soap-making business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Soap Making Business Plan?

A business plan provides a snapshot of your soap business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes the research you conducted to support your plans.

Why You Need a Business Plan for a Soap Business

If you’re looking to start a business making soap or grow your existing soap-making business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your soap-making business in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Soap Businesses

With regards to funding, the main sources of funding for a soap-making business are personal savings, credit cards, bank loans, and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Using your own savings and applying for bank loans are the most common funding paths for soap manufacturing businesses.

Finish Your Business Plan Today!

How to Write a Business Plan for a Soap Business

If you want to start a soap-making business or expand your current one, you need a business plan. Below you will find more details about how to write each section of your soap-making business plan:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of soap-making business you are operating and the status. For example, are you a startup, do you have a business selling soaps that you would like to grow, or are you operating multiple soap manufacturing facilities?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the soap production industry. Discuss the type of business you are operating. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing strategy. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of soap business you are operating.

For example, you might operate one of the following types of soap production companies:

• Glycerin Soap : this type of solid or liquid soap is derived from plant-based oils, and is all natural.
• Liquid Soap: this type of soap is made with potassium hydroxide, and typically has more moisturizing properties than bar soap.
• Novelty Soap: this type of solid soap can come in unusual colors and shapes.
• Herbal Soap: this type of solid or liquid soap is made using natural herbs, essential oils, and ingredients that are said to be more beneficial for the skin.

In addition to explaining the type of business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, number of supply contracts, etc.
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the soap-making industry. While this may seem unnecessary, it serves multiple purposes.

First, researching the soap production industry educates you. It helps you understand the market in which you are operating.

Secondly, conducting market research can improve your strategy, particularly if your research identifies market trends.

The third reason for this research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section:

• How big is the soap production industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your soap business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments : consumers, hotels, and healthcare providers.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of soap business you operate. Clearly, individual consumers would respond to different marketing promotions than hospitals, for example.

Try to break out your target market in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the customers you seek to serve. Because most small soap businesses primarily serve customers living in the same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Soap Making Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other soap production businesses.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes wholesalers that make white-label soap or consumers who make their own handmade soaps at home. You need to mention such competition as well.

With regards to direct competition, you want to describe the other soap businesses with which you compete. Most likely, your direct competitors will be other craft soap makers with an online store.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What types of soap do they make?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide a broader range of soap formulations?
• Will you provide specialty soaps that your competitors don’t offer?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a soap making business plan, your plan should include the following:

Product : In the product section, you should reiterate the type of soap-making company that you documented in your Company Analysis. Then, detail the specific product line you will be offering. For example, in addition to soap making, will you make lotions and salves?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections, you are presenting the products and services you offer and their prices.

Place : Place refers to the locations through which you will sell your soap. For example, will you sell your soaps directly to consumers via a storefront? Will you sell via an e-commerce site? And/or will you sell your soaps at flea markets, festivals, and/or farmers’ markets? Or will you sell your soap to other retailers who will then sell to consumers? In this section, document each method by which you will sell your products.

Promotions : The final part is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Social media platforms
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your soap-making business, including sourcing ingredients, formulating soap recipes, mixing and pouring soaps, packaging the finished product, marketing, e-commerce site maintenance, and meeting with potential buyers.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sell your 1,000 th bar of soap, or when you hope to reach $X in revenue. It could also be when you expect to expand your soap-making business to a new product line.  

Management Team

To demonstrate your soap-making business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing small manufacturing businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing soap manufacturing facilities or successfully running small businesses.

    Finish Your Business Plan Today!

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you supply one or more hotels, or sell 100 bars per week online? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your soap-making business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a soap making business:

• Location build-out including design fees, construction, etc.
• Cost of equipment, start-up inventory and supplies including soap molds, shipping materials, and raw materials
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your production location lease or a brochure outlining your product offerings.  

Putting together a business plan for your soap business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the soap-making industry, your competition, and your customers. You will have developed a marketing strategy and will really understand what it takes to launch and grow a successful soap making business.

Don’t you wish there was a faster, easier way to finish your Soap Making business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   See how Growthink’s professional business plan consulting services can create your business plan for you.

Other Helpful Business Plan Articles & Templates

Soap Making Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Beauty Care Industry » Cosmetics Line » Soap Making

Are you about starting a soap making business? If YES, here is a complete sample soap making business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a soap making business . We also took it further by analyzing and drafting a sample soap making marketing plan template backed up by actionable guerrilla marketing ideas for soap making businesses. So let’s proceed to the business planning section.

Suggested for You

• 60 Best Soap Making Business Name ideas
• How to Do SWOT Analysis for a Soap Making Business
• Beauty Counter Manager Business Plan [Sample Template]
• Lip Gloss Line Business Plan [Sample Template]
• 4 Difference Between White and Yellow BeesWax Pellets

Despite the fact that loads of entrepreneurs are delving into soap making business, the market for liquid soap is still pretty large and will still continue to grow because it is a necessity for most homes, offices, canteens, laundry shops, amongst others.

That means if you truly want to make it big in this business, you must be willing to work hard to be able to gain your own fair share of the available market.

As such, if you are tinkering with starting a business that requires low start – up capital and little training and technical skills, then you may want to tinker with starting your own soap production company.

One good thing about this kind of business is that you can start it on a small scale level from your home and then grow to a bigger facility when your market grows. Below is a sample soap production company business plant template that you can use to write yours;

A Sample Soap Making Business Plan Template

1. industry overview.

Soap is a universal product that can be found in all homes, canteen, laundries, hotels and toilets et al. Soaps are used for washing and bathing hence the demand for soap is hardly affected by economic meltdown due to the important role the product plays in our daily lives.

Soap production companies are involved in making bar soaps, liquid soaps, and detergent et al with different scent and packaging. Major players in the soap production industry do not just serve the market within the State or country they operate from, but also international markets.

The equipment needed for soap making include; the soap making machine, heat resistance plastic or stainless steel pitcher with lid, big stainless steel or plastic spoon,

Stainless steel measuring spoons, measuring cups, small beakers, stick blender (for saponification process), a soap mold, soap pot, rubber spatulas, large stainless steel or plastic ladle, protective goggles, protective rubber hand gloves, Quick reading and accurate thermometer. You will also need supply of lye solution, oils, additives (colorants), and fragrances, amongst others.

The Soap Production industry is indeed a growing and thriving sector of the economy of most countries of the world and they generates several millions of US dollars annually from several registered and licensed small – scale, medium scale and big soap production companies scattered all around Nigeria .

The industry is responsible for the employment loads of people directly and indirectly all around the world. With this kind of business, if you want to start on a small scale, you can choose to start servicing your local community.

All you would need is contacts, packaging, networking and good marketing and customer service skills. However, if you intend starting it on a large scale, then you should consider spreading beyond your local community to state level and even national level.

Over and above, the soap production industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale servicing a community or you can chose to start on a large scale with a robust distribution network all across major cities in America and even in within the West African Coast.

2. Executive Summary

Cites® Soap Production Company is a licensed and standard soap production company that will be located in Illinois. We have been able to secure a long term lease for a facility in a strategic location with an option of a long term renewal on an agreed terms and conditions that is favorable to us.

The facility has government approval for the kind of business we want to run and it is easily accessible and we are deliberate about that to facilitate easy movement of raw materials and finished products (well packaged soaps and detergent).

We are in the soap making line of business to produce block soaps, liquid soaps and detergents in commercial quantities.

We are also in business to make profits at the same to give our customers value for their money; we want to give people and businesses who patronize our soaps and detergents the opportunity to be part of the success story of Cites® Soap Production Company.

We are aware that there are several big scale and small scale soap production companies scattered all around America whose products can be found in every nooks and crannies of the country, which is why we spent time and resources to conduct our feasibility studies and market survey so as to enable us locate the business in an area that will support the growth of the business and also for us to be able offer much more than our competitors will be offering.

We ensured that our facility is easy to locate and we have mapped out plans to develop a wide distribution network for wholesalers all around Illinois and the united states of America as a whole.

Much more than producing quality soaps and detergent in commercial quantities, our customer care is going to be second to none. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they visit or purchase our product and also to become our loyal customers and ambassadors.

Cites® Soap Production Company will ensure that all our customers (wholesale distributors) are given first class treatment whenever they visit our Depot / Plant. We have a CRM software that will enable us manage a one on one relationship with our customers (wholesale distributors) no matter how large the numbers of our customer base may grow to.

We will ensure that we get our customers involved when making some business decisions that will directly or indirectly affect them.

Cites® Soap Production Company is family business that will be owned by Mrs. Celina Bassek and her immediate family members. Mrs. Celina Bassek who is the Chief Executive Officer of the Company is Graduate of Industrial Chemistry (B.Sc.) and she holds a Master’s Degree in Business Management (MBA).

She has well over 10 years of experience working in the soap production industry as a senior manager prior to starting Cites® Soap Production Company. She will be working with a team of professionals to build the business and grow it to become one of the market leaders in the industry.

3. Our Products and Services

Cites® Soap Production Company is going to operate a standard and licensed soap production company whose product will not only be sold in Illinois.

We are in the soap production line of business to make profits and also to give our customers value for their money and we are going to do all that is permitted by the law of the United States of America to achieve our corporate goals. Our products and services offering are listed below;

• Toilet Soap / Bathing Soap (Bar Soap) with different fragrance
• Baby Soap (Bar and liquid) with different fragrance
• Body Wash (Liquid Soap) with different fragrance
• Hand Wash (Liquid Soap) with different fragrance
• Dish Washer ( Liquid Soap)
• Clothe Washing Soap
• Car Wash (Liquid Soap)

4. Our Mission and Vision Statement

• Our vision is to establish a standard Soap Production Company whose product will not only be sold in Illinois, but also throughout all the states in America and in other parts of World.
• Our mission is to establish a standard and world class Soap Production Company that in our own capacity will favorably compete with leaders in the industry.
• We want to build a soap production business that will be listed amongst the top 10 soap and detergent brands
• We want to build a household brand name .

Our Business Structure

Cites® Soap Production Company is a business that is established with the aim of competing favorably with other leading soap and detergent brands in America. This is why we will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more depending how fast we meet our set target. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)

Plant Manager

Human Resources and Admin Manager

Sales and Marketing Manager

• Accountants / Cashiers
• Soap Making Machine and Packaging Operators
• Customer Services Executives

Distribution Truck Drivers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (Owner):

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for overseeing the smooth running of the soap production plant
• Part of the team that determines the quantity and variance of soaps and detergents that are to be produced
• Maps out strategy that will lead to efficiency amongst workers in the plant
• Responsible for training, evaluation and assessment of soap plant workers
• Ensures that the steady flow of both raw materials to the plant and easy flow of finished products through wholesale distributors to the market
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Ensures that the plant meets the expected safety and health standard at all times.
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Oversees the smooth running of the daily office and plant activities.
• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represent the company in strategic meetings
• Help increase sales and growth for the company

Accountant / Cashier

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Soap Making and Packaging Machine Operators

• Handles processes and procedures as it relates to the production and packaging of toilet soap (Bar Soap), Body Wash (Liquid Soap) with different fragrance, Hand Wash (Liquid Soap) with different fragrance, Dish Washer ( Liquid Soap), Clothes Washing Soap, Car Wash (Liquid Soap) and Detergent et al
• Assists in loading of soaps and detergents into distribution trucks
• Handles any other duty as assigned by the Plant Manager

Client Service Executive

• Ensures that all contacts with customer (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the store manager in an effective and timely manner
• Consistently stays abreast of any new information on Cites® Soap Production Company products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
• Receives parcels / documents for the company
• Distributes mails in the organization
• Handles any other duties as assigned by the human resources and admin manager
• Assists in loading and unloading soaps and detergents meant for distribution.
• Maintain a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
• Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment
• Assists the transport and logistics manager in planning their route according to a delivery schedule.
• Local-delivery drivers may be required to sell products or services to stores and businesses on their route, obtain signatures from recipients and collect cash.
• Transports finished goods and raw materials over land to and from manufacturing plants or retail and distribution centers
• Inspects vehicles for mechanical items and safety issues and perform preventative maintenance
• Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
• Collects and verifies delivery instructions
• Reports defects, accidents or violations

6. SWOT Analysis

We are quite aware that there are several soap production companies both large and small in America, whose products can be found in every nooks and crannies of the country, which is why we are following the due process of establishing a business so as to compete favorable with them.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

Cites® Soap Production Company employed the services of an expert HR and Business Analyst with bias in start – up business to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Cites® Soap Production Company;

Aside from quality and variety of soaps and detergents that we make, part of what is going to count as positives for Cites® Soap Production Company is the vast experience of our management team, we have people on board who are highly experienced and understands how to grow business from the scratch to becoming a national phenomenon.

So also our large national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.

A major weakness that may count against us is the fact that we are a new soap production company and we don’t have the financial capacity to engage in the kind of publicity that we intend giving the business.

• Opportunities:

The opportunities for soap production companies are enormous. This is due to the fact that soap is a universal product that can be found in all homes, canteen, laundries, hotels and toilets et al.

As a result of that, we were able to conduct a thorough market survey and feasibility studies so as to position our business to take advantage of the existing market for soaps and detergents and also to create our own new market. We know that it is going to requires hard work, and we are ready to give all it will take to achieve it.

We are quite aware that just like any other business, one of the major threats that we are likely going to face is economic downturn and unfavorable government policies. It is a fact that economic downturn affects purchasing power. Another threat that may likely confront us is the arrival of a new soap production company in same location where ours is located.

7. MARKET ANALYSIS

• Market Trends

The trend in the soap and detergent production industry is such that, any product that has been proven to be reliable and healthy tends to sell more and determine the direction of the market for such industry. You would quite agree that there are loads of soap and detergent brands out there in the market that you may have   to compete with.

One of the things that you need to do to get your own fair market share is to come out with a creative packaging for your soap and detergent and also come up with different fragrance and sizes. You might just have to consult a brand expert if you truly want to make it big with your soap making company.

Lastly, another trend in the soap production industry is that leading soap and detergent production companies ensure that they get well – known celebrity to become their brand ambassador. With that, it is easier for them to be able to sell their products and have an active presence in the industry.

8. Our Target Market

When it comes to selling soaps and detergents, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people or organization, but all those who resides in our target market locations.

In view of that, we have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to engage in the production and wholesale distribution of soaps and detergents to the following groups of organizations;

• Restaurants and Canteens
• Event Planners, Parties and Corporate Functions
• Corporate Executives
• Government Officials
• Business People
• Celebrities
• Pregnant women / Expectant mothers (for their babies)
• Military Men and Women
• Sports Men and Women
• Laundry Owners

Our Competitive Advantage

A close study of the soap and detergent production industry reveals that the market is becoming much more competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.

We are aware of the stiffer competition and we are well prepared to compete favorably with other soap and detergent production companies in Illinois and America.

Cites® Soap Production Company is launching a standard soap and detergent production brand that will indeed become the preferred choice for businesses and households in Lagos State and other states in Nigeria where we intend marketing our soap and detergents.

Part of what is going to count as competitive advantage for Cites® Soap Production Company is the vast experience of our management team, we have people on board who are highly experienced and understands how to grow business from the scratch to becoming a national phenomenon.

Lastly, our employees will be well taken care of, and their welfare package will be amongst the best within our category (startups soap and detergent production companies) in the industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Cites® Soap Production Company is established with the aim of maximizing profits in the soap and detergent production industry in both Illinois and we are going to go all the way to ensure that we do all it takes to sell our products to a wide range of customers all across America.

Cites® Soap Production Company will generate income by selling the following products;

10. Sales Forecast

One thing is certain when it comes to soap and detergent production business, if your soap and detergent are well – packaged and branded and if your production plant is centrally positioned and easily accessible, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in every city where our soap and detergent will be sold all across America and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.

We have been able to critically examine the soap and detergent production industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Illinois.

Below are the sales projections for Cites® Soap Production Company, it is based on the location of our business and other factors as it relates to small scale and medium scale soap and detergent production company start – ups in America;

• First Fiscal Year-: $45,000
• Second Fiscal Year-: $100,000
• Third Fiscal Year-: $400,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same product and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location to launch Cites® Soap Production Company we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market in our target market locations.

We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time and also for our soap and detergent to favorable compete with other leading brands in Illinois and throughout America.

We hired experts who have good understanding of the soap and detergent production industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Illinois and other cities in throughout.

In order to continue to be in business and grow, we must continue to sell our soaps and detergents to the available market which is why we will go all out to empower or sales and marketing team to deliver our corporate sales goals. In summary, Cites® Soap Production Company will adopt the following sales and marketing approach to sell our soaps and detergents;

• Introduce our soap and detergent brand by sending introductory letters to households, retailers, supermarkets, hotels, laundries, merchants and other stakeholders.
• Open our soap and detergent production company with a party so as to capture the attention of residence who are our first targets
• Engage in road show in targeted communities from time to time to sell our products
• Advertise our products in community based newspapers, local TV and radio stations
• List our business and products on yellow pages ads  (local directories)
• Leverage on the internet to promote our soap and detergent brands
• Engage in direct marketing and sales
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Irrespective of the fact that our soap and detergent production plant is a standard one with a wide range of soap and detergent fragrance that can favorably compete with other leading brands in the industry, we will still go ahead to intensify publicity for all our products and brand.

We are going to explore all available means to promote Cites® Soap Production Company. Cites® Soap Production Company has a long term plan of distributing our soaps and detergents in various locations all around America,  which is why we will deliberately build our brand to be well accepted in Illinois before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for selling our products but to also effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Cites® Soap Production Company;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
• Install our Bill Boards on strategic locations all around Lagos State and major cities in Nigeria
• Engage in road show from time to time in targeted communities
• Distribute our fliers and handbills in target areas
• Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing our products.
• Ensure that our soaps and detergents are well branded and that all our staff members wear our customized clothes, and all our official cars and distribution vans are customized and well branded

12. Our Pricing Strategy

When it comes to pricing for products such as soaps and detergents, there are two sides to the coin. We are aware of the pricing trend in the soap and detergent production industry which is why we have decided to produce various sizes of soaps and detergents.

In view of that, our prices will conform to what is obtainable in the soap and detergent production industry but will ensure that within the first 6 to 12 months our products are sold a little bit below the average prices of various soaps and detergents production brands in America.

We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our soap and detergent brands.

• Payment Options

The payment policy adopted by Cites® Soap Production Company is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Cites® Soap Production Company will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via online bank transfer
• Payment via mobile money
• Payment via Point of Sales Machines (POS Machines)
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for the purchase of soaps and detergents.

13. Startup Expenditure (Budget)

Starting a standard soap and detergent production company is indeed a capital intensive business. This is so because the amount required in setting – up a standard soap and detergent production plant is not a piecemeal. The bulk of the start – up capital will be sent on leasing or acquiring a facility and also in purchasing soap making equipment and accessories.

Aside from that, you are not expected to spend much except for purchase and servicing of distribution vans, paying of your employees and utility bills et al. We know that no matter where we intend starting our soap and detergent production business, we would be required to fulfill most of the items listed below;

• The Fee for registering the business (venture) in Nigeria – $750
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,500
• Marketing promotion expenses for the grand opening of Cites® Soap Production Company – $150,000
• Cost for hiring Business Consultant – $120,000
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,000
• Cost for payment of rent for 12 month and renovation inclusive – $3,500
• Other start-up expenses including stationery and phone and utility deposits – $5,000
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $500
• The cost for start-up inventory (chemicals and packaging materials, lye solution , oils, additives (colorants), and fragrances et al) – $70,000
• Cost for store equipment (cash register, security, ventilation, signage) – $50,000
• Cost of purchase of soap making machine, heat resistance plastic / stainless steel pitcher with lid, big stainless steel / plastic spoon, Stainless steel measuring spoons, measuring cups, small beakers, stick blender (for saponification process), a soap mold, soap pot, rubber spatulas, large stainless steel or plastic ladle, protective goggles, protective rubber hand gloves, Quick reading and accurate thermometer – $5,000
• The cost for the purchase of furniture and equipment (Computers, Printers, Telephone, Fax Machines, tables and chairs et al) – $800
• The cost of launching a website – $750
• The cost for our opening party – $500
• Miscellaneous – $1,000

We would need an estimate of $450, 000 to successfully set up a medium scale but standard soap and detergent production business. Please note that this amount includes the salaries of all the staff for the first 3 month of operation.

Generating Fund / Startup Capital for Cites® Soap Production Company

No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a business such as soap and detergent production company.

No doubt raising startup capital for a business might not come cheap, but it is a task that an entrepreneur must go through. Cites® Soap Production Company is a family business that is owned and financed by Mrs. Celine Bassek and her immediate family members.

They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources. These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sell of stocks
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $250,000 (Personal savings $200,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Cites® Soap Production Company is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our various fragrances of soaps and detergents a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Cites® Soap Production Company will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and construction of standard soap and detergent production plant: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members and friends: Completed
• Applications for Loan from the bank: In Progress
• writing of business plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of soap making machine, heat resistance plastic / stainless steel pitcher with lid, big stainless steel / plastic spoon, Stainless steel measuring spoons, measuring cups, small beakers, stick blender (for saponification process), a soap mold, soap pot, rubber spatulas, large stainless steel or plastic ladle, protective goggles, protective rubber hand gloves, Quick reading and accurate thermometer – Completed
• Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress

Need a consultation? Call now:

Talk to our experts:

• Business Plan for Investors
• Bank/SBA Business Plan
• Operational/Strategic Planning
• E1 Treaty Trader Visa
• E2 Treaty Investor Visa
• Innovator Founder Visa
• UK Start-Up Visa
• UK Expansion Worker Visa
• Manitoba MPNP Visa
• Start-Up Visa
• Nova Scotia NSNP Visa
• British Columbia BC PNP Visa
• Self-Employed Visa
• OINP Entrepreneur Stream
• LMIA Owner Operator
• ICT Work Permit
• LMIA Mobility Program – C11 Entrepreneur
• USMCA (ex-NAFTA)
• Franchise Business Planning 
• Landlord Business Plan 
• Nonprofit Start-Up Business Plan 
• USDA Business Plan
• Online Boutique
• Mobile Application
• Food Delivery
• Real Estate
• Business Continuity Plan
• Buy Side Due Diligence Services
• ICO whitepaper
• ICO consulting services
• Confidential Information Memorandum
• Private Placement Memorandum
• Feasibility study
• Fractional CFO
• Business Valuation
• How it works
• Business Plan Templates

Soap Making Business Plan Sample

Published May.10, 2018

Updated Sep.14, 2024

By: Brandi Marcene

Average rating 4.1 / 5. Vote count: 20

No votes so far! Be the first to rate this post.

Table of Content

Do you want to start soap making business?

Are you planning to start a homemade soap business plan ? Soap is considered to be a staple commodity that has been on the market for thousands of years. For this reason, the soap production industry is increasingly witnessing a growing trend and the sector is thriving. Millions of US dollars are generated annually from the small, medium and large scale soap production enterprises. According to statistics, global bath soap market revenue totaled $18 Billion in 2016. Numerous factors such as population growth, increased hygiene awareness, value addition and increasing demand for emerging markets have positively contributed to the growth of the soap making industry. There is no doubt, this is an excellent soap making business idea to venture into.

Executive Summary

2.1 the business.

The homemade soap business plan will be registered with the name Soapex Manufacturing and will be situated in Chicago, Illinois. The business will be owned and managed by Victor Smith who’s an experienced Soap Making Specialist.

2.2 Management Team

Victor Smith who is the owner and manager of Soapex Manufacturing is an expert soap making specialist with vast experience the soap making industry that spans over 30 years. During Victor’s career, he worked for renowned international brands such as Henkel, Church and Dwight and Procter & Gamble among others. Given his extensive experience, he has all the skills on how to start a soap-making business plan .

2.3 Customer Focus

Having an in-depth understanding of customer needs and local soap making trends is the key to targeting the appropriate customer segment. After examining and identifying local emerging opportunities, Soapex intends to reach out to customers who’re looking for revolutionary and unique products.

2.4 Business Target

Soapex Manufacturing plans to offer 100% proven, efficient, safe and reliable products to a wide range of customers. The soap-making business plan intends to target both domestic and commercial customers to boost its market revenue share.

Company Summary

3.1 company owner.

Victor Smith is an experienced soap making specialist whose successful career has enabled him ascend the corporate ladder and be put in charge of key positions across various blue chip companies in the United States. Having worked on various related projects, he has in-depth knowledge of how to start small soap making business .

3.2 Aim of Starting the Business

Even though the soap making industry has many industry players, the demand continues to grow steadily. Increasing population and the fact that the society is embracing new approaches to better hygiene has contributed to creating new opportunities for soap making entrepreneurs. For this reason, Victor was keen to start his own small soap making industry to meet these changing needs.

3.3 How the Business will be Started

With 3 decades of experience in the soap making industry, Victor Smith is an expert in methodologies of setting up a homemade soap business plan . To better understand financial issues and projections, he has teamed up with financial gurus to come up with a comprehensive financial analysis.

Services for Customers

Soapex Manufacturing has the intention of offering its clients a wide range of soap products. Unlike large manufacturers who produce their products using conventional methods, Soapex plans to adopt an organic and natural approach to ensure its range of products contains natural ingredients. This is amongst the best and most creative soap-making business ideas as it sets the business apart from many competitors. In order to be successful with how to start a soap business , you must study the market thoroughly and offer products that customers really need on a daily basis. In this regard, the soap making business plan intends to offer customers the following products:

• Offer bathing soap in a wide range of varieties i.e. strawberry, lavender and passion fruit among others
• Sell dish washing liquid detergent manufactured using natural ingredients and is completely safe to use
• Natural laundry and house cleaning liquid soap produced uisng the finest and powerful natural ingredients to effectively clean any type of clothes, fabrics, floors and surfaces
• Car wash liquid soap to give cars a perfect and attractive shine

excellent work

excellent work, competent advice. Alex is very friendly, great communication. 100% I recommend CGS capital. Thank you so much for your hard work!

Marketing Analysis of Soap Making Business

The soap making industry is highly lucrative and competitive at the same time. With the industry stable and growing, growth rates of over 4% have been witnessed since 1998. The soap making industry is quite fragmented and in the past, big brands commanded a huge market share. However, this has changed a lot with the entry of small soap-making businesses. Given the fact soap is practically used everywhere, the demand keeps increasing. In this soap making business plan , the business has identified the opportunities it can tap into to generate revenue.

5.1 Market Segment

In order to effectively meet the market needs, Soapex plans to sell different types of soap products after a careful market analysis of what is needed most in the market. The rise in demand for natural soap products has put the homemade soap business plan in an advantaged position since Soapex Manufacturing is all about making natural soap products that are safe, proven effective, and gentle on users.

Business plan for investors

5.1.1 households.

Households constitute a large percentage of customers the homemade soap business plan s to reach out to. Chicago is the 2nd largest city in the U.S. and with approximately 2 million households and Soapex stands a chance to gain handsomely marketing its products to domestic consumers. Homes are increasingly looking for natural home cleaning products which are free of chemicals. This is the reason why this business plan for soap-making company strictly emphasizes on the provision of domestic natural soap products.

Households provide a ready market for the business given the fact they require an all-inclusive product range from bathing soap, household cleaning, washing detergents and car liquid soap. The secret to success depends on a well-executed marketing strategy to target Chicago households as the competition for this market segment is extremely tight.

5.1.2 Restaurants

Because of their nature of business, restaurants, caterers and any other food-related industry business must have a constant supply of soap products for use in day-to-day activities. The food industry in Chicago is vibrant and for this reason, Soapex has a good opportunity to reach out to numerous restaurants and hotels to market its products. Players in the hotel industry are highly regulated to boost safety of food production and ensure clients come to a clean environment to enjoy business strategy services . Adequate emphasis is therefore put on using the right kind of soaps and detergents.

5.1.3 Schools and Day Care Centers

In the recent times, a lot of emphasis has been placed on boosting school hygiene standards with various initiatives started to ensure children wash their hands with good quality products to prevent spreading of dirt and germs. This is a good market the homemade soap business plan can reach out to increase revenue.

5.1.4 Offices

Offices have unique cleaning needs which demand quality cleaning products. Soapex produces various products aimed at serving the needs of corporate customers. This Chicago soap manufacturer business plan sample aims to find ways of adverting products to offices which are expected to generate a good source of revenue.

5.1.5 Laundry Shops

Laundry shops cannot run their businesses without having adequate stock of different types of soap products. This is potentially a great customer target area for Soapex to advertise its products. The soap making business plan is guaranteed to receive a constant supply of orders from local laundry shops.

5.2 Business Target

Given the high demand for soap products around the city, Soapex Manufacturing deals exclusively with natural soap products. There are numerous health and value added benefits associated with natural soaps and detergents. The soap-making business plan has also chosen a strategic location within the city to allow for faster distribution of products. With a diverse and unique product range, the soap making business plan template expects to realize an annual sales growth of 15-20%.

5.3 Product Pricing

In order for Soapex to penetrate the market, the soap making business plan has carried out a pricing survey and plans to have competitive product prices based on the market averages. This soap-making business plan outline also recommends offering discounted prices on products especially when the business has just begun operating.

There are numerous opportunities to explore in the soap making industry. We have been using conventional soap products for several years but market trends have begun to shift. More consumers are beginning to appreciate the benefits of using soaps made using natural ingredients. With the best strategies in place, Soapex stands a good chance to compete favorably on the market.

6.1 Competitive Analysis

When starting a soap making business plan , there is need to analyze the market in order to come up with an idea model that will sustain business operations. There are numerous soap making businesses in Chicago. However, Soapex is a natural oriented soap maker and has identified the best strategies to help the business stay ahead of its competitors.

6.2 Sales Strategy

For Soapex to effectively advertise its natural soap business idea to the target market, the following strategies will be used to market the business.

• Management to effectively market products and let the public know about the benefits of using natural soap products. This will be achieved by obtaining major corporate endorsements
• Advertise the soap making business using local media channels such as radio, television and newspapers
• Offer clients free product samples to allow them appreciate the benefits of using Soapex natural products.
• Direct mailing to households in targeted areas and corporate customers. Pamphlets will be dispatched to target customer locations.
• Emphasize on staff training to enable staff fully understand the benefits of natural soap products since they are the first point of contact for the business
• Advertise the business on digital media platforms such Facebook, Twitter and Instagram

6.3 Sales Forecast

To achieve its targets, Soapex has come up with a sales forecast to determine how the soap making business will perform when it starts operations.

Personnel Plan

Soapex plans to employ a team of staff to run the soap making business. How to start soap making business entails coming up with a personnel plan with the roles of each staff member well-defined. A staff budget should also be determined to enable a business know how much it will spend on salaries.

7.1 Personnel Plan

Soapex is owned by Victor Smith who will also be the manager of the homemade soap business plan . While preparations are being made for the business to open its doors to public, the following staff will be hired in the soap making business plan.

Owner/Manager Plant Manager 3 Soap Making Machine Operators 2 Marketing Associates 2 Distribution Truck Drivers 1 Security Guard

Successful applicants will undergo extensive training in order to know soap making business plan activities and how to manage the facility on a day-to-day basis.

Financial Plan

Soapex has formulated a comprehensive financial plan that will determine how the business will run and what shall be invested when starting a soap business . It is important to clearly define all the financial parameters in order to adequately plan business finances. In this soap making business plan , Victor Smith will finance the business and will be assisted by two investors. How to start your own soap business comes with numerous expenses and therefore, a bank loan for business plan will be secure to finance budget deficiencies.

8.1 Important Assumptions

Financial forecast for Soapex will be based on the assumptions below.

8.2 Brake-even Analysis

The Brake-even Analysis for Soapex is shown in the graph below.

8.3 Projected Profit and Loss

8.3.1 monthly profit.

8.3.2 Yearly Profit

8.3.3 Monthly Gross Margin

8.3.4 Yearly Gross Margin

Profit and Loss Analysis for Soapex is shown below.

8.4 Projected Cash Flow

Below is a summary of pro forma cash flow, subtotal cash spent, subtotal cash received, subtotal cash spent on operations and subtotal cash from operations.

Download Soap Making Business Plan Sample in pdf

Professional writers OGS capital specialized also on theme such as candle making business plan , starting a small embroidery business plan , craft brewery business plan , business plan for beauty products , mobile tanning business plan , and etc.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rated document, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

2 thoughts on “ Soap Making Business Plan Sample ”

This is great article and well written Sample of Business Plan.

Hello VICTOR this is very encouraging Am so much impressed and have learnt so much THANKS

Any questions? Get in Touch!

We have been mentioned in the press:

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Search the site:

handmade success

How to Start a Successful Soap Making Business

Discover the essential steps to kickstart your soap making business. This comprehensive guide provides insights on formulating unique soap recipes, sourcing quality ingredients, understanding the legalities, and effective marketing strategies. Ideal for aspiring entrepreneurs looking to turn their soap making hobby into a profitable venture.

Soap making can be a fun and creative hobby, but did you know it can also be a profitable business? If you’re passionate about soap making and have been considering turning your hobby into a business, this guide is for you!

☞ Ready to take your soapmaking business to the next level?

Discover how Craftybase soap making software can effortlessly streamline your production, track ingredients, and boost profitability.

Is a Soapmaking Business Right for You?

Before diving into the world of entrepreneurship, it’s important to determine if a soap making business is the right fit for you. Running a successful soap making business requires time, dedication, and hard work. Here are some questions to consider:

• Do you have a passion for soap making?
• Are you willing to put in long hours and hard work to build your brand and customer base?
• Do you have the necessary skills and creativity to formulate unique soap recipes?
• Are you willing to learn about the legalities and regulations of selling handmade products?

If your answer is yes to all these questions, then a soap making business may be the perfect fit for you! Let’s dive into the essential steps to start your successful soap making business.

Start with a Business Plan

Every successful business should start with a solid business plan. This will help you identify your target market, plan your marketing strategies, and set financial goals.

Your plan doesn’t have to be hundreds of pages to begin with, just start with the basics:

• Executive Summary – a brief overview of your business and goals (are you wanting soapmaking world domination, or a successful second income?)
• Market Analysis – research on your target market, competition, and industry trends (we will discuss this below)
• Target Market - what demographic are you looking to serve and how will you appeal to them?
• Product Line – description of the products you will offer and why they will stand out from your competition
• Marketing Strategies – how you plan to promote and sell your products
• Financial Plan – projected budget, expenses, and revenue

Keep in mind that having a well-thought-out business plan can also help you secure funding or loans from investors or friends and family, if needed.

Research the legal requirements.

Starting any business comes with legal requirements, and a soap making business is no exception. Before starting your business, it’s important to research and understand the legalities involved. Some common legal requirements for a soap making business include obtaining necessary permits and licenses, following safety regulations, registering your business, and complying with labeling and packaging laws.

Ensure you are operating your soapmaking business under the correct legal entity for your state and country. In the US, typical business structures used by soapmakers are a sole propietorship, a partnership or a limited liability company (otherwise known as an LLC).

Read more: How to choose the right structure for your handmade business →

Is soap a cosmetic?

It’s also important to note that different countries and states may have different regulations, so be sure to research and follow all requirements to ensure a smooth and legal operation of your soap-making business.

The Food, Drug Administration (FDA) develops regulations based on the different laws set by the Food, Drug and Cosmetics Act (FD&A Act). This act helps to protect public health by ensuring that drugs and devices are safe for human and animal use.

If your product meets the conditions of FDA’s definition of soap, it is regulated by the Consumer Product Safety Commission (CPSC) and not FDA. While if your product is a cosmetic, it is regulated by the FDA. This is why it’s really important to know which of your products falls under the category of “soap” and which is a “cosmetic”.

Traditional soap is made through the combination of fats and alkali. These fats can come from multiple sources including, animal and minerals. These fats are then degraded to fatty acid and mixed with alkali to form soap.

According to FDA, soap has to meet three conditions:

• The product must be composed mainly of “alkali salts of fatty acids”.
• The product’s cleaning action has to be resulted from these alkali salts. This means that if your product has synthetic detergents, it is not considered a soap.
• The product needs to be labelled and marketed only for use as soap. If it has other purposes, it is a cosmetic.

Generally speaking, traditional soaps that fit with the definition above are regulated in entirety by CPSC.

There are no specific regulations enforced by the CPSC for the labelling of soap. Hazardous substance labelling may need to be applied for situations where a strong degreasing agent is included that could potentially cause eye irritations - this however is not a common scenario for most soap makers.

Cosmetics are defined, by the FDA, as a product intended for “cleansing the human body, making a person more attractive, or changing a person’s appearance”. Some examples of cosmetics include:

• nail polish
• moisturisers
• toothpastes

If you have identified that your product is a cosmetic, it will be regulated by the FDA under the FD&A Act. According to FDA’s official website, “under this law, cosmetics must not be adulterated or misbranded”.

This means that cosmetics will need to be safe to use under a labelled or customary condition of use. Cosmetics that contain colour additives will also need to be approved. Their website further states that labels should not be deceptive, and manufacturers have a legal responsibility for the safety of their products.

Identify Your Target Market

Knowing your target market is essential for any business, and this is especially true for a soap-making business. Before launching your products, research the demographics of your potential customers such as age, gender, income level, and lifestyle.

It is often helpful to create personas of your ideal customers to better understand their needs and preferences as this will help you create targeted marketing strategies and tailor your products to meet their needs.

Read more: Finding the perfect target market for your craft products

Stand Out From the Competition

With the rise in popularity of handmade and all-natural products, the soap making industry has become quite competitive.

To stand out from the competition, consider offering unique scents or ingredients, experimenting with different packaging designs, or creating a niche product line for a specific target market.

Take some time to research other similar soap making businesses and see how they built their success, as well as any potential obstacles they faced.

Build Your Brand

Your brand is what sets you apart from other soap makers and helps you establish a unique identity. This includes your visual branding such as logo, packaging, and website design. A strong brand will help you attract customers and encourage repeat business. Take some time to research your competitors and find ways to differentiate yourself and stand out from the crowd.

This also includes choosing appropriate names for your soap bars - names that not only align with your brand but also resonate with your target audience. Consider using a soap name generator to help you brainstorm ideas and come up with creative, attention-grabbing names.

Choose Your Ingredients Wisely

One of the key components to making successful soaps is selecting the right ingredients. You’ll want to choose high-quality oils, fragrances, and colors to ensure your soaps look and feel luxurious.

Ensure that your ingredients align with your branding and mission, for example, if you’re going for an all-natural aesthetic make sure you select organic ingredients.

Understand that there is a balance to be found with quality ingredients and the price points that you’ll need to set to turn a profit. You may need to experiment with different suppliers and ingredients to find the right balance for your business and consider buying in bulk where possible to secure better unit prices.

Read more: 4 Pricing Mistakes Handmade Sellers Make →

Invest in Quality Equipment

Invest in quality equipment such as a scale, thermometer, measuring cups, and immersion blender. Having the right equipment will ensure that you can produce consistent, high-quality soaps time and time again.

It’s important to note that you don’t need to spend a fortune on equipment when starting out, but make sure you’re buying items that will last you for years and that are durable.

Develop your Recipes and Techniques

As a soap maker, your products are the heart of your business. This is why it’s important to develop unique, high-quality recipes and techniques that will set you apart from competitors. Experiment with different ingredients, scents, and designs to find what works best for you and your target market.

Create batch records for each of your soap products to maintain good records for GMP , and develop a series of standard operating proceedures that will allow you to create good products reliably and consistently.

Read more: How to create batch recipes for your soap products →

Find Your Sales Channels

Decide how you’re going to sell your soaps. Will you attend local markets or sell strictly online? Are you going to approach retailers to stock your products (i.e. consignment) or set up your own store?

Choosing your sales channels early on will help you develop a marketing strategy and guide the direction of your soap-making business.

Spend time creating engaging listing descriptions and high quality photos for each of your products to increase your chances of sales.

Read more: SEO strategies for Etsy sellers →

Adopt the right software for success

Managing a business can be challenging, and that’s why it’s important to have the right software in place to help you streamline processes. Consider investing in accounting, inventory management, and customer relationship management software early on in your soapmaking journey to keep track of expenses, sales, and customer data.

Craftybase is the software of choice for soap makers → because it is specifically designed to meet the unique needs of craft businesses.

It offers a comprehensive solution for managing inventory, tracking expenses, and monitoring sales. This software is especially vital for soap makers as it helps to track the cost of ingredients down to the gram, ensuring accurate costing and pricing.

Craftybase also provides detailed reports on profit margins, sales trends, and stock levels, keeping you informed and in control of your business. Ready to take your soap making business to the next level? Try Craftybase today for FREE and experience firsthand how it can streamline your operations and contribute to your business growth!

Read more: Why soapmakers need to track their inventory →

Start Small and Grow

Starting a soap making business can be overwhelming, but it’s important to start small and grow steadily. Begin by selling your products at local markets or online platforms before expanding to retail stores.

This will help you test your product line, gather feedback from customers, and adjust accordingly before scaling up.

What equipment do you need for a soap making business?

To run a successful soap making business, you will need a few essential pieces of equipment. These include a scale, thermometer, measuring cups and spoons, immersion blender, mixing bowls, molds, and safety gear such as gloves and goggles.

You may also want to invest in additional equipment depending on the size and scale of your business, such as a large melting pot for larger batches, a cutting tool for slicing soaps, and labeling equipment.

It’s important to research and invest in quality equipment from reputable suppliers to ensure consistency and safety in your soap making process. Additionally, consider the cost and space requirements of each piece of equipment before purchasing to make sure it aligns with your business goals and budget.

Remember, as mentioned above, starting small allows you to gradually invest in equipment as your business grows. Don’t feel pressured to have all the latest and most expensive equipment right away - focus on the essentials and upgrade as needed.

In Conclusion

Starting a soap making business is a great way to turn your passion into profit. Remember to create a business plan, build your brand, carefully choose your ingredients, invest in quality equipment, and find your sales channels. With these tips, you’ll be on your way to starting a successful soap making business. Be patient, persistent, and always remember to have fun on your journey!

Nicole Pascoe Written by Nicole Pascoe Nicole is the co-founder of Craftybase, inventory and manufacturing software designed for small manufacturers. She has been working with, and writing articles for, small manufacturing businesses for the last 12 years. Her passion is to help makers to become more successful with their online endeavors by empowering them with the knowledge they need to take their business to the next level.

How to Start a Bakery Business: The Ultimate Guide

What is an Operations Manager: A Guide for Small Manufacturing Businesses

Browse Topics

• Inventory Management
• Bookkeeping & Tax
• Compliance & Traceability
• Maker Success
• What's New?

Sign up for our newsletter

We ♥ to help makers just like you to become more successful. Please join our newsletter to receive regular updates and actionable tips on how to take your maker business to the next level!

We care about the protection of your data. Read our Privacy Policy.

Learn how other ambitious makers are growing their businesses

Join the Craftybase email community to get regular tips and recommendations by and for small makers like you! (Emails come just once a week — we know you’re busy ❤️)

* We hate spam as much as you do!