How to Revive a Struggling Soap and Skincare Business in 2024
This is a few thoughts of what I would do if my business was struggling, not making the sales that I wanted, or just generally plateauing in 2024. It is fair to say we have had a lot to contend with in recent years. Covid, Brexit, spiralling raw material and energy prices and the cost of living crisis so if any small, handmade business out there is claiming they are unaffected I would take that with a pinch of salt. The good news is however that this is an opportunity to make changes without having to justify your reasons, I just gave you plenty of reasons, and an opportunity to future proof your business and maybe even correct bad choices that you made previously.
This blog is an overview of a more detailed YouTube video over on my channel. If you would like to watch that you can find it here. Please do subscribe as that helps me reach more people.
This is not a whole business strategy - it is just 3 things that you can look at initially and take action on if it is relevant for you.
1. Assess Your Product Range
First things first, I'll keep this short and sweet. Business isn't rocket science—it's generally about having the right product, selling it at a profitable price, and maintaining a steady supply of customers. If you're not making sales or things aren't working out as you had hoped, it's usually one of those three things that need tweaking.
Evaluate Market Changes
The world changes, and so should your product offerings. Keep an eye on the economy, global events, and raw material prices. While you can't control these factors, you must adapt to stay viable. For example, if Apple were still selling iPods, they wouldn't be where they are today. They've evolved, and so must we.
Recent events like COVID-19 have shifted shopping habits online, creating a temporary boom for small businesses. However, that captive market isn't the case anymore. The Ukraine war has impacted raw material costs and availability, and poor crops for olive oil and cocoa butter have driven prices up. By being aware of these factors you can adapt and make informed decisions that will be sustainable moving forwards.
Product Line Review
Review your products regularly, ideally at least twice a year. Analyse each product—is it selling? If not, why not? Is it aligned with your business and your customer base. If not consider discontinuing it. If new types of product are really taking off and are a match for your customers - add them. Personally, I'm currently focusing on streamlining my range to reduce raw material costs and stock management complexity.
2. Reevaluate Your Pricing Strategy
If your prices are not giving you sufficient profit, your business won't succeed. You might need to increase prices or find ways to reduce costs, such as making products smaller or switching ingredients. Pricing is crucial—ensure it covers costs and provides a healthy profit margin.
3. Ensure a Steady Supply of Customers
Having a regular supply of customers is vital. This involves understanding your niche, being good at marketing, and being active on social media. Drive traffic to your website and meet potential customers wherever they are—online or in person.
Marketing Strategies
- Email Marketing Collect email addresses and keep in touch with your audience.
- Social Media Stay active and engage with your followers.
- Wholesale Partnerships Consider working with wholesalers to expand your reach.
- Collaborations Partner with businesses that share a similar customer base.
- Popup Shops Participate in events where your target customers are likely to be.
Regularly review your marketing strategies to ensure they align with your business goals.
Conclusion
In a nutshell, streamline your products to focus on those that sell well, ensure your pricing is profitable, and maintain a steady supply of customers. These three steps are key whether you're looking to grow your business or ensure its sustainability.
I hope this helps! Let me know your thoughts in the comments. This blog is an overview of a more detailed YouTube video over on my channel. If you would like to watch that you can find it here. Please do subscribe as that helps me reach more people.
If you are finding my Soap and Skin Care Business advice useful and are a UK business owner why not come and join the inner circle of the Soap Suite. This is an online membership of other skin care business owners who are already benefitting from being part of an amazing community and making use of the extensive resources inside. Everything from starting an email list to approaching wholesalers to branding and DIY product photography and everything else inbetween. Despite all the resources they all say the same thing - the community of like minded, UK only business owners, is like nothing you will find elsewhere and keeps them sane in an every more challenging world. Membership is just £20 a month and there is no tie in. Find out more about the Soap Suite here.
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