The Four Stages of a Handmade Soap & Skincare Business

I have been doing a lot of thinking lately about the processes most soap and skincare business owners go through as they navigate the ups and downs of starting and growing their own soap and skincare business. There is no getting away from the fact that there are a lot of rollercoasters involved in being your own boss but it is also fair to say that business is not complicated, hard work yes but complicated - no.

I am in the fortunate position to have worked with hundreds of new and growing soap and skincare business owners over the last few years - almost all have been one woman  ( and occasionally one man) bands,  and most handmade soap and skincare businesses move through a similar journey. Understanding these stages helps identify what a business should focus on next.

Stage 1 – The Excited Maker

This is where nearly everyone begins.

The maker falls in love with creating soap and experimenting with ingredients, colours and fragrances. Friends and family begin buying products and encouraging you to sell your creations.

Typical signs you are here include

• lots of experimentation
• new product ideas constantly
• little business structure

At this stage the focus is learning and creativity. The risk is believing that making good soap and other products alone will create a business and that you need to make products for everybody.

Stage 2 – The Busy Seller

Many businesses remain in this stage for years.

The maker begins selling more seriously.

Typical activities include

• attending markets
 • opening an Etsy shop
• launching a website
• posting regularly on social media

Sales happen, but income can be unpredictable. Signs of this stage can include

• very busy Christmas seasons (although this will often be the case at all stages)
 • very quiet months during the year
 • constant effort required to generate sales and often just at in person events

This stage is often the most exhausting because the business depends heavily on the owner’s time, energy and presence at events. It is also often hit by poor weather, the area (and affluence) of the area you sell within and other things outside of your control, social media algorithms being a key factor.

Stage 3 – The Strategic Business

At this stage the owner begins thinking more strategically.

Instead of doing everything, they start asking better questions

• Which products actually sell well?
• Which sales channels work best?
• Who are the most loyal customers?

Typical changes may include

• simplifying the product range
• building stronger branding
• focusing on repeat customers
• choosing a few reliable sales channels

Examples might include

• wholesale accounts

• strong email lists
• repeat customer systems

Income becomes more predictable.

Stage 4 – The Established Brand

Some businesses eventually reach a stage where systems support the business rather than constant effort.

Characteristics include

• loyal customer base
• clear brand identity
• simplified production
• consistent pricing
• reliable repeat orders

Sales might come from a mix of

• repeat online customers
• stockists
• email marketing
• seasonal launches

The business becomes far easier to manage.

Most businesses get stuck between Stage 2 – Busy Seller and Stage 3 – Strategic Business

This is because moving between those stages requires the owner to move from doing more things to doing fewer things better and that can be tough.

It might involve

• reducing product ranges
• focusing on repeat customers
• raising prices
• choosing a clear niche
• letting go of ineffective sales channels

Moving from Stage 2 to Stage 3 is where I help most of my clients and I love seeing those light bulbs go off when we work together and they realise what change could mean for them. Sometimes we identify big gaps or things that just are not working in the business. Often my clients leave a Zoom call with a big long to do list but they understand why and are excited to make those tweaks or do the work. 

Ready to make changes in your business and reach the next stage? A Pick My Brains Zoom call is a great, cost effective way to obtain 1 to 1 support at an affordable price.