What to Think About Before Starting a Soap and Skincare Business in 2024

Starting a soap and skincare business is exciting, but it can also feel overwhelming at times. There are so many things to think about before you decide to commit your precious time and money. Whether you’re dreaming of selling at markets, stocking your products in shops, or building a thriving online business, here are the key things I think are important to consider.

1 Is Starting a Soap Business Right for You?

Before you jump in, it’s worth asking yourself why you want to start a soap and skincare business. Are you passionate about creating products that help people feel good in their skin? Do you dream of running your own business and having the freedom to work for yourself? Or perhaps you’ve fallen in love with the process of soap making and want to share your creations with the world.

Whatever your reason, it’s important to get clear on your goals and motivations. Starting a business takes time, effort, and patience, so make sure this is something you’re excited to commit to.

2 Understanding the Practicalities

Running a soap and skincare business isn’t just about making beautiful products, the reality is that you will probably only spend 15 or 20% of your time doing that part. There are practical steps you’ll need to take to get your business off the ground. Here are the essentials

• Legal Requirements In the UK, soap and skincare products are regulated. You’ll need to comply with cosmetic safety regulations, including arranging a Cosmetic Product Safety Report (CPSR) for each product you plan to sell. This ensures your products are safe and meet legal standards. I have a whole blog on that topic here. 

• Insurance Protect yourself and your business with public and product liability insurance. It’s non-negotiable if you’re selling to the public.

• Record Keeping  Keep track of your expenses, sales, and stock. This will make tax time much easier and help you understand your business finances.

3 Your Brand and Your Niche

The soap and skincare market is competitive, so finding your unique angle is really important. If you have been in my world for a while you will know that I talk about niche a lot.  Think about what makes your products different. Is it your use of locally sourced ingredients? Who your products are for? Your focus on sustainability? Or perhaps the aesthetic of your packaging? This blog will help you understand why that is so important.

Once you’ve identified your niche, create a brand that reflects it. From your logo to your social media posts, everything should feel aligned and authentic. Customers are drawn to businesses with a clear identity, so make sure yours stands out.

4 Pricing and Profitability

Pricing your products can be tricky, especially when you’re just starting out. It’s important to cover your costs (including materials, time, and overheads) while also ensuring your prices are competitive. Remember, your time is valuable, and your skills deserve to be compensated fairly.

If you’re unsure where to start, try breaking down your costs and researching similar businesses. Aim for pricing that feels fair to both you and your customers.

5 Selling Your Products

Decide where and how you want to sell your products. There are plenty of options to choose from, including

• Markets and Fairs Great for connecting with local customers and getting direct feedback on your products.

• Online Selling through your own website or platforms like Etsy or Faire allows you to reach a wider audience. Do consider the fees on external platforms however.

• Stockists Partnering with shops can help you grow your business and build credibility.

Think about where your ideal customers shop and focus your efforts there.

6 Marketing Your Business

Marketing is key to attracting customers and growing your business. Here are a few ideas to get started.

• Social Media: Platforms like Instagram and Facebook are perfect for showcasing your products and sharing your story but don't rely on these too heavily. Getting traction is tricky and you are reliant on the algorithm.

• Email Marketing Build an email list to keep your customers updated on new products and special offers.

• Blogging Share your expertise and build trust with potential customers by writing about topics that are related to your chosen niche.

7 Be Ready to Adapt

The world of soap and skincare is always changing, so stay curious and open to new ideas. Whether it’s experimenting with different ingredients, keeping up with trends, or refining your branding, flexibility is key to long term success.

Starting a soap and skincare business is a journey, and like any journey, it’s important to be prepared. Take the time to plan, learn, and build a strong foundation, and you’ll be well on your way to turning your dream into a thriving business.

If you’re ready to take the next step, check out my Soap Business Bootcamp My signature stand alone course for UK makers who want to turn their soap and skincare product making hobby into a small business but have no idea where to start?