When the Soap Hits the Fan. Why Even Small Businesses Need a Bit of Wiggle Room

Running a handmade soap and skincare business in the UK can be a lot of fun, but also full of surprises. Some of those surprises are brilliant, selling out at a market, a new wholesale enquiry, a lovely review from a happy customer. But others are less pleasant. Like finding out your supplier has discontinued the bottle you use on your one of your best selling products. Or that cocoa butter has doubled in price. Or, in my case, realising none of your labels fit the new version of your cologne bottle that your supplier didn't bother to tell you had changed! They just sent it out! Yes that really happened. Into the bin those labels went.

These are the little (and sometimes not so little) moments that can throw a handmade business off course. And unless you’ve built in a bit of flexibility, or have a plan B, they can become big problems.

That’s why I dedicated this month’s Soap Suite session to something often overlooked. Contingency planning for handmade businesses.

I know contingency sounds like it belongs in a boardroom. But really, this is about asking yourself simple questions like

• What would I do if I couldn’t get my key ingredient?

• What if my biggest stockist closed down?

• What if an event got cancelled and I needed to replace that income quickly?

Small doesn’t mean simple

Many makers assume that only big businesses need a backup plan or stick their heads in the sand. But future proofing a soap business is just as important when you’re a one person band. In fact, it’s more important because if something goes wrong, it’s usually you who has to deal with it. Alone and quickly.

Here are a few of those moments I have had myself

• During COVID, I couldn’t get the bottles I needed for my shampoo line. Luckily, I keep a financial buffer in my business, so I could buy thousands in one go from the next level wholesaler and keep going. It brought me another problem in the form of storage space but at least I could carry on.

• A wholesale order once got damaged in transit. Because I had spare stock and packaging materials on hand, I could replace it quickly without stress and my client was happy with the way it was handled.

• As already mention, my supplier once changed a bottle design without telling me. Suddenly, none of my pre printed labels fit. An expensive lesson, and one I won’t forget.

These aren’t big disasters on their own. But when your business is small and your margins are tight, they can really hurt unless you’ve got a bit of wiggle room.

What we covered in the Soap Suite session

In this month’s live session, we talked about

• How to identify single points of failure in your business

• What a realistic Plan B looks like for soap and skincare makers

• Flexible soap business strategies you can start using now

• Ways to improve cashflow and reduce stress without relying on constant events

• A real time mini audit with one of our members to see how all this works in practice

This wasn’t about being dramatic. It was about protecting the businesses we have all worked so hard to build and making sure it doesn’t fall apart the moment one piece slips.

Small actions that make a big difference

If you’ve never thought about what might go wrong in your business, now’s a great time to start. And it doesn’t need to be complicated.

Here are a few things to consider

• Keep an alternative supplier on hand for key ingredients and packaging

• Start building an email list so you can sell directly to loyal customers

• Have one 'quick cash' product (like a mystery box or seconds sale) ready to launch

• Don’t rely too heavily on one event or one sales channel

• Set aside a small financial buffer when you can, even if it’s just a little each month

Getting your business on a secure footing isn’t just about scaling or launching new products. Sometimes, it’s about shoring things up so you can keep going when things get wobbly.

A gentle nudge

This isn’t a formal business continuity plan. You don’t need a 10 page spreadsheet. You just need to know where your own sticking points are and what you’ll do if one of them gives way.

Because when the soap hits the fan (and it will, from time to time), you’ll be glad you’ve got a bit of breathing space.

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