Soap making is often seen as an attractive business for aspiring entrepreneurs. On the Internet, you can find a lot of recommendations on how to build your own handmade soap making business. However, there are very few really successful attempts that have led entrepreneurs to payback costs.
The reason is that the production of soap, and especially its marketing, are in a highly competitive zone.
Trade networks are filled with all kinds of soap samples, ranging from household soap to various elite varieties. Manual production of soap always has a high cost, so its production volumes are small, and sales are generally measured in pieces. Despite the high quality, pleasant smell and beautiful appearance, it is very difficult to sell a bar of soap for $150-200. Typically, entrepreneurs, at best, sell small quantities of such soap to small private shops and pharmacies. Most often, all the soap produced is given away to relatives and friends, or sold in such small volumes that it is not necessary to talk about the payback of soap making as a business.
However, the industrial scale soap business shows high profitability, about 30-40%, and has every chance of becoming a successful enterprise, provided there is a demand for quality products.
To create your own soap making business, you need to do the preparatory work by studying, with the help of market research , the demand that exists for various types of soap. Despite the high saturation of the market, it is often possible to find their own niche for the production of unusual types of soap, successfully combining beautiful design with high quality products.
Of course, high competition from large manufacturers does not allow novice entrepreneurs to easily enter the market with new products. However, high sales volumes of household goods and a constant level of demand make it possible to count on success, with a good preparation of the basics and a well-calculated business plan.
Soap production
To create a soap production, it is necessary to choose a room away from the residential area, since such production will most likely be under strict control of supervisory authorities. To accommodate equipment and organize production, a room with an area of 120 to 300 square meters is required. meters, provided with sufficient power supply.
As equipment, in the industrial production of soap, the following are used:
- mixers,
- mills,
- molding machines,
- soap punching and cutting machines,
- refrigerators,
- conveyors and conveyors.
An important factor in successful sales is the beautiful packaging in which the soap is wrapped, and the packaging must be dense enough to retain the aroma of the soap and prevent it from drying out.
Animal and vegetable fats, synthetic acids, rosin, etc. are used as raw materials for soap making. The main attractiveness of the soap is given by the aroma and color, so the production cannot do without essential oils, dyes, fruit acids and perfume additives.
By the way, well-established technology and original recipes are important components of the success of products, which allow you to win the trust of customers and occupy a market niche.
The cost of purchasing equipment and preparing a room for soap making is about 3-4 thousand dollars. About a million will still have to be spent on the purchase of an initial stock of raw materials and necessary components. It is also necessary to have financial reserves for the maintenance of the business and the payment of wages, up to the output of production on profitability.
In general, the cost of industrial production of soap can be estimated from 5 to 10 thousand dollars. It is realistic to recoup such costs within two to three years, if it is possible to organize the sale of all manufactured products.
Such tough conditions make it necessary to strictly adhere to a business plan, the order of which on our website will allow you to get the necessary economic calculations to start investing in a new business.