The folks over at Profitable Venture created an in-depth post for people considering starting their own soap business. Wondering how much it will cost to start? Worried about competition? Not sure what legal documents are needed?
My Business Started as a hobby
Like many soap makers I got started making soap as a way to express my creativity. What I quickly learned was people were ready, willing and able to buy my soap. I just needed to make it available…or was it more to it.
Starting a business can be as simple or as complex as you make it. What I would advise with my hindsight of starting a soap making business are the following 4 areas that are often overlooked..
It all starts with a Business Name
What are you going to call your brand new business? Don’t spend too much time on this but really think about it and then research it to make sure it’s not already taken. I would first recommend typing your desired name into the web and seeing if anything shows up. They may not have the “legal rights” to the name BUT do you really want someone else’s business to show up when your customers are searching for you? I would even venture on Social Media sites like Instagram, YouTube, Facebook and Twitter and do a search on your desired business name. Once these places are searched, take a look at trademark office and search for the name as well. If you have lucked up and your name hasn’t been taken seal the deal and make it your own.
- Buy the domain name – This site allows you to get domain names fairly cheap.
- Grab your social media handles. Even if you are not going to be active, grab your handles now so it’s not taken when you are ready to start leveraging Social Media. At a minimum you should create accounts on: Youtube, Facebook, Instagram, Pinterest and Twitter
- Consider trademarking but this can get pricey when you are just starting out.
Take care of all the legal requirements
This includes local, state and federal requirements for registering your business as an entity. Luckily you have already decided on a business name in the previous step because you will need it for all the legal stuff. Also take care of protecting yourself with insurance. The HSCG offers a great insurance program for it’s members. Look into it and make sure you have adequate coverage if you will be selling to the public. Make sure you get an EIN number for tax purposes. Seek guidance from a tax professional in deciding how to best setup your business.
Setup a Business Bank Accounts and Payment Processors
Keep your personal money and business money separate. The best way to achieve this is through a business bank account. Once you have the business bank account setup create accounts with payment processors. I highly recommend paypal or stripe as as most people are used to these platforms but you can definitely look around for the best service for you.
While it can be overwhelming to consider starting a soap making business the sure fire way to NOT actually do it is by doing nothing. Commit to doing something everyday that gets you closer to starting your own business and one day you will look back and say “hey, it wasn’t that hard”.