How kids can make money with soap
Starting a soap-making business is a wonderful blend of creativity and entrepreneurship. Whether you're dreaming of crafting organic bars, luxurious bath bombs, or therapeutic blends, your journey starts with understanding your customers and the market. Here’s a step-by-step guide tailored just for you, budding soap artisans!
Jobs to be Done
Why would someone buy your soap? People buy soap not just to clean themselves, but to enjoy a moment of luxury, pampering, or even health benefits if you're infusing your soaps with essential oils or organic herbs. Think of soap as not just a cleaning product, but an affordable luxury, a gift, or a way to create a spa-like experience at home.
Customer Discovery
To ensure your soap delights the senses and meets customer needs, engage in thorough customer discovery. Here are 10 questions you can use to gather insights:
What do you look for in a soap?
How often do you purchase artisanal or handmade soaps?
What scents or ingredients do you prefer and why?
Have you ever had any skin reactions to commercial soaps?
What is your budget for bath and body products?
Where do you usually buy your soap?
What would make you try a new soap brand?
Do you consider environmental or ethical factors when purchasing soap?
What packaging styles do you find most appealing or convenient?
Would you consider buying soap as a gift, and under what circumstances?
Tip: When conducting these interviews, focus on listening more than talking. Let the customers guide the conversation to uncover their true needs and perceptions.
Business Model
When planning your business model, consider:
Value Proposition: Offer unique blends that cater to specific customer needs like hypoallergenic options or exotic scents.
Customer Segments: Target niche markets initially, such as eco-conscious consumers or those interested in luxury bath products.
Channels: Begin selling online or at local craft fairs to directly interact with customers and receive immediate feedback.
Operations
Apply lean manufacturing principles by starting small to avoid excessive inventory costs. Produce batches based on demand to maintain freshness and quality while minimizing waste. This strategy aligns with the Just-In-Time production model from the Toyota Way, ensuring you only produce what you can sell.
Financials
Calculate your costs for materials, production, and distribution. Determine how many units you need to sell to break even and then to reach a profit milestone, like $1,000. Here’s a simplified formula:
Cost to produce one bar of soap: $2 (materials, labor, overhead)
Retail price per bar: $5
Profit per bar: $3
Number of bars to sell for $1,000 profit: Approximately 334 bars
Action Steps
Market Research: Spend a few weeks visiting local markets, browsing online forums, and talking to potential customers about their soap preferences.
Prototype Development: Create a range of small-batch soap samples incorporating the feedback you gathered.
Initial Sales Channel: Start selling at local craft fairs or online through platforms like Etsy to test the market response and refine your offerings based on customer feedback.
This framework sets you up to start a soap-making business grounded in real customer needs and preferences. Remember, the key to a successful business is not just a great product, but also deep understanding and engagement with your customers. Start small, learn fast, and scale your operations as you grow!
