How to Start Soap Making Business In 2021

Start Soap Making Business
Soap Making Business

Learn How to Make Soap

Category of soap comes under organic and natural product, which is possible only if you make soap naturally without any chemical usage.

Because of an increasing awareness in the society, in last few years especially after social media advancement, people have realized that natural and homemade products are beneficial for their health and for their skin as well. Hence, natural or organic homemade soaps already has a big market to be explored specially in India and its surrounding countries.

Let’s discuss little information at the concept of soap making business .


Demand of organic and natural soaps is very high in the market. People nowadays are liking natural and organic soaps are the ones that are being produced in factories and through synthetic means. This is a good sign for business that plan to make soap from home through some natural means.

Next  significant point to be considered is that the increasing number of varieties of soap that are out there in the market. It means that you have a long list of soaps that you can manufacture a choice form. An entertainer can select to manufacture multiple types or start from one type of soap, thus a good income can be generated through various type of varieties.

There is no doubt in this fact that natural soaps also give good health benefits to the users. If you take an example of aloevera soap have magical ingredients of aloevera properties which give good skin benefits to consumers. That’s why nowadays consumer are  preferring such varieties of soap which are made up of natural ingredients and give good skin benefits.

There are so many varieties of soaps in the market but if we compare it to the natural soaps, so  demand is very high and supplies very low.

Start a soap making business by following these steps:

  1. Plan your business. …
  2. Form a legal entity. …
  3. Register for taxes. …
  4. Business bank account & credit cards. …
  5. Set up business accounting. …
  6. Apply for necessary permits and licenses. …
  7. Get business insurance.


Education, Skills and Experience Useful In Running a Soap Making Business

Design Your soap Making Business Plan  

A written plan is a sign of strong base planning and increases ratio of success. Go online and study how to make a business writing strategy for soap making business.

Business Registration For Sop Making Business

Find out all legal norms to start new business in your state and city. Complete all legal terms to run your business freely without and tension.

Tex Registration For Soap Manufacturing

In general people hesitate to make tax registration, but it is necessary to run your business on large scale legally.Today all large scale businesses are running with complete tax registration and if you want to do work with them, you must have to be clean and clear.

Open a Bank Account For Soap Business

Business bank account is a very normal current account which is opened to complete all business transactions done by company owners.

How Much investment is Required For Start Soap Making business?

A small unit of soap manufacturing requires a space of about 750 square feet in which minimum 500 square feet should be constructed. To know about this financial model, we have assumed that such a place can be taken with an investment of around Rs. 5 lakhs with the all necessary water supply power.

Is Making Soap Easy or Difficult ?

Making soap is really very easy. All you have to do is to mix properly a lye solution by mixing the lye with water.

Organic Homemade Soaps

Steps to Starting a Soap Making Business

Expected Profit

If you guess an average income which you can earn as an individual with doing soap making business, that would be between 20,000 to 80,000 per month approx. It depends on your business  volume as well as margin which you will decide and of course market which will be captured by you. Demand of natural organic soaps is already increasing in the market and in this situation to make a market for new soap brand isn’t a big challenging task and if you have a good relationship skills, so you can make good numbers.

If you check data of  others natural soap manufacturers those are running business from last few years  are earning 1 to 2 lakh (INR) per month.

Target Customers For Your Homemade Bubbles

Local grocery shops–  You would begin your soap supplies with neighbourhood shops, all small and big retail shopkeepers can become your good consumers. They will help you in developing your initial market.

Supermarkets in your city– Supermarket trend is most popular and successful place to display new products or brands. They always need different kind of varieties to attract their customers and if you get any order from them, so this can be a good deal for you.

Hire sales boy and sales girl– Give advertisement in local newspaper or magazine for hiring home salesman or sales girls. Give your product to these people for direct home selling. If your product quality is good, and you’re giving in reasonable price, you can make many regular consumers  through this way.

Online retail stores– Online store is the best way to display your product and if you display your product in a very reasonable price as compare to others, surely you can make a good market through this way.

Restaurants and hotels– Hotels and restaurants frequent need of soaps for their customers. If you contact them and give your product in reasonable price and could convince them to take your products, this would be a lifetime best deal for you.

Beauty parlour and spas -Beauty parlour and spas are good consumer of soaps and other cosmetics you can display your products and give free sample to them for use.

All above mentioned tricks are helpful in running a successful hot process soap making business.

Manpower Requirement For Soap Business

To take work from them you must have basic knowledge of soap making, so that you could take proper work from them. Keep remember this thing that you always have skilled worker who has basic knowledge of soap manufacturing. On an initial level when you are starting homemade soap making 2 to 4 skilled workers are enough.

Raw Materials required 

Raw materials that are required for the soap making business are mentioned below.

A.Olive Oil 
B. Castor Oil 
C. Fragrances 
D. Lye 
E. Packaging Materials 
F. Some amount of water 
G. cream for cream-based soaps 
H. Glycerine for glycerine-based soaps 
I. Rose petals for Rose petal- based soaps varieties

Equipment Required 

You would also require various types of equipment, along with raw materials that would assist you in making soaps further at each stage.

A. Double Boiler or, 
B. A microwave 
C. Soap moulds 
D. Container for pouring soaps 
E. Weighing scale 
F. Gloves 
G. Miscellaneous equipment 
H. Eye protection equipment  
I. Wrapping sheets 
J. Plastic wraps 
K. Printer  

Your Profit Margin

 A common thought comes in mind many times to know about profit margin in your soap making business. Let me clear this to you here, be a part of FMCG you can make 10 to 25% maximum. However, through high selling volume a fantastic amount you can earn.


Few basic qualities are required for making any business successful such as discipline, self commitment, long perception, dedication, hard working and honesty. These qualities are not only helping to be successful for business only but also for any work which you take in your hands.

Sincerely thanks to all readers for reading this business article, all the very best to you all for your soap making business.

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