Herbal soap is manufactured using plant extracts,
vitamins and other natural ingredients. Pharmaceutical soaps although highly
effective has some side effects.
The major attractions to herbal products are the ready
availability of raw materials and high demand. Other things are low startup
capital, poor government regulations on herbal products.
Although poor regulatory provisions encourage charlatans
with substandard products an entrepreneur needs only to focus on high quality
herbal soap and effective marketing strategy.
How
to Start an Herbal Soap Manufacturing Business
Write
a Business Plan
Write an herbal soap manufacturing business plan. The
plan should focus on the mission and vision statement, product development,
marketing and funding.
Then carry out a feasibility study to determine your
customer base. Your target customers will define the type of product to
produce.
There are herbal soaps that tackle dandruff and deodorizes
the body. The active ingredients in such products prevent prickly heat and work
as an antiseptic.
Register
the Herbal Soap Manufacturing Business
Although the manufacturing process distribution and sales
are monitored, herbal products are not strictly regulated. Some countries
provide drug identification numbers and require ingredients on the labels.
Incorporate the enterprise as a one man business or
limited liability company. Apply for manufacturer’s license and trade license.
Permits and licensing requirements are different from one
country to the next. Make sure you find out what is obtainable in your country.
The raw materials used to produce herbal soap vary based
on the manufacturer’s preference. Common ingredients found in herbal soaps are
juice extracts, oils, water and caustic soda. Some manufacturers use as much as
10 different herbal extracts.
Business
Premises Location
Situate your factory close to source of raw materials.
Other important locations are within residential areas or zoned commercial
areas.
Make sure the factory has ample space, car park and
storage area. More requirements are administrative building, loading area and
adequate utilities.
Fund
the Herbal Soap Enterprise.
Funds are needed to rent property, equipment, staff wages
and marketing. Other things are purchase of raw materials, registration and
permits.
Apply for soft loans from merchant banks or through
cooperative lending schemes. Target save or borrow money from friends and
family.
Hire
Staff
Your staff should be conversant with the manufacturing
process of herbal soap. It is difficult to patent such products so
manufacturers go to long lengths to hide the exact formula.
Selling
the Herbal Soap
Herbal soap manufactures spend lots of money pushing the
product. This is because the herbal product has to compete with regular soaps
in the market. Although herbal soaps have there own niche sector the same
customers patronize pharmaceutical soaps.
You can approach wholesalers, retailers and health stores
in your locality. You could create your own outlet for effective distribution
and monitoring.
Many practitioners focus on electronic media to attract
customers. Other traditional methods are flyers, posters and signage boards.
Build
a Website
Selling herbal products through a dedicated website is
very effective. Statistics have shown that practitioners who use this method
increase sales 70%.
Present your herbal soaps with high definition images.
Add full description of the properties and ingredients used in the manufacture.
Make sure your website is search engine optimized and add
a shopping cart. Use social media advertisement to drive targeted traffic to
your site.
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