How to Start a Bath Product Business

Start a bath product business by following these 10 steps:

1. Plan your Bath Product Business
2. Form your Bath Product Business into a Legal Entity
3. Register your Bath Product Business for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Bath Product Business
6. Get the Necessary Permits & Licenses for your Bath Product Business
7. Get Bath Product Business Insurance
8. Define your Bath Product Business Brand
9. Create your Bath Product Business Website
10. Set up your Business Phone System

We have put together this simple guide to starting your bath product business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is very important. Read our detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

What are the costs involved in opening a bath product business?

While there are some startup costs to a bath products business, they can be relatively low, and you can get it off the ground for $1,000. You can start small and grow the business as you make more money. Basic equipment and ingredients to make the bath products as well as packaging for your products, marketing, a website, and a camera are all essential costs for a bath products business. 

What are the ongoing expenses for a bath product business?

The largest ongoing expense will be the ingredients for the items you produce. As long as you have priced your bath items well, you will sell more than enough to make back your money. 

Who is the target market?

Since everyone uses bath products, your potential target market is large. However, it is best if you select a specific type of target. For example, you could produce animal and environmentally-friendly products. You could also target those who want to give bath products as gifts during the holidays. 

How does a bath product business make money?

You are going to make money in this business by selling bath and body products. You can sell the products individually or in sets. In addition, you can offer unique sets at specific times of the year. 

How much can you charge customers?

Your products may sell for about five to nine dollars an item, depending on the item. If you make your product by hand, it will likely sell for more than you would find in a retail store. Consider offering discounts to customers purchasing multiple packs of products. You can check your competitors’ websites to determine what they are charging for items. 

How much profit can a bath product business make?

There have been many large-scale businesses that started as small, part-time shops. However, as long as you remain committed, courteous, and dedicated to hard work, you can grow your business. 

How can you make your business more profitable?

You can make your business more profitable by offering additional products. For example, you can add items such as hair care, lip balms, or products for pets. 

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your bath product business is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

A bath products business is ideal for someone that loves making bath products. If you enjoy looking for new ways to create a pampering experience for others, this may be the business for you. Handmade soaps that are made with natural ingredients sell well as people are always on the hunt for something that feels and smells good, as well as is good for them.

What happens during a typical day at a bath product business?

If you are making your own products, a significant portion of your day is spent making those products. However, if you are sourcing your product from someone else, you may spend your day looking for quality products that you want to sell. In addition, you will spend time marketing your business and reaching out to potential and existing customers. 

What are some skills and experiences that will help you build a successful bath product business?

While you do not need a special type of degree or certifications to make bath products, you do have to know how to make them. Creating unique products that are different from those that are currently available is important for this saturated industry. Visual appearance plays a large role in how customers see your product. Finally, you are going to have to be creative in the way you promote your business. 

What is the growth potential for a bath product business?

Bath products are considered a commodity, and the expected growth is about 4.6%. People are always in need of bath products. Many people are looking for unique or special bath products that they cannot find anywhere else.