Start a bath product business by following these 10 steps:
- Plan your Bath Product Business
- Form your Bath Product Business into a Legal Entity
- Register your Bath Product Business for Taxes
- Open a Business Bank Account & Credit Card
- Set up Accounting for your Bath Product Business
- Get the Necessary Permits & Licenses for your Bath Product Business
- Get Bath Product Business Insurance
- Define your Bath Product Business Brand
- Create your Bath Product Business Website
- Set up your Business Phone System
There is more to starting a business than just registering it with the state. 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 are the startup and ongoing costs?
- Who is your target market?
- How much can you charge customers?
- What will you name your business?
Luckily we have done a lot of this research for you.
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.
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.
STEP 2: Form a legal entity
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.
Form Your LLC
Read our Guide to Form Your Own LLC
Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.
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!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
Small Business Taxes
Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).
You can learn more about small business taxes in these guides:
- LLC Taxes
- Sole Proprietorship vs LLC
- LLC vs Corporation
- LLC vs S Corp
- How to Start an S Corp
- S Corp vs C Corp
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.
Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.
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.
Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.
Open net 30 accounts
Net 30 accounts are used to establish and build business credit as well as increase business cash flow. With a net 30 account, businesses buy goods and repay the full balance within a 30-day term.
NetMany net 30 credit vendors report to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.
Recommended: Read our best net 30 vendors, guide and start building business credit.
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.
Recommended: Apply for an easy approval business credit card from Divvy and build your business credit quickly.
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.
Learn more about General Liability Insurance.
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.
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.
If you already have a logo, you can also add it to a QR code with our Free QR Code Generator. Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.
How to promote & market a bath product business
Not only do you want to advertise your bath products, but you want to find something unique about them and advertise those particular things. For example, perhaps you have a rarely used scent, or you sell specially sized packages. Once you find your niche, create a website and advertise on social media.
How to keep customers coming back
You are selling an experience with your products.Your logo and packaging should spark a feeling within your customer. You want to attract them with your logo and packaging as much as with your products. As long as you are producing quality bath products, your customers will come back to buy more products. Also, be sure to get the email address of your customers to stay in touch with them.
Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.
STEP 9: Create your business website
After defining your brand and creating your logo the next step is to create a website for your business.
While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Here are the main reasons why you shouldn’t delay building your website:
- All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
- Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
- Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.
Using our website building guides, the process will be simple and painless and shouldn’t take you any longer than 2-3 hours to complete.
STEP 10: Set up your business phone system
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2022 to find the best phone service for your small business.
Recommended Business Phone Service: Phone.com
Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.
Start a Bath Product Business in your State
- District of Columbia
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- West Virginia
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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.
Want to know if you are cut out to be an entrepreneur?
Take our Entrepreneurship Quiz to find out!
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.
Take the Next Step
Find a business mentor
One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
Learn from other business owners
Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.
Resources to Help Women in Business
There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:
If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.
What are some insider tips for jump starting a bath product business?
One of the best tips for this type of business is to start making bath products in your spare time before you start the business. This gives you time to experiment with scents and textures and allows your friends to give you honest feedback. However, if you have a full time job, do not quit it to start this one. Since it may take a while for you to make money with this type of business, consider starting this as a side hustle before committing to the business full time.
How and when to build a team
Your business will keep you busy as long as you have customers buying your products. You may have to start out on your own because you may not have enough money to pay an employee. Once you are making enough income, you should consider bringing in at least one part-time employee.