How to Start a Hand Sanitizer

Start a hand sanitizer by following these 10 steps:

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

We have put together this simple guide to starting your hand sanitizer. 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 important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Business Name Generator

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name, we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability.

It's very important to secure your domain name before someone else does.

What are the costs involved in opening a hand sanitizer?

Most businesses need to start by creating an LLC and banking business accounts, as well as operating insurance. Legal requirements should be handled first, whenever possible. Initial costs will also focus on a building for packaging and manufacturing your product, obtaining bottles or containers for the hand sanitizer, and shipping your product to retail partners. You will also more than likely need a small staff, so salaries and worker insurance will also add to the initial costs.

What are the ongoing expenses for a hand sanitizer?

Most ongoing expenses pertain to the manufacturing of the product and salaries for your workers. Whether you’re buying or leasing a building, you’ll also have these payments. Maintenance of your factory machines will also be a factorable expense.

Who is the target market?

Any consumer looking to protect themselves and their family is a potential customer, with the 30-65 age groups representing some of your strongest customers.

How does a hand sanitizer make money?

Selling products, both in bulk for stores and individually to customers, generates revenue for the business.

How much can you charge customers?

A small to medium bottle of hand sanitizer is typically between 3-7 dollars, although some more established brands can charge even more. Specialty fragrances or bottle designs might also garner more money.

How much profit can a hand sanitizer make?

Profits will vary, but a successful hand sanitizer business can gross six figures annually.

How can you make your business more profitable?

Some hand sanitizer businesses are upping their manufacturing abilities to meet larger, more commercially suitable needs.

Other products in the personal hygiene market, such as soaps, can also become part of your branding.

Hand lotions may be a good option to offset the effects of hand sanitizer on skin.

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 hand sanitizer 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.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a Hand Sanitzer business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

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 hand sanitizer business is fairly specific in its scope. Experience in manufacturing, marketing, and advertising will be needed. Knowledge in chemistry and biology may be helpful, also. A person looking to open this type of business should also understand business and finances to help their business be profitable.

What happens during a typical day at a hand sanitizer?

For most hand sanitizer businesses, daily operations focus on manufacturing, bottling, and distributing products. Additionally, marketing and advertising and making contacts with potential buyers and customers is a regular occurrence.

What are some skills and experiences that will help you build a successful hand sanitizer?

As a product, hand sanitizer is nothing new, and there are lots of manufacturers of this product. This means that you have to develop a unique advertising and marketing angle. Understanding marketing, advertising, and business, in general, will be critical for success. Experience in shipping logistics will also help.

What is the growth potential for a hand sanitizer?

Currently, the market for hand sanitizers is excellent. Everyone is looking to keep safe and clean when coming in contact with the world, and sales are exceptional. We can expect to see some cooling of this trend, as the virus is abated. Starting a business now would more than likely prove profitable, but be aware of growing cautiously, as competition and public needs may fluctuate in the coming months.