Starting a liquid soap business is a smart way to meet the rising global demand for hygiene products. It is used daily in homes, schools, hospitals, and offices, making it one of the most consistent and profitable products to sell.
This guide will walk you through every step, from setup to production, packaging, marketing, and scaling. Whether you are starting small or planning to go big, there is something here for you.
You will also find helpful tools like business templates in our shop to support your journey.
See also: Proven steps to start a successful business.
Key Takeaways
- The liquid soap business is a low-entry, high-demand venture that offers consistent profitability across domestic and global markets.
- Success depends on quality formulation, effective branding, and smart pricing tailored to your target customers.
- Diversifying your product line and selling through multiple channels increases visibility and revenue potential.
- Compliance, consistency, and marketing are critical if you plan to scale or export your liquid soap products.
How to Start a Liquid Soap Business – Step-by-Step Guide
To start a liquid soap business, you need more than just a good formula. You need a clear roadmap, access to the right tools, proper registration, and a plan to reach your customers.
Each step you take lays the foundation for a scalable and sustainable business.
Step 1: Write a Business Plan
Your business plan defines the direction of your liquid soap business. It helps you clarify your goals, target market, pricing, and marketing strategy.
It also comes in handy when approaching investors or applying for business loans.
A standard liquid soap business plan should include the following:
Section | What to Cover |
---|---|
Executive Summary | Overview of the business idea and what makes it unique |
Product Description | Types of liquid soap you will produce and their intended users |
Market Analysis | Industry trends, customer needs, and competitor review |
Operations Plan | How production will be carried out, staffing, and logistics |
Marketing Strategy | Sales channels, promotion methods, pricing, and branding approach |
Financial Projections | Startup costs, operating expenses, expected revenue, and profit margins |
To make this step easier, you can get a professionally designed business plan template from our shop. It is tailored specifically for the liquid soap business and saves you hours of formatting and guesswork.
Step 2: Register Your Business
Registering your liquid soap business gives you legal backing, protects your brand name, and builds trust with buyers.
In Nigeria, this process is handled by the Corporate Affairs Commission (CAC). If you intend to sell on a large scale, you may also need to register with NAFDAC.
Requirement | Details |
---|---|
CAC Registration | Needed for all business entities. Can be done online or through a registration consultant. |
NAFDAC Number (optional) | Required for mass production and sales in retail outlets. |
Trademark (optional) | Helps protect your soap brand name and logo from being copied. |
If the registration process feels overwhelming, you can use our business registration service to complete it hassle-free, from name search to certificate delivery.
Step 3: Secure a Production Space
Where you produce your liquid soap depends on your scale. If you are starting small, a spare room or clean kitchen can suffice.
For medium to large operations, consider renting a dedicated space to comply with hygiene standards and improve efficiency.
Production Scale | Space Recommendation |
---|---|
Small Scale | Home kitchen, laundry area, or clean spare room |
Medium Scale | Rented workshop or shared production hub |
Large Scale | Full factory floor with designated zones for mixing, packaging, and storage |
Ensure your production area is well-ventilated, secure from contamination, and spacious enough for safe movement during mixing and bottling.
Step 4: Purchase Ingredients and Equipment
The quality of your liquid soap depends on the raw materials you use. You need a mix of chemicals, additives, fragrance, colour, and water, plus the tools to measure, mix, and package your product.
Essential Ingredients | Function |
---|---|
Sulphonic Acid | Main foaming agent |
Caustic Soda | Acts as a cleansing and stain-removal base |
Soda Ash | Helps balance the pH and adds thickness |
Nitrosol or Antisol | Thickening agent |
Texapon | Boosts foam and improves texture |
STPP | Enhances cleaning power and keeps oils suspended |
SLS | Extra foam booster |
Formalin (optional) | Preservative for longer shelf life |
Perfume and Colour | Adds fragrance and visual appeal |
Basic Equipment Needed | Purpose |
---|---|
Mixing Bowls or Drums | For combining ingredients |
Stirring Stick or Mixer | For uniform blending |
Measuring Cups and Spoons | For accurate proportions |
Funnels | For pouring soap into containers |
Bottles and Labels | For packaging and branding |
Hand Gloves, Nose Mask | For protection while handling chemicals |
In Nigeria, Ojota Market in Lagos is one of the best places to get quality ingredients in accurate measurements. If you are outside Nigeria, you can find supplies on platforms like Alibaba or Amazon, but check that the suppliers are verified.
Step 5: Learn and Master the Production Process
Knowing how to make liquid soap is critical to your business success. It is not just about mixing ingredients; the process affects product consistency, foam quality, scent retention, and shelf life.
Always measure accurately and follow the mixing order to avoid poor texture or separation.
A typical 20-litre batch process includes:
- Soak caustic soda and soda ash separately for several hours.
- Mix sulphonic acid with Texapon and perfume in a separate container.
- Dissolve STPP and SLS in clean water.
- Pour Nitrosol (or pre-soaked Antisol) into your main mixing drum with some litres of water.
- Add the acid and Texapon mix, followed by dissolved caustic soda, soda ash, STPP, and SLS—stir after each addition.
- Add colour and formalin if required, and leave the mixture to settle before packaging.
Proper training can help you avoid costly mistakes. You can learn through hands-on sessions or by using our free and premium soap-making resources available on the Entrepreneurs.ng shop.
Step 6: Package and Label Professionally
Packaging is what makes your liquid soap stand out. Customers often judge the quality of a product by how it looks. Your bottle, label, and branding must be neat, professional, and informative.
Packaging Option | Best For |
---|---|
Recycled PET Bottles | Small scale startups, eco-conscious markets |
Branded Plastic Bottles | Medium to large scale, retail distribution |
Bulk Gallons | Wholesale clients, industrial use |
Make sure to include the product name, ingredients, production date, expiry date, volume, and cautionary instructions on your label.
You can use simple waterproof labels or invest in professionally printed branding assets. Our shop also offers logo design and brand identity kits to give your packaging a polished finish.
Step 7: Market and Sell Effectively
A good product will not sell itself, you must actively promote it. Combine word-of-mouth, social proof, and digital platforms to reach your target audience. Start with your immediate community and grow your reach over time.
Marketing Channel | How to Use It |
---|---|
WhatsApp and Facebook | Share product photos, testimonials, and offers with local contacts |
Post visuals of your soap, packaging process, and customer reviews | |
Local Supermarkets | Offer samples and negotiate to stock your products |
Events and Weddings | Package soap as souvenirs or gifts and brand the packaging |
Online Marketplaces | List on platforms like Jumia, Etsy, or Amazon depending on region |
Offering a discount to first-time buyers or a small commission for referrals can help drive repeat sales and word-of-mouth growth.
Step 8: Monitor, Improve, and Scale
Track your sales, customer feedback, and production costs from the very first batch. Use this data to improve your formula, packaging, and pricing over time.
As demand increases, reinvest your profit to scale up your production and expand your product line.
Scaling Strategy | Benefit |
---|---|
Introduce New Variants | Attract different customer segments (e.g., baby-safe or herbal soaps) |
Upgrade Equipment | Boost efficiency and consistency |
Register with NAFDAC | Sell in supermarkets and expand across regions |
Explore Export Opportunities | Reach international markets and increase revenue |
Growth in this business is steady when you stay consistent and open to learning. You can also join the Entrepreneurs Success Blueprint Program to learn tested strategies for scaling product-based businesses.
Why Liquid Soap is a Profitable Business
The liquid soap business is one of the few product-based ventures with consistent demand, low production cost, and high profit margins.
With proper planning and execution, it can generate steady income and scale into a reputable brand.
Low Startup Cost, High Return
Starting a liquid soap business does not require heavy capital. With a small batch, you can start production at home and sell to your immediate market.
As demand grows, you can scale gradually without the need for massive upfront investment. A basic production setup can cost under $100, yet the same batch can return up to $300 depending on your market.
Batch Size (Litres) | Production Cost (USD) | Estimated Revenue (USD) | Estimated Profit (USD) |
---|---|---|---|
20 | 30 | 90 | 60 |
50 | 70 | 200 | 130 |
100 | 120 | 400 | 280 |
Everyday Essential, Repeat Purchase
Liquid soap falls under the category of essential goods. It is used daily across homes and businesses, which means customers will keep buying once they trust your product.
This repeat-buy behaviour makes it easier to project sales and build loyalty.
Easy to Scale and Diversify
From simple hand wash to dishwashing liquid, floor cleaners, and organic options, there are multiple variations you can produce under the same brand.
This flexibility allows you to test different product lines and expand into new markets without starting from scratch.
How Much Do You Need to Start a Liquid Soap Business
One of the key advantages of starting a liquid soap business is the flexibility in startup costs. You can begin with a small amount of capital and grow the business gradually, or invest more upfront for a larger setup.
The actual cost depends on your production scale, packaging quality, and marketing strategy.
Startup Cost Breakdown
Here is a breakdown of typical costs for small, medium, and large-scale liquid soap businesses. These estimates cover ingredients, basic equipment, packaging, and branding essentials.
Scale | Estimated Capital (USD) | What It Covers |
---|---|---|
Small Scale | $50 – $150 | Basic tools, ingredients for 20–50L, starter bottles, simple labels |
Medium Scale | $200 – $700 | Ingredients for 100L+, mixing tools, measuring kits, branded bottles, initial marketing |
Large Scale | $1,000 – $5,000+ | Production space, industrial mixers, staff salaries, bulk packaging, digital branding |
The cost can be lower or higher depending on location, material sourcing, and how much work you outsource.
For example, producing from home and reusing bottles can reduce startup costs. On the other hand, investing in unique bottle shapes and labels will increase your branding expenses.
Recurring Costs to Consider
Once production begins, you will need to budget for recurring costs. These include ingredients, packaging, logistics, marketing, and regulatory compliance.
Recurring Expense | Description |
---|---|
Ingredients | Chemicals, fragrance, colour, water |
Bottles and Labels | Plastic containers, customised or generic labelling |
Marketing | Flyers, social media ads, word-of-mouth campaigns |
Transportation | Local delivery or bulk supply runs |
Compliance and Registration | CAC or NAFDAC renewal, where applicable |
Liquid Soap Business Plan
Every successful liquid soap business begins with a clear plan. Without a business plan, it is difficult to define your goals, measure progress, or attract investors.
A well-structured plan gives your business direction, reduces risk, and helps you make informed decisions at every stage.
What Makes a Good Liquid Soap Business Plan
Your business plan should be simple, focused, and practical. It must show how you intend to start, operate, and grow the business.
More than just a formality, it helps you forecast costs, identify target customers, and position your brand in a competitive market.
Below is a breakdown of the key sections to include:
Section | What to Cover |
---|---|
Executive Summary | Brief overview of your liquid soap business and goals |
Company Description | Name, location, structure (sole proprietorship or limited company) |
Market Analysis | Research on customer demand, competitors, pricing trends, and buying patterns |
Product Line | Types of liquid soap you will produce and why they meet specific needs |
Marketing Plan | Promotion channels, pricing strategy, packaging, and sales approach |
Operations Plan | Daily operations, supplier relationships, logistics, staffing (if any) |
Financial Plan | Costing, pricing models, projected income, break-even analysis |
Sample Financial Plan Snapshot
Here is a simplified cost and revenue example for a small-scale liquid soap business:
Item | Monthly Cost (USD) | Expected Revenue (USD) | Estimated Profit (USD) |
---|---|---|---|
Ingredients & Packaging | 150 | 450 | 300 |
Marketing & Distribution | 50 | ||
Utilities & Miscellaneous | 20 | ||
Total | 220 | 450 | 230 |
This example assumes direct-to-consumer sales of 100 litres per month. Your numbers will vary depending on scale and location, but this gives a basic idea of how costs relate to profit.
Business Registration and Licensing for a Liquid Soap Business
Registering your liquid soap business gives it legal identity and credibility. It also protects your business name, gives access to formal markets, and shows that you are serious about quality and compliance.
Whether you are operating in Nigeria, the United States, the UK, or another country, registration and licensing are essential for long-term growth and customer trust.
Business Registration by Region
Depending on your country, the registration process will vary. Here are common requirements across major markets:
Region | Registering Body | Documents Needed |
---|---|---|
Nigeria | Corporate Affairs Commission (CAC) | Valid ID, passport photo, proposed business name |
United States | Local Secretary of State or SBA | Name registration, EIN (Employer Identification Number) |
United Kingdom | Companies House (for LTD) | Company name, director details, office address |
Canada | CRA + provincial registry | Business number, incorporation documents |
Australia | Australian Securities and Investments Commission (ASIC) | ABN, company name, address, director ID |
Registering your business ensures you can open a business bank account, issue invoices, and bid for contracts. In Nigeria, you can use our business registration service to complete the CAC process without stress.
Product Licensing and Safety Certification
If you plan to sell your liquid soap in stores or supply large organisations, you may need additional product approvals. This is especially true for health and hygiene products.
Requirement | Purpose | Applies To |
---|---|---|
NAFDAC (Nigeria) | Certifies that products meet health and safety standards | Retail and wholesale soap producers |
FDA (U.S.) | Regulates labelling and ingredients for cosmetics and soap | Soaps making cosmetic claims |
EU Cosmetic Reg. | Requires safety assessments and labelling compliance | Soaps sold in Europe |
Safety Data Sheet | Details chemical composition and safety handling guidelines | Required for export or bulk clients |
Always label your products clearly with the ingredients, date of production, and shelf life. If you are selling internationally, check if your product qualifies as a cosmetic or detergent, as rules differ.
You can also get professional help preparing your Safety Data Sheet or NAFDAC registration through our expert services.
Types of Liquid Soaps You Can Produce
One of the advantages of starting a liquid soap business is the ability to diversify your product range. You are not limited to one type of soap. Y
ou can target different customer needs and market segments by offering various formulations. This not only increases your potential revenue but also strengthens your brand presence in a competitive market.
Hand Wash
Hand wash is the most common and widely used liquid soap product. It is designed for personal hygiene and is often used in homes, offices, restaurants, and public spaces.
The formula is gentle on the skin, contains moisturisers or antibacterial agents, and is usually scented.
Target Customers | Sales Channel |
---|---|
Households | Retail shops, supermarkets, online |
Offices | B2B supply contracts |
Schools and Hospitals | Institutional supply |
Dishwashing Liquid
This formulation is used to remove grease and food residue from plates and cooking utensils. It typically contains strong surfactants and degreasers but should still be skin-friendly.
Strengths | Popular Additives |
---|---|
Removes oil and stains | Lemon extract, antibacterial agents |
Produces long-lasting foam | Mild fragrance or essential oils |
Dishwashing soap is ideal for wholesalers, bulk packaging, and restaurants.
Floor and Multipurpose Cleaners
This variant is thicker and stronger, used for cleaning tiles, counters, bathrooms, and general surfaces. It may include disinfectants like phenol or pine oil.
Product Type | Best Use |
---|---|
Multipurpose Surface Soap | Homes, offices, cleaning services |
Floor Wash Formula | Schools, hospitals, hotels |
Multipurpose soaps are often sold in bulk or refill packs and used by commercial cleaning companies.
Organic or Herbal Liquid Soap
There is a rising demand for natural and eco-friendly products. Organic liquid soaps use plant-based ingredients like aloe vera, neem, turmeric, tea tree oil, and coconut oil. They appeal to a premium, health-conscious audience.
Customer Segment | Marketing Angle |
---|---|
Health-conscious consumers | Chemical-free, skin-friendly, handmade |
Eco-conscious markets | Biodegradable, recyclable packaging |
This niche offers room for brand storytelling and direct-to-consumer online sales.
Industrial Liquid Soap
This version is produced in larger quantities for high-volume use in factories, hotels, and public institutions. It is cost-effective, strong, and usually unscented.
User | Form |
---|---|
Janitorial firms, warehouses | Large 5L–25L gallons |
Government institutions | Bulk containers |
Adding multiple soap types to your product line can increase your customer base and revenue. You can start with one or two products, then expand based on demand.
Equipment and Ingredients Needed (Small to Medium Scale)
Starting a liquid soap business does not require a large factory setup. With the right tools and quality ingredients, you can produce effective and marketable soap products even from home or a small workshop.
The scale of your production will determine how much equipment you need, but the basics remain the same.
Equipment for Liquid Soap Production
The type and size of your equipment depend on the quantity of soap you intend to produce. For small to medium batches, most items are readily available and affordable.
Equipment | Purpose |
---|---|
Mixing Bowls or Drums | For holding and mixing ingredients |
Measuring Cups and Spoons | For accurate measurements of raw materials |
Stirring Stick or Hand Mixer | For blending ingredients uniformly |
Funnels | For pouring soap into bottles without spills |
Bottles and Caps | For packaging the finished product |
Labels | For branding and product information |
Gloves and Nose Mask | For personal safety during mixing |
Tables and Work Surfaces | Clean surfaces to organise production |
If you are planning to scale to industrial-level production later, consider investing in a mechanical mixer, digital weighing scale, and a filling machine to improve accuracy and efficiency.
Ingredients for Making Liquid Soap
To make liquid soap, you need a balanced mix of surfactants, thickeners, foam boosters, water softeners, and additives like fragrance and colour. Each ingredient plays a specific role in the soap’s appearance, effectiveness, and shelf life.
Ingredient | Function |
---|---|
Sulphonic Acid | Main foaming agent that creates lather |
Caustic Soda | Cleaning base that helps in removing stains |
Soda Ash | Thickener and pH balancer |
Nitrosol or Antisol | Thickening agent that adds body to the soap |
Texapon | Foam booster and emulsifier |
SLS (Sodium Lauryl Sulphate) | Increases foam and improves cleaning efficiency |
STPP | Water softener and stabiliser |
Perfume | Adds fragrance to the final product |
Colour | Gives the soap a visually appealing look |
Formalin (optional) | Preservative to increase shelf life |
Clean Water | Acts as the base for mixing all the ingredients |
These ingredients can be sourced from local chemical supply markets. In Nigeria, Ojota Market is a known hub. For global buyers, reliable sources include Amazon, Alibaba, and local industrial suppliers, but always check product purity and safety certifications.
Batch Size | Estimated Cost (USD) | Production Output |
---|---|---|
20 Litres | 20 – 30 | Enough for 40–50 bottles |
50 Litres | 50 – 70 | Enough for 100+ bottles |
100 Litres | 100 – 120 | Up to 200 bottles |
Make sure to store ingredients in a cool, dry place, away from direct sunlight, and label each container properly. Safety should always be a priority, especially when handling caustic or acidic components.
How to Make Liquid Soap – Step-by-Step Formulation
Knowing how to make liquid soap properly is key to building a trusted and profitable liquid soap business. The quality, texture, scent, and appearance of your product all depend on how well you mix and measure the ingredients.
This section provides a clear and tested step-by-step formulation for small to medium-scale production.
Ingredients and Measurements for 20 Litres of Liquid Soap
Below is a typical formulation to produce 20 litres of standard liquid soap suitable for handwashing or dishwashing.
Ingredient | Measurement | Function |
---|---|---|
Sulphonic Acid | 1 litre | Foaming agent |
Caustic Soda | 1/3 tin milk cup | Cleaning base |
Soda Ash | 1/2 tin milk cup | Thickening and pH adjustment |
Nitrosol or Antisol | 1 tin milk cup | Thickening agent |
Texapon | 5–6 teaspoons | Foam booster |
STPP | 6 teaspoons | Water softener |
SLS | 6 teaspoons | Enhances foam and cleansing |
Perfume | As desired | Adds fragrance |
Colour | As desired (diluted) | Enhances appearance |
Formalin (optional) | 5 teaspoons | Preservative |
Clean Water | Approximately 19 litres | Base solvent |
Preparation Method
Follow this order carefully for best results:
- Pre-Soak Caustic Soda and Soda Ash: Dissolve caustic soda in 1 litre of water and soda ash in another litre. Let both mixtures sit separately for 6–12 hours. This reduces harshness and ensures smoother blending.
- Prepare the Active Mix: In a large container, pour sulphonic acid. Add Texapon and your chosen perfume. Mix well with 3–4 litres of water for 10 minutes until it becomes a smooth, consistent blend.
- Dissolve STPP and SLS: Mix STPP and SLS separately in small bowls using 1 cup of water each. Stir until completely dissolved.
- Prepare the Base Solution: In your main mixing drum, pour Nitrosol (or well-soaked Antisol) and 4–5 litres of water. Stir continuously until smooth. This will form the base of your liquid soap.
- Combine All Solutions: Gradually add the sulphonic acid blend to the Nitrosol solution. Stir gently but thoroughly. Next, add the caustic soda and soda ash solutions one after the other while stirring. Then add the dissolved STPP and SLS into the mixture. Mix consistently after each addition.
- Add Final Elements: Add formalin (if using) to preserve the mixture. Dissolve your chosen colour in a small amount of water and pour it into the soap gradually, stirring until you achieve the desired look.
- Let the Soap Settle: Leave the mixture uncovered for several hours to allow trapped air and foam to settle. This ensures a clear, thick, and well-textured liquid soap.
- Test and Adjust if Needed: Before bottling, test the soap by rubbing a small amount between your palms and rinsing it off. Adjust water or thickener slightly if the consistency is off.
Tips for Consistent Quality
Issue | Solution |
---|---|
Soap is too watery | Add more Nitrosol or reduce water slightly |
Poor foaming | Increase Texapon or SLS slightly |
Colour appears patchy | Ensure colour is fully dissolved before adding |
Soap causes skin irritation | Reduce caustic soda or allow more fermentation time |
Creating a batch logbook can help you track changes, note ideal mixing times, and adjust recipes based on feedback.
Packaging and Branding That Sets Your Liquid Soap Buisness Apart
In the liquid soap business, packaging and branding can make the difference between being overlooked and becoming a household name.
With many competitors in the market, your product must not only work well—it must look trustworthy, professional, and desirable on the shelf or online.
Importance of Good Packaging for Your Liquid Soap Business
Packaging is the first impression of your brand. It protects the product, communicates quality, and builds customer trust. Whether selling online, at events, or in stores, well-designed packaging helps increase conversions and repeat purchases.
Packaging Feature | Purpose |
---|---|
Sturdy Bottles | Prevent leaks and breakage during transport |
Clear Labels | Communicate ingredients, instructions, and expiry date |
Branded Design | Reinforces your logo and brand identity |
Size Variations | Offers options for different customer needs |
Consider bottle shape and size. Round or rectangular bottles with easy-to-use caps (flip-tops or pumps) are popular and practical. Transparent bottles allow customers to see the colour and consistency of the soap, which builds confidence in the product.
Branding Essentials
Your brand tells the story behind the product. It should reflect your values, whether that is affordability, quality, sustainability, or luxury.
Consistent visuals and messaging help customers remember and recommend your soap.
Branding Element | Function |
---|---|
Business Name | Memorable, relevant to soap or cleanliness |
Logo | Visually represents your brand across labels and online |
Tagline | Sums up your value proposition in one line |
Brand Colours | Evokes the right emotions (green for natural, blue for trust) |
Fonts and Icons | Clean and readable, suitable for hygiene products |
If you need a professional logo and label design, you can get a branding bundle from our shop that includes logo files, colour palettes, and product label templates designed specifically for product-based businesses.
Labelling Compliance
Depending on where you operate, your product label may need to include specific information by law. Even if not required, a well-labelled product increases buyer confidence.
Required Information | Why It Matters |
---|---|
Product Name | Helps with brand recall and shelf identification |
Ingredient List | Builds trust and prevents allergic reactions |
Net Volume (e.g. 500ml) | Informs customers and ensures fair pricing |
Production and Expiry Date | Required for safety and quality assurance |
Manufacturer Contact Details | Helps with traceability and customer support |
Branding is not a one-time task. As your business grows, revisit your packaging and message to ensure it remains relevant and appealing. Great packaging supported by consistent branding is what turns one-time buyers into loyal customers.
Pricing and Costing for Profitability for Liquid Soap Business
Getting your pricing strategy right is critical for the success of your liquid soap business. If your prices are too high, you risk losing customers.
If they are too low, you may not cover costs or generate enough profit to grow. Strategic pricing starts with knowing your production costs and ends with understanding your market.
Understand Your Costs
To set profitable prices, calculate your total production cost per batch. Include all direct and indirect costs, not just ingredients. This ensures you do not underprice your soap.
Cost Type | Examples |
---|---|
Direct Costs | Ingredients, bottles, labels |
Indirect Costs | Transportation, rent, utilities, packaging tools |
Marketing Costs | Social media ads, flyers, photography |
Labour | Your time or hired help for mixing and delivery |
Once you know your total cost, divide it by the number of units in that batch to get your unit cost.
Example:
If a 20-litre batch costs $30 to produce and yields 40 bottles of 500ml soap:
Cost per bottle = $30 ÷ 40 = $0.75
Add Your Markup
To make a profit, add a markup on your cost price. Most small manufacturers apply a markup between 50% and 200%, depending on their market and positioning.
Strategy | Markup Range | Use When |
---|---|---|
Budget Pricing | 50%–80% | Competing on price, early market entry |
Mid-Range Pricing | 100%–150% | Quality product with local recognition |
Premium Pricing | 150%–200%+ | Organic or branded soap for health-conscious consumers |
Example Pricing Table
Batch Size | Total Cost (USD) | Unit Cost | Selling Price (per unit) | Profit per Unit | Total Profit |
---|---|---|---|---|---|
20 Litres | 30 | $0.75 | $1.50 | $0.75 | $30 |
50 Litres | 70 | $0.70 | $1.80 | $1.10 | $88 |
100 Litres | 120 | $0.60 | $2.00 | $1.40 | $280 |
Consider Tiered Pricing
Tiered pricing lets you offer discounts for bulk purchases, attract different customer types, and move larger volumes.
Customer Type | Price Strategy |
---|---|
Individuals | Standard retail pricing |
Supermarkets | Wholesale price with minimum quantity |
Event Planners | Bundle discounts or custom label offers |
Cleaning Companies | Bulk pricing for 20L gallons |
Track your profit margins regularly. Adjust prices when ingredient costs change, but avoid sudden increases that could lose customers.
How to Market and Sell Your Liquid Soap Products
Marketing is where many good liquid soap businesses either succeed or struggle. Creating an effective marketing and sales strategy ensures that your products reach the right people and convert interest into purchases.
Whether selling from home, online, or through retail stores, the goal is to create visibility, build trust, and encourage repeat sales.
Identify Your Target Market
Before you market your product, define who it is for. This helps you focus your messaging, packaging, and distribution.
Customer Type | What They Value |
---|---|
Families and Individuals | Safe ingredients, affordability, convenience |
Supermarkets | Attractive packaging, NAFDAC certification, stable supply |
Event Planners | Custom labels, bulk pricing, timely delivery |
Cleaning Companies | Cost efficiency, bulk sizes, reliable supply |
Tailor your promotions and communication to each of these groups.
Build a Strong Online Presence
A digital footprint is essential for growing your liquid soap business. It allows you to reach customers beyond your immediate neighbourhood.
Platform | Strategy |
---|---|
WhatsApp Business | Send catalogues, take orders, provide quick support |
Share product visuals, behind-the-scenes content, customer reviews | |
Join local groups, run location-based ads | |
TikTok | Post quick demos or packaging videos to attract views |
Google My Business | Helps you appear in local search results |
Encourage happy customers to post reviews and tag your brand. User-generated content builds trust and increases visibility organically.
Sell Through Multiple Channels
Diversify your sales channels so you are not dependent on one stream.
Channel | How to Use It |
---|---|
Local Markets | Rent a small stand or share space at trade fairs |
Supermarkets and Stores | Approach store owners with free samples and a price list |
Online Marketplaces | List on Jumia, Etsy, Shopify, or Amazon |
Door-to-Door Sales | Especially effective in densely populated neighbourhoods |
If selling online, offer flexible payment options, clear return policies, and reliable delivery methods.
Use Promotions and Word-of-Mouth
Give your first-time buyers a reason to return. Loyalty can be built through simple incentives.
Promotion Type | Purpose |
---|---|
Buy-One-Get-One Offers | Attract new customers |
Referral Rewards | Encourage word-of-mouth marketing |
Combo Packs | Increase average order value |
Free Samples for Influencers | Leverage social proof |
Offline, use flyers, handbills, and branded T-shirts in busy areas. Online, run short, targeted campaigns with clear calls to action.
To learn how to set up a complete marketing funnel, join the Entrepreneurs Success Blueprint Program. It walks you through branding, marketing, and digital selling tailored for product-based businesses.
How to Export Your Liquid Soap Products
Expanding your liquid soap business into international markets can significantly increase your revenue and brand visibility.
With rising global demand for personal and home-care products, export opportunities are more accessible than ever, especially for businesses that offer quality, eco-friendly, or niche products.
Understand Export Requirements
Before exporting liquid soap, you must comply with the regulations of both your country and the destination country.
These rules vary, but they often cover product safety, labelling, packaging, and documentation.
Requirement | Purpose |
---|---|
Export License (home country) | Legal permission to sell goods internationally |
Product Safety Certification | Confirms soap is safe and free from harmful substances |
Material Safety Data Sheet (MSDS) | Describes chemical properties and safety measures |
Label Compliance | Must match target country’s language and cosmetic standards |
Certificate of Origin | Proves the source of your product |
Customs Declaration | Required for clearing goods at borders |
If you are in Nigeria, the Nigerian Export Promotion Council (NEPC) provides guidance and documentation for first-time exporters.
Choose the Right Export Market
Not every country will be a good fit for your product. Research markets with high soap consumption, limited local production, or growing demand for imported hygiene products.
Target Region | Why It’s Attractive |
---|---|
West Africa | Familiar market, similar product needs |
East Africa | Fast-growing consumer base and expanding retail networks |
Europe | High demand for organic or specialty soaps |
North America | Large market size, premium pricing potential |
Middle East | Strong demand for hygiene products with bulk buying culture |
Trade fairs, export promotion agencies, and online B2B platforms like Alibaba or ExportHub can help you find buyers in these regions.
Packaging for Export
Export packaging needs to withstand long transit times and rough handling. It also needs to comply with the importer’s labelling and safety requirements.
Packaging Feature | Benefit |
---|---|
Bulk Sizes (5L, 20L) | Cost-effective for industrial buyers |
Tamper-Proof Seals | Increases safety and compliance |
Clear Labelling | Meets import regulations and reassures international buyers |
Palletisation | Makes transport and customs handling easier |
You may also need to translate your labels into the official language of the target country and adjust ingredients to meet local health regulations.
Logistics and Shipping Options
Shipping Method | Best For |
---|---|
Air Freight | Small urgent shipments, high-value items |
Sea Freight | Bulk orders, cost-effective for large volumes |
Third-Party Export Agents | Ideal for beginners who need help navigating export process |
Use a reliable freight forwarder to handle documentation, customs clearance, and insurance. Be clear about Incoterms (e.g. FOB, CIF) so both parties know who covers shipping costs and risks.
Selling internationally demands attention to detail, but it can turn a small local soap venture into a global brand.
See also: How to start an export business.
Common Challenges in the Liquid Soap Business and How to Overcome Them
Every liquid soap business comes with its share of hurdles. From production inconsistencies to branding issues and competition, challenges can quickly impact profitability if not addressed early.
The good news is that most of these issues can be anticipated and solved with the right systems in place.
Inconsistent Product Quality
One of the most common complaints in the liquid soap market is inconsistency—too watery, too thick, or skin irritation. These issues usually stem from inaccurate measurement, poor mixing, or low-quality raw materials.
Challenge | Solution |
---|---|
Soap too watery or thick | Use a reliable measuring system and standardise your formulations |
Harsh on skin | Allow proper fermentation of caustic soda and use milder additives |
Foam not lasting | Adjust levels of Texapon or SLS, and test small batches first |
Use a formulation log and batch record to track what works best.
Poor Packaging and Labelling
Packaging that leaks or labels that fade quickly can ruin customer trust. In a market with increasing competition, packaging must reinforce quality and professionalism.
Problem | Fix |
---|---|
Bottle leaking during transport | Switch to thicker plastic and test cap tightness |
Label fading or peeling | Use waterproof, scratch-resistant labels |
No expiry date or contact info | Include full product information as standard on all labels |
Good packaging is not expensive; it is strategic. Always sample different bottle types and test label adhesives in advance.
Difficulty in Finding Buyers
Many new producers struggle to sell beyond family and friends. This is usually due to a lack of targeted marketing or failure to build brand trust.
Sales Barrier | How to Overcome It |
---|---|
No repeat buyers | Improve product quality and follow up for feedback |
No visibility | Use social media, SEO, and local promotions to increase awareness |
Supermarkets rejecting products | Register your business and add basic certifications like NAFDAC |
Combine online and offline sales efforts to build steady demand. If you need help creating a full sales strategy, consider joining the Entrepreneurs Success Blueprint Program.
Limited Production Capacity
As demand grows, many soap businesses hit a ceiling due to manual methods or a lack of equipment. This affects delivery timelines and can lead to lost orders.
Bottleneck | What to Do |
---|---|
Slow production | Invest in larger mixing bowls, a hand mixer, or semi-automated tools |
Inadequate storage space | Reorganise or rent a small facility with better layout |
Running out of stock | Plan ingredient purchases based on forecasted demand |
Simple upgrades to your workspace and process flow can increase output without large investments.
Navigating Regulations
Selling to retail chains or exporting requires regulatory compliance, which can be intimidating for new entrepreneurs.
Regulatory Concern | Solution |
---|---|
NAFDAC approval process slow | Use experienced consultants or join pre-screening workshops |
No export clearance | Register with NEPC and work with a verified freight forwarder |
Product recalled for mislabelling | Cross-check label compliance based on destination market |
Staying compliant reduces risk and builds long-term business credibility. Our business registration and product licensing service can help streamline the process.
Conclusion
Starting a liquid soap business is one of the most practical and scalable ventures in today’s economy. The demand is steady, the entry cost is low, and the possibilities for growth are broad, from home use to wholesale and export.
Whether you are just starting or looking to expand, the key lies in quality production, smart branding, and consistent marketing. With the right systems, your soap can stand out in any market.
We want to see you succeed, and that’s why we provide valuable business resources to help you every step of the way.
- Join over 23,000 entrepreneurs by signing up for our newsletter and receiving valuable business insights.
- Register your business today with Entrepreneurs.ng’s Business Registration Services.
- Tell Your Brand Story on Entrepreneurs.ng, let’s showcase your brand to our global audience.
- Need help with your marketing strategy? Get a Comprehensive Marketing and Sales Plan here.
- Sign up for our Entrepreneurs Success Blueprint Programme to learn how to start and scale your business in just 30 days.
- Book our one-on-one consulting and speak to an expert about structuring and growing your business.
- Visit our shop for business plan templates and other valuable resources to guide you.
- Get our Employee-Employer Super Bundle NDA templates to legally protect your business and workforce.
- Advertise your business to over a million entrepreneurs through our different advertising packages.
Frequently Asked Questions
Is a liquid soap business profitable?
Yes, the liquid soap business can be highly profitable thanks to low ingredient costs and consistent demand. Proper packaging, branding, and marketing can yield 50%–200% profit margins.
For example, a 20-litre batch costing about $30 can generate $90 in revenue, leaving a $60 profit. Effective costing templates help maintain these margins.
How much do I need to start a liquid soap business?
Startup capital varies depending on scale:
- Small scale: $50–150 for 20–50 L production
- Medium scale: $200–700 for 100 L+, basic branding
- Large scale: $1,000–5,000+ for equipment, staff, and space
Recurring costs include ingredients, packaging, logistics, marketing, and regulatory compliance.
How do I write a liquid soap business plan?
Begin with an executive summary and company description. Conduct market analysis to understand demand and competition. Define your product line, operations plan, marketing strategy, and financial projections. You can simplify this with our pre-built business plan template.
What licenses do I need for a liquid soap business?
Requirements depend on your location:
- Nigeria: CAC registration and NAFDAC number
- U.S.: State business registration and FDA-compliant labelling
- EU: Compliance with the EU Cosmetics Regulation
Additional Safety Data Sheets (MSDS) and export licences may be required for bulk or cross-border sales.
How do I brand and package liquid soap effectively?
Use quality bottles with sturdy caps and clear, waterproof labels that list ingredients, volume, and expiry date. Design your brand with a consistent logo, colours, and messaging that align with your target audience (eco-friendly, luxury, etc.).
You can get logo and label templates from our shop to streamline this process.
What are good marketing strategies for liquid soap?
Combine online and offline approaches:
- Use WhatsApp Business and social media to engage local audiences
- List products on marketplaces like Jumia or Etsy
- Approach supermarkets and cleaning services with bulk offers
- Leverage referral bonuses, free samples, and package deals
Joining our Entrepreneurs Success Blueprint Program can help you build this into a full marketing funnel.
Can I export my liquid soap products?
Yes, with proper preparation. Ensure you have an export licence, MSDS, labelling compliant with destination countries, and a Certificate of Origin. Choose target markets based on demand (e.g. West Africa, Europe). Use reliable freight forwarders and define Incoterms to avoid delays.
51 responses
Great work
Whaooo….This is the best detail information I have seen on this subject. Thank you for taking time to prepare this life changing information and also for sharing it. God bless you!
Dear Paul,
We are glad that you found value from the content.
We have a program that takes you from idea to starting your business in 30 days.
Please learn all about the program here: Start Your Business in 30 Days.
Reach us on WhatsApp- 08038874148.
Thank you,
Omg. This has helped me a lot.
No time to waste I’ll shake the hands of the brain behind this article someday
Hello Victor,
We are glad the content was useful to you.
We have a program that will prepare you to launch your business with expert guidance. Learn all about it here – https://entrepreneurs.ng/start-your-business-in-30-days/
Please, take a look at all the different ways we can work with you and increase your success here: https://entrepreneurs.ng/services/
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Thank you for this, it was really insightful
Thanks for this. Please in a situation whereby after production the soap is watery can Nitrosol be added to make it thicker.
We are glad you found the content insightful. Please get our guide, it contains all the steps and all your answers: https://entrepreneurs.ng/35-business-ideas/
Really appreciate all your lecture. I’m just searching for a business to start. I will follow up to start working on it🙏🙏🙏.
Thank you, Victoria.
We are glad that you found the content insightful.
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Thank you.
Thanks for the info. I learned a lot. Am a soappreneur and sometimes after production, I can’t perceive the perfume as such. As most of my customers complain of not perceiving the perfume. What do I do?
Hello Ade,
Thank you for writing to us.
Get our comprehensive guide on how to produce liquid soap here:
https://entrepreneurs.ng/product/start-your-own-liquid-soap-business/
Thank you.
Hi
Where can i buy all the chemicals to make the liquid soap?
Thank you
Hello Rivania,
We covered that in the article.
We have a program that will prepare you to launch your business with expert guidance. Learn all about it here – https://entrepreneurs.ng/start-your-business-in-30-days/
Please, take a look at all the different ways we can work with you and increase your success here: https://entrepreneurs.ng/services/
And reach out to us on WhatsApp- 08038874148.
This is so nice,I got more information than I searched for
Thank you so much ma
But can one start the business without registration
Hello Patience,
Thank you. We are glad you found the content insightful. Get the comprehensive guide on how to start the liquid soap business here:https://entrepreneurs.ng/product/start-your-own-liquid-soap-business/
Thank you.
Thank you very much, I learnt a lot.
Hello John,
We’re glad you love the content. We have an in-depth guide with the cost of the chemicals and equipment to start the liquid soap business. You can get it here: https://entrepreneurs.ng/product/start-your-own-liquid-soap-business/
Thank you.
Thank you for sharing this.
Hello Ayodeji,
You’re welcome. We recently released a comprehensive guide that contains the cost of the equipment and materials you need to start the liquid soap business. The book is crash course on starting the liquid soap business and 34 other profitable business in Nigeria. You can get the guide here:https://entrepreneurs.ng/35-business-ideas/
Thank you.
Wow.. Very educative and interesting. Didn’t know it’s this simple! Nice article.
Hello Debbie,
We are glad you found the content insightful. Get an even more comprehensive guide here: https://entrepreneurs.ng/product/start-your-own-liquid-soap-business/
It contains everything you need to start the liquid soap business even the cost of the chemicals and materials you need and where to get them.
If you need a business strategy consultant that will help you understand your value proposition and gain clarity, reach us on 08038874148.
Thank you.
I find this so insightful. How does someone get a batch number on the product besides what is it relevant? Also, does the kind of water you use in your production matters, if yes why?
Hello Tunde,
We’re glad you found the content insightful. We recently published an in-depth crash course that answered all your questions. Also, it contains the cost of equipment, materials, and where to get them. Also, asides from the liquid soap business, you also get 34 other profitable businesses you can start.
Get the resource here:https://entrepreneurs.ng/35-business-ideas/
Good day.for the tin milk..is it the small size or the big size
Hello Jane,
We’re glad you have an interest in starting the Liquid Soap Business. We just published an in-depth guide that answered your question. Also, you will get the costs of all the materials you need and where to get them. In addition, you will get step-by-step guides on how to start 34 other profitable businesses.
Get it here:
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We’re here if you have any business concern.
Thank you.
Can I market and sell the Liquid Soaps at Supermarkets and malls without having to register with NAFDAC?
Hello Temiloluwa,
You can get the answer you seek and how to process you NAFDAC here:https://entrepreneurs.ng/35-business-ideas/
It’s a comprehensive proposal to start the liquid soap and 34 other profitable businesses in Nigeria.
Thank you.
I am able to learn more than I searched for
Thank you
Pls these items for making liquid soap, are the having it in liquid form and also in powdered form because where I stay, they only give me the items in liquid form.
Hello Virginia,
Thank you for reaching out to us and we’re glad you found the content insightful. You can do a market survey to determine that. We have a comprehensive guide that’s coming out soon that contains the investment cost of starting the liquid soap business and other businesses. Please, keep tabs on entrepreneurs.ng because we will make the announcement once it’s launched.
Thank you.
This article was really helpful and I appreciate the brains behind it. However, what makes the soap to lose its color after a few weeks of production?
Hello Maryam,
Thank you for reading. We’re glad that you found the content very useful. Maybe you can source your material from a different place and see if something changes. Also, we have a comprehensive guide coming out soon that contains the financial investment you need to make in starting this business and other business ideas. Do keep tabs on entrepreneurs.ng because we will make the announcement on the platform as soon it’s launched.
Thank you.
Thanks very much. This have really impacted me greatly
Hello Blessing,
We’re happy you found the content insightful. That’s the reason why we exist; to create an impact for entrepreneurs.
We have a comprehensive guide coming out soon that’s more comprehensive and contains the cost of the investment for starting the business. Please, keep tabs on entrepreneurs.ng because we will make the announcement as soon it’s launched.
Thank you.
Very very grateful with this, thank you so much. God bless you
Thank you, Mayowa.
God bless you too. We’re glad you found the content useful.
Please know that we have a more comprehensive guide coming out soon with the investment cost of starting the liquid soap business and other business ideas. Do keep tabs on entrepreneurs.ng because we will make the announcement as soon as it’s published.
Thank you.
Thanks allot it was of great help.please can you give me an idea or the prices of the ingredients
Hello Benita,
We’re glad you found the content insightful.
We have a comprehensive guide coming out soon that’s comprehensive. It will answer all your questions. Please, keep tabs on entrepreneurs.ng because we will make the announcement as soon as it’s released.
Thank you.
Please how can someone go for NAFDAC registration
Hello,
Thank you for reaching out to us. This content: https://entrepreneurs.ng/nafdac-registration/ explains how to go about processing your NAFDAC registration.
Thank you.
Thank you so much for the training. I appreciate.
Thank you, Happy. We are glad you found it insightful.
Thanks a lot for the training.
Thank you for learning. Our joy will be complete when you implement the training. Goodluck.
Thank you so much for the training, very simple and motivating. However you didn’t mention the quantity of SLS to be used, I will appreciate it if you can send me the right measurement you used in the above production.
Thanks so much for the training it was so interesting but I want to discuss more privately with you
Hello Funmi,
We are glad you found it useful.
You can reach us by writing business@entrepreneurs.ng
Thank you.
Thank u very much. please can you teach me how to produce cream?
We are glad you found it insightful. There are loads of online courses you can take advantage of to learn how to produce cream.