- Home
- Issue
- Solution
- Market validation
- business model
- Competition
- Founding team
- Traction
- Fundraising
Issue
The cosmetics industry is dominated by commercial products filled with harmful chemicals and additives. This poses a serious threat to skin health, causing adverse allergic reactions, irritation and even cancer. According to a study in the Journal of Cosmetic Science, the average consumer absorbs more than five pounds of cosmetic chemicals through the skin each year.
However, finding clean, sustainable and personalized skincare products with natural ingredients is a tedious and time-consuming task that consumers dread. The customization aspect of skincare products is crucial because everyone has unique skin types that need a different set of ingredients. This leads to frustration and confusion about skincare, making it difficult to find the right product among dozens of reactive options.
There is a growing societal push towards sustainable living and health, leading to increased demand for organic and handmade products. Even after being aware of the dangerous consequences of commercial skincare products, most consumers continue to use them due to the lack of alternatives.
One of these consumers is Maria, who suffers from eczema and, despite numerous products, is unable to find a suitable product for her skin type. She became frustrated and lost all confidence, feeling that she would never have healthy, radiant skin.
- What is the problem? The cosmetics industry’s reliance on harmful chemicals poses a serious health risk to consumers.
- What is the relevance of the problem? The issue has become more relevant as society moves towards sustainable living and health.
- What is the current solution for the problem? Consumers have repurposed products, but most contain harmful additives and don’t cater to unique skin types, causing frustration and confusion about skin care.
- Why does the problem exist? The cosmetic industry has focused on mass production rather than customization and sustainable living, leading to the current state of harmful and unsustainable products in the market.
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Solution / value proposition
The problem we have identified is that people do not have access to a reliable and sustainable source of organic soap. Our solution is to provide them with an affordable and eco-friendly soap making kit through our website and social media platforms.
Our kits will contain all the ingredients and instructions needed to make 5-10 bars of soap, depending on customer preference. We will also provide additional ingredients and fragrances to enhance the soap making experience.
The soap making kit offers customers the ability to create their own soaps from organic materials without added chemicals or preservatives. They will not only enjoy the luxury of knowing the exact ingredients in their soap, but they will also have an eco-friendly way to produce a high quality product .
Customers will enjoy the satisfaction of craftsmanship and creativity while producing soap that is gentle on their skin and environmentally friendly. They will also have the chance to improve their soap making skills with each kit they purchase, which could lead to more experimentation and a greater appreciation for organic products.
Imagine how our customers will feel after making their own soap with our kit. They can finally have a voice in what is happening to their skin and feel confident in the ingredients of their soap. They will feel empowered and inspired to continue making and exploring innovative, sustainable and organic solutions.
Founding team
Our team is experienced in manufacturing, sourcing and logistics. Our passion for organic and sustainable products inspired us to launch this product. We believe in the potential of our product and the impact it can have on the community. We are committed to providing the best quality soap making kits and excellent customer service.
Traction / Milestones
- Successfully launched a pilot program, which garnered positive feedback from early customers.
- Created a partnership with a local organic supplier, ensuring we have access to high quality ingredients for our kits.
- Developed an innovative supply chain to efficiently produce and distribute our product at scale.
Fund raising
We are seeking 0,000 in seed funding to scale our operations, hire additional staff and launch marketing campaigns. Our mission is to create a product that truly benefits our customers and the environment. We believe our soap making kit can be a game changer in the organic soap industry, and we are committed to making it a success.
We are confident that our investors will see the potential impact of our product on the community and environment, as well as the opportunity for strong financial returns on their investment.
Market validation
Market validation of our soap manufacturing business is crucial to prove that there is a demand for our products and that we have a viable business solution. According to the research, the global soap market size is expected to reach USD 44.4 billion by 2026, growing at a CAGR of 5.0% from 2020 to 2026. This indicates that the Total Addressable Market (TAM) for our soap making business, is big and can grow even more with the right strategies.
One of the details of our addressed market is Revenue per customer . Our research shows that customers are willing to pay a premium for handmade, natural and organic soaps. This means that our soap making business can charge a higher price and still attract the right customers who are looking for quality and eco-friendly alternatives.
Starting a soap making business is a good idea because it aligns with the trend of consumers moving towards natural, organic and sustainable products. Customers are looking for eco-friendly alternatives to traditional soaps that contain harmful chemicals and synthetic fragrances. Moreover, due to the current pandemic, there is an emphasis on hygiene and cleanliness, which further increases the demand for soap.
The soap market is growing and is expected to continue growing in the future. With growing awareness of environmental and health issues, customers are turning to natural and organic products, including soap. Additionally, the rise of e-commerce and online marketplaces provides more opportunities for small businesses like ours to reach a wider audience and increase our revenue.
Our research also indicates that there are customers who are willing to pay a higher price for quality hand soaps and who are willing to purchase them on a regular basis. This means that the sales cycle for our products can be relatively short, as we can create a loyal customer base who will purchase our products on a recurring basis.
- TAM for the soap market is .4 billion by 2026.
- Revenue per customer may be higher for handmade, natural and organic soaps
- Soap manufacturing business is aligned with the trend of eco-friendly and sustainable products
- The soap market is expected to continue to grow in the future
- Loyal and repeat customers can contribute to a shorter sales cycle
business model
Our soap making business will generate revenue from sales of homemade soaps and related products including body scrubs, bath bombs and bath salts. The total amount of revenue will depend on sales volume, which we expect to increase through marketing efforts and product diversification.
Product-based revenue : The main source of revenue will come from sales of homemade soap and related products. We will offer a variety of scents and sizes to suit different preferences and budgets. We will also explore the potential of creating seasonal or limited products to generate additional sales.
Custom Orders : In addition to our standard product line, we will offer custom soap making services. This will allow us to accommodate unique customer requests or events such as weddings, baby showers and corporate gifts. Customers will be charged a premium for this service.
Partnerships : We will partner with local businesses, such as spas and salons, to distribute our soap products. This will allow us to expand our customer base and generate additional revenue streams from bulk orders.
Selling Online : Our SOAP products will be sold on our website and on online marketplaces such as Etsy and Amazon. Customers will be able to place orders and make payments through our website, and we will ship products using third-party logistics companies.
Pricing Strategy : Our pricing will be competitive but account for the cost of high quality ingredients and labor. We will offer discounts for bulk orders and promotions during holidays and special events.
- Sales of homemade soap and related products
- Custom order fees
- Income from partnerships with local businesses
- Online sales through our website and online marketplaces
Overall, our business model aims to generate revenue through a combination of product-based sales, custom orders, partnerships and online sales.
Competition
Our competitors in the soap making market include both established companies and newer startups.
- Established Companies: Companies like Procter & Gamble and Unilever already dominate the soap market with their mass-produced soaps that cater to a wide audience. They have established distribution networks and have significant resources to invest in marketing and R&D.
- Newer Startups: Small, artisanal soap makers that focus on creating high-end hand soaps are also a strong contender. They appeal to customers who appreciate unique, high-quality products made from natural ingredients. However, these companies are struggling to scale up their operations and reach a wider customer base.
While our competitors may share some similarities with our company, we believe our commitment to sustainability and the use of all-natural ingredients sets us apart in the marketplace.
Our unique selling points include:
- Use only natural and sustainably sourced ingredients.
- Making soap on a small scale, ensuring quality handmade products.
- Focus on creating attractive, innovative fragrances that appeal to a wide range of customers.
We believe we have a distinct advantage over our competition due to our focus on sustainability and quality, which sets us apart from larger companies that prioritize mass production and profit from social and environmental impact. We will also differentiate ourselves from small artisan soap makers by leveraging technology and marketing to reach a wider audience and scale our operations.
Our main competitors for customers are larger companies that operate on an industrial scale and offer similar products at lower cost. In order to combat this, we will focus on creating a strong brand identity and emphasizing our unique selling points in our marketing efforts. Additionally, we will strive to build a loyal customer base who appreciates high quality natural soap and are willing to pay a premium price for our products.
Founding team
Our founding team is made up of highly skilled people who are passionate about sustainable living and making natural products. Each of us brings a unique set of skills and experiences to the table, ensuring a well-rounded and competent team.
- John Doe – Co-founder and CEO holds a degree in chemistry and has over 10 years experience in the soap making industry. John has also worked as a consultant for several natural product companies, advising on product development and quality control.
- Jane Smith – Co-Founder and COO, brings over 15 years of experience in operations and supply chain management. Jane has worked in large corporations and startups, and has a proven track record of implementing efficient processes and scaling businesses.
- Mark Johnson – Co-Founder and CMO, is a creative and strategic marketing expert with over 10 years of digital and traditional marketing experience. Mark has developed and executed successful branding and marketing campaigns for various companies in the natural products industry.
Our team shares a passion for green and sustainable living, and we believe that our soap making business can have a positive impact on people’s lives and the environment. We are committed to using only natural and organic ingredients in our products, and strive to minimize our carbon footprint in all aspects of our operations.
Although we have a well-rounded team with extensive experience in the areas of chemistry, operations, supply chain and marketing, we recognize that we may lack skills in areas such as finance and legal . To mitigate this, we have established relationships with trusted advisors and consultants who can provide us with guidance and support as needed.
We are confident that our team has the skills, experience and passion to meet the challenge of developing a successful and sustainable soap manufacturing business. We are committed to achieving our vision and we are committed to having a positive impact on the world.
Traction
In a short period, our soap making business has shown promising growth, attracting and retaining customers who appreciate high quality organic products.
- We’ve seen a 30% month-over-month sales growth since our launch six months ago.
- Our customer acquisition cost (CAC) is per customer , which is considered low in the organic soap industry.
- Our customer churn rate is 4% , which is below industry average and demonstrates that our customers love our products.
- The soap industry is expected to reach billion by 2025, and with our organic and sustainable approach, we are positioned to succeed in this growing market.
When making soap, all of these numbers represent a clear path to sustainable growth, profitability and long-term success.
Fund raising
As a soap manufacturing company, we are excited to offer an investment opportunity by seeking seed funding of 0,000 to release a beta version of our product and get our business off the ground. Our unique value proposition for handmade, all-natural, organic soap will set us apart from the competition.
Here are the details of our fundraising plan and how we intend to use the funds:
- Product Development: 0,000 – This allocation is essential to put resources in place to begin production and expand our range of product offerings.
- Marketing: 0,000 – To build brand awareness of our products, investments will be used in advertising and other promotional efforts.
- New Employees: 0,000 – To support increased manufacturing and meet customer demand, we will be hiring additional staff to join our team.
We are excited to achieve the following milestones with the funds raised:
- Launch our first product line within eight months of fundraising completion
- Establish brand recognition in the region and penetrate the market by adding loyalty programs and promotional events
- Expand our product line and offer complementary items such as bath bombs, all-natural shampoo bars and related accessories
We aim to achieve a 2x return on investment within five years of fundraising completion.
We thank you for your interest and are excited about the potential this investment can provide for both you and our business.