Executive Chronicles | 5 Key Tips for a Successful Hand Sanitizer Business | Starting a business isn’t easy. In fact, about half of all new businesses fail within the first five years. Looking on the bright side, that means about half of all small businesses succeed in the first five years!
One of the most important things you need if you want to start a new business is a good product or service. Right now, the high demand for hand sanitizer means there’s a big market for the product. With people taking extra efforts with hand hygiene, even post-pandemic there should be a continued high demand for hand sanitizer.
Keep reading for five tips for a successful hand sanitizer business.
1. Understand the Product
You need to understand your product. Hand sanitizers come in several types:
Will you offer only hand sanitizer gel or all four types? Are your sanitizers alcohol-based? They must contain at least 60% alcohol. That alcohol has to be 90% or more alcohol in the formulation.
You’ll need distilled water and pure glycerine with a purity of at least 98%. You’ll want a reliable, steady supplier for the chemicals. Here’s more info.
Once you’ve got your formulation, supplies, and a manufacturer, it’s time for the next step.
2. Do the Legal Paperwork
There’s a whole host of paperwork you’ll need if you’re going to run a business. Check with your local government to see what they require. At the least, you’ll need:
- A business name
- A business license
- Legal entity (LLC, C Corp, S Corp)
- Liability insurance
Once you come up with a catchy name, secure a business license and a legal entity. A Limited Liability Company (LLC) is a good place to start. An LLC protects your personal assets and is both simple and flexible.
Consult with a professional insurance agent about a liability insurance policy. You’ll need permission from the local FDA and relevant licenses. You’ll also need a license for buying and storing the alcohol.
Due to the Covid-19 pandemic, the FDA isn’t currently prosecuting unlicensed hand sanitizer makers. Don’t get caught in a bind down the road. Make sure you know the rules and regulations!
3. DIY or Mass Production?
You can make up to 50 liters of DIY hand sanitizer at home. You’ll need an air-conditioned room with no open flames or smoking while you’re making it. Alcohol is highly flammable.
If you’re planning on scaling your business up, you’ll need a manufacturing plant.
Right now, it’s easy selling hand sanitizer without launching a huge marketing campaign. Nonetheless, a marketing strategy is always a good idea for any business. Create a website and launch your brand on several social media platforms.
5. Make Sure the Price Is Right
As with any product, it’s important to price it right. Don’t overprice it now just because hand sanitizer is in high demand. Put a reasonable price that offers you a profit while enticing your customer to buy.
Start a Hand Sanitizer Business Today
This is definitely a good time to start a hand sanitizer business! Even as the pandemic subsides, there will always be a need for hand sanitizer.
Are you looking for more business, money, and lifestyle advice? Keep reading the blog for more!