7 Steps to Start a Bath Bomb Business (1st $1,000 in Sales)

bath bombs

Starting a bath bomb business is a great idea today, as the market for these products is booming and set to be a $350 million industry by 2025. 

However, selling bath bombs successfully will hinge on the quality of ingredients in your bath bombs and how well you meet the needs of your customers. 

  1. Identify a Niche Audience
  2. Find a Niche Product
  3. Define Sales Channels
  4. Identify the Minimum Budget
  5. Form a Legal Entity
  6. Set Up the Shop
  7. Reach First $1,000 in Sales

How to Start a Bath Bomb Business?

1. Identify a Niche Audience

First, identify your niche audience, which is the unique demographic or group of people to whom you intend to sell bath bombs.

This is a crucial first step when opening a bath bombs shop, as it will help shape your business, the products you sell, and how you market your store.

The more niche you go from the beginning, the better. It will help you make better business decisions and meet the needs of your customers more accurately. 

If you try selling your bath bombs to everyone, you may end up selling to no one. Customers like to feel like their needs are understood, which can only happen when you’re speaking to a more narrow audience. 

You can start out by listing the types of people who use bath bombs to begin with. Here are some examples of niche audiences:

  • Potential niche audience: Baby Boomer women who use organic cosmetics and products as a means of relaxation
  • Potential niche audience: Moms who like using organic bath products on their children
  • Potential niche audience: Female Instagram influencers who like to try new products that are visually appealing and make for good content
  • Potential niche audience: Men who enjoy baths who want to get rid of the stigma that it’s only for women

1.1 Analyze Bath Bomb Niche Communities

To learn more about the industry, you can visit a handful of niche bath bomb communities online. From there, you can discover what their interests are, the problems they face, and where the current market is lacking.

This can give you ideas for your own business and identify problems that you could provide solutions for. 

There are many places online where you can go to discover more about the bath bomb business from the community. This includes visiting Reddit, Quora, other forums, Facebook, Instagram, and TikTok. 

Here are some examples of bath bomb niche communities:

1.2 Find a Problem or a Market Gap

While you’re observing these communities online, you are doing research for your own bath bomb online store. 

Try to identify recurring issues or problems that these communities voice about the current bath bomb market. Notice any concerns that frequently arise, which you will recognize as market gaps that are currently going unaddressed by bath bomb sellers.  

To identify market gaps, consider the following questions: 

  • Who uses bath bombs? Why?
  • What problem is the product solving? Are there many problems?
  • What problems are going unaddressed by the current market?

Consider some of the potential market gaps and problems in the bath bomb industry today: 

Potential Market Gap: There’s a lack of bath bombs targeting the relaxation needs of older women

Potential Problem: Many bath bomb products aren’t safe for kid use

Potential Market Gap: There are plenty of bath bombs that smell great, but not as many that produce impressive visuals 

Potential Problem: The bath bomb industry doesn’t serve men as much as it does women

1.3 Formulate the Niche Audience

Analyze the above market gaps and problems in the industry to help formulate a niche audience for your bath bomb business.

Recognize who the niche audience is for each case, and identify the problems they are trying to solve with bath bomb products, including what’s missing from current solutions.

Go as specific as possible in each case to identify the niche audience being addressed, and make sure the niche audience you formulate is defined around the problem or gap you aim to provide a solution for. 

Here are some examples of niche audiences:

  • Baby Boomer women looking for organic products targeting relaxation + the lack of bath bombs targeting the relaxation needs of Baby Boomer women
  • Concerned moms who use organic bath products on their children + there aren’t many kid-friendly bath bombs available today
  • Female influencers interested in new and visually appealing cosmetic products + there are many bath bombs that smell great but not as many that look impressive
  • Men interested in making baths more common for their gender + the bath bomb industry caters more towards women than men

2. Find a Niche Product

Now that you’ve identified the niche audience for your bath bomb shop, you need to identify the solution to their problem that you can address with your products. 

In the case of concerned mothers who want to use natural products on their children, you can offer kid-friendly bath bombs that are made from safe and organic materials.

Or for the men who are trying to destigmatize baths for their gender, you can develop bath bombs specifically targeting men. 

Consider other well-known products that have solved specific consumer problems.

Uber solved customers’ problems with taxis regarding fare transparency and availability, while Spotify allowed listeners to have unlimited access to music for one flat fee per month rather than charging individually per track. 

2.1 Analyze the Competitors 

Facing competition in the bath bomb industry is great because it means there’s money to be made from selling bath bombs online. 

Do a simple Google search of “kid-friendly bath bombs” to identify who your potential competitors are. From there, you can visit their page to see what they’re doing effectively and where they’re missing the mark.

You can get ideas from them, like how they set up their page, the products they sell, and any specific offers they have to get new customers, like a “buy-one-get-one-free” deal on their bath bombs. 

Here are three popular competitors in this space: 

2.2 Unique Selling Proposition

Identify the USP of your bath bombs business or the unique selling proposition that sets your products apart from your competitors. Essentially, it’s what you do better than everyone else selling bath bombs today.  

You need to specifically define your USP to be most effective, like whether your kid-friendly bath bombs have specific organic certifications or that you don’t use any artificial coloring or fragrances. 

Here are the USPs among your three biggest competitors as a reference: 

  • dabble & dollop: Fewer Ingredients. More Fun!
  • Fizzy Magic: No-Worries Formula
  • Spa-Da: Make the Most out of Kids’ Bath Time

2.3 Choose a Product 

After narrowing down on a niche audience, understanding the gaps in the market, and identifying how you will sell bath bombs online differently than others, you can select the perfect bath bomb product to sell.

Above all, you need to consider the problem your bath bomb product solves and who you’re addressing to find the most effective product.

Here are some examples of bath bomb products that meet a specific niche’s problems: 

  • Baby Boomer women looking for organic products targeting relaxation + the lack of bath bombs targeting the relaxation needs of older women + relaxing bath bombs for aging women
  • Concerned moms who use organic bath products on their children + there aren’t many kid-friendly bath bombs available today + kid-friendly bath bombs made from natural ingredients

2.4 Find Suppliers

You need to find the right suppliers from the beginning when starting a bath bomb business because you need to ensure your promise to customers that your products will be natural and safe for kids.

You can visit online forums with other bath bomb sellers to see where they source their products and learn any further tips they have for finding suppliers.

In many cases, bath bomb suppliers may only sell raw ingredients rather than completed bath bombs you can resell. So keep this in mind as you search for suppliers, specifically looking for wholesale suppliers. 

For more information on finding suppliers for your bath bombs small business, visit these resources: 

Related: How to Start a Bracelet Business?

3. Define Sales Channels

You need to think through how you’ll actually generate sales as you open a bath bomb shop. Each bath bomb shop online will do this differently depending on the products they offer and the audience they serve, though there are many different sales channels you can utilize. 

Some small bath bomb businesses have access to resources or professionals who can help market their products and generate sales, or maybe you have the experience yourself.

In either case, you need to analyze all the resources you have available to you and map out how you will promote your bath bomb business online going forward.  

Here are some examples of potential sales channels:

  • Your personal: Facebook friends, Instagram followers, colleagues, schoolmates
  • Paid advertising: Google ads, Facebook ads, Tiktok ads, Twitter ads, Pinterest ads
  • Marketplaces: Amazon, Etsy, Ebay
  • Communities: Facebook groups, Reddit, Quora, forums
  • Other: Blogging, Craigslist, promoting in the real world (e.g. schools, workplaces, malls)

4. Identify the Minimum Budget

There is a common false belief that you need a lot of money to open a bath bomb shop. However, if that were the case, no one would be able to start a bath bomb business. 

Rather than thinking about the cost over the long term, think about the minimum amount you’ll need to spend to reach your first $1,000 in sales.

Once you begin making money and have proof of concept selling bath bombs for a living, banks will be much more willing to lend money going forward. 

Let’s say you sell each bath bomb for $8, and it costs you $0.75 to source each unit. To reach your first $1,000 in sales, you’ll need to sell 125 bath bombs, costing you $93.75.

Add to this any marketing spend to promote your business, and you can see the minimum amount required to reach this first sales milestone. 

4.1 FFF and Personal Money

You can use personal or FFF money–friends, family, and fools–to become a bath bomb dealer, which means you’re securing funding from those in your network.

This may be best for those just starting out who don’t have a long business history required by banks and traditional lenders. 

So if you don’t have the funds to bootstrap your operations for yourself, you may be able to get it from someone in your immediate circle.

Make sure all parties are clear on the terms involved and how repayment will occur to help prevent any tense situations that could arise from this route. 

4.2 Bank Loans

Bank loans give bath bomb sellers access to a sizable amount of capital, though this may not be available to all new shop owners.

When applying for a bank loan, lenders will consider your pitch deck, loan proposal, business history, credit history, and more. So, you can see why someone just starting their shop would not meet many of these qualifications. 

Upon approval, borrowers receive a lump sum of capital to use for any business purpose they have and will begin monthly repayments plus interest for a predetermined amount of time, typically five to ten years. 

4.3 SBA Guaranteed Loans

Another type of loan that a bath bomb seller may consider is the SBA-guaranteed loan, which is a bank loan backed by the Small Business Administration.

This helps more small businesses qualify for loans with the guarantee of the SBA, making the loan less risky to lenders.

There are certain qualifications to receive an SBA Loan, though some of the general criteria include being a small, for-profit business in the United States.

So while the requirements may be less strict than a traditional bank loan, the borrower still has to meet a number of criteria and find a lender that will make SBA loans. 

4.4 Government Grants

Government grants are a free form of financing for small businesses. However, the availability and qualifications for grants will vary, meaning it’s not a reliable source of funding to depend on.

The great part about government grants is that they don’t need to be repaid, though there may be certain stipulations placed on grant recipients.

For example, you may need to source your products from certain suppliers, hire certain groups of people, or operate in a certain geographic area. 

It doesn’t hurt to apply to the grants your bath bomb business may qualify for, though be prepared for a lengthy application and decision process. 

4.5 Crowdfunding

This method of business financing has grown immensely in recent years. Hosted by major platforms like Indiegogo and Kickstarter, crowdfunding allows business owners to source small investments from a large number of investors.

This may be a good option for businesses that already have a public presence, as these platforms tend to be quite competitive. Plus, you may need to spend on marketing in order to get some good results.

It’s simple to get started on one of these sites, and you can withdraw the funds to use in your bath bomb business once you’ve ended your funding campaign. 

You need to form a legal entity for your bath bomb shop in order to legitimize the business. This is the prerequisite to paying taxes, hiring employees, finding external funding, and more. 

You may want to consult with a legal professional to ensure you’re making all the proper filings and that everything is in your best interest.

Many bath bomb sellers opt for an LLC structure. This provides business owners with the most protection and the least amount of risk exposure should there be an unfortunate outcome from one of the bath bombs they sell. 

5.1 Business Name

Choosing bath bomb business names is a crucial step, though you shouldn’t overthink it. You’ll want to pick a good enough name that is unique and memorable for customers; however, you can always change it later on.

Some ways to come up with bath bomb shop names is to incorporate the types of products you sell or your niche audience into the name.

It’s important to keep in mind that stores with names that are shorter and easier to spell tend to perform better than others. So, don’t overcomplicate this step too much and try to keep it simple if possible. 

5.2 Choose a Business Structure 

Bath bomb business owners will need to select a business structure while getting their legal affairs in order.

Many owners in this industry will choose the LLC structure for the protections it provides; though here are some of the main options available: 

  • Sole proprietorship: the business is not its own separate legal entity; owner enjoys all profits, and is liable for all debts and losses
  • Partnership: similar to sole proprietorship, though the profits and losses are split between the partners
  • LLC: business and owner are two separate entities; the profits get passed on to the business owner, but they are not liable for the losses
  • S Corp: not necessarily a business structure but a tax classification; income is passed directly through to the shareholders

5.3 Register for Taxes (EIN) 

Filing for an EIN, an employer identification number is necessary before you can pay your taxes, hire employees, and much more.

You can easily file for an EIN online at the IRS website, or you can do it by mail if you’d prefer. If you’re operating as a sole proprietorship, you can use your Social Security number instead.

Once you file for your EIN, you’ll also need to determine what your fiscal year is, which can either be the calendar year or any other 12-month period.

You may want to consult with an accountant or tax advisor during this step to make sure you’re staying compliant. 

5.4 Bank Account & Credit Card

Opening up a bank account and applying for a business credit card is useful when purchasing supplies, paying employees, and receiving payments from customers.

It’s a good idea to have business accounts separate from your own personal finances, as it will keep you more organized and better prepared when it comes to filing your taxes. 

Most banks offer some sort of business banking solution, so you can shop around to find which institution offers the best rates and new customer offers.

The same goes for opening a business credit card, though each provider will have its own qualifications to get approved for the card. 

5.5 Insurance & Accounting

Though many business owners feel like getting business insurance is unnecessary, it can be a very worthwhile investment. Having these policies can help protect you should a devastating event occur with your business. 

There are various types of insurance policies to consider, like general liability, business property, and professional liability, among others.

On the other hand, you may also consider hiring an accountant or bookkeeper to help you manage your business’s finances.

Especially when you’re just starting out, understanding all the tax liabilities and regulations around your finances can be overwhelming. So, hiring a professional or investing in bookkeeping software can be very helpful. 

5.6 Permits & Licenses

Bath bomb stores may need a number of licenses and permits at the local, state, and federal levels in order to operate legally.

To begin, some of the federal regulations that you’ll need include your DBA permit, health licenses, and OSHA permits. At the local and state level, you may need additional licenses and permits depending on where you live and whether you’re producing your own bath bombs.

As a best practice, consult with your local municipality about any local laws you’re subject to and visit the Secretary of State’s website where you live for up-to-date information on state regulations. 

6. Set Up the Shop

Now it’s time to set up the actual transaction engine of your business–the website. Although you don’t need to spend weeks and months on developing your site, you should do your best to make it look nice and appealing to your target audience.

There are many platforms you can utilize to design your site on your own, and you can even consult with some of your competitor’s sites to see how they lay them out.

Make sure the site is easy to navigate and simple to purchase from, though you can be creative with the other details to make it unique to your business. 

6.1 Define the Pricing

Again, you shouldn’t sweat too much while setting the pricing for your bath bombs. It’s always something you can change later one once you’ve monitored your site more and gotten customer feedback.

However, it is important to set the prices based on the margin you’d like to earn and ensure that you’re covering all your costs and actually making money.

For instance, if it costs you $3 to source bath bombs to sell and you want to earn a 60% profit, you should charge at least $7.80 per bath bomb. This may change over time as you determine how the demand is at these prices. 

6.2 Create an Online Store

It’s way easier than people think to create an online store for your bath bomb business. Especially when using platforms today like Shopify, it becomes very easy to set up your online store and begin taking customer orders.

Simply make a seller account with Shopify, connect it to the domain you’ve selected for your business, and begin crafting your store. You will need to add product titles, descriptions, and photographs, though you can update these as you go along.

The Shopify platform will process customer sales, monitor inventory levels and more to help you manage your bath bomb business. 

6.3 Order Inventory

Lastly, you’ll need to decide how much inventory to order for your store. You don’t want to order too much and sit on unsold stock, though you also don’t want to buy too little and quickly run out of customer favorites.

It’s recommended to buy as much stock as you need to make your first $2,000 in sales. Let’s consider the case where you’re selling your kid-friendly bath bombs for $7.80 each, meaning you’d need to sell 257 units to reach this level of sales.

This gives you a good starting point, and you’ll need to monitor your stock to determine when’s the best time to order more. 

7. Reach the First $1,000 in Sales

Once you’ve followed each step in this guide, you should have a well-thought-out bath bomb business. At this point, your only focus should be to sell bath bombs online and reach your first $1,000 in sales. 

One of the easiest ways to do this is to sell to your close friends and family members. This tends to be effective, as you already have the trust and rapport with them to get them to try the new products you’re offering. 

There are other ways you can effectively promote your store for free during the earlier stages. For example, you can promote your bath bomb business on Instagram, in Facebook groups, Reddit, and other online forums where you can freely promote.

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