Thursday, 14 September 2017

Why You Start With Soap As Your First Product In Your Business.

So today I will be talking about soap and why it is the best product to start with if you are intending to start a business.

I am not saying this because I am running this business and supplying it to people who is in this industry but as a business owner and someone who has done this before, I will tell you that the best entry-level product will be soap.

P/S: If you prefer to watch a Video where i explained this please click here

Everyday Commodity

You ask me why? If you notice every day when you wake up, ask yourself, what are the products that you have to use every day? Of course, the first thing you do when you wake up is to brush your teeth so you will have to use Colgate so toothpaste is one of the things that you must use! If you do not use it, you will most likely to feel disgusted.

The second thing you have to do is to take a shower. You shower twice a day and so what do you use while you are showering? Of course, the answer to that will be soap. So this is why, the best entry-level product is going to be soap because it is something that you have to use every day.

Cash Flow

So how does this affect the business? As a business owner or if you have been in our entrepreneur club by Soaplab Malaysia, in that group I shared that cash flow is the most important thing to have.

At the end of the day, it’s not about your product or how you market it. It also does not matter whether your business just started or it is making millions, it all comes down to your cash flow.

Cash flow simply means how much money is coming in, in terms of revenue and how much is actually profitable so the profit will then be used later on as the cash for a lot other things like for example maybe you can buy more stocks, or do more marketing or even give your agent some kind of bonus. Therefore, this is why I say, cash flow is important.

So think about it, why did I say soap would give you the highest cash flow?

Minimum Monthly Purchase

One is because everyone has to buy soap every month. There is no soap that will last for 3 – 4 months. It is given that it is something everyone will repurchase in a month. Unlike serum and lotion, it is not crucial – you will use it, but not every day. It could be for reasons like because you are lazy to apply it or if you simply don’t feel like it today because you are not heading out or whatsoever.

I am only saying this because I have been in that situation! As a business owner, of course it is nice if you are an owner of a serum, lotion or even colour cosmetics business like lipstick. However, how often does that customer of yours buys again from you?

Like lotion and serum, think about it, when was the last time you made a purchase? As for soap, I do it on a regular basis but for lotion and serum, its almost like 6 months once. In this case, you will have to constantly look for new customers and when that happens, your cash flow wont be as strong because you will always have to put money into advertising.

Once people understands you and don’t mind putting in the money to buy your product, then you can come up with different products and packages. I am not saying that you should do soap only for the rest of your life. But consider doing one kind of soap and focus on one kind of problems and then come up with a set – like a mask or serum or lotion to go with it but your soap should be the first thing that you launch.


Gain Trust

Another reason as to why I said soap is the best is because not many people will have trust issues. Put it this way, if you are a new start up business that knows no one in the market, you will struggle to sell your product because people will usually depend on reviews and testimonial and if you are still new, how are you going to get testimonials?

This then requires a lot of convincing for people to buy. Soap on the other hand is on the cheaper eon the cheaper end and many people are more likely to try it even if its not good, they can always switch to a different business / different company.

Soap is the tool you use to build your trust and brand. I am saying this because I have done it before. Not too sure if you guys had a chance to watch my video on how I start up soap lab Malaysia – I had a pharmacy selling lotion cream, ointments as well as other skin related products and one thing I realized from it is that the one product that has been giving me reoccurring sale is actually selling soap.

So that is why when I started soap lab I thought that soap would be the first thing I’d sell but over 3 years, a lot people are not really coming in to look for soap but they are more interested in serum, lotion, lipstick and also foundation.

However, as a business owner, you have to think about your back end too – money and cash flow. Therefore, because of that, you should start up with soap and after you have the money, the brand and everything, then you can introduce something at higher range.

Thank You for Reading.

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