Starting an essential oils business might seem daunting, but it can also prove to be a fulfilling undertaking. If you’re curious about how to start an essential oil business, it’s most likely because you’ve seen the industry soar in popularity. There are many ways you can build your business (whether it’s brick and mortar, e-commerce, or a combination of both) around essential oils, and here are a few simple steps to help you out.
Step One: Market Research
It’s important to study existing essential oil businesses in order to understand the market you’re trying to break into. During your research phase, it’s crucial to consider your competitors’ online presence and how they engage with their audience. For instance, through your research you can find that most essential oil businesses do not carry rose oil—this can then be an entry point for you into the industry. By marketing for an audience who’s interested in learning more about specific rose oil uses and benefits, you’ll be beating your competition with knowledge (and also by finding a niche in the market).
Additionally, market research allows you to become familiar with the market rate and know how to price your own brand of essential oils.
Step Two: Make a Business Plan
Ask yourself the following questions: What is the mission of my business? Who is my audience? What do I hope to accomplish? How will I fund the startup costs? All of these questions and others that may arise can be answered in a well-written business plan.
Step Three: Find Funding
Before you hit the ground running, you’ll need to calculate your start-up costs. In order to do this, consider the cost of going into business. Some expenses to consider could include:
- Company registration fees
- Manufacturing and packaging equipment
- PR and advertising
- An initial inventory of essential oils
- Website fees and/or e-commerce platform
Step Four: Select a Business Location
Your business location largely depends on where your target market is domiciled. While considering a location for your business, be it an e-business or brick and mortar store, also account for several costs, such as that of an e-commerce platform for instance, or the restrictions put in place by state agencies.
Step Five: Create a Business Name
The business name should be memorable enough to remember, but it should also stand out to convey that you will be in the essentials oils business. If domiciled in the United States and want to make sure that no other businesses in your area are registered in the same name, you can run a quick search through the United States Patent and Trademark Office’s database.
Step Six: Register and Incorporate Your Business
To ensure that your business name is protected, you will need to register it. There are four methods of registering a business, and each of these methods attend to a unique purpose. These methods will vary depending on the business structure you will have chosen for your business.
To add to this, incorporating your business is important, as it allows you to shield yourself from personal liability in the form of business agreements or business debts. If within the United States, you can do this by contacting your state office for guidance on how to apply for incorporation.
Step Seven: Apply for a License and Permit
This can either be done online or by mail. To do this, you can visit your state’s official website. Here, you can find downloadable and printable forms that you can then mail in. It is important to note that filing fees vary from state to state. Additionally, if in Europe, the European Union website has a set of resources and guidelines on how to get a business license.
Step Eight: Business Insurance
In order to protect your business from unprecedented and additional costs, make sure that you are insured against natural disasters and accidents, among other eventualities.