How to Start a Profitable Bath Bomb Business (with Checklist)

Here is what you will need when starting a bath bomb business:

1. Licenses — The Food and Drug Administration (FDA) regulates cosmetic products under the Federal Food, Drug, and Cosmetic Act (FD&C Act) and the Fair Packaging and Labeling Act (FPLA). While the FDA does not require a license to create or sell cosmetics, you must ensure your products are safe for consumer use and properly labeled according to their guidelines.
2. Online store — Take your business online and develop a website where shoppers can see your products, purchase what they like, and have it delivered to them. Or use one of the selling platforms such as Etsy.
3. Niche — Stand out with niche products such as eco-friendly lines, wellness bath bombs, personalized offers, luxury and SPA, or men’s bath products.
4. Equipment and materials — If you are making the bath bombs you will need equipment such as mixers, molds, safety equipment, and pH testers. Also, find a reputable supplier for all the materials.
5. Packaging — You’ll need materials and equipment for packaging your bath bombs, such as shrink wrap, labels, and a heat sealer. 
6. Legal business aspects — Register for taxes, open a business bank account, and get an EIN.
7. Register your business — A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple. Form your business immediately using ZenBusiness LLC formation service or hire one of the best LLC services on the market.
8. Subscription boxes — Monthly or quarterly subscription boxes that deliver new and seasonal bath bomb varieties directly to customers can generate a steady revenue stream and build brand loyalty.
9. Franchise — Here are some of the best bath bomb franchises to choose from: The Body Shop, Merle Norman Cosmetics, and Natura Brasil.
10. Learn from real entrepreneurs who run a successful business:

Crafting a Niche in Gamer-Themed Self-Care with D20 Alchemy

Step 1: Decide if the Business Is Right for You

Pros and Cons

Starting a bath bomb business has pros and cons to consider before deciding if it’s right for you.

Bath Bomb Industry Trends

Industry Size and Growth

• Industry size and past growth — The global bath bomb industry was worth $133.04 billion in 2022.
• Growth forecast — The global bath bomb industry is set to reach $189.36 billion by 2031.((https://growthmarketreports.com/report/bath-bomb-market-global-industry-analysis)) 

Trends and Challenges

Trends

• Aromatherapy bath bombs with essential oils are seeing increased demand.
• Bath bombs containing crystals and geodes are also trending, as more and more people believe stones and gems have healing properties.

Challenges

• If businesses claim their bath bombs have health or wellness benefits, the products are considered a drug and subject to strict FDA regulation. Absent such claims, bath bombs are viewed as cosmetic and face less stringent FDA rules. As a result, many bath bomb brands hint at health benefits without making overt claims. 
• There is some concern in the market that certain dyes and perfumes used in bath bombs may cause skin irritation and other issues.

How Much Does It Cost to Start a Bath Bomb Business?

Startup costs for a bath bomb business range from $1,800 to $4,600. Costs include a website, ingredients, and packaging materials.

You’ll need a handful of items to successfully launch your bath bomb business, including: 

• Bath bomb ingredients
• Mixing bowls and measuring cups
• Airtight containers
• Packaging materials 

Start-up Costs	Ballpark Range	Average
Setting up a business name and corporation	$150–$200	$175
Business licenses and permits	$100–$300	$200
Insurance	$100–$300	$200
Business cards and brochures	$200–$300	$250
Website setup	$1,000–$3,000	$2,000
Equipment, ingredients, packaging materials	$300–$500	$400
Total	$1,850–$4,600	$3,225

How Much Can You Earn From a Bath Bomb Business?

The average price of a bath bomb is about $8. After your costs of ingredients and packaging, your profit margin should be about 80%.

In your first year or two, you could sell 150 per week, bringing in $62,000 in annual revenue. This would mean nearly $50,000 in profit, assuming that 80% margin. As your brand gains recognition and you get repeat customers and referrals, sales could climb to 500 per week. At this stage, you’d rent a commercial space and hire staff, reducing your profit margin to around 40%. With annual revenue of $208,000, you’d make a handsome profit of $83,000.

What Barriers to Entry Are There?

The only real barrier to entry for a bath bomb business is the competition you’ll face.

Step 2: Hone Your Idea

Now that you know what’s involved in starting a bath bomb business, it’s a good idea to hone your concept in preparation to enter a competitive market.

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape. 

Why? Identify an Opportunity

Research bath bomb businesses in your area and online to examine their products, price points, and what sells best. You’re looking for a market gap to fill. For instance, maybe the local market is missing uniquely shaped bath bombs or bath bombs with surprising scents, like pineapple or strawberry. 

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Crafting Irresistible Bath Bombs for a Blissful Experience

The key will be concocting a few appealing and unique bath bombs. Once you’ve started building up a reputation, you might consider learning how to make candles, which you could sell as a complementary product. 

How Much Should You Charge for Bath Bombs?

The average price of a bath bomb is $8. After your costs of ingredients and packaging, you should aim for a profit margin of about 80%. 

Once you know your costs, you can use our profit margin calculator to determine your markup and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify Your Target Market

Your target market will be women, and you can find them on TikTok, Instagram, and Facebook.  

Where? Choose Your Business Premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out a production facility. You can find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Bath Bomb Business Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “bath bombs” or “scented bath bombs,” boosts SEO
• Name should allow for expansion, for example, “Blissful Bubbles” over “Kids’ Bath Bombs Shop” or “EcoBath Bombs”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. However, once you start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Bath Bomb Business Plan

Here are the key components of a business plan:

• Executive summary — A concise overview of your bath bomb business, summarizing its mission, goals, and key highlights
• Business overview — Detailed information about your bath bomb business, including its structure, location, and the problem it solves for customers
• Product and services — Clear description of the bath bomb products and additional services your business offers, emphasizing unique selling points
• Market analysis — Thorough examination of the bath bomb market, including target demographics, trends, and potential growth opportunities
• Competitive analysis — Evaluation of competitors in the bath bomb industry, highlighting strengths, weaknesses, and strategies to gain a competitive edge
• Sales and marketing — A comprehensive plan outlining how you will promote and sell your bath bomb products, including pricing, distribution, and promotional strategies
• Management team — Introduction to the key individuals involved in running the bath bomb business, emphasizing their skills and experience
• Operations plan — Detailed overview of the day-to-day operations of your bath bomb business, covering production, supply chain, and quality control
• Financial plan — A detailed projection of the bath bomb business’s financial performance, including income statements, balance sheets, and cash flow forecasts
• Appendix — Supplementary information, such as additional market research, legal documents, or any other relevant details supporting your bath bomb business plan

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose Where to Register Your Company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to bath bomb businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind that it’s relatively easy to transfer your business to another state. 

Choose Your Business Structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your bath bomb business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole proprietorship — The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General partnership — Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) — Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corporation — Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corporation — This refers to the tax classification of the business but is not a business entity. An S Corp can be either a corporation or an LLC, which just needs to elect this structure for tax status. In an S Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number or EIN. You can file for your EIN online, or by mail/fax. Visit the IRS website to learn more. Keep in mind that, if you’ve chosen to be a sole proprietorship, you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund Your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans — This is the most common method but getting approved requires a rock-solid business plan and a strong credit history.
• SBA-guaranteed loans — The Small Business Administration can act as a guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan.
• Government grants — A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and family — Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding — Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal — Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best options, other than friends and family, for funding a bath bomb business. You might also try crowdfunding if you have an innovative concept. 

Step 8: Apply for Business Licenses and Permits

Starting a bath bomb business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your bath bomb business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability — The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business property — Provides coverage for your equipment and supplies.
• Equipment breakdown insurance — Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation — Provides compensation to employees injured on the job.
• Property — Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto — Protection for your company-owned vehicle.
• Professional liability — Protects against claims from clients who say they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP) — This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential Software and Tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as LS Retail, Vend, or Retail Pro, to manage purchasing, inventory, and invoicing.

Accounting

• Popular web-based accounting programs for smaller businesses include Quickbooks, FreshBooks, and Xero. 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences of filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop Your Website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech savvy, you can hire a web designer or developer to create a custom website for your business.

However, people are unlikely to find your website unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Marketing

Here are some powerful marketing strategies for your future business:

• Website & SEO — Optimize your website with relevant keywords to ensure visibility when customers search for bath and wellness products.
• Social media showcases — Use visually-oriented platforms like Instagram and Pinterest to display the vibrant and unique qualities of your bath bombs.
• E-commerce optimization — Enhance your website’s user experience with a clear and easy purchase process, highlighted by calls to action such as Shop Now.
• DIY content and blogs — Share informative blog posts and videos about bath bomb benefits, DIY recipes, and relaxation tips to drive traffic and engagement.
• Customer reviews and testimonials — Prominently feature customer feedback on your website and social media to provide social proof and build trust.
• Pop-up shops — Set up pop-up booths at local markets or fairs to let customers experience your bath bombs’ scents and fizz firsthand.
• Workshops — Conduct workshops where customers can create their own bath bombs, providing a personalized touch to their shopping experience.
• Subscription boxes and partnerships — Collaborate with subscription services and wellness blogs to include your bath bombs, thereby expanding your reach.
• Local spa collaborations — Partner with local spas to feature your products in their services or as part of special package deals.
• Loyalty rewards — Establish a rewards program that offers perks like discounts or a free product after certain purchase milestones.
• Referral incentives — Implement a referral program that benefits both the referrer and the new customer, fostering community and customer growth.
• Influencer collaborations — Engage with influencers in the beauty and wellness sectors to widen your audience and enhance your brand’s credibility.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your bath bomb business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your bath bomb business could be: 

• Relax after a hard day with our calming bath bombs
• Bath bombs made with coconut oil to make your skin glow
• Treat yourself with donut-shaped, soothingly scented bath bombs

Networking

You may not like to network or use personal connections for business gain but your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a bath bomb business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in bath bombs for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in bath bombs. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a bath bomb business include:

• Bath bomb makers — making and packaging bath bombs
• General manager — scheduling, ordering, accounting
• Marketing lead — SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Bath Bomb Business — Start Making Money!

Bath bombs help people relax and are seeing a sharp increase in demand. This hot market offers an opportunity to get creative and make a good living. They’re easy and inexpensive to make, so you’ll have great profit margins. If you’re willing to put in the work and deliver reliably appealing products, you could bomb the competition and build a great bath brand! 

You’re off to a great start, having gained some business information. Now it’s time to start experimenting with ingredients and launch the operation bath bomb.

FAQs

Is a bath bomb business profitable?

Yes, bath bombs cost very little to make, so profit margins are high. You just need to come up with unique bath bomb recipes and shapes and you can be successful.

How can I learn to make bath bombs?

You can take an online bath bomb making course at Udemy for about $100. There are also a host of sites with instructions as well as YouTube videos you can watch.

Do bath bombs need FDA approval?

In the United States, bath bombs are considered a cosmetic product and are regulated by the Food and Drug Administration (FDA) under the Federal Food, Drug, and Cosmetic Act (FD&C Act). However, they do not require pre-market FDA approval before they can be sold to consumers.

What ingredients are commonly used in bath bombs?

Common ingredients used in bath bombs include baking soda, citric acid, Epsom salts, essential oils or fragrance oils, carrier oils, colorants, and a binder such as witch hazel or water.

Where is the best place to sell bath bombs, beside my website?

Online marketplaces like Etsy, Amazon, or eBay provide exposure to a wide customer base. Local markets or craft fairs allow for direct interaction with customers and the opportunity to showcase your products. Retail stores, especially boutiques or specialty shops, may be interested in carrying your bath bombs.