HBN Success Spotlight on Rebecca Lucich of Chelmsford Herbal Soap Company
June 11, 2001

Member Success Spotlights are one of the benefits of HBN membership. To learn more about this and other HBN member benefits, click here.

Introduction To Chelmsford Herbal Soap Company

Rebecca Lucich  of Chelmsford Herbal Soap Company is a long-time HBN member. Rebecca, a former CPA, runs Chelmsford full-time from her offices in Chelmsford, Massachusetts USA. She manufactures 22 "flavors" of handmade soaps, plus lotions, a facial and baby care line, bath teas, body scrubs, lip balms, body balms, massage oils and other gift items. She also does private label manufacturing. Chelmsford has been in business 6 years, and credits its growth to retaining repeat business customers. A full 98% of Chelmsford's customer base is repeat business. Its overall sales base is composed of 90% wholesale and 10% retail sales by catalog and Web site. About 30% of its sales are private label.

From Avid Hobbyist to Small Business Owner

Rebecca learned to make soap from her grandmother. In the late 1980's, she realized she did not like being an accountant and began exploring various hobbies besides soap making to help relieve stress. When she began making natural creams and lotions, she began to uncover her creative side. Soon, she began planning to start her business, a process that would take five years before she sold her first product. Rebecca found her CPA training to be invaluable as she developed her business plan, and she started saving specifically for her business from its earliest beginnings. 

Rebecca's seven independent sales representatives cover most the US and she also employs two soapmakers and another employee who assists her in making the other products. Two other workers package, wrap and ship the products. Her daughter helps out as needed and also serves as a local sales representative. Rebecca has an attorney on retainer and sometimes uses the services of a graphics artist and cosmetics chemist. Rebecca trades public relations services products. As you might expect, Rebecca herself if the company accountant! 

Chelmsford's Best Selling Products & Future Plans

According to Rebecca, the toughest part of running the business is knowing when to expand, either by adding another employee or a new product or more space and when to buy equipment that costs a substantial amount of money. She has the most fun when she is creating new products. While all of her products sell well, by far the natural soap is the best selling product at Chelmsford. "It's the highest quality soap we can make, using the best ingredients we can find," says Rebecca.

Chelmsford packages their soaps in a box, which Rebecca says has increased sales significantly. The lip balms are a close second in sales numbers after the soaps, followed by creams, lotions and body scrubs, in that order. Rebecca's business continues to grow by leaps and bounds. She wants to continue growing but is not sure exactly how large she wants to grow. It's one of the few things she does not have a plan for! 

Rebecca's advice to those hoping to start a handmade toiletries business is simple: prepare a business plan using some of the good books available or using the services of a professional. Says Rebecca, "The best advice I can give a start up business owner is to know what market she is going to sell in and the direction she wants to take the business. If this information is not known, the business won't go anywhere at all. Instead, the owner will just be spinning her wheels enjoying a hobby. I also recommend that businesses have enough capital to run the business and live on for 5 years before getting started. I know that is a really daunting piece of advice and five years of living expenses may be way more than is needed, but you have to give a business time to grow."

Rebecca's final advice is to "be careful where you spend your dollars and never borrow unless you have a written plan detailing how you will earn the money to pay back the loan. Last, but not least, be fair to your customer ... when in doubt, they are right. Always ship orders within 2 business days or less, unless it is a private label or you have an agreed turnover time with the customer."

According to Rebecca, HBN provides all sorts of information and tools to handmade toiletries businesses. "From supplier lists to educational information ... all that in one place at HBN," says Rebecca.

Rebecca and Chelmsford can be contacted at csoap@net1plus.com and through their Web site here.