Steady Growth Through Hard Work

Kate's Soap started as a hobby for Kate. She became a sole proprietor of the business in 1998 and incorporated in 2000 when they began selling locally (retail) and wholesale and opened their flagship store in January 2001. To start the business, Kate invested thousands of her own dollars, took out a second mortgage on her home and received small investments from two wonderfully supportive women in her life. Kate's Soap contracts with a CPA to help with financial and tax issues, as well as a cosmetics chemist to formulate their non-soap products.

According to Kate, the toughest part of running Kate's Soap is managing the financial and legal aspects of being a manufacturer, wholesaler, and retailer all at once. These challenges are balanced by the joy of making soap and working with others who enjoy the same things Kate and Leslie do -- herbal lore, environmentalism and natural products.

Kate's Soap's best sellers are their soaps. Says Kate, "They are just really good. Our customers tell us so, and return again and again for more, which speaks for itself. Even customers who sample other handmade soaps tell us ours are their favorites." Their very best seller is the line of Neem Soaps which they manufacture for Organix South, Inc. The Neem Soaps are sold nationwide and internationally. According to Kate, "We are thrilled that a major natural products manufacturer has chosen to have a handmade soap in their line. Neem Soaps sell very well for us in our retail store and in other retail outlets. Our Neem Soaps offer a real difference because they incorporate neem oil in sufficient quantities to really make a noticeable difference in the effectiveness of the soap from a skincare perspective."

During the next five years, Kate's Soap plans to continue to expand the scope of their flagship retail shop. Kate expects revenues to be somewhere between $70,000 and $100,000 this year, depending on the extent to which they are able to accomplish their "to do" list for expanding their retail store.

Kate's  Advice To New Handmade Beauty Businesses

"If you don't want to work really hard, and adhere to clean manufacturing practices, and either learn to do all of the work yourself or be prepared to pay appropriately for a professional to do it -- don't start. Enjoy your hobby. But if you are serious, committed, and obsessed by the need for QUALITY, then by all means jump in -- it's great!"

Benefits of HBN Membership

According to Kate, who has been a member of HBN since its inception, "The resources at HBN are great and the information provided through HBN, which spans all aspects of the industry, is fabulous. HBN helps Kate's Soap be a bigger player in the highly complex and competitive cosmetics industry. Donna Maria is always accessible, and the content of the Web site, newsletters, etc. is practical."