How to Start an Essential Oil Business

Starting an essential oil business can be a creative and rewarding endeavour! Set up a company to make and sell your own oils, or purchase them wholesale to resell. Create an attractive website and various social media profiles, which will help you promote and grow your business. Sell your essential oils online, at community events, or in stores.

EditSteps

EditSetting up Your Business

1. Choose a name for your essential oil company. An important step in establishing your company is coming up with a business name. Choose a name that stands out but also conveys that you are selling essential oils. In North America you are not required to apply to trademark your name, but it is a good idea if you want it to be unique.^[1]
   
   • If you live in the U.S. and want to ensure that no other businesses in your area have the same name, search the United States Patent and Trademark Office's database at http://tmsearch.uspto.gov/bin/gate.exe?f=tess&state=4805:am2gjg.1.1.
2. Apply for a city business license online or by mail. To set up a business license for your essential oil company, visit your state's official website. In most states, you can file for a license online or print a form to mail in. Pay any required fees, which will vary by state.^[2]
   
   • For instance, in Boston you will have to submit a completed business certificate form and submit it in person or by mail, along with a $65 filing fee.^[3]
3. Incorporate your essential oil business. To protect yourself from personal liability with regard to your business’ debts and agreements, incorporate the company. Call or email your state office to get specific instructions for how to apply for incorporation. Obtain the correct paperwork online or from a local government office. ^[4]
   
   • For instance, if you get into a contract dispute with a supplier, you will not be personally liable for any fees or charges owed to them by your company.
   • It is easiest to file for incorporation through a lawyer, but you can save money by using books and software to do it yourself.
4. Calculate your start-up costs. To calculate your start-up costs, take into account all of the one-time expenses you will incur when starting your essential oil business. Always overestimate costs to ensure that you plan and budget for all contingencies. Start-up costs, which will tell you the minimum amount of capital you will need to raise or borrow to open your business, could include:^[5]
   
   • Registration or license fees
   • Legal and professional fees
   • Purchase of equipment to make and bottle essential oils
   • Advertising and promotion for your company's grand opening
   • Starting inventory of essential oils
   • Initial fees for your website and e-commerce platform
5. Work out your recurring operating costs. Figure out how much capital your company will need to run each month by calculating your monthly expenses. These operating expenses should be overestimated to make sure that you budget sufficiently for the future. Recurring operating costs will include:^[6]
   
   • Supplies and stock of essential oils
   • Rent and utilities, if you are opening a physical store
   • Monthly website and e-commerce store fees
   • Salaries, if you are hiring employees
   • Contingency costs
6. Study other essential oil businesses to understand the market. In order to structure your business and set prices, observe other successful essential oil businesses online or in your area. Take note of their pricing and most popular products. Draw inspiration from these companies and identify any holes in the market that your own essential oil business can fill.^[7]
   
   • For instance, you might notice that the essential oil companies you study do not sell eucalyptus oil, which could be an opportunity to fill a hole in the market.
7. Observe the advertising techniques of your competitors. Study competitor websites and their search engine rankings to see how you should target your advertising approach. You should also check paid search results for essential oil companies to see if its a worthwhile investment for your company. Look for your competitors on social media platforms like Facebook, Instagram, and Twitter to see how they are marketing themselves.^[8]
   • You can also read online reviews of other essential oil companies to see what customers like and dislike about their products and service.

EditBuilding Your Product Inventory

1. Purchase an essential oil distiller. Large essential oil distiller machines are available for purchase online. Look for a model with a 20-liter capacity or more. If you want to distill different kinds of essential oils at the same time, purchase multiple distillers.^[9]
   
   • Distillers range in price, size, and quality, but you will likely pay at least $500 for the equipment.
2. Set up your distiller in a designated production area. Choose a safe and spacious environment to set up your essential oil distiller. This area should be cool and free of flammable materials. Keep in mind that you will need a burner or stove for the distilling process.
   
   • If you are producing essential oils at home, a garage or basement would be the best location for this set-up.
3. Choose what essential oils you will make for your product line. Essential oils can be derived form a variety of garden herbs, spices, and flowers. Decide what scents you want to be a part of your product line and start looking for suppliers at local markets or farms. You can also choose to make unique blends of different ingredients.^[10]
   
   • For instance, you can choose to focus on relaxing scents like lavender and chamomile.
   • Try to find a regular supplier for the main ingredients you use to ensure quality and consistent prices.
4. Grow your own essential oil ingredients to keep production costs low. To grow your own ingredients year round, start an indoor herb garden that will be safe from the elements. You can also plant flowers in an outdoor garden for beautifully scented ingredients when the weather allows. Be sure to grow more than what you need to produce essential oils in case you lose some of your crop.
   
   • For instance, mint, lavender, and oregano are easy plants to grow and harvest.
5. Bottle your essential oils in colored glass bottles. Order small colored glass bottles from a supplier online to hold your essential oils. Colored glass protects essential oils from UV rays, and will resist leaks much better than plastic bottles. Be sure to order sturdy bottles, which will not break easily during transport or shipping.^[11]
   
   • Essential oils are usually packaged in small, bottles.
6. Choose how the oil should be dispensed from the bottle. Decide if you want your bottles to have droppers or pipettes inside to disperse the oil. Be sure that the caps on the bottles still close securely, as an opening or ill-fitting cap could result in the oil evaporating. If you wish, omit any sort of dispensing tool so customers can pour the oil directly from the bottle. ^[12]
   
7. Buy oils from a wholesale supplier if you don’t want to make them. Essential oils can be purchased from a wholesale supplier and resold online or in a store. Find a supplier that will sell bulk orders that suit your budget and storage capacity. As a general rule, wholesale orders will have to add up to at least $3,000.^[13]
   
   • If you choose to re-sell essential oils, appeal to customers by offering a wide selection of them.

EditSelling Your Essential Oils

1. Build a website for your company. Make a website to advertise and sell your essential oils. Your company's website should include background information about the business, as well as your contact information. Include a detailed listing of all of your products complete with photos.
   
   • To optimize your business, you should start a website even if you are opening a physical storefront to sell your essential oils.
2. Choose an e-commerce platform to sell your oils online. To be able to sell products through your website, you will need to choose an e-commerce platform to host your online store. Opt for a popular platform that does not charge a monthly or annual fee. Sign up online and follow the directions to get your store up and running.^[14]
   
   • Shopify is an example of a popular e-commerce platform that does not charge monthly or annual fees.
   • Link directly to your store on your website.
3. Make company profiles on social media platforms to gain exposure. Social media is the best way to advertise your business for free. Open accounts on Facebook, Twitter , and Instagram to promote your products and gain followers. Ask your friends and family to share your posts to gain visibility and build a larger client base. ^[15]
   
   • You can a share pictures of new essential oils that your company starts manufacturing, or post pictures of different ways your customers can use essential oils.
4. Sign up to sell your oils at community events to build a client base. Festivals, expositions, and other local events can provide great opportunities to advertise your business, talk up your products, and get new customers. Sign up as a vendor at such events and bring essential oils to sell, as well as sample bottles for new customers to test out. Encourage people to visit your website or social media pages for more information.^[16]
   
   • To leave your mark, print business cards or brochures about your essential oils to distribute at these events.
5. Sell to retail stores that carry similar products to broaden your market. Research stores that carry essential oils or other natural products and contact them about the possibility of selling your oils. If possible, find out the name of the store buyer or department manager to make sure that you deal with them directly, which will up your chances of making a deal. Once a retailer agrees to carry your product line, accept their payment by credit card or give them 30 days to send a check for the order.^[17]
   
   • As a general rule, you should charge the retailer double your cost for the items being sold.
6. Open an essential oils store if you have a very large product line. If you succeed at selling your essential oils online or at events, invest in opening your own store. Make sure that you have enough capital, stock, and demand to support a physical storefront. Hire employees who can learn about and promote each product of your essential oil line to make sales. ^[18]
   
   • If you open a store, you will have to factor in regular expenses such as rent, utilities, employee salaries, renovation, and store maintenance.
   • Invest in decorating your store and creating unique displays to attract new customers.

EditTips

• Start small by only producing a few types of essential oil to avoid losing money.
• Include an expiration date and storage instructions on your essential oil bottles.
• Give small samples to family, friends, neighbors, and colleagues.

EditSources and Citations

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