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How to Start a Profitable Hand Sanitizer Business

The Coronavirus pandemic has suddenly increased the demand for hand sanitizers throughout the world because of the preventive requirement of frequent handwashing. With the soaring demand, the supply of hand sanitizers has reduced to a great extent, creating demand higher than before.

Under such circumstances, you can start a business of hand sanitizers and sell them through the selling networks and earn good profits. Making Alcohol-based hand sanitizers is not a very difficult task as it does not need specific temperature, heating, or any laboratory setup.

You can make hand sanitizers even at your home under the guideline of the World Health Organization (WHO) and sell them at a reduced price and still earn profits, as the demand is soaring now.

8-Step Hand Sanitizer Business Plan for Beginners

Broadly hand sanitizers are of three types. They are pharmaceutical, cosmetic, and ayurvedic hand sanitizers. Find below the basic steps to make and sell hand sanitizers for profit:

1. The Important Points to Remember in Making Hand Sanitizers

 You know that alcohol-based hand sanitizers are now high in demand. You have to remember certain points regarding these hand sanitizers before you start making them.

  • Alcohol-based hand sanitizers should contain at least 60% or more Alcohol.
  • The Alcohol you use for making the hand sanitizers should contain at least 90% or more alcohol.
  • The water you are using in making the hand sanitizer should be distilled water at normal room temperature. If it is not available, boil the normal water, cool it, and then use it.
  • If you are using Glycerine, you have to use pure glycerine or 98% glycerine.
  • Try to buy the required ingredients from a renowned chemist shop or a reputed online portal.

2. Hand Sanitizer Manufacturing Process

 The method of making hand sanitizer is quite easy. At this time of the Coronavirus pandemic, you should follow the WHO guidelines to make it.

For preparing 10 liters of hand sanitizer you have to take:

  • Ethanol (96% Alcohol): 8333 ml
  • Hydrogen peroxide 3%: 417 ml
  • Glycerol 98%: 145 ml

In the first step, pour the Ethanol into a 10 Litre jar or container with marks. Then add the hydrogen peroxide using a measuring cylinder.

Now add the glycerol with a measuring cylinder. Glycerol is very sticky, you can rinse it with distilled water or boiled cold water.

Now fill the container with distilled water or cold boiled water and cover it with a lid.  Mix the ingredients by shaking mildly or with a paddle.

Now pour the solution into bottles of your choice (50 ml, 100 ml, or 200 ml). Keep these bottles isolated in a cool place for 72 hours after which it is ready for use. This time is taken to see whether there are any spores in any of the ingredients or the bottles.

Alternatively, you can also use:

  • Isopropyl alcohol (with 99.8% Alcohol content): 7515 ml
  • Hydrogen peroxide 3%: 417 ml
  • Glycerol 98%: 145 ml
  • Follow the same method as said earlier.

3. The Precautionary Measures for Homemade Hand Sanitizers

You have to follow certain precautionary measures while making hand sanitizers. They are as follows:

a) Produce and store the hand sanitizers in a cool room. If there is an air-conditioned room, you can use it.

b) There should be no smoking or any flame in the room where you are making it or storing the bottles.

c) Undiluted ethanol is highly flammable you should directly dilute it. It is almost the same for Isopropyl alcohol also.

d) You can make up to 50 liters of hand sanitizer at a time in this method. For mass production, you need more facilities like specialized air conditioning and ventilation.

4. The Legal Requirements for Hand Sanitizer Business

 There are certain legal requirements for you to start your business with hand sanitizers. You have to follow them to run the business successfully.

  • You have to register your business and select an appropriate business structure.
  • Get your business insured.
  • Give your business a suitable name.
  • Open a bank account in the name of your business.
  • You have to get the permission of the local Food and Drug Authorities and obtain relevant licenses to start your business.
  • Since you have to use alcohol for making hand sanitizers, you need a buying and storage license for Alcohol.
  • You also need to follow the Fire Safety Rules to run your business.

5. The Economics of Hand Sanitizer Business 

The price of hand sanitizers is soaring in recent times, due to heavy demand. You can very well get good profits by selling your hand sanitizers at a very modest price of $1 per ounce.

The cost of ingredients is not high. With a few trials and errors, you can successfully make hand sanitizers yourself and it will serve the purpose in this hour of dire necessity.

The approximate costs of raw materials are as follows:

  • Isopropyl Alcohol at 1760.874USD/MT
  • Ethanol at 1.03USD/Gallon
  • Hydrogen Peroxide at 112.737USD/MT
  • Glycerine at 1.00-5.00 USD / Kilogram
  • Fine Spray Bottles 12 Packs, 60ml 2oz 21.89USD

So, you can easily make out from the list that you will be able to earn good profits from the hand sanitizer business plan if you start on a small scale.

6. Hire Manpower

It will be profitable for you if you can start your business with a minimum of people because you do not have expenses on salaries.

Start the business with a person to assist you, a delivery person to deliver the hand sanitizers to different selling locations (you can do this yourself too), and of course, a good marketing person.

Take care of the banking and accounts yourself to start with. That will show the progress of your business directly.

7. Production Setup

Set up a production facility or partner with a contract manufacturer to produce your hand sanitizer. You need to ensure that the facility follows good manufacturing practices (GMP) to maintain quality standards.

Furthermore, you will be required to source a range of high-quality raw materials. It includes alcohol, gel bases, fragrance, and packaging materials. Establish relationships with reliable suppliers to ensure a steady supply chain.

8. Branding and Packaging

Create a compelling brand identity that resonates with your target market. Develop a brand name, logo, and packaging design that communicates your brand values and appeals to consumers.

Consider eco-friendly packaging options and clearly label your product with all the required information, such as ingredients, directions for use, and safety warnings.

9. Where to Sell Hand Sanitizers

Now that there is a huge demand for hand sanitizers everywhere, your list of prospective customers is a long one. Some of the places where you can approach to sell your hand sanitizer products:

  • Households
  • Pharmacies & Medicine Shops
  • Hospitals & Health Centres
  • Quarantine Centres
  • Laboratories
  • Schools & Colleges
  • Hostels
  • Government Offices
  • Markets
  • Offices
  • Shops
  • Laundries

10. Marketing Strategies of Hand Sanitizers

There can be several selling strategies. Discuss your plans with your marketing consultant. You can create your own website in the name of your business and share the links to your social networking sites to publicize the name of your business.

Selling through online portals is also a good option.

You can distribute flyers in your locality and as a promotional strategy give away some free samples. Contact with the pharmacies and medicine shops is also a good strategy.

Get in touch with the doctors and clinics and give them some free samples. Also, stress the point that you have made the hand sanitizers as per the guidelines of WHO.

Contact the corporate offices and hospitals. If possible, make a PowerPoint Presentation describing your manufacturing process and the cleanliness and health guidelines you follow.

Make arrangements for online selling and payment facilities. Doorstep delivery is also a good selling strategy.

The Sum-Up Points

This is all about your hand sanitizer business plan. Remember, this is the initial planning for your business. After your business volume gets increased, you can add some value to your product by adding Aloe Vera Gel and Essential Oils to make the product more skin-friendly and with good perfumes. Then you can increase the price also.

With the increase in the volume of your business, you can also go for large-scale production. In that case, hire a professional chemist and an accountant to take care of production and finance respectively.

A Hand Sanitizer business plan is very much needed at this hour of the pandemic. However, the demand will be there afterward too. So, you will have no difficulty establishing and gradually stabilizing your business.

Frequently Asked Questions

What is the cost of starting a hand sanitizer business?

The cost of starting a hand sanitizer business will vary depending on various factors such as the scale of your operations, location, production methods, and marketing strategies. Here are some potential cost considerations to help you estimate the startup expenses:

  • Legal and Regulatory Compliance
  • Manufacturing or Sourcing Hand Sanitizer
  • Packaging and Labeling
  • Branding and Marketing
  • Distribution and Sales Channels
  • Storage and Warehousing
  • Operational Expenses

In addition, consider ongoing operational costs such as utilities, employee wages (if applicable), quality control measures, product testing, inventory management, and insurance coverage.

Are there specific regulations I need to follow to manufacture or sell hand sanitizers?

Yes, regulations may vary depending on your country or region. In the United States, for example, the FDA provides guidelines and regulations for hand sanitizer production and labeling. It is important to consult the relevant regulatory authorities and comply with their requirements.

What are the essential ingredients for an effective hand sanitizer?

An effective hand sanitizer typically contains an alcohol-based solution, such as isopropyl alcohol or ethanol, with a concentration of at least 60%. It may also include other ingredients like aloe vera gel, glycerin, or essential oils for added moisturization and fragrance.

How can I ensure the quality and safety of my hand sanitizers?

Implement strict quality control measures throughout the production process. This includes testing the raw materials for quality and purity, conducting regular product testing for efficacy and stability, and adhering to good manufacturing practices (GMP).

How should I price my hand sanitizers?

Pricing can vary depending on factors such as production costs, market demand, competition, and your desired profit margin. Consider conducting a market analysis to determine the price range for similar products and set a competitive yet profitable price point.

What are the packaging considerations for hand sanitizers?

Hand sanitizers are typically packaged in bottles or containers that are easy to use and carry. Ensure that your packaging is leak-proof, durable, and labeled with all the necessary information, including the product name, ingredients, directions for use, and safety warnings.

Can I sell my hand sanitizers online?

Yes, selling hand sanitizers online can be a viable option. You can set up your own e-commerce website or utilize online marketplaces to reach a wider customer base. However, be aware of any specific regulations or restrictions regarding online sales of hand sanitizers in your jurisdiction.

How can I ensure a steady supply of raw materials for production?

Establish relationships with reliable suppliers of raw materials, such as alcohol, gel bases, and packaging materials. Consider having backup suppliers to mitigate any potential disruptions in the supply chain.