How to Start a Home Cloth Diaper Making Business
Cloth diapers are an alternative option to disposable ones. As of 2010, the rise in environmentally conscious consumers has made cloth diapers more attractive to a niche market. Also, some consider cloth diapers to be a healthy alternative for babies because the of the material used. Many consumers seek to buy locally and support small businesses. The potential for a home-based cloth diaper making business is viable. Start-up costs can be kept low by selling the diapers online and at local markets. Word of mouth may be your most effective source of new business.
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Things You'll Need
- Business plan
- Permits and licenses
- Diaper material
- Interactive e-commerce website
- Membership in a local market
Instructions
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Create a business plan. Write and develop a business plan to act as your guide. An effective plan should include a description of your business, financial data and research, profit and loss statements and any other documents, such as your personal financial statements.
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Complete all of the necessary legal documents for your business, which vary from state to state. However, you should expect to complete some type of business license, trade name registration (if doing business under a name other than your own) and insurance forms. Local authorities may have requirements as well. Seek the assistance of a lawyer to assist you in the process of filling out forms to make your business legal.
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Hire an accountant to assist you in completing and filing the necessary financial documents, like local and state taxes. Work with him to set up a simple accounting system. Meet regularly to ensure that your finances are in order.
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Locate a source for the necessary materials that you will need to produce the cloth diapers. The knowledge of your target market will assist you in sourcing and purchasing. These consumers, in general, prefer fairly produced and traded fabrics. Organic fabric will be another important consideration in your choice of material. Environmentally friendly cleaners and baby supplies are accessories that you may choose to offer.
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Set up an interactive e-commerce website, where you will sell your diapers online. It must have discussion boards, or forums, and facilitate sales. A strong community will provide you with important information about the market and feedback about your products. Cloth diaper users are educated consumers and desire a close relationship with their supplier.
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Join a local, or "farmer's," market or cooperative where you can sell your cloth diapers. Shoppers at these locations tend to be environmentally conscious consumers and also have a desire to support the local community. Become an active member and engage in this opportunity to sell your products. Cooperatives and markets vary as far as membership requirements, but expect to pay a minimal fee to join. You may need to be present at markets to sell your goods, and in some cooperatives you will have to work a few hours a week.
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Tips & Warnings
A monthly newsletter and occasional offers will keep your customers updated and active.
Ensure that you have proper insurance prior to conducting business.
References
Resources
- Photo Credit Baby playing in Diaper image by Photoeyes from Fotolia.com
