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October 24, 2015 at 8:01 am #993117
i make and sell natural lip balms from home just to local people via FB etc. I am wanting to expand it a bit and make it more into a real business. What do I do from here?
I don’t have website or FB page for them. I just make them at home and go by an honesty system. I label them with ingredients etc. do I need insurances ? At what point do I need them ?October 24, 2015 at 12:42 pm #1189811harosMember
- Total posts: 4
How does your honesty system work?
If you already have FB why not make a FB page for your product? You can also try marketing via other websites such as Gumtree. Then you can set up your own website if you think it will help.
You will need insurance when you don’t want people suing you, as a result of an allergic reaction for example. Ring some insurance companies regarding product liability insurance, I don’t imagine it would be costly for natural lip balm at the quantity you are currently selling.October 25, 2015 at 8:20 am #1189812
Ok thank you I will gather some quotes for insurance.
I mean honesty system as in I put them in the mail box and they collect and leave cash, generally how a lot of FB sales go! It’s via a homemade items local page.
Just nervous to try take things further if it may fail.October 25, 2015 at 3:02 pm #1189813tf76Member
- Total posts: 14
You will need to apply for an ABN and I figure you would be classified as a sole trader.
If you want you can also register your business name through ASIC.October 25, 2015 at 10:34 pm #1189814alliedibMember
- Total posts: 453
Hi Mama Bear,
There should be a few companies looking to provide insurance for Lip Balm Manufacturing – I know our agency arm insures clients with similar businesses so I can check to see who their insurer is (if you like)….
You wouldn’t specifically want Product Liability – you would obtain cover for General Liability / Business Liability (this should include both Public Liability – which you will need if you ever sell at markets etc – and Products Liability) – for small enterprises there is not a specific policy for Products Liability only.
The only issue you may come across is that you may be subject to an insurer’s minimum premium (due to your low turnover you may end up paying the same as someone who has a turnover of say $30,000+) – don’t let this dissuade you – think of it as a goal to aim for .
Let me know if you have any questions or would like me to discuss further with you.
MarkOctober 27, 2015 at 2:38 am #1189815
Thank you, I def will look at the insurance, will be earning no way near 30k!
As for business name, haven’t even got as far as thinking of one yet!
My main concern would be insurance. What are the average annual premiums for insurance for under 30k mark?October 27, 2015 at 2:43 am #1189816alliedibMember
- Total posts: 453
Hi Mama bear,
The premiums are based on a number of factors, including your own individual circumstances – if you would like me to PM your contact details I can have a chat to you about it.
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