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"Petroleum Jelly Processing Business": How to Get Started

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Petroleum jelly is an essential raw material for the cosmetics industry. With the cosmetics industry performed so well in the past recent years, the demand for petroleum jelly has also increased, creating a promising business opportunity.

Contrary to popular belief, the processing for petroleum jelly is not very complicated, and will only require a relatively low startup investment overall. Thus, this business is a viable opportunity to start a small (and even home-based) business with a decent potential in earning, profitability, and sustainability.

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Interested to start this business? Here are a few tips to help get you started:

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1. The Process
The processing of petroleum jelly is fairly simple. First, a mixer mixed crude petroleum jelly with lubrication oils. After it mixed well, the mixture is boiled and stirred until it melts at a temperature of 400 degrees Celsius.

During the mixing and boiling process, perfumed ingredients are added to the mixture, before finally being cooled down with a chilling container and then packed.

2. Startup Investment
Although the process is fairly simple, it involves high-temperature processing and relatively dangerous chemicals, so you might consider renting a space for both safety and efficiency reason. However, if you got a spare room at your house in which you can build enough safety measures, you can start this as a home-based business.

Other necessary investments will be the equipment such as a mixer, boiler, cooler, mixing container, transfer funnels, as well as other tools and equipment. You might also need to invest in a delivery vehicle.

You can safely start the business with around $10,000-$20,000.

3. License and Permit
Depending on your location, you might be required to apply for a zoning permit, as well as other permits before you can engage in the business. However, it might vary depending on your location. Consult your local authority to get a better information regarding the legal requirements of your location.

Getting an insurance might also be a legal necessity. Even when it's not, getting an insurance might protect your business from future accidents and contingencies. Contact your local insurance agent to get the best insurance option for your business.

4. Marketing
Your main target customers will be cosmetic factories and companies, making this business mainly a B2B business. As a B2B business, you will need to approach your potential clients, preferably with a proper business proposal.

If necessary, you might need to hire a good salesperson, if you're not proficient with salesmanship yourself. Getting a good sales team is as essential as maintaining your production efficiency, so consider investing in it.

Earning Potential

Petroleum jelly has an average price of $1.25 per kilogram. Thus, if you can produce and sell 5 tons per month, you can net a $6,250 monthly earning, or $75,000 annually.

Maintaining efficiency, increasing production capacity, and getting new clients are the keys to success in this business.