How to Start an Aromatherapy Business

Part 1 - How to start an Aromatherapy business - Background

Aromatherapy business owners sell their products online and/or from a physical location. Drawn to healing others physically, mentally, and spiritually, many retailers are also licensed aromatherapists, blending and bottling their own products.

You may also be interested in additional unique business ideas.

Our guide is in 3 parts:

• Part 1 - How to start an Aromatherapy business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening an aromatherapy business?

Your initial investment will vary, depending upon the specifics of your business. Most aromatherapists report start-up costs of $10,000 to $30,000.

A few items you’ll need are:

• Bottles, labels, and packaging supplies

• Business cards

• Essential oils, carrier oils, and fillers

• Many aromatherapists that create their own blends choose to grow their own plants. If this is part of your strategy, you’ll need a good deal of chemical free land that’s conducive to growing plants you wish to specialize in

• Distiller and propane source – purchased new, this will set you back approximately $15,000

• Sample products to distribute to potential customers and resellers

• Website – if your focus will be on online sales, your business’ website is not the place to cut corners

• Insurance

If your business plan includes maintaining a storefront, investment in your workspace will increase your expenses. Before committing to a location, conduct research to identify any market saturation, and which areas of town would be most receptive to your product.

Read our aromatherapy business purchasing guide to learn about the materials and equipment you’ll need to start an aromatherapy business, how much to budget, and where to make purchases.

What are the ongoing expenses for an aromatherapy business?

Again, this will depend largely on how you structure your business. When only hosting an online store, your overhead costs are at a minimum. The business can operate out of a home office, making supplies, shipping, website maintenance, and marketing your greatest expenses.

A storefront will significantly increase ongoing expenses, as you’ll need to keep a more complete and diverse inventory. You’ll be facing the typical expenses that come with running a store, including insurance, payroll, and rent.

Once you get into blending your own oils, your supply costs will rise significantly. First impressions are critical, so put a great deal of thought into your product bottling and labeling. Custom labels can cost anywhere from $13 to $89 for 100 sheets, while bottles range from $115 to $238 per carton. The cost of plant material varies, depending on the region it was harvested from and its rarity. If you grow some of your own plant matter, proper land maintenance should be top priority.

Finally, you must invest both time and money each month into marketing your business. If this isn’t your forte, consider hiring a marketing company. Many offer basic packages that start at around $50 per month.

Who is the target market?

While everyone stands to benefit from integrating aromatherapy and essential oils into their daily life, there are some demographics that aren’t open to trying it. While you shouldn’t ignore marketing to men, the bulk of your business will come from open-minded women who are looking for alternatives to Western medicine. As part of your business plan, spend some time conducting market research specific to your area, in order to target more distinct demographics.

How does an aromatherapy business make money?

Your company will generate revenue through the sale of each individual product. Some entrepreneurs opt to host an online store only, while others offer a storefront for their customers to visit. If you offer therapeutic services, most professionals receive a tip, based on a percentage of the total charges.

How much can you charge customers?

Fees are based on services rendered and products sold, and will vary from client to client. An average aromatherapy session can cost anywhere from $45 to $110. Oils range in price from $5 to $165, depending on the ingredients used, the region plant matter originates from, and the method of extraction.

How much profit can an aromatherapy business make?

Successful aromatherapists have published a broad range, in terms of profit. Reports indicate anywhere from $30,000 to over $100,000 annually, depending upon the specifics of their business.

How can you make your business more profitable?

Getting started and making a name for yourself takes time. The following are a few strategies other professionals have implemented to ensure a more profitable business:

• Make a variety of products, such as lotions, soaps, sprays, massage oils, and pet care products

• Sell accompanying products, such as diffusers

• Sell gift baskets

• Teach educational classes – this can be done online or in person, and can cover a variety of topics

• Become an approved school through the National Association for Holistic Aromatherapy, where you can offer certification, advanced graduate-level training, and essential oil seminars for healthcare professionals

• Offer an essential oil bar, where customers can come in, seek advice, and blend their own oils

Day-to-Day and Growth

What happens during a typical day at an aromatherapy business?

The specifics of your day will vary, depending on how you structure your business, and what services you decide to offer. Most days will include the following activities:

• Collecting or purchasing herbs and flowers to be used in your essential oils

• Extracting oils

• Bottling oils

• Crafting various products

• Answering email and phone inquiries from potential customers, and fulfilling online orders

• Educating your customers and assisting them in finding the blend that meets their needs

• Following up with clients to ensure satisfaction and to receive feedback

• Working on your marketing strategy, and networking with others in the community

If you’re considering entering this industry, you have the advantage of being able to work with your passion, day in and day out. However, as with every business, there are also a number of administrative duties to attend to. Until you’re able to hire a trusted team to handle these tasks, you’ll need to take an active role in this aspect of the business as well.

What are some skills and experiences that will help you build a successful aromatherapy business?

Whether you’ve decided to re-sell another company’s product or create your own oils, you’ll need to educate yourself on the intricacies of aromatherapy. The National Association for Holistic Aromatherapy and NY Institute of Aromatherapy offer workshops and classes designed to help you form a relationship with essential oils, enhance plant intelligence, and sharpen your sensory faculties.

While not a skill per se, you should have heightened olfactory senses. This can be learned, but having a natural nose for it is beneficial. You’ll also want to have a deep understanding of the anatomy and physiology of the human body, and how the various scents affect the health and wellness of your clients.

To realize long-term success, sharing your passion through education is key. You should be confident in your teachings and have strong interpersonal skills; it’s important that each customer is able to relate to you on a personal level. While much of your time is spent working with the oils themselves, dedication and business sense are also critical. If this is your first time running your own company, consider signing up for a business class at your local college.

What is the growth potential for an aromatherapy business?

This industry realized significant growth in 2016 and is expected to continue growing through 2022, reaching $11.67 billion in value. As long as you maintain consistently high-quality products and strive to educate the public on the benefits, you stand to exceed your long-term growth goals. In fact, some aromatherapists have found success through the sale of just one essential oil.

What are some insider tips for jump starting an aromatherapy business?

The following are some insider tips from experienced aromatherapists who have chosen to make a career out of their passion:

• Before getting started, consider what you envision for your business and lifestyle. What aspects of aromatherapy are you most passionate about, and how will you carve out a niche for yourself?

• Keep in mind that this type of business can take some time to grow. Be patient.

• Take the time to interact personally with your customers, and educate them without being pushy. Thank them for their business and follow up later.

• Network with other alternative medicine practitioners who complement your work. A reciprocal referral system is a great way to build a solid customer base.

• Blend your own oils!

How and when to build a team

If your products will be sold exclusively online, a team won’t be necessary when first starting out. As your business grows, consider hiring individuals to help manage and package orders.

If a storefront is part of your business plan, you might still be able to work solo initially. When the business is thriving, consider adding employees to your team. Just make sure each employee is knowledgeable, friendly, and relatable to your customers.

Entrepreneurs that plan on making their own oils should still start out as a one-person operation. Once you have the recipes down to a science, take note of the process, ingredients, and measurements. Only then should you consider building a team. Remember, the key is consistent, quality product.

Part 2 - Is an Aromatherapy business the right fit for you?

Part 3 - Action plan to launch your Aromatherapy business in 90 days