How to Start a Diaper Business. When it comes to moms and dads of infants and toddlers, there's nothing more crucial than diapers. For some parents, cloth diapers are the best way to go. They save the environment and money because they're washed and reused. This is definitely a business that will always be needed as long as people continue to have babies. Follow these steps to start a diaper business.

Step 1.

Determine a location in which you want to market your diaper business. This area should have a large amount of infants and toddlers.

Step 2.

Decide if you are going to provide a delivery service. If you are, you need to figure out your delivery boundaries and if you will charge for it. If you deliver to a customer that is located far away, you will quickly lose your profit in gas.

Step 3.

Learn if you will need to apply for an Employer Identification Number. You will need this if you are going to hire employees or operate your diaper business as a corporation or partnership. If you need to apply for an EIN log on to the IRS website and click on "How to apply for an EIN."

Step 4.

Purchase your cloth diapers and safety pins. You can either purchase them in bulk or sew your own. and offer wholesale pricing.

Step 5.

Buy laundry detergent and stain remover in bulk. Costco and Sam's club sale these products in bulk at reasonable prices. Make sure to buy perfume and dye free detergent as baby's bottoms are very sensitive.

Step 6.

Create your business forms and contracts. It is very important to have these looked over by your lawyer. Although you don't usually predict problems there is always the possibility. Your contract is what can protect you in court.

Step 7.

Acquire insurance on your business. If for some reason you run into a situation in which you are sued, this will protect your business from bankruptcy. Make sure that you also get business insurance on your delivery vehicle.