It’s an excellent idea to start a candle-making company. According to data, candles are used in approximately 80% of all homes in the United States.
Humans have used candles for about 5,000 years. Is it time for you to start your own candle-making business?
Why Should You Start a Candle Company?
Candle manufacturing is one of those businesses that may be started from home, in a spare room or basement. Perhaps you’ve produced a candle or two yourself and wondered whether you might earn money selling them.
Here are some compelling reasons to join the candle-making fraternity:
You don’t need a lot of money to get started.
There is already a market.
You are in charge of your schedule.
You aren’t constrained by region when it comes to where you can sell.
The Candle Making Business
For small company candle enterprises, joining the National Candle Association is a requirement if you’re serious about going into candle manufacture.
You’ll have access to a wealth of information, including professional candle-making advice, via the NCA. The NCA conducts candle research, which we know that 80 per cent of US families use candles.
The Christmas season accounts for the bulk of candle sales (35 per cent of total yearly sales). Candles are most likely to be presented as presents and utilised in holiday decorations at this time.
Candles are available from speciality/gift shops, department or home goods stores, and mass merchandisers like Amazon and Etsy.
The move away from having your own candle business is the largest trend in the industry. Additionally, candle manufacturing is still a lucrative home-based enterprise.
How Much Does It Cost to Start a Candle-Making Company?
The average cost of starting a candle company is roughly $44,000, ranging from $9,500 to $78,000. Candle manufacturing does not significantly impact your money as a small company starter.
The majority is in leased or bought premises, such as a candle-making facility and a retail location. Depending on local real estate costs, rent for such premises might run from $1,000 to $7,000 per month.
Among the other expenses are:
$500 to $5,000 in production equipment
$3,000 for supplies (wax, moulds, and wicks).
Fees for insurance and legal representation range from $500 to $3,500.
Business permits and licences range from $50 to $700.
Business software costs between $50 and $500.
Insurance for small businesses ranges from $500 to $2,000.
New company owners often start small and estimate expenditures on the low end in the candle industry.
How to Begin a Candle-Making Company
So you’ve decided to sell candles. The important aspects of your business plan template are included in this step-by-step instruction.
We all have our favourite candle kinds and sizes, but if you’re beginning your own candle company, you need to think about what your clients desire.
The first stage in the candle-making process is to figure out where you can sell your candles — your market.
1. Choose the kind of candles you’d want to make and sell.
The most popular trend in candle buying is the growing popularity of outdoor candles for usage in the yard and on the patio. This is a trend to keep an eye on.
As part of your marketing strategy and company plan, spend a lot of time thinking about your target market and how you’ll carve out your niche.
Consumers said the aroma of a candle is the most important factor in their decision. Scented candles dominate the market. There are an estimated 10,000 distinct candle smells available.
Consumers choose candles based on form and size after aroma.
Here are several more varieties to whet your appetite:
Vegan candles
Candles made with soy wax
Candles of high quality
Wax is melted.
2. Decide on a business name
The mass-produced candle business is very competitive.
Your handmade candle company must stand out in this competitive industry. When creating candles, your company name should reflect what you’re making.
3. Create Your Candles
Tapers? Votives? Pillars? Tealights?
Floating? Container? Liturgical? Outdoor?
Is it your birthday or a vacation?
Of course, all of those options are already available in standard form. Your candle-making company should be – well, out of the ordinary.
This is your opportunity to put your creativity and design talents to the test. Also, look at other computer software tools that might assist you with design.
4. Choose a location to sell your candles.
There are several locations where candle entrepreneurs may offer their wares. Your location may have a role. If you live in a remote location, for example, internet sales maybe your best option.
Sell on the internet.
Etsy is the most popular online store for handcrafted goods. You may join and sell products there, as well as provide a link back to your website.
Candles may also be sold online via Amazon, eBay, and Facebook Marketplace.
Your Online Store
You may establish an E-Commerce website on your own. To sell your own company in this manner, you’ll need to devote a lot of time and effort to marketing.
Packaging and delivery expenses are a major factor, just as they are when selling online. Candles may be heavy, and if they come in breakable shapes, they must be securely wrapped.
Create Your Candle Shop
Owning a retail or industrial facility may significantly increase your operational expenses. You’ll have rent and utility costs to contend with. During business hours, you or an employee must also be present.
However, if you can situate in a strategic location where consumers are likely to be looking for comparable things, it may be a worthwhile enterprise.
Other Stores Where You Can Sell Your Candles
Rather than going online, you may consider local retailers, particularly a local craft store. If you’re lucky enough to get into one of those shops, your candles will be exhibited among other handcrafted goods. Consumers looking for handcrafted, one-of-a-kind things flock to local craft businesses.
Gift stores are another option for selling your candles. Remember that buyers are shopping for presents, and during the Christmas season, 35 per cent of candles are sold as gifts.
Retail shops may be profitable venues to sell your candles, but shelf space is often more difficult to come by. Last-minute presents are often seen at the checkout section of a local grocery shop.
Craft Shows in Your Neighborhood
People travel to local artisan fairs and exhibits in search of one-of-a-kind items. Many candle makers have found that this is a terrific way to start.
You’ll be selling and promoting at the same time if you include a bag and a business card with information about your small company. And that’s a certain method to get consumers to come back.
Isn’t it possible to go to a flea market? Maybe. But, more often than not, customers are more concerned with finding a deal than with obtaining a one-of-a-kind item. Nonetheless, flea markets provide options for marketing and the opportunity to meet prospective clients.
5. Come up with a business plan
A robust business strategy is essential for a successful company. Your strategy and goals for addressing your handmade business ideas should be included in your plan.
Your original candle line should be filled out before you draught your business strategy. The equipment you’ll need to start a candle company is defined by your product line, which is an important aspect of your business structure.
You’ll also need to lay down your business’s projected financials. This should cover both the money you’ll need to get started with your first product line and the money you’ll need as your company expands.
6. Locate a Manufacturing Facility
The production facility may be your basement if you’re fortunate. Check your local zoning restrictions to be sure you’re allowed to start a home-based company. Since launching a candle-making company, neighbours have had little to no influence.
Because the candles include combustible components (wicks), you’ll need to verify your local zoning rules to make sure they’re legal.
7. Organize Your Workspace Properly
Because you’ll be dealing with melted candle wax, organising your workspace is crucial.
The wax is heated in metal kettles and filtered before adding fragrances, aroma oils, and/or colours.
The molten wax is cooled before being placed into a moulding table above the moulds. When you have “continuous” moulding equipment and create candles in batches, this is how it works. You may alternatively pour each mould by hand, one at a time.
Preheating the moulds will ensure that the wax flows evenly into them.
After the moulds have been filled, fill the jacket surrounding the moulds with cold water.
8. Legally establish your company
The enjoyable, creative aspect is making candles, but you can’t ignore the paperwork.
Following the National Candle Association’s guidelines and including a fire safety warning label is one of the most critical things to accomplish. Three guidelines are included on the label: burn within sight, stay away from flammable objects, and stay away from youngsters.
Your attorney will want the fire safety warning label since a corporate entity is also legal.
a legal entity
According to market research, most individuals who start a candle-making business choose to create a limited liability company (LLC). That’s because your assets are secured if anything goes wrong when people use your product, such as a fire or an allergic response to a perfume.
Permits, insurance, and business licences
You’ll need liability insurance for your company and product liability insurance for your products. Even if you’re operating as an LLC, you’ll require product liability insurance if you create a product. If your goods cause bodily hurt or damage to another person, there is an additional layer of protection for you.
If you run a company out of your house, you may need to add a unique rider to your current homeowner’s insurance policy. Commercial property insurance is required if your company is distinct from your home.
Bank Account for a Company
You’ll need to open a separate bank account for your company. That is the simplest method for keeping track of spending, profit, and loss. It’s also a must when tax season arrives.
Small Business Research Funding (No. 9)
When it comes to finding capital for company ideas, the Small Business Association is unbeatable (SBA). They have professionals that can direct you to the greatest financing and grant opportunities (women-owned businesses, for example).
The SBA has a few other financing ideas:
Business Credit Cards: Business credit cards are unsecured revolving lines of credit. It can not only help you keep your personal and company costs separate, but it can also help you establish your business credit file, provide you access to cash and credit, and provide you with various payment alternatives.
Microloans: Obtaining a microloan is simpler and quicker than obtaining a typical company loan. The funds are generally under $50,000 and are utilised for various things such as equipment purchases, inventories, supplies, and working capital. Throughout the nation, the SBA works with certified intermediary lenders.
Crowdfunding: Crowdfunding is one of the quickest methods to cast a wide net for recruiting investors to a company.
Vendor Credit: Vendor credit is the most common source of funding for businesses, and it is still the most popular alternative to personal and small company loans. You may get short-term finance from suppliers with simple restrictions as a startup. It’s a priceless solution that allows a company to buy the things and services it needs now while deferring payments till later (net 30 accounts).
Personal Company Loan — Securing a standard business loan, particularly for a startup, maybe a time-consuming and uphill struggle. According to real-world data, only 34% of small firms obtained conventional bank finance, compared to 75% of bigger enterprises.
10. Obtain all of the necessary equipment
To manufacture the candles, you’ll need the following supplies: Wax melting pots, containers (tins and jars), moulds, packing materials, and measurement equipment are all items that may be used to melt the wax (such as thermometers and scales).
Wax (paraffin, beeswax, palm wax), wicks, colours, and fragrancing are all needed. It’s critical to have a reliable supplier connection.
You’ll need a marketing strategy in place.
11. Hire workers
One of the candle-making business ideas is to start by creating the candles yourself, without hiring anybody.
Consider employing a professional marketer instead of enlisting staff to make the candles. Then, when the marketer assists you in growing your firm, bring on the staff. Part-time personnel from the outside, such as delivery persons and merchandizers, may also be added.
If you’re an alone owner, you’ll require an Employer Identification Number.
12. Promote Your Company
If you decide to conduct your marketing, social media networks are good to start. You’ll include a link to your website, where you’ve introduced the company with a “brand narrative” about how and why it began.
If you attend local craft exhibitions, make a point of capturing leads and converting them into new business.
Remember that the Christmas season accounts for 35% of candle sales, so make sure you have enough inventory and chances to sell at that period.
13. Increase candle sales and enjoy the fruits of your labour.
In our step-by-step guide for your candle manufacturing company, here’s one of the finest pieces of advice for a business owner:
Obtain the names and contact information for the club advisors and sports team boosters at the schools in your region. Participate in their fundraisers by selling your candles at a reduced price. Perhaps you’ll provide candles in the form of school mugs.
You’ll package each candle separately and attach a business card. You should mention that you engage in fundraisers on your website.
What steps should I take to make my candle-making company a success?
Know who you’re trying to reach. You’ll find your niche somewhere in the mainstream market for candles.
Prepare a pitch that you’ll utilise while expanding into new markets.
Come up with an excellent brand name with your friends and family to assist you in developing your identity.
Begin with a limited product range.
Choose your selling location carefully.
Is candle-making a viable business?
After you’ve acquired the essentials, such as melting pots and moulds, the rest of the materials aren’t too pricey. In other words, candles have a healthy profit margin.
Limit your product line to a specific amount of fragrances and kinds of moulds to keep prices steady early on. Try to keep your shipping and delivery expenditures to a minimum.
How much money can a candle company bring in?
According to statistics, an entrepreneur should make at least $22,000 at the entry-level — a modest product line start-up. Starting a candle producing company is between $22,000 and $34,000.
For a lone owner, they are the figures. If you want to open a physical shop or a manufacturing facility and recruit staff, your costs will be greater.
Is candle manufacturing a viable home business opportunity?
It’s a fantastic home-based company. There are modest startup expenses, and the system takes up little space.
Is it necessary to have insurance while selling candles?
Use the National Candle Association’s fire safety label as a guide.
Your assets will be secured if you choose to create an LLC (which you may do even if you’re a single owner).
Product liability insurance is required. Product liability insurance will cover you if someone sues you over a product you made, sold, or provided. It may also cover the expenses of your legal defence in the event of a claim.
I’m looking for a place to sell my handcrafted candles.
Established platforms such as Etsy, Amazon, eBay, and Facebook Marketplace allow you to sell handcrafted candles online.
You may sell at various businesses, including craft stores, home décor stores, and even supermarket stores.
You may make money by selling on your e-commerce website.
At local craft fairs and other community events, you may hire a booth and sell your wares.
Image: Depositphotos
This article, “How to Start a Candle Business” was first published on Small Business Trends
