According to the National Candle Association, U.S. retail candle sales are estimated at around $3.2 billion a year.
With more than 10 000 different scents available in the US as well as all the different shapes and sizes of candles available, it only takes a little creativity to create something uniquely you.
8 easy steps to starting a candle making business
Starting any type of business does require some planning, but the below guide gives a step by step overview on how to start a candle making business.
Step 1 – Define the business
The first step is to define what type of candles the business is going to make and sell. For example: “Candles for You make scented soy wax candles to fragrance the home or to be used in aromatherapy applications”.
Research into current trends in the market will give a good idea of what consumers are looking for.
Step 2 – Decide on a business name
If the business does not have a name yet, this is the perfect time to choose one. Competition in the industry is fierce and a catchy name will stand out.
There are plenty of free name generators online that can be used to generate a unique name for those who are struggling to find something creative or different.
Step 3 – Identify the target market
It is extremely important to know who the candles are going to be sold to. There will be a huge difference in production cost, material and pricing between high-end and low-end products.
Purchase a few candles in the target market identified which will give guidance on product specifications, packaging and price in the specific market.
It’s a good idea to start with a target market in mind, but to also be open to adapt to evolve the target market if required.
Step 4 – How will the candles be sold?
Once the target market has been decided, it will most likely guide the decision of where to sell the product. A business producing high-end candles will not reach their target market through selling at, for example, crafters markets.
Know the audience and where they shop. Selling platforms are endless like selling through the business’s own website, online shops such as Shopify or Etsy, Salons, Boutiques, Retail Outlets or Crafters Markets.
Step 5 – Set up a budget and determine pricing
Any business must know what their expenses are and with candle making it is no different. Set a clear budget as to what the initial costs will be.
Once the costs are established, the selling price can be determined. Do not forget to include labor costs as it will take time to produce each candle.
Step 6 – Write a business plan
Businesses that are successful have strong business plans that outline strategies and objectives.
At this stage it is important to know what capital is needed as the business continues to grow.
Step 7 – Get the necessary insurance, permits and licensing
Most of the above will likely depend on the area the business is operating in. It is always a good idea to get legal advice in order to ensure that the correct documentation is in place.
Starting a new business comes with risk and liability insurance for candle makers can protect your business against potential risk that could have detrimental financial implications.
There is a lot that has to be done like ensuring the business is registered as well as opening a business bank account. An attorney can make this process go smoothly.
Step 8 – Hire employees
Initially the business might start off with just you, but in order to be successful and grow the business would likely have to employ some staff to assist with growing demand. The business would need to obtain an EIN (employee identification number) if it operates as a sole proprietor.
If no additional employees are needed, consider spending money on a professional marketer or delivery company.
Other points to remember
Starting a business can be extremely overwhelming, however with the right tools, information and people it is possible to not feel overwhelmed. The industry is poised for growth, thus it is possible to be successful in the candle making industry.
