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How To Start A Candle Business
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Starting A Candle Business: 7 Things To Know
Turn Scents Into Dollars: How To Start A Candle-Making Business
Our business idea today is perfect for anyone who is trying to find their next big business opportunity – homemade candles!
It’s a skill you’ll find useful even for aspiring business owners who are hesitant to DIY if you are trying to create a product that will be both practical and hot – literally and figuratively.
We’ll show you in this guide how you can make money online by making candles and start a candle business.
Your journey in starting a candle making business begins here!
We’re going to talk about how to start a candle-making business to see if it really is the best business model for you.
Towards the end of this article we’ll answer some of the most frequently asked questions on how to start a candle-making business…
But most importantly, we’ll show you the exact system we used to build my own business to over $40,000 a month in mostly passive income.
Table of Contents
Why Make And Sell Homemade Candles?
According to MarketWatch, homemade candles have grown into a major home decor item. By 2026, the industry is projected to reach $5 billion. In recent years, candle use in commercial applications has grown rapidly, with scented candles being used at massage spas and restaurants to create aromatic environments.
National Candle Association data reveals that consumers also buy candles for home decor and aromatherapy for stress reduction and relaxation. Looking at Google Trends, we can see that homemade candles are of global interest quite consistently:
Candle Businesses: Google Trends Interest By Region
There is a lot of interest in various kinds of candles–from scented to soy, and everything in between–as evidenced by Google Trends. The candle market is not only strong, but also diverse.
This knowledge is a powerful insight for an aspiring candle business owner/ founder deciding what type of products to build to resonate with their potential customers.
Besides its popularity, candles also provide small business owners with several benefits, including:
- Low-cost entry. Even though some homemade candle varieties require more expensive supplies, most candle makers can start out with very little money.
- Selling anywhere is easy. Are you interested in taking part in craft fairs and local markets? Because homemade candles travel well, they are a good choice for both online and offline sales.
- Scalable. Whatever your level of DIY expertise, the basic candle recipe is simple to follow.
- Easily customizable. Candles come in a variety of types so you can easily customize your products and differ from your direct competitors.
Steps On How To Start A Candle Business
If you want to start a candle making business, the following steps will help you get started:
1. Do Market Research.
Marketing efforts are directed toward your target market. These are the buyers most likely to buy your products and become customers. Generally, the candle industry categorizes target markets as follows:
- Prestige. The candle market is experiencing a boom in luxury candles. Prices vary depending on the product. Prestige candles generally sell for 30 to 80 dollars, but some are as expensive as $185, such as the Louis Vuitton perfumed scented candles. Brand storytelling is a hallmark of Prestige candles, which are known for their premium packaging and fragrances.
- Mid-Market. The candles in this mid-tier category appeal to a wide audience. They can be found at retail outlets such as Target. Candles at the mid-market generally have unique scenes such as rosewater, basil, or grapefruit, and are around $10 each.
- Mass Market. The candles in this product line are the cheapest on the market. Yankee Candle and Bed Bath and Beyond dominate this segment. Standard scents include vanilla and ocean breeze, and each candle costs between $5 and $8.
Market research is essential for sourcing materials, brand building, and packaging. When you have a segment in mind, you can decide which type of candle will work best for that segment.
2. Build Your Brand.
Building a brand is the next step in launching a candle making business. As you build your brand, your marketing efforts are influenced, and more customer-centric products can be developed.
Having a good brand is especially important for candle businesses. The industry has grown so much in the last decade that some people find it hard to get started.
Consider these three steps for standing out in the oversaturated candle market:
Unique And Interesting Fragrance Blends
Interesting fragrances are one way to set yourself apart from the competition. When you create a new blend, you automatically make yourself known to the market.
Instead of offering standard floral and woodsy smells, try more complex, sophisticated smells consumers cannot find anywhere else: aromas that evoke a sense of comfort, recall, or curiosity.
Brand Story
Connecting with buyers is easier with a brand story. Essentially, it is the story that shapes and represents your brand. It lays the foundation for your business’ mission, message, and voice.
Candle brands are especially characterized by story-telling, personal elements, and honesty. This should cause people to feel something, which then gets them to act – whether they sign up, make a purchase, donate, etc.
You can find your story by asking yourself these questions:
- Why do I want to make candles?
- Who are theses candles for?
- How would I like to influence them?
- In what ways will this impact the world?
Visual Identity
The visual identity of your business (including the logo, photography, website, social media, and packaging directly influences how people view your candle business.
You must pay close attention to the aesthetics of your candle brand. Your candles will serve as both a scent and as a décor accessory, so it is essential to design products that match your audience’s tastes.
3. Create A Candle Business Name.
Your candle business is doing well at this point. There are probably a few names you’ve come up with so far, and now is the time to pick one.
Think short and simple when coming up with candle business name ideas. Thus, buyers will be able to remember and pronounce it easily. A name that is hard to remember will prevent you from getting free word-of-mouth marketing.
4. Write A Business Plan.
The success of a candle business is based on a business plan. This helps establish your strategy, determine your issues, and identify your resources before launching it.
Consider these questions:
- What is the ultimate objective of my brand?
- Do I have any direct competitors?
- Are you interested in being sold in retail stores like Target or Nordstrom?
- Do I want to sell my products directly to my customers through an ecommerce store?
In the case of starting a candle-making business from home or on a small scale, a one-page business plan will do if you do not need funding. There are just a few basics you need to consider:
- Target Market
- Startup Costs & Recurring Costs
- Financial Analysis
- Choosing the right name for your candle-making business
5. Choose A Business Structure.
As a small business owner, choosing the right business structure for your candle making business is extremely important. There are many options for forming a company depending on which state you’re located. You can form a sole proprietorship for less if you live in the United States, for example, but a limited liability company or LLC offers certain benefits at a higher cost.
Open a business bank account as soon as you receive the required documents. Talk to an insurance agent and choose the best coverage for you.
6. Register For Taxes.
You will have to register for several state and federal taxes before you can open your candle business.
Tax registration requires that you obtain an Employer Identification Number, or EIN. The process is really easy and free!
7. Make Candles To Sell.
You can make a wide variety of candles in your own kitchen. You are going to learn how to make a simple soy candle in this section. Using the same ingredients, you can create your own recipe by tweaking them slightly.
Gather Your Materials.
You will need the following ingredients to make this homemade soy candle recipe:
- Soy wax
- Wicks (preferably cotton)
- Super glue
- Essential oil of your choice
- Spatula
- Double boiler
- Thermometer
- Mason jar
- Pen or pencil
Although many of these items are likely already in your house, you can easily obtain the rest without spending a fortune. You can find soy wax in bulk on sites like AliExpress or Bulk Apothecary for around $4 per pound.
Those who need to source jars or other glass containers can find bulk-buying options on AliExpress or at thrift shops or dollar stores.
You can buy essential oils from your local craft store, on Etsy or on Amazon. The remaining ingredients are easily found in most grocery stores.
Prep Your Wax And Container.
Next, prepare your candle wax materials. Place the soy wax in your double boiler and melt it. Pour water into the bottom pot and add soy wax to the top. Turn your burner to medium heat and break up any chunks using a spatula as you stir the wax.
As the wax melts, glue the end of the wick to the bottom of the glass container. This will prevent the wick from moving when you pour the wax later on.
Customize Your Candle Mixture.
After your wax has melted, stir in your preferred essential oil. You should use 1 ounce of essential oil per pound of wax. You can add chunks of non-toxic crayons to your candle wax to change its color.
Once you have melted and mixed your ingredients, allow the mixture to cool to 130–140 degrees Fahrenheit. Be sure that the mixture reaches the correct temperature by using a thermometer.
Prep Your Pour.
You need to pour your wax mixture into the jar once the mixture has cooled to the proper temperature. Then, with one hand hold the wick upright, and with the other, pour the mixture from the pan. Three quarters of the jar should be filled with the hot wax mixture.
Make sure that your wick is upright by tying the end to a pen and placing it across the jar’s opening.
Finish Your Candle.
Wait for the wax to firm up before you do the final pour. The wax around the wick may show a small sinkhole. This is perfectly normal. Here’s where we fix the problem.
Pour the remaining quarter of the wax mixture into the jar. Wait until all of the wax has set. Cut off the excess wick with scissors as soon as the wax has hardened. Your candle is now ready to burn!
8. Build Your Online Store.
So, now that you’ve got your candles ready to sell, where should you take them? An excellent place to start is with your own ecommerce store.
Putting your candles on sites like Amazon or eBay does not sound as daunting as creating an online store. But these marketplaces eat up your profits and deny your brand flexibility. Having an online store not only makes you more money in the long run, but it also serves as your brand’s digital home.
To get started with an online store, Shopify is your best option. You can build an ecommerce website without any coding or huge budget.
By paying a small monthly fee of just $29 per month, you get the following:
- An attractive storefront
- SSL certifications
- Fast servers
- Cart abandonment recovery
- And many other sales and marketing training tools for beginners.
Even better, you also get to access the Shopify App Store, which provides you with more than 4,000 plugins to enhance your store and boost sales.
9. Create A Marketing Plan For Your Candle Business.
Now that you know how to make soy candles or any other homemade candles, your next important step involves creating a marketing plan.
Starting a candle business does not only involve the making of the candles, but a lot of effort goes into marketing if it should be success
Online
Like many B2C retailers, candles are one of the most profitable products sold online. Using digital platforms such as social media and your own ecommerce site, you can connect with customers around the globe.
While not all digital platforms will work for every entrepreneur, there are some sure places entrepreneurs can try to start. There are many channels merchants for their fledgeling business can explore, but these are a few good options for online marketing:
- Snapchat
- Giveaways and contests
- Email Marketing
Offline
Even though selling online is a viable option for merchants, think about trying IRL too.
These homemade candles are portable and easy to carry, so they’re perfect for selling on the go. It’s perfect for showcasing at craft shows and pop-up shops where you can get feedback directly from customers who are looking for home decor items.
Still not convinced to sell in person?
Other advantages of going in-person for sales for your candle business include:
- Receiving direct feedback
- Finding wholesalers
- Building an online following and email list
- Creating connections and getting inspired
Starting Your Candle Business: Final Words
By now, you should have a good understanding of how to start your own candle business and become a legit candle maker.
Making and selling your own candles can be an easy way to earn extra income. With the tools and knowledge above, you can now start your own DIY candle business.
If you are someone who is crafty and creative and are looking for a way to express yourself while making money off of it, then this guide on how to start a candle business should help you get started.
What Is Our #1 Recommendation For Making Money In 2021?
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What we mean is…
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Now, we know you probably have tons of questions…
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