If making candles is your favorite hobby, what is to stop you from turning it into a lucrative business? In 2018, the scented candle economy was valued at $310.7 million in the United States. That number is only expected to grow between 2019 and 2025.
Still, starting a business takes careful planning. Keep reading for our thorough guide on how to start a candle business.
Make a Business Plan
Every new business should start out with some kind of business plan. The best of these include budget estimates and brand building information.
It’s very important to define your niche from the outset, and a business plan is a good place to do that. Why will your candles stand out from the rest? Maybe they are more upscale, natural, quirky, or fun than others.
Whatever it is, make sure you know what will make your candles unique and marketable.
Prepare For Your Initial Investment
A lot of businesses require high start-up costs. Fortunately, you can begin your candle company with a low initial investment! Here are some of the things you will have to budget for:
- Marketing efforts
If you make connections with wholesale vendors, you can keep your costs on the low side.
If you are still having trouble coming up with the funds, you have some options. You can look for private investors or try to get a small business loan. A lot of small businesses also have success crowdsourcing for funding.
Register Your Business
You should register your business to make it a legal entity. Many small, start-up businesses choose to become an LLC.
LLC stands for “limited liability company,” but you can also choose a sole proprietorship. Click here to learn about the difference and decide which one is right for you.
Becoming a legally recognized business also means you will need to pay taxes. Not sure what that will look like for your candle-making business? Here is the IRS guide on small business taxes.
Set Up a Workspace
You need to set up a designated area for the creation of your product. When it comes to candles, you will need ample space for storing dry materials and letting candles set.
You will also need access to electricity and ventilation so that you can run your broiler (or anything else you are using to melt wax for your candles.)
Market Your Product
If you have ever bought something, you have the tools you need to market your business.
But first, decide where you want to sell your candles. Many start-up businesses begin by selling candles either online or in other peoples’ shops. A lot of people do both!
If you can get other stores to sell your candles, they may do some of the marketing for you.
Online marketing can be completely free. But do your research on how to have an effective social media presence. If you can stay relevant on social media, you can convert new customers and increase your sales.
How to Start a Candle Business
If you have been wondering how to start a candle business, consider this your green light. Running your own candle enterprise is a great way to turn your favorite hobby into a lucrative business. If you are interested in learning more about starting your own business, contact us today to sign up for our educational classes for start-ups!