We all like our homes to smell nice and to feel cozy. What better way to make this happen than by lighting some candles. Not only are they a reasonable indulgence, but they also make great gifts and literally brighten any room.
If you’re considering starting a business and are hooked in to wicks, soy blends, and mastering the right scent, then starting a candle business could also be the right fit you. Keep reading to find out the way to start a candle business.
How to start a candle business in 7 steps
Starting a candle business may be a lot of labor , but also can be very rewarding. Before you let your excitement take the lead, pause and consider following some of these steps first. To give your candle business the simplest shot at success, you’ll got to get all of your financial, legal, and marketing ducks during a row.
Step 1: Perfect your craft
When a candle is good, it can help you destress, add a decorative flair, or set the mood. But when a candle is bad, it can be a disaster. A candle can smell too sweet. Too floral. Too smoky. Or, the scent can be so weak it winds up smelling like nothing at all. Essentially, it’s easy to step too far in one direction and make a candle that no one wants to burn. Before you undergo the method of starting a candle business, you’ll want to brush abreast of the fundamentals of the way to make an honest candle and develop a few signature scents. You’ll got to master the way to ensure an honest burn time, the way to make a scent that permeates an area , and the way to make a scent that folks will love.
You’ll also want to define what is going to make your candle line stand out. Will each candle be inspired by a special exotic location? Will you employ special glassware to deal with your candles? Will you've got witty names that make your candles perfect for gifting? A good scent and an affordable price point will get you far in the candle game, but you’ll also need to make sure there is a way for your brand to face call at a really saturated market.
Step 2: Create a business plan
Making candles is a creative process. Not to mention fun. Which is why it's going to be hard to tear yourself faraway from your experimenting to write down a business plan. But writing a business plan is a creative endeavor too. And a little bit analytical. So put each side of your brain to figure , because the method of making a business plan will prove invaluable to you throughout the lifetime of your business.
A good business plan will contain several sections that can help keep your business on the right path as well as show your value to any potential investors or lenders. Ideally, you’ll do that step before starting a business, but it’s never too late to whip one up. Having a business plan will make the method of growing your business such a lot easier and may assist you introduce the important details of your candle business to others. If you’re nervous about creating a business plan from scratch, think about using a business plan template or business plan software which will assist you through the method .
Choose a business name
If you haven’t already chosen your business name, doing so while you’re in the process of pulling together your business plan is a good idea. Try to come up with a catchy business name which will stay in customers’ minds while also describing what quite business you run. Of course, you’ll want to countercheck that your chosen name is really available before moving forward with it. Confirm your required name’s availability together with your secretary of state’s website to ascertain if your chosen business name is currently in use. Doing an easy Google and trademark search also can be helpful. If your desired name is free and clear, make sure you reserve your domain name and social media handles before someone else grabs them.
Choose a business entity
Another advantage of writing a business plan is that it'll encourage you to settle on a legal structure for your business. Choosing the proper business entity is extremely important and a choice that ought to not be taken lightly. A few common sorts of business entities are sole proprietorship, general partnership, indebtedness company (LLC), and corporation.
If you’re struggling to make a decision what sort of business structure you ought to choose, consulting a business attorney or tax expert can help. The extra expense may save you a lot of stress down the line, as the type of business structure you choose will affect your taxes, risk level, and other important factors. After you’ve chosen your business entity, you'll register your candle business with the required federal and state agencies.
Define your products and services
Are you planning on selling candles? How about essential oils or reed diffusers? Will you take custom candle orders? You’ll got to define exactly what sorts of products or services your business will offer. Ask yourself the following questions in order to better understand what your products and services will be.
What type of scent-based products will you sell?
• What will you charge for them?
• Where will you purchase your candle supplies?
• How much will these supplies cost?
• How much will production cost?
Now that you have a business plan, you can use it moving forward to help guide your candle business.
Step 3: Get the right licenses, permits, and insurance
This may not be the foremost fun step within the road to starting a candle business, but it's a crucial one. When you start a business, you’ll have to ensure you’re obtaining the proper licenses, permits, and insurance required by your local and federal government. These requirements will vary supported your location, business type, and chosen business structure. Chances are, you’ll require multiple business licenses at the state, federal, and local level. If you need help getting started, the SBA is a great resource, as is your local chamber of commerce.
Does your business require employees to assist it run? Then you’ll got to obtain your employer number (EIN), which is required for tax purposes. Even if you don’t plan on hiring soon, there are some pretty valuable benefits of getting an EIN you ought to believe .
Something else worth looking into is business insurance, especially if you’ve hired employees. In that case, you may need to carry workers compensation, unemployment, or disability insurance. General liability and commercial property insurance can also be necessary. You should ask a business lawyer to form sure you've got the proper coverage for your business—especially once you consider the very fact that as an owner of a candle business, you’ll be working with flammable materials. Do your due diligence and research your local fire codes and speak together with your insurance representative about your fire coverage needs.
Step 4: Decide where to sell your goods
Where are you planning to sell your candles? How about online, during a boutique, or at your local farmers market? You can always open your own storefront, but maybe you want to start small at first and sell your candles to local boutique owners. Consider all the choices available to you and don’t be afraid to start out small while you build brand loyalty and obtain customer feedback.
If you would like to sell online, but aren’t able to launch your own ecommerce website, you'll always sell your candles on a digital marketplace like Amazon or Etsy. There are countless helpful ecommerce platforms you'll choose between , so take some time investigating which is that the best fit your business.
Step 5: Find small business funding
It’s a cliché, but sometimes it takes money to form money, and starting a candle business is not any exception. In order to buy supplies, marketing, production, insurance, legal council, and more, you’ll may have some kind of business funding. Start by considering the following funding options.
Business lines of credit: A more flexible form of credit than a standard business loan, a business line of credit provides you with a set amount of money that you can choose to draw from only when you need it.
• Business credit cards: Newer business owners may be better off with a business credit card, as they require less credit history than a loan. Generally, you can find a 0% intro APR credit card, which is like having an interest-free loan if you pay off your balance before the introductory offer is over and a variable APR sets in.
• Equipment financing: If your business requires expensive equipment, then equipment financing may be your best option. Generally for this sort of financing, a lender loans money specifically to get equipment. They then use this equipment as collateral for the loan.
• Startup funding: A brand-new business owner should consider startup financing options such as SBA microloans or a business grant. Crowdfunding has also become a well-liked option for straightforward startup funding.
Once you obtain your funding or begin to rack up expenses or earn income, you ought to take steps to stay your business and private finances break away one another . Then, consider finding an accounting software program to manage your business’s financials.
Step 6: Find and manage candle supplies
At first, you may be able to just pop over to your local craft supply store to get some wax and scents for your candles. But once your business begins to grow, you’ll save tons of cash by buying supplies in bulk from a wholesale supplier. You’ll want to start sourcing affordable supplies straight away so you can test for quality and find the right supplier for you.
Some candle making supplies you would possibly need are:
Wax such as paraffin, gel, soy, beeswax, or another type
• Containers for candles
• Fragrances such as essential oils
• Coloring agents
• Shipping and packaging supplies
Before you place any large orders, you ought to plan out what proportion inventory you'll need and the way you'll manage it. Not only will doing so make finding suppliers easier, but you can begin to form a reliable inventory system. You may want to think about using a listing management app to arrange the comings and goings of your candle making supplies.
Step 7: Start marketing your candles
Once you’ve chosen your business name and began to develop your brand, you'll market your business. Word of mouth is ideal, but you can’t rely on it. This is why having a well thought out marketing plan will come in handy. You’ll want to start by thinking of what your candle’s selling points are. Do they last longer than others? Smell stronger? Are they made from more sustainable ingredients? Identify what your main selling point is and how you can best present that message to potential customers.
Social media may be a free, fun, and straightforward place to start out . You might want to spot which channels would be best for your business and start to create a presence on them. Email marketing is additionally a reasonable option worth considering. The best part about social media and email marketing is that your customers prefer to check in for your advertisements. You have a captive audience, so cash in of that fact.