Are you looking for a business idea that not only taps into your creative side but could also become the light of hope in challenging times? Starting a candle-making business has its perks—financial stability, more control over finances and resources, plus the ability to create something special with fragrances and designs. By planning ahead, you can gain a competitive advantage and build up pre-sales before officially launching your enterprise; plus, recognize risk factors early on, so they’re addressed sooner rather than later! Keep reading as we look at key points needed to jumpstart success and how to start a candle business.
What is a Candle Making Business?
Jazmin Richards started her homemade candle business, Blk Sunflower, as a stress reliever to provide her son with asthma-friendly candles. Within just 18 months, she turned it into a thriving $300,000 business. In her first week, she made $1500; in her first month, she made $7000. By the second month, Jazmin was making $10,000. As one of the best real-world examples, Jazmin shows that making money selling candles is possible.
Nothing quite sets the atmosphere for a cozy evening like a flickering candle. Whether snuggling up with a good book or hosting an intimate get-together, candles bring warmth and ambiance to any occasion.
But did you know that about 35% of all candle sales in the United States take place during the holiday season? That’s according to the National Candle Association, which also reports that over 1 billion pounds of wax are used annually to make the candles for sale in America. Let’s take a closer look at this industry and how its popularity has grown.
In recent years, there has been an influx of innovations within the candle industry—from scented waxes and unique holders to battery-powered LEDs with flame-like effects. These advances had helped make candles even more popular than ever before and allowed them to appeal to various consumers. It has also opened up various types for people to choose from based on their tastes or preferences.
Choose a Niche
The candle industry is crowded, so finding a niche that sets your business apart is important. Consider specializing in a certain type of candle, such as soy, beeswax, or handmade, artisanal candles. You could also focus on a specific scent or target a particular market, such as wedding favors or corporate gifts.
How to Choose a Name for Your Candle Business
Naming your candle business is an important step in launching your business, and it’s not something to be taken lightly. After all, this name will be the face of your business, so you need to make sure it reflects your brand and captivates potential customers. Here are some tips on how to find the perfect name for your candle business.
Come Up with a List of Ideas
Before narrowing down possible names for your candle business, brainstorm a list of ideas. This list can include words that have personal meaning to you or words that capture the feeling you want customers to have when they think about your candles. You may also want to consider creating word associations by coming up with adjectives and nouns related to candles or scents. Some examples include “candlelight”, “warmth”, “enchantment”, “aroma”, etc.
Do Some Research
Once you have a list of potential names, research each one to make sure it is available and unique enough that people will remember it easily. You can do this by searching online for similar businesses and seeing if any existing trademarks already use the same name or a similar version, which could cause issues if used as yours.
Candle Business Name Ideas
- Scented Dreams
- The Candle Co.
- Flame & Fragrance
- Light & Luxe
- Wick & Wax
- The Scented Studio
- Aromatic Avenue
- Candle Crafters
- Scented Spaces
- The Candle Collective
- The Illuminated Home
- The Candle Bar
- Luxe Light
- The Scented Sanctuary
- Aroma & Ambiance
- The Candle Company
- The Scented Society
- Flame & Scent
- The Aromatic Company
- The Candle Guild
If a domain name is available with the same name as your business (I use GoDaddy), this can give you an edge over competitors since having an online presence is so important these days. Also, check social media sites like Facebook and Instagram for any accounts using the same name or similar ones, as those are usually taken very quickly after being released into the wild.
Keep It Simple
You want potential customers not only to remember your candle business but be able to pronounce its name without difficulty, so try not to get too creative when choosing one for yourself.
Names should also be relatively short—no more than three words—and avoid using numbers or symbols, as those can be confusing and hard for people to remember (or type). Remember that although having an original name is great, sometimes simple is better; look at Apple!
Identify your Target Market
When it comes to identifying your target market, specificity is key. Even if your candles appeal to a wide variety of people, try to narrow down who exactly you are targeting with your product. Are they young professionals? Moms? Home decor enthusiasts? By getting specific about who you’re selling to, you’ll be better able to craft a marketing strategy that speaks directly to them.
Think About Demographics & Psychographics
Once you’ve identified your ideal customer, the next step is understanding their demographics and psychographics. Demographic information includes age, gender, income level, and location. Knowing this information helps inform what language and visuals should be used in your marketing materials and where they should be placed (i.e., online vs. print).
Consider Your Competition
Finally, consider who else may be competing for the same audience as you – in terms of other candle makers specifically and any other businesses that serve similar markets (e.g., home decor stores). This will help inform the unique value proposition you offer so that customers know why they should buy from you instead of someone else.
Layout your Business plan
A well-crafted business plan can help you access financing, attract investors, and secure grants or loans. Let’s take a closer look at what should be included in your candle-making business plan.
Mission Statement & Objectives
Your mission statement should explain your company’s purpose and clearly outline what makes it unique. It should also provide the framework for all future decisions that affect your company’s direction. Once your mission statement is established, create SMART (specific, measurable, attainable, relevant, and time-bound) objectives.
These objectives should align with your mission statement and will serve as actionable steps toward achieving it. For example, if one of your objectives is to reach 500 subscribers by the end of next year, then you’ll know exactly what steps need to be taken to reach that goal (e.g., content marketing campaigns on social media).
Market Analysis & Research
When researching the candle-making industry specifically, consider factors such as customer demographics (age range), buying habits (seasonal trends), market size (current number of companies), and pricing strategies used by competitors in order to determine how best to position yourself in this space.
Preparing Financial Forecasts
The financial projections section of your business plan should include estimated revenue projections based on historical data as well as assumptions about your own candle business and it’s future growth; cost estimates for materials needed, startup costs; pricing strategies, cash flow needs; break-even analysis; projected profit margins; estimated expenses per month/year; funding requirements; etc.
This information will give lenders or investors an indication of how profitable they can expect their investment in your company to be over time. Additionally, having accurate financial projections will make it easier for you to manage resources wisely while you start your candle business.
Establish a Marketing Strategy
If you have decided to start your own homemade candle business, you know the importance of a marketing strategy. This plan will give you an edge over your competitors and help you reach more customers. Here are some tips for creating an effective candle-making business plan.
Choose Your Platforms
Nowadays, many different platforms are available for businesses hoping to create an online presence. Some popular platforms include social media sites like Facebook and Instagram and digital marketplaces like Etsy or Amazon.
Depending on where your target customers are most likely to shop online, choose which platform(s) makes sense for you and focus on those. This will help streamline your efforts and ensure they are targeted at the right audience.
Determine Your Unique Selling Point
Your unique selling point should set your product apart from others on the market. Maybe it’s because all of your candles are made by hand using high-quality ingredients or that they have a longer burning time than other ones on the market.
Whatever it is, ensure it’s communicated in all your marketing materials so customers know why they should choose your product over competitors’ products.
Create your Brand Story
Your candle business needs a brand story to stand out from the competition. A brand story is more than just facts and figures about a company—it’s an emotional connection with potential customers. By crafting a compelling narrative, you can make your candle business stand out and capture customers’ attention. Here’s how to create a unique story for your candle business.
Jazmin, for example, has a brand story.
Start with Why
It all starts with why you are in the candle business in the first place. What inspired you to start a candle business? Was it something that happened in your life or an idea you had? People love stories, so start with why you feel passionate about candles and what drives you to create these products. This will form the foundation of your brand story.
Focus on Details
When creating a unique brand story, the details matter; think about making candles—from sourcing materials to hand-pouring each one—and use those details as part of your narrative. For example, if you use only natural ingredients, let people know! Or if every individual candle is made by hand, include that in your brand story too! The more people know about how your product is made and why it’s special, the more likely they are to be interested in buying from you.
Highlight Your Creativity
Your creative process can also be woven into your brand story. Showcase how you come up with new ideas for scents or designs and how much thought goes into each. This will give potential customers an insight into what makes your candles special and help them connect emotionally with your product line.
Business Structure for Your Candle Company
When you start a candle business, one of the first decisions you’ll need to make is what type of business structure to use. Each structure has different legal and tax implications, so it’s important to understand your options before making a choice.
- Sole proprietorship: simplest and least expensive structure when you start a candle business; no legal formalities are required, all profits belong to one person, and personal liability for debts.
- Partnership: two or more people join together to run a candle business, equal share in profits and losses, personal liability for debts, ownership share automatically transfers to remaining partners upon death or departure
- Limited Liability Company (LLC): combines aspects of partnerships and corporations, protection against personal liability, pass-through taxation, requires more paperwork and annual meetings, elected officers (e.g., president, secretary)
You will likely need to obtain an EIN number for filing taxes as a legal entity. An EIN (Employer Identification Number) is a nine-digit number issued by the IRS for businesses and organizations. It must be included on all tax forms and is used to identify the business for tax purposes.
It’s also important to consider legal matters such as trademarks and copyrights when starting your candle business.
Get Business Insurance
The type of coverage you need will depend on the size of your business and the risks associated with it. Here are some of the key insurances businesses like yours might have.
- General liability insurance: Covers claims from third parties who suffer property damage or bodily injury from doing business with your company, and also protects against libel and slander claims.
- Product liability insurance: Covers claims related to injuries caused by using a product manufactured or sold by your company, especially important for online sales or craft fairs.
- Commercial Property insurance: Protects against losses from damages to physical assets, lost inventory due to theft or vandalism, and data loss from cyber-attacks.
Open a Business Bank Account
Opening a business bank account is the first step to setting up your business and achieving financial success. It can be an intimidating process, but it doesn’t have to be. With the right information and guidance, you can confidently open a business bank account!
- Research your options: Different banks offer different features and services, so it’s important to find one that fits your needs.
- Choose an account type: Most banks offer several types of accounts tailored specifically for businesses, such as checking or savings accounts, debit cards, merchant processing services, and loan products.
- Gather required documents: Have all necessary documents on hand, such as articles of incorporation and tax ID number, to ensure a smooth and quick process when opening an account.
Types of Candles
There are many types of candles that people make and sell in their candle-making businesses, including:
- Scented candles: These candles are made with fragrant essential or synthetic fragrance oils and are popular for their ability to create a pleasant aroma in a room.
- Unscented candles: These are made without added fragrance and are often used for aesthetics or for rituals such as meditation or yoga.
- Pillar candles are cylindrical and free-standing, meaning they don’t require a holder. They can be made in various sizes and have single or multiple wicks.
- Votive candles: These are small and meant to be used in a votive holder. They have a shorter burn time than pillar candles and are often used for ambiance or decoration.
- Jar candles: These are made in a jar and can have single or multiple wicks. They are often made with a lid to help preserve the fragrance and extend the burn time.
- Taper candles are thin and tall and are meant to be used in a taper candle holder. They have a longer burn time than votive candles and are often used for formal dinners or special occasions.
- Tealights: These small candles are made in a metal cup and are often used in tealight holders or oil burners. They have a shorter burn time than other types of candles and are often used for ambiance or fragrance.
- Floating candles: These are made to float on water and are often used for decoration or ambiance in pools, fountains, or other water features.
- Beeswax candles: These are made from bees’ wax and are often considered more environmentally friendly than other types of candles. They have a naturally sweet smell and can burn longer than candles made with other waxes.
- Soy candles: These candles are made from soybean oil and are also considered environmentally friendly. They have a longer burn time than candles made with other waxes and can be made in various scents.
- Palm wax candles: Thes candle wax is made from palm trees and has a unique, crystalline appearance when burned. They are often used for decorative candles and can have a longer burn time than other candles.
- Gel candles: These are made with a clear, jelly-like substance called gel wax, which can hold a higher amount of fragrance than traditional waxes. They can be made in various shapes and sizes and have a longer burn time than other candles.
- Whipped wax candles: These are made with a whipped wax mixture and have a soft, fluffy appearance. They can be scented or unscented and made in various colors and shapes.
- Layered candles: These candles are made with multiple layers of wax in different colors or scents. They can be made in various shapes and sizes, creating a visual and aromatic experience when burned.
- Marbled candles: These luxury candles are made with a marbled effect, created by layering different colors or types of wax. They can be scented or unscented and have a unique, decorative appearance.
- Rolled candles: These candles are made by rolling sheets of wax into a cylindrical shape and can be made in various sizes and colors. They are often made with beeswax or soy wax and can have a natural, rustic appearance.
- Dipped candles are made by dipping a wick into the melted wax and allowing it to harden before repeating the process. They can be made in various colors and sizes and have a rustic, handmade appearance.
- Novelty candles: These candles are made in various shapes and sizes, often with a specific theme or design. They can be scented or unscented and made for decorative or functional purposes.
- Aromatherapy candles: These are made with essential oils and are often used for their therapeutic properties, such as relaxation or stress relief. They can be scented with a single essential oil or a blend of oils and can be made in various shapes and sizes.
- Massage candles: These candles are made with a blend of oils that can massage or moisturize the skin. They are often made with natural ingredients and essential oils and can have a soothing, relaxing effect.
- Travel candles: These are small, portable, and often made in tin or glass containers. They are convenient for use while traveling or in small spaces and can be made in various scents and sizes.
- Reusable candles: These candles are made with a removable core or wick, allowing the candle to be used multiple times. They can be made in various shapes and sizes and can be scented or unscented.
- Scented wax melts: These are made with fragrance oils designed to be used in a wax melt warmer. They are a convenient and easy way to add fragrance to a room and can be made in various scents and shapes.
- Candle gift sets include multiple candles or other candle-related items, such as candle holders or wax melts, and are often packaged in a gift box or bag. They can make for a thoughtful and practical gift for any occasion.
Developing Unique Scents
The right scent can make all the difference when making candles that people will want to buy. Many candle makers have found success by creating custom scents that customers won’t find anywhere else.
For example, you could develop a signature scent inspired by your favorite childhood memories or create seasonal fragrances based on holidays or local events. You could even create a line of candles with scents inspired by different cities around the world. Whatever you choose, make sure it reflects your personality and sets you apart from other businesses in the industry.
The Candle-Making Process
With a few simple ingredients and a bit of patience, making your own homemade candles can be an easy and fun way to express yourself creatively. Let’s take a look at the candle-making process step by step to get started on your own homemade masterpiece.
Gathering Supplies
The first thing you’ll need to do is gather the supplies necessary for making the candle. To begin, you will need wax (soy or paraffin wax candles), wicks with metal tabs attached to them, scent (optional), and glass jars or other containers for the candle. You will also need scissors, a double boiler (or two pots—one large and one small) for melting the wax, a thermometer for measuring the temperature of melted wax, and a cookie sheet for cooling the wax. Once all these supplies have been gathered, it is time to start making the candle!
Melting Wax
Once your supplies are ready, it is time to melt the wax using a double boiler. Place the wax into the upper pot of the double boiler and keep stirring until it reaches 180°F. Be sure not to let it get too hot; otherwise, it will scorch or burn! Once melted, add in scent (if desired) and stir until completely blended into the wax. Once done blending the scent into the wax mixture, remove from the heat source and place aside while preparing the wick and container.
Preparing Container & Wick
1) Before pouring melted wax into the container, attach the wick onto the bottom of the jar/container using a metal tab attached at the bottom of the wick (this is important as the wick needs something heavy enough to stay centered in a container).
2) Once securely attached, use scissors to trim off the excess length of the wick from the top so only about 1/2 inch remains above the surface level when finished pouring melted wax into the container.
3) Now pour the melted wax mixture into the container overtop of the prepared wick until the container is full (make sure not to pour too quickly; otherwise, the molten hot liquid could splash out).
4) After pouring finished product should look like a mini volcano with molten hot liquid in the center covered by a thin layer of cooled hardened wax on a top surface level. Allow the candle to cool undisturbed at room temperature until hardened before moving on to the next step.
5) Trim excess hardened cooled wax around the edges of the jar/container so that the final product looks neat & tidy with no loose pieces around the edges or spills on the sides or outside surface area of the candle jar/container itself.
Incorporating Creative Packaging
When selling candles, presentation is just as important as scent. Customers will be more likely to purchase something if it looks attractive and inviting – so consider how to use packaging to make your candles stand out from the crowd. Consider using colorful labels or ribbons tied around each candle jar or offering customized packaging options for special occasions like weddings and birthdays. However, if you decide to package your products, make sure they look unique and reflect the theme of your brand.
Places to Sell Candles
You have a great opportunity to turn your creative hobby into a profitable business. But where should you start? There are so many places online where you can sell your handmade candles aside from your local craft store. Let’s take a look at some of the best ones.
- Retail stores
- Gift shops
- Online marketplaces (such as Etsy or Amazon)
- Boutiques
- Spas or salons
- Hotels or bed and breakfasts
- Specialty stores (such as home decor or fragrance stores)
- Local farmer’s markets or craft fairs
- Special events or pop-up shops
- Candle Market
- Direct to the consumer through your own website or social media channels
Hire Employees
When hiring employees for your candle-making business, there are a few things to consider. First, determine how big your business needs to be in order to afford additional labor costs. If starting out and still trying to break even financially, it may not make sense right away to hire employees unless absolutely necessary. However, as your company grows and begins turning a profit, investing in employees could be essential to scaling up operations and increasing production capacity.
Beyond finances, consider how comfortable you manage people and delegate tasks accordingly. If having someone work under you isn’t something you’re ready for yet (or ever), then hiring someone else might not be ideal at this time. On the other hand, if growing your team with experienced personnel would bring more value than doing everything yourself, then go for it! It comes down to what works best for you and your business.
Finally, think about how many hours of work are necessary each week in order to complete all tasks related to producing candles from start to finish; accounting for marketing efforts too, if applicable, can also be helpful here as well since these activities take up quite a bit of time too! Depending on the number of hours needed each week — which varies from situation to situation — hiring additional personnel may help lighten some of the load while keeping quality control high and meeting customer demands timely.
Starting a candle-making business can be a rewarding and creative venture. Not only do candles add ambiance and fragrance to a space, but they can also make for a unique and thoughtful gift. From sourcing your supplies and learning about candle making to developing a business strategy and determining your pricing, many factors exist to consider when starting a candle-making business. However, with some planning and dedication, you can turn your love of candle-making into a successful and fulfilling business.
