How to Start a Candle Making Business – Complete Guide

Do you want to start a candle-making business and earn profits? Find in this article a step-by-step guide on starting a successful candle-making business with a low budget. A small-scale candle manufacturing business can be a great way for entrepreneurs to earn extra money or even a full-time income.

What is a Candle Making Business?

A Candle Making Business involves the production and sale of candles for various purposes. It includes decorative, aromatic, religious, and functional uses. In this business, individuals create candles using wax, wicks, and fragrance oils and may customize them based on customer preferences, such as size, shape, color, and scent.

The candles produced can be sold directly to consumers through retail outlets, online platforms, craft fairs, or wholesale to other businesses. Additionally, candle making businesses may offer related products and services, such as candle-making workshops, candle-making supplies, and personalized candle designs for special events like weddings and parties.

10 Steps to Start a Candle Making Business

1. Learn How to Make Candles

Firstly, learn how to make a perfect candle by taking an online class or in-person from experts as well as visiting the National Candle Association’s website: www.candles.org. You need to ensure that the candle burns from start to finish with a pleasant, strong scent. Also, ensure that the candle burns evenly with no residue left on the sides of the jar.

If you want to learn more about making and selling candles from home, take a look at candleMaking4u which covers all aspects of running a successful candle-making business.

2. Procure Licenses and Permits 

In starting a candle making business you will need legitimate business documentation depending on where you want to start the business. Talk to lawyers, and accountants to learn what permits you need to take while starting and running a candle-making business.

3. Choose a Business Structure

Choosing a proper business structure under which you are going to run your business of candle making. Different states provide varied options for forming a company.

For example, if you are in the United States, forming a sole proprietorship will cost you less but forming an LLC will provide you with certain benefits at some extra cost.

After receiving the necessary documents open a business bank account. Talk to insurance people and buy one which you find most appropriate.

Furthermore, create a catchy name for your candle business.

4. Choose What Products you are Going to Sell

As with any business, the success of a candle manufacturing business also depends on finding and focusing on a niche. The candle is a product that caters to a variety of purposes and types by its nature. Broadly you need to determine the purpose of a normal candle or creative scented candle as a decor item.

Do some market research before starting a candle business. For the normal white color candle, you will need to determine size and shape. For a creative scented candle, you will need to determine what types of colors, designs, and shapes you will be making.

You need to decide what type of candle you want to sell i.e. soy, votive, hurricane, tea light, wickless, gel, jar, pillar, novelty, or scented candles.

5. Create a Candle Making Business Plan 

Write a business plan with details of information about your niche and target audience, marketing, and public relations plans. Include a detailed analysis of competing candle segments and a three-year expense budget with profit projections of your candle-making business.

If you are planning to start a candle making business at home or on a small scale, and not looking for funding, a simple single-page business plan will do. You just need to explore some basic aspects. They are the following:

• Target Market
• Startup & Recurring Costs
• Pricing plan
• How do you plan to sell your candle products?

6. Create the Right Setup 

Set up a work area of your own for making and shipping the candles and also you will need a computer for managing orders. Create a logo and printing materials like letterhead, business cards, catalogs, and brochures of your candle-making company.

You must ensure that each candle you sell has an appropriate warning label on it or you can give each customer written instructions on candle care and use. A low-cost, home-based candle business requires discipline, time management, and organizational skills. Fix the pricing of your candles carefully and competitively to ensure a profit.

7. Raw Materials for Candle Business 

Find reliable vendors of raw materials like wax, color, fragrance, and crafts supplies. Fragrance trends are important as it is often seasonal. Adding fragrance and experimenting with color and artistic detail on the candles will increase consumer demand for the product and the result is you are in more profit. Concentrate on other ornamentation-related items like bowls, jars, etc.

We list down some of the basic items you need to procure for making candles:

• Paraffin, gel, soy, beeswax, or other wax
• Wicks
• Jars, tins, and other containers according to the items you are making
• Fragrance Oils
• Coloring agents
• Packaging supplies

8. Find Places to Sell Your Candles

Contact nearby wholesalers and retailers and introduce your candle items. Craft fairs, home decor stores, gift stores, and grocery stores are potential customers of candles.

If you want to sell online, create an online store to showcase and sell your items. There are also marketplaces like Amazon, eBay, Etsy, etc where you can register as a seller and sell your candle products.

9. Bookkeeping

As a starter, it is very important to process the record of all financial transactions daily. Here lies the importance of proper bookkeeping. It will help you in analyzing the financial health of your candle-making business. Selecting proper accounting software is much needed if you are serious about business.

10. Promotion of Candle Making Business

You can start selling candles by renting a table at a craft show in your area, placing the candles in a retail location with a consignment agreement, or establishing a wholesale account with the retailers. Hotels, restaurants, and spas are the big audience for decorative scented candles.

Market yourself more than your candles by being professional and knowledgeable. Check all the products carefully before it goes to market. Create a business website of your own. Register your business with B2B portals to get online leads. update your website frequently with new products and specifications.

Frequently Asked Questions

Is the candle business profitable?

As per this report, as of 2022, the global size of the candle market amounted to almost 11 billion U.S. dollars. This figure was forecast to reach a value of approximately 14 billion U.S. dollars by the year 2030

If you plan properly with a good marketing strategy, candle-making indeed can be a highly profitable business.

What is the cost of a candle-making business?

The cost of making candles is not much. On average, an investment of around $50,000 is good enough to start a candle business.

What is the profit margin in the candle business?

The profit margin is also better than a lot of other consumer products. One can easily make a profit percentage of more than 30% by selling candles.

To achieve break even it will take a minimum period of 4 months and the expected gross profit is 35 to 45 percent.

What skills do I need to start a candle-making business?

While prior experience in candle making is beneficial, it’s not mandatory. However, having a creative flair, attention to detail, and basic knowledge of candle-making techniques can be advantageous.

Do I need formal training to start a candle-making business?

Formal training is not required, as there are many resources available online and in books that can teach you candle-making techniques. You can also attend workshops or classes to enhance your skills.

What are the startup costs involved in starting a candle-making business?

The startup costs can vary depending on factors such as the scale of your operation, equipment needed, raw material costs, and marketing expenses. Generally, you’ll need to budget for supplies like wax, wicks, fragrance oils, containers, equipment like melters and thermometers, packaging materials, and marketing expenses.

Where can I sell my candles?

Candles can be sold through various channels including online platforms like your own website, Etsy, Amazon, or eBay. You can also explore selling through local craft fairs, farmers markets, pop-up shops, or consignment in retail stores.

Are there any regulations or certifications required to sell candles?

Depending on your location, there may be regulations regarding the safety and labeling of candles. It’s essential to research and comply with any local regulations. Additionally, obtaining certifications like CPSC (Consumer Product Safety Commission) certification can provide credibility and assurance to your customers.

How do I price my candles?

Pricing your candles involves considering factors like the cost of materials, labor, overhead expenses, desired profit margin, and market demand. It’s essential to research the prices of similar candles in the market and ensure that your pricing is competitive yet profitable.

How do I handle shipping and fulfillment for online orders?

For online orders, you’ll need to determine shipping rates, package your candles securely, and choose reliable shipping carriers. Consider offering options like free shipping or flat-rate shipping to attract customers. Additionally, efficient order fulfillment processes are essential to ensure timely delivery and customer satisfaction.

What are some common challenges faced by candle-making businesses?

Common challenges include sourcing high-quality materials at affordable prices, maintaining consistent product quality, managing inventory levels, staying updated on industry trends, and effectively competing with established brands. Overcoming these challenges requires careful planning, continuous learning, and adaptability.