How to Start a Candle Making Business from Home

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 low budget.

A small-scale candle manufacturing business can be a great way for entrepreneurs for earning extra money or even a full-time income. To start a candle making business, there are a few things you should consider to make your venture successful.

Is Candle Making Business Profitable?

The global candles market accounted for US$ 8,426.31 Mn in 2018. Industry experts predict the industry to grow to US$ 13,031.03 Mn. It is expected to grow at a CAGR of 5.5% from 2019 to 2027.

If you plan properly with a good marketing strategy, candle making indeed can be a highly profitable business. The cost of making candles is not much. The profit margin is also better than a lot of other consumer products. One can easily make a profit percentage of more than 30% on selling candles.

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

Here are the 10 Steps to Start a Profitable Candle Making Business

Candle making business can be initiated with a small start budget from home. People purchase candles not only for religious purposes but also to scent and decorate their home and business places. The popularity and consumer demand for scented and decorative candles create a tremendous business opportunity for innovative start-up entrepreneurs.

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.

2. Licenses/ Permits Required for Candle Making Business

In starting a candle making business you will need legitimate business documentation depending on where you want to start the business. Talk to lawyers, accountants to learn what permits you need to take while starting and running 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 LLC which costs more will provide you with certain benefits.

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

4. Choose What Products you are Going to Sell?

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

Do some market research before starting a candle making 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, 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. Business Plan for Candle Making Business

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 for candle segments, three years 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:

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, catalog, and brochure 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 a written instruction on candle care and use. A low-cost, home-based candle making business requires discipline, time management, and organizational skills. Fix the pricing of your candles carefully and competitively with ensuring a profit.

7. Raw Materials for Candle Making 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 experiment with color and artistic detail on the candles will definitely 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, 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 on a daily basis. 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 in 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 consignment agreement, or establishing a wholesale account with the retailers. Hotels, restaurants, 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.

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

Join a candle makers association and stay up-to-date on industry trends and connect with potential consumers. Promote your candle business online by making a promotional blog or website.