If you are thinking about starting up a small business as a side hustle, then you should consider a candle business. It is the perfect business for a low capital budget, and its inventory will consume as much or as little space as you want. Also, it is an easy business to start up and grow with the increase in demands.
There are different kinds and sizes of candles, but one of the keys to thriving in the business is to find out what your customers want. Again, you must consider your target area or market, and so on. In this article, we’ll be breaking down the steps of how to start a candle business, which might be ideal for your productive side.
How to Start a Candle Business: A Step by Step Guide
Just like several other businesses, starting a candle business requires a lot of work, yet can be very profitable.
Before you allow your excitement to take the better part of you and make you rush into the business, why not pause and think about what you must do to make sure your business yield a better income by following some of the steps below.
For your business to have a greater chance of success you must do all you can to acquire every of your financial, legal, and marketing requirements. With the following processes, you are sure of making the right headway towards a boom in your candle business.
1. Perfect Your Craft
As long as any business is concerned, selling a good product attracts more customers. In other words, if you sell good candles, it will help to destress, add a decorative feel, or set the mood.
But, if your candles are bad, it doesn’t spell well for your business. Candles may smell too sweet, too floral, too smoky, or the scent can fade to the extent of not smelling like anything.
Very importantly, you may want to easily rush into making candles that no one likes. Therefore, before you venture into the candle business, you must acquaint yourself with the basics of how to make a good candle and create some decent scents, as well as know-how to make sure of a good burn time, how to produce a scent that fills the room and scent that people love.
Again, you must also consider these questions; what should I do to make my candle line unique? How can every candle be inspired by varied areas? Can I use unique glassware to accommodate my candles?
Don’t forget a nice scent and low pricing will make you go far in the candle business, especially as a starter, but you must create a way to make your brand stand out in a very competitive market.
2. Establish a Business Plan
For every business to succeed, a business plan is necessary. Producing candles is a creative process and fun, hence, it could be difficult to get torn from experimenting to write a business plan. Yet, establishing a business plan is a creative work also, and slightly analytical.
Therefore, you must the two sides of your brain to work, as the step to establishing a business plan will tend to be invaluable to you all the stages of your business growth.
A proper business plan features some parts that can maintain the right direction of your business and further reveal your worth to any potential customer or lender.
A business plan contains your business name, business entity, product or service definition, and questions like; what type of scent-based products you’ll like to sell, your charges for them, where you can buy your candle supplies, how much will the supplies cost, and how much it’ll take to be produced.
3. Obtain Legal Licenses, Permits, and Insurance
This step is very important to any business entrepreneur. Any business that has the proper legal licenses and permits is sure of a backup or security.
If you want to have a completely uninterrupted candle business success, you must ensure you acquire licenses and insurances needed by your local or federal government based on your location, business type, and structure.
In some cases, you might be required to obtain many different business permits at the state, federal, and local stages. If you need workers to assist you, then you will acquire your employer identification number (EIN), necessary for matters about tax. You can also get insurance for your business coverage.
4. Choose the Best Area to Market Your Products
Another essential point to consider while starting up a candle business is where to sell market your products. Is it going to be online, boutique, at the local farmers market, or all?
You can decide to establish your storefront, but probably want to start gradually initially and market your candles to local boutique owners.
You are free to access every alternative before you and always be bold enough to begin small while building brand loyalty and receiving customer feedback.
The most recommended sites to market online are digital shops like Amazon, Etsy, etc. You can take out time to investigate the one that is most ideal for your business.
5. Source for Little Business Funding & Capital
Sometimes, you can only use the money to get money, including in the candle business. You need money for several things including supply payments, marketing, production, insurance, legal backing, etc. The following are the essential financial alternatives you can consider especially as a beginner entrepreneur; business lines of credit, business credits cards, equipment purchase, and start-up capital.
6. Discover & Manage Candle Supplies
Initially, you are only able to acquire some wax and scents for your candles from your local craft shop. But immediately your business starts growing, you can begin to earn a bigger sum by purchasing in larger quantities from wholesalers.
And maybe begin to find cheaper supplies immediately to enable you to test for quality and discover the ideal supplier for you.
The following are some of the candle-making supplies you require; wax like paraffin, gel, soy, and beeswax (or others alike), wicks, and containers for candles, fragrances like essential oils, coloring agents, and shipping and packaging supplies.
Meanwhile, before placing huge orders, make sure you first consider how much inventory you’ll require and how you’ll be able to manage it.
It will not only allow for easier finding of suppliers but will also enable you to establish a reliable inventory system. You can try the inventory management app to set the incoming and outgoing activities of your supplies.
7. Start Marketing Your Candles
After choosing your business name and developing your brand, it’s time to start marketing your candle business. There are different options to go for.
You can start with vocal marketing, even though it won’t guarantee immediate success (no method would, anyway), which is why a perfectly laid down marketing plan is very crucial.
You can begin by asking yourself certain questions like; what are my candle selling points? Are they more durable than others? Do they possess a stronger scent?
Are they produced from more sustainable ingredients or mixtures? You can find out what your basic selling point is and how it can perfectly be presented to your potential customers.
You can start with using social media adverts, as it is a free, fun and easy platform to begin. You can choose the best channel for your business and start gaining a foothold on them. Another affordable alternative you can consider is email marketing.
The benefit of using these platforms is to enable customers to sign up for your adverts. You’ll have a captive audience; therefore, you can make good use of that fact.