Do you have an entrepreneurial spirit burning inside you? Do you love scents, making a place feel like home, and getting creative? How would you feel about combining all of those things?
Sounds pretty dreamy, right? You can make your dreams come true by starting a candle business.
Candles are a thing that never goes out of style. They bring peace and joy into peoples’ domiciles and always appear to make the best gifts.
So why don’t you turn your interest in making candles into an opportunity to generate income?
If you’re hesitant about jumping into e-commerce opportunity because you don’t know how to launch a candle business, you might be in luck.
We are here to share with you all you need to understand about starting a candle business. So read on to find out how you can turn this interest into a profit.
The Easy Parts of Starting a Candle Business
Some areas of the process are easier than others. If you’re a candle lover, picking the right type of candles to make and where to sell them might be the most fun and straightforward the main whole process.
Deciding What Type of Candle To Make/Sell
When laypeople think about candles, they typically group them all into the same “candle” category. While they are all part of the same family, numerous various kinds exist.
And the best way to get your candle business off the ground is always to choose one form of candle to focus on– at least at first. Once you’ve mastered that one, you can consider adding other types to your store.
Here are the most popular kinds of candles to choose from:
- Unscented soy candles . This type of candle has grown massively in popularity over the last couple of years as people have be particular about what forms of goods they are consuming. Soy candles are made from a soy wax base derived from soybeans. Thus, they are sustainable, which is a big draw.
- Unscented vegan candles . This really is another type of candle that is very popular right now, as more and more people switch to products and foods that are free of any animal-derived ingredients. Unlike other basic candles that have beeswax, vegan candles have no animal products in them.
- Scented candles . Many people purchase candles as decorative pieces in their homes, but there is also a huge market for people who buy candles based simply on the smells. Scented candles are probably the most popular sort of candle and are available in an extensive range of scents that offers something for everyone. Scents can be included with any candle-making base.
- Decorative candles . There is a big market for candles that people never burn off but rather use simply as home decor and beautiful pieces. Should you want to get creative together with your artistic side, this can be the right type of candle for you to get into making and selling.
Find A Place To Sell Your Candles
When it comes to selling your candles, you have many options of where to try and put them up for sale.
Some people find great success by just word of mouth. It happens as easily as someone going over to a friend’s house and seeing a candle they love. They ask where it’s from after which buy one for themselves.
Others find a lot of success selling via social media. People loving seeing the candles in action and other peoples’ reactions to them. You may also showcase your branding and personality.
You can also reach out to local shops and boutiques with complementary products and services and see if they’d like to stock your candles. You can share a percentage of the profits with the shop to have your candles sold there.
But the simplest way to sell your candles is by having your own personal online shop. If this sounds intimidating to you–we have the right solution: Shopify.
This online platform was created for this exact purpose: to give entrepreneurs a way to sell their products without all of the fuss and overhead of a physical store.
Shopify has all the tools you’ll need to create an e commerce website that features all the tools you need to have customers, help drive your sales, and keep the day-to-day operations of your candle business running smoothly.
The Difficult Areas of Starting a Candle Business
Up to starting a candle business may sound like fun (and it really is! ), some elements of it may not be as fun since the actual candle-making itself.
However , these parts are necessary to produce your business a success, so let’s discuss one of the most important things you need to do to set up a successful business: creating a business plan.
A business plan is often as daunting if you go in blindly. To ensure doesn’t happen to you, here is an outline of what you need to do to produce your business plan:
Come up with a business name. Have fun with this, and come up with something catchy that is easy for clients to remember. You may want to it be a name that people know is related to candles when they hear it. Once you create a name that you like, check on your secretary of state’s website to make sure that still another business isn’t already using the name. You also want to do an on line search to see if the name has been trademarked elsewhere. If your name is liberated to use, it is a good notion to secure a domain name and social media handles as soon as possible.
Create a business structure . Now we are starting to get into the nitty-gritty of the company. You need to choose the right type of business entity. While this may perhaps not seem like a big decision from the beginning, it is important. The most common business entities are limited liability businesses (LLC), corporations, sole proprietorships, and general partnerships. Do your research to understand the differences between these and what will work best for you. Start here with our thorough guide to business structures and how to choose the right one for your company.
Write out a fully considered business plan. Business plans generally include the following:
- Executive summary of the overall business
- General description of the company
- Organizational structure
- Market research and competitor analysis
- Description of your products
- How you plan to market and sell your products
- Financial projections and funding plans
You can use your company plan to dive in to your business, make informed decisions, and secure funding.
We highly recommend using business plan software to help you with this step. In the event that you only need to create up to three business plans, Enloop is an excellent free business plan software. You can use it at no cost for seven days without any credit card required, that is plenty of time to get yours done.
Enloop’s templates include financial analysis, generates bank-ready financial statements and forecasts, charts and tables, formatting, and much more. You enter the info and Enloop puts it all together for you.
Step 1: Develop your pitch
Have you ever heard of the term “elevator pitch”? This is a short description of one’s company that sparks interest in people. It takes to be short and sweet– quick enough to explain to someone on a quick elevator ride, ergo its name.
In your pitch, you need to establish the “who. ” This means identifying your customer. Who they are, what their interests are, what they search for, where they shop, where they live, and more.
Next, you need to ascertain the “what. ” This forces you to think about the value your product brings to people. How will people benefit from buying your product? Why would they want to buy it?
2: Define your marketplace
Your target audience is where you fit into the larger candle marketplace (because it really is massive). This step is really a very important one to consume your business.
Here are the different types of markets:
Handmade candles tend to be more expensive and are often available on the web direct to consumer. These candles are often more creative than mass– or mid-market candles and can be found on sites like Etsy and individual shop websites. While the candlemaker sets their very own prices, they can be from $10 to $100.
This type of market includes candles such as those you find at Bed Bath and Beyond and the brand Yankee Candle. It’s defined as selling your candles at an affordable price in lots of retail stores. The scents in this type of market tend to be more conventional and widely loved because they are produced and sold in large quantities. The price point for these candles is also less, on average under $10.
Just like the mass-market candles, ones in the mid-market also appeal to many people. This level of candle is usually found at stores like Target and TJ Maxx. These scents are more unique and are priced around $15.
They are luxury-level candles found at stores like Nordstrom, Saks Fifth Avenue, and upscale boutiques. Premium packaging, scents, and stories are central to this kind of market. The price range for these candles is $20 or over.
To assist you decide which market you want to target, think of who your ideal customer is. Where they will go to buy your candles and how much do they feel comfortable spending on a candle?
Determining this can help you sort out the details of where to source your candle-making materials and what you want your branding and packaging to look like.
Step 3: Build your brand
This part of the process can be very fun, as you can decide on things such as your logo, color scheme, and brand identity. It is crucial to building an audience and is particularly important for a candle business.
This is a market that has blown up over the last few years, so you need to take the time to figure out what sets your candle business apart from others.
Listed below are the things to consider with building your brand:
Choose your scents
Many people buy candles due to their scent. The only ones who may not are those who are in the decorative candle market. Even then, they may want the candles to smell good should they choose to burn off them rather than just have them serve as decoration.
Thus, the scent is crucial, and you need to choose scents that’ll make your brand stand out. Get creative and sophisticated together with your choices. Pick things that people won’t find anywhere else and which make them feel a certain way or trigger feelings of nostalgia.
There are many scents to choose from and you can even create a custom blend. Go nuts here and find scents you truly love and can create a brand around.
Create your brand story and web site
Your brand story is what gives your candle business personality. In place of just being a product that people can buy, your brand needs a narrative that connects to your customers. Branding is everything from your business’s name and slogan to your logo, colors, and pictures.
One of the best methods to share your brand is via a Shopify website. You can use Shopify to buy and register your domain and get your site up and running.
The domain name gives your business a level of credibility and proves to customers that you’re in it for the long haul.
Some of the features you’ll enjoy with your Shopify website are:
- Choosing from 70+ professional website themes
- Your own domain name
- Ability to brand and customize your store
- Ability to shop from a cellular phone or tablet (mobile responsive)
- Full blogging platform
- Free SSL certificate
- Flexible shipping rates
You can try Shopify free of charge for 14 days to see if it’s the proper fit for you. If it feels like a good choice for your candle business, you can choose from these three pricing plans:
Basic Shopify. $29 monthly. This is the best option for new ecommerce businesses that primarily sell online.
Shopify. $79 monthly. This is the best option for growing businesses that sell both on line and in-person.
High level Shopify. $299 per month. This is the best option for scaling businesses that need high level reporting.
Step: Create a budget
This is an important part of your business plan which allows you to figure out the expenses involved in your business.
The budget should include:
- Cost of equipment
- Cost of supplies
- Overhead costs
You also want to work into your budget paying yourself to make a profit on your business.
The best way to start a budget is to create it for the first two months of your business. As soon as you make it through that, it is possible to reassess and rework the budget to higher fit your needs once you’ve learned more about what it’s want to actually have your candle business in action.
Step 5: Set up a marketing plan
How will you sell your candles? The marketing plan is really a crucial part of the business process.
Many people choose to sell their candles on the web, as it is the most lucrative and cost-effective. Not to mention it allows people from all over the world to own access to your products.
Below are a few of the top methods to market your candles online:
- Email marketing
- Content marketing
If you’d rather sell your candles in person, then establish a marketing plan that aligns with this mode of selling. Again, give attention to your target audience and how you will attract them at different shops.
Step 6: Get permits and licenses
Before you get to the best part of your candle business, you want to make sure you have all the necessary permits and licenses to run your candle business.
Things you need for this often depends on where you establish your business and which kind of business you choose to set up.
Make sure you check out your local and state requirements for permits and licenses for small businesses. Listed here is a helpful checklist that the IRS has generated for starting your small business.
Step 7: Start making candles
Now that you’ve got the more complicated and technical parts of your candle business out of the way, it is time for you to tap into your creativity and start making candles.
With the kind of candle chosen, your target audience determined, and your branding sorted, it’s simple to make candles that bring customers the happiness they’re after.