How to Build a Candle Business


Are you interested in learning how to build a candle business? This article is a fantastic guide for you. Let’s dive in!

Many people around the world love their homes always to have a fantastic fragrance. And one of the best ways of achieving that gorgeous scent and ambiance in your home is by lighting candles.

Do you know that candle sales in the U.S. are estimated to be up to $3.2 billion every year by the National Candle Association? The good thing about launching a candle business is that you can do it as a part-time or full-time business.

If building your candle business is on your mind, you are on the right track because you can make lots of money from it if you do it right.

But first, let’s talk about why owning a candle business is very lucrative, and then we will share the steps to build yours with you.

Reasons To Build A Candle Business


1) Simple To Start

It is effortless for you to learn how to make candles. Starting a candle business does not require you to get lots of capital, space, or tools. A moderate workspace and essential tools can get you started.

2) Easy To Bid And Sell

Do you know that you can make up to 200% or even more profit from selling candles? For instance, if it took you about $4 to make a candle, you can sell it at about $12 or even more. You can even sell your candles through craft malls, gift shops, popular websites, or even your website.

3)Huge Demand Market

Many households in the U.S., say about 70%, make use of candles. Most of them love natural and quality homemade. That is the reason why candles are sold in most markets or stores.

Now that you know why to build a candle business let’s look at building a candle business.

6 Steps To Build A Candle Business

Step 1 – Strive For Perfection In Your Craft

A good candle is all you need to break into the candle market, just as a lousy candle can be so disastrous to your candle business.

A candle can have too much smell, or too much smoke, or a weak scent that can just be blown away by the least wind.

Whatever the case might be, try not to be so extreme in a particular aspect of your candle making. There should always be a balance.

So, before you commence your candle business, you have to learn how to make a good candle and make some exquisite scents. You also need to finetune your focus. For me, the best candle companies are sustainable.

They make candles from coconut wax instead of chemicals like paraffin.

They also use nature’s gorgeous scents made from essential oils.

You don’t just stop learning how to make candles, but become a master of how the scent spreads around a room or environment, the quality of the burning time, and creating fragrances that people would love.

A pleasant scent that comes at an affordable price would drag people to buy from you also.

So, you must strive for perfection in your craft.

Step 2 – Make A Business Plan

Candle business is a creative business. But, you have to know that writing out your business plan is also a form of creativity.

A good business plan is vital if you want to start a candle business.

It can help your business to be on a good route to success. It can also sell you out to potential investors or people willing to lend you money to commence your business.

If creating a business plan seems a bit difficult for you, you can use a business plan software or template to make it.

While creating our business plan, I will love you to consider three important things:

A)Selecting a business name

It is a good idea for you to select a business name to create your business plan. Select a name that showcases your product and also remains in the hearts of your potential clients. Check to confirm that the business name of your choice is not in use by someone else. And if your business name is free, it is good to secure a domain name and social media handles.

B)Selecting a business entity

Creating your business plan would enable you to know the kind of business entity you would want to set up. Your business entity could be a corporation, proprietorship, general partnership, or even a limited liability company. If you find it challenging to select a business entity, a business attorney or a tax expert could help.

Consulting any of them regarding the kind of business entity you should go for could save you lots of cash in the future. Because risk level, taxes, and other factors, is dependent on the kind of business entity you run.

C)Develop your initial business products and prices

Creating your business plan is useful to clearly state the kind of products and services your business offers. You need to answer questions that will help clarify the type of products and services you will be offering.

Will you focus on just candles, or will you also sell reed diffusers and essential oils? Will you be taking custom candle orders? When it comes to scent-based products, what type would you sell? What will be the price range of your products and services? The cost of your raw materials and where to purchase them? Cost of production?

Once you can answer these questions very well, then with your business plan, you can use it to set your candle business on the right course.

Step 3 – Develop your central theme

Although we earlier talked about building your  website, we want to explain further. The success of your candle business depends on your central theme and target market. For instance, you can build a business that focuses on building memorable candle subscription boxes targeting nature lovers. You should also define whether you are targeting the mass market, mid-market or high-end (luxury) candle markets.

Don’t forget to research and choose your:

  • unique scent combinations
  •  clever names for different candles or categories of candles
  • Find and support a good cause to drive up your acceptance
  • use a special packaging (or no-packaging as green brands do)

Step 4 – Choose Locations To Sell Your Products

The locations of where you sell your products matters so much. So, do you wish to sell your candles at the local farmers’ market or in a boutique? You might even want to sell them at your shop, but you choose to begin selling to the boutiques in your area.

It is essential you take out time to know where you want to sell candles. Consider various locations and see the ones that would suit your business the most.

For instance, if you want to sell your candles online, you have not gotten your website. You can as well sell them on e-commerce platforms, like Amazon and others. However, we recommend building your website, even if you want to sell on those marketplaces. This will help you establish and authority and create a space where your customers can reach your support team.

Step 5 – Marketing Strategy

Marketing is key to the success of every business. Once you have created your business plan and mastered your craft, I will advise you to market your products.

Marketing, by just words, is good but might not be very useful. It is necessary you have a marketing strategy for advertising your products to potential clients.

Have you considered knowing the stronghold of your candles? What makes your candles better than others? Is it the quality of ingredients you use to make them, or they last longer or smell nicer?

Whatever the candle’s stronghold might be, please find the best ways to propagate it to your potential clients.

You can use social media to spread the message of your candle’s stronghold. You can even consider Email marketing also. The advantage of social media and email marketing is that your potential clients can sign up for your products’ advertisement.

Step 6 – Sort For Business Funding

Like building most other businesses, you need funds, likewise your candle business. Funds are required for materials, production, marketing, business registration, legal council, and many others.

Therefore, you might require business funding. You can consider the following business funding options below.

  • Business credit cards
  • Startup funding
  • Business lines of credit
  • Equipment financing

The business funding options would be great for you as you begin to build a candle business. Some business funding loans come with little or no interest. Though, ensure to pay the loans at the due time as you start reaping benefits.

Step 7 – Acquiring The Need Licenses, Permits, And Insurance

Here comes the most tricky aspect. You need to obtain all necessary licenses, permits, and insurance that your local, state and federal governments require. The requirements are based on your business structure, business type, and your location.

Sometimes you are required to pay multiple business licenses at all levels of government.

However, if you are having challenges, you can consult your local chambers of commerce.

You will also need to get an Employer Identification Number(EIN), which has to do with taxes if your candle business would require employees. Even if you don’t have plans to have employees at the moment, you might need them in the future. Some benefits come with having an Employer Identification Number. So, it is good you consider it.

To build a candle business, you will have to deal with flammable substances, likewise, your workers, if you are hiring some workers. It will be important for you to do unemployment, compensation, and disability insurance in such a case.

It would help if you also considered a general liability and commercial property insurance.

You can consult a business lawyer to get more clarification. You should also seek insights into your local fire codes. That way, you can tell your representative the amount of fire coverage you will be dealing with.

How much can you make from a candle business?

A candle business is one of the best ventures you can start with a little capital but look towards high level of returns. Start-up costs will not go above $300 and will get you a few supplies and equipment to begin. In the long run, you will start buying your profits in bulk which will further drive up your profits.

At the basics you will need:

  • Wax (coconut wax, soy-wax, paraffin, depending on your focus)
  • Scented oils (or essential oils)
  • Wick material
  • Double boiler
  • Various color chips
  • Instruction manual
  • Molds
  • Thermometer

Now to the types of candles you can create, I suggest narrowing your reach. There are off course variety of materials, shapes and scents to choose from. You can also aim for specialty candles such as sand candles, gel, hand-dipped, hand-rolled etc.

In the end, you can look forward to at least $25, 000 to 50,000 every year in profits.

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