If you want to start a successful candle manufacturing company, read this article for tips on doing so with a small startup budget.
Starting a small-scale business selling candles is one of the best ways to earn extra cash. There are several factors you need to take into consideration before starting up your own business.
Is Candle Making Business Profitable?
According to an analyst report published by Transparency Market Research (TMR), the global candle market was valued at US$ 8,426 million in 2018. The market is projected to reach US$ 13,031 million by 2027, growing at a CAGR […]
If you plan properly, candle selling can be a very lucrative business. The costs involved are low. Profit margins are higher than a lot of other goods. You can easily make a profit of more than 30%.
It will require at least four months before you see any revenue from your business. Your expected gross profit is between 35% and 45%.
10 Steps to Start Candle-Making Manufacturing Business
Here are the ten steps to get started with your own profitable candles.
A candle-making business can be started with a low investment from your own house. Consumers buy scented and decorative wax products not only for religious reasons but also to scent and adorn their houses and offices.
The increasing demand for these kinds of products creates an excellent business opportunity for innovative new entrepreneurs.
1. Learn How to Make Candles
To begin with, take an online course or attend an in-person workshop to learn how to make a perfectly burning, scented wax Âcandlestick. Secondly, check out the National Candles Association’s (NCA) site at www.candles. org for further tips on making candles. Make sure that the candles burn evenly without any residues left on the side of the container.
2. Licenses/ Permits Required for Candle-Making Business
Depending on where you plan to start a candle-making company, you may need some sort of legal documentation. Speak to an attorney, accountant, or both to determine if you need any licenses or permits before beginning your new venture.
3. Choose a Business Structure
You should choose the right type of business structure depending on where you live. If you’re located in the US, choosing a sole proprietorship may be cheaper than an LLC. But if you want to take advantage of certain tax advantages offered by an LLC, then you might need to pay a bit more.
Once you’ve received the necessary documentation, set up a business bank account. Contact an insurance company and purchase one which suits you best.
4. Choose What Products you are Going to Sell?
To be successful at making candles, you must first figure out which type of candles best fits your needs. Candles come in various shapes, sizes, colors, fragrances, etc., so you may want to consider choosing one that matches your specific needs.
Before starting a candle business, conduct some research into the industry. You’ll need to decide on the type of candles you want to sell (white vs. colored), their sizes and shapes, and any design elements they might include.
You need to determine which types of products you plan to offer, including soy, votive, hurricanes, tea lights, wickless, gels, jars, pillars, novelties, and scented ones.
5. Create a Candle Making Business Plan
Create a detailed outline of your niche and target market, including a thorough description of your product and services, a detailed marketing strategy, and an extensive list of public relations activities.
Also include a detailed financial forecast of your company, including a detailed breakdown of expenses and projected profits.
A simple one-pager will do if you’re planning to start a candle-selling business from home or on a small-scale basis. Some basics to consider include:
- Target Market
- Startup & Recurring Costs
- Business Planning – When do you expect your business to reach profitability?
- Choosing the right name for your candle-making business.
6. Create the Right Setup
You’ll want to set up a separate workspace for making and selling your products. Also, you’ll need a personal desktop PC (or laptop) for managing orders. Make sure you create a logo and print out some marketing material.
To run a successful candle-making business at home, you need to be organized, disciplined, and have good time-keeping and organization skills. Be sure to set prices for your candles carefully and competitiveÂly so that they’re profitable.
7. Raw Materials for Candle-Making Business
Find reliable suppliers of raw materials like candlewax, color, fragrance, and craft supplies. Fragrances are important because they can be seasonally changing.
Experimenting with color and artistic details on the candles will definitely raise consumer demand for the products and the results are you’re in more profit. Focus on other ornamental-related goods such as dishes, jars, etc.
Here we provide some of the basic materials needed for making candle wax.
- Wax, paraffin, gel, soya, or any other type of wax
- Wicks
- Containers for different kinds of foods according to the kind of food you’re cooking
- Fragrance Oils
- Coloring agents
- Packaging supplies
8. Find Places to Sell Your Candles
You could contact local wholesalers and retail shops and tell them about your products. Gift shops, home décor shops, craft markets, and supermarkets are potential customers for candles.
To start selling candles online, set up an online store to display and offer them for sale. You can also use marketplaces like Amazon, eBay, Etsy, etc where sellers can list their items for sale.
9. Bookkeeping
As a starter, you should process the records of all financial activities on a daily base. Here lies the importance of proper bookkeeping. It helps you in analyzing the financial status of your candle-making company. Choosing proper accounting software is much essential if you are serious about running a successful candle-making enterprise.
10. Promotion of Candle-Making Business
You can sell candles by setting up a booth at a local craft fair, opening an Etsy store, or creating a wholesale account with candle manufacturers.
Market yourself more than what you’re selling. Be professional and knowledgeable about your product. Set up an eCommerce store where people can buy your candles. Update your site regularly with new information. Get listed on B2B sites so customers can find you easily.
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