How To Start A Scented Candle Business In 10 Steps (With Examples)
Are you starting a candle business from home, dealing with scented candles or essential oil candles to make at least some extra income into your pocket? You can start a candle business from home, but is it the right decision for you? Read on to learn about the pros and cons of starting a candle business from home.
What To Know Before Starting A Candle Business From Home
Candle making is a popular home-based business. It’s a great way to use your creative skills, and it can be quite profitable. It’s on an upward trend, even in the midst of the pandemic.
According to Verified Market Research, the value of the candle industry was at $3.54 billion and is predicted to reach more than #6 billion by 2027. This is due in part to the scented candle industry, valued at $533.5 million in 2020 (source), with an expectation to rise in CAGR at an average rate of 3.3% yearly for the next 7 years.
However, there are a few things you need to know before starting a candle business from home.
Step 1 – What Kind Of Candles
First, you need to decide what kind of candles you want to make. There are many different types of candles, such as soy candles, beeswax candles, gel candles, and container candles. Each type of candle has its own benefits and drawbacks. You’ll need to decide which type of candle is best for your business.
Step 2 – Choosing Target Audience
The first step in starting any business is determining your target audience. Who would you like to sell candles to? “What do I want in a candle?” is a better question to ask yourself.
Cantrip Candles was founded by Christoff Visscher in order to improve his at-home tabletop gaming experiences. He’d been hosting game nights for a while and wanted to improve the ambiance and make the sessions more immersive for himself and his friends. When he couldn’t find what he was looking for, he began creating his own adventure-themed candles. Many others, like him, had been looking for that exact product, and he had finally created it. He now owns and operates a store in Los Angeles that sells these enchanted candles.
Step 3 – Choose A Location To Begin
You need to choose a good location for your candle business. You’ll need a place where you can work quietly and without distractions. You’ll also need a place where you can store your supplies and equipment.
Where do you intend to sell your candles? What about shopping online, in a boutique, or at your neighbourhood farmers market? You can always open your own storefront, but perhaps you should start small and sell your candles to local boutique owners first. Consider all of your options, and don’t be afraid to start small while you build brand loyalty and gather customer feedback.
If you want to sell your candles online but aren’t ready to launch your own ecommerce website, you can always sell them on a digital marketplace like Amazon or Etsy. There are numerous beneficial ecommerce platforms to choose from, so take your time researching which is the best fit for your company.
Step 4 – Set Up Shipping And Payment Options
Once you’ve decided what type of product you’d like to sell, you’ll need to decide how you plan to ship them. Do you want to deliver them yourself? Or would you rather outsource the shipping process to a third party? How will you handle payments? Will you accept credit cards directly, or will you require customers to pay with PayPal?
Step 5 – Crafting A Business Plan
You need to create a business plan. This will help you outline your goals and strategies for your candle business. It will also help you determine how much money you need to start your business and how much money you can expect to make.
A good business plan will include several sections that can help keep your company on track while also demonstrating your worth to potential investors or lenders. This is something you should do before starting a business, but it’s never too late to start one. A business plan will help you introduce the important details of your candle business to others and will make the process of growing your business much easier. If you are hesitant to create a business plan from scratch, consider using a business plan template or business plan software to guide you through the process.
Step 6 – Build Your Online Store
Where should you sell your candles now that they’re finished? Your own ecommerce store is a great place to start.
When compared to listing your candles on online selling sites like Amazon, creating an online store appears to be a daunting task. However, these marketplaces eat into your profits and do not allow you to freely express your brand. Your online store not only makes more money in the long run, but it also serves as a digital home for your brand.
If you’re looking to sell products online, then you should consider creating an e-commerce site. There are several reasons why you might want to do so. First, you can use an e-commerce platform to manage your inventory and sales. Second, you can use an affiliate program to earn commissions on any sales made through your website. Third, you can use an online store builder to build your own custom e-commerce site.
When it comes to creating an online store, Shopify is the most user-friendly platform. You can create an ecommerce website without any coding knowledge or a large budget.
You get a beautiful storefront, SSL certifications, high-speed web servers, cart abandonment recovery, and other beginner-friendly marketing and sales tools for a small monthly fee of $29 per month. You also gain access to the Shopify App Store, which contains over 4,000 plugins for improving your store and increasing online sales.
An alternative place to sell your candles is at Etsy. This is an online platform where most intricately designed handicrafts are being listed and sold to the public who love art.
Step 7 – Get Small Business Funding
It’s a cliche, but it takes money to make money, and starting a candle company is no exception. You may require business funding to pay for supplies, marketing, production, insurance, legal counsel, and other expenses. Begin by considering the funding options listed below.
Business lines of credit: A more flexible type of credit than a traditional business loan, a business line of credit provides you with a set amount of money that you can draw from only when you need it.
Business credit cards: For newer business owners, a business credit card may be a better option than a loan because it requires less credit history. In general, you can find a credit card with a 0% intro APR, which is equivalent to having an interest-free loan if you pay off your balance before the introductory offer expires and a variable APR kicks in.
Equipment financing: If your business necessitates the purchase of expensive equipment, equipment financing may be your best option. In most cases, a lender lends money specifically to purchase equipment for this type of financing. The equipment is then used as collateral for the loan.
Startup financing: A new business owner should look into startup financing options such as SBA microloans or business grants. Crowdfunding has also become a popular method of obtaining quick startup funding.
Once you’ve secured funding or started accruing expenses or earning income, you should take steps to keep your business and personal finances separate. Then, look into accounting software to help you manage your company’s finances.
Step 8 – Getting Candle Supplies
You need to get the proper supplies and equipment for your candle business. This includes things like wax, wicks, molds, dyes, and scents. You’ll also need a good supply of containers, such as jars, tins, and votives.
You might be able to get some wax and scents for your candles at your local craft supply store at first. However, as your company grows, you’ll save a lot of money by purchasing supplies in bulk from a wholesale supplier. You should start looking for low-cost supplies right away so you can test for quality and find the best supplier for you. You may require the following candle-making supplies:
- Wax types include paraffin, gel, soy, beeswax, and others.
- Candle-holding containers
- Essential oils and other fragrances
- Color agents
- Shipping and packaging materials
Before placing any large orders, figure out how much inventory you’ll need and how you’ll manage it. Not only will this make it easier to find suppliers, but it will also allow you to start forming a reliable inventory system. You might want to think about using an inventory management app to keep track of your candle making supplies’ arrivals and departures.
Step 9 – Add Images And Clips
If you’re new to selling products online, you might be wondering where to begin. There’s no shortage of options available to you, so you’ll need to make sure you choose one that works well for you. One option is to use an eCommerce platform like Shopify or Bigcommerce. These platforms allow you to set up a storefront and manage inventory, as well as provide customer support. Another option is to use Amazon FBA (Fulfillment by Amazon). This allows you to sell products through Amazon without having to maintain a separate website.
Step 10 – Marketing Your Candles Online
Finally, you need to market your candle business. You can do this by creating a website, distributing flyers, or exhibiting at craft shows. Or maybe that has been too traditional for you?
You can market your business once you’ve decided on a name and begun to develop your brand. Word of mouth is ideal, but it cannot be relied on. This is where a well-thought-out marketing strategy comes in handy. You should begin by considering what your candle’s selling points are. Do they have a longer lifespan than others? Does it smell better? Are they made with more environmentally friendly ingredients? Determine your main selling point and how to best communicate that message to potential customers.
Social media is a free, enjoyable, and simple place to begin. You should consider which channels are best for your company and start building a presence on them. Email marketing is also a low-cost option to consider. The best part about social media and email marketing is that your customers actively choose to receive your advertisements. Take advantage of the fact that you have a captive audience.
Pros And Cons Of Scented Candle Home Business
The benefits include more control over your time, flexibility in how much or little you work and doing something that’s popular now. The downside is that it might not be as profitable as other businesses, you may be limited in the products you can sell and it can be hard to get started.
Once you’ve weighed the pros and cons, it’s important to do your research before starting a candle business from home. You’ll need to decide what type of candles you want to make, what kind of branding and marketing you want to do, and what kind of financial investments you’ll need to make.
If you’re willing to put in the work, starting a candle business from home can be a great way to have more control over your life and your career, so just make sure you know what you’re getting into!