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How to Start a Candle Business In 8 Simple Steps [2023 Update]

Do you love candles and wish that you could spend your day making them without worrying about your job?

Luckily, you’re not the only candle-lover out there, nor are you the only person unsatisfied with their day job.

With no need for a permit or license, you can start a candle business from your kitchen table using eight simple steps.

As well as the how-to’s, we’ll get into everything you may need clarity on when planning a candle trade.

Let’s get started!

How Profitable is Owning a Candle Business?

The odds are in your favor for launching a candle business.

Direct sales companies are often successful, especially if they are selling products that people need and enjoy.

If you price your products well, accounting for material costs and labor, you’ll be able to set price limits that are fair for your customers but let you earn a profit.

Starting a candle business can be challenging.

The average candle shop brings in around $30,000 annually, which is $2,500 per month.

This takes hard work, but it is far simpler to start a small candle company than it is to develop a business in a larger and more complex industry.

By following the proper steps, you can have a thriving candle business in no time!

What You’ll Need to Start a Candle Business [& Associated Costs]

You must know what you’ll need to start a candle company.

You can end up in trouble without proper supplies.

You’ll avoid issues by having all of your equipment ready before launching your business.

Candle-Making Supplies

Candle-making supplies are vital to a candle company. You will need supplies like:

  • Soy, beeswax, or paraffin candle wax
  • Dye blocks or drops to dye your candles
  • Wicks
  • Candle containers or jars
  • Shipping supplies
  • Fragrances, such as essential oils
  • Melting pots
  • A thermometer

Budget

Even though you haven’t made any money from your company yet, you should still have a budget in mind to keep your business on track.

A good budget can help you estimate overhead costs, prevent overspending, keep track of inventory, and create a business bank account to keep all of your finances in one place.

Marketing

Engaging businesses bring in customers.

You’ll want to create a business pitch that allows your customers to get to know you.

Include who you are and what your purpose for starting your business is.

If people can relate to your reasoning, they are more likely to buy your products.

Audience

Knowing your audience is key to owning a business.

Some people will be looking for cheap candles that they can buy in large quantities.

Others will be searching for luxury candles that feature high-quality ingredients and have something special to them.

Deciding which market you will focus on will help you determine your business expenses and how much time you’ll need.

Do I Need a License or Certificates to Start a Candle Business?

You do not need state, federal, or local licensing in most U.S. states to start a candle company.

Few states need a general trade license for small, independent companies.

You may register your business name, although it is not a law.

There are more legalities involved in a business if you decide to hire employees.

You will have to get a Federal Employer Identification (FEI) number if you have more than one employee for tax purposes.

If you are the only employee, however, you will add any income from your candle company to your own taxes using your social security number.  

Why You Should Consider Starting a Candle Business As a Side Hustle

Starting a candle company can be a great side hustle.

With benefits like a huge market, simple products, and cheap operating costs, a candle business is one of the easiest side hustles to start.  

Here are a few reasons that a candle company would be a great startup.

  • Affordable Startup with High Profit: Launching a candle company is affordable. You can start up for under $1,000.    
  • Easy Products: Candles are fairly simple and cheap to make.
  • Customization: You can create niche candles to stand out from your competition.
  • Large Market: The demand for candles is high and the market is easy to break into.

How To Start a Candle Business in 8 Simple Steps

You can easily start your own candle business in just eight simple steps.

Step 1: Research

It is vital to study your market before you start.

When crafting your business approach and line of products, explore your target audience, what niches you can fill, and the estimated costs for your company.

Step 2: Build Your Brand

Building your brand before launching products is beneficial.

You can build your brand by:

  • Creating a unique business name and logo
  • Building a reputation to attract customers.
  • Previewing your products to excite customers about the release.
  • Connect with others to give your brand a voice.

Step 3: Decide on Products

What your company uses and sells is up to you.

There is no right or wrong way to make candles and you’ll have plenty of variety.

You can individualize your candles with different wax types and containers.

If you make specialty candles, such as vegan or aromatic candles, use that unique quality to draw customers in.

Step 4: Develop a Business Strategy

Knowing how you are going to run your business is essential.

Having a business plan ensures success.

There are a few specific details you should keep in mind while starting a small business, such as demographics.

For example, most candle shops sell 35% of their inventory during the holidays.

You can maximize your profits by focusing your energy on that time of year.

Step 5: Determine Value

You will need to know your candles’ value to balance your expenses and income.

Larger candles with different scents, colors, and wicks will cost more than those with cheap wax and no special additions.

A good rule of thumb is to price your candles at the cost of materials + your profit margin.

A profit margin is how much you want to make from your candles.

For example, if a candle costs you $5 to make and you want a profit margin of 20%, you should sell these candles for $6 apiece.

Step 6: Establish a Selling Platform

You can sell your candles in various ways.

There are eCommerce sites that specialize in selling products from small businesses.

You can also create a website or selling form on social media.

If you’d rather sell your candles in person, find a local art fair or farmer’s market where you can set up a booth and peddle your wares to people in your community.

Step 7: Make Candles

The fun part of having a candle business is making your candles. Having products to sell is vital in your business.

As you’re starting, make sure that you don’t make more candles than you will sell; it is a waste of time and resources.

Consider taking in pre-orders for your first few batches of candles so you only make exactly as many as you need.

Step 8: Sell

The rewarding part of this process is your first sale.

After putting in so much time and effort to create your new business, you’ll be able to sit back and enjoy the profits your candles can give you.

Things To Consider When Building a Candle Business

Though they may seem unimportant, minor details are often what make or break a new business.

When you think about the little things that could go wrong, likely you’ll catch problems before they happen.

Here are a few things to consider when building your candle business.

Can You Run a Candle Business By Yourself?

If you are up for a slight challenge, you can run a candle business yourself.

However, being the only employee can get exhausting.

As your business expands, you’ll have to do more.

With more orders, you’ll need more labor and supplies.

You can hire a temporary employee or a freelancer to help you keep up with busy seasons even if you don’t hire one year-round.

How Will Your Business Expand?

It’s always a good idea to keep in mind how you’ll expand your business in the future.

If you have ideas about how to continue growing your customer base, such as with expanded shipping, deals and sales, or customizable options, you’ll be able to grow your company effectively.

INSPIRATION: Candle Business Ideas

There is plenty of room for customizing your brand.

Here are a few ideas to make your candle business stand out.

  • Aromatherapy Candles: Aromatherapy candles are common with meditation, relaxation, or enhancing a room’s aroma.
  • Niche Candles: You can make specialized candles for occasions such as weddings or birthdays, as well as candles with different themes.
  • Molded Candles: You can create unique molded candles by pouring wax into a mold or encasing a candle in a molded resin base.

Frequently Asked Questions

If you still have a few questions, you need not worry.

Many other people have the same questions as you do.

Refer below to the frequently asked questions to gain more insight.

What types of candles sell best?

The most common favorite is a vanilla-scented, 100% soy wax, 8-ounce candle in a jelly jar.

This is a great place to start when making your first candles.

Are candles in high demand?

Candles are in high demand as of 2022, with retail candle sales estimated at $3.14 billion annually.

Experts believe the market to reach $9.9 billion by 2028.

With that projection rate, no doubt, candles are in high demand and will stay that way.

Similar Businesses to Consider Starting

Suppose candle-making isn’t your forte.

There are plenty of other businesses you can launch, including those considered somewhat unusual.

Wrapping Up

Any new business requires time and effort, but if you love what you do, it won’t feel like work at all!

Starting your own candle business might not be easy at first, but it can be a great way to supplement your income if you’re looking for a way to beat the rat race.

And who knows?

Maybe your candle business will become a full-time gig.

Have you started your own business?

Tell us your story in the comments below or ask any questions you have about creating a candle business.

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