How to start a candle business

You need to execute market research, develop a business plan, and register your candle business in order to start a candle business. For details on these steps and others you can take to start a candle business, use this guide:

• Execute market research. This is an essential first step in starting a candle business and should be done thoroughly.

  You first need to do market research on other candle businesses and candle products in general. It is critical to do a lot of research on your local business market; this means finding out the consumer base in your area, as well as any competitors that may exist.

  Many communities have stores whose sales primarily revolve around candles. There are also places like apothecaries that make a lot of candle sales. You need to digest your competition in the local community and decide if you are going to open up or plan to open a brick-and-mortar location or if you are going to stay confined to online sales.

  If your business is strictly online, you still need to do this research. Find out how other similar online businesses are operating, what their operating costs are, how much they charge for their candle products, and how much profit they are pulling in. All of this is critical information that can help you organize and strategize better, giving your online business a chance to really flourish.

  Another effective strategy to learn about candle competitors is to talk with their customers. Here you can get information on what they are doing right and what they are doing wrong, and at the same time, you'll be doing customer research. This will be of extreme value for crafting your business plan and later on when deciding on marketing strategies.

  Reach out to candle consumers via social media or do it in person at shops or stores that sell candles. Don't be too intrusive in person, but simply engage in some casual conversation about candles. If you see an opening, you can also mention that you are starting a candle business, and you might just find your first customer this way.

• Develop a candle business plan. Once your market research is thoroughly completed, you can then start to develop your business plan.

  It should cover customer research, competitors, a startup budget, and financial projections for your business.

  Other things you should add include the problems you will be solving for clients and customers, what sets your business apart from the competition, the resources your business will depend upon, and your business's mission statement and vision for the future of the company.

  Your business plan is a very important document for yourself, especially if you are looking to get a small business loan or investors in your company. You also need to figure out exactly what services you will offer or whether your candle business is strictly product-based.

  Providing more products and services can help you stand out from competitors and create multiple revenue streams within the business; however, it is also most likely going to increase your operating costs.

  Just be sure to think all of these important issues through when starting to develop your business plan.

  At this stage, you should also choose a name for your business. Pick something catchy, memorable, and candle-related, if possible.

• Register your candle business. You need to register your candle business and obtain an EIN. Also, familiarize yourself with the legal requirements for a small business in your city or state.

  You might want to consider applying to become a limited liability company (LLC). If you operate as an LLC, your personal and company information is entirely separate. While this changes your tax status, it does protect you from personal losses based on the company's performance.

  An LLC is also a good option because once your candle business starts to grow, you'll be able to hire employees to help you.

  Requirements will vary from state to state, so it's important to do your own research into your specific state's requirements. Business insurance is necessary to protect your LLC from liabilities and other possible claims.

  It is recommended that you seek the advice of an experienced insurance agent to determine all the necessary insurance policies you should get for your candle business.

  Once you have this determined, you'll also want to get a Federal Tax ID number. This helps you get a license to run your business. This is also referred to as an EIN or Employer Identification Number.

• Prepare to make your candles. Consumers tend to want candles that have unique designs or fragrances. It is important to determine what types of candles you are going to be selling and include this info in your business plan in order to take the next step of making the candles.

  Even if you lack professional design credentials, you can still make designs for your candles using computer software programs like Photoshop or Canva to create simple but appealing designs for your candles.

  If you are looking to accomplish more sophisticated designs, but lack the skills to do so, consider hiring a professional. This will, of course, increase your operating costs but can be helpful to make your candles stand out in an already very crowded marketplace.

  Next, you need to source your product materials. You can find candle holders through bulk item suppliers. You can also look into restaurant wholesalers who provide items like mason jars or decorative glass for unique glass candle holders.

  You might also want to consider using recycled items, such as wine bottles and other glass receptacles. This can help you to cut your costs, especially when first starting out, and it also means your business will be environmentally conscious.

  When it comes to the wax used in candles, there are many different options. Beeswax, soy, paraffin, and granulated wax are just a few of the options you have. You should try out different kinds of wax to see if you like their scent and texture and to find out if they will lend themselves nicely to the candles you want to create.

  The candle wax supplier you go with will also be able to recommend certain wicks, dyes, and scents that are appropriate compliments to the type of candle wax you choose.

  Packaging is another facet to think about. This is critical if you are starting an online candle business and are going to be shipping your products. And even if you are thinking of opening a store or selling to a store, classy packaging can be a good idea.

  When shipping your candles, you want to consider the proper packaging that will keep them safe during transit. Using recycled materials is also a good idea for packaging and might attract even more customers to your business.

• Market your candle business. Make use of all of the internet tools at your disposal to market your candle business.

  Social media is an extremely effective marketing tool for your business. You should create social media accounts for your candle business and try to gain friends and followers. You can post about your services and pricing, as well as show actual pictures of your candles and descriptions of their scents.

  Having a large social media footprint will help you grow your consumer base and generate more revenue for your business. Unless you also pay for additional online advertisements, this is a free and great way to market your candles.

  Another online resource you need to take advantage of is a website. This is relatively inexpensive, and if you have some extra cash, you can hire a professional to do a solid website design for your candle business.

  Your website should include your pricing and contact information, as well as things like customer testimonies about your candle products. Make sure your social media business accounts link to your website and vice versa. You should also create a section of your website where consumers can purchase your candles and other related products.

  A way to incentivize your customers to make recommendations to others, or refer you to large clients, like entire companies or stores, is by offering them perks, like free candles and other promotional items.

  If you can enlist social media influencers to market your candles, this can also have a considerable positive effect on the amount of candle sales your business makes.

• Select additional channels to sell your candles. You want to be able to make candle sales through several different channels, not just exclusively on your website.

  Examples of good additional sales channels include Amazon, Etsy, and even Instagram. Doing this will increase your business's exposure online, which in turn will result in more sales of your candles.

  As mentioned, you can also seek to build relationships with local retailers to try to get your candles into their stores. This presents an opportunity to save a lot on shipping costs and to make bulk sales of your candle products.