Starting your business, but before spending any money, you need to be sure there is a market for your candles. Here are some tips on a few things to research:

Identify your target market: Who are your potential customers? Are they young, middle-aged, older? Are they primarily women or men? What’s their income level? Understanding your potential customer base will help guide your product development and marketing strategies.

Analyze your competitors: Look at the other candle businesses, both local and online, that are focusing on the same market. What products do they offer? What are their price points? What do their customers like about them? What do they dislike? This can help you understand what’s already out there and where there might be gaps in the market that you can fill.

Survey potential customers: Once you have a general idea of your product offerings, consider surveying potential customers. This can give you direct feedback on what they’re looking for in a candle, how much they’re willing to pay, and other valuable insights.

Online Research: Use online tools to conduct your market research. This could include using a tool like Google Trends to see how often people are searching for certain types of candles, or looking at social media to see what kinds of candles are trending.

For instance, soy candles have gained popularity in recent years due to their eco-friendliness. Looking at industry reports, attending trade shows, and following industry influencers and blogs can help you stay on top of these trends.

Also, check out online marketplaces like Etsy and Amazon and look at what kinds of candles are selling well, read reviews to see what customers are saying, and look at pricing information.

Remember that the goal of market research is to understand your potential customers and the existing market so you can create a product that meets a need and can compete successfully. It’s an ongoing process, not a one-time task. As you start your business and as it grows, you’ll want to continually reassess the market and your place in it.

Now that you understand who you are selling to, it’s time to define your business concept as it sets the direction for your business and provides a clear idea of what your business stands for. This can include:

Finding your Unique Selling Proposition (USP): As a new candle business, it’s essential to differentiate yourself from the competition. What makes your candles unique? It could be anything from the type of wax you use, the scents, the design, or the overall aesthetic. Maybe you focus on eco-friendly materials, customizable options, or locally sourced ingredients.

Value proposition: Clearly define the value your candles will provide to the customer. Is it relaxation, a unique decor element, a perfect gift, or a scent that brings back memories? This value proposition should be at the core of your business concept.

Define your brand: Your brand is more than just your logo or tagline; it’s the personality and promise of your business. What values do you want your business to embody? It could be quality, luxury, sustainability, or affordability. These values should be reflected in everything from your product design to your customer service.

Think about the customer experience: How do you want customers to experience your brand? This includes everything from the buying process to how they feel when they light one of your candles. Aim to create a memorable, positive experience that will keep customers coming back.

Stay true to your passion: Last but not least, remember why you wanted to start a candle business. Your passion for the craft, for creating something beautiful and enjoyable, should shine through in your business concept. If you’re passionate about your business, it will resonate with your customers.

Take the time to write down your business concept, refine it, and make it as clear as possible. It will serve as a guidepost as you make decisions about product development, marketing, and other aspects of your business. Some tools to do this include a business plan or business model canvas.

Even if you have some experience in candle making, it’s always beneficial to continue learning and honing your craft. One of the most effective ways to do this is by enrolling in a professional candle-making course. Many online platforms, such as Udemy or Skillshare, offer a variety of free to inexpensive courses that range from beginner to advanced levels. These courses not only teach you the technical skills needed for candle making but also delve into topics like safety practices, industry trends, and advanced techniques. In addition, Amazon offers several books on the subject.

In addition to formal courses, watching candle-making tutorials can be extremely valuable. Platforms like YouTube are filled with videos from different candle makers around the world. These tutorials can provide you with a range of techniques and approaches, and they can also serve as a great source of inspiration for your own work.

However, nothing beats hands-on practice. Regularly making candles will help you refine your techniques, discover your unique style, and ensure consistent quality. It’s also the best way to test different waxes, scents, and wicks to find what works best for you and your target market. This is also a time to confirm that running a candle business is something you truly enjoy. Starting a business requires a significant investment of time and energy, so it’s important to ensure that you’re passionate about the work. By immersing yourself in the candle-making process and continuously learning, you can not only develop great products that customers will love but also build a business that brings you fulfillment.

The next step in starting your candle business is to make sure it’s properly registered and legal to operate. It’s important to note, however, that the exact process can vary from state to state, so you’ll need to check the specific requirements for your location. Here’s a general guide to the key steps:

Form a Business Structure: The first thing you’ll need to decide is what legal structure is best for your business. This could be a sole proprietorship, a partnership, a limited liability company (LLC), or a corporation. Each of these structures has different implications for liability, taxes, and administrative complexity. Many small business owners opt for an LLC because it provides personal liability protection and has fewer administrative requirements than a corporation.

Related: Comparison of business structures

Register Your Business Name: Next, you’ll also need to register your business name. This process will vary depending on what business structure you pick. Sole proprietors and partnerships will often be required to register a “Doing Business As” (DBA), while corporations and LLCs register with the state. During this time, it’s also a good idea to check if the name you want is available as a web domain, even if you’re not ready to set up a website yet.

Related: Finding a domain name for your business

Obtain Business Licenses and Permits: Depending on your location and the nature of your business, you may need certain licenses or permits to operate. This could include a business license, sales tax license, Employer Identification Number (EIN), and in some cases, even a home-based business permit.

some trends that all candle makers should be aware of and embrace. An increased focus on sustainability is influencing all industries, including candles. Candlemakers can embrace this trend by reusing wicks, repurposing jars, and sourcing sustainably farmed wicks and materials.

Related: State Gudies to business licensing

Remember, this is a general guide. For detailed information tailored to your state, you should consult the guide we have available on the steps to register a business in every state. It’s also advisable to consult with a business lawyer or accountant to ensure you’re meeting all the legal and financial requirements for your business.

Many suppliers won’t give pricing information until the business is officially set up, so now that the business has been registered, it’s time to begin finding suppliers. Some tips on finding good suppliers include:

Determine Your Needs: Before you start looking for suppliers, clearly define what you need. This includes the type and quantity of wax, wicks, fragrances, dyes, containers, and any other materials you’ll use.

Research: Start by conducting an online search for suppliers. You can also check trade publications or attend trade shows for candle supplies. Look for suppliers who specialize in candle-making materials, as they will have a wide selection and deep industry knowledge. Some candle supply stores will have minimums, so another alternative are craft stores like Hobby Lobby or Michaels, but they aren’t typically as high quality, which may be fine in the beginning while starting out.

Samples: Once you’ve identified potential suppliers, order samples of their products. This allows you to assess the quality before committing to a larger order.

Reliability: Check the supplier’s reputation. Look for reviews or testimonials from other customers. You want to ensure they deliver on time and provide good customer service.
Cost: While cost is a factor, it shouldn’t be the only one. Choosing the cheapest supplier might mean compromising on quality or reliability, which can cost you more in the long run.

Local vs. Overseas: You may be considering whether to source locally or from overseas. While overseas suppliers might be cheaper, there can be issues with communication, shipping times, and customs.

Remember, your suppliers are a key part of your business. Take the time to find reliable ones that provide quality materials and are a good fit for your business needs.

Things are starting to get real, and it’s time to make sure you have the funding in place to get started.

Fortunately, a candle business can be very inexpensive to start, so if you have enough savings, you may choose to fund the business yourself. This is the most straightforward way to finance your business, as it doesn’t involve interest or sharing your profits.

If you need some additional investment to get started, there are a few options:

Friends and Family: You might consider borrowing money from friends and family. They are more likely to trust you and may offer more favorable terms than professional lenders. However, this can lead to strained relationships if the business doesn’t go as planned.

Small Business Loans: Many banks and financial institutions offer conventional financing or Small Business Administration guaranteed loans designed for small businesses.

Crowdfunding: Platforms like Kickstarter and Indiegogo allow you to raise money by pre-selling products or offering rewards to backers. This can be a great way to raise funds and build a customer base at the same time.

Remember, each funding option comes with its own set of advantages and disadvantages. It’s crucial to carefully consider each and choose the one that makes the most sense for your business and personal situation.

Related: Finding the money to start a business

Setting up operations for a candle business involves several considerations based on your target market and business model. Here are a few things to consider:

Home-Based Operations: Many candle business owners start their operations from home, especially if they are working on a smaller scale or just starting out. This eliminates the cost of renting a separate space and allows you to work flexibly. However, you need to ensure you have enough space for production and storage. You also need to check local zoning laws and HOA rules, as some places have restrictions on running a business from home.

Renting a Commercial Space: If you are planning a larger operation or if your home isn’t suitable, you may need to rent a commercial space. This could be a retail space if you plan on selling directly to customers, or it could be a studio or warehouse for production and storage. When choosing a space, consider factors such as size, layout, cost, location, and accessibility for deliveries.

Shared Workspaces or Makerspaces: Another option could be a shared workspace or makerspace. These are communal spaces where small business owners can rent a desk or a workshop. They can be a cost-effective solution and offer opportunities for networking and collaboration. However, they may have limitations on the type of work and the hours you can operate.

Online: If you’re planning to sell your candles online, your location needs might be minimal. You may only need a space to create and store your candles and a small area to manage packing and shipping.

Remember, safety is paramount when making candles, so your space needs to be well-ventilated and equipped with fire safety equipment. Also, as your business grows, your space needs might change, so it’s important to stay flexible and reassess your situation as needed.

Determining pricing is a key aspect of your business strategy and can significantly impact your profitability. Some tips on pricing a candle business include:

Cost of Goods Sold (COGS): After working with your suppliers, be sure to calculate the cost of producing each candle. This includes the cost of all materials (wax, wick, fragrance, dye, container), direct labor costs, and any other direct costs associated with the production.

Overhead Costs: Next, factor in your overhead costs. These are the ongoing expenses of running your business that isn’t directly tied to the production of each candle, such as rent, utilities, insurance, and marketing. Determine your monthly overhead and divide it by the number of candles you expect to sell in a month. This will give you the amount of overhead cost to allocate to each candle.

Profit Margin: Decide on the profit margin you want to make on each candle. This is typically expressed as a percentage of the selling price. For example, if you want a profit margin of 50%, you would price your candles at twice the cost to produce them.

In the video with Baroque Candle Co., Natalie recommends selling candles at three times the cost of goods.

Competitor Pricing: Research what similar products are being sold for in the market. This gives you an idea of what customers are willing to pay and helps ensure your pricing is competitive. However, don’t undersell your products just to match a competitor’s lower price point. If your candles offer unique features or higher quality, it’s reasonable to price them higher.

Value Perception: Pricing also affects the perception of your candles. If you price them too low, customers might question their quality. If they’re priced too high, it might deter potential buyers. You want to strike a balance where customers perceive your candles as good value for the money.
Remember, pricing is not a one-time decision. It’s important to revisit your pricing strategy regularly and adjust as necessary based on changes in costs, competition, and customer feedback.

Marketing is crucial for any business, including a candle business, as it helps you reach your target audience, establish a brand, and generate sales. While there are a lot of ways to market a business, let’s go over some tried and true methods.

First, having a well-designed, user-friendly website is vital. It serves as a platform where you can showcase your products, tell your brand story, and facilitate purchases. In today’s digital age, a majority of customers first interact with a business online, so your website is often the first impression they get of your business.

If you plan on an online-only business, having a great website is even more important.

Social media marketing is another powerful tool. Platforms like Instagram, Pinterest, and Facebook are particularly effective for a candle business because they’re visual-centric. You can post appealing photos of your candles, share behind-the-scenes glimpses into your candle-making process, and create engaging content to build a relationship with your audience. You can also use these platforms to collaborate with influencers in your industry for greater reach.

While online marketing is important, it’s also a good rule not to overlook offline marketing strategies. Participating in local craft shows or farmer’s markets is a great way to engage with your local community, build brand awareness, and get direct feedback from customers. Collaborating with local businesses or hosting workshops are also effective ways to gain visibility.

Whether operating online or off, email marketing can be a powerful tool to stay connected with your customers. Sending newsletters with updates, new product announcements, or special offers can help keep your brand top-of-mind for customers. According to the National Candle Association (NCA), in the U.S., 35% of all candle sales occur during the Christmas/holiday season, so having a timely email should help generate sales that may not have happened without it. [3]

Last, remember that word-of-mouth is one of the most effective forms of marketing. Providing excellent customer service and quality products will encourage customers to recommend your business to others. Excellent customer service, seeking customer feedback, and showing appreciation for their support can result in repeat business and referrals.

In conclusion, a multi-pronged approach utilizing both online and offline strategies can help effectively market your candle business. It’s also important to regularly evaluate and adjust your marketing strategy based on what works best for your specific business and target audience.

As you move closer to launching your candle business, there are likely a few loose ends to tie up. While this list may not include everything you still need to do, here are some common things to check on that I recommend to new candle business owners:

Insurance: Don’t underestimate the importance of having the right insurance. At a minimum, you will need general liability insurance to protect against claims of bodily injury or property damage. Additionally, product liability insurance is crucial in case a customer claims to have been harmed by one of your candles. Depending on your business structure and location, you may need additional types of insurance.

Related: What types of insurance do candle businesses need?

Bookkeeping: Establish a solid bookkeeping system from the start. Accurate financial records are crucial for tracking your business performance, preparing for taxes, and making informed business decisions. You may choose to do this yourself using accounting software, or hire a professional accountant.

Related: Setting up the bookkeeping for your first business

Payment Systems: Make it easy for customers to buy from you by accepting credit cards. There are many payment processors to choose from, so do your research and choose one that offers good rates and reliable service. Also, consider offering other payment options like PayPal or Apple Pay to cater to different customer preferences.

Hiring Employees: If you need to hire employees, take the time to understand employment laws and best practices for hiring and managing staff. Make sure you’re ready to take on the responsibilities of payroll, employee benefits, and legal compliance.

Related: How to hire your first employee

Continuous Learning: Stay curious and keep learning. The candle industry is constantly evolving with new trends, techniques, and regulations. Attend workshops, follow industry blogs, and join candle-making communities to stay informed.

Adaptability: Be ready to adapt to unexpected challenges. Running a business is a dynamic process, and your ability to adjust your plans and strategies when necessary can be a key factor in your success.

Self-Care: Don’t forget to take care of yourself. The demands of running a business can be intense, and it’s important to take time for rest and relaxation. Don’t hesitate to seek help when you need it.