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How To Start A Candle Business


Starting a candle business can be a great way to turn your love of candles into a successful career.

Here are ten steps to get started building your candle business.

10 Steps to Launching a New Candle Business

1. Choose Your Type of
Candle Business

The first step in launching a candle business is to identify the type of candle business you want to launch. You might choose from the following types among others.

Manufacturer: You will be responsible for making candles from scratch.

Retailer: You will sell candles that you purchase from manufacturers to customers.

Wholesaler: You will purchase candles from manufacturers in bulk and sell them to retailers.


2. Name Your Candle Business

Give your candle business an identity so people will think of it as a well-known and respected brand. You can take the name of your candle business from your industry, focus on a geographical location, or use your own name among other options.

The main goal for naming your candle business is to make it sound appealing and trustworthy so customers will want to purchase your candles.


3. Determine Your Candle Business Model

There are several possible types of business models for a candle business including:

  • Direct sales: Sell candles directly to customers through your website, home parties, or in-person events.
  • Dropshipping: Take orders from customers and have them shipped directly from the manufacturer.
  • Brick and mortar: Operate a physical store where customers can purchase your candles.
  • Online store: Sell candles through an online store such as Etsy or Amazon.

No matter which model you choose, make sure that it aligns with your business goals and the products you offer.


4. Choose a Legal Form for Your Business

By incorporating your candle business, you will limit your liability. You can incorporate as a Limited Liability Company (LLC), a C Corporation (C-Corp), or an S Corporation (S-Corp). Or you can operate as a sole proprietorship.

The business structure you choose for your candle business will determine the amount of taxes you pay and which state or federal tax forms you need to file.

Read our article comparing the most common candle business structures.


5. Write a Candle Business Plan

All candle business owners should develop a business plan. 

A business plan is a document that outlines the goals, strategies, and operations of a business. It can be used to secure funding from investors or lenders, as well as to guide the day-to-day operations of the business. The business plan should include information on the company’s products or services, market analysis, financial projections, and management team among other things.

Read our article about how to write a candle business plan.

Create a winning business plan quickly & easily with Growthink’s Ultimate Business Plan Template. Complete your business plan and financial model in hours.

6. Apply for the Necessary Permits and Licenses

There may be required licenses and permits you need to obtain before launching your candle business.

For example, if you sell candles online, you will need to obtain a sales tax permit from your state’s revenue department. You will also need to comply with labeling requirements for candles.

You must also register your candle business as a legal entity with the state where you plan to do business. Then, you can simply file an online form through your Secretary of State website.

Registering with the federal government is also essential so you can properly pay taxes for your business. You will also need an Employer Identification Number (EIN), which you can apply for at the IRS website if you plan to hire employees.

Read our article about obtaining the proper candle business licenses.


7. Determine Your Budget & Apply for Funding as Needed

In developing your candle business plan, you will figure out how much funding you need to start and grow your business.

If you have personal funds to invest in your candle business, you may consider taking advantage of that. In addition to your funds, other forms of potential funding for your candle business include traditional bank loans, SBA loans, credit cards, angel investors, and family and friends.

Read our article about the costs associated with starting a candle business to help you determine if funding is needed. 


8. Get the Technology & Software Needed to Run Your Business Efficiently

When you start your candle business, it’s essential to have the right technology in place to maximize efficiency. You definitely need a computer with Internet access and accounting software for tracking expenses and revenues. 

You may also want to invest in a point-of-sale (POS) system to help streamline candle sales and inventory management. A POS system can also track customer data, which can be used for marketing purposes.

You will also need a good eCommerce platform if you plan to sell candles online. That way, customers can purchase your products 24/7 from the comfort of their own homes.

Shopify is a popular eCommerce platform that offers everything you need to start, run, and grow your candle business online. Plus, it’s easy to use, even for those with no technical experience.


9. Market Your Candle Business to Potential Customers

Before you start selling your products, you have to let the world know you exist. The first step is to create a website so people can learn more about your products and how they benefit them.

After you launch your website, start promoting it through social media channels like Facebook, LinkedIn, and Twitter. Also, consider networking with other people in the candle industry through social media and blogs so they can help share your business. 

You also need to start gathering the materials needed to execute on your promotions strategy, which is your strategy for attracting new customers. Candle businesses should consider the following promotional strategies for which you should start getting prepared: 

  • Develop a social media strategy
  • Create informative blog posts
  • Design eye-catching print materials
  • Develop an email marketing campaign
  • Participate in trade shows and other events

Read our article about how to market your candle business for more tips.


10. Get New Customers & Grow Your Business

When you promote your products, you’ll start to get interest from potential customers

Make sure you’re ready to serve these customers. Also, be sure to establish systems to ensure consistency and reduce costs. And be sure to find and train the right people to help you grow your candle business.

Read our article about how to effectively grow your candle business to learn more.

Create a winning business plan quickly & easily with Growthink’s Ultimate Business Plan Template. Complete your business plan and financial model in hours.

FAQs on Starting a Candle Business

The candle industry is valued at $3 billion and growing. Candles are popular gifts and there’s a style of candle for everyone. So, if you have a passion for candles and want to be your own boss, starting a candle business could be a great option for you.

To start a successful candle business, you must have a strong understanding of the candle industry, the types of candles available, your target market, and what they’re looking for. 

You also need to be able to develop creative marketing strategies to promote your products. Additionally, it’s important to have systems in place to manage inventory, fulfill orders, and track finances.

Starting a candle business online from home is a great option because it’s relatively low cost, and you can get started quickly. Make sure you have the right technology and software in place to manage your business efficiently. You must also create a website and promote your business through social media and other channels.

When starting a candle business from home, it’s also important to have systems in place to manage inventory, fulfill orders, and track finances. Plus, you need to find a way to stand out from the competition such as a stellar marketing plan.

  • Educate yourself about the candle industry.
  • Find your niche and target market.
  • Develop creative marketing strategies.
  • Create systems to manage inventory, fulfill orders, and track finances.
  • Promote your products through social media and other channels.
  • Stand out from the competition.
  • Be patient and consistent

A simple checklist to use when starting a candle business is as follows:

  1. Choose Your Type of Candle Company: This should be based on what you are best at, how much experience you have, and how much time you’re ready to invest. Remember to keep your interests, skills, and experience in mind at all times.
  2. Name Your Candle Business: This should be done with care, as your brand is important for attracting the right customers. A simple, memorable name will go a long way.
  3. Choose a Legal Form for Your Business: Whether you choose to become a sole proprietorship, partnership, LLC, corporation or another option will depend on your business. Ensure that you are aware of all the implications of each type.
  4. Determine Your Candle Business Model: Determine how your business will make money. Will you sell products, services, or a combination of both?
  5. Write a Candle Business Plan: Your business plan will also help you determine what your start-up costs will be and will provide a roadmap with which you can launch and grow.
  6. Apply for the Necessary Permits and Licenses: In most locations, you will be required to apply for a business license and/or permits before you can begin operations.
  7. Determine Your Budget & Apply for Funding as Needed: You will need to know how much money you have to spend on all of your business-related expenses before opening any doors. If needed, apply for a small business loan or other funding options.
  8. Get the Technology & Software Needed to Run Your Business Efficiently: You need to have the right tools in place to succeed. Implement software that will help you manage your time, contacts, and business operations in general.
  9. Market Your Candle Business to Potential Customers: A solid marketing plan will be crucial to your success. It should focus on attracting the right customers so that you can provide them with the products they truly need. 
  10. Get Customers & Grow Your Business: Once you have a solid marketing plan, it's time to actively pursue and secure those who could benefit the most from your products.


Start a Successful Candle Business

Starting a candle business is a great way to be your own boss and turn your passion into a thriving enterprise. Create an eCommerce website, educate yourself about the industry, and find your niche and target market. With the tips in this guide, you can light the way to a bright future for your candle business.


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