Are you wondering what type of business is candle making? If YES, here is how you can classify a candle-making business.
A candle-making business is a product manufacturing business that makes and sells candles either directly to consumers, or indirectly through resellers, such as boutiques, gift shops, and other arts and crafts retail venues. These businesses focus on creating particular types of candles.
Larger operations in this field often make candles in big batches, leveraging machinery to produce higher volumes. Have it in mind that these businesses are started and managed in various ways. Note that smaller operations can be started and run out of a home kitchen, with business owners selling at a booth at craft shows and flea markets.
Business owners can also choose to start and run actual storefronts or shops. Note that some also choose to sell through boutiques and gift shops, while others sell online through their website or Etsy.
Have it in mind that the revenue made by these businesses will more or less depend on that business’s size, their number of employees, any specialty areas that the business chooses to specialize in, and also how the business chooses to sell candles, like selling wholesale or retailing directly to customers.
Howbeit, since the average price of candles can range from a couple of dollars to $20, it’s crucial to have several suppliers where you can monitor their prices and also exploit the discounts to make the most profits.
In addition, note that a business that makes unique types of products that no one else has or fills a certain need in the marketplace can gain more success by billing higher prices. A typical full-time successful candle maker might amass $25,000-$50,000 per year.
Nevertheless, note that you can still go past this amount by selling to a major reseller. Additionally, consider franchising your business once you have become successful enough that others are eager to leverage your business model.
What Industry Does Candle Making Fall Under?
Candle making falls under the candle manufacturing industry, and this industry manufactures scented and unscented candles. According to reports, the Candle Manufacturing industry molds wax to make candles of all shapes, scents, and colors.
Even though candles have lost their value as a source of light, they have witnessed a rebirth as home décor and accessory products, thereby sustaining industry demand.
As a home décor product, candles have become extremely discretionary purchases. According to reports, most consumers sourcing candles domestically use the product within a week of purchase. The increasing disposable incomes and changing lifestyles of consumers have allowed them to spend more money on candles with better shapes and exotic aromas, which is also augmenting this global market.
Owing to projected improvements in trade conditions over the five years to 2025, the Candle Manufacturing industry is expected to gain from the ever-rising demand for candles domestically and abroad.
Have it in mind that industry revenue gains are expected to be induced by rebounding per capita disposable income, consumer expenditure, and a sustained preference for candles as scented additives to rooms and households.
How to Start a Candle Making Business
Whether you intend to sell directly to customers through your website or leverage resellers, boutiques, and gift shops to display your creations, note that you will have to go through the same steps. The steps include;
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Understand What Will Make Your Business Different
First and foremost, you have to realize that competition in the candle-making industry is very intense. Owing to that, the first step in starting your business is to understand what your unique selling point is to enable you to stand out from the crowd.
Do you want to be known for the most creative designs? High-end containers? Unique scents? Or do you intend to make the most affordable candles? Are you planning on delivering every product in special packaging? Do you intend to use a crazy naming scheme for your candles?
Have it in mind that all these elements will help to create something interesting about your business, which is a flair you can build your brand on.
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Know Your Initial Costs
You can start a candle-making business for a relatively small investment, and many people in this industry started with just a few products and some raw materials. However, at the barest minimum, you will need to invest in:
- Wax – Paraffin, gel, soy, beeswax, etc.
- Wicks
- Melters – Either a double boiler or more industrial-strength equipment
- Jars – Or other creative containers
- Molds
- Dyes
- Fragrances
- Packaging supplies
- Measuring instruments
- Marketing assets – Website, ads (online and off), social media, business cards, etc.
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Make Everything Legal
Note that this is one aspect of starting this business that throws so many people off guard. When starting this business, you have to form your business as a legal entity. Without doubts, an LLC is a common choice, but so are sole proprietorships.
It will more or less depend on the size of business you hope to form. Also note that you have to register for taxes because regrettably, no one gets to run a business for free. Additionally, there may be certain licenses and permits you have to obtain, depending on your location.
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Set Up a Safe and Efficient Workspace
Note that this is very important especially if you are starting your business in your home. Have it in mind that several zoning laws may require certain setups for safety reasons since you will be working with a heat source to steadily melt your wax.
You will need a space that is luminous with adequate space to put up an assembly line/assembly process. Also, note that you will need room for all your raw materials as well as a climate-controlled space for your finished candles. If you witness an increased demand for your product and are ready to upgrade to industrial wax equipment, you’ll require adequate room to use those machines safely, too.
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Connect with the Best Vendors
Without doubts, a candle-making starter kit may be sufficient to help you start this business, but if your business grows, you are going to require more supplies than you can profitably source from your local hobby store.
Owing to that, you will need to locate some reliable wholesale vendors that can deliver the quantities and quality you expect. Have it in mind that your final products are only as nice as the materials that go into them, therefore ensure your vendors suit your requirements.
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Start Making Candles
It is recommended that you start small. Agreeably, you may have ideas for 15 or 20 various candles, ranging from the very basic to the very beautiful. You may decide to make pillar, floating, and votive candles with numerous colors and artistic jars.
However, you wouldn’t want to get awed right at the beginning. Therefore, it is necessary to start with an initial product line that is easy to manage and evolve.
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Start Selling Your Candles
In this line of business, not every new entrant gets an immediate “in” with well-known distributors; therefore, you are likely going to have to do the legwork on your own.
Take your time to locate local craft shows and gift shops that are open to your products. Note that this is a wonderful way to start since people can physically see your products, hold them, smell them, and start to imagine them sitting in different rooms in their homes.
You should also consider making your website. Although this can take some extra work to set up, but when done right, it will keep working for you night and day, every day.