Suppose you are tired of the regular nine-to-five office life, and you want the perks of the entrepreneurial life. If you want to be your own boss, be free to do the work you enjoy, and have more time to spend with family, then learning how to start a candle business is the way to go.
Everyone wants their homes to smell nice and feel cozy, and lighting candles is an excellent way to make this happen.
With many Canadians using candles in their households to relax, set a mood, or even cover odor, starting a candle business in Canada is a good bet, and you can make some extra money by selling candles.
If you already know how to make candles and wonder how to start a candle business in Canada, this article is a perfect fit. Follow along to learn how to own a candle business in 10 easy steps.
Without skipping a beat, let’s jump right into it.
How to Start a Profitable Candle Business in 10 Simple Steps
Learning how to start a candle business is not as difficult as it might seem. The candle business takes a relatively small investment to start in finance, time, and effort.
However, it is a great way to turn your hobbies and interests into a career, expressing your creativity while delivering great products.
Starting your candle business might look like a lot of work, but it is gratifying in the long run. Some parts of this guide are easier than others.
Before you start, consider the following steps and give your candle business the best shot.
1. Do Market Research
Before you start your candle business, think about your target audience. Who are those people you want to reach with your marketing efforts? Who will be most interested in what you offer and most likely to convert to customers?
These are the target market you need to focus on. Think about where your ideal customers will go if they want to buy your candles and how much they are willing to spend on a candle.
Determining your target market will help you know where to best source your candle materials, what branding you should use, and how the packaging will look. Once you have settled on a category, you will know what kinds of candles you want to create.
The target markets are categorized into four:
1. Prestige: These kinds of candles are known for their high pricing, premium packaging, unique fragrances, and brand storytelling. They are the new and quickly growing part of the candle market.
They run a price of $30 to $80 and sometimes may cost as high as $185. They are found at luxury stores like Saks Fifth Avenue and Nordstrom. An example is the famous Louis Vuitton perfumed scented candle.
2. Mid-Market: These kinds of candles appeal to a broad range of Canadians. They have unique scents like grapefruit or rose water. They cost lesser than the Prestige as they run around $10 per candle. They are primarily found in retail outlets like Target and Tj Maxx.
3. Mass Market: These kinds of candles are the most affordable as every Canadian can buy them. They cost around $5 to $8 per candle. Vanilla and ocean breeze are popular scents in this candle market. Their scents are always more traditional and widely loved, and they are produced and sold in enormous quantities.
4. Handmade: Not so common as others, these candles are expensive because they are handmade directly for a customer. They are usually more creative and are found on sites like Etsy or other individual shops. Each candlemaker sets different prices for their custom-made candle. However, they run around $10 to $100.
2. Build Your Brand
There are many competitions in business, and the candle market is no different. It would be best if you created something that would stand out from the crowd. It would be best if you built your brand, which is peculiar to you alone, as there are many candle business ideas.
Having your brand makes it easier to build an audience and create better products for your customers. Take your time and decide on what you want for your business. Logo, brand identity, and color scheme are crucial for a candle business.
When building your brand, consider the following:
1. Your Scents: Having a unique scent is crucial for the candle business as it will make your brand stand out. Look for things that others won’t find anywhere, and get creative, exciting, and sophisticated with your choices.
There are plenty of scents to choose from. It’s also possible to create a custom blend. Developing a new mix will carve your space in the candle market.
2. Brand Story: One quick way you can connect to buyers is through your story. A brand story shapes your personality and communicates your brand. Brand stories are often intriguing, captivating, and honest in the candle business.
Your brand story should be able to deliver a feeling that drives people to actions like buying, donations, or signing up.
3. Visual Identity: Photography, logos, social media, and packaging are great ways to influence how people feel about your candle business. Pay attention to the aesthetics of your candles. Canadians often choose to use candles for home décor complement, so you need to create a candle in line with your audiences’ choices.
3. Create a Candle Business Name
Finding the perfect name for your business can be a challenge. You have to look for a name that resonates with the customers. One that is memorable and relevant to your products. Look for catchy names that will get stuck in customers’ minds.
Be sure to keep it simple and short and easy to pronounce. Difficult business names that are hard to remember and pronounce will miss out on free word-of-mouth marketing.
Also, check if your desired name is still available. You can check for it on the government’s website. You can also do a simple Google and trademark search. If your chosen name is free and clear, quickly reserve your social media handles and domain names before someone else does.
4. Choose a Business entity
A business entity refers to how the business is legally organized to operate. Choosing the correct business entity is crucial in starting a candle business. It is a decision that should not be taken lightly.
The common forms of business entities are the sole proprietorship, partnership, limited liability company (LLC), and corporation. They differ from each other and have their pros and cons.
The sole proprietorship is the most accessible entity to start and the least expensive. However, should anything happen to the candle business, maybe if you are charged with a tort suit based on negligence on your part, you will be liable.
Partnerships open you up also to unnecessary personal liabilities. If your partner runs off with cash from the business or does something to get your company sued, as their business partner, you are liable to pay.
The corporation might be a better choice as it reduces liability risk. Corporations separate the business assets from your personal assets. So if the corporation gets sued or something happens, and it cannot pay debts, you are not personally responsible for paying them back.
However, corporations are complicated and not easy to start. It requires more administration.
The LLC gives you the ability to operate as a sole proprietor with the liability of a corporation. It is also able to protect you from certain debts and business-related lawsuits. It is pretty inexpensive to run.
If you are unsure which business entity to go with, consider consulting a business attorney or a tax expert, or you can contact me directly. I would be glad to help you.
5. Get Permits and Licenses
When people look into how to start a candle business, this part might be a little challenging. Although there are no specific licenses or permits for a candle business, there are general registrations at the federal, state, and local levels that you might need for your candle business.
You might need to obtain an Employer Identification Number (EIN) for tax purposes. You might also have to get your local business license, sales tax permit, occupancy permits, etc., for your candle business.
Don’t let this aspect overwhelm you; get the help of a professional to make things easier for you. Getting business insurance is also essential. Check with a business lawyer to ensure your business is rightly covered.
6. Build Your Online Store
Online market sites like Amazon might seem the best place to sell your candles, but they are not. Such marketplaces charge fees that cut deeps into your profits, and they won’t even let you express your brand as you want.
It is best to open your personal online store, a place where you can sell your candles. Your personal online store acts as a digital home for your candles and will be more profitable for you. You can choose to build your own online store at the Shopify App Store.
7. Find Financing
It is one thing to come up with a great business idea, and it’s another thing to get funding to start the business. Of course, it takes money to make money. Starting a candle business is very inexpensive as it costs significantly low. You can create as small as you want.
You will need money to pay for marketing, insurance, production, supplies, legal counsel, etc. You will need to sort for business funds.
Explore different financing methods, including loans, equity financing, grants, and crowdfunding. To get a loan, you must have good credit and be willing to invest 15-25% of the total money towards the startup costs.
Suppose you need other forms of funding. There is the business credit card, where you can use your business credit card in Canada to purchase items for your candles and or take a credit card loan against your candle business.
And also, startup funding allows you to look out for a community of funding experts to help you find financing for your small business or search for startup funding online and apply for it. With over 10 thousand small businesses in Canada, it is easy to find financing.
There is also the equipment and goods financing. Depending on your needs, you can locate suppliers online and even offline and apply for equipment financing.
With this, the suppliers sell this equipment and give it to you on loan, and you pay it back after sales or at an agreed time. Asset financing platforms online in Canada are many, and you can apply online quickly and fast.
Learning how to start a candle business would be easy to accomplish with the funds available.
8. Create a Marketing Plan
How do you intend to sell your candles? Word of mouth marketing is ideal, but you cannot rely on it alone. Free or low-cost marketing is an excellent way to start.
A robust and comprehensive marketing plan can contribute to your business’s success. Think of the selling points of your candles. What makes them unique from other candles? Do they last longer? Smell nicer? Were they made from more sustainable materials?
Knowing your selling point is how you can best present your message to potential customers.
Most people sell their candles online. Social media is lucrative and cost-effective. It allows people from all over the world to access your candles. Instagram, Pinterest, Email marketing, content marketing, and subreddits are excellent places to start your marketing plans.
9. Write a Business Plan
Successful businesses have a concrete business plan. Your business plan guides your entire operation. It defines your strategy, objectives, and goals, pinpoints challenges, and helps you analyze your business before you launch.
Your business plan should include your desired target audience, strategies for reaching your chosen niche, and general marketing ideas. Most banks will require you to have a business plan if you must get a loan from them.
Create a business plan that is Specific, Measurable, Achievable, Relevant, and Time-based (SMART). This helps you create objectives that are attainable within a specific time frame.
It eliminates generalities and guesswork, makes it easier to track your progress, identifies missed milestones, and helps you set a clear timeline.
10. Make Candles to Sell
After taking care of all these complex and technical parts of your candle business, start making your candles to sell. Tap into your mind of creativity and be on your way to starting your candle business.
Choose the type of candle you want, determine your target audience, sort out your branding, and start making candles that will appeal to your customers and bring them happiness.
Starting a Profitable Candle Business in your Local Community
You can quickly create a successful home business making candles and market your products to your local community. The basics you need to know to start a candle business and publicize it in your local town/city:
- Learn how to design a well-organized and efficient workspace and choose the type of candles that sells well
- Create a candle brand that is both appealing and memorable
- Develop the proper packaging and labeling
- Choose your selling locations based on traffic flow and other factors
- Market your product through specialty shops, fairs, online sales, candle shows, gift shops, and other venues.
Final Thoughts on How to Start a Candle Business
If you want to make money from your candle-making and take it to the next level, the steps I’ve talked about above can help you turn your passion for candles into a solid business.
You have gotten this far, which means you have grasped an idea of how to start a candle business. With the steps above, you can quickly move forward to create your income stream.
The end reward is a solid candle business that offers you profit and creative joy for years to come.
FAQS on How to Start a Candle Business
Is candle-making profitable?
Yes, it is profitable. Candle making is an art and a craft that has been quite popular for generations. The candle-making business is increasing day by day, and there is a huge profit in it if you start it the right way and the steps listed in this article.
Is it hard to start a candle-making business?
It is easy to start a candle-making business. Candle making is easy, but it requires planning and an excellent layout to ensure you have everything and every step planned out.
How much does it cost to start a candle business?
Plan to spend about $1,000 to $1,500 on your new candle business. However, with the right steps and the proper market niche, you can start earning money from your own candle-making business in just 4 hours.
How to start a candle business from home?
With the information in this article, you have all you need to know about starting a candle business from home. With affordable and easy-to-find candle-making supplies, this is the right time to plunge into homemade, natural candle-making.
Do I need insurance for selling candles?
You can use the National Candle Association cautionary fire safety label. However, if you opt to form an LLC, which you can do even if you’re a sole proprietor, your assets will be protected.
Where can I sell homemade candles?
You can sell your homemade candles online via established marketplaces like Amazon, Etsy, eBay, and Facebook Marketplace. You can also trade at stores, such as craft stores, stores that sell decorative items for family homes, and even grocery stores. You can choose to sell via your e-commerce website.
Hi, I'm Adeola Adegoke. I am a licensed Insurance Broker in Manitoba, and I hold a master’s degree in Mathematical Sciences (with a major in Financial Modeling) from the African Institute for Mathematical Sciences (AIMS), Tanzania.
Also, I have a second master's degree in Statistics from the University of Regina, and I am currently pursuing my Ph.D. in Statistics at the University of Manitoba.
The primary purpose of Money Reverie is to help everyday Canadians make better financial decisions by providing up-to-date financial news and information, reports, product reviews, and government programs.
