How to start a candle business in 9 steps

Starting your own candle business can be an exciting and rewarding venture. Whether you’re drawn to the idea of crafting custom scents or designing beautiful creations, a candle business gives you the opportunity to blend artistry with commerce.

If you’re curious about how to launch a candle business, this guide is for you. We’ll walk you through each phase, from the initial idea to the final execution. Plus, we’ll provide tips from industry experts to help you along the way.

How to start a candle business

The candle industry’s global market is set to hit $14 billion by 2030, making it an ideal time to start selling candles. With that in mind, let’s explore nine steps to transform your candle passion into a thriving online business.

1. Conduct market research

Start by identifying your ideal customers and their demographics, such as age, gender, and income levels. This will likely lead to three primary consumer segments for candles:

• Luxury candles. Features exclusive scents and premium packaging. They’re typically priced between $50 and $100 each, suitable for upscale platforms and boutique stores.
• Mid-range candles offer good quality at a moderate price, ranging from $20 to $50. These candles balance appeal and affordability, and they are marketed through social media and home decor outlets.
• Affordable candles. Priced from $5 to $20, they’re mass-market candles with standard scents and simpler packaging. Ideal for younger demographics, they’re marketed via discount stores and online marketplaces.

Next, analyze your competitors’ products, pricing, and promotion strategies. This will help create your unique selling proposition (USP) and differentiate your candles from the rest of the market.

Finally, to stay ahead of the competition, stay up-to-date on candle trends. Some trends include popular scents, designs, and packaging options. Use Google Trends or social media platforms to see the latest trends.

2. Define your brand

Developing a compelling brand narrative is essential. Its purpose is to connect with your target audience and clearly communicate your values and mission. This brand identity should reflect every aspect of your business, from your marketing efforts to your product lines.

Start with a niche. Choosing a specific niche can help you stand out in the crowded candle market. Here are some examples:

• Vegan or soy candles. Crafted from natural ingredients, soy candles appeal to environmentally conscious consumers.
• Artisanal candles. Focus on the craft and traditional methods of candle making.
• Dried botanical candles. Unique scented candles that incorporate real flowers and herbs.
• Crystal-infused candles. These combine the aroma of candles with the metaphysical properties of crystals.
• Custom candles. Allow customers to create their own scents and styles, offering a personalized product.

To further improve brand recognition, create a strong visual identity with a distinctive logo, color scheme, and packaging design that is consistent across all marketing materials.

For example, a candle business aiming to evoke luxury and calm might choose a color palette of soft blues, warm grays, and rich gold accents.

Another way to stand out in the competitive candle market is to offer unique add-ons or services. These could include personalized gift-wrapping options, subscription boxes with new scents each month, or workshops on how to make your own candles at home.

3. Choose a business name

Choosing the right business name is crucial for your candle business. It should be memorable, and easy to pronounce and spell, making your brand more recognizable.

Start by brainstorming combinations of words that capture the essence of your candle business. Consider names that are not only easy to remember but also reflect the unique qualities of your products.

To widen your options, create a mind map or use online name generators to find potential names. Adding a touch of fun or a playful element can also make your business name memorable.

Once you have all the key components, it’s time to compile them into one document. This document will serve as a roadmap for your business, outlining your goals, strategies, and financial projections. Check our free business plan template below to get started.

Download business plan template

5. Estimate startup costs

Calculate the initial investment needed for your candle business. First, the essential materials such as wax, wicks, essential oils, containers, and equipment required to start production.

Then, factor in the costs for shipping and packaging, which are essential for delivering your products in good condition.

Next, account for ongoing operational expenses. These include utilities, marketing and advertising, rent for your production space, and any required permits or licenses. These costs are recurrent and will impact your monthly budget.

To control your startup costs, calculate your burn rate. It’s the rate of spending money on your business before it becomes profitable. A safe burn rate is typically around 6-8 months, meaning you should have enough business funding for at least that long.

Make sure to carefully consider all expenses and find ways to minimize them without sacrificing quality.

6. Make your business official

Let’s break down what making your candle business official entails:

Register your business

Register your business with an appropriate legal structure that suits your needs, such as a sole proprietorship or an LLC. Research and obtain all necessary permits and licenses to manufacture and sell candles legally where you are based.

Obtain necessary permits and licenses

Depending on where you plan to operate your candle-making business, you may need specific business licenses and permits.

This could include a business operation license, a home occupation permit if you operate from home, and a health and safety permit if you manufacture products yourself.

Check with your local business bureau or city council for a list of required documents and to apply for them.

Open a business bank account

Separating personal and business bank accounts is key for better financial management and is often legally mandated based on your business structure.

To open an account, you’ll need your business registration details, EIN (Employer Identification Number), and other personal identification documents. The documents include a government-issued ID, business formation, ownership agreements, and proof of address.

You may also need to review and sign various business account agreements, so take the time to carefully read through them and ask any questions before signing.

It’s important to keep your business finances separate from your personal finances for tax purposes and legal protection. Having a dedicated bank account for your business will make it easier to track expenses, file taxes, and receive payments from clients.

When choosing a bank for your business account, consider factors like fees, interest rates, online banking options, and customer service. It may be helpful to research different banks in your area or get recommendations from other small business owners.

Once you have opened your business bank account, be sure to regularly monitor transactions and reconcile

Set up accounting software

Utilize accounting software from the start to track expenses, income, and profits accurately. This tool will be crucial for managing your budget, setting prices, preparing for taxes, and generally keeping your finances in check.

Use free software like Wave or Google Sheets to avoid adding more expense to your budget.

7. Create your initial inventory

Your first inventory determines the initial investment needed and helps you calculate your profit margins. Let’s divide this process into two: producing the candle and creating the initial inventory.

Producing your candle

Based on your market research, plan and produce an initial batch of candles. First, determine whether you’ll be making the candles yourself or outsourcing production.

If you decide to outsource, make sure to calculate the cost per candle and factor that into your pricing.

If you plan on making the candles yourself, start by purchasing all the necessary materials and equipment. This may include wax, wicks, fragrance oils, containers, labels, and a heat source. Consider buying in bulk to save money.

Once you have all the materials, follow a tested recipe or create your own using trial and error. Keep track of the amount spent on each batch of candles, including any additional costs such as shipping or packaging materials.

Creating the first inventory

Once you have learned the candle-making process, it’s time to start creating your initial batch. This production run helps determine your production capacity – how many candles you can produce within a set timeframe.

To manage your inventory, consider using a spreadsheet or inventory management software to track each candle’s type, size, fragrance, and quantity. This allows you to see when supplies are low and need restocking.

Additionally, pay attention to the seasonal calendar when creating your inventory.

8. Build your online store

A candle business is made complete with a website. Having your own website simplifies product purchases, helps reach a larger audience, and expands your business.

Choose an eCommerce platform

We recommend using Hostinger Website Builder. As a comprehensive website builder, it offers:

• Built-in store analytics. Allows you to manage your products and track sales.
• Easy customization. With a user-friendly interface and intuitive grid, the builder lets you customize the website easily.
• Secure payment options. Your customers’ safety should be a top priority. Hostinger Website Builder offers secure payment options like PayPal and Stripe.
• AI SEO assistant. Boost your website’s visibility with the help of an AI-powered SEO assistant.
• Third-party app integration. Various applications to help boost your site functionality, such as Google Analytics, Facebook Pixel, WhatsApp, and Google AdSense.

For candle business owners, the Business plan would be the best choice. It costs ₱159.00/month and offers more than enough hosting resources for your online store.

Additionally, it comes with eCommerce functionality. This allows you to sell products online with 0% transaction fees and 20+ payment methods.

It also offers comprehensive AI tools to help enhance your business website. These tools include an AI Website Builder, Heatmaps, a Blog Generator, and SEO Tools.

Build the website

Once you have purchased the plan, you’ll be directed to the setup page. There, you can choose to create your website with AI or use a pre-made template.

With AI, you need to add your business name and description. Be as detailed as possible. When ready, click Create a website.

Based on the description above, here’s what the finished website looks like.

As you can see, the builder provides all the essential pages, including the Shop page. Click Edit site at the top right corner to start customizing your website.

Go to the Shop page to set up your online store. There, you’ll need to enter your business location and currency.

Once you’ve done this, you’ll be directed to the Store manager. Here, you can view and manage your online store, as well as track your sales and inventory.

Upload high-quality product photos

Original, high-quality photos are essential for effectively showcasing your candles. After capturing your images, use photo editing tools like Adobe Photoshop or Pixlr to enhance their visual appeal and reflect your branding.

After that, compress these images to ensure they don’t slow down your website’s loading speed. Tools like TinyPNG or Adobe’s online image compressor can reduce file sizes without compromising image quality.

Next, upload your images to the website. On the Store manager page, choose Add your first product.

Choose the product type, then fill out all the details. This includes the title, description, and price. You can also add quantity and category to specify your product further. 

Include detailed product descriptions

The next step is adding product descriptions. Still on the same page, ask AI Writer to create an engaging product description for you. Simply describe what makes your product unique and AI will do the rest.

Highlight any unique selling points or advantages that your candle has over others in the market. Also, make sure to mention the candle’s scents and ingredients. For example, check out Spoken Flames’ product description below.

Starting with describing what inspired the candle’s name, it continues with the ingredients and scent notes.

Optimize for search engines

Search engine optimization (SEO) is crucial for increasing visibility and attracting more traffic. On the builder’s homepage, go to Website settings → SEO settings.

It will open the SEO settings for all website pages. You can add meta descriptions, keywords, and titles to improve your SEO ranking. 

Use the AI SEO Assistant to help generate the page’s SEO title, meta description, and keywords. Simply click Generate new SEO info and add your page description for AI to start generating.

Offer multiple payment options

Providing multiple payment options is essential for ensuring a smooth purchasing experience. Ultimately, this increases the conversion rate as customers can use their preferred payment methods.

Hostinger Website Builder supports a variety of payment gateways, including PayPal, Stripe, and manual payment – which includes bank transfers and cash on delivery (COD).

9. Develop your marketing plan

Strong marketing is crucial for your candle business to reach its potential. Here are our recommended marketing strategies for increasing visibility and attracting more traffic:

• Social media marketing. Use platforms like Instagram, Facebook, and Pinterest to showcase your products and engage with potential customers.
• Content marketing. Specifically, video content showcasing your products and the story behind your brand. For example, create YouTube shorts that highlight your process of making candles or packing orders.
• Email marketing. Keep customers updated on new products, promotions, and events through email newsletters.

For a small candle business, starting with local SEO strategies is another smart move. This involves using Google Business Profile and optimizing your website with local keywords to help you rank higher in local search results.

Some local keyword examples are handmade candles in [your city] or organic beeswax candles near me. This will help potential customers in your area find your store easily.

Additionally, arrange a workshop or event to showcase your candles and connect with potential customers in person. This can also help you build a loyal customer base in the long run.

Conclusion

With its impressive growth trajectory, starting a candle business is entirely achievable with the right approach.

This article outlines nine clear steps to starting your candle-making business. Each phase is important, from conducting thorough market research to choosing a compelling business name and developing an effective online presence.

Along with the expert tips, we hope these steps will serve as a solid foundation for your business venture. Good luck!

Download checklist: How to start an online business

How to start a candle business FAQ

Find answers to the most common questions about starting a candle business.