How to Start a Candle Business
Candle businesses are very popular. People love the use of candles, whether it is for practical reasons, like having light in the dark, or for aesthetic reasons, such as a fragrance in the home. There are so many applications and niches within the industry, that you can help stand out from the crowd. In this article, we help you get involved in this industry with a guide on how to start a candle business.
Why Start a Candle Business?
There are numerous reasons why you would want to start a candle business. The candle market is valued at $12.88 billion across the world, and it is expected to grow at a rate of 5.7%. One of the main drivers for the growth of the industry is the aesthetic-appealing niche among female millennials for household applications.
However, they’re also used for other reasons and sell pretty well.
Other industry experts state that the growth of candle sales has increased every year by about 10-15%.
There is also the chance to use dropshipping to offer candles to your customers. Therefore, you can set up your business with relatively few costs and run the business from home.
Candle Business Statistics
Numerous statistics can help you form a business plan for your candle business. Here are some of the most important statistics.
- The US retail sales of candle products are estimated at approximately $3.14 billion annually.
- 80% of candles made in the US are produced by members of the National Candle Association.
- Four types of retail outlets typically sell candles: specialists, gift shops, department stores, and mass merchandisers.
- More than a third of candle sales are made during the Holiday season.
- There are more than 10,000 different candle scents available to US consumers.
- The retail price of a candle can range from $2 to $35.
- Container and jar candles are the most popular candle product in the USA.
- The most important factors that affect candle sales are scent, color, cost, and shape.
- Most US consumers use a candle within a week of purchase.
How to Start a Candle Business
Here are the instructions and steps that you need to know for learning how to start a candle business. These are very simple instructions that will not take long to follow.
Step 1 – Choose your Niche
The first thing that you need to do is to choose the niche that you would like to work in. As with any eCommerce business, there are lots of options. Not only can you choose the type of candles that you would like to sell, but you should also have a look at the business model.
For instance, you might need to consider regular eCommerce stores, dropshipping, or print-on-demand options. There are lots of benefits to each of these. For instance, you might prefer dropshipping or print-on-demand because they have much lower startup costs.
Or you might have more control over your branding and send out products. Therefore, you want to have a regular eCommerce business.
At the same time, you want to make sure that you have the niche sorted. Are you selling outdoor candles, birthday candles, fragrances, or something else? There are so many choices that you can make a good, unique business.
Step 2 – Choose a Business Name
At this moment, you can choose your candle business name. To help you out, you might need to use a candle business name generator or an eCommerce name generator. These are really useful tools that can help you get a name that is unique to your brand.
A unique name is really important for several reasons. For one, it can be a legal requirement, especially for those living in the US where names have to be registered. Another reason is that you don’t want your name to be confused with another brand with a similar name.
To be sure that you have a unique name, you should do a business name search in your state and others in the US. In addition, you should consider doing a Google, social media, business directories, and domain name search.
Step 3 – Register Your Business
Now you need to consider registering your business. Some states will require this, others will allow you to run a business without one. But it is important to check with the local commerce department about the rules and regulations.
You might want to consider registering your business as an LLC. There are lots of benefits to this option. For example, you get better financing options, can open a business bank account, there is protection for personal property, and can protect your business name from use by others.
There are numerous costs to registering an LLC, but there are some tax benefits as well.
You need to also register your business domain and also on social media profiles.
Step 4 – Build Website
Now build your website. There are numerous website platforms that you can use for your candle business. For example, you might want to use Shopify, Wix or Squarespace or WooCommerce. It depends on your skills as a website developer or you can hire a website developer.
It can take time for you to build a website. Some sites can take a couple of weeks. Though there are certainly times when you can build a website in a couple of days.
Step 5 – Marketing
Now you need to start marketing your brand. Social media, like YouTube, Facebook, and Instagram are going to be important for you to build a social following. You should also write a blog. Blog posts help you to rank high on Google. Those that publish more than 15 blog posts per month get 70% more sales.
In addition, you need to get your SEO right for the website. It takes a lot of effort to get the SEO right. Therefore, you can spend the first few months with few sales, which is one of the reasons why 90% of eCommerce businesses fail within three to four months.
Final Word: How to Start a Candle Business
Above are the steps for how to start a candle business. It isn’t a long process, but it will take some luck to work. It is a very competitive market and you might need to have some financial backing or start this as a side hustle to give you some income as you build your business.