How to Start Your Own Candle Making Business

Turn your candle-making hobby into a successful business by following these steps.

Confucius, an ancient Chinese philosopher, once said, "Find a job you love, and you'll never work a day in your life." Therefore, if you enjoy making candles, consider turning your crafting passion into a successful business. Handmade candles warm you three times: when you put your heart into each creation, when your recipient treasures what you made, and when you light your home with them. This article outlines the steps for starting your own candle-making business.

Things You'll Need

• Internet access
• Computer software for designing your business logo
• Paper and pencil for calculating business costs
• Color inkjet printer and waterproof labels
• Business insurance

Instructions

1. 

   Choose a name for your candle-making business, something short, catchy and easy to remember. Your business name should reflect the type of store you want to present and the kinds of candles you make (such as elegant, whimsical, environmentally friendly). Also, choose a name that no one else is using. Contact the U.S. Patent and Trademark Office to search its database for existing business names as well as perform a domain name search online.

2. Determine your business structure. Do you want a sole-proprietorship or home-based business? Other options are partnerships, corporations, S corporations or a Limited Liability Company (LLC). Research the pros and cons of each type.

3. Check with your state to determine whether you need a tax ID number---also known by the Internal Revenue Service (IRS) as an Employer Identification Number (EIN). EINs identify a business for tax purposes.

4. 

   Create a simple yet eye-catching business logo to identify and market your candle store. Your business logo is the customer's first impression of your store; therefore, your logo should fit the style and feel of your business.

5. Determine your candle pricing. Write down the cost of your soy/paraffin, any additives (such as fragrance and color), wicks, the candle's container and the packaging (cellophane wrap, boxes, ribbons, stickers, tissue paper). Add these numbers together for the basic material cost. Now, add the cost of your labor. According to The Candle Cauldron, "A general rule of thumb is to mark up your total cost three or four times for retail and two times for wholesale." Look at the prices of candles in other stores, and research what customers in your area are willing to pay for candles.

6. 

   Label your candles. Include your business name and logo, the fragrance name, your store's contact information and website, where you made the candle (for example, U.S.A.), burning instructions, safety warnings, net weight and estimated burn time. In the United States, candles are not considered cosmetics and do not require ingredients listed. To fully label candle ingredients, however, follow the International Nomenclature of Cosmetic Ingredients (INCI) format. Use a color inkjet printer and waterproof labels.

7. 

   Set up a website for your candle-making business (optional). Either purchase your own domain name from a hosting provider or create a website using an online website builder. Website templates are available on the Internet if you have no HTML experience. Most online stores offer a shopping cart feature for customers.

Tips & Warnings

• Selling your candles in an online shop is another option. Register for an account at a website showcasing handmade goods (such as Etsy or ArtFire) or at an online auction website (such as eBay) and list your candles for sale. Also, figure out how customers will pay for your candles. Determine whether you'll accept credit cards, money orders, personal checks, cashier's checks and an online payment service such as PayPal.

• Protect yourself and your business with insurance. If a customer has a severe allergic reaction to one of your candles or accidentally burns down his or her home, he or she could sue you. Do an online search in your favorite browser for "business insurance," check with other crafters about insurance company recommendations and consult your homeowner's insurance policy for information about home-based business coverage.

References

• United States Patent and Trademark Office
• The Candle Cauldron
• Does a Small Craft Business Need Insurance?

Resources

• Candle Business Corner