How to Start a Candle Company

Candles.

Candles have gone from being used as household lighting to becoming a home décor accessory. Used for creating an ambiance with soft lighting or to fill a home with soft inviting fragrance, candle products are made in a number of styles such as natural soy container candles, decorative pillar candles, gel candles or tart melts. Whether it aims to manufacture candles or purchase candles for retail sale, a candle company has potential to find a profitable niche in the competitive candle marketplace.

Things You'll Need

• Computer
• Start-up capital

Instructions

1. Decide if you want to sell candles you create or buy wholesale. If your startup funds are limited, consider becoming a sales consultant for an established candle business in which you receive a percentage of the sales.

2. Choose where you want to sell candles. You can open a retail store, sell online through a store or eBay, do craft shows, have home parties or combination of these. Starting small with craft shows and online sales is a lower risk and allows you to test your market before investing in a retail store. If you are making candles, you can also consider selling wholesale to retail stores.

3. Register your business name and apply for a sales tax number. Visit Business.gov to find what applications need to be filed in your area. Pay attention to restrictions concerning home-based businesses if you are running the business from your home. This step is usually not necessary if you plan to be a sales consultant with a candle company, but check with your the Small Business Administration to be sure.

4. Get insurance for your business to protect you from liability and loss. This may be available through a local insurance agency. Shop around to compare rates before choosing one. This step is not needed if you will work as a sales consultant, but if you plan to keep stock in your home, make sure your products are insured against loss in your home and car insurance policies.

5. Plan how you will market your company and get the necessary supplies such as professional business cards, fliers, catalogs, displays for craft shows or home parties, or a website. There are many ways you can use free marketing through social marketing on websites such as Facebook, Twitter, blogging, forums and publishing articles online.

6. Prepare your business for opening by getting candles made or purchased, or getting samples to show customers. If you are opening a retail store, work with a real-estate agent to find a location. Or for an online store, choose a hosting company that requires little knowledge in website development such as DIYeStores, Merchant Moms, Pappa Shop, or Wahm Shoppes eStores. These provide step-by-step instructions to setting up an online store.

7. Celebrate the opening of your new candle company with a grand opening. Using your marketing plan, send an announcement to local papers and host an open house to get your business off to a running start. Build up your customer list by visiting local businesses and offering samples or by leaving brochures with coupons. Have a drawing to get people to leave their contact information for a mailing list to keep them updated on sales and new products.

Tips & Warnings

• Keys to a successful candle company include quality products with a clean, even burn and good scent throw; professional customer service and continual advertising.

• Look to your competition to find ways you can be unique to have an edge in a competitive market.

• Choose a name that is catchy and easy to remember. Choosing one with keywords is a good idea as it helps people recognize what you sell and also is helpful with online search engines.

References

• Business.gov
• Small Business Administration
• "Candle Making for Fun and Profit" ;Michelle Espino; 2000

Resources

• Wahm Shoppes eStores
• DIYeStores
• Pappa Shops