How to start a candle business in 8 steps (2024)

Whether you’re looking to take making candles as personal hobby to the next level or dive head-first into starting a new business, you’ve come to the right place. This step-by-step guide for how to start a candle business will outline everything you need to know.

What is a candle business?

A candle business is one that produces, markets and sells candle. This type of business can range from small-scale artisanal operations to large manufacturing companies. Famous examples include Yankee Candles which was started by a teenager looking to make a homemade gift for his Mother.

Why should you start a candle business?

The candle industry is thriving. The global candle industryis expected to record a CAGR of 5.2% from 2024 to 2033. In 2024, the candle market projected to reach a valuation of USD $14.943.2 million.

There are a number of reasons why a candle business makes for a good eCommerce business idea.

How to start a candle business in 8 steps

01. Master the craft of candle-making

The first logical step is to get familiar with the process of creating a candle. One of our favorite types comes from the Armatage Candle Company, which encourages new business owners to heed the "84 Candle Rule"—that is, create 84 candles and give most of them away.

The 84 Candle Rule gives you ample time to get familiar with the candle-making process, test various formulas, and collect feedback from friends and family.

Moreover, as you create more and more candles, you’ll learn to:

02. Choose your niche and develop your branding

Before presenting your candles to the market, you must figure out the who, what and why behind your candle niche. Ask yourself:

Once you’ve answered these questions, you can enjoy an easier time figuring out howto bring your vision to life. Between deciding the types of candles you want to offer and how to brand your online store, a clear niche and brand identity can help you to get things off the ground faster.

Once you've decided on this, the next step is your market research. Market research for a candle business means analyzing consumer preferences for scents, types and styles of candles. You might also want to look into identifying target demographics and assessing your competitors. Investigate craft trends, such as the demand for eco-friendly and handmade products both of which can be relevant for a candle business. Gather data from surveys, focus groups and market reports. Then you'll need to use this data to set your sales channels, both online and offline, to identify the best distribution strategies.

At this point, make sure to tackle these basic branding steps:

03. Estimate your startup costs and secure funding

When it comes to learning how to start a business, there are typically two types of startup costs that you’ll have to be aware of:

Take the time to list out what items you’ll need to create your first 100 or so candles. At this stage, you’ll also want to get familiar with costs you should expect, both now and in the future.

For instance, you’ll need to budget money for any marketing or advertising that you plan to do around your products. You’ll also need to factor in taxes, plus recurring fees for any website software you want to use or partners (like 3PLs) that you want to team up with to scale and simplify operations.

04. Write a business plan

A business plan helps you plan out all aspects of your business and set yourself up for sustainable growth.

When developing your plan, it’s important to take your time and walk through the various opportunities and challenges confronting your business. Pinpoint your competitors, your differentiators, your distribution channels, and the resources at your disposal (among other things).

Most business plans will include the following sections:

05. Make your candle business official

It's time to turn your business into a legal business entityand take care of other business-essential steps. Don't worry. This part is a lot less scary than it sounds.

Register with your state

The search results will contain several links for companies offering to register your business for you (for a fee). However, you can avoid the service fee by registering directly through your state's website. You’ll typically have to pay a small filing fee, which varies by state.

Get a federal tax ID

File for a Federal Tax ID (or EIN) number, which is required to open a business bank account, obtain a business loan, hire employees, and more. Fortunately, the application process is free and only takes a few minutes.

Apply for business licenses and permits

Once you have your EIN, you can complete the last step in making your business legal: apply for a business license. A business license includes your seller's permit and allows you to collect state sales tax on your transactions.

Perform another internet search to find the appropriate website for your state (i.e., google "register for a business license in [insert your state]"). Complete the application steps outlined by your state. Note that some states only require a general business license while others have additional local or county-based requirements.

Apply for insurance

Unfortunately, the reality is that candles are a fire hazard, and accidents can happen. Therefore, applying for insurance is one of the most critical steps in creating your business. Insurance not only protects your business, but it protects you and your family as well.

At a minimum, you'll want an insurance policy that provides general liability coverage. General liability is the most straightforward and covers third-party property damage or injury claims.

There are a lot of online resources about small business insurance. Do some research, consult a professional, and find a small business insurance company that provides the coverage you need and fits your budget.

Get a business bank account

For taxes and bookkeeping, it’s a good idea to keep your business income and expenses separate from your personal finances.

Each bank or credit union has different fees, transaction limits, and balance minimums for business accounts. So take some time to shop around for a local or online bank that will work for you.

Note: to open a business account, most financial institutions require a copy of your business formation documents (obtained when you registered your business), licenses/permits, and either your EIN or your social security number.

06. Create your candles

Build your first products to list for sale. Start with a candle fragrance lineup that best fits your business and your purpose, and then every couple of months, launch a new fragrance and get feedback from your buyers.

This can help to keep your customers engaged and excited about new fragrances or product lines.

A good place to start is by launching a handful of fragrances, spanning a range of different categories, such as:

For example, Renee Candle Co.offers several distinct scents within these categories: Unwind, Noir, Tropix, Spiced, Lush and Cozy.

07. Decide where to sell and create your online store

Here comes the fun part. Build a business websitewhere you can collect orders for your candles.

At this stage, it’s crucial to pick a reliable eCommerce platform. A platform like Wix’s eCommerce website builderoffers a wide range of features and capabilities, including built-in catalog management, inventory management and marketing tools that will be useful in the future.

All Wix websites are also built with SEO, reliability, security, and performance in mind. Meaning, you don’t have to worry about your site crashing when there’s a surge in traffic. And you can rest assured that your site is mobile-friendly and backed by the best security measures.

Thanks to these capabilities, you can focus most of your attention on designing the best, user-friendly site experience.

First, pick a layout design that best suits your brand. Most website builders provide several pre-made templates to help get you started. For example, Wix eCommerce includes more than 500 professionally designed online store templates, which can be further customized.

Build out your pages and pay special attention to the following best practices:

When it comes to selling candles online you can also think about setting up an Etsy shop or listing your products on Amazon and eBay. Instagram shopping is another popular way for small businesses to sell online.

Offline, you can participate in local craft fairs, farmers' markets and pop-up shops. You'll need to partner with local boutiques, gift shops and home decor stores to stock your candles either permanently or on a rolling basis. It might also be a good idea to approach spas, salons and yoga studios to use or sell your candles.

08. Develop your marketing strategy

You've done a lot of work up to this point. Now it's time to create an eCommerce marketingstrategy and figure out how to spread the word about your candle store. As a Wix merchant, you can automatically access tools for business emailmarketing, social media marketing, blogging, and more.

Social media is a great place to start promoting your product, though you’ll want to avoid taking the spray-and-pray approach. Engage with social channels one or two at a time (there’s no need to create accounts everywhere just for the heck of it). Experiment with various types of posts—like videos and livestreams—and observe how people respond.

Pro tip: When talking about your product online, avoid subjective buzzwords like “amazing” or “best.” Instead, focus on your purpose and your story, and aim to demonstrate how your products are superior.

Other marketing tactics worth trying:

Ready to start your new candle-making business? Create your online store with Wix eCommercetoday.

Looking to start a candle business in a specific state