How to Start a Homemade Candles Business in UK USA (Business Plan)

Homemade Candle Business

Do you have these questions in your mind?

  • How profitable is the Homemade Candles business?
  • How big is the Homemade Candles business in UK & US?
  • How much profit should you make in a Homemade Candles business?
  • How do I start a Homemade Candles business?
 

In this article, you will find answers to all your questions. So please grab a cup of coffee, and let’s get started.

Table of Contents

What is the Homemade Candles Business?

With a global value of around $12.8 billion and a growing CAGR rate of 5.3%, the Homemade Candle business has become a growing and trending industry worldwide. 

 

Starting a candle business from the comfort of your home can be exciting and rewarding. However, anyone with a passion for candle-making and a good plan can turn this into a profitable enterprise. 

 

This is a business where individuals create and sell candles, typically made from wax and fragrance, in various shapes, sizes, and scents. You can operate them from home and range from a small to a large-scale commercial enterprise. The goal is to produce high-quality, unique candles for customers and profit by selling them. 

 

This article will provide you with selecting the suitable materials for creating a marketing plan, covering everything you need to know to launch your own homemade candle business. So, if you’re ready to light up your entrepreneurial spirit, let’s get started!

Market Insight: In the US, the Homemade Candle industry has a value of around $2.5 billion, while in the UK, it’s around £325 million.

Homemade Candle business

Types of Homemade Candle Business Models

Several different business models can be used to run a homemade candle business. Some of the most common include:

 

1. Retail:
This model involves selling candles directly to consumers through brick-and-mortar stores or online platforms.

 

2. Wholesale:
In this model, candles are sold in bulk to retailers or distributors who then sell them to consumers.

 

3. Dropshipping:
This model involves partnering with a manufacturer or supplier who produces and ships candles directly to customers on behalf of the business.

 

4. Manufacturer:
This business model involves manufacturing candles and selling them in bulk to distributors or retailers.

 

5. Online retailer:
This model involves selling candles directly to customers through an online platform, such as an e-commerce website or social media.

 

6. Branded candle store:
This model involves opening a physical store that sells a variety of branded candles, including ones produced in-house as well as those from other manufacturers.

 

7. Private label:
This model involves producing candles under a private label for retailers or other businesses.

Homemade Candle business

Pros and Cons of a Homemade Candle Business 

Pros of a Homemade Candle Business

  • Flexibility
  • Little startup costs required
  • Rewarding work
  • No overhead costs
  • Quick build time
  • Control of workload
  • Unlimited income potential
  • Higher likelihood of getting referrals
  • Simple business model
 

Cons of a Homemade Candle Business

  • Crowded Space
  • Work can be inconsistent
  • Isolation
  • Taxes
  • High Management of staff
  • Stressful work
  • Time commitment
  • The job can be demanding. 

Investment required to start a Homemade Candle Business

Starting a Homemade Candle business in the US can cost anywhere between $10K – $100K. While in the UK, you can begin a new Homemade Candle business anywhere from £5K -£50K on your own.

 

Here are some of the expenses you may need to consider when starting a homemade candle business:

 

  • Materials and supplies – This includes wax, wicks, dyes, fragrances, moulds, thermometer, melting pot, pouring pitcher, packaging materials, and labelling supplies.
  • Equipment – This includes a melting pot, pouring pitcher, thermometer, and other equipment necessary for manufacturing candles.
  • Marketing and advertising – This includes expenses for creating a website, printing flyers, and advertising your products online or through local events.
  • Legal and licensing fees – This includes obtaining necessary business licenses, permits, and insurance coverage.
  • Rent and utilities – If you plan to operate the business from a rented space, you must factor in rent and utility expenses.

 

It would help if you had an additional $10K–$30K for other expenses. 

Homemade Candle business

How much does a Homemade Candle Business make? 

While startup costs can be intimidating, it’s important to remember the financial upside of running this business. The revenue you make will depend on the volume of your sales and your marketing efficiency for your business. 

 

Based on that data, a homemade candle business generates anywhere from $15K to $100K in average annual revenue in the US. In the UK, it can be anywhere from around £10K to £80K.

 

When starting, revenue will be significantly low compared to other businesses, but the profits will be significant over time. 

Market Insight : Yankee Candle is a leading manufacturer and retailer of candles, home fragrance, and accessories, based in the United States. Their revenue is estimated to be around $1 billion USD.

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Homemade Candle business

Types of Candles you can sell!

As a homemade candle business, you can sell a variety of different types of candles, including:

 

1. Scented candles: 

These are candles that are scented with fragrances or essential oils. They can be made in various shapes and sizes and come in multiple scents.

 

2. Soy candles: 

These are candles made from soy wax, a renewable, biodegradable, and eco-friendly alternative to traditional paraffin wax.

 

3. Beeswax candles: 

These are candles made from pure beeswax, which is known for its natural, subtle honey scent.

 

4. Gel candles: 

These are candles made from a mixture of mineral oil and polymer resin. They tend to have a long burn time and come in various colours.

 

5. Pillar candles: 

These are candles that are cylindrical and can stand on their own without the need for a holder. They come in a range of sizes and can be scented or unscented.

 

6. Votive candles: 

These are small, cup-shaped candles typically used for decoration or creating a cosy, intimate atmosphere.

 

7. Floating candles: 

These are candles designed to float on water, making them a popular choice for decoration at special events such as weddings or parties.

 

8. Novelty candles: 

These are candles shaped like objects or figures, such as animals, food items, or holiday symbols.

 

There are many other types of candles you can sell as well, so you can choose to specialize in a particular kind or offer a variety of options to your customers.

Homemade Candle business

Equipments required in a Homemade Candles Business

Essential equipment for a Homemade Candles Business may include:

 

1. Wax melting pot: 

A Wax Melting pot is a specialized pot specifically designed for melting wax. It is typically made of stainless steel and has a large capacity for holding wax.

 

2. Thermometer: 

A thermometer is used to measure the melting wax’s temperature, which is essential for ensuring the wax is heated to the correct temperature for pouring into moulds.

 

3. Pouring pitcher: 

This container is used to pour the melted wax into the candle moulds. It typically has a spout to make pouring easier.

 

4. Candle moulds: 

These are the containers used to shape the candles. They come in various shapes and sizes and can be made of silicone, plastic, or metal.

 

5. Wicks: 

These strings provide the heat source for the candle to burn. They come in different sizes and materials, and choosing the right wick is essential for ensuring the proper burning of the candle.

 

6. Wick sustainers: 

A small metal or plastic discs hold the wicks in place in the candle moulds. They keep the wicks centred and prevent them from falling into the wax.

 

7. Scissors or wick trimmer: 

These trim the wicks to the correct length after the candles have hardened. Trimming the wicks is essential for ensuring the candles burn evenly and safely.

 

8. Fragrances or essential oils: 

These are added to the melted wax to scent the candles. You should combine the fragrance or essential oil with the melted wax before pouring it into the moulds.

 

9. Dye blocks: 

These are used to colour the candles. Finally, they are added to the melted wax before pouring into the moulds.

 

10. Label materials: 

These are used to label your candles for sale. They can include adhesive labels, sticker paper, or printed tags.

 

11. Packaging materials: 

These are used for packaging and transporting the candles. They can include boxes, bags, tissue paper, or shrink wrap.

Homemade Candle business

Marketing Strategies needed for a Homemade Candle Business 

Marketing your homemade candle business can be done through a variety of channels, including:

 

1. Social media:
Utilize social media platforms like Facebook, Instagram, and Twitter to reach a wider audience and showcase your products.

 

2. Influencer marketing:
Partner with influencers in your niche to promote your candles and reach a new audience.

 

3. Online marketplaces: 

Sell your candles on popular online marketplaces like Etsy, Amazon, or eBay to reach a large customer base.

 

4. Local events:
Participate in local events like craft fairs, farmer’s markets, and pop-up shops to get your candles in front of customers.

 

5. Email marketing:
Build an email list of customers and subscribers, and send them regular newsletters to keep them informed about your latest products, promotions, and events.

 

6. Referral program:
Encourage your satisfied customers to refer their friends and family to your business by offering incentives like discounts or free candles.

 

7. Content marketing:
Create blog posts, videos, and other types of content that showcase your candles, educate customers about the benefits of candles, and build your brand.

 

8. Paid advertising:
Consider investing in paid advertising, such as Google AdWords or Facebook Ads, to reach a wider audience and drive more sales.

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Homemade Candle business

SOP for your homemade candle business

A Standard Operating Procedure (SOP) in a homemade candle business outlines the steps and procedures for producing consistent, high-quality candles. For example, a sample SOP might include the following steps:

 

1. Gather materials and equipment – 

This includes wax, wicks, dyes, fragrances, melting pots, pouring pitchers, thermometers, and moulds.

 

2. Prepare workspace – 

This ensures that the area is clean, well-lit, and free of any flammable materials.

 

3. Melt wax – 

This measures and weigh the wax and heat it in the melting pot until entirely melted.

 

4. Add fragrance and dye – 

It carefully measures and adds the fragrance and dye to the melted wax, stirring to ensure even distribution.

 

5. Prepare wicks –

Cut the wicks to the appropriate length and secure them in the centre of the moulds.

 

6. Pour the wax into moulds – 

Use a pouring pitcher to carefully pour the melted wax into the moulds, making sure not to disturb the wicks.

 

7. Cool and harden – 

Allow the wax to cool and harden completely, which can take several hours.

 

8. Remove candles from moulds – 

Then gently remove the candles from the moulds, and trim any excess wick.

 

9. Package and label – 

Package the candles in a suitable container, and attach a label with the name, ingredients, and burn instructions.

 

10. Store – 

Store the finished candles in a cool, dry place, protected from direct sunlight and moisture.

 

Homemade Candle business

Turn your Homemade business to a Franchise!

To turn your Homemade Candle Business into a Franchise, you need to follow these steps:

 

1. Develop a solid business plan:
A well-written business plan that outlines your goals, target market, marketing strategy, and financial projections are crucial for attracting investors and franchisees.

 

2. Establish brand standards:
Define your brand’s visual identity, product specifications, and quality standards, and create a detailed brand manual.

 

3. Create a franchise system:
Develop a comprehensive franchise system that includes training programs, operational procedures, and support systems for your franchisees.

 

4. Seek legal advice:
Hire a franchise attorney to help you comply with the legal requirements for franchising and to draft your franchise agreements.

 

5. Recruit franchisees:
Identify potential franchisees, screen them, and provide them with the information they need to make an informed decision about investing in your franchise.

 

6. Launch your franchise:
Launch your franchise, provide ongoing support and training to your franchisees, and monitor their performance to ensure that your brand standards are maintained.

 

7. Expand your franchise:
Continuously grow your franchise by adding new franchisees, expanding into new markets, and developing new products and services.

Conclusion

A Homemade Candle business is a good idea; the profits are rewarding. It is a significant part of modern culture & is profitable; congratulations on your decision to start a Homemade Candle Business.

 

To operate a Homemade Candle business, you must comply strictly with all relevant safety regulations and obtain the necessary licenses and permits.

 

Overall, the Candle Industry is a significant and growing industry in the United States and the United Kingdom, so congratulations on your journey of starting this Business.

Want to Save Time in your Business Launch?

  • How to Create a Business Plan
  • What is Market Research, USP, Niche & Positioning
  • How to find a suitable name for your business
  • How to create your brand image (Logo + Branding)
  • How to Register Your Business
  • How to Register for Taxes
  • How to get Licenses / Permits
  • How to Open a Business Bank Account
  • How to Get Business Insurance
  • Which Payment Processing Terminal (POS) to buy
  • How to get Funds for your Business
  • How to do Sales & Marketing – Offline & Online
  • Why have a Website / Blog / Social Media
  • How to build & train your Dream Team
  • How to provide Excellent Customer Service
  • Buying an Old Business Vs Franchisee Vs Own Brand from Scratch

Handpicked inspirational Youtube videos for you

FULL & easy beginners guide to Candle Making – YT Channel ‘sheri vegas ‘

Candle Business Makes $300,000 In 18 Months! – YT Channel ‘UpFlip’

DIY Luxury Iridescent Soy Candles at Home! – YT Channel ‘Jerika Zimmerman’ 

A. The cost of starting a candle business can vary greatly depending on the scale and type of operations, but expect to spend a few thousand dollars at minimum on supplies, equipment, and marketing.

A. Legal requirements for starting a candle business may vary depending on your location but generally, you’ll need to register your business and obtain any necessary licenses and permits. It is recommended to consult with a lawyer and check with your local government to understand the specific requirements.

A. There are several ways to market and sell your candles, including online platforms such as Etsy, your own website, or at local craft fairs. Social media can also be an effective way to reach your target audience and promote your candles.

A. Some of the costs associated with making and selling candles include supplies, equipment, packaging, shipping, and marketing. It’s important to factor in all of these costs when determining your pricing and setting a budget for your business.

A. To ensure the quality and safety of your candles, use high-quality wax and wicks, follow proper candle-making procedures, and ensure that your candles are properly labeled and packaged. It is also important to follow all relevant regulations and safety guidelines.

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